After one year in Ukraine’s corporate lending market, state-owned giant PrivatBank has expanded its large corporate loan portfolio from about Hr.2-3 billion to over Hr.10 billion ($48-72 million to $240 million), Chief Corporate and SME Business Officer Ievgen Zaigraiev told Forbes Ukraine.
In June 2024, PrivatBank entered the large corporate lending market, positioning itself as a new rival to Ukraine’s top banks. Already dominant in retail banking, its move intensified competition across the sector.
JOIN US ON TELEGRAM
Follow our coverage of the war on the @Kyivpost_official.
Now, more than a year later, Zaigraiev detailed the bank’s growth, client base, and future ambitions.
Including approved but undisbursed deals, the bank’s portfolio totals Hr.12-13 billion ($289–313 million), with several billion more awaiting approval. By year-end, PrivatBank expects that figure to reach Hr.12-16 billion ($289–386 million) and aims to at least double it within three to five years.
Three Focus Sectors
PrivatBank’s large corporate lending targets three main industries:
- Agriculture – farming, processing, and agri-food businesses.
- Retail – DIY, fuel, food, non-food, and medical-related sectors, including cosmetics, pharmacies, and distribution.
- Manufacturing – industrial production, renewable and conventional energy, and defense projects.
Some clients are state-owned enterprises, Zaigraiev confirmed.
From nationalization to market leader
Ukraine nationalized PrivatBank in December 2016, seizing control from oligarchs Ihor Kolomoisky and Gennady Bogolyubov after regulators uncovered a $5.5 billion fraud and the bank’s capital turned negative. Post-nationalization, PrivatBank withdrew from large corporate lending, focusing instead on small and medium-sized businesses due to risk concerns.
Russian Defense Sector Drains Civilian Labor Market, Artificially Inflating Wages
Now it’s corporate lending is enjoying a revival.
Medium-sized corporate loans rose from Hr.5 billion in December 2024 to Hr.6.5 billion in July (from $120.5 million to $156.6 million). Small business lending grew from Hr.10.9 billion to Hr.14.2 billion over the same period (from $262.6 million to $342.2 million), while microbusiness loans grew from Hr.13 billion to Hr.16 billion (from $313.2 to $385.500). Overall, PrivatBank’s net loan portfolio jumped from ₴32.7 billion in December to ₴44.9 billion in July ($798 million to $1.1 billion).
Major deals and competitive edge
The bank’s largest deal since nationalization came in late July 2025, when PrivatBank issued a ₴4.7 billion ($113.2 million) loan to state-owned energy giant Naftogaz to prepare for the heating season.
Zaigraiev stressed it was a market-rate transaction, despite both entities being state-owned, and that the bank carefully assessed Naftogaz’s financial health and the risks posed by ongoing Russian strikes on energy facilities.
“Russia’s strikes are a known fact, and it carries higher risk compared to other clients. Unfortunately, this happens everywhere in Ukraine…,” Zaigraiev said. “We understood these risks, but at the same time analyzed Naftogaz’s financial indicators. We concluded that they can borrow and repay loans.”
PrivatBank’s scale allows it to serve large companies whose borrowing needs exceed the lending limits of other banks. While its pricing is similar to competitors, it has more available resources and lending capacity, giving it an advantage in attracting corporate clients.
“Large companies that work with multiple banks come to us. The reason is that other banks have already reached their lending limits or face restrictions, for example, due to capital,” Zaigraiev told Forbes.
Competitors include Raiffeisen Bank’s Ukrainian subsidiary, PUMB, OTP Bank and OTP Leasing, ProCredit Bank, and smaller challengers such as Bank Pivdennyi and Kredobank.
Market insiders say PrivatBank’s entry has unsettled rivals.
“They are hiring professionals for its corporate loans department, and everyone is getting nervous about this, though it’s just a part of the normal competition,” one of the managers of Ukraine’s state-owned bank told Kyiv Post in June 2024. “They have enough resources to fund the sector very fast.”
Financial strength
PrivatBank is a powerhouse in Ukraine’s banking sector, accounting for 43% of total net revenues in 2024. The bank reported Hr.80 billion ($1.9 billion) in sales and Hr.440.1 billion ($955.7 million) in net profit last year.
Zaigraiev says growth will depend on loan demand and capital regulations, noting that high, 80% dividend payouts and a 50% profit tax in recent years could limit capacity. Still, he believes PrivatBank is well-positioned to cement its role as a key player in Ukraine’s corporate lending market.
You can also highlight the text and press Ctrl + Enter
