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CBA FY profit down 4.7% YOY; AMP mulls bank sale; China eases bank trading rules


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CBA FY profit down 4.7% YOY; AMP mulls bank sale; China eases bank trading rules

* Commonwealth Bank of Australia's cash net profit after tax for the full year ended June 30 fell 4.7% year over year due to customer remediation fees, fee removals and risk and compliance. The Australian bank reported cash profit after tax from continuing operations of A$8.49 billion, down from A$8.92 billion in the previous fiscal year. Basic EPS on a cash basis declined to A$4.808 from A$5.103.


* The China Securities Regulatory Commission has relaxed certain rules to allow more banks to engage in bond trading in the stock exchange. The regulator said the decision is aimed at broadening real-economy financing channels and promoting financial stability.

* The People's Bank of China expressed "deep regret" over the U.S. decision to label China a currency manipulator and stepped in to contain the weakness in the yuan, which depreciated below 7 per dollar for the first time in more than a decade Aug. 5. The central bank separately said it will issue two batches of yuan-denominated bills in Hong Kong on Aug. 14, worth a total of 30 billion yuan.

* Industrial Bank Co. Ltd. is collaborating with Ant Financial Services Group in areas including wealth management, investment banking, asset management, consumer finance and financial technology, Securities Times reported. The two firms are also looking to enhance cooperation on mobile banking and app development, the publication noted.

* Moody's said Industrial & Commercial Bank of China Ltd. scored the highest standalone credit profile among the largest banks by assets in Brazil, Russia, India and China — a group of emerging economies known as BRIC. ICBC's long-term deposit rating of A1 and baseline credit assessment of baa1 are supported by China's macroeconomic conditions, which is the strongest among the BRIC nations, Moody's added.


* Fukuoka Financial Group Inc. is looking to establish a digital bank by as early as 2020, The Mainichi Shimbun reported. If the plan pushes through, it would be the first digital bank to be set up by a Japanese regional lender.

* Nomura Securities Co. Ltd. overtook Goldman Sachs Group Inc. as the second top M&A adviser in Japan in the second half of 2019 after handling 54 deals worth a combined ¥1.83 trillion, The Nikkei reported, citing data from Refinitiv. The Nomura Holdings Inc. unit rose from fifth place a year earlier, and now comes second after Mitsubishi UFJ Morgan Stanley Securities Co. Ltd.

* Heungkuk Life Insurance Co. Ltd., IBK Capital Corp. and 10 other consumer finance companies have received regulatory sanctions for violating rules on transactions with controlling shareholders, The Financial News reported, citing South Korea's Financial Supervisory Service.


* The board of the Stock Exchange of Thailand has decided to appoint Chaiyawat Wibulswasdi chairman, effective Aug. 6, the bourse operator said in a release.

* The Bank of Thailand and the State Bank of Vietnam signed two memoranda of understanding to collaborate in the areas of banking supervision and financial innovation, the Thai central bank said in a release.

* Shareholders of Siam Commercial Bank PCL approved the sale of a 99.17% stake, or about 65 million shares the bank holds in SCB Life Assurance PCL to FWD Life Insurance PCL, the bank said in a release. As part of the agreement, the bank will market FWD Group's life insurance products to its customers for 15 years.

* The Monetary Authority of Singapore released legally binding regulations to strengthen the financial sector's cybersecurity standards. Under the new cyber hygiene rules, financial institutions will need to establish and implement robust security for IT systems and make sure their system security is updated on a timely basis.


* Central Bank of India reported a net profit of 1.22 billion rupees for the first quarter ended June 30, compared to a loss of 15.16 billion rupees in the prior-year period. EPS for the quarter improved to 23 paisa from a loss of 5.81 rupees per share.

* The Indian government filed a petition with the National Company Law Tribunal to freeze the bank accounts and other assets of the former auditors of debt-laden company IL&FS Financial Services Ltd. amid an ongoing investigation of alleged fraud in the company, The Economic Times reported. Deloitte and BSR Associates, a KPMG affiliate, are among the auditors included in the petition.

* India's finance ministry expects to issue guidelines that would encourage public sector banks to buy high-rated pooled assets of financially sound nonbanking finance companies amid a liquidity crunch in the sector, Indo-Asian News Service reported, citing Finance and Banking Secretary Rajeev Kumar. The new measures will offer banks one-time partial guarantees on the assets that they acquire.


* AMP Ltd. is in talks with investment bankers about a potential sale of its banking arm for about A$2 billion as it considers options to raise capital after a failed attempt to sell its life insurance unit for A$3.3 billion, The Australian reported. A spokeswoman from the company declined to comment on the report, the publication added.

* National Australia Bank Ltd. is expected to provide updates on its plan to exit its MLC Ltd. wealth business in the week of Aug. 12, The Australian reported, citing a company spokesperson. The bank initially planned to complete the spinoff by the end of 2019, but moved it to until 2020.

* Allianz Australia Ltd. will no longer underwrite consumer credit insurance that it previously offered through banks and luxury car dealers as it seeks to exit the market, The Australian Financial Review reported.


Middle East & Africa: Banque Saudi Fransi Q2 profit rises; IPO of Egypt's Fawry oversubscribed

Europe: HSBC cutting jobs, reaches €300M settlement; Novo Banco selling €795.8M loans

Latin America: Bancolombia's Q2 profit surges 58.22%; Brazil's IRB, C6 ink reinsurance deal

North America: FIS Q2 adjusted EPS climbs YOY; JPMorgan confirms Chinese JV majority stake

Global Insurance: Hurricane forecast revised; Greenlight hires Credit Suisse; Athene's $4B fund

R Sio, Emily Lai, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

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