Stress Testing and Capital Planning

Nothing is more important for a bank than having a sensible strategy for the bank’s future that will maximise shareholder value whilst ensuring the bank is primed for a productive and rewarding life in the community. Invictus takes a highly analytical approach to your bank, its market, its competition and its prospects, using sophisticated technology developed and continuously refined since 2011. We believe the traditional metrics for bank planning and valuation are outmoded – they simply no longer work in the low-interest rate world that we now inhabit. We do things differently.

Our technological investment means we run a stress test on all FDIC-insured banks in the country, every quarter. We analyse banks using loan vintage, which gives a far better understanding of the bank’s immediate future than a static balance sheet method which all other bank analysts deploy. Our all-encompassing approach gives us the ability to offer unparalleled comparatives to your marketplace and your peers.

But the stress test is just the start. We then use your loan data and other proprietary data to run the same test on your bank in much finer detail. From that we help you to construct a strategic capital plan for your bank, to include merger and acquisition opportunities (and ability), a calculation of FreeCapitalTM, and a selection of pro forma balance sheets projected forward two or more years under various growth and economic scenarios.

You will use the results of our stress test and capital planning meetings with you to establish a plan for your bank, interact with regulators and explain your strategy to investors.

Contact Invictus for further information.