CASE STUDY INSTRUCTIONS

The following articulates the overall basic procedure and presentation details for all three cases for the semester; each case will be laid out the same way.

PURPOSE

The purpose behind these studies is: (1) help you develop a strong awareness of the financial structure of depository financial institutions, insurance companies, and and investment companies, respectively; (2) further your financial analysis skills; and (3) broaden your understanding of the risks and strengths inherent in the important financial institutions in the United States.

PROCEDURE

There will be a total of three case studies, assigned separately, to wit – a randomly assigned bank, , and investment company. It is your task to analyze the financial structure of each company provided. Analysis consists of both narrative and Excel analysis. When submitted, it should contain, as a minimum, the following:

Contents:

• Identifying Data – This is a cover page (see attached format)

• Narrative –

  • A brief summary of your data analysis findings, bullet format permitted UNLESS YOU FEEL A MORE DETAILED NARRATIVE IS NECESSARY.

  • A SUMMARY OF YOUR ANALYSIS OF THE FINANCIAL INSTITUTION’S SOUNDNESS. This section may employ comparative, general financial institution data and would be best NOT in bullet format.

• Excel Spreadsheet – 2 years of data to be obtained from SEC/Edgar and/or FDIC.gov since these are the primary sources for financial data. In other words, don’t necessarily trust Yahoo! or MSN Money.

  • the Financial Institution’s:

    • ROE and ROA

    • Equity Multiplier

    • Profit Margin (net income/total operating income), plus these detailed sub-ratios: interest income/total operating income, provision for loan loss/total operating income, non-interest expense/total operating income, and /total operating income (for )

    • Asset Utilization (total operating income/total assets), plus these sub-ratios: interest income/total assets and non-interest income/total assets (for banks).

You are free to use other ratios and analysis techniques (i.e., DuPont Analysis) but only if you feel they are important in making a point in either your analysis or conclusions. Don’t add them just to impress me; I won’t be impressed.

Maximum narrative length: 2 pages plus cover page and Excel file.

Use cover page template, below (don’t get creative here. I want the cover EXACTLY as shown – with your info obviously):

NAME OF INSTITUTION (Symbol)

Headquarters Address

Sector (i.e. Regional "Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"