Fundamentals of Bank Financial Statement Analysis

Fitch Learning
Training overview
2 days
2,495 USD, 1,995 EUR, 1,695 GBP
English
Classroom / Public
Next start date: 12/2/2019 - New York City
Start dates
Amsterdam
12/2/2019   (English)
1,995 EUR
New York City
12/2/2019   (English)
2,495 USD
London
12/9/2019   (English)
1,695 GBP

Course description

Fundamentals of Bank Financial Statement Analysis

This interactive course provides participants with an understanding of the key performance indicators and main balance sheet and income statement accounts for banks.

This course gives 16 CPD hours.

Who should attend?

This course is designed for analysts who have limited or no experience in the analysis of financial statements for financial institutions.

Training Content

Day One

Analytic Overview

Structured approach to analysis
  • Defining CAMELS within the context of overall bank analysis
Types of financial institution
  • Key activities and products of financial institutions: credit products, trading and investing, services and funding
  • Business models and key drivers of performance
  • Relating the business to the balance sheet and income statement: differences between balance sheets of different types of bank and non-bank financial institution
  • Major balance sheet and income statement components
  • Exercise: building a balance sheet for banks and non-bank financial institutions

Business Risk

Asset quality

The aim of this section is to consider the asset quality of a bank and use key ratios to understand a banks’ business risk.

  • Statement logic and accounting: types of credit risk, on and off balance sheet, accounting for problem impaired loans
  • Loan quality: portfolio analysis, impaired/problem loans (past due, non accrual and restructured loans)
  • Reserve adequacy: provisioning levels, allowance, charge offs and recoveries
  • Trading and investments: securities and derivatives portfolios
  • Local and international benchmarks for key ratios and performance indicators
  • Exercises:
    • Problem loan definitions
    • Matching asset quality ratios
  • Illustration case study: Asset quality ratio analysis

Sensitivity to market risk

The aim of this section is to introduce market risk and the concept of value at risk.

  • Statement logic and accounting: valuation techniques for investments and derivatives - fair value through income statement, available for sale, held to maturity; SFAS 157 disclosures
  • Risk in the securities and derivatives portfolios
  • Value at risk and other measures of market risk: advantages and disadvantages
  • Illustration case study: Market risk disclosure

Earnings

The aim of this section is to look at earning streams for banks and use key ratios to understand the costs and income dynamics of banks.

  • Statement logic and accounting: types of income and expense, impact of earnings accrual and asset impairment policies, core and non-core earnings
  • Key drivers of earnings: Net interest margin, fees and commissions, trading
  • Ratios to measure quality and diversity of income, cost control, provision burden
  • Local and international benchmarks for key performance indicators
  • Exercise: Matching earnings ratios
  • Illustration case study: Performance risk ratio analysis

Day Two

Financial Risk

Liquidity and funding

The aim of this section is to consider the funding sources available to banks, the key drivers of liquidity and use key ratios to understand liquidity and funding at banks.

  • Statement logic and accounting: funding sources, on and off balance sheet treatment for securitization
  • Funding stability and different sources: deposits, commercial paper, repos, inter-bank lines, senior and subordinated bonds, common and preferred stock
  • Key drivers of liquidity: volatility of liabilities, quality and liquidity of assets, contingency funding needs
  • Local and international benchmarks for key liquidity and performance indicators
  • Exercise: matching liquidity ratios

Capital adequacy

The aim of this section is to appreciate the various types of capital and use key ratios to assess the adequacy of a banks’ capital.

  • Statement logic and accounting: types of capital, reported book equity, adjusted common equity and hybrid capital
  • Key drivers of capital: earnings, asset valuation, capital raising
  • International and local capital regulation: Basel I and II; Basel III changes
  • Risk weighted assets: Basel I vs. Basel II approach
  • Key ratios: tier one and total capital ratios, leverage, core capital and other measures
  • Local and international benchmarks for key performance indicators
  • Exercise: financial statement analysis
  • Illustration case study: Assessing financial risk

About Fitch Learning

Fitch Learning - Financial Training in the Americas

Fitch Learning

Part of the Fitch Group, Fitch Learning partners with clients to enhance knowledge, skills and conduct. With centers in London, New York, Singapore, Dubai and Hong Kong, we are committed to questioning and understanding client needs across the globe and...


Read more and show all training delivered by this supplier

Request info

Fill out your details to find out more about Fundamentals of Bank Financial Statement Analysis.

  Contact the provider

  Get more information

  Register your interest

Contact info

Fitch Learning


 Show phone number
www.fitchlearning.com


Reviews

Julius Eshobarr
(4)
Positive experience. Interesting, intriguing and eye-opening. Sparked a lot of interest as a newcomer to finance.
Kazumi Sashida
(5)
Excellent !! I wish I had taken this course much earlier! Great mix of theory, case study, drills and Q&A
Thomas Darby
(5)
Very useful and informative course and very well delivered with expert knowledge demonstrated throughout
Request Information

Have a question about this course? Fill out this form and the provider will get in touch with you shortly

 
View again
 
Supplier Directory
Join our Supplier Directory to:
- Gain Traffic
- Get Noticed
- Showcase Your Services
- Free Listing Available