TOP NEWS IN GLOBAL FINANCIALS
* Citigroup Inc. will sell its consumer banking franchises in Indonesia, Malaysia, Thailand and Vietnam to UOB Group. The deal excludes the U.S. bank's institutional businesses in all four countries. Separately, Citigroup posted a fourth-quarter 2021 net income of $3.17 billion, or $1.46 per share, compared with a net income of $4.31 billion, or $1.92 per share, a year earlier.
* Stephen Hester is set to become chairperson of Finland-based Nordea Bank Abp's board in October, succeeding Torbjörn Magnusson. Hester, who ended his executive career earlier in 2021, brings to the role extensive experience that includes a stint as CEO of U.K.-based Royal Bank of Scotland Group PLC, now NatWest Group PLC. Hester is expected to join the board as vice chair in March, while Magnusson will become vice chair from Oct. 1. The bank said incumbent Vice Chair Kari Jordan is not available for reelection.
➤ Indonesian lenders maintain lead as best-performing bank stocks of Q4'21
Small Indonesian banks are likely to sustain their strong stock performance in the new year after besting their regional peers in 2021, as the Southeast Asian nation's economic outlook improves.
➤ Big US banks poised for guidance reset in Q4'21 reports after rates increase
Analysts expect that cash-heavy balance sheets will have kept net interest margins under pressure in the fourth quarter of 2021, but they might be bottoming out.
US & CANADA
* Former Sallie Mae student loan servicer unit Navient Corp. is canceling $1.7 billion in private student debt for about 66,000 borrowers to settle deception charges from 40 state attorneys general, including six outstanding state lawsuits against the company, The Wall Street Journal reported, citing Mark Heleen, Navient's chief legal officer. While denying the claims, Navient agreed to make a one-time payment of about $145 million to the states as part of the settlement, according to the report.
* JPMorgan Chase & Co. reported a fourth-quarter 2021 net income of $10.4 billion, or $3.33 per share, compared with a net income of $12.14 billion, or $3.79 per share, in the fourth quarter of 2020.
Click here for more of the day's essential bank and financial services news in the U.S. and Canada.
LATIN AMERICA
* Mexican President Andrés Manuel López Obrador said the sale of Citigroup's operations in the country is an opportunity to localize the bank and return it to national investors, El Financiero reported. AMLO said Carlos Slim of Grupo Financiero Inbursa SAB de CV and Carlos Hank González of Grupo Financiero Banorte SAB de CV have "sufficient resources" to purchase Grupo Financiero Citibanamex SA de CV while lauding Ricardo Salinas Pliego of Banco Azteca SA Institución de Banca Múltiple's interest in purchasing the bank.
* Argentina's consumer price inflation was recorded at 3.8% for December 2021 and 50.9% for full year 2021. A survey by the central bank last week forecast inflation would reach 54.8% in 2022, El Economista reported.
EUROPE
* Switzerland-based Credit Suisse Group AG seeks to recover more money in connection with the liquidation of funds managed jointly with insolvent supply chain financier Greensill Capital (UK) Ltd. and has submitted five insurance claims totaling about $1.17 billion related to overdue payments by debtors, Handelsblatt wrote.
* The debt collection problems of Danske Bank A/S appear to also have affected the bank's Swedish business, Finans reported. An initial study shows issues similar to those already identified in Denmark and Finland are potentially present in Sweden, albeit on a much smaller scale.
Click here for more of the day's essential financial news in Europe.
MIDDLE EAST & AFRICA
* A court in Mozambique cleared the CEO of Standard Bank Group Ltd.'s local unit from charges of rigging the foreign-currency market after allegations by the country's central bank, Bloomberg News reported. The court, however, upheld the central bank's finding that the South Africa-based lender was operating an offshore payment system without approval from the regulator.
* Economists warned of a growing risk that Ghana could face a debt crunch on account of fast-rising debt levels and high interest payments, Reuters reported. Separately, Ghana yesterday launched the Pan-African Payment and Settlement System, or PAPSS, a cross-border financial market infrastructure that connects payment transactions across Africa.
ASIA-PACIFIC
* India's central bank canceled the certificate of registration of Morgan Stanley India Securities Private Ltd. and seven other nonbank financial companies after the firms surrendered their certificates and the right to conduct business as nonbank financial institutions in the country. Similarly, the Reserve Bank of India canceled the registration certificate of housing finance company Indie Homefin Pvt. Ltd.
* Japan's Mizuho Financial Group Inc. is expected to appoint Deputy President Seiji Imai as its new chairperson, The Mainichi Shimbun reported, citing an unnamed source. The decision is subject to approval by the group's board Jan. 17 and follows the promotion of senior executive officer Masahiro Kihara as its new president.
* Bank of Qingdao Co. Ltd. is aiming to raise 4.33 billion yuan via a rights issuance to improve its capital strength and competitiveness. The China-based lender aims to replenish its core Tier 1 capital, enhance its capital adequacy ratio and support its development of future business through fundraising, according to the prospectus for the plan.
Click here for more of the day's essential financial news in Asia-Pacific.
Mary Christine Joy and Ryan Sy contributed to this report.
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