Introduction to Bank Financials
Information
A one day highly participative programme which equips participants to discuss the business models of commercial and investment banks; to interpret their financial statements; to use key ratios to evaluate performance; and to outline the basics of risk management, asset/liability management and capital adequacy in the post-banking crisis environment. The intended participants are senior sales and relationship managers who wish to enhance their ability to hold knowledgeable conversations with banking clients about current business issues
Participants are assumed to be familiar with basic capital markets concepts and terminology; and with the essentials of double entry accounting. The course will be based largely on the financial statements of a major UK banking group.
Schedule
Session One
Income statement
Refresher on basic accounting concepts: P&L, balance sheet, equity
Fundamental nature of banking – risk and maturity transformation
Income statement line by line
Segmental performance analysis
Key ratios: net interest margin, cost/income ratio, impairment ratio
Session Two
Balance sheet
Balance sheet assets and liabilities line by line
Overview of financial instruments classification
Non-performing loans and impairment allowances
Key ratios: loans/total assets; loans/deposits
Session Three
Leverage, returns and the banking crisis
Growth of bank leverage
Securitisation, the 2007/8 banking crisis and the legacy environment
Key ratios: Return on assets, return on equity, leverage ratio
Session Four
Risk management
Asset/liability management: interest rate management, liquidity management
Risk management: credit risk, market risk, operational risk
Basel capital adequacy rules, risk weighting of assets and capital definitions
Course Conclusion
Register interest
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.