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Principles of Financial Markets: Report

   

Added on  2020-04-01

16 Pages3891 Words42 Views
Financial Management 1Principles of Financial Markets

Financial Management 2Executive SummaryThis report analyses the financial situation of the Company Common wealth Bank and ANZGroup. Researcher has given brief introduction of the economic factors like GDP and interestrate. Its purpose is to analyze the ratios of both the Companies. The current GDP annual growthrate has been analyzed of Australia that is 1.80% in second (June) quarter of 2017 and projected2.1% for third quarter in 2017. The financial situation of the Companies is analyzed on the basisof liquidity, profitability, efficiency, and capital structure and market performance ratio. It hasalso been analyzed from the report that the Company Common Wealth Bank is more suitable forinvesting by the investors in comparison with the ANZ Company of Australia. Table of Contents

Financial Management 3Introduction......................................................................................................................................4Common Wealth Bank.................................................................................................................4Australia and New Zealand Banking Group................................................................................5Top down Analysis..........................................................................................................................6Current GDP................................................................................................................................6Current Interest rate.....................................................................................................................7Current Value of the $AUSD.......................................................................................................7Current Inflation rate....................................................................................................................7Personal Disposable Income........................................................................................................8Bottom up Analysis.........................................................................................................................8Ratio Analysis..................................................................................................................................9Profitability ratio..........................................................................................................................9Efficiency Ratio.........................................................................................................................10Capital Structure Ratio...............................................................................................................11Market Performance Ratio.........................................................................................................12Comparative Analysis....................................................................................................................13Summary and Recommendations..................................................................................................14References......................................................................................................................................15

Financial Management 4IntroductionCommon Wealth Bank The Common Wealth Bank (CWB) was established in the year 1911 and started its working in1912. It has the authority and permission for general banking business and savings. CWB is thebiggest Australian company that is listed on ASX. As per recent data of 2016, the CWB has astaff of 52000 employees and approximately 800,000 shareholders (Commonwealth Bank,2017). Due to multiple kinds of product offerings, it is quite easy for the CW bank to ensuresustainable business growth in the market. Different kinds of banking products and servicesoffered by this bank are premium banking, retail banking, funds management, institutionalbanking, and business banking and stock broking products/services. There are various strategiesof CWB diversification strategy, branding strategy, and the high scale sales generation strategy.In Banking and Financial sector of Australia, the brand image of Common Wealth Bank is verysound. Different products and services of CWB under retail banking include credit cards, homeloans, personal loan, transaction accounts etc. CWB was the first bank of Australia that hasobtained guarantee from Federal Government of country. CWB started its business from the cityof Melbourne with opening of first branch on 15th July 1912.The mission of CWB is focused to provide customers the superior quality service. It also createsvalue for its customers. It also promotes the stability and economic growth in the community. Italso has core values such as it ensures to the public that it is a great place to work. It alsoprovides opportunities to the Directors and other stakeholders (Commonwealth Bank, 2017). Theoutstanding service is provided to the customers and helps them in achieving financial goals.

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