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AIB Understanding Bank Performance
AIB Course Code: 6953

Dates Offered | Registration (Deadline is one week prior to start date)

Understanding Bank Performance is designed to help non-financial professionals understand the basics of bank financial statements and how they are used to evaluate bank performance.

Audience

This course is designed for non-financial professionals throughout the bank. This would include branch managers, marketing professionals, human resources professionals, and information technology professionals. Any line manager who has not been exposed to the basics of evaluating bank performance would benefit from this course.

Learning Objectives

After completing this program, you will be able to:

• Identify the key balance sheet and income items for a bank
• Describe how a bank makes money
• Describe key performance measures for the bank
• Understand the types of risks that banks must manage
• Identify the key measures of risk within the bank
• Identify the major factors affecting bank performance
• Understand how the profitability of various lines of business within the bank are evaluated
• Understand the use of the balanced scorecard to look at financial and non-financial measures of performance
• Identify the key drivers of non-interest income and non-interest expense
• Understand how banks attempt to measure customer profitability

Topics by Week

• Week 1. Overview of course
• Week 2. Bank balance sheet and income statements.
• Week 3. Key ratios in evaluating performance. How to calculate them and how to use them to evaluate performance
• Week 4: Non-financial measures of bank performance, the concept of the balanced scorecard
• Week 5: Line of business profitability, Customer profitability, and final exam.

How the Course Works

The course is delivered over the Internet and is divided into 5 modules with 1 module covered each week. Each module consists of a brief 5 to 10 page reading (which can be read online or print for reading offline), a self-check quiz to help you determine if you understand the concepts, and a short exercise in which you apply concepts to your own bank. The exercise will be either e-mailed to the instructor or posted on a threaded discussion board. The instructor will be available to answer questions by e-mail or through the threaded discussion board. There is no single time during the week that participants must go to the website to participate. It is anticipated that each participant will spend between 2 and 3 hours each week during the course.

Questions? Please contact online@aba.com or 1-800-BANKERS for more information.