BANKING RESEARCH – STANDARD-ADJUSTED FINANCIALS
On July 19, 2010, Moody’s Investors Service published its standard analytical adjustments to the financial statements prepared under U.S. GAAP and IFRS of banks, securities firms and finance companies. These adjustments have been designed to enhance the consistency and transparency of its global rating practice. They will:
• Ensure that there is a consistent practice in making adjustments among Moody’s analysts and across countries and regions
• Increase transparency to the market regarding the nature and amount of analytical adjustments Moody’s makes to financial statements
• Enhance the analytical value of financial data from the perspective of assessing credit risk
From August 2010, all Banking Research published by Moody’s Investors Service will incorporate standard adjusted financial data and credit ratios.
This page outlines for each publication any changes that will result from the incorporation of standard adjustments.
 Credit Opinion
Analysis
Banking Statistics
Non-US Banking Statistical Supplement
European Banking Statistical Supplement
US Banking Statistical Supplement
US Peer Comparison Book
More information on Moody’s standard analytical adjustments can be found at:
Moody's Approach to Global Standard Adjustments in the Analysis of the Financial Statements of Banks, Securities Firms and Finance Companies
Frequently Asked Questions: Moody's Approach to Global Standard Adjustments in the Analysis of the Financial Statements of Banks, Securities Firms and Finance Companies
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| Credit Opinion |
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What’s Changed |
• Assets and Tangible common equity are displayed in local currency and U.S. Dollars and Euro (in some cases)
• Standardization of currency and scale within banking systems |
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Two Currency Representation |
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| Three Currency Representation |
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| Analysis |
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What’s Changed |
• Updated formatting of issuer name and information
• New label under the issuer title indicating whether “as reported” or “as adjusted” data is used in the analysis
• Introduction of an updated, standardized chart of accounts across all issuers and banking systems
• Standardization of currency and scale within banking systems
• Column headings indicating which Basel Accord is being used in each reporting period
• Column headings indicating the accounting regime used in each reporting period |
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| To view the original layout of data in this document type, refer to page 19 of this document on Moodys.com. |
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| Banking Statistics |
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What’s Changed |
• Complete view of an issuer’s rating and watch status in one location
• Centrally located descriptive information on each issuer
• Clearly displayed analyst information
• New label under the issuer title indicating whether “as reported” or “as adjusted” data is used in the analysis
• Introduction of an updated, standardized chart of accounts across all issuers and banking systems
• Standardization of local currency and scale within banking systems
• Column headings indicating which Basel Accord is being used in each reporting period
• Column headings indicating the accounting regime used in each reporting period
• Indicator showing if local currency was used to assign a rating to an issuer |
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| To view the original layout of data in this document type, refer to this document on Moodys.com. |
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| Non-US Banking Statistical Supplement |
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What’s Changed |
Organization Page
• Updated formatting of issuer name and information
• Complete view of an issuer’s rating and watch status in one location
• Centrally located descriptive information on each issuer
• Clearly displayed analyst information
• Introduction of an updated, standardized chart of accounts across all issuers and banking systems
• Standardization of local currency and scale within banking systems
• Addition of U.S. dollar display of data to provide a comparable display of data across banking systems
• Column headings indicating which Basel Accord is being used in each reporting period
• Column headings indicating the accounting regime used in each reporting period |
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| To view the original layout of data in this document type, refer to this document on Moodys.com. |
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| European Banking Statistical Supplement |
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What’s Changed |
• The European BSS report has changed format from PDF to Excel.
• There is additional functionality in the Excel file, including a “sort” button which enables users to sort the data grid in ascending and/or
descending order by selecting up to 3 columns from the drop-down list. The drop-down list will display header columns for selection. The tabs
that include this functionality are:
o European Rating Universe
o Comparison Screens
o Average Ratings Per Country |
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| European Rating Universe Tab |
| The European Rating Universe Tab allows for sorting and filtering with the ease of an Excel format. The ratings and applicable industry codes are available for all issuers. |
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| Comparison Screens Tab |
| The Comparison Screen tab allow for sorting of issuers on up to three columns. The key indicators for each issuer are shown in Euros and U.S. Dollars, for ease of comparison across non-European issuers that are not covered in this report. This tab also includes key ratios for each system, which are the same in both Euro and U.S. Dollar representation. |
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| Country Page |
The country tab for in the European BSS contains the following changes on top of ease of use in Excel:
• Clear labeling of the country covered in the tab
• Clear labeling of columns of data for each issuer
• Standardization of local currency and scale within banking systems, and representation in Euros and U.S. Dollars
• Introduction of an updated, standardized chart of accounts across all issuers and banking systems
• Column headings indicating which Basel Accord is being used for each issuer
• Column headings indicating the accounting regime used for each issuer |
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| To view the original layout of data in this document type, refer to this document on Moodys.com. |
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| U.S. Banking Statistical Supplement |
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What’s Changed |
• The U.S. Banking Statistical Supplement will no longer be published in PDF format.
• There report will be published in an upgraded Excel format for ease of use. |
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U.S. Bank Aggregate Page |
| • A new feature on this page is the count of banks included in the consolidated view for each reporting period. |
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U.S. Bank Median Page |
| • A new feature on this page is the count of banks considered when publishing the median for U.S. Banks in each reporting period. |
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U.S. Bank Holding Company (BHC) Aggregate Page |
| • A new feature on this page is the count of bank holding companies included in the consolidated view for each reporting period. |
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U.S. BHC Median Page |
| • A new feature on this page is the count of banks considered when publishing the median for bank holding companies in each reporting period. |
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Organization Page |
The organization page for in the U.S. BSS contains the following changes on top of ease of use in Excel:
• Updated formatting of issuer name and information
• Complete view of an issuer’s rating and watch status in one location
• A link to the organization page for the lead bank, lead thrift, or parent company of the organization
• Centrally located descriptive information on each issuer
• Clearly displayed analyst information
• New label under the issuer title indicating whether “as reported” or “as adjusted” data is used in the analysis
• Introduction of an updated, standardized chart of accounts across all issuers and banking systems
• Standardization of local currency and scale
• Column headings indicating which Basel Accord is being used in each reporting period
• Column headings indicating the accounting regime used in each reporting period |
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To view the original layout of data in this document type in both PDF and Excel, refer to these links on Moodys.com:
• U.S. Banking Statistical Supplement - PDF version
• U.S. Banking Statistical Supplement - Excel version |
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| U.S. Peer Comparison Report |
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What’s Changed |
• The title of the “Peer Comparison Book” has been changed to “Peer Comparison Report”
• The document has also changed format from PDF to Excel.
• There is additional functionality in the Excel file, including a “sort” button which enables users to sort the data grid in ascending and/or
descending order by selecting up to 3 columns from the drop-down list. The drop-down list will display header columns for selection. The tabs
that include this functionality are:
o Rated Bank Holding Companies
o Analysis Tabs |
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Rated BHC Page |
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Rating Distribution Graph Page |
| • Provides a graphical representation of “LT Bank Deposit Rating” for Rated BHCs’ Lead Banks’ |
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Analysis Pages |
• Bank holding companies that have corresponding lead banks with an active BFSR rating
• Ratings for their corresponding “Lead Bank” and financial data for each of the key ratios
• Column headings indicating which Basel Accord is being used in each reporting period
• The key ratios listed below will be presented as a different tab in the workbook. Financial data for the key ratios will be displayed for the
latest available report period (YTD) and prior YE along with corresponding “Variance to Mean”:
o Loan Loss Provisions / Gross Loans
o Loan Loss Provisions / Pre-Provision Profit
o Allowance for Loan Losses / Gross Loans
o Problem Loans & Leases / Gross Loans
o Problem Loans & Leases / Shareholders Equity + Loan Loss Reserves
o Net Charge Offs / Average Gross Loans
o Return on Average Assets (after Tax before Unusual Items)
o Return on Shareholders’ Equity (after Tax before Unusual Items)
o Net Income / Average RWA – Basel I / Basel II
o Pre-Provision Income / Average RWA – Basel I / Basel II
o Tier 1 Capital / RWA – Basel I / Basel II
o Total Capital / RWA – Basel I / Basel II
o TCE / RWA – Basel I / Basel II
o Shareholders’ Equity / Total Assets
o Cost / Income Ratio
o (Market Funds – Liquid Assets) / Total Assets
o Total Liquid Assets / Total Assets
o Core deposits / Average Gross Loans
o Net short term position
o Double Leverage |
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PG-BFSR (Peer Groups – Bank Financial Strength Rating) Pages |
• Complete view of an issuer’s rating and outlook one location
• Introduction of an updated, standardized chart of accounts across all issuers and banking systems
• Standardization of local currency and scale
• Column headings indicating which Basel Accord is being used in each bank holding company
• Column headings indicating the accounting regime used for each bank holding company |
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Universal Ratios |
| • Contains statistical measures – Mean / Median / Min / Max for all rated BHCs |
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| To view the original layout of data in this document type under the original title of “Peer Comparison Book”, refer to this document on Moodys.com. |
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