Share of Non-Performing Loans Falls to 11.5%, but Loan Default Risks Persist

Despite intensified missile and drone attacks on Ukrainian businesses, the banking system continues to demonstrate a positive trend in reducing problem debt.

This was reported by Olena Yermolova, Risk Management Director and Member of the Management Board of GLOBUS BANK.

The banker recalled that, according to the National Bank of Ukraine, as of October 1, 2026, the share of non-performing loans (NPLs) stood at 11.5%, down 2.5 percentage points from the beginning of the year. The NPL ratio for business loans declined to 13.7%, while for household loans it fell to 9.6%.

The total loan portfolio of Ukrainian banks increased by 20.5%, or UAH 278.8 billion, to UAH 1.639 trillion between January and September. Meanwhile, the volume of non-performing loans decreased by just 0.8%, or UAH 1.5 billion, to UAH 187.8 billion.

According to the expert, these figures indicate a gradual improvement in the quality of banks' loan portfolios, but they do not mean that loan default risks have disappeared.

She noted that the reduction in the NPL ratio is also influenced by debt restructuring, repayment of problem loans, and the write-off of old debts.

“The decline in the share of non-performing loans is undoubtedly a positive signal. However, it is important to understand that this indicator depends not only on how much problem debt has been repaid or resolved. It also decreases as banks actively extend new loans to creditworthy customers. In other words, the loan portfolio is growing, making the share of old problem debts smaller in relative terms. That is why we must assess not only the overall statistics but also borrowers' actual ability to service their loans”, — Olena Yermolova explained.