Bank & FIG Modeling

Bank & FIG Modeling

Developed for FIG-focused investment bankers, equity research analysts and corporate finance teams at banks, this course guides trainees through a bank's financial statements, unique drivers, and regulatory framework.

Course Objective

At completion, trainees will have built a fully integrated financial statement model, RI model and DDM.

The analysis of banks is different from that of most other types of industries. As a result, analysis requires adjustments and different approaches from traditional valuation methodologies. Wall Street Prep’s bank modeling course will guide you step-by-step through a bank’s financial statements, unique drivers and regulatory framework. You will build a fully integrated financial statement model, a residual income (RI) model, and a dividend discount model (DDM) using Valley National Bank as a case study.

What You Will Learn

Section One: Building a bank forecast model

  • Build an advanced bank forecast model, projecting asset and liability balances, interest rates and spreads for key assets and liabilities, using industry best practices
  • Learn to effectively forecast the loan portfolio, investment securities, and deposits
  • Understand the modeling and forecasting of allowances for loan losses and net charge offs (NCOs)
  • Model regulatory constraints and analyze effects on leverage, capital ratios, and profitability
  • Forecast net interest income (NII), asset yields, funding costs and interest earning assets (IEA) and liabilities (IBL) using an approach that takes into account typical disclosure gaps, is internally consistent, and avoids common modeling pitfalls
  • Learn common forecast approaches for the non-interest income and expenses such as fees, and compensation
  • Identify the most appropriate “plugs” in a bank model to ensure the model balances, and address circular reference issues in the model

Section Two: Building a bank valuation model

  • Using the results derived from the forecast model, build a residual (excess returns) income model
  • Build an adjusted dividend discount model using the prevailing beset practices for banks (not the same as non-banks)
  • Analyze how regulatory capital constraints effect valuation
  • Develop assumptions about return on equity (ROE), risk weight assets (RWA), cost of equity, and minimal capital ratio that are internally consistent for a multiple stage model
  • Compare the other valuation approaches such as comps and DCF and identify strengths and limitations of each approach

Wall Street Prep’s Bank and FIG Modeling course is used at top financial institutions and business schools.

Course Samples

Course Highlights

  • Real World “On the Job” Investment Banking Training

    The Bank Modeling Self Study Program bridges the gap between academics and the real world to equip industry professionals with the practical financial skill set they need on the job. The program utilizes a case study format, as students follow their tutorial guide alongside the Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build complex O&G Financial & Valuation models the way they would on the job.

  • Support Center

    Upon enrollment, students gain 24-month free access to Wall Street Prep’s Online Support Center, where they receive answers to questions, free downloads, and important updates.

  • Boost Add-In for Excel

    Free Access to Boost, an all-in-one suite of time-saving tools designed for people who build financial models in Excel. Key features include: Easily assign custom shortcuts to all of Boost’s features; Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool; A fully functioning classic 2003 menu (in ’07 and ’10 Excel); And much more!


The course is self-paced and anyone is welcome to enroll. It does not assume a prior background in Oil & Gas Modeling. However, those who select this course should possess knowledge in:

  • Accounting: The program assumes a basic introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement). Students with no prior background in Accounting should enroll in the Accounting Crash Course.
  • Corporate Finance: Although general exposure to corporate finance is helpful, it is not required.
  • Excel: Basic introductory Excel knowledge is highly recommended. Students with limited or no experience using Excel should enroll in the Excel Crash Course.

The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.