Question: Company: Bank of Nova Scotia from Canada Competitor:Royal Bank of Canada &Bank of Montreal
1. Undertake a financial and strategic analysis of the firm for the past 10 years:
• Download the annual reports from the firm's web site, enter the figures for the last ten years into an Excel spreadsheet and analyse them. The diverse nature of the companies means that not all the ratios will apply, and students may have to be innovative, and create some ratios of their own. Do NOT simply rely on Aspect Huntley (Fin Analysis) ratio analysis.
• Compare the firm's position/performance with competitors as identified above.
• Use the information up to the last financial year available at the start of the semester for the analysis i.e. if half way through the semester the firm issues another annual report, or announces a takeover or is taken over, or announces a major new initiative; ignore it for the purpose of the assignment.
2. Assess business and financial risks faced by the firm
• Consider risks such as strategic risk, credit risk, credit concentration risk, deposit concentration risk, liquidity risk, capital risk (regulatory risk), foreign exchange risk, market risk and operational risk.
• Include time series and cross-sectional comparative analyses for the firm utilising the competitors selected.
3. Recommend a risk management strategy for the next three-year period:
• Ensure your recommendations are in line with the outcome of environmental, business, financial and competitor analyses conducted.
• Justify how your recommendation will improve the risk management in the assigned firm.