Business development asia standard chartered


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Business development asia standard chartered

  1. 1. Business Development Asia Standard Chartered – Singapore – February 2014
  2. 2. Current markets • North-East Asia: China, Koreas, and Japan • SE Asia – ASEAN: Vietnam, Thailand, Indonesia, Philippines, Malaysia, Myanmar, Cambodia/ Laos, Brunei • South Asia: India, Pakistan, and Sri Lanka • Oceania: Australia, NZ, and PNG • South Pacific: Fiji, New Caledonia, etc.
  3. 3. Challenges • Unwinding Fed stimulation packages / impact on SE Asia investment flows • Basel III – deleveraging on a global scale • China – Managing transformation economic model + growing geopolitical issues (+ arms race) • ASEAN – high debt volume (not merely public debt), and growing part owned by foreigners (PH and Malaysia, each 40%; Indonesia – 30-35% • No immediate recession in sight, but flattening of yield curves for some (India and Indonesia)
  4. 4. Individual countries • Philippines: outlook is good, albeit elections around Aquino • Indonesia: slow down, elections 2014 (April and July), and transformation of economic model • Thailand: teflon economy, but political challenges • Vietnam: more restructuring needed • Malaysia: 40% of debt held b • Cambodia: turmoil – China-backing of Govmnt. • Myanmar: trying to disconnect itself from China
  5. 5. Business Lost in Translation • Indonesia • Vietnam • Philippines
  6. 6. Wholesale Banking Portfolio - SC • Loans & advances: $156bn, of which manufacturing $40bn, Commerce $33bn,. • $156bn, of which: • USA + Europe: $47bn • Africa & Middle East: $21bn • Asia: $88bn, of which SING $28bn, HK $22bn, ROK $8bn, INDIA $6bn, and remainder $24bn • Banks: $69bn – Exposure to bank counterparties at $69.2 billion increased by $2.6 billion compared with 31 December 2011, mainly in Korea, Hong Kong, on the back of RMB financing demand, and in Other Asia Pacific (APR) due to increased money market activity in China. The Group continues to be a net lender in the interbank money markets, particularly in geographies such as Hong Kong, Singapore, Other APR, MESA and Americas, UK & Europe.
  7. 7. Standard Chartered portfolio • Cross-border exposure to China, Hong Kong, India, Singapore, Indonesia and Korea has risen further in 2012, reflecting business focus and continued expansion in our core countries. Changes in the pace of economic activity is reflected in the growth of cross-border exposure for certain territories. • Growth in business in China and Hong Kong continued to drive increases in cross- border exposure. Changes in exposures to both countries also reflect an overall reduction in the placement of surplus liquidity in China in the second half of the year and an increase in surplus liquidity placements in the US. • Cross-border exposure in Indonesia grew strongly reflecting the opportunities in this market for the Group as whole, and for our joint venture, Permata. Customer demand for US dollar loans, principally from local corporate customers, remained buoyant, and there were significant transactions for acquisition financing. • Korea has seen a reduction in exposures greater than one year and an increase in exposures of one year or less. This reflects a change of business mix from offshore funded term loans to local short-term trade finance.