Banks Financial Statement Analysis

Overview

This course provides an in-depth understanding of how to analyze and interpret the financial statements of banks. Participants will learn to assess the accounting and valuation of financial instruments, loan loss provisions under IFRS 9, and the impact of trading and hedging activities. The course covers the treatment of assets, liabilities, and equity, including regulatory capital reconciliation such as CET 1, Tier I, and Total Capital. Through practical analysis, delegates will gain the skills to evaluate a bank’s financial health, performance, and risk profile, enabling informed decision-making and regulatory compliance.

Objective

• Review the accounting principles and valuation methods applied to a bank’s financial statements.
• Understand the banking book and the application of IFRS 9 for loan loss impairment, including the expected credit loss methodology, through financial statement analysis.
• Analyze the accounting treatment of bank financial instruments, including amortized cost, FVTPL (Fair Value Through Profit or Loss), and FVTOCI (Fair Value Through Other Comprehensive Income).
• Review trading and hedging activities involving bank derivatives under the IFRS 9 framework.
• Examine bank liabilities measured at amortized cost and FVTPL, including fair value considerations for own credit.
• Understand the treatment of shareholders’ equity under IFRS and its reconciliation to regulatory capital components