*With many businesses now working from home, we have introduced virtual learning so we can continue to deliver high quality training to the financial community as we accommodate this new way of working. Since 2003, Fitch Learning has been delivering virtual learning programs to clients and learners. Building on this extensive experience, we are now able to offer a range of public courses in a live online environment, whilst ensuring you will get the same value as you would in our classroom courses.

FUNDAMENTALS OF BANK FINANCIAL STATEMENT ANALYSIS

This course can either be taken in a classroom environment or live online. Get in touch to find out more.

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.

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