Bank forecasting & valuation intermediate
Course
In Banbury
Description
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Type
Course
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Location
Banbury
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Class hours
3h
This course enables participants to structure and complete a full forecasting and valuation model of a real commercial bank. Economics of commercial banking. Modeling performance. Regulatory capital overview. Bank valuation: discounted cash flow
Facilities
Location
Start date
Start date
About this course
None
Reviews
Course programme
- Economics of commercial banking
- Modeling performance
- Regulatory capital overview
- Bank valuation: discounted cash flow
- Overview of the banking sector: product, strategies and trends
- Commercial banking vs. Investment banking
- How do banks make money?
- The macro-structure of banks'' financial statements
- Key balance sheet captions and valuation criteria
- The balance sheet drives the P&L
- Forecasting the loan book
- Forecasting the trading book
- Forecasting funding need and mix: deposit vs. Wholesale funding
- Growth in funds under management
- Net interest income and margin: impact of the yield curve, credit spreads and asset liability mismatch
- Non-interest income: fee growth, trading gains volatility, securitisation fees
- Earnings quality and earnings sustainability
- Operating costs
- Forecasting loan impairment through the credit cycle
- Tax & dividends & completing the model
- Review of banks'' regulatory capital under Basel I
- Discussion of impact of Basel II
- Review of Gordon growth model
- Banking trading multiples: P/BV, P/E, dividend yield
- Dividend discount model vs cash flow to equity model
- Cost of equity for banks
- Terminal value: review of potential approaches, limits and benefits
- Straight perpetuity formula and sensitivity to growth rate
- Reality check of forecasts
- Key performance ratios
- Key trading multiples
- PE ratios, P/BV ratios
- Impact of the credit crisis and bank failures/rescues on bank valuations
Bank forecasting & valuation intermediate