Analysis of Westpac's Financial Performance and Economic Factors

This report provides a detailed analysis of Westpac Bank's financial performance from 2012 to 2016. It examines key financial indicators, including revenue trends, net worth, and debt levels. The analysis reveals that Westpac experienced significant revenue growth initially, followed by a slight decrease. The report also assesses the bank's net worth, highlighting its fluctuations and implications for solvency. Furthermore, it explores the relationship between profit margins and debt securities, emphasizing the importance of managing debt levels. The economic analysis considers GDP and unemployment rates, demonstrating the impact of economic conditions on Westpac's performance. Overall, the report offers insights into Westpac's financial health and the influence of economic factors.

Business Intelligence

TABLE OF CONTENTS
PART 2............................................................................................................................................1
Dashboard....................................................................................................................................1
Analysis of dashboard..................................................................................................................1

PART 2
Dashboard
Analysis of dashboard
 Financial analysis: Graphical presentation shows that revenue of Westpac increased
significantly from 17893 to 21642 at the end of 2015. This aspect presents that
individuals prefer to undertake services offer by the concerned banking institution. Along
with this, increasing sales trend indicate that customers have positive attitude towards the
services provided by Westpac. However, in 2016, sales level of banking institution
decreased from 21642 to 20985. This is not a good indicator so business unit should lay

emphasis on innovation and quality of services. By doing this, firm would become able to
get the desired level of outcome or success.
 Net worth evaluation: From financial evaluation and graph depicted in dashboard
presents that after the year of 2012, net worth of Westpac inclined to a great extent. In
2012, net worth of Westpac accounted for negative 141.0 significantly, whereas at the
end of 2016 it reached on 645.2. Thus, it can be presented that, from 2013 to 2015
banking institution has maintained enough assets over the obligations. In contrast to this,
in 2016, net worth of Westpac was 171.1. Thus, business unit needs to lay emphasis on
controlling the level of expenses and maintenance of profit. This in turn provides
assistance to the firm in strengthening both liquidity and solvency aspect.
 Comparative analysis of profit and debt: By doing graphical analysis or evaluation it has
been assessed that along with the sales revenue, profit margin of Westpac increased to the
significant level. Debt level or securities exhibit fluctuating trend during the 5 years
considered for analysis or evaluation. In 2013 and 2014, level of debt securities was
lower which in turn makes positive contribution in the profit margin of firm. The
rationale behind this, debt securities impose fixed obligation in front of the company such
as interest payment etc. In 2015 and 2016, debt securities level of Westpac was high in
comparison to the past years. Thus, at the time of taking resort of debt securities for
meeting financial needs management team of Westpac should consider ideal solvency
ratio. This in turn helps firm in enhancing profitability and thereby overall financial
performance.
 Economic analysis or evaluation: In the recent times, economic indicators are highly
significant which in turn provides assistance in decision making. Line chart shows
fluctuating trend in the GDP of Westpac from 2012 to 2016. GDP is the main indicator
which entails the extent to which economy of the concerned country is good. Thus, by
taking into account the fluctuating trend it can be said that economic performance of
Australia decreased over the former times. Further, unemployment level in Australia also
increased from 5% to 6%. This aspect places negative impact on the growth and well-
being of Australia. Thus, it can be depicted that economic performance of the country
was not good during the period of 2012 to 2016 which in turn places direct impact on the
performance and profitability of Westpac.