Financial Analysis of CBA and ANZ Business Models Assignment Help

Introduction to the Company

Commonwealth Bank

Commonwealth Bank Australia is an Australian bank that provides retail, corporate and corporate clients in a variety of countries, offering a variety of banking and financial products and services (Webster et al., 2017). The bank offers a variety of banking products and services to various countries such as Australia, New Zealand, Asia Pacific and the United Kingdom. Many types of banking products and services include merchant accounts, savings accounts, time deposits, credit cards, personal and home loan financial planning services; Pension 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 merchant accounts and credit cards; Overdraft on Business Services and its Customers (Evans et al., 2019). In addition, the company offers products and services that help corporate and corporate customers generate cash flows and liquidity.

Australia & New Zealand Banking Group Limited

Bank Group Limited in Australia and New Zealand is known for offering a wide variety of banking and financial products to its customers. The bank currently has 1,273 branches and is known for providing the best financial products and services to its customers. The company engages in regular customer reviews, credit, structure, performance and control analysis. Banking Group Limited was founded in 1835 and is headquartered in Melbourne, Australia. Bank customers include retail customers, small businesses, corporations and companies in Australia, New Zealand, Asia Pacific, the Middle East, Europe and the United States. Moreover, the company provides financing for individual customers such as vehicles, equipment, investment products and regional commercial banking services (Evans et al., 2019). In addition, the company offers proposed capital contracts, including 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 and Balance Sheet 

Based on previous performances of both CBA and ANZ, based on past financial analysis and other important factors, investors are advised to invest their future investment in ANZ, regardless of Union Bank. This can be said because the Commonwealth Bank's liquidity position is not very strong and has received more foreign loans than existing assets. From the available table numbers, it is clear that the Bank of the Union does not have a current commitment of 0.180 of all current liabilities, indicating that the Bank may be facing a shortfall in financing its day-to-day operations (Kedia et al., 2017). A quick approach, another indicator of short-term liquidity position, also shows a similar position expressed by the current ratio. By comparing the current and rapid rate of bank bathing, it can be said that ANZ holds more current assets than Commonwealth banks. This indicates that ANZ Bank is financing the short-term current asset requirement compared to the Commonwealth of Independent States Bank. A few days ago, it was noted that the CEO of Commonwealth Bank was found guilty of millions of dollars in financial scandals (Janda, 2014). This Commonwealth of Independent States (ADB) financial planning places investor funds in high-risk investments without the use of any safeguards and safeguards. Therefore, Union Bank's major investors have suffered huge losses as the bank's investment is wasted or not repaid. This all happened without the permission of investors and clearly shows how irresponsible the bank is.

When looking at the profitability of the two banks, it can be said that the two banks have achieved the same profit in the last three years. Operating profit indicators show that between 2011 and 2013, Commonwealth Bank and ANZ Bank achieved average annual operating revenues of 50% to 54%. The gross profit margin of both banks is less than 1%, which implies that banks retain high asset levels. Such small profits can be achieved (Evans et al., 2019). This implies that the profit level of the two banks is not enough to pay investors high returns. However, despite the low yield, it can be said that ANZ Bank maintains a good income level for investors. Therefore, investors should invest in ANZ Bank which has high returns.