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CBA full-year cash profit up 5%; Sumitomo Mitsui, Yahoo Japan to form fintech JV


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CBA full-year cash profit up 5%; Sumitomo Mitsui, Yahoo Japan to form fintech JV

* Commonwealth Bank of Australia's full-year cash net profit climbed 5% year over year to A$9.88 billion, or A$5.744 per share, from A$9.45 billion, or A$5.548 per share. On a statutory basis, the bank's net profit rose 8% year over year to A$9.93 billion, or A$5.776 per share, from A$9.22 billion, or A$5.423 per share. The lender also confirmed it was in talks with potential buyers of its life insurance businesses in Australia and New Zealand.

* Mizuho Financial Group Inc. is looking to grow its business managing overseas corporate money by US$100 billion in fiscal 2017-18, as it seeks new ways to bolster its international earnings, Bloomberg News reported, citing Zenichi Tanakamaru, senior vice president of the group's global corporate department.

* Fuyo General Lease Co. Ltd. is entering the U.S. aircraft leasing market with 10 airplanes to be available for lease in the U.S. out of 50 it will own in 2021, the Nikkan Kogyo Shimbun reported.


* Ma Jun, chief economist at the People's Bank of China, will leave his post after a transitional period, Reuters reported, citing three people with direct knowledge of the matter. He is moving to a senior position at the Tsinghua PBC School of Finance.

* The People's Bank of China's requirement for nonbanking payment institutions to handle online payment business through Net Union Clearing Corp. may increase third-party payment rates, Reuters reported, citing a report from BOCOM International Holdings Co. Ltd. However, the rate would still be lower than that of bank card payments, the report noted.

* A total of 12 Chinese banks are waiting in line to raise 62 billion yuan in their IPOs, but China's financial regulator may approve the raising of only 23.60 billion yuan, the Securities Daily reported.

* Taiwan's Financial Supervisory Commission reversed its position on amendments to the island's Banking Act, after previously aiming to expand penalties to lenders that had heavily promoted yuan-linked target redemption forwards as high-return investments to customers, the Taipei Times reported.


* Sumitomo Mitsui Financial Group Inc. and Yahoo Japan Corp. will set up a big data fintech joint venture worth ?¥300 million as early as September, Tokyo's The Nikkei reported. The Japanese megabank will own a 49% stake, while Yahoo Japan will hold the remaining 51%.

* Rakuten Securities Inc. and SBI Securities Co. Ltd. will test a trading surveillance system using artificial intelligence in collaboration with NEC Corp., The Nikkei reported. The online brokerages seek to have working monitoring and detection systems ready within fiscal 2017-18.

* South Korea's Kakao Bank said its account openings exceeded two million as of Aug. 8, less than two weeks since it started commercial operations July 27, The Chosun Ilbo reported.

* South Korea's bank holding companies will be allowed to issue perpetual bonds from Aug. 19 under an amendment to the Financial Holding Company Act, The Financial News reported.


* Indonesia's Infobank reported that PT Bank Victoria International Tbk recorded 128 billion rupiah of net profit for the first half, a 162.47% increase from the lender's prior-year profit of 49 billion rupiah.

* PT Bank OCBC NISP Tbk issued the second phase of its bond issuance worth 2 trillion Indonesian rupiah, Bisnis Indonesia reported. Proceeds from the issuance will be used for credit expansion, the bank said.

* The Malaysian government is conducting a probe into foreign-exchange losses at Bank Negara Malaysia in the 1990s, which could lead to the criminal prosecution of former Prime Minister Mahathir Mohamad, the Associated Press reported. A five-member Royal Commission of Inquiry was set up after a preliminary investigation found that the extent of losses was larger than what was reported to the government.

* BIMB Holdings Bhd. named Khairul Kamarudin its new CEO, about two months after he was appointed as CEO of the company's unit, Bank Islam Malaysia Bhd. The appointment is effective Aug. 9.


* The Reserve Bank of India has issued the Cyber Security Framework in Bank to help lenders deal with future cyberattacks, the Press Trust of India reported, citing Santosh Kumar Gangwar, India's finance minister.

* The Indian government said the new 500-rupee and 2,000-rupee banknotes have a "single unique dimension," following proceedings by opposition parties led by Congress over what they call the "biggest scam of this century" in the printing of two different sizes for the new notes, the Press Trust of India reported.

* HDFC Bank Ltd. seeks to increase its market share in the corporate loans segment on the back of strong asset quality and a lack of capital constraints, the Press Trust of India reported, citing Executive Director Kaizad Bharucha.


* Commonwealth Bank of Australia's decision to scrap short-term bonuses has not lessened investor calls for further action to hold executives accountable for an alleged money laundering scandal, The Sydney Morning Herald reported.

* At least three of the six money laundering syndicates identified in the statement of claim against Commonwealth Bank of Australia used other lenders, including Australia & New Zealand Banking Group Ltd. and Westpac Banking Corp., to launder money, The Australian Financial Review reported. The two banks were not identified in the claim by the Australian Transaction Reports and Analysis Centre, but CBA is expected to question whether the rival banks made sufficient disclosure of the suspect trading.

* Westpac has reportedly hired bankers at Morgan Stanley's financial institutions group for the strategic review of its motor and equipment finance and corporate debt book, The Australian Financial Review's Street Talk blog reported. The review focuses on the Australian bank's auto leasing loanbook, which is worth about A$5 billion.


Middle East & Africa: Qatari banking system's outlook revised; First Takaful gets new chairman

Europe: Standard Life's H1 profit rises; Banco BPM posts H1 profit; Generali sells unit

Latin America: Generali sells Panama unit; Caixa to launch new mortgage line

North America: Citi to pay $130M to settle LIBOR case; San Francisco Fed probing Wells Fargo

North America Insurance: Anthem exits more ACA markets; Wells Fargo under probe over insurance refunds

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

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