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Please contact us today to discuss the best programme which can help you achieve your objectives.

City Training UK
100 Pall Mall
Saint James
London SW1Y 5NQ
United Kingdom

+44 (0) 203 815 6530

About Us

City Training is a world leading provider of premium public courses, in-house training and courses for universities and schools.

City Training was founded and is currently managed by several ex-investment bankers who are trainers themselves and passionate about training. 

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Bank Valuation Techniques

Thursday 16 – Friday 17 November 2017 London
Price: £1,590 + VAT
Registration close on Friday 3 November 2017

At the end of the training, through a mix of lectures, case studies and financial modelling of a large bank, participants will be able to take the historical of any bank, develop projections and obtain its value based on the main methods used, namely Dividend Discount Model and Trading multiples.

Key Topics

  • Bank’s financial statements namely loans, financial instruments and derivatives
  • Fundamentals of regulatory capital and risk weighted assets
  • Best practice to forecast and model banks
  • Value banks using Dividend Discount Model (“DDM”) and trading multiples 

Who Should Attend?

  • Junior FIG professionals in investment banks
  • Lateral hires FIG professionals
  • Equity Research specialised on banks
  • Junior investment managers covering banks
  • All other interested Finance professionals

Joanna has 10 years of experience in the Financial Institutions Group (FIG) of Deutsche Bank in New York.

Joanna began her career in Investment Banking at Deutsche Bank in New York where she worked in M&A. As an associate, she moved to FIG where she was involved in large public bank takeovers. She completed more than 50 transactions for a combined value of around US$100 billion.

More recently Joanna decided to focus her career on training and teaching. She is a visiting professor at the Wharton MBA programme and trains in the US and Europe on bank-related issues.

She has a Bachelor of Science from the University of Pennsylvania and an MBA in Finance from Wharton.  She also holds « Series 7 » and « Series 63 » US licenses.

Session 1

Financial Statement Analysis for Banks

  • Banks’ financial statements overview
  • Accounting for loans

–      Expected realizable value
–      Credit Issues and collateral
–      Non-performing loans
–      Understanding impairments vs. write-offs

  • Accounting for financial instruments

–      Held to maturity, available for sale and trading financial instruments

–      Fair value and amortized cost accounting
–      Level 1, 2 and 3 valuations
–      Impairments of financial instruments

  • Accounting for derivatives

–      Hedge accounting: fair value, cash flow and net investment
–      Netting derivative assets and liabilities

Session 2

Fundamentals of Regulatory Capital

  • Overview of regulatory framework
  • Overview of Basel I, II and III
  • Overview of calculating available and required capital

–      Common Equity Tier 1 (CET1), Tier 1, Tier 2 and Total capital
–      Key reconciliation items from IFRS Book Equity to CET1: minority interests, deferred tax, changes to investment portfolio, etc.

  • Overview of calculating risk weighted assets (RWAs)

–      Credit risk RWAs
–      Counterparty risk RWAs
–      Market risk RWAs
–      Operating risk RWAs

  • Overview of calculating regulatory liquidity and funding ratios

–      Liquidity risk

  • Key capital ratios

–      Tier 1 and total capital ratios
–      Leverage ratios
–      Liquidity coverage ratios (LCR)
–      Net stable funding ratios (NSFR)

Session 3

Forecasting and Modeling for Banks

  • Modeling banking activities

–      Modeling and forecasting the balance sheet: deposit or loan-driven bank?

–      The loan book
–      The trading book
–      Funding requirements and mix: deposit vs. wholesale funding
–      Growth in funds under management
–      Modeling and 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
–      Modelling and forecasting regulatory capital
–      Risk weighted assets
–      Required capital under Basel I, II or III
–      Available capital under Basel I, II or III
–      Liquidity requirements and stable funding requirements
–      Forecasting dividends using a payout ratio and / or minimum capital requirements

  • Ratio analysis

–      Key performance ratios

Session 4

Bank Valuation

  • Free cash flow to equity model

–      Present value of future dividends
–      Cost of equity for banks
–      Terminal value: review of potential approaches (normalizing key parameters or long-term RoE), limits and benefits
–      Sensitivity analysis

  • Banking trading multiples

–      P/BV and adjustment to BV explained
–      P/E, dividend yield

Please contact us today to discuss the best programme which can help you achieve your objectives.

City Training UK
100 Pall Mall
Saint James
London SW1Y 5NQ
United Kingdom
+44 (0) 203 815 6530