Research On The Influencing Factors Of The Profitability Of Jiangsu A Rural Commercial Bank

Profitability mainly reflects the competitiveness of the bank in the financial industry,which is crucial to the survival and development of the bank.However,due to the slowdown of the Chinese economy,the diversion effect of financial media on the traditional business of commercial banks has led to a decline in the operating income of commercial banks in China,and the profitability has been seriously affected.Jiangsu A Rural Commercial Bank,as a powerful promoter of the economy and development of Area A,its profitability has maintained the level of economic development in Area A.Therefore,the factors affecting the profitability of Agricultural Commercial Bank A are studied to find out the specific problems faced by profitability.It is of great practical significance to enhance the profitability of A Agricultural Commercial Bank.First of all,this article makes a general discussion on the theory and research methods of profitability of scholars in the current field of finance,and analyzes the current situation of profitability of A Agricultural Commercial Bank from five aspects: investment remuneration,income structure,bank risk,operating efficiency,and business activities.From each aspect,we choose the index representing the profitability of A Agricultural Commercial Bank and the same agricultural commercial bank as A Agricultural Commercial Bank,namely B Agricultural Commercial Bank and C Agricultural Commercial Bank,to conduct a comparative analysis.Finally,the relevant data of A Agricultural Commercial Bank for 2009-2017 are selected.Taking the return on assets as the dependent variable,the non-performing loan rate,the cost income ratio,the net operating interest rate,the return on net assets,and the interest net income as the operating income comparison,etc.,reflect the bank's profitability.Indicators are used as independent variables.The multivariate linear regression model is constructed,and the multiple colinear problems between independent variables are solved by using the principal component analysis method.The regression equation between the principal component and the dependent variable asset yield is obtained,and then the two principal components and the original independent variables are extracted.The standardization relationship between the two main components and the original independent variables,The principal component is reduced to the original independent variable,and the regression equation of the return rate of the original independent variable and the dependent variable is finally obtained.Through the normative analysis,the conclusion is drawn: A Agricultural Commercial Bank's overall profitability is higher than B Agricultural Commercial Bank and C Agricultural Commercial Bank;A Agricultural Commercial Bank has a higher efficiency in the use of its own funds,and its operating income mainly depends on interest income.The non-performing loan rate is higher than the average of the National non-performing loan rate of Agricultural Commercial Bank.Through the empirical analysis,it is concluded that the ratio of non-performing loan rate,cost income ratio,and interest net income to operating income is negatively related to the profitability of A Agricultural Commercial Bank;The net operating interest rate and the return on net assets are positively related to the profitability of Agricultural Commercial Bank A.