Tag: Banking

  • Citi Appoints Senior China Corporate Banker

    Citi Appoints Senior China Corporate Banker

    Citi appoints a senior corporate banker for China, amid growing expansion in the mainland market.

    Luke Lu has been named head of corporates coverage for China, reporting to Citibank China CEO Christine Lam and APAC head of corporate banking Kaleem Rizvi.

    A spokesperson for the bank confirmed the new appointment.

    Lu has 20 years of banking experience and was most recently head of Citi Commercial Bank in China after rejoining the American lender in 2019. Previously, he was with MUFG Bank China where he was the head of its global corporate bank for two years.

    Lu’s appointment occurs in the midst of increasing growth at Citi’s corporate banking unit in China.

    According to the note, Citi is serving an increasing number of companies in the mainland market and last year alone, it raised over $30 billion for Chinese clients in global capital markets across debt and equity.

  • UOB CEO Takes Pay Cut

    UOB CEO Takes Pay Cut

    His compensation in 2020 included an unchanged base salary of S$1.2 million, S$8.568 million bonuses, and S$37,000 in-kind benefits.

    Wee Ee Cheong, UOB’s deputy chairman, and CEO, received a total of S$9.805 million in 2020, down 8.8 percent from S$10.75 million in 2019, according to the bank’s annual report, published Wednesday.

    Some 60 percent of the variable pay will be deferred and vest over three years. Of the deferred portion, 40 percent will be in cash and the remaining 60 percent will be on the form of share-linked units, the report said.

    The bank posted earnings of S$2.92 billion ($2.21 billion) for the full year 2020 – 33 percent lower than 2019’s record earnings.

    Earlier this month DBS also said it would be cutting the payout of chief executive Piyush Gupta by 24 percent to S$9.18 million ($6.82 million) in 2020.

  • Vietnam stock market reaches new historic peak

    Vietnam stock market reaches new historic peak

    Vietnam’s benchmark VN-Index surged 2.07 percent to a new historic peak of 1,216.10 points Thursday, driven by Vingroup and Vietcombank tickers.

    The index rose throughout the day after breaking the 2018 peak of 1,204 points in the morning. It continued to surge in the afternoon and ended with a near 25-point gain.

    This is its biggest daily gain in six weeks. The index has ended in the green four sessions in a row.

    Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, surged 16 percent to VND16.94 trillion ($735 million). The bourse saw 334 stocks gain and 106 lose.

    VIC of the biggest conglomerate Vingroup contributed most to the VN-Index gain with 4.6 points. The ticker rose 4.3 percent, its seventh gaining session in a row, up by a total 15 percent since March 23.

    VCB of state-owned lender Vietcombank pulled the index up by 2.1 points with volume tripling from Wednesday to rise 2.2 percent.

    Other major contributors included HPG of steelmaker Hoa Phat Group, VHM of real estate giant Vinhomes and VNM of dairy giant Vinamilk, together pushing the index up by 4.4 points.

    The strongest blue-chip gainer was SSI of leading brokerage SSI Securities Corporation with a ceiling increase of 6.9 percent, followed by TCH of real estate company Hoang Huy Investment Financial Services JSC with a 5.9 percent gain.

    Foreign investors broke off four consecutive net selling sessions with a net buying value of VND45 billion. They focused on VIC, HPG and STB of Ho Chi Minh City-based lender Sacombank, which surged 17 percent in the last six sessions.

    The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, surged 2 percent, while the UPCoM-Index for the Unlisted Public Companies Market added 0.37 percent.

  • DBS Outlines China Strategy

    DBS Outlines China Strategy

    DBS will seek to further its expansion in mainland China with a focus on three areas: its securities joint venture, consumer finance and Greater Bay Area opportunities. DBS chief executive Piyush Gupta unveiled details about its China plan during the latest annual general meeting held virtually yesterday.

    We are convinced that China’s opening-up in the capital account is going to present tremendous opportunities, Gupta told shareholders.

    We’re already seeing some benefits of that, as institutional investors from China come out and international investors go into China. So that’s hopefully a big area of growth for us. According to Gupta, the bank’s new securities joint venture in China, announced last September, is expected to go to market in the coming few weeks.

    On consumer finance, the bank will also launch a wholly-owned business in China, in addition to its existing 15 percent ownership in a consumer finance joint venture with Postal Savings Bank of China.

    And on Greater bay Area, Gupta said DBS’ Hong Kong presence is expected to support deeper integration into the area with «good momentum» observed last year, especially from its supply chain solutions.

    Gupta also commented on DBS’ takeover of Lakshmi Vilas Bank (LVB) last November and stressed that the deal was not a forced marriage.

    People have asked whether this was a forced marriage or if we were forced to do this deal,» he said, noting that the bank long had an interest in organic and inorganic expansion. This the last thing from a forced marriage.

    DBS highlighted an opportunity through the LVB takeover to accelerated its digital push in South India with an eye on two segments with huge opportunities: retail and small-to-medium-sized enterprise clients.

    Post-acquisition, the bank has added 125,000 corporate and 2 million retail customers with the latter figure boosting its retail share of deposits from 23 percent to 48 percent. Gupta also said that he expects no more incremental cost of credit from the LVB portfolio and expects the merged entity to become profitable in the next 12 to 24 months.

  • Archegos Collapse Hits Japan’s Largest Bank

    Archegos Collapse Hits Japan’s Largest Bank

    More losses from the downfall of Bill Hwang’s Archegos Capital Management have been unveiled, this time from Japan’s largest bank. Mitsubishi UFJ Group’s (MUFG) securities arm faces losses of up to $300 million related to an unnamed U.S. client, according to a statement, through its European subsidiary.

    Losses could change depending on market prices and the unwinding of the transactions, though it isn’t expected to have a material impact on MUFG’s business capability or financial soundness.

    MUFG is taking all necessary steps to manage the risk and any effect on earnings will be reflected in the fiscal year starting April 1.

    The statement is widely believed to refer to the collapse of Bill Hwang’s family office Archegos and the latest hit to MUFG brings total global bank losses to as high as $6.3 billion.

    Nomura recently warned of around $2 billion in losses reportedly also believed to be linked to Archegos. Credit Suisse was also significantly impacted with estimated losses of $1 billion to $4 billion.

    Other banks involved, such as Goldman Sachs, Morgan Stanley and Deutsche Bank, have claimed to see little to no impact. Wells Fargo was the latest to unveil its prime brokerage relationship with Archego but said it did not experience any related losses as the bank was well collateralized at the time and no longer has any exposure.

  • PGBank pulls plug on merger plans after 2nd debacle

    PGBank pulls plug on merger plans after 2nd debacle

    After calling off its merger with HDBank, lender PGBank does not plan to look for other partners and will remain independent, its chairman, Nguyen Quang Dinh, has said.

    “In the last six years, PGBank planned to merge with VietinBank and HDBank, but both deals were unsuccessful, which has been affecting the bank’s business.”

    “So the board of directors now aims to develop the bank as an independent entity,” he said at the lender’s annual general meeting on March 30.

    Shareholders approved rescindment of the merger plan, which never received approval from the State Bank of Vietnam.

    PGBank’s proposal to merge with state-owned VietinBank collapsed in 2014 after two years of negotiations.

    The bank targets a 46 percent rise in pre-tax profits this year to VND310 billion ($13.4 million).

    First-quarter profit was up 5 percent year-on-year to VND80 billion, according to its CEO, Nguyen Phi Hung.

  • AXA IM Nabs Ex-Picet Asset Management Exec

    AXA IM Nabs Ex-Picet Asset Management Exec

    AXA Investment Managers hires a former executive from Pictet Asset Management as its Asia head of institutional sales. AXA IM has hired Carmen Lai as its head of institutional sales for Asia, according to a statement, reporting to APAC head of client group core Terence Lam in the Hong Kong-based role.

    Lai will oversee the development of AXA IM’s institutional business and client relationships in Asia, tasked initially to build a dedicated sales team for the North and Southeast Asia markets.

    Lai is a veteran in the asset management industry in the region, joining from Pictet Asset Management where she spent a decade, last as its Asia ex-Japan head of institutional sales. Previously, she also worked for Blackrock.

    In addition, AXA IM also appointed Kyle Wang as Asia head of sovereign and supranational Entities (SSE). Wang will report to Lam and work closely with Lai.

    Institutional clients remain a key focus for AXA IM’s Asian growth strategy, where we continue to see robust momentum, said Matt Lovatt, global head of client croup core and member of AXA IM’s management board.

    The enhanced team will reinforce the business coverage of AXA IM Core across the region, as we uphold our pledge to uncover global investment opportunities and offer active, long-term, and responsible investment solutions for our valued clients.

  • UBS Singed by Archegos

    UBS Singed by Archegos

    Switzerland’s largest bank didn’t escape the Archegos wreckage unscathed. UBS’ singing is however far from the burn that rival Credit Suisse is nursing. Zurich-based UBS, the sixth-largest prime broker according to data provider Preqin, also catered to troubled hedge fund Archegos. Yet the Swiss bank was mum as its crosstown rival Credit Suisse warned of a major hit against its first-quarter results.

    The damage unleashed at Credit Suisse by the hedge fund now reportedly tallies at as much as $5 billion. How did UBS, which ranks directly behind Credit Suisse in catering to hedge funds, escape a similar fate?

    The answer is that the Swiss wealth management giant didn’t entirely, according to a person familiar with the matter. UBS, silent this week as Credit Suisse issued its profit warning, is reportedly still unwinding a series of complicated instruments when it called margin on the hedge fund.

    Though estimates vary, the bank believes it will be left nursing losses of not more than low-three-digit millions from business with Archegos, the person said. The damage isn’t such that it will neither torpedo UBS’ quarterly profits nor trigger a warning, the person noted. A spokeswoman for UBS declined to comment.

    Analysts expect a quarterly profit of $1.44 billion from UBS when it reports on April 27, according to a consensus compiled by the bank itself. Executives at both banks scrambled late last week to evaluate the Archegos debris, with Swiss regulator Finma intervening early on.

    UBS’ top investment banker Rob Karoskfy, risk chief Christian Bluhm, and finance overseer Kirt Gardner were among the top executives involves. The Swiss bank apparently feels confident enough it can extricate itself from the wreckage without wiping out the quarterly progress.

    This puts UBS squarely in the camp of Goldman Sachs and Morgan Stanley, which were both able to offload their Archegos holdings quickly. By contrast, Credit Suisse and Japan’s Nomura, which on Monday flagged a $2 billion hit, weren’t as fast.

    The episode illustrates that UBS’ risk limits held in this case, while raising manifold questions about Credit Suisse’s limits. The latter’s shares slumped more than 16 percent since the bank disclosed the Archegos hit on Monday; investors sent UBS’ shares just three percent lower over the same period.

  • CIMB Restructuring Sees Lay-Offs in Singapore

    CIMB Restructuring Sees Lay-Offs in Singapore

    The Malaysian lender is revising its strategy to emphasise sustainable growth, in line with the group’s vision to be a «leading focused Asean bank.»

    CIMB Singapore is laying off staff and will close its Orchard Road branch as part of a restructuring exercise, which will see it optimise its functional set-up and leverage its group strengths through regionalization.

    These will make us more resilient, more productive and better positioned for growth going forward,» CIMB Singapore chief executive Victor Lee said in an internal memo.

    CIMB Singapore will be positioned as an Asean banking hub for the group, with a focus on wealth management, SME (small and medium-sized enterprises) banking, regional corporates and treasury and markets. According to the report, the bank had 1,200 staff in Singapore. Only its Raffles Place branch will remain following the exercise.

    Singapore is a core and important market to the CIMB Group, and we will continue to invest in our key growth areas, CIMB Singapore said in a statement.

    The bank let go of three of its business heads in Singapore in November 2020, following a review of its operations that cited the poor performance brought about by the pandemic.

  • DBS Offloads Hong Kong Office Space

    DBS Offloads Hong Kong Office Space

    DBS is reportedly the latest to join the wave of global banks and multinationals that are cutting down office occupancy in Hong Kong.

    DBS will surrender a quarter of the eight floors it occupies in one of its Hoang Kong offices – One Island East Tower – according to a report citing unnamed sources.

    The office is located outside of Hong Kong’s central business district in Quarry Bay.

    DBS joins other global banks, like Standard Chartered and BNP Paribas, in shedding Hong Kong office stock.

    In fact, multinationals accounted for 75 percent of surrendered office space in the city last year, according to Cushman & Wakefield, amid the growing adoption of flexible work arrangements.

    In November last year, DBS said it would allow its employees to work remotely for as much as 40 percent of the time due to the pandemic.

  • HSBC Reopens Hong Kong Headquarters

    HSBC Reopens Hong Kong Headquarters

    HSBC has reopened its main Hong Kong office but is only advising critical staff to come in for work, according to an internal memo.

    Precautionary measures – such as wearing masks, pre-entry temperature screening, hand sanitizers, spaced queuing and portable acrylic screens at open banking counters – will continue to be in place, according to a statement from the bank, adding that it conducted deep cleaning and disinfection last week.

    The bank closed the office last week following a recent outbreak in a local gym popularly frequented by expatriates. Visitors who stayed within the building for over two hours between March 3 and 16 were required to undergo coronavirus tests.

    The gym-linked cluster has resulted in nearly 150 cases and has prompted other financial firms, including Goldman Sachs and UBS, to encourage more work-from-home measures.

  • UBS Loses China Private Banker

    UBS Loses China Private Banker

    A private banker covering the China market has left UBS Global Wealth Management.

    Payling Lee, market team head for China international, has left UBS Global Wealth Management.

    When contacted, a spokesperson for the bank declined to comment.

    Lee rejoined UBS in 2017 after serving a four-year stint between 2003 and 2007 in its investment banking arm where she was focused on the fixed income and derivative sales business in Taiwan. Previously, she also spent a decade with Barclays.

  • Stocks, cryptocurrencies the new darlings as other assets remain in deep slump

    Stocks, cryptocurrencies the new darlings as other assets remain in deep slump

    With most traditional asset classes taking a beating from the economic downturn caused by Covid-19, investors are flocking to the stock and cryptocurrency markets.

    At lunchtime on a regular working day, a smartly dressed young woman was sitting in a corner in a downtown HCMC cafeteria, staring at a laptop in front of her. She was going back and forth between charts and messaging apps to check what her broker was sending.

    She was a newbie on the stock market, having begun just two weeks earlier.

    Thanh Dang, 26, a full-time administrative assistant, explained her decision: “These days no one in my office does any work except text or talk to each other about stocks, forex and cryptocurrencies.

    “Most investors I know follow others’ advice and learn things on the fly. Some of them initially made profits and became even keener. So I decided to give it a try and started modestly.”

    Doan Duong, 37, a Hanoi architect, quit the forex derivatives market after making a huge loss but shows no signs of being discouraged. When the stock market surged in 2020 and everyone seemed to make a lot of profits, he decided to jump in.

    When talking about a 20 percent profit he made in four months, he smiles confidently and asks rhetorically, “If you want to get rich then you need to take risks, right?”

    Doan and Thanh are just two of the millions of people who have begun to trade stocks and cryptocurrencies in the past few months.

    According to the Vietnam Securities Depository (VSD), they opened 393,659 securities trading accounts last year, a 20-year high in a market that is less than 21 years old.

    In February, they opened another 57,000 accounts, tripling that of the same period last year.

    The vast majority of domestic accounts, 2.73 million, belongs to individual investors.

    In the last six or seven months, retail investors have been piling into the market, helping it shrug off the effects of a sell-off by foreign investors. In fact, the Vietnamese stock market was one of the five biggest gainers in the world, according to StockQ.org.

    In the first quarter of this year retail investors kept the market up while trading value was consistently at VND18-19 trillion ($778.12-821.3 million) per session.

    German data company Statista said following a recent survey of 1,000-4,000 respondents each in 74 countries that Vietnam ranks second globally in terms of ownership of Bitcoin and other cryptocurrencies.

    Nhan Trong Nguyen, a financial consultant, skims through hundreds of messages daily from stock traders, brokers and cryptocurrency sellers, almost all asking him to represent consultancies or trading platforms for cryptocurrencies, derivatives and binary options.

    His blog on finance and banking has more than 50,000 followers.

    Nhan says: “If you look closely, Vietnamese are consistently in the top three list of most frequent traders at global BitCoin exchanges such as Poloniex and Bittrex.”

    In recent conversations with his followers he learned that Vietnamese are frantically switching from Bitcoin to other newer cryptocurrencies because it has become increasingly challenging to mine.

    PI is the most popular of the alternatives, supposedly mineable on smartphones.

    There are hundreds of groups calling on people on social media and online forums to join Pi mining networks.

    Dominic Scriven, chairman of HCMC asset management company Dragon Capital, explains: “This is a logical choice to cope with the changes in monetary policy worldwide and in Vietnam to protect their money.”

    Since the onset of Covid-19 in early 2020, the State Bank of Vietnam has cut its policy rates four times to keep the economy afloat, driving banks’ deposit interest rates to all-time lows in February 2021 before they recovered slightly this month.

    The real estate and gold markets too are stagnant and are also beset with difficulties.

    A note by the HCM City Real Estate Association said the number of property transactions plummeted between March and August 2020 before making a marginal recovery since September.

    All this meant that since the start of the pandemic only a tiny portion of investments have been flowing into traditional asset classes as investors sought profitable alternatives like stocks and cryptocurrencies.

    Many stocks gained sharply, making newcomers even more impatient and afraid of missing out, further increasing the number of accounts and causing a cycle in the market.

    In the beginning Vietnamese used the likes of Bitcoin, Ethereum, Litecoin, and Ripple to receive money from abroad since it meant no more bank hassles and exorbitant fees. But it is no longer the main reason for investing in them.

    Lawyer Truong Thanh Duc says: “The State Bank of Vietnam has warned that owning, trading and using cryptocurrencies are risky and not protected by the law, but that does not seem to deter investors.”

    A large number of people are investing now in cryptocurrencies because they want to get rich fast despite a sluggish economy.

    This is also true of stock investors, many of whom seem to believe they can somehow predict market movements and make big profits from short-term trading.

    Though it might be too early to hark back to the stock market bubble of 2007-08 the relentless rise in the market is definitely cause for wariness, according to some economists.

    “It is never a good idea to try to guess the market’s movements, and investors should have a long-term view instead,” Nhan warns.

    Cryptocurrencies are not protected by law, and so all trading in them need to be done with great caution and, most preferable, expertise.

    Decisions driven by rumors and greed might see inexperienced investors burn their fingers.

    The enthusiasm retail investors have had for stocks and cryptocurrencies since 2020 continues to draw in more newbies.

    But one piece of good news for those who fear they have missed out on the action is the prediction by Finland’s PYN Elite Fund that the market will continue to grow, with the VN-Index possibly reaching 1,800 points.

    Nevertheless, new entrants need to move their goalpost from “get rich quickly” to increasing the value of their assets over the long term and hedging inflation.

    Another sensible piece of advice from experts is to diversify one’s investment portfolio.

    Nhan says: “The ideal return from shares should be around twice the bond interest rate. Any broker who promises you way more than that could be scamming you.

    “VN30 stocks and companies with an excellent reputation are always a good choice for beginners.”

  • Citi Private Bank Loses China Heavyweight

    Citi Private Bank Loses China Heavyweight

    Citi Private Bank loses several within its mainland China coverage team, including a veteran relationship manager.

    Citi Private Bank’s global market manager for southern mainland China, Kevin King, has resigned from the bank, sources said. In addition, another four have also left the China team at the private bank.

    A spokesperson for the bank declined to comment.

    King spent a decade with Citi Private Bank covering the China market after kicking off his private wealth career with UBS and J. Safra Sarasin. Prior to joining the industry, he worked at the Hong Kong Trade Development Council where he focused on developing relations with the Greater China business community.

    The departures occurred in the midst of a new organizational structure for Citi’s private banking arm.

    Previously a standalone business, the American lender will now run all its wealth management businesses under a single unit, merging teams that cover the full range of clients from retail to ultra-high net worth individuals. The new unit will be led by ex-global head of investor sales and relationship management Jim O’Donnell.

    Last year, Citi’s merged wealth management businesses in Asia Pacific posted record-high net new money of $20 billion, a 10 percent year-on-year increase, according to the bank. This led assets under management to grow to $238 billion with a client base that includes approximately one-third of all billionaires in the region.

  • Grab Co-Founder Among New Pair of Directors at Wise

    Grab Co-Founder Among New Pair of Directors at Wise

    The London-headquartered online money transfer service plans to expand its product globally over the next few years to lower the cost of international transactions.

    Wise has appointed Tan Hooi Ling, co-founder of super app Grab, and Clare Gilmartin, former CEO of digital rail ticketing platform Trainline, to its board as director designates, the company announced in a blog post on Tuesday.

    The appointments will help the company with its next stage of growth, particularly in Asia Pacific, where the company operates in seven markets, co-founder and CEO Kristo Käärmann said in a the post. They will also help the board create a more inclusive work environment and more diverse and inclusive products, he said.

    The company, which recently rebranded from Transferwise to Wise, opened a new office in Singapore in February 2021, which will be used as a base for regional growth, while announcing major hiring plans.

    Wise was founded in 2011 by Estonians Taavet Hinrikus and Kristo Käärmann. Today, it boasts 10 million users which process over 4.5 billion British pounds ($6.3 billion) in cross-border transactions every month.