“Lending is the Main Business Need in 2025” – Deputy Chairman of the Management Board of Pivdenny Bank, Andrii Bukin

This year, the corporate lending market is expected to grow by 15–20%, and Pivdenny Bank plans to grow twice as fast. In an interview with New Voice magazine, Andrii Bukin, Deputy Chairman of the Management Board of Pivdenny Bank, shared more details.

— The war has had a significant impact on all areas of the economy, including the banking sector. How has the bank’s strategy changed as a result?

— We recently approved a new five-year development strategy with a primary focus on strengthening our position in the corporate segment. Our main market includes medium-sized businesses (with turnover from UAH 300 million) and large businesses (from UAH 1.5 billion), which actively invest in development, require financing and conduct export-import operations.

— What practical results has this strategy delivered?

— Pivdenny already confidently ranks among the top 10 banks in terms of corporate lending volume. According to 2024 results, we took fifth place among banks with the most dynamic growth of their corporate loan portfolio. Over the past year, the bank’s corporate loan portfolio grew by more than 40% – by UAH 7.5 billion. This is our absolute record over the last five years. Notably, 60% of this growth came from new clients. Businesses trust Pivdenny – and that is the best confirmation of our strategy’s effectiveness. At the same time, our NPL ratio remains one of the lowest in the system – around 5%, compared to the market average of 30%.

— What new lending solutions are you ready to offer today?

— For medium and large businesses, lending remains a key need. In 2024, we launched a large-scale credit process reengineering project focused on speeding up decision-making, streamlining the disbursement process, improving credit policy, and enhancing client communication. We’re also actively expanding our product range. Among our new offerings are customs guarantees and VAT-backed loans. We’re also preparing to launch guarantees for fuel market players – these will soon become essential for all fuel importers.

— Which corporate sectors are your main focus and why?

— Pivdenny Bank has traditionally had strong positions in key sectors of the Ukrainian economy – agriculture, processing industries, trade, and manufacturing. We actively support both working capital lending and investment project financing. In fact, we see investment lending as one of the key and most promising areas of bank financing. In 2024, investment lending accounted for around 30% of the growth in our credit portfolio. These projects include enterprises in processing, agriculture, real estate development, energy, logistics and agri-trading. We believe that investment by Ukrainian companies is not just a short-term trend, but a strategic vector for economic development.

— You’ve completed several deals in the energy sector. What is the situation in that segment now?

— The energy market has changed significantly over the past three years. The key development was the synchronisation of Ukraine’s power system with the European ENTSO-E grid and its operation in isolation from the power systems of the Russian Federation and Belarus. At the same time, Ukraine’s energy infrastructure has suffered extensive damage – distribution and transmission networks and generation facilities have been destroyed, resulting in a power shortage of over 10 GW. The shift towards a new, decentralised generation model and the restoration of damaged infrastructure is now underway. Ukraine is actively implementing a mix of energy sources and automation of technological processes.

— What development opportunities do you see here?

— First, there is growing demand in Ukraine for energy storage systems to support and restore grid frequency, as well as for high-flexibility generation. Gas-fired reciprocating generators are an optimal solution for this. We see this as a promising segment and have already implemented projects totalling around $20 million. Second, decentralised generation facilities for businesses. Due to the risk of disconnection from external power grids, companies are actively investing in their own generation. In particular, medium-sized and industrial businesses are installing rooftop solar panels to meet internal needs. The bank finances such projects, as they help reduce energy dependence and optimise costs. Third, the development of energy infrastructure. We are working with companies that design large-scale energy facilities, including transmission and distribution networks and power generation stations.

— What are the bank’s future priorities, and how do you define them in the current conditions?

— Our short- and medium-term priorities are closely tied to macroeconomic forecasts and the realities of Ukrainian business. We align our plans with the scenarios laid out in the state budget and the forecasts of the National Bank of Ukraine. We expect moderate economic growth of around 3.5%, inflation at around 10%, and a budget deficit of 20%. In 2025, active corporate lending remains our key focus. We forecast 15% growth in the corporate lending market and aim for a more ambitious target of 20‑25 %. To achieve this, we’ll focus on traditional products – financing of foreign trade operations, working capital loans, investment financing, and forex transactions.

— What is your forecast for the banking sector in 2025?

— Despite the challenging environment, we expect a gradual revival of business activity and an increase in investment into Ukraine’s economy. Capital outflow restrictions will likely remain in place, encouraging companies to invest in developing their own production capacities, energy infrastructure, and processing industries. This will sustain demand for bank financing. The 2025 budget outlines further growth of assets, deeper penetration into target client segments, and the development of a resilient business model.