Bank & Non-Bank Lenders

Q1 of 2023 saw 6 deals in the sector. There was a decline in absolute number of deals executed when compared with the previous quarter but is broadly comparable with the average deals executed in the past few years. Notable deals executed or announced during Q1 2023 include:

• Announcement of the purchase of Credit Suisse by UBS for $3.25bn.
• In the UK, HSBC UK acquired Silicon Valley Bank UK for £1.

The deals activity in this sector has been influenced by:

• Immediate financial pressures: rapid shifts in market conditions placed several banks under pressure, necessitating urgent dealmaking activity.
• Regulations & digitalisation: banks are required to comply with new regulations aimed at, inter alia, enhancing customer protection and improving fraud detection, which can increase operating costs and drive consolidation activity.
• Opportunities arising from the upcoming UK Financial Services and Markets Bill.

Restructuring activity in this sector remains high, not least following high-profile banking casualties in the US and Europe. In the UK, there will be a focus on the upcoming impact of the UK Financial Services and Markets Bill. The biggest change in financial services legislation in over two decades, the new law is aimed at increasing consumer protection and driving investment in innovative technologies.