Bank Industry Primer + Basic Bank Modeling with Wall Street Training (Ended)
Bank Industry Primer
In the first part of this course, we will present a detailed primer on analyzing banks and their financial statements. Balance sheet based companies, such as banks, play by different rules and methodologies based on the unique nature of their business. Focus is placed on our Commercial Banks financial statements primer which dives deep into a bank's unique financial statement terminology and drivers. Understand how to analyze a bank 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". Start with a brief overview of the main banking functions (commercial, investment, asset management) and quickly turn to the quality of book of loans and analysis of net vs. gross charge-offs vs. provisions, etc. Understand the critical credit ratios and capital adequacy analysis as well as Tier 1 and II definitions and Basel II impact. Crystallize the impact of Interest Rates, importance of term structure and credit spreads and implications on a bank's profitability. Examine best practices in calculating net interest income via average asset and liability balances on the income statement. Dive into an analysis of Balance Sheet assets & liabilities and articulate the drivers of EPS growth. Wrap up by analyzing valuation parameters: key banking valuation multiples (PE, PEG, Book Value, ROE). Build a basic, streamlined bank financial model that builds upon the bank terminology in our Bank Industry Primer course. Before diving deep into the complex nuances of our Advanced Bank Financial Model, really solidify your understanding of developing the logic in loan losses and provisions and its impact on the rest of the larger bank financial statements.
Banking Industry Overview
- Overview of main banking functions (commercial, investment, asset management)
- Quality of book of loans and analysis of net charge-offs
- Critical credit ratios and capital adequacy analysis; Tier 1 and 2 definitions and Basel II impact
- Impact of Interest Rates, importance of term structure and credit spreads
Banking Financial Statement Terminology & Drivers
- Net Interest Income Margin (Interest Expense net against Revenue not COGS)
- Analysis of Balance Sheet Assets & Liabilities
- Drivers of EPS growth
- Valuation Parameters: key banking valuation multiples (PE, PEG, Book Value, ROE)
Basic Bank Financial Modeling
In the second part of this course, we will build a basic, streamlined bank financial model that builds upon the bank terminology in our Bank Industry Primer section. The goal of the financial modeling portion is to solidify your understanding of developing the logic in loan losses and provisions and its impact on the rest of the larger bank financial statements. Essentially we will perform quick back-of-the-envelope calculations for key Balance Sheet items such as Interest Earning Assets and Interest Bearing Liabilities, which yield Net Interest Income. Estimate and calculate capital adequacy ratios to wrap up your summary simplified basic bank model.
Prerequisite: Intermediate proficiency using Excel and a solid grasp of basic accounting fundamentals are required.
Members - $495
Non-Members - $595
Student-Members - $125 (Limited seats available)
CFA Institute Qualified Activity: Eligible for 7 credit hours
Attire: Business Casual (no denim)
Menu: Chef's Choice (vegetarian meal available upon request)
Registration: Register online below
Hosted by: Education Advisory Group
8:30 am - 9:00 am: Registration
9:00 am - 5:00 pm: Seminar
To maximize the educational value of this program, we strongly recommend that you have an intermediate understanding of Excel. Lack of basic Excel skills will impede your ability to effectively acquire and implement the techniques and shortcuts that are presented in this program. Bring your PC laptop with a working USB slot and Microsoft Excel installed. Macs may not be as effective. Laptops will not be provided.
Instructor: Hamilton Lin, CFA
President and Founder - Wall Street Training
Hamilton Lin, CFA, President and Founder of Wall St. Training, has a broad background in investment banking and mergers and acquisitions. His responsibilities have included analyzing, structuring and negotiating mergers & acquisitions. Lin custom-builds and develops all of the financial and merger models that he uses which have become corporate and departmental standards. Lin has closed over two dozen transactions and has diverse industry experience ranging from oil & gas to insurance to asset management and related sectors.
About Wall St. Training:
Wall St. Training provides professional financial training solutions to Wall Street through hands-on classroom training and customized corporate training programs for financial analysis which take a hands-on, interactive, practical, non-theoretical approach. Wall Street Training's clients include Bank of America/Merrill Lynch, Credit Suisse, Citigroup, Deutsche Bank, Fidelity, GE, Goldman Sachs, JPMorgan, Morgan Stanley, TPG, and many others. For more information: www.wallst-training.com and www.wstselfstudy.com.
*Special Notes Regarding Fees:
Student rate only available to students approved as a Student-Member of CFA Chicago for 2013-2014. Credit card is required to guarantee ALL reservations, no function tickets accepted. Day-of-event registrations accepted on-site only if applicable and space available. There is a $10 surcharge for walk-ins. Visa, MasterCard, American Express, Discover and Diners Club are accepted. Cancellations accepted until 5:00pm, June 10.
Members of any CFA society may attend at the CFA Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.
CFA Institute CE Qualified Activity
This program qualifies for credit under the guidelines for the CFA Institute Professional Development Program.
Content shared during CFA Society Chicago programs is not, and nothing in it should be construed as, an offer, invitation or recommendation of any specific financial services company or professional, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, any securities in any jurisdiction. By registering for and attending this event, you acknowledge that any photographs that may be taken are the property of CFA Society Chicago and give your consent to their use in CFA Society Chicago's online and print business communications and marketing.