It is advisable to continue the study of the structure and dynamics of the bank's income and expenses by analyzing the formation of the financial result. Table 6 shows data on the amount of profit of various types.

Table 6. Dynamics of profit of Bank A

Profit from banking operations and other transactions represents the difference between income and expenses (group A of the income statement). Therefore, it is considered the main type of profit, which reflects the effectiveness of the bank's main banking operations and other transactions. According to Table 6, it can be noted that in all three periods under review, this indicated value of the item was positive and was the main element of the bank's net profit.

Operating profit is the difference between income and expenses of group B of the income statement. According to Table 6, over the past three years, Bank A received only operating losses, which every year more and more significantly reduced the final financial result of its activities. The reason for the losses under this item is a significant excess of group B expenses over the corresponding income. This concerns, first of all, paid and received commission fees and deductions to funds and reserves.

The main absolute indicator of the effectiveness of a commercial bank is net profit. Let's analyze the dynamics of Bank A's net profit. According to Table 10, the indicator in question has been steadily declining over the course of three years quite significantly.

So, if in 2009 the bank's net profit amounted to 280 million rubles, then in two years it decreased by more than 4 times and settled at around 61 million rubles. The main factor that influenced the significant reduction in net profit is the outstripping growth of the bank's expenses compared to its income.

The study of the absolute value of net profit must be supplemented by coefficient analysis. The main relative performance evaluation indicators are profitability indicators (Table 7).

Table 7. Profitability indicators of Bank A and their dynamics, %

According to Table 7, the overall profitability of the bank, which characterizes the amount of profit per unit of costs, in 2009 was almost 16%. This means that for every ruble of expenses incurred, the bank received a profit of 16 kopecks. It should be noted that this indicator is quite high and indicates the efficient operation of a commercial bank. However, in dynamics there is a significant decrease in the value of P1 to 1% in 2011. The overall profitability declined due to a significant decline in profits and an increase in the bank's total expenses.

The indicator - net profitability (ROA) - characterizes the effectiveness of bank placements. In 2009, it was at the level of 2.7%, which meant receiving almost 3 kopecks of net profit for each ruble of Bank A's assets. Over the next two periods, the profitability decreased to 0.5%. In general, the values ​​of the net profitability of the assets of the bank in question correspond to the standards in world practice, according to which the value of Р 2 can be up to 4% and higher. The decrease in ROA in dynamics is due to the simultaneous decrease in net profit and growth in the bank's assets.

Return on equity, which characterizes the efficiency of the bank's top management, is one of the most important indicators for shareholders. In 2009, the P 4 indicator was 27%, which means 27 kopecks of net profit for each ruble of equity capital. This value corresponded to the standard level, which is 15-40%. However, in 2010-2011 the situation changed for the worse, and the return on equity decreased to 3-5%. First of all, this is due to the fact that during the periods under review there was a significant decrease in the bank's net profit and an increase in its own capital.

The most well-known indicator of profitability in the world theory of banking is the return on equity (ROE). Below in this paper, a factor analysis of ROE will be carried out, so at the moment we should go to the last indicator presented in Table. 6, - profitability of earning assets. Its value shows what the ROA level would be if all the bank's assets were profitable. In 2009, the value of P 6 was 3%, and two years later it dropped to 0.6%. This means that if all the bank's assets were profitable, the return on its assets would not be 2.7%, but 3% in 2009. The decrease in the profitability of earning assets was caused by the reduction in the bank's net profit and the simultaneous growth in the value of income-generating assets.

The bank's income, expense and profit analysis indicators are a set of four most important ratios, the first of which is the ratio of commission and interest income. With it, you can evaluate the ratio of risk-free and risky income of the bank. According to table 8, initially in 2009 the value of this coefficient was equal to 0.4. This means that commission income, which in banking practice is classified as risk-free income, amounted to 40% of interest (risk) income. Then, during 2010-2011, the coefficient K 1 decreased to 0.007. This trend is negative, since the value of this coefficient should be as high as possible. The fall in its level is a consequence of a significant decrease in commission income and an increase in interest.

Table 8. Bank A Performance Evaluation Indicators and Their Dynamics

The ratio of interest income and expenses of the bank evaluates the profitability of the bank's operations associated with risk. According to Table 8, for the three years under consideration, the K2 coefficient decreased from 1.9 in 2009 to 1.4 in 2011. A decrease in this indicator indicates a decrease in the efficiency of the bank's activities with an increase in risks. The main reason for such dynamics is the growth of interest expenses, outstripping the growth of similar incomes of the bank.

Another indicator used in the analysis of income, expenses and profits of a bank is the risk-free expense coverage ratio, which shows how much income from risk-free operations covers total expenses. The value of K 3 for Bank A does not correspond to the normative value (K 3 should tend to 1) and throughout the analyzed period it decreases, tending to 0. The main factor that caused such dynamics is the simultaneous reduction in commission income and the growth of the total expenses of the bank. The last coefficient from the group under consideration is the cost-effectiveness coefficient, which evaluates the efficiency of the bank, its ability to cover expenses with income. For the analyzed bank, the value of K 4 corresponds to the normative value - more than 1. This indicates the profitability of the activity. However, in dynamics, the value of K 4 is reduced, so the bank's management needs to take urgent measures to maximize income and minimize costs. It is precisely because of the growth in costs that outpaces the growth in income that the value of the cost efficiency ratio decreases.

Along with the coefficient method, factor analysis is also used in evaluating the effectiveness of bank management. With its help it is possible to investigate the net income and return on equity. Table 9 provides ancillary data for profit analysis based on the DuPont factorial model. The coefficients H 2 , H 3 and H 4 are calculated according to formulas 1 and 2. The values ​​of net profit and total income are taken from the profit and loss statements of equity capital and assets - from the balance sheet.

Table 9. Ancillary Data for DuPont Profit Analysis

According to Table 9, we consider the dynamics of the coefficients H2, H3 and H4 from the Dupont model. The growth of the H2 value indicates an increase in the total income of the bank by 1 ruble of assets from 26 kopecks in 2009 to 49 kopecks in 2010. This is a consequence of the outstripping growth of the bank's total income compared to its assets. The equity multiplier, on the contrary, was steadily declining - from 10.3 to 6.8 due to the fact that the bank's assets grew much faster than the value of its own capital. The third coefficient - profit in the ruble of total income - was initially at a very low level - 0.1, which means a net profit of 10 kopecks for each ruble of income. At the same time, over the next two years, the H4 coefficient decreased by another 10 times. The main factor that influenced the dynamics of the H4 indicator was the simultaneous reduction in net profit and growth in Bank A's income (Chart 5).

Figure 5. Dynamics of factor analysis coefficients according to the DuPont model

Next, we determine the impact of changing each factor of the DuPont model on the final result in the form of a bank's net profit. To do this, it is necessary to consistently substitute in formula 3 on the right side the value of the change in the corresponding parameter in the reporting year compared to the previous one. First of all, it is necessary to calculate the influence of factors on the change in net profit in 2009.

The total influence of all factors was: - 237,262 - 12,764 + 17,059 + 23,621 = -209,346 thousand rubles.

According to the results of calculations, it can be concluded that due to the growth of the bank's equity capital, its net profit increased by 24 million rubles, and due to an increase in total income by 1 ruble of assets, its net profit increased by another 17 million rubles. However, the other two factors affected the profit negatively: the decrease in the equity multiplier caused a reduction in net profit by 13 million rubles, and a decrease in the amount of profit in the ruble of total income - by another 237 million rubles. Thus, the total impact of all four factors reduced the bank's net profit in 2010 by 209 million rubles.

Below is a calculation of the impact of the same factors on the change in net profit in 2011.

The total influence of all factors was: - 21847 - 2735 + 10334 + 4590 = - 9658 thousand rubles.

The results of the calculations show that due to the growth of the bank's equity capital, its net profit increased by 4.6 million rubles, and due to an increase in total income by 1 ruble of assets, its net profit increased by another 10 million rubles. However, the other two factors had a negative impact on profit: the decrease in the equity multiplier caused a reduction in net profit by 3 million rubles, and a decrease in the amount of profit in the ruble of total income - by another 22 million rubles. Thus, the total impact of all four factors reduced the bank's net profit in 2010 by 9.6 million rubles.

Return on equity (ROE) is the next indicator to be investigated by factor analysis. Table 10 shows auxiliary data for the necessary calculations, intermediate elements of the ROE factor model (formula 5), ​​as well as the value of the profitability indicator itself.

Table 10. Ancillary data for ROE factor analysis

The decrease in NMI indicates a decrease in the amount of net profit attributable to each ruble of operating income. For three years, the indicator under consideration decreased from 10 kopecks of net profit per ruble of operating income to 1 kopeck. This is a consequence of the simultaneous reduction in the bank's net income and the growth of its operating income. KIA similarly declined annually from 0.13 to 0.09, and then to 0.07, as operating income increased much faster than the assets of a commercial bank. The third coefficient - MAK - was initially at a fairly high level - 30.9. At the same time, over the next two years it decreased slightly (Fig. 6).

Figure 6. Dynamics of ROE factor analysis indicators

The reason for this decrease is the outstripping growth of the value of the bank's assets in comparison with its share capital. The key indicator of the model under consideration is ROE. Its initial value in 2009 was 82%, which indicates a fairly high return on investment by shareholders. In 2010, there was a sharp decrease in profitability to 17.4%, and in 2011 - to 15%. The decrease in the return on equity ratio is directly related to a significant reduction in the bank's net profit and a simultaneous increase in its share capital.

The total influence of all factors was: - 9.6 + 41.9 - 96.9 = -64.6%

According to the results of the calculation, it can be concluded that due to the decrease in NMP, the ROE value decreased by 96.9%, and due to the decrease in MAC, the ROE indicator decreased by another 9.6%. However, the growth of KIA also caused an increase in the return on equity by 41.9%. Thus, the influence of all three factors reduced the ROE value by 64.6%.

Below is a calculation of the influence of the same factors on the change in ROE in 2011.

The total influence of all factors was: 0.4 + 4 - 6.8 = -2.4%

The results of the calculations indicate that due to the decrease in NMF, the ROE value decreased by 6.8%. However, the growth of KIA caused an increase in the return on equity by 4%, and the growth of MAK - by another 0.4%. Thus, the influence of all three factors reduced the ROE value by 2.4%.

Thus, the analysis of the profitability of Bank A showed the presence of high profits from banking operations and other transactions, as well as the presence of significant operating losses. The bank's net profit tends to reduce its size. The bank's profitability indicators are also declining in dynamics, which is a consequence of the reduction in net profit. The main factor that caused the decrease in the financial result of activity is the outstripping growth of expenses in comparison with the bank's income. For the same reason, the profitability of the bank's equity capital decreased quite significantly.

So, this article provides an example of a coefficient and factor analysis of the financial results of a commercial bank, which can be of practical use both for students when writing term papers and theses, and for bank specialists whose managers are interested in identifying the causes of dynamic changes in performance indicators.

39. Profitability indicators of a commercial bank, their economic meaning and calculation method

Profitability indicators show the ratio of profit to costs, and in this sense characterize the results of the bank's performance, i.e. the return of its financial resources, supplementing the analysis of absolute indicators with qualitative content.

Profitability characterizes the level of return on 1 ruble. invested funds, which, in relation to a commercial bank, means the ratio of the amount of profit received and the funds contributed by the shareholders (shareholders) of the bank.

This indicator is abstracted from the system of taxation of commercial banks and can be used for cross-country comparison of the effectiveness of their activities.

There are several groups of profitability indicators:

1. indicators based on the calculation of the ratio of profit to capital of the Bank:

ROE (return on equity) = profit/capital; - profitability of own funds (capital) of the bank, shows how much profit was received per rub. own funds of the Bank.

The larger the share of equity capital and, as it is considered, the higher the reliability of the bank, the more difficult it is for it to ensure a high profitability of its capital.

R2= profit/set. capital;

characterizes the efficiency and expediency of investing funds in a particular bank, the degree of "return" of the statutory fund.

2. ratio of profit to assets of the Bank:

ROA (return on assets) = profit / total assets; - the rate of return on assets, the indicator shows how much profit is due per rub. assets.

In Western countries, this indicator is calculated by correlating net profit to the total assets of the bank. In our conditions, when calculating it, we have to use the amount of balance sheet profit.

R2= profit/working assets;

3. based on the ratio of profit to expenses and income of the Bank:

R1=profit/expenses; how much profit per rub. expenses,R1=1-R2

R2=profit/income;R2=1-R1

share (share) of profit in income. what part of the income of a commercial bank goes to the formation of profit

The profitability of the bank's activities is directly dependent on the profitability of assets and inversely - on the capital adequacy ratio. In other words, it is profitable for the bank to work with a minimum provision of assets with equity capital.

Opportunities to increase the rate of return on capital due to the adequacy ratio are limited, since asset growth must be supported by expanding the resource base. To be most efficient, a bank should have a high share of deposits and deposits and a low share of equity. But in reality, many banks are not able to optimize the ratio of assets to capital, and therefore the reserve for increasing ROE remains ROA - the degree of return on assets.

1. Solvency, reliability and stability of a commercial bank, concepts, factors that determine them

In the materials of the World Bank, solvency is associated with the positive value of the bank's own capital, capital with a minus sign means the bank's insolvency. In this interpretation, solvency is based on the capital of the bank, as a guarantee fund for covering the obligations assumed.

In other countries, the solvency of a bank is determined by capital adequacy in relation to the risk of assets.

In the economic literature of Russia, solvency is considered as a more general and as a narrower category in relation to the bank's liquidity. If it is perceived as a more general category, it is considered in the complex of internal and external factors affecting this state, and liquidity - in terms of internal factors.

Solvency - the ability of the subject to meet its obligations in full, on time. At the same time, taking into account the specifics of banking activities and, above all, that the bank operates on other people's funds, there are some peculiarities in determining the bank's solvency. It is assumed that all depositors will not withdraw their funds at the same time. The problem of a bank's solvency is not only a problem for the bank itself, it affects the interests of customers, shareholders, and the state. It should be borne in mind that the loss of solvency of one bank may cause a series of bankruptcies of others. Therefore, the prevention of bank failures is one of the main tasks of banking regulators.

Solvency is considered in terms of the fulfillment by the bank on a specific date of all obligations, including financial ones, for example, to the budget for taxes, to employees for wages, etc. The solvency criterion is the sufficiency as of a certain date of funds in the correspondent account to make payments, including from the bank's profit.

External signs of loss of solvency.

Lack of funds for corr. account.

Termination of accounts.

Return of deposits.

Growth of debt on interbank loans.

The bank is insolvent whose total assets are less than liabilities.

As long as the bank retains its own funds and they are greater than liabilities, the bank is still solvent.

Insolvency resulting from the loss of the bank's liquidity means, firstly, the bank's inability to find internal sources to pay off its obligations; secondly, the inability to attract external sources for this purpose.

The reliability of the bank includes not only high solvency, but also a number of other quantitative indicators. The reliability of the bank is determined using rating systems. As an estimate of reliability, many rating systems use such as 1. the amount of capital, 2. the total amount of assets, 3. the level of profitability. 4. Amount of liabilities 5. Amount of profit. The most famous rating agencies are Moody's, Standard & Poor's, Fitch.

Factors determining solvency and reliability:

The amount of capital

Total assets

The level of profitability.

According to the results of the analyzed period, the most profitable activities for the bank were operations on loans and deposits provided to customers and operations with foreign currency. The greatest negative impact on the amount of annual profit was made by the financial result of operations on borrowed funds from credit institutions.

Absolute profit indicators cannot always characterize the efficiency of a commercial bank, especially when analyzing dynamics. Therefore, it is advisable to use various relative indicators of profitability (profitability) characterizing the efficiency of the return of funds, costs, capital.

Currently, in the economic analysis of banking, four indicators are most often used - the definition of the ratio of profit to capital, assets, income, expenses. Each group and each individual indicator has its own economic meaning and significance.

We calculate profitability indicators for 2005-2007.

1) General indicator of the bank's profitability: ROE = P / E, where P is the bank's profit; E - share capital.

ROE1 = 4,815/125,000,000 * 100% = 0.0038%;

ROE2 = 5,182/ 125,000,000 * 100% = 0.0041%;

ROE3 = 9,332/125,00,000 * 100% = 0.0074%.

2) Profitability (profitability) of assets: ROA = P / A, where A is the bank's assets.

ROA = 4,815/581,115 * 100% = 0.83%;

ROA2 = 5,182/541,012 * 100% = 0.95%;

ROA3 = 9332/1170416*100% = 0.79%.

3) The ratio of profit to income: dd = P / I, where I is the bank's income.

dd1 = 4 815/ 157 810* 100% = 3.05%;

dd 2 \u003d 5 182/159 957 * 100% \u003d 3.24%;

dd 3 \u003d 9 332/ 214 142 * 100% \u003d 4.35%.

4) The ratio of profit to expenses: dr = P / F, where F is the bank's expenses.

dr 1 \u003d 4 815/150 345 * 100% \u003d 3.20%;

dr 2= 5 182/146 699 * 100% = 3.53%;

dr 3 \u003d 9 332 / 203810 * 100% \u003d 4.56%.

5) Return on assets (Da): assets Da =I/A.

Da 1 \u003d 157 810 / 581 115 * 100% \u003d 27.15%;

Da 2 \u003d 159,957 / 541,012 * 100% \u003d 29.56%;

Da 3 \u003d 214 142/1170 416 * 100% \u003d 18.30%.

6) The share of income-generating assets in the total amount of operating assets: da = Ai / A, where Ai - income-generating assets.

da1 \u003d 346 102 / 581 115 * 100% \u003d 59.55%;

da2 = 355,427 / 541,012*100% = 65.70%;

da3 = 749,066 / 1,170,416*100% = 64.01%.

7) Efficiency in the use of borrowed resources: Ri = Ai / L, where L is borrowed funds.

Ri 1 \u003d 346 102/990 161 * 100% \u003d 34.90%;

Ri 2 \u003d 355 427/631 487 * 100% \u003d 56.26%;

Ri 3 \u003d 749 066/1701 086 * 100% \u003d 44.03%.

Based on the results of the data obtained, we build a summary table 2.3.

Table 2.3. Dynamics of profitability indicators of JSC "SKB-bank"

Table 2.2 shows that the value of the return on assets (ROA) was unstable over the analyzed period and during the period decreased from 0.83% to 0.79%. The highest value of this indicator was in 2006 (0.95%). It follows that the growth of the assets of a commercial bank outstrips the growth of its profits.

The value of the generalized indicator of profitability (ROE) had a steady upward trend from 0.0038% to 0.0074% over the analyzed period. This suggests that the profit generated by a commercial bank increases much faster than the share capital.

The value of the indicator (dd) characterizing the share of profit in total income had a steady upward trend from 3.05% to 4.35%. The share of profit in total income changed in the last period to a smaller side compared to the second period. These data characterize the outpacing of profit growth over the growth of total revenues.

The value of the indicator (dr) characterizing the share of profit in total expenses also had a steady upward trend from 3.2% to 4.56%. These data characterize the outpacing of profit growth over the growth of general expenses.

Return on assets (Da) for the analyzed period was unstable, and during the period decreased from 27.15% to 18.3% compared to the initial period. The highest value of this indicator was in the period of 2005 (29.56%). Hence it follows that the assets of a commercial bank outstrip the growth of its total income.

The share of income-generating assets in total assets (da) is volatile. Thus, in 2005 its value was 59.55%, for the period of 2006 - 65.7%, for the period of 2007 - 64.01%.

The effectiveness of the use of borrowed funds (Ri) had the highest value for the period from 2005 - 56.26%, the lowest since 2006 - 34.9%. The dynamics of this indicator is also unstable.

From the above, the following conclusions can be drawn:

First, the return on assets for the period had a negative trend, due to the excess of the growth rate of assets over the growth rate of profit

Secondly, there is an increase in the profitability of the bank's income, however, a general decrease in the profitability of assets with a simultaneous increase in the profitability of income indicates that by the end of the analyzed period there was an increase in the volume of non-income-producing assets in the bank, which is a negative side of the bank's activity.

Thirdly, the efficiency of the use of attracted resources had a negative trend, which indicates the predominance of attracted funds over the share of income-generating assets in the total assets.

Fourth, the growth rate of the share of profit in total expenses (dr) outstripped the growth of the share of profit in total income (dd). In general, we can say that the smaller the difference between these coefficients, the smaller the value of the profit received.

A comprehensive study of all indicators of profitability and profitability of banking operations shows that the main factors affecting the absolute value of balance sheet profit and the level of profitability are:

1. The ratio of income and expenses of a commercial bank and their structure;

2. The level of interest rates on loans and deposits provided to customers and other banks;

3. Change in the volume of credit and active deposit operations;

4. Average profitability of all active operations;

5. Distribution of income and profit share in it;

6. Structure of assets and liabilities of the bank

7. Tariffs for services and commissions;

8. The size of the equity capital of a commercial bank;

9. The degree of growth of bank operations;

10. Structure of the loan portfolio;

11. Expenses for servicing deposits.

The first seven factors make it possible to identify the main reasons for the quantitative change in balance sheet profit, the eighth - to assess its stability, the ninth - the legitimacy of a decrease in profits under the influence of an increase in the volume of active operations, the tenth and eleventh - to give a qualitative assessment of the growth in profitability from the standpoint of banking risks and liquidity of the balance sheet.

The volume, structure and dynamics of the profit of a commercial bank is analyzed in various directions. These include: analysis of the volume of profit for the reporting period, analysis of balance sheet profit and its structure, analysis of net profit, use of profit, analysis of profit in the context of the structural divisions of the bank, profitability of the main areas of banking activities and operations performed by the bank.

In the practice of analyzing the level of profit of a commercial bank, three main methods are used: structural analysis of sources of profit, factor analysis, analysis of the system of financial ratios.

The volume of profit and its structure, despite the importance of this generalizing indicator, does not always provide complete information about the level of efficiency of the bank. The final characteristic of the bank's profitability can be considered its profitability or rate of return.

Profitability indicators mean the ratio of profit to costs and, in this sense, characterize the results of the bank's performance, i.e. the return of its financial resources, supplementing the analysis of absolute indicators with qualitative content. The general economic meaning of profitability indicators is manifested in the fact that they characterize the profit received from each spent by the bank (own and borrowed) ruble.

Profitability indicators of a commercial bank

There are a significant number of different indicators of profitability.

The overall level of profitability of the bank (Rtot) allows you to evaluate the overall profitability of the bank, as well as the profit attributable to 1 rub. income (share of profit in income):

In world practice, this indicator is specified by the indicator of the overall profitability of the bank, calculated as the ratio of the volume of profit received for a certain period to the share capital (authorized fund):

This indicator has received in world practice the name ROE (return on eguity), calculated as the ratio of the total balance or net (after tax) profit of the bank (P) to its own capital (K) or paid authorized capital.

Calculations of this and other indicators of profitability depend on the reporting and accounting system adopted in the country. In Russian conditions, when calculating the profitability indicator, balance sheet profit is currently used.

The ROE indicator shows the efficiency of the bank, characterizing the performance of the funds invested by shareholders (shareholders). The value of ROE is directly dependent on the ratio of equity capital and borrowed funds in the total currency of the bank's balance sheet. At the same time, the greater the share of equity, and, as is commonly believed, the higher the reliability of the bank, the more difficult it is to ensure high profitability of one's capital.

Another important indicator of the overall profitability of the bank - the rate of return on assets (ROA - return on assets), showing the amount of profit attributable to the ruble of bank assets. This indicator is used in the analysis of the effectiveness of the active operations of the bank, the effectiveness of the management of the bank as a whole and is determined by the following formula:

where A is the average value of assets.

The positive dynamics of this profitability indicator characterizes an increase in the efficiency of using the bank's assets. At the same time, a rapid increase in this indicator indicates an increase in the degree of risks associated with the placement of assets.

Analysis of various aspects of profitability requires the calculation of profitability indicators of active and passive operations of the bank. Active operations are the main source of income for the bank and, based on this, the profitability of the bank is determined by the effectiveness of active operations.

To calculate and analyze the profitability of certain types of active operations: credit, investment, foreign exchange, etc., it is necessary to determine the amount of income received from each group of active operations of the same type and compare it with the corresponding amount of expenses incurred for these operations:

where RaI - profitability of the i-th type of operations;

Di - the amount of income received from operations of the i-th type;

Ai - the average value of assets used in transactions of the i-th type.

The profitability of passive operations through which the bank's resources are attracted is calculated as the ratio of the total amount of attracted resources to the total amount of the bank's investment:

The general characteristic of the profitability (efficiency) of attracting liabilities should be detailed by profitability indicators for specific types of attracted resources: deposits, bills, interbank lending.