Study On Profitability Of China Commercial Bank Based On Du Pont Analysis

Profitability is one of the three major operating principles of commercial banks.Under the condition that commercial banks have certain security and liquidity,how to improve the profitability of commercial banks is a concern of modern commercial banks.The year 2018 is an important year for the implementation of the“Thirteenth Five-Year Plan ”.China's economy has grown steadily and business conditions have improved.However,with the Chinese economy entering a new stage of development,the growth rate of the real economy has dropped,causing the bank's profit rate to increase at a rapid rate.Moreover,the non-performing loan ratio of commercial banks has risen steadily,and banks have also faced the cruel situation of“asset shortage”.In addition,the level of income of bank employees has fallen dramatically,which has created a wave of departures of bank employees.In addition,at present,the impact of uncertain international factors such as Brexit and the US's“trade warfare” against China,China's commercial banks will undergo many tests.At the same time,how should China's commercial banks,which are in the process of deepening supply-side reforms,improve their profitability while resisting risks? This is the way to find a way out in the storm.Based on the above background,the factors affecting the profitability of commercial banks will be excavated,and whether the relevance of the profitability indicators of China's commercial banks will change under a different macro environment will be explored.What are the different effects that these indicators will have on commercial banks? For commercial banks,how to carry out transformation and upgrading in the new situation? Based on this,this thesis conducts theoretical and empirical research on the influencing factors of profitability of commercial banks,and proposes relevant policy suggestions on how to improve theprofitability of commercial banks based on the results of theoretical and empirical results.This article uses Du Pont analysis method to analyze the panel data model.Through the F test,LR test and Hausman test,finally determined the individual fixed effect model of this paper.Factors for panel data model regression.The following conclusions are drawn: The index of asset quality is not significantly negatively correlated with the ROA;the index of capital adequacy is not significantly positively correlated with the ROA;the index of asset liquidity is not significantly positively correlated with the ROA;the efficiency of operational efficiency are significantly negatively correlated with the ROA;there is a significant positive correlation between the index of deposit and loan service with ROA,the ratio of net interest income/total assets and the ROA,and the indicator of asset size is significantly negatively correlated with the ROA;The rate of total asserts is significantly positively correlated with ROA;the index of taxation is not significantly negatively correlated with the rate of ROA;the GDP is significantly positively correlated with the rate of ROA;and the index of inflation is not significantly negatively correlated with the rate of ROA.