Introduction
Valuation of banks and other financial institutions is crucial yet complicated. Their financial statements are different from those of other organisations. The approach required to model and value is very different and needs specific expertise and knowledge.
Bank valuation is an internal regulatory tool for lenders to view and predict retrievable funds in case of sale of property in a distressed state. Bank valuation is different because the outflow and inflow involve money, and hence, specialised study of this area is required.
This IRES training course will empower you with a complete understanding and knowledge of bank modelling and valuation. Through this course, you will understand, review and execute important aspects of various functions related to bank modelling and valuation.
Duration
10 Days
Who Should Attend
- Strategic management of organisations responsible for taking high-level, growth-related decisions for the organisation
- Managers and executives working in asset management functions
- Investment bankers and officers who should thoroughly understand modelling and valuation processes
- Quality managers and auditors responsible for ensuring adherence to required standards and benchmarks
- Legal officers responsible for inspecting and settling legalities and legal issues of banks and other financial institutions
- Bankers intending to specialise in bank modelling and valuation as careers
- Any other professional interested in knowing more about bank modelling and valuation
Course Level:
Course Objectives
The key objective of this Bank Modelling and Valuation Certification training is to empower professionals to—
- Thoroughly understand all critical features and functions of bank modelling and valuation
- Inspect and improvise on existing systems and processes of bank modelling and valuation, to stay updated with changing demands of the market and existing competition
- Establish robust processes, documentation and systems to sustain business and continuously and frequently value one’s organisation
- Mentor existing professionals to adopt best practices for working in roles related to bank modelling and valuation
- Audit and identify major challenges that could affect bank modelling or valuation and hamper organisational development
- Compete with other certified professionals at a global level, thus fostering career progression and growth
- Contribute to organisational credibility and overall customer satisfaction and security
- Apply modern techniques and technology to enhance the efficiency and quality of bank modelling and valuation processes
- Define various roles along with their key responsibilities and key performance indicators to bring about transparency and ensure that modelling and valuation happens as per the required standards and benchmarks
- Analyse financial statements and devise strategic plans for business development and long-term business planning
Course Outline
Module 1 – Objectives of Financial Modelling
- Profitability planning
- Liquidity planning
- Credit planning
- Valuation of companies
- Valuation of financial instruments
Module 2 – Steps to Building a Financial Model
- Start with historical facts
- Isolate parameters
- Identify cost behaviours
- Determine inter-relationship between parameters
- Provide a range for all parameters
- Scenario analysis
Module 3 – Financial Statements and Their Analysis
- Balance sheets
- Income sheets
- Cash flow statements
- Statements of shareholders’ equity
Module 4 – Top Financial Models
- Three statement model
- The discounted cash flow model
- Merger model
- Initial public offering model
- Leveraged buyout model
- Sum of the parts model
- Consolidation model
- Budget model
- Forecasting model
- Option pricing model
Module 5 – Stages in Valuation Procedures
- Preparatory stage
- Data collection
- Management interviews
- Analysis stage
- Economy and industry analysis
- Understanding transaction background
- Calculations stage
- Valuation approaches
- Final stages
- Report preparation
- Client presentation
Module 6 – Approaches Used in Bank Valuation
- Asset-based approaches
- Market approaches
- Income approaches
- Contingent claim valuation
Module 7 – Drivers of Bank Valuation
- Economic growth
- Level of nominal interest rates
- Competition
- Financial innovation
- Stock market
- Sound judgement
Module 8 – Trends to be Considered During Bank Valuation
- Historical and expected growth
- Competitive environment
- Regulatory environment
Module 9 – Valuation Techniques in Investment Banking
- Discounted cash flow analysis
- Precedent transactions analysis
- Comparable companies analysis
Module 10 – Methods to Calculate Expected Return On Equity/Discount Rate
- Gordon growth model
- Average profitability
- Cost of foreign funds
- The capital asset pricing model
- Arbitrage pricing theory model
Related Courses
Course Administration Details:
METHODOLOGY
The instructor-led trainings are delivered using a blended learning approach and comprise presentations, guided sessions of practical exercise, web-based tutorials, and group work. Our facilitators are seasoned industry experts with years of experience, working as professionals and trainers in these fields. All facilitation and course materials will be offered in English. The participants should be reasonably proficient in English.
ACCREDITATION
Upon successful completion of this training, participants will be issued an Indepth Research Institute (IRES) certificate certified by the National Industrial Training Authority (NITA).
TRAINING VENUE
The training will be held at IRES Training Centre. The course fee covers the course tuition, training materials, two break refreshments, and lunch. All participants will additionally cater to their travel expenses, visa application, insurance, and other personal expenses.
ACCOMMODATION AND AIRPORT PICKUP
Accommodation and airport pickup are arranged upon request. For reservations contact the Training Officer.
- Email: [email protected]
- Phone: +254715 077 817
TAILOR-MADE
This training can also be customized to suit the needs of your institution upon request. You can have it delivered in our IRES Training Centre or at a convenient location. For further inquiries, please contact us on:
- Email: [email protected]
- Phone: +254715 077 817
PAYMENT
Payment should be transferred to the IRES account through a bank on or before the start of the course. Send proof of payment to [email protected]
Click here to register for this course.
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