Sep 26, 2025

Banker Yevhen Berezovsky spoke about the results of the second quarter in the banking sector of Ukraine

In the second quarter of 2025, the inflow of funds from the population to banks continued and the inflow of funds from businesses resumed. Net hryvnia loans to businesses and the population continued to grow, which supported the assets of the banking sector for the second quarter in a row. This was stated by banker Yevhen Berezovsky, referring to the data of the report of the National Bank of Ukraine (NBU).

"Business continued to demonstrate high demand for loans: both short-term and long-term for capital investments. However, loans with a term of over three years grew faster than short-term ones - their growth was 13.5% compared to the previous quarter," says Yevhen Berezovsky.

According to him, in annual terms, agriculture, wholesale trade, food industry and mechanical engineering were more actively lent. Also, according to the NBU report, banks active in the segment evenly increased their loan portfolio of individuals. Over the quarter, mortgage volumes increased by 6.5%.

All groups of banks increased their loan portfolios during the second quarter, with state-owned banks being the most active. Privatbank was the leader in terms of growth rates, which, after a slight reduction in its loan portfolio in the previous quarter, increased it by a record 20.6% in the second quarter (21.9% year-on-year).

According to the NBU, solvent banks received UAH 2025 billion in net profit in the first half of 78, which is 1,1% lower than in the first half of last year. However, in the second quarter, profit decreased by 2,1% compared to the previous quarter.

Lending was a key driver of bank assets and profitability during the period. With loan yields rising, net interest margin increased to 7,5%, and net interest income grew by 14,2% year-on-year.

"The banking sector remains profitable, which maintains an adequate capital buffer. The growth in net assets of private and foreign banks is slightly faster," says banker Yevhen Berezovsky, analyzing NBU data.

He also recalled that during the second quarter, the NBU discount rate remained at 15.5% per annum. Rates on NBU certificates of deposit also remained unchanged.

"At the same time, deposit rates continued to grow, reflecting competition between banks for depositors' term funds. Average bank rates by UIRD were higher than in the previous quarter, in particular by 12 pp for 0.5-month hryvnia deposits. The yield curve remained inverted in the second quarter, and only at the end of July did the rate on one-year deposits barely exceed the cost of three-month deposits. The rate on new hryvnia agreements (including demand deposits) with individuals increased by 0.7 pp to 10.5% per annum during the quarter, and on agreements with business entities by 0.8 pp to 10% per annum," the banker states.