Loan Portfolio Analytics

Traditional due diligence for M&A deals in the Financial Service sector has focused on high-level financial analysis on the loan portfolio. Today, investors require insights at the most granular level to support a well-informed investment decision.

Especially in light of global economic turbulence, obtaining a bottom-up view on loan portfolio composition and evolution is critical to understand the quality and risks associated with individual exposures and borrowers.

Valuable insights are unlocked when this bottom-up view is rolled up with ability to segment the portfolio by industry, geography, performing vs. non-performing classification and loan vintage.

KPMG in Vietnam and Cambodia supports investors to generate deep insights into the loan portfolio during the due diligence phase of M&A deals in the Financial Service sector.

• Our client was a significant investor considering an acquisition of a high-profile financial institution.
• KPMG was engaged to support the investor pre-deal, by conducting a due diligence assessment enriched with detailed Loan Portfolio Analytics.

• KPMG gathered, cleansed and consolidated data from the acquisition target across various unstructured data sources, including the loan tape, the disbursement dump, the repayment dump and borrower master data.
• We used advanced data analytics tools to provide a bottom-up view of portfolio performance, whilst being able to roll this back up and reconcile the analysis with the financial statements.
• We visualized the loan portfolio in an interactive management dashboard, with full ability to drill down into individual exposures, customers, industries and segments.

• Our Loan Portfolio Analytics helped our client to navigate a complex deal and support a well-informed investment decision.
• Our analysis significantly enhanced the power of the due diligence by going beyond the insights typically revealed in such exercises.
• Our dashboard was used throughout the pre-deal phase to discuss live insights from the portfolio analysis with our client and the acquisition target.