Invictus LogoBank stress testing, analytics and strategic planning

The global banking industry is under unprecedented strain, and since the 2008 financial crisis is in uncharted territory. Banks everywhere require hefty capital injections. Capital used to be cheap and readily available — now it is expensive or not available at all. Earnings by banks are likely to remain under pressure over the new few years. Many banks need to consolidate to survive. Traditional tools for analysing bank performance and future capital simply do not work. Invictus offers something different.

The Invictus Consulting Group delivers the most accurate, insightful and accessible bank analytics and consultancy services to the financial services sector. We use our patent-pending Invictus Capital Assessment Model™ (ICAM™) to analyse bank balance sheets, to stress test bank capital. Our LoanLayering™ system gives an accurate estimate of roll-off, revenue contribution by loan category, and potential future earnings. The results feed into our public data bank stress tests, pro forma balance sheet and income statement projected forward, customised bank stress tests, D&O insurance reports, investor analysis, and other products.

For 7000+ FDIC-insured banks we produce analytics that facilitate individual and relative analysis of bank capital adequacy and pro forma performance:

  • the Invictus Rating – a simple sustainability measurement;
  • the Invictus Ratio – a measure of earnings over capital required;
  • the Invictus Acquisition Gauge – an assessment of each bank’s post-stress capital and earnings status in terms of whether the bank should or must buy or sell;
  • Invictus Bank Analytics – analysis on the overall US banking sector based on our model results for 7000+ banks

Using the ICAM and LoanLayering, Invictus assists banks, regulators, investors and insurance underwriters to:

  • stress test bank balance sheets, to predict likely future capital ratios under stressed scenarios;
  • understand how the vintage of loans will impact future earnings as loans mature and are replaced with lower return loans in the low interest rate environment;
  • calculate enterprise value;
  • manage capital use by asset class, a strategic necessity for any diversified bank;
  • select acquisition targets and perform post-acquisition capital analysis (by stressing the blended portfolio).

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