Australia eyes cryptocurrency asset rules; Korea Eximbank to reopen in Singapore

TOP NEWS IN BANKING & FINANCIAL SERVICES

* The Australian Prudential Regulation Authority said it is developing a longer-term prudential framework for cryptocurrency assets and related activities in consultation with other regulators. The regulator is also establishing initial risk management expectations for all regulated entities that engage in activities associated with such assets, including conducting comprehensive risk assessment and applying robust risk management controls.

* The Export-Import Bank of Korea, or Korea Eximbank, will reopen its office in Singapore, KEXIM Global (Singapore) Ltd., in the form of a corporate entity by June after shuttering operations in the city-state during the 1997 Asian financial crisis, The Korea Times reported. Yu Gwang-hoon will lead the Singapore office of the South Korean lender, which received preliminary approval from the Monetary Authority of Singapore.

➤ Japan IPOs stumble after promising start as market volatility clouds outlook

Japan's IPO market may see further slowdown in the second quarter and beyond, after seven companies shelved their listing plans between February and March and several recently listed firms' shares fell below their offer price.

➤ Big bank revenue falls in Q1 despite uptick in net interest income

Declines in investment banking and mortgage businesses sapped pre-provision earnings growth, although guidance pointed to a big further lift from rising interest rates.

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

EARNINGS SPOTLIGHT

* The net profit of Kasikornbank PCL and its subsidiaries for the first quarter stood at 11.21 billion baht, up 5.5% year over year, the Thai bank said in a release. Its nonperforming loan ratio at the end of the first quarter stood at 3.78%.

* Bangkok Bank PCL saw its consolidated net profit for the first quarter grow 2.8% year over year to 7.12 billion baht, the bank said in a release. Its nonperforming loan ratio as of March 31 stood at 3.3%.

* The consolidated net profit of The Siam Commercial Bank PCL for the first quarter stood at 10.19 billion baht, up 1% year over year, the bank said in a release. The lender's nonperforming loan ratio as of March 31 stood at 3.7%, down from 3.8% at the end of 2021.

* Krung Thai Bank PCL's net profit for the first quarter stood at 8.78 billion baht, up 57.4% year over year, the bank said in a release. The nonperforming loan ratio at the end of the period stood at 3.34%.

* The consolidated net profit of CIMB Thai Bank PCL for the first quarter grew 210.9% year over year to 1.06 billion baht, from 341.3 million baht in the first quarter of 2021, the bank said in a release.

* Bank of the Philippine Islands reported a net income of 8 billion pesos in the first quarter, up 59.6% year over year. It recognized provisions of 2.5 billion pesos as of March 31, falling 30.6% from the 3.6 billion pesos it recognized over the same period last year, the Philippines-based bank said in a bourse filing.

BANKING

* The Goldman Sachs Group Inc. reported Morgan Stanley to Hong Kong's market watchdog over block trades, the Financial Times reported, citing unnamed sources. However, Hong Kong's Securities and Futures Commission has not received any relevant complaint yet, Reuters reported, citing people familiar with the matter.

* HSBC Bank (Taiwan) Ltd. lowered the threshold of its private banking service, from individuals with assets of US$5 million to those with US$2 million, the Taipei Times reported.

* Japan's Shinsei Bank Ltd., a unit of SBI Holdings Inc., said it miscalculated the cost basis of investment trusts held in 2,681 accounts with outstanding balances. The number of affected accounts will likely increase as an investigation is underway for 23,549 accounts with zero outstanding balance and 14,453 closed accounts.

* Abdul Rahman Ahmad, group CEO of CIMB Group Holdings Bhd., said the Malaysian lender plans to invest close to 1.20 billion ringgit in technology and operations as part of a plan to accelerate its digital transformation and further strengthen its technology and operational resilience, according to a bourse disclosure.

* RHB Islamic Bank Bhd. said in a filing it issued 250 million ringgit of subordinated Sukuk Murabahah with a 10-year tenure and noncallable for five years with a fixed yearly interest rate of 4.06%. It will use the proceeds for its Shariah-compliant working capital and general banking purposes.

* The board of Philippine Business Bank Inc. said in a stock exchange filing it approved an increase in its authorized capital stock to 15 billion pesos from 10 billion pesos. The Philippine lender said the increase would help it sustain its business, prepare for future growth, maximize returns and mitigate strategic risks.

* India-based Yes Bank Ltd. is exploring options to sell more than 50 billion rupees in bad loans to National Asset Reconstruction Co. Ltd. before raising fresh funds through a rights issue or a qualified institutional placement, Mint reported, citing two sources.

* HDFC Bank Ltd. will open 150 new branches across the Indian state of Uttar Pradesh this year, Press Trust of India reported, citing Akhilesh Kumar Roy, the lender's branch banking head in the state. Roy said the bank opened over 170 new branches in the state in the last financial year.

* Australia's Westpac Banking Corp. said it is writing down goodwill and capitalized software linked to the superannuation business of A$154 million as part of preparations to exit the unit. It also reported a gain on sale of A$119 million on the sale of Westpac Life-NZ-Ltd. in February as well as a gain on sale of A$119 million related to its motor vehicle dealer finance and novated leasing business in the first half.

* An Australian court fined Westpac and its St. George Bank Ltd. unit A$12 million after it found the lender sent customers to debt collectors but had wrongly applied interest rates on those debts, The Australian reported. Westpac and the Australian Securities and Investments Commission both agreed on the fine.

FINANCIAL SERVICES

* South Korea's Samsung Asset Management Co. Ltd. acquired a 20% stake in exchange-traded fund provider Amplify Investments LLC through its special purpose vehicle in the U.S., the Financial Times reported. Samsung Asset Management will become Amplify's exclusive ETF partner in Asia, the publication noted.

POLICY AND REGULATION

* South Korea's Financial Supervisory Service will probe recent data breaches at Samsung Securities Co. Ltd. and KB Kookmin Card Co. Ltd., saying the firms should compensate impacted customers, The Korea Times reported, citing a statement from the regulator.

* The Reserve Bank of India said nonbanking finance companies will need prior approval from the central bank to issue credit cards. Meanwhile, regional rural banks will be permitted to issue credit cards together with their sponsor bank or other banks.

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

As of April 21, US$1 was equivalent to 76.20 Indian rupees, 52.37 Philippine pesos, 4.30 Malaysian ringgit and 33.89 Thai baht.

R Sio, Kanas Chan, Jonathan Cheah, James Lim and Santibhap Ussavasodhi contributed to this report.

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