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.

  • Dollar drops at banks

    Dollar drops at banks

    On Monday morning, the U.S. dollar dropped at banks but remained unchanged at unofficial exchange points.

    Vietcombank sold the dollar at VND23,740 Monday, down 0.02% from Sunday. Eximbank and Techcombank sold the greenback 0.04% lower at VND23,720, and VND23,745, respectively.

    The USD/VND exchange rate has increased by 0.04% since the beginning of the year. The State Bank of Vietnam (SBV)’s reference rate is at VND23,628, up 0.01%. The dollar remained stable at VND23,680 on the black market.

    On Monday, the dollar hovered near a five-week high against major peers on rising bets for prolonged Federal Reserve policy tightening ahead of a crucial consumer price report the following day.

    The dollar index – which measures the greenback against six counterparts including the yen, euro and sterling – added 0.068% to 103.65, keeping close to last Tuesday’s high of 103.96, the strongest level since January 6.

  • SeABank gets additional IFC funding for housing loans

    SeABank gets additional IFC funding for housing loans

    Vietnamese lender SeABank is getting a $100-million investment from IFC to provide lower and middle-income families with access to housing loans.

    The investment increases International Finance Corporation’s investment in the bank to nearly $400 million.

    SeABank Vice Chairwoman Le Thu Thuy was quoted in an an IFC press release on Monday as saying that while the current demand for housing from lower and middle-income families is considerably high, their access to finance remains limited,

    Through the new investment, SeABank expects to double the number of housing loans to lower and middle income families by 2026. In addition, the project is expected to create thousands of new jobs in construction and related sectors.

    With a rapid annual urbanization rate of 3%, half of Vietnamese population, some 50 million people, is expected to be living in urban areas by 2040, creating the need for an estimated 374,000 additional housing units every year, said IFC, a member of the World Bank Group.

  • Vontobel Sees Sharp Decline in Assets Under Management

    Vontobel Sees Sharp Decline in Assets Under Management

    Zurich-based Vontobel experienced overall money outflows last year which, along with unfavorable market conditions led to a sharp decline in its assets under management. Net Profit fell sharply.

    After a record level of assets under management (AuM) in 2021, Vontobel experienced a 16 percent decline in AuM last year as they dropped to 204.4 billion Swiss francs ($220.9) from 243.7 billion, according to results released Wednesday.

    Unfavorable market conditions mainly contributed to the decline, but there were negative outflows of new money. Net new money was down 5.2 billion last year, declining 2.1 percent on a yearly comparison, after netting 8.1 billion in 2021.

    Of the overall AuM decline, 36.9 billion francs was due to performance, with a further 3.4 billion decline from foreign exchange-related effects.

    Vontobel’s AuM decline was tempered by a positive 6.2 billion franc impact from the acquisition of Swiss Financial Advisors from UBS, according to the statement.

    The decline in its asset management unit was 7.4 percent as «clients stayed on sidelines rather than reinvesting or making new investments in various asset classes,» according to the statement. AuM in the unit stood at 107.2 billion francs at the end of the year.

    Wealth management performed better with AuM «stable» despite the market downturn and achieved a gross margin of 71 basis points. In contrast to net money outflows in asset management, the wealth management division attracted 5.4 billion of net new money. That left AuM at 92.6 billion last the end of last year compared with 95.8 billion at the end of 2021.

    Vontobel’s Group’s net profit fell 40 percent to 229.8 million Swiss francs as operating income fell 16 percent to 1.29 billion francs last year. At the same time, its return on equity was 11.2 percent, reflecting a decline of 7.6 basis points.

    After the strong performance in 2021, Vontobel increased its dividend to three Swiss francs per share from 2.25 the year before. For 2022 it will recommend the same three-franc dividend.

  • Interbank rate climbs up to 13%

    Interbank rate climbs up to 13%

    Nine-month interbank rate has climbed from 9.61% to 13% annually as of February 2, according to the central bank’s latest data.

    On February 2 banks borrowed VND225.7 trillion ($9.6 billion) from each other overnight at the rate of 6.26% per year, up 1.7% points from the end of last year.

    Other terms such as two weeks, one week, six months and nine months have seen rates increased from before the Lunar New Year holidays, which lasted from January 20-26.

    Interbank rates are rising even though the State Bank of Vietnam had pumped liquidity in five trading sessions after Tet holiday with a total supply of nearly VND70.8 trillion.

    Analysts have said that interbank rate will unlikely fall soon as globally central banks will likely continue to raise their rates.

    Deposit rates are forecast to peak in the middle of this year before cooling down.

     

  • Stock market plunges

    Stock market plunges

    Vietnam’s benchmark VN-Index dropped 2.15% to 1,065.84 points Tuesday.

    The index closed 23.45 points lower after gaining 12.14 points on Monday.

    Trading on the Ho Chi Minh Stock Exchange (HoSE) increased by 26.65% to VND12.17 trillion ($515.35 million).

    The VN-30 basket, comprising the 30 largest capped stocks, saw 24 tickers dropped.

    PDR of Phat Dat Real Estate Development hit the floor with a 6.9% fall.

    HPG of steelmaker Hoa Phat Group fell 6.6% and NVL of property developer Novaland Group lost 5.2%.

    GVR of Vietnam Rubber Group went down 5.1% and SSI of leading brokerage SSI Securities Corporation declined by 4.7%.

    Five blue chips bucked the trend.

    TPB of private TPBank went up 1.2% and PLX of fuel distributor Petrolimex gained 0.5%.

    Foreign investors were net buyers to the tune of VND37.26 billion, mainly buying STB of Ho Chi Minh City-based lender Sacombank and CTG of state-owned lender VietinBank.

    The HNX-Index at the Hanoi Stock Exchange, where mid and small caps list, was down 2.08% while the UPCoM-Index at the Unlisted Public Companies Market was down by 0.55%.

  • Gold prices increase

    Gold prices increase

    SJC gold price rose 0.15% to VND67.3 million ($2,859.27) per tael Tuesday morning.

    Gold ring price went up 0.18% to VND54.9 million per tael. A tael equals 37.5 grams or 1.2 ounces.

    Globally gold prices gained on Tuesday as the dollar pulled back slightly, with traders awaiting U.S. Federal Reserve Chair Jerome Powell’s speech later in the day for hints about future rate hikes after last week’s strong economic data.

    Spot gold was 0.4% higher at $1,873.96 per ounce, as of 0316 GMT, after hitting its lowest since Jan. 6 in the previous session.

    “Despite another round of upmove in the dollar and yields, the downside in gold prices is more limited, which points to some attempts to stabilise after recent sell-off,” said Yeap Jun Rong, a market analyst at IG.

    The dollar index was down 0.2% after touching its highest level in nearly a month on Monday. A weaker greenback makes dollar-priced gold more attractive for buyers holding other currencies.

  • Vietcombank names new general director

    Vietcombank names new general director

    Vietcombank, Vietnam’s largest state-owned lender, named its current deputy general director Nguyen Thanh Tung as its new general director on Monday.

    Tung, 49, was the same day elected a member of Vietcombank’s board of management for the 2018-2023 term.

    He holds bachelor’s degrees in economics of international trade and English education, as well as a master’s degree in economics of Paris Dauphine University.

    His career at Vietcombank began 26 years ago in 1997. He became the office head of Vietcombank in 2008, then the deputy director of the bank’s operation center in 2013.

    He became the deputy general director of the sales division in April 2019, before becoming deputy general director of the board of management in August 2021.

  • UBS To Increase Dividend and Buy Back Shares

    UBS To Increase Dividend and Buy Back Shares

    Switzerland’s largest bank managed to improve on its results from last year. The bank will increase its dividend this year and buy back more shares.

    For the year, UBS managed to improve its net profit attributable to shareholders to $7.630 billion from $7.457 billion in 2021, as operating expenses decreased from a year ago, according to figures released Tuesday.

    Operating expenses fell to $24.930 billion from $26.058 billion in 2021, resulting in an increased operating profit of $9.604 billion.

    The fourth quarter results came in better than expected, with net profit attributable to shareholders of $1.653 billion rising from $1.348 billion in the fourth quarter of 2021.

    Total revenues in the fourth quarter were $8.089 billion while operating expenses fell to $6.085 billion, down 13 percent from a year ago. UBS said that the fourth quarter of last year included $740 million in litigation provisions for a cross-border legal case with France.

    Excluding the provisions, operating expenses would have decreased by three percent and pre-tax profit would have declined 22 percent, according to UBS.

    The Global Wealth Management (GWM) unit booked a pre-tax profit of $1.058 billion in the fourth quarter, which was marginally better than expected. Compared to the year-ago result of $563 million, it marked an 88 percent increase. For 2022, the net profit for the unit fell to $4.601 billion, a decline of five percent.

    GWM attracted $23.3 billion in new fee-generating assets for the quarter, bringing the total new money for the year to $60.1 billion, according to UBS.

    CEO Ralph Hamers said, «we could achieve this in a year marked by difficult macroeconomic conditions, persistent inflation, rapid monetary tightening, the war between Russia and Ukraine, the impact of the Corona pandemic in China, and other geopolitical tensions.»

    The Asset Management division reported a pre-tax profit of $124 million for the fourth quarter a decline of 63 percent.

    Hamers also said that UBS is starting 2023 from a position of strength despite uncertain macroeconomic conditions.

    After buying back $5.6 billion of shares last year, Hamers said UBS plans to buy back more than $5 billion this year as well. Furthermore, the bank will continue to pursue a progressive dividend payment policy. For 2023, UBS intends to propose a dividend of $0.55 – 10 percent higher than a year ago.

    UBS will continue to pursue growth opportunities in the United States, Hamers said. In the Americas region, the GWM unit attracted $17 billion in fee-generating money and closed the quarter with strong advisor recruiting efforts.

    UBS said that it continues to see «positive momentum» in private markets in the region, attracting $10 billion of new commitments. Its separately managed accounts (SMA) product contributed $21 billion of new money in the Americas.

  • UBS To Increase Dividend and Repurchase More Shares

    UBS To Increase Dividend and Repurchase More Shares

    Switzerland’s largest bank posted a better-than-expected profit in the fourth quarter. The bank will also increase its dividend this year and buy back more shares.

    UBS posted a net profit attributable to shareholders in the fourth quarter of $1.653 billion, and $7.630 billion for the year as a whole, according to figures released Tuesday. The fourth quarter result is better than expected, and the annual result improves on the bank’s $7.457 billion net profit in 2021.

    Total revenues in the fourth quarter were $8.089 billion while operating expenses fell to $6.085 billion, down 13 percent from a year ago. UBS said that the fourth quarter of last year included $740 million in litigation provisions for a cross-border legal case with France.

    Excluding the provisions, operating expenses would have decreased by three percent and pre-tax profit would have declined 22 percent, according to UBS.

    The Global Wealth Management (GWM) unit booked a pre-tax profit of $1.058 billion in the fourth quarter, which was marginally better than expected. Compared to the year-ago result of $563 million, it marked an 88 percent increase. For 2022, the net profit for the unit fell to $4.601 billion, a decline of five percent.

    GWM attracted $23.3 billion in new fee-generating assets for the quarter, bringing the total new money for the year to $60.1 billion, according to UBS.

    CEO Ralph Hamers said, «we could achieve this in a year marked by difficult macroeconomic conditions, persistent inflation, rapid monetary tightening, the war between Russia and Ukraine, the impact of the Corona pandemic in China, and other geopolitical tensions.»

    The Asset Management division reported a pre-tax profit of $124 million for the fourth quarter a decline of 63 percent.

    Hamers also said that UBS is starting 2023 from a position of strength despite uncertain macroeconomic conditions.

    After buying back $5.6 billion of shares last year, Hamers said UBS plans to buy back more than $5 billion this year as well. Furthermore, the bank will continue to pursue a progressive dividend payment policy. For 2023, UBS intends to propose a dividend of $0.55.

    UBS will continue to pursue growth opportunities in the United States, Hamers said. In the Americas region, the GWM unit attracted $17 billion in fee-generating money and closed the quarter with strong advisor recruiting efforts.

    UBS said that it continues to see «positive momentum» in private markets in the region, attracting $10 billion of new commitments. Its separately managed accounts (SMA) product contributed $21 billion of new money in the Americas.

  • Bitcoin Suisse Cuts Staff and Revamps Management

    Bitcoin Suisse Cuts Staff and Revamps Management

    A refocus on the core business results in a management reshuffling at the crypto finance service provider. There are also two departures to report.

    Bitcoin Suisse is changing its management structure in three areas. Sven Ramspott takes over as chief financial officer (CFO), adding to his current risk officer responsibilities. Pierre-Alain Krohn takes over as head of compliance, and Michael Gauckler, currently head of innovation, will be appointed responsible for products.

    According to a statement Wednesday, the appointments are related to the reorganization of Switzerland’s largest crypto broker, which accompanies a reduction in staff.

    The austerity measure is justified by the stock market slump hitting traditional financial and crypto markets simultaneously and lasting longer than expected. Still, the layoffs are well below the average currently seen in the crypto industry.

    Ramspott, with over 25 years of experience in leadership roles in the financial industry, joined Bitcoin Suisse in September 2021. In his previous role as chief risk officer and head of risk & compliance, he developed frameworks for compliance and, in particular, anti-money. In doing so, he laid a key foundation for the strategic direction of Bitcoin Suisse, according to the statement.

    Krohn spent five years in a leadership role at JP Morgan in Geneva, where he was responsible for anti-money laundering, governance, and controls, before joining Bitcoin Suisse.

    Gauckler joined Bitcoin Suisse as head of product development & innovation in September 2020. He has 20 years of experience, including as co-founder of Evolute Group, and at Credit Suisse and PwC.

    With a refocusing on core markets, there will also be two departures. Mauro Casellini, CEO of Bitcoin Suisse Liechtenstein, is taking on a new challenge. The Liechtenstein, Denmark, and Bratislava locations now fall under the aegis of Chief Operating Officer Peter Camenzind, according to reports.

    Current CFO Philipp Vonmoos hands over his responsibility to Ramspott at the beginning of February. Vonmoos joined the company in 2017, first leading the custody business and then the finance division. Most recently, he supported the introduction of the new crypto-compatible core banking system.

    According to Chairman Luzius Meisser, Bitcoin Suisse intends to continue its growth in the institutional sector despite the significant market corrections of the past year. Bitcoin courses online.

    What is Bitcoin?

  • Swiss Banks See Opportunity From Google and IT Layoffs

    Swiss Banks See Opportunity From Google and IT Layoffs

    Tech giants such as Google, Meta, and Microsoft are cutting tens of thousands of jobs worldwide. Swiss financial service providers, desperate for IT talent, are now positioning themselves.

    We are seeing candidates with careers at the big tech groups looking for new employment,» observes Stephan Surber.

    This should greatly boost the active job market for these sought-after forces, the Switzerland head and senior partner of executive recruiter Page Executive said.

    The Swiss financial industry waited a long time for this to happen. Until now, it has been practically impossible to poach IT talent from Google, which has around 5,000 employees in Switzerland. Banks were not only outdone in terms of coolness but also in terms of wages.

    But now the winds are shifting. American companies Amazon, Microsoft, and Google parent company Alphabet are planning to lay off 40,000 employees worldwide in the next few months. The Facebook group Meta is said to be cutting 11,000 jobs.

    The technology giants are not only correcting the exuberant job growth during the Corona crisis but responding to business model headwinds. Rapid growth has become more difficult in the face of a weakening economy. Investors are not as flush with cash as they once were since the central banks ended loose monetary policies.

    As the financial portal Inside Paradeplatz reported, the wave of layoffs is hitting one of the country’s most sought-after employers: Google Switzerland. According to internal e-mails, management is preparing the workforce for possible job cuts. However, they said this could only take effect in a few months.

    Swiss Banking is keeping its ear to the ground, according to Reto Jauch, a managing partner at Zurich-based executive search firm Schulthess Zimmermann & Jauch.

    Downsizing at tech firms is already an issue at many Swiss banks, he says. Boards and managements are assuming they can attract talent.

    This comes after financial institutions struggled to attract up-and-coming technology talent, like most Swiss industries desperate for IT expertise. A survey conducted by the industry association Arbeitgeber Banken in 2021 showed IT is the only area in which the institutions still plan to create jobs in the next few years, amidst a declining employment trend for the profession as a whole.

    Even if the job cuts in tech offer a golden opportunity to poach experts, this will not be a cakewalk for the banks. It is by no means enough to place advertisements. «A clear positioning is needed; these forces demand purpose and a destination from their employer,» says headhunter Jauch.

    The search for purpose in one’s work, is often laughed off as a fad by veteran bank managers. UBS CEO Ralph Hamers, a fan of digitization who coined the term in Swiss banking, is seen by more than a few as an irritant because of it.

    But the country’s largest bank is not letting anything go to waste in the battle for IT talent. Not only does UBS advertise a culture of engineers it also beckons with continuing education for IT specialists and internal awards. Borrowing from tech industry practices and depending on their level of training, employees can call themselves Certified Engineer, Distinguished Engineer or even Technology Fellow.

    It remains to be seen whether UBS will be able to score points with these titles given the cutbacks at Google & Co. For Oliver Berger, partner at search boutique Witena in Zurich, this means that at most one battle has been won, but not the talent war.

    This has just started and will continue for the next ten to 15 years, says the executive recruiter. What we are seeing at the moment are just the precursors, he . That’s because he said Switzerland has too few skilled workers, trains too few, and lets too few cross the border.

    Accordingly, the layoffs at tech companies are also likely to be short-lived before the market picks up again, he warns. We’re kind of experiencing a bull market rally in a bear market here.

  • Vietnam cryptocurrency miners install more rigs as Bitcoin climbs

    Vietnam cryptocurrency miners install more rigs as Bitcoin climbs

    Cryptocurrency prices have surged this month, prompting Vietnamese to install mining rigs although it’s not yet a lucrative trade.

    The price of Bitcoin increased from $18,000 to $21,000 on Jan. 14 and has moved sideways since then. The prices of many other cryptocurrencies, including ETC, Aleo, Kat, and ERG have also risen this month.

    Thien Binh, a seller of cryptocurrency mining rigs in Vietnam, said that people had bought many second-hand Asic rigs to mine Doge over the past week.

    On average, an old Asic Baikal G28 model costs VND13 million ($550.8), one-third the cost of a new machine. If the current Doge price of $0.08 remains unchanged for months, miners will break even after 9-10 months.

    A veteran miner said: “We are buying more rigs because mining is still easy now. We will eventually make profits if the Bitcoin price maintains its current level ($21,000).”

    Binh Minh, who owns many rigs in the southern province of Dong Nai, said some people have heavily invested in installing big networks of rigs to mine ETC and Bitcoin.

    Some miners are depositing their rigs at solar farms to cut down electricity costs and increase profits. Most miners use grid electricity.

    According to Hoang Quan, the administrator of a cryptocurrency mining community with nearly 70,000 members, mining is not lucrative at the moment, thanks to the current price of electricity and cryptocurrencies. But he said the recent increase in cryptocurrency prices is still good news ahead of the Tet holiday (Lunar New Year), which falls in late January.

    Some experienced miners said that although the Bitcoin price is rising, the cryptocurrency market is inherently unpredictable, and miners may face more difficulties in the coming time.

    Vietnam had the second highest rate of cryptocurrency use among 74 economies surveyed in 2021, according to market data provider Statista.

    However, cryptocurrency has not been recognized as legitimate currency in Vietnam. Its central bank has warned that owning, trading and using cryptocurrency is risky and comes with no legal protection.

  • UBS Set to Poach Staff for M&A

    UBS Set to Poach Staff for M&A

    During this week’s Davos conference CEO Ralph Hamers, said UBS was looking to hire. Now we know which kind of bankers it is going after.

    UBS is looking to bolster its M&A staff, citing people familiar with the plans.

    The move contrasts with recent decisions by banks, including Morgan Stanley and Goldman Sachs, to cut staff and reduce investment banking capabilities after last year’s dealmaking slump.

    UBS focuses on experienced managing directors at target boutique advisory businesses, which it aims to lure with attractive compensation.

    Since the financial crisis Boutique M&A advisory groups such as PJT Partners, Houlihan Lokey, Evercore, Lazard, Greenhill and Robey Warshaw — have been winning market share from traditional bulge bracket investment banks, it added.

  • FTX Debacle Promts Revolut to Delay its Cryptocurrency Launch

    FTX Debacle Promts Revolut to Delay its Cryptocurrency Launch

    Revolut is delaying its entry into cryptocurrencies, postponing the launch of its RevCoin in the wake of the collapse of the FTX exchange.

    Switzerland’s most popular neobank, Revolut, is holding back on its planned entry into minting its cryptocurrency.

    We are scoping the market conditions and assessing the best time to launch RevCoin in the coming months, a spokesman for the UK’s most valuable fintech told the news outlet. Revolut initially planned to launch RevCoin towards the end of last year, but management opted for a delay as FTX imploded in November.

    The project was confirmed in an interview CEO Nik Storonsky conducted with The Block in May of last year. RevCoin will run on Ethereum and work similarly to airline mileage incentive programs, with users earning rewards on how frequently they use the service.

    Storonsky is an ex-Credit Suisse derivatives trader who founded Revolut in 2014. He is worth $7.1 billion, according to Forbes.

    In Switzerland, the neobanks services are available via Credit Suisse.

  • Power Struggle Brewing at UBS

    Power Struggle Brewing at UBS

    A recent UBS leadership appointment at the very top of the bank continues to provoke internal resentment.

    There is likely a tug-of-war going on at Switzerland’s largest bank. The ostensible trigger is the current group chief financial officer Sarah Youngwood. She has been under criticism for a while now and questions are increasingly circulating about her competence.

    That fact weighs even more heavily now after it has become common knowledge inside UBS that her application had been rejected by the board of directors several times. When asked, a spokesperson for the bank said: That claim is entirely false.

    According to internal sources, it appears that the US-French dual citizen Youngwood got the top job in the finance department because of the backing of CEO Ralph Hamers.

    Apparently, he managed to push through his external candidate given the strength of his position to the dissatisfaction of a number of board members and even some top executives. A UBS spokesperson refuted the claims and indicated: «These rumors have no basis in fact.

    There continues to be resentment at the highest levels of UBS to this day given Youngwood’s appointment in May 2022. At the same time, Hamers finds himself in an increasingly precarious position, even if UBS officially continues to deny this. From the point of view of certain top executives, doubts have arisen about Hamers related to all this.