Westpac Bank Report: Analysis of Financial Performance and Strategies

This report provides an analysis of Westpac Bank's financial performance, focusing on its revenues, profits, and strategic responses to the challenges in the banking sector. It examines the company's structure, including its four divisions, with a particular emphasis on its consumer banking segment as the main revenue generator. The report highlights the bank's financial figures, such as revenues of $22 billion and a net profit of $8.09 billion in 2019, and the impact of regulatory and legal factors on its profitability. It also references the company's vision of becoming a leading service company and its strategies to regain market position, including focusing on capabilities and addressing political and legal issues. The analysis is based on the 2019 annual report and other relevant sources, providing a comprehensive overview of Westpac's operations and financial health.

RUNNING HEAD: BUSINESS ENVIRONMENT
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Business Environment

Business Environment
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Business
Westpac is a leading bank in Australia and offer banking and financial services to its
customers with 1,204 branches and 3,222 ATMs. The company offer financial and insurance,
consumer banking, mortgages, global wealth management and investment banking services to
business class segment and households in Australia, New Zealand, Pacific region and Asia. In
2019, the company offered services to 14 million customers and employed 40,000 employees.
The vision of the company is “to be one of the world’s great service companies”. With that
vision in 2019, the revenues and net profit of Westpac was $22 billion and S 8.09 billion
respectively. Its consumer bank segment generates most of revenues as $ 9 million sales are
from this segment and remaining contribution is by corporate and investment banking segment
of Westpac Group (Westpac,2019).
The company has four divisions and the most profitable one is consumer banking in
which Westpac provides services such as lending, deposits and insurance. The second division is
corporate banking and investment banking in this the company provides services to businesses or
merchants of Australia that includes ease in foreign transactions and off shore banking services.
The overall cash earnings in 2019 were $ 8 million (Westpac,2019). Westpac operates in baking
sector and this segment in Australia is highly regulated and adversely affected by the government
and legal system and due to that Westpac profitability and scale of operations decline in 2019 as
compare to 2018. In near future, the company decided to regain its position in the market by
focusing on capabilities and by making strategies in order to overcome the political and legal
issues in the banking sector (Svec,2020).

Business Environment
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References
Svec, J. (2020). Impact of Financial Crisis on the Profitability of Capital Structure Arbitrage in
Australia. International Journal of Banking and Finance, 12(1), 67-97.
Westpac,(2019). Annual Report 2019. Retrieved From:
https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/aw/ic/
2019_Westpac_Group_Annual_Report.pdf