Balance Sheet Optimisation

Introduction

Our clients are constantly looking to optimise their balance sheets for profit, funding and risk.

To achieve this, they refine asset and funding strategies, buy assets or businesses, raise new prudential capital, and support growth through securitisation.

Our clients require an adviser with the breadth to look across all the options, weigh the risks and provide best execution.

An adviser who understands the dynamic regulatory backdrop.

This is the power of KPMG balance sheet optimisation.

Marcus Evans

Partner, Financial Services Deal Advisory

KPMG in the UK

mail

Subscribe to financial services insights

Propositions

Cash Securitisation

Strategic advice on options and impacts
Private finance arranger
Independent advisor on listed deals
Preparation: credit analytics, portfolio optimisation, investor material
Execution: structuring, negotiation, ratings, offering material

Synthetic Securitisation

Advice to first time issuers (structuring, governance, data, regulatory)
Structuring to achieve Significant Risk Transfer
Valuation of SRT positions held by investors

Bottle of orange juice with a filled glass and fruit next to it

Capital Raising

Private finance arranger
Independent advisor on listed deals
Full deal support
CET1, AT1, Tier 2, senior debt, venture capital

Bottle of water with a half filled glass next to it

Tube of tooth paste with a toothbrush next to it

Portfolio Sales & Acquisitions

Loan portfolio sales (buy-side / sell-side) including Performing and NPLs
Credit platform M&A: debt purchasers and servicers
Credit pricing and analytic

Packet of pills with lines of tablets next to it

Capital Management Optimisation / Basel 3.1

Basel 3.1 impact analysis
Preparation or refinement of IRB, Hybrid and AIRB models
Dynamic Capital optimisation under Basel 3.1

Box of cereal with a bowl of cereal next to it

Treasury / Booking Model

IRRBB – regulatory and hedging strategies
Booking models and legal entity structure
Integrated balance sheet modelling

Corporate strategy

Digital transformation
Funding optimisation (products, channels, mix)
Cost reduction programme

Forward flow / originate to distribute

Structuring Forward Flow transactions (buy-side / sell-side)
Restructuring incentives / KPIs to embed “originate to distribute”
Bilateral and competitive Forward Flow processes

Alec Innec
Marcus Evans
Nick Mead
Caroline Nurse
Anton Krawchenko

Alec Innes

Partner, Financial Risk Management

KPMG in the UK

format_quote

As regulatory landscapes evolve, banks must navigate increasing capital requirements and regulatory fragmentation, necessitating sophisticated capital generation tools for efficient balance sheet management.

Alec Innes
Partner, Financial Risk Management
KPMG in the UK

Marcus Evans

Partner, Financial Services Deal Advisory

KPMG in the UK

mail

format_quote

Banks are actively seeking to reduce risk weighted assets and enhance velocity amid the evolving regulatory landscape, with Basel 3.1 set to fundamentally reshape balance sheet management practices.

Marcus Evans
Partner, Financial Services Deal Advisory
KPMG in the UK

Nicholas Mead

Partner, Financial Services

KPMG in the UK

mail
call

format_quote

With impending reforms like Basel 4 adding to financial resource pressures, the need for a range of tools to actively and dynamically manage the balance sheet has only increased and will be a key differentiator in driving improved performance and ultimately improved returns.

Nicholas Mead
Partner, Financial Services
KPMG in the UK

Caroline Nurse

Partner, Financial Services Deal Advisory

KPMG in the UK

mail
call

format_quote

The urgency for balance sheet optimization has intensified due to shifts in global interest rates, coupled with the fallout from recent bank failures and impending regulatory responses across the US, UK, and EU.

Caroline Nurse
Partner, Financial Services Deal Advisory
KPMG in the UK

Anton Krawchenko

Managing Director, Debt Advisory

KPMG in the UK

mail
call

format_quote

Despite the high rate environment, securitisation remains a popular tool to fund organic portfolio growth, while interest in purchasing forward flow for inorganic growth is now widespread.

Anton Krawchenko
Managing Director, Debt Advisory
KPMG in the UK