Financial Advisory Services
Invictus consultants advise banks, bank investors, regulators and insurers in many facets of strategic activities:
|Balance sheet weaknesses|
|New client targeting|
According to the 2016 Bank M&A survey by Bank Director, 67% of 260 CEOs surveyed said they need more scale to survive, and 51% said they intend to purchase a healthy bank in the next year. Invictus can help you decide on the right bank.
Why we're different
By intelligently understanding how the assets on a bank's balance sheet will behave under certain levels of stress, and by integrating a variety of risk factors and data sources, we can predict the expected change of a bank's assets and liabilities and the resulting impact to capital adequacy, provisioning, earnings and other performance metrics. We run our analytical models on all the banks in your regional area, so can give you unrivalled analysis of competitors, possible acquisition targets, banks to avoid, or "white knights" relevant to you and your circumstances. Our "Leaders and Bleeders" analysis is crucial for early-stage assessment of the likely post-stress position of any potential target. Deeper analysis and stress testing on both your bank and the target reveals post-merger financials -- either at early-stage analysis or with loan-level detail available in the "data room".
We incorporate our models and forecasts into your strategic plan. This not only satisfies the regulatory leaning of including stress testing into the strategic plan but also provides the tools necessary to assess any potential major strategic undertaking. This can include expansion, sale of assets, debt or equity issuance, mergers, acquisitions, and divestitures. You’ll find this information absolutely crucial in any valuation or fairness opinion.
The ultimate outcome is a pro forma balance sheet and income statement based on defendable loan growth assumptions.
By assisting the bank in minimizing Mandatory Regulatory Capital (MRC™) and maximizing Unrestricted Bank Capital (UBC™), we help your bank have more capital available for deployment into lending assets, thus increasing return on capital.
We are recognised and used by regulators. The Invictus products have been vetted by U.S. and state regulatory agencies for the quality of the methodology and the accuracy of its results. Many have adopted it as their own best-practices standard. No other organization can make this claim for a stress testing methodology.
We supply corporate finance advisory services on mergers, acquisitions, divestitures, fund raising activities, sale or acquisition of assets, corporate restructurings, valuations and fairness opinions. If you already have an advisor we will work very closely with them to communicate your plan, evaluated under stress, with your regulators, directors, and shareholder/investors.