logo

Analysis of the Australia and New Zealand Banking Group

   

Added on  2021-06-14

16 Pages3987 Words17 Views
ANZFINA6017 T1 2018NAME: STUDENT ID:

Student name – IDFINA6017 T1 2018Assignment – ANZExecutive SummaryThe report contains an overall analysis of the Australia and New Zealand Banking Group. ANZ isthe largest banking group which is listed in top 100 banks of Australia. The bank provides variousfinancial services and products such as bank overdrafts, insurance services, credit card facility,financial advices and solutions. The first part provides a brief introduction about the business andbackground of ANZ. The second part deals with the company analysis which includes current financial performance andeconomic outlook of the bank. As per the research for the economic outlook, it is observed that inthe coming years, economy will enjoy a wide growth and also a fall will be there in theunemployment level of the country. It will show positive trends and there will be a positive growthof the banking group. The financial performance of the banking group reported in last year wascommendable. The bank has provided high returns to its shareholders and has also reduced it’s cost.This has boosted up its cost to income ratio at 50.7% from 46.1% in the last year. Along with this,its liquidity position has also increased from 126% to 135% in accordance with a rise in EPS at237.1 cents. Overall, it is observed that group’s financial performance has improved in the last year.Ratio analysis is done in the third part which includes the calculation of all the ratios that measurethe profitability, liquidity, efficiency and solvency of the firm over the past two years. The analysisreflected that the bank has increased profitability and market value ratio. Also the ratios calculatedfor determining the efficiency of the bank shows that ANZ’s capability of generating revenue fromits assets has increased over the years. The final part of the report provides overall recommendation and conclusion of the analysis thatincludes the findings of the report. The findings suggested that the overall financial performance ofthe group has increased in 2017 and it is expected that the bank will have a positive economicchanges in future. 1

Student name – IDFINA6017 T1 2018Assignment – ANZContentsPage Number1Introduction21.1Background and Business2Company Analysis2.1Analysis of financial statements of the businessCurrent Financial performance, economic outlook3Ratio Analysis3.1Profitability ratios3.2Efficiency ratios3.3Liquidity ratios3.4Gearing ratios4Recommendations and overall assessment5References/BibliographyAppendices – attached Excel Spreadsheet 2

Student name – IDFINA6017 T1 2018Assignment – ANZ1Introduction1.1Background and BusinessAustralia and New Zealand Banking Group Ltd is the largest company in Australia and NewZealand. It is the major international banking group listed in top 100 banks of the world. ANZstarted its business in 1830s and its headquarters are located in Melbourne. In 1835, ANZcommenced its business in London when The Bank of Australasia was established. Later in 1970,the bank got merged with the English, Scottish and Australian Bank in order to form an organizationwhich is now named as Australia and New Zealand Banking Group Ltd. This is usually consideredas the largest merger in the banking industry of Australia (ANZ.com. 2018).Being the largest group, it serves over 5 million customers and have assets worth AUD$ 247 billion.More than 28,000 people are employed in the primary markets of Australia and New Zealand,United States, UK and Asia Pacific. ANZ is counted in the list of 10 largest companies in Australiahaving a price of AUD $27.91 per share (Reuters.com. 2018). ANZ key business is to providebanking products and services to every type of customer whether individual, corporate or ruralcustomers. The company also deals in accepting term deposits, current and savings account, foreigncurrency accounts and many more. Services offered by ANZ include personal and business loans,credit cards, financing solutions, overdrafts, mortgages, insurance services and products, financialadvisory and other banking services. ANZ is listed on ASX and is traded with a ticker symbol of ASX: ANZ. It has the largest marketcapitalization and is a dominator in retail and commercial banking business. The CEO of the groupis Shayne Elliott and the chairman is David Gonski. The company is operating well and is focusedtowards future growth (Bloomberg.com. 2018).2Company Analysis3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Analysis of ANZ and Commonwealth Bank
|8
|1434
|59

Finance for Business Assignment - ANZ V COMMENWEALTH Bank
|11
|2104
|67

Business Accounting: Summary
|10
|1988
|26

Financial Management: Analysis of Commonwealth Bank of Australia
|18
|4171
|37

(PDF) An Assignment on Ratio Analysis
|20
|4434
|60

Principles of Financial Markets: Report
|16
|3891
|42