The financial sector is undergoing profound changes that require its agents to redefine their economic model and scope of activity:
- more stringent solvency and liquidity standards
- stricter risk controls demanded by both regulators and investors
- increased economic risk due to the recession, and political risk due to the instability of some emerging countries
- reduced yields, creating challenges for asset management and life insurance
- closer ties to the state, the ultimate guarantor for banks and insurance companies under its jurisdiction.
- implementation of the European Community and the Banking Union law
These upheavals, after first generating significant merger activity (Barclays-Lehmann, BoA-Merrill Lynch, BPCE, Commerzbank-Dresdner, etc.), today appear to be prompting stabilisation efforts:
- reduced balance sheets
- exit from many peripheral businesses or assets
- sequestering or disposal of specific risks
- reduced geographic spread and caution with regard to development opportunities
- cost savings.
And yet, at a time when the sector seems to be finally arriving at the culmination of its balance sheet clean-up efforts, and the major systemic financial risks appear to be under better control, financial institutions must once again pursue growth and returns rather than relying only on the abundance of liquidity at very low cost.
To accompany this dual trend – refocusing on better managed businesses that consume less capital, seeking better growth and higher returns – Gimar & Cie teams have a number of advantages to offer:
- diversified and high-level experience in this sector from its very beginnings, earned supporting some of the largest groups with multiple deals
- a very financial and very institutional shareholder base, that enables Gimar & Cie to understand and anticipate the strategic issues in this sector
- the rare independence to advise bank and insurance clients, who are both competitors and partners to most of their counterparties.