Ukraine's banking sector non-performing loan share fell to 12.5% as of July 1, 2026, reaching its lowest level in nearly 17 years. The National Bank of Ukraine reported that the rate for individuals stood at 10.1%, while non-performing loans for legal entities reached 15.0%.
The central bank stated that the overall share has dropped by 1.5 percentage points since the beginning of the year and by 14.1 percentage points since March 2022. The figure represents the lowest level recorded since October 1, 2009.
Loan growth across Ukrainian bank groups
The National Bank of Ukraine attributed the decline during the first six months of the year to an increase in higher quality new loans and the resolution of non-performing debt. Gross loans in the banking system grew by 154.3 billion hryvnias, or 11.3%, to 1.514 trillion hryvnias during the first half of the year. At the same time, the total volume of non-performing loans decreased by 739 million hryvnias, or 0.4%, to 188.6 billion hryvnias.
Reductions in non-performing loan shares occurred across all category groups of banks. State-owned banks recorded a drop to 18.0%, private Ukrainian banks fell to 7.7%, and foreign-capital banks declined to 5.5%.
In the first quarter of 2026, the overall share of non-performing loans had dropped to 12.9%. The trend followed actions in December 2025, when state-owned banks wrote off more than 170 billion hryvnias in old non-performing assets, bringing the share to a 15-year low and causing PrivatBank to lose its long-standing position as the bank with the highest share of non-performing loans.
