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Description

Bank Financial Analysis: Reading the Statements, Measuring Risk and Forming a Conclusion

Interpret the balance sheet and income statement of a credit institution to assess its soundness

  • 2 days — 14 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

A bank's financial statements cannot be read in the same way as those of an industrial company. Most of the balance sheet consists of commitments, net banking income replaces revenue, and the cost of risk weighs directly on the bottom line. Conventional financial analysis frameworks quickly lose their relevance.

Two days to acquire a reading approach specific to the banking sector, from net banking income through to prudential requirements, and to build a well-argued diagnosis. The work is based on published statements from institutions with different business models.

Learning objectives

  • Identify the structure of a bank's balance sheet and off-balance-sheet positions
  • Break down net banking income by business line
  • Analyse the cost-to-income ratio and the cost of risk
  • Interpret capital adequacy and liquidity ratios
  • Assess exposure to interest rate and credit risk
  • Draft a well-argued diagnostic memorandum

What makes this programme different

The analysis is based on documents published by banks with differing profiles
Sector-specific adjustments are built step by step by the participants
A diagnostic memorandum is drafted and then submitted to the group

Programme

1Specific Features of Bank Financial Statements

Understanding a balance sheet made up of commitments

  • Identify how a bank's balance sheet is organised
  • Position customer loans and customer funding
  • Handle off-balance-sheet items and commitments given
  • Identify securities portfolios and their classification under IFRS

2How the Result Is Formed

From net banking income to net profit

  • Break down net interest margin and fee income
  • Analyse operating expenses and the cost-to-income ratio
  • Measure the weight of the cost of risk
  • Compare retail banking and corporate financing models

3Risk and Prudential Requirements

Measuring the soundness of the institution

  • Understand the rationale behind regulatory capital
  • Read capital adequacy and leverage ratios
  • Monitor liquidity indicators
  • Assess the quality of the loan portfolio

4Diagnosis and Reporting Back

Building a well-argued opinion

  • Build a ratio-based analysis framework
  • Benchmark an institution against its peers
  • Identify early warning signals of weakness
  • Draft a summary memorandum for a committee

Who is it for

Financial analysts · auditors · management controllers and banking professionals required to assess the position of a credit institution.

Prerequisites

Familiarity with corporate financial statements and basic banking mechanisms.

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.