Banks increase lending amid decline in share of non-performing loans

The share of non-performing loans in the banking sector of Ukraine at the end of the second quarter of 2026 decreased to 12.5%. The quality of credit portfolios improved in both corporate and retail segments.

This was reported by the National Bank of Ukraine in its banking sector review for Q2 2026.

Over the quarter, the share of non-performing loans decreased by 0.5 percentage points. The NBU notes that current credit portfolio quality indicators are already better than the average values observed before the start of the full-scale invasion.

Banks accelerated business lending

At the same time, banks continue to actively increase loan issuance. The net hryvnia credit portfolio of businesses grew by 9.4% in the second quarter, compared to 6.3% in the first quarter. The annual growth rate exceeded 30%.

For the second consecutive quarter, banks with foreign capital increased lending to enterprises the fastest. Among industries, the largest growth was observed in construction, metallurgy, machine building, including the defense-industrial complex, and processing industry.

The share of loans under the state program 'Affordable Loans 5-7-9%' increased to one-third of the hryvnia credit portfolio of businesses.

Loans to households also grew

The volume of net hryvnia loans to individuals increased by 8% over the quarter and by 36.2% year-on-year. In the retail segment, unsecured loans continue to dominate.

The growth rate of mortgage lending remained almost unchanged, while the volume of car loans began to grow faster.

Meanwhile, the average rate on hryvnia loans for businesses rose by 0.2 percentage points to 15.3% per annum. Banks with foreign capital offered on average a lower rate - 13.5%.

The NBU also recorded an inflow of hryvnia funds to banks: household deposits grew by 7.1% over the quarter, and business deposits by 4.2%. The regulator considers active lending a key factor in the growth of bank assets for more than two consecutive years.

Source: National Bank of Ukraine