The share of non-performing loans (NPL) in the total volume of loans in Ukraine in March 2018 grew by 0.18 percentage points (p.p.), to 56.38% as of April 1, 2018, according to the National Bank of Ukraine (NBU). The total loan portfolio expanded by 0.4%, to UAH 1.117 trillion.
The ratio of NPL and the credit portfolio of state-owned banks grew by 0.15 p.p. in a month, to 72.29%, that of foreign bank groups fell by 0.65 p.p, to 45.27%, that of banks with private capital fell by 0.04 p.p, to 24.8% and insolvent banks grew by 0.22 p.p, to 58.44%.
Since the start of the year, the share of NPL has grown by 1.84% and the portfolio has expanded by 2.42%.
The share of troubled assets of the banking system, taking into account off-balance sheet liabilities, was 29.67% (0.22 p.p. up). As of April 1, 2018 these assets totaled UAH 2.214 trillion (0.04% down in a month and 0.7% up since early 2018).
The NBU first published statistics for NPL meeting the requirements in resolution No. 351 dated June 30, 2016 on assessment of credit risks in March 2017. The resolution says that NPL notion as close as possible to the common notion in global practice “non-performing exposures/loans” (NPE/NPL).
According to the new rules, NPL are loans overdue for over 90 days (30 for banks) or it is unlikely that the debt without seizing collateral can be collected.