Reading & Analyzing a Bank’s Financial Statements

Banks have unique classes of balance sheet and income statement line items that other companies won’t have. In “Reading & Analyzing a Bank’s Financial Statements” we will explore those differences and review real-life examples of different sized banks. This course also includes a model so you can practice calculating and analyzing financial ratios specific to banking and learn how to interpret a bank pyramid of ratios.

Reading & Analyzing a Bank’s Financial Statements Learning Objectives

Explain how a bank’s balance sheet is laid out and how a bank makes money off its balance sheet.
Read a bank’s income statement and understand how it differs from a typical income statement.
Calculate and analyze financial ratios specific to banking.
Use a bank pyramid of ratios to get a more comprehensive view of a business.
Calculate and interpret bank regulatory ratios.

Who Should Take This Course?

This course is designed for entry-level investment bankers, entry-level equity or credit research analysts, corporate development professionals, and financial planning and analysis (FP&A) professionals working in the banking sector.

Courses we recommend you take in advance

Financial Analysis Fundamentals
Accounting Fundamentals
Banking Products and Services

Reading & Analyzing a Bank's Financial Statements

Approx 3.5h to complete

100% online and self-paced

What you'll learn

Multimedia

Course Introduction

Enjoy a Free Preview Free Preview Introduction Free Preview Course Slides Download Learning Objectives Free Preview Comparing Balance Sheets Free Preview Small Credit Union Example Free Preview Large Bank Example Free Preview Bank Financial Analysis - Colorado Capital Bank Template Download Balance Sheet Demonstration Free Preview End of Free Preview Free Preview Interactive Exercise 1

Reading a Bank's Income Statement

Net Interest Income Net Interest Income Download Net Interest Income Demonstration Interactive Exercise 2 A Small Credit Union Income Statement Large Bank Income Statement Example Income Statement Demonstration Interactive Exercise 3

Calculating and Analyzing Bank Financial Ratios

What Is Best Practice Financial Analysis Critical Trips for Effective Financial Analysis Equity Ratios Equity Demonstration Return on Average Assets Return on Average Assets Demonstration Operating Efficiency & Provision for Credit Losses Operating Efficiency & Provision for Credit Losses Demonstration Interactive Exercise 4

Interpreting a Bank's Pyramid of Ratios

The Bank Pyramid Bank Pyramid Demonstration

Understanding Bank Regulatory Ratios

The Impact of Leverage Part 1 The Impact of Leverage Part 2 Why Do Banks Hold Capital Basel Regulatory Ratios Tier 1 Capital Tier 2 Capital Risk Weighted Assets Calculating Risk Weighted Assets Download Risk Weighted Assets Demonstration Regulatory Ratios Demonstration

Course Summary

Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Financial Modeling & Valuation Analyst (FMVA®) Certification

Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
Career Prep Investment banking and equity research, FP&A, corporate development

Accounting for Financial Analysts Specialization

Skills learned Accounting, Financial Analysis, Reading Financial Statements and more
Career prep Financial Planning & Analysis (FP&A), Corporate Development, Investment Banking, Private Equity, Equity Research, and more.

What Our Members Say

Great course! Concise and deep at the same time.

Valentin Zhurba

Its a good class when Scott Powell Teaches it He makes complex topics into something digestible. Top class teacher

Diego Cortes Padilla

Great value for money I loved the content, the pace of the tutorial and hands-on, real-life experience of it

Albert Ayirebi Acquah

Good teacher leads me to use excel shortcut as well👍

John Wisnu Alwi

Great course Provided great insight on understanding bank financial statements. I really enjoyed this course

Rachael Larkins

A Treasure of Knowledge Made Easy to Understand

The content of this course is absolutely outstanding! It's impressive how complex concepts related to banks' financial statements are broken down in such a clear, well-structured manner, making them accessible and easy to grasp. Simplifying these topics while ensuring learners gain valuable insights in a time-efficient way is not an easy job. Scott does an incredible job of keeping the material engaging, which made me eager to keep learning. Thank you so much for this enlightening experience!

Mohammed Al Zahrani

Frequently Asked Questions

If you haven’t found your answer from our FAQ, please send us a message. What are the requirements to take the courses?

All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements

Can I download the Excel files and financial modeling templates for the course?

Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.

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Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.

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How do I earn my certificates?

Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.

How are the exams conducted?

Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment

Can I email the instructor if I have questions?

While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.

Will these courses help me advance my career?

Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.