Lending to Ukrainian businesses and households expanded by more than 33% in August as companies increasingly opted for hryvnia loans, helping sustain the country’s banking sector despite the ongoing war, data from the National Bank of Ukraine (NBU) showed, reported Ukraine Business News.

Gross business loans in the national currency were up 19.3% year-on-year, while household loans rose by 25.3%, compared with 17.6% and 24.5% growth in July. The NBU said non-performing loans (NPLs) accounted for 26.1% of the total portfolio at the end of July.

Excluding NPLs, net hryvnia loans surged more sharply. Net loans to businesses climbed 33.7% year-on-year, while net loans to individuals increased by 33.3%. In contrast, net foreign currency loans to businesses rose by just 6.7%.

Analysts said businesses were increasingly borrowing in hryvnias due to more favourable terms, a trend that is reducing dollarisation in the loan portfolio and strengthening the resilience of the financial system.

“The strong appetite for hryvnia lending underlines both the stability of the banking system and companies’ focus on predictable financing costs,” one Kyiv-based banker said.

The NBU noted that active lending is supporting the sector’s assets and profitability, and forecast that high growth rates will continue through the end of 2025. Banks are considered well-capitalised and stable, even amid pressures on corporate liquidity.

Despite a temporary decline in hryvnia balances on company accounts in August, the central bank said the system’s liquidity remained stable.

The data highlight the role of domestic banks in sustaining business activity and consumer demand during wartime, as external borrowing opportunities remain limited.