Tag: financial

  • UBS Fined for Rigging European Bond Trading

    UBS Fined for Rigging European Bond Trading

    The European Commission censured seven investment banks for maintaining a cartel on European government bond-trading. The Swiss bank was hit with the largest fine, despite cooperating.

    Brussels extracted a total of 371 million euros ($453 million) on UBS, UniCredit, and Nomura for a seven-bank ring which colluded between 2007 and 2011 on prices and volumes of European government bonds, the commission said in a statement on Thursday.

    The other banks censured in the cartel were not fined: Natwest had blown the whistle on it, while Bank of America and Natixis escaped because their wrong-doing fell outside of a time period for which fines could be levied. Lastly, WestLB, now Portigon, generated zero revenue from the scheme in the last business year, capping its potential fine at nil.

    UBS, which racked up the biggest fine (174.2 million euros), told domestic agency AWP that it is considering an appeal. The fine will take roughly $100 million out of UBS’ second-quarter results, it said.

    The Swiss bank’s fine would have been 45 percent higher had it not cooperated with the commission, overseen by Brussels’ anti-trust chief Margrethe Vestager. The commission fined Nomura 130 million euros and Italy’s Unicredit, now run by UBS’ former top investment banker Andrea Orcel, 69 million euros.

  • HSBC AM Names Asia Head of Credit Research

    HSBC AM Names Asia Head of Credit Research

    HSBC’s asset management arm appoints a new head of credit research in Asia amid an ongoing expansion across its product range and distribution capabilities in the region.

    HSBC Asset Management appoints Seok Poh Yeoh as head of credit research for Asia, according to a statement, effective immediately.

    In her Hong Kong-based role, Yeoh reports locally to head of Asian fixed income Elizabeth Allen as well as Paris-based global head of credit research Tina Radovic.

    Yeoh has 16 years of industry experience and was most recently a financial and corporate credit research analyst at Credit Suisse. She rejoins HSBC Asset Management after first joining in 2012 as a financial analyst.

    The latest hire follows announced ambitions by HSBC Asset Management to enhance its platform in mainland China, India, and Southeast Asia, most notably for the high net worth product range across alternatives, sustainability, and thematic equities.

    According to the bank, HSBC Asset Management has Asian fixed income assets under management totaling nearly $73 billion as of March 31 this year.

  • DBS Doubles Quarterly Earnings

    DBS Doubles Quarterly Earnings

    The board is recommending an interim dividend of 18 cents per share, to which the scrip dividend scheme will be applied. Net profit at DBS grew to S$2.01 billion ($1.52 billion) for the January-March period, up from S$1.01 in the previous quarter and 72 percent higher year-on-year, according to first-quarter earnings posted on Friday.

    It cited strong business momentum and stabilizing asset quality as behind the record quarter – loans grew 3 percent and deposits increased 2 percent from the previous quarter, while fee income rose 28 percent on-quarter to a record S$953 million and Treasury Markets income reached a new high. Bad loans were also at pre-pandemic levels.

    Wealth management fees also grew 24 percent to a record S$519 million on the back of strong investor demand across a wide range of investment products in a low-interest rate environment, DBS said.

    This has been an extraordinary quarter for our business as we fired on all cylinders, Piyush Gupta, DBS chief executive, said in a statement.

    During the quarter, DBS grew its franchise in the Greater Bay Area with a stake in Shenzhen Rural Commercial Bank, and announced the development of Partior – an open industry platform with Temasek and J.P. Morgan that aims to reimagine and accelerate value movements for payments, trade, and foreign exchange settlement.

    The global economic rebound is strengthening and we are bullish about prospects for the coming year, Gupta added.

  • DBS Deepens Roots in China

    DBS Deepens Roots in China

    The bank will accelerate its expansion in the rapidly growing Greater Bay Area with a stake in Shenzhen Rural Commercial Bank.

    DBS has entered into an agreement to acquire a 13 percent stake in Shenzhen Rural Commercial Bank in a deal valued at RMB 5.286 billion ($813.2 million), as part of its strategy of investing in its core markets, the bank announced on Tuesday evening.

    The deal for 1.35 billion new shares at RMB 3.91 ($0.60) per share, representing 1.01 times the book value per share as of 31 December 2020, will make DBS the largest shareholder of SZRCB. DBS will use internal cash resources to fund the investment, which is expected to complete when the deal is approved by regulatory authorities in China.

    Established in 2005, SZRCB currently operates one of the largest bank branch network in Shenzhen, with 210 branches and over 3,600 employees servicing over 5 million active retail customers and over 170,000 active corporate customers.

    Approximately 40 percent of its loans are in the retail segment and the remaining 60 percent are in corporate segment, largely to Shenzhen-based small-and-medium-enterprises. The bank has RMB 519 billion in assets and RMB 404 billion in deposits, and generated RMB 4.8 billion in net profit as of 31 December 2020.

    We see this as a highly complementary strategic partnership that will allow us to double down on the GBA and leverage on SZRCB’s local network and know-how to deepen DBS’ GBA strategy. At the same time, we would be able to support the continued growth and digital transformation of SZRCB through our regional presence and digital capabilities, Piyush Gupta, DBS CEO, said in the announcement.

  • HDBank profit up 87 pct

    HDBank profit up 87 pct

    HDBank reported a 67 percent increase year-on-year in consolidated profit in the first quarter to over VND2 trillion ($86.9 million).

    Its outstanding loans at the end of the quarter were VND198 trillion, up 5 percent from the end of last year. The parent bank’s profit was VND1.8 trillion, up 87.7 percent. The lender also owns consumer finance company HD SAISON.

    It targets full-year profits of VND7.28 trillion, an increase of 25 percent from 2020, and credit growth of 26 percent. It plans to pay a 25 percent dividend for 2020 in the form of stocks.

    HDBank is among the few banks that have not signed an exclusive bancassurance contract.

    The bank recorded VND5.8 trillion in consolidated profit last year, a year-on-year increase of 15.9 percent.

  • Singapore-Based Compliance Specialist Partners HPE

    Singapore-Based Compliance Specialist Partners HPE

    Tookitaki is partnering with Hewlett Packard Enterprise to provide the financial sector with enhanced anti-money laundering capabilities using artificial intelligence and machine learning.

    The offering, delivered via HPE GreenLake for Big Data, enables financial institutions to create a central big data platform capable of rolling out anti-money laundering solutions centered around data analytics, the Singapore-based regtech said in a statement.

    The announcement follows a pilot with UOB that covered transaction monitoring and name screening, in which the models achieved 96% prediction accuracy in the high priority category, the announcement said.

    Abhishek Chatterjee, Co-Founder and CEO, Tookitaki, said that banks need high module accuracy systems to ensure they are staying compliant at a time when organizational growth and business continuity are crucial to success and highlighted the benefits of an enhanced AML solution delivered with the flexibility of an as-a-service model.

    Founded in 2014, Tookitaki’s revenue growth has surpassed 300 percent over the last two years. It raised $19.2 million in Series A funding in 2019, which the startup said would be used to grow its presence across the U.S. and Asia-Pacific.

  • SGX Joint Venture to Launch Asian Bond Trading Platform

    SGX Joint Venture to Launch Asian Bond Trading Platform

    The XinTru joint venture with corporate bond trading platform provider Trumid and private equity firm Hillhouse Capital, will launch a new electronic bond trading platform later this year.

    This partnership combines Trumid’s cutting-edge technology and fixed income expertise, SGX’s deep experience in Asian financial market infrastructure and electronic trading, and Hillhouse’s expertise and network in Asia and the financial services sector», SGX said in a statement on Monday.

    The Trumid XT platform will connect liquidity from SGX’s Bond Pro and Trumid’s Market Center in the U.S. to provide a network for Asian fixed-income trading. This will enhance international access to Asian bond markets and facilitate Asian investor participation in U.S. and global emerging market credit, SGX said.

    XinTru’s independent management team includes chief revenue officer Ben Falloon who brings 20 years of Asia fixed income experience and relationships, and chief operating officer Mark Leahy, who has significant experience building and operating capital markets businesses in the region.

    SGX led a $53 million growth equity financing round in the New York-based startup in 2018, and subsequently joined Hillhouse Capital in another round of investment in 2019 when the firm took a minority stake in Trumid.

    Our early investment in Trumid paved the way for this deeper collaboration to advance the overall bond market infrastructure in Asia,” said SGX chief Loh Boon Chye.

    Trumid experienced exceptional growth in 2020, with trade volumes growing 374 percent year-on-year.

  • Crypto Rumbles Central Bank Sovereignty

    Crypto Rumbles Central Bank Sovereignty

    The private sector has long driven innovation on digital currencies but as fintech’s plans became more powerful, central banks sprang to attention. Their main concern? Keeping monetary policy in their purview.

    The most tantalizing tales in cryptocurrencies this year weren’t written by Libra or bitcoin, but by national or supranational projects like the digital euro. While investors raced to get in on bitcoin’s record-smashing highs, the government projects warrant a closer look.

    What central banks are trying to do is replace the storage carrier of money with a new one – cloud instead of long-play (LP), so to speak. The aim is to kill several birds with one stone.

    The first is to stave off a private sector-led attack on central bank sovereignty. The second is enabling efficiencies in the financial system, and the third is to lay a foundation for seamless oversight of monetary transactions.

    Taken in turn: a central bank ensures financial stability while overseeing systemically-relevant market infrastructure. To hand over a central instrument in its arsenal is to jeopardize its own mandate. Replacing a country’s own currency with another – which frequently happens in unstable countries, where dollars effectively become the leading currency – is a good example, or when a privately-controlled alternative takes over for reasons of efficiency.

    Admittedly, crypto is far from this scenario, but the thought experiment is a worthwhile one. We need to assume that multinational companies like Amazon or Alibaba will in future control and executive an enormous portion of private consumption: they own the value chain, from manufacturer to end consumer. They are intimately familiar with customer needs and aren’t shy about cultivating the data with the help of artificial intelligence.

    The next logical step in cementing this position is to introduce their own currency. This would dramatically simplify the purchasing process as well as create a vast common currency area spanning producer, commercial dealer, suppliers, to consumers.

    None of this is a problem as long as employees are paid in U.S. dollars, euros, or krona and use a major currency to buy a trading one. But if they are, for example, partly paid in Amazonas or Alibabas, central banks cede part of their authority to the private sector. The initial hostile official response to Libra is the logical consequence of this.

    The Swiss central bank’s «Project Helvetia» as part of the BIS’ innovation hub sidesteps the first question in favor of tackling the second, central digital revolution issue. Traditional banks are still grappling with the conversion to digital banking: continually under siege from newer upstarts without any historical baggage and far zippier organizations.

    The Swiss National Bank’s digital franc is meant to enable efficiency gains and simplify monetary transactions. This is a much more defensive strategy than other central banks have elected – notably the European Central Bank, Sweden’s Riksbank, or the People’s Bank of China – but the pragmatic approach fits the Swiss system of thinking well.

    In lockstep with infrastructure provider SIX, which belongs to the banks, genuine and measurable advances would represent a great step towards a digital future. The Swiss stock exchange operator plans to go live with its digital asset trading venue, SDX, next year. A digital Swiss franc would suit the SNB’s financial intermediaries perfectly.

    Switzerland is hardly ready for the third and conclusive step: a digital version of cash is being actively discussed elsewhere (namely in Sweden and China). Some aspects of digital money – efficiency versus cash and crucially, the traceability of transactions – are too tempting to resist.

    Of course, all types of criminals could be disrupted in their activities with such a step. But the accompanying supervision of citizens contradicts Switzerland’s understanding of government and privacy – and should be rejected. The complete replacement of cash in Europe and the U.S. isn’t on the horizon either for the same reasons, even if digital money eventually will find a niche besides paper.

    Despite the rapid advancement of the topic in recent months, we’re still at the dawn of developments. 2021 is sure to bring promising new developments, and the ECB is likely to devote considerable resources to rolling out a digital euro (or ultimately spike the project).

    In Switzerland, SDX and «Project Helvetia» are poised to take their next steps. The U.S. has been noticeably absent in the discussion, though January’s change in administration may mark a new tack in digital assets.

  • UBS Celebrates Singapore Anniversary with Sustainability Splash

    UBS Celebrates Singapore Anniversary with Sustainability Splash

    The Swiss major is celebrating its 50th anniversary in Singapore in 2020, with the launch of an immersive art installation and new commitments focused on sustainability.

    UBS rolled out an immersive art installation focused on sustainability at its new office outside Singapore’s central business district at 9 Penang Road.

    It features 3,600 butterflies and birds made from repurposed bottles by UBS staff and other external partners. And the bank hopes the installation can make it into the Singapore Book of Records as the «largest display of butterflies made from recycled plastic bottles.

    According to UBS, the move to launch the art display was to demonstrate its commitment to sustainability and community engagement, with efforts extending beyond just cosmetics.

    UBS Singapore will match 10 percent of the total amount raised and continue to support and collaborate with our local community partners to make a significant and lasting impact to local communities,” said Michelle Per, UBS Singapore’s community affairs lead, according to a report.

  • Wirecard Seeks Buyer in Singapore

    Wirecard Seeks Buyer in Singapore

    The firm was ordered to cease payment services in the country in October, and to return all customers’ funds, amid an investigation into missing funds.

    Payments services provider Wirecard is seeking a buyer for its Singapore entity and has at least one party interested in acquiring the business, according to a report on Tuesday.

    The company has lost about one-third of its staff since it was ordered to cease its core business activities in Singapore, where it provided payment processing services to 1,900 companies, a report said.

    At its peak, Wirecard employed more than 350 people in Singapore, where it has a call center, sales deployment team, regional commercial team, and project management office. As of October, it still had 250 people, including 180 locals, on its payroll, who are working from home and supporting its businesses in Hong Kong and Indonesia.

    Wirecard is at the center of one of the region’s biggest corporate accounting scandals in recent years, having admitted that €1.9 billion ($2.25 billion) is missing from its financial accounts.

    Its parent company in Germany has filed for insolvency, and its CEO Markus Braun as well as other top executives have been arrested, while former operating chief Jan Marsalek remains missing.

    So far, one Singaporean has been indicted – a director of a local accounting firm that allegedly helped Wirecard falsify letters about the funds held in its escrow accounts.

  • Singapore Beefs Up Wealth Management Talent Pipeline

    Singapore Beefs Up Wealth Management Talent Pipeline

    The Private Banking Industry Group launches a talent development initiative aimed at undergraduate students in Singapore.

    The Private Banking Industry Group (PBIG) in Singapore will look to «enhance the employability and job readiness of students entering the workforce» by offering 200 undergraduate traineeship positions over the next three years, according to a statement.

    Training will be related to in-demand roles such as relationship managers, product managers, data analysts, business risk managers and cybersecurity analysts.

    The PBIG is made up of industry leaders in the city-state, including 14 banks, and is currently co-chaired by the Monetary Authority of Singapore (MAS) and UBS.

    Candidates will be selected from a relevant program, of which 30 percent of the duration will be dedicated to the traineeship.

    The longer traineeship period will allow banks to develop more meaningful structured on-the-job training to complement the academic courses taken by the trainees, allowing them to be better equipped for full-time roles upon graduation, and stand a better chance to pursue a career in the wealth management sector, the statement said.

    Supporting financial institutions will benefit from a scheme that will fund 80 percent of the internship stipend, capped at $1,000 ($750) per month, for each trainee.

    The initiative, entitled Build, Encourage, Nurture (BEN), is being driven in response to both the growth and diversity in demand for talent within the financial services.

    The initiative will provide a sustainable pipeline of job-ready talent to Singapore’s private banking industry, which is essential for the sector’s growth, said Gillian Tan, an assistant managing director at MAS.

    We believe that to stay competitive in an ever-changing and disruptive future, it is critical for the industry to develop and nurture a workforce of the future with the right sustainable skills that can further enhance the financial industry and Singapore’s role as a key global financial center, added August Hatecke, APAC co-head of wealth management at UBS.

  • 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.

  • HSBC Sues Hin Leong Owners

    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

  • 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

  • Chinese Regulators Add More Hiccups for Ant IPO

    Chinese Regulators Add More Hiccups for Ant IPO

    The much anticipated blockbuster listing of Chinese fintech giant Ant continues to face obstacles, this time from mainland regulators claiming a conflict of interest with its payment arm Alipay.

    The China Securities Regulatory Commission (CSRC) is looking into Alipay’s role over concerns of a potential conflict of interest, according to a «Reuters» report citing unnamed sources.

    Alipay was allegedly the only third party channel which allows access to the five Chinese mutual funds investing in the IPO.

    The efforts have proven effective as the channel has lured more than 10 million retail investors into the five mutual funds that were launched in late September, creating an alternative to traditional channels like banks and brokerage houses.

    According to the report, the probe is not expected to derail the IPO though it has delayed plans for its Shanghai listing already as Ant had hoped to obtain CSRC approval last month.

    And in Hong Kong, where Ant will conduct the other leg of its dual listing, progress was also slowed with original plans for a September 24 hearing with the local bourse’s listing committee and an official IPO after the Chinese National Day holiday that ended on October 8. Sources claim that Ant is aiming for a Hong Kong hearing in the coming days.

    Separately, Republican senator Marco Rubio called for the Trump administration to take a serious look at delaying Ant Group’s IPO, adding that it was outrageous that Wall Street is rewarding the Chinese Communist Party’s blatant crackdown on Hong Kong’s freedom and autonomy.