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Banking Industry Update: Key Developments in Asia-Pacific Region for May 2000

Strategic Insights

— 2 min read

State-run Bank Negara Indonesia (BNI) has appointed Credit Lyonnais Securities Asia Ltd as its financial advisor to help turn around its loss-making operation. Meanwhile, the Bank of Korea has decided to keep the call rate at 5% due to a lack of inflationary pressure. In other news, the Indonesian Bank Restructuring Agency (IBRA) will soon sell the assets of former shareholders of liquidated banks, and National Australia Bank (NAB) has posted a record half-year net profit.

Key Takeaways:

  • BNI has appointed Credit Lyonnais Securities Asia Ltd as its financial advisor to help turn around its loss-making operation.
  • The Bank of Korea has decided to keep the call rate at 5% due to a lack of inflationary pressure.
  • IBRA will soon sell the assets of former shareholders of liquidated banks Bank Central Asia (BCA), Bank Dagang Nasional Indonesia (BDNI), and Bank Danamon.
  • National Australia Bank (NAB) has posted a record half-year net profit of $A1.57 billion, with a 13.2% rise driven by strong performance in the March quarter and overseas operations.
  • Uzbekistan has asked India to jointly set up banks and insurance companies to provide better credit and insurance facilities to export and import activities between the two countries.
  • The increase in bank loans in Korea hit a record high in April, with banks reducing loans in March to meet the Bank for International Settlement (BIS) capital adequacy ratio.
  • MBF Unit Trust Management has declared a 4.25 sen dividend to all unitholders of its Balanced Fund, with a gross distribution of RM21.85 million (US$5.75 million).
  • Visa has reported record annual payment volumes of $A51.55 billion (US$29.91 billion) in its fastest growing market, Australia.
  • National Australia Bank is set to issue US$1.5 billion in subordinated bonds for the US and European markets to augment its capital base ahead of the completion of the MLC acquisition.
  • First Nations Advantage, an Aboriginal-focused credit union, has established itself as a significant player in the Aboriginal economy, with over 800 members and $A7 million (US$4.06 million) in deposits.

Statistics:

  • 13.2% increase in National Australia Bank's half-year net profit
  • $A1.57 billion half-year net profit for National Australia Bank
  • 49.9% of National Australia Bank's after-tax profit contributed by overseas operations
  • 800 members and $A7 million (US$4.06 million) in deposits for First Nations Advantage
  • $A51.55 billion (US$29.91 billion) record annual payment volumes for Visa in Australia
  • US$1.5 billion subordinated bonds to be issued by National Australia Bank
  • 37% non-performing loans (NPL) for BNI
  • 12.5% target for BNI's NPL next year

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • The Jakarta Post
  • Bank Negara Indonesia (BNI)
  • The Bank of Korea
  • Indonesian Bank Restructuring Agency (IBRA)
  • National Australia Bank (NAB)
  • Visa
  • MBf Unit Trust Management
  • Citibank Bhd
  • Deutsche Bank
  • First Nations Advantage

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