This Emerging Market Bank Modelling & Valuation covers the key elements of modelling and valuing the activities of an emerging market commercial bank, including the main elements of retail and commercial banking.
After an overview of the key elements of bank analysis, participants will build an integrated financial statement forecast model, projecting asset and liability balances, interest rates and spreads for key assets and liabilities, using industry best practices.
A real-world emerging market case study and financial filings will be used to extract key information. Participants will learn industry-specific forecast methodologies and apply them in a financial model.
The course will allow participants to understanding how the Basel II, 2.5 and III compliance requirements effect bank regulation, including minimum capital requirements, the supervisory review process and disclosure. The course will allow participants to calculate risk-weighted assets, tier one and tier two capital and to model a bank income statement using the balance sheet as a driver.
Once the participants have built a financial model, they will use this to value the case study bank using cash flow based and multiple based valuation techniques.
The participants will consider the type of cash flow model to be used for each case study bank, the various cash flow models that could be used and how issue such as terminal value should be treated.
The interaction with the regulatory capital requirements and how the upcoming Basel III regulations will affect capital requirements will be considered.
Case Study: The participants will use a variety of case studies and exercises during the three days, based on emerging market case study company.
Participants will be required to bring a laptop and a calculator to the course.
Case Study I: Participants analyse the liquidity and maturity of a case study balance sheet
Case Study II: Participants analyse the income statement of a case study company and calculate various key ratios for the business
Case Study III: Participants are introduced to the bank forecasting model and review its structure, linking up the balance sheet and income statement
Case Study IV: Participants build out the case company model incorporating the various core activities into the model
Case Study V: Participants model risk-weighted assets and tier one and tier capital for a case company
Case Study VI: Participants complete the case company model incorporating a cash flow forecast and various regulatory ratios
Case Study VII: Participants build error proofing techniques and scenario/sensitivity analysis into the case company model and produce efficiency, operating and financial ratios for the case company
Case study VIII: Participants build a dividend discount valuation for the case company
Case study IX: Participants build a residual income valuation for the case company
Case study X: Participants build a cash flow to equity valuation for the case company
|Training Course||Training Course Summary|
|Valuing A Business||Get an overview of the accounting approach with the accounting measure of performance and value, and the problems involved|
|The Modelling for M&A||Master the modelling of integrated financial statements|