ANALYSIS OF THE BALANCE SHEETS OF COMMERCIAL BANKS AD-477 BANK MANAGEMENT Instructor……Bülent Şenver BS Trainig Services bsenver@superonline.com

BALANCE SHEET ANALYSIS OF COMMERCIAL BANKS BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com ANNUAL REPORT OF BANKS BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com ANNUAL REPORT 1. AUDITOR’S REPORT (AR) 2. FINANCIAL STATEMENTS (F/S) 3. NOTES TO F/S BS Trainig Services bsenver@superonline.com

“INDEPENDENT AUDITOR’S REPORT” BS Trainig Services bsenver@superonline.com

INDEPENDENT AUDITORS’ REPORT 1.What is done ? 2.What is audited ? 3.What is the auditor’s & management’s responsibility ? 4.Audit is done based on what standard ? 5.Auditors’ opinion based on IAS BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com WHAT IS AUDITED ? We have audited : 1. The Balance Sheet as of Dec31’ 1998 and 2. Statement of Income 3. Statement of Shareholders’ 4. Statement of Cash Flows for the year then ended BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com HOW IS THE F/S AUDITED ? We conducted our audit in accordance with International Standards on Auditing (ISA) We plan & perform the audit to obtain reasonable assurance that F/S are free of material misstatement. BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com HOW IS THE F/S AUDITED ? An audit includes assessing the accounting principles used & significant estimates made by management, as well as evaluating the overall F/S presentation. We believe our audit provides a reasonable basis for our opinion. BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com AUDITORS’ OPINION In our opinion, the F/S referred to above present fairly, in all material respects, the financial position of A Bank & the results of its operations, changes in its cash flows for the year then ended, in accordance with International Accounting Standards. Arthur Andersen & Co BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com FINANCIAL STATEMENTS OF COMMERCIAL BANKS BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com FINANCIAL STATEMENTS 1. BALANCE SHEET 2. STATEMENT OF INCOME 3. STATEMENT OF SHAREHOLDER’S EQUITY 4. SOURCES & USES OF FUNDS STATEMENT BS Trainig Services bsenver@superonline.com

B/S ANALYSIS DEPENDS ON Available Data Standard Reporting Practice Use of Internationally Accepted Accounting Standards Use of Internationally Accepted Auditing Standards Use of External & Internal Audit Practice BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BALANCE SHEET SHOWS The Financial Position of a Bank As at a specific date. As of Dec. 31,1998 BS Trainig Services bsenver@superonline.com

BALANCE SHEET EQUATION 100 = ASSETS = Equals = 100 LIABILITIES + Plus SHAREHOLDER’S EQUITY BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BALANCE SHEET Assets Liquid Assets 150 Loans 400 Marketable Securities 200 Investment Securities 50 Fixed Assets 100 Accrued Interest 70 Other Assets 80 Total Assets 1050 BS Trainig Services bsenver@superonline.com

BALANCE SHEET Liabilities Deposits 400 Bank Borrowings 150 Accrued Expenses 100 Other Liabilities 80 Bonds Issued 70 Shareholder’s Equity 250 Total Liabilities & S/HE 1050 BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com SHAREHOLDER’S EQUITY Share Capital 100 Legal Reserves 30 Retained Earnings 50 Revaluation Surplus 20 Share Premiums 10 Net Income 40 Total S/H Equity 250 BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com ASSET VALUATION GAAP & IAAP Generally Accepted & Internationally Accepted Accounting Principles LOWER OF COST OR MARKET BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com ASSET CLASSIFICATION BS Trainig Services bsenver@superonline.com

LIABILITY CLASSIFICATION BS Trainig Services bsenver@superonline.com

BALANCE SHEET DOES NOT SHOW Interest Rates Interest Sensitivity Due Dates Foreign Currency breakdown Collateral BS Trainig Services bsenver@superonline.com

STATEMENT OF INCOME SHOWS The results of operations of a bank. For the period between two dates. For the year ended Dec. 31 , 1998 BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com NET PROFIT BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com TOTAL INCOME BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com NET INTEREST INCOME BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com NET INTEREST INCOME BS Trainig Services bsenver@superonline.com

NET NON-INTEREST INCOME BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com STATEMENT OF INCOME Interest Income 1000 Interest Expense (700) Net I.Income 300 Non Interest Income 220 Operating Expenses (450) Pre-Tax Profit 70 Tax Provision (30) Net Income 40 BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com ANALYSIS OF PROFIT BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BANKING RISKS BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BANKING RISKS C AMEL A M E L BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com CAMEL Capital Adequacy BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com CAMEL Asset Quality BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com CAMEL Management Quality BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com CAMEL Earnings Efficiency BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com CAMEL Liquidity Risk BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com CAMEL RISKS Capital Adequacy Asset Quality Management Earnings Liquidity BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BANKING RISKS 1.2.3.4.5.CAMEL 6. Credit Risk 7. Interest Rate Risk 8. Interest Rate Sensitivity Risk 9. Foreign Exchange Availability Risk 10. F/X Position Risk BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BANKING RISKS 11. Accounting & Reporting Risk 12. Computer Risk 13. Capital Market Operations Risk 14. Money Market Operations Risk 15. Country (Sovereign) Risk 16. Pricing Risk BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BANKING RISKS 17. Theft Risk 18. Fraud & Defalcations Risk 19. Natural Disasters 20. Strategic Risk 21. Reputation Risk 22. Market Risk 23. Fiduciary Risk 24. Transaction Risk 25. Regulatory / Compliance Risk 26. Large Loans / Deposits Risk 27. Concentration Risk BS Trainig Services bsenver@superonline.com

Numerator ______________________ Denominator RATIO ANALYSIS Numerator ______________________ Denominator BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com RATIO ANALYSIS Balance Sheet __________________ Balance Sheet Income Statement ________________ Balance Sheet BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com RATIO ANALYSIS What is the LEVEL ? What is the TREND ? BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com RATIO ANALYSIS 1. Capital Adequacy 2. Asset Quality 3. Management 4. Earnings & Efficiency 5. Liquidity BS Trainig Services bsenver@superonline.com

RATIO ANALISIS CAPITAL ADEQUACY “The Capital of a Bank protects the Bank against unexpected future losses.” BS Trainig Services bsenver@superonline.com

RATIO ANALYSIS CAPITAL ADEQUACY 1. Shareholders’ Equity ------------------------------------ Total Assets The ability of the present Capital to support the further growth of Assets BS Trainig Services bsenver@superonline.com

RATIO ANALYSIS CAPITAL ADEQUACY 2. Shareholders’ Equity ------------------------------------ Risk Weighted Assets BS Trainig Services bsenver@superonline.com

RATIO ANALYSIS CAPITAL ADEQUACY 3. Shareholders’ Equity ------------------------------------ Risk Weighted Assets + RW Contingent Liabilities BS Trainig Services bsenver@superonline.com

RATIO ANALYSIS CAPITAL ADEQUACY 4. Total Debt ------------------------------------ Shareholder’s Equity The ability to raise additional Debt Capital BS Trainig Services bsenver@superonline.com

RATIO ANALYSIS CAPITAL ADEQUACY 5. Financial Leverage : Total Assets ------------------------------------ Shareholder’s Equity BS Trainig Services bsenver@superonline.com

RATIO ANALYSIS CAPITAL ADEQUACY 6. Capital Formation Rate : Retained Net Income (RNI) -------------------------------------------------- Average Shareholder’s Equity RNI = Net Income - Dividends to be paid The internal growth of Equity Capital BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 1. Loans -------------------------------- Total Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 2. Non Performing Loans = a) Loans past due more than 90 days b) Loans not accruing interest c) Loans with low interest rates d) Loans on which repayment terms have been renegotiated. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 3. Non Performing Loans ------------------------------------- Total Loans Indicates how much of the loan portfolio is non performing. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 4. Reserves for Non Performing Loans ---------------------------------------------- Non Performing Loans Indicates the ability of the loan loss reserve to absorb potential losses from currently non performing loans. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 5. Loan Loss Provision ------------------------------------- Average Loans Shows current income reduction in anticipation of loan losses. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 6. Net Charge - Offs ------------------------------------- Average Loans Shows current income reduction in anticipation of loan losses. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 7. Interest Earning Assets ------------------------------------------------- Total Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS ASSET QUALITY 8. Non Interest Earning Assets ------------------------------------------------- Total Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY “A Bank with no profit is like a human body with no blood.” BS Trainig Services bsenver@superonline.com

THE PRIMACY OF EARNINGS A bank can not sustain itself long without a positive cash flow. Earnings are essential to : 1.Absorb loan losses 2.Finance internal growth of capital 3.Attract investors to supply capital BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 1. Return on Assets ( ROA ) Net Income -------------------------------------------- Total Average Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 2. Return on Equity ( ROE ) Net Income -------------------------------------------- Average Shareholder’s Equity BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 3. Return on Equity ( ROE ) ROE = ROA * Equity Multiplier ROE = ( NI / AST ) * ( AST / SHEQ ) BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 4. Interest Income -------------------------------------------- Average Interest Earning Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 5. Net Interest Income -------------------------------------------- Average Total Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 6. Interest Income on Loans -------------------------------------------- Average Total Loans BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 7. Total Operating Expense ------------------------------------------------- Total Operating Income BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 8. Efficiency Ratio Non Interest Expense ---------------------------------------------------- Net Interest Income + Fees Commissions BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 9. Break Even Ratio Total Expenses - Non Interest Income ---------------------------------------------------- Total Average Interest Earning Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 10. Net Free Funds Ratio Non Paying Liabilities - Non Earning Assets -------------------------------------------------- Interest Earning Assets BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 11. Interest Rate Sensitivity Gap : Interest Rate Sensitive Assets ( minus ) Interest Rate Sensitive Liabilities Shows the net amount to be effected by the future change of interest rates in the market BS Trainig Services bsenver@superonline.com

RATIO ANALISIS EARNINGS & EFFICIENCY 12. Interest Rate Sensitivity Gap Ratio : Interest Rate Sensitive Assets ------------------------------------------------- Interest Rate Sensitive Liabilities BS Trainig Services bsenver@superonline.com

RATIO ANALYSIS LIQUIDITY “Inadequate Liquidity of a Bank may cause an accident similar to an airplane crash !” BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 1. Loans ------------------------- Deposits BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 2. Liquid Assets ------------------------- Deposits BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 3. Liquid Assets -------------------------------- Deposits + Borrowings BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 4. Assets Due for the Period ----------------------------------------- Liabilities Due for the Period BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 5. Net Large Liabilities ----------------------------------------- Net Earning Assets Both numerator & denominator are net of short-term assets. Measures the extent to which net earning assets would be effected by the loss of a bank’s large liabilities. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 6. Liquid Assets ----------------------------------------- Large Liabilities Measures the assets readily available to cover a loss of large liabilities. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 7. Core Deposits ----------------------------------------- Earning Assets Indicates the extend to which earning assets are funded by those deposits considered stable and not subject to interest rate disintermediation. BS Trainig Services bsenver@superonline.com

RATIO ANALISIS LIQUIDITY 8. Brokered Deposits ----------------------------------------- Earning Assets Measures the extent to which a bank is funding assets with high-priced and volatile brokered deposits. BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com MATURITY ANALISIS BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com MATURITY ANALYSIS BS Trainig Services bsenver@superonline.com

OFF - BALANCE SHEET RISK 1. Loan Commitments ----------------------------------------- Average Assets Shows the extent of a bank’s obligation to make loans. BS Trainig Services bsenver@superonline.com

OFF - BALANCE SHEET RISK 2.Contingent Liabilities & Commitments ---------------------------------------------------- Average Assets Shows the extent of a bank’s commitments & contingent liabilities. BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BANK ANALYSIS CHECKLIST BS Trainig Services bsenver@superonline.com

BANK ANALYSIS CHECKLIST EARNINGS 1. Is earnings at an adequate level ? 2.Does valid reporting exist for earnings? BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BA CHECKLIST EARNINGS IF POOR, ASCRIBABLE TO : 1. Low asset yield 2. High cost of funds 3. Inadequate non interest income 4. High loan charge off s 5. High loan loss provisions 6. Mismanaging taxes 7. High overhead costs BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com BA CHECKLIST EARNINGS IF STRONG, ASCRIBABLE TO : 1. Strong asset yield 2. Low cost of funds 3. Adequate non - interest income 4. High loan charge off s 5. High loan loss provisions 6. Adequate taxes 7. Low overhead costs BS Trainig Services bsenver@superonline.com

BANK ANALYSIS CHECKLIST CAPITAL ADEQUACY 1. Is level of capital high enough ? 2. Is capital growing proportionate to assets ? 3. Can additional debt be raised if needed 4. Is there pressure to pay high dividends BS Trainig Services bsenver@superonline.com

BANK ANALYSIS CHECKLIST LIQUIDITY 1. Is bank dependent on bought money ? 2. Is this dependence traditional or recent 3. Is core deposit growth proportionate to asset growth ? 4. Is volatile funds significant to assets BS Trainig Services bsenver@superonline.com

BANK ANALYSIS CHECKLIST ASSET QUALITY 1. Are net charge - off s reasonable ? 2. Is management slow to charge off loans 3. Is loan growth reasonable ? 4. Is loan loss reserve level adequate ? 5. Do earnings comfortably cover loan losses ? BS Trainig Services bsenver@superonline.com

INCREASING THE INTEREST MARGIN % BS Trainig Services bsenver@superonline.com

INCREASING INTEREST MARGIN Interest Income…………..200 Interest Expense…………( 50 ) ---------- INTEREST MARGIN….. 150 ---------- BS Trainig Services bsenver@superonline.com

INCREASING THE INTEREST MARGIN BS Trainig Services bsenver@superonline.com

INCREASING THE INTEREST MARGIN BANK STRATEGY Increase Size ACTION 1.Expand Assets 2.Reduce Fixed Assets 3.Increase Equity Base BS Trainig Services bsenver@superonline.com

INCREASE THE INTEREST MARGIN BANK STRATEGY Change Interest Spread ACTION 1.Re-Price Asset Portfolio 2.Re-Price Liability Portfolio BS Trainig Services bsenver@superonline.com

INCREASE THE INTEREST MARGIN ACTION 1.Plan Taxes 2.Reduce Liquidity 3.Increase Aggressiveness 4.Change Asset Yield Sensitivity 5.Change Liability Cost Sensitivity BANK STRATEGY Alter Asset / Liability Mix BS Trainig Services bsenver@superonline.com

INCREASE THE INTEREST MARGIN IMPLEMENTATION 1.Offer new Products and Services 2.New Loans/Deposits 2.Open new Branches 3.Expand Promotion Budget 4.Reduce Interest Spread BANK STRATEGY Increase Size ACTION Expand Assets BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com EXPAND ASSETS IMPLEMENTATION 1.Offer new Products and Services 2.New Loans/Deposits 3.Open new Branches 4.Expand Promotion Budget 5.Reduce Interest Spread REPERCUSSION 1.Increase operating Expenses 2.Need for Capital 3.F/A Regulations 4.Decrease Capital Ratio 5.Reduce ROA BS Trainig Services bsenver@superonline.com

INCREASE THE INTEREST MARGIN BANK STRATEGY Increase Size ACTION Increase Equity Base IMPLEMENTATION 1.Reduce Dividend pay out 2.Offer Dividend reinvestment 3.Sell Stock 4.Establish Employee Stock Ownership PL BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com INCREASE EQUITY BASE REPERCUSSIONS 1.Hurt shareholders 2.Double taxation S/H 3.Reduce ability to leverage ROA, dilution of earnings 4.Continued Employee Expectations IMPLEMENTATION 1.Reduce Dividend pay out 2.Offer Dividend reinvestment 3.Sell Stock 4.Establish Employee Stock Ownership PL BS Trainig Services bsenver@superonline.com

INCREASE INTEREST MARGIN BANK STRATEGY Change Interest Spread ACTION Re-price Portfolio IMPLEMENTATION 1.Increase rates on Loans 2.Compound return more frequently 3.Reduce rates on Deposits 4.Compound cost less frequently BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com REPRICE PORTFOLIO REPERCUSSIONS 1.Lose business Loan quality decrease 2.Increase operations Client dissatisfaction 3.Lose business Liquidity problem 4.Increase operations Client dissatisfaction IMPLEMENTATION 1.Increase rates on Loans 2.Compound return more frequently 3.Reduce rates on Deposits 4.Compound cost less frequently BS Trainig Services bsenver@superonline.com

INCREASE INTEREST MARGIN BANK STRATEGY Alter Asset/Liability Mix ACTION Reduce Liquidity IMPLEMENTATION 1.Minimize cash 2.Minimize due from 3.Sell Securities & Bonds 4.Increase short term Deposits BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com REDUCE LIQUIDITY REPERCUSSION 1.Liquidity Risk 2.Lose correspondent 3.Incur book losses 4.Increase volatility of deposits IMPLEMENTATION 1.Minimize cash 2.Minimize due from 3.Sell Securities & Bonds 4.Increase short term Deposits BS Trainig Services bsenver@superonline.com

INCREASE INTEREST MARGIN BANK STRATEGY Alter Asset/Liability Mix ACTION Increase Aggressiveness IMPLEMENTATION 1.Increase loan/deposit ratio 2.Increase highest yielding loans 3.Increase highest yielding securities BS Trainig Services bsenver@superonline.com

INCREASE AGGRESSIVENESS REPERCUSSION 1.Increase need for capital 2.Increase loan losses 3.Increase security losses IMPLEMENTATION 1.Increase loan/deposit ratio 2.Increase highest yielding loans 3.Increase highest yielding securities BS Trainig Services bsenver@superonline.com

INCREASE INTEREST MARGIN BANK STRATEGY Alter Asset/Liability Mix ACTION Change Asset Yield Sensitivity IMPLEMENTATION 1.Increase S/T & variable rate assets if rates will increase 2.Decrease S/T & variable rate assets if rates will decrease BS Trainig Services bsenver@superonline.com

CHANGE ASSET YIELD SENSITIVITY REPERCUSSION 1.Wrong estimate of interest movement, thereby reducing interest spread IMPLEMENTATION 1.Increase S/T & variable rate assets if rates will increase 2.Decrease S/T & variable rate assets if rates will decrease BS Trainig Services bsenver@superonline.com

INCREASE INTEREST MARGIN BANK STRATEGY Alter Asset/Liability Mix ACTION Change Liability Cost Sensitivity IMPLEMENTATION 1.Decrease S/T & variable rate liabilities if rates will increase 2.Increase S/T & variable rate liabilities if rates will decrease BS Trainig Services bsenver@superonline.com

CHANGE LIABILITY COST SENSITIVITY REPERCUSSION 1.Wrong estimate of interest movement, thereby reducing interest spread IMPLEMENTATION 1.Decrease S/T & variable rate liabilities if rates will increase 2.Increase S/T & variable rate liabilities if rates will decrease BS Trainig Services bsenver@superonline.com

BS Trainig Services bsenver@superonline.com CONSOLIDATED FINANCIAL STATEMENTS BS Trainig Services bsenver@superonline.com

CONSOLIDATED BALANCE SHEET BS Trainig Services bsenver@superonline.com