Banking M&A Digest #37 (15.8.2019)

Posted by

foto usplash

My weekly notes on banking and financial services – 

by Aivars Jurcans

Done! And Done

Bank of Nova Scotia, a Canadian lender, and Colpatria, a Colombian investment firm, has agreed to sell Colfondos, their jointly-held pension fund administrator, to AFP Habitat, a Chilean private pension fund manager. 

Source: Reuters

JC Flowers, a PE firm, will reduce its stake in Japan’s Shinsei Bank from 21.4% to 3.8% by selling shares worth around USD 700 million. JC Flowers together with Ripplewood, another US PE firm, took over the failed Long-Term Credit Bank and relaunched it as Shinsei in 2000.

Source: Reuters

Deals on the Table

Oversea-Chinese Banking Corporation, Singapore’s 2nd largest lender, is said to be considering a bid for almost 90% of shares in PT Bank Permata, an Indonesian lender backed by Standard Chartered. 

Source: Bloomberg

German government is said to be considering the potential sale of its 15.6% stake in Commerzbank and has reached out for external advisers. 

Source: Financial Times

Central Huijin Investment, an arm of state-controlled China Investment Corporation, is said to be in talks to invest in Hengfeng Bank. Based in Shandong province and formed out of early banking reforms in the late-1980s, Hengfeng (previously known as Evergrowing Bank) has assets of USD 201 billion.

Source: Financial Times

Metrics to Watch

Aviva’s, a UK insurer, GBP 24.4 billion of regulatory capital is 194% of the regulatory minimum, compared to its target range of 160%-180%. The capital surplus is worth up to GBP 4 billion.

Source: Financial Times

HSBC North America’s efficiency ratio – its costs as a proportion of its revenues – remains over 80%. It is thought unlikely to meet its target of a 6% return on tangible equity in 2020; its ROTE in 2018 was 2.7%.

Source: Financial Times

Where the Money Goes

Assured Guarantee which offers insurance to debt investors has agreed to take over BlueMountain Capital Management, a USD 19.3 billion money manager.  Assured Guarantee will pay USD 160 million for the acquisition and will invest additional USD 590 million in the firm and its funds. 

Source: Bloomberg


N26, a Berlin-based fintech, estimates that their cost base is 1/5th or 1/6th of the cost base of a traditional retail bank. 

Source: Financial Times

Exciting Numbers

Bad loans on the balance sheets of Italian banks in the beginning of 2019 totalled around EUR 190 billion, or 9% of total loans, compared to EUR 391 billion, or 17%, at the end of 2016.

Source: WSJ

A Thought Worth Noting

“The theory works only when fully implemented, and a full implementation of quantitative easing requires negative deposit interest rates, so that people start to invest and  consume, also in the private sector.”

Kari Stadigh, CEO, Sampo


To receive your personal weekly copy of Banking M&A Digest please subscribe at

Aivars Jurcans has more than 20 years of corporate finance and investment banking experience. His services are currently available through MURINUS ADVISERS.

Photo by Daria Shevtsova on Unsplash

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s