Financial Analysis of ANZ Bank

Running head: ACCOUNTS AND FINANCE
Accounting and Finance
Name of the Student:
Name of the University:
Author’s Note:

1ANZ BANK
Executive Summary
The aim of the assignment is to conduct a financial analysis on the Australia and New Zealand
Banking Group Limited and asses the financial position of the company. The financial position
of the company was evaluated with the help of the ratio analysis and the relevant financial
analysis of the company with respect to the debt position on the company was also assessed. The
required rate of return for the company was also evaluated with the application of the CAPM
model and the cost of capital for the company was evaluated with the capital structure of the
company. The financial analysis of the ANZ Company was evaluated with the help of the ratio
analysis for the comp0any and relevant ratios were included to assess the financial performance
and the financial position of the company. The integrity and accountability of the ANZ Bank and
the recent issues occurred in the Bank were discussed and the relevant actions taken by the bank
to mitigate the same were analyzed in the assignment.

2ANZ BANK
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
ANZ Current Capital Structure....................................................................................................3
Weighted Average Cost of Capital..............................................................................................4
Capital Asset Pricing Model........................................................................................................5
Capital Structure Analysis...........................................................................................................5
Ratio Analysis..............................................................................................................................7
Changes of Capital Structure.......................................................................................................8
Integrity & Accountability of ANZ Bank....................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11
Appendix........................................................................................................................................13

3ANZ BANK
Introduction
The Australia and New Zealand Banking Group Limited is one of the key banking group
operating its services in the Australia and provides various kinds of financial products and
services. The capital structure of the company was evaluated by assessing the level of debt in
comparison to the equity of the company. The required rate of return for the stock was evaluated
with the help of the CAPM formula and the same has been applied in determining the weighted
average cost of capital for the firm. The key financial ratio is evaluated for the ANZ Bank was
assessed in order to determine the financial performance. The financing structure of the company
was evaluated with the help of the capital structure of the company and the same was compared
with other key competitors of the company like Westpac Bank (ANZ Bank, 2018).
Discussion
ANZ Current Capital Structure
The current capital structure of the company was composed with the exposure of
company towards debt was around 91% (DeAngelo & Stulz, 2015). This means that around 91%
of the total capital of the company was financed with debt (Appendix 1).
(Source: ANZ Bank, 2019)
91%
9%
Capital Structure of ANZ
Debt
Equity