Foundational Financial Analysis
INVESTMENT
DURATION
START DATES
DELIVERY MODE
ASSESSMENT
COURSE OVERVIEW
This course is designed to provide commercial bankers with a comprehensive introduction to financial analysis. It aims to equip participants with the skills and knowledge to interpret and evaluate financial statements, perform financial ratios, and make informed credit decisions. The curriculum covers a broad spectrum from the basics of financial statements to advanced topics such as industry analysis, projections, and emerging trends in FinTech.
COURSE OBJECTIVE
TARGET AUDIENCE
New entrants to the field of commercial banking. • Current commercial bankers looking to strengthen their financial analysis skills. • Financial analysts and consultants aiming to understand the nuances of commercial banking.
Industry Analysis • Understanding industry-specific risks and performance metrics • Benchmarking: Comparing a company’s performance against industry peers Projections & Forecasting • Basics of financial projections • Sensitivity analysis and scenario analysis • Assessing the sustainability of a company’s growth Special Topics in Commercial Banking • Working capital financing • Term loans and capital expenditure financing • Trade financing solutions • Syndicated loans and consortium lending Case Studies • Real-world applications of financial analysis in banking decisions • Assessing complex loan requests Emerging Trends & Technologies • Introduction to FinTech and its impact on commercial banking • Role of big data and analytics in financial analysis Regulatory and Ethical Considerations • Regulatory environment for commercial banks • Ethical considerations in financial analysis and credit decisions
WHAT YOU WILL STUDY
Introduction • Overview of commercial banking • Role and importance of financial analysis in commercial banking Basics of Financial Statements • Introduction to financial statements: Balance Sheet, Income Statement, and Cash Flow Statement • Understanding key financial terms and metrics Financial Statement Analysis • Horizontal analysis and Vertical analysis • Ratio analysis: • Liquidity Ratios: Current ratio, Quick ratio • Solvency Ratios: Debt to equity, Times interest earned. • Profitability Ratios: Net profit margin, return on assets, Return on equity • Efficiency Ratios: Asset turnover, Inventory turnover, Receivables turnover • Market Value Ratios: Earnings per share, Price to earnings, Dividend yield Cash Flow Analysis • Importance of cash flow in banking • Operating, investing, and financing activities • Cash flow forecasting Credit Analysis • The five C’s of credit: Character, Capacity, Capital, Collateral, and Conditions • Commercial loan assessment process • Role of covenants in credit agreements
LEARNING OUTCOMES
By the end of the course, participants will be able to: • Demonstrate proficiency in interpreting balance sheets, income statements, and cash flow statements. • Calculate and analyse key financial ratios to evaluate a firm’s liquidity, solvency, profitability, efficiency, and market value. • Perform comprehensive credit analysis using the five C’s of credit and other established frameworks. • Differentiate between industry-specific risks and apply relevant benchmarks to evaluate a company’s performance against its peers. • Construct and evaluate financial projections, employing sensitivity and scenario analysis tools. • Stay updated with emerging trends in the commercial banking sector, understanding the implications of FinTech, big data, and regulatory changes on financial analysis. • Make informed decisions about granting credit, setting terms, and monitoring existing loans using a combination of quantitative and qualitative analysis techniques.
