|Bid||0.00 x 43500|
|Ask||0.00 x 47300|
|Day's Range||10.87 - 11.19|
|52 Week Range||9.22 - 13.72|
|Beta (3Y Monthly)||1.35|
|PE Ratio (TTM)||8.34|
|Forward Dividend & Yield||0.77 (7.07%)|
|1y Target Est||16.00|
The Insider Monkey team has completed processing the quarterly 13F filings for the June quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.India’s central bank Governor Shaktikanta Das pledged further monetary policy easing if needed after reducing interest rates for a fifth time to boost a flailing economy.The Reserve Bank of India lowered its benchmark repurchase rate by 25 basis points to 5.15% on Friday, in line with the forecasts of a majority of economists surveyed by Bloomberg. Echoing Mario Draghi’s “whatever it takes” sentiment, Das said policy makers will “continue with the accommodative stance as long as it is necessary to revive growth while ensuring inflation remains within the target.”Growth in the consumption-driven economy has taken a beating amid rising unemployment and ongoing stress in the banking system, contributing to a collapse in demand for everything from 7-cent cookies to cars. The RBI on Friday lowered its full-year growth forecast to 6.1% -- which would be a seven-year low -- from 6.9% previously.“There is policy space to address growth concerns,” Das said. He last month alluded to the chance of more easing, given concerns about economic growth.Central banks around the world are loosening monetary policy to offset a global slowdown made worse by U.S.-China trade tensions. Australia cut rates earlier this week for the third time this year, while the Philippines and Indonesia eased policy last month.‘They Did it First’ Is Central Bankers’ Alibi in Race to BottomFriday’s rate cut was a unanimous decision by all six members of the Monetary Policy Committee, although one member voted for a steeper 40 basis-point easing. It takes the repurchase rate to the lowest in almost a decade and reduces the inflation-adjusted real rate below 2%. Like other emerging markets, the RBI needs to keep the rate attractive enough to lure foreign funds into the country to finance its current-account and budget deficits.After an unconventional 35 basis-point move in August, the RBI reverted to a 25-point reduction, disappointing bond investors who had expected a more aggressive reduction. The benchmark stock index and the rupee fell, reversing early gains, while yields on India’s 10-year bonds jumped 4 basis points to 6.65%.The market reaction reflects “over-exuberance about bigger rate cuts getting dented,” said Naveen Singh, head of fixed-income trading at ICICI Securities Primary Dealership in Mumbai. There’s also some disappointment that the governor himself voted for just a 25 basis-point cut, he said.The government’s recent fiscal measures, including a $20 billion tax break for companies, have given the RBI room to shift to a more gradual pace of easing again. Das said the measures announced by the government over the last two months are expected to revive sentiment and spur domestic demand, especially private consumption.What Bloomberg’s Economist Says“The Reserve Bank of India’s baby-step rate cut of 25 basis points isn’t enough to reverse a severe slump in the economy. The sharp downgrade of its full-year growth outlook shows it recognizes the extent of the challenges.”\-- Abhishek Gupta, India economistFor the full report, click here, and for more research, hereThe RBI has cut rates by a total 135 basis points so far this year, prompting some economists to question how much more easing room the RBI has.“I think they have done enough and, given a considerable policy transmission lag, they should allow the easing so far to bear fruit,” said Prakash Sakpal, an economist at ING Groep NV in Singapore. “Or else, the authorities are running the risk of aggressive fiscal and monetary pump-priming eventually fueling inflation.”While the RBI underlined a dim global growth outlook as a risk to domestic expansion, it is also facing mounting problems in the banking system. It recently imposed withdrawal curbs on a small bank and lending restrictions on another lender.The “RBI would not allow a cooperative bank to collapse,” Das said, referring to an almost $1 billion scandal at a small bank. Talks are on with the government on regulation of tiny banks, he said, seeking to reassure the market about how the banking system “remains sound and stable.”The central bank raised its near-term inflation forecast slightly to 3.4% for the second quarter of the fiscal year started April, while projecting it would stay below its medium-term target of 4% -- a level it has undershot for 13 straight months.The government said the revised inflation forecast is still within the central bank’s target. The rate decision will complement its efforts to boost growth.\--With assistance from Tomoko Sato, Kartik Goyal, Subhadip Sircar, Ronojoy Mazumdar and Vrishti Beniwal.To contact the reporter on this story: Anirban Nag in Mumbai at firstname.lastname@example.orgTo contact the editors responsible for this story: Nasreen Seria at email@example.com, Jeanette Rodrigues, Karthikeyan SundaramFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Ever wonder why some global banks are still failing in the fight against money laundering? An account of Standard Chartered Plc’s latest shortcomings is a stark reminder of how much needs to improve in the industry.A review by Dubai regulators of the London-based emerging markets lender found that it wasn’t able to prove how some of its wealthy clients had made their money — not an uncommon position for banks to find themselves in. Astonishingly, though, StanChart was also found in some cases to have lacked even the most basic details for rich customers such as their current addresses and phone numbers, Bloomberg News reported.As a result the bank is reviewing (with the help of Deloitte LLC) all of the 8,000 or so clients at its private banking unit, which oversees about $65 billion of money. As my Bloomberg News colleagues noted, collecting some of that information won’t be easy; it means gathering paperwork from long ago that may never have existed in the first place.It’s no great surprise that yet another major financial institution is struggling to vet clients. From Deutsche Bank AG to the Dutch-based ING Groep NV, plenty of others have been scolded by regulators for similar. But the procedures at StanChart’s private bank appear to be flawed to a troubling degree for anyone hoping to make it more difficult for people to misuse the banking system.Regulators expect lenders to know who their customers are, with good reason. How can you be truly serious about detecting illicit money flows otherwise? When banks fail to have adequate processes for even basic stuff like this, you wouldn’t be surprised by more big fines for the industry further down the line.StanChart has been in trouble before, paying a $1.1 billion settlement to U.S. and U.K. regulators over its handling of transactions that violated economic sanctions on Iran. Britain’s Financial Conduct Authority, which imposed a 102 million-pound ($127 million) fine on the bank as part of that settlement, cited anti-money laundering breaches at StanChart’s network of correspondent banks (which provide services on a lender’s behalf) and its branches in the United Arab Emirates.In one incident StanChart took cash from a suitcase with “little evidence” of the money’s origin being examined, according to the FCA. It’s not clear whether the private bank was included in that FCA review or if the parent might be exposed to any more penalties, but Bloomberg News said there was no evidence that the private bank had been involved in wrongdoing.Yet this is a company that has been under scrutiny for years. When StanChart was found to be moving billions of dollars through the U.S. on behalf of Iranian clients in 2012, it agreed to have an outside monitor as part of a deferred prosecution arrangement. Bill Winters, the bank’s chief executive officer, vowed to overhaul the firm’s compliance processes and to root out bad habit when he took over in 2015. That the bank is still addressing what appear to be fundamental errors is a concern.Knowing your customer, or “KYC” in the jargon of tackling dirty cash, is at the heart of the effort to prevent criminals from accessing the financial system. Without it there’s little hope of the industry ever starting to get to grips with the $2 trillion-a-year money laundering problem, let alone being able to preempt how and where criminals will attempt to move their funds next. There are still too many weak links connecting key parts of the global banking network.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 the editorial board or 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/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Since getting burned in the financial crisis, HSBC Holdings Plc has been in sell rather than buy mode. But now that it’s out shopping, the bank is looking to splurge. HSBC is eyeing the Asian assets of struggling British insurer Aviva Plc, which could be worth between $3 billion and $4 billion, Bloomberg reporters Dinesh Nair, Manuel Baigorri and Stefania Spezzati wrote Thursday. That would make it one of the bank’s largest purchases since it bought subprime lender Household International for $15.5 billion in 2003.The London-based lender should be prepared to pay even more: Aviva is sure to have many suitors. While the company had a difficult run in Asia, a buyer with more regional presence could better navigate the regulatory hurdles of a fractured market. The bulk of Aviva’s Asian assets are in Singapore, where a large pool of affluent residents has helped gross written premiums rise 13% per year industry-wide, according to Bain & Co. Aviva has 885,000 customers in the Southeast Asian country and was the sixth-largest insurer in Singapore last year – ahead of HSBC. The company accounted for 4.2% of the city-state’s insurance assets in 2018, says Bloomberg Intelligence analyst Steven Lam.A rare, large asset like Aviva is bound to pique the interest of FWD Group Ltd., which Hong Kong billionaire Richard Li built from the ashes of Dutch insurer ING Groep NV’s Asian businesses. FWD, widely believed to be preparing for an initial public offering, has been busy buying assets: Late last year, it snapped up an 80% stake in Commonwealth Bank of Australia’s Indonesian life insurance arm for A$426 million ($302 million). The Japanese, meanwhile, have been avid acquirers of Southeast Asian insurance assets for years, as low growth and negative bond yields at home crimp the savings of its aging population. Just this week, Japan's Taiyo Life Insurance Co. said it will buy 35% of Myanmar's Capital Life Insurance Ltd. Tokio Marine Holdings Inc. bought the Thai and Indonesian businesses of Sydney-based Insurance Australia Group Ltd. for about A$525 million ($355 million) last year, and has been open about its Southeast Asian ambitions.It makes sense that HSBC is eager to jump in: Its chairman, Mark Tucker, is an insurance supremo, having run AIA Group Ltd. and Prudential Plc previously. The recent protests in Hong Kong are pressuring the bank, which gets more than half of its pretax profit from the former British colony, to diversify, as other firms with big bases in the city have done. On Thursday, HSBC broke its silence and called for a peaceful resolution to the tensions in a newspaper ad.With the midpoint of the $3 billion to $4 billion price range amounting to 22 times Aviva's 2018 adjusted operating profit, these jewels aren’t coming cheap. That’s the same level at which AIA, Asia’s biggest insurer, trades. Bidders should prepare for a price war.To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or 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.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has today assigned Baa1 long-term and Prime-2 short-term local and foreign currency issuer ratings to ING Bank Hipoteczny S.A. (ING BH) a mortgage bank which is a fully owned subsidiary of the fifth largest bank in Poland, ING Bank Slaski S.A. (Deposits A2 stable, Baseline Credit Assessment baa2). Concurrently, the rating agency has assigned to the mortgage bank A2(cr) long-term and Prime-1(cr) short-term Counterparty Risk Assessments (CR Assessment) and A2 long-term and Prime-1 short-term Counterparty Risk Ratings (CRRs).
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.At the heart of Chief Executive Officer Christian Sewing’s turnaround plan for Deutsche Bank AG is a contrarian bet: that he can cut spending on technology while gaining ground on the competition.Even with the digital revolution in finance accelerating, Deutsche Bank expects to trim its annual outlays on tech to 2.9 billion euros ($3.3 billion) in 2022 from a peak of 4.2 billion euros this year.“Deutsche Bank would probably love to be spending more on technology, but they need money for other parts of their restructuring,” said Pierre Drach, managing director of Independent Research in Frankfurt. “It’s pretty much impossible for European banks to catch up with the Americans at this stage.”Sewing’s team says it’s made progress in fixing information networks that his predecessor called “antiquated and inadequate.” Years of expansion left it with systems that couldn’t communicate with each other and didn’t adequately track its business. The bank, which has spent almost $18.5 billion on legal settlements and fines since 2008, has also suggested that the past breakdown in controls stemmed in part from weak systems.The 4.2 billion euros Deutsche Bank has budgeted this year to maintain and modernize its systems represents a fraction of the $11.5 billion JPMorgan Chase & Co. shells out. "You have to spend to win" with new technologies, Jamie Dimon, the bank’s CEO, said Tuesday.The gap is set to widen as the German chief executive wants to cut technology costs by almost a quarter. European banks, meanwhile, are forecast to increase tech spending at a 4.8% annual rate through 2022, according to the consulting firm Celent.“We continue to invest in IT to serve clients better, become safer, more efficient and better controlled,” Senthuran Shanmugasivam, a Deutsche Bank spokesman, said in response to questions from Bloomberg. “Despite our smaller footprint, our investment plans in 2019 are broadly unchanged as we reallocate resources to our core businesses.”It’s all part of a retrenchment Sewing announced last week to exit equities sales and trading and eliminate 18,000 jobs. Deutsche Bank aims to cut adjusted costs to 17 billion euros in 2022 from 22.8 billion euros last year; the share of technology expenses would remain stable over that time period.The company can modernize systems while spending less, for example by moving most of its applications to the cloud, according to Frank Kuhnke, who oversees its technology. He said Deutsche Bank has already cut the cost of crunching data by more than 30% since 2016 even as it increased computing capacity by about 12% a year to meet regulatory demands.Still, Deutsche Bank needs “to make a further step change in embracing technology,” Sewing told analysts last week.New HiresThe CEO has brought in new talent to do that. Bernd Leukert, who left the management board of software company SAP SE earlier this year, will start in September. Neal Pawar will join as chief information officer from AQR Capital Management the same month.Hiring outsiders hasn’t been a panacea in the past. Kim Hammonds, a former Boeing Co. executive, spent about four and a half years rebuilding the bank’s systems only to be ousted in 2018 after reportedly calling the bank “the most dysfunctional company” she’d ever worked for.Deutsche Bank expects its retrenchment from businesses to allow it to focus on its core operations. It will also save about 300 million euros by 2022 by shedding almost 5,000 external IT contractors and replacing them with internal staff at a lower cost. The integration of consumer lender Postbank will avoid duplication of expenses.The digital revolution is upending all aspects of finance -- from taking deposits to bond trading, a traditional Deutsche Bank strength. Citigroup Inc. has created a fintech division to invest in debt-market technologies while Spain’s Banco Bilbao Vizcaya Argentaria SA has created a unit to automate trade processes and generate intelligence from data. Dutch bank ING Groep NV has used artificial intelligence to win 20% more bond trades and cut costs.Cutting tech costs is also notoriously difficult.A three-year initiative announced in 2012 failed to stop technology spending from ballooning 44% by 2015. That was the year that then-CEO John Cryan said he would reduce the number of operating systems from 45 to four in 2020. Deutsche Bank still has 26, Sewing told investors in May. He kept the goal of eventually cutting them to four, but says the lender will need to run 10 to 15 systems for the foreseeable future.“Everyone knows that Deutsche Bank’s systems are a mess and I think they will have to end up spending more,” said Drach. “The fact that their new technology head hasn’t come on board yet gives them a good narrative for increasing the ultimate amount.”\--With assistance from Katie Linsell.To contact the reporter on this story: Nicholas Comfort in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Dale Crofts at email@example.com, James Hertling, Giles TurnerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The market has been volatile in the last 6 months as the Federal Reserve continued its rate hikes and then abruptly reversed its stance and uncertainty looms over trade negotiations with China. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF […]