Tag: Banking

  • DBS Converts Bank Guarantee Facility to Green Facility

    DBS Converts Bank Guarantee Facility to Green Facility

    With the new green facility, Spanish wind turbine manufacturer Siemens Gamesa, which has over 100 gigawatts of installed wind capacity and aims to be carbon-neutral by 2025, will be able to issue green guarantees.

    DBS has converted its €500 million ($542.45 million) bank guarantee issuance facility with Siemens Gamesa to a green facility, the bank said in a statement on Monday.

    Under the new green facility, Siemens Gamesa will be able to issue Green Guarantees to support its supply of equipment and services for wind energy projects internationally, and promote and assure higher standards of sustainable sourcing and deployment, the statement said.

    Demand for sustainable financing to support the renewable energy sector in Asia is growing, said Terence Yong, group head, Western Multinationals, DBS.

    It is therefore important to support clients such as Siemens Gamesa who not only want to make clean energy more affordable and reliable but also ensure high standards of sustainability in its supply chain, Yong said.

    According to the bank, in the past two years, it has provided over S$3 billion in financing and advisory services to the renewable energy sector across nine markets in Asia Pacific. Last year, the bank closed about S$5 billion in sustainable finance transactions, comprising green loans, sustainability performance-linked loans and renewable energy financing.

  • UBS’ Elite Squad of Top Bankers

    UBS’ Elite Squad of Top Bankers

    Three years ago, top executives including ultra-rich banker Josef «Joe» Stadler; domestic trouble-shooter Karin Oertli; Evidence Lab boss Barry Hurewitz; investigative head Emma Molvidson; and top Japanese private banker Victor Chang met for a twice-yearly confab overseen by CEO Sergio Ermotti near Zurich.

    After a day of meetings, the executives, part of a cadre of influential bankers at the Swiss wealth manager in the rank of «group managing director,» or GMD, were grouped for a team-building event. The challenge? The bankers had to change a race-car tire. Caroline Stewart, now finance chief of UBS’ investment bank, was on the winning team.

    As ING CEO Ralph Hamers prepares to take the top spot at UBS in November, the elite squad is coming into clearer focus: the title was introduced in 2010, and ranks have swelled under current CEO Sergio Ermotti. Several sources report that the system clogs the pipes in decision-making – something Hamers will have to tackle when he takes over.

    Now at more than 100, the executives form a kind of Praetorian Guard around the C-Suite, as one observer put it. For the most promising of the top executives, the GMD status is a way for the bank to illustrate the glide path into top management.

    It would be natural for Hamers to begin trimming their ranks. Besides being numerous, they are costly: GMDs make up part of 675 key UBS risk-takers, a group that took home a cumulative $1.25 billion on pay and bonuses last year (or nearly $2 million on average). They outrank the ladder of associate directors, directors, executive directors, and even MDs.

    Because they outrank nearly everyone and because they tend to be well-connected, GMDs can propel projects or ideas and mobilize resources even when times are tight. They are a powerful faction to woo because they wield great influence at UBS, which remains a hierarchically-run bank. Unlike vice-chairmen, aa role considered a largely symbolic consolation prize, the GMDs are operationally active.

    Perks for the GMDs like a private gym at one of the bank’s Zurich offices have raised eyebrows at home. The group is undoubtedly high-octane: part of the aim of designating a banker even more than a managing director is to keep them from defecting.

    That’s what long-standing wealth manager Juerg Haller, who has held both the GMD as well as subsequently the vice-chairman title, did recently: Haller is now chairman at family-controlled rival J. Safra Sarasin, a rival to UBS.

    GMDs enjoy other perks too: they are part of the same bonus pot that top management enjoys – so-called equity ownership plans – but their lock-up is shorter. The awards, like for Ermotti and his C-suite colleagues, can be clawed back if the wider unit’s performance disappoints.

    Part of the reason the rank – not the people themselves – are likely in for more scrutiny is that the process of getting there is completely opaque and at least partly political. Other banks have similar «super MD» statuses. Goldman Sachs, for example, held onto the «partner» designation when it went public.

    But unlike at the U.S. investment bank, where prospects are vetted by a committee and subjected to a series of interviews with partners around the world, UBS’ process is murky. The GMD status just appeared, and UBS has never given a satisfactory explanation of what the criteria is, a former UBS banker said. The bank also doesn’t disclose who is a GMD.

    UBS said its GMDs are its most senior leaders, under top management with a key responsibility to drive success for the whole group across businesses and functions, together with their teams‎. The Swiss bank declined to detail their role, number, or criteria for advancing to the rank of GMD.

    Several sources said the group is currently 100+ bankers, 60 of them in Switzerland, mainly in Zurich. The group is viewed as special within UBS, but the GMD status isn’t a shield against their stars dimming, a person familiar with UBS’ staff practices said.

    Typically, GMDs are afforded more time to look for another option at UBS if their roles are restructured: the process if somewhat more collaborative than with regular managing directors or other employees. «The GMDs are very actively managed, but it’s a much friendlier process than elsewhere,» the person said.

  • Citi Private Bank Names Global Market Manager

    Citi Private Bank Names Global Market Manager

    Citi Private Bank internally promotes a heavyweight banker to become a global market manager based in Hong Kong.

    Kevin King has been named as the global market manager for southern mainland China. He was most recently a team head covering the offshore Chinese market.

    A spokesperson for the bank declined to comment on the appointment.

    King is a seasoned private banking veteran renowned for his deep network and relatively fast rise in an industry with a notoriously thin pool of senior talent. In addition to 11 years with Citi Private Bank, King had also previously worked with the likes of J. Safra Sarasin, UBS and the Hong Kong Trade Development Council where he focused on developing relations with the Greater China business community.

    The most notable tailwind for the southern mainland region is the ambitious Greater Bay Area plans which envision closer integration between Hong Kong, Macau and several cities in the Guangdong province.

    In addition to creating an integrated economic and business hub, the plan if successful is expected to provide a boost to the tech sector most notably by filling the talent gap between fast-growing demand from mainland China and the relatively small pool in Hong Kong. According to a Colliers estimate, the Greater Bay Area could generate gargantuan economic output totaling $3.6 trillion annually by 2030.

  • Broad-Based Franchise Growth Brings UOB Record Earnings

    Broad-Based Franchise Growth Brings UOB Record Earnings

    The bank’s total income for 2019 grows 10 percent to cross $10 billion, led by healthy client franchise growth and stronger trading and investment income. It is recommending a full-year dividend of S$1.30 per ordinary share.

    UOB achieved record net earnings of $4.34 billion ($3.1 billion) in 2019, up 8 percent from 2018, the bank announced on Friday.

    In particular, it noted higher net interest income, fee growth from wealth management and credit cards, and stronger trading and investment income. At the same time, its expenses grew by 12 percent year-on-year due to talent and technology investments, with a cost-income ratio of 44.6 percent.

    Wholesale banking income grew 6 percent to S$4.1 billion in 2019, with 8 percent growth in non-Singapore income, 6 percent growth in non-real estate income, and 8 percent growth in non-loan income. Its retail business, which includes business banking, grew 9 percent from 2018 to S$4.3 billion. Income from high affluent customers increased 14% year on year, while assets under management in this segment grew by 14 percent to S$127 billion – 61 percent from overseas customers.

    The bank’s net profit rose 10 percent in the fourth quarter to S$1.01 billion, up from S$916 billion a year ago, driven by growth in net interest income and trading and investment income.

    Compared to its strong third-quarter, earnings fell 10 percent, but this was chalked up to seasonally lower fees and trading and investment income.

    UOB said it is focused on riding Southeast Asia’s long-term growth potential, and will «grow selectively and seize opportunities within [its] target segments.»

    It is positioning its wholesale banking business to capture growing cross-border trade and investment flows. Its retail business hopes to ride on the growing affluence and wealth potential of the region’s rising middle class, using an omnichannel and ecosystem partnerships strategy.

    In a presentation accompanying the results announcement, UOB said it would be rolling out its digital bank TMRW to Indonesia this year.

    It noted the S$10 billion market opportunity in ASEAN, and said the digital bank is on track to be marginal cost positive within five years.

    The bank said it expects downward pressure on customer margins in 2020, with a slight uptick in credit costs, given current conditions. However, it hopes to sustain momentum in fee income growth led by wealth management and to keep its cost/income ratio stable with a paced investment approach.

    Wee Ee Cheong, deputy chairman and chief executive officer, acknowledged the challenging environment, particularly due to the effects of the Covid-19 epidemic, but noted the bank’s relief assistance measures to cushion its impact on customers.

    We believe the region will weather this storm and are confident of ASEAN’s long-term potential. We will continue to invest in our capabilities, including digital, and seize the opportunities arising from the shifting economic environment, Wee said in the results statement.

  • HSBC’s Revamp Less Reliant on External Factors

    HSBC’s Revamp Less Reliant on External Factors

    HSBC’s overhaul this time will be different, said interim chief executive Noel Quinn, relying less on external factors such as the economic environment.

    Following disappointing results, HSBC made announcements to further restructure the business including through 35,000 job cuts. According to its interim head, the current revamp will be less dependent on assumptions based on the macroeconomic environment.

    I believe this plan is predicated on three things we can control, which are costs, simplification of the business, and capital efficiency, rather than being dependent on revenue growth assumptions influenced by the macroeconomic environment,” Quinn said.

    Meanwhile, the spotlight continues to shine on the issue of stability at the top as the bank’s appointment of a permanent chief executive remains unconfirmed. HSBC CFO Ewen Stevenson reportedly made a call to staff this week to provide assurance and inspire commitment.

    Internally, expectations had built up in the run-up to the strategy update that Quinn will be confirmed as the group CEO, the report said, citing an unnamed source that was on the call. But the way the whole thing is being handled … it has created more confusion about the strategy and whether the bank will stick to it for the next three years even if there is a change at the top.

    This is a significant restructuring that is being driven by an interim CEO who may not be the person that delivers it, added another unnamed source that claimed to be a top-20 investor in the bank.

  • AXA Names Asia Chief Strategy and Customer Officer

    AXA Names Asia Chief Strategy and Customer Officer

    AXA appoints a chief strategy and customer officer for Asian markets to place an even greater emphasis on the region including a doubling down on mainland China.

    AXA appoints Dongjun Choi in his newly expanded role in addition to the strategic development office. Choi will be responsible for finance and operations & technology alongside health and distribution, reporting to Gordon Watson, CEO of AXA Asia.

    Choi has over 20 years of experience in the insurance and financial sector. Prior to joining AXA, he was a managing director with Barclays U.K.’s Strategic Analytics Centre of Excellence responsible for optimizing the bank’s commercial performance. Previously, he had also worked for Cigna, Standard Chartered and McKinsey & Company.

    Choi brings vital expertise to this important function within AXA’s Asian Markets business as we focus on our strategic pillars ­– an enhanced health business, expanded distribution, building our brand and doubling down on mainland China, said Watson, commenting on the new hire.

  • DBS Reports Second Staff Infected With Coronavirus

    DBS Reports Second Staff Infected With Coronavirus

    Another staff of DBS has tested positive for the novel coronavirus, according to a media report. This time around, the latest patient is based in one of the bank’s satellite offices, a DBS spokesman said in Singapore, without disclosing the location. The new case – Case 77 – is understood to be a staff at DBS’s Ngee Ann City office on Orchard Road.

    DBS Treasures has a branch on the fifth story of the property. This satellite office has been deep cleaned as per MOH and National Environmental Agency guidelines, the spokesman added. Case 50 involved a 62-year-old male DBS employee who works at Tower 3 of Marina Bay Financial Centre.

    Case 77 was a first-degree contact, which means he was in close contact with the first DBS employee infected, Case 50, the spokesman added.

    The Ministry of Health (MOH) had announced two more cases in Singapore on Monday evening, with one of them being Case 77, a 35-year-old Singaporean man with no recent travel history to China.

    The affected office space and floor in Tower A have been cordoned off, and common areas such as lifts and toilets are being deep-cleaned and disinfected.

    The DBS spokesman said the bank has a framework for contact tracing, which is done through a mix of physical interviews and data analytics. Through this, we are able to contact-trace up to three degrees of separation, said the spokesperson.

  • HSBC Joins Singapore Banks In Local Relief Measures

    HSBC Joins Singapore Banks In Local Relief Measures

    HSBC Singapore is the latest to join other Singapore banks in announcing a slew of relief measures to help businesses and retail customers tide through the effects of the Covid-19 outbreak.

    HSBC announced on Friday its set of support measures for Singapore clients, joining DBS, Standard Chartered, OCBC who already pushed out their relief packages on Thursday. UOB had announced mid-week it would set aside S$3 billion to support small- and medium-sized enterprises (SME).

    The bank’s set of support measures aims to ease Singapore’s flow of commercial trade, which includes maturity extensions to SGD$600 million of current trade loans and 1-hour turnaround on the issuance of shipping guarantees. «Trade underpins Singapore’s economy and society. The measures that we have introduced today aim to facilitate the continued flow of trade by easing the cashflow and operational pressures faced by businesses tackling supply chain disruptions. We are committed to supporting our customers,» said Tony Cripps, Chief Executive Officer of HSBC Singapore.

    In addition, it is waiving amendment fees on Letters of Credit impacted by delays, plus providing enhanced support to enable customers to shift towards digital processing.

    On Thursday, DBS provided details of its liquidity relief packages to address their customers’ «most urgent cash flow needs» after the lender announced its year-end results. In particular, it will provide a six-month principal repayment moratorium for SME property loans.

    In addition, DBS will offer an extension of import facilities of up to 60 days to act as immediate cash-flow support for businesses coping with disruptions from the Covid-19 situation. These relief packages will be available to customers with good repayment histories when they apply, it added. Assistance for affected retail customers will be shared on DBS/POSB’s website from 17 February.

    Standard Chartered is looking to offer loan tenor extensions and principal moratoria of up to 12 months for affected clients with business banking installment loans upon request. Other forms of support could include bill maturity extensions of up to three months for clients with trade facilities who face delayed trade payments, waivers of business banking late fees and related charges such as restructuring costs for up to six months, and extra loans or overdrafts against their property for clients with commercial mortgages.

    For OCBC, it will offer targeted support to customers across its core markets which include Singapore, Malaysia, China, Hong Kong, and Macau. Measures include letting customers restructure their loans, providing a moratorium on principal repayment for loans, extending the due date of affected trade finance bills, and extending bridging loans in the form of additional working capital financing.

    The bank will not limit he help it will extend to customers, noting that the scale of the virus outbreak is «different from that of previous challenges» due to increased connectivity in the region, said OCBC chief executive Samuel Tsien in a media statement.

  • Standard Chartered Robber to Face Charges in Singapore

    Standard Chartered Robber to Face Charges in Singapore

    The man, wanted in connection with the 2016 robbery of a Standard Chartered branch in Holland Village, will face charges in Singapore after his appeal against extradition from the U.K. was dismissed by a London judge.

    Canadian national David James Roach will face extradition to Singapore from London, where he is currently held, to face charges of robbery and money laundering, the Singapore Police Force said in a statement on Thursday.

    The Singapore authorities will do whatever is necessary and permissible within our legal framework to seek justice against those who commit crimes in Singapore, regardless of nationality and where they might have fled to, the statement said.

    The 28-year-old suspect took $30,490 in cash from the bank in a robbery that took place on the morning of July 7, 2016. By the time the police were able to establish his identity, he had already fled to Bangkok, Thailand. He was later detained by local authorities and found guilty of violating money-laundering laws by bringing money from the robbery into Thailand.

    After serving a 14-month sentence, he returned to Canada on January 11, 2018, but was detained in London during a stopover at the request of Singapore authorities.

    Robbery carries a 10 years’ jail and at least six strokes of the cane, while the money laundering charge comes with a 10-year sentence and a S$500,000 ($360,000) fine. For the extradition to proceed, Singapore authorities have agreed to the U.K.’s request to waive the caning if Roach is found guilty.

  • Standard Chartered Launches Singapore-Based Venture

    Standard Chartered Launches Singapore-Based Venture

    The bank is partnering with Australia-based start-up Assembly Payments to deliver next-generation payment solutions to merchants globally.

    Standard Chartered is launching a new payments venture to be headquartered in Singapore as part of a strategic partnership with Assembly Payments, the two parties announced on Tuesday.

    The joint venture will offer merchants globally a digital payment platform to manage transactions across multiple payment types and countries, including online, mobile and point-of-sale, digital wallets, debit and credit cards and real-time payments, a joint statement said.

    As the world moves towards platform-based e-commerce, the need for the next generation of tools to empower merchants and enable financial inclusion continues to grow, Alex Manson, head of SC Ventures, the bank’s innovation, fintech investment and ventures arm, said.

    The payments venture is the latest in a series of new business models the bank has launched recently, which include a strategic joint venture with PCCW, HKT and Ctrip Finance in Hong Kong to deliver a new standalone digital retail bank, virtual banking partnerships in Taiwan and Korea and SME-focused financial and business services platform Solv in India.

    Assembly, which already offers these services in its home market, said the partnership better positions it to capture a larger slice of the $29 trillion international payments market and exponentially grow its business.

    Since its founding in 2013, Assembly has already raised $70 million in equity financing. Its rapid growth has been spurred on by the introduction of the country’s fast payment network, the New Payments Platform.

     

     

  • DBS Evacuates Staff as Covid-19 Case Detected

    DBS Evacuates Staff as Covid-19 Case Detected

    An employee at its headquarters, who was tested on 11 February, was confirmed to have been infected with the novel coronavirus or Covid-19.

    DBS has evacuated its staff from the bank’s Marina Bay Financial Center (MBFC) Tower 3 headquarters following confirmation that one of its employees there had contracted the Covid-19 virus.

    In a statement released on Wednesday, the bank said it is «providing the employee and his family with every support and guidance» and is conducting detailed contact tracing with all employees and other parties that the infected employee may have come into contact with. It is also deep cleaning and disinfecting the affected office space in accordance with Ministry of Health guidelines.

    In the meantime, staff on the affected floor have been instructed to work from home, and all employees will be provided a personal hygiene and protection care pack, the bank said.

    The news comes a day after two cases were reported in Singapore’s central business district, with one located just next door at MBFC Tower 1, where Standard Chartered is a key tenant. The other case is an employee of United Industrial Corporation (UIC), who works at Clifford Centre.

    Buildings in the area have stepped up preventive measures in recent days, requiring all tenants and guests to undergo a temperature screening before entering and to fill up forms with their contact information and recent travel history.

  • Coronavirus Hits Singapore CBD

    Coronavirus Hits Singapore CBD

    Staff of major firms are being told to work from home and temperature screening and sanitation are being stepped up at many towers in the central business district as two cases emerge.

    The novel coronavirus outbreak in Singapore has spread to its financial district, with two employees at buildings in the area found to have been infected, «The Business Times» reported, citing circulars seen by the publication.

    The first, who contracted the virus on February 8, works at Marina Bay Financial Centre (MBFC) Tower 1, where Standard Chartered is a key tenant. DBS has offices in Tower 3. The building’s management said that affected office space, lifts and ground floor common area have been deep cleaned and disinfected in accordance with Ministry of Health guidelines, according to the report.

    The other, an employee of United Industrial Corporation (UIC), works at Clifford Centre. No other UIC employee has displayed any signs of the virus as of February 7, a circular said, noting the building has since been disinfected.

    The Monetary Authority of Singapore (MAS) issued an advisory urging financial institutions to adopt additional measures and precautions on Friday, the same day the city-state raised its response level to Orange, the same level as during the Sars epidemic in 2003.

    They include maintaining effective internal controls across operations should split team arrangements be implemented, anticipating and preparing for an increase in demand for services such as cash withdrawal or online financial services, informing customers of the availability of services and operating hours, and supporting staff morale.

    It also warned of the heightened risk of cyber threats as actors take advantage of the situation to conduct email scams, phishing and ransomware attacks.

    As a precaution against the novel coronavirus, UOB has closed two banking outlets in Shanghai and Beijing, the bank said in a media statement on Monday.

    UOB’s Commercial Banking Centre in Kwun Tong, Hong Kong remains closed until 14 February. Corporate customers are encouraged to use the Tsim Sha Tsui and Causeway Bay branches during this time.

  • HSBC Offers Buffer for Hong Kong SMEs

    HSBC Offers Buffer for Hong Kong SMEs

    HSBC continues to show support for small to medium-sized businesses hit by the coronavirus outbreak in Hong Kong with additional liquidity relief of $30 billion.

    The bank said during the weekend that it would extend $3.9 billion of additional liquidity relief to affected businesses as the coronavirus outbreak has led to 36 infected individuals and one death in Hong Kong.

    According to HSBC, the initiative will target taxi and public light bus operators; borrowers of property-secured commercial loans; trade finance customers; and borrowers of import trade loans. Relief measures include temporary interest-only repayments, extensions to repayment schedules and the creation of overdraft facilities. In addition to SMEs, the bank is now mulling additional initiatives to support individuals.

    Our community needs every bit of help at this unprecedented time, said HSBC’s Hong Kong chief executive Diana Cesar in a report. We are committed to supporting our customers and will introduce more initiatives that will provide near-term relief.

    HSBC becomes the seventh local lender to announce support for the relief efforts after ICBC Asia recently said it would provide temporary interest-only payment arrangements for mortgage loan borrowers, waited or reduced credit card late payment penalties alongside improved fees and rates for investment and deposit products.

    Other lenders that have publicly announced support include Bank of China (Hong Kong), Bank of East Asia, China Citic Bank International, Hang Seng Bank and Standard Chartered.

    Efforts in Hong Kong mirror that of mainland China’s which include support from both the local financial sector as well as global players like UBS and Julius Baer. Meanwhile, the coronavirus outbreak continues to worsen with reported infections now rising beyond 40,000 and deaths exceeding 900.

  • OCBC Applies Analytics For Charity Work

    OCBC Applies Analytics For Charity Work

    Besides contributing $300,000 and manpower to a community shop, the bank will also leverage its data analytics to guide them on the distribution of food items.

    OCBC Bank will contribute S$300,000 and volunteer support for the operation of the first community shop in Singapore – Community Shop @ Mountbatten, set up by Food from the Heart (FFTH). The donation will spread over five years to fund the shop set-up, operations, and food supplies.

    We are committed to helping the needy in a strategic manner. This community shop is another good initiative to ensure that food donations match the needs of beneficiaries, and we will consider scaling up across other parts of Singapore if it is successful, said Koh Ching Ching, OCBC Bank’s head of group brand and communications in a statement.

    On top of the monetary contributions, the bank’s staff will volunteer at the shop when needed. Community Shop @ Mountbatten will enable close to 5,000 eligible households to obtain preferred food items instead of standard packages from charities and donors that may include items they do not require.

    to assist in a year-long exercise to capture data to guide the provision of food items that match the needs of families in need.

    In 2017, OCBC Bank started supporting FFTH by providing eggs to 2,500 households monthly. The on-going project has seen the distribution of close to 900,000 eggs to 3,800 households cumulatively.

    This will help minimize the stockpiling of unwanted food items and reduce food waste. The households that stand to benefit from this initiative include those from the Mountbatten, Macpherson and Marine Parade constituencies.

  • DBS Makes First Transaction on Networked Trade Platform

    DBS Makes First Transaction on Networked Trade Platform

    The platform, which connects players in the trade value chain in Singapore to their counterparts abroad, cuts trade processing time from about one week to a day.

    DBS Bank has completed the first fully digital trade settlement on Singapore’s Network Trade Platform – a $3.5 million letter of credit transaction between car manufacturer Audi and its local distributor Premium Automobiles.

    The first transaction is a «critical step towards transforming documentary trade, of which domestic letters of credit constitute around $150 billion of Singapore’s trade flows», DBS said.

    A second trade among the two parties, valued at $2.8 million, is currently in the works.

    The NTP is part of a wider concerted effort by the Singapore government to drive an industry-wide digital transformation to build a trade and logistics digital ecosystem that connects businesses, community systems and platforms and government systems.

    «Digitalizing a traditionally paper-centric trade ecosystem requires support from like-minded industry partners who embrace technology and change,» said Serene Ho, director of Networked Trade Platform Office (NTPO). She said the office would continue to work with financial institutions and industry partners to «realize Singapore’s vision of a paperless trade ecosystem».

    In the statement, DBS highlighted its other recent initiatives to digitize trade, including the ICC Tradeflow Platform with Trafigura; HeveaConnect, a digital trading marketplace for sustainable rubber; Agrocorp, a digital trade platform for commodities; and YunLiangMeng, a blockchain platform for automotive logistics.