Accounting management on: Westpac
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Added on 2021-05-31
Accounting management on: Westpac
Added on 2021-05-31
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MANAGEMENT ACCOUNTING: WESTPACStudents ID:Name of the university:Authors note:
EXECUTIVE SUMMARYWestpac was the first banking institution in Australian that holds a unique position inAustralia. The company has been established in the year 1917 as a part of the Bank of NSW.Westpac in Australia is the first and the oldest bank. Economical and commercialperformance is the most essential element of the Company. However, the organisation’ssuccess is dependent on providing effective service that helps to reduce cost and complicacyassociated with the disaster legacy centre.The performance of Westpac can be defined by two major factors:Incorporating sustainability efforts within the business strategy to expand theperformance by promoting wellbeing within the organisation. However, Westpac hasadmitted that they are responsible for breaching lending obligating while lendinghome loans. For doing so, they have agreed to pay an amount of $35 million civilpenalty to mitigate the issue. It has been found that during the period of 2011 and2015 the banking organisation has approved automated decision of almost 260,000home loans.To protect the interest of the shareholders by complying with the corporate policies ofall the legal requirements within the organisation. Amongst these home loans, anadditional 50,000 loans were approved by the bank using an improper method whileaccessing the consumer’s capability to the pay the home loan. Considering the issues faced by Westpac it is evident that needs to take strict step tomitigate this issue by improving their banking performance. The lenders as well needs toverify the information for ensuring all the information and needs to evaluate the loan whetherit is suitable for the borrowers. Westpac needs to act responsibly while ensuring the chance torepay the loans to the customers.2
I Introduction Westpac has been identified as the leading banking organisation in the global list 100. Ithas been ranked as one of the most sustainable business organisation in terms of performanceand sustainability globally reported by World Economy Forum 2015. In this context, thebanking organisation is engaged in offering banking and financial services to almost 13million consumers. The company employs nearly 36,000 people in Australia. Westpac has a total cash profitof $7,822 million and ROE return of 14.0% (refer to appendix 1). The company has anindustry capitalisation of $95 billion with almost 615,000 shareholders (Westpac 2018).Considering the financial performance of the organisational they maintain a high corporatestrategy. In this aspect the organisation’s strategy is to provide consistent yearly financialproduction:Total profit for the equity holders with $2,818 till 11%Financial revenue of $2874 million till 12%Cash income for each share of 155.3 cents till 12% Cash revenue on the equity value of almost 20.7% with an economic production of17%.The company has a strong capital position a 7.2% and ACE at 5.4%.Therefore, the company’s major objective is to measure the performance of financialtransition for their Australian cooperating Bank. In this context, the report represents theoverall financial objective of the Westpac Company that can be achieved through effectivestrategies of business and processes. Drawing from the objectives and mission of thecompany the report illustrates the performance of Westpac using different metrics. Finally,the report presents the definition of performance in accordance with Westpac.3
II Organisational Evaluation Westpac’s organisational objective is to deliver on the vision of the organisation byestablishing deep and endurable customer relationship by sustaining the leadership within thecommunity and by offering huge returns for their stakeholders. In delivering their businessobjective, the company is focused on the core markets of Australia as well as New Zealand(Mahmoud et al. 2016). In these markets, the company provides a huge range of financialofferings and services that support the financial requirements of the consumers. By strengthening a strong position within the market the company has managed toacquire more than 13 million consumers by focusing on organic expansion and increasing thenumber of consumers. However, the company has achieved the leading position bydeveloping long-term value for its customer’s employees as well as shareholders within thecommunity. This organisational performance has been identified by their long-term interestand confirmation that these terms are in consistency with the efficiency of the resources (Sani& Maharani 2015).Westpac has successfully implemented and adopted all the concepts if organisational,management by measuring its environmental social as well as economic parameters that arepopularly called triple bottom-line report. West Bank Corporation has fulfilled all theseaspects of performance by integrating the concepts of sustainable business. The supply chainsof the company spend a huge amount for the indigenous Australian business with almost $1.2million. Apart from these, there are 67, 122 employees those who had taken part in theWestpac group financial wellbeing program of education. Westpac has investment $1.32billion for providing support for the need of community resilience and for the development ofaffordable housing sector. By doing so, the organisational has helped to enhance the4
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