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Category: Finance

Retail News Asia is committed to providing both local and global retailers with the latest Finance news throughout the Asian market. This on a daily base.

  • Mastercard Backs Cryptocurrencies

    Mastercard Backs Cryptocurrencies

    Credit card and payments firm Mastercard becomes the latest crypto backer as it announces plans to offer support for select cryptocurrencies.

    Currently, Mastercard is already offering cards that allow customers to transact using their cryptocurrencies without going through its network. The latest move is expected to further expand business opportunities for merchants.

    Doing this work will create a lot more possibilities for shoppers and merchants, allowing them to transact in an entirely new form of payment,» Mastercard said, though it noted that tighter compliance measures were still needed for many of the hundreds of digital assets in circulation.

    This change may open merchants up to new customers who are already flocking to digital assets.

    Mastercard becomes the latest corporate giant to join the crypto wave just days after Tesla revealed that it had purchased $1.5 billion of bitcoin and that it would soon be accepted as a form of payment.

    Also in this week, DBS group chief executive Piyush Gupta signaled bullishness in crypto demand, revealing that its digital exchange registered 300 trades per day since launching in December last year.

    So far it’s looking good, but I think we have the opportunity to scale, given the amount of interest and energy around tokenized assets, Gupta said.

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  • P2P Lender Funding Societies Launches in Thailand

    P2P Lender Funding Societies Launches in Thailand

    This expansion to the startup’s fourth market comes after more than a year of working with Thai regulators and planning for market entry.

    Singapore-based Funding Societies, Southeast Asia’s largest SME digital financing platform, has rolled out its platform in Thailand, the company announced in a statement on Tuesday.

    The P2P lender noted Thailand’s large and SME-driven economy and the credit gap that has been exacerbated by the pandemic.

    The platform will provide Thai SMEs with full access to short-term customizable financing solutions, which are funded by retail and institutional investors, who can expect returns of 8 to 13 percent, the announcement said.

    The crowdfunding landscape in the country is growing steadily and we see a lot of potential here, Varun Bhandari, country head of Funding Societies Thailand, said about the expansion. The market follows launches in Singapore, Malaysia and Indonesia.

    In its six years of operation, Funding Societies has disbursed over $1.4 billion in funding to some 65,000 SMEs. The platform is backed by major investors like Sequoia India and Softbank Ventures Asia.

    Funding Societies recently announced a strategic alliance with Samsung Ventures and Samsung Life Insurance to introduce prospective partnerships and collaborations.

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  • Citi Hong Kong Bucks Groupwide Profit Trend

    Citi Hong Kong Bucks Groupwide Profit Trend

    Citi’s Hong Kong businesses registered growth across the board, according to an internal memo seen, despite a more than 40 percent drop in profit for the overall group. Citi Hong Kong’s consumer business saw a 44 percent increase in net new money inflows with 9 percent revenue growth in wealth management in 2020, according to an internal memo seen.

    Within its institutional business, banking revenues were up 10 percent, backed by a 61 percent increase in investment banking. The memo highlighted equity deals Xinyi Solar and Kerry Express Thailand, the secondary listing of Yum China, and advisory for the privatization of Li & Fung.

    Its markets business saw 5 percent growth with its treasury unit as the major revenue performer, benefitting from low-interest rates.

    According to Citi’s Hong Kong and Macau CEO Angel Ng, Asia remains key to the success of the bank’s wealth strategy which includes its recent move to merge the whole business from affluent to ultra-high net worth clients. She also highlighted digitalization, Greater Bay Area, and other areas of focus for the business.

    A spokesperson confirmed the contents of the memo.

    The Hong Kong unit contrasts with that of Citi’s global results which posted flat revenues year-on-year at $74.3 billion with profits down 41 percent to $11.4 billion.

  • DBS Posts Fourth Quarter Profit Drop

    DBS Posts Fourth Quarter Profit Drop

    DBS posted lower profits in the fourth quarter of 2020 due to higher allowances set aside for potential bad loans.

    Net profit fell 33 percent year-on-year to S$1.01 billion due to a lower net interest margin and high total allowances set aside, according to a statement from DBS.

    The bank’s earnings were in line with the average estimate of S$1.02 billion, according to Refinitiv’s compilation of four analyst forecasts.

    For the full year of 2020, DBS posted a net profit of S$4.72 billion, 26 percent below the record performance of 2019 as total allowances more than quadrupled to S$3.07 billion due to risks from the pandemic. Total income was stable at S$14.6 billion.

    According to the bank’s CEO Piyush Gupta, its pipeline for loans and fee income is healthy and it has also been actively positioning itself for growth.

    We have been proactive through the crisis and enter the year with new growth platforms, Gupta said.

    Lakshmi Vilas Bank in India and the securities joint venture in China will enhance our presence in both key markets. Initiatives such as the Digital Exchange, supply chain digitalization, and efforts to broaden wealth management to the mass market will reinforce our leadership in digital finance. These platforms will strengthen our ability to continue supporting customers and delivering shareholder returns.

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  • Thailand’s 2nd largest bank set for Vietnam entry

    Thailand’s 2nd largest bank set for Vietnam entry

    Thailand’s second-largest lender by assets, Kasikornbank, plans to open a branch in Ho Chi Minh City in the third quarter this year.

    “Attention is now focused on Vietnam as a regional investment hub that has attracted the world’s leading companies, including from Thailand, thanks to its strong economy,” the bank’s executive vice-president, Pattarapong Kanhasuwan, said in a statement, adding its recovery should be helped by its success in containing Covid-19.

    The new branch gained regulatory approval in January and plans to lend THB10 billion ($333 million) in its first year of operation.

    The bank will focus on Thai and foreign businesses investing in Vietnam and startups in digital technologies.

    Thailand was the seventh-largest foreign investor in Vietnam last year with $292 million, according to the Ministry of Planning and Investment.

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  • SGX Joint Venture to Launch Asian Bond Trading Platform

    SGX Joint Venture to Launch Asian Bond Trading Platform

    The XinTru joint venture with corporate bond trading platform provider Trumid and private equity firm Hillhouse Capital, will launch a new electronic bond trading platform later this year.

    This partnership combines Trumid’s cutting-edge technology and fixed income expertise, SGX’s deep experience in Asian financial market infrastructure and electronic trading, and Hillhouse’s expertise and network in Asia and the financial services sector», SGX said in a statement on Monday.

    The Trumid XT platform will connect liquidity from SGX’s Bond Pro and Trumid’s Market Center in the U.S. to provide a network for Asian fixed-income trading. This will enhance international access to Asian bond markets and facilitate Asian investor participation in U.S. and global emerging market credit, SGX said.

    XinTru’s independent management team includes chief revenue officer Ben Falloon who brings 20 years of Asia fixed income experience and relationships, and chief operating officer Mark Leahy, who has significant experience building and operating capital markets businesses in the region.

    SGX led a $53 million growth equity financing round in the New York-based startup in 2018, and subsequently joined Hillhouse Capital in another round of investment in 2019 when the firm took a minority stake in Trumid.

    Our early investment in Trumid paved the way for this deeper collaboration to advance the overall bond market infrastructure in Asia,” said SGX chief Loh Boon Chye.

    Trumid experienced exceptional growth in 2020, with trade volumes growing 374 percent year-on-year.

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  • Mastercard partners with SAP Concur to deliver automated expense and invoice management for businesses in APAC

    Mastercard partners with SAP Concur to deliver automated expense and invoice management for businesses in APAC

    Mastercard has partnered with SAP Concur to deliver a faster and more efficient expense and invoice management process to banks, companies and government agencies in Asia Pacific for transactions with corporate cards.

    As businesses and governments seek to increase visibility across payments, optimize credit lines and leverage data to strengthen supplier relationships, the partnership offers best-in-class transaction solutions along with closer alignment between commercial card providers and their clients.

    “This powerful pairing offers the best of both worlds by combining SAP Concur’s expense management expertise with Mastercard’s global payments network, extensive partnerships, industry-leading security and comprehensive solutions and services,” said Mostafa Sabet, Vice President, Product Management, Asia Pacific, Mastercard.

    “In today’s competitive environment and rapidly evolving digital economy, Mastercard’s integration with SAP Concur solutions will deliver the tools and insights that businesses and governments need to control costs and manage expenses tightly, transparently and efficiently.”

    Using commercial cards in conjunction with SAP Concur solutions for corporate travel booking, expense management and invoice processing will help to speed up reconciliation and payments while strengthening cost controls and improving compliance.

    For Mastercard’s issuing customers, the partnership improves the processing of corporate payments and supports the extension of SAP Concur solutions to business and government clients of all sizes.

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  • KBank to open a Ho Chi Minh City branch

    KBank to open a Ho Chi Minh City branch

    KASIKORNBANK (KBank) is gearing up to become The Bank of AEC+3 after the State Bank of Vietnam granted approval for the opening of a branch in Ho Chi Minh City, Vietnam. The Bank aims to serve Thai business customers, including large corporate and SME clients who have invested in Vietnam, as well as local retail customers. It targets lending of 10,000 million Baht in its first year of operation while also investing in start-up firms with the aim of scouting advanced digital technologies for increased business opportunities.

    Mr. Pattarapong Kanhasuwan, KBank Executive Vice President, said that KBank was granted a license to open a branch in Ho Chi Minh City on January 19, 2021, and the Bank is now preparing for its inauguration. The branch is scheduled to open its doors within the third quarter of this year in order to provide services to local customers, including Thai and foreign businesses investing in Vietnam. Attention is now focused on Vietnam as a regional investment hub that has attracted the world’s leading companies – including those from Thailand – thanks to its strong economy. As evidenced, Vietnam is the only ASEAN country that is presently enjoying positive growth. In spite of the COVID-19 pandemic, it is among the world’s top four countries in terms of GDP growth. The International Monetary Fund (IMF) has assessed that the Vietnamese economy will recover at a fast rate in 2021, with growth projected at 6.5 percent. This will likely attract international investors, both in Asia and the West, to steadily invest in Vietnam going forward.

    With these factors in mind, KBank has used the knowledge gained from services offered at its two representative offices in Hanoi and Ho Chi Minh City in order to upgrade the representative office in Ho Chi Minh City to a Bank branch. It will focus on offering services to Thai, Chinese, Japanese and South Korean companies wishing to expand their businesses in Vietnam for international trade and investment, as well as local entrepreneurs, especially those conducting business with Thai corporate customers of KBank.

    KBank has set operational targets for the Bank branch in Ho Chi Minh City once it

    is fully established in 3Q21. These include services primarily for business sectors related to Thai customers of KBank, in particular SMEs, trading, service, infrastructure and industrial businesses. Its services will then be expanded to retail banking, including deposit and personal loan, based on KBank’s digital banking expertise in collaboration with local tech start-ups through investment by KVision to ensure that such services meet the needs of local retail customers. In 2020, the number of internet users in Vietnam had reached up to 70 percent of the total 90 million population, and Vietnam’smarket was valued at USD13 billion. KBank’s investment in Vietnam differs from that in other AEC+3 nations, where the priority is on international business. KBank’s 4Q21 operational targets for the AEC+3 include deposits of 1.2 billion Baht and loans of 10 billion Baht.

    KBank will continue to operate through the Hanoi representative office to provide service and act as an intermediary between the KASIKORNBANK Head Office and Thai customers who are expanding their businesses to northern Vietnam. At the same time, the Hanoi representative office supervises investment projects that have received financial support from KBank, compiles market data to support customers’ business plans, and promotes trading activity and investment between Thailand and Vietnam. Thai exporters who ship goods to Vietnam will also be given more access to the ASEAN market through this international network.

    KBank’s approval from the State Bank of Vietnam to set up operations in Vietnam is a highlight of the Bank’s strategy in becoming The Bank of AEC+3 that will connect all of its services via an extensive banking network in various forms including locally incorporated institutions (LIIs), branches, representative offices and partner banks. At present, KBank has an overseas service network across the AEC+3 countries and several others, in 16 countries and with more than 84 partners worldwide.

  • Chubb Hires APAC Property Head From AIG

    Chubb Hires APAC Property Head From AIG

    Chubb, the world’s largest publicly traded property and casualty insurer has announced new appointments for its Asia Pacific property and casualty team.

    Commercial property specialist Alex Todd has joined Chubb as its head of property, a role in which he will be responsible for the growth and performance of its commercial property portfolio in Asia, the company announced on Friday.

    Todd brings 18 years of international experience and joins from AIG, where he led a team of 50 and was accountable for a variety of first-party programs and specialty lines across Canada. Based in Chubb’s Singapore regional office, he will report to Grant Cairns, regional head of property and casualty for Asia Pacific.

    The company also appointed Jamie Park, previously Chubb’s chief underwriting officer as well as head of portfolio management, casualty, and financial lines and environmental liability in Korea, as its head of financial lines, based in Singapore.

    In her new role, Park will be responsible for the underwriting, product development, new business opportunities, as well as driving the overall profitability of Chubb’s Financial Lines portfolio in Asia.

    The appointment of the pair supports the continued drive and strategic direction of its growing property portfolio, and position as the market leader in financial lines across Asia, Chubb said in a statement.

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  • StanChart Sheds Office Space in Hong Kong

    StanChart Sheds Office Space in Hong Kong

    Standard Chartered will give up several floors in the main offices of the Hong Kong central business district as banks continue to adapt to the post-covid environment.

    Standard Chartered will give up the lease on eight floors of its Standard Chartered Bank Building in the central business district, according to a Hong Kong Economic Times report which cited related marketing materials.

    Landlord Hang Lung Properties is asking for about HK$6 million ($770,000) in rental per month for the 60,000 square feet space. The offices will be available between next month and April 2022.

    The British lender is also renting out three floors it owns from its offices in Kwun Tong, an industrial district in the eastern part of Hong Kong.

    The move falls in line with Standard Chartered’s announced plans to permanently offer flexible work options to around 90 percent of its 85,000 employees around the world. According to the bank, hybrid work arrangements will be made available to around half of its staff in early 2021 and will extend to 75,000 workers in 55 markets by 2023.

    While we have been thinking through the issues around the future workplace for some time, it’s inevitable that recent events provided a catalyst, said Standard Chartered’s human resources head Tanuj Kapilashrami in an internal memo.

    Vacancy rates amongst the district’s Grade A office are reaching the highest levels in December last year since 2004, according to property services firm Jones Lang LaSalle. And foreign firms are a major contributor with multinational companies making up 75 percent of total surrendered Hong Kong office stock in the last quarter, according to Cushman & Wakefield.

    Standard Chartered aside, other global banks that have recently shed office space in the main district include BNP Paribas, Nomura, and Macquarie Group. HSBC also said last year that it was considering ways to digitize more of its operations and is seeking to have more employees work from home in the future.

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  • HSBC Considers Relocation of Top Execs

    HSBC Considers Relocation of Top Execs

    The bank is reportedly considering moving a number of its top executives to Hong Kong or Singapore to strengthen its push in Asia.

    Among the relocations being considered are the two co-heads of its investment bank, Greg Guyett and Georges Elhedery, who are currently located in London, reported on Thursday.

    The move of its top decision-makers to Asia, where the bank makes most of its money, comes almost a year into its restructuring under chief executive Noel Quinn. The bank is preparing to announce the outcome of a strategic review later this month.

    HSBC has been undergoing an overhaul to focus on fee-generating businesses and reducing its operating costs. The bank has also said it intends to increase its rate of investment in Asia, particularly in wealth, the Greater Bay Area, South Asia, trade finance, and sustainable finance while scaling back investments in Europe and the U.S.

    Earlier this week, HSBC has internally appointed Daniel Chan, its current Hong Kong business and commercial banking head, to lead the bank’s new Greater Bay Area office, located in Guangdong.

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  • Standard Chartered Grows CCIB Unit in Singapore

    Standard Chartered Grows CCIB Unit in Singapore

    The bank has made a pair of Singapore-based senior appointments to its Corporate, Commercial and Institutional Banking (CCIB) segment as it increases its focuses on growing this business.

    Former regional head of client coverage, CCIB, ASEAN and South Asia, Chow Wan Thonh, has been named global head of the bank’s Global Industries Group, Standard Chartered announced in a statement on Thursday.

    Chow joined the bank in 2019, bringing with her over 25 years of experience in the banking industry, having held a number of senior leadership roles in international banks supporting corporate and institutional clients.

    At the same time, Heidi Toribio, who joined the bank in 2013, will replace Chow as Asia co-head of client coverage. She was most recently the bank’s global head of financial institutions. Toribio counts 25 years of banking experience, having previously worked at international banks in a variety of management positions.

    Standard Chartered said the pair have played a key role in accelerating the growth of its CCIB business in Singapore and globally.

    Paul Skelton, Global Head of Client Coverage in CCIB, said in the announcement that corporates’ financing needs are rapidly evolving, as businesses navigate uncertainties while seeking new growth opportunities

  • Sustainable Assets Surge at UBS

    Sustainable Assets Surge at UBS

    UBS maintains momentum in sustainable investments, registering strong asset growth across its asset and wealth management divisions as a result of both market performance and new client demand.

    In 2020, UBS’s global wealth arm saw assets in sustainable portfolios (those defined as 100 percent invested with the consideration of environmental, social and governance (ESG) factors) exceed $18 billion, $7 billion from inflows alongside even better performance than traditional equivalents, according to a statement.

    The asset management arm also posted strong growth with sustainability-focused assets doubling to $97 billion and ‘Climate Aware’ strategies reaching $15 billion.

    The bank has also successfully met its commitment to raise $5 billion for impact investments related to United Nations Sustainable Development Goals (SDG), beating the five-year timeline (2017-2021) in the second half of last year.

    Sustainability is no longer just a talking point, but also a catalyst for action said group CEO Ralph Hamers. Investors and companies should seek to get ahead of this transformation if they wish to navigate 21st-century risks and opportunities effectively.

    The bank highlighted Asia as a region of focus for sustainability as a theme not only within investment portfolios but across other areas.

    From our conversations with investors and business owners across Asia, we know that many more are looking to integrate ESG-related aspects in their investment portfolios, business plans and philanthropic ventures, said Desmond Kuek, divisional vice chairman and chair of the bank’s APAC sustainable finance network.

    The statement accompanied a white paper for the World Economic Forum’s Davos Agenda Meetings.

    It listed ten sustainable finance trends the bank identified including investor engagement, impact investing, electric transport, net-zero emissions, innovations in big oil, diversity, plant-based meat, climate stress testing, sustainable data and greater data transparency.

  • India Proposes Crypto Ban and E-Rupee Plans

    India Proposes Crypto Ban and E-Rupee Plans

    Indian authorities plan to propose a new law to ban private cryptocurrencies and implement a framework for an official central bank digital currency.

    India will seek «to prohibit all private cryptocurrencies in India», according to a legislative agenda published by the lower house’s website on Friday last wee, with exceptions for certain purposes such as the promotion of the underlying technology and its uses.

    In addition, lawmakers will look to «create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI).

    Not unlike other central banks, the RBI has been accelerating efforts to launch its own electronic money and tighten regulation against cryptocurrencies. It first issued an order in April 2018 to cut ties with all individuals or businesses dealing in digital currencies like Bitcoins within three months.

    But India’s Supreme Court subsequently overturned the ban by allowing banks to handle crypto transactions from exchanges and traders.

    The pushback reflects broader shifts in sentiments worldwide, particularly amongst banks that have been demonstrating increasing openness to cryptocurrencies.

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  • HSBC Private Banking Enters Onshore Thailand Market

    HSBC Private Banking Enters Onshore Thailand Market

    HSBC will build its second onshore private banking business in Southeast Asia with the establishment of a new unit in Thailand.

    HSBC Private Banking will enable its Thai clients to access international capital markets, according to a statement, while leveraging existing infrastructure for activities such as booking assets in Singapore.

    Saranya Arunsilp, a 25-year banking veteran, joined HSBC last year and will lead the onshore team as head of global private banking, Thailand. Arunsilp will be supported by a local team of relationship managers and investment counselors who will work locally with the Singapore teams.

    We welcome the progressive opening up of the private wealth investment corridor between Singapore and Thailand, which can serve as a pilot for other markets to ‘green-lane’ wealth flows to serve genuine cross-border investment needs, said HSBC’s Southeast Asia head of private banking Philip Kunz.

    According to APAC head of HSBC Private Banking Siew Meng Tan, connectivity to the broader ASEAN region is a major strategic focus for future growth in the region.

    Aside from the new presence in Thailand, the private bank has also placed emphasis on other ASEAN markets such as Singapore and Malaysia, for which it appointed new market heads in August last year. Separately, it has also introduced offshore Vietnam coverage to serve the private wealth needs of small and medium-sized enterprises, particularly for supply chain businesses.

    This connectivity is central to our growth in ASEAN which is key to delivering our ambition to become the No 1 wealth manager in Asia, Tan said.

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