Financial statements are the official financial report card of any business. The three core statements are: the balance sheet (what you own vs. what you owe), the income statement (revenues and expenses), and the cash flow statement (actual cash moving in and out).
For banks, financial statements are especially critical. A bank's balance sheet shows deposits (liabilities), loans (assets), and capital reserves. The income statement reveals net interest income (the spread between what the bank earns on loans and pays on deposits). Regulators scrutinize these numbers constantly.
Publicly listed banks must publish quarterly and annual financial statements audited by independent firms. These statements follow standards like IFRS (International Financial Reporting Standards) or US GAAP. Investors, analysts, and regulators all rely on them to assess a bank's health.