BFF5050
Executive summary
Westpac as the oldest financial institution in Australia operate their business widely. The company expands their core markets of Australia, New Zealand and Pacific around them, where provide a wide range of products and services that meet the needs of customers. Until now, the number of customer members arrived at 12 million customers. It is clear that Westpac would increase the position in financial market.
Table of Content
Executive summary 1
1. History 3
1.1 Acquisitions and merges 4
2. Products and Services 5
2.1 Personal products and services 5
2.2 Business Products and Services 5
2.3 Corporate Products and Services 6
3. Current State of Westpac 6
3.1 Financial Condition of Westpac 7
3.2 Performance on Balance Sheets of other two Banks and the Comparison 8
4. Performance of the Bank 10
4.1 Liquidity 10
4.1.1 Loan-to-Deposit ratio (LTD) 10
4.1.2 Cash per Share 11
4.1.3 Tier One Capital Ratio (or CET1) 12
4.2 Profitability 13
4.2.1 Return on Equity (ROE) 13
4.2.2 Net Interest Margin (NIM) 14
4.2.3 Earing per Share (EPS) 15
4.2.4 Dividend & Dividends Yield 16
4.3 Future Expectation of WBC 18
5. Impacts and Responses of Westpac in Global Financial Crisis 19
5.1. The Impacts on Westpac 19
5.1.1. Liquidity Crisis 19
5.1.2. International Capital Flows and Currency Crisis 20
5.1.3. Low Deposits Investment 20
5.2. Response of Westpac During GFC 20
5.2.1. Reducing Interest Rate 20
5.2.2. Merger with St. George Bank Limited 21
5.2.3. Cutting Fee Across Variety Cards 21
5.2.4. Other Ways 21
6. Conclusion 22
Reference List 23
1. History
The first bank of Australia is Westpac Banking Corporation, which was established in 1817. Westpac acts as the oldest bank in Australia, located its’ head office in Sydney. It was called Bank of New South Wales at first, and then the name was changed with the acquisition of Commercial Bank of Australia in 1982 (Westpac, n.d.).
During the time of first acquisition, Westpac went through a tough period with the
Westpac as the oldest financial institution in Australia operate their business widely. The company expands their core markets of Australia, New Zealand and Pacific around them, where provide a wide range of products and services that meet the needs of customers. Until now, the number of customer members arrived at 12 million customers. It is clear that Westpac would increase the position in financial market.
Table of Content
Executive summary 1
1. History 3
1.1 Acquisitions and merges 4
2. Products and Services 5
2.1 Personal products and services 5
2.2 Business Products and Services 5
2.3 Corporate Products and Services 6
3. Current State of Westpac 6
3.1 Financial Condition of Westpac 7
3.2 Performance on Balance Sheets of other two Banks and the Comparison 8
4. Performance of the Bank 10
4.1 Liquidity 10
4.1.1 Loan-to-Deposit ratio (LTD) 10
4.1.2 Cash per Share 11
4.1.3 Tier One Capital Ratio (or CET1) 12
4.2 Profitability 13
4.2.1 Return on Equity (ROE) 13
4.2.2 Net Interest Margin (NIM) 14
4.2.3 Earing per Share (EPS) 15
4.2.4 Dividend & Dividends Yield 16
4.3 Future Expectation of WBC 18
5. Impacts and Responses of Westpac in Global Financial Crisis 19
5.1. The Impacts on Westpac 19
5.1.1. Liquidity Crisis 19
5.1.2. International Capital Flows and Currency Crisis 20
5.1.3. Low Deposits Investment 20
5.2. Response of Westpac During GFC 20
5.2.1. Reducing Interest Rate 20
5.2.2. Merger with St. George Bank Limited 21
5.2.3. Cutting Fee Across Variety Cards 21
5.2.4. Other Ways 21
6. Conclusion 22
Reference List 23
1. History
The first bank of Australia is Westpac Banking Corporation, which was established in 1817. Westpac acts as the oldest bank in Australia, located its’ head office in Sydney. It was called Bank of New South Wales at first, and then the name was changed with the acquisition of Commercial Bank of Australia in 1982 (Westpac, n.d.).
During the time of first acquisition, Westpac went through a tough period with the