Compare And Analysis The Profitability Of Listed Commercial Bank In China

With the processing of reform and open policy in China, financial industry isgrowing rapidly and becomes more and more important. Under this situation, foreignbanks will be fully into the mainland market, more competition makes our state-ownedcommercial bank restructuring to face new challenge. On the other hand, Chinesecommercial bank will have a good opportunity to develop form the quickly developing ofeconomic environment in terms of both new financial policy and market rules. The listedcommercial Banks in china can be seem as the label of Chinese banking industry, inrecent years, although the scale of list bank are increasing in high speed, but its overallprofitability is not as highly as its expansion. Therefore, under the situation of moreforeign banks and more competition, how to increase listed commercial Banks’sprofitability and how to evaluation themselves has played an increasing key role incurrent Chinese banking industry.The object of this paper is analyzes the profitably of listed banks, this essay choosethe simples form the state-owned commercial Banks, joint stock commercial Banks andcity commercial Banks, based on these banks to compare and analyze. Then collect datafrom their2008-2010annual reports, using the form, graphic to analyze and comparetheir profitability trends and profit structure then to understand the overall capacity ofprofitability of Chinese Listed commercial banks. In the fourth chapter of this paper, itwill show five crucial factors which impact the profitability of commercial bank.From the analysis of this essay, three categories listed commercial Banks’capacities in profitability are quite different in China, although the profitability droppedin2009, it climb up in the next year. Moreover, state-owned commercial banks arestronger in capacity of profitability than others. The differences in profitability aremainly influenced by macro policy and inter management problems. At the end of thispaper, some suggestions and opinions are published basic on Chinese economiccondition.