...Balance sheet optimisation under Basel III ING Investor Day Koos Timmermans Vice Chairman ING Bank Amsterdam – 13 January 2012 Priorities 1 2 3 Transition to Basel III Balance sheet optimisation Return on Equity ING Investor Day - 13 January 2012 2 Strategy for the coming years is based on two phases 2012 End 2013 2015 Bank: Transition to Basel III • Manage through the crisis • Limit B/S and RWA growth • Execute B/S optimisation • Invest where needed to achieve operational excellence • Further simplify the business portfolio and the organisation • Prudent approach to capital and funding given unstable market conditions Bank Standalone • Grow deposits across the bank Basel III requirements met EC restructuring and Repayment of Dutch State complete • Evolve ING Direct units towards mature business model using loans from Commercial Banking • Grow the franchise without growing the balance sheet • Resume dividend after restructuring and State repayment ING Investor Day - 13 January 2012 3 ING has a good starting position to reach Basel III capital targets by 2013 Targets Core Tier 1 6.5% 3Q08 9.6% 3Q11 Actions • To be reached in 2013 ≥10% • Strong continued capital generation and RWA containment • To be reached in 2013 • Further reduction via balance sheet optimisation • To be reached in 2015 Leverage ratio 57 3Q08 29 3Q11 ~90% 3Q11 < 25 LCR1 > 100% • Further optimising the investment portfolio • Implementation...
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...of a business sales income and costs tells the business the amount of income they have acquired and the total amount of their expenses in previous years. This information helps monitor the current performance of a business so that they could use previous information to compare the different data’s. There are three main data’s that are very essential when monitoring business performance and assessing its success: • Balance sheet is a financial business document which provide information of the business assets and debts, it shows what the business owns and what it owes through the date listed. Balance sheet helps to assess the business performance as it is used to track the spending and earnings of the business. Balance sheet informs the business about its financial standing. Balance sheet helps the business to assess their performance as it examines the business assets and its debt. Balance sheet assess whether the business is financially capable to pay its debts or not. Balance sheets shows If the business has more debts than their assets. Using Balance Sheet businesses are able to improve their financial health as they will be able to identify if they have more debts than their assets. • Income statement is a detailed information of a business financial account; it tells you the profitability of a company during a certain period of time. In the income statement it provides the company information of the different incomes that they are acquiring and the different expenses...
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...increase in 2010. The balance sheet reflects growth over the past three years as well, with a continual revenue increase of over three million dollars from 2010 to 2011. The cash flow has also increased over the last year by eleven million dollars. Some things on the balance sheet that were of some concern were the shareholders equity declined and the long term debt increased (Wal-Mart 2011 annual report). My concern with the shareholder’s equity declining is that other potential shareholder and investors may look at this and think twice about investing in the company. The one thing an investor hopes to receive is a return on their investment, cash flow is up, and net sales are up but equity is down. The long term debt increased from 2010 to 2011; this is not a major concern because of where the United States economy is and was over the past few years. Companies have taken on more debt because of the economical climate of the country. Moving forward management should place emphasis on the profit gains and not the profit loses, show that... [continues] Business Analysis Part II This business analysis will compare the financial strength and wellness of Wal-Mart, Target, and Sears. The income statements, balance sheets, and cash flow reports for Wal-Mart, Target, and Sears have been researched to complete this analysis. The analysis will cover the period from 2008 to 2011. Some reports were unavailable because the final quarter of the year for Target ended January 31, 2012...
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...2011 Annual Report, Target Corporation sales have reached a new high of $68.5 billion in 2011 compared to $65.8 billion in 2010. Cash and cash equivalents are the most liquid assets found within the asset portion of a company's balance sheet. When you look at the balance sheet under the cash and cash equivalents it show Target most recent annual reporting has $1,712,000 cash equivalents for the year 2011.Target Corporation cash and cash equivalents for the years of 2011 are $1,712,000 whereas; in 2010 the company had $2,200,000 in cash and cash equivalents ("Target Corp. (tgt) Statements Of Financial Position, Assets", 2013). Target Corporation had a $488,000 decrease in cash and cash equivalents. This includes short-term investments, accounts and nets receivable, inventory and other current assets. Accounts payable is the money in which a company owes vendors for products and services purchased on credit. Accounts payable is under liabilities and equity on the balance sheet. Target Corporation recent annual report shows that total amount of accounts payable at $9,951,000 ("Target Corp. (tgt) Statements Of Financial Position, Assets", 2013). This is one of the largest current liabilities because of the fact the companies are constantly ordering new products or paying vendors for services or merchandise. Reference: Target Corp. (TGT) Statements of Financial Position, Assets. (2013). Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Target-Corp/Financial-Statement/Assets ...
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...1. Introduction 2 2. Target Company, Peer Company and The Industry 2 2.1 Target Company – Gemini Sea Food LTD 2 2.2 Peer Company – RD Food Bangladesh Limited 2 2.3 The Industry – Food Industry 3 2.4 Type of Business 3 3. Reformulated Balance Sheet and Income Statement 5 4. Analysis of Profitability and Growth 8 4.1 Analysis of Profitability 8 4.1.1 First level decomposition of ROCE 9 4.1.2 Second level decomposition of ROCE 10 4.1.3 Third level decomposition of ROCE 10 5. Analysis of Growth 9 6. Conclusion 10 1. Introduction The report intends to do financial statement analysis, financial projection and valuation of Gemini Sea Food LTD as a requirement of the course. To compare financials results and analysis tools Rangpur Diary & Food Products Limited is used as peer firm. Seven listed companies under Food industry are selected. Financial information of these seven companies will be used as a proxy for industry. 2. Target Company, Peer Company and the Industry 2.1 Target Company – Gemini Sea Food LTD Established in the year 1982 Gemini has supplied highest quality seafood products to customers worldwide. Since the inception Gemini people have believed in “Hygienic Product Healthy Trade” and made it a part of their core values at work. Quality, Delivery Security, Social Responsibility and Respect to Nature are the corner stone’s of Gemini’s Business, which has made Gemini the most admired seafood processing companies in Bangladesh. The plant...
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...Interpreting Financial Results: Walmart vs. Target FIN/571 July 27, 2014 John Kushner Abstract Walmart and Target both are discount retail one stop monster shops, but they each cater to different customers. Walmart, which according to CBS News Money Watch in a November 2012 episode says its customers' average household income ranges from $30,000 to $60,000, hammers its low-price message and focuses on stocking basics like tee shirts and underwear along with household goods. But Target, whose customers have a median household income of $64,000 a year, is known for carrying discounted designer clothes and home decor under the same roof as detergent and dishwashing liquid. Of the two discounters, I prefer Target, I personally name this, my one hundred dollar store. No matter the trip, the minimum I spend per visit is $100 dollars. The purpose of this paper is to perform a horizontal analysis and review Walmart’s financial statements from the past three years and then interpret those results against company historical data as well as industry benchmarks as compared to its biggest competitor, Target. This paper will be interpreting financial results: Walmart vs. Target over the last three (3) years looking at Balance Sheet, Cash Flow and Income Statements. Interpreting Financial Results: Walmart vs. Target For the first part of this assignment and review of Walmart’s finances, I will highlight the...
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...Unit 3.3 Assignment: ROLLS-ROYCE plc. Read the case-study on page 46-47 of the textbook, including Table 3.8 and Table 3.9. Then answer the following questions: Referring solely to Table 3.8, to what extent can it be concluded that the year ending 30-6-08 was a more successful than the year ending 30-6-07? A balance sheet is a document describing the financial position of a company at a particular point in time, by comparing the items owned by the organisation with the amounts that it owes. An income statement is an account showing the income and expenditure of a from over a period of time. Rolls-Royce is the second biggest engine-maker in the UK and this is why that the income statement and balance sheet is increasing in 2008. The profit in 2008 decreased from 680m to 589m and this is due to the fact RR replaced parts and upgraded there aircrafts which accounted for 53% of its total sales in 2008. The gross profit is there revenue minus the sales, this shows how efficiently the business had turn raw materials into the finished product. The gross profit increased from 1453m to 1662m. Total equity is the fund provided to expand the business and purchases fixed assets. The total equity increased in 2008 from 3288m to 3765m this shows that shareholders are willing to put more money into the business for the business to expand therefore the business is improving success. (15 marks) Looking at Table 3.9, explain the changes which have occurred...
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...Quiz ------------------------------------------------- Top of Form Note: It is recommended that you save your response as you complete each question. | Question 1 (4 points) The ____ shows the results of a firm's operations over a period of time, usually one year. Question 1 options: | income statement | | balance sheet | | statement of cash flow | | statement of financial position | Save Question 2 (4 points) Operating expenses include Question 2 options: | marketing-related expenses. | | the cost for independent dealers to prepare for the distribution of the product. | | interest on all loans. | | income taxes. | Save Question 3 (4 points) For the opening day of The Lemonade Kids, MacKenzie and John bought $40 of “premium pink lemonade mix” and paper cups, which constituted their Question 3 options: | cash balance. | | fixed assets. | | inventory. | | cost of goods sold. | Save Question 4 (4 points) After their first day of their The Lemonade Kids, MacKenzie and John’s profits were $45. However their cash increased by only $30 because their _____ also increased. Question 4 options: | debt | | inventory | | accounts payable | | accounts receivable | Save Question 5 (4 points) Raw materials and products held by the firm for sale constitute _____. Question 5 options: | accounts payable. | | accounts receivable. | | cost of goods. | | inventories. | Save Question...
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...Investments BUY: ABERCROMBIE AND FITCH Analyst: Steve Bright The Midriff Exposed March 26, 2004 • We recommend ANF as a hold. Our price target of $34.23 is 6% below the current share price. • We believe the stock is fairly valued and should be purchased on dips. We remain cautious on the shares longer-term; we desire continued strong execution from Hollister and await ANF’s new concept store rollout. Source STOCKVAL • ANF continues to build cash and recently announced it will begin to pay a dividend in 04. Though beneficial to shareholders, we prefer to see management reduce prices with the intent to increase foot traffic and potential sales. We believe several competitors have begun to price apparel below that of ANF to increase their ROE. With regard to the dividend payment, we would have preferred for management to use the cash to repurchase shares, although the dividend is likely to appeal to value investors. • We believe ANF will continue to grow due to the overall structure of the industry. As teen spending continues to grow in proportion to the population, we believe there will be consolidation in the specialty retailers to leverage operations and brand recognition. Based upon the cash position of ANF, we expect ANF to be an acquirer of companies. • ANF has demonstrated the ability to successfully execute on its key critical success factors, including inventory management. We believe...
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...Business Analysis Part II The following business analysis considers the financial health, technological advantages, the effects of globalization, and a benchmarking analysis of Wal-mart in comparison with comparable organizations in their industry segments using United States companies. Competitors in the supercenter market are Target and Meijer, whereas Costco is a key competitor in the member warehouse-style market. Only Costco (Costco Annual Report, 2011) is currently competing in the international marketplace. Financial Health Wal-Mart Stores Incorporated (WMT), Target Corporation (TGT), and Costco Wholesale Corporation (COST) are public held companies with stock traded on the New York Stock Exchange (NYSE) and required to file an Annual Report on forms 10-K annually with the Security and Exchange Commission (SEC) (Stock Quotes, 2012). Meijer’s is a family-owned private company and not subject to SEC filings of their performance and is excluded from analysis because their financial data is not available (At 75, Meijer family still controls retailers destiny, 2009). Income Statement The latest income statements submitted by Wal-Mart, Target, and Costco to the Security and Exchange commission all reported millions in profit (Stock Quotes, 2012). Wal-Mart’s consolidated net income for its fiscal year ending January 31, 2012 is $15,699 million (Walmart Annual Report, 2012), which equates to a $4.54 net per share income, and resulted in $1.46 paid in dividends for...
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...Snapple – The best stuff on earth Snapple was founded in 1972 East Meadow NY as Unadulterated Food Products. It had a huge growth spurt with case sales doubling in 1990. Sales reached $516Mand had a return of 195.8%. Quaker Oats & its Strategy Quaker Oats is an American food conglomerate. The story of Quaker Oats’ success is one of a company led by a strong management effectively growing in the face of increasing competition and economic cycles through internal and inorganic growth. Its non-beverage businesses were growing only at 1% in real terms. It had a 10% growth target set, and that target was accomplished through acquisition strategy. To maintain this growth rate the management felt that Snapple presented highly compatible product offering. Overall, the company has used a growth through acquisition strategy and diversification. Diversity is necessary to secure the whole company’s survival. In addition, Quaker Oats thought they had the resources to make Snapple expand internationally. Gatorade Acquisition - A Huge Success Purchase of Gatorade in 1983 (as part of the Stokely-Van Camp purchase) catapulted Quaker to the top of an untapped beverage segment that, to this day, dominates 80% of the market. This deal was vital to Quaker’s long-term success. The company attributed success to its global sales and marketing team. Quaker acquired Gatorade in 1983 for $238M. Since it experienced a 22% compound growth rate with US Sales going from $122M in 1984 to $1.2B...
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...NORWEST CORPORATION P 1.0 Answer Question 1 Assume an immediate and sustained 1 percent across-the-board rise in interest rates. Based on a review of Exhibit 3, discuss how one would use interest rate-sensitivity gap information to estimate the impact of rising interest rates on the earnings of Norwest Corporation. Interest sensitivity gap is used to measure how the interest change will affect the asset sensitivity and liability sensitivity. Asset sensitivity or positive gap occurs when the interest sensitive asset and interest sensitive liability is greater than zero. However, liability sensitivity incur when interest sensitive asset and interest sensitive liability is less than zero. Table Exhibit 3 | Within 6 Month(‘000) | Within 6 Month- 1 Year(‘000) | 1 Year – 3 Years(‘000) | 3 Years – 5 Years(‘000) | After 5 Years(‘000) | Interest-sensitive asset | 31822 | 5841 | 8666 | 4798 | 28705 | Interest –sensitive liabilities | 32811 | 4505 | 7492 | 3480 | 31544 | Total Asset | 31822 | 5841 | 8666 | 4798 | 28705 | | | | | | | Dollar GAP | (4849) | (3317) | (990) | 1194 | - | Below show the formula that using to estimate the impact of rising of interest rates on the earnings: ∆NIIexp = GAP X ∆iexp Where, ∆NIIexp = the expected change in net interest income over a period of time from some base amount. GAP = cumulative GAP over the interval through the end of the period of time ∆iexp = the expected permanent change...
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...organizations in the industry. When reviewing Costco Wholesale’s income statement/balanced sheets they showed a total net income of 609,000 from continuing operations and liabilities for the quarter, according to assets quarterly data for the period ending 8/2012. The cash equivalents, marketable securities, accounts receivables, other inventories and, current deferred income taxes accounting for other earnings. Costco had total current assets of 13,526,000 for this quarter. The income balance sheet for the period was 609,000 with the total revenues year to date of 1,709,000 (www.costcowholsale.html.com). A review of Wal-Mart/Sam’s club, Costco’s number one competitor, showed a quarterly balance for operating income after depreciation for the same period was 6,698,000 and income total revenue of 114,296,000 for the quarter (Wal-Mart, NYSE.WMT). A review of Target’s finance and total revenue is compared to Costco and Sams Club/Wal-Mart; however, Target does not operate the same type of warehouse store as its other competitors, but they do operate something similar in Target Super Stores. Target has over stores 1700 stores in 49 states and more than 240 Super Target stores. Balance sheets and income statement had a net income for continuing operations for the quarterly period of 704, 4000 (Target, NYSE.TGT) and a total net income that was the same. In reviewing these organizations balance/income statements for the third quarter these company’s appear to be profitable. The economic...
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...Amira Alickovic, Cory Vance, Kaitlyn Shaw, Kelly Cheng Professor Elrod - Accounting 3309 The University of Texas at Arlington General Information 1. What is the name of the corporation you will analyze? Target 2. The corporate headquarters is located in what city? Minneapolis, Minnesota 3. When is the fiscal year end of the corporation? Jan. 31, 2015 4. What are the primary products or services of the corporation? * Clothing * Shoes & Jewelry * Baby & Kids * Home * Furniture & Patio * Electronics & Office * Movies * Music & Books * Sports * Fitness & Outdoors * Toys & Videogames * Beauty * Health & Pharmacy * Grocery * Household & Pets * Gifts * Parties & Holiday 5. The common stock prices over the last five years: 6. Describe the trend in the price of the common stock over the last two years. The trend in the price of the common stock over the last two years started off in a downward trend but started moving up in 2014. 7. Did the stock trade within a narrow or wide price range? The stock trade was narrow in price range. Internet Information The Corporate Website 1. What is the internet address of the corporation? www.target.com 2. Which items appear in the part of the website that relates to investors? * 2014 Annual Report * Dividend & Stock Split History * Proxy Statement * Stock Quote * Financial News * Stock Chart * Upcoming...
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...Running head: FINANCIAL ANALYSIS OF TARGET & J.C. PENNY Financial Analysis of Target & J.C. Penny Linda S. Mosquera Columbia College University Abstract There are two companies which stand out as being optimal candidates for selling out to CB&M. I collected each company’s financial statements and analyzed five years’ worth of data provided via the company’s annual reports specifically pertaining to the balance sheet and the income statements. Interpreting a few specific financial ratios, I will provide an in-depth analysis in determining which of the two companies is healthier financially. Introduction Financial ratios are classified according to the information they provide. Some of the frequent used ratios are: liquidity ratios, P/E ratio and profitability ratios. I will provide an in-depth analysis in determining which of the two companies is healthier financially. Liquidity Ratios Target J. C. Penny J. C. Penny is a chain of mid-range department stores based out of Plano, Texas. It was started by James Cash Penney under the initial partnership with Thomas Callahan and Guy Johnson, who owned dry goods stores called Golden Rule (J.C. Penny). Penney took ownership of the store around 1907 when Callahan and Johnson dissolved their partnership. “It currently operates “approximately 1,100 stores and at jcpenney.com, customers will discover a broad assortment of national, private and exclusive brands to fit all shapes, sizes, colors and wallets”...
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