Empirical Study On Influencing Factors Of Agricultural Bank Of China's Profit

As a main component of the financial industry,commercial banks play an important role in the development of national economy.At home and abroad,there are a lot of researches,theoretical and empirical,on the topic of the influencing factors of commercial banks' profit.However,study on Agricultural Bank of China's profit is very few.In this paper,the Agricultural Bank of China(ABC)is selected as the main object of study.First of all,this paper shows the trend and present situation of the profit of commercial banks in China and ABC in recent years.By comparing the changes in ABC's market share on assets,total loans,total deposits and net profits,we get to know ABC's market position.Then this paper creates a SWOT analysis on ABC to find out the problems need to be solved and its development direction.Then this paper does theoretical research on the influencing factors of China's commercial banks' profit,internal and external.On the basis of qualitative analysis,we build a model,and select GDP,total loans,total deposits,LDR,net interest margin,non-interest income to total revenue,cost-income ratio and non-performing loans ratio,preparation of coverage as representative indicators and do multiple regression analysis,using the data of the seven chosen commercial banks.Then we find out the main factors influencing China's commercial banks' profits.By comparing ABC's factors value to those of the seven chosen banks' average level,we do further analysis on the cause of ABC's problems in making profits and the operation risk ABC faces.Finally on this basis,combining with working practice,we put forward policy Suggestions on how do ABC raise the level of profit.