Analysis Of Profitability Of Small And Medium-sized Joint - Stock Commercial Bank In China

Improving commercial profitability can help banks maintain the safety and the liquidity, and it is one of the keys to improve the level of the commercial banks'competitiveness. The most representative of the joint-stock banks is to enhance the profitability in the scale expansion process, it is a more comprehensive reflection of the results of our financial system. To make recommendations for commercial banks based on the seven joint-stock commercial banks profitability indicators of horizontal and vertical analysis is to explore the development of clear road, find earnings profitability model of strong bank and reference on the profitability problems in weak banks. To bring reference about facilitating their choice for their profit model for establishing a regional financial center and further pushing forward financial reforms.This article includes five parts.The first part is an introduction, illustrating the research purpose, significance, research methods and thesis framework and, literature review.The second part is the development history of small and medium sized joint-stock banks and financial system. It is development objective to make more contributions to the local economic development and to explore ways for financial reform in China for joint-stock banks. It has done a lot of innovations in the ownership structure, management mechanism, together with the vast number of small and medium enterprises growth. It introduces the development history about the seven small and medium sized joint-stock banks, including China Merchants Bank, China Citic Bank, Shenzhen Development Bank, Industrial and Commercial Bank of China, Shanghai Pudong Development Bank; Hua Xia Bank, China Minsheng Bank.The third part is profitability index analysis of small and medium sized joint-stock commercial banks. It selects eight overall and sub-analysis about three consecutive years of data to determine profitability indexes of the seven joint-stock commercial banks and a state-owned commercial bank. It reflects their earnings ability and development capability in which stock market environment is more comprehensive. By analyzing the overall performance indicator it obtained five conclusions. Note the leaders and laggards in seven joint-stock commercial banks.The fourth part is the primary profit mode of joint-stock bank. It describes five categories of operating characteristics and profitability of business growth, including wholesale banking, retail banking, private banking, Intermediary business and mixed business Banking. It points out that the strong profitability of leading banks and its unique profit model to be learned from their experience, analyzing the problems and making recommendations of laggard banks.The fifth part is the profit model of small joint-stock banks and the development path chosen in the times of the financial crisis. China's banking industry is facing three challenges:Improving profitability, comprehensive risk management and capital adequacy management. We must also see new opportunities, including optimizing and upgrading industrial structure, the proportion of consumption in the economy improvement, more mature domestic financial environment, such as conducive to the development of the banking sector. Commercial banks are required to meet the challenges, seize the opportunity to explore a clear development path and choose their own profit model, to enhance the comparative advantage, and realize sustainable development.