Research On The Influencing Factors Of The Profitability Of Laos Foreign Trade Volkswagen Bank

Laos Foreign Trade Public Bank is the largest commercial bank in Laos and the first listed commercial bank in Laos.In the context of the growing openness of Laos,the emergence of joint venture banks and private banks,the operation of Laos Foreign Public Bank has faced many challenges.The study of profitability is not only conducive to improving the competitiveness of the Laos Foreign Trade Public Bank,but also has important practical significance for Laos' financial undertakings and economic development.The content of this paper is mainly divided into five parts.The first part combs the writing ideas from the perspectives of research background,significance of the topic,relevant research status,research methods,innovations and deficiencies,and expounds the writing logic of this paper.The second part analyzes the factors affecting the bank's profitability from the perspectives of bank profitability related concepts,business principles and profit model,and constructs a complete analysis framework.The third part studies the operation and profitability of Laos Foreign Public Bank from indicators such as deposit and loan difference,net profit and total return on assets.The results show that the profitability of Laos Foreign Public Bank is gradually stable after listing.The fourth part analyzes the factors affecting the profitability of Laos Foreign Public Bank by qualitative analysis,empirical analysis and DuPont analysis.The research finds that the correlation between bank profitability and asset quality,business income,operational efficiency,economic growth rate and money supply M2 are positive.while bank profitability is negatively correlated with asset size,capital adequacy and liquidity.The fifth part is based on the previous research and draws the conclusion of the study.According to the researchconclusions,it is proposed to strengthen the internal management level of Laos Foreign Trade Public Bank,actively reduce costs,improve risk management and macro financial management capabilities and other countermeasures.This paper argues that the profitability of Laos Foreign Public Bank has not increased with the expansion of scale.The bank's profitability has been affected by asset size,asset quality,capital adequacy,liquidity,business income,operational efficiency,macroeconomic indicators and monetary policy.The impact of factors requires banks to strengthen internal governance,cost management and risk management.At the same time,the government should improve its financial policies and create a favorable environment for the development of commercial banks.