Essays on Comparative Analysis of Westpac and BHP Company Case Study

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The paper "Comparative Analysis of Westpac and BHP Company" is a perfect example of a business case study. Profit maximization in financial institutions has been the subject of importance and ongoing debate in the corporate world. There are mixed opinions as to whether banks are making excessive profits. There are those who believe this is quite true while still others like Narev, chief executive of Commonwealth Bank discard the Labor's conviction banks in Australia are amongst the most successful institutions globally (The Australian, Feb 15, 2012). However, the RBA warns on pursuing unrealistic profits.

Michael Handa reports that “ … lending growth has been terrible over the past year (2011), the worst since the Second World War. And that's putting pressure on bank profitability. They have managed to keep their profits up with an improvement in their interest income and their net interest margins over the last year, even though there was some pressure on those at the end of last year” . The Reserve Bank warned Australia's banks not to chase unrealistic profit expectations by taking on more risk. It identified lower credit standards, rapid overseas expansions and excessive cost-cutting by cutting risk management staff as three of the key areas to watch for Australia's banks (Michael Janda, Wednesday, March 28, 2012, the World Today). Banks are more heavily regulated than any other industry sector.

Despite this, they are considered one of the most profitable sectors listed on the ASX with the main four banks reporting profits in excess of $5 billion each over the 2010-2011 year. This paper seeks to explore the general performance of the Westpac Bank (representative of the banking sector) and compares and contrasts its results to BHP (representative of the mining and manufacturing sector) and Domino’ s Pizza (representative of the food and hospitality sector). Background information Westpac Bank was established in the year 1817.

It is one of the oldest financial institutions in Australia initially referred to as the Bank of New South Wales. The banks expanded particularly during the gold rush of the 1850s, from just a single unit and by the time of the Great Depression, there were about 37 branches. The banks acquired a commercial status in 1982. By this time it was known as the Westpac Banking Corporation.


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