Non-performing loans in Ukraine drop to 27%, lowest since 2022

The share of non-performing loans (NPLs) in Ukraine fell to 27% in Q2 2025, marking the lowest level in three and a half years, according to data from the National Bank of Ukraine (NBU). This represents a decline of 3.3 percentage points compared to the beginning of the year.

The last time the NPL ratio was at a similar level was in March 2022, at the onset of the full-scale war.

The highest NPL ratios are recorded at state-owned PrivatBank (46.4%), as well as at private banks Alliance (43.5%) and Idea (39.4%).

Excluding legacy debt — namely, non-performing loans from PrivatBank’s former owners and old bad debts of state-owned banks — the adjusted NPL ratio as of July 1, 2025, is 21.6% for state-owned banks and 16.1% for the banking system overall.

According to the NBU, the key driver behind the decline in the NPL ratio in H1 2025 was the growth of high-quality new loans. The gross loan portfolio of the banking system expanded by UAH 133.7 billion, or 10.3%, reaching UAH 1.432 trillion during this period.

Overall, the downward trend in NPLs has been ongoing since early 2023, supported by the write-off of non-performing corporate and retail loans, and an increase in the issuance of high-quality hryvnia-denominated loans.

• Meanwhile, Bloomberg reported in late June, citing unnamed sources, that Russian banks may face a systemic crisis within a year due to the sheer volume of bad loans, estimated to be in the trillions of rubles.