Financial Analysis Of The Four Major State-owned Commercial Banks’ Existing Business Composition And Profitability Trend

The bank is the media of the national savings and social production and consumption. The rise and fall of banking not only indicates the national economic ups and downs, but also plays a very important role in its development. China’s commercial banks are now facing the dual challenges of the marketization of interest rate and the rise of the internet finance. If the four major state-owned commercial banks want to achieve steady profitability growth, they will face enormous difficulties.This article begins with the structure analysis of the existing business of the four major state-owned commercial banks, selects the Bank of America, JP Morgan Chase Bank, HSBC, Deutsche Bank, and Bank of Tokyo-Mitsubishi UFJ as the large foreign commercial bank representatives, analyzes their business and compares with the four major state-owned commercial banks.Then the profit structure and profitability trend of the four major state-owned commercial banks are analyzed and concluded:deposit and loan business contributes a very high proportion of total revenue; its associated businesses also contribute many profits, while other activities contribute a small proportion of total revenue. Then this article analyzes the factors which affect the future profitability of the four major state-owned commercial banks, mainly including policy factor, competition factor and cost factor. If the four major state-owned commercial banks still maintain the existing business structure, its profitability will certainly be reduced.Finally, to explore how to achieve continuous improvement of the four major state-owned commercial banks’financial indicators through the business restructuring and management innovation, methods and measures can mainly be summarized as the following three points:developing the intermediate business and rationalizing business structure, carrying out management innovation to reduce operating costs, and improving service quality and efficiency.