Accounting for Business: Analysis of Financial Standing of National Australian Bank

Running head: ACCOUNTING FOR BUSINESS
Accounting for Business
University Name
Student Name
Authors’ Note

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ACCOUNTING FOR BUSINESS
Executive Summary
The study at hand intends to present financial standing of the firm by means of thorough
comparative analysis of profitability, investigation of financial assertions of the firm and
analysis of financial position from balance sheet statement. Moving further, this study
presents analysis of key ratio of three financial years that can aid understanding financial
health as well as soundness of organizational position. In the end, based on report announced
by the firm, this current study discusses in detail about the way management works for the
best interest of the entire corporation.

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ACCOUNTING FOR BUSINESS
Table of Contents
Introduction................................................................................................................................3
Section 1:....................................................................................................................................3
Section 2:..................................................................................................................................11
Section 3:..................................................................................................................................13
Conclusion................................................................................................................................17
References................................................................................................................................19

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ACCOUNTING FOR BUSINESS
Introduction
For the purpose of the current study on analysis of organizational performance of the
company National Australian Bank (NAB) is selected. NAB is a Melbourne based Australian
bank that is necessarily a different financial services group, conventionally focussed on
banking business with presence in segment of wealth. In essence, National Australia Bank is
presently the third largest bank in terms of market capitalisation as well as benefits from a
huge national branch network and enhancing market share in both home loans as well as
retail deposits.
Section 1:
Evaluation of financial standing of the allocated company National Australian Bank
(NAB)
Analysis of profitability of the company
Profitability of the company National Australia Bank (NAB) can be analysed from the
income statement of the firm. The total interest income of the corporation is recorded to be
$27403 million in the year 2017 whereas the same was recorded to be $27629 in the year
2016 (Nab.com.au 2018). This reflects a decrease in the interest income of the firm. Again,
interest expense of the firm is said to have increased to $14699 million in 2017 in comparison
to $14221 million in 2016. Therefore, decrease in interest income along with the increase in
the interest expense of the firm reflects an overall decrease in the net interest income acquired
by the firm (Rakićević et al. 2016). The net interest income of the firm is registered to be
$13182 million in 2017 while the same is recorded to be $12930 million in the year 2016.