PROFIT FORMATION OF BANKING INSTITUTIONS IN UKRAINE: MODERN REALITIES

In the article examines the theoretical and practical aspects of profit formation of banking institutions in Ukraine in the pre-war period and at the present stage. Approaches to determining the bank's profit are considered and its importance for the state, the banking institution and its employees is highlighted. It was found that the effective functioning of domestic banks will contribute to the stabilization of the economy of our country as a whole, and therefore, ensuring the financial stability of banks is of national importance. The system of forming a positive financial result and its quality management is the duty and main task of every banking institution today and requires constant analysis. The ability to accurately estimate and effectively manage the bank's cash flows allows you to receive planned benefits from the implementation of activities both in the interests of the bank and in the interests of its clients. In the article analyzes the consequences of the functioning of the domestic banking business in conditions of constant crisis situations, highlights the influencing factors on changes in banking income and expenses. Despite the decrease in the number of banks by more than half, the income of banks over the last ten years has increased by almost half due to the growth of interest and commission income. A forecast was made regarding the future growth of banking income. It was established that the main reason for the increase in the profitability of the banking system in the pre-war period and the record profit in the second year after the beginning of the full-scale invasion of the russian federation was the increase in interest income from highly liquid assets and lending. The paper evaluates the effectiveness of banking business in wartime conditions and makes a forecast of financial results and profitability of capital and assets of domestic banking institutions for the nearest future. The increase in profitability indicators showed a general improvement in the financial stability of the banking system. Despite the deterioration of the general economic situation in the country, the situation on the market of banking services remains favorable.