In Ukraine, the volume of lending to businesses and individuals is on the rise.

Credit lending to businesses and individuals in Ukraine has been on the rise for a year and a half, while the quality of the loan portfolio has been improving for over a year. In the third quarter of 2024, the volume of clients' loan portfolios increased by 22.4%.

This was reported by the NBU.

Loans in the wholesale trade and agricultural sectors grew particularly rapidly, with the share of small and medium enterprises (SMEs) reaching 60% of the total volume of corporate loans.

The volume of bank assets rose by 1.8%, with investments in government bonds increasing by 8.9% over the quarter and by 39% compared to last year. Meanwhile, the volume of NBU deposit certificates continues to decline. In the last quarter, hryvnia loans to businesses increased by 6.9%, while loans to individuals grew by 9.7%.

The improvement in lending conditions has contributed to the rising demand for loans, including mortgages, primarily under the state program "eOselya." At the same time, the share of non-performing loans (NPL) in the system decreased to 32.3%, indicating an overall enhancement in the quality of the loan portfolio.

The financial results of banks remain stable – in the third quarter, profits amounted to 38.6 billion UAH. The transition to new capital standards according to European norms also occurred without complications. However, the renewed increase in the profit tax rate to 50% in 2024 may pose a challenge for some banks, which will need to adjust their business plans and strengthen capitalization.

Next year, the NBU plans to return to a full assessment of banks' stability, including stress testing.

Background. Earlier, Mind reported that Ukrainian banks earned 118 billion UAH over 9 months thanks to lending and government bonds.