Listed Commercial Bank’s Profitability Analysis Of China

In recent years,with the deepening impact of the subprime mortgage crisis and the European debt crisis continued,Interest rate marketization and the deepening of financial regulation,economic growth of China is slowing down,Facing the reality of such a severe financial situation and the economic downturn,As an important leading our country banking tasks listed commercial banks in China, Chinese listed commercial bank can size up the situation,through financial environment and accurate judgment adjust the business development strategy by actively,to adjust business development strategy actively and solve the various problems in the current,constantly improve and optimize the structure of corporate governance,sustainable profitable growth,,thereby enhancing the international competitiveness and international influence, which is a practical significance and worthy problem to in-depth study.Firstly,the text introduced the profitability of commercial banks,and analysis of the existing profitability related to the theory of bank crisis theory,scale economy theory,financial innovation theory,industrial organization theory. Then it elaborates the profit situation of listed bank in China,and summarizes the problems existing in the profitability of listed commercial bank in China. Finally,it analyzes the factors that affect the profitability of listed bank in China. On this basis by eviews6.0 software,using the method of empirical panel data model,and makes the empirical analysis on the data from a sample of 2007-2014 years of China and 16 listed commercial banks. The empirical results show that capital adequacy ratio,non interest income,and loan to deposit ratio have a significant positive correlation to the profitability of banks,non-performing loan ratio,cost to income and GDP have significant negative correlation to the profitability of banks,external factors in the market share and CPI have no significant positive correlation to the profitability of banks. The empirical results show that: the expansion of non interest income in operating income ratios will be a new growth point is to enhance the profitability of Chinese listed commercial banks;at the same time, increased the cost to income is also one of the effective ways to improve the profitability;improve the quality of the assets and expand market share is favorable to ensure the stable development of listed banks in China;in addition,a good economic environment is the basic premise to improve listed banks profitability of China;finally,according to empirical conclusions,put forward related countermeasures and suggestions to enhance profitability of commercial bank, including the development of intermediate business,vigorously improve the loan to deposit ratio,reduce unnecessary the cost and so on. I hope it could provide some valuable reference value to the relevant departments.