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NAB fiscal Q3 cash earnings fall YOY; KKR mulls IPO of most Indian operations

* Deutsche Bank AG is nearly done restructuring its Asian investment banking business and is set to begin recruiting bankers, Bloomberg News reported, citing regional head James McMurdo. "Yes we did trim, but we trimmed where we thought we were less competitive, or where we thought the opportunity was not that significant and that has largely been completed," McMurdo told Bloomberg.

GREATER CHINA

* Taiwan's Mega International Commercial Bank Co. Ltd. is looking to end a payment clearing mechanism set-up between Taiwan and Iran after November in light of U.S. sanctions on Iran, Reuters reported, citing three people familiar with the matter. A bank official told the newswire that their business with Iran is "too sensitive" and they must no longer become involved.

* S&P Global Ratings raised Taiwan-based SinoPac Financial Holdings Co. Ltd.'s long- and short-term issuer credit ratings to BBB and A-2, respectively, from BBB- and A-3. The agency also raised the long-term ratings of Bank SinoPac Co. Ltd. and SinoPac Securities Corp. to BBB+ from BBB, and affirmed their short-term ratings at A-2. The outlooks on the three companies' long-term ratings are stable.

* Chinese banks granted 1.45 trillion yuan in net new loans in July, with outstanding yuan loans rising 13.2% year over year, against a 12.7% increase in June, Reuters reported, citing data from the People's Bank of China. Meanwhile, M2, a broad measure of the money supply that covers cash in circulation and all deposits, grew 8.5% year over year in July, compared with an 8% rise in June.

JAPAN AND KOREA

* Executives of Japan-based Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. will take voluntary pay cuts for two months to take responsibility for a bond trading scandal, The Asahi Shimbun reported. The Financial Services Agency imposed a fine of about ¥218.4 million on the securities venture after an employee was found to have manipulated government bond futures prices in August 2017.

* Japan's MUFG Bank Ltd. plans to cut the number of its ATMs nationwide by about 20% until 2023 as part of a cost-cutting move, Tokyo's The Nikkei reported. The lender, which currently operates 8,141 ATMs across the country, is looking to lower the number of machines at individual sites and consolidate ATM locations around train stations.

* South Korea-based Shinhan Bank Co. Ltd. is collaborating with Samsung Electronics Co. Ltd. to offer mobile prepaid cards in Vietnam, FNTIMES reported. The new mobile prepaid cards will be available to Shinhan Bank Vietnam Ltd. customers using smartphones enabled for Samsung Pay.

* The Korea Exchange said South Korea-based AJU IB INVESTMENT Co. Ltd. submitted an application for listing on the KOSDAQ market, Yonhap News Agency reported. AJU IB INVESTMENT is a venture capital unit of construction materials manufacturer AJU Corp.

ASEAN

* Fitch Ratings raised PT Bank Danamon Indonesia Tbk's long-term issuer default rating to BBB from BB+, its short-term rating to F2 from B, its support rating to 2 from 3, and its national long-term rating to AAA(idn) from AA+(idn). The Rating Watch Positive in place was resolved and the outlooks on the lender are stable.

* Indonesian lender PT Bank Tabungan Negara (Persero) Tbk is exploring the possibility of issuing debt securities to meet its need for 8 trillion rupiah to 9 trillion rupiah of funds, Bisnis Indonesia reported.

* Manila-based BPI DIRECT BanKo Inc. plans to set up 65 more branches before the end of 2018, allowing it to reach its target of 200 branches, BusinessWorld reported, citing Jerome Minglana, president of the lender. Of the 65 branches that the Bank of the Philippine Islands unit intends to open, 55 will be "branch-lite" offices, Minglana said.

SOUTH ASIA

* New York-based private equity giant KKR & Co. is weighing a potential IPO of most of its operations in India, excluding its private equity business, the Financial Times reported, citing four unnamed sources involved in the process. KKR has not yet finalized the timing of the potential Indian listing.

* U.S.-based Carlyle Group LP, Warburg Pincus LLC, Goldman Sachs Group Inc. and Morgan Stanley are among the companies eyeing a significant minority stake in India-based Ess Kay Fincorp Ltd., two people aware of the development told The Economic Times. The firms plan to invest between US$60 million and US$70 million.

* India's Central Bureau of Investigation and the Reserve Bank of India were given the green light to charge former Punjab National Bank executives Usha Ananthasubramanian and Sanjiv Sharan in connection with a US$2 billion fraud, Mint reported. Ananthasubramanian, who was relieved of her duties as managing director and CEO of Allahabad Bank, was removed from service with immediate effect, sources said.

* State Bank of India has invited bids from asset reconstruction companies and financial institutions for two of its nonperforming assets worth about 24.90 billion rupees, Press Trust of India reported, citing bid documents. The accounts for sale are Bombay Rayon Fashions, which owes nearly 22.61 billion rupees, and Shivam Dhatu Udyog, which owes about 2.29 billion rupees.

* Bangladesh Bank will block 3% of the undisbursed farm loan amount of 10 private lenders from their current accounts with the central bank after the companies failed to hit their farm loan disbursement target in the last fiscal year, The Daily Star reported. The banks include AB Bank Ltd., First Security Islami Bank Ltd. and Meghna Bank Ltd.

AUSTRALIA AND NEW ZEALAND

* National Australia Bank Ltd. said its cash earnings for the third quarter ended June dropped 3% year over year to A$1.65 billion, while its statutory net profit for the quarter stood at A$1.65 billion. The bank's net interest margin fell slightly, which mirrors high short-term wholesale funding costs and ongoing home loan competition.

* Australia's banking royal commission heard that National Australia Bank did not disclose the issue of charging clients for services not rendered to the Australian Securities and Investments Commission in order to avoid scrutiny and being seen as an outlier compared with its rivals, Reuters reported. In 2016, NAB executives knew of the need to refund A$34 million to more than 220,000 clients and sought to find out how much of the amount the company could legally keep, according to internal records presented to the inquiry.

IN OTHER PARTS OF THE WORLD

Middle East & Africa: Turkish lira turmoil hits MEA markets; S&P revises outlook on Rwanda

Europe: Lira woes weigh on European markets; Talanx Q2 profit dips; Fitch hikes Greece

Latin America: Brazil central bank OKs 2 M&A deals; Corficolombiana names new president

North America: Fed fines Citi $8.6M; Wells Fargo's legal woes continue

Global Insurance: Bain bids for UK insurer; proxies back Cigna; Talanx Q2 profit dips

R Sio, Sally Wang, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

The Daily Dose has an editorial deadline of 6:30 a.m. Hong Kong time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.