bank analysis
Pick any U.S. bank. It will be easiest to pick a bank that is a public company, e.g., Wells Fargo. For the bank selected, please
List the bank’s main lines of businesses
Perform a Porter 5 Forces Analysis on the bank’s biggest business line
Describe how the bank funds itself, i.e. the main source of the bank’s funding
Balance sheet analysis- perform a common size balance sheet analysis and highlight any unusual items
Ratio analysis: Capital, liquidity and leverage
Profitability: Return on assets (ROA), return on equity (ROE) and EPS growth [EPS = earnings per share]
Show the bank’s recent stock price performance and compare it to the performance of the S&P 500
Indicate, in your opinion, whether this bank will benefit from higher or lower long term interest rates
Why or why not you would approach this bank for a small business or mortgage loan
What are some of the key challenges the bank is currently facing?
Note: for items 4, 5, and 6 please show a 5 year time series analysis in a table or in a chart.
This project is best done in a table form with some added graphs. You need to address each of the 10 items above to get a good grade. Information on your selected bank should be very easy to find. Please ask me for help if needed.
