Income Foreign Banks in Indonesian Shine

The performance of foreign branches (KCBA) operating in Indonesia sparkling. Call it the Citibank and The Hongkong and Shanghai Banking Corporation Limited (HSBC), enjoy increased profits first semester of 2012. Based on the financial statements, profit and Citibank first half of the year rose 69 percent to Rp 1.1 trillion. Meanwhile, HSBC posted a profit of about 65 percent to Rp 711 billion. 

Both banks recorded a profit growth above average. As a comparison, based on data from Bank Indonesia (BI), as of the end of June, the average earnings of foreign banks in the country grew 49 percent a year. One cause of the increase in both the foreign bank's profit is their success rate cut operating expenses instead. Citibank for example, cut non-interest operating expenses 45 percent to Rp 536 billion. Load components shrink them, post spot and derivatives, operational risk losses and commission expense or provisi.HSBC also successfully suppress non-interest operating expenses. So that it can reap non-interest operating income of Rp 77.68 billion.

 While the increase in the bank's core business, which is arguably the interest income is not so significant. Citibank, for example, recorded an increase in net interest income or net interest income (NII) was just 3.36 percent to Rp 1.54 trillion. While HSBC noted NII growth of 3.03 percent to Rp 1.09 trillion. In fact, in terms of loan portfolio grew 15.3 percent to Rp 35.4 trillion. "The corporation is HSBC's core business, contributing 75 percent-80 percent," said SPV Finance and Deputy Chief Finance Officer of HSBC Indonesia, Hanna Tantani. The remaining consumer business and retail. Citi reluctant indulgence recipes that reduce operational costs. "Our long-term vision, so that the focus and priorities of the company and customer satisfaction. We believe will produce consistent income," said Tigor M. Siahaan, Citi Country Officer Indonesia, Wednesday (08/29/2012) night. But, there is also a record KCBA loss, namely Bank of America Merrill Lynch. He recorded a loss of USD 957 million, while a year earlier profit was Rp 32.75 billion. One reason is, shrinking net interest income of Rp 36.08 billion to Rp 10.6 billion. (Nina Dwiantika, Sanny Cicilia / Cash)

Justin Timberlake Selling luxury apartment!

Singer Justin Timberlake decided to sell the house "single" after they planned to stay with Jessica Biel. Justin, the singer then penetrated the world of acting, sold his apartment in New York for $ 7.65 million U.S. Dollars. Luxury property is located in downtown Manhattan with three bedrooms and three bathrooms. Justin will benefit from the penthouse bought in 2010 that as many as 6.56 million U.S. Dollars. Inside the penthouse you can see stunning views of Midtown Manhattan. In fact, you can also see the Empire State Building clearly. In addition, other features are also giving the impression of a romantic fireplace and outdoor terrace. The main bathroom has floor apartment is equipped with a heater. Additionally, the bathroom also has a bathtub-shaped oval and covered with glass shower. While the kitchen has a glass cabinet and sophisticated furnishings. Now, interested in buying the penthouse of Justin Timberlake straight?

Gold Continues Rise, High Level Approach

The price of gold rose again on Monday, August 27, 2012, near the highest level in 4.5 months semoat happened last week. Gold prices rose after emerging expectations for further monetary easing from the U.S. central bank, the Federal Reserve. The Reuters news agency reported, spot gold prices in Singapore rose 0.3 percent to U.S. $ 1,673.99 an ounce on Monday morning, after posting a 3.4 percent rise last week. Spot gold prices in the United States also rose 0.3 percent to U.S. $ 1,677.10. While the price of U.S. gold futures for December delivery at the end of last week closed up 0.25 percent to U.S. $ 1,677.10. Federal Reserve Chairman Ben Bernanke told Congress that the U.S. central bank has room provide additional monetary stimulus to boost growth of the U.S. economy. This condition supports the positive sentiment in the gold market. Other data showed that India's gold imports, one of the major consumers of gold, tends to fall this year. High local prices curb buying interest of Indian society. The spot price of silver in Singapore also rose 0.32 percent to U.S. $ 30.87 per ounce, and the price of silver futures for September delivery in the U.S. at the weekend closed up 0.73 percent to U.S. $ 30.8. (adi)

Read this to Understand Stanchart Scandal

Why do we need to care about the scandal Standard Chartered is happening far away in America?
Standard Chartered is a world-class bank, based in London. It is important for us to understand what happened because this bank is now focusing its business in Asia and developing countries. Thus, any scandal that might befall Stanchart will affect the future of the bank's business in the future.
Okay, but what the heck he had done so in the scandal?
One of the banking regulator in New York that the Department of Financial Services (DFS) pointed StandChart surreptitiously running a business unit in cooperation with the Iranian government. Through the unit, StandChart has conducted more than 250 billion dollars in illegal transactions for nearly a decade.
DFS allegations in a report like this:
"For almost 10 years, [Standard Chartered] with the Iranian government deliberately concealed approximately 60,000 transactions secret from the regulator, involving about 250 billion U.S. dollars, and reap millions of dollars in fees. Standard Chartered makes the action of the U.S. financial system vulnerable to terrorists, arms dealers, drug mafias, and corrupt regimes, as well as blocking the investigators to obtain important information to track criminal activity. "
DFS said Stanchart run a wire-stripping.
Wire-stripping?
The process of changing the code to hide the bank where the transaction originated. Often, by replacing the swift code the code that identifies a bank. The report pointed out that DFS following StandChart manual also explains how to do this to employees:
"Make sure that the column number 52 for the payments not be filled or not written any swift code to '_' ... (Note: if this is not done, then the Iranian bank swift code will appear - depending on the route - in payment messages sent [to branches of New York]). "
These allegations are similar to money laundering charges on HSBC and Barclays are also similar violations in 2010. Is it the same?
They are similar, but there are also major differences.
Which is?
Unlike HSBC and Barclays, Standard Chartered rejected the allegations. In a statement, said "categorically rejects the depiction of the facts which created the Department of Financial Services New York State".
Stanchart explained that the financial report has also stressed that he has done a review of the bank's compliance historically, and has been discussed by various U.S. government agencies, including DFS, the Department of Justice, Office of Foreign Assets Control, New York Federal Reserve Group, and the district attorney's New York since January 2010.
Standard Chartered also said that he "did not believe it describes the DFS commands a full and accurate facts. Analysis of compliance submitted to government agencies also showed that in this period our group meets, including not violating U.S. sanctions against Iran and the relevant regulations of payment u-turn. As we have revealed to the authorities, 99.9 per cent of all transactions with respect to Iran comply with the regulation of u-turn. Total value of transactions that do not follow the u-turn under U.S. 14 million dollars. "
Briefly. U-turn is what again?
Until November 2008, the U.S. Office of Foreign Assets Control has been set that the U.S. financial institutions, under certain circumstances and under strict supervision of the regulator, may process certain transactions for Iranian banks, individuals and other entities. Regulas appropriate federal, state in question is that the transactions carried out abroad by non-Iranian foreign bank, and only through the U.S. financial system to non-Iranian foreign bank other.

Positive U.S. Economic Data, Strengthens Asia Stock

Asian stocks open higher on stock trading on Monday (06/08/2012). It was triggered from the data that strengthened the U.S. economy and the optimism of progress in the United States. Japan's Nikkei stock index rose 1.85. South Korea's Kospi stock index rose 1M9%, and the Australian stock index S & P rose 1.4%. Meanwhile, the Hang Seng stock index rose 2.1%. That pushed up stocks of HSBC Holdings Plc rose 3.4% and China Coal Energy Co. shares rose 3.3%. and Esprit Holdings Ltd. shares rose 4.1%. "The larger-than-expected 163 000 increase in U.S. non-farm payrolls in June, in addition to a small increase in non-manufacturing ISM index, thereby reducing the economic worries the United States to follow Europe in recession," said Paul Ashworth, economist at Capital Economics, quoted from MarketWatch . Furthermore, European concerns eased somewhat over the weekend amid new speculation, the European central bank will buy government bonds in Spain and Italy next month. The shares rose the Toyota Motor Corp. shares rose 3.3% as investors responded positively to the performance of the company. Isuzu Motors Ltd. climbed 4.4% after reporting positive performance. Rio Tinto shares rose 3.7%. Fortescue Metals Ltd shares rose 3.4%. Nippon Steel Corp shares rose 2.7% and Inpex Corp. shares rose 5.4% after it raised its profit forecast. Meanwhile, Pacific Metals Co. shares fell 10% seelah reported less favorable than the prediction performance of the company.