The National Bank of Ukraine explained the rise of pawnshops and the decline of credit unions

The National Bank of Ukraine has published an analytical review of the non-bank financial sector for the first quarter of 2026. The report notes significant market growth: the total share of non-bank financial institutions in assets under the NBU’s supervision increased by 0.2 percentage points and now stands at 9%. Pawnshops and insurance companies demonstrated the strongest growth in profits and assets, while the credit union segment saw a contraction in capital. 

This was reported by the regulator’s press service.

The pawnshop segment showed one of the most positive trends in the market. The sector’s key financial indicators for the first quarter are as follows:

• The total assets of pawnshops increased by 9.7% compared to the previous quarter (with an annual growth rate of 7.4%).

• The volume of new secured microloans issued grew by nearly 10%.

The National Bank attributes the record profitability of pawnshops to a combination of several factors. First, revenues from the direct provision of financial services and the prompt sale of unclaimed collateral assets increased significantly. Second, companies successfully optimized their internal processes, significantly reducing their administrative expenses.

Credit unions showed the opposite trend—their total assets decreased by 3.9% over three months. Despite the overall decline in assets, there are positive developments within the segment. Credit unions were able to increase the volume of new loans issued by actively expanding lending to individual entrepreneurs (FOPs). Moreover, the sector managed to remain profitable thanks to strict cost control and cuts in operating expenses.

Other players in the non-bank financial market ended the first quarter with the following results:

• Insurance market: Growing steadily across all segments. Assets of companies engaged in non-life insurance increased by 2.9% for the quarter (and by a record 31.5% compared to the same period last year). The life insurance segment grew by 2.6% for the quarter and by 14.5% year-over-year.

• Financial companies: Maintained total assets at previous levels. Against the backdrop of a decline in traditional factoring operations and standard lending, firms increased the volume of transactions involving the purchase of distressed debt, the provision of financial guarantees, and leasing. The sector remains highly profitable—81% of companies reported a profit, with over 50% of their total net profit coming from servicing the government’s “eOselya” subsidized mortgage program.