Key Details in a Bank's Annual Report
In this video, Ted outlines the 5 key things to look for in a bank’s annual report. These include: how a bank funds its loan book; the relationship between the amount of equity and the total assets of the bank; the relationship between net interest income and other income; the amount being spent on costs as a proportion of total income; and whether it is adequately providing for non-performing loans.
Overview
The financial statements of a bank company are unlike those of any other organisation. Below are 5 key things to look for when confronted with the accounts of a bank.
Key learning objectives:
Identifying whether you are looking at the accounts of a commercial or investment bank
Ensuring that the costs are under control
Understand the importance of capital adequacy checks
Identifying the source of funds
Ensuring there is an adequate provision for ‘non-performing loans’
Summary
Expert
Ted Wainman
Ted Wainman trained and qualified as an Associate Chartered Accountant (ACA) with Ernst & Young before joining JPMorgan on the Investment Management side of the business. He since has over 17 years of experience in designing, developing and delivering financial & business skills training workshops for over 275 clients in more than 35 countries.
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