CONTEMPORARY STATE OF THE INCOME OF THE BANKING SECTOR OF UKRAINE

Abstract

The study reveals that in today's unstable environment, the banking sector of Ukraine faces a range of challenges requiring constant monitoring and analysis. One key aspect of this analysis is assessing the profitability of banks, which is an important indicator of the efficiency of each bank's operations individually and the banking sector as a whole. The need to evaluate the impact of major factors on the activities of banking institutions becomes particularly relevant. Therefore, this research aims to analyze the current state of profitability of the banking sector of Ukraine and identify key factors influencing it. The article examines the contemporary state of the banking sector's profitability in Ukraine during wartime conditions. Specifically, it explores the impact of the conflict on financial indicators such as credit risk, liquidity, and overall financial health of banks. Possible strategies and measures that banks can take to preserve profitability during wartime are discussed. Additionally, the prospects for the development of the banking sector in the context of the conflict and possible ways to adapt to unforeseen circumstances are highlighted. The research aims to identify key factors affecting the profitability of the banking sector during wartime and develop recommendations for managing financial risks. It is shown that the full-scale invasion significantly impacted the profitability of Ukraine's banking sector due to increased credit risk, decreased liquidity, changes in the economic environment, and the growing need for financial support for military operations and infrastructure restoration. Additionally, the war led to increased losses from borrower defaults and overall market uncertainty. As a result of the analysis of the profitability of Ukraine's banking sector, the following conclusions are drawn. Firstly, the banking sector has demonstrated its ability to adapt to difficult economic and financial conditions in the country. In particular, bank profitability increased due to effective financial resource management, increased lending to the population and the real sector of the economy. On the other hand, there are still certain risks for the banking sector today, the main one being the overall economic downturn in Ukraine. Despite certain challenges, the banking sector continues to play a vital role in the country's financial system, and its profitability remains at a good level. However, to ensure further sustainable development, it is necessary to pay more attention to problematic issues and implement effective risk management strategies.