Develop a comprehensive paper, discussing the financial standing of your bank. You will access the financial actuals. That is, historical financial data for the past five years for the Wells Fargo bank, as well as your bank’s competitor.
– This may be taken from the commercial bank’s web site, or from the SEC web site. Develop a Microsoft Excel 2007 spreadsheet model using data given in the Statement of Financial Position. This should include the balance sheet, income statement; and five to 10 common industry-specific financial ratios for both your selected commercial bank and its competitor.
– Given your Microsoft Excel spreadsheet, and the information it yields, write a report which discusses your commercial bank’s strengths and weaknesses. This report must be written using the Microsoft Word 2007.
– Access the prevailing rates set by the Federal Reserve Board.
– Prepare a chart and analyze your selected commercial bank’s historical profitability with the Federal Reserve interest rates over the past five years.
Discuss how these rates affected your bank’s profitability.
– Read the Annual Report of your selected commercial bank. Answer and discuss the following: What is the announced mission, and future direction, as stated by the bank’s Chief Executive Officer? Is your commercial bank in a good financial position to achieve those objectives?
– Prepare a forecast of your selected bank’s projected profitability (You forecast this!). Assume that the Federal Reserve Board holds the interest rates “as is” or constant.
– Discuss the impact this constant interest rate would have on three years of your bank’s profitability.
– submit both the Microsoft Word 2007 document, as well as a Microsoft Excel 2007 spreadsheet files, reference page should be included at the end of your Word document.