Financial_Analysis_Of_Banking_System

Financial Analysis Of Banking System Table of Contents 1. Executive Summary............................................................................... 2 2. Company Overview 2.1 – Overview of Westpac Banking Corporation ……………….. 2.2 – Company Ownership ………………………………………. 3 3 3. Financial Analysis 3.1 - Profitability Analysis ……………………………………….. 3.2 - Financial Stability ………………………………………….. 3.3 - Liquidity Analysis ………………………………………….. 3.4 - Cash Flow Analysis ………………………………………… 5 9 10 14 3. Contingent Liabilities and Capital Commitments ……………………. 20 3. Profitability of Industry and Geographic Segments 5.1 - Profitability of the Banking Industry ………………………. 5.2 - Geographic Segments ……………………………………… 22 22 3. Analysis of the Company’s Triple Bottom Line (TBL) ........................ 28 4. Summary of Major Findings …………………………………………… 32 5. References ……………………………………………………………….. 33 3. Appendix 9.1 - Appendix A - Top 20 Australian Ordinary Shareholders ….. 9.2 - Appendix B - Top 20 New Zealand Class Shareholders …… 9.3 - Appendix C - Extracts from Statement of Cash Flow ……… 35 36 37 1. EXECUTIVE SUMMARY Westpac Banking Corporation (WBC) is Australia’s oldest company and oldest banking institution. It is a public listed company with the majority of its shares listed on the Australian Stock Exchange. Within the top five Australian banks, Westpac is ranked 4th for Operating Profit After Tax and Underlying Performance and has demonstrated consistent returns in this area compared to its competitors. In terms of financial stability and liquidity, the results are sound but less favourable than other major Australian banks. The cash flow from operating westpac, cash, operating, interest, banks, over, 2002, banking, liquidity, assets, westpac’s, years, financial, corporation, ratio, new, profit, equity, australian, net, flow, current, annual, zealand, year, past, major, increased, bank, analysis, shares, liabilities, increase