Bank Modeling and Valuation

For further information on dates or how to enrol on to our courses, please call +44 (0)20 7549 2591 or alternatively email our bookings team.

Course details

This is a brand new course being offered for the first time in the Asia-Pacific region.

Modeling fundamentals for banks

Participants build their bank modeling skills through the use of a simple bank model.  This model contains the key components common to all bank projection models.  Participants complete a forecast model of a bank before stress testing their assumptions. Finally, the model is documented and checked.

Key topics:

  • Modeling steps for banks
  • Balance sheet
  • Income statement
  • Risk-weighted assets
  • Regulatory capital requirements
  • Capital surplus or shortfall
  • Ratio analysis
  • Producing a simple bank model
  • Key performance ratios
  • Model documentation and integrity checking

Forecasting and modeling for banks

Participants will learn how to model and integrate the balance sheet, income statement and regulatory requirements of a real bank using Excel. In addition to learning the steps necessary to build a bank financial model, participants will also cover how to build models accurately and efficiently through a series of best practice modeling rules. Participants also learn how to stress-test the assumptions used, to check their work efficiently and to document it.

Key topics:

  • Modeling commercial banking activities
    • Forecasting the balance sheet
    • The loan book
    • The trading book
    • Funding requirements and mix: deposit vs. wholesale funding
    • Growth in funds under management
    • 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
    • Forecasting regulatory capital
    • Risk-weighted assets
    • Required capital under Basel III
    • Available capital under Basel III
    • Liquidity requirements and stable funding requirements
    • Forecasting dividends using a payout ratio and / or minimum capital requirements
  • Ratio analysis
    • Key performance ratios

Bank valuation

Three valuation methods are examined and modeled in this session, namely: Free cash flow to equity, comparable companies analysis and sum or the parts valuation. The advantages and disadvantages of each method are considered.

Key topics:

  • Understanding the differences between corporate valuation and bank valuation
  • Free cash flow to equity model
    • Present value of future dividends
    • Cost of equity for banks
    • Terminal value: a review of potential approaches, limits and benefits
    • Intrinsic multiples based on RoE, growth and reinvestment rates
    • Sensitivity analysis
  • Banking trading multiples
    • P/BV, P/E, dividend yield
  • Sum-of-the-parts valuation
    • Key drivers by business
      • Retail banking
      • Corporate banking
      • Asset management
      • Investment banking
    • Valuation considerations and trading multiples for sub-sectors

“It’s great to have access to the AMT online platform. I found the videos and quizzes really useful to refer back to after my public course. The videos in particular were simple and easy to understand.” ~ analyst, private equity firm

Virtual Classroom

  • 9:00am – 5:00pm AEDT

  • 2 day ( non-exam )

  • Virtual Classroom

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

View video to get a flavour of the course

What is a Virtual Classroom

Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT's Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer's ability to see a selection of their participants' faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.

Course trainers


AMT reserve the right to cancel or postpone sessions or change content if registrations are insufficient to continue 2 weeks prior to the scheduled commencement date. Registrants will be given at least 5 business days’ notice of such changes.