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Services for the Banking Sector
INTRODUCTORY PRESENTATION
Synesis Advisers has been established by a team of international bankers with a combined experience base of well over a 100 years with top tier financial institutions We aim to add value to your institution through the following services:
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What we do
Credit Portfolio & Processes
• Credit portfolio review
• Portfolio performance metrics analysis
• Perform Data Integrity Valuation (DIV) exercise
• Credit approval process and monitoring review
Real Estate Exposure Management
• Review of real estate collateral portfolio
• Determine real value of collateral and provide value maximisation recommendations
• Assist with property loan restructuring
• Advise on optimal real estate exposure management
Remedial Management
• Review of remedial management capability
• Propose enhancements based on international best practice and assist with implementation
• Provide specific advice on recovery maximisation of large exposures
Compliance / AML KYC / De-Risking
• Review & update of new regulatory requirements in payments & operations
• Risk analysis and status review of CDD, KYC, AML procedures in light of US de-risking, tightening US & EU regulatory scrutiny
• Benchmarking of compliance policies and procedures
Asset – Liability Management
• Process and risk Review
• Capital management (Regulatory & Economic)
• Best market practice benchmarking
• Review of global markets functions (trading, sales, structuring)
Synesis Advisers can support your Credit, Compliance and Internal Audit teams to review existing processes and
capabilities, and recommend enhancements and assist with their implementation
The Synesis Advisers Value Proposition
High Calibre experienced team staffed by ex Bankers from top tier international Banks
Real world lending and credit analysis experience as principals through multiple credit cycles
Expertise on a full range of commercial and investment banking products and services
Excellent track record of service delivery to exacting clients in the CEEMEA region
Selective Service Offering to ensure there are no conflicts of interest
Objectivity: the recommendations we provide will always be independent and strictly confidential
An agile, flexible team able to deploy at short notice to undertake specific projects with a customised approach to each client
Discreet low profile approach to assignments - work in a seamless collaborative manner with client management and staff
Cost effective high quality dedicated services – due to lower overheads as compared with large consultancies and accountancy firms
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Key factors that will shape banking in the GCC over the next years
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What are the main challenges in GCC Banking?
Oil Prices
The significant drop in prices has adverse consequences for: o Obligors directly or indirectly linked to the
oil & gas sector o Public expenditure impacting GDP growth
& domestic liquidity o Concentration risk thereby driving a need
for bank portfolio diversification
Basel III will be implemented by 2019 resulting in: o Higher capital, liquidity and funding stability requirements o Tighter Risk weightings, resulting in a need to reprofile
portfolios o Rigorous and more frequent AQRs and capital adequacy
tests
Tapering of QE
The end of quantitative easing in the US resulting in: o a higher interest rate environment leading to
higher debt servicing for borrowers o adverse impact on investment flows into
emerging markets o dollar linked GCC economies becoming less
competitive due to US$ strengthening
Basel III and economic headwinds will intensify competition for higher quality credits potentially resulting in: - Margin pressure - Looser Facility terms and conditions Imperative for Banks to carefully define and rigorously enforce Target Market, Risk Acceptance and RAROC criteria
Competition
Basel III
Competition
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I. Credit Portfolio Review
A detailed independent and objective analysis of the portfolio will help to determine overall credit strategy and informed capital allocation decisions with reference to selected obligors, industry sectors and asset classes and financial products and instruments. We can support you to undertake Credit Portfolio Reviews:
Credit file review of largest exposures and representative sample of exposures by sector and asset class. Review :
- current financials and projections - collateral valuations, liquidity and debt service capacity - facility and security documents
Analyze portfolio performance metrics of portfolio by sector and asset class
- payment behavior - exposure trends - risk Ratings migration
Perform Data Integrity Valuation (DIV) exercise
- identify gaps in loan database - compare database to data collection from credit file review
Report on :
- asset quality of largest exposures and sectors - obligors that show signs of significant or critical stress - potential shortfalls in collateral - concentration limits and the possibility of realigning risk in certain names or sectors
The Credit Portfolio Review and DIV can also serve as an effective ‘dry run’ for future asset quality reviews by the
Regulators
Credit Portfolio Analysis & Processes
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II. Credit Approval & Monitoring Processes Identifying and addressing credit and compliance process challenges: Perform a review of credit processes including:
- credit policies - structure of credit committees and approval limits
Identify and recommend solutions to mitigate potential weaknesses in: - credit analysis and internal credit memos - standardized loan documentation and security processes Determine effectiveness of credit monitoring and problem identification processes by ensuring:
- appropriate escalation and regularity of credit monitoring depending on risk and asset class - quality of the credit review process - regularity and quality of dialogue with senior management of obligors - timeliness and quality of collateral valuation
- effective follow-up process on recommendations from the credit approval chain and internal audit - appropriate and timely review of borrower and facility risk ratings
Credit Portfolio Analysis & Processes
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Real Estate Portfolio Review
o Through our parent company, 8G Capital Partners, we can provide specialised expert support to review your real estate exposure either directly owned / repossessed or as collateral
o Our expertise built up over entire work out cycles will help to identify early signs of distress, reach consensual solutions with the Customers and manage repossessed assets
We can help in creating value through: Review of the current collateral property portfolio beyond theoretical valuations and determine what is the real value of the
collateral: -income generation -operational expenses -capital expenditure and life cycle issues -market liquidity and its effect on the real collateral value - quality of management of operator of the collateral property
Assistance with the restructuring of problem real estate loans
-what is the most effective way to restructure an asset-backed loan? -are additional facilities ‘to keep the asset alive’ justified or is it a case of ‘throwing good money after bad’? -is the underlying obligor able to manage the downturn? Is there a need for additional expert support and oversight
Maximisation the value of your real estate portfolio: - review the property strategy and its consistency with overall business strategy - make recommendations on strategy and operational procedures - if appropriate devise an asset management plan for each property aiming to maximise value and effect an orderly exit
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Remedial Management
Undertake a detailed review of the remedial management functions and recommend any appropriate enhancements to management and staff capabilities with the objective of ensuring a robust and scalable capability to cost effectively minimise losses and enhance recoveries Propose improvements or design new blueprint for remedial asset management function in accordance with international
best practices for - appropriate management structure (arrears, debt recovery, legal etc) - strategies, tools and products to either turnaround performance of troubled credits or diminish their potential risk to
the balance sheet - monitoring and reporting - IT tools and database enhancements
Assist Clients to implement improvements to remedial management structure and processes and provide training to staff to
identify and manage remedial loans
Provide specific advice on large exposures. Analyze risk, design workout strategy and advise during implementation. Our offering is a complete service from Diagnosis up to Implementation of the remedial solutions
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Compliance, AML & KYC
The de-risking done by US banks in their payment operations and the reduction globally of International banks’ willingness to hold correspondent accounts has had profound impact on countries, country banking systems and individual banks. Add the EU 4th payment directive, the enhanced BSA and Customer due diligence standards. The crucial international payment operations of international banks transacting with the USA, EU and globally have been subjected to regulatory demands of unprecedented magnitude. Our expertise consists of several competencies aimed at working with you to find potential areas that need review or actions to meet the tightening environment within compliance in general and transaction banking specifically These range from: o Update sessions to senior management, Board and operative departments on where industry requirements are sharply
tightening and what other players are doing. Where do increased regulatory demands result in added complexity and cost. Who is doing what and where are the international banking community and its regulators going? What are the risks and how quickly to adapt?
o Review and analysis of how to streamline entire compliance, KYC, account opening, transactions monitoring and post-transaction compliance checking value-chains. Is the end-to-end process a flowing and effective process or a suite of functions and systems that have been bolted on ad-hoc as requirements and needs have increased. What with the increased demands and costs of all aspects of compliance?
o Pre-review analysis, discussion and recommendations on what a compliance and standards review might add of value to your institution. Self-initiated private reviews by specialist firms give control and ownership of results and a benchmarking view of your own operations without being done in a regulatory and remedial driven environment
o Training and skills-updating of compliance related personnel in your institution, as well as benchmarking overall needs for upgrade or top-up of compliance related competency. Are your senior management and board updated to today’s changed standards and requirements
Selected Project List
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Client Location Scope
Top 15 GCC Bank • Asset quality review of commercial and retail loan portfolios
Top 15 GCC Bank • Real estate portfolio review; review of procedures; strategy review and recommendations
Top 4 Greek banks (Subcontractor to PwC)
• AQR advisory • Support during the Stress Test process of Spring-Summer 2014
New EU Member State’s Commercial Banking Association
• Risk Analysis, Review of Transaction banking and Correspondent banking compliance (Dec14-Apr15) and 1Q2016 with specific actionable recommendations for improvement to ensure conformity with international regulatory requirements
Leading European Bank
• Strategy for the orderly wind down of the repossessed property portfolio (700 assets).
• Apply asset management initiatives to selected assets on a strict cost-benefit basis to maximise value
• Orderly liquidation of assets
Our team members have been involved in the following projects:
Selected Project List
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Client Location Scope
Top 10 Factoring Company • Review of business model, strategy, governance and processes (with particular emphasis on credit processes and approvals with the view of applying for a Banking license
The Cooperative Banking Sector on behalf of the regulator, Bank of Greece (Subcontractor to PwC)
• AQR • Adjusting the financial statements based on IFRS • Capital gap estimation • Capitalisation Plan
GCC Bank • Work out of a significant exposure to a major European construction company
Top 15 European Bank Strategic review of options for the lender for selected large exposures • Going beyond the valuation: income generating ability, capex requirements,
management quality. • Asset strategies: stabilize / renovate – reconfigure – redevelop • Borrower strategies: supervise – replace management – loan restructuring –
third party injection of capital & know how
Our team members have been involved in the following projects:
The Team
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Shrenik Davda Shrenik has over 30 years of commercial and investment banking experience primarily with leading firms including JP Morgan, and Deutsche Bank where he helped build up market leading banking franchises in the CEEMEA region.
He has run several emerging markets financial advisory boutiques and notably co-founded New Europe Capital Partners a financial advisory firm which was acquired by Deutsche Bank in 2007. He was recently appointed as an independent Member of the Supervisory Board of Ukrgasbank, a leading Ukrainian government owned bank, to help instil international governance and risk management standards and prepare the bank for privatisation
He has a wealth of credit and lending experience in the CEEMEA region having worked on the origination structuring, documenting and syndication of a wide range of debt and innovative trade finance transactions. He started his career as a credit analyst with Gulf International Bank in Bahrain and received his formal credit training at Citibank
Relevant Experience include:
o New loan approval and ongoing credit monitoring of a diverse corporate and FI portfolio of GCC names
o Asset quality review for a leading GCC Islamic Bank
o Restructuring advisory for a leading Central European conglomerate
o Turnaround management of a regulated UK financial services firm
o Remedial management of a significant exposure to a leading Dutch contractor
Shrenik has an MBA from INSEAD and a Law Degree from the London School of Economics and Political Science
Tassos Kotzanastassis Tassos is the founder of 8G Capital Partners, a boutique financial advisory firm with a focus on property investment management. He founded 8GCP following a successful career in some of the most prominent firms in the industry: HSBC Group, PRICOA P.I.M. (now Pramerica Real Estate Investors Europe), Henderson Investors and IPD. Immediately prior to 8GCP, he was a founding director of the European platform of HSBC Property Investments - the European real estate principal investment arm of the HSBC Group. He has been involved in over 40 real estate transactions across Europe, with an aggregate value in excess of Euro 3 billion
Throughout his 22 years in European real estate (15 of which in London), he has amassed experience in all key areas of real estate investment: fund management, transactions origination and closing, asset management, valuation, performance measurement, strategy and research. His experience is particularly strong in the UK and Central and Eastern Europe
He has worked with and advised numerous banks on:
o Setting up and running a principal property fund management operation
o Managing portfolios of repossessed assets
o Reviewing their options in the case of large exposures
o Restructuring mortgage facilities based on the cash-flow generating ability of assets and dynamic asset planning
Tassos holds a BSc (Hons.) in Economics & Accounting from the University of Bristol and an MSc in Land Management from the University of Reading. He has earned a number of investment management qualifications and he is a CFA charter holder. He is also a Chartered Surveyor (MRICS)
The Team
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The Team
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George Christophorou George is an all-around credit professional for the last 14 years. He has managed several corporate finance and turnaround projects while being a manager of Kantor Management Consultants CFA team. He subsequently served as Country General Manager of Bank of Cyprus in Romania, where he specialised in financial restructuring cases. In the last 2 years he advised the Lenders in the asset quality review project of the four systemic banks in Greece (ECB stress test), while subsequently managed the portfolio review of the Cooperative Banks of Greece on behalf of the home regulator. He has held interim management positions in debt-to-equity swap cases, maintained the entities as going concerns and preserved value
Relevant assignments include:
o Asset quality reviews of the loans portfolio of the systemic banks in Greece in relation to ECB’s stress test
o Loans portfolio review for six Cooperative Banks during the Bank of Greece’s assessment of the impact of the adoption of IFRS
o Business and capitalisation plan of a major cooperative bank in the light of Basel III
o Interim director in 2 prime hotels (JW Marriott – Bucharest and New-Montana mountain resort) as part of a €55 m workout assignment
o Supervision- on behalf of the Group Deputy CEO - the restructuring and workout of a €200m real estate portfolio at Uniastrum Bank (Russian subsidiary)
George has a BSc (Hons) in Mathematical with Computer Science from the City University in London, an MSc in Business Systems Analysis and Design and a MBA with Distinction from the London Business School. He recently qualified as a Certified Turnaround Professional by the relevant European Association
The Team
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Jens Guthe Jens Guthe has a wealth of experience spanning more than 30 years in international banking. He specialises among others in Compliance, AML, KYC corporate Banking, transaction Banking, treasury and securities services. He has a broad based international banking career having spent with JP Morgan Chase and its predecessor firms. almost 31 years as an international banker, starting at Manufacturers Hanover Trust company in New York in 1983, through 4 mergers of Chemical Bank, Chase Manhattan Bank, Bank One into JPMorgan. His career has spanned financial institutions, transaction services, securities services, treasury and funding, investment banking, credit, lending, corporate Banking and compliance.
His most recent position was Managing Director and Head of Nordic Corporate Banking at J.P.Morgan until 2014.
Among noteworthy events and achievements , the following should be mentioned; Part of a team to trim regional lending portfolio by 50% during financial crisis without destroying client relationships; re-building a corporate banking franchise from 10 year inactivity; Part of 2008 Iceland crisis response team both pre- and post crash, as well as establishing a transactions environment enabling country to send/receive intl. payments when the banking community shut the country out in 2009; Part of the Latvian debt-crisis team, finding a solution to a failed institution’s debt re-structuring avoiding the consequences of default situation.
Since 2014, Jens has had the following assignments and positions:
o Assessing the capital requirements of systemic banks on behalf of the Central Banks of Ireland, Greece and Cyprus
o Senior Banking Consultant, Banking & intl. payments compliance risk and recommendations project for a new EU country banking system
o International Advisory Board lead for Meawallet AS, a FINTECH infrastructure firm now in commercial operation o Senior Nordic Advisor, Statestreet Bank, where he helped to increase client penetration into the Nordic Financial
institutions market o Senior Banking Consultant, currently working on compliance remediation advisory for a new EU country
Banking system’s Commercial Banking Association
Jens is a graduate of the Wharton School at the University of Pennsylvania in Philadelphia and of Manufacturers Hanover Trust Company’s credit and management (MBA) program in 1984
The Team
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Alex Coutlis Alex has over 15 years experience in European debt & credit markets, the last 10 years specifically on non/sub-performing loans. He has advised banks, investors, and regulators on the acquisition, management, monitoring and review of sub-performing loans, and has also assisted borrowers in their financial restructuring. His experience spans all asset classes, consumer, mortgage, SME, corporate and real-estate loans, and he has advised clients in Ireland, Germany, Hungary, Greece, Cyprus and Romania.
Recent advisory mandates include:
o Assessing the capital requirements of systemic banks on behalf of the Central Banks of Ireland, Greece and Cyprus
o Advising banks in Greece on management of NPL consumer loans
o Overseeing on behalf of an investor the resolution on an NPL portfolio of real estate loans in Germany
o Assisting a bank resolve secured NPLs in Romania
o Setting up an e-auction platform for repossessed real estate in Hungary
Clients in these projects include, Blackrock, PIMCO, Intesa Sanpaolo, Eurobank and Alpha Bank.
Prior to working with non-performing loans Alex was responsible for underwriting loans financing high-profile corporate acquisitions in the UK from private equity funds.
Alex holds BEng and PhD degrees from Imperial College, London
The Team
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Evrita Malli Evrita is a banking and financial services professional with 15 years experience in Cyprus and the UK (Cyprus Popular Bank in London and Cyprus , Eurobank Cyprus and a UCITS Management company). With a multi-faceted experience in financial services/banking she has a unique blend of capabilities spanning credit and commercial banking, risk management, treasury, private banking, project management and wealth management operations. Exposure from the positions of Deputy in the Group CRO’s office, Head Risk & Project Management, Commercial Credit officer and Head Wealth management operations, provide for a deep understanding of lending, credit structuring / reviews, NPLs, Treasury, FX and Investment products
Relevant Experience includes:
o Heading the compliance and operation functions of the private banking division of a bank
o Review of bank restructuring plans from a risk perspective
o Risk management of SME portfolios
Evrita holds an MBA from Ohio State University and a BBA /Finance and Bachelor of Arts /German (Highest Honours) from the University of Texas at Austin. She also holds the Advanced Examination certificate by the Cyprus Securities & Exchange Commission.
Thank You
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Thank You
For Further Information:
Tassos Kotzanastassis Shrenik Davda [email protected] [email protected]
Nicosia Head Office: Aphrodite’s 25 Suite 204 Nicosia 1060 Cyprus Tel: +357 99 678942
London Office: 1 Berkeley Street London W1J8DJ UK Tel: +44 20 7016 9007
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