Portfolio Lead Advisory Services

Challenges facing financial institutions

In the face of emerging regulatory and accounting changes affecting the financial services sector, banks face an uncertain future. The key challenges ahead include implementing AASB 9 and Basel IV; on-going regulatory changes by APRA including lending limits and capital hurdles; and the outcomes of the Royal Commission.

Now is the time for Australian financial institutions to review their lending portfolios to redefine their core business and products and understand legacy products or asset classes and the returns achieved.

Portfolio sales are an opportunity for banks to deleverage their balance sheet, improve returns on equity, and simplify their operations.

How Deloitte can help

• Strategic advisory: Assist financial institutions in all phases of the deleveraging and divestment process from divestment strategy development and exploring options through to implementation and value maximisation.
• Sell-side advisory: Full service advisory to vendors of loan portfolios from strategy and portfolio preparation to sales execution; Situational and strategic options analysis enabling management to understand: Portfolio selection, Balance sheet and capital impact, Profit and loss implications, Tax matters, Critical success factors and International investor requirements.
• Buy-side advisory: Assist loan portfolio buyers in all stages of the acquisition process, from pre-data room stage through to closing and post-deal servicing, including: Pool stratification and statistics, Credit file and due diligence, Key asset summary and preparation, Investment committee presentation and Confirmatory due diligence.