Research On The Improvement Of LC Bank's Profitability

With the continuous advancement of financial globalization and the continuous opening of China's banking market,Chinese commercial Banks are facing more and more opportunities and challenges.The profitability of commercial Banks is the basic guarantee for the development of commercial Banks.In order for commercial Banks to achieve long-term and stable survival and development,it is necessary to improve the profitability of commercial Banks.As a branch of a large state-owned commercial bank,LC bank faces many challenges in its survival and development.Therefore,it is of great significance to analyze and study the profitability of LC bank.This paper takes LC bank as the research object,uses comparative method,Dupont analysis system and other financial analysis methods to analyze and research the financial data of LC bank and other banks.We could find out the existing problems,analyze the causes of the problems and put forward countermeasures.There are six chapters in this paper:the first chapter is the introduction,which mainly introduces the research background and significance of this paper,domestic and foreign research achievements and research methods.The second chapter is the concept definition and basic theory.The third chapter is the analysis of the financial and profit indicators of LC Banks.It analyzes LC Banks from different perspectives and compares them with other Banks.The fourth chapter is the problems and reasons of the profitability of LC bank.The fifth chapter is the countermeasures and suggestions to improve the profitability of LC Banks.Chapter six is the conclusion and prospect.Through the research,this paper finds that the profitability of LC bank is in the stage of continuous gro.wth.However,the LC bank still has some problems:1.The scale of assets and liabilities is small,and the market share is low;2.The proportion of intermediary business is low and the business structure needs to be optimized;3.The increase of various costs is large,and the "cost to income ratio" is high;4.The quality of assets is unstable and the risk of the small loan assets is high;5.It is urgent to improve the innovation ability due to the poor ability of new business development.This paper also finds out the corresponding reasons for these problems,and puts forward the corresponding countermeasures and Suggestions:1.Expand the scale of assets and liabilities,improve market share;2.Optimize the business structure and increase the proportion of intermediary business;3.Strengthen asset quality control and prevent credit risks;4.Control costs and expenses and reduce the cost to income ratio;5.Optimize human resources and improve the bank's ability to develop innovation.The research conclusion of this paper is conducive to improving the profitability of LC Banks,and has reference significance for other commercial Banks to improve their profitability.