INTRODUCTION
There are four major banks in Australia. Two out of the four major banks in Australia are chosen to be compared and analysed by the ratios calculated from the information given from the 2014 annual reports. The two competitive banks are ANZ and Westpac. In the same industry of the bank world, comparing and analysing the ratios is useful to determine the performance. Using this idea, the ratios calculated will show which bank will operate better mainly focusing on their profitability. Naturally banks are needed to face with different kinds of risks. Therefore by operating and maximising this sort of matter, the banks will show evidence of what risks they will overcome.
By providing a better bank reputation, each bank is required to handle the risks more effectively so that more profit is made whilst minimising those risks that can affect the bank negatively. Furthermore this report will also fulfil the comparisons of the bank's performance by analysing the 16 ratios and discussing the impacts of the risks that will affect the performance of liquidity risk, credit risk and operational risk in comparison within ANZ and Westpac.

CONCLUSION
Overall, for a financial institution to perform well, both banks need to manage all the risks and also consider other risks as a combination. By comparing and analysing the ratios calculated for ANZ and Westpac, it is evident that Westpac performance as a bank is significantly superior to ANZ. To some extent, ANZ has an advantage towards Westpac. This is due to ANZ having a low interest expense and a high burden ratio compared to Westpac. By comparing ANZ's and Westpac's efficiency ratio, percentage ratio of Westpac is slightly lower than ANZ therefore states that Westpac operates somewhat more efficiently than ANZ.

In conclusion, in order to increase income and reduce expenses, both ANZ and Westpac will continue to progress in a positive way and work hard toward their finances. To elaborate this, increasing the spread and reducing the burdens will overall direct the banks performance, either better or worst. But most of all both ANZ and Westpac need to reach a financial stability to continue to grow.