“Corporate Lending is Breaking Records of the Last Decade,” Andrii Bukin, Deputy Chairman of the Management Board of Pivdenny Bank

Despite the general perception of slowing business activity, Ukrainian businesses are demonstrating growth, and corporate lending is at its highest level in the past decade. This was stated by Andrii Bukin, Deputy Chairman of the Management Board of Pivdenny Bank, during the Forbes Banker Forum.

“Today, Ukraine’s banking system is showing the strongest business lending growth in the past 10 years – 30%. We have not had such a dynamic year for a long time. We do not see a shortage of ideas or projects; on the contrary, the demand for financing exists, and it primarily concerns fast, clear and transparent relations between the bank and the client,” he noted.

Among the sectors in which Pivdenny Bank traditionally operates are trade, agriculture, and FMCG. At the same time, according to Mr. Bukin, the military sector is developing rapidly, with more than 900 private companies doubling their activity over the past two years.

In his opinion, the key challenge for corporate banking is not sectoral specialization but product expertise. The market requires the development of long-term financing and investment tools (project finance). Therefore, the banking system needs to learn how to work with large investment projects – long-term, specific, and structured. This is the direction in which corporate lending should continue to grow.

Speaking about client quality, he stressed the importance of properly evaluating businesses under challenging conditions:

“Businesses have been operating under wartime conditions for four years. If a company is functioning, paying salaries, maintaining its team, and continuing its operations during the war, then this is already a sign of a viable business. Its reporting might not be perfect, but that does not mean the client is low-quality. Often, it is a matter of understanding how the company’s business model works”.