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Indusry’s key highlights
The financial sector in Belarus is constantly evolving and has a high potential for attractiveness for foreign investors. The sector is represented by banking institutions (28 companies, only 1/5 of them are state-owned ones), insurance companies (20 companies, only 1/5 of them are state-owned ones), besides the financial sector is represented by leasing companies (the number of them exceeds 100 ones, and more than 80% of total number of companies are private).
Recently, financial sector has shown a positive development trend, which is reflected in the performance of each sector. The insurance sector has shown an increase of insurance premiums by +8.3% (in comparison to 2016). This positive trend has been observed during last 5 years, and in money terms, it has amounted more than USD 500 mn.
Indicators of banking sector development confirm growth trend (assets have amounted to USD 32 bn and +2.3% growth rate in comparison to 2016; capital has exceeded USD 4.5 bn and +10.8% growth rate in comparison to 2016).
During last 3 years, leasing market has shown also growth trend in the main indicators (growth of the leasing portfolio has amounted +29% to the level of 2016; and two-times growth in the volume of new business).
Investments in the industry
During last 4 years, the volume of foreign direct investment on a net basis in the financial and insurance sector has amounted to about USD 1 bn (in 2017 it was about USD 200 mn or + 46%). .
The financial sector is attractive for foreign investors, why 15% of the total FDI on a net basis belongs to this sector. The volume of FDI in the financial sector exceeds the volume of FDI in information and communications, transport and logistics, construction, trade and many other sectors of the manufacturing industry.
The financial sector is also characterized by high activity of mergers and acquisitions: the first transactions in the banking sector were recorded in the mid-90s and their total number exceeded 50 (transactions with foreign investors, the full acquisition of banks (takeovers), the acquisition of various shares by financial investors, international financial institutions, privatization deals with strategic investors).
UNITER’s competence in the industry
Since 2002, UNITER Investment Company has been the largest advisor in Belarus in terms of number and value of successfully completed M&A transactions in the financial sector of Belarus.
The company actively participates in supporting mergers and acquisitions in banking sector. UNITER acted as a sell-side financial advisor in sale transaction of 93% share at private bank "Absolutbank". The company was local financial advisor (together with the international company Rothschild & Co) on independent evaluation in privatization of BPS-Bank (the 4th largest bank in Belarus) by Sberbank of Russia (transaction price was more than USD 200 mn). The company participated as buy-side financial advisor (large group GetIn Holding in Poland) in the acquisition of 75% share and the secondary issue of Sombelbank (Belarus).
Since 2010, UNITER Investment Company has been providing professional services in insurance sector, and participated in the first transaction to attract a foreign strategic investor in the insurance industry: the sale of 80% share of the largest insurance company in Belarus B&B Insurance & Co to AXA Group (agreement was signed, but AXA Group suspended the contract execution process for internal reasons). UNITER also acted as financial advisor for transactions with insurance such companies as Benir, Pension Guarantees, and Belarusian National Insurance Pension Fund for the sale of shares and completion of transactions.
Disclaimer
These industry outlooks were prepared for informational purpose only and does not constitute an offer or solicitation of a strategic transaction. Points of view, forecasts and evaluations presented in these outlooks reflect our opinion as of the publication date and may be changed without notice. Although the information contained herein has been obtained from sources we believe to be reliable and although we ensured their accuracy as of the publication date, we cannot guarantee, expressly or impliedly, practicality of these outlooks regarding future events or current or future value evaluation. Any investment decision based on these outlooks should be made only at the discretion of the investor and UNITER or its employees or any third party shall not be responsible in any form and in no circumstances for any action of any party taken on the basis of these outlooks. Nor UNITER, nor any of its employees, nor any third party shall be responsible for losses that result from such actions.
Кейсы в финансовом секторе
The sale transaction of a professional participant in the securities market of Belarus to a foreign investor.
