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The global banking landscape has undergone significant transformations over the past decade, driven by digitalization, regulatory changes, and evolving market dynamics. Within this context, Chinese commercial banks have emerged as key players, reflecting the scale and unique challenges of Chinas economy. This thesis explores the multifaceted factors influencing the profitability of Chinese commercial banks, analyzing internal efficiencies alongside Chinas macroeconomic policies and global financial trends. By conducting a comprehensive analysis, this research identifies both internal (bank-specific) and external (macroeconomic and regulatory) determinants of profitability. It evaluates the impact of digitalization on operational efficiency and profitability, considering state-owned, joint-stock, and local commercial banks. Utilizing the latest annual data from 2013 to 2022, this study employs econometric methods to systematically examine how macroeconomic conditions, bank management efficiency, and external competitive environments affect profitability. The findings of this research are significant for policymakers, bank management, and investors. They provide insights into the complex dynamics that influence bank profitability in China, offering practical recommendations for enhancing profitability and ensuring sustainable growth. This thesis contributes to the scholarly understanding of banking profitability in China and offers valuable guidance for navigating the challenges and opportunities within this dynamic sector.

The global banking landscape has undergone significant transformations over the past decade, driven by digitalization, regulatory changes, and evolving market dynamics. Within this context, Chinese commercial banks have emerged as key players, reflecting the scale and unique challenges of Chinas economy. This thesis explores the multifaceted factors influencing the profitability of Chinese commercial banks, analyzing internal efficiencies alongside Chinas macroeconomic policies and global financial trends. By conducting a comprehensive analysis, this research identifies both internal (bank-specific) and external (macroeconomic and regulatory) determinants of profitability. It evaluates the impact of digitalization on operational efficiency and profitability, considering state-owned, joint-stock, and local commercial banks. Utilizing the latest annual data from 2013 to 2022, this study employs econometric methods to systematically examine how macroeconomic conditions, bank management efficiency, and external competitive environments affect profitability. The findings of this research are significant for policymakers, bank management, and investors. They provide insights into the complex dynamics that influence bank profitability in China, offering practical recommendations for enhancing profitability and ensuring sustainable growth. This thesis contributes to the scholarly understanding of banking profitability in China and offers valuable guidance for navigating the challenges and opportunities within this dynamic sector.