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Showing posts with label Bank. Show all posts
Showing posts with label Bank. Show all posts
Saturday, January 28, 2017
Wednesday, January 4, 2017
Thursday, October 27, 2016
OCBC posts 5% jump in Q3 profit, beating expectations
OCBC posts 5% jump in Q3 profit, beating expectations
Posted 27 Oct 2016 09:15 Updated 27 Oct 2016 09:20
SINGAPORE: The Oversea-Chinese Banking Corp (OCBC) beat estimates with a 5 per cent rise in quarterly profit in the third quarter of the year, helped by gains from its insurance and wealth management units, according to its financial results released on Thursday (Oct 27).
However, the bank warned of a challenging operating environment. The city-state's lenders must contend with growing risks to earnings as credit woes deepen for the offshore services sector, which has been hit hard by a drop-off in orders due to a near-two year rout in oil prices until early this year.
Net profit for Singapore's second-biggest bank came in at S$943 million in the third quarter as its insurance and wealth management business powered a 25 per cent climb in non-interest income.
The result handily beat expectations for a decline in profit with the average estimate at S$834 million from five analysts polled by Reuters.
But provisions for bad debt jumped almost 11 per cent to S$166 million, while net interest income dropped 6 per cent due to lower loan volumes and a weaker net interest margin.
"We continue to keep a firm grip on cost, maintain strong liquidity and capital, and ensure prudent levels of provisioning," OCBC Chief Executive Samuel Tsien said in a statement.
Offshore firms that have said they are struggling with debt payments include oilfield services company Swiber Holdings, which was placed under judicial management this month.
Signs of weakness in a trade-dependent economy and the domestic property market are also further squeezing loan demand.
- Reuters/mz
- wong chee tat :)
Posted 27 Oct 2016 09:15 Updated 27 Oct 2016 09:20
SINGAPORE: The Oversea-Chinese Banking Corp (OCBC) beat estimates with a 5 per cent rise in quarterly profit in the third quarter of the year, helped by gains from its insurance and wealth management units, according to its financial results released on Thursday (Oct 27).
However, the bank warned of a challenging operating environment. The city-state's lenders must contend with growing risks to earnings as credit woes deepen for the offshore services sector, which has been hit hard by a drop-off in orders due to a near-two year rout in oil prices until early this year.
Net profit for Singapore's second-biggest bank came in at S$943 million in the third quarter as its insurance and wealth management business powered a 25 per cent climb in non-interest income.
The result handily beat expectations for a decline in profit with the average estimate at S$834 million from five analysts polled by Reuters.
But provisions for bad debt jumped almost 11 per cent to S$166 million, while net interest income dropped 6 per cent due to lower loan volumes and a weaker net interest margin.
"We continue to keep a firm grip on cost, maintain strong liquidity and capital, and ensure prudent levels of provisioning," OCBC Chief Executive Samuel Tsien said in a statement.
Offshore firms that have said they are struggling with debt payments include oilfield services company Swiber Holdings, which was placed under judicial management this month.
Signs of weakness in a trade-dependent economy and the domestic property market are also further squeezing loan demand.
- Reuters/mz
- wong chee tat :)
Deutsche Bank promises faster revamp as braces for US fine
Deutsche Bank promises faster revamp as braces for US fine
Posted 27 Oct 2016 13:35 Updated 27 Oct 2016 16:10
FRANKFURT: Deutsche Bank chief John Cryan pledged on Thursday to redouble restructuring efforts, warning that the bank faces tough times as it seeks to finalize talks with U.S. justice authorities over a multi billion dollar fine.
Germany's biggest lender posted an unexpected quarterly profit, benefiting from a subdued rebound in bond trading, but which failed to dispel the cloud of uncertainty that drove clients to withdraw billions of euros.
"The quarter was clearly overshadowed by the attention paid to our negotiations concerning the U.S. Department of Justice’s initial settlement proposal relating to our RMBS (residential mortgage-backed securities) matters. This has created uncertainty," Cryan told a conference call.
"Uncertainty that affects the market’s view of DB as an investment, uncertainty that affected some client views of Deutsche Bank as a counterparty and uncertainty that even affects our financial planning and strategy execution."
In a letter to staff, Cryan wrote: "Unfortunately, we have to assume that the situation will stay difficult for a while," adding the bank was working hard to wrap up negotiations for the fine "as soon as possible".
"We will ... accelerate and intensify our restructuring," he wrote, referring also to a deteriorating environment more generally in certain important sectors.
After weeks of negative headlines, Deutsche was however able to announce an unexpected net profit of 278 million euros (US$303 million) in the third quarter, lifted by a surge in bond trading that boosted all Wall Street banks.
The jump helped send the bank's shares initially to a more than one-month high, though they retreated to be down 0.4 percent at 13.245 euros by 0739 GMT.
TOXIC SECURITIES
Nonetheless, negotiations over a US$14 billion demand from the U.S. Department of Justice (DoJ) for misselling toxic mortgage-backed securities before the 2007-2009 financial crisis set a bleak backdrop.
After weeks of speculation about how this demand has rocked confidence in Germany's one-time flagship lender, the results gave some insight.
In its retail and wealth management business, clients withdrew 9 billion euros in the third quarter. The bank, which had assets in that division of almost 440 billion euros, said outflows had since abated.
Its so-called global markets trading business was also hit.
Cryan said the bank had liquidity reserves of 200 billion euros, a fall from the more than 215 billion he had outlined on Sept. 30. In June, the bank had 223 billion euros.
Deutsche Bank set aside more money for its legal bill for numerous past missteps. Litigation reserves rose to 5.9 billion from 5.5 billion at the end of June.
Revenue grew slightly at 7.5 billion euros, ahead of analysts' expectations, mainly driven by Deutsche's trading, while business declined in other operating areas.
Its cash-cow bond trading division, which has volatile revenue and tough capital requirements to meet, was up 14 percent. Compared with its peers, however, bond trading showed a modest rebound, in part due to trimming the unit.
In equities trading, Deutsche Bank saw revenue decline as low stock market volatility gave investors less reason to trade, while revenue from corporate and investment banking fell by 1 percent.
(Additional reporting by Andreas Kroener and Kathrin Jones; Writing by John O'Donnell and Arno Schuetze; Editing by David Holmes)
- Reuters
- wong chee tat :)
Posted 27 Oct 2016 13:35 Updated 27 Oct 2016 16:10
FRANKFURT: Deutsche Bank chief John Cryan pledged on Thursday to redouble restructuring efforts, warning that the bank faces tough times as it seeks to finalize talks with U.S. justice authorities over a multi billion dollar fine.
Germany's biggest lender posted an unexpected quarterly profit, benefiting from a subdued rebound in bond trading, but which failed to dispel the cloud of uncertainty that drove clients to withdraw billions of euros.
"The quarter was clearly overshadowed by the attention paid to our negotiations concerning the U.S. Department of Justice’s initial settlement proposal relating to our RMBS (residential mortgage-backed securities) matters. This has created uncertainty," Cryan told a conference call.
"Uncertainty that affects the market’s view of DB as an investment, uncertainty that affected some client views of Deutsche Bank as a counterparty and uncertainty that even affects our financial planning and strategy execution."
In a letter to staff, Cryan wrote: "Unfortunately, we have to assume that the situation will stay difficult for a while," adding the bank was working hard to wrap up negotiations for the fine "as soon as possible".
"We will ... accelerate and intensify our restructuring," he wrote, referring also to a deteriorating environment more generally in certain important sectors.
After weeks of negative headlines, Deutsche was however able to announce an unexpected net profit of 278 million euros (US$303 million) in the third quarter, lifted by a surge in bond trading that boosted all Wall Street banks.
The jump helped send the bank's shares initially to a more than one-month high, though they retreated to be down 0.4 percent at 13.245 euros by 0739 GMT.
TOXIC SECURITIES
Nonetheless, negotiations over a US$14 billion demand from the U.S. Department of Justice (DoJ) for misselling toxic mortgage-backed securities before the 2007-2009 financial crisis set a bleak backdrop.
After weeks of speculation about how this demand has rocked confidence in Germany's one-time flagship lender, the results gave some insight.
In its retail and wealth management business, clients withdrew 9 billion euros in the third quarter. The bank, which had assets in that division of almost 440 billion euros, said outflows had since abated.
Its so-called global markets trading business was also hit.
Cryan said the bank had liquidity reserves of 200 billion euros, a fall from the more than 215 billion he had outlined on Sept. 30. In June, the bank had 223 billion euros.
Deutsche Bank set aside more money for its legal bill for numerous past missteps. Litigation reserves rose to 5.9 billion from 5.5 billion at the end of June.
Revenue grew slightly at 7.5 billion euros, ahead of analysts' expectations, mainly driven by Deutsche's trading, while business declined in other operating areas.
Its cash-cow bond trading division, which has volatile revenue and tough capital requirements to meet, was up 14 percent. Compared with its peers, however, bond trading showed a modest rebound, in part due to trimming the unit.
In equities trading, Deutsche Bank saw revenue decline as low stock market volatility gave investors less reason to trade, while revenue from corporate and investment banking fell by 1 percent.
(Additional reporting by Andreas Kroener and Kathrin Jones; Writing by John O'Donnell and Arno Schuetze; Editing by David Holmes)
- Reuters
- wong chee tat :)
Thursday, June 30, 2016
UOB suspends London property loans after Brexit
UOB suspends London property loans after Brexit
Posted 30 Jun 2016 10:14 Updated 30 Jun 2016 15:19
SINGAPORE: United Overseas Bank (UOB), Singapore's third-largest lender, has suspended its loans programme for London properties in the wake of uncertainties caused by Britain's vote to leave the European Union.
UOB would be among the first banks in Singapore to turn cautious on such lending, even though it is not a large amount, as Brexit spooked global markets and pushed the pound to multi-year lows.
"We will temporarily stop receiving foreign property loan applications for London properties," a UOB spokeswoman said in an email.
"As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments."
Singapore's biggest lender, DBS Group Holdings, said it continued to provide financing for property purchases in London but was advising its customers to be cautious.
"For customers interested in buying properties in London, we would advise them to assess the situation carefully before committing to their purchases as there could be potential foreign exchange and sovereign risks," Ms Tok Geok Peng, executive director of secured lending, consumer banking group (Singapore) at DBS Bank, said in an email.
The Singapore dollar has gained about 10 per cent against the British pound since the referendum.
"There have been London properties available for the last few months before the Brexit. The question is whether these properties can still continue to receive buyers in the short-term," said Ms Alice Tan, head of consultancy and research at Knight Frank Singapore.
Property consultants say data on the number of properties purchased by Singaporeans in the United Kingdom is not tracked that closely. Banks do not disclose lending data for UK property purchases.
UOB said it was monitoring the market environment closely and would review it regularly to determine when it could resume its property loan offering.
- REUTERS/cy
- wong chee tat :)
Posted 30 Jun 2016 10:14 Updated 30 Jun 2016 15:19
SINGAPORE: United Overseas Bank (UOB), Singapore's third-largest lender, has suspended its loans programme for London properties in the wake of uncertainties caused by Britain's vote to leave the European Union.
UOB would be among the first banks in Singapore to turn cautious on such lending, even though it is not a large amount, as Brexit spooked global markets and pushed the pound to multi-year lows.
"We will temporarily stop receiving foreign property loan applications for London properties," a UOB spokeswoman said in an email.
"As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments."
Singapore's biggest lender, DBS Group Holdings, said it continued to provide financing for property purchases in London but was advising its customers to be cautious.
"For customers interested in buying properties in London, we would advise them to assess the situation carefully before committing to their purchases as there could be potential foreign exchange and sovereign risks," Ms Tok Geok Peng, executive director of secured lending, consumer banking group (Singapore) at DBS Bank, said in an email.
The Singapore dollar has gained about 10 per cent against the British pound since the referendum.
"There have been London properties available for the last few months before the Brexit. The question is whether these properties can still continue to receive buyers in the short-term," said Ms Alice Tan, head of consultancy and research at Knight Frank Singapore.
Property consultants say data on the number of properties purchased by Singaporeans in the United Kingdom is not tracked that closely. Banks do not disclose lending data for UK property purchases.
UOB said it was monitoring the market environment closely and would review it regularly to determine when it could resume its property loan offering.
- REUTERS/cy
- wong chee tat :)
Monday, June 27, 2016
Flashy lifestyles hide hints of credit card woes
Flashy lifestyles hide hints of credit card woes
By Chew Hui Yan Posted 25 Jun 2016 15:16 Updated 26 Jun 2016 02:22
SINGAPORE: They flash their credits cards at high-end restaurants and hang out at hip nightspots. The more adventurous among them think nothing about taking yearly vacations in the most exotic, far-flung places.
But such a lifestyle has also been identified as the main reason young professionals tend to rack up unsecured debts, Credit Counselling Singapore (CCS) said.
The organisation, which helps people clear their debts, believes a lot of this is due to peer pressure.
“If you have friends who go clubbing a lot, you might feel pressured to go with them because if you don’t, you’d start to lose your friends,” CCS president Kuo How Nam said in an interview with Channel NewsAsia.
This pressure might eventually lead to an unsustainable lifestyle, which is further glamourised on social media platforms like Snapchat and Instagram.
“Don’t be fooled; people might post pictures of designer bags and nice restaurants but what you don’t see is how much they owe,” Mr Kuo said.
“Once, I picked up an issue of Tatler magazine (a luxury publication targeted at high-net-worth individuals) and recognised a client. Social status is more a function of how much you spend rather than how much you have.”
The CCS administers the Repayment Assistant Scheme, which was introduced in April last year to help those with large unsecured debts.
In 2015, it counselled 4,675 people, of which about 11 per cent were aged 30 and below. People aged 31 to 40 make up more than one third (about 1,800) of the total.
The CCS said this could be due to several reasons. For instance, people aged 31 to 40 may have young children and parents to look after; younger ones are less likely to have such responsibilities. Younger professionals thus are under less pressure financially and have greater freedom to spend on themselves.
Another contributing factor is the fact that one needs a minimum annual income of S$30,000 to be eligible to apply for a credit card. This means young adults who have just entered the workforce might not even qualify.
Mr Alfred Chia, the chief executive officer of financial planning company SingCapital, also noted that young professionals tend to have better financial literacy and responsibility compared to the older generation.
“The numbers are healthy and we’ve seen an increase in young working adults seeking financial planning,” he said. Over the last five years, SingCapital has seen an annual increase of 8 to 10 per cent in clients aged 30 and below.
Despite these encouraging statistics, Mr Kuo offered this note of caution for young professionals: “Be careful. How you spend your money is affected by who you mix with. This determines your lifestyle which decides whether or not you get into debt.”
It is also never too early for young professionals to start planning their finances, said Mr Chia. “It is normal for us to deviate from our plan but having one will remind us to come back to it,” he said.
For more on unsecured debt, catch Channel NewsAsia’s Spotlight segment on Sunday, Jun 26, at 10pm.
- CNA/av
- wong chee tat :)
By Chew Hui Yan Posted 25 Jun 2016 15:16 Updated 26 Jun 2016 02:22
SINGAPORE: They flash their credits cards at high-end restaurants and hang out at hip nightspots. The more adventurous among them think nothing about taking yearly vacations in the most exotic, far-flung places.
But such a lifestyle has also been identified as the main reason young professionals tend to rack up unsecured debts, Credit Counselling Singapore (CCS) said.
The organisation, which helps people clear their debts, believes a lot of this is due to peer pressure.
“If you have friends who go clubbing a lot, you might feel pressured to go with them because if you don’t, you’d start to lose your friends,” CCS president Kuo How Nam said in an interview with Channel NewsAsia.
This pressure might eventually lead to an unsustainable lifestyle, which is further glamourised on social media platforms like Snapchat and Instagram.
“Don’t be fooled; people might post pictures of designer bags and nice restaurants but what you don’t see is how much they owe,” Mr Kuo said.
“Once, I picked up an issue of Tatler magazine (a luxury publication targeted at high-net-worth individuals) and recognised a client. Social status is more a function of how much you spend rather than how much you have.”
The CCS administers the Repayment Assistant Scheme, which was introduced in April last year to help those with large unsecured debts.
In 2015, it counselled 4,675 people, of which about 11 per cent were aged 30 and below. People aged 31 to 40 make up more than one third (about 1,800) of the total.
The CCS said this could be due to several reasons. For instance, people aged 31 to 40 may have young children and parents to look after; younger ones are less likely to have such responsibilities. Younger professionals thus are under less pressure financially and have greater freedom to spend on themselves.
Another contributing factor is the fact that one needs a minimum annual income of S$30,000 to be eligible to apply for a credit card. This means young adults who have just entered the workforce might not even qualify.
Mr Alfred Chia, the chief executive officer of financial planning company SingCapital, also noted that young professionals tend to have better financial literacy and responsibility compared to the older generation.
“The numbers are healthy and we’ve seen an increase in young working adults seeking financial planning,” he said. Over the last five years, SingCapital has seen an annual increase of 8 to 10 per cent in clients aged 30 and below.
Despite these encouraging statistics, Mr Kuo offered this note of caution for young professionals: “Be careful. How you spend your money is affected by who you mix with. This determines your lifestyle which decides whether or not you get into debt.”
It is also never too early for young professionals to start planning their finances, said Mr Chia. “It is normal for us to deviate from our plan but having one will remind us to come back to it,” he said.
For more on unsecured debt, catch Channel NewsAsia’s Spotlight segment on Sunday, Jun 26, at 10pm.
- CNA/av
- wong chee tat :)
Friday, May 20, 2016
OCBC launches open-source API
OCBC launches open-source API
The initiative is in line with the Monetary Authority of Singapore's vision to create a Smart Financial Centre and move toward an open API architecture.
By Patrick John Lim
Posted 17 May 2016 16:00 Updated 18 May 2016 10:02
SINGAPORE: OCBC Bank on Tuesday (May 17) became one of the first in Southeast Asia to launch an open Application Programming Interface (API) platform that allows developers to integrate the bank's products and services when building applications and programmes.
This is in line with the Government's Smart Nation Initiative and the Monetary Authority of Singapore's vision to create a Smart Financial Centre and move toward an open API architecture.
A screengrab of OCBC's API platform. (Photo: OCBC)
OCBC Bank's developer portal, Connect2OCBC, will provide free access to four open-source APIs: The branch locator, ATM locator, smart card advisor and foreign exchange APIs.
Mr Praveen Raina, senior vice president of Group Operations & Technology at OCBC Bank said: "The open APIs will put our data to more efficient use as it can be shared both internally across the bank and externally with third-party software developers."
"It will help us extend our reach to not only our customers but potential customers as well, while creating a better user experience." he added.
- CNA/hs
- wong chee tat :)
The initiative is in line with the Monetary Authority of Singapore's vision to create a Smart Financial Centre and move toward an open API architecture.
By Patrick John Lim
Posted 17 May 2016 16:00 Updated 18 May 2016 10:02
SINGAPORE: OCBC Bank on Tuesday (May 17) became one of the first in Southeast Asia to launch an open Application Programming Interface (API) platform that allows developers to integrate the bank's products and services when building applications and programmes.
This is in line with the Government's Smart Nation Initiative and the Monetary Authority of Singapore's vision to create a Smart Financial Centre and move toward an open API architecture.
A screengrab of OCBC's API platform. (Photo: OCBC)
OCBC Bank's developer portal, Connect2OCBC, will provide free access to four open-source APIs: The branch locator, ATM locator, smart card advisor and foreign exchange APIs.
Mr Praveen Raina, senior vice president of Group Operations & Technology at OCBC Bank said: "The open APIs will put our data to more efficient use as it can be shared both internally across the bank and externally with third-party software developers."
"It will help us extend our reach to not only our customers but potential customers as well, while creating a better user experience." he added.
- CNA/hs
- wong chee tat :)
Tuesday, April 26, 2016
Exclusive: SWIFT warns customers of multiple cyber fraud cases
Exclusive: SWIFT warns customers of multiple cyber fraud cases
SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers on Monday that it was aware of "a number of recent cyber incidents" where attackers had sent fraudulent messages over its system.
Posted 26 Apr 2016 05:55 Updated 26 Apr 2016 18:30
REUTERS: SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers on Monday that it was aware of "a number of recent cyber incidents" where attackers had sent fraudulent messages over its system.
The disclosure came as law enforcement authorities in Bangladesh and elsewhere investigated the February cyber theft of US$81 million from the Bangladesh central bank account at the New York Federal Reserve Bank. SWIFT has acknowledged that the scheme involved altering SWIFT software on Bangladesh Bank's computers to hide evidence of fraudulent transfers.
Monday's statement from SWIFT marked the first acknowledgement that the Bangladesh Bank attack was not an isolated incident but one of several recent criminal schemes that aimed to take advantage of the global messaging platform used by some 11,000 financial institutions.
"SWIFT is aware of a number of recent cyber incidents in which malicious insiders or external attackers have managed to submit SWIFT messages from financial institutions' back-offices, PCs or workstations connected to their local interface to the SWIFT network," the group warned customers on Monday in a notice seen by Reuters.
The warning, which SWIFT issued in a confidential alert sent over its network, did not name any victims or disclose the value of any losses from the previously undisclosed attacks. SWIFT confirmed to Reuters the authenticity of the notice.
SWIFT, or the Society for Worldwide Interbank Financial
Telecommunication, is a cooperative owned by 3,000 financial institutions.
Also on Monday, SWIFT released a security update to the software that banks use to access its network to thwart malware that security researchers with British defense contractor BAE Systems said was probably used by hackers in the Bangladesh Bank heist.
BAE's evidence suggested that hackers manipulated SWIFT's Alliance Access server software, which banks use to interface with SWIFT's messaging platform, to cover their tracks.
BAE said it could not explain how the fraudulent orders were created and pushed through the system.
But SWIFT provided some evidence about how that happened in its note to customers, saying that in most cases the modus operandi was similar.
It said the attackers obtained valid credentials for operators authorized to create and approve SWIFT messages, then submitted fraudulent messages by impersonating those people.
FireEye, the internet security company whose Mandiant unit was hired by Bangladesh Bank to help investigate the heist, said the same group behind that hack had probably attacked other financial targets.
"FireEye has observed activity in other financial services organizations that is likely by the same threat actor behind the cyber attack on the Bank of Bangladesh," Vivek Chudgar, Mandiant's senior director for the Asia Pacific said in a statement emailed to Reuters.
FireEye declined to go into detail.
Rakesh Asthana, the World Informatix Cyber Security CEO, who is overseeing Bangladesh Bank's probe into the hack, declined to discuss the other attacks that SWIFT referred to.
He did, though, urge banks to conduct independent security assessments to make sure their networks are secure and prevent future attacks.
“SWIFT builds on security practices established by the customer itself and therefore it is imperative that in the wake of this attack, customers using SWIFT Alliance Access must strengthen their cyber security posture,” Asthana said
FOLLOWING THE MONEY
Cyber security experts said more attacks could surface as SWIFT's banking clients look to see if their SWIFT access has been compromised.
Shane Shook, a banking security consultant who investigates large financial crime, said hackers were turning to SWIFT and other private financial messaging platforms because such attacks can generate more revenue than going after consumers or small businesses.
"These hacks specifically target financial institutions because smaller efforts result in much larger thefts," he said. "It's much more efficient than stealing from consumers."
Justin Harvey, chief security officer with Fidelis Cybersecurity, said hackers followed the money and would be drawn into such schemes in hopes of emulating a big heist like the one on Bangladesh Bank.
"After the Bangladesh Bank heist became public, every other attacker out there is looking to see if they can do the same," he said.
SWIFT spokeswoman Natasha Deteran told Reuters that the commonality in these cases was that internal or external attackers compromised the banks’ own environments to obtain valid operator credentials.
"Customers should do their utmost to protect against this," she said in an email to Reuters.
SWIFT told customers that the security update must be installed by May 12.
"We have made the Alliance interface software update mandatory as it is designed to help banks identify situations in which attackers have attempted to hide their traces - whether these actions have been executed manually or through malware," she said.
(Reporting by Jim Finkle in Boston; Additional reporting by Serajul Quadir in Dhaka; Editing by Jonathan Weber, Martin Howell and Peter Cooney)
- Reuters
- wong chee tat :)
SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers on Monday that it was aware of "a number of recent cyber incidents" where attackers had sent fraudulent messages over its system.
Posted 26 Apr 2016 05:55 Updated 26 Apr 2016 18:30
REUTERS: SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers on Monday that it was aware of "a number of recent cyber incidents" where attackers had sent fraudulent messages over its system.
The disclosure came as law enforcement authorities in Bangladesh and elsewhere investigated the February cyber theft of US$81 million from the Bangladesh central bank account at the New York Federal Reserve Bank. SWIFT has acknowledged that the scheme involved altering SWIFT software on Bangladesh Bank's computers to hide evidence of fraudulent transfers.
Monday's statement from SWIFT marked the first acknowledgement that the Bangladesh Bank attack was not an isolated incident but one of several recent criminal schemes that aimed to take advantage of the global messaging platform used by some 11,000 financial institutions.
"SWIFT is aware of a number of recent cyber incidents in which malicious insiders or external attackers have managed to submit SWIFT messages from financial institutions' back-offices, PCs or workstations connected to their local interface to the SWIFT network," the group warned customers on Monday in a notice seen by Reuters.
The warning, which SWIFT issued in a confidential alert sent over its network, did not name any victims or disclose the value of any losses from the previously undisclosed attacks. SWIFT confirmed to Reuters the authenticity of the notice.
SWIFT, or the Society for Worldwide Interbank Financial
Telecommunication, is a cooperative owned by 3,000 financial institutions.
Also on Monday, SWIFT released a security update to the software that banks use to access its network to thwart malware that security researchers with British defense contractor BAE Systems said was probably used by hackers in the Bangladesh Bank heist.
BAE's evidence suggested that hackers manipulated SWIFT's Alliance Access server software, which banks use to interface with SWIFT's messaging platform, to cover their tracks.
BAE said it could not explain how the fraudulent orders were created and pushed through the system.
But SWIFT provided some evidence about how that happened in its note to customers, saying that in most cases the modus operandi was similar.
It said the attackers obtained valid credentials for operators authorized to create and approve SWIFT messages, then submitted fraudulent messages by impersonating those people.
FireEye, the internet security company whose Mandiant unit was hired by Bangladesh Bank to help investigate the heist, said the same group behind that hack had probably attacked other financial targets.
"FireEye has observed activity in other financial services organizations that is likely by the same threat actor behind the cyber attack on the Bank of Bangladesh," Vivek Chudgar, Mandiant's senior director for the Asia Pacific said in a statement emailed to Reuters.
FireEye declined to go into detail.
Rakesh Asthana, the World Informatix Cyber Security CEO, who is overseeing Bangladesh Bank's probe into the hack, declined to discuss the other attacks that SWIFT referred to.
He did, though, urge banks to conduct independent security assessments to make sure their networks are secure and prevent future attacks.
“SWIFT builds on security practices established by the customer itself and therefore it is imperative that in the wake of this attack, customers using SWIFT Alliance Access must strengthen their cyber security posture,” Asthana said
FOLLOWING THE MONEY
Cyber security experts said more attacks could surface as SWIFT's banking clients look to see if their SWIFT access has been compromised.
Shane Shook, a banking security consultant who investigates large financial crime, said hackers were turning to SWIFT and other private financial messaging platforms because such attacks can generate more revenue than going after consumers or small businesses.
"These hacks specifically target financial institutions because smaller efforts result in much larger thefts," he said. "It's much more efficient than stealing from consumers."
Justin Harvey, chief security officer with Fidelis Cybersecurity, said hackers followed the money and would be drawn into such schemes in hopes of emulating a big heist like the one on Bangladesh Bank.
"After the Bangladesh Bank heist became public, every other attacker out there is looking to see if they can do the same," he said.
SWIFT spokeswoman Natasha Deteran told Reuters that the commonality in these cases was that internal or external attackers compromised the banks’ own environments to obtain valid operator credentials.
"Customers should do their utmost to protect against this," she said in an email to Reuters.
SWIFT told customers that the security update must be installed by May 12.
"We have made the Alliance interface software update mandatory as it is designed to help banks identify situations in which attackers have attempted to hide their traces - whether these actions have been executed manually or through malware," she said.
(Reporting by Jim Finkle in Boston; Additional reporting by Serajul Quadir in Dhaka; Editing by Jonathan Weber, Martin Howell and Peter Cooney)
- Reuters
- wong chee tat :)
Tuesday, December 29, 2015
Loans growth expected to decrease further next year: Banking analysts
Loans growth expected to decrease further next year: Banking analysts
Banks are also expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in many different guises.
By Nicole Tan
Posted 29 Dec 2015 19:55
SINGAPORE: With a cloudy economic outlook for next year, Singapore banks are likely to see a squeeze on their earnings. According to banking analysts, loans growth is expected to decrease even further as a result, and credit risk may go up.
Meanwhile, banks are expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in different guises, from personal data theft to pilfering funds.
Banks in Singapore have also cited criminality as the top concern they currently face, in a recent industry survey by PricewaterhouseCoopers (PwC). Amid a fast-evolving digital landscape, observers said the biggest challenges facing banks in Singapore are technology-related.
PwC Singapore Assurance & Financial Services partner, Karen Loon, said: "The top risk was around criminality which relates to risk of cyber (technology), also money laundering and tax. So that's interesting because while there's been a lot of concern globally, the banks are doing quite a lot to try to improve the environment around cyber (technology) together with regulators.
“The second area is around technology risk. Technology risk is really around the concern around the core banking systems not being able to cope."
While banks upgrade internal infrastructure to cope with changes in technology, analysts said the external environment also presents increasingly significant challenges to growing the topline.
LOAN GROWTH EXPECTED TO SLOW
For the whole of 2015, analysts expect growth in the overall loan books for Singapore banks to come in at about 5 per cent. However, they warned that this could slow down even further in 2016.
Standard & Poor's Financial Services Ratings Director, Ivan Tan, said: "Interest income of Singapore banks is the bulk of profitability or revenue source, which means the net profit will also face some headwinds.
“Between 2013 and 2015, while domestic growth has slowed down, overseas growth was able to compensate for slowness in domestic growth. But now, with China-led regional slowdown, even the overseas loan expansion has come down as well. So on the whole, we'll be seeing slower loans growth of between 3 and 5 per cent for 2016."
Slowdown in the region is also expected to put pressure on asset quality. According to the Monetary Authority of Singapore's Financial Stability report in November, non-performing loans made up about 1.5 per cent of Singapore banks' overall loan books in the third quarter of 2015, up from 1.1 per cent a year ago.
The fallout in commodities prices and slowdown in regional economies were cited as the main macroeconomic concerns.
UBS Wealth Management Chief Investment Officer for Southern APAC, Kelvin Tay, said: "Banks exposed to commodity sector, in particular oil and gas, and banks exposed to ASEAN itself, will probably be more vulnerable to banks not exposed to these areas.
“We think ASEAN is probably going through a structural and cyclical slowdown that will last for at least the next three years."
Another credit risk, analysts said, is the anticipated rise in interest rates as the US Federal Reserve normalises monetary policy. Still, higher interest rates are seen as a double-edged sword, with higher interest margins helping to support interest income.
"Net-net, the increase in interest margins on the loan was still more than able to offset the incremental credit cost they have, so banks are better off in that sense," said Mr Tan. "But overall if you take into account slower loans growth, and higher credit cost they have to set aside, the profit upside is not that much."
Despite a challenging external environment, observers said Singapore lenders remain resilient, with strong capital and liquidity buffers to withstand shocks. Still, analysts have said 2016 is likely to be a cautious year, as the banks adopt a more defensive stance and focus on maintaining loan quality and keeping costs low.
- CNA/xk
- wong chee tat :)
Banks are also expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in many different guises.
By Nicole Tan
Posted 29 Dec 2015 19:55
SINGAPORE: With a cloudy economic outlook for next year, Singapore banks are likely to see a squeeze on their earnings. According to banking analysts, loans growth is expected to decrease even further as a result, and credit risk may go up.
Meanwhile, banks are expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in different guises, from personal data theft to pilfering funds.
Banks in Singapore have also cited criminality as the top concern they currently face, in a recent industry survey by PricewaterhouseCoopers (PwC). Amid a fast-evolving digital landscape, observers said the biggest challenges facing banks in Singapore are technology-related.
PwC Singapore Assurance & Financial Services partner, Karen Loon, said: "The top risk was around criminality which relates to risk of cyber (technology), also money laundering and tax. So that's interesting because while there's been a lot of concern globally, the banks are doing quite a lot to try to improve the environment around cyber (technology) together with regulators.
“The second area is around technology risk. Technology risk is really around the concern around the core banking systems not being able to cope."
While banks upgrade internal infrastructure to cope with changes in technology, analysts said the external environment also presents increasingly significant challenges to growing the topline.
LOAN GROWTH EXPECTED TO SLOW
For the whole of 2015, analysts expect growth in the overall loan books for Singapore banks to come in at about 5 per cent. However, they warned that this could slow down even further in 2016.
Standard & Poor's Financial Services Ratings Director, Ivan Tan, said: "Interest income of Singapore banks is the bulk of profitability or revenue source, which means the net profit will also face some headwinds.
“Between 2013 and 2015, while domestic growth has slowed down, overseas growth was able to compensate for slowness in domestic growth. But now, with China-led regional slowdown, even the overseas loan expansion has come down as well. So on the whole, we'll be seeing slower loans growth of between 3 and 5 per cent for 2016."
Slowdown in the region is also expected to put pressure on asset quality. According to the Monetary Authority of Singapore's Financial Stability report in November, non-performing loans made up about 1.5 per cent of Singapore banks' overall loan books in the third quarter of 2015, up from 1.1 per cent a year ago.
The fallout in commodities prices and slowdown in regional economies were cited as the main macroeconomic concerns.
UBS Wealth Management Chief Investment Officer for Southern APAC, Kelvin Tay, said: "Banks exposed to commodity sector, in particular oil and gas, and banks exposed to ASEAN itself, will probably be more vulnerable to banks not exposed to these areas.
“We think ASEAN is probably going through a structural and cyclical slowdown that will last for at least the next three years."
Another credit risk, analysts said, is the anticipated rise in interest rates as the US Federal Reserve normalises monetary policy. Still, higher interest rates are seen as a double-edged sword, with higher interest margins helping to support interest income.
"Net-net, the increase in interest margins on the loan was still more than able to offset the incremental credit cost they have, so banks are better off in that sense," said Mr Tan. "But overall if you take into account slower loans growth, and higher credit cost they have to set aside, the profit upside is not that much."
Despite a challenging external environment, observers said Singapore lenders remain resilient, with strong capital and liquidity buffers to withstand shocks. Still, analysts have said 2016 is likely to be a cautious year, as the banks adopt a more defensive stance and focus on maintaining loan quality and keeping costs low.
- CNA/xk
- wong chee tat :)
Monday, November 30, 2015
Singapore bank lending shrank in October, credit card billings rose
Singapore bank lending shrank in October, credit card billings rose
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August.
POSTED: 30 Nov 2015 13:09
SINGAPORE: Bank lending in Singapore fell for the second straight month in October as loans to businesses declined, data from the Monetary Authority of Singapore (MAS) showed on Monday (Nov 30).
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August, in a sign that economic activity is slowing. Compared to a year ago, bank lending fell 0.4 per cent.
Loans to businesses fell 1.9 per cent month-on-month to S$360.2 billion in October, while consumer loans edged up 0.2 per cent to S$241.5 billion.
Meanwhile, credit card billings rose 5.6 per cent in October from a year ago to S$4.115 billion.
Banks wrote off S$28 million in bad debts, up from S$27.2 million in September and S$26.4 million a year ago.
The rate of increase in bad credit card debts – at 6.1 per cent year-on-year – was, however, much slower than the rise seen in recent months.
- CNA/cy
- wong chee tat :)
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August.
POSTED: 30 Nov 2015 13:09
SINGAPORE: Bank lending in Singapore fell for the second straight month in October as loans to businesses declined, data from the Monetary Authority of Singapore (MAS) showed on Monday (Nov 30).
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August, in a sign that economic activity is slowing. Compared to a year ago, bank lending fell 0.4 per cent.
Loans to businesses fell 1.9 per cent month-on-month to S$360.2 billion in October, while consumer loans edged up 0.2 per cent to S$241.5 billion.
Meanwhile, credit card billings rose 5.6 per cent in October from a year ago to S$4.115 billion.
Banks wrote off S$28 million in bad debts, up from S$27.2 million in September and S$26.4 million a year ago.
The rate of increase in bad credit card debts – at 6.1 per cent year-on-year – was, however, much slower than the rise seen in recent months.
- CNA/cy
- wong chee tat :)
Sunday, November 22, 2015
Commercial paper: more risk, less reward
Commercial paper: more risk, less reward
Bankrate.com
By Constance Gustke | Bankrate.com – Tue, Jul 5, 2011 6:00 PM SGT
Considering investing in commercial paper? Think again. It offers lower rates than money markets and requires more scrutiny.The tricky part is weighing benefits against risks for each issue, because commercial paper isn't insured by the Federal Deposit Insurance Corp.Commercial paper is short-term, unsecured debt issued by corporations. Firms use this money to finance operations, because rates are usually cheaper than those for their long-term debt. But don't expect higher yields to compensate for the added risk."These days, commercial paper has low rates," says Bob Williams, senior vice president of Delta Trust Investments in Little Rock, Ark. For example, UBS' 30-day commercial paper paid 0.06 percent in mid-June, which is lower than money markets.Little-known to investors, commercial paper is similar to zero-coupon bonds. Both are issued at a discount and accrete at the face value. Maturities on commercial paper are less than 270 days, capped by government restrictions. But the commercial paper market is big and growing, currently amounting to more than $1.162 trillion, according to the Federal Reserve. Issuers are usually highly rated companies, making the paper fairly liquid because there's less risk and more investor demand. Lower-rated commercial paper typically means more risk and less demand.
For future big purchases
On the upside, commercial paper is a good place to sock away large amounts of money for big, future purchases. Minimum investments usually amount to $100,000.But commercial paper is unsecured, and not backed by assets of any kind, says Eric Randolph, portfolio manager at Hopwood Financial Services Inc. in Great Falls, Va. Jittery investors may want the comfort of insured money markets instead.Here's a rundown of risks to consider:
It trades in large increments. Though it usually sells for $100,000 per issue, some brokers chop it up into smaller $10,000 increments. "This rules out lots of investors," Williams says. For investors with less cash, money markets that invest in commercial paper are a better bet.
Interest on commercial paper is taxable. Parking lots of money in commercial paper means you'll get hit with taxable interest. "If you're wealthy, there may be a better place to go," Williams says.
They're not FDIC-insured. Because commercial paper is issued by corporations and not financial institutions, you forgo any FDIC insurance. Instead, your investment is secured only by the company's income flow and not by assets.
"And if the flow is gone, so is your security," says Daniel Wesley, chief executive officer of CreditLoan.com and a commercial paper investor. "You're hedging your bets." However, defaults are rare, he says.
The Securities and Exchange Commission doesn't regulate the commercial paper market. So, Wesley advises investors to carefully select issues, looking at creditworthiness. Check commercial paper ratings at Moody's or Standard & Poor's, which assign credit ratings.
Diversification is more difficult. Because commercial paper denominations are so large, spreading out your risk among lots of issues is challenging. "Under $500,000, your investment risk is spread too thinly," Wesley says. "You're safer with over $1 million to invest."
Conversely, money market funds that invest in commercial paper offer much more diversification since you're spreading risk among many different issues. "Don't put all your eggs in one basket," Williams says.
Strong issues, lower interest
Recently, commercial paper paid a paltry 0.15 percent for 90-day paper issued by nonfinancial companies, according to the Federal Reserve. You can track rates at FederalReserve.gov. But money market funds paid a heftier 0.68 percent rate in late June, according to Bankrate's rate search tool."Going with lower-quality paper means you'll get higher rates," says Randolph. But you'll have to take more credit risks, he says.Fortunately, highly rated companies usually issue commercial paper. Lesser-rated companies have difficulty selling their paper to investors. A stronger commercial paper market was spurred by the Lehman Brothers default in 2008. It crushed the commercial paper market and caused two money market funds holding paper to break the buck, which happens when net asset value falls below $1 per share. After that, even rock-solid corporations such as Coca-Cola Co. fled the commercial paper market."Mostly, you see big-name issuers like IBM, Cisco and Johnson & Johnson these days," Randolph says.Still, money market funds holding commercial paper have downsides, too. "You don't know what's inside your money market," Randolph says. "With specific paper, you know what you're buying."
- wong chee tat :)
Bankrate.com
By Constance Gustke | Bankrate.com – Tue, Jul 5, 2011 6:00 PM SGT
Considering investing in commercial paper? Think again. It offers lower rates than money markets and requires more scrutiny.The tricky part is weighing benefits against risks for each issue, because commercial paper isn't insured by the Federal Deposit Insurance Corp.Commercial paper is short-term, unsecured debt issued by corporations. Firms use this money to finance operations, because rates are usually cheaper than those for their long-term debt. But don't expect higher yields to compensate for the added risk."These days, commercial paper has low rates," says Bob Williams, senior vice president of Delta Trust Investments in Little Rock, Ark. For example, UBS' 30-day commercial paper paid 0.06 percent in mid-June, which is lower than money markets.Little-known to investors, commercial paper is similar to zero-coupon bonds. Both are issued at a discount and accrete at the face value. Maturities on commercial paper are less than 270 days, capped by government restrictions. But the commercial paper market is big and growing, currently amounting to more than $1.162 trillion, according to the Federal Reserve. Issuers are usually highly rated companies, making the paper fairly liquid because there's less risk and more investor demand. Lower-rated commercial paper typically means more risk and less demand.
For future big purchases
On the upside, commercial paper is a good place to sock away large amounts of money for big, future purchases. Minimum investments usually amount to $100,000.But commercial paper is unsecured, and not backed by assets of any kind, says Eric Randolph, portfolio manager at Hopwood Financial Services Inc. in Great Falls, Va. Jittery investors may want the comfort of insured money markets instead.Here's a rundown of risks to consider:
It trades in large increments. Though it usually sells for $100,000 per issue, some brokers chop it up into smaller $10,000 increments. "This rules out lots of investors," Williams says. For investors with less cash, money markets that invest in commercial paper are a better bet.
Interest on commercial paper is taxable. Parking lots of money in commercial paper means you'll get hit with taxable interest. "If you're wealthy, there may be a better place to go," Williams says.
They're not FDIC-insured. Because commercial paper is issued by corporations and not financial institutions, you forgo any FDIC insurance. Instead, your investment is secured only by the company's income flow and not by assets.
"And if the flow is gone, so is your security," says Daniel Wesley, chief executive officer of CreditLoan.com and a commercial paper investor. "You're hedging your bets." However, defaults are rare, he says.
The Securities and Exchange Commission doesn't regulate the commercial paper market. So, Wesley advises investors to carefully select issues, looking at creditworthiness. Check commercial paper ratings at Moody's or Standard & Poor's, which assign credit ratings.
Diversification is more difficult. Because commercial paper denominations are so large, spreading out your risk among lots of issues is challenging. "Under $500,000, your investment risk is spread too thinly," Wesley says. "You're safer with over $1 million to invest."
Conversely, money market funds that invest in commercial paper offer much more diversification since you're spreading risk among many different issues. "Don't put all your eggs in one basket," Williams says.
Strong issues, lower interest
Recently, commercial paper paid a paltry 0.15 percent for 90-day paper issued by nonfinancial companies, according to the Federal Reserve. You can track rates at FederalReserve.gov. But money market funds paid a heftier 0.68 percent rate in late June, according to Bankrate's rate search tool."Going with lower-quality paper means you'll get higher rates," says Randolph. But you'll have to take more credit risks, he says.Fortunately, highly rated companies usually issue commercial paper. Lesser-rated companies have difficulty selling their paper to investors. A stronger commercial paper market was spurred by the Lehman Brothers default in 2008. It crushed the commercial paper market and caused two money market funds holding paper to break the buck, which happens when net asset value falls below $1 per share. After that, even rock-solid corporations such as Coca-Cola Co. fled the commercial paper market."Mostly, you see big-name issuers like IBM, Cisco and Johnson & Johnson these days," Randolph says.Still, money market funds holding commercial paper have downsides, too. "You don't know what's inside your money market," Randolph says. "With specific paper, you know what you're buying."
- wong chee tat :)
MORE PEOPLE IN CREDIT CARD DEBT
MORE PEOPLE IN CREDIT CARD DEBT
ACCORDING TO THE CREDIT BUREAU SINGAPORE, THE TOTAL NUMBER OF DELINQUENT DEBTORS HIT MORE THAN 101,490 THIS YEAR
Nov 22, 2015 6:00am
BY SEOW YUN RONG
He had a good job that paid him $7,500 a month but the way he used his credit cards, you would think he earned a lot more.
The debts snowballed and before Mr Toh knew it, he owed $103,000 to the banks.
His story is typical of many who have been caught up in a credit card debt situation which has spiralled out of control.
In 2011, the total number of delinquent debtors was just over 73,000.
These are people who pay nothing or less than the minimum sum on their credit card debts.
According to the Credit Bureau Singapore, it has hit more than 101,493 this year.
It is the same story with revolving debtors who roll their credit card debts by covering at least the minimum sum.
More people are also turning to debt counsellors for help.
According to Credit Counselling Singapore (CCS), the biggest credit card debt this year is a whopping $1,552,000.
Mr Toh, too, had no choice but to pick up the phone when he realised he had lost all control.
As with everything, it started small.
The 39-year-old, who now works as a sales officer and part-time taxi driver, was a regional sales manager in 2005 and frequently travelled.
He carried several credit cards to cover his travelling expenses, which his employers reimbursed the following month.
Despite the reimbursement, he'd pay only the monthly minimum sum of $2,500 for his five credit cards for about three years.
He says: "I was earning quite a decent sum then, so I thought I could give my family a better life and pay back the following month."
But he lost track of how much he was spending and how much he could claim, he adds.
Besides paying his parents' medical bills of about $1,000 a month, he would also take his family of seven to restaurants and shopping malls twice a week. A night out typically cost $300.
QUIT JOB
It all went downhill after Mr Toh quit his job in 2012.
He then earned only about $3,500 as a part-time sales officer and taxi driver but the debts followed him.
He says: "At that time, I only thought of my family. I didn't have the motivation to pay more than the minimum sum for my debts."
He did not have enough left over to cover the $2,500 minimum payment each month.
Mr Toh took a bank loan of $10,000 to pay off his credit card debts, only to find out that it was not enough and that loan accumulated interest, too.
His credit card debt snowballed to $103,000 and his financial struggles contributed to his divorce in 2012.
Last year, he finally sought help from CCS.
He now follows the Debt Management Programme which will help him clear all his debt in the next three years.
He says he is thankful for the help from CCS. His sisters are also helping by paying for their parents' medical bills.
Mr Toh says: "Without the support from CCS and my family, I don't think I could ever finish paying my debt."
People who need help shouldn't wait, says Ms Tan Huey Min of CCS.
"People with a debt issue have to deal with it as soon as possible before it snowballs into a greater sum every month," she adds.
Debtors must be mindful of economy
Last month, Prime Minister Lee Hsien Loong warned that Singapore must brace itself for a possible downturn.
Ms Tan Huey Min of Credit Counselling Singapore (CCS) says debtors have to be mindful of the economy and how it will affect their income.
"Once they know that their income is affected, they have to take quick actions to solve the problem before it snowballs into a greater debt," she says.
She adds that while some people gamble their way into debt, the top reason for getting into credit card debt is overspending.
Here's how two individuals found themselves on the slippery slope of credit card debt.
SHOPPING
Mr Nor, 57, often used his credit cards when shopping in Malaysia and Indonesia.
Thinking that he was saving money because of the exchange rate, he used his credit cards to pay for almost everything.
He says: "It was so convenient to keep using my credit cards even in supermarkets."
Mr Nor was earning about $2,000 a month as an administrative officer and an extra $1,000 as a part-time driver.
In 2009, he lost his part-time job and had incurred a debt of about $60,000 from using four credit cards and from four bank loans.
Even though he paid the total minimum sum of $2,000 a month for four years, he still owed $60,000 in 2013 because of interest.
He says: "When the bank warned me about paying immediately, I was so afraid because if I didn't pay up, they said they would take me to court."
He has been on CCS' Debt Management Programme (DMP) for about two years now. In four years' time, he will be debt-free.
GAMBLING
By the time he hit rock bottom in 2012, regional product manager Lee, 44, had a debt of $550,000.
His problem was gambling. He said he would often take foreign visitors to the casinos here but eventually developed an interest in gaming himself.
He says: "The boredom I had after work eventually led to me gambling just for fun.
"As my bets got bigger and bigger, using the credit card became very convenient."
To pay off his credit card debts, he took up three bank loans but continued gambling while paying $1,000 to cover the minimum sum for the three cards he had.
He has been on the DMP for two years and has been paying his debt regularly since then.
Learn to manage your debt
A talk on debt management will be held today at Khoo Teck Puat Hospital.
Jointly organised by National Addictions Management Service, Khoo Teck Puat Hospital and North West Community Development Council, the talk is open to the public.
WHAT About National Addictions Awareness Day WHEN Today, 10am to 3pm WHERE Khoo Teck Puat Hospital
For more details, go to www.nams.sg/arc
BY THE NUMBERS
TOTAL NUMBER OF CREDIT CARD HOLDERS IN SINGAPORE
1,611,008
2015
1,388,828
2011
DEBTORS SEEKING HELP
3,308
2015
2,458
2014
1,838
2013
AVERAGE DEBT PER DEBTOR WHO SOUGHT HELP
$99,623.25
2015
$82,940.25
2013
DELINQUENT DEBTORS (PAYING NOTHING OR LESS THAN MINIMUM SUM)
101,493
2015
73,607
2011
REVOLVING DEBTORS (ROLLING DEBT BY COVERING ONLY MINIMUM SUM)
566,966
2015
510,687
2011
BIGGEST DEBT AMOUNT$1,552,000
2015
$1,281,042
2014
$1,707,657
2013
All figures are from Credit Bureau Singapore and Credit Counselling Singapore. Figures for this year are as of September.
Helplines
The Association of Banks in Singapore introduced the Repayment Assistance Scheme (RAS) this year to help borrowers reduce their credit card debt and other unsecured credit loans over time.
The RAS is administered by the Credit Counseling Singapore (CCS), which centralises repayment solutions.
To be eligible, your income must be less than $120,000 per annum and your outstanding unsecured debt must be greater than your annual income before June 1 this year.
RAS: 6996-6006
CCS: 6225-5227
National Addictions Management Service: 1800-6668-668
- wong chee tat :)
ACCORDING TO THE CREDIT BUREAU SINGAPORE, THE TOTAL NUMBER OF DELINQUENT DEBTORS HIT MORE THAN 101,490 THIS YEAR
Nov 22, 2015 6:00am
BY SEOW YUN RONG
He had a good job that paid him $7,500 a month but the way he used his credit cards, you would think he earned a lot more.
The debts snowballed and before Mr Toh knew it, he owed $103,000 to the banks.
His story is typical of many who have been caught up in a credit card debt situation which has spiralled out of control.
In 2011, the total number of delinquent debtors was just over 73,000.
These are people who pay nothing or less than the minimum sum on their credit card debts.
According to the Credit Bureau Singapore, it has hit more than 101,493 this year.
It is the same story with revolving debtors who roll their credit card debts by covering at least the minimum sum.
More people are also turning to debt counsellors for help.
According to Credit Counselling Singapore (CCS), the biggest credit card debt this year is a whopping $1,552,000.
Mr Toh, too, had no choice but to pick up the phone when he realised he had lost all control.
As with everything, it started small.
The 39-year-old, who now works as a sales officer and part-time taxi driver, was a regional sales manager in 2005 and frequently travelled.
He carried several credit cards to cover his travelling expenses, which his employers reimbursed the following month.
Despite the reimbursement, he'd pay only the monthly minimum sum of $2,500 for his five credit cards for about three years.
He says: "I was earning quite a decent sum then, so I thought I could give my family a better life and pay back the following month."
But he lost track of how much he was spending and how much he could claim, he adds.
Besides paying his parents' medical bills of about $1,000 a month, he would also take his family of seven to restaurants and shopping malls twice a week. A night out typically cost $300.
QUIT JOB
It all went downhill after Mr Toh quit his job in 2012.
He then earned only about $3,500 as a part-time sales officer and taxi driver but the debts followed him.
He says: "At that time, I only thought of my family. I didn't have the motivation to pay more than the minimum sum for my debts."
He did not have enough left over to cover the $2,500 minimum payment each month.
Mr Toh took a bank loan of $10,000 to pay off his credit card debts, only to find out that it was not enough and that loan accumulated interest, too.
His credit card debt snowballed to $103,000 and his financial struggles contributed to his divorce in 2012.
Last year, he finally sought help from CCS.
He now follows the Debt Management Programme which will help him clear all his debt in the next three years.
He says he is thankful for the help from CCS. His sisters are also helping by paying for their parents' medical bills.
Mr Toh says: "Without the support from CCS and my family, I don't think I could ever finish paying my debt."
People who need help shouldn't wait, says Ms Tan Huey Min of CCS.
"People with a debt issue have to deal with it as soon as possible before it snowballs into a greater sum every month," she adds.
Debtors must be mindful of economy
Last month, Prime Minister Lee Hsien Loong warned that Singapore must brace itself for a possible downturn.
Ms Tan Huey Min of Credit Counselling Singapore (CCS) says debtors have to be mindful of the economy and how it will affect their income.
"Once they know that their income is affected, they have to take quick actions to solve the problem before it snowballs into a greater debt," she says.
She adds that while some people gamble their way into debt, the top reason for getting into credit card debt is overspending.
Here's how two individuals found themselves on the slippery slope of credit card debt.
SHOPPING
Mr Nor, 57, often used his credit cards when shopping in Malaysia and Indonesia.
Thinking that he was saving money because of the exchange rate, he used his credit cards to pay for almost everything.
He says: "It was so convenient to keep using my credit cards even in supermarkets."
Mr Nor was earning about $2,000 a month as an administrative officer and an extra $1,000 as a part-time driver.
In 2009, he lost his part-time job and had incurred a debt of about $60,000 from using four credit cards and from four bank loans.
Even though he paid the total minimum sum of $2,000 a month for four years, he still owed $60,000 in 2013 because of interest.
He says: "When the bank warned me about paying immediately, I was so afraid because if I didn't pay up, they said they would take me to court."
He has been on CCS' Debt Management Programme (DMP) for about two years now. In four years' time, he will be debt-free.
GAMBLING
By the time he hit rock bottom in 2012, regional product manager Lee, 44, had a debt of $550,000.
His problem was gambling. He said he would often take foreign visitors to the casinos here but eventually developed an interest in gaming himself.
He says: "The boredom I had after work eventually led to me gambling just for fun.
"As my bets got bigger and bigger, using the credit card became very convenient."
To pay off his credit card debts, he took up three bank loans but continued gambling while paying $1,000 to cover the minimum sum for the three cards he had.
He has been on the DMP for two years and has been paying his debt regularly since then.
Learn to manage your debt
A talk on debt management will be held today at Khoo Teck Puat Hospital.
Jointly organised by National Addictions Management Service, Khoo Teck Puat Hospital and North West Community Development Council, the talk is open to the public.
WHAT About National Addictions Awareness Day WHEN Today, 10am to 3pm WHERE Khoo Teck Puat Hospital
For more details, go to www.nams.sg/arc
BY THE NUMBERS
TOTAL NUMBER OF CREDIT CARD HOLDERS IN SINGAPORE
1,611,008
2015
1,388,828
2011
DEBTORS SEEKING HELP
3,308
2015
2,458
2014
1,838
2013
AVERAGE DEBT PER DEBTOR WHO SOUGHT HELP
$99,623.25
2015
$82,940.25
2013
DELINQUENT DEBTORS (PAYING NOTHING OR LESS THAN MINIMUM SUM)
101,493
2015
73,607
2011
REVOLVING DEBTORS (ROLLING DEBT BY COVERING ONLY MINIMUM SUM)
566,966
2015
510,687
2011
BIGGEST DEBT AMOUNT$1,552,000
2015
$1,281,042
2014
$1,707,657
2013
All figures are from Credit Bureau Singapore and Credit Counselling Singapore. Figures for this year are as of September.
Helplines
The Association of Banks in Singapore introduced the Repayment Assistance Scheme (RAS) this year to help borrowers reduce their credit card debt and other unsecured credit loans over time.
The RAS is administered by the Credit Counseling Singapore (CCS), which centralises repayment solutions.
To be eligible, your income must be less than $120,000 per annum and your outstanding unsecured debt must be greater than your annual income before June 1 this year.
RAS: 6996-6006
CCS: 6225-5227
National Addictions Management Service: 1800-6668-668
- wong chee tat :)
Saturday, November 7, 2015
Standard Chartered job cuts to hit Singapore: Source
Standard Chartered job cuts to hit Singapore: Source
Technology and Operations is an area in Singapore targeted for job cuts, according to a source close to Standard Chartered.
POSTED: 06 Nov 2015 23:45
SINGAPORE: Following Standard Chartered’s announcement that it will axe 15,000 jobs globally, the bank has declined to reveal how many of these job losses will come from Singapore.
However, recent high-profile departures are said to include the bank's global head of FX research Callum Henderson and global head of aviation finance Simon Perkins.
A source familiar with the Asia-focused British lender told Channel NewsAsia on condition of anonymity that Technology and Operations is an area in Singapore targeted for cuts.
When contacted by Channel NewsAsia on Friday (Nov 6), a StanChart spokesperson said a large number of the total headcount reductions will be through attrition. The spokesperson said the bank was unable to provide further details at this point in time.
Standard Chartered currently employs around 7,000 people in Singapore.
The bank on Tuesday said it will cut 15,000 of 86,000 jobs around the world, meaning that nearly one in five employees will lose their jobs.
- CNA/xq
- wong chee tat :)
Technology and Operations is an area in Singapore targeted for job cuts, according to a source close to Standard Chartered.
POSTED: 06 Nov 2015 23:45
SINGAPORE: Following Standard Chartered’s announcement that it will axe 15,000 jobs globally, the bank has declined to reveal how many of these job losses will come from Singapore.
However, recent high-profile departures are said to include the bank's global head of FX research Callum Henderson and global head of aviation finance Simon Perkins.
A source familiar with the Asia-focused British lender told Channel NewsAsia on condition of anonymity that Technology and Operations is an area in Singapore targeted for cuts.
When contacted by Channel NewsAsia on Friday (Nov 6), a StanChart spokesperson said a large number of the total headcount reductions will be through attrition. The spokesperson said the bank was unable to provide further details at this point in time.
Standard Chartered currently employs around 7,000 people in Singapore.
The bank on Tuesday said it will cut 15,000 of 86,000 jobs around the world, meaning that nearly one in five employees will lose their jobs.
- CNA/xq
- wong chee tat :)
Thursday, November 5, 2015
Gloom at StanChart S’pore as bank announced 15,000 job cuts globally
Gloom at StanChart S’pore as bank announced 15,000 job cuts globally
TODAY reports: Several StanChart employees said they were not so much shocked - as the job cuts have been in the offing for a while now - but they remained in an immense state of stress.
By Rumi Hardasmalani, TODAY
POSTED: 04 Nov 2015 09:39
SINGAPORE: The mood is sombre at Standard Chartered’s Singapore offices after the Asia-focused British lender announced on Tuesday (Nov 3) plans to cut 15,000 jobs from its 86,000 global workforce by 2018, while seeking to raise more than US$5 billion (S$7 billion) in new capital.
StanChart Singapore, which employs about 7,000 people and appointed Canadian Judy Hsu as its new CEO as recently as September, declined to comment on the number of jobs that will be cut here.
However, it did say that the bank has substantially completed 1,000 senior staff exits globally, while other positions will be whittled down through attrition.
Several of the bank’s employees, who TODAY spoke to on condition of anonymity, reflected the uncertainty that looms large over their future.
They said they were not so much shocked - as the job cuts have been in the offing for a while now - but they remained in an immense state of stress.
“We are indeed distracted and confused about what we should do next. We are certainly not in a position to negotiate better salaries with other potential employers. The uncertainty is quite scary. We are neither in a position to pick up nor refuse the not-so-attractive job offers in our hands,” said a senior-level StanChart Singapore staffer.
Another senior-level bank employee also noted the gloomy sentiment, but added: “The positive thing is that we are getting regular strategy updates from the CEO’s office these days.”
The senior-level and front-office employees are at a higher risk of being retrenched, with surplus talent in these segments of the market, recruiters told TODAY.
However, those in business-critical roles such as revenue-generation as well as risk-related, compliance and internal audit positions are relatively safe and are not likely to face the axe, they said.
“Even companies that are cutting costs would prioritise hires for these job functions,” said Ms Lynne Roeder, managing director of leading headhunter Hays Singapore.
Besides the global job cuts, London-based StanChart is also raising US$5.1 billion through a two-for-seven rights issue.
The rights shares will be priced at £4.65 (S$10.02) each, or a 35 per cent discount from the last traded price in London.
Singapore investment company Temasek Holdings, StanChart’s largest shareholder with a 15.8 per cent stake, will take up its full allocation.
“We are confirming our participation in the rights issue in proportion to our current holding in the bank,” Mr Stephen Forshaw, managing director Strategic & Public Affairs at Temasek, said in an email response.
According to StanChart, the capital raising is aimed at financing a planned US$3 billion investment over three years into strategic opportunities, technology and upgrading regulatory and compliance systems, besides strengthening balance sheets.
The latest revamp comes as StanChart reported a third-quarter operating loss of US$139 million, swinging from a US$1.5 billion profit in the previous corresponding period, owing to growing regulatory costs and rising loan impairments in India.
The bank said on Monday it targeted savings of US$2.9 billion by 2018 and will restructure or exit US$100 billion of risk-weighted assets after its expansion strategy in emerging markets such as India had backfired, leaving the bank saddled with huge debts.
China’s growth slowdown and sagging global commodity prices had also weighed on the bank’s performance.
StanChart CEO Bill Winters, who took the helm in June, said on Teusday: “The business environment in our markets remains challenging and our recent performance is disappointing. We will execute as quickly as possible to get through this transition phase. These actions will result in a lean, focused and well-capitalised bank, poised for growth.”
After the restructuring and earnings news, StanChart shares plunged 8.9 per cent to 649.80 pence at noon today in London.
- wong chee tat ):
TODAY reports: Several StanChart employees said they were not so much shocked - as the job cuts have been in the offing for a while now - but they remained in an immense state of stress.
By Rumi Hardasmalani, TODAY
POSTED: 04 Nov 2015 09:39
SINGAPORE: The mood is sombre at Standard Chartered’s Singapore offices after the Asia-focused British lender announced on Tuesday (Nov 3) plans to cut 15,000 jobs from its 86,000 global workforce by 2018, while seeking to raise more than US$5 billion (S$7 billion) in new capital.
StanChart Singapore, which employs about 7,000 people and appointed Canadian Judy Hsu as its new CEO as recently as September, declined to comment on the number of jobs that will be cut here.
However, it did say that the bank has substantially completed 1,000 senior staff exits globally, while other positions will be whittled down through attrition.
Several of the bank’s employees, who TODAY spoke to on condition of anonymity, reflected the uncertainty that looms large over their future.
They said they were not so much shocked - as the job cuts have been in the offing for a while now - but they remained in an immense state of stress.
“We are indeed distracted and confused about what we should do next. We are certainly not in a position to negotiate better salaries with other potential employers. The uncertainty is quite scary. We are neither in a position to pick up nor refuse the not-so-attractive job offers in our hands,” said a senior-level StanChart Singapore staffer.
Another senior-level bank employee also noted the gloomy sentiment, but added: “The positive thing is that we are getting regular strategy updates from the CEO’s office these days.”
The senior-level and front-office employees are at a higher risk of being retrenched, with surplus talent in these segments of the market, recruiters told TODAY.
However, those in business-critical roles such as revenue-generation as well as risk-related, compliance and internal audit positions are relatively safe and are not likely to face the axe, they said.
“Even companies that are cutting costs would prioritise hires for these job functions,” said Ms Lynne Roeder, managing director of leading headhunter Hays Singapore.
Besides the global job cuts, London-based StanChart is also raising US$5.1 billion through a two-for-seven rights issue.
The rights shares will be priced at £4.65 (S$10.02) each, or a 35 per cent discount from the last traded price in London.
Singapore investment company Temasek Holdings, StanChart’s largest shareholder with a 15.8 per cent stake, will take up its full allocation.
“We are confirming our participation in the rights issue in proportion to our current holding in the bank,” Mr Stephen Forshaw, managing director Strategic & Public Affairs at Temasek, said in an email response.
According to StanChart, the capital raising is aimed at financing a planned US$3 billion investment over three years into strategic opportunities, technology and upgrading regulatory and compliance systems, besides strengthening balance sheets.
The latest revamp comes as StanChart reported a third-quarter operating loss of US$139 million, swinging from a US$1.5 billion profit in the previous corresponding period, owing to growing regulatory costs and rising loan impairments in India.
The bank said on Monday it targeted savings of US$2.9 billion by 2018 and will restructure or exit US$100 billion of risk-weighted assets after its expansion strategy in emerging markets such as India had backfired, leaving the bank saddled with huge debts.
China’s growth slowdown and sagging global commodity prices had also weighed on the bank’s performance.
StanChart CEO Bill Winters, who took the helm in June, said on Teusday: “The business environment in our markets remains challenging and our recent performance is disappointing. We will execute as quickly as possible to get through this transition phase. These actions will result in a lean, focused and well-capitalised bank, poised for growth.”
After the restructuring and earnings news, StanChart shares plunged 8.9 per cent to 649.80 pence at noon today in London.
- wong chee tat ):
Thursday, October 29, 2015
Deutsche Bank cutting 15,000 jobs as new CEO sets out strategy plan
Deutsche Bank cutting 15,000 jobs as new CEO sets out strategy plan
POSTED: 29 Oct 2015 18:10 UPDATED: 29 Oct 2015 18:15
FRANKFURT: Deutsche Bank is slashing 15,000 jobs and shedding assets in which some 20,000 staff are employed, as new Chief Executive John Cryan starts to implement a deep overhaul aiming to improve returns at Germany's biggest bank.
Cryan said the bank will sacrifice its 2015 and 2016 dividends as it seeks to bolster its finances and retain money to pay for sins of the past. "I do not think that 2016 and 2017 will be strong years," he told reporters on Thursday.
Shares in the bank were down 6 percent at 25.815 euros by 0850 GMT. "We still believe there are major risks here and therefore think a capital increase in 2016 is still highly probable," Citi analysts said in a note.
A trader said: "Investors are very disappointed. Two years of no dividends and CEO Cryan cautions 2016 and 2017 won’t be strong in terms of business either. That’s a long time and shareholders are wondering why they should stay invested."
Cryan is under pressure to overhaul Germany's biggest bank, with costly litigation from past scandals and fallout from a market rout in Asia pushing its valuation well below rivals.
"Deutsche Bank does not have a strategy problem. We know exactly where we want to go. But we have had a grave problem in implementing it," Cryan said, addressing reporters in German, in contrast to his predecessor Anshu Jain who regularly drew criticism for never mastering the language.
Cryan said staff will feel the pain. "I have said that it would not be all sweetness and light," he said, adding it would be unacceptable not to share some of the cost of the settlement of interest-rate rigging and consequences of poor past behavior.
In the context of the group making a 2015 loss, its supervisory board will discuss if it will be appropriate for the board to pay bonuses, he said.
Co-CEO Juergen Fitschen acknowledged the bank has not yet done enough in changing its behavioral culture. "Cultural change ... it needs to be filled with content. What we have brought about is only the beginning," Fitschen said.
The lender is to axe 9,000 full-time jobs and 6,000 external contractor positions. Three quarters of the other 20,000 jobs to go are at retail unit Postbank , which Deutsche Bank is spinning off.
"We were concerned that our shareholders thought cost-cut goals were not ambitious enough. We think they are realistic based on the need to remain competitive," Cryan said.
"We think we should retain capital in order to strengthen the company. Because we have to run business on the basis that we could encounter stress. We need to build a buffer above the minimum."
ELIMINATION OF DIVIDEND
Deutsche Bank said late the previous day it was targeting a reduction of its risk-weighted assets to about 320 billion euros (US$349 billion) by end-2018 from 416 billion at the end of June, towards the top end of analysts' expectations.
"The plan is based on the elimination of the Deutsche Bank common share dividend for the fiscal years 2015 and 2016," it said in a statement, adding it aimed to resume paying dividends thereafter.
Ever since its post-World War Two reestablishment in 1952, Deutsche Bank has always paid a dividend.
Earlier this month, the lender announced it would split its investment bank in two and part ways with three of its eight management board members.
The bank also said it was aiming to bring down adjusted non-interest expenses to less than 22 billion euros by 2018 from 23.8 billion in 2014, and to reduce its cost/income ratio to 70 percent in 2018 from 84.3 percent at the end of June.
By comparison, Barclays , Credit Suisse and UBS , which are also cutting costs and devising new strategies, currently only spend 64 to 77 cents to earn a euro.
Other major international banks such JP Morgan and UBS made swifter changes to address persistently low interest rates and tighter regulation after the financial crisis.
While Credit Suisse, which also intends to slim down its investment bank, plans to raise 6 billion Swiss francs (US$6 billion) from investors to bolster capital, Deutsche Bank has not so far signaled it is considering such a step.
Deutsche Bank also posted a 20 percent rise in revenue at its lucrative bond trading business in the third quarter, helping take the sting out of a record 6 billion euro group pretax loss.
Revenue at its Corporate Banking and Securities business rose 2 percent to 3.2 billion euros, helped by higher revenue in rates, credit and distressed and emerging markets.
Peers such as Morgan Stanley and Goldman Sachs reported steep declines in bond trading performance in the quarter.
The loss was caused by massive charges for goodwill and legal expenses at its investment bank and on assets earmarked for disposal, as well as higher litigation charges.
(Reporting by Arno Schuetze and Jonathan Gould; Editing by Georgina Prodhan and David Holmes)
- Reuters
- wong chee tat :)
POSTED: 29 Oct 2015 18:10 UPDATED: 29 Oct 2015 18:15
FRANKFURT: Deutsche Bank is slashing 15,000 jobs and shedding assets in which some 20,000 staff are employed, as new Chief Executive John Cryan starts to implement a deep overhaul aiming to improve returns at Germany's biggest bank.
Cryan said the bank will sacrifice its 2015 and 2016 dividends as it seeks to bolster its finances and retain money to pay for sins of the past. "I do not think that 2016 and 2017 will be strong years," he told reporters on Thursday.
Shares in the bank were down 6 percent at 25.815 euros by 0850 GMT. "We still believe there are major risks here and therefore think a capital increase in 2016 is still highly probable," Citi analysts said in a note.
A trader said: "Investors are very disappointed. Two years of no dividends and CEO Cryan cautions 2016 and 2017 won’t be strong in terms of business either. That’s a long time and shareholders are wondering why they should stay invested."
Cryan is under pressure to overhaul Germany's biggest bank, with costly litigation from past scandals and fallout from a market rout in Asia pushing its valuation well below rivals.
"Deutsche Bank does not have a strategy problem. We know exactly where we want to go. But we have had a grave problem in implementing it," Cryan said, addressing reporters in German, in contrast to his predecessor Anshu Jain who regularly drew criticism for never mastering the language.
Cryan said staff will feel the pain. "I have said that it would not be all sweetness and light," he said, adding it would be unacceptable not to share some of the cost of the settlement of interest-rate rigging and consequences of poor past behavior.
In the context of the group making a 2015 loss, its supervisory board will discuss if it will be appropriate for the board to pay bonuses, he said.
Co-CEO Juergen Fitschen acknowledged the bank has not yet done enough in changing its behavioral culture. "Cultural change ... it needs to be filled with content. What we have brought about is only the beginning," Fitschen said.
The lender is to axe 9,000 full-time jobs and 6,000 external contractor positions. Three quarters of the other 20,000 jobs to go are at retail unit Postbank , which Deutsche Bank is spinning off.
"We were concerned that our shareholders thought cost-cut goals were not ambitious enough. We think they are realistic based on the need to remain competitive," Cryan said.
"We think we should retain capital in order to strengthen the company. Because we have to run business on the basis that we could encounter stress. We need to build a buffer above the minimum."
ELIMINATION OF DIVIDEND
Deutsche Bank said late the previous day it was targeting a reduction of its risk-weighted assets to about 320 billion euros (US$349 billion) by end-2018 from 416 billion at the end of June, towards the top end of analysts' expectations.
"The plan is based on the elimination of the Deutsche Bank common share dividend for the fiscal years 2015 and 2016," it said in a statement, adding it aimed to resume paying dividends thereafter.
Ever since its post-World War Two reestablishment in 1952, Deutsche Bank has always paid a dividend.
Earlier this month, the lender announced it would split its investment bank in two and part ways with three of its eight management board members.
The bank also said it was aiming to bring down adjusted non-interest expenses to less than 22 billion euros by 2018 from 23.8 billion in 2014, and to reduce its cost/income ratio to 70 percent in 2018 from 84.3 percent at the end of June.
By comparison, Barclays , Credit Suisse and UBS , which are also cutting costs and devising new strategies, currently only spend 64 to 77 cents to earn a euro.
Other major international banks such JP Morgan and UBS made swifter changes to address persistently low interest rates and tighter regulation after the financial crisis.
While Credit Suisse, which also intends to slim down its investment bank, plans to raise 6 billion Swiss francs (US$6 billion) from investors to bolster capital, Deutsche Bank has not so far signaled it is considering such a step.
Deutsche Bank also posted a 20 percent rise in revenue at its lucrative bond trading business in the third quarter, helping take the sting out of a record 6 billion euro group pretax loss.
Revenue at its Corporate Banking and Securities business rose 2 percent to 3.2 billion euros, helped by higher revenue in rates, credit and distressed and emerging markets.
Peers such as Morgan Stanley and Goldman Sachs reported steep declines in bond trading performance in the quarter.
The loss was caused by massive charges for goodwill and legal expenses at its investment bank and on assets earmarked for disposal, as well as higher litigation charges.
(Reporting by Arno Schuetze and Jonathan Gould; Editing by Georgina Prodhan and David Holmes)
- Reuters
- wong chee tat :)
Sunday, March 29, 2015
SIBOR rises above 1% in sign that mortgages could rise further
SIBOR rises above 1% in sign that mortgages could rise further
POSTED: 24 Mar 2015 13:21
The three-month Singapore interbank offered rate (SIBOR) at 1.00129 per cent on Tuesday (March 24) is the first time it rose above the 1 per cent mark in more than six years.
SINGAPORE: A key benchmark lending rate rose above the 1 per cent level for the first time in more than six years, indicating that mortgage rates will increase further in coming weeks.
The three-month Singapore interbank offered rate (SIBOR) was fixed at 1.00129 per cent on Tuesday (March 24), according to Association of Banks in Singapore (ABS) data posted on Bloomberg, up 0.9 per cent from Monday's fixing of 0.99216 per cent. The rate has been climbing steadily since end-December when it stood at around 0.45 per cent.
Many home loans in Singapore are pegged to SIBOR. For instance, Oversea-Chinese Banking Corp (OCBC) has a home loan package that charges an interest rate 0.85 percentage point above three-month SIBOR. If SIBOR rises, the interest rate will also increase. OCBC will review the rate every three months based on movements in SIBOR.
Singapore interest rates have been on the rise, in line with expectations that the US Federal Reserve will increase interest rates this year.
The weakening of the Singapore dollar against its US counterpart has also pushed rates higher since investors need more incentive to hold onto the local currency. The Singapore dollar is currently trading at around S$1.37 to the greenback, from around S$1.32 at the end of last year.
- CNA/kk
- wong chee tat :)
POSTED: 24 Mar 2015 13:21
The three-month Singapore interbank offered rate (SIBOR) at 1.00129 per cent on Tuesday (March 24) is the first time it rose above the 1 per cent mark in more than six years.
SINGAPORE: A key benchmark lending rate rose above the 1 per cent level for the first time in more than six years, indicating that mortgage rates will increase further in coming weeks.
The three-month Singapore interbank offered rate (SIBOR) was fixed at 1.00129 per cent on Tuesday (March 24), according to Association of Banks in Singapore (ABS) data posted on Bloomberg, up 0.9 per cent from Monday's fixing of 0.99216 per cent. The rate has been climbing steadily since end-December when it stood at around 0.45 per cent.
Many home loans in Singapore are pegged to SIBOR. For instance, Oversea-Chinese Banking Corp (OCBC) has a home loan package that charges an interest rate 0.85 percentage point above three-month SIBOR. If SIBOR rises, the interest rate will also increase. OCBC will review the rate every three months based on movements in SIBOR.
Singapore interest rates have been on the rise, in line with expectations that the US Federal Reserve will increase interest rates this year.
The weakening of the Singapore dollar against its US counterpart has also pushed rates higher since investors need more incentive to hold onto the local currency. The Singapore dollar is currently trading at around S$1.37 to the greenback, from around S$1.32 at the end of last year.
- CNA/kk
- wong chee tat :)
Monday, November 10, 2014
Singaporeans more upbeat over jobs, finances: Nielsen
Singaporeans more upbeat over jobs, finances: Nielsen
However, while consumer confidence is rising, more Singaporeans say they want to put their spare cash into savings compared to the same time last year, according to the Nielsen Survey of Consumer Confidence and Spending Intentions.
- wong chee tat :)
However, while consumer confidence is rising, more Singaporeans say they want to put their spare cash into savings compared to the same time last year, according to the Nielsen Survey of Consumer Confidence and Spending Intentions.
SINGAPORE: People in the Republic are more upbeat over their job prospects and personal finances, according to the latest findings from global measurement company Nielsen.
According to the third-quarter Consumer Confidence Index released on Monday (Nov 10), consumer confidence levels climbed over the 100-point baseline for the first time since Q3 2011 to reach 103 points. Consumer confidence levels above and below the baseline indicate degrees of optimism and pessimism.
In Nielsen's Global Survey of Consumer Confidence and Spending Intentions, it also revealed that 59 per cent of Singaporeans see their personal finances for the coming year as good or excellent. There was also an eight-point increase on-quarter in the number of consumers who feel that future job prospects would be positive, from 53 per cent in Q2 to 61 per cent in Q3.
While confidence is on the rise, more Singaporean want to put their spare cash into savings compared to the same time last year, showed the survey. But Singaporeans are also the most inclined to spend their spare cash on vacations globally, with 51 per cent willing to spend on trips. This is an increase of 8 percentage points, compared to Q2 2014.
On the other end of the scale, 5 per cent of Singaporeans surveyed in the third quarter said they have no spare cash.
Singaporeans are also trying to cut down on their household bills, reported Nielsen, with 63 per cent wanting to do so. To this end, they said they want to spend less on new clothes, switch to cheaper grocery brands and cut down on out-of-home entertainment.
The Nielsen Survey of Consumer Confidence and Spending Intentions was conducted between Aug 13 and Sep 5 this year, and polled 515 Singaporeans. The findings were based only on the behaviour of respondents with Internet access, according to the company.
- CNA/av
- wong chee tat :)
Wednesday, November 5, 2014
Bank lending in Singapore flat in September
Bank lending in Singapore flat in September
Loans and advances by banks in Singapore amounted to S$604.5 billion last month compared with S$604.6 billion in August, central bank data showed.
SINGAPORE: Total bank lending in Singapore hardly changed in September from August, according to preliminary data from the Monetary Authority of Singapore (MAS) on Friday (Oct 31).
Loans and advances by banks in Singapore amounted to S$604.5 billion last month compared with S$604.6 billion in August. On a year-on-year basis, total bank lending rose 10.6 per cent in September from S$546.6 billion a year earlier.
Housing and bridging loans increased 6.5 per cent last month to S$174.5 billion from S$163.8 billion a year earlier, while credit card lending rose 7 per cent in September to S$9.98 billion from S$9.33 billion in the same period last year.
Overall, total consumer loans rose 5.7 per cent last month to S$233.6 billion from S$220.9 billion in September last year.
- CNA/cy
- wong chee tat :)
Loans and advances by banks in Singapore amounted to S$604.5 billion last month compared with S$604.6 billion in August, central bank data showed.
SINGAPORE: Total bank lending in Singapore hardly changed in September from August, according to preliminary data from the Monetary Authority of Singapore (MAS) on Friday (Oct 31).
Loans and advances by banks in Singapore amounted to S$604.5 billion last month compared with S$604.6 billion in August. On a year-on-year basis, total bank lending rose 10.6 per cent in September from S$546.6 billion a year earlier.
Housing and bridging loans increased 6.5 per cent last month to S$174.5 billion from S$163.8 billion a year earlier, while credit card lending rose 7 per cent in September to S$9.98 billion from S$9.33 billion in the same period last year.
Overall, total consumer loans rose 5.7 per cent last month to S$233.6 billion from S$220.9 billion in September last year.
- CNA/cy
- wong chee tat :)
Saturday, May 31, 2014
Online banking thefts hit Japan firms
Online banking thefts hit Japan firms
- wong chee tat :)
[TOKYO] Hackers stole nearly US$2 million from the online bank accounts of Japanese businesses in April, a surge in theft that has prompted some banks to curtail online services and rethink compensation policies, executives and regulators say.
In April there were 50 cases of theft from online accounts held by Japanese businesses with nearly 200 million yen stolen, according to a person with knowledge of the industry-wide tally, which has not been made public. That was more than the entire previous year.
Japanese businesses reported 34 cases of online banking theft for the year ended March with a total of US$1.8 million stolen, according to data released by the Japanese Bankers Association.
Earlier this month, a senior official with Japan's Financial Services Agency told regional bank executives that regulators were concerned that online theft could cause a chain of small business failures and bankruptcies, according to participants who attended the closed-door meeting.
Mitsubishi UFJ Financial Group and Mizuho Financial Group said their corporate customers had been hit by online thefts. Top regional lenders such as Fukuoka Financial Group and Bank of Yokohama also said their clients had also experienced losses.
Corporate users of online banking in Japan tend to be small businesses and family-owned firms. In a typical theft, hackers trick owners into surrendering passwords or gain control of poorly protected computer systems to make transfers out of their accounts, industry officials and security experts said. "This has become a serious problem," Masaaki Tani, president of Fukuoka Financial Group, the largest regional bank, said earlier this month.
It was not clear why cases of such theft had increased so rapidly although bankers elsewhere have warned of a growing threat from hackers. "Cybersecurity attacks are becoming increasingly complex and more dangerous," JPMorgan Chase &; Co Chief Executive Jamie Dimon said in a letter to shareholders in April.
Japan's banks are divided on how to respond. Promising compensation might remove an incentive for businesses to tighten security, some executives say. At the same time, tightening security too much could kill the convenience of online banking.
In April, many regional banks suspended a service which allowed clients to transfer money on the spot to accounts that were not pre-registered. Chiba Bank reduced its online transfer limit to 10 million yen, from just under 100 million yen.
Until now, the question of whether to compensate businesses for online theft has been left to each bank. Most offer fewer protections than they do for individual accounts.
Resona Bank has said it will compensate business clients for Internet losses of up to 50 million yen when customers have taken appropriate security measures.
The lender is part of Resona Holdings, Japan's fourth-largest banking group by assets. Resona's pledge is part of a push to build its business, including lending, to small- and medium-sized businesses at a time when overall loan demand remains weak.- Reuters
- wong chee tat :)
Wednesday, May 21, 2014
Joint Press Release by HDB & CPF - CPF Members Receive 2.5% Interest Rate On Ordinary Accounts From 1 July 2014 TO 30 September 2014
ShareDate issued : 21 May 2014
Interest Rate For Ordinary Account (OA)
All CPF members will continue to enjoy a risk-free interest rate of 2.5% per annum on their Ordinary Account savings from 1 July 2014 to 30 September 2014.
The computed CPF interest rate, derived from the major local banks’ interest rates for the three-month period, February 2014 to April 2014, worked out to be 0.21% per annum. As this is below the legislated minimum of 2.50% per annum, the OA interest rate for July 2014 to September 2014 will remain unchanged at 2.50% per annum.
Extra Interest of 1%
As part of our efforts to enhance the retirement savings of CPF members, an extra 1% per annum interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the OA. The extra interest from the OA will go into the member’s Special or Retirement Account.
HDB’s Mortgage Rate
The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the CPF interest rate for the OA, will remain unchanged at 2.60% per annum from 1 July 2014 to 30 September 2014.
The detailed computations of the CPF OA interest rate and the HDB mortgage loan interest rate are given in the Annex 
(PDF 188KB).
(PDF 188KB).Public Enquiries
For more information, please visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188.
- wong chee tat :)
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