Financial Analysis Of Banking System

11 Pages 2670 Words

less favourable than other major Australian banks. The cash flow from operating activities has been increasing strongly over the past five years. Cash flows for investing and from financing activities have increased steadily during this time.

Westpac has taken a leading role within the Australian banking industry in the introduction of triple bottle line (TBL) reporting. In 2002, Westpac was one of only five institutions worldwide to provide TBL reports conforming to the Global Reporting Initiative recommendations.




















2. COMPANY OVERVIEW AND ITS OWNERSHIP

2.1 - Overview of Westpac Banking Corporation
Founded in 1817 as the Bank of New South Wales, Westpac is Australia’s oldest banking establishment. The name of the bank was changed to Westpac Banking Corporation (WBC) in 1982 following a merger between the Bank of New South Wales and the Commercial Bank of Australia Ltd. On 23rd August 2002, Westpac was listed as a public company under the Australian Corporations Act 2001. (Westpac Annual Financial Report, 2002, p. 5)

Westpac employs some 23,000 employees and serves approximately 7.5 million customers throughout Australia, New Zealand and the Pacific. Offices are also maintained through branches or subsidiaries in major world financial centres such as London, New York, Tokyo, Singapore and Hong Kong. (Westpac Concise Annual Report, 2002, p. 34)

The company operates under four key business areas being:
• Business and Consumer Banking:
• Wealth Management:
• Westpac Institutional Bank:
• New Zealand Retail (Westpac Trust):

2.2 - Company Ownership

The majority of Westpac’s ordinary shares are listed on the Australian Stock Exchange (ASX), with smaller listings on the Tokyo Stock Exchange and the New Zealand Stock Exchange. American Depository Shares, each worth five ordinary shares, are listed on the New York Stock Exchange. (Westpac Annual Financia...