Services

Portfolio Lead Advisory Services

Strategic advice on deleveraging and loan portfolio transactions

Increasing regulatory pressure is driving banks to redefine their core businesses and search for capital.

Deloitte can assist with identifying ways to maximise value from non-core assets through deleveraging, rigorous planning and asset management. Entering the loan portfolio transactions market is a key tool in any deleveraging program, providing a rapid source of capital raising.

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 and pursue deleveraging strategies.

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.

  • 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

Key contacts

David Edmonds

David Edmonds

Partner

David heads Deloitte’s global Portfolio Lead Advisory Services practice, focused on financial institution balance sheet deleveraging strategy and execution, through portfolio sales and management. Dav... More

Andrew Orr

Andrew Orr

Partner

Andrew is a Financial Advisory Partner and the UK Head of the Portfolio Lead Advisory Services team. He has over 20 years’ financial services experience specialising in portfolio sales and acquisition... More

Will Newton

Will Newton

Partner

Will is responsible for strategic advisory within Deloitte's Financial Institutions Group. Will has 27 years’ experience as a senior banker and advisor working in the UK, Western Europe, CEE/CIS and A... More