London

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Who should attend the course?

  • New hires who have joined the firm late and missed the in-house program
  • Individuals looking to fill a knowledge gap
  • Experienced bankers looking to refresh their technical skills
  • Teams employed in financial strategy roles from non-banking corporations
  • Graduates preparing to interview for a role in the finance sector
  • Students at business school and looking for a career in finance

Course details

Regulation and Valuation

Regulatory capital is a bank specific topic which is at the core of understanding banks’ business model and valuation. Delegates learn how to quantify regulatory capital available and risk weighted assets. The course concludes with a review of the key valuation methods for banks and delegates complete a dividend discount model of the case bank.

 

Learning outcomes

  • Overview of the regulatory framework
  • Calculation of regulatory capital available: core tier 1, tier 1, and total capital and role of hybrid securities
  • Calculation of risk weighted assets: credit risk, market risk and operational risk
  • Minimum capital ratios and target capital ratios to maintain/achieve target credit rating
  • Additional risk measures: leverage ratios based on common tangible equity
  • Extracting historical and forecasting future capital ratios for case bank
  • Calculating capital surplus/shortfall for case bank
  • Review of bank valuation methods: trading multiples vs. fundamental valuation
  • Bank trading multiples: P/E, P/BV, P/tangible BV and dividend yield
  • The dividend discount model
  • Cost of equity for banks
  • Forecasting potential dividends over explicit forecast period for case bank
  • Approaches to estimation of terminal value
    • Straight perpetuity formula and sensitivity to long term growth rates
    • P/BV and sensitivity to long term growth rates
  • Impact of the Basel III on banks valuation
"I like that the public courses are supported by online training. I can learn at my own pace and time, which has helped increase my confidence in the work that I do." ~ research analyst, global financial institution

Course materials

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:

 

  • printed course binder with copy of the slides
  • laminated summary sheets
  • 24/7 access to AMT Online (AMTO)
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

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