09:54 10.08.2015

Banks forecast rise in individuals' deposits in Q3, but conservative about loan portfolio volume, credit quality - NBU

1 min read
Banks forecast rise in individuals' deposits in Q3, but conservative about loan portfolio volume, credit quality - NBU

Ukrainian banks retain conservative forecasts for the third quarter of 2015 with respect to changes in the volume and quality of loan portfolios, while improving their expectations of growth in deposits, according to an analytical report on the survey conducted by the National Bank of Ukraine (NBU), posted on its website.

"In the third quarter of 2015 respondents expect a decrease in the portfolio of loans to business entities (58% of responses) and individuals (72% of responses), and the consistent quality of loans (63% of responses for economic entities and 55% for individuals). However, the majority of respondents expect deposits to grow (44% for legal entities and 68% for individuals)," reads the report.

In addition, according to the NBU, the banks kept pessimistic expectations on the key credit indicators. So, over the next 12 months they predict a decrease in the volume and the deterioration of the quality of the loan portfolio both for legal entities and individuals.

In the third quarter, the banks forecast the further tightening of standards for agreement of credit applications, suggesting, however, that it will not be too fast.

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