Detailed Financial Statement Analysis Of A Bank

robertbanking

Hello you wonderful and intelligent people that make up this forum. I sincerely hope everything is going well for you and you have had a great start to the week. 

I kindly wondered please, i know when analysing stocks to invest in, analysing a manufacturing company is fairly simple. In terms of the amount of units sold and looking at profit margins. However i kindly wondered how you analyse a banks profitability, any liabilities on its bank sheets like loans and what are the main segments of a banks profitability please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you become wealthy and have a wonderful life. All the very best to you and hope you have an amazing week. All the very best to you. 

Hoenir

Banks  have complex opaque balance sheets. Where overall profitability is determined by accounting adjustments of provisions made and released. Even Terry Smith avoids investing in banks. As they are one sector which is impossible to analyse and forecast with any degree of certainty. 

BoGoF

The other day it was Amazons growth now it's banks profitability. Are you using these forums to get someone to write your homework for you?

robertbanking

Thank you very much for getting back to me Hoenir, that is very kind of you, i really appreciate your kindness and help with this.

I have analysed alot of different company's but really no matter how hard i tried, could not understand financial statements from banks. Can i kindly please ask do you have any information on the overall profitability of the bank is determined by accounting adjustments of provisions made and released please? Lastly is there at least some way to look at the balance sheets to forecast for the future years please? If you kindly could help with this i would be forever grateful and thankful it would be highly appreciated.

Sending you lots of good wishes Hoenir and i very much hope you continue to have a wonderful evening. All the very best to you and good luck with your future endeavours.