Otto-von-Guericke-University Magdeburg

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Otto-von-Guericke-University Magdeburg Powered By Docstoc
                     Faculty of Economics & Management

                     Faculty of Management
                     Department of International Business Activity

         Income improvement of banks of Ukraine

Anton Rodin
Zhukova 15/100
83071 Donetsk
International Economics
specialisation "European Studies"
Semester: 3

Date of submission: 17.10.2010

Table of content

Abstract ........................................................................................................ 3

1. Introduction ............................................................................................. 4

2. Methods of analyzing income of banks ................................................. 5

2.1 Traditional method of the National Bank of Ukraine
....................................................................................................................... 5

   2.2 Method of Panova G.S....................................................................... 8

   2.3 Method of Batrakova L.G. .............................................................. 12

   2.4 Analysis of income of the top ten banks of Ukraine ..................... 14

3. Conclusion .............................................................................................. 18

References .................................................................................................. 20

Appendix 1 ................................................................................................. 22

Appendix 2 ................................................................................................. 23

Appendix 3 ................................................................................................. 25

Appendix 4 ................................................................................................. 26

Appendix 5 ................................................................................................. 27

Appendix 6 ................................................................................................. 28

Appendix 7 ................................................................................................. 29

In this paper we have examined the importance of analyzing income of banks. Analyzed
the methodology used by banks for income analysis, based on which         income of
commercial banks in Ukraine has studied in the dynamics from 2006 to 2009 year.
Identified shortcomings in carrying out policies of income. Provided solutions to the
Keywords: income, method of analysis of income, interest and non-interest income,
operating and non-operating income, stable income, securities.

     1. Introduction
Due to the increasing role of the banking system in service of economic subjects, the
expansion of foreign economic and interregional relations, the ongoing process of
formation and elimination of some commercial bank the role and importance of
analyzing the financial condition of the bank is increasing steadily. Ukrainian banks are
forced to work in high-risk conditions, more often than their foreign partners they are in
crisis situations. This is primarily associated with insufficient estimator of their own
financial position and stability of clients. Without a competent analysis of financial
results of banking activities and identification of factors affecting this activity it is
impossible to increase the level of profits and profitability. Analysis of the impact of
banking begins with an analysis of income1. Analysis of the income of the bank allows
you to study the performance of a commercial bank, also assess the effectiveness of it as
a commercial enterprise. The purpose of the analysis of banking activities in terms of its
financial results is the identification of profitability growth reserve of the bank and on
this basis to formulate recommendations to the management of the bank about
convenient policy in the field of passive and active operations. The value of the
financial results achieved by the bank is a reflection of the full range of internal and
external factors affecting it, including: maintenance of a sufficient customer base, the
level of competition, degree of development of financial markets, the social and
political situation, the availability of state support and other factors that are as generally
beyond the control of the bank. On the other hand, the value of equity, the amount of
investment and borrowing, profitable and non-profitable assets, level of costs, damages
and losses, the extent of use of modern technology, the level of profitability of the
branch network and its subsidiaries, internal controls and auditing, and other - factors
that depend on the activities of the bank itself and the quality of its management.

    И.К. Козлова, Т.А. Купрюшина, О.А. Богданкевич, Т.В. Немаева; Под. общ. ред. И.К.
Козловой.Анализ деятельности банков: Учебное пособие.(2003), c.240

     2. Methods of analyzing income of banks
Central place in the analysis of the financial results of commercial banks is owned by
studying the amount and quality of their incomes, because they are the main factor in
income2 formation. Among should be referred the priority tasks of analysis of income of
the bank identification and assessment of volume and revenue structure, study of the
dynamics of income components, identification of activity and types of transactions that
yield the most revenue, estimate the level of income per unit of assets, establishment of
factors affecting the overall amount of income and costs derived from certain types of
operations,      identification      of      reserves       to      increase       earnings.
For the most complete disclosure of the nature of banking income using the traditional
classification3 (Annex 1).To analyze the income of banks were used works of Russian
scientists, such as Panova G.S., Batrakova L.G. and traditional methods of the National
Bank of Ukraine.

    2.1 Traditional method of the National Bank of Ukraine

To analyze the income of banks of Ukraine NBU is used the method of the bank. Their
study begins with the structure of economic content. Revenues are divided into
operating and non-operational. Operating income should constitute a larger share in the
structure of total income, and their growth must be rhythmic. Growth of not operating
income (from a side activity) often proves ineffective management of active - passive
operations, one must pay attention to the fact that an increase in the absolute values of
non-operating income, their share should be lower than operating one’s.
In analyzing the dynamics of each of the two types of income necessary to calculate the
coefficient of lead (Ko), which is calculated as

  Управление активами и пассивами в коммерческом банке / Ларионова И.В. – М.: Издательство
«Консалтбанкир». (2003),с. 195
  Максютов А.А. Основы банковского дела. - М.: Бератор – Пресс. (2003), c.384

         Êî         ,where ÒÐïä - the growth rate of operating income, ÒÐïà - the
growth rate of non- operating income.

For the bank, which has an effective policy to control the active - passive operation Ko
must be greater than unity.

Next,       consider    the    operating    and     non-operating     income     (Annex       2).
In the investigation is mandatory to identify groups of stable and unstable types of
income. Allocation of income of these groups allows the bank to plan its financial
results with a high degree of probability.
Stable income4 is that remain practically constant for a sufficiently long period of time
and can easily be predicted for the future. Lack of stability reflects the riskiness of the
business, the greater instability in earnings, the lower the quality of earnings. All the
bank's operating income can be classified into two groups: interest and noninterest
The most important for banks is interest income, are part of the revenue from operating
activities.For the analysis should be built a table of interest income and interest-bearing
assets for each period under review (Annex 3).

Analysis of this table allows you to determine thanks to what factors income is mainly
received: as a result of changes in prices for allocated resources, either by increasing the
amount to allocate resources, or all factors simultaneously.In analysis of interest of the
bank income one should:
Firstly, set the pace of change the overall size and structure of interest-bearing assets;
Secondly, to make their comparison with the rate of growth (decline) of income
received through a calculation of the coefficient of lead ( Êî ):
             Êî         ,where ÒÐïä - growth rate of interest income, ÒÐïà - growth
rate of interest assets. If the ratio above unity, it means that the bank is increasing the
revenues by increasing the prices realized by the resource. In that case, if the ratio is less

    В.С. Львов. Анализ финансового состояния коммерческих банков.(1996), c.205

than one can say that the bank, increasing the volume of interest earning assets lowers
their price.
Thirdly, to determine the proportion of interest income in total income of the bank (if
the bank prevailing share is noninterest income, this means that the bank or reduces the
activity of placing funds in the form of credit or reduces the rate allocation to achieve
certain objectives - entering a new market sector, according to competitors, increasing
the demand for credit services, etc.);
Fourthly, to identify the item of interest income, whose increase has the maximum
impact on growth5 of interest income as a whole.

Analysis of non-interest income allow to determine how effectively the bank uses a
non-credit sources of income. At the same time they are analyzed by type of operations
and dynamics.
In the analysis of non-interest one need:
Firstly, to determine their role in total income;
Secondly, determine the dynamics of the absolute value of non-interest income and their
Thirdly, to identify the most profitable non-interest operations.

Among non-interest income special attention should be paid to commission income6,
which have the following structure: commission on cash transactions, fees for
collection, commission on settlement transactions, commissions on guarantees,
commission on other operations. Increasing in their share of the absolute value indicates
the activation of bank operations for a cash settlement and customer service, and should
pay attention to the dynamics of settlement and current accounts. If during the
investigation is revealed that the revenue increase while reducing or unchanging
dynamics of funds for current settlement accounts, it can be concluded that incomes rise
as a result of the growth of rates of settlement and cash services.

    Васюренко О. В. Современные методы управления банковскими ресурсами. (1997), c.392
    Бутинця Ф. Ф., Герасимович А. М. Анализ деятельности коммерческого банка. (2001), c.384

In general we can say that a high percentage of interest income reflects the high level of
competitiveness7 of the bank and its activity in the market. The high share of income
from securities transactions indicates that the strategy of the bank is more focused on
stock speculation, which is recognized as a negative fact, because of their high risk. A
large proportion of non-interest income may indicate as bad market conditions for
lending, as well as a decrease in the share of bank credit market.
Indicators, analyzing the quality of earnings of the bank are:
             1. Ê 1       ,where ÑÄ - total income of the bank, the ÑÀ -total assets.
Coefficient characterizes the amount of income attributable to 1UAH average balances
of assets, and indicates how effectively carried out active operations.
             2. Ê 2        , where ÎÄ - Operating income of the bank, the ÑÀ -total

Characterizes the amount of operating income attributable to 1UAH average balances of
assets. The increase of index in dynamics is a positive step in the bank, because
indicates either an increase in the proportion of operations related to the principal
activity or an increase in the prices of these operations.

    2.2         Method of Panova G.S

Let’s concider the techniques of Panova G.S. First we need to calculate the total amount
of income the bank received for the period followed by separation on the types 8 of
revenues that come from the different types of banking operations.
Gross     income    of     the   bank   is   divided    into    interest   and    non    interest.

In the analysis of bank income the proportion of each species in their total revenue or
the appropriate group is determined. Dynamics of the revenue items can be compared

  К. Вігуру, П. Блан, А. Прост; Пер. з фр. Є. Марічева. Банк глазами экономиста и бухгалтера.
(1997), c.293
  Панова Г.С. Анализ финансового состояния коммерческого банка. 1996).-220 с.

with previous periods, including the quarters. Stable and rhythmic growth of income of
the bank shows its normal operation and skilled management.
After analyzing the structure of income of the bank with extended object it should
examine in more detail the structure of earnings, forming aggregative item having the
largest share in the general amount of income. (For the Ukrainian banks, as a rule,
interest income).

By analyzing both revenue and dynamics of a particular bank assets structure, it is
concluded that not all bank assets bring him an adequate income. This applies to assets
that do not normally generate income (such as cash on hand and on the correspondent
account balances with the Central Bank and own fixed assets) and to such assets as
equities and other participation rights, acquired by the bank, joint activity and intangible
assets. This means that the quality of joint projects, purchase of securities and intangible
assets is extremely low.

Thus, the income of commercial banks depends on the rate of profit on loan investment
operations, the size of commission payments the bank charges for services, as well as
on the amount and structure of assets.

The next stage of analysis - the quality that allows you to find out the causes9 of change
in the factors influencing the level of income of the bank.The most important source of
gross income of commercial banks is providing loans (including interest on accounts

All banks in developing credit policies take into account such factor as income. Banks
are experiencing an acute need for profits will adopt a more aggressive monetary policy
than banks, for which the financial resources of their activities are not of critical
importance. Such a policy can be manifested in a relatively high proportion of fixed-
term lending and consumer loans, which usually brings the bank a higher return than
short-term loans to industrial enterprises.

 Гиляровская Л.Т., Паневина С.Н. Комплексный анализ финансово–экономических результатов
деятельности банка и его филиалов.(2003),c.240

In the analysis of interest income of the bank are used such relative indicators 10 which
allow us to estimate the average profitability of lending operations as a whole and each
group       of        loans      in       particular.      These        indicators       are:
ratio of gross interest income to average balances of all loan accounts;
ratio of interest earned on short-term loans to the average balances of short-term loans;
ratio of interest earned on long-term loans to the average balances of long-term loans;
ratio of interest earned on separate groups of loans to average balances for the group
under study etc.

The dynamics of these indicators makes it possible to estimate thanks to which lending
operations will increase interest income.
Analysis of non-interest income allows to determine how effectively the bank uses non-
credit sources of income. At the same time they are analyzed according to types of
operations and dynamics.
Important source of income of commercial bank are the revenues generated from
securities 11 transactions. The size of this type of income depends on the size and
structure of the portfolio and the profitability of various types of securities. Banks
systematically compare the possibility of obtaining income from securities with current
liquidity. As noted above, the means to carry out operations with securities are allocated
after having met need for liquidity. Thus, the subordinate nature of the investment
operations complicates their management and increases the unevenness of income from
stock transactions.

In addition, difficulties in managing the investment operations also due to the fact that
the yield on securities is in the form of interest and dividends and capital gains (which
may be negative).
Rate of return on bonds with a fixed income can be expressed as the coupon rate,
current income and income based on length of maturity.
The annual increment or cancellation is calculated as the value of capes or discount (the

   Лунев Н.Н. анализ качества функционирования коммерческого банка // Банковское дело. № 12.
(1997), c.95
   Оперативный анализ финансового состояния банка // рынок ценных бумаг. № 2. (1998), c.56

difference between the market price and par value) divided by the number of years to

Bond prices and earnings on them are inversely related, it means that when prices are
low, income high, and vice versa. Thus, investors who buy bonds in a period of low
interest rates, risk facing the fact of depreciation in the case of rate hiking.

Unlike interest payments on loans the proceeds of securities associated with changes in
market value of the latter, do not stand as an independent paper in operating income in
the income statement. The reason is that incomes are not considered on a case by case
and depends on external conditions, which as a rule can not be influenced by the
management of the bank.

Foreign exchange operations of the bank also greatly affect its profits. To analyze the
profitability of currency transactions it needs to determine the volume of transactions of
each species, the amount of income and expenditure on them. The bank's profit from
foreign exchange operations is defined as the ratio of total income for this type of
transactions for the period to the total volume of transactions.

In the analysis of revenues it is important to identify what proportion 12 is held by
operating income. Their share should tend to 100% and growth rates to be uniform.
When reducing the growth of these revenues overall increase of the latter can be
provided          with       other      types         of    income       of   the   bank.

Let’s consider the position of profitability of operations of the bank (appendix 4)
For a comparative analysis of incomes of various operations a position of profitability is
used. Position yield provides a comparison of received and paid interest, commission
payments, fees and margin loan, deposit, foreign exchange and other transactions. All
bank transactions are grouped by major species and they compare the income and
expenditure of the bank for a certain period for each group of related operations and for

     Коршунов В. И. Учет и анализ в коммерческих банках. (1999), c.175

individual types of operations. At the end of the month is displayed balance for each
operation and all operations in general.

The position of profitability is usually based on actual revenues and expenditures during
the period. The results are used to analyze the profitability of the bank, and take the
necessary decisions on the appropriateness of certain operations in the future and
possible changes in the bank's policy are discussed in respect of certain types of
transactions. Positions yields are also on the expected results already concluded deals
that allows us to estimate the expected mass of profit. This approach allows us to
analyze the profitability level of the individual bank's operations in relation to their total
volume and if necessary make adjustments to the work of the bank.

      2.3         Method of Batrakova L.G.

In her method Batrakova L.G. notes13 that the grouping of assets (bank's income) on the
basis of return reveals profitable and non-profitable assets .
Asset-bearing bank earnings are: short-term (except free loans) and long-term loans,
loans to other banks, securities, shares, stocks, debt factoring, funds paid by enterprises
for their participation in economic activities. Analysis of the dynamics of profitable
assets can be represented in the form of such indicators as average balances of profitable
assets, average balances of total assets and the share of working assets.
It is important to emphasize that the optimal level of profitable assets in total assets is
believed to be 85% and the dynamics of this ratio should increase.

Assets that do not yield income to the bank - cash, a correspondent account, reserve
account, the amount of fixed assets, the amount of immobilized own funds. Reduction
of these assets increases the profitability of the bank. However, it should keep in mind
that the increase in such assets is less profitable, but at the same time increases the
liquidity of the bank.
Total revenues for the balance of the bank consists of the following terms:
                1. Revenue from operating activities (D1) - assessed and received interest,

     Батракова Л.Г. Экономический анализ деятельности коммерческих банков.(1998), c.115

the commission on services and correspondent accounts, refund customers the cost,
income from foreign exchange transactions.
              2. Revenues from non-bank operations (D2) - Income from participation in
the activities of enterprises, organizations, banks, payment for services rendered.
              3. Other income (D3) - penalties; interest and commission income of
previous years of self-supporting businesses of the bank, etc.
It should be borne in mind that the cost of operating the services depends on their
complexity, and the price of non-banking operations - from fees under the contract.

In the analysis of bank income the share of each income is determined in their total
amount (or the appropriate grouping of income). For example, the share of operating
income14: Operating income / gross income or the proportion received penalties, fines,
penalties                in                the                  total               income.
Dynamics of the revenue items is studied by means of horizontal analysis. Rhythm of
growth in operating income indicates, as noted above, the skilled management of the
bank. But a significant increase in revenues from non-operations or other income
indicates deterioration in the quality management of active operations.
 Important role in the analysis of profitability of lending operations is an indicator
characterizing    the   amount      of   operating     income      per   1UAH.      Credits:
Operating expenses / amount of loans. This ratio determines the profitability of lending
Another indicator is the ratio of gross income of the bank to the amount of active
operations: Gross income / average balances of assets. It characterizes the amount of
income per 1 UAH of average balances of assets and indicates how profitable are active

A variation of the previous indicator is the ratio: Operating income / average balances of
assets, which characterizes the amount of operating income per 1 UAH of average
balances of assets.

  Батракова Л.Г. Анализ процентной политики коммерческого банка: Учебное пособие. (2002),

Important role in the analysis of income of the bank has a ratio: Income capitalized
assets / Non-profit assets.
The most common indicator of profitability of the commercial bank is an indicator
characterizing the average revenue per one employee of the bank: the bank's gross
income / average number of employees.

In addition, stable income of commercial banks should be assessed. Stable income are
those that remain practically constant for a sufficiently long period of time and can
easily be predicted for the future. Greater stability is inherent primarily to income from
core activities. Lack of stability reflects the riskiness of the business. The greater the
volatility in earnings, the lower the quality of earnings. To determine the stability of
income there are a number of calculating parameters: mean-square deviation in income
whose low value indicates the high quality of earnings, the coefficient of variation, a
high level which means higher risk, income volatility and income volatility index,
defined as follows:
          Iн.д. =    (у - уt)2 / n

Here, уt is calculated using the method of analytic alignment: уt = а+bt, where a -
interference caused by currency fluctuations; b - the size of changes; t - a temporary
Instability index reflects the variation between actual and potential income. It should be
borne in mind that a higher index value indicates a lower quality of earnings.

2.4 Analysis of income of the top ten banks of Ukraine

The studies were analyzed for income the top 10 banks in Ukraine in 179. Analysis was
conducted according to the National Bank from 2006 to 2009. « PRIVATBANK »
and « RAIFFEISEN BANK AVAL »not concede their position to any of the banks and are
on the first and second place respectively. On the graph we can see that the entire period
of time growth of income is stable.

The company « PRIVATBANK » has it related to interest and commission income which
in four years increased by 73% and 85% respectively. We can also say that an important
role for these figures is played the range of services offered by the bank, namely over
150 species, among which – Current, Deposit operations, card products, a variety of
consumer lending program in partnership with leading domestic trade real estate
companies. Innovation policy of « PRIVATBANK » focuses on the introduction into the
Ukrainian market innovative banking services, including syndication and credit scoring,
securitization of assets.
« RAIFFEISEN BANK AVAL » increased interest income by 72%, but as to the
commission it grew by 47%. Such high rates are related to the operational customer
service which is provided its own networks, digital terrestrial and satellite
communications, electronic circulation system, the use of advanced banking and
information technologies. This bank as well as "« PRIVATBANK » is gradually
introducing syndication and credit scoring. Key figures of the banks can be seen in
Appendix 5.

                                         Million UAH
 Bank Name Assets Credit - investmentCapital Deposit nat. persons Deposit jur. persons
ПриватБанк 85991            69077,73 10883             33883,01             21462,87
Райффайзен Банк Аваль
             54034          40898,07 7100              18216,96             10694,09

As we can see from graph from 2006 to 2007 the third position is taken by «
PROMІNVESTBANK       », but since 2008 the bank has not been able to compete with
« UKRSIBBANK » and « UKRSOCBANK ». With regard to the enterprise « UKRSIBBANK »
then until 2007 it’s ranks fifth in the list of NBU indicators of efficiency, but in 2008
when interest income increased by almost double and in 2009 increased by 5 times and
trading income by 37% (in 2008 by 88%), the enterprise moved to third position and so
far is still holding it. Interest income « UKRSOCBANK » (currently occupies the fourth
position) only from 2008 to 2009 rose from 2 599 535 000 to 4 580 089 000 UAH
which is 43%. Sales revenue increased from 175 080 000 to 836 831 000 UAH which is
7 times more.

« PROMІNVESTBANK » and « UKREKSІMBANK» as we can seen from the graph are
fighting for the fifth and sixth places.

Other income of « UKREKSІMBANK»,as well as trade one grew by 93%, so it is possible
to say that the activities of the bank is inclined to purchase and resale of treasury bills,
bonds, commercial papers and other securities. Interest income of « PROMІNVESTBANK»
during this period increased by 54%. Trading income increased by 98%. That is the
policy of this bank as well as « UKREKSІMBANK» focuses on the purchase and resale of
The following banks are « OSCHADBANK » and « NADRA ». During the whole period of
studies the most stable and promising was « NADRA». Other income « NADRA » grew by
84%, trading income by 98%. « OSCHADBANK » specializes in serving corporate clients
and individuals. The set of services for legal entities include: client-bank lending,
depositary activity of securities, financing foreign operations; services on placement of
funds; deposits, transactions with precious metals; collection, etc. The bank incomes
trading and other grew by 42% and 76% respectively. But as interest income then for a
period of four years it grew by 80%.

The last two banks « PUMB » and «OTP BANK» pretty confidently increase their
performance, but they do not do it as fast as its competitors. In 2006 trading income of

«OTP BANK» was negative and amounted to 13 532 000 UAH, but from the next year
that income began to grow and by 2008 he reached the point of 710 731000 UAH also
significantly (by five times) increased interest income. Having started with the service
of foreign trade turnover of the domestic industry, « PUMB » gradually expanded the

range of services and according to the main financial figures came in the top ten of
Ukrainian banks, consolidating the reputation of a stable and reliable financial
institution. Interest income « PUMB » increased by 87%, trading income reached the
level of 89 965 000 UAH which is 84% more compared to 14481 000 UAH. Fee
income grew by 64%. The financial results of the banks for 2010 are presented in the
following sums:

                                       Million UAH
Bank Name Assets Credit - investmentCapital Deposit nat. personsDeposit jur. persons
ОТП Банк 29764             24710,76 4423,6               3700,1           20481,21
ПУМБ      17509            12572,98 2665,1             3930,08             2349,68

     3. Conclusion
In the essay the methodology for assessing the income of banks has been analized and
have been revealed some differences. Through ten banks in Ukraine an analysis of their
income was made over a period of four years.
In conclusion, we can propose the following ways of increasing income of Ukrainian
banks: asset securitization15, credit scoring16, loan syndication17.
Some banks, such as « PRIVATBANK» and « RAIFFEISEN BANK AVAL » already use these
financial instruments.

Asset securitization will raise funds for a longer time (compared to a conventional
credit), reduce the risk of credit (leasing) portfolio thanks to transfer credit risk to a
wide range of investors - the owners of the securities issue; on base of securitization of
credit (leasing) portfolio; continue to get profit from the loan (leasing) portfolio as
margin between the average rate of placement credit (leasing) portfolio and lower
interest rates on securities issued by securitization of the portfolio.

Scoring: gives quantitative assessment of credit risk, expressed in terms of probabilities;
will evaluate risks objectively; will determine the likelihood of delay the next payment,
which contributes to the choice of more efficient methods of in arrears. Applying the
scoring model to past loans, the bank can estimate the losses that could have been
avoided owe to the increased accuracy of the analysis of credit applications.

The use of syndicated lending allows us to overcome the problem of lack of sources of
credit. Allocation of funds on a syndicated basis allows to solve the problem of large
loans, restrictions on lending to shareholders, related parties, and, thus, to realize
reduction of risk concentrations, by their distribution among other participants in the
loan syndicate avoids the risk of loss of liquidity in the provision of major long-term
loans (deposits), and decreased capital adequacy.

   Елена Чуб. К вопросу использования банками механизма секьюритизации активов // Банковское
дело №3.(2009), c.66
   Александр Кириченко, Лилия Патерикина. Кредитный скоринг, его структура и использование
коммерческими банками Украины // Банковское дело №2.(2009), c.23
   Сергей Цыганов, Анна Яншина. Синдицированное кредитование- инструменты долгосрочного
финансирования // Банковское дело №2.(2009), c.31

Having studied the experience of « PRIVATBANK» and « RAIFFEISEN BANK AVAL »
conclusions can be drawn that the banks that will use these financial instruments can
reduce risk-taking, improve return on equity, will reduce the time costs for the
collection of arrears.

Анализ деятельности банков: Учебное пособие / И.К. Козлова, Т.А. Купрюшина,
О.А. Богданкевич, Т.В. Немаева; Под. общ. ред. И.К. Козловой.-Мн.: Выш.шк.,

Управление активами и пассивами в коммерческом банке / Ларионова И.В. – М.:
Издательство «Консалтбанкир». (2003)

Максютов А.А. Основы банковского дела. - М.: Бератор – Пресс. (2003)

В.С. Львов. Анализ финансового состояния коммерческих банков.(1996)

Васюренко О. В. Современные методы управления банковскими ресурсами. (1997)

Бутинця Ф. Ф., Герасимович А. М. Анализ деятельности коммерческого банка.

К. Вігуру, П. Блан, А. Прост; Пер. з фр. Є. Марічева. Банк глазами экономиста и
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    Appendix 1. The classification of income of commercial banks
Symptom classification                  Income

By getting a shape                      Interest
By the economic content                 Operating
                                        No-operating (from the incidental activities)
By the periods                          Stable
By activity                             From lending
                                        From securities transactions
                                        From operations with foreign currency
                                         From cash management services
                                        From participation in capital and operations
                                        other economic actors
                                        From bank branches
                                        From the recovery of reserves

Appendix 2. The composition of operating revenue and non- operating

Operating revenues of commercial bank
1. Interest earned on loans, deposits and other placements (balance account second order)
2. Interest earned on loans extended (Urgent)
3. Interest earned on loans are not paid in time (for late)
4. Received interest arrears
5. Interest received from other allocated funds
6. Interest earned on the open accounts
7. Interest earned on deposits, including overnight placements and other placements
8. Income from operations with securities (balance sheet account the second order)
9. Interest income from investments in debt securities
10. Interest income on bill of exchange
11. Discount income on bill of exchange
12. Revenue from resale (maturity) of securities
13. Dividends received from equity investments
14. Other revenues from operations with securities
15. Income from operations with foreign currency and other currency values (balance sheet account
the second order)
16. Income from operations with foreign currency and other currency values
17. Gains on revaluation of foreign currency accounts
18. Recovering amounts from the accounts of funds and reserves
19. For possible loan losses
20. Under the impairment of securities

21. From other operations
22. Fee and commission income
23. On cash transactions
24. On operations of collection
25. On settlement transactions
26. On guarantees
27. From other operations
28. Other operating income

29. From operations to trustee
30. From transactions in options
31. To conduct forward operations
32. To conduct futures transactions
33. From transactions SWAP
34. From operations with precious metals
Non-operating income of the bank
1. Dividends received, other than shares (balance account second order)
2. Dividends received for participation in economic activities
3. Dividends received for the equity participation
4. Fines and penalties received (balance account second order)
5. Other income (expense balance the second order)
On disposal (sale) of assets of the credit institution
On forgiveness of accounts payable
From customers in respect of credit institutions telegraph and other expenses
From the delivery of bank documents (except for collection)
From the postings of surplus cash, valuables
From the lease of property
To conduct factoring, forfeiting operations
From providing services of financial rent (leasing)
Revenues from credit operations of past years, received during the year
Other income of previous years identified in the reporting year
Income received for document processing, servicing computers, from the information services
Other Income
Revenues in the form of refund amounts from the budget for the overpayment of income tax

    Appendixx 3. Analysis of the bank's interest income
Interest income                         Weight of Interest bearing assets            Weight    of
                                        interest                                     working
                                        income                                       assets
From loans to legal entities                         Corporate loans
From loans to individuals                            Loans to individuals
By Account Opening                                   The amount of funds on
                                                     correspondent accounts with
From loans at banks                                  The volume of interbank
From deposits in banks                               The     volume    of   placed
                                                     interbank deposits
Other interest income
Total interest income

                Appendix 4. Position yields the bank's operations

Period (days)                1-7         8-15        16-22          23-31   Turn over   Balance
                                                                             for the    for the
                                                                             month       month
                                   Payments (mln.UAH)
Interest on loans:
Interest on deposits:
Other commission
received paid

Appendix 5. Financial results in 2010

     Bank Name                                                    Million UAH
                                                                                   Deposit           Deposit
                        Assets    Credit - investment portfolio        Capital    nat. persons      jur. perso
                         85991                           69077,73      10883,18          33883,01        214
 AVAL                    54034                           40898,07       7099,72          18216,96        106
 UKRSIBBANK              45321                           37266,51       7133,15           9838,05         66
 UKRSOCBANK              43656                           34748,05       5880,96           7614,23         45
 PROMІNVESTBANK          28680                           23762,05       5020,12          10320,67         51
 UKREKSІMBANK            58485                           45836,43      13853,73            8873,2        139
 OSCHADBANK              60756                           50141,45      16447,56          14863,39         99
 NADRA                   24749                           19421,37       1012,84           6773,93          3
 OTP BANK                29764                           24710,76       4423,61            3700,1        204
                         17509                           12572,98       2665,08           3930,08          23

Appendix 6. Dynamics income. 2006-2009

                              Appendix 7. Income.

                                     2006 year

                                                 Thousand UAH
                                       Fee and
   Bank Name      Interest income      commission income      Trade income    Other income
PRIVATBANK                2 470 751                 870 962         296 212         501 172
AVAL                      1 734 320                 699 635         157 490          19 276
PROMІNVESTBANK            1 581 364                 559 448          16 325          41 883
UKRSOCBANK                  908 628                 341 977          62 637          39 514
UKRSIBBANK                  848 471                 150 005          75 971          82 706
UKREKSІMBANK                753 408                 204 500          44 043           4 591
OSCHADBANK                  530 206                 333 907          34 330          85 742
OTP BANK                    532 285                 106 475         -13 532           7 466
                            544 366                 141 787          14 872          14 965

                            217 772                  94 354          14 481          12 463

                                     2007 year

                                                 Thousand UAH
                                      Fee and
   Bank Name      Interest income     commission income       Trade income    Other income
PRIVATBANK               3 734 132               1 451 213         346 469         119 007
AVAL                     2 592 023                 863 388         151 955          16 078
PROMІNVESTBANK           1 957 494                 593 035          78 186          29 014
UKRSOCBANK               1 420 562                 420 317          94 081          26 626
UKRSIBBANK               1 643 978                 425 057         120 768          16 919
UKREKSІMBANK             1 504 991                 287 526         100 606          12 699
OSCHADBANK                 836 174                 395 225          45 711          72 888
OTP BANK                 1 001 848                 114 840          48 551           8 003
NADRA                      940 028                 321 714         183 461          13 932

                           425 768                 120 001          15 544           4 106

                               2008 year

                                           Thousand UAH
                                     Fee and
    Bank Name     Interest income    commission income Trade income Other income
PRIVATBANK                 6 041 358          2 181 570      355 888      -29 221
AVAL                     4 222 806          1 055 395       156 824        48 077
PROMІNVESTBANK           2 474 155            687 969        66 388        72 811
UKRSOCBANK               2 599 535            522 564       180 248        89 570
UKRSIBBANK               3 112 762            579 198       175 080        -8 745
UKREKSІMBANK             2 444 225            413 597       142 793        31 036
OSCHADBANK               1 350 288            567 595        69 158        77 830
OTP BANK                 1 530 558            134 652        52 533        19 410
NADRA                    1 725 930            459 649       117 694        39 874
                          880 037             193 110        25 533        -22 326

                               2009 year

                                           Thousand UAH
                                     Fee and
    Bank Name     Interest income    commission income Trade income Other income
                           9 059 300          5 811 594      329 412      158 137
RAIFFEISEN BANK         6 255 516           1 325 268       282 627        78 079
PROMІNVESTBANK          3 441 703            784 710        905 734       131 615
UKRSOCBANK              4 580 089            658 166        836 831       104 443
UKRSIBBANK              5 366 865            571 724        656 141        15 238
UKREKSІMBANK            4 032 991            440 447        682 010        65 192
OSCHADBANK              2 591 804            778 654        146 094       150 384
OTP BANK                2 703 154            217 428        710 731        33 382
NADRA                   3 263 708            642 045        829 424        90 776
PUMB                    1 738 387            260 997         89 965        36 744


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