|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||8.68 - 9.10|
|52 Week Range||8.20 - 12.14|
|Beta (5Y Monthly)||1.36|
|PE Ratio (TTM)||7.18|
|Earnings Date||May 08, 2020|
|Forward Dividend & Yield||0.69 (7.52%)|
|Ex-Dividend Date||Apr 30, 2020|
|1y Target Est||14.41|
(Bloomberg Opinion) -- Standard Chartered Plc may have many failings. At least it has a leader.The London-based emerging markets bank run by Bill Winters hasn’t had the best of years, and the outlook, with so much exposure to virus-affected Hong Kong, is looking grim.It does, though, have a stable team, led by a CEO about to complete five years in the job. That puts the bank in a better place than traditional rival HSBC Holdings Plc, which is undergoing a radical overhaul with 35,000 job cuts under caretaker CEO Noel Quinn.On Thursday, StanChart posted full-year underlying pretax profit of $4.2 billion, slightly behind the consensus forecast of $4.3 billion, and announced a $500 million buyback. That was less than the $1 billion analysts had expected. The bank salved the disappointment by hinting that it will return more capital to shareholders after completing the sale of its stake in Indonesia’s PT Bank Permata. There’s no share buyback in the works at HSBC.Standard Chartered said that the coronavirus outbreak will delay its target of a 10% return on tangible equity by 2021. The epidemic has led to a shutdown of factories in China and wide-ranging travel disruption that has interrupted global trade. Its warning mirrors that from HSBC, which said last week that the outbreak could lead to as much as $600 million in additional loan losses if it continues into the second half of the year.Having Winters at the helm gives StanChart an edge — and not just over HSBC. Several other European banks have new or no heads. Earlier this month, Credit Suisse Group AG named a new CEO after ousting Tidjane Thiam over a spying scandal; UBS Group AG poached ING Groep NV Chief executive Ralph Hamers; Barclays Plc, according to the Financial Times, is looking for a replacement for Jes Staley, who’s preparing to retire from the bank next year amid allegations of links to sex offender Jeffrey Epstein.Winters hasn’t exactly had a chummy relationship with investors. He took a pay cut after shareholders complained about his high pension allowance last year, a revolt that he initially criticized as “immature and unhelpful.” To put that painful episode behind him, the CEO will need to offer a meaningful increase in shareholder returns from last year’s 6.4%, two percentage points lower than HSBC.Unfortunately, this is unlikely to be the year. As with HSBC, Hong Kong is StanChart’s single biggest market. Before the impact of last year’s anti-government protests could fade, the coronavirus has arrived to threaten the economy again. The outbreak will also hurt Singapore, another key market.All the same, if and when he leaves Winters will in all likelihood hand over a more solid franchise than he received. When he joined in June 2015, StanChart was neck deep in bad corporate loans in India and Indonesia. That problem is in the rearview mirror now. Even though the loan loss rate ticked slightly higher last year, it was just over half what it was two years ago. While asset quality pressures may rebuild because of the supply-chain disruption from the coronavirus, at least the bank’s ability to endure as an independent institution is no longer in doubt. Having made a mark as a digital lender in underbanked Africa, StanChart is now in the fray to open an online-only bank in Hong Kong. Given the aging demographics of its existing client base in the former British colony, going after more millennials and Generation Z customers may be a smart move.Asia is the biggest profit pool for banks worldwide. But growth is slowing and competition from fintech is on the rise. With global interest rates once again going limp, there’s little hope for boosting profit margins. While Winters can perhaps keep a tight leash on costs, he may not be able to pare them any further. Having pushed back the 10% return on equity target to beyond next year, even juicy buybacks won’t keep investors from souring on the one CEO who — to borrow from a StanChart advertising tagline — seems to be here for good. Or as close to that as it gets in European banking nowadays.To contact the authors of this story: Nisha Gopalan at email@example.comAndy Mukherjee at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- After being ruled by effectively the same coalition for 61 years, Malaysia just witnessed the alternative collapse in less than two. The crisis sparked by the shock resignation of the 94-year-old prime minister, Mahathir Mohamad, and how it’s resolved will grab all the attention for now. But the arrival of short-cycle politics will cast a long shadow over the Southeast Asian nation and investors will reset their antennae.Mahathir ruled from 1981 until retirement in 2003, only to return 15 years later to cause the biggest electoral upset in Malaysia’s history. But while his latest government did make an early attempt to remove politicians from state-linked companies and disallow “support letters” that help favored businessmen win contracts, institutions in Malaysia remain far too unreformed and weak to withstand prolonged political flux. What happens next is unclear, though an investment recovery this year can be easily ruled out. Mahathir might yet cobble together the 112 lawmakers needed to form the next government. Or, he may back someone other than Anwar Ibrahim, to whom he was supposed to hand over the top job after about two years. But the prime minister obviously didn’t like his new partner and old enemy enough to commit to a transition date. (Mahathir fired Anwar, who was his chosen successor, in 1998 during the Asian financial crisis. Anwar was imprisoned on convictions of corruption and sodomy that he said were a plot to remove him from politics). The 72-year-old Anwar could take a shot at power, though he looks resigned to not becoming the eighth prime minister of independent Malaysia. “Maybe the ninth,” he said at a prayer ceremony at his home as the fall of Mahathir’s government looked imminent. His party, which was allied with Mahathir in an unwieldy coalition, has split. Economic Affairs Minister Azmin Ali, who was also jockeying for the top job, left with a small breakaway faction of 10 other lawmakers.The long-ruling Barisan Nasional regime, which was Mahathir’s political home before he fell out with his successors, is now back in the frame. Backing Mahathir — or his appointee — against Anwar may be the best chance for its elites to revive the old order. The coalition lost its stranglehold on power in 2018 because of popular disgust against then-premier Najib Razak over a scandal in which $4.5 billion was allegedly stolen from the 1Malaysia Development Bhd, or 1MDB, state investment company and laundered around the world. Najib is on trial for a range of related crimes; the former prime minister rejects the allegations against him.Whatever the outcome, it looks likely that the new dispensation will seek legitimacy by aligning itself with the Malay-Muslim majority. The ethnic Chinese and Indian minorities, which had long hoped that Anwar would get a chance to fulfill his promise of making economic entitlements needs-based, rather than centered on race, will be disappointed. Decades of pro-Malay policies forged in great part under Mahathir have encouraged rent-seeking while prompting young, educated and disillusioned minorities to seek their fortunes elsewhere.When it comes to spawning new-age digital companies, the country is lagging behind its neighbors. Smaller Singapore and poorer Indonesia are both doing better, despite Malaysia making an early start to industrialize its traditional oil and plantation economy. Any emerging coalitions will be too vested in the status quo of public construction contracts to seek a course correction. Unstable administrations also tend to be myopic about spending and taxation. One of the first things Mahathir did upon his May 2018 return was to scrap the goods and services tax, which had lowered Malaysia’s budgetary reliance on its aging oil fields. The GST was deeply unpopular because it was perceived to have raised the cost of living. But Malaysia’s high investment-grade rating probably won’t survive the global electric-vehicle revolution without more diversified sources of government revenue. It’s unclear how committed a new finance minister will be to medium-term fiscal goals. What should investors make of this muddle? Most of the reassessment may occur in the price of the currency as foreigners get cold feet. Malaysian government debt, on the other hand, might remain in demand from local retirement funds.A slowing economy, which is already starting to weigh on the under-performing equity market, could support bonds. The coronavirus outbreak in China, which absorbs more than a fifth of Malaysian exports, is threatening to crush gross domestic product growth this year to 3.5%, according to ING Groep NV, its slowest since the global financial crisis.But just as neighboring Singapore rolls out billions of dollars in fiscal relief to mitigate the impact of the epidemic, decision-making in Kuala Lumpur is suddenly imploding, with Mahathtair continuing only as interim prime minister. The economy this year could well become an early victim of Malaysia’s shortening political cycle.To contact the author of this story: Andy Mukherjee at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- European banks have a problem with their boardrooms.From the Anglo-Asian giant HSBC Holdings Plc to Spain’s Banco Santander SA and Switzerland’s Credit Suisse Group AG, a troubling phenomenon has become apparent at many of the region’s lenders: the weakness of the body tasked with ensuring the company’s success.Bankers are already under pressure because of rock-bottom interest rates and digital disruption, so it’s far from ideal that their boards appear slow, clumsy and overly beholden to their chief executives. Proper corporate governance matters as much now as it did during the financial crisis. While lenders may be simpler and safer by some measures, they’re still impenetrable to the outside world, and new risks are always emerging. Their CEOs need to be chosen, managed and held in check more effectively.An endless series of boardroom dramas has beset Europe’s banks in the past year. Consider HSBC. the continent’s biggest lender has just embarked on its biggest overhaul in decades (its third attempt to adapt to the post-crisis era), a plan that involves tens of thousands of job cuts, scrapping buybacks and reallocating capital to more profitable businesses. It’s hardly the time to be leaderless.Yet six months after ousting CEO John Flint, who only held the job for a year and a half, HSBC’s board hasn’t made up its mind whether it wants to give his interim replacement Noel Quinn the job, or to hire externally.In fairness, finding the right boss for a sprawling bank with a $2.7 trillion balance sheet is the most important task of the board and Chairman Mark Tucker — alongside setting the strategy. It mustn’t be rushed. But a strategic overhaul of this magnitude needs a leader who owns the new plan. The longer the appointment drags out, the tougher it will be for Quinn to execute; and the harder it would be for a credible external candidate to implement someone else’s turnaround story. The board has given itself until as late as August, but time isn’t on its side after the favorite outside candidate, UniCredit SpA’s Jean Pierre Mustier, committed himself to his current employer.HSBC’s board is in fine company when it comes to messy situations. At Barclays Plc, another regulatory probe into CEO Jes Staley — this time looking at his relationship with the disgraced financier Jeffrey Epstein — raises questions about oversight at the top of the firm. Staley was fined previously for attempting to unmask a Barclays whistleblower. The London-based bank took two months to go public on the latest inquiry, and it hasn’t shared details of its own review into the CEO’s relationship with Epstein. While one shouldn’t jump to conclusions, more transparency from the board would have been invaluable to investors.Elsewhere, the Credit Suisse board hardly covered itself in glory during a months-long spying scandal that cost CEO Tidjane Thiam his job. While Thiam was cleared of knowing about the surveillance operations against employees, past and present, it’s pretty damning that neither he nor the board were aware of those activities being carried out by key personnel. The Swiss giant’s directors must share responsibility for an episode that damaged the bank’s reputation and upset employees.In April, Santander faces its own embarrassing showdown in a Spanish court. After withdrawing its offer of the CEO post to Andrea Orcel — the former head of investment banking at UBS Group AG — over a disagreement on pay, Santander is being sued by Orcel for more than 100 million euros ($108 million). Why Santander would have agreed to honor UBS’s generous financial obligations to Orcel, and then withdrew the proposal, is unclear. A detailed account of alleged text messages between Santander Chairman Ana Botin and Orcel and his wife, published by Reuters, points to personal relationships possibly playing a bigger role than they should have in a CEO appointment.For its part, UBS botched its own internal CEO succession plan, and eventually hired Ralph Hamers from ING Groep NV — despite the Dutch bank’s failings over money-laundering and Hamers’s lack of experience in UBS’s core businesses. That was a controversial move by the directors of the world’s biggest wealth manager. In the age of the “purposeful company,” bank boards should be leading the way on properly representing their shareholders, as well as employees and society. It isn’t obvious whose interest they’ll serve by remaining so ineffective. To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- If you’re a banker sitting somewhat idle at UBS Group AG, you may be feeling vulnerable today. The Swiss giant has picked Ralph Hamers — an outsider credited with making ING Groep NV one of Europe’s most digitally savvy and cost-efficient banks — as its new chief executive officer. That sets a clear strategic direction for UBS.The lender is turning to an experienced hand in trimming costs and using machines instead of humans. Still, beyond the obvious signals about how UBS intends to defend its bottom line in the future, it’s hard to portray the recruitment of the 53-year-old Dutchman, a lifer in banking, as a truly radical choice at a time when the robots are taking over finance. As Morgan Stanley’s $13 billion acquisition of E*Trade Financial Corp. shows, managing wealth in the future will involve a considerable degree of technology nous and automation. Hamers did well by introducing popular banking apps for ING’s retail customers, but servicing the rich is a different game.Plus, with the boardrooms of some of Europe’s biggest banks mired in controversy, the arrival of the former ING CEO will raise a few eyebrows: The Dutch lender had to pay $900 million to settle an investigation into alleged money-laundering.After successfully turning around UBS by shrinking its trading business and expanding in private banking, outgoing CEO Sergio Ermotti has taken his foot off the pedal somewhat recently. The $2.6 trillion wealth manager hasn’t adapted as swiftly as competitors to negative interest rates and the firm’s bloated costs have hit its profitability.So hiring someone from outside Swiss financial circles will at least bring some kind of break. A focus on operational costs has helped another Swiss bank, Credit Suisse Group AG, and Italy’s UniCredit SpA.While it’s not entirely obvious that Hamers can replicate at UBS what he did in Dutch consumer banking, his laser focus on expenses will be positive. The appointment also ends uncertainty about the leadership of the Swiss bank, where half the executive management team has changed in the past two years.Hamers is certainly experienced, having spent almost three decades at ING, including six as CEO, but he’s never cut his teeth running an investment bank. That unit soaks up 30% of UBS’s risk-weighted assets and is generating returns that even Ermotti deems unacceptable. Nor has the new man run a wealth management business, which makes up about 60% of UBS’s profit. Barclays analysts noted that none of the investors they’d spoken to had named Hamers as a potential Ermotti successor.Then there’s ING’s patchy record of oversight and controls. In 2018, the Dutch lender agreed to pay that $900 million to settle an investigation into corrupt practices by former clients. The bank was also reprimanded by its regulators over the money-laundering scandal. Its chief finance officer had to leave.In fairness, it’s hard to find a senior banker with a question-free past right now: Nordic banks have been embroiled in money-laundering scandals too; Credit Suisse ousted CEO Tidjane Thiam amid a spying scandal; and Barclays Plc’s CEO is being probed by British regulators over his ties to the deceased financier Jeffrey Epstein.Hamers arrives with many of the right attributes for the job, and UBS investors pushed up the share price on Thursday. UBS Chairman Axel Weber says his new CEO will have learnt from the money-laundering debacle. But this is a very big beast to get right. To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- ING Groep NV may face little investor pushback if it revives a sale of risky bonds that was derailed by the sudden exit of Chief Executive Officer Ralph Hamers.“We don’t expect the bank to encounter any hurdles when it comes back,” said Sohail Malik, co-chief investment officer and portfolio manager at Roxbury Asset Management, which doesn’t hold ING AT1s. “The market has digested this now.”Shares and bonds of ING stabilized on Thursday as the news of Hamers’s move to UBS Group AG provided a reason for the postponement of the Additional Tier 1 sale. Securities dropped in the wake of Wednesday’s unexplained postponement, which came even after investors had placed more than $11 billion of orders in the $1 billion offering.“Things didn’t turn out as bad as many have feared,” said Michael Huenseler, a portfolio manager at Assenagon Asset Management, which owns some ING AT1s. “But, I’d still call it highly unusual.”A spokesman for ING declined to comment on the bank’s AT1 plans, including on whether issuance would have to wait for a new or interim CEO.Investors have previously shown appetite for deals halted amid much greater uncertainty than that facing ING. Danske Bank A/S completed a sale of dollar senior non-preferred bonds in January 2019, days after a delay caused by money-laundering revelations.ING also has a $1 billion 6% AT1 callable on April 16. It will need to give holders 30 days’ notice if it intends to use this redemption option.The note is trading around par, suggesting investors still expect a call. The bank’s comfortable AT1 buffer means it can redeem the old bond even without selling a new one, according to Simon Adamson, chief executive at CreditSights, a research company.Still, the lender will likely press ahead with the planned sale, potentially with a small coupon boost as a goodwill gesture, he said.“I don’t think the CEO news will have much -- if any -- impact on them issuing,” said Adamson. “A change of CEO tends not to rattle the bond market, unless there’s a bigger story behind it.”To contact the reporter on this story: Alice Gledhill in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Hannah Benjamin at email@example.com, Neil Denslow, V. RamakrishnanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- By naming ING Groep NV’s Ralph Hamers as its next chief executive officer, UBS Group AG turned to an outsider with a record of pushing digital banking but who has been vilified in the Netherlands over a money-laundering scandal.The choice of Hamers, 53, to succeed Sergio Ermotti surprised analysts, investors and even insiders because of his limited experience in wealth management and investment banking, UBS’s core businesses. Shares in both UBS and ING rose.Hamers “is the person to lead UBS’s continued transformation and build upon its successful strategy,” Chairman Axel Weber said in a statement. He’s “a seasoned and well-respected banker with proven expertise in digital transformation.”Hamers is a relative stranger to the rarefied world of Swiss private banking after a nearly three-decade career at ING, most of whose business is retail banking. He climbed the ranks through a series of roles including head of the Dutch and Belgian units and the firm’s global commercial lending division. He’s been CEO since 2013, leading a digital banking push in an effort to win customers while trimming costs.“The appointment is definitely a surprise,” said Rahul Sen, the global leader of wealth management and private banking at Boyden Executive Search. Money LaunderingMore recent troubles made Hamers a target of criticism at home. After getting caught up in a scandal involving Russian dirty money, ING agreed in 2018 to pay about $900 million to settle a Dutch investigation into corrupt practices by former clients. The chief financial officer subsequently resigned and the Dutch central bank said ING needed a “prolonged and intensive process” of improvement to fulfill its role as a gatekeeper of the nation’s financial system.Last year, the Bank of Italy ordered the lender to stop taking on new customers in that country after it found shortcomings in money-laundering checks.Weber said Finma, the Swiss regulator, cleared Hamers after interviewing him and that UBS did its own due diligence. They concluded he had no personal role in the money laundering. “Am I surprised by this appointment? Yes, I am surprised after this huge scandal in the Netherlands for which Hamers carries overall responsibility as the CEO,” said Paul Vlaanderen, the chair of Transparency International Netherlands, the Dutch arm of the global anti-corruption group. Investors in both banks reacted positively. UBS rose as much as 2.4% in Zurich, while ING added as much as 3% in Amsterdam.New BloodUBS joins European finance firms in handing over the reins to the next generation. Societe Generale SA and HSBC Holdings Plc are among those also looking for new chiefs and Credit Suisse Group AG replaced CEO Tidjane Thiam last week.Ermotti’s final year, his ninth, leading UBS was marred by huge legal fines, questions about succession planning and a deepening slump in the share price. Ermotti and Weber last year signaled that the firm had started planning for succession.Ermotti cemented his legacy early in his tenure, responding to the financial crisis by largely getting rid of the fixed-income businesses and increasing the focus on managing money for the rich. It’s a strategy that competitors, notably Credit Suisse, have emulated. The last few years of Ermotti’s tenure were marred by a $5 billion fine for a tax-evasion case in France and the departures of two potential future leaders of the bank.UBS shares have gained 20% since his appointment in mid-November 2011 -- they’ve shed 27% the past two years. By contrast, Credit Suisse has declined 33% during the almost nine-year period.UBS, like many of its European peers, has dialed back its ambitions amid negative interest rates and muted client activity. Ermotti recently cut the bank’s financial targets for a second time in as many years against that backdrop.The firm in October brought in wealth executive Iqbal Khan from Credit Suisse, who was widely seen as an eventual contender for the top role. But Khan’s run-in with Thiam -- which became tabloid fodder in Zurich -- dimmed his standing with UBS board members, according to people familiar with the matter.At ING, Hamers has been trying to cushion the blow of negative interest rates -- which are particularly damaging for a lender that gets two-thirds of its revenue from retail banking -- by adding millions of customers and moving more to digital platforms. He’ll depart the Dutch bank at the end of June.What Bloomberg Intelligence Says:The surprise departure of highly-regarded CEO Ralph Hamers is a setback for ING, coming as the bank struggles with a lending slowdown and earnings downgrades. ING appears to have been caught unaware, given the sudden AT1 postponement on Feb. 19, with no obvious successor in place. Hamers, who’s led ING since 2013, is scheduled to leave at the end of June.\-- Philip Richards, BI banking analystHamers lost his annual bonus for 2018 after the firm was hit with one of the biggest fines ever for a Dutch bank in a criminal case. ING has paid him about $2.16 million annually in recent years, including salary and a relatively small variable award, regulatory filings show.By comparison, Ermotti received about $9 million in compensation in 2012, his first full year leading the bank, and roughly $14 million for 2018.See more: ING’s Hamers Poised for Big Pay RaiseHamers has been a frequent target of Dutch politicians, newspaper columnists, and financial activists -- one of whom has sought to have him jailed for his alleged role in the bank’s money laundering issues, an accusation that ING has rejected.Still, Hamers has shown the ability to boost revenue amid the headwinds. While his predecessor, Jan Hommen, was credited with cleaning the balance sheet after the crisis and government bailout, Hamers focused on growth. During his tenure, Hamers added millions of retail clients outside the Netherlands by rolling digital services in Italy, France and Germany. Earnings per share rose to 1.4 euros last year from 0.85 euros in 2013.ING shares under Hamer’s appointment October 2013 added 23%, even after dropping 30% the past two years.(Adds Weber comment on due diligence of Hamers appointment)\--With assistance from Lananh Nguyen, Pierre Paulden, Anders Melin, Ambereen Choudhury, Jan-Henrik Förster and Edward Robinson.To contact the reporters on this story: Marion Halftermeyer in Zurich at firstname.lastname@example.org;Ruben Munsterman in Amsterdam at email@example.comTo contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at firstname.lastname@example.org, James Hertling, Ross LarsenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Ralph Hamers, CEO of ING, will step down from his position and leave ING as of 30 June 2020. After 29 years at ING he will join UBS on 1 September 2020 and will become Group Chief Executive Officer per 1 November 2020. Over the past six years Ralph Hamers has transformed ING into a leading digital bank, on the way to become the go-to financial platform for our customers.
ZURICH/AMSTERDAM (Reuters) - UBS , the world's largest bank to the rich, named the head of ING as chief executive on Thursday, seeking to tap his tech knowledge after he transformed the Dutch lender into one of Europe's most successful online banks. Ralph Hamers' appointment heralds a shift in focus for the Swiss bank, which historically relied on its bankers' personal attention to customers to build a group managing more than $2 trillion of investments. ING, by contrast, is better known for its brash orange logo, mobile apps and online loan applications.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world threatened by trade wars. Sign up here. The Bank of Russia delivered a sixth consecutive bout of monetary easing and said a further rate cut is possible next month, as inflation continues a retreat below target. Government bond yields dropped to near a record low.The bank lowered its benchmark interest rate by 25 basis points to 6%, according to a statement Friday, taking the total reduction in the past year to 175 basis points. The move was forecast by 22 out of 34 economists in a Bloomberg survey.“There is a relatively high probability of a rate cut at the next meeting, but it’s not guaranteed,” Governor Elvira Nabiullina said at a news conference after the decision. The next meeting will be held on March 20. Disinflationary risks are higher than pro-inflationary risks in the short-term, while the spread of coronavirus will be an “additional uncertainty factor” over the coming quarters and threatens the global economy, according to the statement. Fallout from the disease isn’t having a major impact on Russia’s economy yet, Nabiullina said.At least 11 other central banks have eased monetary policy this week, while many others have been biding their time as the fallout from the spread of coronavirus reverberates through the global economy.Bonds rallied as investors bet that the central bank is ready to drop rates below 6%, the lower band of its neutral-rate range. The range is an estimate and the central bank can go below it, Nabiullina said.Russian local-currency government bonds, known as OFZs, attracted inflows of about $16 billion last year due in part to faster-than-expected easing. Yields on bonds maturing in 10 years dropped 7 basis points on Friday to 6.16%.“It’s a bold move,” said Valeriy Vaysberg, head of research at Region Investment Co. “This means that the rally in OFZs could continue. We also expect a strengthening of the ruble and strong demand at government bond auctions.”What Our Economists Say:“With inflation sliding, the central bank has more to lose standing still. Today’s guidance suggests this easing cycle could keep turning until price pressure reemerges.”\--Scott Johnson, Bloomberg EconomicsRussia’s rate cuts have so far failed to stoke price growth, which has slowed to far below the bank’s 4% goal since October. A government overhaul last month is expected to usher in accelerated fiscal spending aimed at boosting sluggish economic growth in President Vladimir Putin’s final term in office.Additional social outlays announced last month won’t have a “considerable pro-inflationary impact,” but this year’s inflation trends will be shaped by the pace of budget spending, the central bank said. Extra spending in 2020 could total 2.1 trillion rubles ($34 billion), or 1.3% of gross domestic product, according to calculations by ING Groep NV.Russia has room for stimulative budget policy and the impact on inflation will be limited if the government sticks to a budget rule designed to limit exposure to oil price volatility, Nabiullina said. The central bank plans to meet frequently with the government to discuss the extra spending, she said.Annual inflation slowed for a 10th straight month to 2.4% in January. The Economy Ministry said Friday there is a “serious risk” price growth will fall as low as 2.2% this quarter.“The central bank doesn’t sound hawkish with respect to fiscal spending,” said Evgeny Koshelev, an analyst at Rosbank in Moscow. “That may add inflation pressure only in the medium-term.”(Updates with Nabiullina comment in third paragraph)\--With assistance from Zoya Shilova and Artyom Danielyan.To contact the reporters on this story: Anya Andrianova in Moscow at email@example.com;Andrey Biryukov in Moscow at firstname.lastname@example.orgTo contact the editors responsible for this story: Gregory L. White at email@example.com, Natasha Doff, Tony HalpinFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
ING Groep NV on Thursday reported a significant fall in net profit for the fourth quarter of 2019, reflecting increases in risk costs, expenses and effective tax rate.
ING posts 2019 net result of €4,781 million;4Q2019 net result of €880 million A growing number of customers choose ING as their primary bank • Primary customer base rises by.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The Bank of Thailand cut its benchmark interest rate to a record low as the coronavirus outbreak, a stalled government budget and bad drought imperil economic growth.The central bank lowered the policy rate by 25 basis points to 1% on Wednesday in a unanimous decision, the third cut in its last five meetings. Fourteen of 29 analysts in a Bloomberg survey predicted the decision, with the rest expecting no change.“They have come to terms with a continued slowdown this year. That’s mainly coming from the virus downing tourism,” said Prakash Sakpal, an economist at ING Groep NV in Singapore who expects one more rate cut this year. “There’s not much scope for fiscal stimulus, as the budget hasn’t even passed just yet. All the burden is on the Bank of Thailand.”The baht weakened by as much as 0.9% against the dollar to 31.264, before trading 0.5% lower at 31.129 per dollar as of 2:53 p.m. in Bangkok. The country’s benchmark stock index erased earlier gains to trade little changed on the day.The virus has delivered a severe blow to Thailand’s tourism industry, undermining the outlook for the economy. Officials already were grappling with the worst drought in four decades, a prolonged delay in the implementation of the 3.2-trillion-baht ($103 billion) annual budget and shrinking exports.“The outbreak may be temporary, but it’s a huge shock to the economy,” said Naris Sathapholdeja, chief economist at TMB Bank Pcl in Bangkok. “Cutting borrowing costs helps to alleviate the pressure on the private sector.”Bank of Thailand Assistant Governor Titanun Mallikamas told reporters the baht is likely to remain volatile going forward. Even after falling 3.6% this year -- making it the worst performer among Asian currencies -- he said the baht may still be out of line with economic fundamentals after last year’s rapid rise.The monetary policy committee said Thailand’s economy -- expected to grow 2.8% this year -- “would expand at a much lower rate in 2020 than the previous forecast.” Inflation this year and next “was projected to be below the lower bound” of the target, set at 1%-3%. The bank is likely to revise the economic growth forecast at its next meeting, Titanun said.Data earlier Wednesday showed Thai consumer confidence falling for an eleventh straight month in January -- even before the coronavirus scare had much time to impact the economy.Running LowWednesday’s cut may have been the only available option for policy makers, but it risks leaving the Bank of Thailand without any ammunition, said Toru Nishihama, an emerging-market economist at Dai-ichi Life Research Institute Inc. in Tokyo. He expects the central bank to stay on hold for the rest of 2020.“The direct impact on the economy from the rate cut, as well as the benefit from the weaker baht from the rate reduction, will be questionable, as external demand may remain weak and the spread of coronavirus will keep the tourism sector sluggish,” he said.The government said last week it will consider new initiatives to support the economy. The ruling coalition has announced more than $10 billion of stimulus steps over the past few months.Titanun said the coronavirus outbreak will substantially hurt Thailand’s economy in the first half of the year, and easing monetary policy is intended to boost liquidity and support households and businesses to restructure debt. Microprudential and macroprudential measures could be used at appropriate times, he said.“The key for now is liquidity injection and debt restructuring. We have to make sure it really happens and quickly,” Titanun said. “The interest rate is just a supportive factor.”(Updates with analyst quote in third paragraph, more details throughout.)\--With assistance from Yumi Teso, Lilian Karunungan, Michelle Jamrisko, Natnicha Chuwiruch and Anuchit Nguyen.To contact the reporter on this story: Suttinee Yuvejwattana in Bangkok at firstname.lastname@example.orgTo contact the editors responsible for this story: Sunil Jagtiani at email@example.com, Michael S. ArnoldFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Announcement: Moody's: No Rating impact on GNB Auto Plan 2017 sp. z o.o. following the replacement of the back-up servicer. Global Credit Research- 04 Feb 2020. Frankfurt am Main, February 04, 2020-- Moody's ...
A new global survey commissioned by ING shows consumer attitudes have reached a tipping point, leading them to avoid brands that don’t prioritize sustainability and environmental issues. Despite demanding change, customers will still engage in the linear ‘convenience economy’ model of ‘take, make and waste’ unless companies offer a more seamless transition towards the ‘circular economy’. Faced with potential damage to profitability, businesses must offer more convenient sustainable options to consumers in order to create meaningful engagement with the circular principles of ‘reduce, reuse and recycle’.