Corporate Finance Analysis of AMP, Westpac, and National Australian Bank in the Banking Industry

Corporate finance
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Corporate finance 1
Abstract
The purpose of the report is to form a suitable understanding that helps in analysing the three
public companies which are registered in the ASX. The three companies that have been selected
for the analysis include the banks AMP, Westpac, National Australian Bank and all these
companies perform their business operations in the banking industry. The report majorly
includes the dealing with the analysis of the liability and equity, cash flows within the company,
comprehensive income statement and the corporate tax of the public listed companies. This
report will further analyse the annual reports of the company thoroughly. Further, this has been
found that these companies are effectively maintaining the maximum leverage ratios.

Corporate finance 2
Contents
Abstract............................................................................................................................................1
Introduction......................................................................................................................................3
Equity & Liabilities.........................................................................................................................4
AMP bank....................................................................................................................................4
(NAB) National Australian Bank................................................................................................6
Westpac bank...............................................................................................................................8
Comparison of the debt-equity ratio..............................................................................................11
Statements of cash flow.................................................................................................................12
Cash flow: Operating activities.................................................................................................12
Cash flow: Investing activities...................................................................................................13
Cash flow: Financing Activities................................................................................................13
Comprehensive profit and loss......................................................................................................15
NAB (National Australian Bank)..............................................................................................15
AMP bank..................................................................................................................................17
Westpac bank.............................................................................................................................18
Corporate income tax.....................................................................................................................19
Calculation of cash tax rate........................................................................................................21
Conclusion.....................................................................................................................................22
References......................................................................................................................................23

Corporate finance 3
Introduction
The importance of the financial information of the company is increased because of the
increasing business difficulties. Annual report of the company work as the medium through
which they can communicate with its stakeholders as this can affect the decisions taken by the
companies in the direct or indirect manner. The financial reports assist the organisation to
evaluate their financial health. In the report, the financial performance of the organisation is
measured with the support of solvency, profitability, liquidity and the market value of the
company. Along with this, the non-financial performance of the company is evaluated with the
help of the CSR and sustainability reporting.
This report reflects the results out of a study of the 3 diverse companies that fall under the same
industry that is banking and are listed in the ASX. It also includes the exploration of the different
components or elements of the financial statement of the three major banking companies which
include AMP, Westpac and NAB. The major component on which the report throws the light is
the equity and liability with its sub-components. In the second section, the report analyses and
conducts the comparison of a company’s cash flow statement. Thus, the report will include a
detailed explanation of the vital components of the profit and loss statement. In addition, in the
end, the analysis related to the corporate tax of the three banks has been done. The analysis of
these components has been done which majorly include liabilities, equity, comprehensive
income, corporate tax and the analysis of the cash flows. This analysis of the components helps
the stakeholders to make the decisions for the investment.

Corporate finance 4
Equity & Liabilities
This section includes the analysis of the equity and liabilities of the three selected banks that are
performing their business operations (Pilbeam, 2018).
AMP bank
(Source: AMP bank, 2016)

Corporate finance 5
(Source: AMP bank, 2016)
The glimpse of the AMP annual report of the company, this has been found that AMP has
decreased its proportion of equity which is possible by selling the shared to another or due to any
of the financial crisis. The equity of the company is showing a decrease in the year 2017 with
7,283 which was actually 7,541 in the year 2016 due to which the contribute equity reflected a
change (Westpac, 2016). The reserves and retained equity of the company remain negative in
this case. Thus, this can be said that the total equity of the company has decreased as it was 7,541
in 2016 and 8,895 in the year 2015.
This has been found that as far as the comparative analysis of the liabilities of the company is
concerned. It has been seen clearly that the liabilities of the company has numerous sub-parts