PHIMARK BV is a private Dutch firm providing financial investment services, including rating services from a Mergers&Acquisitions perspective.

1. The Banking Industry Chessboard
July 3, 2013
Market Capitalization: $5.769 trillion
The Global Banking index of Mergers and Acquisitions strength declined by over seven
percent during June. This reflected a steep decline of emerging markets values led by
India, and some deterioration in Europe / especially worrisome trend in Italy. Japanese
banks rebounded strongly.
Commerzbank is again in focus as sovereign debt markets deteriorated, with an apparent
crisis in Portugal in the making. Banca Popolare is back in the Distressed category, after
Italian banks generally lost deteriorated, although Banca Generali and Mediolanum
remain top rated Acquirer banks.
US banks generally improved, but we have a clearly divided classification among the major
banks, and this shows up when the stock market becomes selective. We lowered the
ratings of JP Morgan Chase, Citigroup and Morgan Stanley as their closets still contain
skeletons.
PHIMARK Global Index: 127(-7,2%)
Acquirers: 91 (+ 6)
Performers: 198 (- 9)
Management Change: 63 (- 12)
Acquisition Target: 204 (+84)
Distressed: 13 (+ 4)
Total coverage: 569 (+73)

2. Top 10 Banks in Each M&A Classification Category
Management Acquisition
Acquirer Performer Change Target Distressed
Commonwealth Bank ofAustralia WellsFargo & Co JPMorgan Chase & Co. Citigroup Inc. Banco Popolare
Royal Bank ofCanada Industrial and Commercial Bank ofChina Bank ofChina Bank ofAmericaCorp FNMA
Australiaand New Zealand Banking Group HSBC Holdingsplc Mitsubishi UFJ Financial Group Banco Santander, S.A. CRCAM AlpesProvence
Westpac Banking Corporation ChinaConstruction Bank Corporation Goldman SachsGroup, Inc. BNP Paribas Sparebanken Vest
HDFC Bank Limited Toronto-Dominion Bank Mizuho Financial Group Inc. BarclaysPLC BancaPopolare dell'Etruriae del Lazio
Itau Unibanco Holding SA Agricultural Bank ofChina Banco Bilbao VizcayaArgentaria Morgan Stanley SpareBank 1 Buskerud Vestfold
Bank ofNovaScotia National AustraliaBank Limited Capital One Financial Corp. Bank ofCommunicationsCo Ltd SpareBank 1 Notteroy Tonsberg
U.S. Bancorp UBS AG Credit Suisse Group AG Deutsche Bank AG Sparebanken Pluss
Allied Irish Banks Sberbank Rossii The Bank ofNew York Mellon Royal Bank ofScotland Group plc Dexia
Banco Bradesco SA LloydsBanking Group PLC ChinaCITIC Banking Banco Santander Brasil Holand og Setskog Sparebank

3. Top 10 Acquirer Banks
Acquirer
Commonwealth Bank ofAustralia
Royal Bank ofCanada
Australiaand New Zealand Banking Group
Westpac Banking Corporation
HDFC Bank Limited
Itau Unibanco Holding SA
Bank ofNovaScotia
U.S. Bancorp
Allied Irish Banks
Banco Bradesco SA
Bank of Nova Scotia and US Bancorp were upgraded
from Performer to Acquirer rating, reflecting generally
improving economic conditions in North America.
None of the top 10 Acquirers from May were
downgraded in June.

4. Top 10 Performer Banks
Dimon’s comeback lasted as long as the Wall Street rally.
The market still feels there is unfinished business in the
balance sheet of JP Morgan Chase, and at PHIMARK we
offer a mirror. – not a forecast.
Lloyds Banking Group was an upgrade from Management
Change rating. Lloyds Banking Group PLC announced on
May 13 that its Chairman since September 2009, Sir
Winfried Bischoff, will be retiring no later than the
shareholders meeting in May 2014. Asset sales and the
announcement of a plan for the Government to sell its
39% holding in the bank provided confidence for
investors.
Performer
WellsFargo & Co
Industrial and Commercial Bank ofChina
HSBC Holdingsplc
ChinaConstruction Bank Corporation
Toronto-Dominion Bank
Agricultural Bank ofChina
National AustraliaBank Limited
UBS AG
Sberbank Rossii
LloydsBanking Group PLC

5. Top 10 Management Change Rated Banks
JP Morgan Chase is spinning off the Private Equity unit
and has changed the majority of its executives this year.
Presumably, things take time, as the downgrade reflects
a market that demands results.
Citigroup was downgraded along with Morgan Stanley, as
the market recognized that Wells Fargo is a mega-class A
Bank, and the others still class B, depending on economic
growth for their financial restructuring.
Mitsubishi UFJ took the place of Sumitomo Mitsui, as
Japanese banks rebounded strongly. Sumitomo Mitsui
was upgraded to Performer rating.
Lloyds and PNC were also upgraded to Performer rating.
The major uncertainties in China’s economy led to the
downgrade of the Bank of Communications to
Acquisition target rating.
Management
Change
JPMorgan Chase & Co.
Bank ofChina
Mitsubishi UFJ Financial Group
Goldman SachsGroup, Inc.
Mizuho Financial Group Inc.
Banco Bilbao VizcayaArgentaria
Capital One Financial Corp.
Credit Suisse Group AG
The Bank ofNew York Mellon
ChinaCITIC Banking

6. Top 10 Acquisition Target Rated Banks
Mitsubishi UFJ Financial Group was upgraded to
Management Change, as Japanese banks rebounded
from the previous month.
Acquisition
Target
Citigroup Inc.
Bank ofAmericaCorp
Banco Santander, S.A.
BNP Paribas
BarclaysPLC
Morgan Stanley
Bank ofCommunicationsCo Ltd
Deutsche Bank AG
Royal Bank ofScotland Group plc
Banco Santander Brasil

7. Top 10 Distressed Rated Banks
Distressed
Banco Popolare
FNMA
CRCAM AlpesProvence
Sparebanken Vest
BancaPopolare dell'Etruriae del Lazio
SpareBank 1 Buskerud Vestfold
Aberdeen International
SpareBank 1 Notteroy Tonsberg
Sparebanken Pluss
Dexia
• Mountain National Bank, Sevierville, TN with
approximately $437.3 million in total assets and
$373.4 million in total deposits was closed. First
Tennessee Bank, National Association has
agreed to assume all deposits excluding certain
brokered deposits.
• 1st Commerce Bank, North Las Vegas, NV with
approximately $20.2 million in total assets and
$19.6 million in total deposits was closed. Plaza
Bank has agreed to assume all deposits.

8. Watch-list:
Troubled banks that
could go into distress
• Caisse Regionale de Credit Agricole Mutuel du Languedoc
• Crcam Atlantique Vendee
• Mie Bank Ltd
• Banca Popolare di Spoleto
• Klepp Sparebank
• Caisse Régionale de Crédit Agricole de Normandie-Seine
• Bank of Kochi Ltd
• Banca Carige
• Aichi Bank Ltd
• Sandnes Sparebank
• Commerzbank
• UBI Banca
• Caisse Regionale de Credit Agricole Mutuel de la Loire-Haute-Loire
• Banca Popolare di Milano
• CRCAM Nord de France
• Caisse Regionale de Credit Agricole Mutuel Toulouse 31
• Alpha Bank SA
• Nes Prestegjelds Sparebank
• Chiba Kogyo Bank Ltd
• Caisse Régionale de Crédit Agricole Mutuel de La Touraine et du Poitou
• Crédit Agricole d'Ille-et-Vilaine
• Banca Piccolo Credito Valtellinese
• Porter Bancorp
• Village Bank and Trust
• Credit Agricole du Morbihan
Banco Popolare went from Watch/list to
distressed in the month of June.
Caisse Regionale de Credit Agricole
Mutuel Alpes Provence went from
Watch/list to distressed in the month of
June.

9. Trond Johannessen
Director
Phimark BV
+31 620 59 1015
trond@blackwolfbv.com