SINGAPORE NEWS HIGHLIGHTS

• Singapore bank earnings boosted by higher rates but global slowdown, high inflation cloud outlook
• Singapore bank OCBC’s second-quarter profit jumps 28%, upbeat on outlook

INDONESIA NEWS HIGHLIGHTS

• BNI channels sustainability linked loans worth Rp1.4t with Japfa
• Credgenics forays into Indonesia, launches digital collections platform

THAILAND NEWS HIGHLIGHTS

• Thai telecom regulator wants more study of True-DTAC merger plan
• The Bank of Thailand to Pilot Retail CBDC by Year-end

Singapore’s Corporate News

▪ Singapore bank earnings boosted by higher rates but global slowdown, high inflation cloud outlook

DBS Group Holdings joined peers OCBC Bank and UOB in reporting earnings that were boosted by rising interest rates, while also cautioning that risks such as a global economic slowdown lie ahead. Singapore's largest lender posted on Thursday (Aug 4) a 7 per cent increase in second-quarter net profit to $1.8b, its second highest on record and topping the $1.7b forecast by analysts in a Bloomberg poll. DBS has declared a dividend of 36 cents per share for the second quarter, higher than the 33 cents a year ago. This brings its first-half dividend to 72 cents per share. (Source: The Straits Times)

▪ Singapore bank OCBC’s second-quarter profit jumps 28%, upbeat on outlook

Singapore’s second-largest lender Oversea-Chinese Banking Corp reported a stronger-than-expected 28% jump in quarterly profit and gave a robust outlook as rising interest rates pushed up its net interest margins. With Singapore relaxing most of its Covid-19 local and travel restrictions since early April this year, banks are benefiting from the rebound in economic recovery of the Asian financial hub. The bank’s shares rose 1.35% in a mostly flat market in early Singapore trade on Wednesday. (Source: CNBC)

Indonesia’s Corporate News

▪ BNI channels sustainability linked loans worth Rp1.4t with Japfa

The green banking segment is a vital component in driving a sustainable economy, and the local banking industry has launched a campaign to proactively find high-quality debtors for the segment with the support of the Financial Services Authority (OJK). PT Bank Negara Indonesia (Persero) Tbk., or BNI, trading under the stock code BBNI, has joined hands with Japfa Comfeed Indonesia Tbk. (JPFA) to finance a sustainability linked loan (SLL) facility worth Rp 1.4t (US495m). This five year bilateral credit will be used to fund the agrifood business’ general needs. (Source: The Jakarta Post)

▪ Credgenics forays into Indonesia, launches digital collections platform

Credgenics, a leading provider of loan collections and debt resolution SaaS-based technology solutions to banks, non-banking finance, and FinTech lenders worldwide, announced its expansion into Indonesia as part of its next phase of growth. Indonesia marks the firm’s foray into Southeast Asia (SEA) with a proven product and a deep understanding of the debt collections business beyond the Indian demographic. Credgenics is focused to work closely with lending firms in Indonesia and help them digitise and automate their end-to-end collections processes.

(Source: IBS Intelligence)

Thailand’s Corporate News

▪ Thai telecom regulator wants more study of True-DTAC merger plan

The board of the National Broadcasting and Telecommunications Commission (NBTC) wants a more comprehensive study of the planned merger between True Corporation (True) and Total Access Communication (DTAC) before it can make an informed decision on the plan. Acting NBTC Secretary-General Trairat Wiriyasirikul said that the five members of the NBTC board have considered the reports submitted by the four panels assigned to conduct studies on four areas concerning the merger plan, namely the legal and economic implications, consumer protection and people’s rights and technologies. (Source: Thai PBS World)

▪ The Bank of Thailand to Pilot Retail CBDC by Year-end

The Bank of Thailand (BOT) is extending the scope of retail central bank digital currency (CBDC) development to a pilot phase by the end of 2022. With this, the country aims to assess how the technology would work in its financial system while studying associated risks and benefits. The pilot is part of a study to assess the suitability of technology, programmability, and design. The official page of the BOT states that the bank will assess the risk and benefits tied to CBDC from the pilot in formulating related policies and improving design in the future. (Source: The Crypto Times)

Source: Kenanga Research - 8 Aug 2022