Ukrainian banks have achieved record profits: what has been the main driver of growth

According to the National Bank of Ukraine's Banking Sector Review for the third quarter of 2025, hryvnia loans have been growing rapidly for the third consecutive quarter, significantly impacting the increase in bank sector assets. The share of non-performing loans has decreased to 25%, a ten-year low, while the penetration of loans to GDP has increased.

The penetration of loans to GDP is important for banks, as it has begun to rise at an accelerating pace for the third consecutive quarter after a pause. Market lending outside of government support programs aims to maintain a quality portfolio, which in turn lowers interest rates on loans.

Recently, loans have been continuously increasing for private and certain state companies across various sectors of the economy, such as trade, financial services, manufacturing, agriculture, energy, and the food industry. Long-term loans for capital investments are also on the rise, indicating the willingness of businesses and banks to invest even amidst the war.

The increase in sector lending could potentially lead to a possible rise in the profit tax rate to 50% in the coming year. Such a decision could negatively affect the sector's stability, its lending activity, investment attractiveness, and the prospects for the privatization of state banks.

Ukrainian banks continue to actively lend to the economy, which can have both positive and negative impacts on the financial stability of the country as a whole.