GREATER CHINA
* Société Générale SA plans to establish a securities joint venture in China, in which it will hold a 51% stake, said CEO Frederic Oudea, China Daily reported, citing the 21st Business Herald in China. The French financial company is looking to engage more in the onshore bond business in China, especially green financing, and would like to tap opportunities in the country as the government takes steps to further open up its financial sector to foreign players.
* Ernst & Young said in a recent report that China's banking industry continue to face risks despite improvements in their nonperforming ratios, Reuters reported. The accounting firm said banks' exposure to industries with highly leveraged enterprises puts pressure on asset quality, and banks may need to adjust their provisions due to changes in accounting policy.
* China's central bank imposed a penalty of 25 million yuan on Dinpay Electronic Payment Co. Ltd. for providing payment services for overseas internet platforms in violation of regulations, China Fund reported. The central bank has issued 29 penalty tickets to payment institutions so far in 2018, mostly because of violations on provisions, anti-money laundering and customer information protection.
JAPAN AND KOREA
* Sompo Japan Nipponkoa Insurance Inc. will invest about 2 billion Indian rupees in Universal Sompo General Insurance Co. Ltd. to increase its stake in the Mumbai-based insurer from 26% to 34.6%, Tokyo's The Nikkei reported.
* Mitsubishi UFJ Financial Group Inc. plans to increase the number of outside directors sitting on its 18-member board from five to eight as part of its corporate governance reform, The Nikkei reported.
* Six South Korean financial institutions are planning to raise more capital from domestic debt issuance between May 29 and June 4 in anticipation of a possible U.S. interest rate hike in June, The Financial News reported. Hana Financial Group Inc. is looking to issue 300 billion won of bonds on June 1.
* Citibank Korea Inc.'s net profit for the first quarter ended March 31 increased 6.7% year over year to 73 billion won, supported by stringent cost-cutting efforts, Yonhap News Agency reported.
ASEAN
* Siam Commercial Bank PCL appointed Boontuck Wungcharoen an independent director of the bank, Thailand's Krungthep Turakij reported. Wungcharoen, the former CEO of TMB Bank PCL, is expected to help the bank lower its credit risk, the report said.
* Siam Commercial Bank increased its investment in subsidiary Digital Ventures by 1.75 billion Thai baht, and expects a return on investment of 25% to 30% within three to five years, the country's Daily News reported.
* Thailand's Securities and Exchange Commission plans to unveil rules on cryptocurrencies and initial coin offerings by the end of June, Reuters reported citing SEC secretary-general, Rapee Sucharitakul. Sucharitakul said the offering of digital coins is banned until such regulations are issued.
* PT Bank Mandiri (Persero) Tbk intends to offer 1 trillion rupiah worth of convertible bonds, Bisnis Indonesia reported.
* PT Bank Central Asia Tbk will issue subordinated bonds of up to 500 billion rupiah with alternate tenors of 7, 10, or 12 years, Bisnis Indonesia reported.
* National Bank of Cambodia approved Taiwan Cooperative Bank Ltd.'s plan to set up two sub-branches under the Taiwanese lender's branch in Phnom Penh, Cambodia, the United Daily in Taiwan reported. The bank has one branch and six sub-branches in Cambodia.
SOUTH ASIA
* India-based Allahabad Bank's board decided to strip CEO and Managing Director Usha Ananthasubramanian of all her functional responsibilities, effective immediately. The decision came after the Central Bureau of Investigation decided to file charges against Ananthasubramanian for her alleged involvement in the US$2 billion scam at Punjab National Bank, where she was former CEO.
* Punjab National Bank posted a net loss of 134.17 billion Indian rupees for the fourth quarter ended March 31, after setting aside cash for an alleged fraud involving jeweler Nirav Modi. Loss per share for the quarter stood at 54.89 rupees, compared to an EPS of 1.23 rupees in the prior-year period.
* Syndicate Bank Ltd. posted a net loss of 21.95 billion Indian rupees in the fourth quarter ended March 31, compared to a net profit of 1.04 billion rupees in the prior-year quarter. The bank's provision for bad assets increased to 35.45 billion rupees from 11.93 billion rupees in the year-ago period.
* Karnataka Bank Ltd.'s net profit for the fourth quarter ended March 31 fell to 110 million Indian rupees from 1.38 billion rupees in the prior-year quarter. The bank's net profit for the full year ended March 31 declined to 3.26 billion rupees from 4.52 billion rupees in the year-ago period.
* Pakistan's JS Bank Ltd. said it appointed Basir Shamsie as its new president and CEO, subject to the central bank's approval. Shamsie will replace Khalid Imran, who resigned.
* Commercial Bank of Ceylon PLC said profit attributable to equity holders for the first quarter ended March 31 climbed 13.6% to 4.34 billion Sri Lankan rupees, or 4.32 rupees per share, from 3.82 billion rupees, or 4.14 rupees per share, in the prior-year period.
AUSTRALIA AND NEW ZEALAND
* AMP Ltd.'s former head of advice Rob Caprioli stepped down from the Banking and Finance Oath's board, after the Australian royal commission found that AMP previously charged customers for services they did not provide, The Sydney Morning Herald reported. Caprioli, who still remains a signatory of the board, decided to leave to help it not be "distracted from its tasks."
* Australia's Westpac Banking Corp. will invest A$50 million in its venture capital fund, Reinventure Group, to fulfill its total commitment of investing A$150 million in the capital fund, DealStreetAsia reported, citing a bank statement. The latest fund will explore opportunities in the Asian fintech market and blockchain technology.
* NZX Ltd. plans to raise up to NZ$40 million through the sale of subordinated notes to repay debt and for general corporate purposes, BusinessDesk reported. The notes will mature in June 2033 and the interest rate will be set around May 17. The offer will open May 28.
Middle East & Africa: Qatar forex manipulation probe intensifies; ex-Moza Banco execs fined
Europe: Allianz, Crédit Agricole post Q1 profits; SIX Group, Worldline in €2B deal
Latin America: BNDES, Banrisul post higher Q1 profits; 8 Brazilian banks face charges
North America: PHH faces 2nd suit against Ocwen deal; New S.C. bank raises $34M
North America Insurance: 271 individual LTC rate hikes OK'd in Q1; Travelers' cat bond may upsize
Janna Estares, 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.
