National Australian Bank Essay Example

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Secondary data for NAB

National Australia Bank Group provides financial services. It has more than 12,700,000 customers while it operates more than 1700 branches and business banking centers in various markets across the globe. It operates in such countries as New Zealand, United Kingdom and Asia in addition to Australia. The bank positions its various brands uniquely though on a common strategy of providing quality products and services to customers. It offers fair fees and charges while offering relationships that are built on its principles of help, advice and guidance.

Products offered

The bank’s products offerings are classified into personal and business products. Personal products offered include personal loans, home loans, credit cards, savings accounts, internet banking, international banking services, transaction accounts and insurance. The bank also offers various mobile banking services. On the other hand, the business products offered include loans and finance, business cards, payment and merchants services, online banking, international and foreign exchange services, insurance, superannuation and small business services. The bank also has various specialized accounts on offer including NAB foreign currency account, NAB statutory trust account, NAB community fee saver, NAB firm management account and NAB farm management deposit.

Operating environment

As stated above, the bank operates in various markets across the globe. This means that analyzing its operating environment can unearth the various challenges and strengths that the bank faces in meeting its target of increasing its market share. The operating environment is analyzed as follows;

Globally, the economic environment is sluggish. The sluggish environment is leading to fall in commodity prices. The Australian economy has been struggling to increase momentum with a weak income growth. The GDP is expected to grow at 2.7% in 2016. There have been expansionally financial conditions which are expected to have positive effect on the financial sector. The New Zealand economy is expected to grow at 1.8% in 2016. The economies of the UK and Asia have also been slowing.

Financial performance

The bank saw its interest income for the year 2014 remains flat at $30,419 million. It is however worth noting that the interest expense for the ear 2015 slightly declined from $17,004m in 2014 to $16,437m in 2015. There was a significant increase in the bank’s insurance income from $542m in 2014 to $568m in 2015. The bank’s net profit significantly increased from $5,298 m in 2014 to $6,392m in 2015. It is also worth noting that the bulk of the income came from the bank’s Australian segment. It is also to be noted that interest from customers’ deposits did increase significantly in 2015.

Comparison to other industry players

NAB is ranked the fourth largest Australian bank as far as market capitalization and customers is concerned. Globally, it ranks as the 21st largest bank in terms of market capitalization and 41st as far as total assets are concerned. In the year 2015, the bank had cash earnings of 5.84 billion making it the fourth in Australia in terms of financial performance. This is as compared to CBA $9.14 billion, Westpac $7.82 billion and ANZ $7.22 billion., 2016, NAB news, Retrieved on 20th March 2016, from,