Enviar búsqueda
Cargar
Financial Statements of Banks and Competitors
•
Descargar como PPT, PDF
•
0 recomendaciones
•
1,015 vistas
Título mejorado por IA
B
bethdemi
Seguir
Economía y finanzas
Empresariales
Denunciar
Compartir
Denunciar
Compartir
1 de 39
Descargar ahora
Recomendados
Chapter 6
Chapter 6
bethdemi
Chapter 7
Chapter 7
bethdemi
Camels rating
Camels rating
DrSatishRadhakrishna1
Alm in banks
Alm in banks
Parth Maheshwari
Coupling of Market Risk,Credit Risk, and Liquidity Risk
Coupling of Market Risk,Credit Risk, and Liquidity Risk
Gateway Partners
Chapter 8
Chapter 8
Dr. Muath Asmar
Liquidity Crises 2009
Liquidity Crises 2009
Mac Croll
Chapter 1
Chapter 1
Dr. Muath Asmar
Recomendados
Chapter 6
Chapter 6
bethdemi
Chapter 7
Chapter 7
bethdemi
Camels rating
Camels rating
DrSatishRadhakrishna1
Alm in banks
Alm in banks
Parth Maheshwari
Coupling of Market Risk,Credit Risk, and Liquidity Risk
Coupling of Market Risk,Credit Risk, and Liquidity Risk
Gateway Partners
Chapter 8
Chapter 8
Dr. Muath Asmar
Liquidity Crises 2009
Liquidity Crises 2009
Mac Croll
Chapter 1
Chapter 1
Dr. Muath Asmar
4 liquidity management.ppt
4 liquidity management.ppt
JahidulIslam758305
Cb lesson 5
Cb lesson 5
AIU (Albukhary International University)
Chapter 7
Chapter 7
Dr. Muath Asmar
Asset liability management
Asset liability management
Anil Chaurasiya
Chapter 6
Chapter 6
Dr. Muath Asmar
Global banking activities
Global banking activities
Ujjwal 'Shanu'
Chap006
Chap006
bethdemi
Investment banks & securities analysts
Investment banks & securities analysts
San Antonio de Padua - Center for Alternative Mathematics
Chapter 5
Chapter 5
Dr. Muath Asmar
Asset and liability management - Principles and Practices of Banking
Asset and liability management - Principles and Practices of Banking
VIRUPAKSHA GOUD
Saunders 8e ppt_chapter12
Saunders 8e ppt_chapter12
Dr. Muath Asmar
Asset liability management
Asset liability management
firoze p
Fundamentals of Market Risk Management by Dr. Emmanuel Moore ABOLO
Fundamentals of Market Risk Management by Dr. Emmanuel Moore ABOLO
Dr. Emmanuel ABOLO, fica,fnimn,ficn,sirm
Asset Liability Management
Asset Liability Management
Prachi Gupta
International banking and money market
International banking and money market
StudsPlanet.com
Chapter 13
Chapter 13
Dr. Muath Asmar
Saunders 8e ppt_chapter14
Saunders 8e ppt_chapter14
Dr. Muath Asmar
Asset liability management in banks
Asset liability management in banks
Ujjwal 'Shanu'
Chap005
Chap005
bethdemi
Risk and Returns
Risk and Returns
Mikee Bylss
Chapter05.ppt
Chapter05.ppt
MdEmonArefin
Chap009.ppt
Chap009.ppt
Pony37
Más contenido relacionado
La actualidad más candente
4 liquidity management.ppt
4 liquidity management.ppt
JahidulIslam758305
Cb lesson 5
Cb lesson 5
AIU (Albukhary International University)
Chapter 7
Chapter 7
Dr. Muath Asmar
Asset liability management
Asset liability management
Anil Chaurasiya
Chapter 6
Chapter 6
Dr. Muath Asmar
Global banking activities
Global banking activities
Ujjwal 'Shanu'
Chap006
Chap006
bethdemi
Investment banks & securities analysts
Investment banks & securities analysts
San Antonio de Padua - Center for Alternative Mathematics
Chapter 5
Chapter 5
Dr. Muath Asmar
Asset and liability management - Principles and Practices of Banking
Asset and liability management - Principles and Practices of Banking
VIRUPAKSHA GOUD
Saunders 8e ppt_chapter12
Saunders 8e ppt_chapter12
Dr. Muath Asmar
Asset liability management
Asset liability management
firoze p
Fundamentals of Market Risk Management by Dr. Emmanuel Moore ABOLO
Fundamentals of Market Risk Management by Dr. Emmanuel Moore ABOLO
Dr. Emmanuel ABOLO, fica,fnimn,ficn,sirm
Asset Liability Management
Asset Liability Management
Prachi Gupta
International banking and money market
International banking and money market
StudsPlanet.com
Chapter 13
Chapter 13
Dr. Muath Asmar
Saunders 8e ppt_chapter14
Saunders 8e ppt_chapter14
Dr. Muath Asmar
Asset liability management in banks
Asset liability management in banks
Ujjwal 'Shanu'
Chap005
Chap005
bethdemi
Risk and Returns
Risk and Returns
Mikee Bylss
La actualidad más candente
(20)
4 liquidity management.ppt
4 liquidity management.ppt
Cb lesson 5
Cb lesson 5
Chapter 7
Chapter 7
Asset liability management
Asset liability management
Chapter 6
Chapter 6
Global banking activities
Global banking activities
Chap006
Chap006
Investment banks & securities analysts
Investment banks & securities analysts
Chapter 5
Chapter 5
Asset and liability management - Principles and Practices of Banking
Asset and liability management - Principles and Practices of Banking
Saunders 8e ppt_chapter12
Saunders 8e ppt_chapter12
Asset liability management
Asset liability management
Fundamentals of Market Risk Management by Dr. Emmanuel Moore ABOLO
Fundamentals of Market Risk Management by Dr. Emmanuel Moore ABOLO
Asset Liability Management
Asset Liability Management
International banking and money market
International banking and money market
Chapter 13
Chapter 13
Saunders 8e ppt_chapter14
Saunders 8e ppt_chapter14
Asset liability management in banks
Asset liability management in banks
Chap005
Chap005
Risk and Returns
Risk and Returns
Similar a Financial Statements of Banks and Competitors
Chapter05.ppt
Chapter05.ppt
MdEmonArefin
Chap009.ppt
Chap009.ppt
Pony37
2 bank funds-assets,liabilities, income and expenses.ppt
2 bank funds-assets,liabilities, income and expenses.ppt
JahidulIslam758305
Chap -16 - Lending Procedures.ppt
Chap -16 - Lending Procedures.ppt
BushraHaque12
Chapter07
Chapter07
Prachi Chitlangia
Understanding Financial Statement / Report
Understanding Financial Statement / Report
Mayur Khatri
LMPP14eCh11.ppt
LMPP14eCh11.ppt
TheFlash54
chap019.ppt
chap019.ppt
narman1402
Lending: From a Banker's Viewpoint
Lending: From a Banker's Viewpoint
Washington, DC Economic Partnership
Financial statement resource guide
Financial statement resource guide
isizas
Chapter_17 lending to Business Firms PPT.pdf
Chapter_17 lending to Business Firms PPT.pdf
MohammadKabir55
Entrepreneur sources of venture capital
Entrepreneur sources of venture capital
Sameer Chandrakar
Ch02
Ch02
ruxana40
Financial Statements.pdf
Financial Statements.pdf
Abinash Mandilwar
Remittance.ppt
Remittance.ppt
FarzandAli39
Q3 2015 investor call presentation final
Q3 2015 investor call presentation final
SquareTwoFinancial
Franchising | Entrepreneur Roadmap | Capital One
Franchising | Entrepreneur Roadmap | Capital One
Washington, DC Economic Partnership
Capital structure and Leverage with problems
Capital structure and Leverage with problems
MangeshBhople
BOM - Banking.pptx
BOM - Banking.pptx
JyotirmayaMaharana3
FFA- Statement of Schedule of Changes in Working Capital
FFA- Statement of Schedule of Changes in Working Capital
uma reur
Similar a Financial Statements of Banks and Competitors
(20)
Chapter05.ppt
Chapter05.ppt
Chap009.ppt
Chap009.ppt
2 bank funds-assets,liabilities, income and expenses.ppt
2 bank funds-assets,liabilities, income and expenses.ppt
Chap -16 - Lending Procedures.ppt
Chap -16 - Lending Procedures.ppt
Chapter07
Chapter07
Understanding Financial Statement / Report
Understanding Financial Statement / Report
LMPP14eCh11.ppt
LMPP14eCh11.ppt
chap019.ppt
chap019.ppt
Lending: From a Banker's Viewpoint
Lending: From a Banker's Viewpoint
Financial statement resource guide
Financial statement resource guide
Chapter_17 lending to Business Firms PPT.pdf
Chapter_17 lending to Business Firms PPT.pdf
Entrepreneur sources of venture capital
Entrepreneur sources of venture capital
Ch02
Ch02
Financial Statements.pdf
Financial Statements.pdf
Remittance.ppt
Remittance.ppt
Q3 2015 investor call presentation final
Q3 2015 investor call presentation final
Franchising | Entrepreneur Roadmap | Capital One
Franchising | Entrepreneur Roadmap | Capital One
Capital structure and Leverage with problems
Capital structure and Leverage with problems
BOM - Banking.pptx
BOM - Banking.pptx
FFA- Statement of Schedule of Changes in Working Capital
FFA- Statement of Schedule of Changes in Working Capital
Último
Log your LOA pain with Pension Lab's brilliant campaign
Log your LOA pain with Pension Lab's brilliant campaign
Henry Tapper
Vip Call US 📞 7738631006 ✅Call Girls In Sakinaka ( Mumbai )
Vip Call US 📞 7738631006 ✅Call Girls In Sakinaka ( Mumbai )
Pooja Nehwal
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
Call Girls in Nagpur High Profile
03_Emmanuel Ndiaye_Degroof Petercam.pptx
03_Emmanuel Ndiaye_Degroof Petercam.pptx
FinTech Belgium
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
Call Girls in Nagpur High Profile
Basic concepts related to Financial modelling
Basic concepts related to Financial modelling
baijup5
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
Pooja Nehwal
The Economic History of the U.S. Lecture 19.pdf
The Economic History of the U.S. Lecture 19.pdf
Gale Pooley
(ANIKA) Budhwar Peth Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
(ANIKA) Budhwar Peth Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
ranjana rawat
High Class Call Girls Nagpur Grishma Call 7001035870 Meet With Nagpur Escorts
High Class Call Girls Nagpur Grishma Call 7001035870 Meet With Nagpur Escorts
ranjana rawat
The Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdf
Gale Pooley
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...
Call Girls in Nagpur High Profile
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
FinTech Belgium
The Economic History of the U.S. Lecture 17.pdf
The Economic History of the U.S. Lecture 17.pdf
Gale Pooley
VIP Call Girl Service Andheri West ⚡ 9920725232 What It Takes To Be The Best ...
VIP Call Girl Service Andheri West ⚡ 9920725232 What It Takes To Be The Best ...
VIP Luxury Call Girls Mumbai 🌹 9920725232 ( Why You Choose Us? ) Escorts
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
ranjana rawat
The Economic History of the U.S. Lecture 26.pdf
The Economic History of the U.S. Lecture 26.pdf
Gale Pooley
Gurley shaw Theory of Monetary Economics.
Gurley shaw Theory of Monetary Economics.
Vinodha Devi
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...
Call Girls in Nagpur High Profile
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
ssifa0344
Último
(20)
Log your LOA pain with Pension Lab's brilliant campaign
Log your LOA pain with Pension Lab's brilliant campaign
Vip Call US 📞 7738631006 ✅Call Girls In Sakinaka ( Mumbai )
Vip Call US 📞 7738631006 ✅Call Girls In Sakinaka ( Mumbai )
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
03_Emmanuel Ndiaye_Degroof Petercam.pptx
03_Emmanuel Ndiaye_Degroof Petercam.pptx
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
Basic concepts related to Financial modelling
Basic concepts related to Financial modelling
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
The Economic History of the U.S. Lecture 19.pdf
The Economic History of the U.S. Lecture 19.pdf
(ANIKA) Budhwar Peth Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
(ANIKA) Budhwar Peth Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
High Class Call Girls Nagpur Grishma Call 7001035870 Meet With Nagpur Escorts
High Class Call Girls Nagpur Grishma Call 7001035870 Meet With Nagpur Escorts
The Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdf
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
The Economic History of the U.S. Lecture 17.pdf
The Economic History of the U.S. Lecture 17.pdf
VIP Call Girl Service Andheri West ⚡ 9920725232 What It Takes To Be The Best ...
VIP Call Girl Service Andheri West ⚡ 9920725232 What It Takes To Be The Best ...
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
The Economic History of the U.S. Lecture 26.pdf
The Economic History of the U.S. Lecture 26.pdf
Gurley shaw Theory of Monetary Economics.
Gurley shaw Theory of Monetary Economics.
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Financial Statements of Banks and Competitors
1.
McGraw-Hill/Irwin Copyright ©
2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Five The Financial Statements of Banks and Their Principal Competitors
2.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-2 Key Topics • An Overview of the Balance Sheets and Income Statements of Banks and Other Financial Firms • The Balance Sheet or Report of Condition • Asset Items • Liability Items • Recent Expansion of Off-Balance-Sheet Items • The Problem of Book-Value Accounting and “Window Dressing” • Components of the Income Statement: Revenues and Expenses • Appendix: Sources of Information on the Financial-Services Industry
3.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-3 Introduction • The particular services each financial firm chooses to offer and the overall size of each financial-service organization are reflected in its financial statements • Financial statements can be viewed as a “road map” ▫ Tell us where a financial firm has been in the past, where it is now, and possibly where it is headed in the future • The two main financial statements that managers, customers, and the regulatory authorities rely upon are ▫ The balance sheet (Report of Condition) ▫ The income statement (Report of Income)
4.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-4 An Overview of Balance Sheets and Income Statements • The Report of Condition shows the amount and composition of funds sources (financial inputs) drawn upon to finance lending and investing activities and how much has been allocated to loans, securities, and other funds uses (financial outputs) at any given point in time • In contrast, the financial inputs and outputs on the Report of Income show how much it has cost to acquire funds and to generate revenues from the uses the financial firm has made of those funds • The Report of Income also shows the revenues (cash flow) generated by selling services to the public, including making loans and servicing customer deposits • The Report of Income shows net earnings after all costs are deducted from the sum of all revenues, some of which will be reinvested in the financial firm for future growth and some of which will flow to stockholders as dividends
5.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-5 TABLE 5–1 Key Items on Bank Financial Statements
6.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-6 The Balance Sheet (Report of Condition) • A balance sheet lists the assets, liabilities, and equity capital (owners’ funds) held by or invested in a bank or other financial firm on any given date
7.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-7 The Balance Sheet (Report of Condition) (continued) • For banks and other depository institutions the assets on the balance sheet are of four major types: ▫ Cash in the vault and deposits held at other depository institutions (C) ▫ Government and private interest-bearing securities purchased in the open market (S) ▫ Loans and lease financings made available to customers (L) ▫ Miscellaneous assets (MA) • Liabilities fall into two principal categories: ▫ Deposits made by and owed to various customers (D) ▫ Nondeposit borrowings of funds in the money and capital markets (NDB) • Equity capital represents long-term funds the owners contribute (EC)
8.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-8 The Balance Sheet (Report of Condition) (continued) • Cash assets (C) are designed to meet the financial firm’s need for liquidity • Security holdings (S) are a backup source of liquidity and include investments that provide a source of income • Loans (L) are made principally to supply income • Miscellaneous assets (MA) are usually dominated by fixed assets (plant and equipment) and investments in subsidiaries (if any) • Deposits (D) are typically the main source of funding for banks ▫ Nondeposit borrowings (NDB) are carried out mainly to supplement deposits and provide the additional liquidity that cash assets and securities cannot provide • Equity capital (EC) supplies the long-term, relatively stable base of financial support upon which the financial firm will rely to grow and to cover any extraordinary losses it incurs
9.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-9 The Balance Sheet (Report of Condition) (continued) • One useful way to view the balance sheet identity is to note that liabilities and equity capital represent accumulated sources of funds, which provide the needed spending power to acquire assets • A bank’s assets, on the other hand, are its accumulated uses of funds, which are made to generate income for its stockholders, pay interest to its depositors, and compensate its employees for their labor and skill • Thus, the balance sheet identity can be pictured simply as:
10.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-10 TABLE 5–2 Highlighted Bank Financial Data ($ million) from the FDIC (December 31, 2009)
11.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-11 TABLE 5–3 Report of Condition (Balance Sheet) for BB&T (Year-End 2008 and 2009)
12.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-12 The Balance Sheet (Report of Condition) (continued) • Cash Assets ▫ Account is called Cash and Deposits Due from Bank ▫ Includes: ▫ Vault Cash ▫ Deposits with Other Banks (Correspondent Deposits) ▫ Cash Items in Process of Collection ▫ Reserve Account with the Federal Reserve ▫ Sometimes called primary reserves
13.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-13 The Balance Sheet (Report of Condition) (continued) • Investment Securities - The Liquid Portion ▫ Short Term Government Securities ▫ Privately Issued Money Market Securities ▫ Interest Bearing Time Deposits ▫ Commercial Paper ▫ Often called secondary reserves
14.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-14 The Balance Sheet (Report of Condition) (continued) • Investment Securities - The Income-Generating Portion ▫ Taxable Securities ▫ U.S. Government Notes ▫ Government Agency Securities ▫ Corporate Bonds ▫ Tax-Exempt Securities ▫ Municipal Bonds
15.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-15 The Balance Sheet (Report of Condition) (continued) • Trading Account Assets ▫ Securities purchased to provide short-term profits from short-term price movements ▫ Occurs when the bank acts as a securities dealer ▫ Valued at Market – FASB 115
16.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-16 The Balance Sheet (Report of Condition) (continued) • Federal Funds Sold and Reverse Repurchase Agreements ▫ Includes mainly temporary loans (usually extended overnight, with the funds returned the next day) made to other depository institutions, securities dealers, or major industrial corporations ▫ The funds for these temporary loans often come from the reserves a bank has on deposit with the Federal Reserve Bank in its district ▫ “Fed funds” ▫ Some of these temporary credits are extended in the form of reverse repurchase (resale) agreements (RPs) in which the banking firm acquires temporary title to securities owned by the borrower and holds those securities as collateral until the loan is paid off
17.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-17 The Balance Sheet (Report of Condition) (continued) • Loan Accounts ▫ The Major Asset ▫ Gross Loans – Sum of All Loans ▫ Allowance for Possible Loan Losses ▫ Contra Asset Account ▫ For Potential Future Loan Losses ▫ Net Loans ▫ Unearned Discount Income ▫ Nonperforming Loans
18.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-18 The Balance Sheet (Report of Condition) (continued) • Types of Loans ▫ Commercial and industrial (or business) loans ▫ Consumer (or household) loans ▫ Real estate (or property-based) loans ▫ Financial institutions loans ▫ Foreign (or international) loans ▫ Agricultural production loans ▫ Security loans ▫ Leases
19.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-19 The Balance Sheet (Report of Condition) (continued) • Loan Losses Beginning Allowance for Loan Losses + This Year’s Provision for Loan Loss = Adjusted Allowance for Loan Losses - Actual Charge-Offs of Worthless Loans + Recoveries from Previous Charge-Offs = Ending Allowance for Loan Losses
20.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-20 The Balance Sheet (Report of Condition) (continued) • Specific and General Reserves ▫ Specific Reserves ▫ Set aside to cover a particular Loan ▫ Designate a portion of ALL or ▫ Add more reserves to ALL ▫ General Reserves ▫ Remaining ALL ▫ Determined by management but influenced by taxes and government regulation ▫ Loans to lesser developed countries require allocated transfer reserves
21.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-21 The Balance Sheet (Report of Condition) (continued) • Miscellaneous Assets ▫ Bank Premises and Fixed Assets ▫ Other Real Estate Owned (OREO) ▫ Goodwill and Other Intangibles
22.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-22 The Balance Sheet (Report of Condition) (continued) • Liabilities of the Banking Firm ▫ Deposits ▫ Non interest-Bearing Demand Deposits ▫ Savings Deposits ▫ Now Accounts ▫ Money Market Deposit Accounts (MMDA) ▫ Time Deposits
23.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-23 The Balance Sheet (Report of Condition) (continued) • Liabilities of the Banking Firm ▫ Nondeposit Borrowings ▫ Fed Funds Purchased ▫ Securities Sold Under Agreement to Repurchase (Repurchase Agreements) ▫ Acceptances Outstanding ▫ Eurocurrency Borrowings ▫ Subordinated Debt ▫ Limited Life Preferred Stock ▫ Other Liabilities
24.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-24 The Balance Sheet (Report of Condition) (continued) • Equity Capital of the Banking Firm ▫ Preferred Stock ▫ Common Stock ▫ Common Stock Outstanding ▫ Capital Surplus ▫ Retained Earnings (Undivided Profits) ▫ Treasury Stock ▫ Contingency Reserve
25.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-25 TABLE 5-4 The Composition of Bank Balance Sheets (Percentage Mix of Sources and Uses of Funds for (Year-End 2009)
26.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-26 The Balance Sheet (Report of Condition) (continued) • Recent Expansion of Off-Balance-Sheet (OBS) Items in Banking ▫ Unused Commitments ▫ Standby Credit Agreements ▫ Derivative Contracts ▫ Futures Contracts ▫ Options ▫ Swaps ▫ OBS transactions expose a firm to counterparty risks ▫ OBS items have grown so rapidly that, for the banking industry as a whole, they exceed total bank assets many times over
27.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-27 TABLE 5–5 Examples of Off-Balance-Sheet Items Reported by FDIC-Insured Banks
28.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-28 The Balance Sheet (Report of Condition) (continued) • The Problem with Book-Value Accounting ▫ Original (historical, book-value) cost ▫ Amortized cost ▫ Market-value ▫ Held-to-maturity and available-for-sale securities ▫ Window Dressing ▫ Auditing Financial Statements ▫ Audit Committees ▫ Sarbanes-Oxley Accounting Standards Act
29.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-29 Components of the Income Statement (Report of Income) • Indicates the amount of revenue received and expenses incurred over a specific period of time • Shows how much it has cost to acquire funds and to generate revenues from the uses of funds in the Report of Conditions • Shows the revenues (cash flow) generated by selling services to the public • Shows net earnings after all costs are deducted from the sum of all revenues
30.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-30 Components of the Income Statement (Report of Income) (continued)
31.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-31 Components of the Income Statement (Report of Income) (continued) • Income statements are a record of financial flows over time • Therefore, we can represent the income statement as a report of financial outflows (expenses) and financial inflows (revenues) • Four main sections 1. Interest income 2. Interest expenses 3. Noninterest income 4. Noninterest expenses
32.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-32 TABLE 5–6 Report of Income (Income Statement) for BB&T (2008 and 2009)
33.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-33 Components of the Income Statement (Report of Income) (continued) • Net Interest Income = Interest Income – Interest Expenses • Interest Income Sources ▫ Interest and Fees on Loans ▫ Taxable Securities Revenue ▫ Tax-Exempt Securities Revenue ▫ Other Interest Income • Interest Expense Sources ▫ Deposit Interest Costs ▫ Interest on Short-Term Debt ▫ Interest on Long-Term Debt
34.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-34 Components of the Income Statement (Report of Income) (continued) • Net Noninterest Income = Noninterest Income – Noninterest Expenses • Noninterest Income Sources ▫ Fees Earned from Fiduciary Activities ▫ Service Charges on Deposit Accounts ▫ Trading Account Gains and Fees ▫ Additional Noninterest Income • Noninterest Expense Sources ▫ Wages, Salaries, and Employee Benefits ▫ Premises and Equipment Expense ▫ Other Operating Expenses
35.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-35 The Financial Statements of Leading Nonbank Financial Firms: A Comparison to Bank Statements • The financial statements of nonbank financial firms have, in recent years, come closer and closer to what we see on bank statements ▫ Especially true of thrift institutions ▫ Thrifts’ balance sheet are dominated by loans, deposits from customers, and borrowings in the money market ▫ Thrifts’ income statements are heavily tilted toward revenue from loans and by the interest they must pay on deposits and money market borrowings ▫ Other groups in the financial-service industries such as finance companies, life and property/casualty insurers, mutual funds, and security brokers and dealers ▫ Their financial statements include sources and uses of funds unique to the functions of these industries
36.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-36 TABLE 5–7 The Composition of Bank Income Statements (Percentage of Total Assets Measured as of Year-End 2009)
37.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-37 An Overview of Key Features of Financial Statements and Their Consequences • Table 5–8 provides a useful overview of the key features of the financial statements of financial institutions and their consequences for the managers of financial firms and for the public
38.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-38 TABLE 5–8 Features and Consequences of the Financial Statements of Banks and Similar Financial Firms
39.
McGraw-Hill/Irwin Bank Management and
Financial Services, 7/e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 5-39 Quick Quiz • What are the principal accounts that appear on a bank’s balance sheet (Report of Condition)? • Which accounts are most important and which are least important on the asset side of a bank’s balance sheet? What accounts are most important on the liability side of a balance sheet? • What are primary reserves and secondary reserves, and what are they supposed to do? • What accounts make up the Report of Income (income statement of a bank)? • What is the relationship between the provision for loan losses on a bank’s Report of Income and the allowance for loan losses on its Report of Condition? • What are the key features or characteristics of the financial statements of banks and similar financial firms?
Descargar ahora