Bank Comparison Report: BOQ and CBA - Financial Performance Analysis

This report undertakes a comparative financial analysis of the Bank of Queensland (BOQ) and the Commonwealth Bank of Australia (CBA), examining their performance over a five-year period (2014-2018). The analysis begins with a decomposition of Return on Equity (ROE) using the Du-Pont five-way analysis, followed by a detailed examination of Return on Assets (ROA), asset turnover ratio, interest income, non-interest income, and the equity multiplier. Furthermore, the report assesses the credit risk of both banks by analyzing loan reserve ratios and non-performing loans. Liquidity is evaluated using the current ratio, and operational risk is also considered. The findings reveal trends in financial ratios, providing insights into the banks' profitability, efficiency, credit quality, and liquidity positions. The report concludes with a summary of the key findings and a comparison of the financial health and stability of BOQ and CBA, offering a comprehensive overview of their performance and risk profiles.