Portfolio Lead Advisory Services

Your challenges

Banks face the enormous task of cleaning up their balance sheets and are under increased pressure from regulators and the market to demonstrate how they comply with stricter regulatory requirements. The challenge is to find ways to improve capital levels to meet this demand. This is driving banks to redefine their core business, pursue deleveraging strategies and seek to reinforce their capital structures in the most cost efficient way.

The European Central Bank has sent clear signals that banks need to prioritise reduction of non-performing loans and start focusing on future lending. Non-performing loans are a significant drag on a bank’s overall performance, both financially and operationally and selling these types of assets becomes a good option to not only improve capital positions, but allow banks to resume normalised lending levels which has a direct, positive effect on the wider economy.

How Deloitte can help

We advise holders, sellers and buyers of non-core assets and under performing loan portfolios in deleveraging, portfolio management and investment strategies. Working closely with financial institutions in their capital planning is also core to our business proposition.

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
  • 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
  • Confirmatory due diligence
     

Strategic advisory

• Assist clients in all phases of the deleveraging process from strategy development and exploring options through to implementation and value maximisation
• Deleveraging plan design – what can be packaged and sold; what requires individual asset resolution; what infrastructure is required to deliver the deleveraging plan
• Provide advice on best practice methodologies, policies, procedures and systems to support the process on an existing operation, a platform acquisition and the start-up for a bad bank or asset realisation vehicle
  
  

Balance sheet advisory

• Assist clients with a comprehensive suite of balance sheet and capital solutions:
  • Capital advisory, target positioning and solutions: RWA optimisation, asset de-risking, issuance planning
  • Resolution planning and capital allocation
  • Credit risk management advisory and capital accretive asset-based solutions
  • Liquidity risk management advisory
  • Regulatory, rating agencies and investor support backed by comprehensive benchmarking

Related publications

Securitisation of NPLs, RPLs and supporting governmental schemes, Oct 2020 
Covid-19 implications for the banking and capital markets sector, May 2020
IFRS 9 banking regulation is now in Asia, April 2020
2019 Deleveraging Europe, October 2019
2019 Deleveraging Europe: focus on France, October 2019 
2018-2019 Deleveraging Asia, October 2019
2019 CEE NPL study, 2019
2018 Q3 Deleveraging Europe, November 2018
2018 Deleveraging Europe: Focus on France, December 2018
2017-2018 Global deleveraging report, April 2018
2017-2018 Deleveraging Asia, April 2018
2017-2018 CEE NPL study, January 2018
2017 H1 Deleveraging Europe, July 2017
2016-2017 Deleveraging Europe, February 2017
2016-2017 CEE NPL study, January 2017
2016 H1 Deleveraging Europe, August 2016
2015-2016 Deleveraging Europe, February 2016
2015 CEE NPL study, November 2015
2015 H1 Deleveraging Europe, August 2015
2014-2015 Italian NPL outlook, 2014
2014 CEE NPL study, 2014
2013 CEE NPL study, 2013
2012 CEE NPL study, 2012