Despite wartime pressures and the high cost of funding, Ukrainian banks’ loan portfolios expanded sharply in 2025. Who are banks lending to, and what are they willing to finance?
In 2025, Ukrainian banks’ total loan portfolio grew by 22%, reaching a record UAH 1.3 trillion. Comparable growth rates were last seen in 2005-2008. By comparison, lending increased by 11% in 2024, while in 2023 and 2022 the loan book contracted by 3% and 6%, respectively. These are nominal figures – once adjusted for inflation, the contraction in 2022-2023 appears even more pronounced. Note that currently available statistics run only through November 2025, meaning full-year results may ultimately be stronger.
Figure 1. Banks’ loan portfolio, end-of-period balances (UAH, billion)
Source: National Bank of Ukraine. Note: the latest available data are as of the end of November 2025.
Loan growth was partly driven by a 10% depreciation of the hryvnia (from 38 to 42 UAH/USD over 2025). However, since foreign-currency loans account for about 22% of the banking system’s portfolio, the overall impact of devaluation did not exceed 2-3%. In real terms (adjusting for inflation and depreciation) total lending expanded by at least 10%.
Traditionally, the bulk of the loan portfolio consists of corporate lending (74%), with just over a quarter going to households. The share of household loans rose from 22% in 2021-2022 to 25% in 2025.
Business lending structure: core sectors take priority
As of November 2025, the sectoral structure of corporate lending remains essentially unchanged (Figure 2) – the largest and most resilient parts of the economy received the biggest credit volumes. Nearly 41% (UAH 376 billion) of lending is concentrated in wholesale and retail trade, as this sector tends to recover first from shocks, resuming operations after both lockdowns and missile strikes or power outages.
Manufacturing received one-fifth of total lending (UAH 187 billion). Almost half of this segment’s loans go to food producers (44%). Second place (19%) is held by manufacturers of “other transport equipment,” excluding motor vehicles (in 2021, machinery and equipment ranked second). As in 2021, metallurgy ranks third among manufacturing recipients, accounting for 13% of loans to the sector.
The agricultural sector’s share of total lending stood at 15.2% in November 2025 (4.5 percentage points higher than in November 2021). The shares of all other sectors do not exceed 10%.
Figure 2. Distribution of corporate loans by sector (%)
Source: National Bank of Ukraine. Note: the latest available data are as of end-November 2025.
Figure 3. Distribution of corporate loans by maturity (UAH, billion)
Source: National Bank of Ukraine. Note: the latest available data are as of end-November 2025.
As shown in Figure 3, loan maturities have edged longer: while the share of loans with maturities over five years declined from 14% in 2021 to 12% in 2025, the share of loans with maturities of one to five years rose from 33% to 40%. In wartime conditions and amid significant uncertainty, this is an encouraging signal.
One of the key drivers of corporate lending during the full-scale invasion has been the government business-support program “Affordable Loans 5-7-9%”. Under the program, the state covers part of the interest payments, lowering borrowing costs for businesses. In the early years of the full-scale war, subsidized loans were available to virtually all firms; today, the program is gradually returning to its original purpose – supporting small businesses.
Household lending: mortgages revive, but consumer credit still dominates
Since the start of the year, household lending has grown by 24%. By comparison, household credit rose by 20% in 2024, just 7% in 2023, and fell by 15% in 2022.
Figure 4. Structure of household loans (UAH, billion)
Source: National Bank of Ukraine. Note: the latest available data are as of the end of November 2025.
As before, consumer loans (such as credit cards and installment purchases) account for over 80% of the portfolio. The share of mortgages in total household lending has remained broadly stable since 2021, at around 13%. What has changed is the balance between subsidized and unsubsidized loans: before 2022, conventional mortgages accounted for the bulk; after the full-scale invasion, loans issued under government programs took the lead.
55% of outstanding housing loans are concentrated in Kyiv and the Kyiv region. The Lviv (5%) and Odesa (4%) regions follow at a distance. The Dnipropetrovsk, Vinnytsia, Ivano-Frankivsk, Rivne, and Chernihiv regions each account for 2-3%.
In sum, despite elevated wartime risks, Ukraine’s banking system remains resilient, and rising lending activity points to adaptation by both the financial sector and borrowers to prolonged uncertainty. Accordingly, the role of government credit-support programs is declining.
Photo: depositphotos.com/ua/
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