Business Report: Union Bank of the Philippines

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 affected the bank strategy.

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

Required Format - 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 for showing you understand the implications of financial ratios

9.1 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

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 on the company in the financial press

Web (Google, Bing, FT etc...) search of a company for comments by market analysts

The report structure

This report is required to have the following sections:

Introduction: A description of the selected bank (150 words)

Bank performance analysis (250 words)

Bank Risk analysis (250 words))

Bank strategy and Innovations (300 words)

Conclusion (50 words)

-Include Bibliography at the end of your report -Include a list of all appendices at the end of your report

1. Introduction

A summary of any relevant information as follows:

Geographical location/s Products/Services (in tables or graphs) Direct competitors (Peer analysis) Bank structures (for example, Personal banking, Business Banking etc.) (in tables or graphs)

Peer Analysis

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 bank size and specialisations (co-operative, savings, commercial, and investment banks).

There are some critical steps to select competitors (peers):

determine the main peer 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 the UK market), you should compare your peers 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

Analytical review

- Historical review as a comparison to the peers - Trend analysis of required ratios over the last five years - Define strengths and weaknesses to detect in the banks performance - Summary Table of ratios in Appendix

Interpretation of ratios

Group into categories

CAMELS rating analysis

Efficiency Ratio

Those are the two basic types of analyses - most used, as each can be used for some financial companies. It is the main ratio that students must discuss in their report.

3. Bank Risk Analysis

Analytical review

- Historical review as a comparison to peers -Trend analysis of the required ratios over the last five years -Define strengths and weaknesses to detect in banks risk -Summary Table of ratios in Appendix

Interpretation of ratios

Group into categories

Overall Risk

Liquidity Risk

Credit Risk

Off-Balance Sheet risk

Capital Risk

3. Bank strategy and Innovations

You should define what types of financial innovations or technological innovations were implemented by this bank compared to their peers in the last five years.

Also, it would be best if you analyze how these investments in new technologies or innovations impact financial ratios, bank performance, and bank strategy. 4. Conclusion

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

Bibliography

- Must reference all sources - Web pages must include the date of a hit as well as the web address - Press must include the date of publication as well as the writer - References can be presented in Harvard style

8. The Assessment Criteria, weighting, and mark allocations are shown below.

Individual Report: 1,000 words (excludes appendices)