In state-owned banks, the share was down from 57.4% to 56.4%.
The share of non-performing loans (NPL) in Ukrainian banks as of April 1, 2021, decreased to 39.9% against 41% reported at year-start, the National Bank says.
In state-owned banks, their share was down from 57.4% to 56.4% over the quarter, the NBU notes.
"Recall that the banks started in 2020 their large-scale work on cleaning portfolios, writing off a total of 30.6 billion in national currency and 3.1 billion in dollar equivalent in foreign currency of reserved debt," the report said.
The NBU said banks with foreign capital in the first quarter also improved their performance: the share of NPLs decreased from 27.9% to 27.3%. At the same time, the best dynamics was seen in the group of banks with foreign capital excluding Russian banks – a decrease in the share of NPLs from 13.3% to 11.5%.
Banks with Ukrainian capital in the first quarter reduced the share of non-performing loans from 14.6% to 13.2%.
"Our goal remains unchanged – to reduce the share of NPLs in the sector's loan portfolio below 20% before 2025," the central bank stressed.
Background
In 2020 the share of non-performing loans in banks decreased by 7.4 percentage points, from 48.4% to 41%.