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BFF2401 Commercial Banking and Finance
Written Assignment (10%)
Semester 1, 2021
Due date: Tuesday 4th May 2021, before 11AM (Week 9)

This individual assessment task is designed to test a student’s achievement of objectives 1–6.
The total mark is 20 marks (weight: 10% of total assessment). Word limit: 1,200 words
(±10%), excluding references and appendices.
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Topic: Essay on Banks’ Performance Analysis
The DuPont framework is an important analytical tool for evaluating the effects of various
financial and operational factors on banks’ Return on Equity (ROE).

a. Based on the theoretical DuPont model, explain three (3) strategies that banks can
adopt to increase their ROE. Elaborate any risk implications or shortcomings
associated with each strategy.
Guide: 300 words, 6 marks.

b. Find annual (yearly) data to calculate and graph Return on Equity, Return on Assets,
and Leverage Multiplier for the top four Australian banks over 2015-2020.
Based on your graphs, conduct trend and peer analyses for each of the three ratios, and
provide insights into these banks’ operational, investment, and funding strategies. These
insights must be based on in-depth research into the banks’ annual reports or media
releases.
Guide: 500 words, 10 marks. You must provide three (3) graphs, one for each ratio.
Your graphs must be presented in the main text of the essay together with the
discussion, while your data and calculated ratios must be shown in the appendix.
Note: Appendices are not included in the word limit.

c. Can you forecast the future trend in ROE for Australian banks given the current
economic climate? Give reasons to support your answer.
Guide: 200 words, 4 marks.

Note: Approximately 200 words are recommended for introduction and conclusion
together. Subheadings should be used to separate parts a, b and c.
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Suggested data source for part (b): FitchConnect database (access via Monash library
database website), or banks’ annual reports published on their website.
Instructions to students
You are required to retain a copy of the assignment until results are finalised.
Any query by email must be sent from your Monash student email address
@student.monash.edu. Any other email addresses will not be accepted.
Referencing requirements
Work submitted for assessment must be consistent with the guidelines set down in the Q
Manual, which is the faculty's student guide for producing quality work on time. Copies of
this manual can be accessed online at:
https://www.monash.edu/business/5931328906e0c/pdf_file/current-students/qmanual.pdf
Chapter 3 of the Q-Manual provides instructions on how to properly cite and list references
for an assignment.
Faculty style guide
Work submitted for this assessment must follow the ESSAY style as outlined in the Faculty
Q Manual.
Estimated return date
Assignment marks and feedback will be available on Moodle at the end of Week 11.
Academic integrity
In order to ensure the academic integrity of your submission and to deter others from copying
your work, your submission may be processed by text matching software such as Turnitin.
For additional information, the University's Student Academic Integrity Policy can be found
at URL:
http://www.policy.monash.edu/policy-bank/academic/education/conduct/student-academic-
integrity-policy.html
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Submission date and time
The due date of the assignment is Tuesday 4th May 2021, before 11AM (Week 9).
All assignments must be submitted online via Turnitin (link to be posted under the
“Individual Assignment” section), as detailed below.
Online submission: The online submission via Turnitin has TWO parts,
• Part 1 for the completed coversheet file (template available on Moodle), and
• Part 2 for the assignment file (.docx).
IMPORTANT: You are allowed to resubmit your assignment via Turnitin as often as you
wish until the assignment due date. A similarity report of around 15-20% is acceptable,
anything above will be investigated, penalised, or failed depending on the nature of
similarity.
Part 2 of the submission must be a .docx file (other file formats may not be compatible for
Turnitin). The name of your .docx file should conform to the following format:
• S12021 – Your First name and Last name and Student ID - Tutorial day and time –
Your tutor’s First name and Last name.
For example: S12021 – Jane Smith 1234567 – Thursday 4PM – Glenn Emery
Students who use Apple MacBook to prepare their assignment must convert their final
.pages file to .docx before submission. Otherwise, pages. files cannot be read by Turnitin and
will not be accepted for grading.
Applications for extension of time (special consideration)
• A student whose performances within the semester assessment or final exam have
been affected by an acute illness or other exceptional cause may apply for special
consideration. Further information regarding eligibility, supporting documentation,
application deadlines, and an application form can be found here.
• You need to apply no later than two University working days after the due date of
the affected assessment or activity, using the online form.
Penalty for late lodgement
Unless an extension or special consideration has been granted, or otherwise specified in the
learning management system, students who submit an assessment task after the due date will
receive a late-submission penalty of 10 per cent of the available marks in that task. A further
penalty of 10 per cent of the available marks will be applied for each additional day (24-hour
period), or part thereof, the assessment task is overdue.
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LATE submission: Late assignments must also be submitted via the same Turnitin link. No
hard copies will be accepted. Late penalties are based on the submission time recorded on
Moodle. Tasks submitted more than seven days after the due date will receive a mark of
zero for that task. For further details, please refer to Monash University Marking and
Feedback Procedure.
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Marking criteria