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High rates of granting new loans contributed to a reduction in the share of the segment's non-performing loans to 38%.
The National Bank of Ukraine (NBU) says the household loans portfolio in Ukrainian banks in July-September 2019 (Q3) increased by almost 30% year-over-year (y-o-y).
High rates of granting new loans contributed to a reduction in the share of the segment's non-performing loans to 38%, according to the NBU's website.
At the same time, the central bank noted a slowdown in the growth rate of loans to corporate borrowers due to their raising loans abroad.
In general, the portfolio of net corporate loans in hryvnias, Ukraine's national currency, in Q3 grew by 1.9% y-o-y, while the share of non-performing loans decreased thanks to a number of restructuring transactions by banks.
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In addition, hryvnia loans taken by businesses over the period under review fell by 0.5 percentage points, to 18.1% per annum, while those in foreign currency shrank by 0.6 percentage points, to 4.5% per annum.
At the same time, the strengthening of the hryvnia contributed to a decrease in the dollarization of the net loan portfolio of businesses and the population to 44.8% and 4.4%, respectively.
As UNIAN reported earlier, Ukrainian solvent banks in January-September 2019 received UAH 48.35 billion (US$2 billion) in profit, which was up 4.4 times up from UAH 10.9 billion (US$446 million) year-over-year.
The National Bank expects that the banking system's profit will grow in 2019 after a historic maximum in 2018, when operating banks received UAH 21.7 billion (US$887 million) in net profit.
This was preceded by four unprofitable years for the banking system. So, the system posted UAH 26.5 billion (US$1.1 billion) in loss in 2017, UAH 159.4 billion (US$6.5 billion) in 2016, UAH 66.6 billion (US$2.7 billion) in 2015, and UAH 52.7 billion (US$2.2 billion) in 2014.