Analysis Of The Profitability Of China Construction Bank

In a market economy, commercial banks as the independent operation, own risk, self-financing, self-discipline and legal status with the financial enterprise, its operating objective is profit, also analysis on bank performance is mainly analysis the profitability of banks. In the process of interest rate marketization, the Commercial Bank of our country traditional profit mode suffered a major blow, and the traditional intermediate business income with the adjustment of national policies facing adjustment, in the increasingly open domestic financial market and competitive environment, how to promote the Construction Bank of China to maintain its rapid business growth, enhance its own profitability, the current financial environment impact crisis response, is an important topic in the current. Through the analysis of data bank profits in recent years, the construction of the year-on-year decline in net profit growth rate. China Construction Bank net profit growth rate of decline to three main reasons. First of all, is the impact of macroeconomic, the real economy declined, the slowdown in the economy, the financial demand appropriate decline which is not conducive to the main reason for the banks’ profit growth. Secondly, is the impact of interest rate marketization, the pace of market-oriented interest rate to accelerate, market and competition has intensified, banks in the business has also made the development, structural adjustment. Third, regulatory policy, charging policy adjustment, the reason is caused by the construction of the profit slowdown.The bank comprehensive level of profitability and profit situation, on the one hand, the decomposition of profitability analysis of Construction Bank and each profit index with the profitability of banks, in the analysis of bank profitability indicators, not only analyzes the change trend of the rate of return on capital and asset returns, the profitability of banks decomposition, factors affecting the construction of capital gains and the rate of return on assets, the various factors that influence the profitability of Construction Bank to find out. On the other hand, combined with the analysis of the profitability of Construction Bank results, comparing each index by China and other state-owned commercial banks, joint-stock commercial banks of our country the profitability of foreign banks, the pressure faced by the Construction Bank and enter the heavily in foreign banks, to find a way in the current situation of construction banks to increase their profitability in the competition and reference. These include, one is the structure of assets and liabilities to adjust the Construction Bank, vigorously develop the intermediate business. The two is to adjust the construction bank debt, expand its liabilities sources. Three is a mechanism to change the construction bank assets, strengthen the credit assets of the credit process, small mobility assets change will construction bank risk into the high security portfolio. At the same time, the construction of the loan from enterprises to adjust the strategy for small business, the development of small and micro businesses loan service. Reduce the construction bank bad assets rate, improve the bank asset quality and improve its level of profitability.