Beginner's guide: Banking Business & Balance Sheet Analysis

Bank Analysis: Practical training on Important metrics that you need to know while analyzing banking business and stocks

4.55 (133 reviews)
Udemy
platform
English
language
Financial Modeling & Ana
category
instructor
685
students
3 hours
content
Feb 2024
last update
$39.99
regular price

What you will learn

Practical insight on the intricate world of banking businesses and Learn how to analyze banks

The goal of this course is to give learners exposure to financial statements of banks

Able to make an objective assessment of the strengths and weaknesses of a bank

Understand the risks in the different businesses and products offered by banks and how they are reflected in the financial statements

To analyze the components of bank financial statements and key ratios used in bank analysis

Description

Beginner's guide: Banking Business & Balance Sheet Analysis

Can you imagine an economy without a banking system?

Banks are the backbone of an economy. If they collapse, the entire country eventually collapses. Every person places a significant amount of trust in the banking system. Individuals and companies turn to banks for their funding needs. A nation's ability to assemble its capital effectively depends on them.

This is why banks are relevant during all economic cycles and makes the banking sector one of the most profitable sectors for investment.

Across the globe, banks occupy a substantial portion of the overall stock market, and hence, they probably form at least some part of the investment portfolios of equity investors. And if you are talking about S&P 500 in the USA, where approx. 11% weightage is from the financial sector or an emerging market like India, where a huge 40% weightage is only from financial services; the banking sector is an important one for any financial market or portfolio.

Investing in banks requires a careful analysis of financial data. Checking a few general ratios is not enough and needs to be focused on the framework specifically designed to analyze the efficiency of banks.

However, analyzing banks is very different compared to analyzing a Manufacturing company. Unlike non-financial firms, wherein metrics like gross margin, working-capital cycle, debt to equity, etc., are essential criteria to consider, banks altogether have different metrics. To analyze a bank's financial statements, one must first have a clear understanding of these metrics.

This course will guide you on how you can analyze banking stocks in a simple and easy-to-understand language.

What skills will you gain by taking this course?

In this course, you will learn what exactly a bank is, understand banking through a bank balance sheet, how is a balance sheet balance when transactions are made, what happens to the balance sheet when customers default, and Detailed insight on Equity, Return on equity, financial instruments, REPO, fair value methodology, goodwill, deposits, etc. Basel accords and important ratios like Capital Adequacy Ratio, Gross & Net NPA. Understand the relation between NII, NIM, and NPA and other important analysis metrics.

After completing this course, you can analyze any bank of your choice.

If you are a banking aspirant or working in the financial sector or a business or stock analyst, this course will make you a pro in banking business analysis in no time.

So, if this sounds pretty lucrative to you, then hurry up and enroll in this course.

Content

Introduction

Introduction

Banking Business

Banking Business 1
Banking Business 2

Income statement and Balance Sheet

Income statement and Balance Sheet

Understanding banking through bank balance sheet

Building a Bank
How is A Balance sheet Balanced
HQLA
What Happens to the Balance Sheet When Customers Default?
Equity
Return on Equity

How did growing the balance sheet lead to the financial crisis of 2008?

How did growing the balance sheet lead to the financial crisis of 2008?

Diving into a bank balance sheet

Financial Instruments
JP Morgan Chase’s balance sheet
Cash and Cash Equivalents
The amortized cost & fair value
Repurchase agreement (Repo)
Reverse Repurchase Agreement (Reverse Repo)
Trading assets
Loan
Goodwill
Deposits
Short-term borrowings & long-term debt
Trading liabilities
Accounts payable & other liabilities
Beneficial interests issued by consolidated VIEs

Shareholder's equity

Common stock and additional paid-in-capital
Retained earnings
Preferred stock and accumulated other comprehensive income (OCI)

What is Liquidity

What is Liquidity
Liquidity Coverage Ratio
Workout

Classification of HQLA

Classification of HQLA

What is Leverage

What is leverage?
The amplifying effect of using leverage

Bank performance metrics

Net interest margin
Efficiency ratio
Loan-to-deposit ratio
Net Stable Funding Ratio
Credit loss coverage ratio
Common Equity Tier 1 ratio
Return on tangible common equity

Screenshots

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Reviews

Tipu
February 17, 2023
An in-depth grade gives a deep insight into bank businesses through reading numbers more objectively. Just start the course hope it will serve my purpose
Nirmal
December 16, 2022
best course.... providing good understanding of banking operations and balance sheet analysis in healthy way
K
December 11, 2022
The content of the class: - switches between basic and advanced facets without making a logical connection; - delves into unnecessary detail (e.g. MBS and Lehman demise); - shows numerical examples in Indian numerical system; - riddled with poor pronunciation of key terms (e.g. Basel) Good ideas with poor execution.
Kokila
August 14, 2022
A intensive course on banking financial statement analysis. It will help me to analyse balance sheet of a bank easily.
Priyanka
August 13, 2022
Thanks to the course teachers and other associated with designing such a wonderful and easy learning experience. Appreciation each one of your contribution to make toughest course in easy language.

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4769410
udemy ID
7/6/2022
course created date
8/23/2022
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