The lessone name isFinancial Institutions Management.This is a group homeworks. Please let the 2...

Question

The lessone name isFinancial Institutions Management.This is a group homeworks. Please let the 2 expert to achieve it. One expert doing part A. One expert to achineve the part B.

Semester 1, 2021 CORPFIN 2501- FINANCIAL INSTITUTIONS MANAGEMENT II SMALL GROUP DISCOVERY EXPERIENCE Group Assignment This assignment is to be done in a group of maximum four students. Group members can be from different tutorial classes. The maximum word limit is 4500 words. Appendices (including, for example calculations) can be attached and will not be counted in the word limit. All of the sources you have cited in your assignment must be included in a reference list, which is placed at the end of your report before the appendices. The assignment should be submitted electronically via the Turnitin Assignment tool on MyUni by one member for the whole group by 11.59pm on Friday, June 4th (week 12) The link for the Turnitin Assignment tool has been created under the Assignment page entitled “SGDE Group Assignment- Turnitin Submission” on the MyUni site. You can upload your assignment directly by following the prompts. A bonus of 2.5 marks (or 10% of the possible maximum mark allocated for the assignment) is applied for early submission of the assignment (by 11.59pm on Wednesday, June 2nd ). If the assignment is submitted later than this time, then the bonus is not applied. A late assignment submission will be penalised by a 1 mark reduction (or 4% of the possible maximum mark for the assignment) for each day that it is late. The main objective of this assignment is to understand banks’ activities and risks and to analyse the impact of the financial crisis on the banks’ activities, financial performance and risks. You are required to use 2 banks (commercial and/or investment banks) ; one Australian bank and one US bank. You can choose to use the same type or different types of banks. The time period of analysis is from 2007 to 2010 (inclusive) to capture the impact of Global Financial Crisis that developed in late 2008. This assignment requires an in-depth analysis on the financial statements of the banks you have selected. The information required (financial reports, market and industry analysis etc.) can be downloaded from the banks’ websites and other sources. Financial Institutions Management II - Semester 1 2021 2 Part I: Asset and Liability Composition (50% of marks) Present a clear and concise analysis on fund (capital) raising activities (liability + equity composition) and asset portfolio allocation (asset composition) of the banks reflected in the banks’ balance sheets. In your analysis you have to clearly explain the major differences of the banks’ asset and liability compositions and the impacts of the 2008 global financial crisis on the banks’ asset and liability +equity compositions. Assessment details: a. Explain the motivation for choosing the banks • Why did you think the banks you chose would make an interesting comparison? Possible reasons might be size, location, areas of operation, or core activities. b. Compare and discuss changes in asset and liability compositions of the banks over the sample period : • Examine the compositions of the assets and liabilities from 2007 to 2010 for each bank. You may want to focus on four types of assets and four types of liabilities (i.e three largest types of assets and liabilities, and include the other smaller types in one group). • Compare and explain how the asset and liability compositions have changed over the sample period, especially during the crisis periods. Explain how you think the global financial crisis affected the asset and liability compositions. c. Explain potential risks faced by the banks due to the asset and liability compositions and their changes. Hint: You should not only be noting the quantitative change of assets and liabilities, but also possible reasons as to why the change occurred e.g. market conditions, changes in cost of funds, changes in needs of the bank. For example, assignments that state ‘liability A changed by X%, as the cost of funds increased’ would get a significantly better mark compared to, ‘liability A changed by X%’. You do not need to do this for every asset or liability, nor do you need to go into extreme depth, but you should make an attempt to understand why a change has occurred. The notes of financial statements can be useful for this! Financial Institutions Management II - Semester 1 2021 3 Part II: Financial Performance Analysis (50% of marks) Critically analyse financial performance of the banks and discuss the impacts of the global financial crisis and the European debt crisis on the performance of the banks. In undertaking the performance analysis, you are required to use the Return on Equity (ROE) decomposition model discussed in topic 2. This model provides a starting point for examining a financial institution’s performance by decomposing its financial ratios. In order to obtain a better understanding about the banks’ performances, not only do you need to analyse key performance indicators, but also identify trends in those indicators. Assessment details: a. Discuss changes in ROEs and the sources of the changes in ROEs for each bank over the sample period : o How has the profitability (ROE) for each bank changed over the sample period? o What have been the reasons of the changes in ROEs ? ▪ Decompose the ROE into the main components: ROA and EM to identify the driving factors (strengths and weaknesses) of the ROE. ▪ Analyse further the sources of ROA by breaking down the ROA into its components: Asset Utilisation and Profit Margin ratios. ▪ Identify the sources of the changes in Asset Utilisation and Profit Margin ratios by looking into the components of asset utilisation (i.e the income ratios) and profit margin (i.e the expense ratios) in more detail. b. Explain how the global financial crisis affected the banks’ profitability. Note: • Information about ROE items is available in Consolidated Income Statements (Statement of Earnings/Income) and Balance sheets in financial reports. • Additional readings for this part: (Topic2_App2A(Lange3e) from Lange, Saunders and Cornett, 3rd edition and Topic 2_App7A(Saunders) from Saunders 7th ed ) are available in the “Readings” folder within Modules on MyUni. • Similarly to part I, when you are discussing ratios or multiples do not just state the quantitative change. It is important to try to understand why the change occurred. Simply stating ‘The ROE for 2008 is X and the ROE for 2009 is Y, this is a big change!’ is not useful analysis. Should you wish to move into a finance related role, comparing companies using multiples is a fairly common task for interns & graduates, so this is good practice! --End of Assignment--

fim-ii-sgde-group-assignment-sem1-21-hnrbab0u.pdf

Harshit · Accepted Answer

INTRODUCTION
A. BANK OF AMERICA
Bank of America Corporation (shortened as Bank of America, normally contracted as BofA or BoA) is an American worldwide venture banking and monetary administrations portfolio settled in Charlotte, North Carolina. The San Francisco-based Bank of America was established by NationsBanks and was gained by BankAmerica in 1998. It is the second biggest financial foundation in the United States after JPMorgan Chase and the eighth biggest bank on the planet. Bank of America is one of the biggest financial foundations in the United States. Provide roughly 10.73% of U.S. bank stores and straightforwardly contend with JPMorgan Chase, Citigroup and Wells Fargo. The fundamental monetary administrations include business banking, abundance the executives and venture banking. One of its chronicled branches can be followed back to the Bank of Italy. The organization was established by Amadeo Pietro Giannini in 1904 to give different financial administrations to separated Italian settlers. Giannini, settled in San Francisco, California, procured Banca dAmerica e dItalia (Bank of America and Bank of Italy) in 1922. The entry of the noteworthy Bundesbank prompted fast development during the 1950s and immediately acquired traction in significant markets.
After enduring tremendous misfortunes following a Russian security default in 1998, the notable BankAmerica was gained by Charlotte-based NationsBank for $62 billion. Through a progression of consolidations and acquisitions, he extended his business banking business. In 2008 and 2009, he set up Merrill Lynch, abundance the executives organization, and Bank of America Merrill Lynch, a venture banking business (self-renamed Bank of America Securities). Bank of America and Merrill Lynch Wealth Management both have an enormous piece of the pie in their items. Starting at 2018, the venture bank will turn into the world's third biggest speculation bank. 
The resource chief has a resource the executives scale (AUM) of US$1.081 trillion, for instance, the second biggest resource the board organization on the planet after UBS. In the corporate world, Bank of America has retail workplaces in every one of the 50 expresses, the District of Columbia, and in excess of 40 different nations, however it doesn't really need to do as such. Commercial financial business covers 46 million client and private venture connections in 4,600 financial focuses and 15,900 ATMs.Since the 2008 monetary emergency, the bank's enormous portion of the overall industry, business and monetary impact have prompted numerous claims and examinations identified with contracts and monetary revelations. 
Since the start of the twentieth century, its corporate business has served the working class and the whole financial world, which has lighted a colossal market. As of August 2018, the market worth of Bank of America was $313.5 billion, making it the thirteenth biggest organization on the planet. As the 6th biggest freely recorded organization in the United States, the organization had deals of $102.98 billion in June 2018. Based on all out income, Bank of America positions 25th among the best 25 US organizations in the Fortune 500 of every 2020. Moreover, Bank of America positions eighth in the 2020 Forbes Global 2000 rankings. Bank of America was named the "Best Bank in the World" by institutional financial backer Euromoney in the "2018 Excellence Awards".
NATIONAL AUSTRALIAN BANK
National Australia Bank Limited is a worldwide monetary administrations organization that gives a wide scope of banking and monetary administrations in Australia, New Zealand, the United Kingdom and Asia. He is occupied with the accompanying organizations: Commercial Banking, Personal Banking, Wholesale Banking, National Bank Wealth and Bank of New Zealand. The Commercial Banking Department gives business banking administrations to business clients. The individual financial specialty unit offers types of assistance to private and independent companies. Worldwide division, the principle business zones incorporate worldwide business sectors, account, proficient money, monetary organizations and abundance the executives administrations. The NAB abundance area gives speculation, protection, monetary warning and private value administrations. The New Zealand Banking Department gives a scope of banking administrations in the UK. 
The organization additionally gives charge card and access administrations, renting, lodging and general money, worldwide banking, venture banking, resource the board, reserve the executives, life coverage and care administrations, and candidate guardianship. The National Bank of Australia was set up in 1858 and is situated in Docklands, Australia.In October 2008, NAB opened an immediate branch without a bank, overseen by Greg Sutherland and Gerd Schenkel, and worked under the name of UBank individually. Catch expressed that its will likely pull in new retail clients by working freely of other retail marks. Grab expressed in its 2009 yearly report that the technique was "effective." UBank works under the National Bank (NAB) banking permit and takes an interest in the new Australian government. Store ensure plan. As indicated by reports, month to month stores surpass 500 million U.S. dollars. Accept UBank for instance. It viably utilizes non-conventional advertising strategies, for example, online media, yet it likewise utilizes customary promoting techniques like print and TV. 
As indicated by National Australia Bank, "UBank's client insurance and fulfillment are the most noteworthy among all associations in Australia." NAB expressed in its 2009 yearly report that USaver items "have almost 10,000 new clients in a single month". UBank. UBank is perceived as the main thrust behind the fast development of NAB store piece of the pie. Look at the inner advancement procedure of UBank NAB, intending to open up new market territories for the parent company.
In March 2011, Cameron Kline reported in a meeting that UBank's stores arrived at US$10 billion and it would turn into a full-cycle retail bank. In a media meet led through the NAB preparation in October 2012, CEO Cameron Kline expressed that UBank had "raised $15 billion to $16 billion in stores." interestingly, ING Direct stores added up to in September 2012. At $18.5 billion, it was dispatched in 1999, nine years sooner than UBank. Since his arrangement in January 2009, CEO Cameron Kline has been seeking after a procedure of notoriety change, abundance the board and spotlight on Australia.
As some portion of this methodology, NAB, a light retail bank drove by Lisa Gray, tries to build its piece of the pie through serious costs and lower charges. This technique at first decreased the productivity of the business and created various outcomes in the medium term. Since its dispatch in 2009, cash edges, piece of the pie and consumer loyalty have kept on expanding, yet working edges and cost of income have declined. As indicated by its methodology, National Australia Bank attempts to stand apart from the other four significant banks in Australia through extraordinary public advertising exercises, with the emphasis on praising the 2011 Valentine's Day occasion with different banks. The mission got positive and negative surveys. Other significant banks additionally got fast and cutthroat reactions. At the Cannes Film Festival in 2009, NAB gained Challenger Financial Services' home loan business for US$385 million to build its portion of the overall industry in the financier market. 
B. LARGEST ACCOUNT BALANCE OF BANK OF AMERICA
Following analysis is done on the basis of most significant accounting figures adjustments/changes during the financial year.
	Particulars
	2007
	2008
	2009
	2010
	Cash
	345920
	259220
	517680
	537147
	Long-Term Investment
	214056
	277589
	311441
	338054
	Property, plant and equipment
	11240
	13161
	15500
	14306
	Other Long-Term Assets
	154177
	187011
	278699
	255124
	Goodwill
	91173
	103525
	118114
	98961
Cash and cash equivalents: There is decrease in cash & cash equivalent from previous year which indicates cash outflow has occurred in the year 2008 however in next year 2009 there is significant increase in cash outflow and which is continuing in following year 2010 this indicates major cash collection after recession and the company has hold its liquid assets after that.
Long-Term Investment: Following cash & cash equivalent, the company has increasedinvestment possible positive indicator as the company has collected amount from receivable and invested the amount for long term.
Property, plant and equipment: There is increase in property plant & equipment than previous year which is which indicates cash outflow has occurred in the year 2008 and which is continuing in next year 2009 there is increase in cash inflow in following year 2010 this indicates potential disposal of assets and cash received against it.
Other Long-Term Assets:

Semester 1, 2021 CORPFIN 2501- FINANCIAL INSTITUTIONS MANAGEMENT II SMALL GROUP DISCOVERY EXPERIENCE Group Assignment This assignment is to be done in a group of maximum four students. Group members...

Answer To: Semester 1, 2021 CORPFIN 2501- FINANCIAL INSTITUTIONS MANAGEMENT II SMALL GROUP DISCOVERY EXPERIENCE...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment