(a)Identify the most and the least profitable segments of CBA for the 2020financial year. How do they compare to the rest of the segments? (8marks)
(Tips: Calculate the net profit before income tax/total income for each bank segment for the2020financial year)
(b)What are the factors responsible for the results in (a)? (5marks)
(c)Will the factors idenrified in (b) continue to the 2021 financial year or do you see changes to the most and least profitable segments for 2021? Explain your answer. (5marks)
(d)Which segment experienced highest credit risk in 2020?Discuss how this should be managed. (7 marks)
Question 2: Industry analysis (Notesto the financial statements,Notes 3.1 & 3.2) (25marks)
(a)Calculate the duration of ‘Gross Loans, bills discounted and other receivables’ of CBAfor the 2020 Financial year. (For each maturity period, use the minimum maturity. For instance, assume all loans maturing between 1 and 5 years have a maturity of 1 year for this exercise). (8marks)
(b)Repeat (a) for the 2019Financial year. (5 marks)
(c)Compare part (a) and part (b). Explain changes, if any,of duration between 2019 and2020.(5 marks)(d)Identify the industy lendings with the longest and the shortest duration.What are the inherent risk of such a pattern and how should this be managed? (7 marks
