Mechanism of management of bank profitability

Abstract

Introduction. Main approaches and recommendations to increase the profitability of banking activity in current economic conditions are considered in the article.

Purpose.The aim of the research is to study the mechanism of management profitability, to summarize methodological and theoretical principles, to develop recommendations as for the income and expenses management of the commercial bank in current crisis conditions with the aim to optimize the activity of the commercial bank.

Method (methodology). In the course of the study the following methods of investigation have been used: horizontal and vertical methods of analysis (to determine a dynamics and a structure of profitability), method of comparison, graphical method, tabular and statistical methods.

Results. Management efficiency of the bank profitability can be enhanced with the help of increase of interest and commission incomes of the bank and by means of decrease in expenses by attraction of  resources and growth of size of bank’s assets.