The balance sheet growth comes amid the backdrop of listed Gulf banks report significant, record third-quarter profits. The combined net income for the period stood at USD 16.6 billion, an 11.6% increase from a year earlier, apart from marking a third consecutive quarterly increase, said a Kamco Invest report from December 2025, as credit conditions improved across the region.

Al-Budaiwi noted, “This path has been adopted by the GCC states as a steadfast approach and an unwavering commitment in all fields, especially within the monetary and banking sectors.”

While highlighting swift transformations in the world economy against a backdrop of successive political crises, the GCC Secretary-General remarked, “This necessitated enhancing the readiness of economic and monetary policies and taking measures to address these variables and mitigate their impacts.”

Talking about the 86th Meeting of the Committee of Central Bank Governors in Manama, the meeting was chaired by Central Bank of Bahrain Governor Khalid Ebrahim Humaidan and attended by his counterparts from across the six-member bloc.

During the event, Al-Budaiwi emphasised that GCC states have proven their ability to remain resilient and overcome various crises with efficiency and competence, making it imperative to enhance the responsiveness of economic and monetary policies and implement measures to address fluctuations.

Turning to the bloc’s standing on the world stage, Al-Budaiwi asserted that member nations have solidified their position as reliable international economic partners due to the robustness of their economies, along with factors like the stability of their fiscal and monetary policies and the effectiveness of their institutional structures. All these indicators now clearly confirm the strength and resilience of the banking and monetary sectors within the member states.

The post Gulf bank deposits hit USD 2.3 trillion, assets top USD 3.9 trillion as 2025 ends appeared first on International Finance.

Historically known for its casinos, Macao is accelerating economic diversification by turning to modern finance, particularly its fast-growing bond market, as a strategic pillar of growth. Over the past few years, isolated financial initiatives have coalesced into a robust bond market that connects Macao with international capital flows.

Strategic expansion

Macao’s government prioritised “modern finance” in 2020 to address an unbalanced industrial structure overly reliant on gaming. By 2022, it formalised a diversification blueprint known as the “one plus four” strategy.

Under this plan, the “one” refers to Macao’s traditional integrated tourism and leisure industry, while the “four” denotes four new pillars: healthcare, modern financial services, high technology, and a cluster of industries spanning conventions, exhibitions, trade, culture, and sports. This policy shift signalled that finance, and specifically the bond market, would play a central role in Macao’s next chapter.

Today, the financial sector, led by banking and insurance, alongside bonds, funds, and other services, has grown into Macao’s second-largest industry. The city’s bond market journey began only in 2018, yet progress has been swift. By 2021, Macao had established a Central Securities Depository (CSD) system to facilitate bond trading and custody.

In recent years, the government has improved issuance mechanisms, expanded financial infrastructure, updated regulations, and strengthened collaboration with Mainland China and Hong Kong, all to support the bond market’s growth.

This groundwork has attracted major bond issuers. The Ministry of Finance of China, the Guangdong provincial government, and leading banks and corporations have floated bonds in Macao.

Notably, bonds in Macao are issued in multiple currencies: Chinese yuan, US dollars, Hong Kong dollars, and the local Macanese pataca. By 2024, the total value of publicly offered and listed bonds in Macao reached about $100 billion, a remarkable feat for a market that barely existed a few years ago.

The bond boom

As a leading commercial bank in the territory and the chair of the Securities and Funds Industry Association of Macao, ICBC (Macau) plays multiple roles in bond deals.

It serves as an issuer, an institutional investor, an underwriter, a clearing and settlement bank, an agent bank, and a trustee administrator, covering the entire bond market value chain. The bank also provides one-stop services for bonds from issuance to trading.

Over the past few years, ICBC (Macau) has spearheaded many of Macao’s key bond transactions. It has issued over $1 billion in bonds annually for four consecutive years, making it the most active and diversified bond issuer among local players. The bank has also pioneered various innovative offshore bond products, often with colourful nicknames.

These include “Kung Fu bonds,” “Dim Sum bonds,” “Lotus bonds,” “Pearl bonds,” and “Yulan bonds,” among others. Each term refers to a specific category of offshore bond tailored to different investor markets or currencies. By creating this multi-market, multi-product portfolio, ICBC (Macau) has helped put Macao on the map for global bond investors. Leveraging the advantage of its full banking license, the bank actively invests across various bond markets, further linking Macao’s capital market with the world.

Macao’s bond market evolution

As one of Macao’s leading banks, ICBC (Macau) has positioned itself at the heart of the bond market’s development, in line with the government’s push to diversify the city’s casino-heavy economy through modern finance.

The bank’s deep involvement is helping transform Macao from a one-industry town into a budding financial hub, with the total value of listed bonds in the city surging to around $100 billion by 2024.

ICBC (Macau)’s Macao headquartered building serves the entire bond market value chain, from issuance and underwriting to clearing and investment. As a major local institution, ICBC (Macau) is the chair of Macao’s Securities and Funds Industry Association, and it plays multiple roles across the bond market value chain.

The bank wears many hats. It acts as a bond issuer, an institutional investor buying bonds, an underwriter helping other entities issue debt, performs technical functions like clearing and settlement, and serves as an agency bank and trustee administrator for bond offerings.

This all-in-one participation has made ICBC (Macau) one of the bond market’s most pivotal players. Over the past few years, the bank has spearheaded many of Macao’s landmark bond deals and consistently led in issuance volume.

Since 2020, ICBC (Macau) has issued bonds in the local market for four consecutive years, raising more than MOP 8 billion (around $1 billion). That track record makes it the most active and diversified bond issuer among Macao’s banks.

In January 2025, for example, ICBC (Macau) launched a $250 million three-year bond as part of its global medium-term note programme. The notable deal was listed on Macao’s exchange (MOX) and was among the first to benefit from a new Hong Kong–Macao bond clearing link that opened the market to a wider pool of investors. ICBC (Macau) is steadily boosting the market’s scale and liquidity by issuing sizable bonds and attracting outside investors.

Beyond volume, ICBC (Macau) has also been a leader in innovation within the bond sector. It has pioneered a range of niche bond products with catchy nicknames that underscore Macao’s international connectivity. These include offshore renminbi bonds known as “Dim Sum bonds” (a term for RMB-denominated bonds issued outside Mainland China) and Macao’s very own “Lotus bonds,” the local label for RMB bonds issued in the territory.

The bank’s underwriting portfolio spans multiple markets and currencies, from “Kung Fu bonds” (international bonds by Chinese issuers) to “Pearl” and “Yulan” bonds, indicating a breadth of expertise in both Chinese and global bond markets. By bringing such products to Macao, ICBC (Macau) has expanded the city’s bond offerings beyond vanilla debt, giving issuers and investors more options and tying Macao’s market into regional trends.

All of this reinforces Macao’s ambitions to become a modern financial centre. ICBC (Macau)’s comprehensive involvement in the bond ecosystem has been instrumental in turning the government’s vision of economic diversification into reality. Each role the bank plays, whether helping a local firm issue its first bond, investing in a public infrastructure bond, or streamlining cross-border settlement, builds confidence in Macao’s financial infrastructure.

The bank’s support for innovative bonds, like green and “Belt and Road” themed issues, also signals that Macao can be a platform for financing projects far beyond its shores. In short, ICBC (Macau) is not only driving deals, it is helping to anchor Macao as a credible finance hub in the Greater Bay Area and beyond.

Unique advantages fuelling growth

Geographically, Macao serves as a strategic gateway between mainland China, Portuguese-speaking countries, and markets involved in China’s Belt and Road Initiative. The city enjoys free-port status and an independent customs regime, while being an integral part of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). In the context of China’s continued opening-up, this position gives Macao a prominent edge as a regional financial hub connecting East and West.

Equally important is Macao’s business-friendly financial environment. The city boasts abundant fiscal reserves and private wealth, and adheres to internationally recognised standards of confidentiality in finance. Tax rates are competitive, lower than those in many global financial centres, which attracts businesses and investors.

Macao’s financial regulators maintain an open, pragmatic stance that supports innovation while ensuring stability. Thanks to these factors, the banking sector in Macao is highly internationalised; by the end of 2024, international assets made up 83.4% of total banking assets in the territory. In other words, a large share of Macao’s banking business connects to overseas capital, reflecting the city’s global reach.

Supportive policy from the broader region also plays a key role. Macao is one of four core cities in the Greater Bay Area, a dynamic economic zone in southern China with a combined GDP of around $1.8 trillion. Being part of this region means Macao can tap into a vast market and diverse financial service needs nearby, which helps propel the growth of its nascent finance sector.

Furthermore, Macao’s deepening integration with its mainland neighbour, Hengqin (an island in Guangdong province), provides extra room and resources for development. A special Guangdong-Macao cooperation zone in Hengqin allows Macao’s financial industry to leverage Hengqin’s land, infrastructure, and client base while using Macao’s own global connections. As of the end of 2024, fund companies in this Hengqin cooperation zone managed around $600 billion in assets, highlighting the scale of opportunities being unlocked by regional integration.

Having successfully established a bond market “from zero to existence,” Macao is now looking to go “from existence to excellence,” as officials put it. The roadmap involves further opening and innovating to enhance the market’s competitiveness and cement Macao’s status as a modern finance hub. Key initiatives shaping Macao’s bond market future include making the market more liquid.

This means developing a more active secondary market for bonds and providing supporting services like better pricing (valuation), trading platforms, and funding options for investors. Embracing financial technology is part of this effort, as is introducing new investment products to keep the market dynamic. Strengthening these areas will enable investors to enter and exit positions more freely, which attracts greater participation.

Macao aims to broaden its international reach by deepening ties with mainland China and Portuguese-speaking countries. Given the city’s cultural and historical links, it’s uniquely positioned to bridge these markets. Officials are promoting cross-border collaboration, resource sharing, and complementary partnerships with institutions in these regions.

By integrating Macao’s strengths (such as its open market and bilingual heritage) with the vast resources of its partners, the goal is to create synergies that increase cross-border investment and financing. This would boost the scale and appeal of Macao’s bond market at home and abroad.

Macao is aligning its financial growth with global sustainability trends and fintech developments. The focus is on attracting green and sustainable bond issuers and investors, aligning with worldwide environmental finance initiatives.

Macao’s rapid progress in developing its bond market shows real determination to move beyond its reliance on casinos. The city has built a solid base for modern finance in just a few years, which is impressive. Macao could become a true financial hub if it continues to innovate, attract global investors, and strengthen ties with neighbouring regions. Its focus on sustainability and technology suggests a smart, forward-looking approach to long-term economic growth.

The post Bonds power Macao’s growth story appeared first on International Finance.

International Finance caught up with The Clock Towers Complex CEO Eng. Waleed Al-Harthi, who shared his insights on the high-profile deal, the company’s goals, and more.

Your SAR 6 billion syndicated financing deal with Al Rajhi Bank and Alinma Bank marks a major milestone. What significance does this hold for The Clock Towers Complex?

This financing is a significant milestone for The Clock Towers Complex. It allows us to refinance existing debt, enhance working capital, and fund key development projects. This strengthens our financial position, providing greater flexibility to meet the growing demands of Makkah’s hospitality and retail sectors. Most importantly, it positions us to continue offering exceptional services to pilgrims and Umrah visitors, supporting Saudi Arabia’s Vision 2030, particularly through the Pilgrim Experience Programme, which aims to enhance the journey for millions of visitors.

The Clock Towers Complex is a leader in Makkah’s hospitality and retail markets. How does this financing support your role, especially with Vision 2030’s goals and the Pilgrim Experience Programme in mind?

The Clock Towers Complex is a mixed-use complex that serves as a central terminal for pilgrims and tourists. With over 10,000 luxurious hotel rooms in iconic properties like the Fairmont Hotel, Raffles Makkah Palace, and Swissotel Makkah, alongside our renowned shopping mall, it provides a complete experience for visitors. This financing will help us expand and improve these assets to better serve the growing number of pilgrims and tourists. Vision 2030 aims to host 30 million Umrah visitors by 2030, and we are committed to playing a key role in the Pilgrim Experience Programme. This programme is focused on improving the pilgrimage journey, and our infrastructure is central to making that a reality.

How does The Clock Towers Complex align with the broader objectives of Vision 2030 and the Pilgrim Experience Programme?

Vision 2030 is centred around economic diversification, sustainability, and a strong focus on expanding tourism. The Clock Towers Complex plays an essential role in this transformation. As a mixed-use complex and a central terminal for pilgrims, we offer luxury accommodations, world-class retail experiences, and continuous investments in infrastructure, directly supporting the Kingdom’s vision. The Pilgrim Experience Programme is one of the key initiatives designed to improve the pilgrimage experience. We are proud to be part of this programme, as it enhances the services and facilities available to millions of pilgrims, ensuring Makkah remains a global hub for religious tourism while supporting Saudi Arabia’s broader economic goals.

Can you tell us more about the assets financed under this deal?

This financing supports key assets, including the iconic Makkah Clock Royal Tower, one of the tallest buildings in the world, which serves as a central landmark in Makkah. It also includes renowned hotels such as the Fairmont Hotel, Raffles Makkah Palace, and Swissotel Makkah, which provide top-tier services to pilgrims and tourists. Our shopping mall and other operating assets play a vital role in enhancing the visitor experience. These investments ensure that we continue to meet the needs of the growing number of pilgrims and tourists, supporting the Pilgrim Experience Programme and positioning Makkah as a leading destination for travellers.

What role do you see The Clock Towers Complex playing in the future of Makkah, particularly with the Pilgrim Experience Programme?

The future is incredibly promising for The Clock Towers Complex. As Makkah continues to grow as a global tourism hub, we are committed to being a central player in that growth. With Vision 2030 aiming to host 30 million Umrah visitors, our role in the Pilgrim Experience Programme will be key. We will continue investing in hospitality, retail, and infrastructure, ensuring we meet the needs of a growing number of visitors. Our goal is to provide exceptional accommodations and services that make the pilgrimage experience as seamless and memorable as possible, supporting Makkah’s continued development as a world-class destination.

The post The Clock Towers Complex facilitates pilgrim journey appeared first on International Finance.

Kos Stiskin, Finom’s chairman and co-founder, told TechCrunch that the capital infusion “will be used exclusively and only for growth and not for operational expenses or product development.” The latest round was a nontraditional funding one in which General Catalyst will not take any equity. Finom’s core operations, as of May 2025, are generating positive cash flow, with all new investments and funding going directly toward attracting new clients.

In 2025, Finom, primarily a banking business, expanded its offerings beyond digital banking services while making considerable efforts in innovation.

In February, Finom unveiled its “autonomous AI accounting agent” for Europe-based entrepreneurs and freelancers. The start-up has now expanded into direct lending, which incorporates an AI-powered scoring engine. Finom’s credit offering, available in the Netherlands, will be expanded across Europe by the end of 2025.

Expanding Rapidly

Right now, Finom counts over 100,000 businesses across Germany, France, Spain, the Netherlands, and Italy as customers, reporting positive unit economics in all markets. The start-up’s revenue model, which is primarily a subscription-based one, also generates revenue through transaction fees for certain services, apart from offering a competitive cashback programme. As the company expands into the territory of lending, the move has also opened a new revenue stream through interest on credit lines.

As per Stiskin, Finom doubled its annual recurring revenue in 2024 and became EBITDAM (earnings before interest, taxes, depreciation, amortisation, and marketing) profitable. The chairman and co-founder right now sees Qonto, a Paris-based challenger bank, as his business’s closest rival. Qonto, in 2022, announced a massive 486-million-euro (USD 552 million) Series D funding round. However, Stiskin believes that Finom has a “stronger localisation strategy and more comprehensive product suite.”

Presently, Finom has 505 employees, up 31.5% compared to 2024. Last September, the company named Alessandro Camilotti, former head of finance and analytics EU at Klarna, as its CFO. The venture has so far raised nearly 190 million euro (roughly USD 214 million) since its inception in 2020.

Through Finom, global businesses can conduct corporate payments with no limits, while enjoying unlimited cashback on all card transactions, even the biggest ones, apart from spending and receiving money in 150-plus countries. Companies can open their account fully online in five days to send and get money from anyone, anywhere, while enjoying benefits like lowest exchange rates, fixed and low transaction fees, up to 1% of unlimited cashback, and free in/out SEPA transfers (Single Euro Payments Area, which represents a pan-European network of countries where two cross-border bank accounts can send and receive payments in euros) and direct debits.

Here Are The Key Products

Using Finom’s “Unlimited Cashback” feature, medium and large companies can boost their businesses by maximizing their savings with a tailor-made cashback system, with benefits like up to 1% cashback on all card expenses, up to 200,000 euro in monthly transaction limit for each card, and, finally, unlimited free virtual cards.

Next is “International Transfers,” under which businesses can save, exchange, spend, and receive money like a local everywhere. Under this, 20-plus currencies exchange at great rates under transparent fees. Up to 75% of money gets transferred in 150-plus countries within the same day, saving entrepreneurs’ time and maximising efficiency.

Companies can open accounts within days, not months. The entire process becomes three times faster with a personal manager, allowing clients to instantly exchange over 20 currencies from their phones or desktops.

Also, Finom’s currency exchange feature is known for being three times cheaper than at traditional banks. The exchange rate, claimed as “exceptional” by the start-up, comes at the ratio of +0.5% at the interbank level. The businesses can store money with no commission in any of the 24 currencies available, while sending and receiving funds with a fixed fee of 5 euro.

Entrepreneurs, whether in corporate or enterprise settings, can manage account access and control team expenses through a unified interface using Finom. They can easily issue, top up, or set limits on cards for employees with just a few clicks. Additionally, they can provide either limited or unlimited access to external accountants and generate bulk exports of documents and transaction data.

The “Personal Account Manager” (a human professional) acts as the dedicated helping hand in sorting out international payment subtleties, while carefully checking the money transfer documents before the transaction takes place.

Image Credits: Finom

The post Start-up of the Week: AI innovations drive Finom’s new services appeared first on International Finance.

Mandy DeFilippo will be joining the bank from Citadel Securities, where she has been the Chief Operating Officer and Managing Director of Operations, Risk, and Legal and Compliance since 2022.

After seven years, Steven Cranwell is scheduled to leave the bank, and she will take his place. Her LinkedIn profile states that she was appointed CEO of the Americas in 2021.

“I’m eager to bring my international experience to an organisation with an unparallelled global network and passion for serving its clients, and I look forward to partnering with the Americas team to drive strategic growth and continued success in this important region for the bank,” Mandy DeFilippo said in a prepared statement.

According to Standard Chartered, Mandy DeFilippo will report to Roberto Hoornweg, the bank’s CEO for Europe, the Americas, the Middle East, and Africa.

“Her broad experience across financial markets, banking, and risk management will be hugely value-additive as we respond to an increasingly wide spectrum of needs among our US and Americas clients for financing, advisory, and risk intermediation,” Hoornweg said regarding Mandy DeFilippo’s appointment.

Mandy DeFilippo was the Global Head of Business Unit Risk Management for Morgan Stanley’s Fixed Income division before joining Citadel. She is a Harvard Law School lecturer and was the International Capital Market Association’s (ICMA) chair for several years. In ICMA’s more than half-century history, she was the first female member to occupy that position.

In addition, she will be the first female CEO of Standard Chartered in the US and the Americas. Germana Cruz is the CEO and Head of Financial Institutions in Latin America; Judy Hsu is the CEO of Wealth and Retail Banking; and Anna Urbanska is the CEO of Standard Chartered’s Polish bank.

These are just a few of the other markets where women hold key positions. Several women in banking have recently been promoted to CEO positions. Shortly after Pam Kaur was appointed as the first female Chief Financial Officer by the British bank, Lisa McGeough assumed leadership of HSBC US on January 1.

Additionally, when US Bank President Gunjan Kedia takes over from Andy Cecere on April 15, she will become the second woman to lead a top-10 American bank, matching only Jane Fraser of Citi.

Although Jamie Dimon is still in charge of JPMorgan Chase, attention is focused on Marianne Lake, the CEO of Consumer Banking, as a possible replacement, particularly since Jennifer Piepszak, another strong candidate, was appointed Chief Operating Officer in January 2025.

Appointment Comes At A Good Time

Meanwhile, Standard Chartered PLC’s most recent financial results showed a profit of USD 4.04 billion for 2024. Compared to its 2023 earnings of USD 3.47 billion, this represents a 17% year-over-year (YoY) increase.

While the profit attributable to ordinary shareholders is USD 3.59 billion, the profit attributable to parent company shareholders is USD 4.05 billion. At 1.94%, Standard Chartered’s net interest margin (NIM) is 27 basis points (bp) higher than 2023’s 1.67%. Operating income for 2024 is USD 19.54 billion, which represents an 8% increase over the previous year. Operating costs also increased by 8% to USD 12.05 billion from just USD 11 billion the previous year.

The company’s 2024 Common Equity Tier 1 (CET1) ratio is 14.1%, down from 14.2% in 2023. The total capital ratio is around 21.5%. As of the end of 2024, total loans and advances to customers totalled USD 281.03 billion, while total assets stood at USD 849.69 billion.

Standard Chartered has also made major strides in sustainable finance. The bank generated USD 982 million in income from this sector in 2024, which is a 36% rise from 2023. This brings the bank closer to its goal of reaching USD 1 billion in annual sustainable finance income by 2025.

This growth reflects the bank’s strong commitment to financing the transition to a low-carbon economy. Its sustainable finance lending and financing solutions rose to USD 507 million in 2024, up from USD 386 million in 2023, as per the financial institution’s 2024 annual report. Sustainable finance transaction services surged by 58% to USD 319 million. Payments and liquidity-based services jumped by 82%.

Looking ahead to Standard Chartered’s 2025 plans, the financial venture has announced a share buyback programme to purchase up to USD 1.5 billion of its ordinary shares starting in February. The move will reduce the bank’s share capital, following a non-discretionary agreement with JP Morgan Securities.

The buyback period is set from February 25, 2025, to August 21, 2025, with the stipulation that the activity will not exceed regulatory limits or Standard Chartered’s general authority to repurchase shares as granted by shareholders. The maximum number of ordinary shares that may be repurchased is capped at 250 million.

“JP Morgan Securities will conduct the buyback independently of Standard Chartered, making trading decisions on the London Stock Exchange and Cboe Europe, among other UK-recognised investment exchanges. The arrangement is structured to ensure that purchases adhere to the pre-established parameters and comply with relevant regulations, including the Financial Conduct Authority’s Listing Rules and EU market abuse regulations as incorporated into UK law,” Investing.com stated.

Shares acquired through the buyback will be cancelled as Standard Chartered seeks to streamline its capital structure. This announcement follows the company’s previous communication on February 21, 2025, regarding its intention to initiate the share repurchase.

In February 2025, Standard Chartered also launched its first ‘Priority Private’ centre in the Middle East, Europe, and Africa, dedicated to providing bespoke wealth management solutions for high-net-worth individuals (HNWIs). The new centre will cater specifically to the financial aspirations of the globally mobile HNW diaspora, enabling them to seamlessly manage, grow, and transfer their wealth across generations.

The post Business Leader of the Week: Mandy DeFilippo joins Standard Chartered as US CEO amid growth push appeared first on International Finance.

CEO Giuseppe Castagna stated that the UniCredit bid would result in the loss of over 6,000 jobs at Banco BPM, despite UniCredit’s plans to reduce expenses by more than a third.

“We are a big autonomous bank, an Italian bank with a strong vocation of being close to our regions and to the small and medium-sized companies that make up the backbone of our country,” Giuseppe Castagna said.

Banco BPM has rejected UniCredit’s 10-billion-euro (USD 101.5 billion) offer, claiming it undervalued the bank, bound it to strategic agreements, and increased shareholder risk.

The second-biggest bank in Italy, UniCredit, has a stake in Commerzbank in Germany, which was considered its top acquisition target. Investors were taken aback by its sudden shift from Germany to Italy with the latest acquisition attempt directed at Banco BPM, which seemed to catch the Italian government off guard.

The Italian government, which had advanced plans for a merger of BPM with rival Monte dei Paschi di Siena to create a third force in Italian banking behind UniCredit and Intesa Sanpaolo, is also thrown for a loop by UniCredit’s move.

UniCredit CEO Andrea Orcel is now planning to meet with Credit Agricole management to discuss the future of the lenders’ partnerships after the Italian bank offered to buy rival Banco BPM, Reuters reported.

“Credit Agricole is crucial to the success of Orcel’s bid for his smaller peer because it owns 9% of Banco BPM and because UniCredit has an agreement to sell funds distributed by Amundi, which Credit Agricole owns, to its clients in Italy,” the media house stated.

UniCredit’s bid for Banco BPM has also managed to catch the attention of the Italian banking sector’s main union, as it raised concerns about the potential impact of the deal on jobs.

“There is great concern about the employment fallout that could result from the deal. The numbers circulated so far are worrying and call for deep thought,” FABI union said in a statement, while adding that the offer was a “market transaction, in a phase of radical changes in the banking sector, both at a national and European level”.

Despite UniCredit’s surprise bid for Banco BPM’s acquisition is creating some sort of discomfort in the Italian banking circle, as per Reuters, the venture was always on the wish list of UniCredit CEO Andrea Orcel (a veteran dealmaker himself).

Even though many are terming UniCredit’s 10 billion euro (USD 11 billion) all-share offer for Banco BPM as an “Unsolicited One,” Orcel justified the move to the investors, by stating that he had to act because of an acceleration in Italy’s financial sector consolidation, where the government in November 2024 offloaded a 15% stake in Monte dei Paschi di Siena (MPS), potentially paving the way for an eventual tie-up between MPS and Banco BPM.

Buying Banco BPM will help Orcel reduce the gap with Intesa Sanpaolo, which in 2020 leapfrogged UniCredit to become Italy’s biggest bank by assets by buying northern mid-tier bank UBI and securing more than a fifth of the domestic market. At the end of September 2024, Intesa had 949 billion euros in assets, followed by UniCredit (for which Italy is the main market among the 13 where it operates) at 800 billion euros and Banco BPM at 195 billion euros.

“Banco BPM has three-quarters of its more than 1,400 branches in Italy’s richer north. It accounts for 13% of all bank branches in Lombardy, where UniCredit is weak despite having its headquarters in Italy’s financial and fashion capital Milan. Additionally, Banco BPM has an 8% market share in Veneto, another wealthy region in the northeast, and 10% in Turin’s Piedmont’s region,” Reuters reported.

After a merger, the combined entity’s market share will reach 20% in several economically crucial regions, such as Lombardy (24%), Veneto (21%), and Emilia-Romagna (21%), without creating dominance in any specific province, calculations by Italian broker Intermonte showed.

Both UniCredit and Banco BPM want to grow net fees and be more like Intesa, where fees exceed 40% of overall revenues thanks to its in-house insurance and asset management. UniCredit is bringing in-house its life insurance operations, something which Banco BPM has already done.

As per Orcel, cost savings from a deal with BPM could reach 900 million euros a year before taxes and 800 million after taxes, and would only minimally affect the branch network. Additional revenues are estimated at 300 million euros a year. The return on investment for UniCredit from a deal is expected to surpass 15%, with earnings per share increasing by a “high single-digit” percentage within a couple of years.

The post Banco BPM CEO Giuseppe Castagna boss warns of job losses in UniCredit deal appeared first on International Finance.

Boasting an extensive network of branches, offices and ATMs across Jordan and Palestine, alongside a regional presence in Cyprus, Jordan Ahli Bank supports its customers and communities, steering them toward a promising future. As the bank marked its 68th anniversary, it reinforced its pledge of unity with the declaration: “For 68 years, together, one Jordan Ahli Bank family” – forging strong relationships and promoting growth for generations to come.

“With a heritage rooted in trust and growth, our vision remains steadfast: to contribute to sustainable socioeconomic and environmental development. From our inception to date, we have been at the forefront of Jordan’s financial evolution, fostering innovation and offering services that shape a prosperous future for our customers and communities alike,” Jordan Ahli Bank shared with International Finance.

This vision transcends mere banking services; it embodies the creation of meaningful, long-lasting relationships. Through a unique blend of personalised offerings and advanced sustainable financial and non-financial solutions, Jordan Ahli Bank ensures that each customer feels valued as part of the ‘Ahli Bank Family’.

At its core, Jordan Ahli Bank is dedicated to reliability, confidence, warmth and forward-thinking. These qualities shape a culture that prioritises integrity, transparency and excellence. By placing customers at the heart of its mission, Jordan Ahli Bank embraces specialisation, creativity and innovation, continuously evolving its services and products not only to meet but also to anticipate the changing needs of its customers in today’s fast-paced financial landscape.

Pioneering Innovation And Digital Transformation

Jordan Ahli Bank has driven creativity and innovation to stay ahead in the financial industry. Its ‘Innovation Department’ is a key driver of long-term economic performance, focusing on agile, lean operations through the digital transformation of its financial products and services.

In an age of rapid disruption, this innovation culture ensures the bank remains competitive, personalised and adaptive. To this end, Jordan Ahli Bank has launched several internal and external initiatives that enhance its role as a fintech leader:

Qawn

At the forefront is Qawn, Jordan’s first-of-its-kind social payment app, with over 150,000 users. It allows a wide range of users to send and receive money securely through a built-in chat feature and integrates with CliQ, Jordan’s local payment switch, making it ideal for both retail and business sectors.

Qawn’s distinct offering positions it as a trailblazer in Jordan’s fintech arena, actively supporting the shift toward a cashless society. Through strategic partnerships, Qawn not only addresses the needs of a young, tech-savvy audience but also paves the way for sustained growth within the digital payments market. A key component of Jordan Ahli Bank’s digital transformation, Qawn reflects the bank’s dedication to providing innovative, customer-focused services that set new benchmarks for banking excellence.

Open Banking With Developer Portal

As part of its ongoing digital transformation, Jordan Ahli Bank has introduced a Developer Portal within Qawn, enabling open banking capabilities that foster a more integrated financial service environment and greater responsiveness to customer needs and preferences.

Ahli Future Programme

The Ahli Future Programme is another initiative designed to nurture the next generation of fintech talent in collaboration with Jordanian universities. The programme aims to bridge the skills gap and prepare computer science students and related majors for future opportunities within this dynamic industry.

AI-Driven Customer Service And Cloud-Based Solutions

Jordan Ahli Bank is also enhancing its customer service through AI-driven chat functionality for personalised, efficient interactions in both the Arabic and English languages. The bank is also transitioning to cloud-based solutions, streamlining its processes and moving toward a more sustainable, paperless model. This not only boosts operational efficiency but also aligns with the bank’s commitment to environmental sustainability by minimising its reliance on physical resources.

AHLI FINTECH

AHLI FINTECH, Jordan’s first fully bank-owned fintech company, incubates and accelerates early and seed-stage fintech startups with up to USD 200,000 in capital. With full licensing to create, co-create, license, sell and invest in fintech solutions, the company is pivotal in strengthening the fintech ecosystem and propelling Jordan as a regional hub for fintech innovation. With access to Jordan Ahli Bank customers, fintech resources, innovation experts and open-banking APIs, alongside participation in events, conferences, workshops and training sessions, startups can swiftly validate, deploy and scale their customer-facing solutions across Jordan and the MENA region.

Building A Sustainable Future

Jordan Ahli Bank’s vision of prosperity extends beyond financial success. It reflects a more comprehensive and integrated approach to sustainability, encompassing the well-being of the communities it serves. The bank’s efforts were recently recognised with the International Finance Award for ‘Best Environmental, Social and Governance (ESG) Strategy and Framework in the Banking Sector in Jordan for 2024,’ underscoring its leadership in driving positive change.

Through ESG initiatives focused on social responsibility, economic empowerment and environmental conservation, Jordan Ahli Bank is working to create a more equitable and resilient society. By adopting global governance best practices and creating value for all stakeholders, it ensures that its efforts are not only impactful today but also sustainable for future generations, reinforcing its commitment to holistic growth and shared prosperity.

“True prosperity is not measured in financial terms alone; it is about building sustainable communities where everyone has the opportunity to thrive for generations to come,” the bank emphasised.

Cultivating A Thriving Workforce

Jordan Ahli Bank’s mandate also extends to its employees. By cultivating an inclusive and innovative work environment, Jordan Ahli Bank empowers its employees to deliver exceptional service and push the boundaries of what’s possible in banking.

“Our culture of specialisation, integrity and continuous improvement drives our workforce and, in turn, the bank’s success,” the bank stated.

In all its endeavours, Jordan Ahli Bank continues to balance heritage with innovation, maintaining its standing as a trusted financial institution while embracing the future of banking. With its unwavering focus on customer satisfaction, digital transformation and sustainable growth, the bank is dedicated to shaping a future where prosperity is shared by all.

The post Jordan Ahli Bank’s vision: A future of shared prosperity appeared first on International Finance.

The fintech offers digital banking tools to assist SMEs with their finances, providing business bank accounts, payment processing solutions, expense tracking and invoicing. Qonto also provides real-time notifications, expense categorisation and multi-user access.

Defying The Fintech Downturn

Qonto’s goal is simple: to become an all-in-one platform that can manage all things finance, from paying and getting paid to overseeing expenses, cash flow and bookkeeping, dusting off the old banking experience in the process, while acting as the “power pack for small businesses.”

The venture, as of now, has 450,000 companies as its customers, a 30% increase compared to 2022. As per a Sifted report published in February 2024, Qonto’s turnover has been in the range of several hundreds of millions of euros.

“We’ve already significantly improved our margins in the last two years. Looking at our plans for 2025, we’re pretty confident that our costs will increase a little bit, our revenues will increase a lot, and we will reach profitability,” CEO and co-founder Alexandre Prot told Sifted.

With turnover increasing and its latest round of fundraising, Qonto has cash to spend and it will use the capital to jump on consolidation opportunities. The majority of Qonto’s revenue comes from monthly/annual fees paid by customers, for plans ranging from 9-299 euro per month, as well as commissions taken from every transaction made on Qonto accounts.

Qonto last posted its financial results for 2020, when the company was making a 27 million euro loss. Since then, the company has reportedly accumulated cash in the bank.

“We’ve raised a lot of money and we won’t need to raise again in the near term. What’s at stake now is to develop well in each of our markets [France, Germany, Italy, Spain]. In the current context where some companies are more open to being bought (…), we’ll grow organically but also potentially with one or two targeted acquisitions,” Alexandre Prot continued, as he added that those acquisitions would likely add to the range of services Qonto offers its customers, which currently include accounting and invoicing, on top of banking, and could increase the number of customers taking up premium subscription plans.

Qonto bought German competitor Penta in 2022 for an undisclosed sum, which enabled it to expand its footprint in the European country by taking over the start-up’s 50,000 customers.

The Services

Qonto helps aspiring entrepreneurs create their companies in a breeze. From choosing the company’s legal structure to depositing the share capital and registering the business, Qonto provides help at every step. The fintech has partners like Firma.de (company registration service in Germany, providing administrative and legal assistance to new businesses), Finutive (Spanish entity providing personalised financial planning solutions to companies) and LexDo.it (Italy-based online legal and accounting service).

Qonto also provides business account services tailored for freelancers. The service doesn’t entertain hidden fees, surprise charges and transfer commissions, thereby scoring high on the transparency front.

Bookkeeping and invoicing are the two activities which can massively exhaust self-employed individuals. Qonto takes care of it by automatically importing the supplier invoices to its digital platform from over 10,000 connected sources for greater visibility, just to ensure that the entrepreneur doesn’t miss payment deadlines.

Qonto also scans paper receipts and stores them online, helping its clients to pre-select the right VAT rates to save time on bookkeeping. Every receipt, VAT rate and transaction gets synchronised to the business’ accounting tool in real-time.

For micro-businesses, Qonto simplifies finance and accounting management activities by helping those business leaders save time on preparing expense reports. Through the fintech’s help, a micro-business owner can order Mastercard cards for his/her team members, instead of dealing with individual expense refunds. These cards also come with their own transaction limits, apart from helping businesses keep track of expenses on a real-time basis.

For SMEs, Qonto helps the latter to make sound financial decisions with up-to-the-minute transaction updates, along with always-accurate snapshots of the business’ financial health. The SMEs get to set budgets and configure payment limits for their teams, through “Smart Company Cards,” which come with personalised spending rules, up-to-the-minute budget overviews and multi-layer approval workflows for custom amounts. Qonto also assists these businesses in undertaking international transfers to more than 130 countries.

The SMEs can also conduct instant SEPA (Single Euro Payments Area) transfers of up to 50,000 euro and direct debits through a range of smart & reliable payment cards, with options for commission-free foreign purchases.

Qonto’s solutions for SMEs also include the automation of time-consuming financial tasks like issuing certified expense receipts, accelerating reconciliation, along with VAT and payment information detection. The fintech’s built-in invoicing feature helps businesses to get paid faster and save more time on issuing supplier invoices. And this service covers some 29 currencies.

Business Accounts, Cards And More

Qonto helps businesses open bank accounts with a French IBAN (International Bank Account Number) in 10 minutes (powered by Physical and virtual Mastercards), with features like SEPA instant and international transfers. As per the fintech, the business account service has won the trust of over 500,000 SMEs and freelancers.

The fintech’s “Invoice Management” is known for issuing invoices that are compliant with current French legislation, including rules around data protection and storage. The tool, which can be directly integrated with a business account, seamlessly manages the company’s finances excluding VAT.

“Invoice Management” generates and sends quotes and invoices in less than a minute, while automating the entire invoice and payment tracking process. The solution also helps businesses receive instant SEPA transfers, and real-time transaction notifications.

Qonto’s “Expense & Spend Management” tool is all about ensuring efficient finance management that lightens the daily workload of the business leaders. Through “Expense & Spend Management,” business leaders can delegate financial tasks to their teams; with multi-layered approval workflows to control spend in real time. The entrepreneurs can simplify things further by setting separate budgets and tracking the cash flow through dashboards. The tool, which comes with fully customisable payment card limits and cash transfers, also helps its users to export data automatically to their preferred business software to eradicate entry errors, while saving time.

Finally, when it comes to bookkeeping, Qonto helps businesses automate the tiresome and mundane processes like supplier invoice processing and data entry, accelerating the overall account reconciliation activities. The user can import his/her supplier invoices to Qonto from the computer, mailbox, Google Drive, and Dropbox, where they get automatically linked to the right transaction.

The Road Ahead

Qonto, which has set up its in-house card payment system, in collaboration with Mastercard, now faces a question: whether or not it should become a fully regulated bank, which would enable it to offer services like loans and open up a whole new stream of revenues.

Qonto has said that becoming a bank is not on the cards anytime soon. But some say the company will eventually have to consider it. The fintech recently hired brand-new CFO Anita Szarek.

While the move might hint towards the venture heading towards the IPO route, Szarek said, “We are well-funded and we have enough firepower to continue our growth as it is. An IPO could be an event at some point but that’s not the strategy.”

Apart from being profitable by 2026, Qonto wants to reach one million customers by 2025. The strategy is to increase revenue without indulging in cost-cutting measures. The venture plans to hire for “hundreds” of roles in the coming months, in addition to the company’s current 1,300-strong workforce, as well as making a “massive” investment in marketing.

In July 2024, the venture announced two new features to offer better business banking solutions to its customers. The first was a new strategic partnership with Wise Platform to enhance Qonto’s cross-border payment capabilities further. The second was the upcoming launch of the SEPA Direct Debit collection feature, which will enable Qonto customers to get paid on time and centralise all incoming payments in the app.

The post Start-up of the Week: Qonto defies Fintech downturn with record growth & new features appeared first on International Finance.

According to Huynh Trung Khanh, vice chair of the Vietnam Gold Traders Association (VGTA), the government and the association have been in lengthy negotiations regarding how to address the disparity between the supply and demand of gold.

In 2012, the Vietnamese government essentially assumed complete control over imports and domestic bullion sales, allowing only a few big businesses to import precious metal as long as it was used to make jewellery that would be exported.

“The government said they will start official gold imports by July or August. We hope that by July they will allow gold companies to import directly,” Khanh said on the sidelines of the Asia Pacific Precious Metals conference, as reported by the Zawya.

He stated that the State Bank of Vietnam, the country’s central bank, would have the last say over whether or not to permit businesses to import gold. That would be a major change from the way things are now done, where the central bank strictly regulates imports.

The domestic gold market continues to trade at persistently high premiums to global prices, despite efforts to reduce the difference with international benchmarks by holding auctions and permitting four local banks to sell gold in an effort to increase liquidity.

According to Vietnam Gold Traders Association, the country’s gold demand is expected to soar this year, so premiums on domestic prices must be immediately reduced. Among the top 10 consumers of gold is the Southeast United States.

Khanh in his presentation at the conference stated that during the first half of this year, gold purchases are expected to increase by 10% annually to 33 million metric tons.

In the roughly 100 million-person economy of Southeast Asia, retail buyers make up the majority of gold purchases. These buyers see gold as a means of protecting wealth and fending off economic uncertainty.

Meanwhile, talking about the Vietnam economy, Singapore-based United Overseas Bank (UOB) has projected the Southeast Asian country’s economic growth rate at 6% in Q2 2024 and for the entire year. The growth in Q1 2024 was 5.66% and is expected to be 6.4% in 2025.

The reason cited was a rise in demand for chips, the recovery of Chinese and regional economies and ongoing supply chain drifts. Inflation will be controlled at 3.8%, the bank noted further.

The manufacturing purchasing managers’ index (PMI) remained unchanged at 50.3 in May 2024, signalling a second consecutive marginal monthly improvement in business conditions in the industry.

Industrial production rose by 8.9% in May, marking the third consecutive month of growth. Exports, on the other hand, posted two-digit growth for the third consecutive month, at 15.8% in May, up from 10.6% in April. Imports rose by 29.9% in May from 19.9% in April.

The trade surplus was USD 7.8 billion in the first five months of 2024, while foreign direct investment rose by 7.8% to reach USD 8.3 billion during the period—the fastest pace since 2018.

The post Vietnam to allow companies to import gold for first time in years appeared first on International Finance.

According to economists, a President making policy decisions for the Federal Reserve would most likely result in higher inflation. The Fed would probably come under pressure from most presidents to maintain its benchmark interest rate lower than it otherwise would, increasing inflation.

James Bullard, a former president of the Federal Reserve Bank of St. Louis and member of the Fed’s policy committee from 2008 to 2023, said, “The data is quite clear that you’re going to get greater and more volatile inflation eventually if you give up an independent central bank.”

The “stagflation” era served as a warning, according to Sarah Binder, a political science professor at Georgetown University and an authority on how politicians affect the Fed. She added that presidents Richard Nixon and Lyndon Johnson put pressure on the Federal Reserve to cut interest rates, which contributed to the double-digit inflation and economic stagnation of the 1970s.

She told Investopedia, “The past of the 1970s demonstrates that such type of political pressure contributed to releasing inflation for nearly a decade. While it’s not a given that the Fed will submit to Trump’s demands, it does put the Fed in a very vulnerable political position.”

The independence of the Fed

The Federal Reserve is a unique branch of the American government since it is intended to be somewhat immune to political influence.

A series of bank failures led to the Fed’s establishment in 1913 to stabilize the financial system. Over time, the central bank’s authority increased. These days, its duties include overseeing banks and, most importantly, determining the monetary policy of the world’s largest democracy.

In 1977, Congress gave the Fed a twin mandate: maintain full employment in the economy while controlling inflation. It primarily accomplishes this by influencing the fed funds rate, which establishes the interest rate at which banks in the country lend money to one another. This affects interest rates on a wide range of other loans across the economy, including personal and corporate loans like mortgages.

A committee consisting of a rotating group of one-year regional bank presidents and presidential appointees with 14-year tenure decides whether to raise or cut interest rates.

The Federal Open Market Committee (FOMC) is freer than other federal agencies to function as technocrats and make decisions based on what they believe to be sensible economic policy rather than political considerations because the president can only appoint a small number of FOMC members during any given term in office—at least in theory.

The goal of the Fed’s detractors has always been to give the other arms of government more authority over the central bank. They frequently contend that because of the Fed’s independence, the public cannot hold it accountable, rendering its governance undemocratic. The Fed’s economists have also come under fire for being unelected bureaucrats and for being ineligible to decide on matters of economic policy.

Should Fed be politicised?

The Fed has gained a lot of attention due to its gradual hike in the fed funds rate, which it used to control inflation that had grown well beyond its objective of 2%. Currently, the benchmark rate range has been at a 23-year high of 5.25%–5.50% since July 2023.

Because of the restrictive monetary policy’s contribution to lower inflation, investors and consumers now have hope that interest rate reductions are imminent. But before loosening policy, Fed policymakers have stated that they need further assurance that pricing pressures are under control.

Economists caution that a Fed under the president’s direction is more likely to allow inflation to spiral out of control.

According to Victor Li, a Villanova economics professor, presidents have every right to encourage the Fed to cut interest rates and have done so in the past, in part because election cycles force them to look short-term.

A president should be proud of the fact that the economy grows, the Fed lowers interest rates, loans become more affordable, consumers borrow more money to purchase more goods, businesses hire more workers, and the economy expands.

The inevitable hangover, however, sets in when business owners discover that their more affluent clientele can afford to pay greater rates, so they do. Even worse, economists have shown that because inflation is partially a psychological phenomenon, public perceptions of it can become self-fulfilling.

Li stated, “Inflation is a lagging indicator.” But when it does, it can quickly get out of hand and turn into hyperinflation if inflation expectations are no longer grounded. This is history’s lesson, and if it is not grasped, it will inevitably be repeated.

Li and other economists cited Richard Nixon as an example, who pushed Fed Chair Arthur Burns to maintain low interest rates in the run-up to the 1972 election. Burns cooperated even though he was a well-respected economist and ought to have known better. This contributed to the country’s 1970s double-digit inflationary wave.

How much should Fed be influenced?

In their book “The Myth of Independence: How Congress Governs the Federal Reserve,” Binder and colleague researcher Mark Spindel from Georgetown University noted that Fed officials do take the public’s opinion, political opinion, and financial markets into account when making decisions. Transcripts of FOMC sessions made available to the public five years later, reflect their worries.

Congressmen in Congress, to whom Fed officials are answerable, often pressure them to adjust interest rates during open hearings. But even if Congress has changed the Fed throughout the years, the FOMC still has the last word on monetary policy.

Bullard, the former president of the St. Louis Fed, stated that “if it came right down to it, the Congress could do whatever it wants with monetary policy, so in that sense, it is political.”

However, after considering this for the past 100 years, Congress chose to keep it apart from the daily ups and downs in politics.

The public’s perception that the Fed will maintain inflation at its long-term target of 2% is a major factor in the Fed’s capacity to control inflation. A president’s obvious thumbs-up on the scales may jeopardise that.

According to Binder, “the Fed’s difficulty is its legitimacy and credibility. All of this boils down to the public’s trust that the Fed is capable and will carry out its tasks methodically, that it won’t just flap in the wind, blown about by rival political parties or beliefs.”

Binder is also concerned that the Fed would overreact in the other direction, maintaining excessively high interest rates in an attempt to maintain its credibility, which would needlessly hurt the economy by making money too scarce.

Stories from across the globe

Chief economist at Pantheon Macroeconomics, Ian Sheperdson, cited Britain as an example, where the elected government controlled the central bank until 1997. The Bank of England underwent a more independent reform to its leadership structure that same year. Coincidentally, that year saw Britain’s inflation, which had historically been several percentage points higher than that of the United States and Germany, drop to par with its counterparts in the economy.

The International Monetary Fund, the UN’s financial arm, conducted a study of 17 Latin American countries in 2022 and discovered that those with more independent central banks often had lower inflation rates.

Another striking illustration of the connection between politics and inflation comes from Turkey. Tayyip Erdogan, the authoritarian leader, experimented with an unconventional economic theory: that cutting interest rates would lower inflation. Rather, the rate of inflation reached 85.5% in 2023 before the central bank started to implement a more conventional strategy and increased interest rates.

Congress would ultimately decide whether to alter the Fed’s organisational structure. Bullard stated that, based on his discussions with lawmakers, he believes there is a minimal probability of that occurring.

Bullard stated that in casual discussion, “Even folks that you think could be kind of more extreme, either on the left or the right, they’re quite supportive. I didn’t get the impression that they were considering fundamentally altering the Fed’s structure.”

The post What if Fed loses its autonomy? appeared first on International Finance.