Hsbc

(FILES) This file photo taken in London on August 3, 2020 shows an HSBC logo pictured on a wall outside a branch of the bank. HSBC said on June 18, 2021 it will incur a hefty charge of 1.9 billion euros ($2.25 billion) with the sale of its French retail banking operations to French lender My Money Group. DANIEL LEAL-OLIVAS / AFP It comes as the Asia-focused banking giant is exiting also the retail sector in the United States. London-headquartered HSBC said in a statement that the French sale, for a nominal one euro, would generate an estimated pre-tax loss of 1.9 billion euros ($2.25 billion). The business comprises 244 retail branches, serving 800,000 customers at the end of last year. HSBC said that about 3,900 employees would transfer to the buyer. "The signing... for the potential sale of our French retail banking business represents a significant step in progressing the actions we announced during our strategic update earlier this year," said HSBC chief executive Noel … [Read more...] about HSBC says French retail bank sale to cost 1.9 bn euros

The State Bank of Vietnam (SBV) is facing a delicate balance of curtailing excessive lending to real estate developers while reducing imminent Covid-19 risks to the sector, according to HSBC. Referring the property sector as an increasing source of growth for Vietnam, the bank in its latest report noted real estate activity in the country accounts for 8% of the GDP, while the ratio in ASEAN is between 5% and 15%. “The memory of a housing bubble of 2007-12, which ultimately led to a prolonged banking crisis, looms large in the collective conscience. Even after a gradual recovery in the banking sector, real estate loans continue to account for a large proportion of bank balance sheets,” noted the HSBC. While some banks do not have a specific classification on loans to the real estate sector, balance sheets of the “Big-4” SOE banks [Vietcombank, Vietinbank, BIDV, Agribank] reveal a key linkage with the associated construction sector, stated the bank. As the real estate market … [Read more...] about Delicate balance needed to address Vietnam’s property risks: HSBC

illustration photo, source: freepik.com Non-performing loans (NPLs) stemming from build-operate-transfer (BOT) projects are another roadblock for lenders and the domestic economy, according to National Assembly (NA) Chairman Vuong Dinh Hue at last week’s NA Standing Committee meeting. “The NPLs from the BOT credit package for the National Highway No.1A are a formidable obstacle,” Hue said. “According to the latest data, the NPL ratio exceeds 2 per cent, mainly because the new regulations have offered favourable conditions for banks to reschedule, reclassify, and restructure debts. When the State Bank of Vietnam’s (SBV) Circular No.03/2021/TT-NHNN, on additional conditions for debt restructuring and extending the roadmap for restructuring debts provisions until 2023 expires, the NPL ratio will be higher.” Hue also questioned the SBV about the issue at the meeting. “BOT highway projects will need more than VND300 trillion ($13 billion) of capital in 2022. Where will this money … [Read more...] about Profuse real estate lending on alert

Vietnam and the UK look forward to building on the strategic partnership with a focus on trade ties. Dominic Raab, British Foreign Secretary & First Secretary of State, has met with top leaders of Vietnam in Hanoi on June 22 to discuss trade and economic ties to tap the UK-Vietnam Free Trade Agreement (UKVFTA) that took effect on May 1. Dominic Raab, British Foreign Secretary & First Secretary of State (L), and Vietnam's President Nguyen Xuan Phuc in Hanoi on June 22. Photo: MoFA At the meetings with Vietnam’s President Nguyen Xuan Phuc, Prime Minister Pham Minh Chinh, and Foreign Minister Bui Thanh Son, the two sides look forward to building on the strategic partnership with a focus on trade ties. In the visit to Vietnam on June 21-22, Raab delivered a speech at the Asia-Europe Meeting (ASEM) High-Level Policy Dialogue (HLPD). He focused on the British roadmap for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)’s … [Read more...] about UK’s Foreign Secretary Dominic Raab arrives in Hanoi for further economic ties