Produced by the Knowledge Center, expert training from S&P Global Market Intelligence
A dramatic 2017 has made way for a challenging year ahead. Who can predict what will transpire this year and beyond? No doubt, banks will have to tackle a plethora of challenges linked to the increasing role of EU regulators. In particular, the issue of regulatory/supervisory convergence in the Eurozone – will this help to foster cross-border consolidation (something that has been called for in the banking sector specifically)? Add to this disruption in models, technologies and accounting principles (IFRS9), with new competitors on the horizon and political uncertainty in major European hubs. Now is the time, more important than ever, to develop the key skills for analyzing banks.
European Bank Financial and Credit Analysis gives you the foundational framework to help you succeed in the endeavor. We will teach you frameworks for analysing the industry and individual institutions from the top down, and from the bottom up. You'll learn what lenses to apply and how to apply them.
Coursework for the programme is a balanced mixture of formal teaching, open questions, brainstorming, presentations and exercises, plus real life examples and case studies. Participants work in groups, with the room arranged in cabaret style. You can expect to rotate around the room and be looked to for a high degree of participation.
There is an additional benefit as well; European Bank Financial and Credit Analysis provides an opportunity to meet peers from across the financial services industry., including investment banks, asset managers and commercial banks.
Session One – Introduction to Bank Financial Accounting and Reporting
Session Two – European Bank Credit Analysis
Choose the session(s) that fit your needs:
We divide this three-day course into two sessions: an introductory day-length programme, followed by a more intensive two day programme for industry practitioners who already have a firm grasp of the basics of bank analysis.
The one-day session, Introduction to Bank Financial Accounting and Reporting, is intended for those with little or no knowledge of financial institution financial statements. You will examine the income statement and balance sheet in detail and see how the profile of the statements differs, depending on the type of financial institution. You will also work through the requirements and typical contents of a bank’s annual report. This session is scheduled just prior to the two day course.
The two-day session, European Bank Credit Analysis, provides delegates with the necessary analytical tools to undertake effective analysis of banks. The programme assumes a basic knowledge of the structure of banks’ financial statements and of the key ratios used in the analysis process. We recommend that participants without this knowledge, or those who feel they require a refresher, first attend Session One: Introduction to Bank Financial Accounting & Reporting.
Delivery is characterised by numerous practical exercises, examples and real life case studies. Participants can expect a high degree of participation and interaction.
- Demonstrate familiarity with a bank’s financial statements and key ratios
- Understand key accounting standards and how a bank’s ratios are impacted by management estimates in applying these standards
- Evaluate the risks a bank faces from the points of view of investors, creditors, counterparties and regulators
- Analyse banks from the “top-down”, identifying potential macro/industry factors that impact performance
- Apply frameworks to perform a “bottom-up” analysis of individual banks’ unique strengths and weaknesses
- Undertake effective analysis of a bank's financial health, stability, and general credit worthiness as a borrower or counterparty
Session One, Introduction to Bank Financial Accounting and Reporting, assumes little or no knowledge of the financial statements of banks or other financial institutions.
Session Two, European Bank Credit Analysis, presumes familiarity with accounting and finance concepts, as well as a working knowledge of banking business models and bank financial statements.