Mergers and acquisitions within Asia and Oceania’s financial services sector slowed in the first half of 2026, with overall deal volume falling 14% year-on-year to 147 transactions, down from 170 in H1 2025. Total disclosed deal value across the broader region also dropped from $17.8 billion to $15.8 billion, according to an analysis by EY.
Southeast Asia managed to resist the regional drop in activity levels, recording 31 deals—identical to the previous year’s figure—though total disclosed transaction value shrank significantly from $1.6 billion to $936 million. Stuart Last, EY-Parthenon Partner for Financial Services, noted that the stable deal volume reflects ongoing investor engagement, characterized by a shift toward mid-sized, strategic acquisitions rather than large-scale transactions. Sector activity within Southeast Asia varied: banking and capital markets deals dropped in volume and value, insurance saw slightly higher volume despite falling deal values, and wealth and asset management posted sharp gains in both volume and value, jumping from three deals worth $0.8 million to eight deals worth $145 million.
Across the wider Asia and Oceania landscape, banking and capital markets value surged from $6.4 billion to $11.3 billion despite fewer total transactions, whereas insurance and wealth management both saw reductions in total volume and value. Cross-border interest remained firm, with non-regional firms increasing their acquisitions in Asia and Oceania to 28 deals valued at $1.9 billion.
On a global scale, financial services M&A volume edged up 3% to 1,137 deals, though total disclosed value fell from $191.3 billion to $134.5 billion due to a decline in megadeals over $1 billion. EY Global Financial Services Leader Omar Ali noted that macroeconomic headwinds have constrained large transactions, but analysts expect dealmaking momentum to rebound in the second half of the year as financing conditions ease and strategic assets hit the market.
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