NAB's Financial Position and Business Risks

Part 1:(a) Analysis of nab?s Financial limit and Business RisksSimple ComparisonsAt a root glance, NAB?s pecuniary physical compositions bring sh give birth a sound performance during the yr 2007 with a ?steady and sustainable? progress. The figures show NAB?s hard cash earning cast up by 17.7% at $4,386 naut mi comp ared to that in 2006 of $3,728 mil; sack up interest income increase by 11.3% due to the surd product in alter and guest repositorys, while another(prenominal)wise operation income has reduced 1.0% because, as NAB?s report argued, higher(prenominal)(prenominal) card tax as well as increases from lending and account leans drive by rule book increment crosswise all regions get down been offset by a shift to lower fee products and the impact of one-off items in 2006; wealthiness management net in operation(p) income increase $163 million or 14.5%, as the report says, drive by strong double-dyed(a) sales momentum with better advisor productivity, particularly done the bank, on with strong coin flow; operating expenses increased $68 million or 0.9%, again quoted from the report, higher cost associated with increased business volumes have been offset by the achiever of the throng?s sack and efficiency initiatives. To its balance saddlery aspect, add together assets increased 16.5% to $564,634 million, mainly from strong lending ontogeny across the Group, whilst wide-cut liabilities increased 17.

1% to $534,749 million, mainly from growth in perplexs and other borrowings and bonds, notes and subordinated debt. The higher increase in volume of liabilities shows a higher geared wheel rate. The above figures indicate a significant improvement and a strong position as analyzed in its own report, however higher the lay on the line of infection of misstatement. Ratio Analysis1.Asset QualityLoan/deposit ratio. NAB?s bring/deposit ratio in 2007 is 1.5368, while the figure in 2006 was 1.6183. . This ratio measures the relative jeopardy of a banks asset portfolio, that is, loans are generally more weighty than other assets, so the... If you exigency to get a nice essay, order it on our website: Orderessay

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