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Banks reduce hryvnia loan portfolio of individuals, raises business portfolio in Q2 – NBU
KYIV. Aug 16 (Interfax-Ukraine) – Ukrainian banks in January-July 2022 reduced the hryvnia loan portfolio of the population, but increased their business portfolio, according to an overview of the banking sector published on the website of the National Bank of Ukraine (NBU).
According to it, in the second quarter, the volume of net corporate hryvnia loans increased by 5.3% (mainly due to state-owned banks, which increased by 30% over the quarter), and in foreign currency decreased by 7.2%.
It is indicated that the net retail loan portfolio decreased by 11.1% due to a decrease in lending and an increase in reserves.
According to the NBU, the share of NPL increased by 2.6 percentage points over the quarter – up to 29.7% primarily due to the growth in the share of corporate non-performing loans – by 3.7 p.p.
It is noted that the cost of three-month deposits of the population in hryvnia increased by 0.7 percentage points, to 8.1% per annum, so that the spread between three-month and 12-month deposits sharply decreased – from 1.4 percentage points to 0.4 p.p.
According to the regulator, in the second quarter, banks increased allocations to reserves for expected risks, which caused the sector’s loss in the second quarter in the amount of UAH 4.5 billion.
The NBU predicts that losses from the realization of credit risk will continue to grow.
The regulator expects banks to assess credit losses in a timely manner, carry out weighted restructurings if possible, and fully reflect the impact of negative events on asset quality.
