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Public Course

Bank Modeling and Valuation

Regular price $1,330.00 USD
Regular price Sale price $1,330.00 USD
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  • Description
  • What you'll learn
  • What is a Virtual Classroom
  • Prerequisites
  • Description
  • This is a brand new course being offered for the first time in the Asia-Pacific region. The course will be taking place virtually in Sydney's timezone - 9am to 5pm AEST.

  • What you'll learn
  • Modeling fundamentals for banks

    Participants build their bank modeling skills through the use of a simple bank model.  This model contains the key components common to all bank projection models.  Participants complete a forecast model of a bank before stress testing their assumptions. Finally, the model is documented and checked.

    Key topics:

    • Modeling steps for banks
    • Balance sheet
    • Income statement
    • Risk-weighted assets
    • Regulatory capital requirements
    • Capital surplus or shortfall
    • Ratio analysis
    • Producing a simple bank model
    • Key performance ratios
    • Model documentation and integrity checking

    Forecasting and modeling for banks

    Participants will learn how to model and integrate the balance sheet, income statement and regulatory requirements of a real bank using Excel. In addition to learning the steps necessary to build a bank financial model, participants will also cover how to build models accurately and efficiently through a series of best practice modeling rules. Participants also learn how to stress-test the assumptions used, to check their work efficiently and document it.

    Key topics:

    • Modeling commercial banking activities
      • Forecasting the balance sheet
      • The loan book
      • The trading book
      • Funding requirements and mix: deposit vs. wholesale funding
      • Growth in funds under management
      • Forecasting the income statement
      • Understanding the income statement drivers
      • Net interest income and margin
      • Non-interest income
      • Forecasting loan impairment through the credit cycle
      • Operating costs
      • Tax
      • Forecasting regulatory capital
      • Risk-weighted assets
      • Required capital under Basel III
      • Available capital under Basel III
      • Liquidity requirements and stable funding requirements
      • Forecasting dividends using a payout ratio and / or minimum capital requirements
    • Ratio analysis
      • Key performance ratios

    Bank valuation

    Three valuation methods are examined and modeled in this session, namely: Free cash flow to equity, comparable companies analysis and sum or the parts valuation. The advantages and disadvantages of each method are considered.

    Key topics:

    • Understanding the differences between corporate valuation and bank valuation
    • Free cash flow to equity model
      • Present value of future dividends
      • Cost of equity for banks
      • Terminal value: a review of potential approaches, limits and benefits
      • Intrinsic multiples based on RoE, growth and reinvestment rates
      • Sensitivity analysis
    • Banking trading multiples
      • P/BV, P/E, dividend yield
    • Sum-of-the-parts valuation
      • Key drivers by business
        • Retail banking
        • Corporate banking
        • Asset management
        • Investment banking
      • Valuation considerations and trading multiples for sub-sectors
  • What is a Virtual Classroom
  • Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. 

  • Prerequisites
  • There are no prerequisites for this course



            Who should attend?

            New hires who have joined the firm late and missed the in-house program

            Individuals looking to fill a knowledge gap

            Experienced bankers looking to refresh their technical skills

            Teams employed in financial strategy roles from non-banking corporations

            Graduates preparing to interview for a role in the finance sector

            Students at business school and looking for a career in finance

            What to use

            You need to use a Windows-based laptop for the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.

            Ask our trainers

            If you have any questions about the course content, you can email our experienced trainers for any further questions

            Contact a trainer

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