SWOT Analysis of Australian and New Zealand Banking Group

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the Australian and New Zealand Banking Group (ANZ Bank). The analysis highlights ANZ's financial strengths, including its revenue and market capitalization, and its weaknesses, such as high penalties and market competition. Opportunities include global market expansion and the growth of the Australian economy. Threats include competition from other banks and increasing costs. The report references financial data and market trends to evaluate ANZ's position and future prospects, providing a comprehensive overview of the bank's strategic landscape.

RUNNING Head: SWOT Analysis 1
SWOT Analysis

SWOT Analysis 2
This report reflects the strength, weakness, opportunity and threats of Australian and
New Zealand Banking group. It is the fourth largest bank by market capitalisation in
Australia.
Strength
Financial projection of company
Australian and New Zealand Banking group has been maintaining AUD 21.07 billion
amount of total revenue. Furthermore, average 15% increment in done by company since last
four years in its overall total turnover (Lusardi & Mitchelli, 2007).
Market capitalization
It is evaluated that currency share price of company is traded at AUD $ 29.9 which is
30% more as compared to its face value. This level of premium in its share price has been
observed due to its high brand image in market.
Weakness
High level of traits and penalties
Company has been facing problems of high amount of penalties due to its non-
compliance of banking and financial rules and regulation. Company has to deposit standard
amount with the central bank which increases its overall cost of capital.
Market size
There are several rivals in the market such as Commonwealth Bank, Westpac
Banking Corporation and National Australia Bank who have covered high market share. In
addition to this, ANZ needs to make diversification in its business.

SWOT Analysis 3
Opportunity
Global market share
Australian and New Zealand Banking group has global market share and could
increase its overall strength by tapping other international market share.
Growing economy
Australian economy has been showing 8% increment in its GDP since last five years.
This will increase the overall investor’s investment capacity and will result to high cash
inflow for Australian and New Zealand Banking group (Narayan, 2010).
Threats
Rivals offering
There are several competitors such as Commonwealth Bank, Westpac Banking Corporation
and National Australia Bank who have been showing high market coverage and offering high
interest rate to investors.
Increasing cost
It becomes hard for Australian and New Zealand Banking group to offer more interest
amount to investors to create value on their investment due to high cost of capital.

SWOT Analysis 4
References
Lusardi, A., & Mitchelli, O. S. (2007). Financial literacy and retirement preparedness:
Evidence and implications for financial education. Business economics, 42(1), 35-44.
Narayan, P. K. (2010). Fiji's tourism industry: a SWOT analysis. Journal of Tourism
Studies, 11(2), 15.