Valuing a Financial Institution

Redcliffe Training Associates

Short course

In City Of London

£ 525 + VAT

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Description

  • Type

    Short course

  • Level

    Beginner

  • Location

    City of london

  • Duration

    1 Day

Evaluating Revenue Bases and Pricing Techniques

Would you like to learn the skills needed to value a financial institution? Would this information be of use to you in your career? If so, then this one day course, Valuing a Financial Institution, is for you.

This course will be particularly helpful for executives who work with and need to place a valuation on banks and other financial institutions. The course begins with how to evaluate the revenue base of the institution, then it takes an in-depth look at other aspects of the financial structure, such as the effect of yield curve movements and the impact of transfer pricing.

Students will then consider the risk associated with financial institutions. This course will also cover how the different traditional valuation methodologies may be varied to suit the individual circumstances in each case.

The course also includes the application of EVA and CFROI as evaluation techniques and applies them specifically to financial institutions.

The course is also useful to those who are involved in any type of corporate transaction for financial institutions from an advisory perspective.

As another option, this program can also be delivered in-house for you or your company. Please do not hesitate to get in touch for further details or a quote.

Facilities

Location

Start date

City Of London (London)
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Start date

On request

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Subjects

  • Valuation
  • Corporate Finance
  • Modelling
  • Financial Modelling
  • Pricing techniques
  • Pricing Risk
  • Income Volatility
  • DCF Techniques
  • Transfer Pricing
  • CFROI Valuation Model

Teachers and trainers (1)

Contact us for details Former Practitioner

Contact us for details Former Practitioner

Former Practitioner

Course programme

Participants will be required to bring a laptop with a CD-Rom to the course.

Course Content:

Introduction to FI Valuation

  • Valuation and pricing techniques - perspective
  • Risk and the pricing of risk
  • Differences between financial institution and corporate valuation techniques
  • Income volatility for banks, insurance companies, asset managers, other FI’s
  • Return on equity and Price/BV
  • The relevance of cost of capital
  • Limitations of accounting-based data
  • Problems associated with using traditional DCF techniques for valuing FI’s

Understanding Financial Structure and Risks of Financial Institutions

  • Asset and liability structure of a financial institution
  • Retail banks, investment banks, asset managers and insurance companies
  • Profitability and diversity of income source
  • Structure and management of risks
  • Case study example of European bank illustrating risk profile

Advanced Discounted Cash Flow Techniques

  • Loan portfolio default rates and provisioning policy
  • Concentration and position risks
  • Discounted cashflow value of loan portfolio
  • Discounted cashflow value of on-balance sheet instruments
  • Market risk of derivative positions and impact on value
  • Case study example of valuing a bank’s asset base

Evaluating the FI Revenue Base

  • Diversity of revenue base
  • Margin spread and the effects of yield curve movements
  • Transfer pricing impact
  • Shareholder value added measurement
  • Strategic value management
  • Case study example of adding value through strategic value management

Further Pricing Techniques

  • Comparatives – determination, adjustments and multiples
  • The influence of banking issues
  • Case studies using comparatives to value FI’s
  • Problematic issues in valuation including risk profiles, goodwill
  • The relevance of equity in financial institutions (including CAD and Basel II)
  • Economic Value Added
  • CFROI Valuation Model and the Future

Discounts available for multiple participants:

  • 3-4 participants: 15% discount per participant
  • 5-6 participants: 20% discount per participant
  • 7-8 participants: 25% discount per participant
  • 9 or more participants: 30% discount per participant

See related categories

Valuing a Financial Institution

£ 525 + VAT

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