Bank Industry Primer and Basic Bank 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.”

In this course, you will:

• Delve into their unique financial statement terminology and drivers
• Build a basic 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
• Look at 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.

Who should attend? Financial analysts, investment advisors/consultants, portfolio managers, traders, private equity, asset management and hedge fund associates, investors, compliance staff/auditors and others interested in learning bank financial modeling.