Income and Expenses Management at JSC “State savings bank of Ukraine”
Students Name: Hrimnak Khrystyna Andriivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: The essence of the concept of "management of bank income and expenses". This topic was studied by Ukrainian and foreign scientists, such as I. Khovrak [1], O. Lysyanska [2], A. M. Gerasimovych, I. M. Parasiy-Vergunenko [3], L. O. Prymostka [4], Sheludko V.M. [5] and others. As I.V. Hovrak says - improving the management of the bank’s income or expenses stems from the need to create trust in domestic banks, increase customers.[1] One of the authors, namely O.O. Lysyanska claims that the process of managing income and expenses should be understood as a whole, inseparable, since these processes are closely related.[2] Gerasimovych A.M., Parasiy-Vergunenko I.M. in their studies, they say that the essence of the concept of bank income management is a difficult process of creating and making management decisions, their formation and use by the bank aimed at maximizing income. As for costs, A. Gerasimovych claims that the bank’s cost management involves the process of accounting, analysis, planning and control with the aim of optimizing costs. [3] L.O. Primostka in her writings also explored the concept of managing the bank’s income and expenses, and interprets it as a process of managing various external and internal factors and processes that affect the formation of income and expenses of any bank. [4] Sheludko V.M. in his work defines the management of bank income and expenses as follows: bank income and expenses are the sum of cash flows that, as a result of management, form the bank’s income. The bank’s income must be sufficient to increase its own capital, etc. [5] In today’s conditions, the issue of income and expenditure planning remains relevant, as the challenges of modernity and the state of war have made serious adjustments to the banking system of Ukraine, because it is associated with a large risk that needs to be clearly managed. [6] The object of the research is financial and economic activity, namely the income and expenses of JSC "State Savings Bank of Ukraine". The subject of the study is theoretical, methodological and practical aspects of managing income and expenses of the joint-stock company "State Savings Bank of Ukraine" The purpose of the study is to study the theoretical and practical aspects of ways of managing income and expenses of JSC "State Savings Bank of Ukraine", and substantiating measures aimed at identifying and eliminating problems at the business entity, providing recommendations for improving the bank’s financial condition. The paper presents the theoretical foundations of the concept of bank income and expense management and analyzes the works of scientists in the field of bank income and expenses. The financial statements of the business entity were also analyzed, a horizontal and vertical analysis of the financial statement and profit and loss statement and other aggregate income of the business entity was performed, which allows to reveal the absolute and relative dynamics of each item of the financial statements of the business entity. The main analytical indicators of the bank were calculated, namely the analysis of liquidity indicators, financial stability indicators, profitability indicators, as well as indicators for the general assessment of the level of expenses. A SWOT analysis of the economic entity was carried out, where the main strengths and weaknesses of this economic entity, threats and opportunities were characterized, the factors of the macro-environment and meso-environment of the economic entity were analyzed. Economic and mathematical modeling of the indicator of the effective activity of the economic entity using the method of factor analysis was carried out, as well as forecasting of the indicator of net interest income of the economic entity was carried out based on the moving average method and the method of least squares. Recommendations for improving the financial condition are provided and project solutions are proposed to increase interest and commission income, and economic results from the proposed management solutions are determined. Key words - bank, income, expenses, analysis, financial condition, reporting, income management, expense management, income and expense analysis, economic and mathematical modeling, factor analysis, forecasting, increase in income, decrease in expenses. List of used literary sources: 1. I.V. Khovrak Building a culture of trust in the banking and insurance sectors. Financial services. No. 3, 2017, p. 3–6. 2. Lysyanska O.O. Some aspects of bank income and expenses management. Collection of scientific works "Problems and prospects of the banking system of Ukraine", Vol. 22. — Sumy, UABS NBU, 2007. — P. 99-104. 3. Analysis of banking activity: textbook / [A. M. Gerasimovych, M. D. Alekseenko, I. M. Parasiy-Vergunenko and others] ; under the editorship A. M. Gerasimovych. - K.: KNEU, 2004. - 599 p. 4. Primostka L. O. Financial management of the bank: teaching. manual / L. O. Primostka. - K.: KNEU, 2006. - 280 p. 5. Sheludko V.M. Financial market: textbook/ V.M. Shell — K.: Znannia-Press, 2008. 6. Gataullina, E., Klymenko, M. Peculiarities of the modern structure of the banking system of Ukraine. Economy and Society, 2022, No. 37. DOI: https://doi.org/10.32782/2524-0072/2022-37-27