This document presents a financial analysis comparing HSBC Bank and ANZ Bank from 2008-2014. It includes balance sheets, income statements, and cash flow statements for both banks. It also analyzes various financial ratios for liquidity, leverage, asset management, profitability, and the cash conversion cycle. Key findings are that HSBC's total assets and net operating income increased substantially from 2008-2014, while its cash flow from operations declined. ANZ also saw growth in total assets and income over this period.

1. CLASS : 2 GROUP: 7 PRESENTATION
FINANCIAL MANAGEMENT
Prof. Thomas Bradley
CAO SON
DOAN HUU DONG 332931
TRANG CHAN PHONG 332972

2. 1. Introduction
2. Financial Statements of HSBC Bank
3. Financial Statements of the competitor – ANZ Bank
4. Changes in industry
5. Financial Ratios between HSBC and ANZ
6. Financial Ratios of industry
7. Financial Ratios changes
8. Cash Conversion Cycle
9. Conclusion
CONTENTS

3. HSBC BANK INTRODUCTION
 Founded in 1865 to finance trade between Asia and the West, today HSBC is one of the world’s
largest banking and financial services organizations serving some 51 million customers. Our aim is
to be acknowledged as the world’s leading international bank.
«HSBC is well-positioned in the faster-growing markets and across international trade flows
to benefit from these engines of global growth»
Stuart Gulliver,
HSBC Group Chief Executive
 Headquartered was located in London, HSBC operates through long-established businesses and
an international network of more than 6,100 offices in 73 countries and territories

4.  HSBC has a history rich in variety and achievement. Discover the major events in our past.

5. HSBC BANK
FINANCIAL STATEMENT

6. BALANCE SHEET
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Total Assets 924,231 751,928 773,003 2,671,318 2,634,139 64.9%
IN MILLION US DOLLAR
924231
751928 773003
2671318 2634139
2008 2009 2010 2013 2014
Total Assets

7. INCOME STATEMENT
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net Operating income 12,479 12,198 13,125 58,796 57,397 78.2%
IN MILLION US DOLLAR
12479 12198 13125
58796 57397
0
10000
20000
30000
40000
50000
60000
70000
2008 2009 2010 2013 2014
Net Operating Income
Net Operating Income

8. IN MILLION US DOLLAR
STATEMENT IN CASH FLOW
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net cash (used
in)/generated from
operating activities
25,927 -11,759 54,742 44,890 -21,370 -221%
25927
-11759
54742
44890
-21370
-30000
-20000
-10000
0
10000
20000
30000
40000
50000
60000
2008 2009 2010 2013 2014
Net cash (used in)/generated from operating activities
Net cash from operating activities

9. ANZ BANK
FINANCIAL STATEMENT

10. BALANCE SHEETS
IN MILLION US DOLLAR
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Total Assets 382,591 427,975 455,954 618,997 707,544 45.9%
382591
427975
455954
618997
707544
0
100000
200000
300000
400000
500000
600000
700000
800000
2008 2009 2010 2013 2014
Total Assets
Total Assets

11. INCOME STATEMENT
IN MILLION US DOLLAR
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net operating income 2,080 2,308 15,692 9,270 10,527 80.2%
2080 2308
15692
9270
10527
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2008 2009 2010 2013 2014
Net operating Income
Net Income

12. STATEMENT OF CASH FLOW
IN MILLION US DOLLAR
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net cash (used in)/generated from
operating activities
3,372 1,308 -514 2,593 5 -67,340%
3372
1308
-514
2593
5
-1000
-500
0
500
1000
1500
2000
2500
3000
3500
4000
2008 2009 2010 2013 2014
Net cash from operating activities…

13. THE MOST SIGNIFICANT CHANGE
IN THE INDUSTRY
Times interest earned
2010 2013 2014
HSBC Bank
4.32 5 4.59
world bank Industry 2.26 1.86 2.28
Cột2
4.32
5
4.59
2.26
1.86
2.28
0
1
2
3
4
5
6

14. FINANCIAL LEVERAGE RATIO
o DEBT RATIO
YEARS HSBC ANZ
2008 0.977 0.938
2009 0.962 0.91
2010 1 0.929
2013 0.928 0.936
2014 0.924 0.941
0.977
0.962
1
0.928 0.924
0.938
0.91
0.929
0.936
0.941
0.86
0.88
0.9
0.92
0.94
0.96
0.98
1
1.02
2008 2009 2010 2013 2014
DEBT RATIO
HSBC ANZ

15. o TIME INTEREST EANED
YEARS HSBC ANZ
2008 -2.42 0
2009 -5.7 0
2010 4.32 0
2013 5 0
2014 4.59 0
-2.42
-5.7
4.32
5
4.59
0 0 0 0 0
-8
-6
-4
-2
0
2
4
6
2008 2009 2010 2013 2014
TIME INTEREST EARNED
HSBC ANZ

16. o CASH COVERAGE RATIO
YEARS HSBC ANZ
2008 -2.37 0
2009 -5.56 0
2010 4.32 0
2013 5 0
2014 4.59 0
-2.37
-5.56
4.32
5
4.59
0 0 0 0 0
-8
-6
-4
-2
0
2
4
6
2008 2009 2010 2013 2014
CASH COVERAGE RATIO
HSBC ANZ

17. o RECEIVABLE TURNOVER
YEARS HSBC ANZ
2008 3.1 1.96
2009 2.63 3.68
2010 6.68 1.99
2013 1 3.69
2014 0.98 5.18
3.1
2.63
6.68
1 0.98
1.96
3.68
1.99
3.69
5.18
0
1
2
3
4
5
6
7
8
2008 2009 2010 2013 2014
RECEIVABLE TURNOVER
HSBC ANZ
ASSETS MANAGEMENT RATIO

18. o DAY’S SALES IN RECEIVABLE
YEARS HSBC ANZ
2008 117.7 186.2
2009 138.78 101.3
2010 53.2 183.4
2013 365 98.92
2014 372.5 70.4
117.7
138.78
53.2
365 372.5
186.2
101.3
183.4
98.92
70.4
0
50
100
150
200
250
300
350
400
2008 2009 2010 2013 2014
DAY’S SALES IN RECEIVABLE
HSBC ANZ

19. o TOTALASSETS TURNOVER
YEARS HSBC ANZ
2008 0.034 0.029
2009 0.035 0.031
2010 0.1 0.034
2013 0.029 0.028
2014 0.028 0.027
0.034 0.035
0.1
0.029 0.0280.029 0.031 0.034
0.028 0.027
0
0.02
0.04
0.06
0.08
0.1
0.12
2008 2009 2010 2013 2014
TOTAL ASSETS TURNOVER
HSBC ANZ

20. o PROFIT MARGIN
YEARS HSBC ANZ
2008 0.167 0.1
2009 0.311 0.08
2010 0.096 0.084
2013 0.045 0.073
2014 0.465 0.216
0.167
0.311
0.096
0.045
0.465
0.1
0.08 0.084 0.073
0.216
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
2008 2009 2010 2013 2014
PROFIT MARGIN
HSBC ANZ
PROFITABILITIES RATIOS

21. o RETURN ON TOTALASSETS
YEARS HSBC ANZ
2008 0.0063 0.0033
2009 0.01 0.0028
2010 0.001 0.0028
2013 0.013 0.0021
2014 0.013 0.0058
0.0063
0.01
0.001
0.013 0.013
0.0033
0.0028 0.0028
0.0021
0.0058
0
0.002
0.004
0.006
0.008
0.01
0.012
0.014
2008 2009 2010 2013 2014
RETURN ON TOTAL ASSETS
HSBC ANZ

22. o RETURN ON EQUITY
YEARS HSBC ANZ
2008 0.27 0.05
2009 0.28 0.04
2010 0.238 0.041
2013 0.186 0.033
2014 0.17 0.1
0.27
0.28
0.238
0.186
0.17
0.05
0.04 0.041
0.033
0.1
0
0.05
0.1
0.15
0.2
0.25
0.3
2008 2009 2010 2013 2014
RETURN ON EQUITY
HSBC ANZ

23. WORLD BANK INDUSTRY
2.26
1.86
2.28
0
0.5
1
1.5
2
2.5
2010 2013 2014
TIME INTEREST EARNED
TIME INTEREST EARNED
0.0082 0.0085
0.021
0
0.005
0.01
0.015
0.02
0.025
2010 2013 2014
TOTAL ASSETS TURNOVER
TOTAL ASSETS TURNOVER

24. WORLD BANK INDUSTRY
2010 2013 2014
RETURN ON ASSETS 0.0023 0.0064 0.0027
RETURN ON EQUITY 0.027 0.06 0.03
Cột2
0.0023
0.0064
0.0027
0.027
0.06
0.03
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
PROFITABILITY RATIO

25. RETURN ON EQUITY
2010 2013 2014
HSBC 0.238 0.186 0.17
INDUSTRY 0.027 0.06 0.03
ANZ 0.041 0.033 0.1
0.238
0.186
0.17
0.027
0.06
0.03
0.041
0.033
0.1
0
0.05
0.1
0.15
0.2
0.25
PROFITABILITY RATIO

26. FINANCIAL RATIOS
RATIO ANALYSIS
2008 2009 2010 2013 2014
HSBC ANZ HSBC ANZ HSBC ANZ HSBC ANZ HSBC ANZ
Liquidity
Current ratio NA NA NA NA NA NA NA NA NA NA
Quick ratio NA NA NA NA NA NA NA NA NA NA
Cash ratio NA NA NA NA NA NA NA NA NA NA
Financial leverage ratios
Debt ratio 0.977 0.938 0.962 0.91 1,000 0.929 0.928 0.936 0.924 0.941
Times interest earned (2.42) 0 (5.7) 0 4.32 0 5 0 4.59 0
Cash coverage (2.37) 0 -5,56 0 4.32 0 5 0 4.59 0
Asset management
Inventory turnover NA NA NA NA NA NA NA NA NA NA
Day's sales in inventory NA NA NA NA NA NA NA NA NA NA
Receivables turnover 3.1 1.96 2.63 3.68 6.68 1.99 1 3.69 0.98 5.18
Day's sales in receivables 117.7 186.2 138.78 101.3 53.2 183.4 365 98.92 372.5 70.4
Total asset turnover 0.034 0.029 0.035 0.031 0.1 0.034 0.029 0.028 0.028 0.027
Profitability ratios
Profit margin 0.167 0.1 0.311 0.08 0.096 0.084 0.45 0.073 0.465 0.216
Return on total assets 0.0063 0.0033 0.01 0.0028 0,001 0.0028 0.013 0.0021 0.013 0.0058
Return on equity 0.27 0.05 0.28 0.04 0.238 0.041 0.186 0.033 0.17 0.1

27. CASH CONVERSION RATIONS
FY2008 (As of March 31,
2008)
FY2009 (As of March
31, 2009)
FY2010 (As of March 31,
2010)
FY2013 (As of March 31,
2013)
FY2014 (As of March
31, 2014)
Average inventory
NA NA NA NA NA
Days Inventory Outstanding (DIO)
NA NA NA NA NA
Average accounts receivable
40,444 10,912 44,404 76,009 76,824
Days Sales Outstanding (DSO)
457 153.4 202.5 354 375.9
Average accounts payable
0 0 14,684 35,397 59,896
Days Payable Outstanding (DPO)
NA NA NA NA NA
Cash Conversion Cycle
457 153.4 202.5 354 375.9

28. o COLLECTION CYCLE
Days Sales Outstanding
(DSO)
457 153.4 202.5 354 375.9
FY2008 (As of
March 31,
2008)
FY2009 (As
of March 31,
2009)
FY2010 (As
of March 31,
2010)
FY2013 (As of
March 31,
2013)
FY2014 (As
of March 31,
2014)
457
153.4
202.5
354
375.9
2008 2009 2010 2013 2014
Collection Cycle

29. o CASH CONVERSION CYCLE
Cash Conversion
Cycle
457 153.4 202.5 354 375.9
FY2008 (As
of March 31,
2008)
FY2009 (As
of March
31, 2009)
FY2010 (As
of March
31, 2010)
FY2013 (As
of March 31,
2013)
FY2014 (As
of March
31, 2014)
457
153.4
202.5
354
375.9
2008 2009 2010 2013 2014
Cash Conversion Cycle

30. 1. Based on the Income Statement (net income) from 2008-2014,
HSBC bank was more profitable than ANZ bank.
2. According to Financial Ratios of both companies:
• Asset Management Ratios : overall, HSBC bank is capable to
manage assets and revenue greater than ANZ bank
CONCLUSION

31.  According to the analysis, there was twice higher as HSBC bank and ANZ bank (
0.465 versus 0,216)
 In term of return on assets, HSBC bank is also dominated than than competitor ANZ
bank with (0.013 versus 0.0058)
 The proportion of return on equity in HSBC bank was 0.17 in 2014 while ANZ bank
just took 0.1. Hence, HSBC bank was higher than their competitors in profitabilities
ratio.
• Profitabilities Ratios:
CONCLUSION

32. REFFERENCES
http://www.hsbc.com/investor-relations/financial-and-regulatory-reports
https://www.shareholder.anz.com/sites/default/files/2014-ANZ-Annual-
Report.pdf.
http://www.marketwatch.com/investing/stock/hsbc/financials
http://financials.morningstar.com/income-
statement/is.html?t=HSB&region=mlt