| With the continuous improvement of the commodification of interest rates in China,the revenues of th e bank’s traditional activities have decreased,and the difficulty of the bank’s insufficient profitability is grad ually being highlighted;On the other hand,the liberalization of interest rates continues to promote financial disintermediation and the financial intermediation function of Banks is seriously affected.The emergence of non-interest income,on the one hand,as an important component of bank income,improves the structure of bank income,its profitability and its ability to withstand risk.On the other hand,non-interest transaction s increase customer engagement and make Banks more competitive with other financial institutions.By exa mining the overall and structural impact of non-interest income on the profitability of Minsheng Bank,this paper can improve the income structure of Minsheng Bank and improve its operating performance,so as t o achieve the purpose of improving its profitability.This paper first examines the current situation of non-interest income and profitability levels of Minsh eng Bank through a comparative analysis,and on the basis of this analysis examines possible problems of n on-interest income and profitability of Minsheng Bank.Secondly,we examine the overall impact of non-int erest income on the profitability of Minsheng Bank in terms of its share and diversification.The structural e ffects of non-interest income on profitability are then examined in terms of the non-interest income structur e and the commission structure.Finally,based on the previous analysis and from four angles,we formulate targeted recommendations for the development of non-interest operations and the improvement of the profit ability of Minsheng Bank.The research results are listed below:(1)Minsheng Bank has a more unified non-interest income,less innovative level than in recent years,which continuously decreases in comparison with interest income and develops slower or even slower;Profitability growth slowed down,net profit became more volatile.(2)Ex amine the overall impact of non-interest income on the profitability of Minsheng Bank in terms of the share of non-interest income and the diversification of non-interest income.The empirical analysis revealed that the non-interest income share had a significant positive effect on Minsheng Bank’s profitability;The degree of diversification of non-interest income also had a significant positive effect on the Minsheng Bank’s profi tability.In other words,greater diversification of non-interest income has promoted the Minsheng Bank’s pr ofitability.(3)By analyzing the impact of non-interest income structures on Minsheng Bank,it is found that the internal components of non-interest income have different impacts on Minsheng Bank’s profitability.Fe es and commissions are used to improve its profitability,but investment income has a significant adverse ef fect on its profitability.Because of the small proportion,exchange income and other non-interest income ha ve a positive effect on its earnings,but not obvious.Then,the principal component analysis method was use d to explore the impact of Minsheng Bank’s internal business non-interest income,which accounts for more than 70% of fee and commission income,on Minsheng Bank’s profitability.It was found that the six major businesses dealing with fees and commissions have a positive effect on profitability.However,compared wi th bank card income,custody business,credit commitment business and settlement business play a stronger role in promoting the profitability of Minsheng Bank.(4)Finally,the proposed suggestions are proposed fr om the aspects of reasonably increasing the proportion of non-interest income,optimizing the structure of n on-interest income,improving the innovation of non-interest business innovation,and strengthening non-ca re business risk management to better promote the improvement of Minsheng Bank’s profitability. |
