Research On Profitability And Influencing Factors Of Listed Commercial Banks

Under the new normal situation,Chinese economic growth rate slows down and becomes more stable.Internet finance is developing rapidly,peer-to-peer and crowdfunding split the bank’s liabilities.The Basel III strengthens capital regulations of banking industry.With the opening of the financial market,the influx of foreign banks,the boost of interest rate liberalization and the implementation of the deposit insurance system,the domestic banking industry is facing more intensive competition.Relying on the traditional spreads revenue model is not conducive to the long-term development of commercial banks.Profitability is one of the three operating principles of commercial banks,which is not only the target of commercial banks,but also the survival and development foundation of commercial banks.Profitability as the core competence of commercial banks,plays a key role in its development.In the complex economic environment,competition among banks is the competition of its profitability.No matter what kind of business is dealt with,what services are developed,the ultimate goal of the banks is profit.Currently,as banks are in a period of strategic opportunities,how to deal with the challenges and seize the opportunities are the key to its long-term stable development.Improving profitability is an important way to enhance their competitiveness,so it is necessary to study the profitability of commercial banks.Based on this,this article refers to a large number of domestic and foreign research results and can be divided into five chapters to study the profitability and its influencing factors of listed commercial banks and tries to provide reference and guidance for the development of commercial banks through the proposed countermeasures.The first chapter is the introduction,which describes the background and significance of the topic,domestic and foreign scholars’ researches with ideas,methods and innovation points of this paper.The second chapter introduces the theoretical basis of the profitability of commercial banks,including the definition of profitability,the financial indicators of profitability,the influcing factors and research methods.The third chapter analyzes the present situation of the profitability of listed commercial banks,takes 16 listed commercial banks in China’s A-share stock market as the research objects,puts 16 banks into large commercial banks,joint-stock commercial banks and urban commercial banks parts,uses the method of financial ratio analysis to analyze the changing trend of the main financial ratios,reselects a bank from its own type and uses the Du Pont analysis method to study the influcing factors of the profitability and finally makes analysis of financial index each from three types of banks. The fourth chapter makes an empirical analysis on the influencing factors of the profitability of listed commercial banks,bases on the panel data model,considers the internal and external factors that affect the profitability of commercial bank profitability and uses the data from 2008 to 2014 to analyze the factors of listed commercial banks’ profitability. The fifth chapter puts forward the countermeasures to improve the profitability of commercial banks,according to the conclusion of the empirical analysis in the fourth chapter,some countermeasures were proposed from the scale of bank assets,asset quality,business structure,liquidity,operational efficiency and macro-economy. On the basis of empirical analysis on the influencing factors of the listed commercial banks’ profitability,the results are as follows:Firstly,bank assets,non-performing loan ratio and cost income ratio are negatively related to the profitability of listed commercial banks.Secondly,the intermediary business,liquidity,gross domestic product(GDP) and consumer price index(CPI) are positively related to the profitability of the listed commercial banks.According to the conclusion,I put forward some countermeasures to improve the profitability of commercial banks:Firstly,in terms of asset size,commercial banks should control the size of the bank.Secondly,in terms of asset quality,commercial banks should strengthen risk control and improve the quality of assets.Thirdly,in terms of business structure,commercial banks should vigorously develop intermediary business and promote the transformation and upgrading of business structure.Fourth,in terms of liquidity,commercial banks should maintain a moderate liquidity.Fifth,in terms of operational efficiency,commercial banks should promote cost management and improve operational efficiency.Sixth,in terms of macroeconomic,the commercial banks should adjust the strategy timely and adapt to the economic situation.Seventh,the three types of banks should combine their own characteristics,find their own positioning,and implement differentiation development.