Research On The Factors Of Profitability Of China’s Listed Commercial Bank

The commercial bank is a modernized financial institution which regards profit as the main target. Profitability is an important cornerstone for its survival and development. High profitability can help commercial bank win the trust from customer and society and it’s good for its own growth. At the same time, in the process of achieving profit, commercial banks can also help promote the economic benefits of the enterprise and the society.With the deepening of global economic integration, and being a member of the WTO,the opening of the financial market, continuous inburst of foreign banks, the gradually accelerated of China’s market-oriented interest rate and the growing of disintermediation phenomenon, Domestic commercial banks are facing multiple pressure and challenge. Increasing profitability and enhancing their own strength is a way to respond to changes in the macroeconomic environment and fight against the foreign banks and other financial institutions. The analysis of China’s listed commercial banks’ profitability can help to know its own profitability level and its helping to guide commercial banks to seize the opportunity, to choose the correct market competition strategy and to establish the correct countermeasures.This paper regards the listed commercial banks as the research object, discussing the impact factors on the qualitative and quantitative analysis. Firstly, this article introduces the background, significance, method and content. Secondly, it explains the meaning of profitability of commercial banks and then recommends foreign and domestic related theories of impact factors of listed commercial banks profitability. Third, on the base of commercial banks’ current development situation, this article introduces state-owned commercial banks, share commercial banks and city commercial backs’ development. This section also analyzes current situation from net profit, income structure, return on total assets and net assets yield rate four aspects. Subsequently, we do some theoretical analysis on impact factors of listed commercial banks from macroeconomic level, industrial level and banking level. Then On the basis of theoretical analysis, this paper gives every impact factor an index, through the empirical model to find the relationship between profitability and factors and the impact level. Last, according to the research result, this section provides some advices on how to improve the the profitability he bank’s own angle.