Bank Modelling and Valuation Training Program

• horoughly 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 Content
Objectives of Financial Modelling
• Profitability planning
• Liquidity planning
• Credit planning
• Valuation of companies
• Valuation of financial instruments
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
Financial Statements and Their Analysis
• Balance sheets
• Income sheets
• Cash flow statements
• Statements of shareholders’ equity
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
Stages in Valuation Procedures
• Preparatory stage
o Data collection
o Management interviews
• Analysis stage
o Economy and industry analysis
o Understanding transaction background
• Calculations stage
o Valuation approaches
• Final stages
o Report preparation
o Client presentation
Approaches Used in Bank Valuation
• Asset-based approaches
• Market approaches
• Income approaches
• Contingent claim valuation
Drivers of Bank Valuation
• Economic growth
• Level of nominal interest rates
• Competition
• Financial innovation
• Stock market
• Sound judgement
Trends to be Considered During Bank Valuation
• Historical and expected growth
• Competitive environment
• Regulatory environment
Valuation Techniques in Investment Banking
• Discounted cash flow analysis
• Precedent transactions analysis
• Comparable companies analysis
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

METHODOLOGY
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:
1ST BATCH: 25th – 28th Feb,2025
2ND BATCH: 1st – 4th July,2025
3RD BATCH: 4th – 7th Nov,2025