The news: Bank M&A deals have dropped off significantly in 2022. Just 130 were reported as of October 12, per S&P Global Market Intelligence. This contrasts with 206 deals in 2021 and an average of 258 deals in each of the five years preceding the onset of the pandemic.
Here we explore the sentiments of potential acquirers and acquisition targets who responded to the 2023 Bank M&A Survey conducted by financial institution research firm BankDirector and public accounting firm Crowe. The survey polled 250 independent directors, CEOs, chief financial officers, and other senior executives at US banks that hold less than $100 billion in assets.
Key stat: Potential buyers are feeling the challenges around deal-making, with 39% saying they believe their bank will acquire another financial institution in 2023. That’s down from the 48% who believed they’d make an acquisition in 2022.
Other major findings: The study asked respondents about their motives for buying and selling, and what raised concerns over potential mergers or acquisitions.
Key factors for buying
Reasons to sell
The big takeaway: The survey findings largely align with the trends we covered in 2022. The economic downturn is causing banks to approach 2023 with cautious optimism, while many deals are in limbo due to the Fed delaying approvals as it revamps its review process. Additionally, growing regulatory scrutiny around bank-fintech partnerships is overshadowing the benefits that those partnerships can provide.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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