This purpose of the report is to analyse the data of the annual report of the two major financial institutions in Australia, Macquarie Bank Ltd and Commonwealth Bank of Australia. Data from the annual report will then is used to and make a detail comparison between the performances of the bank in terms of business strategy, bank’s liquidity and ratios using the companies. “The Commonwealth Bank has a leading domestic market shares in home loans, retail deposits and discount stockbroking and is Australia’s largest issuer of credit cards.
” (Anonymous, 2006) In general, the Commonwealth Bank provides a full range of retail banking services. It also provides investment products, superannuation and insurance. “The Commonwealth Bank is the country largest retial find manager in terms of total value of funds under management. ” The asset management business manages investment portfolio for a diverse range of retial and wholesale clients. It provides a large range of active and indexed investment options. These options include Australian and international shares, listed property, fixed interest, credit, infrastructure, private equity and cash.
The Bank serves corporation, government entities and other major institutions operating in Australasia. Corporate customers have access to financial market services, securities underwriting, trading and distribution, corporate finance, equities, payments, and transaction services, investment management and custody services. Macquarie has six operating Groups within which individual business Divisions operate. The Groups specialise in defined product or market sectors and work in close cooperation. Great emphasis is placed on the client’s relationship with the Bank as a whole.
The Investment Banking Group brings together the Bank’s wholesale structuring, stockbroking, underwriting and advisory capabilities. “Macquarie’s Equity Markets Group comprises the Bank’s principal equity trading, market-making, product origination, structuring, warrants and derivatives sales and distribution activities. ” (Abraham, A. , 1998) Macquarie’s Banking and Property Group provides a range of innovative banking and property-related services. The Financial Services Group is dedicated to the distribution of financial services via financial advisers and directly to individuals.
“Commonwealth Bank seeks to leverage off its broad distribution footprint and product capability by improving its customer service due to the fact that in the part, the bank’s unexceptional customer service experience and relative inefficiency of operations have constrained the bank’s ability to take advantage of its strong competitive position. ” (Financial Service Distribution, 2005) By looking at the facts, Commonwealth Bank is likely to remain predominantly focused on the Australian and New Zealand markets.
Over the medium term, Commonwealth Bank’s offshore strategy is to capitalise on, leverage off, core competencies largely in funds management and life insurance. “The Colonial acquisition in 2000 provided it with a broad competency in the life insurance and fund management sectors and clear scale advantages over its domestic bank competitors. ” (Hand, G. , 2000) The bank stands to benefit from the Australian government’s continued encouragement of superannuation as a form of a long-term saving using taxation incentives and a mandatory superannuation guarantee levy.