Understanding Bank Financial Ratios

Understanding Bank Financial Ratios is essential for the proper management of any financial institution. Bankers invest many hours analyzing and understanding the financial statements of their borrowers in order to determine repayment capability, the same should be true for the bank’s financial statements. The ultimate goal is to achieve the status of a "High Performance Bank" among your peers.

This course will focus on calculating and interpreting key banking ratios so that a comparison with the Uniform Bank Performance Report (BPER) can be performed to determine how your financial institution compares to your peer group of banks. The course will accomplish this by starting with an understanding of the items on the Balance Sheet and Income Statement and how each account relates to each other. We will then progress to calculating and interpreting Earnings and Performance Ratios bank management should monitor to insure a safe, sound and high performing bank. We will end the presentation by answering the question "How do Regulators Evaluate the Financial Condition and Strength of Your Bank" by focusing on the CAMELS Rating System and other key risk areas.

Covered Topics

  • Asset Quality
  • Key Ratios for Examining Capital Adequacy
  • Capital Adequacy
  • Earnings
  • Liquidity

Who Should Attend?

Anyone in the institution having compliance responsibilities - when you think about this, it could be just about anyone in the institution. This may include members of senior management, operations personnel, lending personnel, underwriters, customer service representatives, back-room personnel, and of course compliance officers, auditors, and attorneys, and anyone else in the institution that might benefit from this valuable information.

The biggest value of the series..."Ability to have someone explain in plain English what is going on." Christine G., Bank Fund Staff Federal Credit Union