Consumer Bank Value Enhancement

Bank Divestiture

Situation

This Spanish Consumer Bank owner by a Global Financial Institution had been losing money since acquisition and management wanted to ascertain a clear direction to profitability or to enhance sale value.

Recommendations

A complete review of the business was needed to determine the potential of the business

Conduct review of Bank against peer group and analyze potential for moving to profitability.
Lay out strategy for implementation based on review results.
Aggressively move to strategy implementation regardless of prior inside view.

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Results

Analysis and peer group review demonstrated a significant lack of distribution capability vs competitors. Profitability would require significant investment with unsure results, therefore a sale recommendation resulted.

LoBue re-engineered all Bank functions reducing direct operating expenses over 30% and improving sale results by a multiple of prior expectation.

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