Partner Baptiste Guionnet Director ever before. In Europe, this trend is further exacerbated by the to the US. However, M&A in the banking sector has risen group priorities in the coming months.
F of cross-border M&A activity in Europe. However, since the start of the crisis in 008, M&A activity in the European Indeed, even if other causes can be fragmented than in the United States, In the current economic context and given that the number of M&A transactions rose these transactions have, to some extent, 100 80 60 40 0 0 16 10 1 7 11 11 7 7 1 11 7 7 8 9 10 7 7 8 6 4 4 9 19 1 1 1 18 19 8 7 10 7 9 4 9 6 19 1 Trend post-crisis 4 4 6 6 4 4 1 19 14 14 8 10 1 000 001 00 00 004 00 006 007 008 009 010 011 01 01 014 01 016 Inward non-eu Inward EU Cross border Outward non-eu Outward EU Domestic out by euro area banks outside the euro area.
fragmented than in the United States. 10 100 80 60 40 0 0 11 4 6 1 4 44 48 1 4 7 10 4 44 4 4 8 4 10 7 6 8 17 17 Trend post-crisis 000 001 00 00 004 00 006 007 008 009 010 011 01 01 014 01 016 4 1 1 14 16 16 19 4 1 8 7 4 4 4 49 7 6 RoW incoming RoW outgoing Across states Within state United States acquiring shares in banks in the United States.
in recent years compared to other mature without creating issues in the competitive EU and the US in terms of the volume explained by: compared to the US More heterogeneous markets of each country remains a key consideration preventing certain cross-border transactions of Brexit or announcements addressing been overridden by attractive M&A opportunities. Over the last few quarters, we noted also in Europe. Globally: transactions were announced, which correspond to a 60 percent increase registered in 007. In Europe: compared to the same period in 017. survey 1 showing that: 01. 0. There is now a shift from defensive to an expansionary mindset at the top In 7 out of the 19 countries surveyed, expansion by acquisition or expansion to expansionary strategies outnumber defensive ones in 11 of the 19 countries surveyed.
Between 0% and 40% China, Norway Between 40% and 0% Sweden, Denmark, Czech Republic, Russian Federation Between 60% and 70% Canada, USA, Netherlands, Belgium, France, Finland, Poland, Hungary Between 70% and 80% United Kingdom, Portugal, Switzerland, Austria, Italy Between 0% and 60% Mexico, Brasil, Ireland, Spain, Romania, Greece Between 80% and 90% Germany
Cost/income ratio 80 70 60 0 40 DE LU AT UK IT IE FR PL HU SE RO BG 0 0 40 60 80 100 SI ES CZ LV BE CY DK PT SK HR FI MT NL LT EE R = 0.6 GR More fragmented Market concentration index More concentrated order to achieve further growth.
to design a robust strategy to sustain growth and 01 0 organic growth prospects
0 7.000 00 10 6.000.000 4.000 100 0.000.000 1.000 0 1994 1996 1998 000 00 004 006 008 010 01 014 016 0 Nb of banks (left axis) Average B/S per bank in m (right axis), the country is indeed hosting branches or subsidiaries of many of European banks forming part of our management and private banking activities of brick and mortar branches as main the bank secrecy, the enforcement of the costs and investments required to keep pushed some banking groups to consider M&A activity spiked in Luxembourg, with this trend expected to continue in the coming months. Other transactions are about to occur in 018, supporting an for M&A activity in Luxembourg, Banking sector but management and servicing industry.
01 Havilland's acquisition of Banque Pasche & Banco Populare Luxembourg Julius Baer's acquisition of Commerzbank's private banking business desiring to strengthen their footprint in certain markets. 016 017 EFG's acquisition of UBI and BSI Luxembourg Legend Holding's acquisition of BIL (Banque Internationale à Luxembourg) form Precision Capital 017 and Q1 018. Others are about to occur management and servicing industry. Safra Sarasin's acquisition of Hapoalim Banque Hauck & Aufhaeuser Privatbankiers' acquisition of Sal. Oppenheim jr & Cie Luxembourg and Oppenhein Asset Management Services 018 UBS' acquisition of Nordea's wealth management business BGL BNP Paribas' acquisition of ABN Amro bank's wealth management and insurance businesses Warburg's acquisition of Nord LB
According to a recent survey 4 engage in a joint venture with a FinTech in the next two years. 19 % Expanding Customer base in existing markets 0 % Technology acquisition 16 % Expand/diversify products or services 9 % Talent acquisition 1 % Digital Strategy 11 % Enter into new geographic markets
On recent M&A transactions, where we showstoppers on certain transactions. expect to engage in a joint venture with a FinTech in the next two years One-third say they expect to acquire. Inadequate IT setups been considered as important showstoppers on certain transactions. Source: MergerMarket
Despite the importance of the portion of M&A activity remains driven by size with the objective to reach an adequate cost-income ratio. According to a recent survey, recent Expand the customer base in core Enter into new geographic markets often to re-focus on fewer core The banks in Luxembourg might be countdown has started; if they are not growing enough, private banks forward. The banks in Luxembourg might but the countdown has started; if they are not growing enough, going forward.
peak in M&A activity and strong market momentum, timing seems about answer those these strategic questions. Investing or divesting? Low interest rates in Europe together with continue to put pressure on banks revenue ratio of banks remains under pressure, footprint in certain juridictions. bring an answer to the strategic questions BUY strategy: Has the entity reached Is the return on equity adequate given SELL strategy: Is the entity performing a core activity for the group? Is it active in the business? Is the business undersized the future? divesting might be perceived as a sign of weakness. This perception together with a certain resistance to change prevents strong market momentum, timing seems these strategic questions.