Alikulova Aziza Nurkhayotovna
independent researcher of
Tashkent State University of Economics,
Tashkent, Uzbekistan
ORCID:0000-0001-8149-9878
Abstract. This article comprehensively studies the current state of ensuring the profitability of commercial banks, the main sources that form it, and the internal and external factors that affect the financial results of the bank. It is based on the fact that the stable operation of commercial banks, strengthening their capital base, maintaining the level of liquidity and increasing their competitiveness in the financial market largely depend on their ability to generate sufficient and stable income. The research analyzes the composition of bank income, including interest and non-interest income, income from credit operations, investment activities, commission services, foreign exchange operations and other financial services. Also, special attention is paid to internal factors that affect the profitability of commercial banks, such as the quality of the loan portfolio, the cost of resources, net interest margin, return on assets, capital adequacy, the share of problem loans, operating expenses and the effectiveness of risk management. The external factors considered are the inflation rate, the Central Bank’s monetary policy, interest rate dynamics, exchange rate changes, economic growth rates, and the impact of the interbank competition environment. The study involves the use of comparative analysis, a systematic approach, statistical grouping, dynamic series evaluation, and methods of comparing economic indicators. In assessing profitability, the importance of such important financial ratios as return on assets, return on equity, net interest margin, cost-to-income ratio, and share of non-interest income is revealed. Analyzing these indicators in their interrelationships allows identifying existing problems in banking activities, assessing the stability of the income base, and determining priority measures to improve future financial results. It is emphasized that, especially in conditions of high competition and volatility in financial markets, managing profitability in harmony with the level of risk is an important condition for the bank’s strategy. This approach serves to assess the quality of the bank’s earnings and ensure long-term stable growth.
Keywords: commercial banks, bank income, bank profitability, interest income, non-interest income, net interest margin, return on assets, return on equity, loan portfolio, non-performing loans, bank assets