AD477 – Project Paper

Student Dictionary Template

STUDENT Dictionary Template

Each student will prepare his/her own Banking Terminology Dictionary.

Minimum 50 words. Students should send their exel Dictionary to before the final exam.

(download the template)

Sample Ratios for Bank Balance Sheet Analysis

Project Paper

  1. Each student has to prepare a “Project Paper” (PP).
  2. The PP topic is “Evaluating the Performance of ABC Bank”
  3. Each student should choose a different Bank for the PP. (list of banks will be updated in the class by the instructor)
  4. You should obtain from the Bank 2 consecutive years English “Audited Annual Reports”.
    1) For your project paper get the Financial Statements and Notes to Financial Statements from the “Annual Report” of the bank published on the bank’s Web Page.

    2) In the “Annual Report” you will see 2 kinds of Balance Sheets & Income Statement. 1. Consolidated 2. Bank Only. In your  Project Paper, you may use the Bank Only Balance Sheet & Income Statement. Consolidated includes bank plus all its subsidiary companies. It will make your analysis more complicated. If you analyze Bank Only Financial Statements it will be easy for you.

  5. (Due to Covid19 you need not do this step) You should make an interview with a Manager of the bank, to receive answers to your questions on the Bank Performance. You should obtain his/her “Business Card” and staple it to your project paper.
  6. The suggested “CONTENT” of your PP may be as follows:
    1. (Due to Covid19 you need not do this step) Interview Evaluation Form (click here and print the form).
    2. General Background Information
    3. Banking Strategy and Mission Statement
    4. Financial Highlights
    5. Balance Sheets (TL, USD, %Mix), (increase-decrease in B/S captions) and (Common Size Analysis by equating Total Assets =100%) 1.Vertical & 2.Horizontal Analysis.
      See an Example of Horizontal § Vertical Analysis

      To see an example of Vertical & Horizontal Analysis
      Example 1 excel please tick this line.
      Example 2 excel please tick this line

    6. Statements of Income (increase-decrease in I/S captions) and (Common Size Analysis by equating Total Interest Income =100%) 1.Vertical & 2.Horizontal Analysis
    7. General Analysis of the Balance Sheet and Income Statement changes between 2 years. Explain the reason for the major increase or decrease)
    8. Ratio Analysis (to download sample ratios).  (You should pick only 3 ratios from every 4 categories below and calculate the ratio for 2 years. Compare the 2 ratios and indicate if it is a favorable or not favorable change for the bank)
      1. Capital Adequacy
      2. Asset Quality
      3. Earnings and Efficiency
      4. Liquidity
        Ratio Analysis of a Sample Bank  excel sheet
  7. SWOT Analysis
  8. Conclusion