This course aims at developing the main tools needed to read and analyze the financial and non-financial performance of banks and insurers, mainly within the European Union. The main contents cover the three utmost external performance frameworks in the particular case of financial intermediaries: accounting and the measuring of profitability and the financial structure of entities, capital absorption and risk measures under supervisory rules, sustainability and non-financial disclosures. * Knowledge and understanding: - knowing the structure and contents of banks’ and insurers’ financial reporting - knowing the capital requirements and the supervisory scrutiny for banks and insurers - knowing how sustainability is measured and disclosed by banks and insurers *Applying knowledge and understanding: - analyze and assess the accounting performance of banks and insurers - analyze and assess the relationship between capital and risks of banks and insurers for supervisory purposes - analyze and assess the non-financial performance of banks and insurers *Making judgments: - expressing grounded opinions on the performance of banks and insurers - judging with depth the functioning of banks and insurance companies * Communication skills: - knowing and applying the technical language typical of the banking and insurance industries - communicating effectively and thoroughly the knowledge on banks and insurers *Learning skills: - autonomously research and interpret data on banks and insurers - autonomously compare the financial and non-financial performance of banks and insurers

Preconditions (knowledge needed to successfully attend this course, assumed already acquired by students): Financial markets and institutions, Accounting, International Financial Reporting Standards, Banks and markets.
Propedeuticities: none.

9 ECTS – 60 hours Parte 1 – Banks' financial performance - Banking, regulation, supervision and governance - IFRS 9 in banks - Banks' financial reporting: KPIs, economic performance and evaluation models - Banks' risks, the Basel Accords and banking capital Parte 2 – Insurers' financial performance - IFRS 9 and insurance - IFRS 17 and interactions with other IAS/IFRS - Insurance risks, Solvency 2 and the capital of insurers Parte 3 – Non financial performance of banks and insurer - From CSR to ESG metrics - EU regulation - Non financial disclosures

Reports from Bank of Italy, ECB, EBA, BIS, FSB, CONSOB, Borsa Italiana, EIOPA, Third Pillar disclosures and NFD of primary European banks and insurers (references provided in class) Textbooks: Ruozi R. (a cura di), 2020. Economia della banca, 4^ ed. - EGEA: Milano Rutigliano M. (a cura di), 2016, Il bilancio della banca, EGEA: Milano Corvino, Paci S., 2023, Management delle assicurazioni: business model, prodotti, regolamentazione e performance, EGEA: Milano Santoboni F. (a cura di), 2022, Manuale di gestione assicurativa, Wolters Kluwer: Milano

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Most lectures follow the traditional front-lesson approach, however encouraging the active participation of students and the joint discussion of market data, accounting, solvency and sustainability reports of leading financial institutions, and business cases. Moreover, the course offers one or more seminars delivered by external lecturers or market participants, subject to their availability

Students are advised to frequently check and use the teaching materials on Moodle. There are no differences in terms of teaching materials for students that choose not to attend classes. However, the exam differs: attending students can present a group project at the end of the course, making up 50% of their final grade, to be completed through an oral exam. Non attending students are encouraged to get in touch with the lecturer if they need further explanations or additional readings on this course's topics. To be considered attending, students must attend at least 80% of classes.

Grading differs between attending and non attending students: for the former it is based on a groupwork (60%) to be completed by an oral exam (40%), for the latter it is solely based on an oral exam.

The oral exam consists in 2 questions (approximately 15 minutes) for attending students, and 4 questions (approx. 40 minutes) for non attending ones.
Typically, the first question, focused on theoretical aspects, is chosen by each candidate, whereas the second asks for a deeper discussion stimulated by the previous choice. The two additional questions for non attending students require to comment financial statements, regulatory disclosures or non-financial information of a banking or insurance group, knowledge and skills that attending students demonstrated in their groupwork. Specifically, what is assessed is the ability to apply the ILOs of the course.

The project work is based on a deep analysis of the financial statement, regulatory disclosures and non-financial information of a banking or insurance group, selected within a list shared during classes. Besides composing a report aimed at investors, each component of the group will be required to present results to other students, in the last part of the course. The ideal group is made of 3 participants, but 2 or 4 will be accepted with a penalty (more members) or a bonus (fewer members) on the final grade, based on criteria shared during classes.

The ability to link different topics, to apply the acquired knowledge to financial and economic news and proficiency in technical language is required to aim at higher grades.
Grading, therefore, results as follows:
- lower grades (18-22): knowledge of the subject is sufficient, the understanding of the technical languages is at least adequate on fundamental topics;
- intermediate grades (23-27): deep knowledge and high proficiency in the technical language, at least sufficient capability in linking different topics of the course;
- higher grades (28-30 with honors): advanced knowledge and complete proficiency in the technical language, ability to study autonomously and argue critically on financial and economic news.

The main aims consistent with the Sustainable Development Goals targeted by part of this course's contents are: 1. No poverty: a few classes are dedicated to discuss the relationship between banks and household savings/borrowings, and what role is played by financial education in promoting a sustainable financial behaviour. 2. Climate actions: a few classes cover the issue of resiliency of credit/depository institutions to exogenous shocks as a result of a greater engagement in sustainability, as measured through ESG scores 3. Peace, justice and strong institutions: a few classes cover the topic of the regulatory framework for banks, at the Italian, European or global levels, and how supervision in increasingly demanding credit/depository institutions to enhance their transparency towards sustainability.