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Analysing Banks Financial Statements
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Analyse the bank's profit and loss statements and balancesheet and identify value drivers on this 4–day course.

  • Course Instructor

    The Course Director is an executive with over 25 years experience in banking and consultancy; he is a former member of the executive boards of ING Europe, BHF- BANK and Bayerische Vereinsbank in New York. He was responsible for managing large banking networks, corporate finance and investment banking activities geared towards small and medium sized companies.



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A comprehensive 4-day course for banking experts that will help you to:

  • Understand the principles of IAS/IFRS accounting
  • Apply the different rules and regulations to the financial statements of banks
  • Analyse the P/L and balance sheet
  • Understand the important accounting and valuation principles
  • Forecast trends and developments
  • Apply ratio analysis to identify risks and chances
  • Extract the key data for bank valuation

Who should attend:

  • Managers in the accounting, controlling and finance departments
  • Professionals in accounting firms
  • Analysts in banks, investment funds or private equity houses
  • M&A and advisory specialists active in the banking industry
  • Portfolio Managers and Investment Analysts
  • Banking and Strategy Consultants
  • Lawyers and accountants

Course features

The course applies to professionals and managers who are involved in the accounting, controlling or analysis of financial statements of banks.

They are introduced to the latest developments in accounting and representing financial statements in accordance with
the IAS/IFRS principles. The key issues of valuing securities, loans, derivatives and hedges arediscussed in examples.

The methodologies of book accounting and fair value principle are explained. The key value drivers for banks are highlighted and transformed in valuation methodologies for financial institutions. The training will use teaching methods based around lectures, case studies, practical exercises and class room discussions.

The course will use real life case studies and examples to develop delegates’ understanding of all aspects of wholesale-, retail- and asset management banking valuation. Participants will learn to apply various methodologies of valuing banks, understand their different results and their successful application to real life situations.

Course Background

The global financial crisis, the collapse of major financial institutions and an unprecedented volatility in the credit and financial markets have highlighted the importance of bank balance sheet analysis. This course provides allparties interested in analysing and understanding the financial statements of banks, a comprehensive overview of the most important trends and developments in bank reporting.

The programme starts with an introduction to the key principles of IAS/IFRS accounting principles and policies; the major disclosure requirements and most recent developments will be discussed. The difference between book valuation, accrual accounting and the fair value methodology will be described. In the second part, an in depth understanding of the asset side of the balance sheet will be developed. Particular emphasis will be laid on the treatment of financial instruments, securities, loans and hedge accounting. Delegates will learn how to apply and forecast the credit cycle and the related provisions for credit losses.

The discussion of the liability side will focus the accounting principles regarding long-term liabilities, derivatives and the different equity positions. The difference between nominal shareholder funds,
regulatory and economic equity will be explained and key items as “Revaluation reserves” are interpreted.

On the third day, the major elements of the P&L statement are introduced with an particular emphasise on interest income, understanding gap analysis and mismatches, forecasting fee income and appropriate provision levels. The different expense categories will be described. Finally, the cash flow statement will be developed out
of the operating, non- operating income and the changes in assets and liabilities.

On the last day, delegates will translate their accounting knowledge into financial ratio analysis in order to assess the strength and weaknesses of a financial institution. They will apply heir knowledge to the principal valuation techniques for banks.