Financial Analysis of National Australian Bank and Australian New Zealand Bank

Running Head: MANAGEMENT ACCOUNTING
1
MANAGEMENT ACCOUNTING

Running Head: MANAGEMENT ACCOUNTING
2
Table of Contents
Part 1................................................................................................................................................3
Part 2................................................................................................................................................3
Part 3................................................................................................................................................4
References........................................................................................................................................5

Running Head: MANAGEMENT ACCOUNTING
3
Financial analysis is the analysis that is sued by the company to take an overall understanding of
how well the company is performing and what are the key areas which can be helpful in deciding
what steps shall be taken by the company to improve the performance. In this scenario the ratio
analysis has been taken for National Australian Bank and Australian New Zealand bank to get an
overall understanding of profitability an liquidity position of the company.
Part 1
The net profit ratio of NAB bank was 19.06% in the financial year 2017 and the same has been
19.36% in case of 2018. ANZ bank on the other hand is the bank which is gaining the net profit
at 21.16% and saw a decline in terms of the previous year, yet it is stronger than NAB bank. In
terms of the return on equity, ANZ bank again takes lead with a slight margin at 10.80% in the
year 2018, whereas NAB is at 10.49% (NAB, 2018). The profitability is mainly of the interest of
the investors and the shareholders and therefore from the point of view of the investor the right
bank to select would be ANZ bank as it is providing more returns to the shareholders (ANZ
bank, 2018).
NAB ANZ BANK NAB ANZ BANK
Profitability 2017 2018 2017 2018 2017 2018 2017 2018
Net Profit
Net
income
4975 5219 6421 6416 19.06
%
19.36
%
22.05
%
21.16
%
Net sales 2610
1
2695
5
2912
0
3032
7
Return on
Equity
Net
income
4975 5219 6421 6416 10.24
%
10.49
%
10.87
%
10.80
%
Net
Equity
4860
1
4974
2
5907
5
5938
3