Bank Modeling Valuation

Analytic Overview: The aim of this section is to set out the parameters of how to build and run a flexible and robust financial model which can be used to run numerous scenarios. Building Financials: The aim of this section is to build financials within the model using normalised historics for the inputs. Building the balance sheet: The objective of this section is for the participants to build the basic balance sheet structure of their forecasting model. Deriving the income statement: The objective of this section is to take the balance sheet for each forecasting period derived above and use it to establish an income statement for each accounting period. Key Ratios and Measuring Key Performance Indicators (KPI’s): The objective of this section is to provide participants with the ability to model typical bank KPI’s from the financial statements they have built in the previous sections. These ratios can then be used to evaluate the integrity of the model, facilitate interpretation of the model and enable comparison against peer institutions. Bank Valuation and Cost of Equity: The aim of this section is to review the bank valuation and equity outputs of the model and review quality controls.