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FrAnco - German alliances. Banking implementation on the German market through a local partnership. Team Cypress. Define and implement the strategy to establish a French bank in Germany: towards partnership. I. Initial situation II. Market analysis III. Proposed actions.
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Team Cypress 15/12/2009 FrAnco - German alliances Banking implementation on the German market through a local partnership Team Cypress
Define and implement the strategy to establish a French bank in Germany: towards partnership I. Initial situation II. Market analysis III. Proposed actions Team Cypress 15/12/2009
I. 1997 : NATEXIS BanquesPopulaires 4th Commercial Bank (France) Clients are medium-sizedand large French compagnies • Medium-termfinancing • Short-term services for French exporters • Mutual banking group activities(BanquesPopulaires) Showcase of BanquePopulaire (Merger of several banks) • Publicly traded bank • Access to larger companies • International presence Team Cypress 15/12/2009
I. 1997 : NATEXIS BanquesPopulaires • Internal strategic challenges : • Develop a full banking offer (catch up in Europe) • Strengthen international activity independently • Increase profitability Team Cypress 15/12/2009
I. 1997: Brainstorming Create a branch office in Germany Constraints: • A few resources allocated • Be a beneficiary over the first year Activities to choose and develop: Among those of the French company • Corporate Finance • Banking around the international trade • Payment methods • Cash Management • Trading floor Team Cypress 15/12/2009
I. 1997 : Current situation of the banking market in Germany Exchange: 2% of capital + 2 representatives • Facilitate the financing transactions sharing • Observe the local market and its opportunities • Benchmarking: observe the activities of other foreign banks on the local market Partnership with IKB in 1992 • Knowledge in 1997: • Potential customers • The pattern of funding • The tissue of German banking • IKB: a reliable partner • The strengths of this partnership Team Cypress 15/12/2009
I. Background of IKB • „Industriekreditbank“ = bankforloansfortheindustry • longtermfinancingof SME • Link between KfW andindustry • Loanswithadvantageousconditions • Goodmarketposition • Importantcrisis in 2008 • KfW nowowns 90% of IKB (30% before) Team Cypress 15/12/2009
Which strategy for NATEXIS BanquesPopulaires in Germany? Team Cypress 15/12/2009
II. SWOT Analysis Team Cypress 15/12/2009
II. Main Competitors in Germany • Deutsche Bank (private) • First Germanbank and single one with an international organization and an international net bankingincome • Global strategyfocused on corporatebanking and investmentbanking • Weakness in the mergers and acquisitions sector • HypoVereinsbank (private) • One of the main Germanprivatebanks / Clearstrategy • Great success as a Europeanbank acting atregionalscales • Important fame for fields of expertise such as International Trade Finance and Transborder banking services • Landesbanken (public) • 13 regionalbankswithhuge power (47% of bankingincomes in Germany) • Have started to developcorporatebankingactivities for Europeanfirms • As central bodies, they control numerous local public banks (Sparkassen : savingsbanks) Team Cypress 15/12/2009
III. Future developments : main principles • Trust of Germans through IKB • Activity in a marketniche • Concentrate on medium tobigcompanieswithactivities in France • Offersupportforexpansion in France • Complementaryactivitiesto IKB: • IKB: domestic, longterm • Natexis: frenchand international, shorterterm Team Cypress 15/12/2009
III. The keyrole of cash management • Foreignbanks : key area of growth • Corporatebanking : specific niches • Stock exchange operations • Supervise mergers and acquisitions of SMEs numerousSMEs are concerned due to mergers of associated local banks • NBP’sopportunity : open-end investmentfunds (SICAV in French) • One of NBP’s main fields of expertise • Cash management through money marketfunds short termprofitability / lowrisks • Well-adapted to the liberalization of the Germanbankingmarketthroughcorporatebanking Team Cypress 15/12/2009
III. The keyrole of cash management • Two possible strategies NBP IKB Origination Securities management Structuring Distribution Capital development Mergers / Acquisitions Consultancy works Securitization IKB NBP : financialintermediation Origination Securities management Structuring Distribution Team Cypress 15/12/2009
III. IKB’sshare in the bargain ? • Whatelse NBP should do or avoid first ? • Avoidmid-term and long-termfinancing IKB’s niche expertise • Test the profitability of short-termfinancing • Opportunities in France for IKB Financing programs Financing programs Financing programs Market expertise NBP IKB NBP IKB Market room Arranger Arranger Arranger Underwriter Team Cypress 15/12/2009
Thankyouforyourattention Anyquestions? Team Cypress 15/12/2009