Financial Modelling Project Report: Evaluation of Westpac Bank and Australia and New Zealand Bank

Running Head: Financial modelling
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Project Report: Financial modelling

Financial modelling
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Contents
Introduction:.....................................................................................................................3
Company overview:..........................................................................................................3
Average return:.................................................................................................................4
Statistical summary:..........................................................................................................5
Histogram:........................................................................................................................6
Annual return:...................................................................................................................6
T test:................................................................................................................................6
Portfolio performance:......................................................................................................7
Minim variance portfolio:.................................................................................................7
Conclusion and recommendation:....................................................................................8
Appendix:.........................................................................................................................9

Financial modelling
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Introduction:
Evaluation on an organization and its financial performance is one of the most
common analysis methods. It measures that whether the company would be a better option in
terms of the investment or not. Though, some of the analyst found that it is not a good basis
to predict the future performance of the business. The stock price of a business could be
fluctuated because of various factors. It must be measured and maintained by the analyst that
whether any abnormal event has taken place in the business and how much it affected the
stock price of the business.
In the case, the study has been done on two New Zealand companies to measure that
whether these companies are at better position in terms of investment in their stock. In order
to reach over a conclusion about their invetsmnt position, the average return, average annual
return, portfolio performance etc. In the report, Westpac bank and Australia and New Zealand
bank has been taken into the concern to measure the overall performance of the companies
and the better stock in terms of investment.
Company overview:
Westpac bank:
Westpac bank is an Australian and New Zealand bank which provides the financial
services at global level. The company is operating its services at worldwide. The company is
in the top 4 banks of the Australian market. According to current report, the company has 14
million customers along with the 40,000 employees who are serving the customers of the
bank at their best. The main product of the company includes finance and insurance,
corporate banking, investment banking, private equity, mortgages, global wealth management
etc. The company is operating its business from last 36 years in the Australian and New
Zealand market. The stock price of the company and the financial performance of the
company are also depicting about a huge room for growth.
Australia and New Zealand bank:

Financial modelling
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Australia and New Zealand bank is an Australian and New Zealand bank which is
commonly known as ANZ. The bank provides the various types of financial services at
global level. The company is offering its services at various countries. The bank if the largest
bank in the New Zealand market. The company is in the top 4 banks of the Australian market.
According to current report, the company has its operations in 34 countries along with the
50,152 employees who are serving the customers of the bank at their best. The main product
of the company includes finance and insurance, corporate banking, investment banking,
private equity, mortgages, global wealth management etc. The company is operating its
business from last 183 years in the Australian and New Zealand market. The financial
position and stock market position of the business is quite impressive.
Average return:
The stock price of both the stock has been collected from last 3 years in order to
measure that how much changes and fluctuations have occurred into the stock price of both
the companies. In order to measure the changes and total improvements in the stock price of
the company, the return of each of the stock has been measured. The stock price of present
day has been compared with the previous day and it has been measured that how much
changes have occurred into the stock price of the company.
In case of Westpac bank, it has been found that the stock price of the company was $
17.6 on the date of 6/10/2015 which has been fluctuated to $ 19.25 on the date of 5th Oct
2018. It explains that the various ups and downs have occurred into the stock price of the
business but overall, the positive changes have taken place into the stock of the company.
Further, the study has been done on ANZ stock.
Through the stock price of ANZ, it has been found that the fluctuations level in the
company is quite higher. The stock price of the company has been fluctuated at daily basis
with a great number. On the date of 6th Oct 2015, the stock price of the company was 23.14
which have been improved to $ 27.49 on 5th Oct 2018. It explains that various ups and downs
have occurred into the stock price of the business but overall, the positive changes have taken
place into the stock of the company.