MONEY MASTER

HSBC Holdings Plc  reported a  first-quarter profit miss , as rising  credit costs and geopolitical risks  offset otherwise stable operating performance. Earnings Impacted by Rising Credit Charges HSBC posted: Pre-tax profit: US$9.4 billion  (vs  US$9.6 billion expected ) Expected credit losses: US$1.3 billion Key drivers of higher provisions included: US$400 million  tied to a  UK fraud-related exposure US$300 million  in additional allowances linked to  deteriorating economic outlook  from Middle East tensions This reflects growing pressure on banks from  credit risk and macro uncertainty . Geopolitical Risks Hit Growth Regions Although HSBC has no direct exposure to Iran, the  spillover effects of the conflict  are impacting: Middle East economies , a key growth region Global trade flows , where HSBC has significant exposure As one of the world’s largest trade-finance banks, HSBC is particularly sensitive to  ...

Malaysia’s banking sector started 2026 on stable footing, but analysts are increasingly cautious as loan momentum shows early signs of moderation. Loan Growth Holds Near 5% System loan growth stayed close to  5% year-on-year (y-o-y)  in January, according to  HLIB Research . Breakdown of lending trends: Household loans:  ~5% y-o-y Supported by strong residential mortgages and hire purchase financing Business loans:  Moderated to ~4% y-o-y Weaker capital expenditure and working capital demand Loan approvals rebounded sharply, rising nearly  27% y-o-y , driven by business credit demand of around 42%. Key Point: Loan growth remains steady, supported by household lending, but business momentum is softening. Deposits and Margins Deposit growth eased to nearly  3% y-o-y , dragged by weaker fixed deposits and foreign currency savings. However: Current and savings account (CASA) growth rose 8% y-o-y Banks continued optimising funding costs to protect yields Ne...

Hong Leong Financial Group Bhd  reported a modest improvement in 2QFY2026 earnings, supported by loan growth and cost discipline, despite margin compression and higher impairment charges. Net profit for the quarter rose 7% year-on-year to RM899.3 million. The group declared an interim dividend of  22 sen per share , up 10% from last year. For 1HFY2026, net profit increased 3.2% to RM1.74 billion. Key Financial Metrics 2QFY2026: Net profit: RM899.3 million (+7%) Revenue: RM1.92 billion (+3.2%) Interim dividend: 22 sen 1HFY2026: Net profit: RM1.74 billion (+3.2%) Revenue: RM3.86 billion Operational highlights: Gross loans growth: +8.2% YoY to RM215.7 billion Domestic loan growth: +8.3% (vs industry 4.9%) Net interest margin: 1.83% CASA growth: +12.1% to RM79.6 billion Cost-to-income ratio: improved to 35.9% Gross impaired loans ratio: 0.59% CET1 ratio: 12.6% Annualised ROE: 10.7% Book value per share: RM29.16 Money Master Take HLFG’s quarter reflects operational stability rather...

DBS Group  posted weaker-than-expected fourth-quarter earnings, underscoring the growing impact of lower interest rates on Singapore banks and flagging  continued profit headwinds into 2026 . The lender reported  4Q net profit of S$2.26 billion , down  10% year-on-year , missing analysts’ estimates of nearly  S$2.55 billion . The decline was driven mainly by a  sharp drop in net interest margin (NIM)  as domestic interest rates eased. DBS’  group NIM fell to 1.93% , from  2.15% a year earlier , dragging net interest income lower.  Return on equity slipped to 13.5% , compared with  15.8%  in the prior year. Looking ahead, CEO  Tan Su Shan  said  2026 net interest income and net profit are expected to come in slightly below 2025 levels , assuming: Singapore overnight rate (SORA) averages  ~1.25% Two US Federal Reserve rate cuts A  stronger Singapore dollar On asset quality,  loan-loss provisions jump...

  Maybank (KL:MAYBANK) Net Profit : RM2.63b (+4% YoY) EPS : 21.75 sen NII : +1.1% YoY NOII : Higher, supported by fees and trading Provisions : Higher bad debt charges, but offset by income growth Dividend : 30 sen  first interim cash dividend  (dates TBD) Guidance : Reaffirmed FY2025 ROE target ≥ 11.3%  Takeaway : Resilient earnings with strong dividend payout. Higher provisions are a watchpoint, but Maybank remains attractive for income-focused investors. Public Bank (KL:PBBANK) Net Profit : RM1.76b (-1% YoY) NII : +5.1% YoY NOII : +15% YoY Drag Factor : Lower non-taxable income pressured bottom line Asset Quality : Remains strong with prudent loan loss reserves Dividend : 10.5 sen  first interim dividend , ex-date Sept 12, payable Sept 24 Takeaway : Profit dipped slightly, but underlying income growth is strong. Public Bank maintains its hallmark of  asset quality discipline and steady dividends , though its yield trails Maybank’s more generous payout. ...

Earnings Snapshot Malayan Banking Bhd (KL:MAYBANK), Malaysia’s largest lender by assets, reported a  net profit of RM2.63 billion  for 2QFY2025, up  4% year-on-year  from RM2.53 billion. Earnings per share stood at  21.75 sen . Net Interest Income (NII) : +1.1% YoY, reflecting stable loan growth and net interest margin support. Non-Interest Income (NOII) : Rose, providing a boost despite softer trading conditions. Provisions : Higher allowances for bad debts partly offset the income gains. Dividend Declaration Maybank declared a  first interim cash dividend of 30 sen per share , with entitlement and payment dates to be announced later. This reflects the bank’s continued focus on shareholder returns. Guidance Management reiterated its  FY2025 Return on Equity (ROE) target of at least 11.3% , signaling confidence in sustaining profitability despite elevated provisions and a cautious economic outlook. Investment Takeaways Resilient Core Business : Loan gr...

 Strategic Misstep Highlights Fragility of AI Rollouts in Banking Commonwealth Bank of Australia (CBA), the country’s largest lender, has reversed its decision to eliminate 45 customer service roles, initially slated for redundancy due to artificial intelligence (AI) implementation. The about-face follows intense scrutiny and legal action from the Finance Sector Union (FSU), raising broader questions about AI deployment strategy and workforce impact in the financial sector. Voice Bot Efficiency Claims Disputed CBA’s justification for the cuts relied on the claim that its new voice bot technology had reduced weekly call volumes by 2,000. However, the FSU contested this assertion, presenting evidence of increasing call activity and reports that staff were required to work overtime. Team leaders were also reportedly called in to handle overflow, contradicting the bank’s efficiency narrative. CBA acknowledged its misjudgment, stating the roles "were not redundant" and that their ...

In a move that could reshape the global financial landscape, the  UK and Singapore have entered a strategic collaboration on artificial intelligence (AI) and tokenized finance , with direct implications for financial institutions, fintech firms, and technology investors. The agreement—formalized during the  10th UK-Singapore Financial Dialogue —brings together the  UK Financial Conduct Authority (FCA)  and  Monetary Authority of Singapore (MAS) , reinforcing their mutual commitment to advancing next-generation finance infrastructure through  Project Guardian  and  Global Layer One (GL1) . Why Investors Should Take Note This pact signals a regulatory green light on two major innovation pillars: Tokenization of Real-World Assets (RWAs) Scaled deployment of AI in financial services Both trends are already drawing capital, but this cross-border commitment could accelerate adoption, particularly among institutional investors and capital market operator...

As markets navigate policy shifts and macro uncertainty, investors are rotating into stocks that offer both stability and income. U.S. Bancorp (NYSE: USB), a leading regional bank with nationwide reach, presents a compelling case for medium- to long-term investors looking for a balance of growth and income. Why U.S. Bancorp Deserves a Closer Look Steady Earnings Growth on the Horizon U.S. Bancorp is projected to grow its net profit by 9.1% annually over the next three years, reaching close to $7.7 billion by FY2027. This growth is underpinned by a solid 24.3% net profit margin, supported by diversified operations in consumer banking, corporate lending, and wealth management. Valuation Remains Attractive Trading at a forward P/E of just 10.67x, USB is reasonably priced compared to sector peers. With the stock currently at $46.49—below its 52-week high of $53.98—it offers potential for upside. Analysts estimate a fair value of $50.38, indicating room for an 8.4% price increase. A Strong ...

  Market Overview Singapore stocks opened lower on Wednesday , mirroring  US market declines  as concerns over  chip trade restrictions  and  weak consumer confidence  pressured tech stocks. Straits Times Index (STI) fell 0.23% to 3,906.84 , with 122 gainers vs. 90 decliners. US markets struggled , with the  Nasdaq falling 1.35%  and the  S&P 500 down 0.47% , as  potential semiconductor export restrictions  to China weighed on sentiment. Singapore Market Performance & Sector Highlights Singapore equities gained 6% in the past three months ,  outpacing ASEAN markets , driven by: Financial sector (+13%) , supported by rate alignment with the US. Telecom & Utilities sector growth , fueled by AI-driven  data center expansion . Government bond yields remain stable , benefiting from steady inflation and interest rate trends. Stocks to Watch OCBC Bank (O39.SG) : Q4 net profit rose 4% YOY to S$1.69 billion , but...

Goldman Sachs Group Inc. is set to lay off a few hundred employees in the coming weeks as part of its routine annual review of low-performing staff. The planned reductions will bring the total cuts for 2024 to about 3% to 4% of the bank's workforce, which aligns with the firm's typical approach to managing costs and maintaining efficiency. Key Points: Routine Job Cuts : The upcoming layoffs are part of Goldman Sachs' annual cull, which is a standard practice aimed at dismissing underperforming employees to control costs and make room for new talent. This annual review, usually affecting 1% to 5% of the workforce, was temporarily paused during the COVID-19 pandemic and was near the lower end of the range last year. Current Workforce and Future Plans : As of mid-2024, Goldman Sachs employed around 44,300 people. Despite the job cuts, a company spokesperson stated that the bank expects to have more employees by the end of 2024 than a year earlier, reflecting a strategy to cont...