We don t just consult we deliver

Transcription

1 We don t just consult we deliver Delivering excellence to the Banking & Capital Markets sector October 2013

2 General Overview Information about the market As at June 2012 there were 44 licensed banking institutions in Cyprus. PwC serviced 84% of them, by market share based on deposits, providing a broad range of services. We ve looked hard at the banking & capital markets sector and have drawn on decades of experience of a team of banking & capital markets experts to help you overcome the crisis and look to a positive future. 84% Banking Institutions - PwC clients Banking Institutions - non PwC clients Everything we do is designed to help you deliver on your vision. Our aim is to move far beyond advice and support, going all the way down the line to help you make your vision an operational reality. When you team up with PwC you are teaming up with people who understand the big challenges facing the sector, bringing local perspectives coupled with the international expertise only an organization of our size can deliver. PwC in Cyprus has a dedicated team of banking & capital markets experts that comprises10 Partners and Directors and more than 100 client facing professionals. Services provided to Banking Institutions Assurance services Regulatory Compliance Training Capital Adequacy Our people are committed to delivering quality in assurance, regulatory advice, tax and other consultancy services and they are part of a global network of in excess of financial services professionals operating out of offices in 158 countries. In the current environment, against the challenges faced by many financial services organisations in Cyprus, we are uniquely positioned to add value to your organisation. Direct/ Indirect Tax compliance Tax planning Legal advice Deals & Capital Markets Stelios Constantinou Banking & Capital Markets Leader Constantinos Constantinou Banking & Capital Markets Advisory Leader

3 Financial statement audit While many of the rules of business have changed, the fundamentals haven t. Meeting investor expectations begins with the completeness, accuracy and fair presentation of information in your financial statements and disclosures. The financial statement audit is key to sustaining confidence in both your company and the financial system at large in Cyprus this is now of utmost importance. It must keep pace with a fast-evolving corporate reporting environment one characterised by investor scepticism and the 24/7 scrutiny of corporate information, including non-financial information. Quality audits come from a knowledgeable, questioning, imaginative and insightful approach. We are experts in the application of audit methodology and audit techniques and we use our expertise to make our clients audits efficient and effective. We use our knowledge of our clients, together with our position as trusted advisor, to match our approach and our solutions to their needs. We use the audit to explore and think more widely about our clients businesses and the potential issues they face. This understanding enables us to offer new solutions to our clients problems, to help them learn from the past and prepare them for the future. Regulation EU financial services lawmakers face a staggering autumn workload with twenty nine legal texts currently being negotiated or expected to be tabled by the European Commission in the near future. The Eurozone Banking Union legislation and its EU-wide underpinning tops the list, creating the single rule book applicable across the EU. Banks and other financial services organisations in Cyprus will be faced with the challenge of adapting to new regulation whilst also having to react to the new economic reality. We help financial companies to confidently navigate regulatory change. Financial organisations need integrated and practical solutions that cover the entire regulatory agenda and beyond. These changes need to deliver real and significant benefits to the business as a whole. Our dedicated experts recognise that every business is different. We can help you to assess the impact of regulation on your business, mitigate that impact and develop and implement a strategic response that empowers you to take control of the regulatory agenda. Restructuring Faced with the new economic reality in Cyprus, many financial services organisations will need to re-focus on their core businesses and reconsider their strategy and expansion plans. How can your organisation take advantage of opportunities for restructuring and growth? PwC has a dedicated local team of financial services transaction and business development specialists. This team works closely with a global network of experts to help financial services organisations make the most of opportunities for restructuring and growth. This includes: Preparing restructuring plans to help define and deliver the future strategy Preparing lists of suitable targets, both for sale and for purchase Carrying out realistic valuation and rigorous due diligence that reflect the heightened risk and uncertainty in the current market climate Developing a clear and compelling rationale for prospective transactions Ensuring value realisation through effective post-merger integration Identifying the most profitable customers and focusing on the business that will reap the best returns on investment in customer acquisition and retention Ensuring that the business model takes full account of customers needs, tax, financial and regulatory considerations and the organisation s capacity to change the way it does business Using new technology to develop cost effective distribution and delivery Due diligence and asset quality reviews Soon after having been through a fundamental re-capitalisation process, the largest banks in Cyprus are now faced with the potential for a renewed detailed assessment of the credit quality of their loan portfolios as part of the ECB stress tests. A similar exercise may also become necessary as part of a potential M&A transaction. Under both scenarios one thing is certain. Banks will never have much time to prepare for such a review. Our local team of experts has extensive experience in this area and can help in many ways including: Support in preparing for due diligence / asset quality reviews commissioned by regulators (e.g., PIMCO / Blackrock reviews) or for own internal governance purposes Performing independent due diligence / asset quality reviews as part of transaction support Valuations and deals Now more than ever the banks in Cyprus need to ensure that nonperforming loans (NPLs) are actively managed to contain the capital impact. At the same time, the scarcity of liquidity makes it necessary for banks in Cyprus to consider potential disposals of NPL portfolios or other non-core assets. Our local team of experts works closely with our international network to respond to help banks respond to these challenges. Specifically, we can assist in: Developing the strategy for non-performing loans and other non-core assets Sale-side support for NPL portfolios and non-core assets including data preparation, valuation and investor identification Buy-side services for acquisition of NPL portfolios and other non-core assets Risk The better you understand and manage your risks, the better your ability to safeguard your franchise, deploy your funds in the most effective way and capitalise on opportunities more quickly and decisively than your competitors. With the scarcity of capital and liquidity, this is of fundamental importance to the Cypriot banking sector. Our financial services risk management experts can help you to develop the risk strategy, risk insight and underlying infrastructure of risk identification, evaluation and communication that will give you the edge in a complex and uncertain business environment. These include: Liquidity risk management Risk reporting and risk management information Risk technology and infrastructure Risk based capital management

4 Operations The fallout from the financial crisis and the impact of regulatory change is prompting a fundamental rethink of business strategies, operating models and cost structures within the Cypriot banking sector. The focus is on the total cost base, and achieving efficiencies that We can help you address a broad range of business issues by bringing fresh thinking: Contractors are not a cost effective replacement and long-term substitute for permanent staff and they should be tightly managed as a flexible resource. Structural changes such as consolidation and outsourcing are not always straightforward benefits must be weighed against potential tax liabilities, which can be considerable. The best way to reduce procurement costs might not be by squeezing suppliers alone but by engaging with the sources of demand in the business to make better buying decisions. Redundancies are not the only way to reduce permanent staff costs re-examining reward models and pension provision can also produce significant savings. A Programme Office when properly structured it helps sustain the momentum of cost reduction initiatives and embeds cultural management disciplines to deliver long-term savings. Technology The Financial Services sector still faces some of the greatest challenges of recent times, from regulatory pressure, the economic environment, the increasing threat of cyber-attacks, to shifts in customer behaviour and expectation. By bringing our world class technology capability together with deep financial services expertise, we can help you solve these complex business problems from strategy through to execution. We help our clients address a broad range of business issues through seven main offerings: Driving value from technology & operations Customer reach Technology resilience Gaining competitive advantage through agility Navigating risk & regulatory complexity Achieving business insight Achieving business growth Internal audit Today more than ever Company Boards are facing ongoing pressure from stakeholders to mitigate risk yet drive business performance. Internal Audit plays a critical role in providing objective assurance that protects the business against risk, informs strategic decision making and improves business performance. But many organisations do not have an Internal Audit function with sufficient expertise to step up to the challenge. We help companies improve the value and performance of the Internal Audit function by providing solutions tailored to their needs. Whether you need outsourcing/co-sourcing, Internal Audit transformation or Internal Audit start-up assistance, we bring extensive knowledge of Internal Audit, along with sector specialists who know the industry and its technical risk areas. We helped numerous clients with Internal Audit services and Corporate Governance, ranging from drafting Audit Committee charters to execution of Internal Audit services. Our experience spans many industries and economy sectors including providing Internal Audit services to Banks, Investment Firms and Insurance companies. People The financial crisis left the business world with a fundamentally different competitive and regulatory environment. Forward-looking financial services organisations recognise that a different set of skills, smart deployment of talent and the realignment of compensation structures are critical for adapting to the new reality of a post-crisis world. These considerations are more relevant than ever before in Cyprus. PwC is helping financial services organisations to develop the capabilities they need to respond to changing regulatory requirements and challenging market conditions. Our dedicated human resources team works closely with clients to ensure that key aspects of talent management including recruitment, retention and reward reflect and support the overall strategy of the business. Tax The increasing Tax burden is one of the most important concerns of CEOs, driving the adoption of proper internal controls and robust financial reporting processes to satisfy tax authorities, regulators and other stakeholders. At the same time, tax authorities worldwide are concerned with ensuring both increased compliance amongst taxpayers, and that their fiscal policies are not overtaken by global business and economic developments. PwC is the leading provider of tax services worldwide both in terms of the size and scope of our tax practice and our reputation. Clients engage us because we combine a strong understanding of their business and economic environments with specialist tax knowledge in hundreds of national and local jurisdictions across the globe. As tax codes become increasingly complex and tax planning more controversial, we help companies to: Identify and reduce tax risks Assist to meet the banking industry s many and on-going compliance obligations Implement tax efficient strategies that complement their business and operational objectives Represent, liaise and resolve disputes with tax authorities when they arise, and Manage tax accounting and reporting issues and design of best in class tax functions VAT In a global environment characterised by the increasing popularity of VAT and other indirect taxes - and complicated by new regulations and capital requirements - it is more critical than ever to manage your indirect taxes with an eye towards minimising VAT costs, optimising cash flow and reducing risk. PwC Cyprus has a unique and specialised financial services VAT team, the tools and the multi-disciplinary approach to deliver the solutions you need today, and face the indirect tax challenges of tomorrow. Market reporting Successful financial services organisations recognise that greater transparency and clear explanation of the rationale for business strategies will be critical in boosting market confidence and securing access to limited capital in the wake of the financial crisis. This has to be a key priority for financial services organizations operating in Cyprus. What factors do you need to consider? PwC can help financial services organisations to convey the true strength and full potential of their business, meeting both the high standards of today s regulatory reporting requirements and the even higher expectations of analysts and investors: Competitive transparency and disclosure Compliance with regulations and laws Effective valuation of assets and liabilities Developing and reporting non-financial measures

5 At a glance- Why PwC? We have a track record of working with the largest clients in the sector in Cyprus We tailor our services around your needs not the other way around. Because we have large local scale with a wide range of skills supported by an extensive international network we can deploy integrated teams with the industry insight that you need We give you independent advice and support with no links to subcontractors, software providers or outsourcing service solutions We have subject matter specialists and consultants with extensive practical hands-on industry and consulting experience We offer proven state of the art methodologies, customised to your needs including a number of exceptional in-house developed tools and industry-specific methods We give you a full service offering. Our multidisciplinary capability gives you the support you need to cover all aspects of a challenge We are willing to invest in our relationship with you and view all projects as a longterm commitment More about PwC Because we have a local dedicated team of experts we re able to rapidly deploy a big range of skillsets to address your particular challenges. You ll know us for our core strength in assurance and tax but our teams also include regulatory and risk advisory, restructuring, deals and corporate finance, human resources, technology, IT and data specialists to name just a few. And we have practical and local in-depth experience right across the banking & capital markets sector, combined with access to a broad network of international experts.

6 Contacts Evgenios C Evgeniou CEO evgenios.evgeniou@cy.pwc.com Stelios C Constantinou Banking & Capital Markets Leader stelios.constantinou@cy.pwc.com Constantinos Constantinou Banking & Capital Markets Advisory Leader constantinos.constantinou@cy.pwc.com PwC Cyprus Julia House 3 Themistocles Dervis Street CY-1066 Nicosia, Cyprus P O Box 21612, CY-1591 Nicosia, Cyprus Tel: Fax: Androulla S Pittas Partner, Assurance Services androulla.pittas@cy.pwc.com Chris K Santis Partner, Assurance Services chris.santis@cy.pwc.com Christos Tsolakis Partner, Risk Assurance Consulting christos.tsolakis@cy.pwc.com George Lambrou Partner, Regulation & Operations george.lambrou@cy.pwc.com Philippos Soseilos Partner, Human Resources & Operations philippos.soseilos@cy.pwc.com Stelios Violaris Partner, Direct Tax stelios.violaris@cy.pwc.com Chrysilios Pelekanos Partner, In charge of Indirect Tax Services chrysilios.pelekanos@cy.pwc.com George Kazamias Partner, Assurance & Market Reporting george.kazamias@cy.pwc.com Anna Loizou Partner, Assurance & Market Reporting anna.loizou@cy.pwc.com Vassilios Vrachimis Director, Assurance & Advisory Services vassilios.vrachimis@ cy.pwc.com This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors PricewaterhouseCoopers Ltd. All rights reserved. PwC refers to the Cyprus member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details.