Bank Analysis School - September 2023

Internal Use Only

Demands on Earnings

Shareholders

Regulators

• Return on investment • Cover tax liability (Sub. S banks) • Service holding company debt

• Augment capital • Absorb losses

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