The Commonwealth Bank of Australia, an Australian public company listed on the Australian Securities Exchange under the code “CBA”, derives the majority of its revenue from the provision of integrated banking and financial products and services both in the local and international setting.
Operating through the following segments including: Retail Banking Services, Business and Private Banking, Institutional Banking and Markets and Wealth Management; the Commonwealth Bank of Australia.
1.1 Graph represents CBA share price performance for a 3-year time period starting January 2013.
Company Performance
Over a time period of five years, the Commonwealth Bank of Australia have notably achieved milestones, key milestones that have made it into what it is today. A pioneer in their respective industry, the following achievements over the said period include:
2010
2011
2012 – Launched revised Sustainability Strategic Framework
2013 – Achieved the number one position in customer satisfaction in all business areas
2014 – Became a signatory to the Equator Principles.
The Sustainability Strategic Framework continued to support the bank’s vision and the creation of enduring value to its customers, people and shareholders.
- Analyze the business; make a conclusion about the performance of the company
Environmental Analysis
POLITICAL
Regulation affects bank structure and the activities banks can undertake. For example, responsible lending obligations prevent lending to some individuals who request loans, and prudential regulation (higher capital requirements) limits the attractiveness of more risky loans.
ECONOMIC
SOCIAL-CULTURAL
TECHNOLOGICAL
Advances in technology may imply that there are economies of scale even for larger banks, thereby creating pressures for further consolidation.
- Facts and figures on the market and competitors
Competition can take a number of forms. At a base level, firms compete in two ways – product and price. In this particular competition, within the banking and financial products and services industry, the nature and focus is provided by examining business models, cost of funds and profitability.
Competitiveness in price, product features, quality and access to services, innovative product offerings and branding are the key factors that firms focus on.
Price competition in financial services is clearly important to consumers and a key element of competition between producers. The level of price competition, however, is complicated since many of the services offered by retail banking are complementary. Customers often value the convenience of centralized services, generally coupled with bundled pricing.
CBA’s brands include Bankwest, wealth manager Colonial First State, master trust services provider FirstChoice, online brokerage CommSec, ASB Bank, which provides banking, investment and financial services in New Zealand.
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