Write a business report on Bank Pekao, S.A. (Poland). Each student needs to write a business report about the selected bank. In this report, students should evaluate the financial position and then look at how the economic situation is affected the bank strategy.
8. Business Report
Each student needs to write a business report about the selected bank. In this report, students should evaluate the financial position and then look at how the economic situation is affected the bank strategy.
8.1. General points for this report
The general points are as follows:
– Do not ramble or waffle
– One point per sentence
– Keep to simple sentences
– Check spelling and grammar
– Header: Bank name
– Footer: date, page numbers
– Wide margin on the left so report can be easily read when bound/filed
– Every student must submit one
Size of this section
– Unlikely to be as big as the section on analytical review
– Quality needed, not quantity
– Marks will be awarded for bringing in coursework
– Marks for showing you understand the implications of ratios movements
7.1 The Report Format
The final assessment of this unit of study will be based on a 1000-word report of the main body based on your business analysis, excluding annexes/appendix (Tables, Graphs and Charts). The Appendix /Annexes can include a maximum of 1000-words. The document must be written in Harvard Style.
7.2 Data Sources
To be able to process this report, you need to use Bloomberg Databases (remote access instruction on Canvas)
Other valuable sources of information:
– Read through Directors’ report (Bloomberg Terminal -Function CN)
– Read through other reports in front of Statutory accounts
– Read any articles in the financial press on the company
– Web (Google, Bing, FT etc…) search of a company for comments by market analysts
The period of the analysis is last five years.
7.3 The report structure
This report is required to have the following sections:
1. Introduction: A bank description (150 words)
2. Bank performance analysis (250 words)
3. Banking Risk analysis (250 words))
4. Bank strategy and Innovations (300 words)
5. Conclusion (50 words)
-Include Bibliography at the end of your report
-Include a list of all appendices at the end of your report
7.3 The report content
The title page must include:
– University Name
– Module Name and Module Code
– Bank Name
– Student candidature number
A summary of any relevant information is as follows:
Product/Service (as table or graph)
Direct competitors (Peers analysis)
Bank structures (for example, Personal banking, Business Banking etc.) ( as graph or table)
It is essential to select competitors (peers) in the same sector to analyse the bank strategy and financial position. A peer group is usually defined based on common characteristics, such as banks size and specialisations (co-operative, saving, commercial, and investment banks).
There are some critical steps to select competitors (peers):
-determinate main peers’ group
-if you are going to focus on the global market, then you should compare its peers in a global Scale as well.
-if you are looking at a specific country level (for instance UK market), you should compare your peer’s market share in this country.
-a helpful tool to find your competitors is Key Competitors (Peer Analysis) in Bloomberg terminal (function RV).
2. Bank Performance Analysis
-Historical review as a comparison to the peers
– Trend analysis of required ratios over last five years
– Define strengths and weaknesses to detect in the bank’s performance
– Summary Table of ratios in Appendix
Interpretation of ratios
Group into categories
– CAMELS rating analysis
– Efficiency Ratio
There are two basic types of analysis
– most used, as each can be used for some financial companies. It is the main ratios that students must discuss in their report.
3. Bank Risk Analysis
-Historical review as a comparison to peers
-Trend analysis of required ratios over last five years
-Define strengths and weaknesses to detect in bank’s risk
-Summary Table of ratios in Appendix
Interpretation of ratios
Group into categories
– Overall Risk
– Liquidity Risk
– Credit Risk
– Off-Balance risk
– Capital Risk
3.Bank strategy and Innovations
You should define what type of financial innovations or technological innovations were Implemented by this bank compare to their peers in the last five years.
Also, it would be best if you analysed how these investments in new technologies or innovations impact financial ratios, bank performance and bank strategy.
– The conclusion must be drawn from the evidence in your report
– Must refer to your workings and your conclusions
– All conclusions must be based on facts
– Must reference all sources
– Web pages must include the date of a hit as well as web address
– Press must include the date of publication as well as the writer
– Reference can be done as Harvard style