Non-performing loans in Ukraine reached their lowest level in 10 years — 25%

The share of non-performing loans (NPLs) in the Ukrainian banking sector fell to 25% as of October 1, 2025, which is the best result in the last decade. This is happening despite the conditions of war, and the reduction in NPLs was made possible by the write-off of old debts and active lending with new high-quality loans. These data were published by the National Bank of Ukraine, confirming the trend of recovery in the banking system.

Source: Minfin

The current indicator shows a significant improvement compared to the beginning of 2025, when the share of NPLs was 5.3 percentage points higher. In the first stage of the war, the share of defaults reached 20%, which led to a peak in NPLs of 39.1%. However, starting in mid-2023, the situation began to improve steadily thanks to active lending and the cleansing of bank balance sheets from old problem loans.

Despite the positive changes, the National Bank notes that the overall figure of 25% still includes a significant amount of old problem loans from state-owned banks. If these loans are excluded, the real NPL ratio for state-owned banks is even lower. The high share of non-performing loans poses a threat to the financial stability of banks, as it affects their income and their ability to meet their obligations.