Beginner’s guide: Banking Business & Balance Sheet Analysis

Practical training on Important metrics that you need to know while analyzing banking businesses and stocks

Beginner’s guide: Banking Business & Balance Sheet Analysis

What you’ll learn

  • Practical insight on the intricate world of banking businesses and Learn how to analyze banks.
  • The goal of this course is to give learners exposure to financial statements of banks.
  • Able to make an objective assessment of the strengths and weaknesses of a bank.
  • Understand the risks in the different businesses and products offered by banks and how they are reflected in the financial statements.
  • To analyze the components of bank financial statements and key ratios used in bank analysis.

Course Content

  • Introduction –> 1 lecture • 9min.
  • Income statement and Balance Sheet –> 1 lecture • 3min.
  • Understanding banking through bank balance sheet –> 6 lectures • 23min.
  • How did growing the balance sheet lead to the financial crisis of 2008? –> 1 lecture • 4min.
  • Diving into a bank balance sheet –> 14 lectures • 31min.
  • Shareholder’s equity –> 3 lectures • 6min.
  • What is Liquidity –> 3 lectures • 6min.
  • Classification of HQLA –> 1 lecture • 4min.
  • What is Leverage –> 2 lectures • 5min.
  • Workouts –> 7 lectures • 17min.

Beginner's guide: Banking Business & Balance Sheet Analysis


Beginner’s guide: Banking Business & Balance Sheet Analysis

Can you imagine an economy without a banking system?

Banks are the backbone of an economy. If they collapse, the entire country eventually collapses. Every person places a significant amount of trust in the banking system. Individuals and companies turn to banks for their funding needs. A nation’s ability to assemble its capital effectively depends on them.

This is why banks are relevant during all economic cycles and makes the banking sector one of the most profitable sectors for investment.

Across the globe, banks occupy a substantial portion of the overall stock market, and hence, they probably form at least some part of the investment portfolios of equity investors. And if you are talking about S&P 500 in the USA, where approx. 11% weightage is from the financial sector or an emerging market like India, where a huge 40% weightage is only from financial services; the banking sector is an important one for any financial market or portfolio.

Investing in banks requires a careful analysis of financial data. Checking a few general ratios is not enough and needs to be focused on the framework specifically designed to analyze the efficiency of banks.

However, analyzing banks is very different compared to analyzing a Manufacturing company. Unlike non-financial firms, wherein metrics like gross margin, working-capital cycle, debt to equity, etc., are essential criteria to consider, banks altogether have different metrics. To analyze a bank’s financial statements, one must first have a clear understanding of these metrics.

This course will guide you on how you can analyze banking stocks in a simple and easy-to-understand language.

What skills will you gain by taking this course?

In this course, you will learn what exactly a bank is, understand banking through a bank balance sheet, how is a balance sheet balance when transactions are made, what happens to the balance sheet when customers default, and Detailed insight on Equity, Return on equity, financial instruments, REPO, fair value methodology, goodwill, deposits, etc. Basel accords and important ratios like Capital Adequacy Ratio, Gross & Net NPA. Understand the relation between NII, NIM, and NPA and other important analysis metrics.

After completing this course, you can analyze any bank of your choice.

If you are a banking aspirant or working in the financial sector or a business or stock analyst, this course will make you a pro in banking business analysis in no time.

So, if this sounds pretty lucrative to you, then hurry up and enroll in this course.