Research On The Profitability Of BR Trust Company Limited

In 2018,the trust industry faced profound changes in the macroeconomic situation and policy environment.The policy orientation has been balanced between multiple objectives and the industry development trend changing.In 2018,the guidance on regulating the asset management business of financial institutions was issued.It marks the initial establishment of a unified financial supervision coordination framework in China.It is of great practical significance to study how to improve the profitability of BR Trust Company Limited in the current environment.Based on the operation of BR Trust Company Limited,this thesis studies the profitability of BR Trust Company Limited.Combined with the guidance of regulatory policies,the research process is conducted through horizontal and vertical comparative analysis.The first step is to choose a measure index of profitability.This thesis divides the profitability index into two types: the quantitative index of profitability and the sustainability index of profitability.Secondly,the vertical and horizontal comparative analysis of BR Trust Company Limited profitability is carried out.In the vertical analysis,the data of BR Trust Company Limited and other 15state-owned enterprises holding trust companies from 2011 to 2018 were sorted out.Then this thesis analyzed the change trend of relevant indicators.When conducting horizontal analysis,the profitability of BR Trust Company Limited in 2018 was positioned through descriptive statistics and ranking of its profitability indexes.Finally,according to the above research,the strengths and weaknesses of BR trust profitability are found.It is found that BR Trust Company Limited has a good trend and rank in the indexes related to active management ability.However,the performance of the quantitative indicators of profitability lags behind the average of the state-owned enterprises holding trust companies.The strengths and weaknesses of profitability are the result of many factors.The homogenized competition in the industry makes the profit margin of trust capital continuously lower.The decline in fees and commissions resulted in a decline in BRTrust Company Limited’s net profit.The small number of employees and the weak wealth management ability of BR Trust Company Limited restricted the scale of BR trust.The increase of litigation cases indicates that BR Trust Company Limited risk management ability needs to be improved.Reasonable business structure is an important reason why the trust return rate of BR Trust Company Limited is higher than the average of the state-owned enterprises holding trust companies.According to the above analysis,suggestions are given for improving the profitability of BR Trust Company Limited.The specific suggestions are as follows:first,improve the risk control system and improve the risk management level;second,adjust the business structure,vigorously develop the service trust,find new profit growth point;third,improve the wealth management ability to provide the source power for profit growth;fourth,increase the number of employees,strengthen the construction of talent team.