Page 42 - UKRRptNov20

The NPL data has not been updated by the sector average remains just under 50%,​ where most of the NPLs are concentrate in the state-owned banks and amongst those most of the NPLs are concentrated in PrivatBank alone, which has an NPL ratio of over 80%. Nearly the entire PrivatBank loan book is fake loans issued while the bank was under the control of oligarch Ihor Kolomoisky, who issued the loans to companies controlled by himself and his partners. While the new management at the now nationalised PrivatBank are trying to recover these loans it will take years to track the money down and have it returned. Legal cases are running in both the UK and Cyprus to do this and are making slow progress.
Retail NPLs ticked up from April​, but happily they have been controlled and remain at a manageable 35% of the total retail portfolio, an addition of only 2pp since the start of this year to October. This has reversed the trend of falling retail NPLs that ran over all of 2019 when retail NPLs started 2019 at 46% and so fell by a total of 11pp over the course of the year.
Corporate lending remains depressed ​and after a bump at the start of epidemic has remained more of less flat.
Retail lending however, has climbed steadily, albeit modestly. ​Retail loans increased from UAH214bn to UAH225bn over the first ten months of this year, or a gain of 5.1%. The increase year-on-year was also 5.1% as there was no growth in retail lending at the end of 2019.
42​ UKRAINE Country Report​ November 2020 ​ ​www.intellinews.com