Profitability Study Of Trust Company Based On Factor Analysis Model

Since 2007, trust company has been developing rapidly in our country, by the fourth quarter of 2013, trust assets of the industry reached 10.91 trillion Yuan. The trust become an integral part of the pillar of our country financial industry as well as banking, insurance, securities, funds. But with the advent of "Generic Asset Management Era", profitability of huge trust company is falling. In this context, the research emphasis of this article is the profitability of the trust company.Due to the shorter standardization development time of the trust company, and the size of trust companies is smaller in China before 2007, assets continuously expand rapidly in recent years, so there are large differences between the literature on trust company profitability before 2007 and the profitability and the mode of the trust company now. This article selected financial data of 51 trust companies from 2007 to 2012 for empirical analysis, to research the change trend of the profitability of Chinese trust company. Obtain the following conclusions:(1) The pattern of relying on the system of dividend merely has changed, the professional investment capacity and after management ability has a significant difference in trust company, but at present the discretion of our country’s trust company’s profitability is not the professional investment ability and after management ability’s contest. Difference of acquisition of the assets, institutional clients sales and service ability between trust company is bigger and bigger, and the acquisition of assets, Institutional clients sales and service ability is the main source of trust company profitability differences. (3) At present, scale difference of the trust company is narrowing in the rapidly developing of trust industry, the scale factor is not an important decision factor of trust company profitability, pursuit of upgrade the size purely is now cannot effectively improve the company’s profitability.Based on the research conclusion of this article, the trust company can focus on some factors in improving their profitability, promote the sound development of trust companies in our country, so the conclusion has a strong theoretical and practical significance:Beneficial to the improvement of the trust company’s profitability in China; Help regulators grasp the trust company business development direction and business composition change trends effectively, which has important significance on the smooth development of trust business; Beneficial to trust settlor, because the increase of trust company profit ability namely trust settlor’s income increase, so the study of trust company profitability has a positive significance for trust settlor.