Course description
The “Financial Institutions Valuation” course is designed to equip participants with a nuanced understanding and specialized skills for evaluating the complex landscape of financial institutions.
Starting with developing a structured analytical framework, the course delves into analyzing various types of risks, such as asset, counterparty, liquidity, investment, and systemic risks, alongside exploring arbitrage opportunities. It introduces participants to the CAMELS and ARROW frameworks, providing insights into how regulators view bank risks, the diverse types of financial institutions, and the impact of shareholder expectations on valuation.
Through a detailed examination of financial fundamentals, operating environments, management quality, and support mechanisms, the course guides participants through evaluating the revenue base and financial structures of financial institutions. Advanced topics include discounted cash flow techniques specific to financial institutions, strategic risk evaluation, dividend valuation, asset-based valuations, and comparative pricing techniques.
This comprehensive curriculum is designed to provide a deep dive into the valuation nuances of banks, insurance companies, asset managers, and other financial entities, addressing common valuation challenges and offering practical solutions for professionals aiming to excel in financial analysis and valuation.
Upcoming start dates
Outcome / Qualification etc.
- Develop a Structured Analytical Framework for Valuing Financial Institutions: Participants will learn to construct a comprehensive framework for analyzing financial institutions, incorporating considerations of asset, counterparty, liquidity, investment, systemic risks, and arbitrage opportunities.
- Understand and Apply Regulatory and Risk Frameworks: Learners will gain insights into how regulatory perspectives, including CAMELS and ARROW frameworks, influence the valuation of financial institutions, understanding the intricacies of risk assessment as viewed by regulators.
- Evaluate the Financial Structure and Revenue Base of Financial Institutions: Attendees will master techniques to analyze the financial structures and revenue bases of various types of financial institutions, including banks and insurance companies, focusing on diversity of revenue, income stability, and the impact of external factors like yield curves on margin spreads.
- Implement Advanced Discounted Cash Flow (DCF) Techniques: Participants will delve into advanced DCF methodologies tailored for financial institutions, learning to assess loan portfolio default rates, market risks of derivative positions, and select appropriate discount rates to accurately value on-balance sheet instruments.
- Compare and Contrast Valuation Techniques: Learners will explore a range of valuation techniques, understanding the differences between financial institution and corporate valuation methods, and applying strategic risk evaluations, dividend valuation, and asset-based valuations in practical contexts.
- Navigate Problematic Issues in Valuation: Participants will be equipped to tackle problematic valuation issues unique to financial institutions, such as investment in banking groups with differential risk profiles, valuing goodwill, and employing sum of the parts valuation techniques, enhancing their proficiency in handling complex valuation challenges.
Training Course Content
- Developing an analytical framework for analysis
- Introduction to financial institution valuation
- Advanced discounted cash flow techniques for FI’S
- Evaluating the FI revenue base – strategic risk
- Dividend valuation
- Asset based valuations
- Pricing techniques – comparatives
- Problematic issues in valuation
Course delivery details
All courses can be delivered ONSITE, ONLINE or BLENDED to suit your distinct requirements.
Whether one-to-one or group deliveries, entry level or boardroom executives, are consultants are here to develop a programme to meet your specific business needs.
Simply contact us to discuss your requirements.