Generation of income and expenses of the bank (on the example of JSC "Ukrsibbank")
Students Name: Datsyshyn Olha Ivanivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2021-2022 н.р.
Language of Defence: англійська
Abstract: Profit is the amount by which income exceeds the costs associated with it. Net income is the profit after taxes. Profit is also defined as the sum of the increase in the company’s equity due to the company’s activities during the period. It is the main form of money savings of economic entities. The main motivation of any business, as it increases the welfare of its owners through the return on investment. No matter how important the goals and priorities that are implemented for the bank in the process of integrated asset and liability management, the bank is a business structure, ie its main goal is to generate income and profitability. Analysis of the bank’s activities in terms of profitability and profitability allows management to formulate interest rate and credit policies, identify low-income companies and provide recommendations on possible income of the bank. If there is no competent financial and economic analysis and financial management, ie a system of rational and efficient use of capital and a mechanism for managing the flow of financial resources, it is impossible to solve these problems. The ultimate goal of this management is profitability. The relevance of the researched problem is that without a competent analysis of the results of financial and banking activities and identification of factors influencing these activities, it is impossible to increase the level of profit and profitability. The object of research of this master’s work is financial activity of JSC "UKRSIBBANK". The subject of research is analysis of income and expenses of JSC "UKRSIBBANK". The purpose of the analysis of banking activities in terms of its financial results is to determine reserves for increasing the bank’s profitability and on this basis to formulate recommendations to the bank’s management to implement appropriate policies in the field of passive and active operations. The main objectives of the master’s thesis are: analysis of income and expenditure on the example of the bank, review the literature on methodology and organization of income and expenditure valuation, justification of modern methods of calculation and evaluation, consider methods and analyze bank income, identify and justify the main ways to improve analysis and control of income and expenses of the bank on the example of JSC "UKRSIBBANK". Research methods of this thesis are: horizontal analysis, which can be used to determine absolute and relative deviations over the analyzed years, vertical analysis, which should calculate the share of each element in the total currency and assess its changes, analysis of ratios that can determine profitability and liquidity bank, as well as other indicators; least squares method, which can be used to forecast financial performance for future periods, etc. During the analyzed period, there was a negative but not critical dynamics of the decline in some of the main indicators of financial statements of JSC "UKRSIBBANK". At the same time, the positive point is that the bank has a sufficient amount of money, and the company provides a consistently high number of loans to individuals and legal clients, which is a positive indicator because it speaks of a good reputation of the bank, which people trust. The organization’s analysis shows that due to the weak level of the existing IT system, the bank will take a number of serious measures in the next few years to cooperate with current and potential customers and will use IT solutions to develop sales to achieve its goals. Keywords - profit, income, financial condition, banking, factor analysis, profitability. References: 1. Vasiljeva T., Stadnyk A. Innovative Approaches to Evaluation of Concentration of the Banking System as a Basis of Improving the State Crisis Management. Marketing and Management of Innovations (Web of Science, etc.). 2020. № 1. R. 302–313 2. Kovalenko VV Stress testing in the bank’s profit management system. Economy and society. 2017. № 8. S. 599–605. 3. Korchynska O., Veselova M. The effectiveness of modern information technology in the marketing activities of banks in Ukraine. Bulletin of the APSVT, 2017, №1. C 64-70