Bank profitability: a comparative analysis by ownership structure

Kovalenko Victoria
D.Sc. (Economics), Professor, Professor, Department of Banking, Odesa National University of Economics, Odesa, Ukraine, E-mail: kovalenko-6868@ukr.net, ORCID: https://orcid.org/0000-0003-2783-186X

Serhieieva Olena
PhD (Economics), Associate Professor, Department of Banking, Odesa National University of Economics, Odesa, Ukraine, E-mail: lenasergeeva2007@ukr.net, ORCID: https://orcid.org/0000-0002-5523-3894

Azarova Kateryna
Bachelor of Finance and Banking, Specialization "Management of Bank Activities in the Financial Market", Odesa National University of Economics, Odesa, Ukraine, E-mail: kaazarova012@gmail.com

Received: 09.05.2025    Аpproved: 24.05.2025    Рublished online: 05.07.2025

Cite this article:

Kovalenko V., Serhieieva O., Azarova K. (2025) Bank profitability: a comparative analysis by ownership structure. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Prybutkovist bankiv: porivnjalnyj analiz za formamy vlasnosti; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 5 (330), pp.29-37.

Abstract

The article substantiates that profit serves as the main internal source for replenishing financial resources, forming the foundation for banks to address strategic objectives related to their further development. The aim of the article is to conduct a comparative analysis of bank profit formation, taking into account their forms of ownership, and to identify key factors influencing the efficiency of profitability management. It is argued that under the conditions of full-scale war, banks’ ability to generate profit is significantly reduced due to declining demand for loans, increased risks, and economic instability. The study emphasizes that bank profitability is affected by internal factors depending on the form of ownership. The combination of influencing factors varies based on this criterion. A comparison of banks’ performance according to their ownership structure shows that today all types of banks operate under equal conditions in the financial market, follow their own strategies and business models, and are focused on ensuring competitiveness and sustainable development of the country’s financial sector in the context of the global digital transformation of the economy. However, it is noted that state-owned banks benefit from government support, which ensures their stability, but they may be less flexible compared to other types of banks. Foreign-owned banks offer innovation, international experience, and additional resources, but may be less oriented toward the local economy. Banks with national (mixed) capital provide a balance between international expertise and the flexibility to respond to domestic market conditions. It is proven that foreign banks operating in the Ukrainian banking sector appear to be the most stable, whereas banks with state or private ownership may be more vulnerable to economic and financial shocks. Currently, foreign capital in Ukraine is represented by financial institutions from such developed European countries as Austria, France, the United Kingdom, Poland, Germany, Turkey, among others. The impact of the significant presence of foreign banks in the domestic market is dual in nature: on one hand, they contribute to the country’s financial development; on the other – they may pose certain risks. The study concludes that bank profitability depends on the internal factors shaped by their ownership structure.

Keywords

bank, forms of ownership, capital, loan portfolio, profit.

JEL classification: C 530; E 440; E 500;DOI: https://doi.org/10.32680/2409-9260-2025-5-330-29-37

UD classification:336.717

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