Give The Dupont Model Of The State-owned Commercial Bank Profitability

China’s financial sector is fully opened, the competitive market in the banking industry is becoming increasingly fierce, four state-owned commercial banks are changing to commercial banks profitability has not been given sufficient attention. The state-owned commercial banks only have a high level of profitability in order to maintain our competitive edge in the intense competition with other joint-stock commercial banks, foreign banks.The profitability of the commercial banks which means its ability to make a profit. Analysis of the profitability of state-owned commercial banks and state-owned commercial banks and international banks, the comparative analysis of China’s10listed joint-stock commercial bank profitability, found on the overall size of the four state-owned commercial banks and international banks still a large gap between these two in the net return on equity and return on assets measure the ability of the most important indicator of profitability, the state-owned commercial banks are basically already has a competitive and world-class commercial banks, but the four state-owned commercial banks to the prevalence of high non-performing loan ratio, low per capita profit, revenue structure than the single issue, affecting its profitability improved.Most representative of the main analytical tool for the DuPont model as the profitability of the business in the four state-owned commercial banks, financial ratios, net assets yield of the most comprehensive core set of indicators, in accordance with the DuPont model from the sale of net profit margin, total asset turnover and equity multiplier of three factors found sales margin contribution to the profitability of state-owned commercial banks, total asset turnover ratio has a weak effect on the rate of return on net assets, equity multiplier rate of return on net assets is negative. Through further analysis, the state-owned commercial banks ability to control costs better, but because of its poor efficiency of asset management, financial leverage and lower utilization, impede to further improve its profitability.State-owned commercial banks should promote the reform process of its internal operating mechanisms, improve management, improve the organizational structure at the same time, actively explore the business of which continue to improve asset quality, thus to deal with the strong profitability of the banking industry increasingly fierce competition...