Analysing the Financial Statement of Commercial Borrowers(Mar. 25-27) In-person

Mar 25 2026

Analysing the Financial Statement of Commercial Borrowers(Mar. 25-27) In-person

9:00am
National Banking College

Rationale

An understanding of financial statements is critical to analyzing the credit quality of a borrowing customer.
It facilitates the Relationship manager and credit analysts’ ability to ask the right questions during information gathering meetings with the borrower.
It helps the banker to understand the key drivers of the customer’s business.
It helps the banker to understand the key financial risks a business is exposed to and how these risks are mitigated.
Identify emerging problems which can be detrimental to repayment of existing facilities.
Identify opportunities for doing additional business with the customer which may not necessarily be to lend money.

Programme Objectives

Have appreciation of the components of financial statements and their significance.
Undertake ‘Common-size’ and Trend analysis and interpret the results.
Perform peer analysis – compare customer’s business to similar businesses in the industry.
Construct, analyse and interpret keyfinancial ratios – liquidity, capital structure, profitability, repayment & efficiency ratios.
Demonstrate an understanding of how events in both the external and internal environments of a business influence the financial statements.
Design a good loan repayment plan for borrowers based on prudent analysis.

Course Content

An Introduction
The Importance of Financial Statements
An overview of IFRS
Types of Financial Statements Formats

Analysis – Business and Operating Performance
Balance Sheet structure
Operating Performance and the Business Cycle
Assessing the Quality and Stability of Earnings
Analysis – Assets
Asset Structure
Assets Valuations
Asset Efficiency
Working Capital

Analysis – Liabilities and Capital Structure.
Short-Term Liabilities & Spontaneous Funding
Long Term Debt & Debt Servicing Capacity
Accounting for Contingent Liabilities
Liquidity and Solvency
Tax, Provisions & Dividends
Capital Structure, Leverage & Funding Strategies

Analysis – Identifying “Red Flags” and Risk Factors inFinancial Statements

Target Group

Senior Credit Analysts/ Credit Analysts
Senior Relationship Managers/ Relationship Managers
Credit Approvers
Senior Credit Administrators
Business Heads involved in Lending Activities