Ukraine’s non-bank financial sector recorded uneven performance in the second quarter of 2025, with growth in insurance and pawnshop segments offsetting declines in some credit unions and financial companies, reported Ukraine Business News.

Total assets of non-bank financial service providers fell 11.7% from the previous quarter, largely due to the voluntary surrender of a major state-owned leasing company’s licence. However, assets were up 1.8% compared with the same period last year.

Risk insurers led growth, with assets rising 8% quarter-on-quarter and 26% year-on-year, while life insurers’ assets gained 3% and 12%, respectively. Risk insurers also reported higher profits.

Credit unions showed divergent trends: deposit credit unions saw their assets contract, while share credit unions posted asset growth despite a decline in their numbers. The sector issued 11% more new loans, with overall loan volume and quality holding steady. Equity capital of credit unions rose 11.4% quarter-on-quarter and 8.7% annually.

Financial companies’ assets dropped 16.4% from the previous quarter, though their lending and leasing activity expanded. Nearly 82% of all non-bank financial institutions reported profits, with almost half of total earnings generated by the state-backed Ukrainian Financial Housing Company, Ukrfinzhytlo.

Pawnshops continued to grow, with assets up 1.9% in the quarter and 15.4% year-on-year, while lending jumped 16.7%, making the segment profitable.

Analysts said the figures reflect a sector adjusting to wartime pressures and structural changes, with insurers and consumer lending businesses showing resilience even as other parts of the market consolidate.