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Tag: Finance

  • CIMB Restructures Singapore Business

    CIMB Restructures Singapore Business

    The Malaysian bank is letting go of three business heads in Singapore, following a review of its operations.

    Changes are afoot at CIMB Singapore, as the bank has moved to ax its consumer, commercial and corporate banking heads: Josandi Thor, Yong Jiunn Run and Lai Ven-Li, citing an internal memo viewed by the portal.

    The bank cited the poor performance brought about by the pandemic, which required it to reshape its business portfolios to drive cost efficiency across the bank. The bank said it recently adapted its Forward23 five-year growth plan, launched in 2018, in response to the pandemic.

    CIMB Singapore’s posted losses of 939 million ringgit ($229.42 million) for the first half of the year, largely due to impairments.

    However, there have been talks of restructuring since the middle of the year and the possibility of wider layoffs.

    An observer told the publication that CIMB Singapore CEO Victor Lee, who was appointed earlier this year, was looking to restructure the senior management team and bring in people he had previously worked with.

    Given the business pivots moving forward, we have carefully deliberated with group management on the optimal structure to deliver our Forward23+ strategy. This entails streamlining the leadership structure and reducing the CEO’s span of control to focus on key areas impacting the business, Lee said in the email.

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  • DBS to Make Hybrid Work Arrangements Permanent

    DBS to Make Hybrid Work Arrangements Permanent

    The bank, which has a workforce of 29,000, said these measures are the result of insights gathered from research, deep-dive experiments and employee surveys conducted by a task force on the future of work, which it convened six months ago.

    DBS is transforming the way its employees will work in a post-Covid 19 world, with a number of initiatives that include implementing a permanent hybrid work model that gives employees the option to work remotely up to 40 percent of the time, flexible work arrangements, deploying more project-specific data-driven squads with members from different functions, and creating workspaces that facilitate collaboration, the bank announced on Tuesday.

    The bank will also accelerate employee upskilling, with 7,200 employees, of which 4,300 are in Singapore, to undergo training in emerging areas such as design thinking, data and analytics, artificial intelligence, machine learning and agile practices.

    The announcement follows UOB, which said last week that it would give the majority of its 26,000-strong workforce the choice to work remotely two days a week once COVID-19 restrictions are lifted. Standard Chartered is also rolling out similar measures globally.

    DBS said that over 80 percent of its employees indicated a preference for more open collaboration spaces to facilitate informal discussions and cross-team ideation, which they found difficult to do remotely. As such, the bank will transform its workspaces to enable greater collaboration and ideation, and launch a 5,000-square foot Living Lab that aims to blend the best of physical and virtual workspace configurations.

    As the way we live, bank and work continue to change dramatically, we must address the magnitude of the disruptions before us, Piyush Gupta, DBS CEO, said about the changes.

    Last week, DBS unveiled its new branch at Takashimaya, which aims to cater to customers who want quicker, socially distanced and more personalized branch services, and said it would roll out similar branches across at least one-third of its branch network over the next 12 to 18 months.

  • DBS India to Save Troubled Lakshmi Vilas Bank

    DBS India to Save Troubled Lakshmi Vilas Bank

    The Chennai-based bank, which has a 94-year history in India, with established retail and SME customer base, and a strong presence in South India, has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth.

    India’s banking regulator imposed a 30-day moratorium Tuesday on struggling Lakshmi Vilas Bank (LVB), superseded its board of directors and announced a draft scheme for the amalgamation of the bank with DBS Bank’s India subsidiary.

    The financial position of Lakshmi Vilas Bank has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth. In the absence of any viable strategic plan, declining advances and mounting non-performing assets (NPAs), the losses are expected to continue,» the Reserve Bank of India (RBI) said.

    To support the amalgamation, DBS will inject INR 2,500 crore ($345 million) into DBIL if the scheme is approved. This will be fully funded from DBS’ existing resources, the bank said.

    The proposed amalgamation will provide stability and better prospects to Lakshmi Vilas Bank’s depositors, customers, and employees following a time of uncertainty. At the same time, the proposed amalgamation will allow DBIL to scale its customer base and network, particularly in South India, which has longstanding and close business ties with Singapore, DBS said in a statement on Wednesday.

    DBS has been in India since 1994. To expand the franchise and build greater scale, DBS converted its India operations to a wholly-owned subsidiary in 2019, DBIL. The bank is now present in 24 cities across 13 states.

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  • StanChart Streamlines Business in Global Restructuring

    StanChart Streamlines Business in Global Restructuring

    Standard Chartered announces a reorganization into fewer but larger units and also confirms the exit of its global wealth head.

    Effective January 1 next year, Standard Chartered will combine the private banking business with retail banking and wealth management in a new consumer, private and business banking (CPBB) unit, according to a statement. The current regional chief executive of ASEAN and South Asia, Judy Hsu, will lead the CPBB unit.

    This combined business will grow the group’s affluent client base, further develop innovative digital banking solutions for mass-market and small businesses, and deliver further efficiencies, the bank said in a statement.

    The bank also confirmed the exit of former private banking head Didier von Daeniken, whose role will be overseen by Hsu in the interim until a new permanent appointment has been made.

    Under on Daeniken’s leadership the private bank returned to profitability in 2019 and was the bank’s fastest-growing segment, the statement said.

    With substantially upgraded digital products and services and improved productivity, we have strong foundations and good momentum. We will bring together our private bank with our priority banking business under Hsu’s leadership, while retaining their separate brands and propositions, to accelerate growth and create an affluent client continuum to better serve our clients.

    The CPBB unit will be organized around two client groups and two regions. In addition to Hsu’s temporary role as the head of private and priority banking, Vishu Ramachandran will lead personal and business banking. Wealth Management will continue to be led by the newly appointed ex-Bank of Singapore executive Marc Van de Walle.

    Regionally, Samir Subberwal will lead CPBB for Asia while Kariuki Ngari will lead CPBB for Africa, the Middle East and Europe, in addition to his Kenya and East Africa CEO responsibilities, also until a permanent appointment has been made.

    In addition, Rosalind Ng will lead client experience and strategic business enablement.

    In Asia, the bank is also combining its three regional units – ASEAN, South Asia alongside Greater China and North Asia (GCNA) – into a single one led by Ben Hung, currently GCNA chief. The unit is made of cluster CEOs who will be joining the Asia management team alongside Samir Subberwal, GCNA retail banking head; Paul Skelton, global head, client coverage, commercial, corporate and institutional banking; and John Tan, global head, financial markets regions.

    In north Asia, cluster CEOs include Jerry Zhang for China and Japan; Mary Huen for Hong Kong, Taiwan and Macau; Park Jong Bok for Korea; and Anthony Lin for the Greater Bay Area.

    And in the south and southeast Asia region, the bank named as cluster CEOs Zarin Daruwala for India and South Asia Markets (Bangladesh, Nepal and Sri Lanka); Andrew Chia for Indonesia and ASEAN Markets (Australia, Brunei and the Philippines); and Patrick Lee for Singapore and ASEAN Markets (Malaysia, Vietnam, Thailand).

    CEO of Europe and Americas, Torry Bernsten, has also been named as chief of the former market and the U.K.

    Steve Cranwell will succeed Bernsten as CEO of the Americas and report to him.

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  • Singapore to Raise Standards for Issue Managers

    Singapore to Raise Standards for Issue Managers

    The Association of Banks in Singapore has announced revised due diligence guidelines for companies planning to list on the Singapore Exchange, with immediate effect.

    Last revised in 2016, the new set of guidelines set out expectations and recommendations on due diligence work that issue managers and full sponsors carry out during the initial public offer (IPO) / reverse takeover (RTO) and listing process.

    They were developed in close collaboration with the Singapore Exchange Regulation (SGX RegCo).

    Key updates include: An increased focus on the assessment of the adequacy and effectiveness of the issuer’s internal controls to meet its business needs and challenges as a listed company; the assessment of the sustainability and viability of the issuer’s business; and targeted guidelines for due diligence on issuers operating in specialized, restricted or niche industries, and/or in higher-risk jurisdictions.

    Ong-Ang Ai Boon, director at the Association of Banks in Singapore (ABS), said the revised guidelines are necessary to ensure they are relevant to the constantly changing economic climate.

    With the increase in issuers from more nascent sectors such as technology that are seeking equity capital, it becomes especially important for issue managers, full sponsors and their professionals to adapt due diligence practices that address the particular needs of

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  • Non-performing loans surge due to pandemic

    Non-performing loans surge due to pandemic

    Most banks have seen non-performing loans rise by at least 30 percent in the first nine months as the Covid-19 pandemic hit businesses and individuals. Of 15 commercial banks that have published their third-quarter results, 14 reported a surge in non-performing loans by 30 percent or more.

    State-owned VietinBank posted the highest rise of 66 percent to VND17.95 trillion ($779.36 million), followed by TPBank at 60 percent and MB Bank, 39 percent.

    BIDV, the largest bank in Vietnam by an asset, saw non-performing loans rising 16 percent to VND22.5 trillion, the highest among all lenders.

    Bank leaders say that the rising number of low-quality debt is unavoidable amid the Covid-19 pandemic when many businesses went into financial difficulties due to social distancing measures and dwindling demand for goods and services.

    Nguyen Dinh Tung, CEO of Orient Commercial Bank (OCB), said although the value of non-performing loans has surged, the ratio of it over total debt is still under control.

    But economists say that these figures will continue to worsen next year.

    Economist Nguyen Tri Hieu said that a circular issued by the State Bank of Vietnam in March has allowed banks to lower or cut interest rates on loans to support borrowers amid the pandemic and allow them to delay their payback time.

    Although this circular has given businesses more time to recover from Covid-19 impacts, the loans they had acquired will eventually have to be paid and those unpayable will be turned into bad debts for banks, he said.

    “Banks cannot escape from losing some of their loans in the future.”

    As the global situation of Covid-19 is still intense globally, Vietnamese businesses will still have financial difficulties in this and next year, and therefore the central bank should prolong its low-interest credit program to support local companies, Hieu said.

    Banks, meanwhile, should increase their provisions for doubtful and bad debt to protect themselves from unavoidable risks in the future, he added.

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  • Deloitte Ex-Partner Wants Appeal Heard

    Deloitte Ex-Partner Wants Appeal Heard

    A former star consultant of Deloitte in Switzerland is seeking to revive an appeal of his dismissal. He was let go last year amid accusations of bullying and expense irregularities.

    David Joseph, a Dutch-born forensics expert who was let go by Deloitte last year, wants a court to revive his challenge to his forced retirement, according to legal blog Law 360. A spokesman for Joseph couldn’t immediately be reached for comment.

    The case is noteworthy because it revealed the inner workings of a highly secretive, lucrative industry which has become indispensable to Swiss banks. Joseph reportedly earned Deloitte more than $200 million in fees as the point person for Credit Suisse’s efforts to cleanse itself of U.S. tax cheats from 2012 until relatively recently last year.

    Joseph was reportedly first cautioned back in 2015 for taking a belligerent attitude towards colleagues and acted entitled to expense reimbursements for top performers of his team. The consultant denied all of the accusations, arguing Deloitte had treated him unfairly and unjustly.

    He is now haggling in a British court over whether he asked Deloitte for a review of his dismissal too late. Joseph previously argued he couldn’t be physically present at the time due to illness, but had lodged a written memorandum listing his objections.

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  • StanChart to Rollout Flexible Working Option

    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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  • DBS Profits Fall in Third Quarter

    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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  • Standard Chartered Names Regional Head of Private Banking

    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.

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  • OCBC Earnings Drop Significantly

    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.

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  • UOB deepens partnership with VMware to enable safe and effective

    UOB deepens partnership with VMware to enable safe and effective

    As the COVID-19 pandemic resulted in the majority of the workforce shifting to home-based work, United Overseas Bank (UOB), a leading bank in Asia, collaborated with VMware to enable the Bank to continue its innovation drive without disruption. UOB was one of the fastest organizations in ASEAN to deploy a secure virtual desktop – UOB DevTop – for its team of 3,000 information technology (IT) developers, having done so in just 21 days instead of the up to three months it would typically take. Designed to meet the Bank’s robust security standards and to minimize risks, UOB DevTop provides IT developers with a secure sandbox to test and to implement upgrades to UOB’s digital services and solutions. This enabled its IT developers to meet the Bank’s software development schedules without disruption or delay as they move to work from home within weeks.

    UOB developed UOB DevTop by integrating VMware’s virtual desktop solution VMware Horizon with UOB’s highly secure IT and hybrid cloud infrastructures. This infrastructure was vital to the Bank being able to accelerate the deployment of UOB DevTop as the Bank did not need to install hardware servers on its premises even as it expanded its computing capacity to meet the surge in load with 3,000 IT developers working remotely.

    Through safer and remote access to the Bank’s development environment, UOB’s team of IT developers achieved significant milestones for several software development projects this year. Within the last three months alone, UOB has launched three industry-leading innovative solutions.

    In August, UOB launched it ASEAN digital bank, TMRW, in Indonesia. In September, the Bank launched its all-in-one mobile banking app UOB Mighty in Malaysia, featuring a new user interface and features that tap artificial intelligence to help customers spend and save more wisely. In the same month, UOB also launched UOB Infinity, a new mobile app for its clients across regions that provides these businesses with intuitive features such as a customizable desktop, cash management capabilities, and trade services to meet their banking needs.

    Ms Susan Hwee, Head of Group Technology and Operations, UOB, said, “As the majority of our colleagues across the UOB Group shifted to home-based working during the pandemic, we prioritized equipping them with the right tools and resources to enable a quick and seamless transition as we continued to serve our customers without disruption.

    Tapping our technology and cloud infrastructure, coupled with VMware’s solutions, we developed and deployed a more secure virtual desktop solution at an unprecedented pace and scale. This enabled our team of 3,000 IT developers to continue to support the Bank’s business activities and innovation drive without compromising on security.”

    Mr Sanjay K. Deshmukh, Managing Director and Vice President, Southeast Asia and Korea,VMware, said, “Digital technologies have shone through during this period of uncertainty as an effective enabler for organizations to conduct business, engage employees and connect with customers. We are excited to continue our partnership with UOB, supporting their operational needs while enabling them to comply with the bank’s stringent security and data privacy requirements.

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  • UOB Tie-Up to Nurture ESG Mindset Among Employees

    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

  • Revolut Ramps Up Growth Efforts in Singapore

    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.

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  • Fintech Launches Low-Cost Customizable Portfolio

    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.

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