Bank Ratio Analysis Report: NAB and Zurich Comparison

This report presents a comparative analysis of the financial performance of National Australia Bank (NAB) and Zurich Insurance Group, primarily focusing on their balance sheet structures and key financial ratios. The introduction sets the stage for the analysis, followed by Part A which delves into a detailed comparison of the balance sheets of both entities, examining assets (total assets, cash, receivables, derivatives, other financial assets, and property) and liabilities & capital (borrowing, deferred tax liability, bonds, and total equity). The report highlights the differences in asset values, showcasing NAB's larger asset base compared to Zurich. It also compares the levels of cash assets, receivables, and financial assets. Furthermore, the report explores differences in liabilities, including borrowing and bond values, and the impact on equity. Part B discusses the impact of different roles on the structure and performance of the organizations, while Part C focuses on the calculation of financial ratios to measure capital adequacy. The conclusion summarizes the key findings and insights from the analysis. The report uses data from the balance sheets of NAB and Zurich to evaluate their financial positions and market performance.

Bank Ratio Analysis

Table of Contents
INTRODUCTION 100....................................................................................................................3
PART A 700....................................................................................................................................3
Comparison of balance sheet structure between National Australia Bank and Zurich Insurance
Group...........................................................................................................................................3
PART B ...........................................................................................................................................5
PART C............................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
INTRODUCTION...........................................................................................................................1

INTRODUCTION
PART A
Comparison of balance sheet structure between National Australia Bank and Zurich Insurance
Group
Balance sheet is a statement which is formulated for the purpose of provides essential
financial information of organization . This statement is prepared at the end of financial year and
it define value of assets and liabilities which help in recognize financial position of organization
for particular period of time. Balance sheet is useful for compare performance of 2 business
entity for evaluate position within market. By using data of balances sheet of NAB & Zurich
performance of theses organizations are define below:
Assets:
Total assets: This is consider as essential part of balance sheet. It showcase financial
worth of organization. Theses are owned by organization. Worth of assets of NAB was
calculated at 866.57 and on the other side value of total assets in the balance sheet of Zurich
was 400.10. Which means that NAB has more assets as compare with the insurance company.
Which means that net worth of Australian bank on double as compare with insurance company
of UK.
Cash & liquid assets: On the basis of analysing balance sheet of NAB it is evaluate that
NAB use more cash assets in order to fulfil their day to day business transaction. As their value
of cash assets was determiner at 55.20 , which is more then of the cash assets held by Zurich .
Amount of cash assets of this organization was measured at 20.25. This represent that NAB is
able to fulfil their short them liability and business operation by using their cash assets effective
as compare with Zurich.
Receivables: This term is define as debtors account which are not paid their purchase of
products money to company. In case of NAB 1477, worth of debtors are not pay their debt
liability and on the other side in case of Zurich it was measure at 2777, which means that this
organization have large4 number of debtor who are not pay their liability. It showcase that as
compare with NAB , Zurich not able to formulate effective policies for collection of cash from
their receivables.

Derivative: Theses are contract whose value is derived from assets to asst and change on
the basis of performance of organization, theses types of assets use for the purpose of trading.
Derivates useful in managing risk of organization. NAB have 2888 worth of derivatives 161710
Other financial assets: Theses assets are defined as credit products. Theses types of products are
may be secured or unsecured depend on the contract policies. Value of theses asstas in balance
sheet of NAB was 3885, and on the other side value of Zurich 's financial asst was 4230 Which
states that Zurich have more assets as compare with NAB to generate profit by using financial
assets.
Property: It includes fixed asst and land or investment which purchase and own by
organization for the purpose of long term business investment and focusing as business
operations. Worth of property of Nab was evaluated at 148600 and Zurich was valued at
14749, which means that NAB's property is more then of insurance company of UK.
Liabilities & capital: Theses includes sources through which organization able to fulfil
requirement of financial capital. Liabilities are debt for business entity which every organization
need to pay after a specific period of time.
Borrowing: Theses are consider as amount which owned by organization from various
financial institutions. It may includes long term or short term borrowing. Value of borrowing
which NAB take was evaluated at 47628 and on the other side borrowing value of Zurich was
69705, it means that NAB 's management department use effective policies and strategies which
provides them benefits to control their debt liability, thus as-compare with Zurich their
borrowing liability is comparability decline.
Deferred Tax liability: In order to fulfil corporate social responsibility and distribute
profit amount towards government, every organization need to pay tax, which is imposed by
government on the basis of using norms of GAAP. In case of NAB , they need to pay 150 tax
liability for the year and the value of deferred tax is nil on the other side in case of Zurich this
organization need to pay 5134 of deferred liability.
Bond: Value of bond which amount is yet to be received from inventory in case of Nab
was measured at 120297 and on the other side in Zurich it was 5136, which means that NAB
need to collect more cash from their investor as compare to its competitive organization.
Total equity: It is calculated on the basis of subtracting value of assets from their abilities. Total
equity is the ownership amount which organization have for specific period of time. In case of

Nab it is valued at 54642 and in Zurich it was 39846, which interpret that NAB's shareholder
provides them more resource or capital to run its operations as compare to Zurich.
PART B
Analysis how different role impact on the structure and performance of organizations
PART C
Calculation of financial ratio in order to measure capital adequacy.
Capital adequacy ratio analysis.
CONCLUSION

REFERENCES

INTRODUCTION
1