Breaking Into Wall Street – BIWS Bank & Financial Institution Modeling

How to Master Bank and Financial Institution Valuation and Financial Modeling, Dominate Your Investment Banking Interviews, and Succeed On The Job

• Master the fundamentals and nuances of bank and financial institution accounting, valuation, and financial modeling with detailed, step-by-step video training. You’ll gain skills that are NOT taught in undergraduate or MBA programs… but which any FIG team at a bank or any financials-focused private equity firm or hedge fund will expect you to know.
• Quickly grasp the concepts and skills via 4 detailed case studies: The first case study teaches you how to build an operating model and valuation for Shawbrook, a U.K.-based “challenger bank,” and how to use those models to make an investment recommendation for the company. The second case study covers KeyCorp’s $4.1 billion acquisition of First Niagara and how bank M&A deals are different, and the last two case studies are private equity/growth equity-related – for ANZ (one of the Big 4 Banks in Australia) and the Philippine Bank of Communications.
• Dominate your interviews. For your convenience, we provide 13 Overview videos, along with written notes and slides, on the topics most likely to come up in interviews. If you’re short on time, you can get up to speed with these in under an hour and review all the concepts in short order – even if your interview is tomorrow and you just found out about it 5 minutes ago.
• Learn how to write hedge fund stock pitches, equity research reports, and IB pitch books for banks. Most financial modeling training programs teach you the formulas; we teach you how to use the Excel models in real life to make money and advise clients. The Shawbrook case study builds up to a 32-page stock pitch, a 13-page equity research report, and a 48-slide investment banking pitch book where you make an investment recommendation and advise the company on its best options.
• Overview lessons cover a bank’s financial statements, regulatory capital under Basel III, loan loss accounting, and a simplified 3-statement projection model and valuation you can use in time-pressured case studies. You’ll also learn about regional differences by analyzing banks’ financial statements across the 6 inhabited continents. This module concludes with an overview of Dodd-Frank, CRD IV, and U.S./E.U. stress testing.
• Overview lessons cover a bank’s financial statements, regulatory capital under Basel III, loan loss accounting, and a simplified 3-statement projection model and valuation you can use in time-pressured case studies. You’ll also learn about regional differences by analyzing banks’ financial statements across the 6 inhabited continents. This module concludes with an overview of Dodd-Frank, CRD IV, and U.S./E.U. stress testing.
• Valuation Module covers public comps and precedent transactions for a bank, a regression analysis, and a multi-stage dividend discount model and residual income (excess returns) model. You’ll learn how to adjust for non-recurring charges and excess or deficit capital, and you’ll use the output of this analysis to make an investment recommendation and to advise the company as if it were a client.
• M&A Module teaches you how to model the acquisition of a commercial bank, including bank-specific features such as loan marks, deposit divestitures, core deposit intangibles, and the write-down of the Allowance for Loan Losses. You’ll get both a simplified bank merger model and a full, complex one for KeyCorp and First Niagara, and you’ll use both models to answer case study questionsand recommend for or against these deals.
• Bank Buyout and Growth Equity Lesssons are based on case studies of ANZ and the Philippine Bank of Communications; you’ll learn how private equity firms invest in the financial services sector, how minority-stake deals differ from control deals, and how to analyze the returns to equity investors in different cases. You’ll also learn how NPL divestitures and funding raised to boost a bank’s Net Stable Funding Ratio work in a private equity context.

What You’ll Learn In BIWS Bank & Financial Institution Modeling

• Module 1: Bank Overview: Accounting, Valuation, and Regulations: You’ll discover how banks operate and why you can’t rely on traditional metrics, multiples, or modeling.
• Module 2: Bank Operating Model (Shawbrook): You will construct a detailed operating model for Shawbrook, including calculations for its loan portfolio, three statements, and regulatory capital under Basel III.
• Module 3: Bank Valuation (Shawbrook): You will build a full-fledged valuation model for Shawbrook based on public company comparables, precedent transactions, a regression analysis, and dividend discount and residual income models. You’ll then use these to write a stock pitch, equity research report, and IB pitch book for the company.
• Module 4: Bank Merger Model (KeyCorp / First Niagara): You’ll build a full merger model for KeyCorp’s $4.1 billion acquisition of First Niagara, and you’ll make a recommendation on the deal in a short presentation at the end after learning about the key differences with bank merger models.
• Module 5: Bank Growth Equity Deals (ANZ): You’ll build a half-year operating model for ANZ and use it make a recommendation on a minority-stake investment in the company; you’ll also learn how a bank might use such an investment to shore up its regulatory capital ratios.
• Module 6: Bank Buyout Deals (Philippine Bank of Communications): You will build a buyout model for a 100% acquisition of PBC in this module, learn how NPL divestitures work, and make a short investment recommendation at the end.