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Activity of Non-bank Financial Service Providers Gradually Recovers – Q3 2022 Non-bank Financial Sector Review

Activity of Non-bank Financial Service Providers Gradually Recovers – Q3 2022 Non-bank Financial Sector Review

In Q3, market participants reported growth in main financial services, despite a decrease in the number of financial institutions. The growth was seen in all types of provided services, although their volumes remained below the pre-war levels. The change in the size of assets varied across market segments during the quarter, with only insurers showing positive dynamics. Therefore, the share of non-bank financial institutions (NBFIs) in total assets of the NBU-regulated financial sector shrank by 0.4 pp, to 11.9% as of 1 October.

The NBU re-imposed a number of regulatory requirements for market participants, in particular with regard to compliance with financial ratios and reporting deadlines. Market participants must meet these requirements in order to continue their operations. 

This is according to the quarterly Non-bank Financial Sector Review.


Insurers’ assets grew by 7.5% in Q3 2022, despite the decrease in the number of companies on the market. Compared to Q2, nonlife insurance premiums increased by more than a third, while claims paid rose by 22%.

Life insurers’ gross premiums increased by more than a quarter in Q3. Claims paid increased by 40% qoq and 23% yoy. Insurance premiums grew across all insurance types.

Cost-to-income ratios of insurers somewhat deteriorated due to larger provisions and business costs. 

Nonlife insurers generated a record-high profit over the first nine months of the year, which was largely due to gains from FX revaluation. Life insurers recorded a small profit in Q3.

As of 1 October 2022, 6 insurers violated at least one of solvency and risk requirements, compared to 13 companies as of 1 July 2022.

Credit Unions

The number of reporting credit unions continued to decrease in Q3 2022. Assets fell by more than a third over the quarter, and the loan portfolio shrank by 8%. 

As a result of even a moderate increase in provisioning costs, the sector posted a loss for the quarter, while the profit of the first nine months of 2022 declined to UAH 18.5 million. Deposits and additional share contributions also continued to decline in volume by 13% and 18% qoq, respectively.

As of 1 October 2022, only two credit unions were in breach of capital adequacy ratios.

Finance Companies and Pawnshops

Assets of finance companies remained almost unchanged in Q3, although many market participants suspended their business. Increases in retail lending, transactions on provided guarantees, new factoring transactions, and financial leasing services implied that the market was recovering. Overall, finance companies generated a profit in the first nine months of 2022.

Pawnshops’ activity picked up in Q3, making them profitable the first time since the start of the year thanks to higher interest income.

For reference

The Non-bank Financial Sector Review is a quarterly report that was first published by the National Bank of Ukraine in October 2020.

It focuses on the activities of NBU-regulated non-bank financial institutions, which are insurers, credit unions, finance companies, and pawnshops. The review highlights key trends in the non-bank financial market and provides comprehensive insights into its performance.

The review has been prepared using the information from the financial institutions that submitted their relevant reports to the National Bank of Ukraine as of 19 November 2022.

As they filed their earnings reports for Q3 2022, NBFIs, at the regulator’s request, adjusted their reporting figures or submitted reports for previous periods (in particular for Q4 2021 and Q1 and Q2 2022).


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