The Analysis Of Internet Financial Impact On The Commercial Bank Profitability

Non-performing loan ratio of the large commercial banks represented by the four major state-owned banks in 2015 reaches 1.67%, the annual net profit growth rates have all fallen below 1%, despite the net profits still maintaining at the hundred billion level, the dilemmas of commercial banks are obvious regardless:under the circumstance of interest rate liberalization, profit models mainly based on profit differential are unsustainable, and the monopoly situations of financial intermediaries have been corroded by internet finance, the traditional operating business is eager to be innovated, innovative financial services are just unfolding and the profit model transformations are pretty eager. After the rapid development in the recent years, internet finance has become a new-emerging force which can’t be ignored in the financial industry of China, and as for what influences have been produced on the profitability of listed commercial banks and how shall the listed commercial banks react, the existing literatures carry out discussions mainly from the viewpoints of financial index and theoretical research.In this article it sorts out the relevant literatures and theories, summarizes the domestic and foreign business categories of internet finance, analyzes the influencing mechanism of internet finance on the profitability of commercial banks, then measures the present influencing situation of internet financial industry on the profitability of commercial banks through the correlation analysis, so as to carry out preliminary analysis. Based on this, it takes the Agricultural Bank of China S branch as the example, and it adopts the analytic hierarchy process to structure the profitability influence and evaluation system and index weight, and carries out evaluation to the influencing index with fuzzy evaluation method, and analyzes te evaluation results.The research results show that:(1) Personal consumption business in the asset end businesses of commercial banks receives stronger influences of the internet finance, with the maximum value of membership degree being 0.83; personal operating loan business receives stronger influences of the internet finance, with the maximum value of membership degree being 0.50; small and micro-sized enterprise loan business receives ordinary influences of the internet finance, with the maximum value of membership degree being 0.56. (2) Current deposit business in the liability end businesses of commercial banks receives stronger influences of the internet finance, with the maximum value of membership degree being 0.56; fixed deposit business receives ordinary influences of the internet finance, with the maximum value of membership degree being 0.61; personal financial planning business receives stronger influences of internet finance, with the maximum value of membership degree being 0.52. (3) Service charge income business of the intermediary businesses of commercial banks receives ordinary influences of internet finance, with the maximum value of membership degree being 0.4; commission income business receives ordinary influences of internet finance, with the maximum value of membership degree being 0.61; platform and channel businesses receive ordinary influences of internet finance with the maximum value of membership degree being 0.50. (4) Customer contract cost of the transaction costs of commercial banks receives stronger influences of internet finance, with the maximum value of membership degree being 0.50; customer credit rating measure cost receives stronger influences of the internet finance, with the maximum value of membership degree being 0.58; post loan risk management cost receives ordinary influences of the internet finance, with the maximum value of membership degree being 0.53; non-performing treatment cost receives ordinary influences of the internet finance, with the maximum value of membership degree being 0.44.And finally, this article proposes political suggestions from the viewpoints of business category、transaction mode and internal control etc to the commercial banks according to the theoretical analysis and research result.