Commercial Banking Financial Management Training Course
| Course code | SD-FM-031 |
|---|---|
| Duration | 5 days |
| Level | Intermediate to Advanced |
| Category | Financial Management |
| Delivery | Classroom or live online |
| Language | English |
| Certificate | Certificate of completion |
Course overview
Commercial banks must manage profitability, liquidity, capital and balance-sheet risk at the same time, often across products and business lines with competing targets. Relationship managers seek loan growth, treasury teams protect funding and liquidity, finance teams report performance, and risk functions challenge assumptions. This course addresses the practical financial-management decisions behind those tensions: how to measure true product and customer profitability, price lending against funding and capital costs, forecast liquidity, interpret capital ratios and explain financial results to senior management and regulators.
Participants work through the financial architecture of a commercial bank, from the balance sheet and income statement to funds transfer pricing, net interest margin, liquidity coverage and risk-adjusted returns. They learn to build driver-based forecasts; analyse asset-liability mismatches; calculate key profitability, liquidity and capital metrics; assess loan pricing; and use ALM and scenario-analysis outputs in management decisions. The programme also addresses IFRS 9 expected credit loss effects, Basel III capital requirements, budgeting, variance analysis and management-information reporting.
Delivery combines instructor-led technical sessions with bank-based cases, spreadsheet modelling and structured management discussions. Participants use a commercial-bank financial model to test changes in loan growth, deposit mix, interest rates, credit losses and capital constraints. By the end of the week, each participant produces an integrated bank financial-management action plan containing a profitability diagnosis, key-ratio dashboard, forecast assumptions, scenario results and recommended actions for their own business area.
The course is designed for experienced banking professionals who contribute to financial planning, treasury, lending, risk, performance management or business-line leadership and need a stronger command of the financial consequences of operating decisions.
Course objectives
By the end of this course, participants will be able to:
- Analyse a commercial bank balance sheet and income statement using profitability, liquidity and capital drivers
- Calculate net interest margin, net interest income sensitivity and cost-to-income performance metrics
- Apply funds transfer pricing to assess loan, deposit and business-line profitability
- Build a driver-based budget and rolling forecast for loans, deposits, funding costs and operating expenses
- Evaluate liquidity risk using liquidity coverage, funding concentration and maturity-gap analysis
- Interpret Basel III capital ratios and connect risk-weighted assets to lending and portfolio decisions
- Incorporate IFRS 9 expected credit loss assumptions into forecasts, pricing and performance analysis
- Produce a bank financial-management dashboard and action plan supported by scenario-analysis results
Benefits of attending
For you
- Build the confidence to challenge loan-growth, deposit-pricing and funding proposals using financial evidence
- Strengthen credibility with senior finance, treasury and risk stakeholders through shared banking performance language
- Gain practical experience linking customer and product decisions to margin, capital consumption and liquidity effects
- Create management dashboards and forecast narratives suitable for ALCO, business review and budget meetings
- Prepare for broader finance, treasury, ALM or commercial-banking leadership responsibilities
For your organisation
- Improve the quality and consistency of profitability analysis across lending, deposits and business lines
- Reduce margin erosion by embedding funding, capital, credit-loss and operating-cost considerations in pricing decisions
- Strengthen liquidity and capital planning through better use of scenario analysis and balance-sheet forecasts
- Produce clearer management information that connects financial variances to accountable operational drivers
- Improve cross-functional decisions between commercial teams, finance, treasury and risk functions
Target competencies
Who should attend
- Commercial Banking Finance Managers — who must turn business-line results into credible plans, forecasts and management decisions
- Treasury and ALM Professionals — who manage funding, liquidity and interest-rate exposures across the banking book
- Commercial Lending Managers — who need to price lending for funding, capital, credit risk and target returns
- FP&A and Management Reporting Analysts — who prepare budgets, forecasts, variance analysis and executive performance packs
- Bank Risk Managers — who need to connect credit, liquidity and capital risk measures to financial performance
- Branch, Regional and Business Banking Leaders — who are accountable for growth targets, margins and portfolio profitability
Requirements and prerequisites
Participants should have practical experience in commercial banking, finance, treasury, lending, risk or performance reporting and be comfortable reading a balance sheet, income statement and cash-flow concepts. The course assumes familiarity with core banking terms such as loans, deposits, interest income, provisions, capital and liquidity. Participants should be able to work with Microsoft Excel formulas, tables and charts; advanced modelling or VBA is not required. Prior knowledge of Basel III, IFRS 9, funds transfer pricing or asset-liability management is helpful but not required, as these are developed from operational banking applications rather than treated as assumed expertise.
Training methodology
The five-day programme uses short instructor-led briefings followed by applied bank-finance work. Participants analyse a simulated commercial bank’s financial statements, construct Excel-based forecast schedules, test funds transfer pricing and review ALM scenarios involving rate shocks, deposit outflows and credit deterioration. Small groups prepare recommendations for an ALCO-style management meeting, defending trade-offs between growth, margin, liquidity and capital. Daily exercises build toward an individual end-of-course action plan that translates the model outputs into practical reporting, planning or pricing improvements for the participant’s role.
Course outline
Day 1: Commercial Bank Financial Architecture and Performance Drivers
- Commercial bank balance-sheet structure and business-model economics
- Income-statement drivers for interest income, fee income and operating costs
- Net interest margin and net interest income calculation
- Loan, deposit and product profitability decomposition
- Cost-to-income ratio and operating leverage analysis
- Risk-adjusted return measures including RAROC and ROE
- Management information hierarchies for business-line performance review
Workshop: Participants diagnose the financial performance of a simulated commercial bank and produce a one-page driver tree explaining its margin and profitability movement.
Day 2: Funds Transfer Pricing, Lending Economics and Budgeting
- Matched-maturity funds transfer pricing principles
- FTP charges and credits for loans, deposits and contingent facilities
- Loan-pricing components including funding cost, capital charge and expected loss
- Deposit valuation, behavioural maturity and margin attribution
- Driver-based budgeting for asset growth and funding mix
- Rolling forecast design and forecast-assumption governance
- Budget-versus-actual variance analysis for banking portfolios
Workshop: Participants build a loan and deposit profitability model in Excel and recommend pricing changes for three customer propositions.
Day 3: Liquidity, Funding and Asset-Liability Management
- Liquidity risk sources in commercial banking
- Liquidity Coverage Ratio calculation and interpretation
- Net Stable Funding Ratio and structural funding assessment
- Contractual and behavioural cash-flow ladder construction
- Maturity-gap and repricing-gap analysis
- Deposit runoff assumptions and funding concentration risk
- ALCO reporting and liquidity contingency indicators
Workshop: Participants prepare a liquidity-gap report for a deposit-outflow scenario and present funding actions for an ALCO meeting.
Day 4: Capital, Credit Losses and Financial Risk Scenarios
- Basel III regulatory capital structure and minimum ratios
- Risk-weighted assets and capital consumption by lending portfolio
- Common Equity Tier 1, Tier 1 and total capital ratio analysis
- IFRS 9 staging and expected credit loss drivers
- Credit-cost forecasting and provision impact on earnings
- Interest-rate risk in the banking book scenario analysis
- Integrated stress testing for earnings, liquidity and capital
Workshop: Participants run an adverse macroeconomic scenario and produce a capital-and-earnings impact summary with proposed management responses.
Day 5: Integrated Planning, Reporting and Management Action
- Integrated balance-sheet, income-statement and capital forecasting
- Sensitivity analysis for rates, loan growth, deposit mix and credit losses
- Executive dashboard design for profitability, liquidity and capital
- Financial narrative writing for ALCO and executive committees
- Performance-accountability frameworks for business-line leaders
- Decision rules for growth, repricing, funding and portfolio actions
- Financial-management action-plan development and implementation sequencing
Workshop: Participants complete and present an integrated financial-management action plan containing a dashboard, scenario findings and prioritised recommendations.
Tools & standards covered
Microsoft Excel, Microsoft Power BI, Basel III, IFRS 9
A typical training day
| 08:30 – 10:30 | First session |
| 10:30 – 10:45 | Refreshment break |
| 10:45 – 12:30 | Second session |
| 12:30 – 13:30 | Lunch and networking |
| 13:30 – 15:00 | Third session |
| 15:00 – 15:15 | Refreshment break |
| 15:15 – 16:30 | Workshop and daily review |
Live online deliveries follow the same structure in the East Africa Time zone, with shorter screen blocks and longer breaks.
What the fee includes
- Instruction by a practitioner facilitator
- Full course workbook and materials
- Exercise files, templates and case studies
- Certificate of completion
- Refreshments and lunch (classroom deliveries)
- Post-course application plan
- Facilitator follow-up on request
- Group rates from five participants
How you can take this course
Classroom
Scheduled sessions in Nairobi, Mombasa, Kigali, Dar es Salaam, Dubai and Cape Town.
Live online
The same facilitator and materials, delivered live for distributed teams and individuals.
In-house
Delivered privately for your team, at your offices or a venue of your choice, tailored to your context. Request a proposal.
Certification
Participants who complete the full five days receive the Skillset Development Certificate of Completion, stating the course title, course code, dates and delivery format — suitable for professional-development records and employer reimbursement.
Frequently asked questions
Upcoming sessions
New dates are being scheduled. Ask us about the next session or an in-house delivery for your team.
Ask about datesGroup of 5+?
Request in-house delivery or group rates →Related courses in Financial Management
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