Photo: NBU

The share of non-performing loans (NPLs) in Ukraine dropped below 30% in the first quarter of 2025 for the first time since 2022, according to data from the National Bank of Ukraine.

As of April 1, the NPL ratio stood at 28.6%, down 1.7 percentage points from the beginning of the year.

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The total volume of NPLs decreased by UAH 10.7 billion, or 2.7%, to UAH 382.6 billion in the first three months of 2025.

This continues a downward trend in NPLs that began in early 2023, driven by the write-off of non-performing corporate and retail loans, as well as an increase in the issuance of high-quality hryvnia-denominated loans by banks.

Banks with the highest NPL ratios in Ukraine include state-owned PrivatBank (51.9%) and privately owned Alliance Bank (41.4%) and Idea Bank (39.6%).

  • Historically, the highest level of NPLs in Ukraine's banking system was recorded in 2017, following the nationalization of PrivatBank (56.2%), while the lowest was in 2008 (3.1%).
  • The NPL share declined steadily from 2018 to 27% in March 2022, but surged to 39% in 2023 due to the impact of the war with Russia.
  • As of 2025, banks in Ukraine have adopted European standards for calculating non-performing loans.