Preview

Financial Analysis of Anz and Nab

Powerful Essays
Open Document
Open Document
2585 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Analysis of Anz and Nab
|–– |
|[Financial Analysis of ANZ and NAB |
| Group Assignment |

| |
| |
| |
| |
| |
| |
| |
| |
| |

Executive Summary

The group is asked to compare and contrast the financial performance of both ANZ and NAB banks and to come up with a consolidated view of which bank is better from a investor point of view. Price-to-Earnings ratios (P/E), Return on Equity (ROE), Capital Adequacy Ratio, Dividend Yield ratio and Weighted Average Cost of Capital (WACC) were calculated in this report as indicators as they are deemed as the most relevant ratios in this context.

The P/E ratio gives an indication of the number of



References: DAVIS, K. 2010. Bank Capital Adequacy: Where to Now? Australian Centre for Financial Studies. LARSEN, K. 2012. A Primer on Correlation. The Brigus Group. PHAN, P. 2011. Using the price earnings ratio to pick ASX winners and losers. The Motley Fool.

You May Also Find These Documents Helpful

  • Powerful Essays

    Eugene F, F. & Kenneth R, F., 1992. The Cross-Section of Expected Stock Return. The Journal…

    • 2606 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Fastenal Vs Grainger

    • 686 Words
    • 3 Pages

    To know how well a company uses its assets to generate money, the Return on Assets (ROA) ratio or Return on Investments (ROI) is most effective. With a slightly higher ratio of 0.29, Fastenal has the edger over Grainger (0.14). While Earnings per Share ratio is not a reliable ratio to use alone when making decisions because of the different ways earnings can be reported, it gives an idea of what each company is paying per one outstanding stock. This helps indicate profitability. Grainger pulls ahead her with 11.69 vs. Fastenal’s low 1.77. The Price / Earnings ratio works in conjunction with the EPS by telling us how much investors are willing to pay for the stock. Fastenal pulls ahead with $23.60 vs. Grainger’s…

    • 686 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The banking industry is highly competitive. The financial services industry has been around for hundreds of years. Wells Fargo has many competitors itself. In this paper, I will be doing a comparison of Wells Fargo & Company (WFC) and one of its biggest competitors, Bank of America Corporation (BAC). By analyzing looking at the financial ratios, one can see whether the company is successful or not. In the following, I will try to analyze and make a comparison of Wells Fargo’s and Bank of America’s recent performance in growth, income, and efficiency. Using a these criteria, I will determine which bank is the better buy according my analysis. My analysis of WFC & BAC’s performances will include a discussion of……

    • 2672 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    In Robinson’s poem “Miniver Cheevy”, the main character, Miniver Cheevy, is someone with the hope of achieving the American Dream. Possibly living in a different time period, Miniver Cheevy did not achieve this dream and has given up trying to reach for it. The American Dream represents the goal that Miniver Cheevy should aspire for‒a family, fame, and fortune. As Robinson writes, “Miniver sighed for what was not, and dreamed, and rested from his labors….Miniver scorned the gold he sought, But sore annoyed was he without it.” The character is distraught about what his life would have been, and now he drinks his life and troubling thoughts away, complaining about the things he does not have. The American Dream may not always appeal to everyone.…

    • 362 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Financial Analysis

    • 348 Words
    • 2 Pages

    X-Ray machine – Capital Lease – Useful life is 15 years; Option of buying the equipment at a bargain price later…

    • 348 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Financial Analysis

    • 1518 Words
    • 5 Pages

    According to the NPV analysis, if the predicted cash flow is correct, opening the sixth restaurant could bring limited profit to the company. From where the investors sit, Lisa and Mark might reject the project. They could compare with other investment opportunities by NPV method. Meanwhile sensitivity analysis would be used for offering more information to explain the project. Due to the different data in year 1 and the rest of years, I separated the sensitivity calculation in to two parts for getting accurate change in NPV.…

    • 1518 Words
    • 5 Pages
    Powerful Essays
  • Best Essays

    This business report aims to investigate the market share held by the 4 major banks in the Australian banking industry, and the competition that exists within the banking industry.…

    • 3446 Words
    • 14 Pages
    Best Essays
  • Good Essays

    Westpac/Nab Comparison

    • 452 Words
    • 2 Pages

    WBC has a higher Average ROE of 17.93% compared to NAB’s Average ROE of 16.03% during the 5 year duration period from 2003-2007. This is due to WBC’s ROA of 1.09% being higher than NAB’s ROA of 1.05%. While profitability of WBC is higher than NAB’s, NAB’s financial leverage was greater than WBC’s thus producing a higher ROE. NAB also has a higher Net Income compared to WBC. WBC has a higher Average Expense Multiplier of 16.42 compared to NAB of 15.31 as WBC has lower operating expenses and lower assets compared to NAB.…

    • 452 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    The primary purpose of this report is to determine whether Woolworths Limited is an appropriate and profitable company to invest in. Specific objectives include analysis of annual reports of Woolworths and its competitors (Wesfarmers) as well as interpretation of relevant government and industry statistics, stock exchange, market information and media comments. Further, Woolworths’s financial strengths and weaknesses are identified. The potential growth prospects for Woolworths, the future of the food and staples retailing industry, and the risks versus the benefits of investing in Woolworths are all considered to determine whether Woolworths is profitable for potential investors.…

    • 3172 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    What is the relationship of organizational structure, control and culture? When would a company decide to change from a functional to a multidivisional structure?…

    • 594 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Graphite Electrodes

    • 252 Words
    • 2 Pages

    Isostatic Graphite: | | | | [pic] |[pic] | |Product Name:Isostatic Graphite | | | | | | | | | | | | | | | | | | | | | | | |Product Detail…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Ubl Research Project

    • 7091 Words
    • 29 Pages

    Topic chosen and its context For the submission of the BSc honors degree in applied accounting, I have chosen to complete my research and analysis project by analyzing the financial position of United Bank Limited (UBL) as compared to its competitors MCB Bank limited (MCB) and Habib Bank Limited (HBL). This analysis will be conducted on their consolidated financial statements for 2007. In order to carry this out, I will intently analyze the balance sheet and profit and loss statements of the three banks. I will be evaluating UBL’s current position as well as its growth over the past year in comparison to MCB and HBL. United Bank Limited is a privately owned company operating in one of the most profitable industries in Pakistan. It became private in 2002 and has shown remarkable growth since, making valiant efforts to continue this trend. It has more than 1000 branches and operates in 6 countries offering a variety of products to its customers. Reason for choosing the topic This topic sparked an interest in me largely due to the fact that I am currently employed by UBL in their budgeting, planning and MIS department. One of the functions of this department is to carry out a benchmarking analysis on a quarterly and annually basis. The results of the analysis are then viewed analytically in order for initiatives to be taken and decisions to be made by higher…

    • 7091 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Financial Analysis

    • 1042 Words
    • 5 Pages

    * Capital structure describes how a company has organized its capital—how it obtains the financial resources with which it operates its business.…

    • 1042 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Veer

    • 862 Words
    • 4 Pages

    |[pic] | |[pic] |[pic] | | | | |About the Dept. | | |[pic] | | | | | | | | || | | | | | | | | |All Acts | | |[pic]…

    • 862 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    It measures the amount of a bank’s capital relative to the amount of its risk weighted credit exposures. Capital adequacy is used to determine whether a bank has enough capital to support the risk on its balance sheet i.e. it is used to mitigate bank solvency problem. A bank with a strong capital adequacy is also able to absorb possible loan losses and thus avoids bank run, insolvency and failure. Higher capital reduces bank risk and creates a buffer against losses, it makes funding with non-insured debt less information sensitive (Admati et al., 2010). Capital level is also used by most regulators to restrict credit…

    • 1675 Words
    • 7 Pages
    Powerful Essays