New! Bank Financial Modeling

Balance sheet based companies, such as banks, play by different rules and methodologies based on the unique nature of their businesses. Understand how a bank model works and why the standard financial analysis and valuation methodologies that apply to most companies do not apply to industries that “use money to make money.” Delve into their unique financial statement terminology and drivers. Build a bank financial model that addresses the key drivers of profitability, cash flow, and valuation. Examine best practices in calculating net interest income via average asset and liability balances on the income statement. Forecast select key line items of a bank’s balance sheet. Examine different ways to approach estimating provisions for credit losses. Calculate risk weighted assets and Tier I and II capital ratios.

Prerequisite: Intermediate proficiency using Excel and a solid grasp of basic accounting fundamentals. Corporate Valuation Methodologies and Basic Financial Modeling Using Excel are recommended, but not required.
Note: Bring your PC laptop with Microsoft Excel installed and a CD-ROM drive. Mac applications may not be as effective.

“Energetic instructor…kept my attention.”—Ashley Lannguist, Trust Company of the West