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PADUS CONSULTINGSolutions for structural banking challenges
Managing strategic and tactical implementation
Europe London Africa G.C.C. Asia
Delivering structural recommendations
Understanding C-suite prerogatives
Across a Bank’s organizationAsset & Liability
management Operations Human Resources Risk Functions
Trained to solve critical risks and implement business opportunities inRetail Banking Asset & Wealth
ManagementCorporate &
Investment Banking
HOW W
E ARE DIFFERENT A unique insider knowledge
Efficient
Discreet
Humble
Trustworthy
THINKING DIFFERENTLY In Resolving your challenges regarding … … via a different approach
Empathetic
Analytical
Insider Expert
Creative
• Strategy• Allocation and
monitoring
ROA, ROE and COI
• Strategy• Monitoring tools
and objectives
Performance management
• Regulatory adhesion
• Decision process and Governance
Risks control framework
Our services scope
OUR APPROACH TOWARDS SOLVING YOUR CHALLENGES
Contractual agreement Investigation phase Diagnostic phase Implementation
ACTING DIFFEREN
TLY
Diagnostic phase
Investigation phase
Conclusions
Clear mandate
Definition of the scope of our missionMission duration
Clear identification of
your requirements
Translation of your requirements
into specific analysis streams
Identification of all internal
departments involved
Contractual agreement
You requirements will be translated into specific analysis streams:
How problematic areas are currently handled within your organization
On which data they rely, how accurate this data is and how it is circulated throughout your organization
Your staff capabilities
Your processes and procedures, including as to decision-making
At the end of this phase, conclusions will be presented highlighting any discrepancies between what should be done and what is currently being done to achieve your goals.
Based upon the diagnostic validated by you, we will:
Assess the quantitative impacts of your current organization on your risk and revenue goals
Devise the required and pragmatic solutions to address these
Assess implementation costs
Diagnostic stage conclusions are shared with and validated by all heads of department involved in the process.
We will remain involved in the implementation phase to insure our accountability towards you
Board presentation
Findings Recommendations
1
3
2
4
CREDENTIALS
Europe
UK
Africa
G.C.C.
Asia
KEY ACHIEVEMEN
TS (1/3)ROA, ROE and COI challenges Key achievements
Wealth Management
Development of new products and improvement of distribution channels; Implementation of a cross-selling strategy with the Investment Bank
Shifting from a multi-site booking and marketing model to a central single one with client migration and service implications
Tangible results: ROA increased by 10 points, COI reduced to 63%, Net New Assets of USDM 650 generated (1)
Investment Banking
New criteria defined for: (a) asset allocation per country and client segmentation;
(b) ROE at individual and portfolio level for credit committee approval; (c) RWA consumption
New criteria defined for capital allocation to non-listed investments
Tangible results: Assets -45%; ROE +300 bps; cross selling between lending, cash management and FI increased (2)
Retail Banking
Credit-risk scoring methodology testing /back-testing and building methodologies
Refocusing on more profitable revenue channels such as internet and third party
Imposing cross-selling to reduce RWA exposure and improve asset allocation process
Tangible results: Improved credit scoring profitability; reduced Assets by 33% and increased ROE by 200 bps (3)
• Strategy• Allocation and
monitoring
ROA, ROE and COI
• Monitoring tools and objectives
• KPIs
Performance management
• Decision process and monitoring
• Regulatory implications
Risks control framework
(1) From year one(2) & (3) Over two years time
KEY ACHIEVEMEN
TS (2/3)Performance management challenges Key achievements
Wealth Management
Definition of a 3 year business plan focused on UHNWI clients, monitored at executive level
New KPIs insuring coherence between revenue target and risk taking (product miss-selling)
New cross-selling dashboard emphasis on IB and institutional AM product delivery to UHNW clients
Tangible results: Increase in UHNW client revenue by 35% (1)
Investment Banking
Definition of a 3 years business plan focused on improving cross-selling and RWAs
New governance dashboard and forum monitoring revenue, liquidity and capital per country and per client (2)
Tangible results: Increased revenue by 45%; closed unprofitable business units; became a net positive USD liquidity provider
Retail Banking
Implementation of frame-work to monitor ancillary business on a stand-alone credit decision basis
Introduced credit scoring monitoring on quarterly basis
Introduced cross-selling KPIs with IB division for mid-caps
Tangible results: Increased revenue by 30% and credit scoring performance acceptance
• Allocation and monitoring
• Cost of capital
ROA, ROE and COI
• Strategy• Monitoring tools and
objectives
Performance management
• Decision process and monitoring
• Regulatory implications
Risks control framework
(1) An example of successful strategy execution without creating a dedicated UHNWI client team
(2) For the first time, funding capability was entirely part of the decision process
KEY ACHIEVEMEN
TS (3/3)Risks control framework challenges Key achievements
• UAE, KSA, Kuwait, Qatar and BahrainGCC
countries
• Monitoring tools and objectives
• KPIs
Performance management
• Regulatory adhesion
• Decision process and monitoring
Risks control framework
Regional regulatory topics
Implementing new procedures and processes to improve cross-border rules (marketing and product registration) and regulatory ratios adherence
For business development purposes: Opening of new licenses in: Saudi Arabia, South Africa, Indonesia, Bahrain and Qatar (1)
Tangible results: Avoidance of legal & reputational risks; adherence to all regulatory ratios without raising capital
Basel II / Investment Banking
Reviewing Governance, GRR, ratings (back testing /stress testing), aligning of Finance and Risk data and credit policies of IB activities
Optimization of capital computation & allocation method for the Banking book
Tangible results: BNP Paribas Investment Banking globally was certified under the Basel II advanced approach*
Basel II / Retail Banking
Reviewing Governance, GRR, ratings (back testing /stress testing), aligning of Finance and Risk data and credit policies of RB activities (2)
Improving credit scoring methodology and documentation as well as back / stress testing methodology
Tangible results: BNP Paribas Retail Banking globally was certified under the Basel II advanced approach*
• (1) We have informally advised UAE Central Bank Basel II Certification team• (2) Assessing more than EURB 60 credit risk exposure on French retail banking BDDF,
Cetelem consumer Finance and BPLG leasing solutions• (*) Our work was audited and validated by Commission Bancaire French Regulator
ABOUT US
STEPHANE LE BECHEC‘S PRO
FILE Career overview Way of thinking
My ethics
BIOA strategic, analytical and decisive banking professional with experience in leading global and regional key projects impacting risk, liquidity, and return on equity management across the Retail, Investment Banking and Asset & Wealth Management businesses. Reported directly for 5 years to BNP Paribas Group CEO. 15 years experience in finance and banking, mainly at BNP Paribas at various positions, such as Quant risk modelling, inspecteur and head of mission at Inspection General as well as Regional Head of business development & strategy for MEA regions.
DIPLOMASMaster, Mathematics Engineering, University of Amiens, France
Personal achievement
Apart from raising two beautiful daughters with my wife, the achievement I derive most pride from is that of providing full care and support to a family member during a period of two years. This family member contracted an acute disease in 2013 and despite medical prognosis is living a vibrant life today.
Empathetic
Analytical
Insider Expert
Creative
Efficient
Discreet
Humble
Trustworthy
CON
TACTSContacts
Padus Consulting
215 route de Malagnou / 1224 Geneva/ Switzerland
Mobile: + 41 79 895 80 55
www.padusconsulting.ch
