SMFG eyes minority stake in Marathon Capital; India said to cut LIC IPO size

TOP NEWS IN BANKING & FINANCIAL SERVICES

* Japan's Sumitomo Mitsui Financial Group Inc., or SMFG, is in talks to acquire a minority stake in U.S.-based investment bank Marathon Capital LLC, Bloomberg News reported, citing people with knowledge of the matter. The deal includes a collaboration agreement between Sumitomo Mitsui Banking Corp. and Marathon. Representatives from both companies declined to comment.

* India's government trimmed the size of the country's biggest IPO for the year by as much as 60% amid a weakened investor demand due to the conflict in Ukraine, Bloomberg News reported. The government will reportedly sell a 3.5% stake in state-run Life Insurance Corp. of India, or LIC, down from 5% planned earlier, and expects to raise up to 210 billion rupees, far lower than the initial target of 500 billion rupees. Representatives from the insurer didn't immediately respond to an email seeking comment and a spokesperson at the Ministry of Finance couldn't be immediately reached.

➤ Nomura shows little intention to cut risk-weighted assets

Nomura CFO Takumi Kitamura cited the U.S.-led higher interest rates, Russia's invasion of Ukraine and the rapid depreciation of the Japanese currency as factors affecting its customers and its own business.

➤ CFPB director says agency studying role of 'big tech' in consumer finance

Director Rohit Chopra of the Consumer Financial Protection Bureau, or CFPB, expressed concerns about the consumer finance business in the U.S. becoming more like it is in China.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

BANKING

* Japan's Nomura Holdings Inc. reported a net income attributable to shareholders of ￥143.00 billion for the fiscal year ended March 31, down 7% year over year. The company's net income attributable to shareholders for the fiscal fourth quarter declined 49% to ￥31 billion from last quarter.

* The Norinchukin Bank is in active discussions with managers of European collateralized loan obligations to return to the market, after leaving in 2019, Bloomberg News reported, citing people familiar with the matter. The bank's spokesperson declined to comment.

* Mitsubishi UFJ Financial Group Inc. will offer a cross-border money remittance service in Indonesia and Thailand through its units, Bank of Ayudhya PCL and PT Bank Danamon Indonesia Tbk, Nikkei Asia reported. The Japanese firm plans to extend the service to Vietnam and the Philippines where it has affiliate banks.

* Indonesian state lender PT Bank Negara Indonesia (Persero) Tbk canceled its planned rights issue plan for the year after determining that its capital is sufficient to support business expansion, Kompas reported, citing Finance Director Novita Widya Anggraini. As of March 2022, the lender's capital adequacy ratio stood at 19.3%.

* Separately, PT Bank Negara Indonesia (Persero) Tbk said it is open to hand over some of its shares in Bank Mayora to its technology partner, Sea Group, Bisnis Indonesia reported, citing CEO Royke Tumilaar. The lender targets to acquire a 63.92% stake in Bank Mayora by April or May.

* Digital financing platform Modalku and used car platform Carro invested in PT Bank Index Selindo to provide financial services to the underbanked segment, Bisnis Indonesia reported. Bank Index has 52 offices in major commercial areas in Indonesia and focuses on micro, small and medium-sized enterprises.

* KEB Hana Bank opened an office in Taipei, becoming the first South Korean commercial bank to establish a branch in Taiwan, The Korea Times reported, citing the lender. The license it obtained in June 2021 allows the bank to operate local currency-based corporate financing and retail banking businesses, according to the report.

* Credit Suisse Group AG plans to name its Asia-Pacific investment banking co-head and Southeast Asia CEO, Edwin Low, as Asia-Pacific CEO, Reuters reported, citing two sources familiar with the matter. Low would succeed Helman Sitohang, who will take on a new role in the company.

* Citigroup Inc. promoted Managing Director Alex Allegos as head of its integrated corporate bank in Australia and New Zealand, pending regulatory approval. The Australian Financial Review's Street Talk blog reported, citing a company memo.

* Commonwealth Bank of Australia said in a release Catherine Livingstone will retire as chairman in August. Nonexecutive director Paul O'Malley will take over as chairman.

* ING Groep NV is said to have raised senior funding for Australian personal loans firm OurMoneyMarket Pty. Ltd.'s warehouse facility, allowing it to increase warehouse funding to A$375 million from A$250 million, The Australian Financial Review's Street Talk blog reported, without citing sources.

FINANCIAL SERVICES

* South Korea's Mirae Asset Securities Co. Ltd. merged its U.S.-based securities unit, Mirae Asset Securities Holdings, with a wholly owned subsidiary, Mirae Asset Wealth Management, to strengthen its brokerage business, The Korea Times reported, citing a public disclosure.

* Japan Exchange Group Inc. unit Tokyo Stock Exchange Inc. decided to establish a council of experts to follow up on the progress of its market restructuring measures and investors' evaluation. The council will advise the Japanese bourse on measures to increase listed firm's corporate value and handle the supply of capital to venture businesses.

* Australian real estate firm Dexus is in advanced talks over terms of a deal for the local operations of AMP Ltd.'s Collimate Capital unit, which could be valued at about A$300 million, Bloomberg News reported, citing people familiar with the matter. The potential deal does not include Collimate Capital's international operations.

* Crestone Wealth Management Ltd. hired Kevin Wan Lum, who was Energy Super's chief investment officer, as its deputy chief investment officer, The Australian Financial Review's Street Talk blog reported.

POLICY AND REGULATION

* The People's Bank of China said in a release it will step up support to the real economy, especially industries and micro, small and medium-sized enterprises severely affected by the pandemic, and coordinate COVID-19 controls with economic and social development. Recent financial market fluctuations were mainly driven by investor expectations and sentiments.

Click here for a summary of indexes on the S&P Capital IQ Pro platform.

As of April 26, US$1 was equivalent to 6.56 Chinese yuan, ￥127.38, 34.28 Thai baht and 76.67 Indian rupees.

Eden Estopace, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.

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