$40.00 $399.00
Tailored for FIG professionals in banking, equity research, and corporate finance, this course provides comprehensive training on bank financial statements, key drivers, and regulatory frameworks.
Course Objective
At completion, trainees will have built a fully integrated financial statement model, RI model and DDM
The analysis of banks is different from that of most other types of industries. As a result, analysis requires adjustments and different approaches from traditional valuation methodologies. Wall Street Prep’s bank modeling course will guide you step-by-step through a bank’s financial statements, unique drivers and regulatory framework. You will build a fully integrated financial statement model, a residual income (RI) model, and a dividend discount model (DDM) using Valley National Bank as a case study.
What You Will Learn
SECTION ONE: BUILDING A BANK FORECAST MODEL
- Build an advanced bank forecast model, projecting asset and liability balances, interest rates and spreads for key assets and liabilities, using industry best practices.
- Learn to effectively forecast the loan portfolio, investment securities, and deposits.
- Understand the modeling and forecasting of allowances for loan losses and net charge offs (NCOs).
- Model regulatory constraints and analyze effects on leverage, capital ratios, and profitability.
- Forecast net interest income (NII), asset yields, funding costs and interest earning assets (IEA) and liabilities (IBL) using an approach that takes into account typical disclosure gaps, is internally consistent, and avoids common modeling pitfalls.
- Build an advanced bank forecast model, projecting asset and liability balances, interest rates and spreads for key assets and liabilities, using industry best practices.
- Learn common forecast approaches for the non-interest income and expenses such as fees, and compensation.
- Identify the most appropriate “plugs” in a bank model to ensure the model balances, and address circular reference issues in the model.
SECTION TWO: BUILDING A BANK VALUATION MODEL
- Using the results derived from the forecast model, build a residual (excess returns) income model.
- Build an adjusted dividend discount model using the prevailing beset practices for banks (not the same as non-banks).
- Analyze how regulatory capital constraints effect valuation.
- Develop assumptions about return on equity (ROE), risk weight assets (RWA), cost of equity, and minimal capital ratio that are internally consistent for a multiple stage model.
- Compare the other valuation approaches such as comps and DCF and identify strengths and limitations of each approach.
Course Highlights
Real World “On the Job” Investment Banking Training
The Bank Modeling Self Study Program bridges the gap between academics and the real world to equip industry professionals with the practical financial skill set they need on the job. The program utilizes a case study format, as students follow their tutorial guide alongside the Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build complex financial & valuation models the way they would on the job.
Support Center
Upon enrollment, students gain 24-month free access to Wall Street Prep’s Online Support Center, where they receive answers to questions, free downloads, and important updates.
Prerequisites
This course does not assume a prior background in Bank & FIG Modeling. However, those who enroll should have an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
About the author
Wall Street Prep was established in 2004 by investment bankers to train the financial services industry. Our instructor-led and online training programs bridge the gap between academia and the real world by teaching the practical skills needed to succeed on the job. Our global faculty is a group of 90+ highly specialized investment bankers, private equity and investment professionals.
Wall Street Prep
RELATED COURSES
VIEW ALL-
Course – The City Traders$12.00
$99.00Course – The City TradersUpdate 10 May 2024The City Traders program is designed to help you gain an edge and advance in your trading journey. If you’re dedicated to succeeding as a funded trader, this program is tailored for you.
Add to wishlist -
Make 1K To 1.5K A Week With The Most Profitable Skill Ever – Swingtradinglab$170.00
$1,498.00Make 1K To 1.5K A Week With The Most Profitable Skill Ever – SwingtradinglabUpdate 08 Feb 2024Discover the strategies and mindset shifts that transformed my consistent losses into annual trading profits in the millions.
Add to wishlist -
Biotech Sum of the Parts Valuation – Wall Street Prep$25.00
$199.00Biotech Sum of the Parts Valuation – Wall Street PrepUpdate 11 May 2024Ideal for investment professionals in biotech, this course teaches industry-standard methods for constructing biotech-sum-of-the-parts valuations.
Add to wishlist -
Trading Blueprint – Tradingriot$21.00
$199.00Trading Blueprint – TradingriotUpdate 28 Oct 2022Trading Blueprint gives you trading tools to compare deals across multiple online brokerages. You will know when you’re getting the best price on the stock you want. By focusing on just a few factors (volume, market capitalization, and PE ratio) Trading Blueprint will help crypto investors select which currencies to trade and at what prices they should buy or sell.
Add to wishlist -
Trading with the Time Factor – vol 2 – Frank Barillaro$39.00
$595.00Trading with the Time Factor – vol 2 – Frank BarillaroUpdate 19 Sep 2022All LevelsVolume 2 of Trading with the Time Factor by Frank Barillaro will let you learn how to foresee future market tops and bottoms years in advance.
Add to wishlist -
Ultimate Guide to Trading a Portfolio Margin Account – Simpler Trading$99.00Ultimate Guide to Trading a Portfolio Margin Account – Simpler TradingUpdate 21 Sep 2022All Levels
Ultimate Guide to Trading a Portfolio Margin Account by Simpler Trading sheds light on the effective techniques and strategies for higher profitability.
Add to wishlist