Company Analysis: Company Selection Essay Example

Company Analysis: Company Selection

Company Analysis: Company Selection

The selected company is Adelaide Bank Ltd (ADB). ADB is an Australian-based company that provides business and retail banking, in addition to all types of electronic banking services, and lending services (Bendigo & Adelaide Bank Limited, 2016). The reason for selecting this company is because it is among the leading retailing banks within Australia. In addition, the company focuses on developing and enhancing the prospects of its clients and partners in developing sustainable profits and growth for its business (Jason & Smith, 2014). The reasons for choosing the company include its good credit rating, and its strong presences within Australia with many branches and ATMs all over Australia and its providing employment opportunities for more than 5, 000 individuals. In addition, the company has strong representation of females in senior management and high profitability for the company (Bendigo & Adelaide Bank Limited, 2016).

Adelaide Bank Ltd (ADB) is a profitable and worthy company to invest in. this is demonstrated by its high profitability, good credit rating and earnings. For instance, the cash earnings for the year 2016 were $439.3 million, which represented a 1.6% improvement on the 2015’s result of $432.4 million (Bendigo and Adelaide Bank Limited, 2016). Similarly, the consolidated profit for the company after providing for income tax in the year 2015 was $423.9 million: this was an increase of 13.9% on the 2014 result of $372.3 million (Bendigo and Adelaide Bank Limited, 2015). The company’s operating income and net interest income have also been increasing steadily which further indicates the company’s strong financial position. Finally, the company has steadily maintained a disciplined margin management and balance sheet growth that is indicated by the company’s credit performance and profit result (Romaniuk, 2012).

Reference list

Bendigo and Adelaide Bank Limited, 2016, Annual Financial Report 2016, Bendigo and Adelaide Bank Limited.

Bendigo and Adelaide Bank Limited, 2015, Annual Financial Report 2015, Bendigo and Adelaide Bank Limited.

Jason R & Smith M, 2014, Managing customer channel usage in the Australian banking sector», Managerial Auditing Journal, 14(7), pp: 329-338.

Romaniuk, J, 2012, Brand positioning in financial services: A longitudinal test to find the best brand position, Journal of Financial Services Marketing, 6(2), pp: 111–121.