The Comparison and Best Investment Decision for The Commonwealth Bank and ANZ Bank
Within this paper I will be helping with the decision making of which bank is a better investment decision, whether it is The Commonwealth Bank or ANZ Bank. In this essay I will be talking briefly about things to think about when investing in a bank, environment and global factors that have or may affect the future of the banks and how the ratio’s and percentages relate to these definitions.
When investing in a bank you would ensure that the bank is investing to generate further income and cash flows. As an investor in a bank, you would prefer that the bank invest in assets that will maintain current operations. Also as an investor you would also require accounting information for decision making purposes and to determine whether the bank has a future profitability by assessing the future cash flows from dividends and the possibility of future capital growth of the investment.
With Commonwealth Bank acquisitioning Bankwest who is a strong business and market leader in Western Australia, Commonwealth Bank has demonstrated it’s commitment by helping to expand the Australian economy in a rapidly growing region and it is their intention to maintain and grow the Bankwest brand. This acquisition will be a positive environment and global factor for the future of The Commonwealth Bank.
The Commonwealth Bank and Bankwest branches and business centres in Western Australia will not be closing as a result of this acquisition. Customers will be able to use either banks auto teller machines without paying any additional fees which is part of ensuring that the customers and the investors needs are first and foremost. While the Commonwealth Bank regularly looks for acquisition opportunities they feel Bankwest is a quality asset and the combination of their current capital, funding position and with the strategic value of the transaction will make this a great opportunity for the bank and it’s investors. It will deliver growth opportunities in the market and better product and
When investing in a bank you would ensure that the bank is investing to generate further income and cash flows. As an investor in a bank, you would prefer that the bank invest in assets that will maintain current operations. Also as an investor you would also require accounting information for decision making purposes and to determine whether the bank has a future profitability by assessing the future cash flows from dividends and the possibility of future capital growth of the investment.
With Commonwealth Bank acquisitioning Bankwest who is a strong business and market leader in Western Australia, Commonwealth Bank has demonstrated it’s commitment by helping to expand the Australian economy in a rapidly growing region and it is their intention to maintain and grow the Bankwest brand. This acquisition will be a positive environment and global factor for the future of The Commonwealth Bank.
The Commonwealth Bank and Bankwest branches and business centres in Western Australia will not be closing as a result of this acquisition. Customers will be able to use either banks auto teller machines without paying any additional fees which is part of ensuring that the customers and the investors needs are first and foremost. While the Commonwealth Bank regularly looks for acquisition opportunities they feel Bankwest is a quality asset and the combination of their current capital, funding position and with the strategic value of the transaction will make this a great opportunity for the bank and it’s investors. It will deliver growth opportunities in the market and better product and