Banking Sector Sees 30% Surge in Lending to Businesses and Consumers
An analysis of bank lending and non-performing loans (NPLs) for 2024-2025 reveals substantial growth in net hryvnia-denominated loans to both businesses and individuals. Specifically, in December 2025, net business loans in the national currency surged by 35.6% year-on-year, while consumer lending grew by 32%. For the full year 2024, net business loans increased by 21%, and loans to individuals jumped by 38% compared to the previous year. This lending boom signals a potential economic recovery following a period of significant disruption.
Shifts in Lending and Non-Performing Loans
Throughout 2025, lending to private small and medium-sized enterprises (SMEs) also expanded, rising by 32.9%, with lending to large private companies growing by 29.7%. Despite these positive lending trends, the total volume of gross corporate hryvnia loans, which includes NPLs, contracted by 2% year-on-year.
A pivotal event was PrivatBank's write-off of approximately UAH 140 billion in old non-performing hryvnia assets in December 2025. This action led to a sharp decline in the NPL ratio across the banking sector, dropping from 24% to 14% by January 1, 2026. As of the analysis date, the NPL ratio in state-owned banks stands at less than 20%, in privately-owned Ukrainian banks at 8.4%, and in privately-owned foreign banks at 6.5%.
Solvent banks collectively earned UAH 126.8 billion in net profit for 2025, indicating an improvement in the financial health of the banking system. A comprehensive review of the banking sector is scheduled for publication by February 20, which will provide a more detailed picture of financial stability in Ukraine.
The expansion of bank credit points to a revival of economic activity in Ukraine and better conditions for conducting business. The write-off of non-performing assets, particularly at PrivatBank, has helped reduce systemic risks, thereby boosting confidence in financial institutions. The forthcoming sector review in February will allow for a deeper assessment of the economy's stability and development prospects in the near future.