Research On Application Of The Improved Dupont Analysis In The Pearl River Delta Rural Commercial Bank

Rural commercial bank is local bank at the Pearl River delta region around the city,which is an important part of the Pearl River delta region financial enterprises and has the important significance improvement to the local economic development.With China’s accession to the World Trade Organization,and the range of the open more and more big,the development of banking is not only has the unprecedented development space,but also full of all kinds of pressure of competition.The rural commercial bank in the pearl river delta mainly small and medium-sized local commercial Banks,the main business scope is in the city of local administrative areas,relatively weak ability to resist risk,profit model is mainly rely on the traditional deposit and lending spreads,with advanced competitive disadvantage between Banks.Rural commercial bank management hopes to maintain sustainable development,reduce and disperse risk,improve profitability,and overcome the weakness of the single business structure,excessive reliance on interest income.This article first through the overall analysis of the agribusiness bank,summed up the features of agribusiness bank,clear the traditional du Pont analysis method is not applicable to give priority to with money management,has the geographical advantage,small scale of its revenue,income structure of a single,poor profitability of agribusiness Banks;Secondly,combining with the characteristics and development of the rural commercial bank,to improve the traditional du Pont financial analysis system,improve the du Pont analysis method with the sustainable growth rate as the core indicators,introduced the cash flow indicator,resolve rural commercial bank ability of sustainable growth and earnings quality.Then,the improved DuPont financial analysis system in the pearl river delta in Shunde agri-businesses rural commercial bank to application,through application of du Pont analysis method before and after improvement and evaluate the effect of contrast,evaluation improvement effect;Finally,summarizes the application process of DuPont analytic method and matters needing attention.The research results show that the introduction of cash flow index and the sustainable growth rate index improved DuPont analysis method is more applicable to give priority to with money management,has the geographical advantage,small scale of its revenue,income structure of a single,less profitable bank of agribusiness.It improves the traditional du Pont analysis evaluation of the effect,is advantageous to the rural commercial bank in the focus on profitability at the same time focus on earnings quality,focus on growing ability good rural commercial bank is reasonable allocation of resources,attaches great importance to the long-term development of enterprises and shareholder returns,better to make financial decisions.