Bank Analysis School eBook

Internal Use Only

Determine “Core” Earnings

“

The quality of earnings may be diminished by undue reliance on extraordinary gains, nonrecurring events, or favorable tax effects.

” ”

- FDIC Risk Management Manual

Internal Use Only

Learning Objectives

1 – How Banks Make Money 2 – Income Statement 3 – UBPR Ratio Analysis 4 – Budget 5 – Impact on Capital 6 – Risk vs. Return