PROFIT MANAGEMENT ASPECTS OF UKRAINIAN BANKS IN FINANCIAL UNCERTAINTY

Abstract

In this article, we single out the main characteristics of the bank's profit and examine its constitutive elements as well as its sources of formation. It’s pointed out that profit management plays a key role if a bank is to operate successfully. We also suggest our definition of profit management in banking, its purpose, and its main objectives . The article provides a detailed analysis of the financial performance of Ukrainian banks in 2020-2022 and identifies the main factors that negatively affected the amount of profit in 2022. The main factor behind the decline in the profitability of domestic banks was a significant increase in provisions for losses incurred and expected because of the war. Despite the hardships of the war, the banking sector remains operationally efficient and continues to be profitable. The article states that under the current circumstances, it is rather difficult for banks to increase their activities, so the main factor in a bank’s profitability is cost reduction. However, the results of the analysis showed that in 2020-2022, revenues consistently exceeded expenses and during this period we noticed steady growth in bank revenues. The article analyzes the main indicators of profitability of the banking sector of Ukraine in 2020-2022. The main trends that have occurred over the past three years in the domestic financial market have both directly and indirectly affected the financial results of the Ukrainian banking system.