News

Bank Negara Indonesia anticipates a 40 percent growth in its credit card transaction value in 2012 as it intensifies cooperation with merchants and other companies.

HSBC is in the final stages of acquiring the bulk of the Royal Bank of Scotland's Indian business. HSBC expects the Reserve Bank of India, the central bank, to approve the takeover within the next two weeks. Both banks are expected to confirm the approval in separate statements. HSBC will then take ownership of most of RBS's 30 branches in India. The deal, first announced in 2010, is likely to see HSBC pay some US$109 million for RBS' business, which also includes RBS's commercial banking operations in India. The sale is part of RBS' ongoing efforts to reduce its international business to comply with tougher banking rules in the Eurozone. RBS, however, will retain an investment banking presence in India.

India's state-run banks has been directed by the Finance Ministry to assess capital requirements, including investments in JVs or subsidiaries.

The Philippine Savings Bank reported an earnings increase of 50 percent year-on-year to P1.38 billion in the first half.

Siam Commercial Bank and Kasikornbank led Thailand's banks in net profits during the second-quarter.

HSBC is in talks with investors to sell stakes in Karnataka Bank and Federal Bank to free up capital to meet the stringent Basel III norms.

Fitch Ratings Ltd downgrades three of Japan’s largest banks following a cut in Japan’s sovereign debt rating. Fitch said the downgrade was over concerns about Japan’s ability to support its financial sector. It lowered its rating by one notch to ‘A-’ from ‘A’ (the seventh highest on a 22-rating scale) for Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group. The rating reduction, however, comes two month after the trio reported huge increases in annual profits, with Mitsubishi UFJ alone reporting a 68% growth on trading. Together, the three banks have a combined net profit of US$26 billion. The total net profit of all three banks is the largest since the global financial crisis began in 2008. Despite these huge profits, Fitch reduced the three banks’ credit ratings since the improvements weren’t coming from their core business of lending, but from the sales of Japanese Government Bonds that banks rely on since demand for loans remain low. Fitch said it also lowered its rating for Sumitomo Mitsui Trust Bank to the same level as the major banks. “The downgrade...reflects the government’s weakened financial ability to support the banking system as indicated by the downgrade of (Japan’s sovereign rating),” Fitch said in a statement. In May, the agency cut Japan’s credit rating, citing its leisurely efforts at shrinking its mammoth public debt. It downgraded Japan’s long-term rating to “A+” from “AA”, with a negative outlook, noting growing risks for Japan’s sovereign credit profile as a result of high and rising public debt ratios. Fitch previously warned that by the end of this year, Japan’s public debt would stand at 239% of GDP. Fitch last week, however, kept its outlook on the Japanese lenders at stable, which seems to indicate it has no immediate plans to cut their ratings again. The downgrade on Japan’s sovereign rating followed similar downgrades by Moody’s and Standard & Poor’s in the past 18 months.

Siam Commercial Bank's quarterly net profit increased 24 percent to Bt10.07 billion from Bt8.13 billion in the same period last year.

Public Bank's pre-tax profit slightly increased by 2.1 percent to RM2.49 billion in the first half from RM2.43 billion in the same period of 2011.

The large trading gains in 1Q will unlikely be repeated this time around.

Mainland investments in Taiwan’s banking industry account for 31% of all of China’s investments in Taiwan since 2009.

Japan’s largest bank will invest US$300 million to establish a subsidiary in Turkey.

Bank Tabungan Pensiunan Nasional's net income increased by 57.4 percent to Rp 921 billion or $98 billion in the January-June period.

News that Bank Indonesia will make exceptions for higher ownership levels in local banks will reflect positively on the share prices of Maybank and CIMB.

Vietnam's 14 biggest banks accounted for as much as 62% bad debts of the whole banking system, based on yet another research report.

Maybank expressed its long term commitment to Indonesia and that it will continue to play an important role in supporting the growth of its economy and the financial services industry.