Westpac banking corporation

Title: analyze bank strategies
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Westpac banking corporation
Executive summary
The BTFG inspires a sense of admiration for its great service delivery, customer oriented services, industrial reputation and its desire in innovation. It has an outstanding staff who are market oriented thus driving the super brands of this company. In the year 2010 this bank posted good results despite the economic turmoil and melt down in Australia. Though in a competitive environment, it has managed to survive all business cycles thus emerging top five safest banks in the world in the year 2010. Since its adoption of IT in accomplishing its strategic goals, this Bank has seen major transformations in its business. The rising number of the elderly, change of attitudes by Australians towards pensions and insurance, rise of natural catastrophes in the world is some of the opportunities that Westpac needs to exploit. Besides, it will have in collaboration with its IT department, come up with new products that meet the market tastes and preferences.
Company overview
The Westpac banking corporation-also known as Wespac, formerly called the Bank of New South Wales, is among the leading banking and also financial services companies in Australia. This bank provides a range of banking and financial services including, consumer banking, corporate banking, institutional banking, and insurance and asset management services. It operates more than 1491 branches and over 2700ATMs, and enjoys a client base of over 10 million customers. It operates in Australia, the Asia-pacific region and New Zealand and maintains offices in the major financial markets around the world. It serves through 7 business divisions including retail and business banking(RBB), Pacific banking, BT Financial Group Australia(BTFG), St. George bank, Westpac Institutional bank (WIB), Group Businesses and the New Zealand Banking. It has its head offices at Sydney Australia (National Library of Australia, 1999).
Financial Performance
In the year 2010 this bank posted good results despite the economic turmoil and melt down period that preceded the year. The corporation reported revenue of AUD 34.151 Million in the fiscal year ending 2010.This was a growth of 8.37 percent during the year 2008-2010 with a year on year revenue growth of 12.17 percent over the fiscal year ended 2009. It was during the year2010 when it recorded a profit margin of 18.58 percent as compared to the year 2008 which was 11.32 per cent. This saw cash earnings for the year grow to 595USD which was 21% increase. This can be attributed to the strong asset base, good flows besides the energy of the staff. In 2010, they recorded a 20% increase in productivity. In the Industry, working with high net worth clients, St.George Private Agents and Westpac bank have the lions share of the market in deposits and mortgages but they still have an opportunity to get more clients in investments, retirement solutions, superannuation and insurance (National Library of Australia, 1999).
Westpac Banking Corporation-Business description
The Westpac banking corporation is an Australian based banking and financial institution that is engaged in the provision of varied banking and related products across major Asia-Pacific markets. It offers consumer banking, business banking, insurance, retirement funds management, institutional and assets fund management. Principally it operates in Australia and New Zealand where it provides wealth management, commercial, retail and institutional banking. It has a human resource capacity of 38,479 employees.
It reorganized its business operations under seven arms: retail and business banking, BT financial, St. George bank, Pacific baking, Group businesses, Westpac institutional Bank and the New Zealand Banking.
The retail and Banking division of this bank is recognized for its provision of sales, marketing and also customer services to the SMEs, Commercial and individual clients in Australia. Besides it provides a range of products such as demand and term deposits, savings and check accounts, personal loans and Mortgages, and credit cards. The corporate clients are also offered, business related working capital, cash flow, transactional, and trade finance services. This division is also responsible for managing thread arty business and retail distribution relationships of the bank.
BT Financial division of Westpac offers wealth management facilities. This division undertakes activities of origination and also distribution of wealth management services so as to support the customers to accumulate manage and also protect their wealth. The service portfolio entails retail investment, personal and business superannuation, portfolio administration, general and life insurance. It also offers private banking services and financial planning advisory.
The Westpac institutional banking advises and assists the cash management, capital, funding and market risks for institutions and companies. This division has access to global markets via its foreign exchange, debt markets and commodities business. It serves corporate, government and institutional client base in both countries.
The New Zealand banking division provides a range of retail banking, wealth management and also business banking services. It serves over 1.4 million customers in the Nation. It provides comprehensive commercial and retail products to clients in New Zealand.
The St. George Bank is known for providing treasury and transactional banking services and also financial facilities as advisory services on cash flow, automotive and equipment finance, trade finance, and property finance. It serves clients in Australia.
Pacific Banking serves a wide range of banking products and services as business and personal loaning services, business transactional accounts, personal savings, business services and other range of international services to clients across the South Pacific Island nations. On the other hand, the Group business segment provides group services like earnings on capital not assigned to divisions, accounting entries to intra-group transactions among others.
Recently, the group reached a rapport with the finance sector Union of Australia on a new agreement that covered over26, 000 workers. In addition, its Westpac Institutional Bank became a founding partner of the Advance Green network of famous Australians who live at home and also abroad and who are committed to the challenge of building a sustainable future.
Competition
As the competition in the industry increases, execution will be vital. Australians grow, manage and also protect their wealth, the increasing growth in wealth management serve as opportunities for the growth of BTFG. However, challenges still exist in the industry. The largest reform agenda across the financial advise more so on superannuation, the continued market uncertainty after the economic meltdown, consolidation of the industry that is aimed at attaining greater scale in administration and distribution, and the rising sector competition given the attractiveness and the size of the sector.
Westpac banking corporation is ranked second in stiffly competitive banking industry-Australia besides it being the 2nd in the world’s safest banks (Global finance 2010). It is raked top five listed companies in market capitalization by the Australian Securities Exchange Ltd (ASX). In March 31st 2010, the group’s market capitalization was $83 billion. It is in an equally competitive market. Major players in the industry include: National Australia Bank, Commonwealth Bank of Australia which is the largest in market capitalization in the industry. It has most points of customer access and the largest life insurer (ranks first in in-force annual premiums).
The National Australian bank on the other hand is a leading bank with the highest client base and also sound market capitalization. It is located in major parts of the country and also the world. It has won the coveted CFOs magazine Business bank of the Year and many other awards (National Library of Aust...