Listed Banks Comparisons And The Research Of Huaxia Bank Financial Strategy

Listed banks working as special group that provides financial services take in legal financial services and professional business under the supervising of CBRC and CSRC. In the same market background, commercial banks often operate identical financial services and professional business. How to attend the competition for middle and little size banks is worthy to research.This paper aims for the decision support of financial aspects for business strategy in Huaxia bank. We select eight banks which is almost in the same size to analyze their disclosed information recently, including annual financial reports in2010. Some relative data is also drawn from WIND database to be analyzed for working out some constructive advice. This paper composes of six parts, they are:Chapter1is the introduction. This part mainly explains the research backgrounds, missions, ways, contribution and creations of the paper. At last, the chapter reviews and comment on some theory about strategy management and financial management, which offer the base for the whole research.Chapter2is the comparisons of the size for the eight banks (including Huaxia bank). Their assets size and the location in the bank industry are found out, then we think that Huaxia bank is passive for overmuch low-risk assets, conservative business developing model and low-increasing assets and debts. By comprising the earning power of the eight banks, we find out Huaxia bank earns the low EPS because of the low gross profit margin opposite to the average level.Chapter3is the relative analysis of assets size and earning power. It is assured that assets size and quality are both the important factors which affect the performance of listed banks.Chapter4focuses on the cost of listed banks. The conclusion is the size, stuff and cost proportion of branches are all contributing greatly to the ways of business increase. Huaxia bank maintains high cost scale with the small assets size. It’s reversed for the operating cost and salary cost in the total cost of Huaxia bank, which ignores the reasonable encourages and easily results some persons moving from Huaxia bank to another.Chapter5finally gives some advices of investment, finance, dividend distribution and financial construction for Huaxia bank by the analysis of financial surroundings and comparisons of financial strategy.The creation of the paper lies in that we firstly comprise the assets size, earning power, branch and stuff amounts et al of the listed banks, then some relative financial strategies are suggested aiming for the operating characters of Huaxia bank. It regret that we just select the only one year information of part listed banks, which may result the calculation deviation and the bias of some conclusion.