Financial sector news

The National Bank of Ukraine has presented its NBFIS Review for the third quarter of 2025, which focuses on the activities of insurers, credit unions, financial companies, and pawnshops under the regulatory supervision of the NBU. The document highlights key market trends and provides an assessment of the sector as a whole.

Key findings:

• The assets of insurers and pawnshops continued to grow, while financial companies stabilized after a previous decline.
  
  
• Credit unions increased their consumer lending volumes. Lending, factoring, and leasing volumes increased.
  
  
• The decline in the number of non-bank financial institutions slowed, and the sector's total assets grew. The share of non-bank financial institutions supervised by the NBU remained at a historic low of 8.9%.
  Insurers:
  
  
• The assets of non-life insurers grew by 10% q-o-q and 31% y-o-y, while those of life insurers grew by 3% q-o-q and 15% y-o-y.
  
  
• The main drivers of premium growth were motor and health insurance (non-life) and endowment life insurance (life).
  
  
• All insurers complied with solvency capital requirements (SCR) and minimum capital requirements (MCR).

Credit unions:

• The number of unions and their assets decreased due to the revocation of licenses from violators. The 10 largest unions control 61% of assets.
  
  
• The volume of new consumer loans increased, while loans to entrepreneurs decreased. The share of loans overdue for more than 90 days decreased to 25%.
  
  
• All unions complied with the regulatory capital adequacy ratio H1; only one had a liquidity deficit.

Financial companies and pawnshops:

• The assets of financial companies recovered after a decline. New business loans reached a record high during the war, while retail lending remained consistently high for five quarters.
  
  
• The growth in traditional factoring volumes continued for the fourth consecutive quarter.
  
  
• Pawnshops increased their assets and profits. Only one company did not meet the minimum capital requirement (in the process of merging with another company).

Outlook and risks:

• From January 2026, insurers will form technical reserves using a new methodology, and financial companies will comply with updated prudential requirements.
  
  
• Significant companies, the list of which will be published by February 2026, will comply with additional requirements with a transition period until July.