A Comparative Analysis Of Commercial Bank’s Profitability Of Our Country

With the reform and opening up nearly forty years, the economy of our country has been developing rapidly. The banking industry has also been reformed for thirty years. There are several monumental changes in these years. First of all, the state-owned banks have been specialized. The second one is the establishment of the shareholding commercial banks. The third one is the reform on the state-owned banks based on marketization. Meantime, various types of banking financial institutions have been founded. Our country’s commercial banks system has been starting to be market-oriented gradually and competing fiercely.After a long period developing, what the present state and profitability of commercial banks in China are the issues we need to further discussion. As we all know, the big commercial banks and listed shareholding commercial banks are the very typical banks in the commercial banking system. So the paper analyzes profitability of them and finds out the reason why the differences exist.The paper selects the annual data of Bank of China, China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China,Bank of Communication,China Citic Bank,Everbright Bank of China, Huaxia Bank,Ping An Bank,China Merchants Bank,Shanghai Pudong Development Bank,Industrial Bank,and China Minsheng Banking Corp.during. from2009to2012. The paper then gives the contrast analysis of performance in profitability from two aspects: the one is descriptive statistics,the other one is factor analysis.Through descriptive statistical analysis and factor analysis, this paper mainly has some conclusions as follow. Big commercial banks are still the principal part of the commercial banking system.They perform very well in many aspects including profitability. But the listed shareholding commercial banks also have a stronger potential growing and play more important roles in the banking system.On the basis of the analysis above, some instructive suggestions about the profitability are provided. Disposing credit resources rationally, strengthening debt and pricing management, establishing management measures of the systemized and comprehensive pattern, making more efforts to improve the structure of income and so on.