Research On The Profit Quality Of 29 A-shares Listed Commercial Banks In China

In the whole financial system,commercial banks have the longest history of development,the most services,and the greatest impact on the economy of all countries.Compared with the central bank and other banks,the operation of commercial banks is more extensive and comprehensive,and the service field has penetrated into all aspects of society,economy and life.Profit quality refers to the situation of profit formation,profit structure and profit results.Today,with the deepening of supply-side reforms and the continuous increase in social supervision of financial institutions,the vulnerability of commercial banks to risks has been alleviated to a certain extent,but the arrival of the new crown epidemic still has a considerable impact on the asset quality of the banking industry.At the same time,the central bank has introduced a number of financial measures to serve the real economy,continuously targeted and comprehensively reduced the reserve ratio,which makes the development of commercial banks face new pressures and challenges.In commercial banks,profit quality refers to whether the commercial banks have certain profitability,whether the profit structure is scientific and reasonable,whether the profits are guaranteed by security and whether they have the ability of sustainable growth.The profit quality of our country’s commercial banks not only affects the level of their income,but also affects the security and liquidity of our country’s financial market.Through the analysis of bank profit quality,we can reflect the profit level of commercial banks more objectively,and improve the financial status of commercial banks,and provide scientific basis for the decision of bank managers.Therefore,it is of great significance to study the profit quality of listed commercial banks.This paper selects 29 listed commercial banks in 2020 as samples to study the profit quality of listed commercial banks in our country based on factor analysis.First of all,this paper uses theoretical analysis and empirical analysis of the combination of research methods,the development of our commercial banks and commercial bank profit formation and characteristics.Secondly,this paper takes 29 listed commercial banks in our country as research samples,uses factor analysis method to conduct empirical analysis,and evaluates the profit quality of commercial banks.Specifically,this paper constructs the profit quality evaluation index system of commercial banks,tests the data with KMO and Bartlett,establishes the factor rotating load matrix,and analyzes the connotation and empirical results of the factor.Finally,the study concluded that the overall level of profit quality of urban commercial banks is high.Finally,based on the results of theoretical analysis and empirical research,four suggestions are put forward to improve the profit quality of commercial banks,including establishing and improving the profit quality evaluation system,expanding diversified income sources,improving capital adequacy ratio and enhancing risk prevention and control ability.The above research has certain reference significance to enrich the profit quality evaluation of commercial banks.