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Mar 25 2024

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

  • 9:00am
  • National Banking College

Background

An understanding of financial statements is critical to analysing 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

  • The core objective of the course is to equip the participant with financial statement analytical skills. This course looks at the structure of Financial Statements which bankers use to evaluate the health of their prospects and customers, namely:
    ➢ The Balance Sheet,
    ➢ The Profit & Loss Statement
    ➢ The Historical Cash Flow Statement

  • Participants should be able to:
    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 key financial 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 Outline

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 in Financial Statements.

Target Group

  • Senior Credit Analysts/ Credit Analysts

  • Senior Relationship Managers/ Relationship Managers

  • Credit Approvers

  • Senior Credit Administrators

  • Business Heads involved in Lending Activities

CostGHC00.00

To register, contact the programmes secretariat now !

+233 (0) 302 760006