The Research Of Listed Banks Performance Evaluation Based On EVA In China

With the continuous development of economic globalization, more and more Banks in our countrychoose listed financing at home and abroad. By the end of2013, There are16listed commercial Banks inthe mainland, including five large state-owned joint-stock commercial Banks, eight national joint-stockcommercial Banks, three city commercial Banks. Banking is the core of China’s financial sector, and itsimportant economic status and a high risk determines the effectiveness of its management has profoundinfluence on the whole industry and national economy. In recent years, more and more foreign Banks comeinto China market, with its strong financial strength, superior management model, strong ability of productinnovation and flexible marketing strategy the brings great influence on commercial Banks in our countryon many aspects, such as performance,management, product. Facing challenges, domestic Banks in Chinashould abandon depend on traditional profit model of the scale, by interest rate differentials and shouldincrease the proportion of non-interest income, and at the same time putting traditional financial indicatorsas the core of performance evaluation system are also highlighted. How to build the scientific performanceevaluation system, optimize the distribution of bank capital, enhance the capacity of Banks to resist risks,guide managers aim to maximize shareholder value has become the important topic in today’s China’sbanking industry.The traditional performance evaluation system with profit as the core did not consider the equitycapital cost and operating risks, it think equity capital is free and cannot measure how many wealthmanagers actually create for shareholders; EVA’s biggest improvement is deducted from the traditionalprofit targets in equity capital cost, more accurately reflect the enterprise’s profit ability, is advantageous tothe enterprise value maximization goal.This paper first introduces the background significance and research status at home and abroad of EVAperformance evaluation of listed Banks in China, then introduces the basic theory of EVA, and comparedwith traditional financial indicators, it explains the superiority of EVA index in the aspect of performanceevaluation; Secondly introduces the calculation method of EVA theory in the commercial bank, andaccording to the2012annual report data, calculating16listed Banks of EVA,REVA, ROE to find out the overall performance of listed Banks in Shanghai and Shenzhen two city, for the analysis of Chinamerchants bank. Again carrying out specific analysis on China merchants bank as an example, andaccording to the time sequence it is divided into two parts, vertical comparison and horizontal comparison.Horizontal comparison is that China merchants bank in2012financial index compares with each big bank,to find out the China merchants bank’ real performance from the Angle of the EVA evaluation, and find outthe real profitability in major listed Banks rank; Longitudinal comparison with China merchants bank from2010to2012, to analysis EVA and traditional financial index, re-examining its profitability in nearly threeyears from the Angle of EVA. Through the above comparison to find out the cause of this differencebetween EVA and traditional financial indicators, to prove the superiority of EVA from data, and putforward countermeasures to improve the business performance. on the basis of the combination of theoryand case, final part of this article put forward suggestions of perfecting our country’s banking sector toimplement EVA performance evaluation system, and ultimately put forward measures to improve China’slisted commercial Banks operating performance.