LONDON/FRANKFURT: For Deutsche Bank chief executive Christian Sewing, shrinking the group's investment bank will be the relatively easy: if expensive: part of his restructuring plan.Finding steady revenue streams to produce the 7.4 billion euros (US$8.31 billion) the bank expects in charges from cutting down its trading arm will be more challenging.Germany's biggest bank said on Sunday it planned to focus on corporate banking, foreign exchange, deal-making, asset management, and private banking. All these areas potentially could provide less volatile revenue streams than the bank's equity and rates trading arms, but they are already fiercely competitive and undergoing sweeping technological changes.CORPORATE BANKINGDeutsche Bank wants corporate banking to be the center of its business.This involves building on its strengths in transaction banking - such as trade finance and cash management.The bank is held up by rivals as a traditionally strong performer in these areas, but its … [Read more...] about After Deutsche Bank cuts, where will the growth be?
Leveraged finance investment banking
THE relationship between finance and the real economy is arguably at the root of the contemporary economic malaise. Unlike earlier acceptance of linear causation, recent recognition of a curvilinear relationship between finance and economic growth, implying “diminishing returns”, has important implications. Financialisation undermines the real economy in the following ways. While finance may promote growth of the real economy “in the early stages”, “too much finance” is bad for growth. The rise of market finance promises higher returns, ie, more financial rents. With finance increasingly used for speculation, debt-financed share buybacks, as well as both “brownfield” direct and “portfolio” investments, buying existing assets means not creating new economic capacities. Financialisation has thus accelerated the “slow retreat” from providing credit for productive investments to fund speculation for short-term gain … [Read more...] about Financialisation undermines the real economy
NEW YORK: Initial exchange offerings (IEOs) are currently the most popular fundraising trend in the cryptocurrency industry, which has seen poster child bitcoin surge more than 150per cent in 2019. As the name suggests, initial exchange offerings are conducted over crypto trading platforms and exchanges.Binance was the first major cryptocurrency exchange to join the IEO wave, with the introduction of Binance Launchpad this year. A handful of IEOs has been done before but in much smaller exchanges.In January, the Binance platform conducted the sale of the BitTorrent (BTT) token, or digital currency, raising US$7 million in just the first 14 minutes of sale opening. San Francisco-based BitTorrent is a software company specializing in peer-to-peer file-sharing.BACKGROUND ON CRYPTOCURRENCIESBitcoin is the original cryptocurrency created in 2008. It is a form of electronic currency, independent of traditional banks, that allows users to send money directly from one computer to another even … [Read more...] about Explainer: Initial exchange offerings flourish in crypto market
PETALING JAYA: AMMB Holdings Bhd’s net profit for the fourth quarter ended March 31 jumped 81.4% to RM459.67 million from RM253.41 million a year ago driven by higher lending volume, lower expenses from non-repeat of severance cost and increase in recoveries. Its revenue grew 5.5% to RM2.33 billion compared with RM2.11 billion in the previous year’s corresponding quarter. For the financial year ended March 31 (FY19), AMMB’s net profit increased 33% to RM1.51 billion from RM1.13 billion a year ago mainly thanks to its share in results of associates and joint ventures and net recovery of RM303.8 million while revenue grew 6.3% to RM9.12 billion from RM8.58 billion. AmBank Group CEO Datuk Sulaiman Mohd Tahir (pix) said it achieved commendable results for the financial year 2019, which demonstrates that its transformation strategy is bearing fruit and generating value for the group, as it continue to execute its priorities despite heightened competition and headwinds. Net … [Read more...] about AMMB net profit jumps 81.4% in fourth quarter
Jakarta. Indonesia, an emerging middle-income country, is already the world's 16th largest economy by gross domestic product and the 10th strongest in terms of purchasing power parity, and a member of the G-20. A number of global consultancy firms and banks have reported that the world's fourth most populous nation, which has charted impressive economic growth since overcoming the Asian financial crisis in 1997-1998, has yet to unleash its true economic potentials, given the country has a large young population, is rich in natural resources and is currently seeing a middle class boom – which has boosted the number of its affluent consumers. Bloomberg reported in January, citing a report from Standard Chartered, that Indonesia could shake up the world's gross domestic product rankings by breaking into the top five in 2030. This is a much more optimistic prediction than the one made in a report by McKinsey in 2012, which said Indonesia … [Read more...] about Can Indonesia Leverage a ‘Golden Moment’ in Its Economy?