Balance Sheet Optimisation | KPMG UK

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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

Marcus Evans

Partner, Financial Services Deal Advisory

KPMG in the UK

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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

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Synthetic Securitisation

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

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Capital Raising

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

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M&A

Buy-side and sell-side M&A Lead Advisory
Deal Strategy advice and Bid defence
Public to private transaction

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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

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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

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Treasury / Booking Model

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

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Corporate strategy

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

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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

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Alec Innec
Marcus Evans
Nick Mead
Caroline Nurse

Alec Innes

Alec Innes

Partner, Financial Risk Management

KPMG in the UK

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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

Marcus Evans

Partner, Financial Services Deal Advisory

KPMG in the UK

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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-mead1

Nicholas Mead

Partner, Financial Services

KPMG in the UK

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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

Caroline Nurse

Partner, Financial Services Deal Advisory

KPMG in the UK

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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

Financial Services Market Activity – Quarterly Update 1Q25

An update of recent activity across specialty finance, challenger banks and securitisation markets.

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Our financial services insights

The current state of the market, trends and the high-level impact of the regulatory shift

The impact of the PRA’s Strong and Simple regime, the ‘Edinburgh’ reforms and Basel 3.1

Supporting debt capital markets, collateralised funding, significant risk transfer transactions and portfolio trades.

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Our people

Alec Innes

Partner, Financial Risk Management

KPMG in the UK

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Nicholas Mead

Partner, Financial Services

KPMG in the UK

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Caroline Nurse

Partner, Financial Services Deal Advisory

KPMG in the UK

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Marcus Evans

Partner, Financial Services Deal Advisory

KPMG in the UK

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Alex McGowan

Managing Director, Credit Valuations

KPMG in the UK

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Helena Lyons

Director, Securitisation, Deal Advisory

KPMG in the UK

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Get in touch

Read enough? Get in touch with our team and find out why organisations across the UK trust us to make the difference.

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