Banking 2

BANKING

The Swiss financial centre with its banks as a leading sector is internationally of great importance. The Swiss financial institutions are some of the global market leaders in many areas. The banking industry contributes an essential part to the value creation and therefore to the wealth in Switzerland.

YOUR CONTACT PERSON

Dr. Thomas Vettiger
Managing Partner
thomas.vettiger@ifbc.ch

CURRENT TOPICS & CHALLENGES

Digital Payments Providers Under Pressure

Mounting consumer pressure for faster, seamless, cheaper and more secure digital payments accelerate the market consolidation. The latest development is the global fund Hellmann & Friedmann, which is fronting an investor group, bidding to acquire the Nordic payment system provider NETS for $5.1bn to extend in the area of e-commerce.

Banks Continue to Embrace Cloud & AI Tech

Banks are exploring opportunities for IT to increase their range of services and value proposition. M&A opportunities may arise for smaller IT companies that develop FinTech solutions that can be „plugged in“ to larger corporates.

Largest Russian Institution Under watch

Russia’s Central Bank announced the launch of a financial rehabilitaion program for Otkritie Group, the country’s largest private financial institution. According to Russian monetary authority, Otkritie requires a significant capital increase (up to 75%) and extensive measures to improve its financial health.

Blockchain in Focus, but Uncertainty Lingers

Central banks and governments continue to voice their views on Bitcoin and other cryptocurrencies, which has resulted in prices becoming even more volatile than usual. For example, the recent ban imposed by Chinese authorities on inital coin offerings led to a dramatic drop in Bitcoin prices.

NOTABLE RECENT TRANSACTIONS

Canaccord Genuity Acquires Hargreave Hale

Canadian wealth manager Canaccord Genuity has acquired UK based wealth manager Hargreave Hake for circa £80m. The Hargreave Hale business will be merged with Canaccord’s existing UK wealth management business.

Canada’s CIBS Acquires $5bn PrivateBancorp

Canadian Imperial Bank of Commerce has completed the $5bn acquisition of Chicago-based PrivateBancorp. According to CIBC CEO Victor Dodig, the deal has been almost three years in the making.

Macquarie Acquires Green Investment Bank

Macquire Group acquired the UK Government’s Green Investment Bank for £2.3bn. The Green investment Bank provides banking and lending services to eco-friendly projects.

M&A TRENDS AND MARKET ANALYSIS

The following analysis are limited to the Swiss Banking and are disclosed separately for the Swiss private and retail banks. Based on valuation multiples, valuation trends over the last five years were analyzed.

M/B-ratio in Swiss Banking

Listed Swiss Retail Banks
Listed Swiss Private Banks

  • The M/B-ratio of listed Swiss retails banks equals 0.9 at the end of 2016 and is below 1.0 since 2013.
  • On the other side, the M/B-ratio of listed Swiss private banks is above 1.0 since the end of 2015 and thus above the level of Swiss retail banks.

P/E-ratio in Swiss Banking

Listed Swiss Retail Banks
Listed Swiss Private Banks

  • The P/E-ratio of listed Swiss retail banks had no significant fluctuations over the time and is close to 15 at the end of 2016.
  • The P/E-ratio of Swiss private banks increased sharply to more than 25 and decreased substantially at the end of 2016 to a comparable level with the Swiss retail banks.