This bank financial model template is used to value financial institutions group (FIG) companies. This is a comprehensive model that analyzes the historical financial statements of a bank and forecasts five years of financials in order to reach an implied share price.
This model can be fully modified and applied to any bank or other FIG company. Use this model to build out scenarios and test multiple business cases for financial institutions groups.
This bank financial model template includes the following:
- Summary of Financial Information – capitalization, credit, ownership, and stock information
- Historical Financial Statements – income statement, balance sheet, cash flow statement
- Capitalization and Leverage Ratios and Statistics
- Projected Financial Statements – three statement model, capitalization summary, interest rate calculations, financial ratios
- Scenario Analysis
- Valuation and Implied Share Price – dividend discount model
Financial Institutions Group (FIG) Companies
Financial Institutions Group, or FIG, is an industry classification. FIG consists of companies that provide advisory services to financial institutions clients. FIG companies consist of firms such as banks, insurance firms, and asset management firms. Unlike most industries, FIG companies do not produce a tangible output. Financial analysts need a specialized model to properly evaluate FIG companies, such as this bank financial model template.
For a different look at bank valuation, take a look at CFI's banking industry comps template!
Three Statement Model
This template uses a three statement model to project a bank's financials forward five years. By using a three statement model, this template is able to take advantage of the following benefits:
- Easier to navigate (don’t have to switch between tabs)
- Less risk of mislinking formulas (all time periods are in the same column)
- More organized with the use of grouping cells
- Allows more room for consolidating multi-business companies
Dividend Discount Model
This model also uses the dividend discount model method to value a company. The dividend discount model assumes that the current fair price of a stock equals the sum of all of the company's future dividends, discounted for their present value.