Tag: Banking

Singapore and Indonesia Central Banks Extend Swap Arrangement

The extension will support monetary and financial stability in both countries amid the COVID-19 pandemic, MAS said.

Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have agreed to extend a $10 billion bilateral financial arrangement for another year, MAS announced on Thursday.

This is the second extension of the arrangement, which was launched in 2018 for one year. It enables the two central banks to access foreign currency liquidity from each other, if needed, to preserve monetary and financial stability.

It comprises a local currency bilateral swap agreement that allows for the exchange of local currencies between the two central banks of up to S$9.5 billion or IDR 100 trillion ($7 billion equivalent), and an enhanced bilateral repo agreement of $3 billion that allows for repurchase transactions between the two central banks to obtain USD cash using G3 government bonds as collateral.

November 9, 2020
StanChart to Rollout Flexible Working Option
Standard Chartered is reportedly planning to permanently offer flexible work options to around 90 percent of its 85,000-strong staff by 2023.

Some form of hybrid work arrangement will be made available to around half of its staff from early 2021 and the program will extend to 75,000 works 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, according to a «Bloomberg» report citing an internal memo.

In addition to flexible work options, the bank will also provide «near-home» workspaces for staff – in addition to offices, and work-from-home arrangements – with an unnamed third party workspace provider.

According to Standard Chartered, hybrid work is something that has gained widespread acceptance across the bank with about two-thirds of Singapore staff favoring the option. The figures rises with respondents in western locations including 76 percent in the U.K. and 79 percent in the U.S.

It is anticipated most employees will fall into a hybrid pattern, ie some days in the office and some days working from home, the bank said.
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November 9, 2020
HSBC Sues Hin Leong Owners
The bank, which is owed some $600 million by embattled oil trading firm Hin Leong, is the firm’s largest creditor and first to take legal action to recover losses.

HSBC is suing Hin Leong owner Lim Oon Kuin and his two children to recover $85.3 million (S$115.8 million) of the $111.7 million they received using fake invoices and documents, according to a report last Friday.

The bank, which is also suing Serene Seng Hui Choo, a manager of the corporate affairs department at Hin Leong, filed the suit in the High Court on October 21, a report said.

Some 23 banks reportedly lent a total of $3.85 billion to the troubled oil trader, with HSBC reportedly believed to have the largest exposure. The oil trader overstated the value of assets by at least $3 billion by transferring money between bank accounts to create a false impression that accounts receivables were collected when no payments was actually received, according to a report.

In September, the firm’s judicial manager PwC took action against Lim, his son Evan Lim Chee Meng and his daughter Lim Huey Ching, who are both executive directors at the company, accusing them of fraudulent trading and breaching their fiduciary duties as directors.

According to the suit, the outstanding amount of $3.5 billion are Hin Leong’s debts, which the Lim family are personally responsible for, without limitation of liability
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November 9, 2020
DBS Profits Fall in Third Quarter
The bank will issue an interim one-tier tax-exempt dividend of 18 cents per share, for which the scrip dividend scheme will be applicable, for the third quarter of 2020 DBS Group reported net profit of S$1.30 billion ($960 million) for third-quarter of 2020, according to financial results released on Thursday.

This is 20 percent lower than the same period a year before (S$1.63 billion), but 4 percent up on-quarter on the back of improved business momentum. During the quarter, DBS also set aside S$554 million in allowances for potential bad loans and lower net interest income, bringing total allowances for the nine months this year to S$2.49 billion.

The bank noted improved business momentum as fee income rebounded 17 percent to pre-Covid levels of S$798 million, led by wealth management and card fees, which softened the impact of lower interest rates as well as a decline in trading income from a high base.

Due to the higher allowances, the bank’s net profit for the nine months declined 24 percent from the year before to S$3.71 billion.

DBS said it expects a strong economic rebound in Asia from the current low base to support mid-single-digit loan growth and double-digit fee income growth in 2021.

The accelerated build-up of allowances has strengthened our ability to meet the challenges of an uneven economic recovery in the coming year. In the longer term, Asia’s fundamentals remain undiminished, Piyush Gupta, chief executive, said.
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November 6, 2020
Google Pay continues to expand in the US, nearly 90 new banks now supported

Google Pay is pretty big in the US, and starting this week it will get even bigger. Currently, thousands of banks and financial institutions offer customers support for Google Pay, so the 89 names added this week will probably feel like a grain in the sand.

The list of 89 banks that now support Google Pay is below, so if you didn’t find yours among the 3,000 supported banks listed on Google’s support site, you can look for it here. The list is ordered alphabetically for easier reading

1st Trust Bank, Inc. (KY), Algonquin State Bank, Alliance Bank Central Texas (TX), Bank of Advance (MO), Bank of Herscher (IL), Bank of Newington (GA), Bank of Old Monroe (MO), Bossier Federal Credit Union (LA), Buckeye State Bank (OH), Central Valley Community Bank, Clean Energy Federal Credit Union (CO), Clearwater Credit Union, Community Partners Savings Bank (IL), Dover Federal Credit Union (DE), E-Central Credit Union, Exchange Bank of Northeast Missouri (MO), Families and Schools Together Federal Credit Union, Farmers – Merchants Bank of Illinois (IL), Farmers and Drovers Bank, Financial Horizons Credit Union, First Century Bank (TN), First Federal Savings Bank (IN), First Financial Bank, NA.

First Nebraska Bank, FirstCapital Bank of Texas, Fort Davis State Bank Franklin Mint Federal Credit Union, Gateway Metro Federal Credit Union, Genoa Community Bank, Gowanda Area Federal Credit Union, GreenState Credit Union (IA), Greenville Heritage Federal Credit Union, Gulf Capital Bank (TX), HNB First Bank (AL), Hardin County Savings Bank (IA), Harris County Federal Credit Union (TX), Heartland Credit Union (IL), Heartland Credit Union (MI), Honolulu Fire Department FCU (HI), Hurricane Creek Federal Credit Union (AR)

Jersey State Bank (IL), Jolt Credit Union (MI), KSW Federal Credit Union, Lakeview Federal Credit Union, Latrobe Area Hospital FCU (PA), Live Life Federal Credit Union, Magnolia Bank (KY), Martha’s Vineyard Savings Bank (MA), Millyard Bank (NH), Minnwest Bank (MN), Mountain Credit Union (NC), Mt. McKinley Bank, Needham Bank (MA), Northwest Christian Credit Union, One Community Bank (WI), One Source Federal Credit Union (TX), Partners Bank of California, Pawtucket Credit Union, People’s United Bank, National Association (CT).

Peoples Bank & Trust Co (MO), Plains Commerce Bank Raritan Bay Federal Credit Union Rio Grande Valley Credit Union, Rollstone Bank & Trust (MA), SPE Federal Credit Union (PA), Sabine Federal Credit Union, Saco Valley Credit Union, Safra National Bank of New York (NY), San Luis Valley Federal Bank, Savings Bank of Walpole (NH), Secured Advantage, Federal Credit Union, Sentry Credit Union (WI), Southbridge Credit Union (MA).

Springfield First Community Bank, St. Louis Bank, Susquehanna Valley Federal Credit Union, Taunton Federal Credit Union, Telcomm Credit Union (MO), Texas Regional Bank, The Bank of Salem (MO), The New Orleans Firemen’s Federal Credit Union, Treasury Department Federal Credit Union (DC), TruStar Federal Credit Union (MN), United Credit Union, Varo Bank, National Association, WESLA Federal Credit Union, WESTcoasin Credit Union (WI), Wells River Savings Bank (VT), and WestStar Bank (TX).

Ok, 3,000 is a big number, but there’s a chance that many Google Pay users won’t find their banks on this huge list. Well, judging by the constant wave of banks and financial institutions that are getting Google Pay support each month, sooner or later we’ll be able to use the mobile payment service across all America.
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November 6, 2020

Standard Chartered Names Regional Head of Private Banking

The bank has hired a new regional head to replace its outgoing regional head, Private Banking West.

Standard Chartered has appointed Grant Parkinson as regional head of its private banking business for Europe, Africa, and the Middle East, the bank said in a statement.

Parkinson joins the bank from U.K. wealth manager Brewin Dolphin, where he was a chief operating officer. He was also a chief operating officer at Coutts from 2012 to 2017, and previously worked for Barclays and McKinsey. Based in London, he reports to Didier von Daeniken, global head, private banking.

Current regional head, Private Banking West, Steve Atkinson, is stepping down from his role and will be leaving after three decades with the bank. He will work closely with Parkinson to ensure a smooth leadership transition over the next few weeks, the bank said.

The Private Bank’s franchise in the West is an important part of its global Private Banking business, complementing its franchise in Asia to cater to the needs of a global client base,» Standard Chartered said in the statement.

The London-headquartered private bank previously stated plans to grow its assets under management (AUM) from $65 billion currently to about $100 billion in three to five years and said it would be hiring 30-40 relationship per year over the next two to three years.

November 6, 2020

OCBC Earnings Drop Significantly

While the bank’s net interest income was impacted by lower market rates, its banking and wealth management businesses saw strong quarter-on-quarter fee-based growth, and its insurance franchise reported strong sales and new business growth.

OCBC’s net profit for the third quarter of 2020 was S$1.03 billion ($760 million), up 41 percent from the previous quarter’s S$730 million and 12 percent lower compared to a year ago, according to financial results published by the bank on Thursday.

The growth in profit was largely a result of a fall in allowances, OCBC said. The bank set aside S$350 million in allowances during the quarter, which included a management overlay of S$150 million, compared to S$750 million in the previous quarter.

Net interest income declined 4 percent from last quarter’s S$1.42 billion from lower rates – an 11 percent decline from the same period in 2019. At the same time, non-interest income rose 6 percent to S$1.12 billion, led by higher trading income and insurance profit.

The bank reported growth in wealth management fees of 24 percent on-quarter and 4 percent year-on-year to S$252 million.

Assets under management at Bank of Singapore, OCBC’s private banking subsidiary, grew 3 percent from the previous quarter and 5 percent year-on-year to $116 billion (S$159 billion), underpinned by net new money inflows and better market valuations.

At Great Eastern, OCBC’s insurance arm, total weighted new sales rose 51 percent quarter-on-quarter to S$433 million, supported by improved sales both in Singapore and Malaysia, while New Business Embedded Value was 47 percent higher at S$160 million, while the NBEV margin was 37 percent.

OCBC said the full extent of the lagging economic impact of the crisis will only likely have more visibility next year. However, it said it is well-positioned for recovery and is focused on driving long-term sustainable value.

With the outlook still uncertain, it is most important that we continue to strengthen our capital and balance sheet. This will position us well for the crisis and enable us to emerge well-prepared for new opportunities when the market recovers,» Samuel Tsien, OCBC group CEO, said in a statement.

Singapore’s two other listed banks already reported their quarterly earnings – DBS saw its profits fall by 20 percent from the same period last year to S$1.3 billion, while UOB reported a 40 percent decline to S$668 million.

November 6, 2020

UOB Tie-Up to Nurture ESG Mindset Among Employees

UOB will work with Dutch investment company Robeco to tap its expertise in environmental, social, and governance (ESG) matters and integrate sustainable thinking across its business and investment processes.

The bank’s asset management arm is launching its Sustainability Academy in the fourth quarter of 2020, which offers development programs to deepen its employees’ understanding of sustainability principles and nurture an ESG mindset, UOB announced on Friday.

The Robeco program comprises two modules, namely Sustainable Investing and Sustainable Development Goals (SDGs) Investing, and will cover key topics such as ESG integration, active ownership, and measuring the contribution of companies to the UN SDGs. Over 400 staff in both investment and non-investment roles across the region are expected to benefit from the training.

The academy will launch a second training program in November 2020, to be offered by KPMG and supported by the Institute of Banking and Finance Singapore, covering topics such as sustainability reporting and regulatory expectations on ESG matters.

The global emphasis on sustainable investing has grown tremendously in recent years, with ESG considerations now core to the investment philosophy of major asset managers around the world, Thio Boon Kiat, CEO of UOB Asset Management, said in the announcement.

Earlier this week, UOB announced that it would integrate ESG considerations into its full suite of retail investment solutions as part of the bank’s commitment to driving growth sustainably.

UOBAM previously worked with Robeco to launch the first bond fund focused on the UN SDGs – the United Sustainable Credit Income Fund (USCIF) – for retail investors in Singapore in March 2020. The two sides also jointly launched a

November 2, 2020

DBS Mulls Crypto Exchange Launch

DBS’ plans for a digital exchange are still work in process, and have not received regulatory approvals. Until such time as approvals are in place, no further announcements will be made. DBS is planning to launch a crypto exchange that will allow four digital currencies – Bitcoin, Bitcoin Cash, Etheerum, and Ripple – to trade against the Singapore dollar, Hong Kong dollar, Japanese yen or U.S. dollar, according to a report by digital asset media firm The Block.

Dubbed DBS Digital Exchange, the initiative was first unveiled through a website seen by The Block which cached the now removed website.

Regulated by the Monetary Authority of Singapore, the crypt exchange will be made accessible to institutional investors, including financial institutions and market makers. Retail investors will have access via DBS entities like their securities or private banking arm.

While most exchanges can execute orders at any time and any day, DBS will similarly follow the same trading hours as stock exchanges, allowing for less than seven hours per day, according to the report.

In addition to standard trading, the bank will also provide institutional-grade custody solutions for safekeeping digital assets and, in due time, conduct security token offerings to help small and medium-sized firms raise funds.

Digital assets are poised to be the future of tomorrow’s digital economy, the website originally read.

With DBS Digital Exchange, a bank-backed digital exchange, companies, and investors can now leverage an integrated ecosystem of solutions to tap the vast potential of private markets and digital currencies.

October 29, 2020

Revolut Ramps Up Growth Efforts in Singapore

The fintech hopes to build on the momentum it has gained amid the social and economic challenges brought about by the pandemic.

Revolut Singapore has made a number of additions to its growing team in Singapore bring onboard digital strategist Sam Chui as marketing manager and media specialist Deborah Tan-Pink as communications manager.

Chui joins from local marketing agency GoodStuph, while Tan-Pink resigns from her role as CEO of an edtech startup to join the company. She previously spent more than 10 years in lifestyle publishing, including a stint as editor-in-chief of Cosmopolitan Singapore. The pair will report to Pam Chuang, Revolut Singapore’s head of growth.

Our hiring strategy is to attract top talents in the region with great expertise in specific fields. Both Deborah and Sam have on-ground knowledge of the Singapore market when it comes to our target customers, Chuang said about the new hires.

The total number of e-commerce transactions among Revolut customers more than doubled during Singapore’s «circuit breaker» period earlier this year. Contactless payments also grew by 30 percent, and now comprises 90 percent of its transactions, Tan-Pink said.

Revolut is currently seeing a recovery in in-store spending, particularly for restaurant dining, with close to 3x growth in total transactions. Year to date, our daily active people figure is close to pre-Covid levels and we are poised to grow this number further this quarter and into 2021, she said.

The company said it has enjoyed «very positive momentum» since its launch one year ago, with over 70,000 customers, of which 65 percent are Singaporeans. The average age of the Revolut customer in Singapore is 35 and some three-quarters of its active customers use the Revolut card for e-commerce purchases, it noted.

The company is preparing to bring Revolut Junior to the market in the last quarter of 2020, and expects a full roll-out of Revolut Business at end of the first quarter next year.

October 28, 2020

HSBC Restructures Further and Faster

HSBC will accelerate and expand restructure, despite beating analyst forecast with $3.1 billion of profit before tax in the third quarter. Profits were down $1.8 billion (37 percent) compared to the same period last year, according to the latest earnings release, supported by reducing risky credit and continued cost management. Year-to-date, the London-headquartered bank generated $9.9 billion in profit before tax.

These were promising results against a backdrop of the continuing impacts of COVID-19 on the global economy, said group chief executive Noel Quinn.

I’m pleased with the significantly lower credit losses in the quarter, and we are moving at pace to adapt our business model to a protracted low-interest-rate environment.

Moving forward, the bank will focus on three main strategic priorities: growth acceleration in Asia continued digitalization, and further restructuring.

On the latter area, the bank is looking to speed up and expand the initiative after saving $600 million in costs this year and shedding 10,000 jobs since the third quarter last year. U.S. and Europe are also restructuring and are also on pace to meet their 2022 targets. We are accelerating the transformation of the Group, moving our focus from interest-rate sensitive business lines towards fee-generating businesses, and further reducing our operating costs, Quinn said. We also intend to increase our rate of investment in Asia, particularly in wealth, the Greater Bay Area, south Asia, trade finance, and sustainable finance.

According to Quinn, ECL charge for 2020 is trending lower towards the $8-13 billion range but he notes that current guidance makes the assumption that further significant economic deterioration is unlikely.

In addition, he also highlighted geopolitical risks including U.S.-China tensions as well as uncertainties linked to Brexit.

We expect lower global interest rates to continue to put pressure on net interest income, Quinn said. Based on current interest rates, we expect further modest net interest income headwinds in 4Q20, with some stabilization as we move into 2021.

October 28, 2020

Fintech Launches Low-Cost Customizable Portfolio

Digital wealth manager Endowus’ new product allows investors to build customizable portfolios with direct access to a selection of low-cost funds.

The Fund Smart platform, launched Thursday, allows investors to directly access institutional share-class and trailer-free funds using cash, CPF, and Supplementary Retirement Scheme (SRS) funds.

The platform’s curated model portfolios include an ultra-defensive fixed income portfolio that prioritizes capital preservation, flexible cash management solutions, as well as thematic and sector-focused portfolios such as ESG environment, social, governance (ESG) or socially responsible investing (SRI) funds, Shariah-compliant funds, and thematic funds.

People struggle with too many options – a growing array of platforms, and far too many funds to choose from with confusing fee structures,» Samuel Rhee, Endowus chairman and chief investment officer, explained in the announcement.

According to the company, Fund Smart was developed based on a survey of more than 700 investors that focused on their preferences and behavior patterns. Some 71.6 percent of respondents indicated a desire to customize their investment portfolios, with lower incurred costs (84 percent) and the flexibility to choose funds from specific geographies or sectors (74.5 percent) as key considerations.

We want our clients to experience the same quality of advice we have provided with our core portfolio products, but now with greater flexibility, Rhee said.

Fund Smart has no sales fees, no transaction fees, no lock-ups, and full trailer fee rebates, along with automated rebalancing and regular savings plans capabilities.

October 27, 2020

Banks maintain profit growth but bad debts rise

Most banks reported profit growth in the first nine months, but bad debts posted a double-digit rise due to the impacts of the Covid-19 pandemic. VPBank saw its pre-tax profits surge by nearly 30 percent year-on-year to VND9.4 trillion ($402.75 million) as it managed to cut operating costs by nearly 6 percent. But its bad and doubtful debts rose by 15 percent to over VND10 trillion.

Military Bank’s profits rose by nearly 7 percent to VND8.13 trillion while its bad and doubtful debts rose by 39 percent.

ACB’s profits were up nearly 15 percent at VND6.41 trillion while bad and doubtful debts rose by 71 percent.

But some banks also reported declines in profits.

Vietcombank continued to be the most profitable, but its pre-tax profit fell by over 17 percent to VND15.96 trillion as revenues remained flat or declined but it had to hike provisions for bad debt by 25 percent.

Bad and doubtful debts were up 15 percent to nearly VND7.9 trillion.

Sacombank’s profits fell by nearly 7 percent to VND2.33 trillion as provisions for bad debts rose by nearly 70 percent.

Financial data provider FiinGroup had said in a report in July that the financial health of businesses and their ability to repay debts have declined and people’s incomes have dropped, and these factors could affect the quality of credit in the near future.

As lenders gradually have to increase provisions for doubtful debts, their profits in the coming quarters could slump, it added.

October 27, 2020

UBS’s Sergio Ermotti Lines Up Wall Street Gig

Sergio Ermotti is returning to his roots in high finance – cashing in on a boom in a niche style of stock-listing with potentially huge payoffs.

The long-standing CEO of UBS, Sergio Ermotti, isn’t abandoning Wall Street altogether when he leaves the wealth manager next week: He is listed as the chairman of a so-called black-check company, which is seeking to raise $350 million, from January 1, citing U.S. securities filings.

The 60-year-old Swiss banker is a veteran City trader who began his career in investment banking in 1987 in equity derivatives and capital markets at Merrill Lynch. Ermotti, who is withdrawing from UBS altogether after he hands over to successor Ralph Hamers next week, already took a board job at Swiss Re, where he is poised to take over as chairman in April.

Ermotti is the latest potent financial sponsor to put his name on a Spac, which has raised eyebrows for their opaque set-up, huge fees, and tendency to attract short-term shareholders versus long-term investors. The highest-paid banker in Europe, Ermotti has realized more than 50 million francs in pay since taking the helm at UBS in 2011.

He is also passionate about the wealth manager’s prospects and apparently still a trader at heart: nearly two years ago, he doubled down with a $13 million personal bet on his own stock – effectively, one year’s pay worth of UBS shares. Ermotti is the biggest UBS shareholder in top management (4 million shares, or 0.2 percent voting rights).

Once relegated to a corner of Wall Street, the blank-check playbook is to create a shell company, seek a public listing for it, and then use the money raised through the listing to merge with an actual business.

The potentially lucrative special-purpose acquisition companies, or Spacs, have emerged primarily in the U.S. equity market. That is about to change: a Spac focused on European targets raised $600 million this month.

October 26, 2020