Banking & finance annual report
there is considerable finance-related
M&A, particularly in relation to
assets in the renewable energy
sector. However, he also says that
a decrease in restructuring work –
which has been “one of the main
work streams for banking lawyers
in recent years” – is a concern, as are
uncertainties surrounding the future
of the European Union. Pérez López
adds that competition between
banking clients as well as law firms
is f ierce and the pressure on fees
continues.
With regard to the activities of
the legal arms of the ´Big Four’
auditors in the banking and finance
market, Barona says that, while they
are not usually “seen on big deals
at present, they are doing things
really well and could potentially be
serious competition to big law firms
and they need to be respected”.
Meanwhile, one partner says
the ‘Big Four’ have the contacts
that enable them to “penetrate
corporates” as well as significant
resources.
De Luisa remarks that there
are significant opportunities for
financial transactions in Latin
America, particularly Mexico,
Colombia and Peru. He adds:
“All Spanish firms are deploying
resources there and in many
situations, firms’ finance practices
are taking the lead in key
infrastructure and energy projects in
these jurisdictions.”
Portugal: Banks under stress
The Portuguese banking sector is
under stress, according to Servulo
managing partner Paulo Câmara.
“There are regulatory constraints,
staff cuts and new owners,” he
says. “There is less investment from
Angola and more from China.”
Another major issue facing banks
is non-performing loans and,
specifically, whether there should
be a single universal solution to
this problem, or whether solutions
should be tailored to meet local
requirements, Câmara adds. He
also says that smaller banks and
consumer credit organizations are
entering the market. However, there
are fewer initial public offerings
(IPOs), partly because businesses
“fear the regulation costs involved
when listing,” according to
www.iberianlawyer.com
interpret EU banking regulations.
Câmara. Yet there are considerable
He adds that there are around €40
opportunities for law firms to advise
billion worth of non-performing
banks, he adds, to the extent that his
loans that are up for sale in Portugal
firm is hiring more people to meet
and some private equity funds are
demand.
A lot of
banking
Technically only banks and
lawyers’ work
is devoted to
credit institutions are authorised
clearing banks
[to lend in Portugal], but I don’t
balance sheets
think entities [such as private
– particularly
selling off non-
equity funds] licensed elsewhere
performing
can be stopped.
loans –
says Uría
Filipe Lowndes Marques, MLGTS
Menéndez
partner Pedro
Ferreira
keen to buy them.
Malaquias. He adds that private
Foreign banks are becoming
equity funds have a growing role
more active in Portugal due
in the Portuguese banking sector.
to Portuguese banks’ lack of
Meanwhile, Ferreira Malaquias says
availability with regard to lending,
lawyers also dedicate “many hours”
says Filipe Lowndes Marques,
to banking regulation work, in
partner at MLGTS. He adds that
particular matters concerning how
the uncertainty in the Portuguese
the Portuguese government will
“
”
Portugal: What are currently the biggest opportunities for law firms in
banking and finance?
“The overall stabilisation of the financial sector in Portugal and the stronger
capitalisation of the banking sector will allow key financial players to accelerate
the deleveraging process creating important opportunities. Also, the offloading of
non-performing loans and non-performing exposures will trigger opportunities.”
António Payan Martins, partner, CMS Rui Pena & Arnaut
“Due to high levels of non-performing loans on financial institutions’ balance
sheets, we anticipate demand for legal advice on new measures for reducing costs
and strengthening balance sheets, including divestment from non-core activities,
the sale of assets and the transfer and management of non-performing loans.”
Mafalda Oliveira Monteiro, partner, Miranda & Associados
“The economic crisis stalled the M&A market and insolvency and corporate
recovery cases increased significantly. Nevertheless, the number of M&A
transactions is now increasing – in particular, M&A operations in the banking
and financial sector given that it still requires a certain degree of consolidation.”
António Vicente Marques, founding partner, AVM Advogados
“The issues related to recapitalisation and non-performing loan portfolios that
the Portuguese banking sector still needs to address. Also, disputes around the
resolution of Banco Espírito Santo.” Maria Castelos, partner, Campos Ferreira, Sá
Carneiro & Associados
“Banks still have balance sheets with enough real estate to generate important
opportunities to advise on the sale of those assets. This also applies to other types
of collateral held by banks, such as stakes in companies outside the financial sector.
Bank mergers, with sales of shareholdings (for example, involving BPI, La Caixa,
Banif, Santander, Millennium and Chinese Fosun) also led to excellent opportunities
for law firms.” Nelson Raposo Bernardo, managing partner, Raposo Bernardo
“Advising on the sale of non-performing loan portfolios to foreign investors, as well
as advising banks on the sale of real estate assets.” Edmundo Batalha Reis, partner,
SPS Sociedade de Advogados
March / April 2017 • IBERIAN LAWYER • 29
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