Study On Profitability Of State-owned Commercial Banks

With the rapid development of financial development,the core competitiveness of commercial banks is more and more focused on profitability,and the relevant theoretical research and conclusions on the core competitiveness of commercial banks are increasing.Under the background of the general decline of banking profitability in China,it is very important to analyze the core competence of state-owned banks in profit.Firstly,it defines the connotation of commercial bank's profitability,reviews the existing literature,and lays the theoretical foundation.Secondly,using the actual data,this paper compares and analyzes the profit level of three kinds of representative banks in Chinese banking: state-owned commercial banks,national joint-stock commercial banks and urban commercial banks.The results show that at present,under the fierce competition of domestic and foreign banks,commercial banks in China are struggling to increase their profit level.Among them,the profit growth of state-owned commercial banks has slowed down,the return rate of shareholders 'equity has been declining,and the rate of non-performing loans has gradually increased.The development of joint-stock commercial banks is uneven,and it is greatly affected by the National monetary policy.The quality of assets has been declining year by year,and the overall profit level has also shown a downward trend.The profitability of the city firm is obviously lower than the industry evaluation profit level,and the decline trend is obvious.Then,on the basis of the basic situation analysis of the bank of China,using DuPont's analysis model,the author evaluates the profitability of the bank of China from the aspects of profitability,sustainability and growth and compares it with other state-owned commercial banks.Finally,the results show that the bank of China shows a downward trend in profitability,sustainability and growth,which is mainly reflected in the consistent decline in the return on net assets and net interest income,the increasing proportion of non-performing loans and the significant decline in net interest income in revenue.At the same time,the profit level of Bank of China is not only in profit acquisition ability,sustainable development ability and future growth space,but also has no obvious competitive advantage over other state-owned banks.Finally,through the reference to the profit model of Benchmark banks and non-financial institutions services industry,corresponding suggestions are put forward for the Bank of China,including: Strengthening the management of bank cost and budget.We will increase the efficiency of cost management,improve deposit and loan services,vigorously develop intermediary services,and strengthen risk management mechanisms.