Latest news with #OCBC
The Star
16 hours ago
- Business
- The Star
OCBC Bank named Private Wealth Bank of the Year at Asian Banking & Finance Awards 2025
OCBC Bank (M) Bhd managing director and head of consumer financial services Sammeer Sharma KUALA LUMPUR: OCBC Bank (M) Bhd has been named Malaysia's Private Wealth Bank of the Year at the Asian Banking & Finance Retail Banking Awards 2025. It also received the Branch Innovation of the Year award at the same event. The awards highlight OCBC's 18,000-square-foot Premier Private Client Centre in Bangsar, which combines luxury, privacy, and personalised wealth management in a tranquil, nature-inspired setting close to the city centre. Managing director and head of consumer financial services Sammeer Sharma said the awards reflect OCBC Group's standing as a major player across Asean and Greater China, with deep expertise in wealth management and a proven track record in serving affluent clients. 'In Malaysia, OCBC Bank is a leading bank in the affluent segment, with a strong foundation for continued growth. These awards affirm our commitment to redefining wealth management through innovation and client-centricity. 'The OCBC Premier Private Client Centre is a testament to our One Group approach, which integrates best-in-class financial solutions with bespoke experiences in a truly inspiring setting. With the strategic investments we are making and the immense growth opportunities within Malaysia, we are confident of doubling our affluent client base over the next five years,' he said in a statement. The centre serves as a strategic anchor for the Bank's high-net-worth offerings, tailored for individuals with assets under management of RM3mil and above. It offers a comprehensive range of wealth solutions across 11 major currencies, with over 80% of its product shelf linked to sustainability.
Business Times
21 hours ago
- Business
- Business Times
China's social spending hits highest level in nearly two decades
[BEIJING] China's government spending has pivoted towards social welfare to a degree unseen for at least a generation, as it runs a record budget deficit with a focus on boosting consumption to cushion the blow from Donald Trump's tariffs. The latest evidence arrived on Monday (Jul 28), when China announced it will start offering nationwide cash handouts to families as an incentive for couples to have children. While Beijing is channelling less on-budget investment into infrastructure, expenditure that covers outlays ranging from education to employment and social security climbed to nearly 5.7 trillion yuan (S$1 trillion) in the first half, the highest for the period since the data series began in 2007. That represents an increase of 6.4 per cent from a year earlier, according to Bloomberg calculations based on figures published by the Ministry of Finance (MOF). Authorities could renew their pledge to prioritise support for domestic demand, as top officials prepare to meet this month to set the economic agenda for the rest of the year while trade talks with Washington continue. The splurge was almost double the increase in total spending under the general public budget, the first and biggest account among the government's four fiscal books. Infrastructure-related expenditure in the account, allocated for costs such as environmental protection, irrigation facilities and transportation, was 4.5 per cent less than a year earlier. Fiscal priorities have shifted after the trade war unleashed by Trump threatened China with millions of job losses and put pressure on its patchy social safety net. Under the new policy of childcare subsidies, the government will spend 3,600 yuan a year per kid under the age of three, according to the official Xinhua News Agency. Citigroup estimates a total lump-sum payout of 117 billion yuan in the second half of 2025, while Morgan Stanley puts the programme's annual cost at 100 billion yuan, assuming about nine million births a year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Although President Xi Jinping has in the past resisted large-scale handouts to families over what he's called 'welfarism', China responded in recent months by ramping up government support for households. The goal is partly to bolster domestic demand in the face of US tariffs, which have sent the country's shipments to the world's biggest consumer market slumping this year. 'Better supporting people's well-being will help boost domestic demand and is part of the rebalancing of the Chinese economy,' said Tommy Xie, head of Asia macro research at OCBC. At the same time, China launched construction of a 1.2 trillion yuan mega-dam in Tibet this month, a massive project that will likely take years to complete. 'The room for infrastructure expansion in the future will shrink marginally' even though it can play a 'supporting role at critical times', OCBC's Xie said. Social security and employment saw the biggest gain in spending related to people's well-being, up almost 8 per cent in the first half from a year earlier. A survey carried out by China's central bank showed an employment sentiment index hit a record low in the second quarter, illustrating the need for more government aid for job seekers. Outlays on education increased 5.9 per cent and rose 4 per cent on medical treatment and healthcare. Meanwhile, local governments' tapping of the annual quota of new bonds meant mainly for infrastructure investment slowed. Provinces have issued about 56 per cent of new special local bonds allowed for this year, down from an average of 61 per cent for January to July in the five years through 2024, according to Bloomberg calculations based on MOF numbers. Previously, the favoured way to jumpstart growth was by spending on areas such as roads, railways or industrial parks, much of it done by provincial governments. Government borrowing was crucial for replenishing state coffers depleted by China's years-long property slump. Revenue from real estate-related taxes, including deeds and urban land use, fell 5.6 per cent on year in the first half to 975.3 billion yuan. Provinces earned 1.43 trillion yuan in the period from selling land, a contraction of 6.5 per cent despite a rebound of over 20 per cent in June, thanks to market recovery in some big cities. Economists at Goldman Sachs cautioned, however, on 'the sustainability of land sales revenue improvement' and maintained their forecast that government land sales revenue may decline further this year by up to 10 per cent. Total tax revenue shrank 1.2 per cent on year in the first half to 9.29 trillion yuan, with income from levies on such transactions as vehicle purchases posting double-digit declines. Non-tax revenue, which includes compensation for the use of state-controlled resources and assets and fines, rose 3.7 per cent to 2.3 trillion yuan. It grew despite a decline in the money collected from fines, a Finance Ministry official said at a Friday briefing. Revenue from the tax on vehicle purchases plunged 19.1 per cent in January to June from a year ago, the biggest drop among all categories and more than triple its decline in the same period of 2024. Slumping income from the vehicle purchase tax shows the impact of the government's decision to extend the suspension of a levy on buying new energy vehicles, such as electric cars, to 2027, Huachuang Securities analysts, including Zhang Yu, wrote in a note on Friday. The shift away from fuel-powered cars also weighed on revenue from the consumption tax by reducing demand for petrol and diesel, they said. The government is losing a total of 265 billion yuan per year in revenues from the vehicle purchase tax and the consumption levy due to the pivot to cars powered by alternative-energy sources, Huachuang Securities estimates. BLOOMBERG
Business Times
a day ago
- Business
- Business Times
DBS, OCBC, UOB Q2 results likely to be weighed down by lower interest rates
[SINGAPORE] The trio of local banks will likely post weaker results for the second quarter of 2025, weighed down by lower net interest income from falling interest rates, analysts said. They are expected to post their Q2 financials next month, beginning with OCBC on Aug 1 and followed by DBS and UOB on Aug 7. Net interest margins (NIMs) will probably be 'materially lower' in Q2, said Thilan Wickramasinghe, head of research and regional financials at Maybank Securities Singapore. He noted that the Singapore Overnight Rate Average (Sora) was down 50 basis points – due to 'massive' domestic liquidity, partly because of safe haven inflows – while the Hong Kong Interbank Offered Rate (Hibor) was at its lowest since 2022. The Sora decline provided only partial relief in funding costs, as banks 'weigh off preserving market share', he said. DBS Group Research analyst Lim Rui Wen also expects NIMs to fall quarter on quarter by a high single digit, due to the lower Sora and Hibor. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The rates' impact will likely be more pronounced as more loans get repriced against reduced benchmark rates throughout Q2, she added. However, she noted that OCBC's and UOB's repricing of their fixed-deposit and flagship deposit account interest rates should buffer falling asset yields in subsequent quarters. Wickramasinghe also pointed out that loan growth was better than expected in Q2, probably due to front-loading demand ahead of the expiry of US President Donald Trump's tariff moratorium. While this may partially offset downsides in net interest income, it is unlikely to arrest sequential decline, the researcher said. Trump impact Analysts also said that Trump's 'Liberation Day' tariffs in April likely weighed on market sentiment, impacting wealth management fees in turn. Tay Wee Kuang, an analyst at CGS International, said that macroeconomic uncertainty could continue to dampen fee income in the second half of the year, despite equity market sentiment having slowly recovered. Nevertheless, Lim of DBS expects wealth management income to remain a tailwind for Singapore banks in the medium term, as wealth management activity began recovering in May. This is also supported by ongoing growth in assets under management (AUM), she said. 'The investible portion of AUM is expected, as clients reallocated funds from fixed-deposit rates and (treasury-bill) rates, which continue to see declining rates through Q2.' Wickramasinghe likewise expects sequential improvements in wealth management fees, given falling domestic benchmark rates and risk-on market conditions. He added that significant volatility around foreign exchange, trade and interest rates would likely have supported trading income in Q2, which could surprise on the upside, especially for DBS and UOB. Higher credit costs Meanwhile, the three banks' credit costs could trend towards the higher end of their respective 2025 guidance, due to weakness across Asean economies such as Thailand and Indonesia , said Tay. 'However, we do not expect total credit costs to change drastically quarter on quarter, as we believe the pre-emptive general provisions recognised by the Singapore banks in Q1 should remain sufficient amid the current credit cycle,' he added. Ongoing reviews of second-order impacts from the US tariffs may also lead the banks to maintain or increase their general provision buffers, said Lim. Therefore, general provisions write-backs are unlikely this year, she noted. CGS International and Maybank Securities kept their 'neutral' call on the Singapore banking sector, with Tay noting that the lenders lack growth catalysts in an uncertain economic outlook. The analysts expect UOB to restore its guidance for 2025, which it had suspended in Q1. They are also awaiting more clarity from OCBC on its strategy, following its failed bid to privatise its insurance arm, Great Eastern . Clarity around returns may also take longer to resolve due to the lender's 'unexpected leadership change ', Wickramasinghe said. But Lim, who has 'hold' calls on OCBC and UOB, expects the banks' dividend yields of up to 6.5 per cent to continue supporting share prices. 'As asset quality remains largely benign, and dividend yields stay attractive, comparable to Singapore real estate investment trusts, we expect share prices to remain well-supported in a low interest-rate environment and due to the safe haven appeal of the Singapore dollar,' she said.
Korea Herald
2 days ago
- Business
- Korea Herald
SMU issues its inaugural Sustainability Bond, raising S$150 million to advance environmental and social initiatives
SINGAPORE, July 28, 2025 /PRNewswire/ - - Singapore Management University (SMU) today announced that it has completed the issuance of a S$150 million Sustainability Bond. The proceeds of the Bond are earmarked for financing and refinancing green and social projects that deliver clear environmental and social benefits, as guided by SMU's newly established Sustainable Financing Framework. The Sustainability Bond, the first such bond by an Autonomous University (AU) in Singapore, was issued on 28 July 2025 at a coupon rate of 2.022% and will mature on 28 July 2032. The Sole Lead Manager and Bookrunner for the bond issuance was Oversea-Chinese Banking Corporation Limited (OCBC). SMU President, Professor Lily Kong, said, "This inaugural Sustainability Bond is more than just a financial instrument — it reflects our belief that universities must play a leading role in building a more sustainable and inclusive future. We've been guided by our Sustainability Blueprint since 2022 and are proud to contribute to the priorities set out in the Singapore Green Plan 2030. As a university, we take seriously our role in shaping future-ready graduates who are not only intellectually agile, but also attuned to the pressing challenges of our time. By embedding sustainability in our operations and investments, we hope to lead with purpose and conviction." "Launching this bond in our 25 th anniversary year feels especially meaningful — it signals our intent to grow with purpose, and to leave a positive, lasting impact on the communities we serve," she added. SMU Sustainable Finance Framework In June 2025, SMU established a holistic and comprehensive Sustainable Financing Framework which aligns SMU's financial practice with its sustainability goals (outlined in the SMU Sustainability Blueprint) and embodies SMU's deep commitment to sustainability and corporate social responsibility. The Framework outlines the criteria and guidelines for SMU to allocate and manage the proceeds raised from sustainable finance transactions. Developed in collaboration with its sole sustainability advisor, OCBC, the Framework provides the foundation for SMU to engage in sustainable finance transactions such as green, social and sustainability bonds and loans. It guides SMU's issuance of sustainable finance debt instruments to finance or refinance projects and assets that deliver measurable environmental and/ or social benefits. These include green buildings, energy efficiency upgrades, green infocommunications technology infrastructure, sustainable water and waste management, as well as programmes that promote inclusive education, knowledge sharing, and mental health and wellbeing. Mr Lim Boon Wee, SMU's Senior Vice President, Administration, said, "This bond issuance is a strategic milestone for SMU as we align our financial strategy with our sustainability goals, and channel capital to where it matters most. It enables us to finance infrastructure and initiatives that enhance environmental performance and social impact, while ensuring transparency and accountability to our stakeholders." The Framework received a Second Party Opinion from ratings agency, Moody's Investors Service (Moody's), affirming its alignment with internationally recognised standards and its significant contribution to sustainable outcomes. Moody's further assessed the Framework as having a significant contribution to sustainability, giving it an overall Sustainability Quality Score of SQS2 – Very Good. SMU also maintains a Aaa rating by Moody's, the highest possible rating in assessing creditworthiness, reflecting the University's robust institutional framework and healthy operating performance. First Sustainability Bond issuance by a Singapore university SMU's Sustainability Bond is the first such bond issued by an AU in Singapore, and is differentiated in the scope of impact. Apart from green initiatives with environmental benefits, SMU is committing a portion of the proceeds raised to fund social programmes that promote inclusive education benefitting its students from low-income families. This differs from Green Bonds (focusing solely on projects with environmental benefits) and Sustainability-Linked Bonds (which are tied to predefined sustainability performance targets only) previously issued by other universities in Singapore. Ms Elaine Lam, Head of Global Corporate Banking, OCBC, said, "With our strong track record in guiding clients through their green transition with strategic advisory and targeted financing solutions, we are excited to strengthen our long-standing partnership with SMU by supporting its first Sustainability Bond issuance covering both environmental projects as well as social programmes that promote inclusive education. A first by an autonomous university in Singapore, this bond issuance speaks to SMU's leadership in integrating sustainability into its core mission, potentially inspiring its students to become future leaders who advocate for both environmental stewardship and social equity." - End -
Yahoo
2 days ago
- Business
- Yahoo
Morning Bid: US and EU avert tariff bust-up
A look at the day ahead in European and global markets from Gregor Stuart Hunter We may be hearing a lot about the art of the deal this week. With the U.S. tariff deadline bearing down on the global economy at the end of this week, it's the EU's turn to announce a trade deal with the White House, albeit one that is skewed in the U.S.'s favour. The agreement lowers the baseline tariff on most European imports to 15% from the Trump administration's earlier threat of a 30% rate, while committing the EU to invest some $600 billion in the United States. Governments around the world are racing to reach trade agreements with the U.S. to avert the imposition of the Liberation Day tariffs that were first announced on April 2. Talks are also taking place between the U.S. and China in Stockholm on Monday, with reports indicating another 90-day extension to the tariff deadline may be in the works. As Vasu Menon, managing director for investment strategy at OCBC in Singapore, puts it: "The 15% tariff is a pleasant surprise as it is half of what the U.S. threatened to impose on the EU, and it offers hope that other major trading partners of the U.S. could also strike deals of this nature soon." The deal appears to mirror the one struck between the U.S. and Japan last week, with a pattern emerging of unilateral investment in exchange for a lower tariff. That could indicate what to expect as talks go down to the wire with other big economies like China, South Korea and Taiwan. The new U.S. tariff rate on the EU extends to medicinal and pharmaceutical products and motor vehicles, which were the bloc's biggest exports to the U.S. last year. Aircraft and their components, the next biggest segment, will have zero-for-zero tariffs, though the U.S. will keep in place a 50% tariff on steel and aluminium. Investors welcomed the trade deal that avoids a trade war and could bring clarity for companies. Pan-region futures climbed 1%, German DAX futures rose 1%, and FTSE futures gained 0.5%. U.S. equity futures rose 0.4% following the deal, putting the S&P 500 on track for a sixth consecutive day of gains and potentially a new peak. Earnings from Heineken will headline the corporate diary on Monday as the world's second-largest brewer counts the cost of tariffs. However, the firm's shares will likely get a boost from the newly-agreed framework deal along with automakers and drugmakers in the region. Key developments that could influence markets on Monday: Earnings: Heineken NV, Wise PLC, EssilorLuxottica SA UK data: CBI Distributive Trades for July Debt auctions: France 3-month, 7-month, 9-month and 1-year Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Gregor Stuart Hunter; Editing by Jacqueline Wong) Sign in to access your portfolio
