Sample Finance Paper on Analysis of the business models of CBA and ANZ

Executive Summary
This report looks at the business models of CBA and ANZ. The analysis of the financial
statements is necessary to know the financial performance of the company. This will help
investors consider the development of the company and, based on that, make their own
decisions. This report analyzed the Commonwealth Bank and ANZ Bank analysis for the 2013-
2018 period. Both banks are located in Australia and are known for their performance. The
financial analysis of these two banks was performed based on the financial ratios relevant for the
assessment of CBA and ANZ's liquidity, profitability, efficiency and return on capital employed.
This report is a test of variables that allow CBA and ANZ to repay their debts over a
certain period of time. Conduct a thorough analysis of the current performance and compliance
with your financial obligations, as well as the financial arrangements of two entities to determine
their performance. Audit of financial ratios is calculated by means of liquidity, productivity,
liquidity and risk ratios. It is commonly used to test performance in both financial sectors that
undermine corporate success, disappointment and progress. Thus, this report calculates that both
CBA and ANZ resistance options are one of the best ways to invest or prioritize.
Return on equity measures the difference between CBA and ANZ to generate income on
their assets. In addition, revenue and indicators show that business is profitable, overall
performance assessment, Australian interests can be used to test organizational performance,
analyze current performance and previous records. It includes gross income, net gross income,
dividend yield, and earnings per share.
Net comprehensive income shows how much these companies can achieve in terms of
gross profit. Total revenue depends on the cost of the item sold, but does not include several
costs. The recipe for determining the total gross income, equivalent to the net income of the
proposals, is 100%, taking into account the cost of the proposed product. Comparative financial
analysis illustrates the concern and long-term strategic performance of both institutions and also
identifies investment decisions. This report analyzes the financial status of CBC and ANZ by
analyzing financial relationship.

Business Model CBA and ANZ

Introduction of Company
Common Wealth Bank
Commonwealth Bank of Australia is an Australian bank known for its retail, corporate
and institutional clients in various countries, offering a variety of banking and financial products
and services. The bank offers a wide range of banking products and services to various countries
such as Australia, New Zealand, Asia Pacific and the United Kingdom. Various types of banking
products and services include transaction accounts, savings accounts, time deposits, credit cards,
personal and home loan financial planning services; retirement products, youth and student
products, home, car, life, credit and credit protection, income protection and insurance products;
Connected. The company is also known for offering commercial banking products such as
business accounts and credit cards; commercial services and overdraft to its customers. In
addition, the company also offers products and services that help corporate and institutional
clients manage cash flow and liquidity.
Australia & New Zealand Banking Group Limited
Banking Group Limited in Australia and New Zealand is known for providing its
customers with a variety of banking and financial products. The Bank currently has 1,273
branches and is known for offering its clients the best financial products and services. The
company is engaged in regular customer reviews, credit, structure, performance and control
analysis. Banking Group Limited was established in 1835 and is headquartered in Melbourne,
Australia. Bank customers are retail customers, small businesses, corporations, and institutions in
Australia, New Zealand, Asia Pacific, the Middle East, Europe, and the United States. In
addition, the company also provides financing for vehicles, equipment, investment products and
regional commercial banking services to individual clients. In addition, the company offers
proposed equity contracts covering deposit products, cash management, trade finance,
international payments and payment services; and customer risk management services.

Financial Statements of CBA and ANZ
Analysis of Income statement
Analysis of Balance Sheet
Financial Ratios Analysis
Liquidity Ratios
Current Ratio
Quick Ratio
Profitability ratios
Operating Profit Margin
Return on equity

Business Model CBA and ANZ
Leverage Ratios
Gearing Ratio
Return on Capital Employed
Efficiency ratios
Asset Turnover Ratio
Receivables Turnover Ratio
Market value ratios
Earnings per share
Contrasting Valuation Models of incorporeal assets at CBA and ANZ
Incorporeal Assets Valuation Models

Comparing Economic Implications on CBA and ANZ
An environment challenges
The Australian banking industry faces a factor that makes simplification vital but complex.
These options include customer preferences, new forms of competition, convergent sectoral
approaches, slower debt growth, lower interest rates, broader policy and reform reforms, and the
need for greater transparency to rebuild confidence. This change forces banks to face their
strategies and operating models. Without changes, established banks will have difficulty meeting
the expectations of shareholders, customers and regulations.
Bank Simplification
The aim of simplifying the bank is to associate with a fully structured company according to the
needs of the customer and everywhere, but using a digital approach. This bank is streamlined
from front to back and every process puts the customer at the center of attention. They are not
organized into silos or product channels, and have no inherent limitations and are open to the
outside world. The simplified roadmap will be different for each bank according to its strategic
objectives and current state. The Bank's five-step simplification approach, outlined below,
defines how the bank can access a “related company” or ‘connected enterprise’.
Global Shift

Comparative Analysis on CBA and ANZ
The purpose of this report is to compare and analyze the performance of two important financial
institutions: The Australian Bank of Australia (CBA) and the Austrian Bank of New Zealand
(ANZ). This is done when identifying a number of financial reasons as they are the most harmful

Business Model CBA and ANZ
indicators of any business. CBA is not only one of the four largest Australian banks but also has
the highest market capitalization of $ 126,740,000,000 and is also in the top 20 ASX. ANZ has a
third-largest fourfold capital stock of $ 78,264,000,000 (ASX List 200, 2018). In addition, given
the 2016 and 2017 annual reports, CBA's net profit increased by 7.67% from $ 9,243 million in
2016 to $ 9.952 million in 2017, and ANZ's net profit also increased by 12%. 5,709 million in
2016 to 6,406 million in 2017. The analysis below shows how the CBA has satisfied its
reputation as the leading Australian bank.
Comparative Analysis on CBA and ANZ operating earnings over last five years
Return on Equity (ROE) and Return on Assets (ROA) are key ratios when assessing the
profitability of banking actors. For investors, ROE assesses how much the bank earns through
equity funds, while ROA helps measure asset or bank equity efficiencies (Koch and MacDonald,
2010). By analyzing DuPont's analysis method and its three main components, one can make a
difference between the two organizations with the same return on equity. Of these components,
profit margin represents the efficiency of banking operations. Since CBA has a net profit
compared to ANZ (22% and 20%), this is largely due to the CBA's ability to increase revenue
through non-interest-bearing services and provide a margin of interest. Higher purity. Moreover,
asset turnover shows how effectively banks use their assets. The total trading volume of CBA is
4.6%, while ANZ is 3.8%, suggesting that CBA is very effective in using its assets and managing
profitability. The last element in DuPont is the leverage contributed by the multiplier ratio. The
capital multiplier is an indicator of the amount of financing a financial institution uses for its
capital.

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