A Study On The Profitability Of Guangzhou Commercial Banks Based On The Adjustment Of Business Structure

In the new economic norm in recent years,the macro-economy has greater downward pressure and the economic structure is changing.China's banking industry is suffering from a hitherto unknown challenge.The traditional profit margins continue to shrink.These challenges are mainly due to the interest rate market,internet banking,bad loans rates led by the decline in the quality of credit assets,increased competition in the industry,etc.Especially since 2015,the Central Bank lowered the benchmark deposit and lending rates 5 times,this led to the basic realization of the deposit and loan interest rate market.Banks rely on the traditional profit model of legal spreads has been a real challenge.The consequence is that in 2015 the bank's profit growth fell to single digits.The city commercial banks are important force that can not be ignored.However,from the individual point of view,the scale of city commercial banks is far less than the four largest banks,and the national joint-stock banks,facing fierce competition among the four major banks,national joint-stock banks and foreign banks,crural commercial banks and city commercial banks.So,city commercial banks must continue to improve profitability in order not to be eliminated in the competition.As a member of the city commercial banks,Guangzhou Commercial Bank based on the local,its overall strength is in the forefront of the city commercial bank rankings,with the benchmark role in city commercial banks after 20 years of development.As well as other city commercial banks,it is facing the pressure of competition,business growth,profit space reduced in the new financial norm.There is an urgent need to find better ways to improve profitability.This article put the Guangzhou Commercial Bank as a case study.Many scholars are chosen from the macroscopic Angle of banking to study the bank's profit model,and less people will start from the city commercial Banks and the perspective of a single city firms.As a case study in guangshang bank.According to the interest rate marketization,the competition in the background of the industry in recent years,According to its business structure adjustment in recent years,the author analyzes its profit ability.Through the horizontal comparison between the Guangzhou Commercial Bank and other banks,this article explores the comparative advantages and disadvantages in the competition.By analyzing the factors affecting its profitability,it is concluded that it is ranked in the city business and evaluates its profitability more comprehensively.This paper summarizes the problems in the scale development,cost control,risk control and middle business,and analyzes the causes of these problems.Finally,it provides countermeasures to improve its profitability.The research process can be used as a reference case of how to improve the profitability of commercial banks.Through the case study of Guangzhou Commercial Bank,this article evaluates and summarizes its development by using the method of comparative analysis.The factor analysis method was used to determine the ranking of Guangzhou Commercial Bank in major city firms.To sum up four key factors that affect their profitability,and analyze the relationship between these factors and their profitability.Therefore,it is concluded that,because of the problems in the profitability of guangshang bank,the business adjustment needs to be made to improve its profit competitiveness.I hope that the analysis method and strategy recommendations can play a certain theoretical guidance and reference for other commercial banks to enhance profitability.