De-Mystifying Bank Financial Statements

This three-part series on Managing Bank Financial Performance is intended for those who may be exploring bank financial statements and concepts for the first time or would like a refresher in advance of the live sessions. Terms, metrics, and concepts presented are consistent with the curriculum of the live session and may provide students the “head start” they desire. Each of the webinars can be viewed on its own to explore the themes within - the materials are developed to stand alone for targeted review.  However, it is recommended that they be viewed in sequence as each refers to and builds upon concepts explored in the preceding series.

Series 1: Bank Balance Sheets – 20 minutes

The first installment of the series introduces key components of the Balance Sheet for banks, reviewing segmentation therein.  The material covers concepts such as earning assets, liquidity, and funding mix, finishing with an overview of equity capital and financial leverage.  From this webinar, students will be prepared to dive deeper into balance sheet strategies and key ratios in the live session at PCBS.

Series 2: Bank Income Statements – 20 minutes

Building upon the first series, the second installment explores the composition of the Income Statement for banks.  Key segments of the Income Statement (also called Profit and Loss, or P&L) are reviewed and ratios central to the profitability model presented in the live session are introduced.  The webinar culminates with an introduction to bottom line profitability metrics, Return on Average Assets (ROA) and Return on Average Equity (ROE).

Series 3: Bottom Line Profitability and Equity Capital – 20 minutes

Completing the series, the final installment delves into the relationship between profitability and capital.  Beginning with an overview of ROA and ROE trends, the impact of financial leverage is expanded to several perspectives on Equity Capital and management strategies therein.  At the completion of this webinar and through the full series, incoming PCBS students will be prepared to dive into the principles of the ROE profit model and concepts of Enterprise Risk Management presented in the live session.

Finally, each first-year student at PCBS will be granted access to S&P Global Market Intelligence.  For those eager to dive into the financial statements of a bank prior to the session, it is highly encouraged that the S&P platform is explored – just search for and locate the bank, then navigate to the Financials and Valuations section. Alternatively, bank Call Reports are publicly available through the Uniform Bank Performance Report portal: FFIEC UBPR Home Page.