Bank forecasting & valuation intermediate

Adkins Matchett & Toy

Course

In Banbury

Price on request

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Description

  • Type

    Course

  • Location

    Banbury

  • 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

Banbury (Oxfordshire)
Linden House, 55 South Bar, OX16 9AB

Start date

On request

About this course

None

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Course programme

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
Economics of commercial banking
  • 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
Modelling banks'' performance
  • 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
Regulatory capital requirements
  • Review of banks'' regulatory capital under Basel I
  • Discussion of impact of Basel II
Bank valuation: discounted cash flow
  • 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
Summary
  • 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

See related categories

Bank forecasting & valuation intermediate

Price on request

The best Banking and Financial Services courses

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