Bank analysis is easy.

Good day to you, dear visitor.

Using the data in the table, you can perform a basic financial analysis of a commercial bank. To do this, transfer the data from the financial statements to the calculation tables, then click the "update" button and the indicators will be calculated automatically.

Please note: starting from 2016, the reporting of banks has changed. The new version of the service for analyzing the financial condition and results of the bank's activity is located here:.

Enter the original bank balance sheet and income statement in the light blue cells, replacing the example numbers.
Then scroll down the page, click the "refresh" button - all data will be recalculated. They will only need to be selected, copied and transferred to your document.

On this page, you can perform a basic analysis of the financial and property situation of the bank and its financial results:

Horizontal analysis of asset dynamics
Vertical analysis of asset structure
Horizontal analysis of the dynamics of liabilities
Vertical analysis of the structure of liabilities
Horizontal analysis of the dynamics of sources of own funds
Vertical analysis of the structure of sources of own funds
Horizontal analysis of the dynamics of off-balance sheet obligations
Vertical analysis of the structure of off-balance sheet liabilities
Horizontal analysis of the dynamics of financial results

Analysis conclusions are based on the identified problems: examples of problems identified in the analysis.

Examples of activities to address identified issues: examples of activities for WRCs.

You can make conclusions on financial analysis yourself, or order them on any exchange for students.

To estimate the cost, you can leave a request on the exchange. If no one comes up, just delete the application and that's it.

Best regards, Alexander Krylov. You can contact me using vk.com/aldex.

Before entering data, please read this article:

If the table does not fit, open it in a new window: analysis of the financial condition and results of the bank

The financial analysis:

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Definition 1

A commercial bank is a credit institution that carries out settlement, payment, deposit operations for individuals and legal entities. At this stage of the formation of the economic sphere, banks are the main instrument for the development of market relations.

The development of entrepreneurial activity, an increase in the volume of funds, the growing interest of non-residents in operations on the Russian market lead to the accumulation and redistribution of a significant amount of cash resources in commercial banks.

The vigorous activity of Russian banks in the interbank market, the securities market, currency and resources, the transition to the international chart of accounts led to the need for banking structures to conduct financial analysis, the methods of which have been tested in Western countries. However, this analysis must be carried out in accordance with the requirements of the current legislation of the country.

Remark 1

The purpose of the financial analysis of a commercial bank is to confirm its reliability as a counterparty for other banks. The main tasks of analyzing the activities of a commercial bank are to determine whether the organization's liquidity requirements are met, to identify the sources and quality of bank income, and to maintain the bank's sufficient capital level.

The main criteria for the financial analysis of a commercial bank

Analysis of liquidity, profitability and capital adequacy makes it possible to assess the correctness and efficiency of resource management of a commercial bank, therefore, to analyze the prospects of its work and competitiveness in the financial market.

When conducting a financial analysis of a commercial bank, the following criteria are taken into account:

whether the economic standards that are established by the current legislation are met;
analysis of indicators that reflect the effectiveness of equity capital management;
analysis of indicators that determine the cost of own and borrowed funds;
identification and analysis of indicators that characterize the process of distribution of liabilities and assets of a commercial bank, as well as the management of the types of its active operations (operations with corporate and government securities);
analysis of factors that have a direct impact on the activities of the bank and its financial condition;
performing calculations that are associated with determining the profitability of financial instruments (both at the planning stage and in the process of conducting current activities).

In the process of calculating analytical indicators, quarterly and annual data of income and expenses are applied, as well as averaged indicators of the balance sheet are calculated.

Financial analysis of the bank's profit and loss statement

The profit and loss statement of a commercial bank reflects all of its income, expenses and the profits that remained at the disposal of the owners from doing business.

The business of any commercial bank is that it attracts funds at a percentage of the population, enterprises and other bank counterparties, after which it issues the attracted resources as loans and borrowings at a higher interest rate. The difference between the interest rates covers employee salaries, rental of premises and other expenses.

Definition 2

Accordingly, the main income of a commercial bank is payments that repay interest for the use of credit and loans from individuals and enterprises. And the main expenses of the bank are payments on deposits of the population.

In addition, there are incomes in banks from conducting related activities: profit from settlement and cash services of enterprises, provision of paid services to individuals. Most commercial banks are participants in the securities market, thereby earning from investing funds. The bank's expenses, in addition to paying interest on deposits, include: utility bills, advertising products and services, paying taxes, and so on.

A financial analysis report in a commercial bank contains the following sources of income:

Placing funds in credit institutions - receiving interest on loans issued to other counterparties.
Loans to customers that are not credit institutions. This includes interest on loans that were issued to individuals and businesses. Often it is this indicator that constitutes the main profitability of the bank. However, there are such banks, which have a general percentage of profitability formed from investments in securities and participation in the interbank market.
Provision of services for financial lease. This source of income is generated from the receipt of interest on leasing operations. Leasing is a complex multifaceted transaction in which the company does not receive a cash loan, but equipment or vehicles that it needs to conduct effective activities. The leasing bank settles with the supplier of machinery or equipment, and the company pays interest to it in a certain period, gradually returning the lease debt.
Investing in securities - interest earned from purchased bonds of enterprises or other commercial banks.
Fee and commission income is a large part of profit. This includes income from settlement and cash services, foreign exchange transactions, servicing plastic cards, as well as providing bank guarantees.

With regard to expenses, which are also part of the financial analysis of the bank, these include the following:

Interest expenses on borrowed funds. This includes fees for loans taken from other commercial banks. Since there are always organizations that are actively lending to the population, there are always banks that resort to these manipulations. To prevent the borrowed funds from lying around, banks are actively lending to each other for periods of one business day or more.
Interest expenses on attracted funds of those customers who are not credit institutions. This includes those interests that are paid on deposit transactions of individuals and legal entities.
Interest expense on debt securities issued. This is the payment of interest on issued bonds of a commercial bank.

Remark 2

When conducting a financial analysis of the bank, you should add up all income and deduct expenses. The result is profit before tax. And only after deducting tax is the net income for the reporting period obtained.

Analysis of the balance of a commercial bank

The balance sheet of a commercial bank contains assets and liabilities. Assets can be divided into current and non-current, but they are all presented together in decreasing order of liquidity - first comes cash, and finally long-term assets.

Assets in any banking structure are what allows you to earn money. In most banks, these are loans issued. After that, a special place is given to the acquired securities.

In the financial analysis of the bank, the balance of securities is allocated three items.

Financial assets valued at real value through loss or profit, is a short-term portfolio of securities that are intended for sale in the near future (stocks and bonds, options, futures). They are valued based on market value.

Net investments in securities and financial assets - these are those securities that are purchased for a long time for the purpose of resale.

Net investments in securitiesheld to maturity - in this case, investments in promissory notes and bonds that were purchased in order to generate income from their redemption are reflected.

Banking analytics portal "Analysis of Banks" has prepared a financial analysis of Legion Bank.

The analysis of more than 60 economic indicators was taken into account, reflecting: the bank's creditworthiness, liquidity and reliability (highly liquid assets, current liabilities, liquidity ratio during the year), the structure and dynamics of the balance sheet (income assets, the degree of security of issued loans, the structure of interest-bearing liabilities), collateral , profitability, equity and other indicators.

Analysis of financial activities and statistical data for the past year of JSCB Legion (JSC) indicate the absence of negative trends that can affect the financial stability of the bank in the future.

The bank's reliability and current financial condition can be rated “very good”.

Statistics on negative factors:
number of unreliability indicators - 0;
the number of volatility indicators is 0.

Reference:
The banking analyst portal "Analysis of Banks" is a professional online resource for analyzing the financial statements of Russian banks. The project started in 2011. Created by the consulting company Asoft Consulting.
The initial data are the reports of banks published by the Central Bank of Russia on forms 101, 102, 123, 134, 135. It is also possible to download specific reports of banks (for example, form 110) and calculate official forms (for example, forms 806, 807).

In this article I will dwell on some of the criteria for assessing the reliability of banks. We will talk about banking standards and other important financial indicators.

A bank's reliability is largely determined by its financial stability. Financial stability is the ability of a bank to withstand external and internal negative factors affecting its financial position.

In order to make it easier to determine the reliability and financial stability of the bank, there are banking standards.

Banking regulations

The standards were developed by the Central Bank of Russia and are mandatory for all banks. Banking standards are calculated on the basis of monthly financial statements of banks and are constantly monitored by the Central Bank. In case of violation of the regulations, the Central Bank can impose restrictions on the bank's activities and banking operations, for example, prohibit accepting deposits from individuals, impose fines, introduce a temporary administration and ultimately revoke the license.

There are 9 mandatory banking standards. Formulas for their calculation can be found in the instructions on the website of the Central Bank of the Russian Federation.

H1 Equity capital adequacy ratio (minimum 10%)
H2 Instant liquidity ratio (minimum 15%)
H3 Current liquidity ratio (minimum 50%)
H4 Long-term liquidity ratio (maximum 120%)
H6 Maximum exposure per borrower or group of related borrowers (maximum 25%)
H7 Maximum exposure to large credit risks (maximum 800%)
H9.1 The ratio of the maximum amount of loans, bank guarantees and sureties provided by the bank to its participants (shareholders) (maximum 50%)
H10.1 The ratio of the aggregate amount of risk for the bank's insiders (maximum 35%)
H12 The norm for the use of the bank's own funds (capital) for the acquisition of shares (stocks) of other legal entities (maximum 25%)

The first four standards - capital adequacy and liquidity - are basic.

Capital adequacy ratio H1.0

The bank receives its main income from interest. The bank attracts borrowed capital in the form of deposits and also issues loans or invests money in securities. For example, a bank attracts deposits at 10%, and loans at 20%. The bank earns a profit on the difference in interest between attracted deposits and issued loans. Moreover, the amount of borrowed capital significantly exceeds equity capital. If the bank's income decreases significantly, for example, borrowers stop paying interest on loans, the bank may suffer a loss. The easiest way to recover losses is to cover them from your own capital.

The bank's capital adequacy ratio is the ratio between equity and assets, adjusted by a coefficient depending on the degree of risk (loans issued, investments in securities, other investments have different risks). It shows the bank's ability to recover financial losses from equity capital. The greater the value of this standard, the more the bank's own funds in total assets, the greater the financial stability of the bank. The minimum capital adequacy value established by the Central Bank is 10%. If the capital adequacy ratio is less than 2%, the Central Bank is obliged to revoke the bank's license.

Liquidity ratios

Liquidity ratios show the bank's readiness to fulfill its obligations. Deposits and customer funds on current accounts are liabilities for the bank. Depositors can demand them at any time, and the bank must be ready to issue funds to its depositors. Bank assets (money, loans, securities) differ in liquidity. The most liquid ones are money at the cash desk, ATMs and on bank accounts. The bank can issue these funds and transfer to another account at any time. But the bank does not keep all its assets in the form of money, most of the bank's assets are loans or securities. In the event that current funds run out, the bank can sell its securities in a short time and convert them into money in order to fulfill its obligations. However, the lion's share of the bank's assets are loans. With loans it is much more difficult, the bank issues some loans for many years and cannot return them at once. Therefore, a bank must maintain a balance between highly liquid and low-liquid assets in order to be able to fulfill its obligations on time and at the same time earn a profit. The ability of a bank to fulfill its obligations can be assessed using liquidity ratios.

There are 3 liquidity ratios depending on the term: instant, current and long-term.

Instant liquidity ratio H2 shows the risk of loss of the bank's solvency within one day. This is the ratio of the bank's highly liquid assets, which the bank can realize during the day, to the amount of obligations that the bank must fulfill or can claim from it within one day. Such liabilities include amounts on current and settlement accounts, demand accounts, overnight interbank loans. The amount of these liabilities is adjusted by the amount of the minimum required account balance. The minimum value of the standard is 15%.

Current liquidity ratio N3 shows the risk of loss of the bank's solvency within the next 30 days. This is the ratio of the amount of the bank's liquid assets to the amount of the bank's obligations that the bank needs to fulfill or that the bank may require to fulfill within the next 30 days. The minimum value of the standard is 50%.

Long-term liquidity ratio N4 shows the risk of loss of the bank's solvency as a result of placing funds in long-term assets. This is the ratio of long-term loans issued by the bank with a maturity of more than a year to the bank's own capital and the bank's liabilities with a maturity of more than a year. The maximum value of the standard is 120%.

Bank financial performance

Return on assets and equity

Return on assets and equity capital show the efficiency of the bank. Profitability is the ratio of return on assets (ROA) or equity (ROE). The higher the profitability, the more efficiently the bank uses its or borrowed capital to make a profit. If the return on equity has declined during the year, this may mean that the bank is experiencing some kind of problems.

Delay on loans

Not all borrowers of the bank return loans on time. Some part of the loans is always overdue. The share of delinquencies can increase especially strongly during a crisis. If the client does not return the loan, then the bank is not making a profit. At the same time, the bank is obliged to reserve part of its funds for loan losses. The greater the proportion of delinquent loans, the greater the bank's risk. Overdue over 10% is large.

Net interest margin Is the difference between interest income and interest expense, divided by the amount of interest (income) assets of the bank. Shows what net income as a percentage the bank's assets bring.

Return on assets - the ratio of interest income to interest-bearing assets. Shows the profitability of the bank's interest-bearing assets - loans and securities.

The cost of liabilities - the ratio of interest expenses to the amount of interest-bearing liabilities. Shows the extent to which the bank costs borrowed capital - deposits and loans taken from other banks.

The financial performance of the bank and banking standards should be viewed in dynamics. So you can see certain trends. Let's list the negative factors that you need to pay attention to:

capital adequacy ratio is close to the minimum level of 10%
liquidity indicators are close to minimum values
decrease in return on assets
increase in loan delinquencies
decline in asset returns
increase in the value of liabilities
decrease in net interest margin
a strong decline in the share of deposits of individuals in liabilities - means that depositors are taking money from the bank

Where can I look at banking standards and other financial indicators of the bank?

Banking standards and financial indicators of the bank are calculated on the basis of financial statements, which the bank is obliged to disclose every month. Reports and standards are published on the website of the Central Bank of the Russian Federation in the section "Information on credit institutions". But it is much more convenient to analyze the bank's performance on specialized sites kuap.ru and analizbankov.ru.

Take Bank Trust as an example. In December 2014, a decision was made to reorganize Trust Bank. Bank Trust faced a lack of liquidity and failed to cope with the raid of depositors during the banking panic. Later, the Central Bank discovered a "hole" in its capital of several billion rubles.

On the website kuap.ru for each bank there is a section "Financial analysis (form 135)". This section publishes financial indicators and banking regulations. Section "Key indicators" shows the dynamics of various financial indicators: profitability, return on assets, cost of liabilities, etc. In section "Financial position" shows the main banking standards - capital adequacy and liquidity. Below is a mini-summary and a list of violations of banking regulations. The Trust Bank often violated the N1.1 capital adequacy ratio, and the capital adequacy ratio is close to the critical level of 10%.

Bank Trust Recommendations:
Trust bank reliability rating is unsatisfactory.

capital adequacy H.1
liquidity ratios
the amount of capital, profits and deposits of individuals
share of deposits of individuals and legal entities
other

Even good banking standards and financial performance cannot fully guarantee a bank's reliability. Financial statements can be falsified, much depends on the reputation of the bank and its owners, as well as the behavior of depositors. An avalanche stream of customers taking their money can overwhelm any, even the most reliable bank. Therefore, when making a decision, evaluate others as well.

Today I would like to once again digress from the main topic - Internet investments and spend on a banking topic that is close to me professionally.

In my last banking educational program, I wrote about, where I used an easy way to assess the financial condition of a bank Pushkino over the last year of its existence, based on public reporting available to everyone. This analysis made it possible to say with confidence that the bank had serious problems and it is no longer worth keeping your money in this bank.

In the comments to that publication, I was asked to write about how a non-specialist can understand whether it is worth trusting the bank with your money or not. It is to this topic that I want to devote this post.

It would seem why should we, people who invest on the Internet and have a portfolio yield much more than any type of bank investment, be able to know how to determine the current state of affairs of a bank?

But we all have relatives, friends and colleagues - for most of them, a bank deposit has been and will always be the main type of storage and augmentation of their capital, and people, in their impulses to search for the most effective options for investing their funds, are ready to invest in any bank - if only it was a bank And having the basic skills of analyzing banks, you can evaluate the correctness of the choice of your friends and tell them whether or not to keep money in a particular bank, which is currently being considered as an option for placing funds.

Choosing a victim

To give an example, you need to decide on the bank that we will analyze. We don't have to guess especially here - we originally planned to analyze banks that offer the population deposits at high interest rates.

We go to the website banki.ru and on the main page on the right we see the best offers for deposits:

Actually, of the listed banks that offer us the highest interest rates on deposits, I only know Credit Bank of Moscow and Ugra... I haven't even heard of the rest of the banks.

For analysis, I will choose Ergobank - since its name is the most "post soviet", which obviously came in our modern time of short abbreviations from not distant, but very dark 90s. Usually, the absence of a normal name for a bank is evidence of the bank's unwillingness to develop - the name of the bank is the basis of the brand and the basis for the growth of the bank's recognition necessary today for the successful development and conduct of business.

And given the absence of this most important feature of a modern bank, Ergobank attracts deposits from individuals at the maximum interest rate for the market today. If the bank is actively attracting money, then the main thing that we need to understand is where the bank invests this money.

If a bank invests attracted funds in a business that can really bring high income, and in order to cover expenses of 11.5%, the business must bring high income by banking standards, then you can keep a deposit in this bank.

If the bank uses the attracted funds of depositors for incomprehensible purposes, then this is the first sign that something is wrong with the bank and it may be worth bypassing it.

Of course, the publicly available reports of banks are not enough to assess in detail the financial condition of the bank and to understand why the bank is doing well or why the bank is doing badly, but in order to draw the correct conclusions about whether to bypass the bank or not to bypass this reporting more than enough.

Stage one - does the bank have the right to attract deposits?

The first thing to do is go to the website of the Central Bank in the section information on credit institutions and find the bank we are interested in.

After you find the bank, you will see a page with basic information about it.

(picture is clickable)

We see that Ergobank possesses " License to attract deposits of individuals' funds in rubles and foreign currency (01.22.2001)"Since it participates in the deposit insurance system. This is good, as if in these fields something like this was written" The license was revoked by order of the Bank of Russia No. OD-673 dated 09/30/2013"(Thanks to the bank Pushkino for a sample), it means that the bank no longer has the right to accept deposits. The fact is that there have already been precedents when, after revoking the license, the bank continued to accept deposits - here these are precedents exceptional in their absurdity.

We also see that the authorized capital of the bank (highlighted in blue) is 192 million rubles, with the current minimum of 180 million rubles, i.e. turns out that Ergobank is a very small bank, probably one of the smallest banks in the Russian Federation. Let's check the size of this Ergobank now among all banks in the Russian Federation.

Stage two - is it a big bank or is it a small bank?

Let's check my statement, for this we go to the rating of banks by size (in terms of net assets).

We see that Ergobank takes 428 place out of 921 that is, it seems to be not the smallest. But in reality, this bank will be considered small.

An employee of a bank included in the TOP-100 can say loudly and proudly “our bank is in the TOP-100!”, An employee of a bank included in the TOP-200 can say proudly but not very loudly “but we are in the TOP-200!”, But no one will say proudly that the bank is in the TOP-300 or TOP-400.

And this is an indicator, because all banks not included in the first 2 hundred of the largest banks are mostly small things. Some small things can be called large, and some cannot be called large.

In the banking sector, it is believed that the more - the better, the more - the more reliable, here size matters. And small size Ergobank this is his big minus.

Stage three - is the bank making a profit?

On the website of the Central Bank, in the previously open form of the bank, just below the information on licenses, there is a small table about the profit made for the current financial year - you can also pay attention to it.

In the table, the value of the profit received by the bank for 9 months of 2013 is highlighted in red, the profit is “only” 7 784 thousand rubles. The figure itself does not mean anything, it is desirable to get from this amount the annual profitability of the bank's assets: 7 784/4 500 000 * 9 \u003d 1.5% per annum at a rate of somewhere in% 2.2-2.5% - in the banking market. the bank does not have a superior parent organization, then this is very bad, as the extremely low profitability of the bank indicates the inefficiency of bank management.

If the bank is a larger subsidiary of which the bank is owned by more than half, then the lack of profit can be explained by the fact that all profit by the shareholder can be concentrated in the parent company.

Stage four - who owns the bank?

In our case, it turns out that such a "parent" company does not exist. Ergobank is owned by several individuals and one lawyer in approximately equal shares.

Data on the ownership structure of a bank is public information, which must be available on the bank's website in the "reporting" section or in sections such as "about the bank".

I found this ownership structure in the bank's financial statements for 2012, which was in the “reporting” section of the bank's website.

Thus, the low profitability of the bank suggests that either the bank is not very efficient or in fact it is unprofitable, but its losses are not reflected in the financial statements. Is it possible that the bank is unprofitable, but in the official reporting, as we see, a small but profit is indicated? This is quite real, there are 100,500 ways to draw a bank profit.

Obviously, the larger the bank, the more difficult it is to arrange reporting fraud, and if the bank is not big and your auditor is not PWC (one of the world's largest auditors), and " Collegium of Tax Consultants "(LLC" KNK ")- then the reporting can be drawn very different.

In principle, the above information is completely insufficient to accuse or suspect the bank of something officially, but in general, the information listed is more than enough for me not to keep my money in it in order to get an extra 1% per annum.

Stage five - what does the bank do?

On the other hand, we have not yet understood where the Bank places the depositors' money, and this is also a very important point and an interesting point that must be understood.

In order to understand this, we need to look at the structure of the balance Ergobank in dynamics. To do this, you can use a specialized site where you can conveniently view the balances of all banks in the Russian Federation - Kuap.ru.

Balance Ergobankas follows

And now I will make a small digression about what is in any balance sheet of any organization, and what it means in human language.

Assets is the total value of property / funds that someone owes the bank. Assets are cash on hand, loans issued by the bank, shares and other securities that the bank bought. In other words, this is all that the bank invests in to generate income.
Passive is the total value of property / funds that the bank owes someone. Liabilities are divided into 2 large parts:
- Commitments - this is the money of depositors, the cost of issued and sold bonds, the debt of banks to pay for something to counterparties, i.e. everything for the use of which the bank pays not to its shareholders, but to third-party counterparties
- Own funds - profit and authorized capital, i.e. everything for the use of which the bank has to pay shareholders in the form of dividends

Moreover, the sum Asset is always equal to the amount of the Liabilitysince the organization itself cannot own anything - it is just a buffer between shareholders and counterparties.

So back to our balance.

I highlighted the lines that we need in red:

Assets
Loans to legal entities
Loans to individuals
Urgent funds of individuals

I wrote down the values \u200b\u200bfrom these lines in a separate table.

Aggregated balance sheet - ERGOBANK
Balance sheet item, million rubles	01.01.12	01.07.12	01.01.13	01.04.13	01.07.13	01.10.13
ASSETS	1 263	1 770	3 193	3 641	4 037	4 514
Loans to legal entities	87	164	639	933	1 320	1 756
Loans to individuals	526	653	954	1 072	1 348	1 396
urgent funds of individuals	293	693	1 451	2 060	2 527	2 807

relative indicators	01.01.12	01.07.12	01.01.13	01.04.13	01.07.13	01.10.13
The share of fixed-term funds in FL in liabilities	23%	39%	45%	57%	63%	62%
Share of FL loans in assets	42%	37%	30%	29%	33%	31%
Share of loans to legal entities in assets	7%	9%	20%	26%	33%	39%