China Minsheng Bank Profitability Analysis

Banking in our country has experienced 10 years of rapid development, and achieved good results, despite the economic slowdown in the world today, China’s banking industry is still maintained rapid growth, the banks’ profits, the size, the overall strength are constantly enhanced. But we should see in the course of the interest rate market, the traditional way of profit of commercial banks is bound to be seriously challenged, commercial banks rely on high capital consumption pattern will be difficult to obtain sustainable development in the case of narrowing spreads, business Bank restructuring overwhelming, but as China continue to deepen financial reform, the traditional fee income will also face further adjustments, how to survive in this highly competitive environment in the development of the Minsheng Bank is an urgent need to explore and solve problems.Data changes through the years can be seen, Minsheng Bank net profit growth rate is showing a downward trend for several reasons, the first is the macroeconomic impact of the current international economic downturn, the overall economic slowdown, Bank earnings are affected; the second is the result of market-oriented interest rate spreads narrowed to impact on banks’ earnings; the third is the domestic economic restructuring, and this is the reason Minsheng Bank earnings slowdown.Scholars generally agree that the current financial indicators is an important criterion for the identification of commercial banks own profitability indicators to evaluate the use of the financial class is an effective means to assess the ability of the bank. Under article selects China Minsheng Bank’s profit model for the study of the case, commercial banks’ profit model in-depth analysis, and put forward some suggestions on the profitability of China Minsheng Bank, China Minsheng Bank thus relevant factors to identify the impact indicators, Meanwhile, we will be based on the actual situation of China Minsheng Bank will compare it with the relevant indicators of other commercial banks, foreign banks and analysis gradually into our environment, the pressures brought about by the Minsheng Bank, Minsheng Bank find ways to improve the profitability of the competition approach.