Key Figures for Ukraine's Non-Banking Financial Sector in Q4 2025
Data from the fourth quarter of 2025 reveals a mixed performance across Ukraine's non-banking financial institutions, which operate alongside traditional banks. The sector's overall share of financial system assets has fallen to a historic low of 8.8% as of December 2025. While insurers posted strong gains in assets and profitability, credit unions saw their assets and loan portfolios shrink. In contrast, financial companies and pawnshops have now surpassed their pre-war service volumes from 2021.
Although the total assets of non-banking financial service providers grew by 10.1% quarter-on-quarter, they experienced a slight annual decline of 0.2%. The insurance segment showed particularly robust health indicators:
- High-liquidity components made up 85.1% of the admitted assets for non-life insurers,
- For life insurers, this figure reached an even higher 95%.
Net profit for non-life insurers doubled in 2025, while life insurers saw their net profit grow by 30.9% year-on-year.
Credit unions, however, reduced both their total assets and their loan portfolios. The average share of non-performing loans for credit union members remained high at 30%. The situation was brighter for financial companies and pawnshops: the volume of financial services provided in 2025 exceeded pre-war 2021 levels, and the loan portfolio of financial companies reached a historical peak. Notably, the volume of classic factoring declined after four consecutive quarters of growth. Nearly 90% of financial companies were profitable in 2025, with more than half of the segment's profit generated by Ukrfinzhytlo PJSC.
This review highlights the uneven development within Ukraine's non-banking financial sector. While insurers demonstrate resilience and profitability, credit unions are facing challenges and shrinking their asset base.
The positive results from financial companies and pawnshops, exceeding pre-war volumes, may signal a recovery in certain market segments. Nevertheless, the sector's overall declining share of assets raises concerns about its long-term viability within the national economy.
As the non-banking financial sector experiences significant fluctuations, it is essential to understand the broader context of the financial landscape in Ukraine. Recent trends indicate that many institutions have faced challenges, leading to a contraction in the sector. For more insights into the disappearance of numerous financial entities and the implications for the market, read about how the financial sector has contracted.