Profitability Assessment Of Webank

With the rapid development of the economy,the private economy plays an important role in the national economy.Since the promulgation of the "National Ten Articles of Finance" in 2013,China has liberalized the establishment of private banks,all of which were initiated by private capital,to achieve the normal establishment of private banks.As of the end of 2019,there have been 17 formal openings.These 17 private banks have Internet background.With the help of shareholders 'traffic resources and clear positioning,they have entered the“ fast track ”for development,such as WeBank.However,the development of other traditional private banks is passive,and there is a clear trend of industry differentiation.What exactly is the future development of private banks and where is their core competitiveness? There is currently little research in the academic world.The author selects Shenzhen Qianhai WeBank,an innovative operation in China's private banks and outstanding profitability under the background of the new era,as the case study object,starting from the short-term and long-term profitability of WeBank.First of all,we will analyze the short-term profitability of WeBank.It mainly uses the DuPont analysis method appropriately adjusted in accordance with the characteristics of commercial banks.Based on the key financial indicators in 2017,it will take a look at WeBank's 2018 revenue structure,operating expenses,income tax and The financial leverage and other financial indicators are factored and calculated.After a systematic analysis,it is concluded that the continuous improvement of the short-term profitability of WeBank not only depends on the traditional interest business income,but also the innovative development of its intermediate business is also very prominent.Combined with other perspectives such as the sustainable development and growth of WeBank,we explore the long-term profitability of WeBank.Among them,WeBank's technological innovation,product innovation,blue ocean market,and cooperative thinking are all potential forces for WeBank's long-term sustainable profit.As WeBank and MYBank opened at the same stage and had similar development backgrounds,they conducted a horizontal comparative analysis of related financial indicators of Wenzhou MYBank and WeBank to understand the expansion of the assets of the two banks,the development of intermediate business,There are differences in cost control capabilities and risk control management levels.As a result,it was found that WeBank's intermediate business innovation ability is more prominent,and the key factor affecting its profitability is its ability to control operating costs.Finally,from the four dimensions and perspectives of the shareholder background,financial management performance,corporate culture,and development concept of private banks,the author proposes to make full use of its advantages to enhance the quality of assets,increase risk control,and increase finance for the healthy development of private banks in the future.Product innovation,enhance user experience and regulatory system,and implement personal recommendations and countermeasures for social responsibility and technology-driven development.