ANALYSING BANK PERFORMANCE. A self-study approach to learning for FIG staff.

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1 ANALYSING BANK PERFORMANCE A self-study approach to learning for FIG staff. 1

2 Analysing Bank Performance This training is designed for those working in coverage, counterparty credit risk management/ equity research responsible for identifying business opportunities, assessing the credit standing / investment potential of banks. The training begins with an overview of banking and covers products, risks and regulations through to the CAMELS framework for bank specific financial statement analysis. This training is for those who have a firm understanding of accounting but only limited experience analysing banks. Webinar: The learning journey eworkbooks: Series 1-3 Provide an overview of the training Preview eworkbook content and interaction Put into context the importance of self study and pre-course work. Series 1: Foundations of banking & risk Series 2: Regulatory, risk & performance Series 3: Bank financial strength Online quizzes and end of series tests The blended learning curriculum combines our eworkbook series with interactive tailored classroom training. Self study: Pre-course assignment Classroom Session Intensive Bank Analysis Case study based on an actual / proposed client transaction / investment assessment Applications based workshop: Structured approach Counterparty / debt / equity perspectives Market dynamics and regulatory impact Risk & financial drivers of performance Continuing Professional Development Follow up assignments / webinars Classroom training e.g. Market risk management solutions for FI clients 1

3 Introducing Adeva s Banking & Risk eworkbook Series Adeva s Banking & Risk elearning Series are interactive eworkbooks that prepare learners to understand the business of banking and evaluate both the financial dynamics of banks and the risk profiles of their activities. With content relevant to those working in relationship management, risk functions or as equity analysts, the eworkbooks can stand alone as a selfpaced study course or form part of a blended learning programme. Series 1: Foundations of Banking & Risk introduces the main business models, core products and key risks of banking. Series 2: Regulatory, Risk & Performance Drivers gives insight into the governance and regulation of risk and how it impacts bank performance. Series 3: Bank Financial Strength covers the CAMELS framework for benchmarking key indicators of performance and financial strength 2

4 Why our eworkbooks consistently get outstanding feedback Our eworkbooks are designed to be highly interactive and engaging. Concepts are presented in a logical and structured manner with explanations illustrated by real bank disclosures that are up to date and relevant. Built-in quiz questions are provided regularly to test understanding while the topic is fresh in the participant s mind. With 25+ years experience in devising effective training on bank risk management and analysis, we have applied our expertise to create elearning that is structured, focused on key topics and relevant to the learner Theory is explained and illustrated in an engaging format Real-life examples demonstrate practical applications Interactive tests check knowledge and reinforce understanding THEORY EXAMPLE TEST 3

5 eworkbook Catalogue Click on each series for further content information Foundations of Banking & Risk SERIES 1 Regulatory, Risk & Performance Drivers SERIES 2 Bank Financial Strength SERIES 3 01 Banking Overview 04 Key Performance Measures 08 Accounting Principles 02 Core Products 05 Bank Capital Management 09 Capital Adequacy 03 Key Risks 06 Liquidity and Funding 10 Asset Quality 07 Enterprise Risk Management 11 Management 12 Earnings 13 Liquidity Self-paced study Real life examples Knowledge and understanding checks 14 Sensitivity to Market Risk 4

6 Foundations of Banking & Risk SERIES 1 Introduces the main business models, core products and key risks of banking. 01 Banking Overview 02 Core Products types of banks; how different business models are reflected in a bank s financial statements. include loans; deposits; derivatives; repurchase agreements; securities; contingent liabilities. 03 Key Risks covering credit, counterparty, market, operational, liquidity and regulatory risks. 5

7 Regulatory, Risk & Performance Drivers SERIES 2 Designed to give experienced risk professionals more insight into the governance and regulation of risk and how it impacts performance Key Performance Measures Bank Capital Management Liquidity and Funding Enterprise Risk Management introduces key analytical issues and core ratios used to evaluate bank performance through the application of the CAMELS framework. covers key definitions and types of capital: book, market and regulatory capital (with optional advanced content available to extend learning for specialists). Basel III principles of sound liquidity management and key ratios: net stable funding and liquidity coverage. risk governance, regulatory and compliance risk; identifying, measuring and monitoring risks. 6

8 Bank Financial Strength SERIES 3 CAMELS framework to benchmark key indicators of performance and financial strength 08 Accounting Principles 09 Capital Adequacy 10 Asset Quality 11 Management 12 Earnings 13 Liquidity includes loan accounting; held-to-maturity investments; fair value; availablefor-sale. measurements of capital adequacy, sustainability, risk weighted asset intensity and capital vulnerability. measurements of the quality of asset portfolios: loans, securities and derivatives. Includes loan portfolio growth and concentration; reserve adequacy; market, credit and counterparty risks in securities and derivatives. analysis of management strategy, risk management, corporate governance and shareholder support. Including market indicators, such as price/book and CDS prices. measurements of diversity and stability of earnings and cost control. Focus on net interest, other revenues and cost / income as well as overall measures, eg. ROE, ROA, RORWA measuring diversity and stability of funding sources as well as sufficiency of liquidity and alternative back up sources to cover stress outflows. 14 Sensitivity to Market Risk measuring both trading book and banking book market risk. Focus on VaR, trading revenue sources and exposure to rates and FX in the banking book. 7

9 ABOUT US Adeva Partners specialises in providing highly tailored training solutions and consulting services in credit, risk and corporate finance to clients in the financial services industry. We work in partnership with our clients in the design, development and delivery of classroom training, blended learning solutions, and more to enable a strong analytic and risk culture in tandem with a sound do business approach. Our clients include many global systemically important financial institutions, developments banks and we have been trusted to provide curriculum training for one of the world s leading banking supervisors. Risk and Regulatory Training Banking and risk: A graduate induction programme Enterprise risk management Risk management in banks Liquidity risk management Operational risk management Credit portfolio management Banks: Regulatory and risk drivers of performance Basel III / Dodd Frank: implications and opportunities RWA Management & Regulation Insurance: Solvency II implications Corporate Finance Acquisition and leveraged finance Market risk management: derivative solutions from a corporate perspective Identifying and devising supply chain solutions Debt structuring solutions Origination for distribution: DCM and private placements Business development: an analytical approach to uncover opportunities Financial Institutions Analysis Covering banks, insurance, funds, Nonbank FIs Credit assessment: foundations/ intermediate / advanced Macro economic, sovereign and regulatory impact Accounting and financial analysis Structuring exposures Warning signs and lessons learned Market risk management: derivative solutions for FI s Business development: an analytical approach to uncover opportunities Corporate Credit Analysis Covering multinationals, mid and small cap, SME, emerging market companies Corporate credit applications Financial statement analysis Forecasting and stress testing Credit analysis and debt structuring Writing effective credit applications Warning signs and lesson learned Restructuring problem credits Relative value: Fixed income credit analysis