News

12.03.2013
Alex Polin Took Part in the Forbes Conference for Bank Market Leaders

On March 12, 2013, the Fairmont Grand Hotel was host to a conference dedicated to mergers and acquisitions in the banking sector "Banking M&A: Owner’s Guide", organized by Forbes Conferences. The top players in the banking market and representatives of consulting companies were invited to discuss the reasons for a rally in the banking M&A market. Alex Polin Managing Partner Alexander Polyanchuk also attended this event.


The conference participants included the top managers of more than twenty Ukrainian banks, including FUIB, Ukrsotsbank, UkrSibBank BNP Paribas Group, UniCreditBank, SEB Bank, Credit Agricole Bank, Eurogazbank, National Credit Bank, Forum Bank, MDM Bank, Kyiv Bank, ASTRA Bank, and BM Bank.


During the conference, the participants discussed the reasons for a rally in the market of mergers and acquisitions in the banking business. In particular, they discussed the withdrawal of foreign investors, the sale of banks to local players and the consolidation of banks. The peculiarities of the banking M&A market in Ukraine in general were also considered. Ilya Arkhipov, Chairman of the Supervisory Board of FUIB; Yevgeniya Chemeris, Chairman of the Board of Credit Agricole Bank; and Boris Timonkin, Chairman of the Board of Ukrsotsbank, shared their experience in the completed M&A deals.

 

Ilya Arkhipov described the affiliation of Dongorbank and the acquisition of Renaissance Credit Bank. According to him, due to the acquisition with Dongorbank, FUIB materially has reinforced its position in the market, having risen from the fourteenth to the ninth place by assets. The purpose of the Renaissance Bank acquisition was to enter the new consumer credit market. The key point of that deal was the decision not to consolidate the banks. Since FUIB and Renaissance Credit Bank represent different business fields, their future consolidation has not been planned.


Andrey Yatsura, Chairman of the Board of Forum Bank, stated that 2013 is “the time to buy.” Banks possessing funds are able to increase their market share. Currently the market is changing actively and, according to his forecasts, this situation will last for one to three years. After which stabilization and market formation will occur, and then in five to seven years the foreign banks will start returning to Ukraine again.


Alexander Polyanchuk considers that the main objective of the beneficiaries upon acquisition or merger should be to avoid mistakes while making key staff appointments. “I have watched the changes taking place in the banking sector recently with great interest, since capital structure changes are frequently accompanied by managerial staff changes. One of the most important things at the acquisition or merger stage, in my opinion, is the correct selection of senior managers and a precise definition of the key functions of each manager required for successful implementation of structural changes, since it is this selection that determines the company’s strategic development.”

 

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