VAULT GUIDE TO THETOP 25 ASIA PACIFIC BANKING EMPLOYERS 2010 EDITION Sponsored by: Customized for: vinh (
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[email protected]) ® 2010 Edition VAULT GUIDE TO THE TOP 25 ASIA PACIFIC BANKING EMPLOYERS DEREK LOOSVELT AND THE STAFF AT VAULT Customized for: vinh (
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[email protected]) v Table of Contents A Guide to this Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 OVERVIEW OF THE BANKING INDUSTRY 3 Investment Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Commercial Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 State of the Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 THE VAULT PRESTIGE RANKINGS 9 Ranking Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 The Vault 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 TOP 25 ASIA PACIFIC BANKING EMPLOYERS 2. J.P. Morgan Investment Bank 13 1. The Goldman Sachs Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 3. Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 4. Deutsche Bank AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 5. The Blackstone Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 6. HSBC Holdings plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 7. Credit Suisse Group AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 8. UBS Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 9. Citi Insitutional Clients Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 10. Barclays Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 11. Standard Chartered Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 12. Macquarie Group Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80 13. Nomura Holdings, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 14. Bank of America Merrill Lynch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 15. BNP Paribas SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98 16. Citigroup, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 17. Société Générale SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 18. Rothschild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116 Customized for: vinh (
[email protected]) 19. ING Groep N.V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120 20. DBS Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124 21. CLSA Asia-Pacific Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129 22. The Royal Bank of Scotland plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 23. Mitsubishi UFJ Financial Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138 24. Bank of China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141 25. Australia and New Zealand Banking Group Limited (ANZ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 vii Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Table of Contents THE BEST OF THE REST 151 Agricultural Bank of China Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 The Bank of East Asia, Limited (BEA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157 Bank of Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161 Bendigo and Adelaide Bank Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 BOC International Holdings Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168 China Construction Bank Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172 China Galaxy Securities Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175 China International Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178 China Merchants Securities Co., Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182 CIBC World Markets Inc. (CIBC’s Wholesale Banking Division) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185 CIMB Group Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189 CITIC Securities Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193 Commonwealth Bank Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196 Daiwa Securities Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201 GF Securities (Guangfa Securities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204 Guotai Junan Securities Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207 Haitong Securities Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210 Hana Financial Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213 Hang Seng Bank (china) Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218 HDFC Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221 Hyundai Securities Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .224 ICICI Bank Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226 Industrial and Commercial Bank of China Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229 Korea Development Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .232 Kotak Mahindra Capital Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235 Metropolitan Bank and Trust Company (Metrobank) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238 Mizuho Financial Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243 National Australia Bank Limited (NAB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246 Customized for: vinh (
[email protected]) OCBC Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250 Ping An Securities Company Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253 RBC Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256 Samsung Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259 Shanghai CFETS-ICAP International Money Broking Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262 Shinhan Financial Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265 State Bank of India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .268 viii © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Table of Contents Sumitomo Mitsui Banking Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .271 Sun Hung Kai Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273 Taifook Securities Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276 United Overseas Bank Limited Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .278 The Westpac Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281 Woori Financial Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286 About the Editor ..................................................................................................................................289 Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. ix A Guide to this Guide All of our profiles follow the same basic format. Here’s a guide to each entry. FIRM FACTS Departments: The firm’s major divisions. The Stats: Basic information about the firm, usually information that’s available to the general public. This includes the firm’s leadership (generally, the person responsible for day-to-day operations, though it can include the chairman and relevant department heads), employer type (e.g., public, private or subsidiary), ticker symbol and exchange (if public), 2008 or 2009 revenue and net income (usually only for public companies; we do have some estimates from third-party sources for private companies and, in some cases, the firm has confirmed that information), number of employees and number of offices. Key Competitors: The firm’s main business rivals. Size, business lines, geography and reputation are taken into account when evaluating rivals. Uppers and Downers: The best and worst things, respectively, about working at the firm. Uppers and downers are taken from the opinions of insiders based on our surveys and interviews. Employment Contact: The person (or people) that the firm identifies as its contact(s) for submitting resumes or employment inquiries. We’ve supplied as much information as possible, including names, titles, mailing addresses, phone or fax numbers, email addresses and websites. As companies process resumes differently, the amount of information may vary. For example, some firms ask that all employment-related inquiries be sent to a central processing office, while other firms mandate that all job applications be submitted through the company website. THE PROFILES Most profiles are divided into three sections: The Scoop, Getting Hired and Our Survey Says (some profiles have only Scoop and Getting Hired sections). The Scoop: The company’s history, a description of the business, recent clients or deals and other significant developments. Getting Hired: An overview of the company’s hiring process, including a description of campus recruiting procedures, the number of interviews, questions asked and other tips on getting hired. Our Survey Says: Quotes from surveys and interviews done with employees or recent employees at the company. This includes information on culture, pay, hours, training, diversity, offices, dress code and other important company insights. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 1 OVERVIEW OF THE BANKING INDUSTRY Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Customized for: vinh (
[email protected]) Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Overview of the Banking Industry Investment Banking Investment banking is the business of raising money for companies. Companies need capital to grow their business; they turn to investment banks to sell securities to investors—either public or private—to raise this capital. These securities come in the form of stocks or bonds. Generally, an investment bank comprises the following areas: CORPORATE FINANCE The bread and butter of a traditional investment bank, corporate finance generally performs two different functions: 1) mergers and acquisitions advisory, and 2) underwriting. On the mergers and acquisitions (M&A) advising side of corporate finance, bankers assist in negotiating and structuring a merger between two companies. If, for example, a company wants to buy another firm, then an investment bank will help finalize the purchase price, structure the deal and generally ensure a smooth transaction. The underwriting function within corporate finance involves raising capital for a client. In the investment banking world, capital can be raised by selling either stocks or bonds to investors. SALES Sales is another core component of an investment bank. Salespeople take the form of: 1) the classic retail broker, 2) the institutional salesperson, or 3) the private client service representative. Brokers develop relationships with individual investors, and sell stocks and stock advice to the average Joe. Institutional salespeople develop business relationships with large institutional investors—those who manage large groups of assets, like pension funds or mutual funds. Private client service (PCS) representatives, often referred to as private wealth managers, lie somewhere between retail brokers and institutional salespeople providing brokerage and money management services for extremely wealthy individuals. Salespeople make money through commissions on trades made through their firms. TRADING Traders also provide a vital role for the investment bank. Traders facilitate the buying and selling of stock, bonds or other securities, either by carrying an inventory of securities for sale or by executing a given trade for a client. Traders deal with transactions, large and small, and provide liquidity (the ability to buy and sell securities) for the market—often called making a market. Traders make money by purchasing securities and selling them at a slightly higher price. This price differential is called the “bid-ask spread.” RESEARCH Research analysts follow stocks and bonds and make recommendations on whether to buy, sell or hold those securities. Stock analysts (known as equity analysts) typically focus on one industry and will cover up to 20 companies’ stocks at any given time. Some research analysts work on the fixedincome side and will cover a particular segment, such as high-yield bonds or U.S. Treasury bonds. Salespeople within the investment bank utilize research published by analysts to convince their clients to buy or sell securities through their firm. Corporate finance bankers rely on research analysts to be experts in the industry in which they are working. Reputable research analysts can generate substantial corporate finance business and substantial trading activity, and thus are an integral part of any investment bank. SYNDICATE Customized for: vinh (
[email protected]) The hub of the investment banking wheel, syndicate provides a vital link between salespeople and corporate finance. Syndicate exists to facilitate the placing of securities in a public offering, a knock-down-drag-out affair between and among buyers of offerings and the investment banks managing the process. In a corporate or municipal debt deal, syndicate also determines the allocation of bonds. 4 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Overview of the Banking Industry Commercial Banking Commercial banks, unlike investment banks, generally act as lenders, putting forth their own money to support businesses as opposed to investment advisors who rely on other folks—buyers of stocks and bonds—to pony up cash. This distinction has led to noticeable cultural differences (exaggerated by stereotype) between commercial and investment bankers. Commercial bankers (deservedly or not) have a reputation for being less aggressive, more risk-averse and simply not as “mean” as investment bankers. Commercial bankers also don’t command the eye-popping salaries and prestige that investment bankers receive. There is a basis for the stereotype. Commercial banks carefully screen borrowers because the banks are investing huge sums of their own money in companies that must remain healthy enough to make regular loan payments for decades. Investment bankers, on the other hand, can make their fortunes in one day by skimming off some of the money raised in a stock offering or invested into an acquisition. While a borrower’s subsequent business decline can damage a commercial bank’s bottom line, a stock that plummets after an offering has no effect on the investment bank that managed its IPO. THE LENDING TRAIN The typical commercial banking process is fairly straightforward. The lending cycle starts with consumers depositing savings or businesses depositing sales proceeds at the bank. The bank, in turn, puts aside a relatively small portion of the money for withdrawals and to pay for possible loan defaults. The bank then loans the rest of the money to companies in need of capital to pay for, say, a new factory or an overseas venture. A commercial bank’s customers can range from the dry cleaner on the corner to a multinational conglomerate. For very large clients, several commercial banks may band together to issue “syndicated loans” of truly staggering sizes. MAKING MONEY BY MOVING MONEY Take a moment to consider how a bank makes its money. Commercial banks earn 5 to 14 percent interest on most of their loans. As commercial banks typically only pay depositors 1 percent—if anything—on checking accounts and 2 to 3 percent on savings accounts, they make a tremendous amount of money in the difference between the cost of their funds (1 percent for checking account deposits) and the return on the funds they loan (5 to 14 percent). Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 5 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Overview of the Banking Industry State of the Industry THE AGE OF THE BAILOUT When the world of finance was rocked by billion-dollar write-downs, mass layoffs, declarations of bankruptcy, rumors of nationalization of the world’s biggest banks and grim-faced government officials unveiling plans to bail out financial institutions, experts from New York to Tokyo turned to each another and asked, “What just happened?” We’ll be parsing the events of 2007, 2008 and 2009 for decades to come; the scope of the crisis fallout—and blame—is still being assessed. For now, we know that the banking landscape has been permanently changed. In a nutshell, here’s what happened. The United States housing market, which had risen steadily through 1990s, finally began to slow down. At the same time, mortgage lenders were making increasingly risky loans—approving mortgages for “subprime” customers who were at high risk of defaulting. (Later, the world heard horror stories about unemployed people being approved for expensive home loans, despite having no real proof of income.) Meanwhile, banks had figured out ways to securitize home loans and the risks involved with them, packaging and slicing these new securities into arcane derivatives. These derivatives wound their way through the world’s financial system, piling up in banks’ balance sheets. This created a ticking time bomb: as people began defaulting on their mortgage payments, these assets’ values evaporated, leading to massive write-downs and losses. In fall 2008, the world’s investment banks were in a state of panic, fearing for their own—and others’—safety. Things that looked like assets on paper proved worthless. Because of the way credit risk was spread through the system, banks began freezing lines of credit to other banks and consumers: no one knew for sure who was liquid and who was on the verge of collapse. The credit crunch slammed the brakes on an already-slowing economy, and banks, mortgage lenders, insurers and public companies scrambled to avoid bankruptcy. Some were successful; some were not. It’s unsurprising, then, that banking revenue has been less than stellar lately. Banks’ earnings soared through 2005, 2006 and the first half of 2007. Then came the downswing. Earnings plummeted, banks went bankrupt or were sold, and thousands of professionals were laid off. U.S. and European banks were hardest-hit by the global recession, but those in Asia, the Middle East and Africa were also severely affected. GIANTS FALL Perhaps the most lasting legacy of the financial crisis will be its impact on banking’s biggest players. New York-based Bear Stearns was the first to collapse, and the U.S. government helped engineer a sale of Bear to fellow American bank JPMorgan Chase in March 2008. Lehman Brothers, another global bank headquartered in New York, toppled into bankruptcy in September 2008, and was sold in pieces to Japan’s Nomura Securities, which now owns Lehman’s European and Asia Pacific businesses, and to the U.K.’s Barclays, which took over Lehman’s North American operations. (The U.S. government’s refusal to step in for Lehman, as it had for Bear, remains a source of anger and bewilderment for its former employees.) Also during September 2008, after 94 years in business as an independent investment bank, Merrill Lynch (part of the so-called bulge bracket) admitted defeat and agreed to be sold to Bank of America. That left Goldman Sachs and Morgan Stanley as the last independent bulge bracket banks on Wall Street. But even they succumbed. In late September 2008, both banks received permission from U.S. regulators to convert themselves into bank holding companies, a restructuring move that allowed them to receive government assistance—but also left them bound by strict regulations and rules regarding leverage and risk-taking. This raised an important point: in the U.S. and in the U.K., banks that took government assistance (“bailout funds”) faced the imposition of new operating requirements. In other words, the government poured billions into its banks and thus wanted a say in how they’re run, especially in light of the fact that many industry observers blamed loosely regulated derivatives trading for fueling the crisis. Later, some Asian banks were forced to take government bailouts as well. Will banks—or the banks that acquired them—ever go back to their unfettered ways? Perhaps. In some cases, banks will be able to win back some freedom if they can repay their bailout allotments (many of them have already repaid). But the bottom line is the days of high-flying, overleveraged risk-taking are over, at least in the near term. International and local regulators, politicians and taxpayers are watching banks like hawks, keeping an eye on everything from executive compensation to the state of their balance sheets. Customized for: vinh (
[email protected]) THE OLD-FASHIONED MERGER In June 2009, Morgan Stanley combined its global wealth management group with three Citigroup businesses: U.K.-based Quilter, Smith Barney Australia and Citi Smith Barney. Operating under the name Morgan Stanley Smith Barney, the joint venture is comprised of 18,500 financial advisors in 1,000 offices worldwide, with more than $1.3 trillion in client assets. In effect, Citi sold a 51 percent majority stake in the joint venture to Morgan 6 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Overview of the Banking Industry Stanley for $2.7 billion. Upon the closing of the deal, it was reported that Morgan Stanley was expected to acquire full control in various phases over the next five years. Currently, Morgan Stanley CEO James Gorman serves as chairman of the new company. BREAKING GROUND In one of the most significant ground breakings of 2009, Robert Morse, the ex-chief executive of Citigroup’s Asia investment banking business, raised $1 billion to start to his own Hong Kong-headquartered bank called Primus Financial Holdings. Morse, who’s partnering with two other ex-Citi bankers, plans to focus on the Asia market but will also do business in Europe and the U.S., likely making acquisitions of divisions of established firms along the way. In an interview with Reuters, Morse cited the trend of executives moving from big firms to smaller ones as a reason for Primus’ founding, saying that “a lot” of bankers have become “unsatisfied with where their institutions are or where their jobs are going … so the availability of talent is very high.” Morse also pointed out that the big Citi and other large banks aren’t exactly afraid of small firms like Primus making too large of a dent in its business. BANKERS VS. TRADERS Investment banks have long contained two cultures: traders and corporate finance advisers. It was the latter who traditionally became firms’ chief executives and chairmen. The lines have blurred, however, as former traders have risen in prominence at their respective firms. (Some corporate financiers have responded by heading out on their own to start boutique advisory firms.) Among the traders who worked their way to the top: Goldman Sachs CEO Lloyd Blankfein, a former commodities trader; Huw Jenkins, who led UBS until stepping down in 2007 after massive losses at the investment bank; and Oswald Grubel, a former floor trader who served as CEO of Credit Suisse until taking over for Jenkins at UBS. Speaking of losses, traditional trading at investment banks consisted of dealing in equities, bonds and basic financial derivatives for currency and interest rate products. That changed when banks began inventing new kinds of derivatives, an effort to wring more return from, well, just about anything. New types of derivatives allow banks to trade contracts based on future energy prices, complicated bundles of currency prices, even the odds of another company defaulting on its debt. What’s more, investment banks and brokerage firms used to act only as agents: they bought and sold securities on behalf of their clients. Now they’re just as likely to be principals in trades, using firm assets to make their own bets. When they get it right, traders have reaped big rewards for their employers. When they get it wrong, as the world discovered in 2007 and 2008, the losses can be devastating. Compounding these issues is the fact that trading activity has increased as a proportion of investment banking revenue, and brokerage services have expanded at many banks. The growth of hedge funds drove banks to build prime brokerage units, which offer dedicated financing, securities lending, clearing, custody and advisory services to major investors and hedge funds (though the hedge fund industry took a sever hit in 2008, it was back on track by mid-2009 as many of the major hedge funds showed solid earnings for the first six months of the year). M&A BOOM AND BUST Mergers and acquisitions advisory was, for most of the late 1990s and early 2000s, a leading source of revenue for the global investment banking industry. In 2000, the world’s volume of M&A activity totaled almost $3.5 trillion; business dipped in 2001, and in 2002, deal volume was down to $1.2 trillion worldwide. Things picked up in 2004 as a strong global economy, low interest rates and thriving stock prices raised confidence and spurred dealmaking. Global M&A activity was up to $2.7 trillion by 2005, and deals kept going through 2006, peaking in mid-2007. A notable feature of the mid-2000s M&A boom was the major part played by financial purchasers, including some multibillion-dollar deals. Private equity groups, which were raising ever-larger funds, were buyers on an unprecedented scale. Some of the major investment banks played a significant role in this development. Management buyouts were also a thriving contributor. Customized for: vinh (
[email protected]) The global recession that nearly destroyed banks in 2008 took a big toll on mergers and acquisitions. Without access to cheap, plentiful credit, potential buyers were less likely to buy. Embattled companies made less-attractive targets. And in a climate of no confidence, few CEOs wanted to take on any unnecessary risk. As a result, banks’ M&A revenue dwindled. The top of the league tables, though, looked much the same as they did in years past— but there was some movement at the very top of the charts. According to Thomson Reuters, Morgan Stanley was the top worldwide merger and acquisition advisory for 2009, working on announced deals worth US$624.3 billion (up 11 percent versus 2008). Morgan Stanley leaped from fifth place to take the No. 1 spot away from perennial top advisor Goldman Sachs. Goldman had to settle for second place, working on US$594.2 billion in deals (down about 30 percent versus 2008). J.P. Morgan, Citi and Credit Suisse rounded out the top five, respectively. Morgan Stanley also ranked No. 1 in announced M&A deals in Asia (excluding Japan), working Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 7 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Overview of the Banking Industry on $36.4 billion worth of deals. Credit Suisse placed No. 2, with US$22.8 billion in deal volume and UBS took the No. 3 spot, working on $22.6 billion in deals. Goldman and J.P. Morgan took the fourth and fifth spots, respectively. The global debt, equity and equity-related tables had a different leader, as J.P. Morgan ranked No. 1 in overall underwriting volume, with Barclays Capital and Bank of America Merrill Lynch taking the second and third places, respectively. Citi ranked No. 4 and Deutsche Bank ranked No. 5. J.P. Morgan worked on 1,702 deals during 2009 worth a total of US$614.7 billion. In the Asian (excluding Japan) equity capital markets, UBS was the top bookrunner, working on 61 equity-underwriting deals worth US$15.4 billion. Morgan Stanley placed second and China International Capital took third place. In the Asian debt capital markets, Deutsche Bank was the big winner, ranking No. 1 in Asian G3 currency bond underwriting. Deutsche Bank underwrote 36 bond deals worth a total of US$9.5 billion, jumping from No. 2 in 2008 when HSBC was the lead currency bond underwriter in Asia. Customized for: vinh (
[email protected]) 8 © 2009 Vault.com Inc. PRESTIGE RANKINGS Ranking Metholodogy The Vault 25 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Customized for: vinh (
[email protected]) Ranking Methodology The Vault Guide to the Top 25 Asia Pacific Banking Employers rates 66 firms with significant commercial banking or investment banking operations in the Asia Pacific region. We chose these 66 firms based on previous Vault surveys that gauged opinions of industry insiders, as well as on various factual data, including annual revenue and number of employees. The firms we identified were all asked to distribute Vault’s 2009 Banking Survey to their banking professionals. The online survey consisted of questions about life at the professionals’ firm or former firm, along with a prestige rating. Survey participants were asked to comment on qualifications the firm looks for in new employees, specific tips on getting hired, questions asked during the interview process, firm culture, hours worked, relations with managers, compensation, diversity, training and more. Participants were also asked to rate companies with which they were familiar on a scale of 1 to 10, with 10 being the most prestigious. Participants were not allowed to rate their own employer. Vault averaged the prestige scores for each firm and ranked them in order. Eight firms—Barclays, Citigroup, Citi Institutional Clients Group, Commonwealth Bank Group, Goldman Sachs, J.P. Morgan Investment Bank, Nomura Holdings and Standard Chartered Bank—agreed to distribute the survey. All surveys were completely anonymous. For those companies that opted not to distribute the survey, Vault sought contacts at the firm to take the survey through other proprietary sources. Those professionals took the same survey as the employees at firms that participated. A total of 441 banking professionals filled out Vault's 2009 Banking Survey in the summer 2009. Vault averaged the prestige scores for each firm and ranked them in order, with the highest average score belonging to our No. 1 firm, Goldman Sachs. With a score of 7.836, the New York-based firm beat out fellow New Yorker J.P. Morgan Investment Bank, which scored 7.595. Morgan Stanley placed third (with a score of 7.401), Deutsche Bank ranked fourth (7.067) and Blackstone came in fifth (6.905). Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 11 TOP 25 ASIA PACIFIC BANKING EMPLOYERS The Vault 25 [The 25 Most Prestigious Asia Pacific Banking Employers] • 2010 FIRM The Goldman Sachs Group, Inc. J.P. Morgan Investment Bank Morgan Stanley Deutsche Bank AG The Blackstone Group HSBC Holdings plc Credit Suisse Group AG UBS Investment Bank Citi Insitutional Clients Group Barclays Capital Standard Chartered Bank Macquarie Group Limited Nomura Holdings, Inc. Bank of America Merrill Lynch BNP Paribas SA Citigroup, Inc. Société Générale SA Rothschild ING Groep N.V. DBS Bank Ltd. CLSA Asia-Pacific Markets The Royal Bank of Scotland plc Mitsubishi UFJ Financial Group, Inc. Bank of China ANZ* SCORE 7.836 7.595 7.401 7.069 6.905 6.788 6.748 6.712 6.650 6.580 6.449 6.245 5.978 5.887 5.850 5.782 5.524 5.478 5.352 5.323 5.025 5.022 5.000 4.980 4.865 * Australia and New Zealand Banking Group Limited (ANZ) RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Customized for: vinh (
[email protected]) 21 22 23 24 25 12 © 2009 Vault.com, Inc. TOP 25 ASIA PACIFIC BANKING EMPLOYERS Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Customized for: vinh (
[email protected]) PRESTIGE RANKING 1 THE GOLDMAN SACHS GROUP, INC. KEY COMPETITORS J.P. Morgan Morgan Stanley UBS Regional Headquarters Cheung Kong Center, 68th Floor 2 Queens Road Central Central, Hong Kong Phone: +852 2978 1000 www.gs.com PLUSES LOCATIONS IN ASIA PACIFIC (EXCLUDING JAPAN) Bangalore • Beijing • Hong Kong • Mumbai • Seoul • Shanghai • Singapore • Taipei • “Great responsibilities and fast growing firm” • “Great brand name” • “Strong and friendly corporate culture” BUSINESSES Corporate Finance • Investment Management • Investment Research • Private Equity / Principal Investing • Securities (Equities/Fixed Income) MINUSES • Expectations are high • “Very low promotion opportunity” • “Working under extreme pressure with tight deadlines” THE STATS Employer Type: Public Company Ticker Symbol: GS (NYSE) Chairman & CEO: Lloyd C. Blankfein Revenue: US$45.17 billion (FYE 12/09) Net Income: US$12.2 billion No. of Employees: 30,067 No. of Employees in Asia (excluding Japan): Approximately 1,800 No. of Offices: 40 No. of Offices in Asia (excluding Japan): 8 EMPLOYMENT CONTACT www.gs.com/careers Customized for: vinh (
[email protected]) 15 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Goldman Sachs Group, Inc. THE SCOOP A force to be reckoned with Headquartered in New York, Goldman Sachs is one of the world's preeminent investment banks, with major offices in London, Frankfurt, Tokyo and Hong Kong. Goldman Sachs in Asia (excluding Japan) has its headquarters in Hong Kong, and seven additional offices in Beijing, Mumbai, Bangalore, Singapore, Taipei, Seoul and Shanghai. The firm's operations include approximately 1,800 employees working in the firm's key Asian businesses: corporate finance, private equity and principal investing, fixed income, currency and commodities, equities, investment research and investment management. Goldman Sachs is a constant presence at the top of the most important international banking league tables. Eight offices, lots of clients Goldman Sachs was one of the first American investment banks to establish itself in Asia. Goldman Sachs opened its Japanese office in Tokyo in 1974. Its office in Hong Kong opened in 1984 and remains the regional headquarters of Goldman Sachs in Asia excluding Japan. Singapore was Goldman Sachs' third Asian office, opening in 1989. The office serves as a hub for Goldman's operations throughout the ASEAN (Association of Southeast Asian Nations) region. In 1992, Goldman Sachs opened a representative office in Taipei, which graduated to a branch office in 2000. Corporate finance, securities and global investment research are the key business areas in Taipei. In Taiwan, Goldman Sachs is a leading foreign investment bank; there, it serves a number of clients in industries such as banking, telecommunications and manufacturing. Goldman Sachs arrived in Korea in 1993 when it opened a representative office in Seoul (this became a full-fledged branch in 1998). In June 2006, Goldman Sachs was granted a Korean banking license, which allows the firm to provide foreign exchange, interest rate and related products to its Korean clients. Beijing and Shanghai have been home to Goldman Sachs offices since 1994, and the firm quickly built an investment banking franchise throughout China, working with both companies and the Chinese government. It was the first foreign investment bank to obtain a license to trade China B shares on the Shanghai Stock Exchange and was one of the first Qualified Foreign Institutional Investors (QFII) in China. Goldman Sachs offers investment banking services to domestic mainland China clients through Goldman Sachs Gao Hua Securities Company Ltd., a joint venture with Beijing Gao Hua Securities, a local securities firm that Goldman helped to establish in 2004. Goldman Sachs Gao Hua currently underwrites locally listed A-shares and corporate and convertible bonds; it also offers domestic financial advisory services. Finding a foreign partner In 2006, Goldman Sachs signed a strategic cooperation agreement with the Industrial & Commercial Bank of China (ICBC), China's largest bank, which included a US$2.6 billion investment. In April 2007, Goldman Sachs closed its GS Capital Partners VI fund with US$20 billion in committed capital, US$11 billion from qualified institutional and high-net-worth clients and US$9 billion from the firm and its employees. This was the firm's sixth global, diversified fund dedicated to making privately negotiated equity investments. The fund, which was the largest ever raised for private equity by a Wall Street firm, will invest across a broad range of industries in Asia, Europe and the U.S. End of an era With the collapse of Lehman Brothers in September 2008 and seeing its profits in the third quarter down by 70 per cent on their 2007 figures, Goldman Sachs received Federal approval to transform from an investment bank into a bank holding company. This made it the fourth-largest bank holding company in the U.S. and took it under the supervision of the Federal Reserve for the first time. The move saw the end of the traditional investment bank on Wall Street and paved the way for the New York firm to build on its deposit base through acquisitions, allowing it to rely more heavily on the deposits from retail customers instead of using money borrowed on the bond market. As part of the U.S. Treasury Department’s $700 billion bailout package for struggling financial institutions, the bank received US$10 billion in aid in October 2008. Commenting on the move, Goldman Sachs Chairman and CEO Lloyd Blankfein said, “Goldman Sachs, under Federal Reserve supervision, will be regarded as an even more secure institution with an exceptionally clean balance sheet and a greater diversity of funding sources.” Customized for: vinh (
[email protected]) 16 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Goldman Sachs Group, Inc. IN THE NEWS October 2009: Beating expectations Goldman Sachs beat analysts’ predictions for its fiscal third quarter, booking US$3.19 billion in profit (US$5.25 a share), a nice rise versus the US$845 million it booked for the same period a year earlier. Revenue, meanwhile, jumped to US$12.37 billion from US$6.04 billion in the third quarter of 2008. Analysts had predicted US$4.24 a share on revenue of US$11 billion. The investment bank, which benefited from trading gains and other investments, also reserved US$5.35 billion for employee compensation and benefits. Goldman did brisk business in its fixed income, currency and commodities trading division, with revenue climbing to US$5.99 billion from US$1.6 billion in the third quarter of 2008. July 2009: Asia rising Proving that things were definitely back on the up, Goldman Sachs started to add staff to its equity research team in Japan. As it looked to increase its equity and sales operations in the Asia Pacific region following a 10 percent reduction towards the end of 2008, the firm hired Teruhiko Nishimura, a former Credit Suisse Group AG analyst to cover metals, oil and commodities in Japan. This was Goldman Sachs' first addition to senior research staff in more than 18 months. Stan Lee from Citigroup also joined the bank as a non-bank sector analyst in South Korea. Goldman claimed it was looking to add more analysts in Asia to cover the pharmaceutical industry in Japan as well as the chemical and construction industries in South Korea. July 2009: A golden sign? Far surpassing analysts’ predictions, Goldman Sachs posted income of US$3.44 billion for the second quarter, up from US$2.09 billion in the same period of the previous year. The firm’s net revenue also rose significantly, growing 46 percent to US$13.76 billion. Goldman’s fixed income, currency and commodities trading division was largely to thank for the boost—the unit’s revenue increased more than 50 percent to US$6.8 billion. July 2009: Greed is good Goldman Sachs hit headlines in July 2009 as New York’s Attorney General Andrew Cuomo reported that the bank paid out US$4.8 billion in bonuses, while receiving US$10 billion in rescue funding from the U.S. government. According to the 22-page report, bonuses at Goldman Sachs averaged US$160,420 for its 30,067 employees, including 212 receiving more than US$3 million and 391 receiving more than $2 million. By July 2009, the firm had already put aside US$11.3 billion for 2009 compensation, or 49 percent of its net revenue, meaning that the era of big bonuses was far from over. Many industry observers saw this as a strategic offensive measure by Goldman, looking not only to keep its own employees happy but to attract the brightest and best from elsewhere, and so heaping the pressure on its competitors. July 2009: Freed from the chains Goldman Sachs received permission to repurchase 10 million shares the U.S. Treasury bought from the company under its Troubled Asset Relief Program, and repaid the US$10 billion it received from the program. Along with Goldman, nine other firms were given the go ahead to return a collective US$68.3 billion to the U.S. Treasury, more than the original estimate of US$25 billion in funds expected to be returned in 2009. Customized for: vinh (
[email protected]) As part of the process of raising the funds to pay off the government, Goldman Sachs raised US$1.9 billion by selling shares in Industrial and Commercial Bank of China. The bank had been keen to remove itself from what it saw as meddling governmental influence over multi-million dollar bonuses to staff. February 2009: President steps down Goldman Sachs announced that Jon Winkelried, the firm's co-president and co-chief operating officer, would be retiring from the firm at the end of March 2009. Winkelried, who won't accept severance after stepping down, first joined Goldman in 1982 and helped conduct much of the firm's recent wave of job cuts. Taking over Winkelried's duties was co-COO Gary Cohn (who will continue to assume his current duties as well). According to a Dow Jones report citing insiders, Winkelried's retirement was tied to his understanding that he was "not in the pole Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 17 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Goldman Sachs Group, Inc. position" to ultimately become CEO of the company. Insiders said Cohn had the inside track to become CEO, if the post were to become available. December 2008: M&A is down, but Goldman still on top Goldman Sachs was sitting pretty atop the worldwide announced merger and acquisition tables for 2008, coming in at No. 1 with 342 deals worth US$831.5 billion, according to Thomson Reuters. (However, thanks to a very dry deal market, Goldman’s M&A deal volume was down nearly 30 percent versus 2007.) Goldman also snagged the No. 1 spot for U.S. announced M&A deals, advising on 198 deals worth US$572.7 billion (down a whopping 38 percent versus 2007). And the firm took the No. 2 spot in European announced deals. As usual, Goldman has worked on some big-name deals recently, advising on Genetech's US$41.3 billion bid for pharmaceutical company Roche in July 2008 as well as Belgian beer brewer InBev's US$60 billion purchase of Anheuser-Busch, the largest M&A transaction of the year. Goldman also worked on the largest IPO of the year, underwriting (along with J.P. Morgan) Visa's US$17.9 billion initial public offering in March 2008. (Like the M&A market, the IPO market was down in 2008, as U.S. IPO issues fell 85.6 percent versus 2007, hitting a 31-year low.) The Visa deal certainly helped Goldman jump from No. 8 to No. 6 in global debt, equity and equity-related issues (Goldman worked on 584 deals worth $228.1 billion). On the global equity tables, Goldman also moved up to two spots to rank No. 2 in equity and equity-related issues, underwriting US$45.1 billion in deals. The firm leaped four spots to No. 3 in EMEA equity and equity-related deals, and moved up two spots in U.S. IPOs. However, it dropped two spots to No. 7 in global initial public offerings and six spots in EMEA IPOs. December 2008: Battered, but still standing Although Goldman Sachs was viewed as one of the world’s more successful firms when it came to weathering the financial storm, total revenue for 2008 was still down by a whopping 52 per cent from a record US$45 billion in 2007 to $22.2 billion. Net earnings also fell hard by 80 percent to US$2.3 billion, and it was in Asia that the firm took the biggest hit, with total revenues down from US$9 billion to a mere US$827,000. In 2008, Asia made up only 4 percent of the firm’s overall takings. October 2008: Slash and burn As part of its attempts to cut costs, Goldman Sachs reported that it was to cut 10 per cent of its global workforce of 33,000. There was also talk in the press that not only would the unlucky 10 per cent lose their jobs, but they would also have to forfeit their bonus payouts in January 2009 as total compensation, including accrued bonuses, reached US$11.4 billion in the nine months to August 2008. The cull saw 10 per cent of bankers from the Tokyo office laid off, in addition to a reported 25 from Hong Kong. GETTING HIRED Waiting for the one “Being smart is not enough,” say insiders when asked what the firm looks for in new recruits. “You need to be able to fit into the Goldman Sachs culture be a real team player.” If the right person is not found, then the role will remain empty. “When I first interviewed for this position,” explains an insider, “I heard that the firm had been looking for someone for six months because they could not find a suitable candidate. My interview process took three months before they hired me, showing just how selective they are in their hiring process.” Universally popular Customized for: vinh (
[email protected]) Insiders tell of “intensive” and “numerous rounds of interviews” as part of the recruitment process at Goldman Sachs; some sources took part in a mere four interviews, while others claim to have experienced as many as 10. These may be done “via phone, video conference or face to face, with all levels of people from various departments.” “The first round was on campus with associates, the second was at the corporate office with vice presidents. These [interviews] focused on overall industry knowledge and my personality, and appreciation of teamwork and diversity,” explains a respondent. “The third and fourth rounds were specific to specialized business areas, and covered what I would be interested in and where I would make a good fit.” At the end of the day, the “hiring process is based on unanimity.” “You could go through 15 positive interviews,” says a source, “but all it takes is one negative interview—and you’re done.” 18 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Goldman Sachs Group, Inc. OUR SURVEY SAYS Sipping the Kool-Aid There is a “very strong belief that the people at Goldman Sachs are the most important resource.” “It’s almost as if the firm has a stake in your progress and desperately wants you to succeed,” explains a contact. “Every employee is made to feel special.” “Hierarchy at the firm is minimal,” and employees “are encouraged and expected to collaborate with fellow colleagues as much as possible.” “Junior-level analysts are able to freely express their views and opinions to senior bankers.” “The atmosphere is one of collaboration,” notes another source. “I don’t feel competition, but I always feel the teamwork.” The firm makes sure it recruits people who are “friendly and helpful,” and most employees “are patient and willing to share information or data whenever needed.” Transparency is also very important to the firm, and “communication is generally very clear, honest and courteous, irrespective of where or whom it emanates from.” “Senior management ensures that employees are kept abreast of the events concerning the firm, and employees are encouraged to ask questions.” There is “a collegial sense of team spirit and pride,” which is “a great motivator.” And insiders readily tell us that stress in the office is not encouraged. “Many outsiders joke that Goldman Sach employees are always drinking the Kool-Aid. And there is a small truth to this,” reveals an insider. Respect for diversity is a key part of the firm’s philosophy, and the “leadership is almost obsessed” with this, be it “diversity of race, color, nationality, gender, religious beliefs, educational background or sexual orientation.” All doors are open “We are not managers or subordinates but co-workers,” says an insider. At Goldman Sachs, you “are not treated with less respect just because you are a subordinate.” One source says, “I’ve been very impressed by the willingness of managers to go out of their way to spend time with me. Whether it’s in a conference room going over technical issues I do not understand, or out of the office over drinks, I’ve never had a problem grabbing my manager and asking for his or her time,” reveals a source. In fact, managers operate “an open-door policy, are very approachable and are in tune with what is going on in the trenches,” according to insiders. “Every manager I have worked with has been extremely respectful of my work and talents, as well as my limitations,” offers one contact. “Each of them has so far behaved as if they had a stake in my development and success. It’s been an absolutely fabulous experience.” Relationships among managers are kept fresh with “one-on-one meetings on a bi-weekly basis,” but those lower down the chain like to look after each other as well. “The best thing about analysts here is that they tend to create an informal support network for each other and form very close bonds through their three-year programs,” one of them explains. Working New York, London time “Hardworking and dedicated” bankers at Goldman Sachs “work very long hours,” which “means putting in between “12 to 18 hour days,” as well as being “expected to be available at all hours when dealing with New York and London.” Insiders tell us that the “days in Asia start at 6:15 a.m. and normally end at 8:30 p.m.” “They squeeze a lot out of you and your personal time,” notes one contact. “As a senior executive once mentioned, ‘It’s not just a job, it’s a career.’ Goldman Sachs is for career-minded people, not for job-seekers.” A colleague adds, “Our hours are certainly not optimal, and there are times when it is difficult to keep a good work/life balance. However, the work is never mind-numbing, nor does it feel like the day goes by slowly. I typically feel like I’m engaged in my work, which makes the long hours pass quickly. At the same time, though, if someone told me I could leave by 6 p.m. every day, I would not turn that down.” Customized for: vinh (
[email protected]) All very PC Goldman Sachs is “extremely sensitive” when it comes to its female employees and “even has a formal women’s networking group to tackle issues that women may face in the office.” We are told the bigwigs “take exceptional care to balance the male and female populations,” with active efforts “made in recruitment to encourage applications from women.” As a result, analysts in Hong Kong report of classes in which 40 percent are female. “We also have a lot of female leaders in the firm, so there is no glass ceiling,” explains an analyst. According to another, the problem is “that the work is so demanding that a proportion of women are probably unable to continually commit due to family issues, and eventually drop out of the rat race.” But those who survive “are likely to be given the chance to rise to the top.” Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 19 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Goldman Sachs Group, Inc. Cutting back Newbies at the bank can expect “20 days of time off a year, 12 days of sick leave and five days of emergency leave.” Bonuses are “mostly in cash with a small stock proportion,” although “2008 was well below expectations given the market.” “Everyone is watching the results this year with a hope of them returning to 2007 levels,” says a contact. We are also informed that “signing bonuses are usually small in comparison to other firms,” and that the “expat housing allowance has been cancelled in 2009,” for those relocating to the Asian offices. Perks of the job include “most business expenses being reimbursed,” and “wellness benefits like gym memberships” and “medical insurance.” New mothers are also covered; they receive “four months of maternity leave.” All in all, employees at Goldman Sachs seem content with the pay structure at their firm. Top-tier training Insiders report that “there is a lot of focus on training and a lot of time is allocated to it.” The firm “provides various types of continuing education” through the “Goldman Sachs University.” “In addition to live trainings, we also have an online platform hosting e-learning courses on hard skills like product knowledge and soft skills like communication,” explains an insider. A colleague outlines the training analysts receivem, saying, “We had a six-week long training program when we started. Even after starting on our desks we have had weekly sessions.” While these formal sessions are viewed as “adequate,” insiders admit that the “individual support and training sessions with superiors are more effective.” As a result, most of the learning at the firm is done on-the-job. The company also “hosts a lot of diversity training, ensuring that it has a fair working environment.” Shrinking competition Staffers at Goldman Sachs are confident (very confident) about the company’s future, revealing that the bank is on track to significantly benefit from the loss of competitors. “We expect even less competition after the financial crisis and more development opportunities in the future,” explains a contact. A colleague agrees, saying, “The firm is in a great position relative to competitors in this business, and thus, when things turn around, we will be better placed than anyone to take advantage of the opportunities as they arise. I believe the firm’s culture and its people will be particularly important in driving this profitability, as they are attributes that other companies will find difficult to mimic.” Insiders add that management is “very confident about its plans, and is making efforts to secure more market share from competitors, with some very well thought out long-term plans in place.” Customized for: vinh (
[email protected]) 20 © 2009 Vault.com Inc. PRESTIGE RANKING 2 J.P. MORGAN INVESTMENT BANK KEY COMPETITORS Credit Suisse Deutsche Bank Goldman Sachs Morgan Stanley UBS Asia Pacific Headquarters Chater House 8 Connaught Road Central, Hong Kong www.jpmorgan.com LOCATIONS (AP) Australia • China • Hong Kong • India • Indonesia • Japan • Korea • Malaysia • Pakistan • Philippines • Singapore • Sri Lanka • Taiwan • Thailand • Vietnam PLUSES • "Scale, scope and prestige" • "Quality of training and development" • Entry-level "ownership on projects" BUSINESSES Advisory, Mergers & Acquisitions and Industry Sector Coverage • Asset Management • Equity Capital Markets • Debt Capital Markets • Cash Equities • Equity Derivatives • Credit & Rates Markets • Foreign Exchange • Commodities • Futures & Options • Research • Principal Investments Private Banking • Treasury & Securities Services MINUSES • "Relatively long hours" • "Need to improve global connectivity" • "Cautious approach" EMPLOYMENT CONTACT THE STATS Employer Type: Division of JPMorgan Chase & Co. Chairman & CEO, JPMorgan Chase: Jamie Dimon Chairman & CEO, J.P. Morgan Asia Pacific: Gaby Abdelnour Net Income: US$6.9 billion (FYE 12/09) No. of Employees (Worldwide): 27,000 (approx.) No. of Employees in Asia: 20,000+ No. of Offices: Offices in more than 60 countries globally No. of Offices in Asia: 26 offices in 14 nations jpmorgan.com/careers Customized for: vinh (
[email protected]) 21 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition J.P. Morgan Investment Bank THE SCOOP A world player J.P. Morgan is the investment banking division of JPMorgan Chase & Co., a leading global financial services firm with nearly US$2.2 trillion in assets and approximately 224,000 employees in 60 countries around the world. J.P. Morgan Investment Bank, one of the top "bulge bracket" global I-banks, has offices throughout the Asia Pacific region. The firm consistently ranks at the top of the investment banking league tables and regularly wins industry awards from major financial publications. Parent JPMorgan Chase & Co. also boasts powerful asset management, commercial banking, private banking, securities and treasury operations. Its clients include corporations, institutional investors, hedge funds, governments and affluent individuals in more than 100 countries, and it is a component of the Dow Jones Industrial Average. In the Asia Pacific region, J.P. Morgan provides a wide range of investment banking products and services across an industry coverage team that focuses on sectors such as consumer, health care and retail; financial institutions; financial sponsors; natural resources; general industries; real estate; and technology, media and telecommunications. The firm works with a broad range of issuer clients, including corporations, institutions and governments, and provides comprehensive strategic advice, capital raising and risk management expertise. Historic names One of the legendary names of American banking, J.P. Morgan has a history that stretches back to 1799, when JPMorgan Chase’s earliest predecessor, The Manhattan Company, was chartered to supply "pure and wholesome" water to the occupants of New York City. J.P. Morgan & Co. was itself established by J. Pierpont Morgan in 1861 as a sales and distribution office for the European securities firm, J.S. Morgan & Co., run by J. Pierpont’s father, Junius S. Morgan. Teaming up with Anthony Drexel in 1871 to form private merchant banking partnership Drexel Morgan & Co., J. Pierpont Morgan was making considerable investments by 1882 in United States infrastructure, in particular Mexico’s railways. In 1940 the company went public, becoming J.P. Morgan & Co. incorporated. Sixty years later, J.P. Morgan merged with Chase Manhattan in a deal valued at approximately US$38.6 billion. The deal was completed on the first day of 2001, instantly creating the third-largest financial institution in terms of assets in the U.S., behind Citigroup and Bank of America. In July 2004, JPMorgan Chase officially merged with Bank One Corporation for a purchase price of US$58.5 billion. Upon the merger, the combined company possessed US$1.1 trillion in assets, rivaling Citigroup’s US$1.2 trillion. One of the largest financial mergers in U.S. history, the deal boosted JPMorgan Chase’s ability to compete with Citi not only in investment banking and commercial lending, but also in consumer banking, which was Bank One’s key strength. The new company was positioned to offer services in investment banking, financial services for consumers and businesses, asset and wealth management, private equity and financial transaction processing. In the Asia Pacific region, J.P. Morgan’s beginnings go back to 1872, when the bank’s first office opened in Australia. The firm has been in Hong Kong, Japan and China since the 1920s, and has had a strong commitment to the region ever since. The firm’s regional headquarters is located in Hong Kong, where it has over 78 years of operating history and is the company’s second largest base outside of the U.S. Today, J.P. Morgan has more than 26 offices in 14 nations throughout Asia. The firm has about 20,000 employees in the region. More than 2,900 employees are based at the firm’s regional headquarters in Hong Kong. Awards and rankings • Fortune 500—No. 16 (Fortune, 2009) • 25 Most Desirable MBA Employers—No. 10 (Fortune, 2009) Customized for: vinh (
[email protected]) • Best Foreign Investment Bank—China, Hong Kong, Taiwan (The Asset, 2009) • Derivatives House of the Year—Asia (Asia Risk, 2009) • Credit Derivatives House of the Year—Asia (Asia Risk, 2009) • Best M&A House—Japan (FinanceAsia, 2009) • Best Foreign Investment Bank—Japan (FinanceAsia, 2009) • Derivatives House of the Year—Asia (Energy Risk, 2009) 22 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition J.P. Morgan Investment Bank • Best M&A House in Asia (Euromoney, 2008) • Best M&A House and Best Equity House—Japan (Euromoney, 2008) • Best Foreign Investment Bank—Japan, Best M&A House—Japan, Best Cash Management House—Japan (FinanceAsia, 2009) • Best M&A Advisor—Japan (Asiamoney, 2008) • M&A Deal of the Year in Asia [for China Unicom’s merger with China Netcom] (Financial Times and Mergermarket, 2008) • Japan IPO Deal of the Year (Nikkei Bonds & Financial Weekly, 2008) • Best Rates Derivatives House in Asia (The Asset, 2008) • Best FIG House and Best Equity-Linked House—Asia (The Asset, 2008) • Derivatives House of the Year, Bank Risk Manager of the Year, Credit Derivatives House of the Year, Derivatives Research House of the Year (Risk, 2008) • Bank of the Year, Bond House of the Year, Equity House of the Year, Derivatives House of the Year, Securitization House of the Year, Leveraged Finance House of the Year (IFR, 2008) • All-Asia Research Team Poll—No. 1 (Institutional Investor, 2008) • All-Japan Research Team Poll—No. 4 (Institutional Investor, 2008) • Awards of Excellence: Jamie Dimon, Gaby Abdelnour and Asif Raza (The Asian Banker, 2008) • Global Debt, Equity & Equity Related Underwriting—No. 1 (Thomson Reuters, 2008) • Debt Capital Markets: Global Debt Underwriting—No. 1 (Thomson Reuters, 2008) • Equity Capital Markets: Global Equity & Equity-Related Underwriting—No. 1 (Thomson Reuters, 2008) • M&A Advisory: Any Asia (ex-Japan) Involvement Completed (by value)—No. 4 (Thomson Reuters, 2008) • M&A Advisory: Any Japanese Involvement Completed (by value)—No. 5 (Thomson Reuters, 2008) IN THE NEWS July 2009: Heading up DCM Long-time staffer Rohit Chatterji was named head of J.P. Morgan’s Asia Pacific debt capital markets practice. Chatterji, who has been with J.P. Morgan for 12 years in a variety of roles, will relocate from Singapore to Hong Kong. He will report to Todd Marin, the head of Asia Pacific investment banking. June 2009: New face in M&A Merrill Lynch’s ex-chair of global mergers and acquisitions, William Rifkin, was brought on board by J.P. Morgan. Starting his new role in September 2009, Rifkin, who has more than 30 years of M&A experience, will serve as J.P. Morgan’s vice chairman of mergers and acquisitions. He will report to global M&A head Jimmy Elliott. Customized for: vinh (
[email protected]) June 2009: Refocusing on the core According to sources cited by Bloomberg and Reuters, a major J.P. Morgan reorganization was underway as the firm looked to strengthen its traditional investment banking business lines. The reorganization included the firm’s standalone principal investment management group in the U.S. shuttering its hedge fund business and its private equity division (except for a team that focuses on Asia); most of the employees from the closed groups moved to other parts of the bank. In Asia, the bank’s private equity team will be incorporated into the global emerging markets and credit trading unit, according to Reuters. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 23 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition J.P. Morgan Investment Bank June 2009: Moving on up in Hong Kong Big news for J.P. Morgan’s chairman for Greater China, as Charles Li was pegged as the next chief executive of the Hong Kong Exchanges and Clearing (HKEx)—Hong Kong’s securities and futures exchange. (Li officially joined the HKEx in October 2009, and outgoing HKEx chief executive Paul Chow retired in January 2010). June 2009: Buyback time The firm received permission to repay its U.S. governmental TARP loan, and the bank repaid the government’s US$25 billion preferred stock investment. In addition to this principal amount, the firm paid the U.S. Treasury US$795.1 million in preferred stock dividends, including dividends that had accrued through the redemption date. J.P. Morgan also notified the U.S. Treasury of its intent to repurchase the 10-year warrant issued to the Treasury in connection with the preferred investment. May 2009: Passing with flying colors J.P. Morgan. passed the U.S. government’s stress test, meaning the bank would not need to raise supplementary capital. The firm had a strong financial showing in comparison with many of its competitors, some of which were told to shore up additional capital after their stress tests. The results were hardly a surprise to J.P. Morgan executives, who had already argued that the company had enough capital to deal with a crumbling economy. May 2009: Welcome to Guangzhou J.P. Morgan officially launched its fourth branch in Mainland China—in the southern city of Guangzhou. Joining other branches in Beijing, Shanghai and Tianjin, the Guangzhou branch is expected to be a launching point for expansion in the Pearl River Delta region, a rapidly growing area in southern China. In Guangzhou, J.P. Morgan will be offering investment banking services and a wide array of other products and services to local and multinational corporations. April 2009: Surpassing expectations First-quarter 2009 earnings were US$2.14 billion, higher than Analysts had predicted. The bank was buoyed by record revenue of US$8.3 billion in its investment banking division (largely due to its fixed income trading business), nearly tripling the US$3 billion it brought in for the first quarter of 2007. March 2009: We’re No. 1! In 2008, while revenues fell across the board for pretty much everyone in the banking world, investment banks went back to basics, collecting on advising fees, underwriting and bonds. As the calculations came in, J.P. Morgan had some extremely good news for 2008 as it grabbed top honors across all three areas. Though fee income for investment banks fell drastically to US$53 billion in 2008 (from US$87 billion in 2007), marking the first drop since 2003, J.P. Morgan pushed Citigroup out of the top slot for fee earners. J.P. Morgan also took the No. 1 ranking for underwriting, elbowing Citi out of the spotlight for the first time since 2004, while in bonds, the two firms shared first place. November 2008: Global I-banking cuts Company insiders told Reuters in November 2008 that J.P. Morgan was in the process of cutting about 10 percent of its investment banking staff. In addition to the approximately 3,000 job cuts, it was reported that the firm had frozen base salaries between US$60,000 to US$70,000. Customized for: vinh (
[email protected]) September 2008: Scooping up WaMu In another major deal to shake up the U.S. banking landscape, parent JPMorgan Chase & Co. purchased failed bank Washington Mutual from the U.S. government’s Federal Deposit Insurance Corporation (FDIC) for US$1.88 billion. The federal government seized Washington Mutual’s holding company at the request of the Office of Thrift Supervision before selling it off, thereby avoiding a further government bailout. JPMorgan Chase became the owner of WaMu’s banking operations, including 2,300 branches, US$143 billion in deposits, and other assets and certain liabilities—not including WaMu’s unsecured debt under the holding company, which amounted to around US$20 billion at the time. 24 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition J.P. Morgan Investment Bank September 2008: Investing in India J.P. Morgan revealed in September 2008 that it would double its private equity investments in India up to US$1 billion—in addition to investing approximately US$500 million in its corporate finance and advisory units. Private equity in India seems to be an area that’s growing globally: investments increased 3.2 percent in the first half of 2008 to about US$6.8 billion. J.P. Morgan has invested in a variety of private Indian entities, including L&T Infrastructure Development Projects, Apollo Hospitals Enterprise, and Café Coffee Day. March 2008-July 2008: Rescuing Bear After news surfaced in March 2008 that New York-based investment bank Bear Stearns was facing a cash shortage in the midst of the industrywide credit crisis, the firm’s clients withdrew approximately US$17 billion in two days, sending what was already a financial institution on very shaky ground into proverbial earthquake mode. As a result, J.P. Morgan stepped in on March 16th, announcing that it would be purchasing Bear for US$236 million in stock—or US$2 a share, 97 percent less than Bear’s market value just one week earlier. Backlash from Bear shareholders resulted in J.P. Morgan raising its bid to US$10 per share a week later. To help finance the deal, the U.S. Federal Reserve agreed to provide J.P. Morgan with a US$30 billion credit line, which, according to The Wall Street Journal, was "believed to be the largest Fed advance on record to a single company" at the time. The new deal was accepted by Bear’s directors, though Bear’s shareholders filed a US$2.5 billion consolidated class-action lawsuit which was ultimately dismissed in December 2008, with the judge ruling that J.P. Morgan acted appropriately to avoid a catastrophic bankruptcy that would have sent waves through markets around the world. In April 2008, J.P. Morgan added some security to more than 100 undergraduate and grad-school students. After it was announced that about half of the recent job offers made by Bear Stearns would be rescinded, J.P. Morgan assured summer interns affected by the announcement that they "will be offered 10 weeks of pay if they work for a certain nonprofit organization and will get an early chance to apply for fall positions." Meanwhile, the firm said that "graduates denied full-time jobs will keep their signing and relocation bonuses and will have access to career services." The cuts came mostly in areas where there was overlap with J.P. Morgan such as M&A, equity underwriting and corporate finance. Chairman and CEO Jamie Dimon announced in May 2008 that JPMorgan Chase had secured positions available for about 40 percent of Bear’s 14,000 employees. At the end of May, the acquisition of Bear became official after Bear Stearns’ shareholders approved the deal in a brief meeting presided over by the firm’s chairman, James Cayne. Internal restructuring was announced to be completed at the end of July 2008. GETTING HIRED Looking for the right fit J.P. Morgan is becoming "increasingly selective given the market conditions," according to insiders. But sources also report that an "iron-clad resume is not a must for being hired," with the firm looking "for much more all-rounded people rather than sheer intellect." Values like “team spirits” are highly regarded and the bosses at the firm are keen on "finding the right cultural fit along with the necessary technical expertise." According to one insider, the hiring process "is similar to what is followed across the industry; there are multiple rounds of interviews with traders at various levels and senior salespersons," though other sources stress that the firm generally limits itself to about two rounds. The process is described by one staffer as "selective, but straightforward and efficient from both the firm’s and the candidate’s perspective." For Asia, the typical process involves an "initial phone interview" followed by a "day of interviews with three to five business representatives." We’re told that interviews are done by "senior line managers and are mostly behavioral, with appropriate finance, accounting and marketsrelated questions based on the candidate’s background and knowledge." As an example, one trader remembers being asked, "What would be the effect of the change in volatility/correlation of a 2y/10y IRS on a 2y/10y spread option?" The contact is quick to clarify that his interviewer "was more interested in whether I understood the concept than my answering the question correctly." Customized for: vinh (
[email protected]) What’s your plan this summer? The firm offers summer internship programs, which is advised as a step closer to a full-time position, one which can "get your foot in the door and provide us the opportunity to work with you and see how you fit in the environment." Internships also let you "understand the firm, people and job." The work varies, according to one former intern. "Your assigned group does not dedicate what kind of work you do,” she says. “You pretty much work for anyone who’s in need. The work complexity varies, ranging from delivering documents to one-on-one communication with senior management." Another former intern reports "working on live deals as well as a project to identify business opportunities." Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 25 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition J.P. Morgan Investment Bank As a way to get in the door, sources who’ve worked as summer interns describe the program as "very useful when considering a full-time application, either immediately after the internship or later on." One analyst feels "the firm hires from its interns first, then seeks out externals." Another insider agrees, saying, "It is a definite advantage. In addition to providing ‘meaning’ to the terms you’ve learned at university, the internship provides personal contact.” This is important since “a large part of the ultimate hire decision is based on the personal fit of employees." A senior source further explains, "Doing well as an intern definitely gives you an advantage in getting a full-time offer. Typically, offers are given out to the interns we like prior to general recruiting at schools. Of course, an internship is not a prerequisite to getting a full-time offer—typically around half the full-time hires are non-interns." The firm notes that getting hired depends on individual performance during the internship. OUR SURVEY SAYS Freethinking and fair One thing insiders at J.P. Morgan like to point out first and foremost is that the culture of their firm "is not as cut-throat competitive as at other banks." "There is a clear emphasis on teamwork contributions," says one source. A colleague agrees, telling us that the employees "are a close-knit group within Asia," adding, "People are generally very willing to support and learn from each other." The environment also lends itself to "two-way, free and frank conversation" between juniors and their superiors. "Very little politics" come into play at this "very open firm." Most employees are "rather easygoing and fair," and the bank continues to aim to employ people with these characteristics. Sources also state you are given the "opportunity to take responsibility in the early stage of your career." "Analysts and associates touch the markets, work on live deals, and interact with clients and senior management," one insider points out. But above all else, insiders claim the "firm strives hard to live up to founder J.P. Morgan’s motto that they ‘do first-class business in a first-class way’." All this adds up to a view from respondents that there is "strong emphasis put on performance, results, inclusion and fairness." Intense hours, few complaints Hours at J.P. Morgan "can be intense," and some respondents claim to work over 100 hours a week when there is a major transaction going on, although they’re not complaining. "At times, I have to work over 100 hours a week, but given how interesting, challenging and rewarding working at J.P. Morgan is, I am fine with it," stresses one banker. That said, it appears the average working week comes in at around 60 to 70 hours across the board, and sources say this "is in line with other investment banks." Some also admit that given the financial crisis, the hours you have to put in have gone down a bit in some cases. "Managers here encourage work/life balance and accommodate various needs from time to time," says one banker. So much so that a contact tells us a "Work Life Balance Steering Committee has been established at the Hong Kong office to ensure colleagues in the Asia Pacific region maintain regular working hours." tTe source adds that the "Committee provides a forum for employees to voice any concerns." A colleague agrees that the firm is trying to focus more on staffers’ well-being, saying, "Seniors really make an effort to do quality business but minimize working hours for juniors." This includes ensuring that employees take their full four weeks of vacation a year, and allowing them to take sabbatical leave if appropriate. Focusing on people Bankers give good marks when it comes to the relationships between juniors and their superiors, who are described as both "good" and "healthy." There is, we’re told, "very good camaraderie, even with the most senior members often knowing and always acknowledging all staff, from interns all the way up to other managing directors." A source agrees, saying, "My managers treat me with full respect and consideration of my personal career development. My manager has regular conversations with me to make sure I am happy with what I am doing." Customized for: vinh (
[email protected]) The "inclusive culture" sources report at J.P. Morgan means that "senior management has an open-door policy and is willing to listen and take concerns into account." This also stretches to giving "honest and clear performance direction and feedback." "Professionals who come to J.P. Morgan from competitor firms are often struck by the depth of our focus on people," says a contact. Top-tier training in New York "The firm places great emphasis on continuous training," say insiders. "The training for first-year analysts was a phenomenal experience and I am sure any of my training mates can attest to it," says a contact. Indeed they do, with a colleague claiming enthusiastically, "The analyst to associate training program over six weeks in New York was the most intense, thorough, informative and enjoyable training I have ever 26 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition J.P. Morgan Investment Bank undertaken." This entry-level training "develops a solid foundation in the technical skills, products and markets applicable to the respective businesses of investment banking, sales and trading, and research." The firm also offers "boot camps to help those without a financial background or investment banking experience build the analytical skills necessary to get the most impact out of the training programs." Aside from this initial training, J.P. Morgan also offers a "unique tutor program," where it selects "top people from the line to exclusively dedicate their time to tutoring trainees during the training programs." J.P. Morgan staffers tell us the company is "competitive with the market for salaries, bonuses and benefits." Perks include an "employee stock purchase plan and a comprehensive benefits package," which includes "meal allowances, car services, ongoing training, company discounts at retailers, and discounts on memberships to local gyms and cultural organizations." All-inclusive Looking at diversity in the workplace, staffers report, "There are over 70 employee networking chapters globally across the firm, bringing together employees with shared backgrounds or interests, including working parents; gay, lesbian, bisexual and transgender people; women; and employees with disabilities." With regards to women, the Japan office also "hosts a women-only event for undergraduates of all degree disciplines to learn about the industry, network with employees and job-shadow various lines of business." Building on strong foundations Given the economic crisis, as one respondent puts it, "No one can ignore where the overall market is at the moment." But at the same time, staffers say that the outlook of the firm "in general is cautiously positive," adding, "J.P. Morgan has come out on top in terms of most major league tables (M&A, equity and debt), so competitively we’ve built up a strong brand." Others share this positive stance in looking towards the future, with one contact saying, "Our market share improved in all products in 2009. In spite of a challenging environment, we are very strongly positioned to increase our presence in all key markets and products." Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 27 PRESTIGE RANKING 3 MORGAN STANLEY KEY COMPETITORS Citi Institutional Clients Group Goldman Sachs J.P. Morgan Merrill Lynch UBS Investment Bank Morgan Stanley Asia Pacific Head Office Level 46 International Commerce Centre 1 Austin Road West Kowloon, Hong Kong Phone: +852-2848-5200 Fax: +852-2845-1012 www.morganstanley.com EMPLOYMENT CONTACT www.morganstanley.com/careers/recruiting/asia_pacific LOCATIONS IN ASIA PACIFIC Australia (Sydney and Melbourne) • China • Hong Kong • India • Indonesia • Japan • Korea • Singapore • Taiwan • Vietnam BUSINESSES Global Wealth Management • Institutional Securities • Investment Management THE STATS Employer Type: Public Company Ticker Symbol: MS (NYSE) Chairman & CEO, Morgan Stanley: James Gorman CEO, Morgan Stanley Asia: Owen Thomas Chairman, Morgan Stanley Asia: Stephen Roach Net Revenue: US$23.36 billion (FYE 12/09) Net Income: US$907 million No. of Employees Worldwide: 62,000 No. of Employees in Asia: 5,122 No. of Offices Worldwide: 600+ Customized for: vinh (
[email protected]) 28 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Morgan Stanley THE SCOOP Global powerhouse Morgan Stanley is one of the leading investment banking firms in the world. Its business is divided into three practice areas: investment management, wealth management and institutional securities. Morgan Stanley Investment Management (MSIM) provides global asset management products and services, including equity, fixed income alternative investments and a direct investing business. It also includes the firm's private equity businesses and its real estate funds (MSREF). Morgan Stanley's global wealth management unit caters to individuals and small- to medium-sized businesses and institutions, offering retirement plan services, brokerage and investment services, financial and wealth planning, annuity and insurance, credit, trust and banking, and cash management. In Asia, the wealth management business is entirely focused on private wealth management for ultra-high-net-worth individuals, families and trusts. The institutional securities unit covers Morgan Stanley's world-renowned investment banking, sales, trading, financing, research and risk management analytics operations. Today, the New York-based bank has more than 600 offices in 33 countries worldwide. It has had a presence in Asia Pacific for over 30 years, and currently has more than 3,400 employees in its offices in Hong Kong, Beijing, Shanghai, Zhuhai (China), Taipei, Seoul, Singapore, Jakarta, Hanoi, Mumbai, Sydney and Melbourne. Deep roots In 1854, American Junius J. Morgan joined a London banking business. His son, J. Pierpont Morgan, decided to follow in his father's footsteps back home—and as one of America's most powerful financiers, Pierpont Morgan's name became synonymous with wealth and commerce in the country's early industrial years. Pierpont Morgan was succeeded by his son J.P. Morgan, who formed J.P. Morgan & Co. In 1935, Henry Morgan and Harold Stanley left J.P. Morgan & Co. to form Morgan Stanley in New York, with offices on Wall Street. Morgan Stanley continued to grow, managing some of the biggest IPOs and bond issues of the 1940s and 1950s. Morgan Stanley expanded its banking business to include asset management in 1975, when it debuted asset management services for institutional clients. The firm opened a private wealth management department two years later, in 1977, and went public in 1986. This was the same year the Discover card was launched by Sears, Roebuck (the product of a merger between Sears, Roebuck and Dean Witter Reynolds). Dean Witter Discover separated from Sears, Roebuck in 1993, and Morgan Stanley purchased the venerable Van Kampen mutual fund family in 1996. The following year Morgan Stanley and Dean Witter, Discover & Co. merged, creating a global powerhouse and a leader in worldwide asset management, securities and credit services. In 2007, the Discover unit was spun off. Under the terms of the divestiture deal, shareholders received one share of Discover stock for every two shares of Morgan Stanley. Eyes on Asia The firm's primary businesses in Asia Pacific include corporate finance, mergers and acquisitions advisory, direct investment, equities and fixed income research, sales and trading, foreign exchange and commodities, private wealth management and investment management. Morgan Stanley is also planning to launch retail fund management operations in South Korea, China and Taiwan over the next two years—as part of an expansive push into Asian investment management. The focus on investment management marks a timely change for Morgan Stanley, which has generally focused on real estate, private equity and hedge funds in the Asian market, as well as institutional fund management and alternative investments. In a recent interview with the Financial Times, Blair Pickerell, the head of Morgan Stanley Investment Management for Asia, said, "If you are seriously interested in building a long-term asset management business globally, you can't afford not to be in China." Customized for: vinh (
[email protected]) In Vietnam, Morgan Stanley received regulatory approvals for a joint venture in February 2008. The venture, in which Morgan Stanley owns a 49 percent stake, is based in Hanoi and operates as Morgan Stanley Gateway Securities Joint Stock Company (Morgan Stanley Gateway Securities). Following final regulatory and license approvals, the joint venture will be able to conduct a range of services, including investment banking advisory and underwriting, brokerage services, research and principal investing. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 29 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Morgan Stanley Responding to tough times The global financial crisis began to take its toll on Morgan Stanley in early 2008, as the firm struggled to recover from US$9.4 billion in writedowns. Morgan Stanley sacked about 1,500 people—primarily from mortgage divisions—and the firm’s British home lending business was shuttered. In September 2008, amid the crisis, Morgan Stanley requested and received permission from the United States Federal Reserve to convert itself into a bank holding company, which means it now operates under tougher leverage ratios and capital reserve rules than it did as an independent investment bank. On top of that, it is subject to oversight from the Fed. (Its main competitor, Goldman Sachs, also became a holding company). Shortly after the structure conversion, Morgan Stanley sold a 21 percent stake in its equity for US$9 billion to Japan’s Mitsubishi UFJ Financial Group. The move was intended to calm fears about Morgan Stanley’s capital reserves. At the same time, Mitsubishi and Morgan Stanley agreed to establish a strategic partnership and look for opportunities to work together. (The first such opportunity was revealed in March 2009 when the firms announced the planned combination of Mitsubishi UFJ Securities Co. Ltd. and Morgan Stanley Japan Securities Co. Ltd. The combined business, of which Morgan Stanley owns 40 percent, will offer a full range of institutional services as well as a Japanese retail brokerage network.) In October 2008, U.S. Treasury Secretary Henry Paulson announced that the Treasury would inject a total of US$250 billion into U.S. banks in order to help restore confidence to the markets. Morgan Stanley was among the first group of banks to receive U.S. Treasury money, with an investment of US$10 billion. The injection followed in the footsteps of some European countries, which announced similar moves earlier to help thaw their credit markets. In June 2009, on the heels of the U.S. government’s highly-publicized banking “stress tests,” Morgan Stanley and several other U.S. firms were granted permission to repay the government the funds they took under TARP. Giving back Morgan Stanley has a number of programs in place as an equal opportunities employer in Asia and aims to help local communities. Nearly a third of all Morgan Stanley officers in the region are female, and the firm has an active women's network in Asia for its female professionals. In nearly every location in Asia, Morgan Stanley has an employee-led charity committee that organizes volunteers for local community projects and fundraising. Every June, the firm also organizes "Global Volunteer Month"—an annual series of employee-led community service initiatives sponsored by the firm across the globe. Apart from supporting educational and health causes for underprivileged children, Morgan Stanley sponsors the arts and remains attentive to environmental matters. IN THE NEWS January 2010: Its first annaul loss Morgan Stanley booked its first annual loss in its 74-year history, reporting a net loss of US$907 million for 2009 on net revenue of US$23.36 billion. Despite the loss, the firm had some good things to report in its earnings release: Its institutional securities group experienced healthy growth in revenues and earnings, underwriting revenues rose by more than 60 percent, and the firm was No. 1 in announced worldwide merger and acqusition deal volume, beating out perennial top M&A advisor Goldman Sachs. December 2009: Changes at the top Customized for: vinh (
[email protected]) Less than a month away from James Gorman taking over as CEO from John Mack, Morgan Stanley announced several changes to the top of its org chart. Morgan Stanley CFO Colm Kelleher and Paul J. Taubman, the firm’s global head of investment banking, were named copresidents of Morgan Stanley’s institutional securities unit. Succeeding Kellher as CFO will be Ruth Porat, the head of Morgan Stanley’s financial institutions group who will become one of the most senior-ranking female bankers on Wall Street. July 2009: A Mitsubishi partnership Morgan Stanley said it would partner with Mitsubishi UFJ Financial Group in a corporate lending deal that will combine MUFJ’s US$70 billion in U.S. loans and Morgan’s US$30 billion in loans. The partnership will allow the companies to compete with the likes of other big players in 30 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Morgan Stanley the industry such as JPMorgan Chase and Citigroup. The union will also help increase Morgan Stanley’s odds of drumming up additional investment banking business. June 2009: China backing China’s sovereign wealth fund, China Investment Corp put its weight behind the American bank’s long-term prospects by buying US$2.2 billion worth of common stock and raising its stake in the firm to about 9.86 percent. The move brought the fund’s share in the bank back to its original 2007 levels before they were diluted by the investment from Mitsubishi UFJ. June 2009: Taiwanese tie-up As part of a plan to expand in Taiwan, Morgan Stanley obtained approval from the Federal Reserve System to buy a stake of up to 9.9 percent in Taiwan’s Chinatrust Financial Holding Co. The move was expected to result in the two companies developing joint corporate financial services, retail banking and credit card services. June 2009-July 2009: Leaving for pastures new Summer 2009 saw a couple of defections amongst the upper echelons of the bank’s Asian operations. In June, Matthew Ginsburg, head of Asia Pacific investment banking, resigned amid reports that he was taking up a similar position at Barclays Asia Pacific. A month later, the head of Hong Kong’s investment banking, Che-Ning Liu, left to take up a position as HSBC’s Greater China corporate banking head. November 2008: Costs to be cut As part of its efforts to slash operational costs and help see it through the economic crisis, Morgan Stanley announced that it would slash 10 percent of its institutional securities staff and 9 percent of the firm’s asset management group globally. As part of the cuts, the bank’s Hong Kong unit saw 6 percent of its total headcount reduced, with 100 employees laid off in November. November 2008: Continued expansion Another move into the Chinese economy occurred in November as Morgan Stanley acquired a 19.9 percent stake in the country’s Hangzhou Industrial & Commercial Trust Co for US$29 million. As part of the deal, the American lender gained control to appoint a new chief executive, in addition to taking two of the nine board seats of the firm, which at the time had over US$878 million in assets under management. September 2008: Last of the investment banks Following the demise of Lehman Brothers, Morgan Stanley reported that it was also in difficulties as its share price slid an alarming 42 percent in September 2008. In response, the investment bank announced that it would become a traditional bank holding company. The announcement, coupled with a similar move by competitor Goldman Sachs, seemed to end an era of investment banking on Wall Street and gave the banks emergency funds, if needed, from the U.S. central bank. Three days later, Japan’s largest bank, Mitsubishi UFJ, said it was poised to pay at least US$9 billion for a 20 percent stake in the troubled American lender. The deal would see Morgan Stanley retain its independent status January 2008: Asia chief steps down Customized for: vinh (
[email protected]) Morgan Stanley Asia saw the departure of its CEO in January 2008 when Hans Schuettler decided to retire and move back to his native Germany after only two years on the job. Schuettler was head of Asia at the bank during the meteoric rise of the Asian markets. (He was succeeded in February 2009 by Owen Thomas, who previously worked in New York as president of Morgan Stanley Investment Management. Thomas is now based out of Morgan Stanley Asia's head office in Hong Kong.) December 2007: China connection Followed in the footsteps of banks such as UBS and Citigroup, Morgan Stanley agreed to a long-term investment from a sovereign wealth fund. The fund, the state-owned China Investment Corporation (CIC), paid US$5 billion for a 9.9 percent stake in Morgan Stanley. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 31 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Morgan Stanley November 2007: Cutting Cruz Morgan Stanley CEO John Mack sacked co-president Zoe Cruz, who had overseen Morgan Stanley's trading and risk operations. Cruz—the 16th most powerful woman in the world, according to Forbes magazine—had been widely seen as Mack's most likely successor. GETTING HIRED High achievers, please Morgan Stanley's recruiting page (found by going to the “careers” link on its Web site) has a great deal of information on the firm's culture, diversity and dedication to social responsibility, as well as upcoming recruiting events at universities worldwide. In addition to entry-level and experienced hire positions, Morgan Stanley offers a variety of analyst-level programs in Asia Pacific for graduates who might not necessarily have "extensive job experience or knowledge of the financial world." The firm seeks "high achievers who share integrity, intellectual curiosity and the desire to work in a congenial atmosphere with like-minded people." In Asia Pacific, analyst programs include opportunities in investment banking, private equity, private wealth management, research, and sales and trading. For investment banking, there is a two- to three-year full-time analyst program and a 10- to 12-week summer analyst program available. More information is available on the recruitment page. For associate-level programs (open to those with several years of professional experience, an MBA or other advanced degree), opportunities are available in investment banking, private equity and private wealth management. Customized for: vinh (
[email protected]) 32 © 2009 Vault.com Inc. PRESTIGE RANKING 4 DEUTSCHE BANK AG KEY COMPETITORS Bank of America Citigroup Credit Suisse Goldman Sachs J.P. Morgan Morgan Stanley UBS Asia Pacific Head Office One Raffles Quay South Tower Level 17 Singapore, 048583 Phone: +65-6423-8001 Fax: +65-6225-4911 www.db.com LOCATIONS IN ASIA PACIFIC Auckland • Aurangabad, India • Bangalore, India • Bangkok • Beijing • Chennai (Madras), India • Colombo • Guangzhou, China • Gurgaon, India • Hanoi • Ho Chi Minh City • Hong Kong • Islamabad, India • Jakarta • Karachi, Pakistan • Kolhapur, India • Kolkata • Kuala Lumpur • Lahore, Pakistan • Manila • Melbourne • Mumbai • New Delhi • Noida, India • Pune, India • Salem, India • Seoul • Shanghai • Singapore • Surabaya, Indonesia • Sydney • Tianjin, China • Taipei • Tokyo • Vellore, India EMPLOYMENT CONTACT www.db.com/careers BUSINESSES Corporate & Investment Bank Corporate Investments Private Clients & Asset Management THE STATS Employer Type: Public Company Ticker Symbol: DB (NYSE), DBK (DAX), DBKG (LSE), DBKG (Euronext) Chairman, Management Board: Dr. Josef Ackermann Revenue: €7.2 billion (FYE 9/09) Net Income: €1.4 billion No. of Employees: 70,000+ No. of Employees in Asia: 17,000 No. of Branches in Asia: 1,900+ Customized for: vinh (
[email protected]) 33 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Deutsche Bank AG THE SCOOP The organization of Deutsche Deutsche Bank is organized into three divisions: the corporate and investment bank (CIB), private clients and asset management (PCAM) and Corporate Investments. The whole group is directed by a management board, which controls resource allocation, accounting and disclosure, strategy and risk management. Deutsche Bank's CIB group oversees the firm's capital markets business, including the origination, sales and trading of capital markets products, in tandem with the bank's corporate advisory, corporate lending and transaction banking businesses. It also oversees mergers and acquisitions and gives general corporate finance advice primarily for global corporations, financial institutions, and sovereign and multinational organizations. Deutsche Bank's PCAM group comprises two subdivisions: asset and wealth management, and private and business client services. Its asset management business includes traditional asset management and alternative investments, the latter encompassing absolute-return strategies and specialist real estate asset management. Its client base includes retail clients and institutional investors such as pension funds. With approximately €915 billion in assets under management globally as of September 30, 2009, the asset management group at Deutsche Bank is one of the largest asset managers in the world. The bank's private wealth management division caters to high-net-worth individuals and families. It offers traditional and alternative investments, risk management strategies, lending, wealth transfer planning and philanthropic advisory, among others services. The smallest of the three divisions, the corporate investments group, manages Deutsche's own industrial and other holdings, real estate assets, private equity investments and venture capital holdings. This division was at the center of a comprehensive streamlining plan in 2005; noncore assets were sold off, and the division's old three-part structure was consolidated into a single operating unit. The German giant Germany's biggest bank first opened its doors in Berlin in 1870, operating under a very specific motto: "to transact banking business of all kinds, in particular to promote and facilitate trade relations between Germany, other European countries and overseas markets." In 1872 the bank opened its first foreign branches in Shanghai and in Yokohama, Japan. By 1880, the bank was engaging in industrial investment activities, making deals across borders in Asia, Turkey and the Americas, and in 1929, it merged with Disconto-Gesellschaft, the biggest merger in German banking history. World War II nearly destroyed Germany's financial services industry; Deutsche Bank was shut down by occupying Soviet forces in 1945. Its West Berlin operations were decentralized into 10 regional institutions, which were then combined into three jointstock companies. In 1957, these three companies reunited, creating Deutsche Bank AG. In the decades that followed, Deutsche grew rapidly, adding retail banking services and international offices in New York, Paris, Tokyo, London and Moscow. Its first U.S. purchase came in 1999, with the acquisition of Bankers Trust. Two years later, Deutsche made its public debut on the New York Stock Exchange; in 2002, it bought U.S. asset manager Scudder Investments. In 2006, Deutsche completed the acquisition of Russian investment bank United Financial Group. During 2006, Deutsche added more than 5,400 people, expanding its presence in North America, Latin America, the Middle East, Central and Eastern Europe, and Asia—especially in India and China. In 2007, Deutsche Bank's Asia Pacific workforce expanded from 10,800 to more than 15,100—a 40 percent increase—as another 4,000 jobs were created in the region. Globally, almost half of the 9,400-employee increase at Deutsche Bank in 2007 was added in the Asia Pacific region. Despite continued uncertainty in the industry globally, Deutsche Bank continues to expand in the region In January 2008, the firm announced employee job cuts that would reach nearly every department—and all around the globe. The first wave of cutbacks came within the month, when the bank slashed about 300 positions within its global markets unit. Over the course of the first quarter of 2008, those numbers inflated to 1,000 global job reductions, mostly in mortgage banking areas. Customized for: vinh (
[email protected]) A first in 50 years The year 2008 was definitely one to remember, or rather forget for the German banking giant as it announced its first annual loss in 50 years, highlighting the severity of the global financial crisis. Following on from a €6.5 billion profit in 2007, the bank posted a net loss of €3.9 billion in 2008, with the last quarter of 2008 seeing the biggest deficit as the bank reported a net loss of €4.8 billion. Bonuses were slashed, a trend that continued into 2009, with the bank’s chief executive Josef Ackermann giving up his bonus and taking a yearly salary in 2008 of €1.4 34 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Deutsche Bank AG million—reportedly 10 times less than in 2007. The firm also said it planned to slash 1,200 jobs in February 2009, although at the time Ackermann claimed these would be the last. This statement was contradicted in March as the annual report said that the elimination of more jobs couldn’t be ruled out. On a positive note, Ackermann added in March 2009 that early results for the year were encouraging and the bank was “well positioned” to deal with the financial crisis. Ackerman’s comments proved to be accurate: For the nine-month period ending September 2009, Deutsche Bank booked net revenue of €22.4 billion and net income of €3.65 billion. Awards and rankings • • • • • • • • • Best Bank in Australia (The Asset, 2009) Best Foreign Investment Bank in Australia (The Asset, 2009) Best Bank in India (The Asset, 2009) Best M&A House in China (The Asset, 2009) Private Bank of the Year in Asia (AsiaRisk, 2009) Interest Rate Derivatives House of the Year in Asia (AsiaRisk, 2009) Best International Trade Bank in Korea, the Philippines and Taiwan (Trade Finance Awards, 2009) No. 1 in Asia (Euromoney FX Poll, 2009) No 1 in Australasia (Euromoney FX Poll, 2009) IN THE NEWS October 2009: Taking Sal. Oppenheim Deutsche Bank confirmed that it had reached a deal to purchase the Luxembourg-based Sal. Oppenheim for approximately US$1.5 billion. Deutsche also confirmed that shareholders would be given the offer of taking a long-term stake in its German business, Sal. Oppenheim KGaA. Additionally, under the terms of the deal, Deutsche will acquire BHF-BANK and a private equity fund managed under Sal. Oppenheim Private Equity Partners, according to the Associated Press. BHF Asset Servicing will also fall under Deutsche Bank’s possession, which the bank plans to sell. The deal is expected to close in the first quarter of 2010 once it receives regulatory approvals, Deutsche said, adding that it may pay for the transaction in shares. August 2009: Reducing responsibilities Deutsche Asset Management reported that it will be transferring the management of its Asian and Greater China equities mutual funds to Harvest Fund Management. Deutsche Assets Management, which owns a 30 percent stake in Harvest Fund Management, said that it would be moving 10 senior asset managers and a sales team to the new entity in September 2009 once regulatory approval was given. Michele Bang, who was the previous chief executive of Deutsche Asset Management in Asia, is heading up the new venture. The move to transfer management was seen as a sign by Deutsche Bank to concentrate on its core areas. As part of the handover, Deutsche Asset Management will provide operational assistance to Harvest Fund Management for a limited period in areas such as back office support, trading and compliance. July 2009: A cautious outlook Thanks to strong trading output and one-time charges, Deutsche Bank’s second quarter 2009 profit jumped 68 percent versus the same quarter a year earlier. However, the bank’s loan portfolio remains troublesome. It incurred €1.4 billion in bad loan provisions, a signal the effects of the financial crisis are not over. Deutsche Bank also announced it will extend CEO Josef Ackermann’s contract until 2013. Customized for: vinh (
[email protected]) June 2009: Exit Grassie, enter Rankin Robert Rankin took over as the CEO of Deutsche Bank’s Asia Pacific (excluding Japan) opreations, replacing Colin Grassie. Rankin, who will be based in Hong Kong, will report to Juergen Fitschen, the bank’s global head of regional management. Before joining Deutsche Bank, Rankin was head of investment banking, Asia Pacific at UBS, in addition to acting as chairman of the management advisory committee of UBS Securities, UBS’s joint venture in China. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 35 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Deutsche Bank AG April 2009: Revisiting profit, keeping Ackermann Deutsche Bank booked US$1.6 billion in net income for the first quarter of the year, compared with a US$185 million net loss for the first quarter of 2008. The bank was buoyed by improved trading revenue, which increased 56 percent versus the same quarter a year earlier to US$9.4 billion. The firm also reported record revenue in interest rate and foreign exchange products, in addition to a good showing in its money market area. Its corporate banking and securities unit increased revenue nearly four times versus what it posted for the same period of 2008. At the same time, the bank announced that it would be holding on to CEO Josef Ackermann for three more years after his contract runs out in 2010. February 2009: Private banking cull As earnings from Deutsche Bank’s private banking fell, the firm’s wealth management arm laid off a reported 70 people in Singapore and Hong Kong at the beginning of 2009. According to sources, those affected included team leaders and relationship managers. In 2008, the German bank’s net revenue from its private clients and asset management unit fell 22 per cent to €2 billion; both areas were hit by the negative market developments in the fourth quarter of 2008. This followed a report from Bloomberg that claimed the firm also made a round of job cuts in Japan in December 2008. The cuts saw at least 60 bankers from the global markets division lose their jobs, although no public announcement on the matter was made. January 2009: Securing the Chinese market Chinese regulators approved Deutsche Bank’s joint venture with Shanxi Securities allowing the German bank access to China’s securities market for the first time. The joint venture, known as Zhong De Securities Co will underwrite and sponsor A-shares, foreign investment shares, as well as corporate and government bonds. The approval is particularly significant for the European-based bank as it is the last license required to enable the bank’s core global business to operate in China. Deutsche Bank will take a 33.3 percent stake in the business adding to an expanding presence in China, which includes a 30 percent ownership of Harvest Asset Management and a 13.7 percent interest in Hua Xia Bank. October 2008: Hedging its bets Deutsche Bank opened two specialist hedge fund administration offices in Dublin and Singapore, adding to its existing hedge fund admin offices in California, Massachusetts and the Cayman Islands. The expansion will allow the bank’s DB HedgeWorks unit to offer administration services to hedge fund managers in Europe and Asia, along with the U.S. GETTING HIRED Standard operating procedure Information about jobs at Deutsche Bank is on the careers section of the company's website at www.db.com/careers. The careers section discusses opportunities for school leavers, graduates and undergraduates, MBAs and professionals. The web site also has a section with frequently asked questions such as "What is Deutsche Bank's dress code?" (Answer: business casual.) Training programs and internships in Asia Customized for: vinh (
[email protected]) Deutsche also posts information about internships, including those in the Asia Pacific region, on its web site. The bank hires students from universities worldwide for analyst internship and training programs (for undergraduate and graduate students) as well as for associate internship and training programs (for MBAs). In Asia, Deutsche has analyst internship programs in Mainland China, Hong Kong, Singapore, Japan, Australia and New Zealand. Analyst internship programs are usually eight to 10 weeks long. Requirements vary depending on the office, though the only basic requirement is that you are currently studying at a "leading academic institution." The firm notes that internships are a key source of full-time hires—a large number of analyst and associate positions globally are filled by individuals who completed an internship at Deutsche. For the 2008 class, 75 percent joined the firm upon completion. 36 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Deutsche Bank AG Deutsche Bank also recruits students from overseas into Asia. For a number of years, the firm has targeted students at U.S. and U.K. universities for roles in global markets and global banking (only in corporate finance) in Hong Kong, Singapore and Japan. In 2007, this was extended to cover Australian students. Most analysts are hired into Singapore, Hong Kong, Mainland China, Japan, Australia and New Zealand, but from time to time, based on need, the firm also hires a smaller number of analysts into Vietnam, the Philippines, India, South Korea, Taiwan and Thailand. For MBA students, Deutsche has associate training programs in Japan, Singapore and Hong Kong. For these training programs, Deutsche looks for individuals who have creative problem solving abilities, agile minds, leadership potential, strong quantitative and analytical skills and a knack for communication. Candidates, who need to be completing an MBA, should also have strong academic records and previous experience in finance, as well as fluency in English. Certain offices have additional requirements. For example, in Japan, applicants need business-level Japanese for some positions. In Hong Kong, Deutsche seeks people who are strong team players—fluency in at least one Asian language is not a prerequisite but can be beneficial for some positions. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 37 PRESTIGE RANKING 5 THE BLACKSTONE GROUP KEY COMPETITORS Bain Capital The Carlyle Group Goldman Sachs KKR Lazard Morgan Stanley Suite 901, 9th Floor Two International Finance Centre 8 Finance Street Central, Hong Kong Phone: +852-3656-8600 Fax: +852-3656-8601 www.blackstone.com LOCATIONS IN ASIA PACIFIC Beijing Hong Kong Mumbai Tokyo EMPLOYMENT CONTACT www.blackstone.com/careers DEPARTMENTS Corporate Private Equity Financial Advisory Marketable Alternative Asset Management Real Estate THE STATS Employer Type: Public Company Ticker Symbol: BX (NYSE) Chairman & CEO: Stephen A. Schwarzman Revenue: -US$349.4 million (FYE 12/08) Net Income: -US$872.3 million No. of Employees: 1,340 No. of Offices: 21 Customized for: vinh (
[email protected]) 38 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Blackstone Group THE SCOOP King of Wall Street In 1985, two top Lehman Brothers executives, Peter G. Peterson and Stephen A. Schwarzman, invested US$400,000 to launch a boutique M&A firm they called The Blackstone Group. Their first office operated with a staff of four, but Peterson and Schwarzman were convinced their singular approach would become a force in the business world. First of all, they decided to invest only in friendly mergers and acquisitions–a bold decision in the hostile takeover-happy environment of the 1980s. They also insisted that their own firm always invest large chunks of its own funds in the investments it made, and that their firm would strive to remain free of conflicts of interest, especially those born of competing business divisions within larger companies. As Blackstone grew, its founders gained reputations for holding its reins a little too closely–several partner departed under bitter clouds. But it's clear that Peterson and Schwarzman, who earned the nickname "The King of Wall Street," have built a strong business. Today, Blackstone has 1,340 employees in 21 offices around the world. It has also expanded its work beyond M&A advisory to include restructuring and reorganization advisory, fund placement services, private equity, real estate, corporate debt and marketable alternative investments, as well as closed-end funds in India and Asia. In 1998, American International Group (AIG) purchased a 7 percent non-voting stake in Blackstone; it paid US$150 million for its share, and has invested over US$1.2 billion in Blackstone-sponsored funds. In addition to AIG, Blackstone has formed strategic alliances with several international financial institutions, including Roland Berger Strategy Consultants, Kissinger Associates, Alfaro Asesores Financieros and Scandinaviska Enskilda Banken. In June 2007, Blackstone put forward its long awaited and much-hyped initial public offering, issuing 133.3 million units priced at US$31 apiece. The US$4.13 billion IPO, one of the largest U.S.-based IPOs in recent history, gave the public a 12.3 percent stake in Blackstone. After the IPO, the firm as a whole was valued around US$33 billion. How they’re set up The firm’s business segments include private equity, real estate, financial advisory, and credit and marketable alternative asset management. The firm is a renowned market leader in private equity investing, and is big international player in the real estate business. Blackstone’s financial advisory business is structured into three divisions: corporate and M&A advisory services, restructuring and reorganization advisory services, and private placement advisory services. The M&A group has a focus in several industry areas such as consumer products, energy, financial services, media and entertainment, and health care, among others. It also has an expertise in several product areas, including private company transactions, fairness opinions, structured products, demutualizations and conversions, and financial advisory. Blackstone has had its hand in many big M&A deals since its inception. Blackstone's restructuring group has been equally active on large deals, advising on more than 150 distressed deals involving more than US$575 billion in total liabilities since its inception. In June 2007, the group opened an office in London—it already had outposts in Europe, as well as the U.S. Clients have included Delta Air Lines, Enron and Global Crossing, among others. Credit and marketable alternative asset management includes funds of hedge funds, closed-end mutual funds and GSO Capital (a US$20 billion alternative asset fund founded by the men who built and ran the Leveraged Finance businesses at Donaldson, Lufkin & Jenrette and Credit Suisse). Blackstone’s strength as a top global alternative asset manager is evident in its US$93.5 billion in total assets under management as of June 2009. Taming the Tiger One of Blackstone's key investments in the Asian region is its publicly traded Asia Tigers Fund, which was started in 2005 and trades under the symbol GRR on the New York Stock Exchange. Currently, the fund has over US$64 million in assets invested in a wide range of Asian sectors and countries. Investing in Asia proved successful initially as the fund saw an 85.8 percent increase in its net asset value for the whole of fiscal 2007. However, after the stellar results of 2007, Prakash Melwani, the director and president of the Asia Tigers Fund, wrote a letter to fund shareholders warning that volatility in the U.S. markets and an over-heated Chinese market was pointing toward a slight slowdown in 2008. His outlook would prove true; the fund scraped by the global economic slowdown with a 19 percent decline in asset growth between June 2008 and June 2009. The Asia Tigers Fund's main investments are in Hong Kong, South Korea, and China with 21.2, 17.7 and 15.4 percent invested in each country, respectively. The fund also has a 12 percent stake in India. Among the fund's top 10 holdings are Samsung Electronics, Taiwan Semiconductor Manufacturing, China Mobile, CNPC Hong Kong, China Life Insurance, China Construction Bank, POSCO and DBS. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 39 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Blackstone Group Indian Infrastructure Blackstone has invested over US$730 million in India following the opening of its first office in Mumbai. In March 2007, Blackstone appointed Amit Dixit, a Harvard grad and Indian entrepreneur, to join its Indian private equity team. Two of its major funds, the Asia Tigers Fund and the India Fund, have made significant investments, totaling nearly US$2 billion, in a myriad of Indian companies. The India Fund comprises the majority of these investments, with holdings in notable Indian firms such as Tata Motors, ICICI Bank, Reliance Industries, and Infosys. The fund is the largest U.S.-listed fund featuring India as its focal point. Blackstone has also entered into the private equity game in India with two modest investments in large Indian firms. In August 2006, the firm invested US$366 million in the Pune-based pharmaceutical company Emcure Pharmaceuticals. Blackstone hopes to capitalize on Emcure's potential to become a global manufacturer of generic drugs. The company also made a foray into the field of Indian media when it invested US$465 in Ushodaya Enterprises Limited, a firm which owns the country's third-largest newspaper and its fourth-largest private television station. The deal was approved by Ushodaya's board of directors in January 2007. In November 2007, Blackstone funneled US$65 million in funds into an engineering firm based in Hyderabad called MTAR Technologies Private Limited. MTAR manufactures parts for nuclear power reactors, and structural components for aerospace and defense applications. IN THE NEWS November 2009: Investing in Southwest Airlines In a routine SEC filing, Blackstone revealed its latest investments, including the purchase of a US$7.8 million stake in Southwest Airlines, a US$16.5 million stake in the WisdomTree India Earnings fund and a $20.8 million interest in Barclays Bank (Blackstone already owned a piece of Barclays worth US$1.7 million). In addition, Blackstone revealed that it sold its US$4.4 million interest in power generator concern Calpine and lessened its US$21.7 million stake in Eastman Kodak to US$13 million. November 2009: Blackstone back in black For the third quarter 2009, Blackstone booked net income of US$275 million, a leap-and-a-half from the US$503 million loss it incurred during the same period a year earlier. The firm’s results were largely boosted by an improving economy. Blackstone CEO Stephen Schwarzman said in a press release that “the worst is behind us though a recovery could be gradual and uneven." The firm was also helped by the stabilizing of its real estate investments. To date in 2009, Blackstone had seen a lot of improvements versus 2008. Through October 2009, Blackstone’s share price had risen by 112 percent during the year (though, at about US$14, it was still well below the US$31 per share price of its 2007 IPO). October 2009: Going public—eightfold Blackstone is preparing up to eight of its portfolio companies for initial public offerings, an insider who received a letter from the firm told Reuters. According to the letter, Blackstone is first arranging to set up its hospital staffing company Team Health for an IPO, while assessing the possibility of IPOs for seven other firms. Blackstone is also preparing to sell five of its other companies, including Kosmos Energy’s oil interests in Ghana. October 2009: Buying Busch Gardens Blackstone agreed to invest up to US$1 billion of equity in a US$2.7 billion deal to purchase Anheuser-Busch InBev’s theme parks based in the U.S. The deal will give a boost to Blackstone’s already strong portfolio of theme parks. The InBev transaction will add three SeaWorlds and two Busch Gardens, among other assets, to Blackstone’s existing amusement parks, which include Legoland and Madame Tussauds wax museums Customized for: vinh (
[email protected]) August 2009: Growing by 25 percent According to The Hedge Funds Journal, Blackstone’s fund of funds portfolio grew 25 percent to US$25 billion from the beginning of 2009 through the end of June 2009. In comparison, hedge funds competitors such as Man Investments, Union Bancaire Privée and HSBC have seen decreases across their hedge funds divisions. 40 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Blackstone Group August 2009: Investing in Shanghai In a joint venture with the Chinese government, Blackstone set up a US$732 million fund, the first of its kind involving China and a global private equity firm. The Blackstone Zhonghua Development Investment Fund will focus in investments in Shanghai and nearby areas. July 2009: Roadblocks in India Blackstone’s investment in India experienced a recent setback as Indian regulators blocked the firm’s attempt to purchase US$150 million in shares and warrants of Nagarjuna Construction in July 2009. Blackstone was ultimately forced to drop the acquisition of 9.1 million warrants. Currently, the company owns 9.3 percent of Nagarjuna Construction. It was not the first time Indian regulators blocked Blackstone operations within the region. In 2008, the group announced plans to invest US$275 million in Ushodaya Enterprises, an Indian firm engaged in a wide variety of businesses, but the deal was quashed by disapproving Indian regulators. June 2009: China chooses Blackstone A Blackstone Group hedge fund unit is set to receive an investment of US$500 million from the Chinese sovereign wealth fund China Investment Corp., according to a June 2009 report from Reuters. This infusion of funds is part of an attempt by the Chinese government to ensure that it will not miss any opportunities when the U.S. market hits bottom. The Blackstone Group is no stranger to China. During the group’s initial public offering in 2007, China’s then newly formed State Investment Corporation acquired a US$3 billion share in Blackstone—roughly 10 percent of the company’s initial equity. The investment was supposed to be a strategic bid to deepen Blackstone's relationship with China in order to gain footing in the difficult to access markets there. Yet the move opened dangerously for China’s investment board, as the US$3 billion investment quickly plummeted to a value of US$1.4 billion. In November 2008, Blackstone’s Greater China Chairman Anthony Leung stated that despite the global financial crisis the group would not slow down its investments in China. May 2009: Fewer losses than last year Blackstone booked a first quarter 2009 loss of US$231.6 million, slightly less than the US$251 million loss it suffered in the same period in 2008. The firm cited higher management and advisory fees as reasons for the poor results. Revenue, meanwhile, plummeted 31 percent to US$47.1 million. Several of the firm's business lines managed to do well, however. Blackstone's financial advisory division posted a 29 percent increase in revenue to US$92 million, while the company's hedge fund unit brought in US$99.5 million in revenue compared with US$30 million in the previous year's first quarter. May 2009: Trimming the hedges Blackstone announced that it was cancelling a plan to start an Asian event-driven hedge fund. The group was initially expecting to sink as much as $US1 billion into the fund, aimed at investing in Asian companies pursuing events such as mergers and reorganizations. Blackstone spokesman Peter Rose cited the current global economic situation as the major catalyst for cancelling the plan, according to a report by Bloomberg. December 2008: We can do IT Customized for: vinh (
[email protected]) As 2008 came to a close, Blackstone announced that it was partnering with Indian IT management firm CMS Group to set up a new company formed through spinning off the IT Infrastructure and Outsourced Business Service divisions from the Indian firm. CMS ranks among the top IT Infrastructure Management firms in India. Blackstone will hold a majority share in the venture and will also hold a dominant position on the new company’s board. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 41 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Blackstone Group GETTING HIRED Get with the program Blackstone's central careers page is located at www.blackstone.com/careers. The firm offers opportunities in private equity, real estate and marketable alternative asset management funds, including hedge funds, debt funds, proprietary hedge funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. Opportunities are also available in advisory, including corporate finance, mergers and acquisitions, restructuring and reorganization, and fund placement. According to the firm’s site, candidates "should have excellent interpersonal and communication skills and should be strong group facilitators as well as capable leaders and successful team players." Prior financial services experience is "preferred, but not required." An internship program is available, lasting 10 weeks and typically only available during the summer months. There are three classifications of positions: summer analysts (for university seniors), summer associates (for second-year MBA students or those with one year remaining in an advanced degree) and summer interns. Employment for these positions generally commences in early June. First-round interviews typically begin in late January or early February and applications are available on the site. On the online application form, candidates can mark location preferences including Hong Kong, Mumbai and Tokyo. Those looking to apply as a new analyst or associate can expect to undergo first round interviews in late September or October. Analysts that receive an offer begin their employment in June with a three-week training program focused on knowledge about the company history and profile, skills in accountancy, corporate finance, financial modeling and the company’s IT systems. New associates are typically recruited out of MBA programs and usually start their employment in early August. Both analyst and associate candidates can apply online, and should do so by early August. Customized for: vinh (
[email protected]) 42 © 2009 Vault.com Inc. PRESTIGE RANKING 6 HSBC HOLDINGS PLC KEY COMPETITORS Citigroup Fortis Royal Bank of Scotland Standard Chartered Bank 8 Canada Square London, E14 5HQ United Kingdom Phone: +44-20-7991-8888 Fax: +44-20-7992-4880 www.hsbc.com LOCATIONS IN ASIA PACIFIC Australia • Bangladesh • Brunei • China • Hong Kong • India • Indonesia • Japan • Kazakhstan • Korea • Macau • Malaysia • New Zealand • Pakistan • Philippines • Singapore • Sri Lanka • Taiwan • Thailand • Vietnam EMPLOYMENT CONTACT See “Careers” section of www.hsbc.com DEPARTMENTS Business & Commercial Banking • Corporate & Institutional Banking • Internet Banking • Personal Banking THE STATS Employer Type: Public Company Ticker Symbol: HSBA (LSE) Group Chairman: Stephen Green CEO, Investment Banking: Stuart Gulliver Revenue: US$88.57 billion (FYE 12/08) Net Income: US$5.7 billion No. of Employees: 312,866 No. of Offices: 8,500 Customized for: vinh (
[email protected]) 43 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition HSBC Holdings plc THE SCOOP Hails from the Far East HSBC Holdings is one of the largest banking companies in Asia and one of the largest in the world, with 8,500 offices in 86 countries and territories. It provides a full range of financial services, including consumer and business banking, asset management, investment banking, securities trading, insurance and leasing to its 125 million customers. In 2008, the firm ranked No. 1 on the Forbes Global 2000, a list of the world's largest companies measured by sales, profits, assets and market value. It was the first time that a non-U.S.-based firm topped the list. However, HSBC's reign was short-lived, as the firm dropped to No. 6 on the list for 2009. Headquartered in London, HSBC today has nearly 10,000 offices in 83 countries, making its motto, "the world's local bank," pretty accurate. Old school in the East HSBC's roots are truly international, going back to 1865, when the Hongkong and Shanghai Banking Corporation opened dual offices in Shanghai and London. The bank's initial expansion was in the East, with branches opening across China and Southeast Asia. From there, its reach spread to India, Europe and North America. Its first Middle Eastern acquisition came in 1959, with the purchase of the British Bank of the Middle East. Throughout the latter half of the 20th century, HSBC grew by making deals, buying up other Asian banks and opening new offices in Canada and Australia. Hongkong and Shanghai Banking—and its many subsidiaries—were consolidated in 1991 with the formation of HSBC Holdings plc. The new holding company continued adding to its portfolio, buying several European banks (including Midland Bank and Credit Commercial de France). Latin America was the final frontier: HSBC bought a majority stake in Mexico's Grupo Financiero Bital in 2002. An even bigger deal came the next year when HSBC purchased Household International, a U.S. provider of consumer finance and credit cards, for a whopping US$14.2 billion. In 2005, the firm bought 9.9 percent of Ping An Insurance, China's second largest life insurance company (HSBC already owned 10 percent of Ping An, bringing its stake up to nearly 20 percent). Global powerhouse In 2006, HSBC reported nearly 50 percent of its pre-tax profits from Asia, the Middle East, Latin America and other emerging markets. In its year-end report, the firm said that it expected this percentage to rise even higher over the next several years, because these economies are expected to grow faster than those in developed markets, "and therefore, we will concentrate investment primarily in these markets in the form of both organic development and acquisition." HSBC stayed true to its word when it announced in late 2006 that it would acquire an additional 10 percent share in Techcombank, Vietnam's third-largest joint stock bank, bringing its ownership interest to 20 percent. Then, in March 2007, HSBC said that it was making plans to double the size of its operations in China, opening as many as 40 new offices during the year and making 1,000 additional hires between 2007 and 2008. Restructuring I-banking Business at HSBC is divided into four core areas: personal financial services, commercial banking, private banking, and corporate, investment banking and markets (CIBM). The bank's commercial banking arm provides loans, credit, insurance, investments, merchant banking, mortgages, financing, risk management and securities services to small, medium-sized and middle-market companies. Customized for: vinh (
[email protected]) The CIBM group was restructured in February 2006 and split into four product lines: global markets, global banking, global transaction banking and group investment businesses. Gl obal markets includes foreign exchange, fixed income, derivatives, equities and metals sales and trading. Global banking offers corporate and institutional banking, sector management, investment banking, project and export finance, and asset and structured finance. Global transaction banking includes payments and cash management, trade services, supply chain, securities services and wholesale banknotes businesses. Finally, group investment businesses manages investment solutions. This reorganization was aimed at increasing profit by reducing costs in the CIBM group. 44 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition HSBC Holdings plc True to its word One month after HSBC told the world that its focus on Asian (as well as Middle Eastern and European) markets would keep it afloat in troubling economic times, the firm was deemed the successful bidder in a government auction to acquire The Chinese Bank in Taiwan. The bank, of which the Taiwan government has had control since January 2007, had US$3.1 billion in assets as of September 2007. HSBC assumed the bank's assets and liabilities in exchange for Taiwanese government funds, which reportedly amount to US$1.5 billion. In addition, HSBC will provide additional capital, estimated to be between US$300 million and US$400 million. Reporting on HSBC's acquisition, The New York Times said, "HSBC, which followed global rivals Citigroup, Standard Chartered and ABN AMRO to acquire a Taiwan bank, will focus on expanding two competitive but profitable businesses: wealth management and small-medium enterprises investing in China." Under the terms of the deal, HSBC is required to establish a local subsidiary within three years of completion or one year after HSBC's total assets in Taiwan exceed US$13.9 billion, whichever is earlier. The new company will have a minimum capitalization of approximately US$309 million. Greenest of them all In the midst of subprime misery, HSBC received a feel-good honor in January 2008, when it was marked as the top-ranked environmentally conscious bank. The firm nudged out ABN Amro, Barclays, HBOS and Deutsche Bank, as well as U.S. powerhouses Citi and Bank of America. The ranking was performed by Ceres, an environmental group that urges companies to address climate change. HSBC has been carbon neutral since 2005. Previously, in May 2007, HSBC had spearheaded a five-year, US$100 million partnership to respond to the urgent threat of climate change worldwide. The firm was joined in the coalition by The Climate Group, Earthwatch Institute, Smithsonian Tropical Research Institute and WWF. The partnership—which involved the largest donations to each of these charities and the largest donation ever made by a British company— has significant program targets and offers transformational support for the environmental charities. The donation will help to deliver increased capacity, help the charities to expand across new countries and research sites, and increase their access to more people. Profits halved Having witnessed one of the worst downturns in the global economy since before World War II, HSBC was lucky to come out with what on the surface appeared to be pretty healthy profits of $9.3 billion before tax for 2008. Put into context, however, these profits were 62 percent lower than 2007 figures. But the bank can hold its head high that it did not have to rely on government handouts to stay afloat. And while pretax profit was down in North America by a whopping 169 per cent, in Asia and in Hong Kong, profits were up. By the end of fiscal 2008, operations in Hong Kong reported profits that were 58 percent higher versus 2007 figures to US$5.5 billion, while the rest of Asia posted profits of US$6.5 billion, 69.5 percent higher than the previous year. IN THE NEWS August 2009: Chinese footsteps The media was awash with news that HSBC was in advanced talks with China’s Industrial Securities Co to form an investment banking venture. (HSBC is the biggest foreign lender in China, operates a fund venture in China and obtained approval in June 2009 to launch an insurance venture in the country.) Earlier in August, HSBC Asia Pacific chairman Vincent Cheng revealed that the British lender was indeed in talks with potential partners in China to set up a securities venture, but had declined to provide details. Such a venture would give HSBC access to stock and bond underwriting businesses. Customized for: vinh (
[email protected]) August 2009: Entering Indonesia Looking to bulk up its presence in the world’s fourth most populous country, HSBC increased its share of Bank Ekonomi Raharja Tbk by 10.08 percent, taking its stake in the Indonesian bank to 98.96 percent. The extra shares cost US$72 million and were on top of the 89 percent stake the bank purchased for US$607.5 million back in May 2009. That initial acquisition almost doubled HSBC’s presence to 208 outlets in 26 cities across Indonesia. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 45 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition HSBC Holdings plc August 2009: Cut in half HSBC Holdings announced that its pretax profit in the first half of the year dropped to US$5.02 billion, down from US$10.2 billion in the same period a year before. But the company, which was affected by climbing bad debts, still managed to surpass analysts’ US$4.9 billion forecast. Total operating income also took a tumble for the half-year period, dropping 6 percent to US$40.2 billion from US$42.9 billion. June 2009: Insuring the Chinese market The Chinese market was once again in HSBC’s sights, this time as the firm announced it had gained regulatory approval to create a joint venture insurance company. Named HSBC Life Insurance Co, the new JV was set up with Beijing-based National Trust and is based in Shanghai. The bank also claimed that it was also looking to develop its insurance business further afield in other mainland areas such as Guangdong Province and Beijing. May 2009: Making the list HSBC revealed that it was looking to be one of the first batch of foreign firms to be listed on the Shanghai Stock Exchange. According to insiders at the bank, the move is being planned to not only consolidate the bank’s brand influence in the region but also to raise funds for its plans to expand into mainland China. (By July 2009, the British bank had invited mainland and Chinese-foreign joint venture investment banks in the country to submit proposals for its A-share listing; $3 billion is expected to be raised from the share offering, with media reports claiming the bank would most likely list, at the earliest, in the first half of 2010). March 2009: Cutting back in America HSBC went ahead with a drastic worldwide cut of 6,100 positions, which included the closing down of most of its U.S. consumer lending business. November 2008: Debit development HSBC Bank China finally launched its debit cards across 17 cities in mainland China. Cardholders are able to use their cards at China UnionPay Co’s domestic and overseas networks in about 50 countries, as well as at HSBC’s ATMs in over 40 countries. The alliance between UnionPay and HSBC resulted in the London-based bank receiving the most extensive ATM access of any foreign bank in mainland China. November 2008: Focus Asia After previously announcing that it would cut 1,100 jobs worldwide, HSBC finally announced that it had laid off some 450 employees in Hong Kong in anticipation of a worsening global economic situation in 2009. The cull involved all customer groups as well as some bank office functions. On a positive note, the firm did mention that while it was withdrawing part of its business from the U.S., it was also eyeing up possible acquisitions across Asia. September 2008: Building branches In September 2008, the bank outlined its desire to increase its stake in the Chinese market by revealing plans to add three to four new cities to its Chinese network each year in addition to adding an extra 80 branches to it by the end of 2008. As of September, the bank already had 74 outlets in 17 cities, up from 62 at the start of the year. It became the first international bank to enter the rural market in western China when it opened a rural bank in Chongquing. Customized for: vinh (
[email protected]) 46 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition HSBC Holdings plc GETTING HIRED All around the world At www.hsbc.com, you can check out current job openings based on region. From there, the firm also offers sections for MBA opportunities and for more experienced hires. The "student careers" section offers specific positions for those candidates in undergraduate and postgraduate programs. All positions can be applied for online, where the system will save your information for future applications. Interns, too, get their own area on the site. For that program, HSBC accepts applications "from candidates from any degree subject background." But try to give the bank "as much detail as you can" regarding your qualifications, "including all subjects studied and results achieved," especially if you're outside the U.S.—the bank notes that it will need to convert your grade point average to make sure it meets its minimum qualifications. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 47 PRESTIGE RANKING 7 CREDIT SUISSE GROUP AG KEY COMPETITORS Citi Institutional Clients Group Deutsche Bank Goldman Sachs J.P. Morgan Morgan Stanley UBS Global Headquarters Paradeplatz 8 8070 Zürich Switzerland Phone +41-44-212-1616 Fax +41-44-333-2587 www.credit-suisse.com LOCATIONS IN ASIA PACIFIC Main hubs: Hong Kong • Singapore • Sydney • Tokyo Additional locations: Bangkok • Beijing • Jakarta • Karachi • Kuala Lumpur • Labuan (Malaysia) • Manila • Melbourne • Mumbai • New Delhi • Seoul • Shanghai • Sydney • Taipei EMPLOYMENT CONTACT www.credit-suisse.com/careers DIVISIONS Asset Management Investment Banking Private Banking THE STATS Employer Type: Division of Credit Suisse Group AG CEO, Credit Suisse: Brady Dougan CEO, Credit Suisse Asia Pacific: Kai Nargolwala CEO, Credit Suisse Investment Bank: Paul Calello* Net Revenue (Investment Bank): CHF -1.97 billion (FYE 12/08) Income Before Tax (Investment Bank): CHF -13.79 billion No. of Employees (Investment Bank): 19,300 (worldwide) No. of Offices (Investment Bank): 57 (worldwide) Customized for: vinh (
[email protected]) *In September 2009, Eric Varvel became acting CEO, temporarily replacing Calello when Calello developed a “sudden and unexpected illness” 48 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Credit Suisse Group AG THE SCOOP Swiss bankers, global reach As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, solutions and products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse employs more than 47,400 (as of September 2009) people around the world. In its investment banking business, Credit Suisse is active across the full spectrum of financial services products, including debt and equity underwriting, sales and trading, mergers and acquisitions, investment research, and correspondent and prime brokerage services. Regionally, the group is divided into Switzerland, EMEA (Europe, the Middle East and Africa), the Americas and Asia Pacific. In the Asia Pacific region, the firm has 15 offices in 12 markets, with major hubs located in Singapore, Hong Kong, Sydney and Tokyo. Sweet Schweizerische Credit Suisse’s history dates back to 1856 when Alfred Escher founded Schweizerische Kreditanstalt (that’s Swiss-German for Swiss Credit Institution). Credit Suisse opened its first international branch outside its home country in New York City in 1940. For the next three decades, the bank grew within Switzerland, across Europe and internationally. In 1978, Credit Suisse began its cooperation with The First Boston Corporation in the U.S., acquiring a controlling stake in the firm 10 years later (after which the bank was renamed Credit Suisse First Boston). A year after that, Credit Suisse Holding was established as the parent company of the group. Various mergers, acquisitions and alliances continued through the 1990s, and merged banks ultimately became assimilated into the Credit Suisse identity with the launch of the integrated bank in 2006. New leaders Credit Suisse announced a new generation of leaders at the executive board level in 2008, ushering a new era of leadership that faced the most challenging period for financial institutions in recent history. In May 2008, after heading up the investment bank for three years, Brady Dougan was named the overall CEO of the Credit Suisse Group. Paul Calello, who was previously the CEO for Asia Pacific, took over as CEO of the investment banking division globally. In Asia Pacific, Kai Nargolwala was appointed as the regional CEO in January 2008. A friend in Founder Credit Suisse has enjoyed a solid history working in China. It has served as a financial advisor on the IPOs of some of the country's largest corporate and state-owned institutions, including China Construction Bank (CCB) and the Industrial and Commercial Bank of China (ICBC). In addition, in 2006, the Chinese government launched the Qualified Domestic Institutional Investor (QDII) program, and Credit Suisse received approval to participate in the program, which meant the firm was allowed to provide tailored solutions for Chinese investors who want to invest internationally. The bank is also a Qualified Foreign Institutional Investor with an investment quota of US$500 million. In early 2008, Credit Suisse laid the groundwork for a joint venture with Founder Securities, the securities arm of Chinese conglomerate Founder Group, to run investment banking activities in China. The venture finally received a business permit from China's securities regulator in December 2008, and is initially focus on the sponsoring and underwriting of RMB-denominated A-shares on the Chinese exchanges and the underwriting of debt issuance. Credit Suisse Founder Securities made a strong start, executing debt and equity capital markets transactions worth the equivalent of US$7.05 billionin 2009. Awards and rankings Customized for: vinh (
[email protected]) • Best Foreign Investment Bank in Philippines, Best Foreign Investment Bank in Indonesia, Best Foreign Investment Bank in Vietnam (FinanceAsia, 2009) • Best Electronic Broker, Japan (FinanceAsia, 2009) • Best Investment Bank for 2009, Best Emerging Markets M&A House, Best Foreign Investment Bank in Indonesia, Best M&A House in Singapore (Euromoney, 2009) • Deals of the Year [Republic of Indonesia sovereign bonds, Philippines debt exchange warrants] (Euromoney, 2009) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 49 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Credit Suisse Group AG • Deals of the Year [Philippines debt exchange warrants] (The Banker, 2009) • Best Bond Deal, Best M&A Deal, Most Innovative Deal (The Asset Triple A Awards Australia, 2009) • Best M&A Deal, Best Syndicated Loan (Asiamoney Deals of the Year Australia, 2009) • Best Arranger of Indonesian Loans, Most Innovative Structurer of LBOs, Asia Pacific Loan of the Year (EuroWeek Asia, 2009) • Best Crossing Network: Broker (The Asset Triple A Transactional Banking Awards, 2009) • Best Sovereign or Quasi-Sovereign Bond (EuroWeek Asia, 2009) • Best Electronic Trading Platform (Asia Asset Management, 2009) • Most Innovative Product/Service of the Year in Japan [Credit Suisse AES Pathfinder] (TradeTech Japan, 2009) • Best Algorithms, Best Smart Order Routing (Asian Investor, 2009) • Best Emerging Markets Bond House, Best Liability Management, Best Leveraged Buyout Deal (The Asset, 2009) IN THE NEWS October 2009: Barreling towards the fourth quarter Third-quarter results were strong again, particularly for the investment banking unit as it booked pre-tax income of CHF 1.75 billion on net revenue of CHF 5.05 billion. Overall, Credit Suisse booked net income of CHF 2.35 billion on core net revenue of CHF 8.92 billion. Strong results were largely attributed to the firm's differentiated investment banking strategy and a realigned platform. Continuing to shore up its risk positions, Credit Suisse also dropped its risk-weighted assets to US$137 billion. September 2009: Indian opportunities Reuters repoorted that Credit Suisse was pursuing a banking license in India. If granted approval from India's central bank, the license would further extend Credit Suisse's offerings in India into areas such as derivatives and foreign exchange. Credit Suisse already views India as one of its most important markets in Asia Pacific, given the country’s significant opportunities in private banking and investment banking. Previously, in July 2007, Credit Suisse was granted its merchant banking license, allowing it to provide a wide range of onshore underwriting and corporate finance services in India. Credit Suisse has set up offices in Mumbai's Worli neighborhood where the bank has been steadily growing its headcount, even through the financial crisis. And in 2008, the bank acquired a non-bank financial company (NBFC) in India, into which it has since injected US$203 million of capital. The NBFC enables Credit Suisse to provide its clients with funding support. September 2009: Get well soon The firm announced sad news in September 2009 as the CEO of investment banking, Paul Calello, was unexpectedly diagnosed with an illness, and began an intensive treatment program. In the interim, Eric Varvel, CEO for the EMEA region assumed the role of acting CEO, though Calello "will remain as involved in the business as his course of treatment process will allow," according to a Credit Suisse press release. And according to Credit Suisse CEO Brady Dougan, "Paul and Eric will consult closely, working together and with me to set the strategic direction of the investment bank." Customized for: vinh (
[email protected]) July 2009: Another solid quarter Credit Suisse reported overall net income of CHF 1.57 billion for the second quarter 2009. The investment banking unit saw pre-tax income of CHF 1.66 billion on net revenues of CHF 6.01 billion. On top of this, largely due to collaboration between private banking and investment banking on delivery of services to ultra-high-net-worth clients, collaboration revenues from the integrated bank were CHF 1.5 billion. 50 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Credit Suisse Group AG July 2009: Coming up big at the Euromoney Awards Credit Suisse won a number of top accolades at the 17th annual Euromoney Awards. Credit Suisse won the coveted Best Investment Bank for 2009 award and was named Best M&A House in Singapore and Best Foreign Investment Bank in Indonesia. According to Euromoney, “What is now becoming clear is that Credit Suisse took the pain in 2008 and is reaping the rewards in 2009. Its first-quarter 2009 earnings showed impressive momentum. The platform Credit Suisse now has stands it in very good stead for the years to come.” June 2009-July 2009: Expanding trading options in Australia and India Credit Suisse announced that its Advanced Execution Services (AES) unit had reached two milestones in expanding its services for clients. The first, in June 2009, was the launch of a wide range of algorithmic trading strategies for Indian equities. This was followed by the July 2009 announcement that AES had launched a block crossing service for Australian equity trading, enabling clients to place anonymous orders for large blocks of Australian stocks. June 2009: New co-heads in APAC and Greater China Two ex-UBS insiders, Ken Pang and Min Park, were appointed co-heads ofcCrediut Suisse’s equity derivatives and convertibles business for the Asia Pacific region. Pang will oversee trading, risk management and infrastructure development, while Park will oversee sales, distribution and structuring functions. Pang and Park will be based in Hong Kong and will report to Osama Abbasi, the head of equities for Asia Pacific. Credit Suisse also named Simon Yuan, formerly head of Merrill Lynch's China financial institutions group, as a managing director and as the co-head of its financial institutions Greater China team. Liping Zhang, the firm's China CEO, remarked, "Simon brings a wealth of experience and ideas to Credit Suisse, having been heavily involved with many high profile restructurings, capital raisings and cross-border M&As in the Chinese financial sector." May 2009: Prime Services gets a new APAC head In the Asia Pacific region, Credit Suisse's Prime Services business got a new head in Matt Pecot, who joined from UBS. Pecot has extensive experience in the prime services business, as well as 13 years' experience in Asia Pacific. Based in Hong Kong, Pecot will report to Osama Abbasi, the head of equities for Asia Pacific, and Philip Vasan, the global head of prime services and capital services. April 2009: A return to profitability Credit Suisse booked overall net income of CHF 2 billion for the first quarter 2009. The firm’s investment banking unit marked a return to significant profitability, raking in CHF 2.4 billion in pre-tax income. On top of that, market shares increased in key business areas, including global rates and foreign exchange, cash equities, prime services, and flow and corporate derivatives. April 2009: Position filled April 2009 saw the appointment of a new Credit Suisse Group chairman after Walter Kielholz stepped down in March 2009 and Hans-Ulrich Doerig was elected to the vacant position. Doerig has over 35 years of experience at Credit Suisse; in 2003, he was named vice chairman and head of the firm's risk committee. Doerig described his appointment as coming during "the midst of the biggest crisis since 1929," but in an interview, he quickly laid fears to rest about a sell-off of the investment banking division. "That would be totally the wrong thing to do, and would ultimately prove harmful for Switzerland. Banks wishing to differentiate themselves from the global competition in the future need an intact investment banking division. It was clear that the division needed partial restructuring. Together with old strengths such as reliability, prudence, predictability and performance, our three pillars mean we have a huge opportunity, which we must make the most of." Customized for: vinh (
[email protected]) February 2009: Tough year Credit Suisse Group wasn't immune from the turmoil that hit so many other financial institutions hard. It posted an annual net loss for 2008 of CHF 8.2 billion, with CHF 6.02 billion of that coming in the fourth quarter. The investment banking unit contributed a pretax loss of CHF 7.78 billion for the fourth quarter, including CHF 3.19 billion in write-downs on leveraged loans and structured products. For the year, the investment banking unit reported a net loss before taxes of CHF 13.85 billion. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 51 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Credit Suisse Group AG In total, Credit Suisse Group’s revenue for the year stood at some CHF 9.3 billion, down a whopping 76 percent versus its 2007 results. The group’s investment banking and asset management businesses saw big losses. December 2008: Not immune to the cuts As almost every big investment bank was forced to do in late 2007 and early 2008, Credit Suisse began handing out some pink slips in January 2008 due to the subprime mortgage meltdown. The firm cut about 500 investment banking positions, and a spokesman for Credit Suisse cited "market conditions and projected staffing levels required to meet client needs" as causes for the cuts. In October 2008, Credit Suisse confirmed it would purge another 500 jobs from its securities group and support roles. However, as it was clear that the economic crisis wasn't going anywhere soon, Credit Suisse announced in December 2008 that it would cut another 5,300 positions—or about 11 percent of its employees globally—with most cuts coming from its investment banking unit. Due largely to "adverse market conditions and risk reduction," Credit Suisse said it intended to reduce investment banking staff to 17,500 by the end of 2009, down from the 21,300 it employed in September 2008. The cost to Credit Suisse was booked as a restructuring charge of CHF 900 million, primarily on its fourth-quarter books. December 2008: Bonuses take a new shape Credit Suisse hit upon a novel idea to lessen its loss risk: using US$5 billion from illiquid securities such as leveraged loans and mortgagebacked debt (the type largely blamed for serving as the catalyst of the financial crisis) to pay its managing directors' and directors' annual bonuses in investment banking. The securities will be put into a vehicle called the “partner asset facility,” and senior investment bankers will be given shares in it. If the securities weaken in value, however, bonuses will be affected first. GETTING HIRED Hiring students and professionals Undergraduate students, university graduates and experienced professionals can learn more about employment opportunities through Credit Suisse's careers web site for the Asia Pacific region at www.credit-suisse.com/careers. The firm recruits at a number of universities in Australia, China, Hong Kong, India, Japan, Korea, and Singapore; it also recruits overseas in the U.S. and the U.K. On the careers web site, Credit Suisse hosts campus recruiting pages for analysts and associates in Asia Pacific, as well as separate campus recruiting pages for Australia and Japan (the latter in Japanese). Experienced professionals looking to make a lateral move in Asia Pacific can search postings (organized by location or job function) at the firm's career web site. Job functions include administration, asset management, audit and taxation, complex products support, corporate services and facilities management, equities, financial accounting and financial control, fixed income, human resources, information technology, investment banking, legal and compliance, marketing and communications, operations, private banking, product control and risk management. Develop and grow Credit Suisse recruits graduates across Asia Pacific, including in Hong Kong, Singapore, Tokyo, Seoul, Mumbai, Melbourne and Sydney. At both the analyst and associate levels, full-timers are hired across the bank in a number of different departments, including private banking, investment banking, alternative investments, shared services, operations and information technology. Customized for: vinh (
[email protected]) Credit Suisse’s full-time programs combine formal learning, on-the-job practice and personal coaching. The program includes technical and financial training, presentations from senior management, internal cross-divisional events, philanthropic and team-building events, and networking events with peers and Credit Suisse professionals. Throughout the training, graduates are exposed to senior managers, colleagues and peers across the bank. Graduates are also given early responsibility and face challenges from day one. Some business areas also host global training programs, which take place in New York, London or Zurich. Candidates should be in their final year of a bachelor's or master's degree for analyst positions, and an MBA or PhD degree for associate positions. Recruitment for full-time hires generally occurs from August to November across Asia Pacific, though it's usually from January to July in Australia. For more information, check out the Credit Suisse careers web site. 52 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Credit Suisse Group AG I know what you did last summer The Asia Pacific internship program, which generally lasts 10 weeks, gives participants an experience similar to that of the bank's first-year analysts or associates. Candidates should be in their penultimate/junior year of a bachelor's or master's degree for analyst positions, and in the first year of an MBA or PhD degree for associate positions. The first week of the internship focuses on induction and bespoke training in preparation for nine weeks of on-the-desk experience. Candidates should be in their penultimate or junior year and have an interest in building a career in the Asia Pacific region. Some qualities the firm looks for in internship candidates include strong motivation, creativity, solid communication skills (both verbal and written), computer literacy, intelligence and leadership. Once you have applied to Credit Suisse, your application will be reviewed by both campus recruiting and the business area you have chosen. If you are selected for an interview, it may take place face-to-face, by telephone or by video conference, but will always be conducted by a manager in the business. Most initial interviews are competency-based which focus on your experiences so far in skills such as teamwork, leadership, problem solving, communication and more. Some business areas only conduct interviews; these will be a combination of competency-based and technical. Some areas conduct assessment centers which may include exercises such as case studies, presentations and technical exams. In some locations/business areas, candidates will also be expected to complete online numerical and verbal reasoning tests as part of the application process. For Asia Pacific (excluding Australia) summer programs, recruitment generally runs from October to February. Meanwhile, recruitment for the Australian summer internships generally runs from March to July. For those with an MBA or advanced degree, a summer associate program is available as well. A winter analyst program is also open in Hong Kong and Singapore in the areas of investment banking, equities and fixed income. For consideration, candidates should complete an application on the Credit Suisse careers web site. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 53 PRESTIGE RANKING 8 UBS INVESTMENT BANK KEY COMPETITORS Citi Institutional Clients Group Credit Suisse Deutsche Bank Goldman Sachs Morgan Stanley Two International Finance Centre 52nd Floor 8 Finance Street Central, Hong Kong Phone: +852-2971-8888 Fax: +852-2971-8333 www.ibb.ubs.com PRIMARY LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • Japan • Singapore EMPLOYMENT CONTACT www.ubs.com/graduates BUSINESSES Equities Fixed Income, Currencies & Commodities Investment Banking THE STATS Employer Type: Business unit of UBS AG Chairman, UBS AG: Kaspar Villiger CEO, UBS AG: Oswald Grübel Co-CEOs, UBS Investment Bank: Alex Wilmot-Sitwell & Carsten Kengeter Chairman & CEO, UBS AG Asia Pacific: Chi-Won Yoon No. of Employees: 17,000 worldwide No. of Offices: Operations in 50 countries Customized for: vinh (
[email protected]) 54 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition UBS Investment Bank THE SCOOP The big Swiss UBS Investment Bank is one of the primary units of Swiss-based banking giant UBS AG, one of the world’s largest financial firms. Headquartered in Zurich and Basel, UBS AG underwent a major restructuring in August 2008; the Swiss giant is now comprised of a corporate center and four business divisions: Wealth Management & Swiss Bank, Wealth Management Americas, Global Asset Management and UBS Investment Bank. Worldwide, as of mid-2009, UBS AG employed more than 70,000 people; however, according to a March 2009 statement by the firm, "UBS expects to reduce the number of its employees to about 67,500 by 2010 in order to realize substantial cost savings in all areas." UBS employs around 9,000 in the Asia Pacific region, equivalent to about 13 percent of its total workforce. While staff numbers have fallen in other regions, those in Asia Pacific have been steadily rising (the region represented just 10 percent of the workforce in 2006). UBS operations in Asia Pacific are now headed up by Chi-Won Yoon, who took over as chairman and CEO for UBS AG in Asia Pacific in June 2009. UBS Investment Bank employs more than 15,000 people worldwide. (At its peak, in the third quarter of 2007, the investment bank employed 23,000.) Providing securities products and research in equities, fixed income, rates and foreign exchange, UBS Investment Bank also provides advisory services and access to the world's capital markets for corporate, institutional, intermediary and alternative asset management clients. Its current plans include sharpening its focus on client-driven growth, and further reducing its balance sheet and risk positions. Way back The current incarnation of UBS was formed in 1998 with the merger between the Union Bank of Switzerland and the Swiss Bank Corporation (SBC). These entities merged in 1998 to form UBS AG. SBC's history dates back to the 1870s; during the course of its international growth over more than a century, it had acquired a large number of foreign firms. One of these, the London-based S.G. Warburg Group, became SBC's investment banking division, SBC Warburg. (In 1997, SBC Warburg increased its presence in the U.S. through the acquisition of Dillon, Read & Co.) In 2000, UBS launched its initial public offering on the New York Stock Exchange, and bought New York-based PaineWebber for US$11.8 billion, further solidifying its presence in the U.S. A rebranding in 2003 brought all UBS business groups under one name and one umbrella. Tough times during financial crisis To say the least, UBS AG has had a rough ride during the financial crisis. As a result of serious losses stemming from subprime mortgages, it reorganized and shrank considerably throughout 2008 and the early part of 2009—by exiting businesses, divesting assets, internally restructuring and significantly cutting jobs. According to Bloomberg data, as of September 2009, UBS had eliminated more than 18,700 jobs in the two years since the financial crisis began. The draconian measures have been responses to staggering losses: For the fiscal year 2008, UBS AG's net operating loss was CHF 21.2 billion, following on the 2007 loss of CHF 5.2 billion. In 2008, UBS received CHF 6 billion in aid from the Swiss government; in 2009, the government sold the entire stake to institutional investors. UBS also transferred US$39.7 billion in illiquid securities and other positions to a fund owned and controlled by the Swiss National Bank. Shuffling the top of the deck in 2009 UBS has undergone a number of major changes at the top in 2009, taking on a new chairman, a new CEO and two new heads of the investment bank. In February, UBS announced that CEO Marcel Rohner had resigned from his post and that Oswald Grübel, an ex-Credit Suisse executive, would be taking over for him. Then, in March, less than a year after succeeding Marcel Ospel, UBS Chairman Peter Kurer was replaced by Kaspar Villiger, Switzerland’s former finance minister. And in April, UBS Investment Bank CEO Jerker Johansson resigned, just over a year after taking the position. The role was filled by co-CEOs Alex Wilmot-Sitwell and Carsten Kengeter. Customized for: vinh (
[email protected]) Awards and rankings • • • • Best Best Best Best Equity House in China (Euromoney, 2009) Equity House in Australia (Euromoney, 2009) Ideas and Innovative Equity Products (Asiamoney, 2009) Equity Derivatives House in Asia Pacific (Structured Products Magazine, 2009) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 55 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition UBS Investment Bank • • • • • • • • • Best M&A House in Australia (Euromoney, 2009) Best FIG House in Asia (FinanceAsia, 2008) Best Asia-Pacific Equity House (IFR Awards, 2003, 2005-2008) Best Investment Bank in Asia (Euromoney, 2008) Best Foreign Investment Bank in China (FinanceAsia, 2008) Best Foreign Investment Bank in Philippines (FinanceAsia, 2008) Best Equity House in Philippines (Euromoney, 2008) Best Joint Venture Investment Bank (China Securities Times, 2008) Most Influential IPO (China Securities Times, 2008) IN THE NEWS November 2009: "Wobbly" road to recovery UBS AG reported a third quarter 2009 loss of 564 million Swiss francs ($552.9 million), a far cry from the 283 million francs in net profit the firm booked in the same period a year earlier. The results were especially troubling because there were still significant investment outflows in the firm's private banking operations. However, according to UBS AG's CFO John Cryan, the firm is "definitely on the road to recovery, but it will be a wobbly road." Following the earnings release, UBS shares fell in value by more than 4 percent. August 2009: Swiss government ditches UBS stake, makes a bundle The government of Switzerland sold off its investment in UBS AG in August 2009, making a cool profit of CHF 1.2 billion (US$1.13 billion) on the transaction. The deal made the Swiss government the first in Europe to state that a recession-hit bank was healthy enough to have its state ownership sold. Less than a year earlier, Switzerland had given the firm CHF 6 billion (US$5.6 billion) as part of a rescue package that also involved the transfer of illiquid securities and positions to the Swiss National Bank. August 2009: Naming names An agreement was reached between the U.S. and Switzerland regarding a lawsuit that sought the names of U.S.-based UBS clients believed to have dodged taxes by storing money in Swiss bank accounts. Each government has initialed agreements and will be signing a final accord at a later time, according to a judge. Specific details of the agreement weren’t released, but tax lawyers said that they anticipate that UBS will ultimately reveal the information attached to about 4,500 accounts. The amount is only a fraction of the 52,000 clients that U.S. authorities originally sought. July 2009: Magnus to lead in Singapore and Malaysia UBS snagged Bank of America Merrill Lynch’s Keith Magnus to head its investment banking unit in Singapore and Malaysia. Magnus stepped into a newly-created position at UBS, which is trying to increase its investment banking coverage in the Asia Pacific region. Magbnus previously oversaw BofA Merrill Lynch’s investment banking operations in Singapore and Malaysia. Recently, Magnus’ experience in the region included advising on a US$1.28 billion rights issues for Singaporean real estate developer CapitaLand. June 2009: New Asia Pacific head Customized for: vinh (
[email protected]) Chi-Won Yoon took over as UBS' chairman and CEO for the Asia Pacific region, succeeding Rory Tapner, who left UBS after 25 years at the firm (he had held the top Asia Pacific post for five years). Yoon, who has been with UBS since 1997, 56 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition UBS Investment Bank was named the head of equities and head of fixed income, currencies and commodities for Asia Pacific earlier in 2009. May 2009: Wage increases intact UBS AG CEO Oswald Grübel confirmed that the firm would stick to its practice of paying market wages to its employees. This means that, following salary raises after taking government aid, UBS will be increasing top senior bankers’ salaries by up to 50 percent to avoid defections. The bank will pay out the bonuses over the course of three years. UBS—along with rivals Credit Suisse and Morgan Stanley—has also inserted “clawback provisions” into certain bankers’ compensation packages, which lets the bank retract payments from workers who do not meet specific goals. According to the firm, "Total compensation is linked to UBS's business objectives, and pay and incentive programs are designed to pay for performance." May 2009-July 2009: Retooling investments in China As summer 2009 kicked off, the Swiss bank was seen buying and selling a number of shares as it tried to increase both profits and assets across China. In July, it cut its shareholding in China Mengniu Dairy from 7.37 percent to 6.99 percent for US$14 million. The previous month had seen even more activity, with the sale of US$16.5 million worth of shares in Guangzhou R&F Property, taking the bank’s share down from 7.54 percent to 6.82 percent. UBS also cut its shareholdings in Maanshan Iron & Steel Company and Aluminum Corporation of China (Chinalco) in June. However, in May, it saw the merit of raising its stake in China Merchants Bank (CMB) from 6.97 percent to 7.12 percent at the cost of US$55.73 million. CMB is China’s sixth-largest commercial bank by assets and has over 500 branches in mainland China. April 2009: Goodbye, Jerker UBS AG announced that Jerker Johansson, the CEO of UBS Investment Bank, would be leaving the firm, just over a year after taking the position. UBS replaced Johansson with co-CEOs: Alex Wilmot-Sitwell, who was previously co-head of UBS’ global investment banking division and the chairman and CEO of UBS Europe; and Carsten Kengeter, who for seven months had served as joint global head of fixed income, currencies and commodities. April 2009: Big cuts, including more in Asia Pacific UBS AG stated at its annual general meeting that it would be reducing its workforce from 76,200 at the end of March 2009 to around 67,500 in 2010. Swiss publication Sonntag reported that marketing and support staff in Switzerland would bear the brunt of the cuts. According to UBS, the cuts “reflect the changed market conditions and reduced levels of business.” Following on the November 2008 cuts, as part of the restructuring moves, 3 percent of its Asia Pacific staff were being let go, according to a CNBC report. In Hong Kong, a UBS spokesman confirmed to CNBC that 240 wealth management jobs were being cut, including 100 in Singapore. During the financial crisis, Asia Pacific has been hit hard by a drop in the portfolios of high net-worth individuals (HNWIs). According to Merrill Lynch and Capgemini's "Asia Pacific Wealth Report 2009," HNWIs dropped by 14 percent in 2008, and lost over 20 percent of their overall wealth. Despite all this, UBS considers Asia a "strategic priority" and plans to continue to invest in the region—at the end of 2008, the firm managed about CHF 130 billion (US$115 billion) in assets in Asia. March 2009: Former Swiss finance minister becomes chairman Just days after the appointment of Oswald Grübel, UBS named a new chairman as well. Less than a year after succeeding Marcel Ospel in the position, it was announced that UBS Chairman Peter Kurer would be replaced, effective April 2009. The 68-year-old Kaspar Villiger, Switzerland’s former finance minister, succeeded him. Customized for: vinh (
[email protected]) February 2009: New CEO Grübel takes over UBS AG announced that its CEO Marcel Rohner had resigned from his post and Oswald Grübel, an ex-Credit Suisse executive, would be taking over for him. Grübel, who was co-CEO at Credit Suisse from 2003 to 2007, was largely responsible for turning that firm's fortunes around, and investors seemed to agree that Grübel would be able to do the same for UBS—on the news, the bank’s shares increased 9.7 percent in Zürich trading. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 57 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition UBS Investment Bank February 2009: Still struggling to shore up For the fiscal year 2008, UBS AG's net operating loss was CHF 21.2 billion, following on the 2007 loss of CHF 5.2 billion. In response to the losses, UBS announced plans to divide its wealth management business into two units: Wealth Management and Swiss Bank, and Wealth Management Americas. Additionally, UBS laid plans to cut 2,000 jobs in its investment banking unit by the end of 2009, leaving its employee count for that business at 15,000. (UBS said that it remained committed to the investment bank, but plans to refocus on Swiss banking and international management.) The new wave of reductions brings the firm’s total job cuts since October 2007 to 11,000. January 2009-February 2009: No more secrecy As the result of an inquiry brought by the U.S. Internal Revenue Service and the U.S. Justice Department, UBS AG agreed to pay a US$780 million fine and to name U.S. clients whom it had helped evade U.S. taxes by setting up and managing offshore accounts. In a statement, UBS AG Chairman Peter Kurer said, “We accept full responsibility for these improper activities.” The firm closed those accounts and agreed to release some 250 names (of the 19,000 clients who had been under investigation). However, following that, the U.S. government decided to file a suit against UBS (to be exact, the Internal Revenue Service issued a “John Doe” summons) in an attempt to secure the identities of 52,000 American customers who it believed were evading tax payments through offshore accounts with UBS (the payments evaded equaled an estimated US$100 billion annually in lost revenue for the U.S.). Under Swiss financial privacy laws, this information is protected from disclosure, and UBS filed its opposition to the enforcement in April 2009. By August 2009, the firm and the U.S. government came to a deal to stop the litigation going any further; UBS agreed to hand over the names of some of the wealthy Americans holding accounts with the Swiss bank. Although only 4,450 of the 52,000 American investors with UBS accounts were revealed to the U.S. government, it marked an unprecedented blow to Switzerland’s traditional bank secrecy rules. November 2008: The first to fall Asian casualties of the financial crisis came in November 2008 when media reports emerged that UBS was making 200 employees redundant from its Hong Kong office by February 2009. The bank also reported that it was looking to cut about 400 staff from the Asia Pacific region over the same period of time. GETTING HIRED Do your research As career sites go, the UBS site is straightforward and thorough, with all the necessary hints and tips to prepare a top-quality job application. Start by simply clicking onto the career link and follow the relevant path: Graduates and Interns, MBAs and Advanced Studies, or Professionals. Once in, select the Asia Pacific location and up pops a selection of current positions. Those interested in working within Asia Pacific should bear in mind that they are only allowed to apply for one position at a time. Above all else, UBS believes that doing the right research is key for those wanting to build strong foundations for the application process. Beyond doing your research, UBS recommends attending its university campus events in addition to non-university events, a list of which is given on its web site. Are you competent? Customized for: vinh (
[email protected]) So you’ve done the research, found a job that suits you—now what ? Well, the next thing to do is to create an account, select the relevant position, and fill out the application form. If you impress at this initial stage, you’ll be invited to take online tests that will assess your numerical ability and logical reasoning. Following this, candidates can expect a round of interviews conducted by business line managers. According to UBS, the purpose of this stage is to “evaluate your competencies against those required for the position you applied for.” The firm does this by competency-based questioning and further assessment tests to check out what it calls your “seven core competencies.” These include the ability to solve problems, make decisions with good judgment, communicate, plan and organize, generate new ideas, and work in a team, as well as demonstrating drive and commitment to the position. 58 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition UBS Investment Bank If your competencies are in order, you can expect one last stage at the company’s assessment center, which usually lasts half a day and includes exercises such as presentations and group discussions. UBS says this enables it “to appreciate further how your individual skills and competencies fit with our requirements.” Try before you buy For UBS Investment Bank, the firm hosts its UBS GTP-EXPLORE Graduate Program for aspiring young hires. Lasting 18 to 24 months, the program is designed to help grads transition from "early" to "mid-career" professionals. More information is available on the UBS careers site. Eight-week summer internship programs are also available in Asia Pacific; they run in Australia, China, Hong Kong, Japan and Singapore. Interns can expect to “be at the heart of everything that takes place on a day-to-day basis.” Look online in the careers section for any available positions. A few tips: If you fancy applying for internships in Australia, permanent residency status in the country is required, whereas in Asian locations, relevant language skills are "highly preferred." Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 59 PRESTIGE RANKING 9 CITI INSTITUTIONAL CLIENTS GROUP KEY COMPETITORS Deutsche Bank Goldman Sachs J.P. Morgan Morgan Stanley UBS 50/F Citibank Tower Citibank Plaza, 3 Garden Road Central, Hong Kong www.icg.citi.com LOCATIONS IN ASIA PACIFIC Australia • Bangladesh • Brunei • China • Guam • Hong Kong • India • Indonesia • Japan • Korea • Macau • Malaysia • New Zealand • Philippines • Singapore • Sri Lanka • Taiwan • Thailand • Vietnam PLUSES • “Global firm with endless opportunities” • “Scope of work on the international markets” BUSINESSES Citi Capital Advisors Citi Investment Research & Analysis Global Banking Global Markets Global Transaction Services MINUSES • “Very difficult to get promoted” • “No junior support” EMPLOYMENT CONTACT Graduate Recruitment: oncampus.citi.com Lateral Hiring: careers.citigroup.com THE STATS Employer Type: Subsidiary of Citigroup Inc. CEO, Citi: Vikram S. Pandit CEO, Institutional Clients Group: John Havens Revenue: US$91.81 billion (FYE 12/09)* Net Income: US-$1.6 billion* No. of Employees: 265,000 (worldwide)* No. of Offices: 7,500 (worldwide)* *Citigroup Inc. Customized for: vinh (
[email protected]) 60 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group THE SCOOP A changing Citi Parent Citigroup Inc. was rebranded as simply "Citi" back in 2007. For many years, the bank operated its businesses through four key areas: markets and banking, global consumer banking and global cards, global wealth management and alternative investments. In October 2007, Citi merged its markets and banking group (which housed its investment banking operations) with its alternative investments unit, creating an institutional clients group (ICG). Today, Citi’s ICG offers a full range of corporate and investment banking services, including treasury and trade solutions, securities and fund services, debt and equity capital markets, underwriting and advisory, corporate lending, private banking and institutional asset management. Globally, Citi serves over 200 million customer accounts in more than 100 countries and has over 265,000 employees worldwide. In January 2009, Citi restructured its businesses into two primary segments—Citicorp and Citi Holdings. consumer banking operations, both of which the group considers its "core Citi properties." Citi had traditionally been revered as the world’s largest financial services group, but the financial crisis has not been kind to this global giant. During the crisis, Citi has seen billions of dollars wiped off its market value, laid off nearly 100,000 employees worldwide since the start of 2008, received US$45 billion in assistance from the U.S. government and sold off some non-core assets in 2009—including its U.S. and Japanese brokerage arms. Still going strong in Asia Over the past several years, the Asia Pacific region has been one of the fastest-growing regions for Citi. In 2008, Citi’s ICG was hit hard as its North American unit lost over US$20 billion in net income. However, in Asia, ICG remained profitable, recording US$164 million in net income (though this figure was down 94 percent from 2007's figures of US$2.85 billion). Net revenue for Citi’s ICG in Asia remained strong at US$5.26 billion in 2008, but marked a 37 percent drop from 2007. Citi’s ICG, which operates in 18 markets in Asia Pacific, helped reopen Asia Pacific’s capital markets in 2009, underwriting the first IPO of the year (Hong Kong’s Real Gold), the first convertible bond (Korea’s SK Telecom), the first corporate bond (Korea’s Posco), the first rights issue (Singapore’s DBS), the first covered bond (Korea’s Kookmin Bank) and the first high-yield bond (Indonesia’s Matahari). Citi, the first U.S. bank to establish operations in Asia, has done business in the region for more than 100 years. It opened its first branch in Shanghai in 1902 through its predecessor company, the International Banking Corporation (IBC), and expanded to Hong Kong, India, Japan, the Philippines and Singapore in the same year. (In Japan, Citi has been involved in a joint venture with the Nikko Cordial Corporation since 1999; in October 2009, Nikko Citigroup Limited was renamed Citigroup Global Markets Japan.) Citi expanding further into Asia Pacific in the 1950s, 1960s and 1970s, launching operations in Australia, Brunei, Guam, Indonesia, Korea, Malaysia, New Zealand, Sri Lanka, Taiwan and Thailand. Today, in Asia, Citi’s ICG serves multinational organizations, local corporations and financial institutions, offering a range of products and services, including securities sales and trading, foreign exchange, investment banking, project finance, cash management, custody and syndicated loans. In July 2009, Euromoney named Citi the Best Bank in Asia for the 10th consecutive year; the publication also named Citi the Best Bank in Singapore, Best Cash Management in Asia Pacific and Best Hong Kong Equity House. Raising capital Citi found itself in the center of the subprime storm in 2007 and early 2008 with heavy losses related to subprime mortgages. In the fourth quarter of 2007, the firm announced its exposure to the mortgage market and write-downs of US$18.1 billion, which led to a net loss of US$9.8 billion for the quarter, the biggest quarterly loss in Citi's history. As a result, the firm joined other American companies to tap investments from sovereign wealth funds and foreign investors in order to bolster liquidity. Citi's cash came from a variety of different sources. In November 2007, the firm announced it would receive a cash infusion of US$7.5 billion from an Abu Dhabi sovereign wealth fund. In January 2008, the Government of Singapore Investment Corporation (GIC) pumped US$6.88 billion into the firm in exchange for a 4 percent stake. Capital Research Global Investors, Capital World Investors, the Kuwait Investment Authority, Saudi Arabia's Prince Alwaleed bin Talal, and Sanford Weill also contributed capital. Beyond that, Citi continued to raise liquidity as it received US$45 billion in October and November 2008 from the U.S. Treasury's Troubled Asset Relief Program (TARP) in an effort to restabilize the markets. The U.S. government is now Citi's largest shareholder, with a 34 percent Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 61 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group stake in the bank. At the end of the third quarter of 2009, Citi’s Tier-1 capital ratio, a key measure of financial strength, was 12.7 percent, among the highest in the industry. Big layoffs Citi laid off about 17,000 people in April 2007 in anticipation of subprime-related losses in the second half of the year. In January 2008, Citi announced it was cutting 4,200 jobs from its investment banking division in order to reduce costs. At the time, Citi said that its ultimate total number of layoffs could be close to 20,000 to 24,000, which, due to the firm's massive size, still only accounted for less than 10 percent of Citi's workforce. After four consecutive quarters of losses, Citi announced in November 2008 that it would be cutting an additional 52,000 jobs globally. According to The Wall Street Journal, at least 10,000 of the job cuts were expected to come from investment banking. Further reductions have left Citi with a workforce of around 265,000 employees globally as of December 2009. Pandit's keys to the Citi Vikram Pandit became the CEO of Citi in December 2007, replacing interim CEO Sir Winfried Bischoff. Pandit succeeded Chuck Prince (Charles O. Prince III), who had taken his post in 2003. To say the least, Pandit's job has not been easy, taking the helm of the world’s largest banking and financial services group during the worst financial crisis in modern times. Pandit joined Citi just after the global banking group purchased Old Lane Partners, the hedge fund that Pandit set up after leaving Morgan Stanley. (Unfortunately for Old Lane, after two years of “flat” returns that caused US$200 million of write-downs in the first quarter of 2008, Citi decided to close down the hedge fund.) At the time of Pandit’s appointment, industry commentators noted that in the wake of the losses the group was hit with under Prince, Pandit would have to address the firm’s risk management practices to win back the confidence of staff and investors. Although Pandit lowered the bank’s costs and allowed reinvestments in growth in 2007, the following years were not so peachy. In 2008, the firm received a U.S. Federal Reserve bailout of US$45 billion, and in 2009, the bank reported a loss of US$1.6 billion. However, the completion of an exchange offer in the third quarter 2009 resulted in an additional US$64 billion of tier-1 common equity and US$60 billion of tangible common equity. Citi’s Tier-1 Common and TCE ratios improved to 10.3 percent and 9.1 percent, respectively, at the end of the third quarter, placing it among the strongest in the industry. Awards and rankings Asiamoney 2009 FX Client Poll • Best for Overall FX Services—China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore and Thailand • Best for Innovative FX Products and Structured Ideas—Australia, China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore and Thailand • Best FX Prime Brokerage Services—China, India, Indonesia, Korea, Malaysia, Philippines, Singapore and Thailand • Best Single-Bank Electronic Trading Platform—Australia, China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand and Vietnam Asiamoney 2009 FX Poll • Best for Overall FX Services (as voted by corporates) Asiamoney 2009 Poll of the Polls Customized for: vinh (
[email protected]) • Overall Best FX Banks in Asia: 1991-2008 • Best Overall Cash Management Banks in Asia (as voted by corporates): 1999-2008 Asiamoney 2009 Structured Products Poll • Best Overall Provider for Structured Commodity Products • Structured Currency Products: Best Overall Provider for G3 Denominated Products • Structured Currency Products: Best Overall Provider for Local Currency Products 62 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group Asia Risk Corporate Survey 2009 • • • • • • Currency Derivatives: Vanilla Hedging—No. 1 in Indian Rupee, Philippine Peso, Thai Baht Currency Derivatives: Structured Hedging—No. 1 in Indian Rupee Currency Derivatives: Yield Enhancement—No. 1 in G7 ex-Yen Interest Rate Derivatives—No. 1 in Thai Baht Structured Hedging—No. 1 in G7 ex-Yen and No. 1 in Indian Rupee Yield Enhancement—No. 1 in Asia ex-Japan The Asset Triple A Investment Awards 2009 • Best Commodities Derivatives House—Corporate • Best Local Currency Structured Product, India • Best Private Bank, Malaysia Euromoney 2009 Awards for Excellence • • • • Best Best Best Best Bank in Asia (10 years in a row) Cash Management Bank in Asia Equity House in Hong Kong Bank in Singapore FinanceAsia 2009 Country Awards for Achievement • Best Foreign Investment Bank in India (three consecutive years) Institutional Investor Asia Best Sales Team 2009 • Best in Hong Kong • Best in Singapore IN THE NEWS October 2009: Jewel in the crown Citi’s Asia Pacific business has been described as the "jewel in the crown," and its results fpr the third quarter 2009 proved why. Net income for the banking giant in the region stood at US$845 million for the quarter, the largest net profit result for the period for any region in which Citi operates. "Asia Pacific is a credit-tested durable business," said Asia Pacific co-CEO Stephen Bird in a statement. "China lies at the very heart of Citi's Asia Pacific priorities." Citi's business on the Chinese mainland, Taiwan and Hong Kong contributed to about one-third of Citi's overall business in the region. July 2009-October 2009: Sayonara, Nikko In early 2007, Citi announced its intentions to acquire 100 percent of Nikko Cordial's brokerage business, Nikko Cordial Securities, as part of the plan for Citi's expansion in Japan. By the end of the year, the deal was completed, with Citi paying US$13.4 billion. However, the tie-up with Nikko Cordial Securities was extremely short-lived, as Citi did a complete reversal on its expansion plans in Japan. In January 2009, Citi announced plans to focus on core assets in retail banking, taking a step back from asset management and brokerage services. CEO Vikram Pandit said that the firm is “moving extremely fast” on asset sales. The latest sale came after U.S. regulators performed a "stress test" and advised Citi to improve its capital base by US$5.5 billion. First, Citi sold its Japanese asset management arm, Nikko Asset Management, to Sumitomo Trust for US$795 million in July 2009. The deal created one of the largest asset management groups in Japan. Then, in October 2009, a subsidiary of Japan-based Nomura Holdings, Nomura Trust & Banking, successfully purchased NikkoCiti Trust and Banking Corporation for US$212 million, with Citi’s ICG advising on the deal. Following that, Citi inked a deal with Japanese banking giant Sumitomo Mitsui Financial Group (SMFG) to sell Nikko Cordial Securities for US$8.7 billion—selling it at a loss of US$4.7 billion, less than a year and a half after buying out the securities firm. The sale was completed in October 2009, the same month that Citi's joint venture with Nikko Cordial, Nikko Citigroup Limited, was renamed Citigroup Global Markets Japan. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 63 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group September 2009: Gupta hits the road, takes over DBS Piyush Gupta, Citi's CEO for Southeast Asia and the Pacific region, left after 27 years at Citi to take the CEO spot at Singapore-based DBS Group. Gupta took over at DBS for Richard Stanley (formerly Citi's CEO for China), who died of complications from leukemia in April 2009. August 2009: Head of FIG leaves for Nomura Following on the heels of former Asia Pacific CEO Ajay Banga's exit, one of his top appointments also left Citi. Dan McNamara, one of Citi's most senior investment bankers in the region, tendered his resignation in August 2009. McNamara had been serving as Citi's head of its financial institutions group (FIG) in Asia Pacific and was formerly the co-head of Asia Pacific investment banking. McNamara moved over to Nomura Holdings, where he became the head of financial institutions group investment banking for Asia Pacific (excluding Japan) and cohead of corporate finance for Asia, according to FinanceAsia. July 2009: Euromoney names Citi the best in Asia Financial publication Euromoney named Citi the Best Bank in Asia in July 2009 for the 10th consecutive year. Citi also nabbed Best Bank in Singapore, Best Cash Management in Asia Pacific and Best Hong Kong Equity House. Commenting on the field day for Citi, Euromoney explained, "Citi is still the region's largest, most complete international bank. During the Euromoney awards period, no other institution offered clients the same breadth of products across such a wide swath of Asia. The firm's cash management service is unsurpassed, and in Singapore it competes with, and even surpasses, the best local institutions to become the country's top bank." July 2009: Continuing to look up For the second quarter 2009, Citigroup posted a US$4.28 billion profit compared with a loss of US$2.5 billion for the second quarter 2008. Revenue, meanwhile, experienced a 71 percent boost to US$29.97 billion. However, the news wasn’t all positive. Citi’s securities and investment banking units posted a 7 percent decrease, and Citi cut 30,000 jobs during the quarter. June 2009-July 2009: Banga goes to Mastercard, powers divided in three In perhaps the most significant move affecting the Asia Pacific region in recent years, Citi Asia Pacific CEO Ajay Banga left in June 2009 to become second-in-command at credit card giant Mastercard (as its president and chief operating officer). Banga, who had been with Citi since 1996, had served in the Asia Pacific CEO position for just over a year, having taken the newly created post in April 2008. Powers for the Asia Pacific CEO position were divided in three in July 2009. Shengman Zhang was named the chairman for Asia Pacific, while Shirish Apte and Stephen Bird were named co-CEOs for the region. Zhang will be primarily responsible for Citi's relationships with clients, regulators, government officials and employees across the region. Meanwhile, Apte will oversee South Asia, while Bird will continue to oversee North Asia, and the two will collaborate on overall performance, strategy and execution in the Asia Pacific region. April 2009: Good news on the earnings front Citigroup booked US$1.6 billion in net income for the first quarter of 2009, concluding five consecutive quarters of losses (including a US$5.11 billion loss in the first quarter of 2008). Revenue, meanwhile, skyrocketed to US$24.8 billion, a 99 percent increase versus the first quarter of 2008. The positive numbers were propelled by increased fixed income trading revenue, a new accounting rule letting Citi take a one-time gain of US$2.5 billion on its derivative positions and lower costs—Citi had cut operating expenses by 23 percent in the previous 12 months and its headcount by 13,000 since the beginning of 2009. Customized for: vinh (
[email protected]) February 2009: Dollar days Citigroup CEO Vikram Pandit said that he had offered to take a US$1 salary and no bonus until the bank gets back on solid financial ground, noting that he understands “the new reality” and “will make sure Citi gets it as well.” The announcement came as U.S. President Barack Obama and other lawmakers slammed Citi and other banks for giving exorbitant year-end bonus payments to top executives after accepting federal bailout funding. 64 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group February 2009: TARP spending breakdown Citi posted its initial progress report regarding its use of the funds from the U.S. government’s Troubled Asset Relief Program (TARP). During the fourth quarter of 2008, of the US$45 billion it received, Citi said it had lent US$36.5 billion, including US$1 billion in student loans and US$2.5 billion in business and personal loans. Citi also increased credit lines, opened new credit card accounts and spent US$27.5 billion to buy mortgages in the secondary market during the last three months of 2008. Also in February, the U.S. Treasury boosted its stake in Citi from 8 percent to 36 percent, converting US$25 billion of its preferred stock into common equity. The move freed up some much needed capital for Citi—the bank doesn’t have to pay dividends on the common stock unlike it did on the preferred. It also significantly diluted existing shareholders’ stake in Citi by nearly 75 percent. According to Citi CEO Vikram Pandit in a statement, the swap “has one goal: to increase our tangible common equity.” Pandit added, “While we believe Tier 1 capital remains the most important measure of the financial strength of banks, we recognize that the markets also view tangible common equity as an important measure.” Coinciding with the announcement, Citi agreed to make several changes, including changing the makeup of its board to include a majority of independent directors. January 2009: Divesting U.S. brokerage business over time Citi agreed to combine its Smith Barney brokerage unit with U.S.-based Morgan Stanley’s brokerage division, in effect selling a 51 percent majority stake in the joint venture for US$2.7 billion. Morgan Stanley is expected to acquire full control of the venture, named Morgan Stanley Smith Barney, in phases over the next five years. January 2009: Divide and conquer? Upon the announcement of its financial results for the year, Citi revealed that it was splitting into two operating units, Citicorp and Citi Holdings Inc. The former would continue to provide traditional retail and investment banking services, while the latter would oversee what remained of the group’s high-risk investments (many had already been sold off). Citi itself remained as the parent company, but potential spin offs and mergers from either of the units were not ruled out as possibilities. In fact, the two operating units were divided so that Citicorp remained the core bank, while Citi Holdings encompassed the saleable assets. Along with the restructuring, Citi announced its fifth consecutive quarterly loss, as it booked a loss of US$8.29 billion for the fourth quarter of 2008. December 2008: Top of the tables Citi is one of the leading investment banks in the world, and each year, it ranks in the top 10 of several important investment banking league tables. For 2008, according to Thomson Reuters, Citi ranked No. 3 in worldwide announced M&A deal volume, working on 343 deals worth a total of US$705 billion. Equally as impressive were Citi’s standings on the debt and equity charts. In 2008, the bank ranked No. 3 in worldwide debt and equity issues, raising US$309 billion worth of securities. It was also the No. 3 issuer of worldwide equity and equity-related securities, the No. 3 issuer of global IPOs and the No. 4 issuer of global common stock. Citi scored numerous top 10 rankings on Thomson Reuters’ fixed income tables: global debt (No. 4), global mortgage-backed securities (No. 7), global asset-backed securities (No.2), international bonds (No. 4) and international emerging market bonds (No. 2), among others. November 2008: Deeper cuts After four consecutive quarters of losses, Citigroup announced it would be cutting an additional 52,000 jobs (in addition to the 23,000 it had already sacked before the announcement). The planned cuts were blamed on the ongoing financial crisis and global credit conditions. Cuts are expected to come from attrition, the sale of various units and assets, and outright layoffs. According to The Wall Street Journal, at least 10,000 of the job cuts are expected to come from investment banking. In a good sign for Asia compared to other regions for Citi, cuts were expected to be significantly lower. Reuters reported that, in Singapore, cuts would be less than 300, with a small number of positions cut in Australia as well. An estimated 150 job cuts in Asia (excluding Japan) were reported to come in wealth management, with about 90 of those coming from Singapore and Hong Kong. The Associated Press reported that 1,000 jobs would be cut from Citi's brokerage unit in Japan. On a more positive note, the AP also reported that Citi would be expanding its workforce and hiring more workers in the Philippines, with the intent of setting up a regional call center hub. 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[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 65 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group November 2008: Nayar heads to KKR, Robinson takes over South Asia Sanjay Nayar, Citi's head of the South Asia cluster, left his post to join the Indian unit of private equity firm Kohlberg Kravis Roberts & Co. (KKR). Nayar had been at Citi in various roles for 23 years, and called the decision a personal one. Citi Asia Pacific CEO Ajay Banga remarked, "Sanjay has had a distinguished career at Citi as an international manager, having held senior positions in New York and London. He has made an immense contribution to establishing Citi as the leading financial services franchise in India and throughout Southeast Asia." In the interim, Nayar was replaced by Mark Robinson, who had been serving as Citi's head of Russian operations. Robinson has been with Citi for 24 years, primarily in emerging markets. October 2008-November 2008: Bailout from TARP Citi received US$25 billion in October 2008 from the U.S. Treasury's Troubled Asset Relief Program (TARP) in an effort to recapitalize the markets. The following month, in November 2008, Citi received a further US$20 billion, bringing the grand total of bailout money to US$45 billion and effectively making the U.S. government its largest shareholder (now with a 36 percent stake in the firm). With the injection, the U.S. followed in the footsteps of some European countries, which announced similar moves designed to help thaw their credit markets. October 2008: Denying Goldman Citigroup CEO Vikram Pandit was approached by Goldman Sachs CEO Lloyd Blankfein regarding the possibility of a merger, soon after Goldman received approval to become a bank holding company in September 2008. According to the Financial Times, Citi roundly rejected the proposal, which would have been structured as a Citi takeover and would have likely led to thousands of job cuts in both companies' investment banking units. Citi may also have decided that it didn't need another securities group, the FT speculated. September 2008: Krawcheck walks Sallie Krawcheck, who headed up Citi's wealth management arm since 2004, was reported to be leaving the firm, according to The Wall Street Journal. Krawcheck's exit follows the departure of other high-level Citi employees (such as investment banking co-CEO Michael Klein) who have left in the summer of 2008. Meanwhile, the company's wealth management group is also facing reorganization, moving to be part of Citi's ICG unit. Michael Corbat, who currently heads up the corporate and commercial bank within the firm's investment banking unit, will be taking over Krawcheck's position. August 2008: Four Asia Pacific clusters Citi's Asia Pacific businesses were restructured into four geographic clusters—Japan, North Asia (China, Hong Kong, Korea and Taiwan), South Asia (Bangladesh, India and Sri Lanka), and South East Asia Pacific (Australia, New Zealand, Guam and the ASEAN countries of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand and Vietnam). Upon the announcement, CEOs were appointed for each cluster. Two CEOs continued in their roles (Doug Peterson for Japan and Sanjay Nayar for South Asia), and two new CEOs were appointed (Stephen Bird for North Asia, and Piyush Gupta for South East Asia Pacific). For the first time, the regional heads will be responsible for all Citigroup's business within their geographic areas. Previously, Citi's businesses in Asia were led by heads of its ICG, global wealth management and consumer banking units. GETTING HIRED Customized for: vinh (
[email protected]) Trying to find a fit Because "cultural fit is important," Citi is "highly selective." As one experienced analyst puts it, "Less than 1 percent of applicants will get formal interviews with MDs, and a fraction will get an offer." Respondents report anywhere from three to seven rounds during the interview process. A source in Mumbai reflects, "There were multiple rounds of interviews held, and I was really grilled on the technical knowledge." Yet another source remembers being asked "about the level of commitment and also in terms of general knowledge, such as past experiences of failures and successes, investment history, knowledge of the markets, background and decision methodology." Recruiters are looking for "people with the right skill set" as well as personality; recruiting volume "varies depending on market conditions." A source in Mumbai says the office often turns to "the top b-schools in India," and a Singapore insider confirms that Citi looks to "top schools in every country we are in," though "candidates from Ivy League colleges and top schools from Europe and Australia may be referred as well." 66 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group For graduates, Citi’s ICG careers web site at oncampus.citi.com includes an up-to-date recruiting calendar. Candidates from around the world can log on and submit their resumes through the online application process, which opens each autumn. Experienced hires looking for positions should check out careers.citigroup.com. Internships a great way in Citi’s ICG “offers summer internships,” and these are “a very good way of getting a foot in the door if you are seeking employment.” This is mainly due to the fact that “most full-time hires go through this process” before being offered a job—some staffers even claim that, thanks to the economic crisis, the firm now primarily looks to employ graduate hires who go through this system. Those who have gone through the process say it's a great way to find out if Citi is a good match for you. "I find it very useful for both the company to get to know you as a person, and for you to find out whether there's a cultural fit between you and the company. An internship is like a 10-week interview, and it's very important to perform well in those ten weeks to secure a return offer," one source offers. To land the internship, candidates generally undergo “four rounds of interviews” during what insiders call a “Super Day.” “I was interviewed by a person from HR, two associates and a vice president. Questions varied between technical and behavioral, depending on the interviewer,” a source tells us. Going into more depth on the process, a colleague says, “Questions were asked about my level of commitment and also in terms of general knowledge. Examples included past experiences of failures and successes, investment history, knowledge of markets, background and decision methodology.” Those lucky enough to secure themselves a place on the program can expect to be helping “VPs and MDs with all kinds of work.” “I was helping the sales people with their day-to-day presentations and pricings,” explains one contact. Another who “interned with the equity derivatives desk and mainly worked with traders” says, “I learned about the various trading strategies the desk was involved with, and was asked to make a few pricing sheets for options trading.” Yet another says, "During my internship, I didn't have much opportunity to work on quantitative work; most of the time I worked on PowerPoint and Word documents. But the experience was great. I gained a lot of exposure and picked up a lot of skills—not only hard skills but also soft ones, such as how to handle pressure, how to multi-task and how to pay attention to detail." According to survey respondents, internships are “not that much different from full-time jobs” and are therefore a great way to prepare for a long-term position at Citi ICG. OUR SURVEY SAYS Friendly and goal-oriented When it comes to the pros at Citi ICG, insiders say that it is “culturally diverse, meritocratic, based on mutual respect and competitive, with very high standards,” though some also feel that it is a bit “politicized and bureaucratic.” The firm has, according to one contact, a “typical American company culture,” meaning that people there are “very friendly” but also very “goal-oriented.” Another insider says the ICG is “very supportive of personal lifestyles outside of the work environment.” Of course, the culture also “depends on which team you are in and what kind of colleagues you are working with.” But, on the whole, insiders give the thumbs-up when asked about their work environment. “Peers are very helpful, and internal communications are open, prompt and candid. We have a very strong teamwork environment, and have a strong sense of information sharing,” explains a source. "Respect is fundamental" We are told that “respect is fundamental,” and this extend to relations between bankers and their managers. “The managers I work with are very nice, helpful and reasonable,” says one insider, while a colleague says that relationships consist of “openness” and allow an “easy flow of information.” Relationships are always dependent on “the team and their culture.” And as one contact explains, “Some teams are very open, without much hierarchy, while some teams are just the opposite.” On the whole, Citi’s ICG insiders give high marks to teamwork. This teamwork is said to extend to the upper echelons of the company. “At Citi, seniors are very approachable, and VPs sit down and go through models with me step-by-step. I don’t think you would find this kind of help in other banks,” says a respondent. “People are fun to hang out with outside of work, too. You have to like the people that you’re working with; otherwise everyday would be tough, especially if you need to spend over 12 hours in the office.” However, at the end of the day, Citi’s ICG is still an investment bank, and insiders admit that, like most firms in the industry, the work is still “tough, ruthless and demanding of a lot of personal time.” Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 67 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citi Insitutional Clients Group Standard salaries Insiders say their hours at Citi ICG average between 70 to 80 a week, with “about 15 hours on weekdays and five hours on a Saturday.” That said, some say they work substantially longer, clocking in over “100 hours a week.” However, one source explains, “Hours-wise, it’s much better than when I was with the firm over the summer of 2007.” Moneywise, bankers receive salaries that are described as the “market average.” One staffer tells us that, “given this year’s business performance, I expect the base salary and expected bonus to perhaps be below the market average.” In addition to base salaries and bonuses, the firm also provides staff with “housing allowances” and “rotation schemes to other geographies.” New York, New York Training can involve a bit of travel, made up of “five weeks of training in New York before joining the company as a full-time employee.” Says one source, “I had two weeks of accounting training, two weeks of modeling training by an outside company, and then one week of companyspecific modeling and rules and regulations training. The training was very useful and prepared me well for the job ahead.” Unfortunately, according to a Hong Kong source, sales and trading trainees generally don’t get the same overseas training opportunities in New York or London, sticking with “training in Asia,” which is, though, described as "quality." Customized for: vinh (
[email protected]) 68 © 2009 Vault.com Inc. PRESTIGE RANKING 10 BARCLAYS CAPITAL KEY COMPETITORS Deutsche Bank Goldman Sachs J.P. Morgan UBS Hong Kong Regional Headquarters 42/F Citibank Tower 3 Garden Road Central, Hong Kong Phone: +852-2903-2000 Fax: +852-2903-2999 www.barcap.com PLUSES LOCATIONS (AP) Australia • China • Hong Kong • India • Indonesia • Japan • Korea • Malaysia • Philippines (representative office) • Singapore • Taiwan • Thailand • “Meritocracy” • “Good training program” • “Internal mobility encouraged” MINUSES CLIENT OFFERINGS Barclays Capital Live • BARX • BNRI • Distribution • Global Markets • Investment Banking • Private Equity • Research • “The stress to perform well” • Graduates limited to specific desks initially • “Restrictions on stock trading” THE STATS Employer Type: Division of Barclays PLC Ticker Symbol: BARC (LSE), BCS (NYSE), 8642 (TYO) Barclays PLC Chief Executive: John Varley Barclays PLC Chairman: Marcus Agius Barclays PLC President: Robert Diamond Jr. Barclays Capital President: Jerry del Missier Barclays Asia Chairman & CEO: Robert Morrice Barclays Capital Net Income: £2.8 billion (FYE 12/08) No. of Employees: 20,000 worldwide No. of Offices: Offices in 33 countries EMPLOYMENT CONTACT www.barcap.com/campusrecruitment Customized for: vinh (
[email protected]) 69 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Barclays Capital THE SCOOP Global reach Barclays Capital is the investment banking arm of Barclays PLC, a global bank with more than £1.5 trillion of assets on its balance sheet and 49 million customers worldwide. Barclays has two business clusters: global retail banking, and corporate and investment banking and wealth management. The latter comprises Barclays Commercial Bank, Barclays Wealth and Barclays Capital. Globally, Barclays Capital has offices in 33 countries and over 20,000 employees—a number which has increased since the acquisition of Lehman Brothers' North American investment banking and capital markets divisions, just one day after the U.S. firm filed for bankruptcy. In Asia Pacific, Barclays Capital employs more than 4,000, and that's also been increasing—the headcount has grown over 50 percent in the last several years. With regional hubs located in Hong Kong, Singapore and Tokyo, Barclays Capital provides large corporations, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. The firm offers services to both issuer and investor clients, and its product suite includes commodities, emerging markets, equities, fixed income, foreign exchange, prime services, strategic portfolio and liquidity management and treasury. Though its investment banking roots began in the 1980s, Barclays Capital was officially created in 1997 to provide financing and risk management solutions to corporate, government and institutional clients around the world. Although it's younger than many of its peers, Barclays Capital, thanks to its relationship with its parent firm, has grown at an astonishing rate and today is one of the world’s leading investment banks. Growth spurt While Barclays PLC traces its roots to late 17th-century London, Barclays Capital grew out of its parent company's continuing global expansion in the 1980s and the founding of an investment management division in 1986 that was initially named BZW Investment Management. With eyes on the global market, investment banking services were extended to Asia Pacific. And in 1995, Barclays Bank PLC purchased U.S.Japanese joint venture fund manager Wells Fargo Nikko Investment Advisers and merged it with BZW, creating Barclays Global Investors. However, in 1997, parts of BZW were sold off—Credit Suisse First Boston purchased the European and Asian equities and M&A advisory businesses, and ABN AMRO bought the Australian and New Zealand operations. The remaining pieces of BZW were rebranded as Barclays Capital in 1997. Barclays Capital underwent another global push in the late 1990s and early 2000s. And in recent years, the firm has increased the range of its investment banking activities to include mortgage-backed securities, equity products, commodities and derivative products, across all asset classes. Over the last few years, Barclays PLC has also increased its position in Asia, thanks in part to investments from two major state-run shareholders in the region. In 2007, Singapore's state-run investment firm Temasek Holdings and China Development Bank (CDB) became major shareholders of Barclays Plc with a 3.6 billion investment. (Temasek divested its holding in early 2009.) CDB and Barclays have since formed a commodities strategic alliance. Big write-downs, but still on top In a very challenging 2008, Barclays Capital saw its profits before tax drop by 44 percent to £1.3 billion. (The annual results included a gain on the acquisition of Lehman Brothers businesses of £2.3 billion.) Overall, total income was down 27 percent to £5.2 billion, while net trading income decreased 60 percent to £1.5 billion, mirroring write-downs in the credit market and weaker performance in credit products and equities. Customized for: vinh (
[email protected]) However, bucking the trend of falling headcounts, Barclays Capital actually increased its headcount, although the bulk of additions were the direct result of absorbing Lehman's staff in North America. The acquisition initially added about 10,000 staff before reductions were made in the fourth quarter when integration of the U.S. businesses was completed. Awards and rankings • Wealth Management House of the Year (AsiaRisk Annual Awards, 2009) • Currency Derivatives House of the Year (AsiaRisk Annual Awards, 2008) 70 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Barclays Capital • Best FX House, Best Commodities Structured Product: CORALS (FinanceAsia Structured Products Awards, 2009) • Best FX and Commodities House (FinanceAsia Structured Products Awards, 2008) • Best Commodities Derivatives House, Best Local Currency Structured Product: CORALS (The Asset Triple A Investment Awards, 2009) • Best Structured Products House: Retail, Best Commodities Structured Product: Global Commodities Delta Fund (The Asset Derivatives & Structured Products Awards, 2008) • Fixed Income Research Poll—No. 1 overall (FinanceAsia,2009) • FX Poll—No. 1 Single-bank Electronic Trading (BARX), as voted by financial institutions; Best Single-bank Electronic Trading Platform in India; Best Single-bank Electronic Trading Platform in Taiwan (Asiamoney, 2009) • Institutional Derivative User Survey—No. 2 overall, No. 1 in Credit and No. 2 in Equity, FX and Interest Rates (AsiaRisk, 2009) • Commodity Derivatives Survey—No. 3 overall, No. 1 in Precious Metals, No. 2 in Base Metals, No. 3 in Structured Products, No. 3 in Emissions, No. 4 in Agriculture, No. 4 in Crude Oil & Refined Products, No. 5 in Natural Gas (AsiaRisk, 2009) • FX Poll—No. 3 in Asia Pacific by volume (Euromoney, 2007-2009) • Japan FX Poll—E-trading Single-bank Platform (BARX) (Euromoney, 2006-2008) IN THE NEWS September 2009: New APAC heads for I-banking and prime services Barclays Capital announced that it had named a new head of investment banking for the Asia Pacific region. Matthew Ginsburg took over the role after previously serving in the same position at Morgan Stanley; he will be based in Hong Kong. Ginsburg joined Morgan Stanley in Asia in 1996, serving in a variety of roles, and was previously at First Boston in New York, Tokyo and Hong Kong. Barclays Capital also named a new Asia Pacific head for its prime services division. Ryan Bacher was hired from Deutsche Bank, where he spent 11 years in senior roles in prime finance and prime brokerage. Bacher will be based in Hong Kong, and will oversee prime services offerings such as equities financing, fixed income financing, futures and Barclays Capital's multi-asset class prime brokerage platform. August 2009: Get live Barclays Capital introduced its newest web-based client portal, Barclays Capital Live, in August 2009. Providing a platform with access to research, indices, analytics, reporting tools and electronic trading, the global launch of Barclays Capital Live aims to give clients access to the firm's breadth of knowledge, as well as building on the products available from the Lehman Brothers acquisition in North America. July 2009: Greater China head is here One of the most significant senior appointments in recent years, former ABN AMRO chairman for China, Zhi Zhong Qiu, was named to dual roles at Barclays Capital: vice chairman for Asia Pacific and Greater China chairman—a newly-created role. Based in Hong Kong, Qiu will oversee the development and management of senior client relationships, and provide coverage for financial institutions, government agencies and corporates looking for advisory, capital raising and risk management, particularly regarding cross-border transactions. Customized for: vinh (
[email protected]) June 2009-July 2009: Bulking up in power, forex and Japan Profits for the first half of 2009 doubled compared to the same period in 2008, increasing to £1.05 billion from £524 million. The strong financial results meant that Barclays Capital was one of only a few investment banks in the region going on a hiring spree at a time when many were struggling to retain top talent. In June, Barclays Capital hired Jim Chapman and a five-member team away from Bank of America Merrill Lynch to head up a newly-created power and utilities investment banking team for Asia excluding Japan. Chapman formerly headed up power banking for the region at Bank of America Merrill Lynch; prior to that, he and his team worked for Lehman Brothers. The team will oversee all power and utility-related investment banking operations for the region, including mergers and acquisitions, debt and equity financing, and risk-solution transactions. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 71 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Barclays Capital In July 2009, in moves to bulk up its foreign exchange businesses in Asia, Barclays Capital named a number of senior hires, including Ivan Ferraroni, formerly Royal Bank of Scotland’s head of FX sales and trading in Tokyo, as head of Asia FX bank sales. Ferraroni will be based in Singapore and joins other new appointments on the Asia Pacific forex team, including Eric Schatz, who was named head of foreign exchange for Japan. In addition, Toshimasa Fujii was hired from the Japanese operations of U.S.-based forex firm Currenex to become a director of foreign exchange sales in Tokyo. And Gaurav Tholia joined Barclays Capital's Singapore office from J.P. Morgan, taking on the role of vice president in charge of foreign exchange derivatives sales to banks and private banks in Asia excluding Japan. Barclays Capital also announced in July 2009 that it had increased its overall headcount in Japan by about 200, bringing the total to about 750, as part of an overall strategy to derive 50 percent of its revenue from outside the U.K. President Bob Diamond revealed that the bank planned to hire up to as many as 1,000 people by the end of 2009, with most of the new hires coming Asia. December 2008-January 2009: Temasek unloads stake in Barclays Singapore's state-run investment firm Temasek Holdings paid about £2.4 billion in 2007 for a 2 percent stake in parent Barclays PLC. However, a June 2009 report in the AFP revealed that the secretive Temasek had offloaded its entire stake between December 2008 and January 2009, booking a loss somewhere between £500 million to £600 million. Temasek sold its stake at a time when there were fears of a British government takeover of Barclays; had the Singaporean investment firm held out a bit longer, they would have watched the bank get back on its feet. September 2008: Once-in-a-lifetime bankruptcy Just a day after the dramatic bankruptcy filing of U.S. investment banking giant Lehman Brothers, Barclays PLC swooped in and bought the firm's North American investment banking and capital markets divisions for US$1.75 billion; Barclays also took the building housing Lehman's New York headquarters in the deal. Five days post-collapse, a judge approved the purchase. Though the move didn't affect Asia as much as North America and Europe, it did add about 100 people to Barclays Capital opreations in Japan, mainly from Lehman Brothers Holdings Inc., as part of a plan to launch an equity business there. (By August 2009, Barclays PLC President Bob Diamond was hailing the purchase, as profits at Barclays Capital doubled from £524 million in the first half of 2008 to £1.05 billion in the first half of 2009. The “once-in-a-lifetime opportunity” to buy the Lehman Brothers assets, as Diamond put it at the time, saved the company “four to five years of organic growth,” according to Barclays PLC's chief executive, John Varley). October 2007: ABN AMRO a no-go, CDB and Temasek a go-go! One of the biggest stories of 2007 in the financial world was the bidding war that ensued between Barclays PLC and a consortium of banks led by the Royal Bank of Scotland to acquire the Dutch banking giant ABN AMRO—ultimately, Barclays PLC didn't win the battle. However, the bidding war led to two long-term benefits for Barclays Capital: a strategic partnership with China Development Bank (CDB), and a consolidation of its relationship with Temasek Holdings, the investment vehicle of the Singaporean government, as a major shareholder. Both CDB and Temasek committed significant investments into Barclays PLC, helping to fund Barclays' largely share-based bid for ABN AMRO. CDB and Temasek had additional Barclays investments conditional on the success of its bid for ABN AMRO. After the bid fell through, however, CDB and Barclays launched a commodities strategic alliance initially focused on developing business in energy, metals and emissions trading. The two banks have committed to a five-year period of collaboration, with the option to extend for a further period agreed by both parties. GETTING HIRED Customized for: vinh (
[email protected]) Study what you like Barclays Capital is said to be “not too particular about your educational background with regards to the subject of graduation.” But sources say the firm is still “very selective” and the interview process is “very structured,” with the candidate’s personality proving to be “an important aspect.” Every applicant is expected to do “two analytical online tests” consisting of “verbal and mathematical” questions. This is followed by “a phone interview to assess interest” and a “full day at the assessment center.” The day includes “group exercises to assess teamwork” and “two sessions of face-to-face interviews.” 72 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Barclays Capital Of vital importance for grads For information about graduate recruitment and internship opportunities at Barclays Capital, check out the campus recruitment section of the firm's web site at www.barcap.com/campusrecruitment. Internships last 10 weeks, and run from May to August each year. Within Asia Pacific, the main internship locations are in Singapore, Hong Kong and Tokyo, with a smaller number of internships offered in Mumbai, Seoul and Shanghai. For the 2010 intake, online applications close on December 31, 2009 for the Asia Pacific region. Getting into one of Barclays’ internship programs is said to be “very important,” since “most new graduate hires are former interns.” “Barclays hires interns with the foresight of them being the next batch of graduates, so getting onto the intern program plays a very important role,” explains a source. The program “gives you a snapshot of what the organization and its culture are like, and if you will be suitable in such an environment.” One former intern says of the internship program, “I was exposed to different areas of work the desk deals in. This helped me understand the mechanism and gave me an opportunity to make an informed choice about the area I wanted to work in after joining full time.” Three levels Along with internship programs, Barclays Capital offers three entry levels for graduates: analyst, associate and quantitative associate. Analyst positions require at least an undergraduate degree and "possibly" a Master's degree. The firm's web site lists intelligence, numeracy and communication skills among its sought after qualities for this role, and notes fluency in more than one language as a definite asset. Barclays Capital lists a number of specific functions available in the analyst role such as compliance, corporate communications, finance, global financial risk management, global marketing, human resources, investment banking, legal, operations, prime services quantitative analytics, research, sales, strategic planning, structuring, technology and trading. Barclays Wealth also recruits at the analyst level in the Asia Pacific region. The associate role is a bit more specialized, calling for applicants either to be graduated or working towards a Master's degree in Finance or an MBA, along with prior professional work experience. Positions at this level are available in the areas of investment banking, sales, strategic planning, structuring and trading. If you're more interested in a cutting-edge technical role developing mathematical models for trading and risk management activities, then you might want to take a look at the quantitative associate position. Candidates for these positions should have gained or be studying towards a PhD (or equivalent) in a highly technical discipline. If you're not at the doctorate level, you still have a shot if you're studying at a post-graduate level and can demonstrate a good understanding of at least two of the following: probability and stochastic calculus, analysis, numerical methods and coding. Positions encompass the areas of global financial risk management, investment banking, quantitative analytics, research, structuring and trading. OUR SURVEY SAYS "One of the best" Barclays Capital has “one of the best investment bank cultures around,” says one insider at the firm, claiming to have “verified this with friends who have worked at both Barclays and other investment banks.” Others say that the “fast-paced and meritocratic” environment proves to be a strong place to “start a career, with good exposure to business and different divisions,” along with “good learning opportunities,” and with juniors “able to address all kinds of problems.” Two words that sources use again and again when describing Barclays Capital are “diversified and open.” To promote this, the firm features “open-concept offices without partitions to encourage conversation and sharing,” resulting in a firm that is “cohesive and people-focused,” “without much office politics.” Customized for: vinh (
[email protected]) Looking to the future, most insiders at the firm think Barclays Capital will do well when the economic crisis simmers down, with one claiming that “the firm is better positioned than a lot of its peers.” That said, some sources say 2008 saw “meager year-end bonuses due to the recession,” with other banks “performing worse than Barclays, but still paying out more.” Relaxing on the weekends Most insiders at Barclays Capital in Asia say they put in between 50 to 60 hours a week, starting work at 9 a.m. and finishing at 6:30 p.m. But others admit they “sometimes” work until 8 p.m. As far as your Saturdays and Sundays are concerned, a source says, “Weekend support Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 73 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Barclays Capital work is on a rotational basis.” Another insider in Asia explains, “As long as you finish your tasks, there is no need to stay until your boss leaves.” Leave it at the door Management is “very approachable,” and there's a “well established feedback system.” But above all else, people at Barclays Capital are said to be nice to work with. “I was nervous to start but was pleasantly surprised on my first day to find very friendly people. I found them very approachable, and they helped me in my learning process,” reports a contact. Reportedly, there is a clear “leave-rank-at-the-door policy” at Barclays Capital. One source says, “Many managers are very open and approachable people” who not only “look out for their team” but also are “looking for ways to better the experience, opportunities and productivity of the individual.” They're also said to “act as mentors for newcomers, providing assistance and advice when needed.” As one respondent puts it, “The hierarchy of the firm is quite flat, and superiors are generally very open to opinions put forth by subordinates.” Graduate learning Barclays Capital “encourages employees to constantly engage in training to upgrade themselves.” This is, of course, after the “initial four- to eight-week graduate training program in London,” focusing on “financial concepts and soft skills.” Following this, newbies can expect to take part in a “one-year long continuous professional education program for graduates.” Once completed, bankers can participate in “various kinds of online or classroom training,” with Barclays constantly “striving to provide new and relevant courses for the employees.” Women on top Employees at Barclays Capital rate the firm highly when it comes to the position of women in the firm, mentioning that it has its own “internal network that constantly organizes seminars and workshops to provide work tips for women.” Barclays Capital is “strong in its stand for gender diversity,” raves one source. While we're told the “number of women in IT is less” than in other areas, we're also informed that this is made up for the “significant number of senior managers who are women.” Customized for: vinh (
[email protected]) 74 © 2009 Vault.com Inc. PRESTIGE RANKING 11 STANDARD CHARTERED BANK KEY COMPETITORS Citigroup HSBC Head Office: 1 Basinghall Avenue London, EC2V 5DD United Kingdom www.standardchartered.com LOCATIONS IN ASIA PACIFIC Afghanistan • Australia • Bangladesh • Brunei • Cambodia • China • Hong Kong • India • Indonesia • Japan • Korea • Laos • Macau • Malaysia • Mauritius • Nepal • Pakistan • Philippines • Singapore • Sri Lanka • Taiwan • Thailand • Vietnam PLUSES • “Cosmopolitan workplace with staff from all over the world” • “Great relations between superiors and peers” MINUSES • “Infrastructure such as speed of bandwidth” • “Work pressure” BUSINESSES Consumer Banking Wholesale Banking EMPLOYMENT CONTACT www.standardchartered.com/careers www.standardchartered.com/graduates www.standardchartered.com/interns THE STATS Employer Type: Public Company Ticker Symbol: STAN (LSE), 2888 (HKSE) Group CEO: Peter A. Sands CEO, Asia: Jaspal Bindra Operating Income: US$14 billion (FYE 12/08) Net Income: US$4.5 billion No. of Employees: 73,000 No. of Offices: 1,700 Customized for: vinh (
[email protected]) 75 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Standard Chartered Bank THE SCOOP Royal banking In 1969, the Chartered Bank of India, Australia and China merged with the Standard Bank of British South Africa, forming today's Standard Chartered Bank. The Chartered Bank was founded by an emissary of Queen Victoria in 1853. The first branches opened in Mumbai, Calcutta and Shanghai in 1858, followed by branches in Hong Kong and Singapore. Meanwhile, Standard Bank was founded in South Africa in 1863 by John Paterson. It grew throughout the continent of Africa over the next 100 years, becoming prosperous as the result of financing diamond and gold mining in the region. After the merger, Standard Chartered entered a period of change. Since the early 1990s, the bank has focused on developing its franchises in Asia, the Middle East and Africa, using its operations in the U.K. and North America to provide customers a bridge between these markets. Today, the company focuses on consumer, corporate and institutional banking, as well as on providing treasury services. Historic ties Standard Chartered PLC, listed on both the London Stock Exchange and the Hong Kong Stock Exchange, ranks among the top 25 companies in the FTSE-100 by market capitalization. In Asia Pacific, Standard Chartered has the unique advantage of longevity. The bank has maintained a major presence in India, Hong Kong and Singapore for almost 150 years. It has played a historic role in linking the financial and cultural centers of Europe and the Americas to Asia and the East. The London-headquartered group has been a major player in Asia Pacific, and a banking powerhouse in Africa and the Middle East. It derives more than 90 percent of its operating income and profits from Asia, Africa and the Middle East. Standard Chartered employs 73,000 people, representing 115 nationalities. It has more than 1,700 branches and outlets located in over 70 countries. The bank's income and the number of employees have more than doubled over the last five years; operations are fairly balanced between its two primary business units: wholesale banking and consumer banking. The firm's consumer banking business serves over 14 million customers across Asia, Africa and the Middle East, with major operations in Hong Kong, South Korea, Taiwan, Singapore, Malaysia, Thailand, India, U.A.E., Pakistan, Botswana, Kenya and Zimbabwe. The bank provides a wide range of products and services—such as credit cards, personal loans, mortgages, deposit taking and wealth management—to individuals and small- and medium-sized businesses through a network of more than 1,700 branches. The wholesale banking business serves corporate and institutional clients in more than 70 countries, providing trade finance, cash management, securities services, foreign exchange, risk management, capital raising and corporate finance solutions. Taking the (American) Express train Standard Chartered helped grow a key aspect of its business when it acquired American Express' international banking operations in September 2007 for US$860 million. Standard Chartered has also been offered the opportunity to buy American Express' international deposit division in 2009 for US$212 million, bringing the total expected cost of the deal to US$1.1 billion. The move was a strategic attempt to increase the bank's private banking division, which it launched in June 2007. At the time of the acquisition, the bank had private banking operations in Hong Kong, Shanghai, Beijing, Singapore, Seoul, Mumbai, New Delhi, Dubai, London and Jersey. The purchase of American Express' wealth management and international dollar clearing operations will add approximately 10,000 new customers with US$22.5 billion in assets to Standard Chartered's portfolio. The private banking arm targets highnet-worth customers with between US$1 million and US$50 million in assets. Customized for: vinh (
[email protected]) Up, up, and away Standard Chartered's success in China has attracted the attention of domestic banks on the mainland that reportedly are interested in acquiring a minority stake in the bank. Three of China's "Big Four" state-owned banks—Industrial and Commercial Bank of China, Bank of China, and China Construction Bank—have been cited as possible buyers of a 17 percent stake currently owned by Temasek, a Singaporean government-run investment agency. 76 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Standard Chartered Bank In the last half of 2007, the firm started an aggressive expansion program that included five major acquisitions, incuding the American Express international banking purchase, Indian brokerage UTI Securities and South Korean fund administration company A Brain. In early 2008, the bank bought another South Korean company, Yeahreum Mutual Savings Bank. And while other financial institutions were reporting huge losses in their annual reports for 2008, Standard Chartered announced that its operating income actually rose 26 percent to $14 billion and its operating profit jumped 13 percent to $4.5 billion in 2008. The positive results were due to the bank’s strong focus in Asia. In Hong Kong, the firm booked operating profit of $445 million; in Singapore, it brought in $309 million worth of profits. The bank acknowledged that although its target markets in the East were suffering, the downturn would be shorter there than in the U.S. and Europe. It also revealed that it had reduced the bonuses of its directors by between 10 and 25 percent, and imposed salary freezes on senior managers across all regions. IN THE NEWS August 2009: New opportunities In order to take advantage of new business opportunities, the bank outlined its plans to raise £1 billion by issuing new shares to investors. The deal consisted of 75 million shares priced at £13.60 each and followed reports that the Asian-based bank was closing in on a deal to buy RBS Asia units in India, China and Malaysia. According to the Indian Economic Times, the bank was poised at the beginning of August to pay $250 million for RBS’ retail and small business lending operations in these countries. July 2009: A role for Peace Standard Chartered got a new boss in the form of John Peace in July. The acting chairman officially took over the role vacated by Mervyn Davies, who left the position in January to take a job with the U.K. government. Before joining the bank’s board in 2007, Peace served as chief executive at retail conglomerate GUS PLC, which during his tenure spun off its Experian and Burberry units through initial public offerings. His new role will include identifying acquisitions and stemming losses in those countries feeling the strongest effects of the global downturn. At the time, chief executive Peter Sands reported that the bank was looking into further acquisitions in the Middle East, Asia and Africa, with negotiations continuing on the possibility of buying up some of RBS’ assets in Asia. July 2009: Priority on relationships As one of only a few banks in a position to make new hires throughout 2009, Standard Chartered revealed that it was expanding its priority banking business with plans to recruit an additional 300 relationship managers in Singapore over the next three years. This came on top of the 80 RMs it had already hired in 2009. Catering for individuals with a net worth of more than $200,000, priority banking grew throughout Asia by 16 percent between 2003 and 2008, and is growing three times faster than it is in North America and Europe. June 2009: Korea calling As part of its aggressive expansion policy in Asia, the London-based bank became the first foreign lender in South Korea to set up a financial holding firm. The new company, called Standard Chartered Korea Ltd, will make it easier for the bank to seek further takeovers, and develop and sell a wide range of financial products. At the time, there were also rumors that Standard Chartered was looking to open up an insurance unit and mulling over the prospect of taking over local insurer Kumho Life Insurance. This all followed the bank’s acquisition of Korea First Bank for $2.7 billion back in 2005. Customized for: vinh (
[email protected]) October 2008-November 2008: Snapping up the weak Standard Chartered capitalized on the economic situation by picking up a few cheap acquisitions. The first came in October in the form of the debt-ridden Asia Trust and Investment Corp. The Taiwan government paid the Standard Chartered $104 million to take over the poor performing bank, giving the firm an extra 8 branches in the country, taking its total to 96. A month later, the firm snapped up Cazenove Asia and its $159 million in assets for an undisclosed sum from JPMorgan Cazenove. The deal boosted Standard Chartered’s equity markets business in Hong Kong and across Asia. The move meant that the British bank took on 142 Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 77 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Standard Chartered Bank additional employees, most based on the Chinese island. It also meant the bank would have a stronger equity markets platform to offer clients financing, distribution, equity research and advisory capabilities. GETTING HIRED The global Standard Standard Chartered offers careers that are truly global in scope, providing employees with opportunities to travel, interact and learn from other cultures. Each year as many as 20 percent of its employees get "expanded role opportunities." Over 2,000 of its employees are on crossborder assignments at any given time. Nearly half of its employees are women, and almost 80 nationalities are represented among its top 500 managers. Standard Chartered maintains an extensive careers section of its web site at www.standardchartered.com/careers. There, the firm organizes information about career opportunities into four main divisions: consumer banking, wholesale banking, group technology and operations, and support functions (including corporate affairs, human resources, finance, compliance and assurance, and more). The bank provides information on internships and programs for new graduates. For new graduates, the firm runs a two-year rotational "International Graduate Programme" (IGP). The career section of the firm’s web site also includes a space specifically for MBAs interested in working at Standard Chartered. The site allows jobseekers to search for opportunities in Asia by division and country. In consumer banking, job opportunities can be found in China, Hong Kong, Singapore, Thailand, Indonesia and India. In the wholesale banking division, jobseekers can search for positions in China, Hong Kong, Japan, Singapore, Thailand, Indonesia and India. Nothing out of the ordinary When it comes to hiring at Standard Chartered, sources say that “selection is based on the level of competence, capabilities and the suitability of the individual for the position.” Candidates who put themselves forward for a position should expect around three rounds of interviews, although some claim to have just experienced two. The structure of the interviews vary according to the office but typically include one round with the HR manager, followed by a round with the HR manager and a reporting manager, and a “final round with a reporting manager and a departmental head.” With respect to internships, “it is not necessary to have participated in one to seek full-time employment at the bank.” However, insiders admit that participating in such programs is a good way of “evaluating whether you want to work for the organization or not.” OUR SURVEY SAYS Fast-paced and diverse The environment at Standard Chartered is “fast-paced,” according to insiders, and the firm has a “driven corporate culture” with “highly motivated people.” Still, teamwork is valued, with everyone “working toward a common goal.” Teams are “multinational,” and the people who work for the bank are said to be “creative and very responsive.” Insiders also point out that the firm is a little on the “conservative” side, resulting in it being more “cautious” than other banks. Customized for: vinh (
[email protected]) Putting in the hours “As with most professional positions,” says one source, “during certain days it is necessary to work late and complete projects.” Standard Chartered is no exception. Most respondents claim to work on average around “50 to 60 hours” a week, although a manager from the Singapore office claims to work over 100 hours per week. Contacts in China claim the hours there are more than the Asian average. “Banking hours in China are higher than in other countries,” explains an insider there, “and it is expected that people put in the time needed to be competitive.” 78 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Standard Chartered Bank Not politics On the whole, there are “good relations between superiors and colleagues” at the bank. Support is always there when you need it from “motivated management,” and there is very “little politics.” However, insiders highlight some issues in China where the speed of development has left some managers without time to learn the appropriate skills. “Young talent is abundant,” explains a contact in the Shanghai office. “It is the management talent that is sometimes lacking. This is a result of the extreme speed in development of financial services in China. There hasn’t been the time for many financial service employees to develop into good managers.” Women taking charge? Staff at Standard Chartered are a multinational lot. The bank is made up of “over 65 percent women, with many taking up senior posts”—at least in the Shanghai office. One insider there says, when asked about diversity with respect to women, “I think this question would be more interesting if you asked about diversity with respect to men.” Opportunities in the crisis The economic outlook isn’t as bleak for the bank as it is for some of its competitors. “Our company can even make a profit even in bad economies, so the outlook is good,” explains a Singapore-based insider. A colleague agrees saying, “I view downturns as opportunities. We are lucky to be in markets that are less affected by the downturn.” Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 79 PRESTIGE RANKING 12 MACQUARIE GROUP LIMITED KEY COMPETITORS Deutsche Bank Goldman Sachs UBS Investment Bank No. 1 Martin Place Sydney, NSW 2000 Australia Phone: +61-2-8232-3333 Fax: +61-2-8232-7780 www.macquarie.com.au LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • Japan • Korea • Malaysia • New Zealand • Philippines • Singapore • Taiwan • Thailand EMPLOYMENT CONTACT www.macquarie.com.au/careers OPERATING GROUPS & DIVISIONS Banking & Financial Services Group Corporate & Asset Finance Division Macquarie Capital Macquarie Funds Group Macquarie Securities Group Real Estate Banking Division Treasury & Commodities Group THE STATS Employer Type: Public Company Ticker Symbol: MQG (ASX) Chairman: David Clarke Managing Director & CEO: Nicholas Moore Consolidated After-Tax Profit: AU$871 million (FYE 3/09) Total Operating Income: AU$5.53 billion No. of Employees: 12,700 No. of Offices: More than 70 office locations in 26 countries Customized for: vinh (
[email protected]) 80 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Macquarie Group Limited THE SCOOP Expanding from down under Best known in its home country of Australia, Macquarie is a global provider of banking, financial, advisory, investment and funds management services. Headquartered in Sydney since its inception, the bank evolved from Hill Samuel Australia Limited, which was established in 1969 as a subsidiary of the U.K. merchant bank Hill Samuel & Co. In 1985, a banking license was acquired and Macquarie Bank opened its doors for business with a retail branch in Sydney. It adopting its name from Governor Lachlan Macquarie, the man largely responsible for transforming the early settlement in Australia from a penal colony into a dynamic economy. Macquarie Bank went public on the Australian exchange in 1996. In Australia and New Zealand, as well as around the world, Macquarie acts for a wide range of institutional, corporate, government and retail clients. In the Asia Pacific region, Macquarie offers a full range of investment, financial market and advisory products and services. Asian offices are located in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. Macquarie employs approximately 12,700 people in more than 70 offices in 26 countries. This includes more than 5,400 employees in offices outside Australia, representing 43 percent of total staff. For the fiscal year ending March 2009, Macquarie posted total operating income of AU$5.5 billion and net profit of AU$871 million—remaining highly profitable but ending 16 years of profit growth. Five (plus two) at the core In November 2007, Macquarie Bank underwent some restructuring following shareholder approval, and Macquarie Group Limited was established as a non-operating holding company and the listed parent of the Macquarie Group. Today, Macquarie Group Limited comprises businesses across a range of investment, commercial and selected retail financial services. Macquarie organizes its activities into five operating groups (Macquarie Capital, Macquarie Securities Group, Treasury and Commodities Group, Macquarie Funds Group, Banking and Financial Services Group) and two divisions (Real Estate Banking, and Corporate and Asset Finance). Each group or division specializes in defined product or market sectors and works in close co-operation. In addition to the operating groups and divisions, service groups (such as include risk management, corporate affairs and information technology) provide the framework, infrastructure and support for the operational groups to function. Macquarie Capital includes Macquarie’s corporate advisory, equity underwriting and specialized funds management businesses. Macquarie Capital Advisers provides advisory and capital raising services to corporate and government clients involved in public mergers and acquisitions, private treaty acquisitions and divestments, debt and equity fund raising, and corporate restructuring. Macquarie Capital Advisors also encompasses Macquarie Capital Funds, which manages a range of specialist funds, including infrastructure and real estate funds. In January 2009, most of the firm’s former real estate platform merged with Macquarie Capital. This created an integrated real estate business for domestic and international real estate services (including funds management, advisory and principal activities) able to leverage expertise from all Macquarie Capital industry and product teams. The banking and financial services group is the primary relationship manager for Macquarie Group's retail client base with operations in Australia, New Zealand, Asia, North America and Europe. The group was formed in February 2008 through the merger of the firm’s banking and securitisation group and the financial services group. Banking and financial services provides a diverse range of wealth management products and services to financial advisors, stockbrokers, mortgage brokers, professional service industries and consumers. Treasury and commodities oversees commodity, energy and environmental financial products; physical and derivatives structuring and trading; commodity (metals, bullion and agricultural) and energy finance; Macquarie's treasury operations; futures (listed derivatives) execution and clearing; debt arrangement, structuring and placement activities; interest rate and credit derivatives structuring and trading; and foreign exchange trading and structuring. Customized for: vinh (
[email protected]) Newest groups in town In June 2008, Macquarie announced the establishment of two new groups, Macquarie Securities and Macquarie Funds. Macquarie Securities Group was officially formed in April 2008 by merging the operating activities of the bank’s equity markets group (excluding its fund products division) and the capital securities division of Macquarie Capital. Macquarie Securities is a full service securities business in Australia and Asia, specializing in institutional and corporate stockbroking; equities research; equity-linked investment, trading and risk management products; services for hedge funds, including market access, leverage, stock borrowing and execution; stock borrowing and lending; and Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 81 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Macquarie Group Limited structured equity finance. The securities arm is subdivided into three divisions: cash, Delta1 and derivatives. Macquarie Securities also provides a select range of products and services in Europe, Africa and the Americas. Meanwhile, Macquarie Funds was formed in August 2008 from the merger of the funds and funds-based structured product businesses within the funds management group, the funds products division from the equity markets group and Macquarie Capital’s products division. Macquarie Funds offers a range of investments for both retail and institutional investors across a variety of asset classes, including equities, listed infrastructure, private equity and hedge fund of funds, listed real estate, currencies, fixed income and cash. Macquarie Funds oversees combined funds under management of AU$70 billion and AU$7 billion in funds-based structured products; it does not include Macquarie's specialist infrastructure and real estate funds operations. Awards and rankings • Best Domestic Investment Bank in Australia, Best Equity House in Australia, Rising Star Equity House in Asia (The Asset, 2008) • Best Infrastructure House (Asian Investor, 2008) • Best Domestic Equity House in Australia (Asiamoney, 2008) • Most Innovative Investment Bank, Best Securitisation House, Best Securitisation Deal, Most Innovative Deal (Finance Asia Achievement Awards Australia, 2008) • Financial Advisor of the Year in Australia (Financial Times and Mergermarket, 2008) • Best IPO in Asia, Equity Deal of the Year in Asia (China Railway Construction Corporation) (The Asset, 2008) • Best IPO of the Year in China, Deal of the Year in China (China Railway Construction Corporation) (Asiamoney, 2008) • Best Equity Deal, Best IPO (China Railway Construction Corporation) (Finance Asia, 2008) IN THE NEWS August 2009: Sino-Australian trust approved Macquarie received regulatory approval in August 2009 from the Chinese government to launch a trust joint venture. Known as Sino-Australian International Trust, the Shanghai-based entity will offer corporate banking and asset management services in China. Macquarie will hold the maximum stake allowed by regulation at 19.99 percent, while the rest will be held by state-backed firms, including Beijing Sanjili Energy and Beijing Rongda Investment. August 2009: Chairman returns from leave of absence Just nine months after taking a temporary leave of absence to undergo treatment for cancer, long-serving Macquarie chairman David Clarke resumed his duties in full following significant improvements in his health. (In November 2008, Kevin McCann, the lead independent director for Macquarie Group, was appointed the group's acting chairman, temporarily taking Clarke’s place). Clarke returned healthy, and with a pocketful of cash, having sold a large amount of his Macquarie shares—both directly and through Karii Pty Limited, a firm in which Clarke owns a significant stake—for AU$12.5 million just one week prior to his return. Macquarie's stock had tripled since falling to a 10-year low in March 2009. Customized for: vinh (
[email protected]) August 2009: Two more infrastructure funds, this time in China Macquarie announced that it was teaming up with Chinese financial services giant China Everbright Ltd. to raise up to US$1.5 billion in capital for two funds. Similar to the SBI link-up fund launched in April 2009, the two Chinese funds are aimed at investing in infrastructure projects in mainland China, Hong Kong and Taiwan—including the construction of toll roads, airports, ports, railways, water treatment facilities and renewable energy sources. One fund will be targeted at raising funds from international institutional investors, while the second fund (awaiting Chinese government regulatory approval) will be aimed at bringing domestic Chinese investors on board through RMB capital investments. 82 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Macquarie Group Limited May 2009: Combining forces for AIG assets According to The Times of India, India-based financial services group Religare Enterprises partnered with Macquarie in May 2009 to jointly bid for AIG Investments, the asset management arm of troubled U.S.-based insurer American International Group (AIG). Prior to teaming up, Religare and Macquarie had made separate bids for the AIG department. Then, realizing they might have a better chance together, the firms teamed up and submitted a joint proposal to AIG Investments executives. Ultimately, the winning bid went to Hong Kong-based Pacific Century Group (which runs a host of businesses including Hong Kong telecom giant PCCW) for about US$500 million in September 2009. Religare and Macquarie have been teamed up for quite some time, as they operate a wealth management joint venture in India. April 2009: State-of-the-art infrastructure in India Keeping in line with Macquarie’s aggressive expansion in the Asia Pacific region, Macquarie linked up with the State Bank of India to form a joint venture—Macquarie-SBI Infrastructure Fund (MSIF)—in April 2009. MSIF raised initial capital of US$1.04 billion to invest in infrastructure projects such as roads, ports and power plants in India. R. Sridharan, the managing director of SBI, remarked on India's infrastructure needs, "As per the Planning Commission of India estimates, the country will need close to US$500 billion in infrastructure investments in the next five years. Funding of this magnitude cannot be supported domestically alone and must be supplemented by other sources of capital." The fund has a strong supporter in the private-sector investment arm of the World Bank, the International Finance Corporation (IFC), which serves as a keystone investor and a minority shareholder in the venture. Macquarie and SBI each own 45 percent in the venture, while IFC owns the remaining 10 percent. February 2009: Three from Lehman Macquarie Group hired three ex-Lehman Brothers bankers to head up significant units in the U.S. David Baron, who formerly served as a managing director in Lehman's principal origination and financial sponsors businesses, will head up Macquarie's U.S. financial sponsors unit. Michael Meyers and Sean Fitzgerald, who worked in Lehman's equity syndicate private placements and private equity units, respectively, will co-lead Macquarie's private capital finance operations in North America. October 2008: In bonds we trust Macquarie announced that it had applied to enter the U.S. bond insurance market. This announcement came despite the fact that several prominent insurers, such as New York-based MBIA and Ambac Financial Group, had recently lost their AAA ratings as a result of being tied to hard-hit subprime housing loans. In October 2008, Macquarie officially received a license to insure municipal and infrastructure debt in a joint venture with Chicago-based investment capital house Citadel Investment Group. The partnership developed insulation against woes troubling the insurance industry by avoiding guarantees from securities connected to subprime loans and other such risky forms of debt. September 2008: Macquarie to sell its investment lending business Following Macquarie’s decision in May 2008 that it would wind back its Australian residential mortgage business, Macquarie announced that its investment lending arm would be sold. The sale was not expected to have a material impact on the group’s earnings, but a company statement declared that unloading the division would allow the firm to focus on its most profitable businesses. May 2008: Macquarie Capital chief takes over Nicholas Moore, head of Macquarie Capital, was appointed to replace Allan Moss as managing director and CEO of Macquarie Group Limited as soon as Moss retired. Moss had held the post for almost 15 years. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 83 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Macquarie Group Limited GETTING HIRED A different kind of vacation Job seekers can find out more about opportunities at Macquarie by visiting www.macquarie.com/careers and choosing the relevant location in which they wish to work. Applicants are able to research and apply for Macquarie's available full-time positions, as well as its graduate and internship programs. There's also information about Macquarie's work environment and testimonials from current employees, including video presentations. Opportunities exist across the Asia Pacific region in Australia, China, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, the Philippines and Singapore. Macquarie's internship program grants university undergraduates the opportunity to join various teams within the company where they can benefit from hands-on experience, exposure to the financial services sector and insight into the career opportunities offered at Macquarie. The graduate program allows students the opportunity to secure a position upon commencement of their studies. Visit the careers web site to find out more about application dates and the application process. Customized for: vinh (
[email protected]) 84 © 2009 Vault.com Inc. PRESTIGE RANKING 13 NOMURA HOLDINGS, INC. KEY COMPETITORS Credit Suisse Goldman Sachs J.P. Morgan Mitsubishi Financial Group Mizuho Financial Morgan Stanley UBS Japan Headquarters: 1-9-1, Nihonbashi, Chuo-ku Tokyo 103-8645 Japan Phone: +81-3-5255-1000 Fax: +81-3-3278-0420 Asia Regional Headquarters: 30/F, Two International Finance Centre 8 Finance Street Central, Hong Kong Phone: +852-2536-1111 Phone: +852-2536-1888 www.nomura.com EMPLOYMENT CONTACT www.nomura.com/careers LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • Japan • Korea • Malaysia • Philippines • Singapore • Taiwan • Thailand (affiliate) • Vietnam KEY BUSINESSES Asset Management Domestic Retail Global Investment Banking Global Markets Global Merchant Banking THE STATS Employer Type: Public Company Ticker Symbol: 8604 (TYO), NMR (NYSE) President & CEO: Kenichi Watanabe Total Revenue: ¥664.51 billion (FYE 3/09) Net Income: ¥-708.19 billion No. of Employees: 25,000 No. of Offices: 190 offices in 30 countries worldwide Customized for: vinh (
[email protected]) 85 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Nomura Holdings, Inc. THE SCOOP From Tokyo to the world Japanese-based Nomura Holdings is one of the world's largest securities and investment banking firms. As of September 2009, Nomura boasted ¥27.7 trillion in total assets. The company was founded in 1925 and ever since has been a force of dominance domestically and abroad. Nomura has offices all over the world, including four main hubs in Tokyo, Hong Kong, New York and London. While Tokyo serves as the firm's overarching headquarters, the Asia (excluding Japan) headquarters are located in Hong Kong. Nomura operates through five main areas of business: domestic retail, global markets, global investment banking, global merchant banking and asset management. The domestic retail banking section operates branches through Nomura's home country of Japan, and also offers consulting services and financial products. The global markets division provides global fixed income, global equity and asset finance services. The global investment banking division provides a wide variety of investment banking services including underwriting debt, equity and other securities, as well as providing financial advisory for a diverse range of business transactions. Nomura's global merchant banking arm conducts private equity deals in Japan, Europe and the United States. Finally, the firm's asset management business develops and manages investment trusts and investment advisory services through its subsidiary, Nomura Asset Management Company. Traditionally known in Japan as a domestic retail bank, times may be changing for the firm, as Nomura has shown increasing interest in expanding its global operations—particularly with the September 2008 acquisition of Lehman Brothers' assets across Asia, the Middle East and Europe. Worldwide, Nomura offers a full range of securities and investment banking services, including asset management, merchant banking, corporate advisory, derivatives, foreign exchange, sales and trading, research and capital raising. Roots in Osaka The son of an Osaka moneychanger, Tokushichi Nomura II was born in 1878, the year the Osaka and Tokyo stock exchanges were founded. At that time, Osaka was Japan's business and finance center. After a three-year transcription in the Japanese army, young Nomura joined his father at the family business (called Nomura Shoten, or Nomura Shop). By 1904, the younger Nomura was running the shop, and he decided to add stock sales, trades and spot transactions to his father's currency exchange business. In 1906, Nomura created an in-house research department, and, to this day, research is a central aspect of his firm's operations. He began publishing a daily newsletter called the Osaka Nomura Business News, which contained stock analysis, economic research and trading reports. Nomura became well known throughout Japan; no other broker at the time was putting out such reports. Thanks to his solid reputation, Nomura and his company survived the Japanese market crash of 1907. A year later, he took a life-changing trip to New York. Nomura returned to Japan with the intention of creating a global finance firm that could compete with the best; his first step was to expand his research department and create a translation department so he could become involved in foreign currency-denominated bonds. Underwriting and international trading were ramped up, and by 1917, Nomura Shoten became Nomura Shoten Incorporated. In 1922, Nomura formed a holding company to contain his empire, and three years later, his securities division was incorporated separately as Nomura Securities. In 1927, Nomura's dream of opening an office in New York came true. By then, Nomura's enterprises included the standalone securities division, bond sales, underwriting and commercial banking under the Osaka Nomura Bank name. In 1946, the firm’s headquarters shifted to Tokyo; five years later, it launched an investment management business. Nomura is credited with pioneering the use of investment trusts in Japan; it was also one of the first foreign-owned companies to gain membership on the London Stock Exchange. Under leadership in the late 1990s and early 2000s, Nomura went through a series of restructuring moves that were finalized in a transition to a holding company in October 2001. Landing Lehman Customized for: vinh (
[email protected]) In September 2008, Nomura made the purchase of a lifetime—at the epicenter of the global financial crisis. After the spectacular collapse of U.S. investment bank Lehman Brothers, Nomura swooped in to buy Lehman’s equities and investment banking operations in Europe, Asia and the Middle East. The Asian businesses sold for US$225 million, while the European and Middle East arms went for nominal sums reported to be two U.S. dollars each. Analysts noted that Nomura put forth an impressively low figure for all that, considering that Europe and Asia previously represented half of Lehman’s annual revenue, and CEO Kenichi Watanabe agreed, calling it a "once-in-a-lifetime opportunity." The Lehman acquisition clearly marked Nomura’s leap to the global investment banking major leagues. As well, the move preserved thousands of Lehman bankers’ jobs outside the U.S. and boosted Nomura’s headcount by over 8,000—including nearly 3,000 Lehman employees in Asia. 86 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Nomura Holdings, Inc. When the deal marked its first anniversary in September 2009, it still remained to be seen how legacy Lehman employees would ultimately merge into Nomura’s culture and system over the three-year integration plan set forth by Watanabe. Some initial attrition occurred early in the acquisition, as some high flyers departed for Merrill Lynch, Blackstone and UBS within the first few weeks. At the end of Nomura’s fiscal year in March 2009, as the bonus season approached, Reuters reported that veteran Nomura bankers were also concerned about disparities between their pay and the incentives offered to Lehman employees who remained with the firm. Meanwhile, some former Lehman bankers have publicly expressed frustration at Nomura’s conservative, risk-averse way of doing business. Compounding matters, Nomura took a hefty ¥67.8 billion loss for its fiscal year ending in March 2009. However, things quickly shifted—July 2009 marked a solid return to profitability for Nomura, less than a year after the acquisition and, at least temporarily, silenced many critics. Awards and rankings • Best Investment Bank from Asia (The Banker, 2009) • Best M&A House in Japan (Euromoney, 2009) • Best China M&A House (Euromoney 2008 and 2009) • Best Samurai Bond (FinanceAsia, 2009) • No. 1 G3 Bond Underwriter in Asia (Dealogic, 2009) • No. 3 Convertible Bond Issue, Asia ex-Japan (Dealogic, 2009) • No. 3 US$ Bond Underwriter in Asia ex-Japan (Dealogic, 2009) • Best Equity House, Japan (Asiamoney, 2008) • Best M&A House in China / Best Deal in Indonesia (The Asset, 2008) • House of the Year, Straight Bond House of the Year, Straight Bond of the Year, Straight Bond Debut Deal of the Year, Local Government Bond of the Year, Samurai Bond of the Year, Equity House of the Year, Equity Issuer of the Year, Equity Deal of the Year, IPO of the Year, J-REIT of the Year (Thomson Deal Watch, 2008) • Best Equity House, Best Brokerage House, Best IPO, Best Secondary Equity Offering, Best Samurai Bond, Best Equity-linked Deal, Best China Deal, Best Singapore Deal, Best Cross-Border M&A Deal, Best Sovereign Bond (FinanceAsia, 2008) • Best Equity Deal (The Banker, 2008) • Asia-Pacific Emerging Market Bonds—No. 1, All Bonds in Yen, Japan Debt—No. 3 (Thomson Reuters Debt Capital Markets League Tables, 2008) • Equity & Equity-related Fees, Japan—No. 1, Japan Equity & Equity-related—No. 1, Japan IPOs—No. 1, Japan Common Stock—No. 1, Japan Convertibles—No. 2 (Thomson Reuters Equity Capital Markets League Tables, 2008) • Worldwide Involvement Completed M&A by deal value—No. 12, Asia (ex-Japan) Involvement Completed M&A by deal value—No. 1, Chinese Involvement Completed M&A by deal value—No. 2, Japanese Involvement Completed M&A by deal value—No. 1 (Thomson Reuters Global M&A League Tables, 2008) IN THE NEWS Customized for: vinh (
[email protected]) September 2009: More shares up for grabs Following its February 2009 share offering, Nomura announced a second offering in September 2009, this time aiming to raise up to ¥433 billion. Through the capital raise, the group plans to strengthen its foundation by investing (and extending loans) to its subsidiaries in Asia, Europe and the U.S. The offer was heavily oversubscribed; the domestic tranche was about three times oversubscribed and the overseas offering was close to 10 times oversubscribed. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 87 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Nomura Holdings, Inc. July 2009: Nomura acquires NikkoCiti Nomura Holdings confirmed in July 2009 that subsidiary Nomura Trust and Banking Co. plans to purchase NikkoCiti Trust and Banking Corp. for ¥19 billion from Citigroup, as part of Citi's moves to raise capital to repay U.S. government bailout money. As of the fiscal year ending March 2009, NikkoCiti Trust and Banking had ¥4.5 trillion in trust assets and more than 100 employees, while Nomura’s trust division possessed ¥19.5 trillion in assets and over 250 employees. July 2009: Quick return to profitability Marking the first time in six quarters, the firm returned to profitability as it announced its first-quarter results for its fiscal 2010 year. Profits before tax weighed in at ¥31.4 billion for the quarter, while net income came in at ¥11.4 billion. Most striking, however, was the firm's net revenue, which jumped 120 percent overall compared to the previous year, hitting ¥298.4 billion. CEO Kenichi Watanabe remarked on the strong start, "Our retail and asset management business continued to generate stable revenues, and global markets made a significant contribution to earnings." (Net revenue for the firm's global markets division skyrocketed to ¥187.1 billion for the quarter, or 17 times higher than the first quarter of fiscal 2009.) Watanabe continued, "Our newly expanded client business platform is now fully operational, and we saw considerable momentum in global wholesale client flow businesses during the quarter. While market conditions remain uncertain, we are making steady progress towards our objective of achieving a full-year profit." May 2009: Seizing opportunities in the U.S. At a time when other banks are retrenching, Nomura has been expanding its U.S. operations and expecting to double its U.S. headcount by early 2010. For Nomura to be truly global, the U.S. franchise is seen as a key component of that global strategy. In establishing a significant presence, Nomura has been hiring former Lehman Brothers colleagues as well as hiring recognized market-leading teams to charge the U.S. markets as it looks to join the top five global investment banks. With its key hires in place, Nomura announced in July 2009 that it has been designated to join the ranks as a "primary dealer" of U.S. Treasury securities by the Federal Reserve Bank of New York. April 2009: Some cutbacks in Asia According to The Wall Street Journal, Nomura cut 50 investment banking positions in Asia (excluding Japan) in April 2009, representing only about 2 percent of the company's total 2,500-strong workforce in the region. However, like many financial giants, there have been a good deal of cuts and restructuring during the economic crisis—at Nomura, this has included about 2,100 job cuts from October 2008 to April 2009, with about 1,000 of those taking place in London, according to the AFP (the Association for Finance Professionals). April 2009: Taking its biggest hit ever Releasing its results for the fiscal year ending March 2009, Nomura Holdings posted its largest annual loss ever, booking ¥708.19 billion in losses, a more-than-tenfold increase compared with losses of ¥68.7 billion in the previous year. The second half of the fiscal year was especially tough, as the firm posted net losses of about ¥560 billion from October 2008 to March 2009. As major reasons for the slide, Nomura cited trading losses, significant exposure to crisis-hit Iceland, convicted Ponzi scheme operator Bernard Madoff, write-downs on merchant banking and real-estate related assets, and acquisition costs related to its purchase of the Asian, European and Middle Eastern divisions of Lehman Brothers. April 2009: London calling Customized for: vinh (
[email protected]) The financial world took notice when Nomura’s global head of investment banking, Hiromi Yamaji, packed his bags for London. In a shift that signaled Nomura’s heightened focus on Europe, Yamaji announced that the investment banking division would be run from the U.K. instead of Nomura's global headquarters in Tokyo. "The importance of Japan as our most important market won't change," Yamaji told the Financial Times. Even though Japanese retail banking remains Nomura’s biggest money-maker, Yamaji promised that his move "is a message that we place priority on London." 88 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Nomura Holdings, Inc. February 2009: Gathering capital Nomura announced a new share offering, its first since 1989, in an effort to raise ¥300 billion. The news sent Nomura’s shares to a 26-year low as investors worried that the Japanese bank was losing too much capital on bad investments and the costs of merging Lehman's operations. However, the share issue wasn't solely intended to recoup losses. Nomura indicated it also needed the capital to fund expansion plans—particularly efforts to make further inroads in the U.S. October 2008: One more piece in India Though not included in the initial deal, Nomura scooped up one more piece of Lehman as it purchased the collapsed investment bank's IT support businesses in India, adding a further 3,000 employees to the fold. Based in Mumbai, the three Indian subsidiaries include back-office operations and an IT support hub key to running Lehman's stock trading platform. Terms of the deal were not disclosed, but according to Japanese daily The Nikkei, Nomura paid "several billion yen" for the Indian businesses. GETTING HIRED Grads unite Nomura's main careers page provides links to sites for four regions: Japan, Asia Pacific, Europe and the Americas. Japan's careers site is predominantly in Japanese, though the firm has plans to include more English information in the near future. Within the Asia Pacific region, graduate roles are divided into two areas at Nomura: global markets (including sales, trading, research and structuring) and investment banking (including deal execution, client relationship management and strategic analysis). In 2010, the firm will also be looking to add graduates to its corporate infrastructure divisions. The application deadline for full-time grads and summer interns are posted on the Nomura web site. Once you've put in your application, Nomura has a first-round interview stage (phone or face-to-face); if you pass the first round, final round interviews are conducted by phone, videoconference or face-to-face depending on your location. One insider describes personal experience with the process as "three rounds of phone interviews, plus two face-to-face interviews." Another source agrees that it's "usually four to five interviews." Interns eternal Aside from full-time graduate positions, a 10-week summer internship program is available at both the analyst and associate levels. Spanning the global markets and investment banking divisions (as well as occasional placements into corporate infrastructure), the internship includes a buddy/mentor system as well as formal and informal training sessions. For specific deadlines, check Nomura's Asia careers site for more details. Past interns rave about their experiences, describing it as "very important." Although the Nomura internship program is not as well established as it was at Lehman Brothers, there has been strong momentum after a successful first summer class. One Tokyo source also offers a tip for those interested in landing a Japan placement: "The best way to get hired for a job in Japan is to attend the Boston Career Forum [the world's largest Japanese-English bilingual job fair] in November—that's how I got hired." OUR SURVEY SAYS Customized for: vinh (
[email protected]) Getting acquainted In the post-Lehman era, Nomura has done its best to bring everyone under one roof that's described as "respectful," "friendly" and "open." An insider says, "People here actually get along and are friends outside of work. There are few cut-throat bankers, and it's a non-toxic environment." With any merger, there are a few initial worries about culture clash, but most Nomura and Lehman employees are looking ahead to a bright future together. A former Lehman staffer says, "I'm still assessing Nomura's culture as I'm getting to know the post-merger firm." However, Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 89 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Nomura Holdings, Inc. another source assures, "Once the two cultures are meshed, it will be fine; in the meantime, we are trying to integrate." In Tokyo, an insider tells us that "the culture has become much more international here since all the Lehman people have joined." Beating the street Most respondents say they're putting in fairly standard investment banking hours, ranging from 60 to 90 hours a week on average. Staffers also describe a formal dress code in place, although some offices reportedly have casual Fridays. Training is said to be "good" and has included something fairly unique among global investment banks: "an info session on Japanese business etiquette." On the perennial issue of pay, insiders tell us that "at least for 2008, Nomura paid much more than the street average—especially for legacy Lehman employees." Other sources report perks such as signing bonuses, a housing allowance for expatriates and nice offices. Eyes on diversity For women, the Nomura environment is "surprisingly good," despite some negative reports in the media and revealing data on Nomura's web site (with one page showing less than 4 percent of females in management at Nomura Securities as of July 2009). Another insider gives the lowdown: "I was involved in Lehman's internal women's network, and everyone was welcome to join. They have diversity officers who run programs like that, and these people continue at Nomura to help employees appreciate diversity." Customized for: vinh (
[email protected]) 90 © 2009 Vault.com Inc. PRESTIGE RANKING 14 BANK OF AMERICA MERRILL LYNCH KEY COMPETITORS Citi Goldman Sachs J.P. Morgan Morgan Stanley UBS Regional Headquarters: 42nd Floor, Two International Finance Centre 8 Finance Street Central Hong Kong Phone: +852 2847.5222 Fax: +852.2847.5232 www.bankofamerica.com LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • Japan • South Korea • Malaysia • Philippines • Singapore • Taiwan • Thailand EMPLOYMENT CONTACT bankofamerica.com/careers bankofamerica.com/campusrecruiting BUSINESS LINES/SUPPORT UNITS Finance Global Banking & Markets Global Commercial Banking Global Technology & Operations Global Wealth & Investment Management Human Resources THE STATS Employer Type: Public Company Ticker Symbol: BAC (NYSE) Chief Executive: Brian Moynihan Revenue: US$119.64 billion (FYE 12/09) Net Income: US$6.3 billion No. of Employees Worldwide: 283,717 No. of Employees in Asia: 5,000+ Customized for: vinh (
[email protected]) 91 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of America Merrill Lynch THE SCOOP Beyond America Bank of America is one of the world’s largest financial institutions, serving clients in more than 150 countries. The company has business relationships with more than 80 percent of the Global Fortune 500. In September 2008, Bank of America made just about every headline in the world, announcing that it would buy New York-based investment bank Merrill Lynch. On January 1, 2009, the bank officially acquired Merrill Lynch in exchange for common and preferred stock with a value of US$29.1 billion. BofA, which called the purchase "a great opportunity for our shareholders," expects to achieve US$7 billion in pre-tax expense savings by 2012. When the deal closed in early 2009, it made BofA the biggest U.S. bank in terms of assets, with more than US$2 trillion. It also made the combined firm the largest brokerage firm in the world, with about 16,000 financial advisors; one of the leading investment banking advisory firms, with significant operations in M&A advisory as well as debt and equity underwriting; and one of the world’s top wealth management firms, with Merrill Lynch’s nearly 50 percent stake in U.S.-based investment management company BlackRock. Also in January 2009, not long after the Merrill Lynch deal closed, BofA accepted its second round of TARP (Troubled Asset Relief Program) funds from the U.S. government, taking US$20 billion in exchange for preferred stock in the firm. That brought BofA’s total TARP funds to US$45 billion (in October 2008, the U.S. government gave US$15 billion to BofA and US$10 billion to Merrill Lynch under TARP in exchange for preferred shares). But in December 2009, Bank of America repaid the entire US$45 billion. Bank of America is headquartered in Charlotte, N.C. Many of Bank of America’s services to corporate and institutional clients are provided through its U.S. and U.K. subsidiaries such as Banc of America Securities LLC and Banc of America Securities Limited. Banc of America Securities LLC (BAS), based in New York City, is the investment banking subsidiary of Bank of America. BAS’s business spans both domestic U.S. and international investment banking markets. The use of the word Banc tends to confuse some people, but its use bears great significance in that it is indicative of the fact BAS is not a bank, and its deposits and holdings are not insured by the Federal Deposit Insurance Corporation. Based in New York City, Merrill Lynch had two main business segments when it came into the BofA fold: global markets and investment banking (with sub units of sales and trading; fixed income, currencies and commodities; equities; and investment banking), and global wealth management (which included global investment management and global private clients). Bank of America’s global banking unit focuses on companies with annual revenue of more than $2.5 million. This includes middle-market and large corporations, institutional investors, financial institutions and government entities. The unit’s services include M&A, raising equity and debt capital, lending, trading, risk management, treasury management and research. Bank of America has operated in Asia for more than 60 years, providing clients in the region with corporate investment banking, global markets, investment management, treasury management and leasing services. Today, BofA has more than 5,000 employees in Asia working out of 12 countries across five time zones. Lewis’s reign Kenneth D. Lewis, who stepped down as CEO at the end of 2009, had been the bank’s chief executive officer since 2001. Although he received a lot of heat in 2008 and 2009 (while many big banks, including BofA, were hurting), Lewis was credited with many achievements during his tenure as CEO. Under Lewis’s watch, before the worldwide economic slide, BofA doubled annual revenue, doubled annual profit, increased assets to US$1.7 trillion from US$642 billion, and grew its market capitalization to US$183 billion from US$74 billion. Since the slide, things weren’t as smooth for Lewis, who endured much criticism for acquiring Merrill Lynch just prior to Merrill announcing billions of dollars in losses. Lewis’ path to company leadership started in 1969 when he joined North Carolina National Bank (NCNB, predecessor to NationsBank and Bank of America) as a credit analyst in Charlotte, North Carolina. After various U.S. roles, he took over as manager of the bank’s international banking business in1977. Lewis’ executive progression continued and when he was appointed as chairman, chief executive officer and president of Bank of America in April of 2001, he was already serving the company as president of consumer and commercial banking and chief operating officer. In 2007, Time magazine included Lewis on its “The Time 100 List” identifying him as one of the 100 most influential people in the world. And in 2008, Lewis was named Banker of the Year by American Banker magazine. Customized for: vinh (
[email protected]) 92 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of America Merrill Lynch Time after time Bank of America can trace its roots back to the late 18th century when Massachusetts Bank was chartered in 1784 and the Providence Bank was created in Rhode Island in 1791. These banks were among the first in the U.S. As decades past and the population expanded, these banks would grow with the country, expanding and merging with smaller firms and businesses. Two centuries later, in the swinging 1960s, a southern bank known as North Carolina National Bank (NCNB) had began an aggressive plan of expansion based on the model of a “hometown bank” where a branch would individually cater to the needs of the community it served. NCNB’s model proved popular, and the bank expanded rapidly through the 1970s and 1980s. In 1991, NCNB merged with Citizens & Southern National Bank (C&S)/Sovran Corporation to form NationsBank, which acquired BankAmerica in 1998 to become Bank of America. The new entity was mighty in that its business reached across the country. But that wasn’t all for growth and consolidation. In 2004, Bank of America acquired FleetBoston Financial for US$47 billion dollars, and in 2006, the bank paid US$35 billion for the MBNA credit card business, which, in addition to its U.S. offices, had operations in Great Britain and Canada. The bank acquired U.S. Trust in 2007. Bank of America made another big purchase in 2007, acquiring the ABN Amro North American Holding Company (the American business of Dutch bank ABN Amro Holding NV and parent of U.S.-based LaSalle Bank Corporation) in October. In 2008, Bank of America purchased the U.S. diversified financial services holding group Countrywide Corporation in an all-stock transaction worth about US$4 billion, before acquiring Merrill in September. Merrill’s history The ’Merrill’ in Merrill Lynch was Charles E. Merrill, who founded the firm in New York City in 1914. He met his partner, Edmund Lynch, while living in a rented room at the YMCA. From these meager beginnings grew a firm with about 900 offices in 40 countries and total client assets of approximately US$1.6 trillion. Before being acquired by BofA, Merrill Lynch had established itself as one of the world's leading wealth management, capital markets and advisory companies, serving private clients, institutions and corporations, and small businesses. As of mid2008, the firm employed nearly 63,100 people worldwide. Awards and rankings • • • • • • No. No. No. No. No. No. 1 1 2 2 3 5 Converts U.S. Market/Global Issuers (Bloomberg, 2008) Algorithmic Trading (Alpha, 2008) Best Broker for Difficult Trades (Bloomberg, 2008) Best at Recommending Risk Management Solutions (Treasury & Risk Magazine, 2008) Overall Best Provider of Derivatives (Treasury & Risk Magazine, 2008) World’s Best Brokers (Bloomberg, 2008) IN THE NEWS January 2010: New CEO announces management team Brian Moynihan, the new chief executive officer and president of Bank of America, announced the company's most senior management team: Steele Alphin, chief administrative officer; Cathy Bessant, global technology and operations executive; David Darnell, president of global commercial banking; Barbara Desoer, president of home loans and insurance; Anne Finucane, global strategy and marketing officer; Sallie Krawcheck, president of global wealth and investment management; Tom Montag, president of global banking and markets; Ed O'Keefe, general counsel; Bruce Thompson, chief risk officer; and Joe Price, who will become president of consumer, small business and card banking (Price will continue to serve as chief financial officer until February 1st while the bank searches for a new CFO). Customized for: vinh (
[email protected]) December 2009: BofA’s new chief Ending a highly publicized search for a new CEO, Bank of America named Brian Moynihan as its new chief executive officer. Moynihan most recently headed BofA’s consumer and small business banking. (He officially replaced outgoing CEO Ken Lewis on January 1, 2010.) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 93 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of America Merrill Lynch December 2009: The big payback Bank of America repaid the entire US$45 billion it borrowed under the U.S. government’s Troubled Asset Relief Program. Repayment followed the successful completion of a securities offering. October 2009: Big loss Bank of America posted a 2009 third-quarter loss of US$1 billion (26 cents a share) compared with US$1.18 billion in profit (15 cents a share) in the same period in 2008. However, due mostly to its acquisition of Merrill Lynch, BofA’s revenue increased 33 percent to US$26.04 billion. Analysts had predicted a 6-cent per-share loss on revenue of $27.7 billion. Additionally, the bank had US$2.6 billion in write-downs. The report was the last to fall under the watch of CEO Kenneth Lewis (who officially retired from his post on December 31, 2009). A day before the release of the third-quarter numbers, Lewis agreed to surrender his salary and bonus for 2009. August 2009: Sontag takes his leave Bank of America Merrill Lynch’s brokerage head, Daniel Sontag, said he will retire—an announcement that came shortly after Bank of America hired Sallie Krawcheck as head of its global wealth and investment management unit. In a conference call, Sontag indicated that he was leaving voluntarily, insiders told The Wall Street Journal. Sontag, who had been with Merrill since 1978, had held his brokerage head role since January 2009. Industry watchers indicated that Sontag’s departure may point to an overall wearing down of the Merrill culture, which has seen a number of exits as of late. August 2009: Hiring Krawcheck Bank of America confirmed several management changes. The bank hired Sallie Krawcheck, former head of global wealth management at Citigroup, as head of its global wealth and investment management business. Additionally, BofA said that Brian Moynihan, then the head of its global corporate and investment banking and global wealth management units, would be taking over the reins as the bank’s head of consumer banking. Meanwhile, BofA confirmed that Liam McGee, head of its consumer and small-business banking arm, was resigning. Tom Montag, the head of BofA’s global markets division, would also head up BofA’s global corporate and investment banking unit. The moves “position a number of senior executives to compete to succeed me at the appropriate time,” CEO Kenneth Lewis said in a statement. June 2009: Bull by the horns Bank of America confirmed that it decided to resurrect Merrill Lynch’s iconic bull symbol in a new promotional campaign. The print and Internet campaign will publicize BofA’s Merrill Lynch unit via the “thundering herd” tagline. BofA Chief Marketing Officer Anne Finucane told the Financial Times that after interviewing clients, the firm realized that “combined, the brands are stronger than either on their own.” May 2009: Raising billions Revealing the results of its stress tests, the U.S. government told Bank of America it needed to increase Tier 1 common capital by $33.9 billion to endure the possibility of an intense and prolonged downturn (beyond what economists had forecasted). As of the end of June 2009, Bank of America had raised the $33.9 billion, mainly by selling common stock worth $13 billion, selling $7.3 billion worth of its shares in China Construction Bank and converting nongovernment-owned preferred stock into common stock. April 2009: Lewis voted out as chairman Customized for: vinh (
[email protected]) During Bank of America's annual shareholders’ meeting, Ken Lewis was removed from his post as BofA chairman when shareholders narrowly passed a proposition (50.34 percent in favor) preventing one person from holding the firm's CEO and chairman position at the same time. (Lewis retained his chief executive title). The board elected Dr. Walter E. Massey, a Bank of America board member since 1998 and president emeritus of Morehouse College, to serve as chairman of the board. Lewis, once celebrated as a top banker, has become a highly controversial figure in the industry. After paying what some industry watchers deemed as too much for Merrill Lynch, BofA endured two governmental rescue packages. New York Attorney General Andrew Cuomo is also currently investigating whether Lewis informed shareholders of the risks of such a transaction. During the shareholder meeting, Lewis defended controversial transactions such as Merrill and Countrywide, saying, "These acquisitions are not mistakes to be regretted. Both are looking more like successes to be celebrated. We are building this company for the long run.” 94 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of America Merrill Lynch April 2009: BofA turning around Bank of America posted first quarter 2009 net income of US$4.25 billion, up from US$1.21 billion in the first quarter of 2008. The bank was bolstered by its Merrill Lynch and Countrywide units, profiting from trading at Merrill and mortgage refinancing at Countrywide. Merrill brought US$3.7 billion to the net income total, due largely to strong capital markets revenue. (Overall, BofA’s corporate and investment bank delivered $2.4 billion in net income, compared with a US$991 million loss in the same period in 2008). Meanwhile, mortgage banking and insurance losses decreased to US$498 million from US$732 million in 2008. BofA’s credit card division didn’t fare as well, losing $1.77 billion compared with an US$867 million in profit in the first quarter 2008. Overall, net revenue for the company jumped about 50 percent to US$35.76 billion. April 2009: Head of technology, media and telecommunications resigns George H. Young III announced his departure from Bank of America. Young, a respected banker within the industry—who headed up Merrill Lynch’s global technology, media and telecommunications division—is one of a number of bankers and executives from the firm who have chosen to leave BofA after it acquired Merrill. Insiders have indicated that some of the departures have been motivated by a difference in philosophy between the two firms. According to The Wall Street Journal, Bank of America has been accused by some of having a corporate business method as opposed to one that emphasizes person-to-person relationships. March 2009: No bonus for Lewis Bank of America said it did not give a bonus to CEO Ken Lewis or any other of its high-ranking executives in 2008. Although many of its competitors opted to pay out bonuses, the bank said its most recent financial statement didn’t measure up to its hopes. Though Lewis received a salary of $1.5 million, his total compensation (including stock-based rewards) dropped 56 percent from the previous year; according to AP calculations, it fell from US$20.4 million in 2007 to US$9 million in 2008. March 2009: Commence the probe Bank of America launched an investigation into how Merrill Lynch accounted for some suspicious trades made by traders in 2008. Among the former Merrill employees involved in the probe is London-based currency trader Alexis Stenfors, who incurred a loss of more than $120 million. Stenfors' trades set off a warning bell to the bank, which then began to look closely at the activities of other traders, some of whom had lost millions of dollars in other areas such as credit derivatives. February 2009: Who wants to be a millionaire? New York State Attorney General Andrew Cuomo revealed that 700 of the 39,000 Merrill Lynch employees were paid a bonus of US$1 million or higher in 2008. In a letter to the House Financial Services Committee, Cuomo said Merrill "chose to make millionaires out of a select group of 700 employees." Cuomo also condemned Merrill for moving its bonus payments up to December 2008, prior to the firm's merger with Bank of America. A month later, in March 2009, The Wall Street Journal reported that the annual bonuses may have been higher than Cuomo originally thought. Eleven of Merrill’s high-ranking executives accepted more than $10 million in cash and stock in 2008, insiders told the paper. Moreover, an additional 149 employees collected at least $3 million in 2008. In total, the bonus payments for the firm’s 10 highest-paid workers came to $209 million in cash and stock, up from the $201 million the firm paid out in the previous year. February 2009: Lewis gets subpoenaed Customized for: vinh (
[email protected]) New York State Attorney General Andrew Cuomo subpoenaed Bank of America CEO Kenneth Lewis in a state probe regarding whether BofA held back information from investors prior to its purchase of Merrill Lynch. According to The Wall Street Journal, in addition to looking for facts about whether investors were deliberately deceived, Cuomo is investigating if about US$4 billion in Merrill bonuses should have been revealed to investors. January 2009: Not meeting expectations During the fourth quarter 2008, Merrill Lynch lost US$15.84 billion—about US$500 million more than the US$15.31 billion loss Bank of America had calculated for the firm. The little US$500 million oversight was due to not keeping “effective” internal controls, according to Merrill’s annual report. Merrill also took several charges in the fourth quarter, including a US$2.3 billion goodwill write-down due to exposure Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 95 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of America Merrill Lynch in its fixed income, currencies and commodities trading business. Merrill’s write-downs have stirred up several federal investigations into the firm’s practices. January 2009: Thain’s exit Ex-CEO of Merrill Lynch John Thain said he would resign from Bank of America, a decision that came about one month after Merrill Lynch was acquired by Bank of America. It also came not long after Merrill's steep fourth quarter 2008 losses led BofA to take another $20 billion in federal aid (and not long after it was revealed that Thain approved bonuses for several Merrill Lynch executives days before the deal with BofA closed). According to a spokesman for Bank of America, Thain and BofA CEO Ken Lewis "mutually agreed that his situation was not working and [Thain] resigned." January 2009: Done deal Bank of America officially closed its acquisition of Merrill Lynch on January 1, 2009. December 2008: Two at the top According to Thomson Reuters, Merrill Lynch and BofA found themselves near the top of many investment league table rankings for 2008 (the firms were ranked separately for the year, since the Merrill acquisition didn’t close until 2009). Among its many top rankings in 2008, Merrill placed No. 6 in global debt, No. 7 in U.S. investment grade debt, No. 7 in international bonds, No. 3 in global equity and equity-related underwriting, No. 2 in global common stock, No. 5 in global IPOs, No. 4 in U.S. equity and equity-related underwriting, No. 1 in U.S. IPOs, No. 4 in EMEA equity and equity-related deals, No. 4 in EMEA common stock, No. 6 in global announced M&A deal advisory, No. 4 in announced U.S. M&A, No. 8 in announced European M&A, and No. 5 in global debt, equity and equity-related underwriting. Banc of America Securities, meanwhile, ranked No. 10 in global debt underwriting, No. 3 in global mortgage-backed securities, No. 4 in global debt, No. 3 in global asset-backed securities, No. 3 in U.S. investment grade debt, No. 2 in global high-yield debt, No. 7 in global equity and equity-related deals, No. 10 in global common stock, No. 5 in U.S. equity and equity-related underwriting, No. 5 in U.S. IPOs, No. 14 in global announced M&A deals and No. 8 in U.S. announced M&A. December 2008: Cutting back Bank of America announced plans to cut 30,000 to 35,000 positions over the next three years. “The layoffs will come from both BofA and Merrill Lynch, and will affect all business lines and divisions”, BofA said in a statement. BofA added that the cutbacks, which will "eliminate redundancies," are due to the Merrill acquisition and the anemic U.S. economy. BofA CEO Kenneth Lewis is hoping to save around $7 billion from the merger, necessitating the abolishment of many jobs along with the possible sale of some of its business units. At the time, BofA and Merrill combined had 260,000 employees, including 50,000 working in investment banking. September 2008: Buying Merrill Lynch Bank of America agreed to acquire legendary investment bank and brokerage Merrill Lynch. The deal followed on the heels of Merrill competitor Lehman Brothers filing Chapter 11, the largest bankruptcy in history at the time. GETTING HIRED Customized for: vinh (
[email protected]) Casting a wide net At Bank of America’s careers website (www.bankofamerica.com/careers), you can search for job openings by country, city, “job family” and keyword, and you can complete an online application by clicking the link at the end of your chosen position. Vacancies arise across the bank in a number of departments and divisions, including global banking, global markets, wealth and investment management, consumer banking, card services, risk management, technology, finance and human resources. BofA recruits at more than 200 schools globally; its careers web site maintains an up-to-date calendar of events. In addition to traditional job descriptions and information about available benefits, visitors can view associates’ video testimonials, find answers to common questions, and use a “Career Fit Tool” to see which job or line of business might suit their skills, experience, education and interests. 96 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of America Merrill Lynch An internship is a huge advantage for those seeking employment at Bank of America; interns are more likely to move to the head of the hiring line. The firm offers summer internships for analysts (undergrads) and associates (grad students). Good mix DiversityInc magazine consistently names Bank of America as one of the Top 50 Companies for Diversity. Black Enterprise consistently ranks BofA one of the 40 Best Companies for Diversity. And Hispanic Business continues to rank the bank as one of the Top 60 companies for Hispanics. In addition, Working Mother magazine has recognized Bank of America as one of the 100 Best Companies for working mothers for more than 20 consecutive years. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 97 PRESTIGE RANKING 15 BNP PARIBAS SA KEY COMPETITORS Crédit Agricole HSBC Holdings Société Générale Hong Kong Branch: 59-63/F Two International Finance Centre 8 Finance Street Central, Hong Kong Phone: +852-2909-8888 Fax: +852-2865-2523 www.bnpparibas.com EMPLOYMENT CONTACT careers.bnpparibas.com graduates.bnpparibas.com LOCATIONS IN ASIA PACIFIC Australia • Brunei • China • Hong Kong • India • Indonesia • Japan • Korea • Macau • Malaysia • New Zealand • Pacific Islands • Philippines • Singapore • Taiwan • Thailand • Vietnam DEPARTMENTS Asset Management & Services Corporate & Investment Banking International Retail Services THE STATS Employer Type: Public Company Ticker Symbol: BNP (Euronext) President, CEO & Director: Baudouin Prot Revenue: €27.34 billion (FYE 12/08) Net Income: €3.02 billion No. of Employees: 169,800 No. of offices: 2,200 Customized for: vinh (
[email protected]) 98 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition BNP Paribas SA THE SCOOP BNP meets Paribas BNP Paribas was born in 2000 when two French banks, Banque Nationale de Paris (BNP) and Paribas, merged to form the most profitable bank in the Eurozone, as well as one of the largest banks in the world. Today, the company has more than 169,800 employees operating in 85 countries around the world. The bank's presence in Asia is substantial, with operations in numerous countries, including China, Japan, South Korea, Taiwan, Hong Kong, the Philippines, Vietnam, Thailand, Malaysia, Singapore, Indonesia and India. Worldwide, BNP Paribas has five major areas of business: French retail banking, international retail services, asset management and services, operations of BNL (Italy's Banco Nazionale del Lavoro, which BNP Paribas took over in 2006), and corporate and investment banking. In Asia, BNP Paribas' business is divided into two core areas: corporate and investment banking (CIB), and asset management and services. The CIB activities are balanced between advisory and capital markets and specialized financing. Within CIB, the client coverage organization manages the bank's client portfolio along with financial institutions and large corporations. Asset Management handles the asset-gathering arm of the group, including Private Banking and BNP Paribas Investment Partners. In July 2008, BNP Parias’ CIB unit established a centralized worldwide entity. Two new business lines were created: global structured finance (which now includes the structured finance activities of origination, structuring, execution and syndication for all business sectors) and the corporate and transaction group. A foothold in the mainland Like many of the largest international banks, BNP Paribas has partnered with a Chinese bank to give it a foothold in the country. In October 2005, the firm joined forces with Bank of Nanjing, the eighth-largest commercial city bank in China with 60 branches and 1,500 employees. Bank of Nanjing was previously named Nanjing City Commercial Bank, but was renamed in 2007. Unlike many other Sino-foreign bank relationships, Bank of Nanjing is not one of the one major state-owned banks but a relatively small regional retail bank in the province of Jiangsu in eastern China. At the time of its deal with BNP Paribas, Bank of Nanjing had an impressive US$5.3 billion of total assets. Under the terms of the agreement, BNP Paribas originally purchased a 19.2 percent stake in the Chinese bank, close to the regulatory cap of 19.9 percent. However, this stake was diluted to 12.6 percent following Bank of Nanjing's IPO in July 2007. The two banks are collaborating in the retail banking area while also offering services such as credit cards, wealth management and corporate banking. On the Orient express BNP Paribas teamed up with another bank in Asia in 2007 when it purchased a share of Orient Commercial Joint-Stock Bank (OCB), a Vietnam-based financial services company. The move gave the company key representation in a market that is still largely untapped. The bank announced in 2006 that it would purchase an initial 10 percent stake in OCB at an undisclosed sum. The finalization of these plans was signed in Paris in October 2007 and an inauguration ceremony was held in Ho Chi Minh City (where the bank is headquartered) in early 2008. In February 2008, things were going so well between the two banks that BNP Paribas announced that it would seek the Vietnamese government's approval to double its stake in OCB to 20 percent. OCB had an impressive year in 2007, with its total assets shooting up 82 percent to VND 11.8 trillion (US$737 million). Private riches Customized for: vinh (
[email protected]) One of BNP Paribas' main Asian businesses is its private banking division, which has operations in Singapore, Hong Kong, China, India and Taiwan. With wealth skyrocketing in these regions, the competition is high to get in on the action. In 2006, the world's percentage of highnet-worth individuals increased 8.3 percent to 9.5 million. That same year, there were 345,000 people in China with investable assets of US$1 million or more. In India and Singapore, the high-net worth population grew by 21.2 and 20.5 percent, respectively, the largest increase of all the nations in the world. The clients that use BNP Paribas' private banking services usually have about US$5 million or more in investable assets. The CEO of BNP's Asian private banking operations, Michel Longhini, recently said that he expects total assets in the private banking sector in Asia to grow by 20 percent each year for the next several years. Currently, the bank has six offices in India and two in Taiwan, employing about 100 people combined. The operations in Singapore and Hong Kong are the two key regional hubs in Asia, with about 550 total employees. As of June 2008, BNP Paribas Private Bank had about US$32 billion in assets under management in Asia. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 99 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition BNP Paribas SA Overturning the odds Despite the bleak financial picture that many banks across the globe encountered in 2008, BNP Paribas was able to navigate its way through the economic wreckage with relative ease. Thanks to the resilience of retail banking and AMS, and through a mix of cost cutting measures that saw bonuses reduced, operating expenses were contained at 18.4 billion, while total revenue was down by 11 percent to €27.3 billion. By the end of 2008, pre-tax income was down from €7.8 billion to €3.9 billion, but this was still enough to put the bank’s profits in the world’s top 10. Going forward into 2009, the bank revealed its plan to avert financial difficulties: reduce market risk and risk-weighted assets, strengthen its capital base through earning generations and participate in the French stimulus plan, while stabilizing its cost base. Awards and Rankings • • • • Forbes Global 2000, No. 13 (Forbes, 2008) Best Overall Provider of FX Services (Asiamoney, 2008) Derivatives House of the Year/Best Equity Derivatives House/Best Derivatives House: Japan/ Best Derivatives House: Taiwan (The Asset, 2008) Japan House of the Year/Asia House of the Year (Structured Products, 2008) IN THE NEWS April 2009-August 2009: Changes high up In April, BNP Paribas Capital (Singapore) received a new chief executive in the form of experienced banker Johnson Tan. He was also made head of the bank’s South East Asian corporate finance unit, which provides banking clients with services for M&A as well as primary equity market transactions. Tan has over 20 years of experience in M&A deals for large corporations and government bodies and was working as the managing director of corporate finance for South East Asia at the Macquarie Group before being hired by the French bank. Another appointment included Chinese banker Margaret Ren, who was made chairwoman and chief executive of BNP Paribas’ corporate finance division for Greater China in August. A former managing director and chairwoman of China investment banking at Merrill Lynch (Asia Pacific), Ren proved to be a star banker at her former bank and is seen as a pioneer in investment banking in China. She was one of many Merrill Lynch employees at the time to defect to other banks across the globe. April 2009-May 2009: Sharia compliant BNP Paribas revealed that it was looking to boost its revenue from Islamic finance four-fold by the end of 2011, through expanding its corporate banking products and Islamic operations in South East Asia. By May, the French bank was granted its first license in Islamic asset management and launched BNP Paribas Islamic Asset Management Malaysia. The license will enable the bank to provide its clients with a full range of Sharia-compliant asset management products. Malaysia, along with Saudi Arabia comprises 48 per cent of the bank’s Islamic funds and 61 per cent of their assets. April 2009: Weeding out insider trading In what was Hong Kong’s first criminal conviction for insider dealing, Ma Hon Yeung, a former vice president of BNP Paribas Capital (Asia Pacific) was handed 26 months imprisonment along with a fine of $29,680. Ma and four others were found guilty on a total of 12 insider dealings and related offences and given fines equaling the profits made while dealing in shares of Egana Jewelry & Pearls. Ma was found guilty of using his position at the Paris-based bank to tip off the other four defendants about the proposed privatization of the jewelry firm. Customized for: vinh (
[email protected]) March 2009: Leaving Tokyo Joining an exodus of foreign companies, BNP Paribas delisted its shares from the Tokyo Stock Exchange, in March. The reason behind the move was said to be due to the big drop in trading in its shares in Japan over the last few years. The bank joined the likes of BP, Société Générale and Boeing in leaving the exchange, which at the time of delisting had a mere 15 foreign companies, down from a peak of 127 in 1991. 100 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition BNP Paribas SA January 2009: Insurance move In a move designed to tap into Asia’s top insurance markets, BNP Paribas announced the formation of a $60 million insurance tie-up with Taiwan Cooperative Bank. The French bank will hold a 49 percent stake in the joint venture, while its Taiwan counterpart takes the rest. The move came at a time when ING had sold its Taiwan insurance business to Fubon Financial and AIG, the damaged US insurer was trying to sell its Taiwan business Nan Shan Life. December 2008: Hiring and firing Despite the very gloomy headlines towards the end of 2008 regarding impending job losses, BNP Paribas Wealth Management claimed that it still had plans to hire 100 more people in 2009 for Asia, with 80 to be based in Singapore. Of these 80, 30 new hires would be senior relationship managers, while the bank was looking to add another 50 people to its international IT hub. The bank stated at the time that by 2009 it expected the headcount in Singapore to reach 500, up from 350. It wasn’t all positive for the bank at the turn of the year, however, as it also revealed that it was to lay off 50 workers from its Asian corporate and investment banking division in January in an effort to cut costs. October 2008: A Belgian snack France’s biggest bank also became the biggest in the Eurozone after it paid 14.5 billion in cash and shares to take control of stricken Belgian bank Fortis, just days after it was the target of a government-led rescue package. BNP Paribas gained control of Fortis’s banking businesses in Belgium and Luxembourg for 9 billion, funded through issuing 132.6 million new BNP Paribas shares. As a result of the deal, BNP Paribas’ deposit based rose from 586 billion to 239 billion, including $30 billion of client assets and liabilities in Asia, where the bank was a top 10 private bank with over 860 employees. June 2008: Making moves in China In June 2008, BNP Paribas announced the completion of its conversion project in China, a prerequisite for the bank to conduct expanded services in China. BNP Paribas had secured approval in April 2008 by China's banking regulator, the China Banking Regulatory Commission, to convert the branches of BNP Paribas in Beijing, Tianjin and Guangzhou into branches of BNP Paribas (China) Limited, a wholly owned subsidiary of the bank. The Shanghai branch of BNP will be retained as a wholesale foreign currency branch under the BNP Paribas Group. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 101 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition BNP Paribas SA GETTING HIRED Get your foot in the door Graduates interested in corporate and investment banking in Asia Pacific get their own campus recruitment page at graduates.bnpparibas.com. (A separate Japanese-language recruitment site for Japan is operated at www.bnpp.jp/recruit/index.html.) The site is organized into four sections: business area, route, role and location. Locations in Asia Pacific include Ho Chi Minh City, Hong Kong, Jakarta, Mumbai, Seoul, Shanghai, Singapore and Sydney. Analyst and associate positions are offered throughout these cities—check each city's details on the recruitment site for further information. Summer internships are also available in Hong Kong to students from their second year of a bachelor's degree up to PhD or MBA level. BNP Paribas has a number of different career paths, but recruits heavily in corporate and investment banking (corporate banking, corporate finance and capital markets activities), retail banking, asset management and services (including private banking and securities), and support functions. More details on these opportunities are available on the firm's careers page at careers.bnpparibas.com or at graduates.bnpparibas.com. For Asia Pacific, the firm's careers page also has links to local pages and contact information for its human resource departments at offices in Hong Kong, India, Japan and Singapore. Just click "Other countries" under the country list and you'll be directed to the right place to apply. You can also apply for an internship directly by submitting an application to the location of your choice. In Hong Kong and Singapore, BNP Paribas offers opportunities in corporate and investment banking, private banking and asset management. For Hong Kong, you can email your CV and cover letter to
[email protected], and for Singapore, you can send them to
[email protected]. India can be reached at
[email protected] for corporate and institutional banking, private banking and individual banking opportunities. Japan offers corporate and institutional banking, and can be contacted at
[email protected]. Customized for: vinh (
[email protected]) 102 © 2009 Vault.com Inc. PRESTIGE RANKING 16 CITIGROUP INC. KEY COMPETITORS Bank of America Merrill Lynch Barclays Deutsche Bank HSBC Holdings J.P. Morgan 50/F Citibank Tower Citibank Plaza, 3 Garden Road Central, Hong Kong www.citigroup.com LOCATIONS IN ASIA PACIFIC Australia • Bangladesh • Brunei • China • Guam • Hong Kong • India • Indonesia • Japan • Korea • Macau • Malaysia • New Zealand • Philippines • Singapore • Sri Lanka • Taiwan • Thailand • Vietnam PLUSES • “Responsibility at young age” • “Strong brand image and reputation” • “Steep learning curve” BUSINESSES Citicorp Institutional Clients Group Citi Capital Advisors Citi Investment Research & Analysis Global Banking Global Markets Global Transaction Services Regional Consumer Banking Citi-branded Cards Local Commercial Banking Retail Banking Citi Holdings Brokerage and Asset Management Consumer Finance Special Asset Pool MINUSES • “Cut throat" • "Dog-eat-dog culture” • “Lot of politics, especially at senior management positions” EMPLOYMENT CONTACT Graduate Recruitment: oncampus.citi.com Lateral Hiring: careers.citigroup.com THE STATS Employer Type: Public Company Ticker Symbol: C (NYSE) CEO, Citi: Vikram S. Pandit Co-CEOs, Asia Pacific: Shirish Apte & Stephen Bird Chairman, Asia Pacific: Shengman Zhang Revenue: US$91.81 billion (FYE 12/09) Net Income: US-$1.6 billion No. of Employees: 276,000 (worldwide) No. of Offices: 7,500 (worldwide) Customized for: vinh (
[email protected]) 103 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. THE SCOOP A changing Citi Citigroup Inc. (now commonly referred to as simply Citi) serves over 200 million customer accounts in more than 100 countries and has over 265,000 employees worldwide. Citi had traditionally been revered as the world’s largest financial services group, but the financial crisis has not been kind to this global giant. During the crisis, Citi has seen billions of dollars wiped off its market value, laid off nearly 100,000 employees worldwide since the start of 2008, received US$45 billion in assistance from the U.S. government and sold off some non-core assets in 2009— including its U.S. and Japanese brokerage arms. For many years, Citi operated its businesses through four key areas: markets and banking, global consumer banking and global cards, global wealth management and alternative investments. In October 2007, Citi merged its markets and banking unit with its alternative investments group to create an institutional clients group, with the aim of offering the full range of corporate and investment banking services. Then in January 2009, given the dramatic and profound changes in the markets, Citi restructured its businesses into two primary segments: Citicorp and Citi Holdings. Citicorp is now the core franchise of institutional and consumer businesses, aiming to be the source of Citi’s long-term profitability and growth, while Citi Holdings' assets are planned to be managed to optimize their value over time. Still going strong in Asia Over the past several years, the Asia Pacific region has been one of the fastest-growing regions for Citi. In the third quarter of 2009, Citi Asia Pacific’s consumer banking business was the largest net income contributor to Citigroup’s earnings, accounting for over 65 percent. For the first nine months of 2009, Citi in Asia reported revenue of around US$11 billion and net income of US$3.5 billion, making it one of the most profitable regions for Citi globally. Citibank is one of the leading financial services brands in the region, serving more than 35 million customer accounts in 14 markets in Asia Pacific, and is the top card issuer with 15 million card accounts in circulation. With over 600 branches across the region and more than 2,000 ATMs, Citi was the first to launch mobile banking services for customers in China, India, the Philippines and Singapore in 2009. Citi also recently launched consumer banking and private banking services in Vietnam. Through its institutional clients group business, which operates in 18 markets in Asia Pacific, Citi helped reopen Asia Pacific’s capital markets in 2009, underwriting the first IPO of the year (Real Gold in Hong Kong), the first convertible bond (SK Telecom in Korea), the first corporate bond (Posco in Korea), the first rights issue (DBS in Singapore), the first covered bond (Kookmin Bank in Korea) and the first high-yield bond (Matahari in Indonesia). Citi, the first U.S. bank to establish operations in Asia, has been in the region for more than 100 years. It opened its first branch in Shanghai in 1902 through its predecessor company, the International Banking Corporation (IBC), and expanded to Hong Kong, India, Japan, the Philippines and Singapore in the same year. (In Japan, Citi has been involved in a joint venture with the Nikko Cordial Corporation since 1999; in October 2009, Nikko Citigroup Limited was renamed Citigroup Global Markets Japan.) Citi expanded further into Asia Pacific in the 1950s, 1960s and 1970s, launching operations in Australia, Brunei, Guam, Indonesia, Korea, Malaysia, New Zealand, Sri Lanka, Taiwan and Thailand. Today, in the region, Citi serves multinational organizations, local corporations and financial institutions, offering a range of products and services, including securities sales and trading, foreign exchange, investment banking, project finance, cash management, custody and syndicated loans. In July 2009, Euromoney named Citi the Best Bank in Asia for the 10th consecutive year; Citi also nabbed Best Bank in Singapore, Best Cash Management in Asia Pacific, and Best Hong Kong Equity House from Euromoney. Customized for: vinh (
[email protected]) Raising capital Citi found itself in the center of the subprime storm in 2007 and early 2008 with heavy losses related to subprime mortgages. In the fourth quarter of 2007, the firm announced its exposure to the mortgage market and write-downs of US$18.1 billion, which led to a net loss of US$9.8 billion for the quarter, the biggest quarterly loss in Citi's history. The firm was also one of many American companies to tap investments from sovereign wealth funds and foreign investors in order to bolster liquidity. Citi's cash came from a variety of different sources. In November 2007, the firm announced it would receive a cash infusion of US$7.5 billion from an Abu Dhabi sovereign wealth fund. In January 2008, the Government of Singapore Investment Corporation (GIC) pumped US$6.88 billion into Citi in exchange for a 4 percent stake. Capital Research Global Investors, Capital World Investors, the Kuwait Investment Authority, Saudi Arabia's Prince Alwaleed bin Talal, and Sanford Weill also contributed capital. 104 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. Beyond that, Citi continued to raise liquidity as it received US$45 billion in October and November 2008 from the U.S. Treasury's Troubled Asset Relief Program (TARP). The U.S. government became Citi's largest shareholder, taking a 34 percent stake in the bank. At the end of the third quarter of 2009, Citi’s Tier-1 capital ratio, a key measure of financial strength, was 12.7 percent, among the highest in the industry. Big layoffs Citi laid off about 17,000 people in April 2007 in anticipation of subprime-related losses in the second half of the year. In January 2008, Citi announced it was cutting 4,200 jobs from its investment banking division in order to reduce costs. At the time, Citi said that its ultimate total number of layoffs could be close to 20,000 to 24,000, which—due to the firm's massive size—still only accounted for less than 10 percent of Citi's workforce. But after four consecutive quarters of losses, Citi announced in November 2008 that it would be cutting an additional 52,000 jobs globally. Further reductions have left Citi with a workforce of around 265,000 employees globally as of December 2009. Pandit's keys to the Citi Vikram Pandit became the CEO of Citi in December 2007, replacing interim CEO Sir Winfried Bischoff. Pandit succeeded Chuck Prince (Charles O. Prince III), who had taken his post in 2003. To say the least, Pandit's job has not been easy, taking the helm of the world’s largest banking and financial services group during the worst financial crisis in modern times. Pandit joined Citi just after the global banking group purchased Old Lane Partners, the hedge fund that Pandit set up after leaving Morgan Stanley. (Unfortunately for Old Lane, after two years of “flat” returns that caused US$200 million of write-downs in the first quarter of 2008, Citi decided to close down the hedge fund.) At the time of his appointment, industry commentators noted that in the wake of the losses the group was hit with under Prince, Pandit would have to address the firm’s risk management practices to win back the confidence of staff and investors. Although Pandit lowered the bank’s costs and allowed reinvestments in growth in 2007, the following year was not so peachy. However, in 2009, the bank reported three consecutive quarters of global profitability. The completion of an exchange offer in the third quarter this year also resulted in an additional US$64 billion of Tier-1 Common and US$60 billion of Tangible Common Equity. Citi’s TCE and Tier-1 Common ratios improved to 10.3 percent and 9.1 percent respectively at the end of the third quarter, placing it among the strongest in the industry. Even so, when the firm reported its year-end earnings at the beginning of 2010, the three quarters of profits were erased, as Citi booked a US$7.6 billion loss in the fourth quarter. That resulted in an overall 2009 loss for Citi of US$1.6 billion. Awards and rankings • Best Foreign Bank in Philippines, Best Foreign Bank in Singapore, Best Foreign Bank in Thailand (Alpha Southeast Asia, 2009 • Islamic Product House of the Year (Asia Risk, 2009) • Best Global Cash Management Banks (as voted by Asian corporates in small, medium and large categories), Best Global Cash Management Bank (as voted by financial institutions in small and medium categories), Best U.S. Dollar Cash Management Services, Best at Understanding of Business Strategies and Objectives, Best at Implementing of Cash Management Solutions, Best After-Sales Customer Service, Best Electronic Banking Platform, Best Local Currency Cash Management Services (Asiamoney, 2009) • Best Agency and Trust Bank, Best e-Commerce Bank, Best in Corporate Trust, Best Cash Management Bank—North Asia, Best Cash Management Bank—Indonesia, Best Cash Management Deal—Samsung Electronics, global liquidity solution, Best Transaction Bank— Indonesia, Best Transaction Bank—Philippines, Best Trade Finance Bank—Philippines (The Asset, 2009) • Best Bank in Asia (10 years in a row), Best Cash Management Bank in Asia, Best Equity House in Hong Kong, Best Bank in Singapore (Euromoney Awards for Excellence, 2009) Customized for: vinh (
[email protected]) • Best Foreign Investment Bank in India, Best Foreign Commercial Bank in Indonesia, Best Foreign Commercial Bank in Hong Kong (12 consecutive years), Best Foreign Commercial Bank in Korea, Best Foreign Commercial Bank in the Philippines (11 consecutive years), Best Foreign Commercial Bank in Sri Lanka Best Foreign Commercial Bank in Singapore (13 consecutive years), Best Foreign Commercial Bank in Taiwan (12 consecutive years), Best Foreign Commercial Bank in Thailand (seven consecutive years) (FinanceAsia, 2009) • Best Corporate/Institutional Internet Bank: Australia, Bangladesh, India, Japan, Kazakhstan, Korea, New Zealand, Pakistan, the Philippines, Thailand and Vietnam (Global Finance, 2009) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 105 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. • Best Global Cash Management Bank, Best Bank for Liquidity Management in Asia (seven consecutive years), Best Foreign Treasury and Cash Management Bank in China (Global Finance, 2009) • Best Overall Trade Bank in Asia (five consecutive years), Best International Trade Bank in Hong Kong, India, Malaysia, Thailand and Vietnam (Trade Finance, 2009) IN THE NEWS October 2009: Jewel in the crown The Asia Pacific business has been described as the "jewel in the crown" for Citi, and its third quarter 2009 results showed why. Net income for the banking giant in the region stood at US$845 million for the quarter, the largest net profit result for any region in which it operates. "Asia Pacific is a credit-tested durable business," said Asia Pacific co-CEO Stephen Bird. "China lies at the very heart of Citi's Asia Pacific priorities." Citi's business on the Chinese mainland, Taiwan and Hong Kong contributed to about one-third of Citi's overall business in the region. October 2009: Keen to expand in India Citibank said it is keen to expand its branch network in India to enhance operations and serve existing customers better. "Citi would love to open more branches in India," Citi South Asia CEO Mark Robinson remarked in a statement. At the time, Citibank had 41 branches with 4,795 employees in India. Credit growth of Citibank, Robinson said, would be faster in commercial banking and small and medium enterprises portfolios, and relatively slower in consumer banking in the current fiscal climate. Expressing optimism over the country's growth prospects, Robinson said, "On the (Indian) economy, the outlook is very positive; we feel very good about the next 12 months." October 2009: New APAC head for consumer and cards Jonathan Larsen was appointed the head for Citi Asia Pacific's consumer banking and global cards businesses. Most recently serving as Citi's country head for Singapore, Larsen got his start at Citi in 1998 and has handled a variety of senior management roles across the Asia Pacific region, including serving as the head of Southeast Asia and head of retail banking for Citibank in Asia Pacific. In his new role, he'll be based in Hong Kong and reporting to Asia Pacific co-CEOs Stephen Bird and Shirish Apte. Larsen's successor in Singapore was not immediately announced. October 2009: Foraging deeper into China Expanding further into rural China, Citi China opened its third lending company ias Dalian Wafangdian Citi Lending Co. was established near the northeastern port city of Dalian. (The other two lending businesses are located in the Gong'an and Chibi areas in Hubei province.) With registered capital of RMB 17 million and 10 employees to start, Dalian Wafangdian Citi Lending offers both secured and unsecured loans to individuals, self-employed and micro-businesses. In China, Citi now operates eight corporate bank branches and 26 consumer bank outlets in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Hangzhou, Dalian and Chengdu. In March 2007, the China Banking Regulatory Commission granted Citi China approval to begin operations as a locally incorporated bank. October 2009: First retail branch in Vietnam Citi opened its first Vietnam retail banking branch. Located in Ho Chi Minh City's central business district, the branch provides deposit and remittance services. Citi has been in Vietnam since 1993, with commercial banking outlets in both Hanoi and Ho Chi Minh City. Citi is the first U.S.-based bank to open for retail banking in Vietnam; HSBC, Standard Chartered and ANZ already operate retail banking services in the rapidly developing country. Shirish Apte, Citi Asia Pacific's co-CEO, remarked, "We believe in Vietnam's future, and are committed to continuing to invest here and actively participate in Vietnam's economic growth." Customized for: vinh (
[email protected]) October 2009: Water under the bridge? Businessman Oei Hong Leong, one of Singapore's 40 richest people in 2009 according to Forbes, filed a lawsuit against Citi's private banking arm in May 2009. Oei claimed he had lost about SG$1 billion in 2008 due to conflicting reports from Citi on his margin surplus in October 106 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. 2008. In a June court filing, Citi denied that it had provided misleading or inaccurate information, and stated that Oei was aware of the "considerable risks" of his investments. Oei and Citi eventually settled out of court in October 2009; terms of the settlement were kept confidential. In a Bloomberg interview, Oei remarked, “I am quite happy with the outcome and I’ve put this 100 percent behind me. How do you say it in English? Water under the bridge. It’s all been quite amicable and I have no hard feelings.” July 2009-October 2009: Sayonara, Nikko In early 2007, Citi announced its intentions to acquire 100 percent of Nikko Cordial's brokerage business, Nikko Cordial Securities, as part of the plan for Citi's expansion in Japan. By the end of the year, the deal was completed, with Citi paying US$13.4 billion. However, the tie-up with Nikko Cordial Securities was extremely short-lived, as Citi did a complete reversal on its expansion plans in Japan. In January 2009, Citi announced plans to focus on core assets in retail banking, taking a step back from asset management and brokerage services. CEO Vikram Pandit said that the firm is “moving extremely fast” on asset sales. The latest sale came after U.S. regulators performed a "stress test" and advised Citi to improve its capital base by US$5.5 billion. First, Citi sold its Japanese asset management arm, Nikko Asset Management, to Sumitomo Trust for US$795 million in July 2009. The deal created one of the largest asset management groups in Japan. Then, in October 2009, a subsidiary of Japan-based Nomura Holdings, Nomura Trust & Banking, successfully purchased NikkoCiti Trust and Banking Corporation for US$212 million, with Citi ICG advising on the deal. Following that, Citi inked a deal with Japanese banking giant Sumitomo Mitsui Financial Group (SMFG) to sell Nikko Cordial Securities for US$8.7 billion—selling it at a loss of US$4.7 billion, less than a year and a half after buying out the securities firm. The sale was completed in October 2009. Also in October 2009, Citi's joint venture with Nikko Cordial, Nikko Citigroup Limited, was renamed Citigroup Global Markets Japan. September 2009: Gupta hits the road, takes over DBS Piyush Gupta, Citi's CEO for Southeast Asia and the Pacific region, left after 27 years at Citi to take the top CEO spot at Singapore-based DBS Group. Gupta took over at DBS for Richard Stanley (formerly Citi's CEO for China), who died of complications from leukemia in April 2009. September 2009: GIC sells at a profit After investing a further US$6.88 billion into Citi in January 2008, the Government of Singapore Investment Corporation (GIC) sold about half of its stake, according to a news release. The sale of the stake left GIC holding less than 5 percent in Citi, and the government investment vehicle netted a profit of US$1.6 billion. According to the release, "This was the level GIC had intended when it invested in Citigroup through the convertible security. A stake below 5 percent reflects GIC's goals and desire to be a portfolio investor." GIC also added that it planned to continue its Citi investment based on confidence in its long-term prospects. July 2009: Continuing to look up For the second quarter 2009, Citigroup posted a US$4.28 billion profit compared with a loss of US$2.5 billion in the previous year’s same quarter. Revenue saw a 71 percent boost to US$29.97 billion. However, the news wasn’t all positive—Citi also posted a 7 percent decrease in revenue within its securities and investment banking units. The group also executed 30,000 job cuts within the quarter. June 2009-July 2009: Banga goes to Mastercard, powers divided in three Customized for: vinh (
[email protected]) In perhaps the most significant move affecting the Asia Pacific region in recent years, Citi Asia Pacific CEO Ajay Banga left in June 2009 to become second-in-command at credit card giant Mastercard (as its president and chief operating officer). Banga, who had been with Citi since 1996, had served in the Asia Pacific CEO position for just over a year, having taken the newly created post in April 2008. Powers for the Asia Pacific CEO position were divided in three in July 2009. Shengman Zhang was named the chairman for Asia Pacific, while Shirish Apte and Stephen Bird were named co-CEOs for the region. Zhang will be primarily responsible for Citi's relationships with clients, regulators, government officials and employees across the region. Meanwhile, Apte will oversee South Asia, while Bird will continue to oversee North Asia, and the two will collaborate on overall performance, strategy and execution in the Asia Pacific region. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 107 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. June 2009: Citi removed from Dow Jones blue chip index Citi and General Motors (GM) were both removed from the blue-chip Dow Jones Industrial Average. Dow Jones editor-in-chief Robert Thomson explained: "We were reluctant to remove Citigroup at the height of the financial frenzy, but it is clear that the bank is in the midst of a substantial restructuring which will see the government with a large and ongoing stake. We genuinely hope that once the bank has refashioned itself that we will again be able to consider it for inclusion—Citigroup is a renowned institution, not only in this country, but around the world." GM and Citi were replaced by Cisco Systems and former Citi insurance arm Travelers. April 2009: Good news on the earnings front Citigroup booked US$1.6 billion in net income for the first quarter of 2009, concluding five consecutive quarters of losses (including a US$5.11 billion loss in the first quarter of 2008). Revenue, meanwhile, skyrocketed to US$24.8 billion, a 99 percent increase versus the first quarter of 2008. The positive numbers were propelled by increased fixed income trading revenue, a new accounting rule letting Citi take a one-time gain of US$2.5 billion on its derivative positions and lower costs—Citi had cut operating expenses by 23 percent in the previous 12 months and its headcount by 13,000 since the beginning of 2009. February 2009: Dollar days Citigroup CEO Vikram Pandit said that he had offered to take a US$1 salary and no bonus until the bank gets back on solid financial ground, noting that he understands “the new reality” and “will make sure Citi gets it as well.” The announcement came as U.S. President Barack Obama and other lawmakers slammed Citi and other banks for giving exorbitant year-end bonus payments to top executives after accepting federal bailout funding. February 2009: India car-loan operations shuttered According to India's Financial Express, Indian unit CitiFinancial India halted the finance of automobile purchases, shutting down 280 branches and cutting 1,000 jobs. February 2009: TARP spending breakdown Citi posted its initial progress report regarding its use of the funds from the U.S. government’s Troubled Asset Relief Program (TARP). During the fourth quarter of 2008, of the US$45 billion it received, Citi said it had lent US$36.5 billion, including US$1 billion in student loans and US$2.5 billion in business and personal loans. Citi also increased credit lines, opened new credit card accounts and spent US$27.5 billion to buy mortgages in the secondary market during the last three months of 2008. Also in February, the U.S. Treasury boosted its stake in Citi from 8 percent to 36 percent, converting US$25 billion of its preferred stock into common equity. The move freed up some much needed capital for Citi—the bank doesn’t have to pay dividends on the common stock unlike it did on the preferred. It also significantly diluted existing shareholders’ stake in Citi by nearly 75 percent. According to Citi CEO Vikram Pandit in a statement, the swap “has one goal: to increase our tangible common equity.” Pandit added, “While we believe Tier 1 capital remains the most important measure of the financial strength of banks, we recognize that the markets also view tangible common equity as an important measure.” Coinciding with the announcement, Citi agreed to make several changes, including changing the makeup of its board to include a majority of independent directors. January 2009: Divide and conquer? Customized for: vinh (
[email protected]) Upon the announcement of its financial results for the year, Citi revealed that it was splitting into two operating units: Citicorp and Citi Holdings Inc. The former would continue to provide traditional retail and investment banking services, while the latter would oversee what remained of the group’s high-risk investments (many had already been sold off). Citi itself remained as the parent company, but potential spin offs and mergers from either of the units were not ruled out as possibilities. In fact, the two operating units were divided so that Citicorp remained the core bank, while Citi Holdings encompassed the saleable assets. Along with the restructuring, Citi announced its fifth consecutive quarterly loss, as it booked a loss of US$8.29 billion for the fourth quarter of 2008. 108 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. January 2009: Divesting U.S. brokerage business over time Citi agreed to combine its Smith Barney brokerage unit with U.S.-based Morgan Stanley’s brokerage division, in effect selling a 51 percent majority stake in the joint venture for US$2.7 billion. Morgan Stanley is expected to acquire full control of the venture, named Morgan Stanley Smith Barney, in phases over the next five years. December 2008-January 2009: Sale of assets in India As part of its restructuring, Citi sold off two major businesses in India. First, in December 2008, Citi announced that it had completed the sale of its India-based business process outsourcing (BPO) unit, Citigroup Global Services Limited (CGSL). CGSL was sold to Indian giant Tata Consultancy Services (TCS) for US$512 million, with part of the agreement being that TCS will provide outsourcing services through CGSL to Citi and its affiliates over the next nine and a half years. The CGSL sale resulted in Citi reducing its overall headcount by more than 12,000 employees. Then, in January 2009, Citi announced that it had completed the sale of technology infrastructure support and application development unit Citi Technology Services Ltd. (India). Citi Technology Services was sold to another Indian giant, Wipro Technologies, for US$127 million. Like the CGSL deal, Citi inked an agreement with Wipro to deliver technology infrastructure services and application development and maintenance services over the next six years. December 2008: Injecting cash into Korea Giving a boost to its Korean banking arm, as well as support to the idea that Asia would continue to be a key region for Citi going forward, the group injected US$800 million of new capital into Citibank Korea. According to Reuters, 60 percent of the injection will be used for new shares, while the remainder will be earmarked for subordinated debt. November 2008: Deeper cuts After four consecutive quarters of losses, Citigroup announced it would be cutting an additional 52,000 jobs (in addition to the 23,000 it had already sacked before the announcement). The planned cuts are blamed on the ongoing financial crisis and global credit conditions. Cuts are expected to come from attrition, the sale of various units and assets, and outright layoffs. In a good sign for Asia, cuts were expected to be significantly lower than in other regions. Reuters reported that, in Singapore, cuts would be less than 300, with a small number of positions cut in Australia as well. About 150 job cuts in Asia (excluding Japan) were reported to come from wealth management, with about 90 of those coming from Singapore and Hong Kong. The Associated Press reported that 1,000 jobs would be cut from Citi's brokerage unit in Japan. The AP also reported that Citi would be expanding its workforce and hiring more workers in the Philippines, with the intent of setting up a regional call center hub. November 2008: Nayar heads to KKR, Robinson takes over South Asia Sanjay Nayar, Citi's head of the South Asia cluster, left his post to join the Indian unit of private equity firm Kohlberg Kravis Roberts & Co. (KKR). Nayar had been at Citi in various roles for 23 years, and called the decision a personal one. In the interim, Nayar was replaced by Mark Robinson, who had been serving as Citi's head of Russian operations. Robinson has been with Citi for 24 years, primarily in emerging markets. October 2008-November 2008: Bailout from TARP Customized for: vinh (
[email protected]) Citi received US$25 billion in October 2008 from the U.S. Treasury's Troubled Asset Relief Program (TARP) in an effort to recapitalize the markets. The following month, in November 2008, Citi received a further US$20 billion, bringing the grand total of bailout money to US$45 billion and effectively making the U.S. government its largest shareholder. With the injection, the U.S. followed in the footsteps of some European countries, which announced similar moves designed to help thaw their credit markets. October 2008: Denying Goldman Citigroup CEO Vikram Pandit was approached by Goldman Sachs CEO Lloyd Blankfein regarding the possibility of a merger, soon after Goldman received approval to become a bank holding company in September 2008. According to the Financial Times, Citi roundly rejected the Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 109 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. proposal, which would have been structured as a Citi takeover and would have likely led to thousands of job cuts in both companies' investment banking units. Citi may also have decided that it didn't need another securities group, the FT speculated. August 2008: Four Asia Pacific clusters Under Asia Pacific CEO Ajay Banga, Citi's Asia Pacific businesses were restructured into four geographic clusters: Japan, North Asia (China, Hong Kong, Korea and Taiwan), South Asia (Bangladesh, India and Sri Lanka), and South East Asia Pacific (Australia, New Zealand, Guam and the ASEAN countries of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand and Vietnam). Upon the announcement, CEOs were appointed for each cluster. Two CEOs continued in their roles—Doug Peterson for Japan and Sanjay Nayar for South Asia—and two new CEOs were appointed—Stephen Bird for North Asia and Piyush Gupta for South East Asia Pacific. For the first time, the regional heads will be responsible for all Citigroup's business within their geographic areas. Previously, Citi's businesses in Asia were led by heads of the ICG, global wealth management and consumer banking units. GETTING HIRED The cat that gets the cream Citi only “picks up the crème de la crème from top-tier business schools,” according to contacts at the firm, with a mere “1 percent” of MBA applicants getting offers. We're also informed that “referral is quite important” if you want to increase your chances of getting in. “Competition is intense,” according to one insider, yet the firm “looks for fit more than anything else.” The interview process “tends to be extremely thorough.” A source at the firm explains further, saying, “Every experience on your resume is probed in depth and interspersed with technical questions. They are difficult to prepare for, because the questions aren’t standard and the interviews go in the direction that the specific interviewer you have wants to take it.” Benefitting both parties When it comes to Citi’s summer internships, sources say the experience “is good, but not essential,” as “only a few graduates are hired as interns before getting full-time employment with the firm.” “It’s an important training ground in the company’s day-to-day processes and culture, which makes the transition process seamless,” reveals a respondent. A colleague agrees, stating that the internship “is an important experience for both the company and the candidate, to determine if they would want to continue working together—and it seems quite a successful way of getting the right candidates.” OUR SURVEY SAYS Going that bit further “Citi is a very competitive environment and fits for people who are willing to go the extra mile,” says an insider when asked to describe the firm. The “corporate culture is one of meritocracy, with top performers being rewarded for their hard work and excellent output.” As one insider puts it, the bank is best described by its own slogan: “Let’s get it done.” The environment is also “open and young,” and “significant responsibility is given to fresh graduates,” who also benefit from “lots of avenues for training and knowledge sharing.” Insiders don’t, however, hide the fact that “Citi is known for its aggressive culture,” and claim that it is “clearly visible on all fronts.” One source remarks, “Deadlines are tough, and a lot of emphasis is on meeting them. Working at Citi normally means a lot of responsibilities with huge expectations, although senior management is very supportive and a lot of guidance is always available.” Other sources say there is “always room for growth,” and “people are very professional and hardworking” at this “aggressive, dynamic and vociferous bank.” Customized for: vinh (
[email protected]) Friendly perks Employees in Citi’s Asian offices say they're given a “two-month bonus, plus a performance bonus,” in addition to “15 days of annual leave, 20 days of personal leave and 30 days of sick leave.” New mothers are also given “60 days of maternity leave.” “Very good health insurance coverage” which “now includes dental insurance” is also available in some regions, “with offers for family members.” 110 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citigroup Inc. Other perks offered by Citi include “late night work reimbursement for travel and meals, as well as an allowance for gas.” However, insiders feel the salary package is a bit uneven compared to the global scale. “In countries like India, China and Indonesia, it is lower than the market average,” says one source, with another stating bluntly, “Our counterparts abroad have higher salaries.” The firm notes that it offers competitive packages versus the local scale, particularly in China and India, and that packages are relative to the local cost of living. Workaholics anonymous As with most finance giants, expect a lot of hours. However, the firm is said to be flexible with regards to hours and working arrangements. An insider explains that “HR provides employees with the tools necessary to work from home where possible” and with a "corporate culture that encourages people to leave as soon as their work is done." One source even states that the long hours boil down more to employee desire than enforcement by the bank, saying, “Our competitiveness usually drives us to work longer hours, but this is largely voluntary.” Here to help Managers at Citi are described as “supportive and understanding,” and “everybody is treated equally,” insiders tell us. In fact, while “firmly committed to getting the job done, managers also proactively pay attention to employee development.” Reports another contact: “They also encourage you to make your own decisions and participate when they are required.” A colleague appreciates the support, saying, “This really helps you sail up the curve and learn faster, getting better and more varied exposure,” agrees a colleague. A manager tells us, “The organization is essentially flat. People are generally empowered. I treat people of ranks lower than mine like I would those above myself— with respect and utter professionalism.” Women welcomed “Women are treated with the utmost respect throughout the organization,” reports a source, with another in Manila saying, “Women are as much empowered as men at work. Filipino culture generally entails being tolerant and accepting of diversity, so I don’t think there is any problem in this respect.” That said, insiders say women still “form under 15 percent of the workforce—mostly in junior levels” in the Indian offices. “The company is pro-women, and has recruited a fair share of women in the past. However, there is an absence of women at top management posts,” confirms a Delhi-based insider. Regaining momentum Despite the global crisis and the massive restructuring efforts, staffers are positive about the overall future of Citi. “The business outlook remains positive because the bank has a strong foundation and great product offerings,” maintains a respondent. A colleague agrees, beaming that the “business outlook is really good, as the firm is one of the first in the industry to launch new products and provide value added services to the customer.” However, as with most banks during the economic downturn, not everything's rosy. “Employee morale may be low at the moment due to Citi suffering from the current global financial crisis,” despite the strength of the Asian business. Another source says, “We’ve lost momentum on being the first on foreign bank business; clients have started to move to local banks.” However, most people feel positive about Citi's future in Asia. One respondent sums up the feelings of many: “Overall, management is building confidence and strengthening relationships with clients, and I believe we will gain momentum back in a short while.” Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 111 PRESTIGE RANKING 17 SOCIÉTÉ GÉNÉRALE SA KEY COMPETITORS BNP Paribas Crédit Agricole Deutsche Bank Level 38, Three Pacific Place 1 Queen’s Road East Wan Chai, Hong Kong Phone: +852-2166-5600 www.socgen.com LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • Japan • Korea • Malaysia • Philippines • Singapore • Taiwan • Thailand • Vietnam EMPLOYMENT CONTACT See “careers” at www.socgen.com DIVISIONS Corporate & Investment Banking Global Investment Management & Services Retail Banking & Financial Services THE STATS Employer Type: Public Company Ticker Symbol: SCGLY (OTC) Chairman: Daniel Bouton CEO: Frédéric Oudéa Revenue: €21.866 billion (FYE 12/08) Net Profit: €2 million No. of Employees: 151,000 No. of Offices: Locations in 82 countries Customized for: vinh (
[email protected]) 112 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Société Générale SA THE SCOOP Big name in France Société Générale is one of the largest banks in the world, with over 60 subsidiaries operating in 82 countries. The massive company is organized into three main branches: retail banking and financial services, global investment management and services, and corporate and investment banking. Each of these divisions has major operations in Central and Eastern Europe, the Mediterranean Basin and Africa. In recent years, the company has significantly expanded its investment banking operations and asset management companies into the Asia Pacific region. Société Générale is not just one of the biggest banks in France and Europe, it's also one of the oldest. The bank was officially created under Napoleon III back in May 1864 and has since survived through two World Wars. From 1965 to 1990, Société Générale rode the boom of modern banking and became a world leader in the banking arena. Today, the bank is ranked No. 49 on the Fortune Global 500. A bank decreed French banking giant Société Générale was formed by a decree signed by France’s then-emperor Napoleon III on 4 May 1864, founding the firm in order to “foster the development of trade and industry in France.” During the past two centuries, that’s what Société Générale has done. Société Générale fast evolved into a leading European financial services company and a major player in the global market. The firm began its international expansion in 1871 with the opening of a London branch. By 1913, the booming banking powerhouse had established 1,400 branches and established itself as a network bank. The company remained private until 1945, when the bank’s capital stock passed into the hands of the French government. Then in 1970, Société Générale stepped up its international development, concentrating on Asia and Eastern Europe. Ten years later, in 1980, the bank had branches in 54 countries. As of March 2009, GIMS (Global Investment Management & Services) had 332 billion in assets under management. Awards and rankings • EMEA Structured Equity Issue of the Year (IFR, 2010) • Global Adviser of the Yearm, Asia Pacific PPP Deal of the Year, Asia Pacific Power Deal of the Year, Asia Pacific Oil & Gas Deal of the Year, Asia Pacific Deal of the Year (Project Finance, 2009) • No. 2 Overall, Debt Trading Poll (Euromoney, 2009) • Best Fixed Income research House (Euromoney, 2009) • No. 1 Global Provider in Equity Derivatives (Risk, 2009) • Best Export Finance Arranger (Trade Finance, 2009) • Best Commodities House, Best Fund-linked House, Best Fund-linked Structured Product House (Finance Asia, 2009) IN THE NEWS Customized for: vinh (
[email protected]) May 2009: Write-downs and losses Société Générale reported a US$370.6 million loss for the first quarter 2009, a big drop from the US$1.47 billion in profit the firm pulled in for the first quarter 2008. CEO Frederic Oudea pointed out that the firm, which is still rebuilding after enduring a trading scandal in 2008, "registered an excellent commercial performance and high revenues," but added that Société Générale "fell into a loss due to losses and provisions on risk assets." Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 113 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Société Générale SA April 2009: Chairman steps down Société Générale Chairman Daniel Bouton said that he would resign from his post after spending more than a decade with the firm. The bank, which had been mired by the aftermath of a $6.44 billion trading fraud in 2008, had also been handling scandal-related attacks against Bouton calling for his resignation. Bouton, who offered his resignation shortly after the fraud was uncovered, was asked to stay in his role by the board—even though the bank’s trading loss resulted in Société Générale being made to request a US$7.2 billion capital increase to mend its finances. In a statement (April 2009), Bouton said attacks against him “risk harming the bank and its 163,000 employees,” adding that “in the present financial and economic storm, priority must go to unity." April 2009: Asian expansion The bank revealed its plans to expand throughout Asia with the creation of 50 new outlets in China alone. Despite the global financial crisis, it is clear the bank views China as a region with huge long-term growth potential, revealing that the first branches will be unveiled across the country’s affluent coastal regions with plans to expand into internal cities later on. As of April, the bank already employed 500 people in China. The news came on the back of Société Générale announcing that it was to open the third of its retail outlets in China in Shanghai. The branch, which provides finance management services and personal loan services follows the two branches the bank opened in Beijing in November 2008 and in Guangzhou, which opened four months later in March. September 2008: Better late than never The bank strengthened its foundations in China when its China-incorporated subsidiary won an operational license from the China Banking Regulatory Commission giving it access to $2 trillion of personal savings in the country for the first time. Before the unit was opened, Société Générale had been focusing on corporate and investment banking through its five branches in China. The opening of the consumer banking services in China proved to be the bank’s first such foray into Asia. Originally the bank had wanted to incorporate in China by March 2008, but the move was delayed following the fallout from the trading scandal in January of that year. April 2008: Bulls by the horns Société Générale signed the final agreement with Indiabulls for the creation of a life insurance joint venture in India. As part of the agreement the French bank has a 26 per cent stake in the venture through its life insurance unit Sogecap, with Indiabulls taking the remaining 74 per cent. The venture started off with an initial capital of 50 million. January 2008: Rogue trader Société Générale came face to face with the pitfalls of modern greed when it was rocked by the information that a single trader had allegedly committed fraud costing the company 4.9 billion. Jerome Kerviel, a 31-year-old trader who wanted to make a reputation for himself, was arrested early in the year on charges of breach of trust, falsifying documents and breaching computer security. The loss hit the company's integrity and its coffers, and spurred rumors that the struggling institution would be the target of a takeover sometime during the year. December 2007: Indian appetite The company's investment banking division, Société Générale Corporate & Investment Banking (SG CIB), partnered with Ambit, an Indian company, to offer M&A advisory services for cross-border transactions. The exclusive agreement is a win-win scenario for both companies: SG CIB will get the opportunity to handle Ambit's European transactions and Ambit will be offered the chance to "identify, introduce, and execute transactions" for its European clients. SG CIB has handled cross-border mergers such as Mittal Steel's acquisition by Arcelor as well as the acquisition Bristol Water by Agbar. Customized for: vinh (
[email protected]) 114 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Société Générale SA GETTING HIRED Joining Société Générale SG CIB maintains a helpful careers web site that provides information about opportunities in different divisions and functions, including capital and financing, fixed income, equities and equity derivatives, banking operations, and information technology. The site also allows jobseekers to search jobs by location, with the following locations in Asia Pacific available: Australia, China, Hong Kong, India, Japan, Kazakhstan, Singapore, South Korea and Taiwan. The bank runs a rotational program called the Graduate International Programme for European graduates. The program features an initial twoweek training stint in INSEAD. One item of note with respect to the program is that SG CIB notes that it has a specific interest in finding graduates who are fluent in both Japanese and English. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 115 PRESTIGE RANKING 18 ROTHSCHILD KEY COMPETITORS Goldman Sachs Macquarie UBS 16th Floor, Alexandra House 16-20 Chater Road Central, Hong Kong Phone: +852-2525-5333 Fax: +852-2810-6997 www.rothschild.com EMPLOYMENT CONTACT LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • Japan • Malaysia • Philippines • Singapore • Vietnam www.rothschild.com/careers DEPARTMENTS Investment Banking Private Banking & Trust Venture Capital THE STATS Employer Type: Private Company Chairman: Baron David de Rothschild Revenue: €1.58 billion (FYE 12/08) Net Income: €407 million No. of Employees: 2,800 No. of Offices: 51 Customized for: vinh (
[email protected]) 116 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Rothschild THE SCOOP The Rothschild empire The Rothschild family's prominence and affluence are so famous in Europe that the word "Rothschild" in French is actually used as a synonym for great wealth. During World War II, the Nazis incorporated elements from a 1934 Hollywood film about the family called “The House of Rothschild” as propaganda to show the purported egregious wealth of the Jewish people. Meanwhile, in the Hebrew language version of the song "If I were a Rich Man" from the musical “Fiddler on the Roof,” the title of the song is literally translated as, "If I Were a Rothschild." If you still aren’t impressed, then consider the fact that the Rothschild family owns a number of vineyards and makes its own wine. However, the Rothschild family is not only known for its opulence, but also for its philanthropy and community work. So it makes perfect sense in today's global economy that N.M. Rothschild & Sons, an investment bank founded by Nathan Mayer Rothschild in 1811, is now spreading the family's renown throughout every corner of the world. The bank has offices over 50 offices worldwide, with operations in North America, Africa, the Middle East, Europe and South America. In the Asia Pacific region, the bank has offices in Beijing, Hong Kong, Jakarta, Kuala Lumpur, Melbourne, Mumbai, New Zealand, Seoul, Shanghai, Singapore, Sydney and Tokyo. The London office of N.M. Rothschild & Sons is situated on the same corner it was back in 1811, but the institution has also changed drastically through the years. A French branch called de Rothschild Freres was founded by James Mayer Rothschild in the early 19th century and was later nationalized by a socialist French government in 1982. In that year, Baron David de Rothschild, the current chairman of N.M. Rothschild & Sons, rebuilt a new bank from scratch with only three employees. In 2003, the British arm and the French arm of the Rothschild's bank came together under the leadership of a new holding company called Concordia B.V. Concordia owns a controlling interest in Rothschild Continuation Holdings, the parent company of N.M. Rothschild. M&A mavericks N.M. Rothschild's is known for its global prowess in M&A deals, garnering top spots in the global rankings in terms of numbers of deals. In 2009, the company ranked No. 11 for all global announced deals (by deal volume), according to Thomson Reuters. Rothschild worked on 219 deals worth a total of US$200.7 billion. In U.S. announced M&A deals, the firm ranked No. 10, and in Europe announced M&A transactions, it ranked No. 9. Rothschild didn’t crack the top 25 in Asia (excluding Japan) announced mergers and acquisitions, but it ranked No. 12 in completed deals. A year earlier, in 2008, Rothschild’s operations in China launched the company into the No. 12 position in both announced and completed M&A eals. For announced deals, Rothschild boasted a whopping 2,190 percent increase from 2007, with total value of the announced deals at US$7.78 billion. Its completed deals also skyrocketed in value to US$7.92 billion, up 480 percent from the previous year. In fact, some of the bank's biggest deals in the M&A arena in the past few years have been in China. The bank advised Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) on its US$1.3 billion investment in China's CITIC International Holding Company in 2008 as well as South Korean telecommunications giant SK Telecom's US$1 billion strategic alignment with China Unicom. Though Rothschild is primarily known for its M&A prowess, its investment banking branch also handles debt advisory and restructuring, equity capital markets, private placements and privatization services. In the equity capital markets category, one of the company's top recent deals was advising online business-to-business trade company Alibaba in its US$1.5 billion IPO on the Hong Kong Stock Exchange in 2007. The firm has also racked up major profits in India with its debt advisory business, working on deals such as the GBP 6.2 billion offer Tata Steel made for Corus Group in 2007. The company also worked out a hedging strategy with Cairn India related to its US$1.9 billion IPO in early 2007. Customized for: vinh (
[email protected]) The Rothshilds lose a leader In June 2007, Baron Guy de Rothschild, the father of the current chairman of N.M. Rothschild, passed away at the age of 90. Baron Guy was instrumental in building the organization to its current level of prestige. After the bank was nationalized in 1982, it was his fervent protests and cries of unfairness that gave his son the impetus and inspiration to reconstruct the bank. As the great-grandson of James Rothschild, Baron Guy de Rothschild kept the family tradition alive as the fourth generation to run the French arm of the bank. Baron Guy once said of the Rothschild banking empire, "We are a family. Not an impersonal corporation." Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 117 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Rothschild Awards and rankings • LBO Advisory Bank of the Year (Euroweek, 2009) • Cross Border Deal of the Year—Carlsberg A/S and Heineken’s $15.4 billion acquisition of Scottish & Newcastle plc (Acquisitions Monthly, 2009) • Best M&A Adviser in Europe (Private Equity International, 2009) • Best LBO Advisory Bank of the Year (Euroweek, 2009) • Domestic M&A Deal of the Year: BM&F (Latin Finance, 2009) • Cross-border Deal of the Year: Scottish & Newcastle (Acquisitions Monthly, 2009) • Debt Advisory House of the Year (Acquisitions Monthly, 2009) • Restructuring Adviser of the Year (Acquisitions Monthly, 2009) • Debt Advisory House of the Year (Acquisitions Monthly, 2008) • UK Financial Adviser of the Year (Financial Times & Mergermarket Awards, 2008) • Italy Financial Adviser of the Year (Financial Times & Mergermarket Awards, 2008) • Middle Market Financial Adviser of the Year (Financial Times & Mergermarket Awards, 2008) IN THE NEWS July 2009: Just friends Nomura Holdings, Japan’s largest brokerage, announced in December 2008 that it had cancelled its almost four-year-long relationship with Rothschild. Nomura’s change of heart came as the company purchased a segment of Lehman Brothers’ operations. Rothschild and Nomura had provided joint advice on numerous deals, including NTT DoCoMo Inc’s acquisition of a stake in Malaysian mobile company TM International’s Bangladesh unit. “We have achieved our objective through the tie-up,” explained Nomura spokesman Tohru Namikara. “We will maintain a friendly relationship with Rothschild”. Rothschild left the alliance unperturbed and has since sought out further ventures within Japan. In July 2009, Keiichi Mitake, the head of Rothchild’s local advisory partner Global Advisory Japan, reported that Rothschild was reviewing around 60 possible cross-border mergers and acquisitions in Japan. The Tokyo-based Global Advisory Japan formed an alliance with Rothschild in March 2009 and aims to push the company’s presence in Japan further into the limelight. According to a Bloomberg report, Rothschild is currently seeking advisory mandates in the financial, energy, technology, consumer and pharmaceutical industries between Japanese and European or Asian companies. April 2009: Staying busy through the storm The government of Dubai hired Rothschild to help construct a $10 billion fund aimed at softening the impact of the global recession. Officials at the Dubai Department of Finance began disbursing the funds quickly, saying they would offer most of the support to real estate and property companies. According to Standard & Poor’s, Dubai’s economy—the second-biggest in the United Arab Emirates—is on track to slump between 2 percent and 4 percent by the end of 2009. Customized for: vinh (
[email protected]) Rothschild picked up another key assignment in April when it was retained by Belgian chemical and pharmaceutical conglomerate Solvay to co-run the auction of its lucrative pharmaceutical business. The two-stage auction, which is also being run by Citigroup and Morgan Stanley, is expected to bring in 5 billion ($6.62 billion). 118 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Rothschild January 2009: Good business from bad business Since late 2008, Rothschild has been advising Borders Group, the struggling bookseller, on options that may include restructuring or bankruptcy. The Borders team also includes consulting boutique AlixPartners and restructuring attorneys Jones Day. A significant move came in January when Borders appointed hedge fund executive Richard “Mick” McGuire as its chairman, although the company remains silent on the likelihood of a bankruptcy filing. Meanwhile, Rothschild and other advisors continue to work with Borders’ vendors and lenders to keep Borders afloat. November 2008: Joining forces with the Netherlands Rothschild announced a joint venture with the Netherlands’ Rabobank. Under the terms of the deal, both companies will combine their food and agriculture sector operations, and Rabobank bought a 7.5 percent stake in N.M. Rothschild’s holding company, Rothschild Continuation Holdings. While the Rothschild family remains the bank’s largest shareholder, Rabobank is now in third place, after trading group Jardine Matheson (which owns 20 percent). November 2008: Bonus bonanza For many bankers, 2008 was the year of no—or smaller—bonuses, but not at Rothschild. The Times of London reported that Rothschild’s staffers worldwide had received “record bonuses,” thanks to booming business in advisory and private banking. Although Rothschild had to write-off 96 million related to bad loans, its business was relatively unscathed by turmoil in the world financial markets. That’s because Rothschild, unlike many of its peers, has avoided prime broking, proprietary trading and other risky activities. (It’s worth noting, however, that its fiscal year end fell in March 2008, well before the worst of the financial crisis hit.) September 2008: Bear refuge Wondering what became of Bear Stearns chief Alan D. Schwartz after his bank was taken over by JPMorgan Chase? The government-arranged deal left, well, very little left of Bear, but Schwartz made himself at home in Rothschild’s New York offices soon after his firm’s demise in the fall of 2008. Richard Metrick, a former senior managing director at Bear and Schwartz’s right-hand man, also set up camp at Rothschild while the two men considered their next moves. GETTING HIRED If you were a Rothschild The careers area on Rothschild's web site at www.rothschild.com/careers provides a section devoted to Asian graduates under the “Graduate Programmes” subsection. The company looks to recruit for the long term and, under its non-hierarchal business environment, expects new recruits to face challenging demands head on from the get-go. Rothschild provides a graduate training program that runs over the summer, and provides in depth knowledge and know-how of the company’s internal workings as well as a taste of senior management. The training course sends graduates from all over the world to its offices in London, allowing students to develop their and their international networks. The Asian recruitment process typically opens on September 1st and closes in early November. Divided into three parts, the process requires candidates to first send in an online application form (found on the company careers page). Those accepted will undergo first-round panel interviews, which will carry on into December once all the applications have been reviewed. The first-round interview includes verbal and numerical tests. The second round of interviews further determines candidates’ competencies and asseses their fit in the firm. The second round of interviews includes panel interviews, an accuracy test and a case study for applicants to tackle. The hiring process for the Asiang graduate program is administered through Rothschild's regional headquarters in Hong Kong, but graduates can be placed throughout its regional offices, including in Hong Kong, Beijing, Shanghai, Singapore, Mumbai, Jakarta and Kuala Lumpur. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 119 PRESTIGE RANKING 19 ING GROEP N.V. KEY COMPETITORS Citigroup Société Générale UBS ING Wholesale Banking 9 Raffles Place #19-02 Republic Plaza 48619, Singapore Phone: +65-6535-3688 Fax: +65-6535-8329 ING Asia Pacific Limited 39/F, One International Finance Centre 1 Harbour View Street Central, Hong Kong Phone: +852-3762-8200 Fax: +852-2522-4162 www.ing.asia EMPLOYMENT CONTACT www.ing.jobs LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Japan • Korea • Malaysia • New Zealand • Philippines • Singapore • Taiwan • Thailand BUSINESSES IN ASIA PACIFIC ING Direct Investment Management Life Insurance Platform Services Real Estate Investment Management Retail & Private Banking Retirement Services Wholesale Banking THE STATS Employer Type: Public Company Ticker Symbol: ING (NYSE) CEO, ING Insurance Asia Pacific: Jacques Kemp CEO, ING Investment Management Asia Pacific: Chris Ryan Revenue: €66.29 billion (FYE 12/08) Net Income: -€766 million No. of Employees: 108,933 No. of Employees in Asia: 15,000 Customized for: vinh (
[email protected]) 120 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition ING Groep N.V. THE SCOOP Six lines extend throughout the world Amsterdam-based ING Group is one of the 20 largest financial institutions in the world, serving more than 75 million customers throughout Europe, the U.S., Canada, Latin America, Asia and Australia. Through ING Direct, the firm offers savings accounts, mortgages, mutual funds and payment accounts, to customers in Australia, Canada, France, Germany, Austria, Italy, Spain, the U.K. and the U.S. In May 2007, ING Direct announced that it would launch in the Japanese market as well. The firm also provides life insurance in Central Europe, Asia and South America. In an attempt to simplify its many services offered throughout the world, ING reorganized its business structure in 2004 into six lines: insurance Americas, insurance Europe, insurance Asia Pacific, wholesale banking, retail banking and ING Direct. In 2008, the company ranked No. 9 on the Forbes Global 2000 list. For Asia Pacific, ING's insurance and asset management operations are headquartered in Hong Kong. Its investment banking operations (operating as ING Wholesale Banking) are headquartered in Singapore, where the firm has had operations since 1987 and currently maintains about 300 employees. Throughout the region, ING Wholesale Banking has about 800 employees, with offices in China, Hong Kong, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand. In India, ING runs both its retail banking and corporate banking businesses under the ING Vysya Bank brand name. Vysya Bank was one of the top private sector banks in India, having been established in 1930 in Bangalore. ING made a major investment in the bank and took over management of the combined entity in 2002. Overall, about 15,000 employees work for ING in the Asia Pacific region. The company's Asia Pacific insurance group runs life insurance operations as well as asset and wealth management activities in Australia, New Zealand, Hong Kong, Japan, South Korea, Malaysia and Taiwan. In addition to being well established in these locations, ING is eyeing growth in India, China and Thailand. ING holds a 16 percent stake in Bank of Beijing in China and a 44 percent stake in ING Vysya Bank in India. Primary color ING Group will have you seeing orange. The Amsterdam-based financial institution has orange splashed all over its marketing campaign, possibly in recognition of the company's Dutch roots (the Dutch royal family is called the House of Orange after the official color of King William III, who defended the Netherlands in the late 1600s). The firm traces its roots back to the founding of Dutch bank De Nederlanden van 1845. Nationale Levensverzekering-Bank was founded in 1863; those two companies came together 100 years later to form Nationale-Nederlanden, which became the largest insurer in the Netherlands. NMB Postbank Groep came about in 1986 after the merger of Rijkspostspaarbank (founded in 1881) and Postcheque en Girodienst (founded in 1918). Nationale-Nederlanden and NMB Postbank Group merged in 1991, forming Dutch mouthful Internationale Nederlanden Group; the tongue-tied began calling the new company ING Group, a name that has stuck. ING has grown into an asset management, banking and insurance giant thanks in part to a number of major acquisitions after the 1991 merger. The future is now ING, which sells its life insurance products in Asia through banks, securities houses and other channels, has been working on improving brand awareness in the Asia Pacific region. One of the firm's methods has been through sponsorship of events. In 2007, for example, ING was one of the sponsors of the Asian Football Confederation's Asian Cup. ING Asia Pacific may also attract some tech-savvy staffers with its blog, My Cup of Cha, at www.ingblogs.com/mycupofcha. The blog, to which Asia Pacific Insurance CEO Jacques Kemp frequently contributes, talks about the company's activities in the region. Topics include branding, e-business, marketing, strategy and more. My Cup of Cha was modeled after ING's Our Virtual Holland blog, which beat out Microsoft and PricewaterhouseCoopers in 2007 to win the European Excellence Award for blogs in the Corporate Media category. Another interesting initiative that the firm has undertaken is through the virtual world of Second Life, in which ING maintains a strong presence on its own island. On the ING island, residents of the virtual world can visit the firm's "Cha Lounge," which is a place to "listen to our lounge music, read, talk and learn about tea, virtually taste it or buy it for real world consumption." Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 121 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition ING Groep N.V. Ethical standards ING has identified three areas to work on in order to control the environmental effects of its operations: energy consumption, business travel and paper consumption. The company is also a signatory to the Equator Principles, which apply certain policies and standards set by the World Bank and the International Finance Corporation to project finance transactions, thus making sure environmental and social risks are properly assessed and managed. In addition, ING refuses to finance controversial weapons or companies directly involved with their manufacture or trading. And in asset management, the bank will not invest in companies involved in the manufacturing of such weapons. To give a bit back in the regions where it does business, including Asia, the company entered into a partnership with UNICEF in 2005. The partnership, called Chances for Children, provides tens of thousands of children in countries such as Brazil, Ethiopia and India with access to primary education. IN THE NEWS June 2009: Cut and run More gloomy news was posted during the summer of 2009 as the Dutch group revealed that it was to leave 10 of the 48 countries that it was currently operating in. This was in addition to selling 10 to 15 businesses over the next three to five years, according to chief executive Jan Hommen. Speaking at the Goldman Sachs Financials Conference in Frankfurt, Hommen added that the firm was planning to raise US$8 billion to US$11 billion through the sale of some of its assets. At the time, it was clear that these assets included the firm’s Asian private banking business, and that interested parties included both Australian bank ANZ and India’s Religare Enterprises. June 2009: Japanese job cull A quarter of ING’s employees at its Japanese life insurance unit were asked to leave the firm in another wave of job cuts. Most of the 250 cuts affected those in the variable annuity business as the firm stopped selling variable annuities after that particular sector posted a pretax loss of 191 million for the quarter ending March 31, 2009. The bank was good enough to hire a consulting firm to help employees with career planning until they found new jobs. June 2009: Security in property The real estate arm of the Dutch financial group launched a second property fund in China with the aim of collecting up to $750 million worth of property. The new fund, imaginatively called China Opportunity Fund II, will focus on residential development projects in first-tier and second-tier Chinese cities. It will make nine to 10 investments of $50 million to $75 million each. The firm says that it will realize an internal rate of return of 20 per cent or higher on these investments. January 2009: New Year blues ING started the year off in the worst possible fashion: It announced that it would cut 7,000 jobs throughout the year and its chief executive would also be stepping down. The firm revealed that it was looking to reduce operating expenses by 1 billion a year starting in 2010, and that 35 percent of the reduction would come from the culling of 7,000 positions, or some 5.4 percent of the firm’s workforce (of which, 900 were to occur in Asia). Cuts were also to be imposed for the head office, in marketing, and for its sponsorship of Formula One racing. Meanwhile, Michel Tilmant cited exhaustion for his reason for stepping down as the firm’s chief executive. He was succeeded by former chief financial officer of Philips Electronics Jan Hommen. Customized for: vinh (
[email protected]) October 2008: Lifesaving injection In a move designed to bolster ING’s ability to survive the economic fallout, the Dutch government secured 10 billion for the financial services company. The bank stated at the time that the structure of the transaction would avoid dilution of existing shareholders, although the Dutch government would obtain the right to nominate two members to the ING supervisory board. The firm also said that it would use the new capital to increase shareholder’s equity in its banking unit by 5 billion and to strengthen the balance sheet of ING Insurance by 2 billion. The remaining 3 billion would be put towards paying down debts. 122 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition ING Groep N.V. October 2008: Selling off old goods A day after receiving a lifesaving cash injection from the Dutch government, ING Group sold its Taiwanese life insurance unit to Fubon Financial for US$600 million. The deal joined ING Taiwan’s US$18.7 billion in assets to Fubon’s own operations forming a life insurance firm with about US$30 billion in assets and what was to become the second largest in Taiwan. The combined company controls a 14 percent market share in terms of total premiums and adds 2.2 million customers to the existing 6.5 million customers of Fubon Financial. The move was seen as a first step in ING selling off some of its Asian assets as it looked to raise cash after struggling through the financial crisis. March 2008: Asia Pacific-inspired board ING's focus on the Asia Pacific region was apparent in March 2008 when three out of four of its newly-appointed supervisory board members had affiliation with the region. The new appointees included Harish Manwani, Unilever's president of Asia, Africa, Central & Eastern Europe; Aman Mehta, former CEO of Hongkong & Shanghai Banking Corporation (HSBC) in Hong Kong; and Jackson Tai, the former vice chairman and CEO of DBS Group Holdings, for which he worked for eight years in Singapore. December 2007: Big Thai tie-up ING finalized the acquisition of a 30 percent stake in TMB Bank PCL in Thailand for 460 million. Established in 1957, TMB is one of Thailand's largest banks, with approximately 14 billion in total assets, over 5 million customers and 472 branches across Thailand. The deal was one of ING's largest Asia Pacific endeavors to date. November 2007: Teaming up in Malaysia In November 2007, ING formed a 10-year alliance with Public Bank Berhad, Malaysia's second-largest banking group. This alliance will see the Public Bank exclusively distributing ING's insurance products via the bank's distribution channels (including nearly 300 national and regional branches) to its small- and medium-sized industry and corporate clients. The agreement enables both parties to cooperate throughout the entire Asia Pacific region. The alliance is intended to make ING and Public Bank one of the top three players in Malaysia's bancassurance sector over a three-year span. GETTING HIRED Pick a region, any region Graduates and experienced professionals alike can get a feel for working at ING through the firm's career site at www.ing.jobs. The site has a careers section with job listings from all around the world. Prospective applicants will be directed to the proper country site, some of which require registration to get access to all opportunities. In the Asia Pacific region, ING welcomes both starters and experienced professionals looking for career opportunities in a "dynamic, international work environment." Requirements and openings vary depending on the office and position. Most sites for the Asia Pacific region are in English, and candidates can select from local sites for China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. ING offers internships and three-year traineeships in many of the company's offices. Internships are available in business areas such as asset management, banking, insurance, IT, marketing, human resources and operations. The three-year ING Talent Programme is open to holders of a Master's degree and focuses on different ING business areas, including finance, investment management, process management, risk and wholesale banking. Traineeships are based in the Netherlands and can be applied for online through the firm's career web site. Applicants must speak English in order to be considered. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 123 PRESTIGE RANKING 20 DBS BANK LTD KEY COMPETITORS Citigroup Standard Chartered Bank OCBC Bank United Overseas Bank Group 6 Shenton Way DBS Building Tower One Singapore, 068809 Phone: +65-6878-8888 Fax: +65-6445-1267 www.dbs.com LOCATIONS IN ASIA PACIFIC China • Hong Kong • India • Indonesia • Malaysia • Philippines • Singapore • Taiwan • Thailand EMPLOYMENT CONTACT www.dbs.com/careers DEPARTMENTS Asset Management Corporate Banking Enterprise Banking Personal Banking Private Banking Securities Treasury & Markets THE STATS Employer Type: Public Company Ticker Symbol: D05 (SES) Chairman: Koh Boon Hwee Net Earnings (DBS Group Holdings): SG$2.06 billion (FYE 12/08) No. of Employees: 14,000+ No. of Offices: 200+ branches Customized for: vinh (
[email protected]) 124 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition DBS Bank Ltd. THE SCOOP Development banking DBS is a titan in the Asian financial world: DBS Group Holdings, Ltd. is the largest commercial banking group in Southeast Asia, with a significant presence in a number of worldwide markets including mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, the Philippines, South Korea, Taiwan, Thailand, Vietnam (where DBS opened a representative office in July 2008), the U.K., the U.S. and the Middle East. As of September 2009, the firm had SG$259 billion in total assets. DBS Bank is the main operating subsidiary of DBS Group. The bank has consumer banking operations in Singapore, Hong Kong, China, India and Indonesia. In Singapore, the bank serves more than four million customers with about 80 branches, and in Hong Kong, the bank serves one million customers with about 50 branches. Mainland China is relatively new territory for the bank, as subsidiary DBS Bank China opened in May 2007 with headquarters in Shanghai and plans to expand into an integrated branch network (consumer, corporate and enterprise banking, and investment banking services) across the vast country. In Indonesia, where DBS operates about 40 branches, the bank is one of the largest trade finance entities in the country and is in the top five among foreign banks in wealth management. With the acquisition of Singapore's Post Office Savings Bank in 1998 (now known simply as POSB), DBS has a network of approximately 80 braches and 930 ATMs in Singapore. Exploring foreign shores DBS Bank was formed in 1968 as a partner of the Singapore government and has grown into the largest bank in the country. In recent years, the bank has pursued an aggressive growth plan, including the acquisition of banks outside of Singapore. These acquisitions include PT Bank DBS in Indonesia, of which DBS now owns approximately 99 percent; Bank of the Philippine Islands, in which DBS holds a 20 percent stake; and Bowa Commercial Bank in Taiwan, where DBS was the successful bidder in a government auction for Bowa's "good bank assets," including the rights to 39 branches, three business units and over 750,000 depositors. The bank also has a partly-owned (37.5 percent) Indian subsidiary, Cholamandalam DBS Finance. Asset management services are handled through DBS Asset Management (DBSAM), a wholly-owned subsidiary. DBSAM was established in 1990 and now manages a considerable amount of capital for both private and institutional investors. In 2007, DBSAM purchased a 33 percent stake in China's Changsheng Fund Management Company. It was the first time a non-Chinese asset management company based in Asia purchased a Chinese fund management company. Changsheng was approved for a Qualified Domestic Institutional Investor (QDII) license in October 2007, giving Changsheng further leeway to help clients invest their funds in overseas markets. Singaporean Sharia Islamic banking is a burgeoning business in the Asia Pacific region. In May 2007, to build stronger banking ties between the Middle East and East Asia, DBS launched a new subsidiary: The Islamic Bank of Asia (IB Asia), based in Singapore. The Sharia-compliant bank was established in partnership with 34 investors from prominent families and industrial groups based in Gulf Cooperation Council (GCC) countries. Celebrating its first anniversary to the tune of SG$689 million across 20 deals, IB Asia set up its first representative office in Bahrain in May 2008. IB Asia focuses on corporate finance, capital markets and private wealth management. Who's got spirit? DBS encourages a "can-do spirit" and strives to get employees involved in the community as well as the world around them. As the company celebrated its 40th anniversary in 2008, employees were encouraged to come up with ideas for community initiatives to benefit the children of Asia. The resulting initiative, named "Project 40/40," aimed to launch 40 educational projects in 40 days. After an overwhelming response from staff, the initiative had to be renamed "Project 80/40" as the number of schemes doubled. Projects included sprucing up schools in Mumbai and Jakarta; helping students plant a rooftop garden at a school in Shanghai; door-to-door distribution of school supplies to disadvantaged children in Singapore; the construction of a basketball court in the remote village of Tioman, Malaysia; and an employee donation-based "Jeans Friday" to raise money for a learning center at an orphanage in Ho Chi Minh City. In addition to community projects, DBS has also lent a hand in response to a number of disasters that have plagued Asia in the past several years. When SARS spread across Asia in 2003 and the massive tsunami hit South and Southeast Asia in 2004, DBS opened its ATMs and internet banking channels for relief donations. Self-service banking channels for donations were opened once again in 2008 when an earthquake hit China's Sichuan Province, as well as when Cyclone Nargis devastated Myanmar. In addition to DBS' own donations for both Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 125 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition DBS Bank Ltd. disasters, nearly SG$3.7 million was given through self-service banking channels in Singapore, with two-thirds of that amount coming from internet banking donations. This donation system is slated to continue on an ongoing basis for future disasters in the region. Awards and rankings • Best Foreign Exchange Provider in Singapore (Global Finance, 2009) • India 's Best Small Bank, India 's Fastest Growing Small Bank: DBS India (Business Today KPMG Best Bank Awards, 2009) • Best International Trading Bank in Asia (21st Century Business Herald, 2009) • Best Private Bank in Singapore (FinanceAsia Private Bank Country Awards, 2009) • Hong Kong Best Contact Centre of the Year: DBS HK (Hong Kong Call Centre Association, 2009) • Ranked No. 8 in Asia, Ranked No. 54 in the world (The Banker Top 1000 World Banks, 2009) • Best local cash management bank as voted by corporates in Singapore for the medium corporate category (Asiamoney Cash Management Poll, 2009) • Best Debt House, Singapore (Euromoney Awards for Excellence, 2009) • Best Banking Group, Singapore (World Finance Financial Awards, 2009) • Best Domestic Private Bank, Singapore (Asiamoney Private Banking Poll, 2009) • Best Bank, Singapore; Best Investment Bank, Singapore; Best Equity House, Singapore; Best Cash Management Bank, Singapore; Best Trade Finance Bank, Singapore; Best Private Wealth Management House, Singapore (Alpha Southeast Asia 3rd Annual Best Financial Institution Awards, 2009) • Best Equity House, Singapore; Best Trade Finance Bank, Singapore; Best Foreign Exchange Bank, Singapore; Best Broker, Singapore (DBS Vickers) (FinanceAsia Country Awards for Achievement, 2009) • Singapore In-house Team of the Year; Banking & Financial Services In-house Team of the Year; Project Finance Deal of the Year (Resorts World at Sentosa project finance); Singapore Deal of the Year (Resorts World at Sentosa project finance); Singapore M&A Deal of the Year (Lion Power Holdings—Senoko Power financing & acquisition) (Asian Legal Business (ALB) SE Asia Law Awards, 2009) • Best Islamic Financial Institution in Singapore—The Islamic Bank of Asia (Global Finance Islamic Financial Institutions Awards, 2009) • Most Committed to a Strong Dividend Policy, Singapore—Ranked No. 1; Best Investor Relations, Singapore—Ranked No. 4; Best Corporate Governance, Singapore—Ranked 2nd; Best Managed Company, Singapore—Ranked No. 5 (FinanceAsia Asia's Best Companies Poll, 2009) • Best Domestic Equity House in Singapore; Best Domestic Debt House in Singapore (Asiamoney Best Banks Awards, 2009) • Best Sub-Custodian Bank, Singapore (Global Finance World's Best Sub-Custodian Banks, 2009) • Best SME Partner Award: DBS Bank (Hong Kong) (The Hong Kong Chamber of Small and Medium Business, Best SME's Awards, 2009) • Best Commercial Card 2008—DBS World Business Card (MasterCard Worldwide, South East Asia Marketing Awards, 2009) • No. 1 in Asian rankings; No. 28 in global rankings (Global Finance, World's Safest Banks, 2009) Customized for: vinh (
[email protected]) • Best Transaction Bank in Singapore, Best Cash Management Bank in Singapore, Rising Star Cash Management Bank in India, Rising Star Cash Management Bank in Indonesia, Best Trade Finance Bank in Singapore; Best Trade Finance Bank in Indonesia, Best Domestic Custodian in Singapore, Best Domestic Investment House in Singapore, Best Domestic Bond House in Singapore (The Asset, 2009) • Best Local Bank Private Banking in SG; No. 4 in SG amongst the global banks; No. 8 in Asia amongst the global banks (Euromoney Private Banking Survey, 2009) • Sales Turnover Excellence Award (Finance); Net Profit Excellence Award (Finance) (DP Information Group, 22nd Annual Singapore 1000 & SME 500 Awards, 2009) 126 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition DBS Bank Ltd. • Best Foreign Exchange Provider in Singapore; Best Foreign Exchange Provider in Southeast Asia (Global Finance, World's Best Foreign Exchange Providers, 2009) IN THE NEWS November 2009: DBS Hiring 300 DBS announced plans to hire 300 relationship bankers in its priority banking unit, adding to the already 1,500 bankers in the division. The move was the first major hiring spree since DBS instilled a hiring freeze and cut hundreds of bankers, back in 2008. September 2009: Gupta Named New CEO DBS named Piyush Gupta the new chief executive officer. The 47-year-old Gupta was most recently Citi’s CEO for South East Asia-Pacific, overseeing the bank’s operations in Singapore, Malaysia, Philippines, Indonesia, Thailand, Vietnam, Brunei, Australia, New Zealand and Guam. Gupta has worked in South East Asia for nearly two decades, including eight years in Singapore. September 2009: Supporting Olympians DBS became the official sponsor of the Singapore 2010 Youth Olympic Games. According to the terms of the sponsorship agreement, DBS will provide the Olympic venues with banking and, with some help from Visa, ATM services. DBS and Visa will also be doling out 500,000 prepaid cards to workers and spectators of the Games, which is expected to attract 5,000 athletes between the ages of 14 and 18 from around the world, 1,200 media personnel, 20,000 volunteers and 500,000 spectators. April 2009: CEO Richard Stanley Dies After just nine months on the job, DBS CEO Richard Stanley died from complications related to leukemia on Saturday, April 11th. Stanley joined DBS in May 2008, having previously worked within Asia’s banking sector for 18 years, including a period leading Citigroup’s China operations. Stanley replaced Jackson Tai, who had served as DBS’ chief executive for five years before stepping down in September 2007 due to personal reasons. As CEO, Stanley helped push DBS forward during a taxing time in the company’s history. During his short time in office, Stanley led the bank through such events as the announcement of a SD$4 billion rights issue, and the downsizing of 900 bank employees. Upon his passing, DBS Chairman Koh Boon Hwee said that Stanley had shown himself to be both a charismatic and endearing leader. More than a month after Stanley’s death, Koh announced that DBS would be instigating a global search for a new CEO, brushing away queries into whether he would be taking the role himself. Koh said that the recent global economic downturn open up a wider roster of candidates that would be able to continue growing the bank, and that the group would not simply recruit internally. December 2008: The right issue for increased bling As 2008 drew to a close, DBS turned to its shareholders in a bid to raise capital by utilizing a SG$4 billion rights issue. The rights issue allowed existing shareholders to purchase additional shares at discounted price. Then CEO Richard Stanley said that he believed that the issue would enable DBS to capture new opportunities in the Asian market and further strengthen the bank against an uncertain economic environment. Customized for: vinh (
[email protected]) GETTING HIRED Join the MAP You can find the DBS careers page at www.dbs.com/careers, which outlines the benefits of working for the firm. A list of current job openings with the firm can be found at www.dbs.com/careers/jobs.html. To apply for any opportunities, you will need to set up an account on the site. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 127 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition DBS Bank Ltd. Numerous opportunities are available for undergraduates and graduates. If you're still in school, check out the DBS internship program at www.dbs.com/careers/internships. Located in both Singapore and Hong Kong, the program lasts for eight weeks and "outstanding undergraduates studying in Year 2 or Year 3 from all disciplines" are encouraged to apply online. DBS also operates its Management Associate Programme (MAP) for university graduates. Working with the firm to choose from a number of career tracks, the MAP lasts for 18 months. The program is open to all disciplines and DBS stresses that "it is not necessary to have a business or finance degree to join." Fresh graduates and candidates with less than two years' work experience are invited to apply. According to the firm, approximately 30 to 50 graduates were recruited for the 2008 program. Information on MAP can be found at www.dbs.com/careers/graduates. Customized for: vinh (
[email protected]) 128 © 2009 Vault.com Inc. PRESTIGE RANKING 21 CLSA ASIA-PACIFIC MARKETS KEY COMPETITORS Goldman Sachs Macquarie UBS 18/F, One Pacific Place 88 Queensway Admiralty, Hong Kong Phone: +852-2600-8888 Fax: +852-2868-0189 www.clsa.com EMPLOYMENT CONTACT LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • Japan • Malaysia • Philippines • Singapore • South Korea • Taiwan • Thailand www.clsa.com/about-clsa/careers.php DEPARTMENTS Agency Broking Debt Capital Markets and Structured Finance Debt Restructuring and Advisory Equity Derivatives Futures and Options M&A/Financial Advisory Mezzanine Debt Funds Private Equity Funds Property Funds Research THE STATS Employer Type: Independent sub-group of Crédit Agricole Chairman and CEO: Jonathan Slone No. of Employees: 1,350+ No. of Offices: 19 Customized for: vinh (
[email protected]) 129 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CLSA Asia-Pacific Markets THE SCOOP A Canadian in Hong Kong CLSA Asia-Pacific Markets is the Asian brokerage, investment banking and private equity arm of French banking giant Crédit Agricole. The company was the brainchild of Canadian-born and Hong Kong-based business journalist Gary Coull, who spun the firm off from a Hong Kong brokerage firm called Winfull Laing and Cruickshank. When massive French bank Crédit Lyonnais (which was acquired by Crédit Agricole in 2003) bought out the firm, Coull took charge and set up the groundwork for an international brokerage operating out of Hong Kong. With Crédit Agricole's 65 percent ownership, Coull worked hard during his tenure as chairman to attract the attention of even more international investors to the Asian market. Part of his plan to do so included hosting annual investor forums, which featured splashy parties and appearances by international celebrities such as Elton John, James Brown and Macy Gray. Coull died in October 2006 of colon cancer, only one month after he was named one of the 50 most influential people in Asian financial history by FinanceAsia. CLSA was established as an equity brokerage, but as Asian markets have grown over the past several years, the company has delved more into the booming business of capital raising through IPOs. Today, it is a leading force in the equity capital markets in Asia. CLSA has a strong track record in the issuance of equity products for Asian corporates, and the firm has ranked in the top 10 on various Asia Pacific equity underwriter league tables, including Bloomberg’s and Thomson Reuters’. From January 2002 to December 2008, CLSA has been involved in 240 successful equity transactions in Asia, 115 of which involved companies in Greater China, helping raise US$57 billion for corporates. In that same period, CLSA completed 76 M&A and advisory transactions in nine markets. In 2003, CLSA Asia-Pacific launched a separate business in Japan under the name Calyon Securities. The firm offers equity research and sales in the Japanese market. In 2003, CLSA also established the first Sino-foreign joint venture investment bank in China, following the country's membership in the World Trade Organization. The joint venture is called China Euro Securities, Ltd. (CESL) and is headquartered in Shanghai, employing 80 investment professionals. CESL was originally a collaboration between CLSA Asia-Pacific Markets and Xiangcai Securities. However, in April 2007, Fortune Securities Company Limited officially took over Xiangcai's 67 percent stake in the company. CESL has been successful in extending CLSA's investment banking business to China. Since it was incorporated, CESL has completed 17 lead underwriting and sponsoring deals and has been recognized as the "Most Innovative Investment Bank Team in China" by the Securities Times in 2006, a Chinese newspaper overseen by the China Securities Regulatory Commission. One of CESL's biggest deals was the secondary offering of Zhenhua Port Machinery in December 2004, which was 88 times oversubscribed. Through its own business license and affiliates, CESL's investment banking services include equity financing, debt financing, private placement, enterprise restructuring and ownership reform, M&A, shareholding structure reform, enterprise strategy and financial planning. In June 2008, CESL was granted a broking license and equity research license, making it the first Sino-foreign joint venture securities company to be permitted to broke A-shares and offer full-service research. A variety of vehicles In March 2006, CLSA reorganized its private equity business into a separate group called CLSA Capital Partners, which currently manages eight funds for the company: Alcor Capital, Aria Investment Partners, MezzAsia Capital, Fudo Capital, CLSA Sunrise Capital, Clean Resources Asia, Clean Water Asia and Pacific Transport. These eight funds represent a diverse range of investment vehicles. Alcor Capital is an absolute return hedge fund focused on long- and shortterm equity opportunities. Aria Investment Partners focuses on growth and expansion capital for Asian mid-market companies, while CLSA Sunrise Capital focuses on growth opportunities in Japan. The company's two absolute return environmental funds—Clean Resources Asia and Clean Water Asia—give investors the chance to place bets on the burgeoning renewable energy and water infrastructure businesses. Fudo Capital is a real estate private equity fund and MezzAsia Capital is a mezzanine capital fund which covers mid-cap companies from Hong Kong to India. Customized for: vinh (
[email protected]) Awards and rankings • Best brokerage in the Asia Pacific region, excluding Australia, New Zealand and Japan, spanning the last 20 years (Asiamoney, 2009) • Best Overall Combined Research and Sales (Asiamoney, 2007–2009) • Most Independent Research (Asiamoney, 2006–2009) 130 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CLSA Asia-Pacific Markets • • • • • • • Best Overall Research for Asia, excluding Australia & Japan (Asiamoney, 2008–2009) Christopher Wood, Best Strategist in Asia, excluding Japan (Asiamoney, 2008) Best Overall Sales for Asia, excluding Japan (Asiamoney, 2008) Best Overall Sales Services, excluding Japan (Asiamoney, 2008) Best Overall Sales Services in Hong Kong, India, Indonesia and Thailand (Asiamoney, 2008) Best Regional Salesperson, Evelyn Moore (Asiamoney, 2008) Christopher Wood & Team, Best Equity Strategy (Institutional Investor, 2008–2009) IN THE NEWS November 2009: No. 1 again CLSA was again ranked as the top research and sales brokerage in Asia in Asiamoney’s annual Brokers Poll. The firm ranked No. 1 in the top four categories: Overall Combined Research and Sales (excluding Australia & Japan), Overall Research (excluding Australia & Japan), Overall Sales (excluding Australia & Japan) and Overall Sales Services (excluding Japan). August 2009: JV with Guosheng CLSA entered into a joint venture with Shanghai Guosheng (Group) Company Limited to create an RMB-denominated investment fund. The fund will focus on investing in and around Shanghai in renewable energy, green environment, consumer and heavy machinery sectors. July 2009: Best brokerage in last 20 years CLSA was named the best brokerage firm in the Asia Pacific region (excluding Australia, New Zealand and Japan) over the last 20 years by Asiamoney magazine. May 2009: Back to nature After 10 years spent leading CLSA from a small regional brokerage to one of the largest in Asia, chairman Rob Morrison called it a day in May 2009. The financial leader passed his chair to CEO Jonathon Slone, who was quick to cite Morrison’s achievements within the industry: “Rob's leadership and drive have led to the modernization of all the parts of CLSA. While it is with regret that we see Rob retire, we can thank him for our enviably stable financial position, robust management team, strong culture and leading market position.” In an interesting twist, Morrison is now focusing his attention on the environment as one of the founding members of the Copenhagen Climate Council and as a board member on the Asian Advisory Board of The Nature Conservancy. March 2009: Growing up down under Like many financial institutions, CLSA faced a number of difficulties stemming from the global economic crisis. For example, the brokerage was forced to cut costs through both job cuts and pay reductions. However, the economic crisis also proved to be a double-edge sword for CLSA, as the company took advantage of the dour financial climate and sought to bolster its operations in Australia. While the company employed just eight staff in the Sydney office when it opened in January 2009, later, in March 2009, Bloomberg reported that CLSA was planning to hire 24 additional employees in its research and sales divisions by the end 2009. CLSA’s Singapore office will continue to handle all Australian equity shares as well as broker Australian shares to global clients, while the Sydney office will focus on providing local research and sales resources. The company has also been gradually adding staff to its offices in China. Customized for: vinh (
[email protected]) March 2009: Making the cut CLSA Asia chief executive Robert Sloan cited a dwindling marketplace as a major factor that contributed to the company cutting 90 jobs in March 2009. Talking to Bloomberg, Sloan stated that areas in which the company’s business had recently declined, in regard to either clients or assets under management, have witnessed “adjusted staffing.” These cuts affected 7 percent of the firm’s staff across 14 of its 19 offices. Those cut were mostly workers from the administrative, back-office and technology departments. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 131 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CLSA Asia-Pacific Markets The March 2009 cuts weren’t the first time the global economic crisis forced CLSA to make difficult choices. In November 2008, Reuters reported that CLSA asked 500 senior employees to consider pay cuts. The employees in question had the option of taking a 15 percent, 20 percent, or 25 percent pay reduction. Those who chose to take a greater salary reduction had motivation to do so beyond merely helping the company through a tight spot. According to the option they chose, employees were promised bonuses of 8 percent, 17 percent, and 25 percent, respectively, in addition to their normal pay the following year. Of course, these bonuses were dependent on monthly cost targets being met. CLSA ran a similar scheme back in 2003 that was noted for its success. May 2008–July 2009: Swimming in dark pools In May 2008, CLSA took the Asia Pacific region’s first dip into dark pools, creating the first Asia-based electronic crossing network for both buy and sell-side investors. BlockSec was originally launched in Japan and Singapore before breaking ground in Hong Kong the following September. One week after its introduction to Hong Kong, BlocSec reached US$1.1 billion in liquidity at an average of US$243 million a day. Based on an anonymous system, the ‘BlocSec’ business provides minimized transaction costs and market impact, and has become a major success for CLSA. In June 2009, BlocSec was also made available in Australia. GETTING HIRED I'd like to thank the Academy CLSA boasts 1,350 employees with 15 offices in Asia, as well as additional offices in Dubai, London and New York. Experienced hires can submit a personal profile as well as a division and location preference through a separate recruitment page on the firm’s career web site, available at www.clsa.com/about-clsa/careers.php. For young executives, the firm operates CLSA Academy. CLSA Academy is described by the firm not as a graduate trainee program, but as "an executive-level induction into the world of finance for typically non-financial professionals." Candidates from a variety of backgrounds are encouraged to apply. Competition is fierce, with less than 15 places offered each year to a pool of more than 2,000 applicants. The program starts with three months of training at CLSA's head offices in Hong Kong, followed by four-month rotational programs at global offices through the firm's key businesses—research, sales, sales trading, investment banking and private equity. According to CLSA's web site, "after 18 to 24 months of rotations, you will move into a role mutually agreed by yourself and the CLSA management team." Academy associates are paid a basic monthly salary, with visas, flight costs, accommodation, travel insurance and medical insurance handled by the firm. Just be prepared to be flexible and travel at the drop of a hat, as the program is "for those with an adventurous spirit." To apply for the CLSA Academy, the first step is to fill out an online questionnaire, which is only available on CLSA's web site during open application dates, which will open late in the year. If you would like more information on the program, including testimonials from current and former participants as well as a FAQ, take a look at www.clsa.com/academy. For updates or any questions, contact
[email protected] with your email address. Customized for: vinh (
[email protected]) 132 © 2009 Vault.com Inc. PRESTIGE RANKING 22 THE ROYAL BANK OF SCOTLAND GROUP PLC KEY COMPETITORS Barclays Citigroup HSBC Holdings 36 St. Andrews Square Edinburgh, EH2 2YB United Kingdom Phone: +44 (0) 131 556 8555 Fax: +44 (0) 131 557 6140 www.rbs.com EMPLOYMENT CONTACT LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • Japan • Korea • Malaysia • New Zealand • Pakistan • Philippines • Singapore • Taiwan • Thailand • Vietnam Graduate recruitment for RBS Group: www.makeitrbs.com Graduate recruitment for Global Markets: www.rbs.com/gmgraduates Other: www.rbs.com/careers DEPARTMENTS Global Markets Group Functions Group Manufacturing RBS Insurance Regional Markets THE STATS Employer Type: Public Company Ticker Symbol: RBS (NYSE, LSE) Chairman: Philip Hampton Group CEO: Stephen Hester Revenue: £26.9 billion (FYE 12/08) Net Income: £-24.1 billion No. of Employees: 170,000 No. of Offices & Global Branches: 2,720 Customized for: vinh (
[email protected]) 133 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Royal Bank of Scotland PLC THE SCOOP The Royal family grows a little larger The Royal Bank of Scotland Group (RBS) operates in more than 50 countries, providing approximately 40 million customers with retail and corporate banking, financial markets, consumer finance, insurance and wealth management services. The company boasts more than 100,000 employees in the U.K., 26,000 in the Americas and 170,000 worldwide. But not long ago, it had a lot fewer insiders. From 1998 to 2008, the firm expanded rapidly, growing its international staff from just 30,000. During that time, it also grew its annual income, which swelled from GBP 3 billion to more than GBP 30 billion—thanks in part to the 29 acquisitions it made during the decade. Today, RBS is also one of the top five banks in Asia for corporate and institutional customers. In October 2007, after a long bidding war with Barclays, a consortium of banks led by the Royal Bank of Scotland was successful in acquiring Dutch banking giant ABN AMRO for a price tag of EUR 71.9 billion. The buyout was the largest financial services takeover ever and many at the time reported that the price was far more than ABN AMRO’s actual worth. RBS' partners in the ABN AMRO buyout were Banco Santander and Fortis. These two banks have assumed much of ABN AMRO's European and international business, but RBS gained control of its Asian operations, extending the company's already significant presence there. A failed expedition launches a financial superpower RBS can trace its roots back to the Darien Company, which launched a disastrous expedition to establish a Scottish trading company in Panama in 1699. England compensated the Scottish creditors eight years later—because it had promised support and then pulled out, which ultimately led to the expedition's failure. The entrepreneurial creditors began lending the money they were given and eventually, in 1727, received a royal charter and became the Bank of Scotland. RBS opened its first branch in 1873 and, almost a century later, merged with the National Commercial Bank in 1968. With the acquisition of National Westminster Bank (NatWest) in 2000—the biggest takeover in the history of British banking—and the August 2004 purchase of Charter One Financial, the 40th-largest lender in the U.S., RBS continues to grow its businesses around the world. Strategic alliance RBS joined a consortium of investors including the Li Ka Shing Foundation and Merrill Lynch in 2006, buying a 10 percent share in one of China's largest banks: the Bank of China. The group shelled out about US$3.1 billion for a stake in China's second-biggest lender, with RBS investing US$1.6 billion dollars. RBS's goal is to build on Bank of China's distribution strength and expand its credit card, wealth management, corporate banking and personal insurance business lines in China. The two banks are cooperating in the key areas of corporate governance, risk management, financial management, human resources and information technology. Bank of China went public on the Hong Kong and Shanghai exchanges in June 2006, diluting RBS' stake from 10 percent to 4.26 percent. The Chinese government holds a 67 percent stake. Taxpayers to the rescue Despite outperforming analyst expectations in 2007 with an 18 percent profit increase and an 11 percent increase in revenue, 2008 became a year to forget as RBS saw its market value fall below £12 billion. It was one of three banks, including Lloyds TSB and HBOS to accept £37 billion in government aid in October 2008 to stop them from following Bearn Stearns and Lehman Brothers down the financial pan. Lloyds TSB and HBOS received £17 billion, while RSB received the other £20 billion resulting in the government owning 58 percent of the firm. Along with the injection of cash, RBS chief executive Fred Goodwin stood down with immediate effect and was replaced by Stephen Hester, previously chief executive of British Land. As a condition of the deal, the government insisted that senior directors would not receive cash bonuses in 2008 with future bonuses to be paid in the form of shares. By January 2009 it became clear that the initial cash injection into the banking sector wasn’t enough to start them lending again. As a result, the government increased its share in RBS to 70 percent in return for the bank making £5 million available in customer loans. Customized for: vinh (
[email protected]) 134 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Royal Bank of Scotland PLC IN THE NEWS August 2009: Selling up In April 2009, the bank shortlisted three bidders for its Asian retail and commercial banking assets in the hope of raising up to US$1.8 billion. ANZ, HSBC Holdings and Standard Chartered were all rumored to be interested in bulking up their assets across the region and were in talks with the bank. But by June 2009 it was clear that RBS would have to break up its Asian business rather than selling it as a whole—which was its preferred option—due to a string of regulatory hurdles. After months of negotiations ANZ finally agreed to buy some of the British bank’s units in Asia for around US$550 million in August 2009. The agreement includes RBS’ retail, wealth and commercial businesses in Singapore, Taiwan, Indonesia and Hong Kong in addition to institutional businesses in Taiwan, Philippines and Vietnam. Standard Chartered was still said to be eyeing up RBS interests in China, India and Malaysia, but by August 2009 the banks still hadn’t completed a sale. June 2009–July 2009: Shaking things up a bit The year 2009 saw a complete shakeup of senior management at the British bank after yet another member of the senior team that oversaw its disastrous acquisition of ABN Amro in 2007 left the company. In June, Peter Nathanial, head of risk left the bank resulting in almost a complete overhaul of RBS’s senior management since 2007. Once Guy Whittaker, finance director leaves in October 2009 and deputy chief executive Gordon Pell retires early next year the board will be completely different. Stephen Hester, RBS’s chief executive since November 2008 has also changed many senior members of the staff below board level and changed all but three of the bank’s non-executive directors. And July saw a number of internal movements and new hires as Andrew Sill became country executive and head of global banking and markets in Malaysia. Reporting directly to Muhammad Aurangzeb, country executive for Singapore, Sill has worked with RBS for more than 20 years and has undertaken numerous roles within the bank including responsibility for the heritage NatWest Markets business in Malaysia and India. Also in July the bank moved David Goffage to head up the equity capital markets in Australia, replacing Patrick Broughton who relocated to London. As the previous managing director of RBS equity markets Australia, Goffage has worked within the division for over nine years. The bank also appointed Richard Hitchens from Goldman Sachs as director of specialist quantitative sales within its Australian equities division and Roger Spellman, previously of Credit Suisse, as director, head of sales for Australian equities. May 2009: A steep loss with a glimmer of hope Royal Bank of Scotland posted a US$1.29 billion net loss for the first quarter 2009, compared with a profit of about US$368 million for the previous year's first quarter. As a cause for the losses, the bank cited US$4.3 billion in write-downs on the value of assets (steeper than the US$986 million in write-downs it made during the first quarter 2008). Meanwhile, revenue increased 26 percent to US$14.5 billion, partially attributed to the 97 percent boost in profits at the firm's investment bank. However, CEO Stephen Hester warned against overenthusiasm, saying, "We expect credit conditions to continue to deteriorate over the next few quarters," adding that "there will be a slowdown in financial market activity compared with the very buoyant conditions seen in Q1." May 2009: Finance chief resigns RBS said its CFO Guy Whittaker will be resigning from the board immediately and officially departing from the firm in October 2009. Whittaker is the 13th member of the board to leave after the bank accepted a capital injection from the government in late 2008. Whittaker will be staying on while he helps find his successor, RBS said. April 2009: Hemorrhaging jobs Customized for: vinh (
[email protected]) RBS revealed that it was looking to cut up to 9,000 jobs worldwide as it sought to reduce costs and repay government funds. The majority of the cuts affected the bank’s Group Manufacturing unit, and were part of a process of saving $3.7 billion over the next three years. The unit combines back office functions like the handling of computer systems, managing the properties of branches and offices, procurement, security and fraud and human resources. February 2009: A record first The largest annual loss in British corporate history was recorded when RBS posted its financial results for 2008. In total the firm lost a total of £24.1 billion in 2008, which compared with a £7.3 billion profit the year before. The reason for the loss was put down to an over aggressive Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 135 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Royal Bank of Scotland PLC spending spree that included a disastrous purchase of ABN AMRO back in 2007 and exposure to the US subprime market, collapse of US investment bank Lehman Brothers and the failure of Icelandic banks. In Asia, the bank’s retail and commercial banking sector was hit by the slowdown in the regional economies. While income rose by 12 percent to £781 million, an operating loss of £113 million was incurred after manufacturing costs were factored in, compared with a loss of £20 million in 2007. RBS Coutts, the firm’s wealth management division continued to post good growth, however, at 19 percent with strong levels of client acquisition, which were up five percent in the year. In an overhaul of its structure, the bank revealed that it will be cutting more than £2.5 billion from its cost base, leaving the firm centered on Britain, with smaller and more focused global operations. The bank said this would mean leaving some countries entirely while reducing its footprint in others. January 2009: Balancing act In a move designed to shrink RBS’ balance sheet, the bank sold its 4.3 percent holding in Bank of China for $2.3 billion. According to press reports in Asia, the British bank sold the shares at between HK$1.68 and HK$1.71, a discount of up to nine percent of the prevailing market price. Reasons given for the sale included the firm’s need to concentrate scarce capital towards its British market and the hope that it would reduce the pressure on the bank having to sell its insurance operations Direct Line and Churchill. January 2008: New name in private banking Much of RBS' Asian business comes from its private banking branches situated throughout the region, with major offices in Hong Kong, Tokyo, Singapore and the United Arab Emirates. Private banking for RBS is done through its Coutts subsidiary, which was acquired as part of the Natwest deal in 2000. In January 2008, RBS made its mark more distinctive by renaming its private banking division RBS Coutts. RBS Coutts taps into the significant wealth growth of Asia by serving clients with more than US$500,000 in investable assets or clients with a net worth of more than US$5 million. In 2007, Asiamoney magazine named RBS Coutts the No. 1 wealth manager for clients with assets of more than US$25 million. GETTING HIRED The Royal salute Dedicating a whole domain name solely to graduate recruitment, RBS offers www.makeitrbs.com to save you the hassle of hunting around on a labyrinth-like web site. The firm runs a total of 30 different graduate programs, ranging from global markets (including all areas of investment banking), finance, risk and retail, to group technology and technology integration. International placements, professional development and rotational opportunities are also on offer. RBS maintains a helpful careers web site (www.rbs.com/careers) that allows jobseekers to learn about opportunities in Asia Pacific; graduates interested in global markets opportunities should check out www.rbsmarkets/gmgraduates. Information on Asia Pacific is sorted by location: Hong Kong, Japan, Singapore, Australia and India. Opportunities are available in global markets in Hong Kong and Japan, and in operations and finance for global markets in Singapore. In India, the bank recruits for its India Development Centre (IDC), a technology group with about 600 employees. Students and jobseekers can apply directly via email through the web site. If you're a penultimate-year student with your heart set on banking, you can look into RBS' 10-week summer internships, available in global markets, finance, human resources, internal audit and risk. Customized for: vinh (
[email protected]) Skills to pay the bills There are a myriad of opportunities for graduates looking for a path into a banking career, primarily in the form of one- to three-year programs. Entry requirements vary from program to program, but as a general rule, most require a minimum 3.4 GPA with a degree in any discipline. Some, such as risk management, need more specific skills and require a more technical qualification, such as a degree in mathematics, statistics, economics or engineering. All positions require prior work experience. 136 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Royal Bank of Scotland PLC Sign here ... Applications are submitted online, but you'll need to register on the site first. The selection process varies from division to division. If you meet the minimum requirements, you'll be asked to complete an online competency questionnaire, followed by a numerical reasoning test. The next step is a telephone or face-to-face interview. The final assessment step comes at a graduate assessment center in all divisions. These centers are located in Hong Kong and Singapore. RBS notes that for some business areas they will hold a pre-assessment dinner—stressing that the dinner is not assessed. So don't worry too much about how you were holding your chopsticks when you spilled your wine on the chief executive—but do use the opportunity to ask those in the know about what it's like to work for RBS. Overall, the assessment will involve a numerical reasoning test, a group challenge, a presentation, a face-to-face interview and a planning and organizing exercise. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 137 PRESTIGE RANKING 23 MITSUBISHI UFJ FINANCIAL GROUP, INC. KEY COMPETITORS Citigroup Mizuho Financial Group Sumitomo Mitsui Financial Group 7-1, Marunouchi 2-chome Chiyoda-ku Tokyo, 100-8330 Japan Phone: +81-3-3240-8111 Fax: +81-3-3240-7520 www.mufg.jp/english/index.html EMPLOYMENT CONTACT Send resumes to: 7-1, Marunouchi 2-chome, Chiyoda-ku Tokyo, 100-8330, Japan Fax: +81-3-3240-7520 LOCATIONS IN ASIA PACIFIC Australia • Bangladesh • China • Hong Kong • India • Indonesia • Japan • Malaysia • Myanmar • New Zealand • Pakistan • Philippines • Singapore • South Korea • Taiwan • Thailand • Vietnam DEPARTMENTS Corporate Banking Retail Banking Trust Assets THE STATS Employer Type: Public Company Ticker Symbol: MTU (NYSE) President & CEO: Nobuo Kuroyanagi Gross Profit: JPY 3.273 trillion (FYE 3/09) Net Income: JPY -256.9 billion No. of Employees: 79,500 No. of Offices: 1,076 Customized for: vinh (
[email protected]) 138 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Mitsubishi UFJ Financial Group, Inc. THE SCOOP Global giant Mitsubishi UFJ Financial Group (MUFG) was formed as a result of the 2005 merger between Mitsubishi Tokyo Financial Group and UFJ Holdings. The company is now the world's biggest bank by assets, with JPY 198.73 trillion under control. MUFG's 45,182 employees provide deposit, lending, leasing, investment advice and trust services in Japan and internationally in more than 40 other countries. In 2009, MUFG ranked No. 128 on the Fortune Global 500 list of the world’s largest corporations. MUFG operates in three core business areas: retail banking, corporate banking and trust assets. In corporate banking, which accounts for over 60 percent of MUFG's business, the firm focuses primarily on investment banking, offering advisory services on mergers and acquisitions, inheritance-related business transfers and stock listings. Mitsubishi UFJ Securities, a 60-year-old securities arm, became a subsidiary of MUFG in September 2007. The firm also operates Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Trust and Banking. In the U.S., MUFG owns 65 percent of UnionBanCal, parent to Union Bank of California. Mega deal The merger of Mitsubishi Tokyo and UFJ reduced the number of Japan's mega-banks to three, as the combined company joined the ranks of competitors Mizuho Financial Group and Sumitomo Mitsui. Mitsubishi Tokyo, a banking powerhouse and one of the sole Japanese banks to remain healthy in the 1990s, saw a chance to secure a competitive position against the two other mega-banks by teaming up with the struggling UFJ. In the fiscal year prior to the merger, UFJ lost US$3.7 billion and was clearly the weakest of Japan's big four banking groups at the time. Subprime lite By 2008, its third year operating as a joint company, MUFG claimed its position as the largest of Japan's three mega banks and the world's largest financial institution by assets, a title it still held as of July 2009. But reality started hitting in late 2007, as the firm began feeling from the U.S. subprime loan fiasco. For the fiscal year ended March 2009, the firm reported a net income loss of JPY 256.9 billion. Awards and rankings • No. 128, Global 500 (Fortune, 2009) IN THE NEWS July 2009: Mitsubishi and Morgan sitting in a tree … MUFG announced that its strategic partnership with fellow financial group Morgan Stanley would expand its global scope through several new initiatives. These initiatives include the formation of a loan marketing joint venture based in the U.S. that will make business referral arrangements in Asia, Europe, the Middle East and Africa; a referral agreement for commodities transactions occurring outside of Japan; and lastly, a mutual secondment of employees to strengthen personnel experience and exposure. The two financial giants have been discussing various partnership arrangements since October 2008, when MUFG spent US$9 billion for convertible preferred shares amounting to a roughly 20 percent stake in Morgan Stanley. Customized for: vinh (
[email protected]) June 2009: To catch a thief A former employee of Mitsubishi UFJ Securities, a MUFG brokerage unit, was arrested in June 2009 by the Tokyo police department under the suspicion of stealing the personal data of 1.5 million customers. Prior to the arrest, Mitsubishi UFJ Securities had received nearly 15,000 complaints from customers who felt their accounts had been compromised, including institutional accounts, some of whom suspended their transactions in the brokerage house. The thief is suspected to have illegally accessed and copied the customer information from two of the company’s offices. This crime comes quick on the heels of a similar situation in April 2009, when a company employee sold the personal data of roughly 50,000 customers. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 139 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Mitsubishi UFJ Financial Group, Inc. May 2009: On the open seas of lending According to a May 2009 report in Bloomberg, MUFG made US$1.62 billion in shipping loans during the first three months of 2009, surpassing Norway’s DnB NOR ASA as the world’s largest lender to the shipping industry. Thanks to the global financial crisis, many banks tightened lines of credit available to businesses, and the demand for transporting commodities and consumer goods likewise decreased in many areas of the world. However, many Asian banks took the opportunity made available by the crisis to play a greater role in ship-financing, as the Asia Pacific region was generally less severely hit by the credit crunch. May 2009: Close but no Citi MUFG cancelled its plan to purchase Citigroup’s Japan trust banking unit in May 2009 after a five-month period filled with twists and tangles. The dance began in December 2008, when MUFG agreed to buy NikkoCiti Trust and Banking in a cash deal worth JPY 25 billion. This purchase was announced simultaneously with MUFG’s plans to buy other Japanese units of Citigroup, including Nikko Asset Management and the brokerage firm Nikko Cordial Securities. Unfortunately for MUFG, many of these announced purchase plans led to heated bidding wars with other large Japanese financial institutions, including Mizuho Financial Group and Sumitomo Mitsui Financial Group, the latter of which edged out MUFG to acquire Nikko Cordial. After MUFG lost its bids on other Citi units, the company decided that owning NikkoCiti Trust by itself would not bring it as many benefits as holding several units simultaneously, and thus cancelled its original plans. May 2009: Cayman Island Capital In February 2009, MUFG announced the establishment of a new subsidiary devoted to the issuance of preferred securities through private placements to qualified institutional investors for improved capital management. MUFG Capital Finance 9 Limited, the new subsidiary, was officially established in late May 2009 and incorporated in the Cayman Islands. March 2009: Cutting back and closing down It was revealed that MUFG plans to cut 1,000 jobs and shutter 50 branch locations. Already, the bank had closed 70 branches while integrating its acquisition of UFJ Holdings. January 2009: Big write-downs MUFG said it would take about US$3.2 billion in write-downs for the fourth quarter of 2009. October 2008: The bank that keeps on growing In a move that further enlarged MUFG’s market capitalization, the prominent Japanese lender completed a takeover of Acom, Japan’s secondlargest consumer finance company, in October 2008. Prior to the takeover, MUFG already owned a 15 percent share in Acom. The company then shelled out approximately US$1.4 billion to acquire a roughly 40 percent stake in Acom, making it the largest shareholder in the firm. GETTING HIRED Experts, unite Customized for: vinh (
[email protected]) On MUFG's web site at www.mufg.jp/english, the bank describes its management philosophy as providing "the opportunities and work environment necessary for all employees to enhance their expertise and make full use of their abilities." If you're a good citizen, it probably won't hurt your chances either—MUFG also details how it contributes to communities, including supporting employee volunteer programs. But, one thing the firm doesn't have on its site is actual job listings. If you're interested in applying, your best bet is probably to mail your resume to the firm's physical address at 7-1, Marunouchi 2-chome Chiyoda-Ku, Tokyo 100-8330, Japan. 140 © 2009 Vault.com Inc. PRESTIGE RANKING 24 BANK OF CHINA KEY COMPETITORS Agricultural Bank of China China Construction Bank Industrial and Commercial Bank of China 1 Fuxingmennei Dajie Beijing, 100818 China Phone: +86-10-6659-6688 Fax: +86-10-6659-4568 www.boc.cn/en EMPLOYMENT CONTACT LOCATIONS IN ASIA PACIFIC China • Indonesia • Hong Kong • Japan • Malaysia • The Philippines • Singapore • South Korea • Thailand • Vietnam www.boc.cn/en DEPARTMENTS Asset Management Equities Sales and Trading Fixed Income Foreign Exchange and Settlement Investment Banking (through BOCI subsidiary) Investment Research Personal Banking THE STATS Employer Type: Public Company Ticker Symbol: BOC (HKSE) Chairman: Xiao Gang Net Interest Income: RMB 162.93 billion (FYE 12/08) Net Profit after Tax: RMB 65.89 billion No. of Employees: 249,278 No. of Offices: 10,789 Customized for: vinh (
[email protected]) 141 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of China THE SCOOP Chinese champion When Bank of China (BOC) went public on the Hong Kong stock exchange in June 2006, it raised US$9.7 billion, the biggest global offering since the debut of AT&T Wireless in 2000. The massive numbers far eclipsed many of the most hyped U.S. IPOs of recent years and increased the already significant buzz about the rise of China's financial prominence in the world. It is estimated that one in every six Hong Kong residents bought shares of the bank when it first went public. Bank of China serves retail and corporate customers, as well as providing treasury services for financial institutions and individuals which include currency trading and investment, wealth management, value-secured debt business and financing services. For its retail customers, the bank offers standard banking services such as savings deposits and wealth management services. It also offers credit card services with the "Great Wall" card, which was the first credit card to enter the mainland Chinese market when it was established in 1986. The bank's international financial services include inter-bank lending, insurance, and agent and custodian services. In addition to having branches located throughout China, BOC also operates across the Asia Pacific region in countries such as Australia, Bahrain, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Globally, BOC has outposts in North and South America, Africa, and European countries such as the U.K., France, Germany, Italy and Russia. In 2009, BOC ranked No. 145 on Fortune's Global 500 list of the world’s largest corporations. As of September 2009, it had RMB 8.3 trillion in assets. Defying warlords Bank of China’s roots extend all the way back to 1912, when Sun Yat-sen, the provisional president of China at the time, decided that Da Qing Bank should change its status and become a central bank. On Sun’s orders, Bank of China was then established, with its headquarters located in Shanghai. Only four years later, during the so-called Warlord Period, the government of the northern warlords threatened BOC and demanded the bank stop redeeming bank notes for silver. However, facing down the warlords with steely financial courage, the bank rejected the order, boosting its credibility as a credit-worthy bank in the process. In 1929, BOC opened its first overseas branch in London and continued to greatly expand its international presence over the next 20 years. On November 6, 1984, BOC issued the first overseas bond in the history of modern China—JPY 20 billion of Samurai bonds from Japan. The bank quickly became an established issuer of bonds, raising over US$5 billion by 2001. Restructuring for the future Bank of China incorporated its subsidiary, BOC International Holdings, Ltd. (BOCI), the first state-owned investment bank in China's history, in 1998. The institution is headquartered in Hong Kong, but in June 2000, it expanded into mainland China, opening a representative office in Beijing. The firm now handles all of BOC's investment banking along with equities sales and trading, fixed income, asset management and investment research. In 2001, BOC merged 10 of its member banks into a subsidiary named Bank of China Hong Kong Ltd., which later went public in July 2002, raising US$2.8 billion. IN THE NEWS October 2009: Turning a profit Customized for: vinh (
[email protected]) For the three months ended November 30, 2009, BOC brought in net income of RMB 40.9 billion, which was relatively flat versus the third quarter of 2008. But for the nine months ending November 30, 2009, Bank of China booked a profit of RMB 62.23 billion, an increase of 3.8 percent versus the same period in 2008. May 2009: Water world Bank of China signed a strategic agreement with Sinohydro Corporation, one of the most prominent Chinese companies in the field of hydropower engineering and construction, in May 2009. The partnership will involve BOC providing services such as financing for domestic and overseas projects for Sinohydro, as well as insurance for overseas engineering. The bank has agreed to extend up to RMB 40 billion in credit to Sinohydro for such projects. 142 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of China April 2009: Trading pioneer Japan-based Bank of Tokyo-Mitsubishi UFJ and BOC announced a deal in April 2009 to cooperate on a banking initiative called Trade Service Utility (TSU). The Trade Service Utility is a system of matching trade documents between banks and corporate clients to increase the efficiency and stability of funding throughout the supply chain. Bank of China's involvement in this agreement marks a big step in furthering the development of inter-country trading in China's banking sector. March 2009: A view from the bridge BOC won a bidding war to finance an ambitious infrastructure project that will construct a bridge linking Hong Kong to Macau and to Guangdong Province in mainland China. Estimated to cost around RMB 72.6 billion, the project has been in development since 2004, and will feature a bridge spanning an impressive 29.6 kilometers over open ocean. Apart from money that will be invested in the project by China's central government, banks will provide an additional RMB 21.87 billion in financing. Since it won the bid, BOC is responsible for providing financial consultation along with organizing credit solutions. March 2009: Triumphing over the financial crisis Bank of China released surprisingly good year-end results for 2008 in spite of the raging global economic crisis. In its annual report, released in March 2009, the bank reported that its total assets grew by 16 percent in 2008 to reach RMB 6.95 trillion. Meanwhile, profit after income tax, increased 6.22 percent for the year, climbing to RMB 65.89 billion. In the latter half of 2008, the bank lent extended credit to a multitude of companies, supported, in part, by the central government's economic stimulation policies. Some of the strongest areas of growth for BOC during the year were commercial banking and foreign exchange settlement. In the midst of its increasing assets and profits, BOC also gave back to the community, donating a total of RMB 150 million to victims of the May 2008 earthquake in Sichuan Province. January 2009: Shares for sale Royal Bank of Scotland (RBS) sold its 4.26 percent stake in BOC for GBP 1.6 billion, just weeks after another large European financial group, Switzerland’s bank UBS AG, unloaded roughly 3.4 billion of its shares in the Chinese bank. In both cases, the shares were sold to institutional investors. UBS had originally purchased its BOC shares at the time of the bank's IPO back in 2005. November 2008: Banking on the tracks China's Ministry of Railways (MOR) signed a deal with BOC in November 2008 to enhance cooperation and business between the two entities. Under the terms of the agreement, BOC is now designated as the main financial institution for the MOR for both investments and insurance. In addition, BOC agreed to help the MOR finance railway and infrastructure projects carried out between 2009 and 2011. August 2008: Airing out the laundry Former BOC managers Xu Chaofan and Xu Guojun were found guilty of conspiracy charges in the U.S. in August 2008, based on fraudulent activities that began in 1991. The two managers were involved in an elaborate scam in which they took bank assets and moved them to the U.S. through laundering and visa fraud. Auditors traced irregularities dating back to 2001 to the branch where Xu Chaofan was manager. Later, after the identities of the men and the scheme they had perpetrated were discovered, an investigation team found the men living under false identities in the U.S. In May 2009, a Nevada judge sentenced Chaofan to 25 years in prison, while Guojun was sentenced to 22 years behind bars. Customized for: vinh (
[email protected]) July 2008: A gold medal opportunity Bank of China went for the gold as a sponsor and supporter of the 2008 Beijing Summer Olympic Games. The bank was the official banking partner of the Games and was involved in coordinating nearly all financial aspects of the events. The Hong Kong branch of BOC also got in on the action by issuing limited-edition commemorative banknotes for the Games. Meanwhile, the company had a more personal connection to the games as well, as BOC Chairman Xiao Gang took part in the torch relay in August, and the following month 14 of the bank's employees participated in the torch relay for the Paralympics. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 143 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bank of China January 2008: Year of the Yao BOC announced that it would be partnering with China Merchants Bank, Legend Holdings and the Walt Disney Company to buy approximately 11 percent of NBA China, a new company focused on nurturing an appreciation for basketball in China. The National Basketball Association (NBA), a U.S.-based company that’s runs a professional basketball league in the states, hopes the new company will raise the bar for the sport in China. NBA China reserves the right to create new teams, as well as to broadcast games and sell licensed merchandise at its discretion. The company has recently welcomed legions of new fans in China in recent years, largely due to the success of Yao Ming, a seven-foot tall basketball superstar from Shanghai who plays for the NBA. GETTING HIRED Use your resources Although BOC’s main site at www.boc.cn/en doesn't offer a section with job listings, that doesn't mean that it's impossible to snag a job with the bank. Direct contacts for branches in China are listed under the "Contact BOC" link from the main page. Applicants able to read Simplified Chinese can head to www.boc.cn/bocinfo/bi4 for a list of recruitment notices for both experienced hires and students. Open positions and campus visits are periodically listed. The English page of BOC's Hong Kong site at www.bochk.com has a careers section under the "About Us" heading that lists positions by department, including audit, China business, corporate banking, global markets, investment product management, risk management and much more. Links for the firm's graduate trainee and summer internship programs are also available. To apply for a position, send your CV or resume and cover letter to
[email protected]. Be aware that "applicants who do not hear from us within eight weeks may consider their application unsuccessful," according to the bank. Customized for: vinh (
[email protected]) 144 © 2009 Vault.com Inc. PRESTIGE RANKING 25 ANZ (AUSTRALIA AND NEW ZEALAND BANKING GROUP) KEY COMPETITORS Commonwealth Bank of Australia National Australia Bank Westpac Banking Corporation Level Level 6, 100 Queen St. Melbourne, 3000 Australia Phone: +61-3-9273-5555 Fax: +61-3-9273-6142 www.anz.com EMPLOYMENT CONTACT LOCATIONS IN ASIA PACIFIC Australia • Cambodia • China • Hong Kong • Indonesia • India • Japan • Korea • Laos • Malaysia • New Zealand • Philippines • Singapore • South Pacific Islands • Taiwan • Thailand • Vietnam www.anz.com/about-us/careers DEPARTMENTS Business, Corporate and International Banking Commercial Banking Foreign Exchange Markets Investments and Insurance Personal Banking (Transactions, Loans, Credit Cards, Debit Cards) Private Bank and Trustees Transaction Services THE STATS Employer Type: Public Company Ticker Symbol: ANZ (ASX, NZX) CEO: Mike Smith Revenue: AU$30 billion (FYE 9/09) Net Income: AU$2.94 billion No. of Employees: 36,094 worldwide No. of Offices: 1,346 branches/ representative offices Customized for: vinh (
[email protected]) 145 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Australia and New Zealand Banking Group Limited (ANZ) THE SCOOP Australasia and beyond The Australia and New Zealand Banking Group (ANZ) may be headquartered in Melbourne, but the bank has operations across the globe with major outposts in China, East and Southeast Asia, the South Pacific Islands, the United Kingdom and the United States. Aiming to be a "superregional bank" by 2012 with 20 percent of its revenue coming from Asia, the bank took some big steps towards this goal in August 2009 by scooping up a number of the Royal Bank of Scotland's Asian businesses. In 2008, ANZ named its Hong Kong office as a centralized regional hub for its Asia Pacific operations. With assets of more than AU$471 billion as of September 2008 (the end of ANZ's fiscal year), and boasting more than 6 million personal, private banking, small business, corporate, institutional and asset finance customers, ANZ is one of the four largest banks in Australia. Hungry for acquisitions ANZ traces its roots back to harder times in Australia's history. The bank was first established by British royal charter in 1835 as the Bank of Australasia. More than a century later, the firm merged with the Union Bank of Australia in 1951 to form ANZ Bank. In 1970, ANZ Bank returned to its Anglo roots when it merged with the English, Scottish and Australian Bank Limited, cementing its current form. After the merger, the bank’s name was changed to Australia and New Zealand Banking Limited Group. At the time, it was the largest merger in Australian banking history. Having already established a presence in the Solomon Islands, New York City and Tokyo, the newly merged company expanded its presence to include offices in Malaysia and Vanuatu. Over the next 30 years, the company grew exponentially with an acquisition spree that included the Bank of Adelaide in 1979, Grindlays Bank in 1984, and PostBank in 1989. Further, in 1990, ANZ once again went acquisition crazy, scooping up the National Mutual Royal Bank Limited, Lloyds Bank's operations in Papua New Guinea, the Bank of New Zealand's operations in Fiji and the Town and Country Building Society in Western Australia. During this flourishing era in ANZ's history, it also launched offices and branches all over the world—in Paris; Frankfurt; Singapore; Manila; Bangkok; Hanoi and Ho Chi Minh City; Beijing, Shanghai and Guangzhou; and in Tonga and the Cook Islands. In June 2007, ANZ also completed its acquisition of E*Trade Australia in an attempt to fully take advantage of the increase of equity trading in Australia. Following the acquisition, ANZ achieved a leading global bank ranking on the Dow Jones Sustainability Index, which it retained in 2009 for the third consecutive year. Additionally in 2007, ANZ acquired a stake in AMMB Holdings Berhad (AmBank), the fifth-largest financial institution in Malaysia, and now holds almost 20 percent of the firm. Expanding in China During the past few years, ANZ has focused much of it expansion efforts in Asia on gaining a stronger foothold in China. This strategy began taking shape in 2006 with the US$252 million purchase of a 19.9 percent stake in Shanghai Rural Commercial Bank (SRCB). At the time of the buy-in, SRCB had approximately 330 branches, 5,000 employees, 2.5 million customers and RMB 137 billion in assets. In the world of Chinese finance, however, that only places SRCB as the 17th-largest bank in mainland China. Pushing further into the mainland in 2006, ANZ purchased a 20 percent share of Tianjin City Commercial Bank for US$112 million. ANZ hopes that these expansion efforts will place it among the biggest foreign players in China, such as Citigroup, Bank of America and HSBC, who all made investments in Chinese banks prior to the World Trade Organization regulations adopted by the Chinese banking industry in December 2006. Customized for: vinh (
[email protected]) Hello, Mr. Smith In October 2007, ANZ brought in Michael "Mike" Smith, a veteran from The Hongkong and Shanghai Banking Corporation (HSBC), to lead the way forward as ANZ's CEO. Smith indicated plans to continue expansion in the Asia Pacific region in both the short- and long-term future. Smith's base salary at ANZ was reported to be AU$9 million, giving him the distinction of being the most highly paid executive among Australia's commercial lenders. Prior to joining ANZ, Smith served as the president and CEO of HSBC's Hong Kong operations as well as the chairman for HSBC’s banking enterprises in the region including Hang Seng Bank and HSBC Bank Malaysia Berhad. 146 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Australia and New Zealand Banking Group Limited (ANZ) Awards and rankings • Most Sustainable Bank Globally (Dow Jones Sustainability Index, 2007-2009) • Employer of Choice for Women (EOWA, 2003-2009) • Socially Responsible Bank of the Year (Money/CANSTAR CANNEX, 2009) • Most Satisfied Customers in Australia, Innovation Excellence Award for ANZ Online Investment Account, Innovation Excellence Award for SmartyPig, Best Value Australia Agribusiness Bank (CANSTAR CANNEX, 2009) • Award for Innovation in Account Aggregation for ANZ Money Manager (Financial Insights Innovation Award, 2009) • Best Local Private Bank—Australia (Euromoney Private Bank Awards, 2009) • Best Local Cash Management Bank for Small and Large Corporates 2009 (Asiamoney, Cash Management Awards 2009) • Best Trade Bank in Australasia (Trade Finance Asia Awards for Excellence 2009) • Best Trade Finance Bank in Australia 2009 (Global Finance, awarded December 2008) • Best Australian Dollar Bank (FX Week, 2005-2008) • MAstralia loans (by deal value)—No. 2 (Thomson Reuters League Tables, 2008) IN THE NEWS August 2009: New faces in Asia With the acquisition of all those RBS businesses, some reshuffling of leadership in Asia was announced. In Hong Kong, Alistair Bulloch takes the reins as deputy CEO for Asia Pacific, Europe and America, while Gilles Plante comes in to serve as the CEO for North East Asia, Europe and America. Specifically related to the RBS acquisition, Craig Sims, currently the CEO for ANZ's Pacific region, will be relocating to Singapore as the firm's head of integration, and aims for a smooth transition in each of the six markets once regulatory approval has been received. Meanwhile, taking over from Sims as the CEO for ANZ's Pacific region will be Michael Rowland, who will be based in Melbourne. Finally, there's a new managing director for retail banking and wealth products Asia Pacific: Wendy Lim, who joins from RBS, where she served as the head of retail banking for Greater China and South East Asia. All positions will be reporting to Alex Thursby, the CEO for Asia Pacific, Europe and America, and the appointments are expected to take effect in early 2010. August 2009: Hope you like haggis! Big news in August 2009, as ANZ ended months of speculation by announcing it had acquired a large amount of Royal Bank of Scotland's Asian assets. RBS, which was bailed out by the British government and is now 70 percent owned, desperately needed to raise capital to tighten up its balance sheet. For approximately AU$687 million, ANZ came away with RBS' retail, wealth and commercial businesses in Taiwan, Singapore, Hong Kong and Indonesia (the latter through 85 percent-owned subsidiary PT ANZ Panin Bank), and its institutional businesses in Taiwan, the Philippines and Vietnam. The RBS acquisition adds 54 branches, AU$4 billion in loans and AU$8.9 billion in deposits, and will triple ANZ's customer base in Asia from one million to three million clients. All acquisitions are pending regulatory approval in each market, which are expected to be completed in late 2009. Customized for: vinh (
[email protected]) Upon the purchase, ANZ Group CEO Mike Smith remarked, "The acquisition of these RBS businesses is a further stepping stone in our superregional strategy and creates a new platform for our retail and wealth businesses in Asia." Notably absent from the assets were RBS' operations in India and China, but further acquisitions could be on the cards. Post-deal, ANZ gained about AU$4 billion in surplus capital under its wings, and to fuel speculation, Smith added intriguingly, "There are one or two things on the horizon." Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 147 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Australia and New Zealand Banking Group Limited (ANZ) August 2009: Opes resolved Nearly 16 months after the securities house collapsed, investors in the Opes Prime debacle ultimately settled with ANZ and Merrill Lynch in August 2009 in a deal brokered by the Australian Securities and Investments Commission (ASIC). Under terms of the deal, ANZ and Merrill Lynch will pay creditors around AU$226 million in cash—working out to a investment return of about 37 cents on the dollar—with the condition that all legal action is dropped against the two banks. July 2009: Musical chairs for chairman spot It was announced in July 2009 that John Morschel would be succeeding Charles Goode as ANZ's chairman, effective February 2010. Goode, who is retiring, has served as chairman since 1995, and remarked on Morschel's appointment: “John is one of Australia’s most respected business leaders who has extensive experience as a chief executive and more recently as a non-executive director and chairman of major Australian and international companies. John will also bring to the role a strong background in banking and financial services.” However, Morschel wasn't the original choice for the position. In November 2008, it had been announced that Sir Rod Eddington would be succeeding Goode by mid-2009. Eddington joined ANZ as a director in November 2008 alongside prominent Singaporean businessman and former SingTel CEO Lee Hsien Yang—son of the former prime minister of Singapore, Lee Kuan Yew. Eddington also sits on a number of other boards, including JPMorgan (as the chairman for Australia and New Zealand), Rio Tinto, News Corporation, CLP Holdings (also known as China Light & Power) and John Swire & Sons. Eddington withdrew his offer to serve as a director on ANZ's board in July 2009, with no reason cited by the firm, though they did wish him well. However, numerous news sources pointed to Eddington's connection as a director of failed financial services firm Allco Finance Group, which suffered due to subprime mortgages and ultimately went into receivership in November 2008, becoming one of the first Australian firms to collapse amidst the credit crisis. Allco is now the subject of an investigation by the Australian Securities and Investments Commission (ASIC), according to Bloomberg. June 2009: New heads in HK and PNG Two 2008 ANZ joiners moved into top positions in June 2009: Susan Yuen and Vishnu Mohan. Yuen became the CEO for ANZ's operations in Hong Kong, after serving for many years with Maybank and HSBC in Malaysia. Meanwhile, Mohan was named as the CEO for ANZ's Northwest Pacific region, as well as the managing director for Papua New Guinea operations. Mohan joined ANZ in 2008 after spending 32 years at Standard Chartered Bank. March 2009: Job cuts and relocations to India ANZ announced in December 2008 that it would be cutting 400 further jobs in Australia, bringing total layoffs for 2008 to roughly 800 (approximately 2 percent of its global workforce). Middle management felt the brunt of the cuts. Just a few months later, in March 2009, the bank announced that an additional 500 IT and back-office jobs would be relocated from Melbourne headquarters to the firm's Indian office in Bangalore. In a statement, an ANZ spokesperson explained, "In 2008, the size of the operation in Bangalore grew by around 500 people and it is reasonable to expect there will be similar growth in 2009." ANZ maintained its position that it would keep its call center operations in Australia. Both the layoffs and the Indian relocations are part of a cost-cutting restructuring plan, which the bank outlined in November 2008. January 2009: Indonesian express ANZ steadily continued its Asia expansion in January 2009, shelling out AU$166 million to boost its stake in Indonesia's PT Bank Panin, from 19.9 percent to 38.3 percent. However, ANZ's been in business with PT Bank Panin for quite some time already—since 1993, ANZ has owned 85 percent in joint venture PT ANZ Panin Bank. The increased stake in PT Bank Panin comes on the heels of the 2008 launch of the ANZ Tower in Jakarta, a new hub for the bank in Indonesia. According to Alex Thursby, ANZ’s chief executive in Asia Pacific, “Indonesia is a key market in ANZ’s growth strategy in Asia.” Customized for: vinh (
[email protected]) March 2008–August 2008: Not a prime moment The meltdown and subsequent liquidation of Australian securities house Opes Prime Stockbroking in March 2008 triggered problems for ANZ and Merrill Lynch, creditors for the collapsed firm. Causing 22 companies (mostly small-cap) to halt trading, the Opes Prime crisis left ANZ unable to collect a hefty sum of AU$650 million owed to it by the liquidated stockbroker. ANZ’s institutional lending division took a hit on a few other fronts, and as a result, the bank earmarked up to AU$975 million to cover any outstanding bad debts. 148 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Australia and New Zealand Banking Group Limited (ANZ) ANZ took possession of 26 percent of biotech firm BioProspect and over 20 percent in pharmaceutical firm Solagran; their shares served as security for loans to Opes Prime. The publicly-listed BioProspect brought ANZ in front of Australia's Takeovers Panel, and ultimately emerged victorious on its accusations that ANZ was in breach of takeover law by failing to declare the 26-percent acquisition. By August 2008, ANZ had fully unloaded its shares in BioProspect and Solagran as a way to recoup some of the debts. GETTING HIRED Break out of the mold ANZ’s careers site at www.anz.com/about-us/careers covers a wide range of opportunities. Job seekers can browse a wide variety of worldwide opportunities for permanent (full-time and part-time), contract or temporary positions. Jobs are searchable by country, region, division and position. To apply online, you will need to set up an account. An eight-week summer internship program is available for students in Australia and New Zealand, with the possibility of landing an early graduate offer straight out of school. In Australia, roles are available in a range of areas including Accounting and Finance, Operations, Technology, Wealth, and within the Institutional division. A longer-term industry-based learning (IBL) program is also available in Melbourne for ANZ for students in their second year. The program lasts 12 months and gives participants some real-life experience at the firm, with the chance of an early graduate offer upon completion of studies. ANZ’s Graduate Program offers a rotational program ranging between 18 to 24 months within specific businesses and functions in Australia and New Zealand. A new Global Generalist Bankers Program was launched in 2009, which aims to develop and retain generalist bankers with broad experience across multiple banking disciplines. For information and requirements on internships, the IBL program and the Graduate and Global Generalist Bankers programs in Australia, go to www.anzgraduates.com.au. For New Zealand, check out www.anzgraduates.co.nz. Alternatively, ANZ operates local graduate recruitment helplines in Australia (1800 000 075) and New Zealand (0800 007 456), with direct email contact at
[email protected]. Since 2002, ANZ has recruited over 250 Indigenous trainees in branches around Australia. The bank believes that investing in training and supporting the Indigenous community provides opportunities for talented individuals to grow and open doors to a career with ANZ. In December 2008, ANZ announced increased employment targets for Indigenous Australians—up to 10 percent of entry-level roles (352 jobs) at ANZ are expected to be filled by Indigenous Australians by the end of 2011. For more information, read ANZ's Reconciliation Action Plan at www.anz.com/rap or visit the Indigenous Employment web site at www.anz.com/indigenousemployment. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 149 BEST OF THE REST ASIA PACIFIC BANKING EMPLOYERS Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Customized for: vinh (
[email protected]) AGRICULTURAL BANK OF CHINA LIMITED 69 Jianguomennei Ave. Doncheng District Beijing, 100005 China Phone: +86-10-6821-6807 Fax: +86-10-6829-7160 www.abchina.com THE STATS Employer Type: Government-owned Chairman: Xiang Junbo President: Zhang Yun Net Operating Profit: RMB 51.1 billion (FYE 12/08) No. of Employees: 441,883 No. of Offices: 24,069 LOCATIONS IN ASIA PACIFIC China • Hong Kong • Japan (representative office) • Singapore KEY COMPETITORS Bank of China China Construction Bank Industrial and Commercial Bank of China DEPARTMENTS Agro-Related Business • Corporate Banking • Foreign Exchange Services • Personal Banking • Treasury Operations • Wealth Management EMPLOYMENT CONTACT job.abchina.com THE SCOOP Farmers market The Agricultural Bank of China (ABC or AgBank) was established in 1979 as a resource to serve the farming population of China, which numbered nearly 800 million people at the time. Over the past 30 years, the rural bank has grown to become one of the "Big Four" Chinese banks along with the Bank of China, China Construction Bank, and the Industrial and Commercial Bank of China. With assets of approximately RMB 7 trillion worldwide and over 441,000 employees, it ranks second in size among the four giants. It also skyrocketed (from its previous rank at No. 223) to No. 155 on the 2009 Fortune Global 500. The firm holds around 18 percent of the bank branches in China, and thus ABC is the top bank for deposit assets. However, the company has come across harder times in the past few years, and has had to rely on sovereign wealth funds (SWFs) to bail it out of bad loans totaling nearly US$100 billion. Altogether, the Chinese government has spent US$500 billion recapitalizing banks. Federal banking regulators placed a loan cap on the bank in order to limit its descent into debt in 2008. The bank desperately needed a cash infusion to offset its loan baggage, and in August 2008, it got its wish as state-run Central Huijin Investment Company, a subsidiary of CIC, came through with a RMB 130 billion capital injection. Despite fears about its debt numbers, ABC remains profitable—though profits nearly halved in 2008, to RMB 51.1 billion from a 2007 net operating profit of RMB 96 billion. The bank is backed by rapidly increasing intermediary business, net interest, and fee and commission incomes. ABC is the last of the Big Four state-owned banks to become publicly traded, but it's now taken steps to join the rest as it underwent a transformation into a joint-stock company in January 2009. The public debut of its stock still hasn't happened, but could hit the markets sometime in late 2009 or in 2010. Customized for: vinh (
[email protected]) NPLs improving, but still a factor Rural finance is ABC's specialty, with over half of its branches in Western and Central China. The bank is known for its microfinance program, which started in the 1990s and allots loans of RMB 2,000 or less to small farmers to boost their business. However, in recent years, these loans have severely hurt the bank's bottom line, as they have little chance of being paid back by farmers in remote areas. ABC had to own up to its possession of approximately RMB 818 billion of non-performing loans (NPLs) in 2007—way beyond any other staterun bank in China. However, 2008 was a much better year for the firm in this regard, as its NPL ratio dropped to 4.32 percent. November 153 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Agricultural Bank of China Limited 2008 brought the most positive news as the Chinese Ministry of Finance approved ABC's removal of RMB 818.7 billion in bad assets from its books, with People's Bank of China refinancing RMB 150.6 billion to the bank and the Ministry of Finance converting the remaining RMB 665.1 billion to receivables. Part of the difficulty with NPLs lies in the sheer exposure ABC has to the rural market—about 40 percent of ABC branches, more than 40 percent of deposits and loans, and about 35 percent of profits are directly related to rural businesses. Approximately 42 percent of those local loans are connected in some way to agricultural development. Even if the loans were paid back in full, the interest collected would generally not be high enough to cover the cost of traveling to the small villages that the bank services. However, higher interest rates would seem to be a further detractor to sign up for the loans in the first place. The bank's agricultural loans were originally meant to stimulate the farming economy, not to boost the coffers of the bank, and to tighten this up, ABC will have to make some tough decisions on how to conduct these loans in the future. Pan Gongsheng, the vice president of restructuring for the bank, remarked in November 2008, "It may take us a dozen years [to clear the NPL backlog], but it is also probable that we will complete the task earlier [than expected]." IN THE NEWS July 2009: Big steel deal Chinese state news agency Xinhua reported in July 2009 that ABC had signed an agreement with Baosteel Group, China's largest steelmaker, to provide a RMB 50 billion credit line. May 2009: New rural finance unit After receiving approval from China's regulators in May 2009, ABC went through a bit of a restructuring as it grouped all of its rural businesses into one unit. The rural finance unit offers loans and development in areas smaller than counties, and is intended to boost the firm's farm lending on the road towards its initial public offering. March 2009: Big money for Baosteel, Shimao and CRM On the heels of the announcement of a massive two-year stimulus package of RMB 4 trillion, the Chinese government urged banks to increase lending. The effect was immediately felt, as new loans more than quadrupled in February 2009 for Chinese banks, compared to the previous February. For ABC, looking at a possible boost in lending by 30 percent for 2009, March started out with a massive loan extended to China Railway Materials Corporation (CRM) for RMB 10 billion. A state-owned enterprise, CRM primarily handles railway construction materials, as well as a number of other businesses ranging from logistics to real estate. Investments in infrastructure, particularly in railway development, were particularly outlined in the government's stimulus plan. Later in the month, an even bigger loan went out, under the assumption that the Chinese property market may have bottomed out and begun its rise. It was announced that ABC would be extending a massive line of credit—RMB 15 billion—to Shimao Property Holdings. The credit line is roughly 90 percent of Shimao's market value. Shimao, which had its debt rating cut to "junk" in 2008, is a massive real estate developer in Shanghai, Beijing and other major cities in China. The firm is owned by one of China's richest businessmen, Xu Rongmao. So what to do with all that money? The credit line will help Shimao resume a number of projects put on hold during the economic crisis, as well as fuel expansion plans. Xu remarked to reporters in Shanghai, "The market is warming up, which will speed up our cash returns. Acquisitions are likely in the second half of this year as well, as some of the smaller builders face problems. We will also consider buying land." Customized for: vinh (
[email protected]) March 2009: Helping out the small and medium ABC announced plans to prop up small- and medium-sized enterprises (SMEs) through the release of RMB 100 billion in funds over the year. In concordance with this plan, ABC announced that its small enterprise finance department would reshape to focus solely on SMEs. The department boasted about 40,000 customers at the end of 2008. 154 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Agricultural Bank of China Limited January 2009: Preparing a new face for the public Kickstarting the new year with a boom, the bank unveiled its new face—Agricultural Bank of China Limited. Transformed into a joint-stock company, an inauguration ceremony in Beijing marked ABC's receipt of its new corporate business license from the China Banking Regulatory Commission. The firm's web site announced a registered capital of RMB 260 billion. The official approval takes ABC one step closer to its IPO as it takes on a restructuring project to set it up for shareholding. Initially, the bank only has two shareholders—state-run SWF Central Huijin Investment Company and the Ministry of Finance—with each holding a 50 percent stake. October 2008: Rosy futures after a little cash Things may be looking up for the rural lender with a massive infusion of cash. In February 2008, ABC petitioned the government for funds to repay its loans—40 percent of which were state-directed. In August 2008, wishes came true as state-run sovereign wealth fund Central Huijin Investment Company (a subsidiary of China Investment Corporation) provided the bank with a cash injection of RMB 130 billion. ABC is now 50 percent owned by Central Huijin Investment Company, and 50 percent by China's Ministry of Finance. Post-capital injection, ABC put forth a restructuring plan to tighten up its balance sheets in preparation for its imminent IPO. The plan was ultimately approved by China's State Council in October 2008, and makes ABC the final of the Big Four state-run Chinese banks to undergo restructuring into a commercially oriented bank. For the IPO, according to Pan Gongsheng, ABC's vice president in charge of restructuring, a simultaneous listing on mainland China's A-share and Hong Kong's H-share exchanges "may be taken into consideration." Technically, ABC will be all squared up for an IPO in the second half of 2009. Eyes are still on an IPO late in the year, but no official date has been set and a "wait and see" approach is being taken, given the shaky global economic environment. April 2007: An inside job ABC received a great deal of unwanted attention in 2007 as it became the victim of the largest bank robbery in the history of China. Nearly RMB 51 million was stolen by bank insiders—vault managers who were supposed to be protecting the money that they stole. The perpetrators, Ren Xiaofeng and Ma Xiangjing, stole the money with the hopes of eventually returning it after they had made a profit by playing the Chinese lottery. However, the two managed to squander nearly the entirety of the money, only winning back about RMB 98,000. The money was discovered to be missing on April 16, 2007 and the unlucky bank robbers immediately fled for the coast with the remaining cash. But with reward money at stake and "Most Wanted" status from China's Public Security Ministry, they were apprehended within three days. In August 2007, the two men were sentenced to death, by a court in the city of Handan in the northern Chinese province of Hebei. Both men were executed in April 2008. March 2007: French allies Despite its NPL troubles, ABC has still had the cachet to attract power investors like French banking giant Credit Agricole. In late March 2007, Credit Agricole announced that it planned to expand its business into Asia by launching a fund management joint venture with ABC. The joint venture was divided equally into thirds, with the portions owned by ABC, Credit Agricole and the Aluminum Corporation of China (Chalco). Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 155 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Agricultural Bank of China Limited GETTING HIRED Banking down on the farm Despite its rather rural moniker, the Agricultural Bank of China is hardly a small fish in a big pond; in fact, quite the contrary. The firm—also known commonly as AgBank or ABC—is huge. As one of the Big Four banks in China, ABC boasts over 441,000 employees. However, getting in the door to actually become one of those employees may take a little finesse if you can't read Chinese. For recruitment information in Simplified Chinese, go to job.abchina.com. The firm's English site doesn't include a careers area for prospective workers. The bank's Hong Kong subsidiary, however, does have a designated "job opportunity" section at www.abchina.com.hk/main/job-eng.html with English listings of open positions. The Hong Kong office only employs about 60 people, but may be a good way to get your foot in the door. If you'd like to apply for the Hong Kong branch, send a resume and cover letter with salary expectations to
[email protected]. Alternately, you can send on your information to the bank's physical address: Head of Corporate Affairs, Agricultural Bank of China, H.K. Branch, 23/F, Tower 1, Admiralty Centre, 18 Harcourt Road, Hong Kong. Customized for: vinh (
[email protected]) 156 © 2009 Vault.com Inc. THE BANK OF EAST ASIA, LIMITED (BEA) Bank of East Asia Building 19/F, 10 Des Voeux Road Central, Hong Kong Phone: +852-3608-3608 Fax: +852-3608-6000 www.hkbea.com THE STATS Employer Type: Public Company Ticker Symbol: 0023 (HKSE) Chairman & CEO: David Li Kwok-po Revenue: HK$19.1 billion (FYE 12/08) Net Income: HK$39.0 million No. of Employees: 10,567 No. of Offices: 240 LOCATIONS IN ASIA PACIFIC China • Hong Kong • Macau • Malaysia • Singapore • Taiwan KEY COMPETITORS DEPARTMENTS Personal Banking • Corporate Banking • Wealth Management • Investment Banking • China Services • International Services Hang Seng Bank HSBC Holdings EMPLOYMENT CONTACT www.hkbea.com/hk/ci/career/index.htm THE SCOOP Old school in Hong Kong Founded in 1918, Bank of East Asia (BEA) is one of Hong Kong's longest-standing banks, and the fifth-largest bank by assets in the city. Though the firm operates internationally in Malaysia, Singapore, the U.K., Canada and the U.S., BEA is most prominent in Hong Kong and mainland China. In Hong Kong, BEA operates 130 locations, and in China, it operates over 60 locations—one of the largest networks of any foreign bank operating in the mainland. BEA's main focus is retail and commercial banking. Retail and wholesale banking services are handled via six main divisions: Personal Banking, Corporate Banking, Wealth Management, Investment Banking, China, and International. The firm also handles life insurance and general insurance through wholly owned subsidiaries BEA Life and Blue Cross (Asia-Pacific) Insurance, and professional services through Tricor Group. With total assets of HK$415.3 billion as of December 2008, BEA ranked No. 1,221 on the Forbes Global 2000 list for 2009. A homemade institution BEA quickly rose to prominence, as the powerful Li family, along with the Wong, Kan and Fung families, founded the bank in Hong Kong in 1918 and officially began operations the following year. The Li family—who initially made their fortune importing rice into Hong Kong from Vietnam in the late 1800s—took a proactive role in the expansion and development of the firm, becoming the chief shareholders within the first half of the 20th century. Moving into its iconic headquarters in 1935, BEA remained in the tradition of family-based banks providing financial services for the local community in colonial-era Hong Kong. The bank continues to be family-run, headed up by David Li Kwok-po, grandson of founder Li Koon-chun. With international ambitions, the bank expanded its services beyond the port of Hong Kong immediately after its establishment, setting up outposts in Shanghai and Saigon (now Ho Chi Minh City) in 1920. A second Vietnam branch was set up in Haiphong in 1930. As foreign banks were forced out of mainland China by the Chinese Communist Party during the Cultural Revolution, BEA was one of the only banks allowed to retain a presence on the mainland, albeit a limited one. As the firm expanded further in Southeast Asia to make connections with overseas Chinese communities, the bank's Singapore branch was opened in 1952. Customized for: vinh (
[email protected]) 157 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Bank of East Asia, Limited (BEA) Wave of the future BEA is responsible for several key innovations in Hong Kong, starting with its computerized banking system in 1969—making it the first local bank to implement such a system. Eventually, BEA also became a partner on the Joint Electronic Teller Services (Jetco) project, which launched the first ATMs in Hong Kong in the 1980s. BEA also ushered in the first Hong Kong dollar-based credit card in 1975, in partnership with Bank of America. As China’s economy opened up in the latter 20th century, BEA's credit card became the first foreign card to be accepted for use in mainland China. Continuing to serve as a bridge between mainland China and Hong Kong, BEA opened new offices all over the mainland throughout the 1980s and 1990s, and set up a number of joint ventures between its China operations and major financial companies. The firm also went through a process of diversification, entering the insurance business through a joint venture with U.S.-based Aetna in 1983, and establishing operations in securities trading and foreign financing. Also looking overseas, the firm expanded internationally, launching branches in cities with a sizable Chinese presence such as New York, Los Angeles, London and Toronto. In 1997 (the year which ushered in Hong Kong’s return to Chinese rule), BEA spread its wings further in Southeast Asia by opening branches in Malaysia and Taiwan. Also growing through acquisitions, BEA acquired United Chinese Bank (UCB), which was acquired in 1996 and fully merged with the bank in 2001. In 2000, BEA also secured a controlling interest in Hong Kong-based FPB Bank Holding Company (and subsidiary First Pacific Bank)—effectively launching the firm into the top five banks in Hong Kong. Since 2003, the firm has also formed a number of strategic partnerships with major banks throughout the region. These include Resona Bank, Bank of Yokohama and Sumitomo Mitsui Banking Corporation (all Japan); Industrial Bank of Taiwan and Mega International Commercial Bank (both Taiwan); Woori Bank (Korea); Metrobank (Philippines); and ICICI Bank (India). Awards and rankings • • • • • Forbes Global 2000—No. 1,221 (Forbes, 2009) SME's Best Partner Award (The Hong Kong Chamber of Small and Medium Business, 2008) Best Internet Banking Among Foreign Banks in China (China Internet Weekly, 2008) Retail Financial Service Brand Award: BEA China (China Business News, 2008) Best Foreign Retail Bank Award (21st Century Annual Finance Summit of Asia, 2008) IN THE NEWS June 2009: You scratch my back ... China's largest bank by assets, Industrial and Commercial Bank of China (ICBC) announced in June 2009 that it had entered an agreement to buy 70 percent of BEA's Canadian unit for HK$567 million. BEA has six branches in Toronto and Vancouver. In addition, 12 months after the initial transaction, BEA will have the option to sell the remaining 30 percent to ICBC. Meanwhile, ICBC agreed to sell BEA 75 percent of their investment banking joint venture, ICEA Finance Holdings, for HK$372.2 million. BEA previously owned 25 percent of the venture, and will take full control after the purchase. ICEA has offices in Hong Kong, with representative offices in Beijing, Shanghai and Guangzhou, and operates in areas including securities broking, project finance and underwriting. May 2009: Bring in the yuan Customized for: vinh (
[email protected]) As Chinese regulators continue to make a push for the mainland's currency on the world's stage, BEA and HSBC Holdings were the first two non-Chinese banks granted approval to sell yuan (renminbi or RMB) bonds in Hong Kong. Though RMB deposits have been available in Hong Kong since 2004, the new bonds are widely seen as a large step towards internationalizing the Chinese currency. Julia Leung, Hong Kong's undersecretary for financial services and the treasury, remarked, "Trading and trade finance is the bread and butter business of banks. The bigger objective is to equip the banking system with the necessary expertise to conduct renminbi trade." March 2009: Picking up AIG's wealth management in Taiwan As struggling U.S.-based financial services provider American International Group (AIG) began unloading assets around the globe, BEA acquired AIG's wealth management division in Taiwan, pending regulatory approval by Taiwan's Investment Commission. As a subsidiary of 158 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Bank of East Asia, Limited (BEA) AIG Private Bank, AIG Wealth Management Services was launched in September 2007, geared towards serving high-net worth clientele in Taiwan. Terms of the deal were kept private, but the transaction marked the first sale of AIG’s Taiwanese assets. Pending approval, the acquisition will expand BEA’s services in the region, which currently includes two banking branches in Taipei and Kaohsiung. March 2009: Ushering in the next generation of Li A massive company reshuffling in March 2009 led two sons of BEA's chairman & CEO, David Li, up the corporate ladder. Adrian David Li Man-kiu, the head of BEA's Corporate Banking division, and Brian David Li Man-bun, the head of BEA's Wealth Management division, were elevated to dual posts as Deputy Chief Executive, one focused on Hong Kong and one focused on Mainland China. Effective April 1, Adrian Li serves as Deputy Chief Executive for Hong Kong Business, while Brian Li takes on the role of Deputy Chief Executive for China Business. All eyes are on the two sons, as David Li turns 70 in 2009, and only has three years left in his current term as chairman. Other BEA executives Tong Hon-shing and Samson Li Kai-cheong are also being promoted to positions as deputy chief executive—Tong will also serve as chief operating officer, while Samson Li will serve as chief investment officer. The four (all of whom are general managers) will fill the void created by Joseph Pang Yuk-wing, who officially retired as BEA's overall deputy chief executive in April 2009. Asked about the reason for all the changes, Pang remarked, "Because I am retiring and Chan Kay-cheung [then-deputy chief executive] has been retired for a long time." Yet another major change came with the resignation of the firm's chief financial officer, Daniel Wan, who was replaced by BEA's chief internal auditor, William Cheng. In addition, another of BEA's general managers and the head of its China division, Raymond Yu Hok-keung, resigned for health reasons—only three of the firm's seven general managers now remain in their posts. February 2009: A bleak year for profits BEA released its full-year 2008 financial results, and things weren't too pretty in light of the global economic crisis. Though the bank was still profitable, most notably, BEA faced an astounding 99 percent decline in net profit to HK$39 million, down from HK$4.14 billion in 2007. In addition, its cash reserves fell by HK$9.61 billion for the year. However, in more positive news, BEA's net interest income in 2008 went up by 13.7 percent compared to the previous year, increasing to HK$6.79 billion. January 2009: New digs With Shanghai’s office property prices taking a hit due to the global financial crisis, BEA purchased a 10-story office building in the central business district of Lujiazui. The office building is a structural part of Gaobao Financial Tower, which will be renamed BEA Financial Tower when the deal goes through. Terms of the deal were not disclosed, but analysts have estimated the building’s worth to be about RMB 1 billion. No word on a move just yet, but BEA China is headquartered in the nearby Bank of Shanghai Tower. September 2008: Running for the hills In the wake of the global financial meltdown, BEA fell victim to a viral spread of rumors in Hong Kong that the bank was facing financial difficulties. Less than 10 days after the Lehman Brothers bankruptcy filing, a text message was allegedly circulated that BEA was on the brink of collapse. Swarms of anxious depositors in Hong Kong and Singapore crowded entire blocks on September 24, lining up alongside BEA branches across town to withdraw their entire balances. Some even spent the night outside the bank to ensure a prime spot in line the following day. BEA dispelled the rumors, assuring the public that they were in sound condition, and kept its doors open an extra 30 minutes to accommodate anyone who wished to withdraw. The Hong Kong Monetary Authority's chief executive, Joseph Yam, even got involved, calling for calm and assuring consumers that the bank had enough capital. Hong Kong tycoon Li Ka-shing (of massive conglomerate Hutchison Whampoa) bought BEA shares, and the panic subsequently quieted. After all was said and done, customers withdrew about HK$2 billion during the run. Customized for: vinh (
[email protected]) May 2008: Debit in the mainland BEA became the first foreign bank to issue RMB-denominated debit cards in mainland China, taking advantage of the recent removal of a key restriction on foreign banks' retail business in the country. Through subsidiary BEA China, the firm will issue debit cards jointly with China UnionPay, which is the country’s sole bankcard network operator. The agreement opens a wider distribution channel for BEA, with cardholders being able to access accounts and banking services wherever a China UnionPay outlet or ATM is present. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 159 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Bank of East Asia, Limited (BEA) January 2008: Penalized for insider trading The U.S. Securities and Exchange Commission reached a settlement at the end of January 2008 in which BEA Chairman & CEO David Li agreed to pay a US$8.1 million civil penalty. The case stemmed from the May 2007 buyout of Dow Jones & Company by global media giant News Corporation. A husband-wife couple, Wong Kan-King and Charlotte Leung, were alleged to have engaged in insider trading activities during April 2007 in the run-up to the unannounced buyout. Eventually, it came to light in the accusation that the tip on the Dow Jones acquisition had initially come from Li. Li, who was a board member at Dow Jones at the time, neither admitted nor denied the accusations. After the settlement was reached, Li faced widespread pressure to step down from his appointed position in the Executive Council of Hong Kong, which he did, though he retained his elected seat in Hong Kong's Legislative Council. GETTING HIRED Become a banker of East Asia BEA employs over 10,000 people and operates more than 240 branches and offices worldwide, a large portion of which are located in Hong Kong and mainland China. The company operates one of the largest bank networks in Hong Kong, with 91 branches and 46 SupremeGold Centres in the city as of June 2008. BEA also has substantial operations in mainland China, where it operates 60 branches in cities ranging from Beijing and Shanghai to Chengdu and Tianjin, as well as two branches in Taiwan. Meanwhile, the bank also operates 12 branches in the U.S., in addition to branches in Malaysia, Singapore, the U.K. and Canada. BEA's careers site at www.hkbea.com/hk/ci/career/index.htm features a running list of current vacancies with numerous human resources email addresses to contact for each position. At the top of the careers site, the company also provides a link to a general downloadable application form in PDF format. Jobs can be applied to either by email or regular mail, and the bank asks that all applications include a cover letter quoting the position reference number, a resume, current and expected salary, as well as a contact phone number. Applications can be sent by mail to Recruitment & Personnel Services Department, The Bank of East Asia, 31/F, BEA Tower, Millennium City 5, 418 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong—or by fax to +852-3608-6273. Customized for: vinh (
[email protected]) 160 © 2009 Vault.com Inc. BANK OF THAILAND 273 Samsen Rd. Bangkhunprom Bangkok, 10200 Thailand Phone: +66-2283-5353 Fax: +66-2280-0449 www.bot.or.th THE STATS Employer Type: Government-owned Company Governor: Tarisa Watanagase EMPLOYMENT CONTACT "Recruitment, Internship & Scholarship" link at www.bot.or.th/English (Thai-language only) LOCATION IN ASIA PACIFIC Thailand DEPARTMENTS Monetary Policy • Financial Markets Operations • Financial Institutions Policy • Financial Institutions Supervision • FIDF Management • Banknote Management • Risk Management and Operations THE SCOOP At Thailand's center As the central bank of Thailand’s financial and monetary sectors, Bank of Thailand (BOT) oversees banking and regulations for government and financial institutions throughout the country. BOT also engages in ongoing analysis and scrutiny of fiscal, monetary and spending matters related to Thailand’s growth. Its mission: "to provide a stable financial environment for sustainable economic growth in order to achieve continuous improvement in the standard of living of the people of Thailand." Other departmental responsibilities include managing government assets and reserves, regulating payment systems, printing and issuing of Thai banknotes as well as the handling of foreign exchange rate matters. BOT's department in charge of financial markets operations takes up the task of keeping domestic monetary policy in check, but also serves as the gatekeeper for the national Exchange Control Act and Measure to prevent speculation on the Thai baht. Siamese connection Ideas for a central bank began forming as Thailand (then known as Siam) began opening relations and trade with foreign nations during the reign of King Rama IV. Though western powers pushed for a central medium for trade and economy through the reign of Kings Rama V and VI, it wasn't until Siam's Revolution of 1932 that constitutional rule was established and the idea resurfaced. However, given a lack of expertise in banking issues, many felt that the time was not right to establish a central bank. In 1938, following Pridi Banomyong's appointment as Minister of Finance, a central banking act was drafted, paving the way for BOT. The Thai National Banking Bureau began operations in 1940, with the assistance of government and foreign advisers. However, as World War II came into full swing and Japanese troops landed on Thai shores, a push came to create a central bank amid the chaos. The Thai National Banking Bureau was ultimately transformed through a bill (the Bank of Thailand Act) which passed in April 1942, and the Bank of Thailand opened its doors in December 1942. The central bank relocated to Bangkhunprom Palace in 1945, where it remained until 2007, when headquarters was moved into a new building between Bangkuhprom and Devavsem Palaces. Customized for: vinh (
[email protected]) 161 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Bank of East Asia, Limited (BEA) Paid in full In developing a secure model for monitoring the transaction of payments, Bank of Thailand implemented a three-pronged electronic system in the mid-1990s to provide infrastructural organization in this area. The first to be introduced was BAHTNET, which could efficiently monitor transfers it processed on a real-time basis, from the order being placed to an aggregate amount being settled. BAHTNET gave commercial banks greater convenience in viewing its current account standings with the central bank, as each amount would show up as it was being transacted. Secondly, the Electronic Cheque Clearing System component was put in place to speed up the clearing of checks within one day of physical input. Finally, the Automated Clearing House System was devised to follow movements of funds in a retail capacity, and could better keep track of payments made on a regular basis or of a high amount. IN THE NEWS May 2009: Thai economy on the mend? Breaking a trend of interest rate cuts, the Bank of Thailand kept things steady at 1.25 percent in May 2009, bucking the forecasts of many economists surveyed by Reuters. Though BOT's deputy governor, Atchana Waiquamdee, said that the central bank could reduce rates further if necessary, many felt it showed confidence in the Thai economy despite contractions and murmurs of recession. According to the BOT's monetary policy committee, economic indicators started to show a more "moderate contraction, while inflation continued to be subdued. The impetus from fiscal measures became more evident. Nevertheless, downside risks to economic recovery remained." March 2009: A committee of interest Faced with the largest shrinking of the Thai economy in a decade, the government called upon Chatu Mongol Sonakul, who served as BOT's governor from 1998 to 2001, to lead a new arm of the central bank responsible for the determination of interest rates. An amendment made to the Bank of Thailand Act decreed that this new board is chaired by someone not presently with the central bank, unlike past policy committees run by the existing governor. BOT has cut interest rates three times in three months since December 2008. The aggressive response is also tied to a problem facing the central bank earlier in 2008, when loans went up at a higher rate than savings. Thailand’s administration, headed by Abhisit Vejjajiva, advocated the central bank’s decision to lower rates in combination with fiscal boosts to salvage the economy’s contractions. Former Prime Minister Thaksin Shinawatra, who originally ousted Chatu from his central bank post, had pushed for higher interest rates as his cabinet dealt with inflation and the need for aggressive growth. In contrast, prices, along with exports and national GDP, have been collectively declining. January 2009: Invasion of the fakes Bank of Thailand reported an increase in the amount of counterfeit Thai Baht banknotes circulating in the fiscal year ended November 2008, with 18,895 fraudulent notes intercepted as opposed to 10,819 in the previous year. Nopporn Pramojaney, the officer in charge of bill printing, has announced that the New Year's holiday season, coupled with the worsening of the economy, has led to an increase in fraud activity relating to currency. In particular, bills of higher denomination will require closer attention, as most of the fakes confiscated were 1,000-baht notes. November 2008: No more quick bucks In the wake of the global financial crisis, small- and medium-sized enterprises (SMEs) in Thailand may face some troubles in acquiring quick loans from the central bank. Under the revised Bank of Thailand Act, liquidity loans handed out at lower costs can no longer be made by the central bank; startups and SMEs will have to turn to commercial banks for financial assistance. The problem for SMEs is heightened by the fact that commercial banks have put screenings in place to approve loans that have performed, and to turn down those that have not. BOT's data for September 2008 showed that the loan rate increased by about 10 percent, while the savings rate went up by a marginally smaller increment of 1.4 percent. Customized for: vinh (
[email protected]) 162 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Bank of East Asia, Limited (BEA) August 2008: Mobile banks In capitalizing on the recent growth of 3G technology, BOT announced in August 2008 that it will enable transactions of financial services through mobile phones. Bandith Tungprasert, BOT's deputy governor for financial institution stability, notes that in streamlining commercial banking under this technological medium, money laundering can be prevented more easily, as customers’ information is readily accessible to the BOT in this mode. A barrier to this platform would be Thailand’s instability of network and security coverage on its public users’ end. To improve upon this, the bank would seek the assistance of the National Telecommunications Commission of Thailand (NTC) in developing a stronger security foundation for mobile phone transactions. GETTING HIRED Earn some baht working for BOT General information about BOT's recruitment programs is available on the bank's careers site via the "Recruitment, Internship & Scholarship" link from www.bot.or.th/English. However, you'd better know how to read Thai—as of 2009, there was no English recruitment information available. Interested candidates might want to try calling BOT's human resources department at +66-2-283-6911. Otherwise, those looking for opportunities can send an email to Pitchayaporn Yokchadatarn (a member of the HR placement team) at
[email protected] or Piyawan Siwakier (a member of the strategic career planning team) at
[email protected]. Alternately, students interested in scholarships and other opportunities can try emailing Vimarn Sukhyanga (a member of the scholarship team) at
[email protected]. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 163 BENDIGO AND ADELAIDE BANK The Bendigo Centre Bendigo, VIC 3550 Australia Phone: +61-3-5485-7911 Fax: +61-3-5485-7000 www.bendigobank.com.au www.adelaidebank.com.au THE STATS Employer Type: Public Company Ticker Symbol: BEN (ASX) CEO: Mike Hirst Chairman: Robert Johanson Revenue: AU$2.91 billion (FYE 6/08) Net Income: AU$170.50 million No. of Employees: 5,000 No. of Offices: 880 LOCATIONS IN ASIA PACIFIC Australia KEY COMPETITORS DEPARTMENTS Corporate Support Joint Ventures and Alliances Retail Banking Wealth Management Wholesale Banking Australia and New Zealand Banking Group Commonwealth Bank of Australia National Australia Bank Westpac Banking Corporation EMPLOYMENT CONTACT www.bendigobank.com.au/about_us/careers/careers_and_va cancies.asp jobs.bendigobank.com.au THE SCOOP Emerged from the merge A relatively new name for two banks with deep roots, Bendigo and Adelaide Bank was established as a result of the merger between Bendigo Bank and South Australia's Adelaide Bank in November 2007. (The merger came just months after Bendigo Bank rejected two takeover offers by Bank of Queensland in April and June 2007.) The combined bank, officially named in March 2008, now serves as Australia's sixth-largest lender by market value, with Adelaide Bank serving as a wholly owned subsidiary of the entity. The group operates in four major divisions: retail banking, wholesale banking, wealth solutions, corporate support, and joint ventures and alliances. Bendigo and Adelaide Bank offers a range of services including business banking, fund management, commercial finance, trustee services and financial advisory services. The firm's retail arm, Bendigo Bank, includes nearly 900 outlets across all of Australia's states, providing community banking and wealth management services for households and small- to medium-sized enterprises (SMEs). Adelaide Bank focuses on consumer loans and business banking services for SMEs. Meanwhile, the group operates through a number of other subsidiaries, including mortgage firm National Mortgage Market Corporation (acquired by the group in 1995), debenture company Victorian Securities (acquired in 1999), funding house Oxford Funding (acquired in 2005), trustee company Sandhurst Trustees, and Bendigo Financial Planning. Bendigo and Adelaide Bank further offers mortgages through its wholesale banking arm, Adelaide Wholesale Mortgages. General insurance (including home, car, travel and landlord's) is handled through subsidiary Bendigo Bank Insurance, while health insurance is through Bendigo Health Cover, a venture with Australian Unity Health. The firm is also involved in a number of joint ventures, including Rural Bank Limited, Tasmanian Banking Services, Community Sector Banking and Homesafe Solutions, allowing the group to provide Customized for: vinh (
[email protected]) 164 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bendigo and Adelaide Bank Limited specialized services to a wide range of customers. Overall, the group serves over 1.3 million retail customers in Australia, and boasts over AU$48 billion in assets. Banking on communities Founded during Australia's gold rush, Bendigo Bank originated as a building society based in the Bendigo goldfield in 1858. The settlement consisted of thousands of makeshift tents set up along the gullies. In an effort to add stability and structure to the community, a group of Bendigo's prominent citizens bonded together to form Bendigo Permanent Land and Building Society, providing financing for miners who sought to own their own homes. The building society continued to operate in this capacity for over a century, only first expanding from its single Bendigo branch in the 1970s. By then, the society had become a part of the community, boasting that its staff knew all customers by name. It even allowed mortgage borrowers to stay in their homes, rather than foreclosing on them, during the Great Depression. Going through rapid regional expansion in Victoria in the 1970s, the society grew quickly, acquiring a number of building societies and finance firms through the 1980s and 1990s. Services expanded as well—in 1982, Bendigo became the first financial firm to introduce Visa and the Visa debit card to Australia. All this expansion ultimately resulted in the society's conversion to a bank in 1995. Meanwhile, Adelaide Bank was formally established in 1994 from the Co-Operative Building Society of South Australia. Primarily focused on business in South Australia prior to its own bank conversion, Adelaide Bank now handles loans all over Australia, with more than 75 percent of its loans now outside of the state. Communities throughout Australia began to face disenfranchisement under numerous branch closures during the 1990s. In an effort to return branch banking to these communities, Bendigo Bank pioneered the "Community Bank" program. Under the program, launched in 1998, local communities would be allowed to band together to purchase and operate a Bendigo Bank branch, from which the firm would share revenue and provide banking support. Over 220 of these Community Bank branches are now in operation throughout Australia. Joint ventures everywhere, for everyone In 2000, Bendigo Bank began a number of notable joint ventures that would further establish their presence within local communities and niche markets. Formed through a joint venture with Futuris Corporation, Rural Bank Limited (formerly Elders Rural Bank) provides agribusiness products and specialist banking services to the Australian farming sector. Rural Bank now has over 240 outlets nationwide, offering investment and financial products to Australia's rural developers, and possesses assets of over AU$4.3 billion. Later in 2000, Bendigo Bank formed a 50-50 joint venture with Tasmania Perpetual Trustees to serve the Tasmanian banking sector through Tasmanian Banking Services (which was subsequently acquired in full by Bendigo and Adelaide Bank in August 2009). Non-profits came next, as Bendigo Bank established Community Sector Banking (CSB) in 2002 under a joint venture with 20 not-for-profit organizations. A virtual bank that serves as Australia's only specialist banking service for the non-profit sector, CSB reinvests its profits back into the community. A few years down the road, the bank reached out to senior citizens. In a joint venture with Athy, Bendigo Bank established Homesafe Solutions in 2005. The firm specializes in assisting senior homeowners who wish to access the equity in their homes without going into debt. Homesafe Solutions offers cash in exchange for a percentage of the home's future sale proceeds. This allows seniors to remain in their homes without the burden of debt or eviction. IN THE NEWS Customized for: vinh (
[email protected]) July 2009: Unpaid leave to avoid cuts In mid-July 2009, Bendigo and Adelaide Bank sent out an e-mail to over 5,000 staffers with a painful question: Will you take 10 days of unpaid leave? Trying to avoid job cuts (though they've not been ruled out entirely), the voluntary proposal would be equivalent to a 4 percent pay cut. Employees have until the end of July to make their decisions. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 165 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bendigo and Adelaide Bank Limited July 2009: Tasmania acquired Bendigo and Adelaide Bank announced in July 2009 that it would be acquiring the remaining 50 percent of Tasmanian Banking Services (TBS), its joint venture with Tasmania Perpetual Trustees, in the following month. With nine TBS and six Community Bank branches in Tasmania, the branches will be gradually incorporated into the Bendigo and Adelaide fold. May 2009: Goodbye Elders, hello Rural Increasing its stake in Elders Rural Bank from 50 to 60 percent in May 2009, Bendigo and Adelaide Bank announced a new name for the venture—Rural Bank Limited. Spending approximately AU$34 million on the upped stake, the firm aims to provide an alternative banking option in Australia's rural areas through Rural Bank. Outgoing Bendigo and Adelaide Bank managing director Rob Hunt explained, "The name change will allow Rural Bank to explore additional distribution arrangements throughout rural Australia, adding substantial growth prospects to a business which is already performing very strongly." March 2009: Blocked by the APRA At the end of March 2009, Australia's banking regulator blocked a move by Bendigo and Adelaide Bank to buy Asset Backed Unit Trust (AYT), a trust created through the bank's subsidiary, Adelaide Managed Funds. The bank also served as a lender to the trust. In February 2009, Bendigo and Adelaide Bank had sought to buy AYT at a figure well above the trust's trading price, in a complicated deal that would have eventually seen the trust delisted and given an AU$90 million capital boost to the bank. However, the Australian Prudential Regulation Authority (APRA) blocked the proposal. Though the APRA didn't give an official reason, analysts claimed that the buy amounted to the bank providing credit support to an off-balance sheet vehicle, which is believed to be a breach of local prudential rules. Bendigo and Adelaide bank spokesman Will Rayner remarked, "They thought that with the premium being offered, it wasn't being conducted on market terms." March 2009: First new CEO in 20 years Former Colonial State Bank executive Mike Hirst was announced in March 2009 as Bendigo and Adelaide Bank's new CEO and Managing Director, succeeding Rob Hunt, who is retiring. The change is particularly notable as it's the first new head for the bank in more than two decades—Hunt had been with the bank since 1973, and had served as Bendigo Bank's CEO since 1988. Hirst, who took the reins in July 2009, was said to have beat out a host of competitors, including former Adelaide Bank head Jamie McPhee, who was named in an August 2007 press release during the merger process as in "an excellent position" to succeed Hunt. January 2009: Gaining leverage Bendigo and Adelaide Bank's margin lending unit Leveraged Equities acquired the bulk of Macquarie Bank's margin lending portfolio. The acquisition of the loan portfolio, worth AU$1.5 billion, was purchased for a premium of AU$52 million by Leveraged Equities and helps secure its place among the top three largest providers of margin lending products in Australia. Bendigo and Adelaide Bank's CEO and managing director Rob Hunt remarked, "We see Leveraged Equities ... as a vital and strategic long-term part of the Bendigo and Adelaide Bank group." Customized for: vinh (
[email protected]) 166 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Bendigo and Adelaide Bank Limited GETTING HIRED Built on gold Bendigo and Adelaide Bank has grown far from its humble origins as a gold miners' building society, and the recent merger has seen the scale of its operations dramatically increase. However, still holding strong to its community roots, the firm states, "We believe that 'good business' and 'good community' are not mutually exclusive." There's not a centralized group recruitment site, but Bendigo Bank's has a careers site which lists current job openings within the company— jobs.bendigobank.com.au. Available positions can be searched by category and location. Upon finding a position of interest, candidates are asked to upload their relevant employment details and a resume. Adelaide Bank's careers page redirects to Bendigo's site, but there is a general email address to send along your resume and cover letter:
[email protected]. For further information about working for Bendigo and Adelaide Bank, the "Careers and Vacancies" link from Bendigo Bank's main site has details on the firm's development programs, diversity and more, as well as testimonials from a number of employees. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 167 BOC INTERNATIONAL HOLDINGS LIMITED 26/F, Bank of China Tower 1 Garden Road Central, Hong Kong Phone: +852-2230-8888 Fax: +852-2147-9065 www.bocigroup.com THE STATS Employer Type: Subsidiary of Bank of China CEO: Wang Yan No. of Employees: 200+ No. of Offices: 10 LOCATIONS IN ASIA PACIFIC Beijing (representative office) Hong Kong Shanghai Singapore KEY COMPETITORS Sun Hung Kai Financial Taifook Securities Group EMPLOYMENT CONTACT www.bocigroup.com/pub/en/career DEPARTMENTS Asset Management Fixed Income Investment Banking Investment Research M&A Securities Sales and Trading THE SCOOP Established investment banking BOC International Holdings Limited (known as both BOCI and BOC International) is a wholly-owned subsidiary of Bank of China, one of the Big Four state-owned commercial banks in China. The BOCI name is well known, as the bank is one of the first fully dedicated investment banks in Greater China, and has been in business for 30 years. With roots in Hong Kong, the firm established a subsidiary in Shanghai in 2002, and also has subsidiaries in New York, London and Singapore. BOCI's business services include a variety of traditional investment banking operations, including securities underwriting, advisory, merger and acquisition (M&A) services, asset management and more. For individuals, BOCI offers equity and fixed income products, private wealth management services, and fund management. For institutions, the firm focuses on corporate finance (listing, bond issuance, leveraged and structured finance products, and private equity), securities (equity, fixed income products and derivatives) and M&A advisory and corporate restructuring. Asset management services are primarily handled through BOCI-Prudential Asset Management, a joint venture launched in 2001 with U.K.-based financial services firm Prudential. Customized for: vinh (
[email protected]) To Hong Kong and beyond BOCI's roots date back to Hong Kong circa 1979, when its predecessor, China Development Finance Company (HK), opened for business. The firm got its start offering investment banking services to Hong Kong clients. Shortly after, in 1983, one of Bank of China's divisions, BOC Group Securities, began operating in the Hong Kong stocks and futures trading businesses. Both firms were under the ownership of Bank of 168 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition BOC International Holdings Limited China when a company-wide restructuring was conducted in 1998 to incorporate the two banks as one united investment bank. The result: BOC International. A few years after the firms were united as BOCI, the firm expanded its presence beyond Hong Kong's borders into Shanghai, and now represents both Hong Kong and mainland China. Established in 2002, BOCI (China) came about as a result of the cooperation between three mainland conglomerates—China National Petroleum Corporation (CNPC), China General Technology Holding (Genertec), and Yuxi Hongta Tobacco—as well as two state-run investment firms, State Development & Investment Corporation and Shanghai State-owned Assets Operations. BOCI (China) became the first joint venture securities firm in China to receive a license to operate in Chinese yuan-denominated securities businesses. Kind of a big deal Over the years, BOCI has proved itself as not just an important investment banking presence in Hong Kong and mainland China, but also in its involvement in major deals which have made headlines around the world. BOCI acted as underwriter on the listing of the first H-shares (shares of mainland Chinese companies listed on the Hong Kong stock exchange) for Chinese brewing giant Tsingtao Brewery in 2001. The company was also involved in the IPOs of a number of government-owned companies such as China Mobile, PetroChina and China Unicom. In 2000, BOCI aided in the financing of a US$12 billion syndicated loan made to Hong Kong telecommunications giant Pacific Century Cyberworks (PCCW) in its acquisition of rival Cable & Wireless HKT. At the time, the deal marked one of the biggest corporate takeovers in the history of Asia. Acting as financial advisor, BOCI's involvement in the deal won the company kudos in the press, with FinanceAsia naming it Best Loan of the Year, Best M&A Deal and Best Syndicated Loan. Around the turn of the millennium, BOCI was involved in a number of other big deals, including the debut of China National Offshore Oil Corporation (CNOOC) on the Hong Kong Stock Exchange in 2001, which was one of BOCI's largest deals to date. The bank acted as joint global coordinator, bookrunner, sponsor and lead underwriter on the public offering. Other major deal involvement included the privatization of the Hong Kong Mass Transit Railways Corporation, which sold its share capital through a public offering in 2000, and key technology offerings including the debuts of Growth Enterprise Market, Phoenix Satellite Television, Shanghai Fudan Microelectronics and Tong Ren Tang Technologies. Awards and rankings • • • • • • • Excellent Brand of Securities Services: Hong Kong Leaders' Choice (Metro Finance, 2009) Most Popular Broker of Hong Kong and China (Global Commercial Daily Alliance, 2009) Prime Award for Excellence in Financial Services 2008 (Prime Magazine, 2009) Capital Outstanding Securities Dealer (Capital Magazine, 2009) Best Hong Kong Broker 2008 (Hong Kong Commercial Daily, 2009) Top 10 Most Award-Winning Brokers of 2007—No. 5 (Financial Times/StarMine, 2008) Outstanding Bond Issuer/Innovative Fund Products/Underwriter Service Award (Capital Magazine, 2008) IN THE NEWS July 2009: Moving quickly in India Through a tie-up with Indian IT giant Religare Technova Global Solutions (RTGS), BOCI is working its way into India through the RTGS trade processing and settlement platform. Partnering in July 2009, BOCI and RTGS will collaborate on the flagship NOVA platform, which provides a full suite of middle- and back-office functions (including areas such as retail and institutional broking, wealth management, treasury services, and stock borrowing and lending) as BOCI aims to expand rapidly in the region. Eric Li, BOCI's chief operating officer, explained, "This strategic partnership with RTGS will bring BOCI to the next level of competitiveness, not only through the use of NOVA’s efficient trade processing and settlement model, but [also] the business agility that will be incorporated into BOCI." Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 169 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition BOC International Holdings Limited July 2009: New funds for infrastructure, media? Reuters reported in July 2009 that Singapore state investment firm Temasek was in talks with BOC International to launch an investment fund for infrastructure projects across China. The fund, estimated by sources at anywhere between US$1 billion to US$2 billion, would likely be set up through a joint venture, according to Reuters. Sources also informed Reuters in July 2009 that BOC International has been meeting with other investors, including a number of major staterun media outlets, to set up a private equity fund focused on the Chinese media industry. April 2009: Drink it in Though 2009 has been a slow year for IPOs, due primarily to the global financial crisis, Hong Kong had a couple of IPOs in the first quarter. The second major IPO in 2009 came from Silver Base Group, a China-based liquor distributor who deals largely in baijiu (a strong Chinese liquor) through its brand Wuliangye—which accounts for 95 percent of its revenue. BOCI and Swiss financial giant UBS are serving as joint bookrunners on the public offering. Despite the financial crisis, one report states that "the Chinese liquor industry is on a long-term uptrend, and producers are enjoying a boom." Trading began in April 2009 for Silver Base, which raised US$133 million through its IPO—significantly less than the US$300 million it had been targeting in 2008 before the financial crisis hit global markets. September 2008: Algorithmically yours Two new algorithmic trading platforms are on their way in at BOCI. The first, provided by Orc Software in August 2008, is a server-based solution that will enable BOCI to expand activity in warrants market-making and index options trading. The following month, BOCI decided to add another algorithmic trading platform, provided by Progress Software's Apama division. The Apama platform allows BOCI greater access to online trading in equities, futures, futures indices, warrants and bonds. Alex Liu, BOCI's head of application development and support, remarked, "BOCI is committed to seek out the best trading technologies to support our rapidly expanding business." May 2008: Get W.I.S.E. As Taiwan's relations with mainland China warmed somewhat in 2008, joint venture BOCI-Prudential announced plans at the end of May 2008 to launch a Greater China fund including Taiwan, Hong Kong and Chinese stocks. The announcement of the fund, which is planned to be launched as a mutual fund or exchange-trade fund (ETF), followed the firm's launch earlier in May 2008 of an ETF which covers about 76 percent of the market value of Hong Kong stocks. Called the W.I.S.E.-CSI HK 100 Tracker, the fund tracks the performance of the CSI Hong Kong 100 Index, a diversified index that includes blue chip, H-share and red chip stocks on the Hong Kong exchange. December 2007: Running the books BOCI served as the sole global coordinator, bookrunner, sponsor and lead manager for Xingye Copper International Group, which was listed on the Hong Kong Stock Exchange in late December 2007. Xingye Copper, which is one of the top high-precision copper producers in mainland China, closed on its first day of trading at an increase—about 94 percent higher than its initial offer price. Even bigger than the Xingye Copper listing was the listing of China Railway Group on the Hong Kong exchange a few weeks earlier in December 2007, in which BOCI was heavily involved. China Railway, which ranked No. 341 on the Fortune Global 500 in 2008, was the first IPO in mainland China to have an A-share listing followed by an H-share listing on the Hong Kong exchange. BOCI served as the joint global coordinator, joint bookrunner, joint lead manager and joint sponsor for the China Railway listing. Customized for: vinh (
[email protected]) 170 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition BOC International Holdings Limited GETTING HIRED Join the group Check out BOCI's careers site by clicking on the "Career" link from the English-language page at www.bocigroup.com. With areas including investment banking, financial products, equity sales and research, asset management and private equity, there are a number of options at BOCI. Careers are separated into categories ranging from experienced hires and entry-level candidates to management trainees and internships. If you see a position that matches your qualifications, or if you want to be contacted about future opportunities, send your resume along with "current and expected salaries" to
[email protected]. You can also send your application materials by mail to the Human Resources Division, BOC International Holdings Limited, 26/F, Bank of China Tower, 1 Garden Road, Hong Kong. Applications for internships are generally accepted from January to the end of March each year. For the firm's management trainee program in Hong Kong, application details are generally listed through Hong Kong's JIJIS system or on the careers sites at Hong Kong universities. A Bachelor's degree is required for analyst positions, while a Master's degree is required for associate positions—any discipline is okay, but a business background is preferred. Language skills are also important, including spoken and written Chinese (including Mandarin). More details are available on both of these programs via BOCI's careers site. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 171 CHINA CONSTRUCTION BANK 25 Finance St. Xicheng District Beijing, 100032 China Phone: +86-10-6759-7114 Fax: +86-10-6360-3194 www.ccb.cn/portal/en/home/index.html THE STATS Employer Type: Public Company Ticker Symbol: 0939 (HKSE); 601939 (SSE) Chairman: Shuqing Guo President: Zhang Jianguo Net Operating Profit: RMB 92.6 billion (FYE 12/08) Net Income: RMB 119.7 billion No. of Employees: 298,581 No. of Offices: 13,374 LOCATIONS IN ASIA PACIFIC China Hong Kong Japan Korea Macau Singapore KEY COMPETITORS Agricultural Bank of China Bank of China Bank of Communications Industrial and Commercial Bank of China DEPARTMENTS Corporate Banking Personal Banking Treasury Operations EMPLOYMENT CONTACT www.ccb.cn/portal/en/home/index.html THE SCOOP Building on Chinese finance The origins of China Construction Bank (CCB) stretch back to 1954, when it was established as People's Construction Bank of China by Mao Zedong's government, primarily as a source for disbursing government funds to build up the infrastructure of the nation. As the political landscape in China developed, the state-owned bank gradually took on the roles of a commercial bank. In 1996, the People's Construction Bank of China officially adopted the name China Construction Bank. Growing quickly, the bank leaped to No. 125 (from No. 171) on the 2009 Fortune Global 500—the sixth-largest Chinese company on the list. In 2008, CCB was named the Best Retail Bank in China by Capital Magazine. CCB made its debut in the market when it launched its IPO on the Hong Kong Stock Exchange in November 2005. The share price rose approximately 50 percent in the first year of trading, setting the stage for an even bigger offering on the Chinese mainland in September 2007. CCB launched the second-largest IPO in the history of China, raising approximately US$7.7 billion, when the bank entered into trading on the Shanghai Stock Exchange. CCB's IPO in Shanghai more than proved it was one of the leading power players in the flourishing Chinese economy by raising RMB 58 billion. The orders for the listing showed that it was an impressive 40 times oversubscribed among retail investors and 24 times oversubscribed by institutional investors, drawing over US$300 billion in funds. The bank's future looks bright in capitalist markets, but it still keeps the reins tight on its employees. On the company website, CCB warns its employees that they must be vigilant to avoid mistakes, with the following motto: "My minor negligence may cause great trouble for the client. My trivial mistake may cause great loss for the CCB. Greed, depravation, and corruption will bring shame to myself, my family, and my CCB." Customized for: vinh (
[email protected]) 172 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China Construction Bank Corporation Organization charts Three main business segments make up CCB's main operations: corporate banking, personal banking and treasury operations. With 13,374 branches stretched throughout the country, CCB is one of the largest banks offering services for infrastructure loans, residential mortgages, and savings and deposits. The bank's corporate services include institutional e-banking, credit services, fund settlement and custody, and international financing. The bank services its international clients from overseas offices in Frankfurt, Germany; Johannesburg, South Africa; Singapore; Seoul; and Tokyo. CCB also has representative offices in New York, London and Sydney. Its asset management and wealth management services are handled through its subsidiary, China Construction Bank Principal Asset Management. Banking buddies In 2005, CCB entered into a strategic alliance with U.S.-based financial giant Bank of America, when the latter purchased a 9 percent stake in the Chinese entity. The partnership gives CCB an association with an established American banking firm while simultaneously giving Bank of America access to key markets in China. Just one year after Bank of America bought the stake, CCB turned around and purchased Bank of America Asia, a Hong Kong firm with a subsidiary in Macau. Bank of America Asia is now known as China Construction Bank Asia. The Chinese lender is also a member of the Global ATM Alliance, a service which allows costumers from a wide range of international banks to use each other's ATMs without fees. The Alliance consists of nine banks, and also includes ABSA, Barclays, Bank of America, BNP Paribas, Deutsche Bank, Santander Serfin, Scotiabank and Westpac. Greed and corruption leads to prison Though CCB has encountered smooth sailing for most of its development, the bank has endured times it would surely rather forget. In September 2006, former bank chairman Zhang Enzhao received a prison sentence for 15 years at the Qincheng facilities outside of Beijing due to his past activities whilst heading up the bank. Zhang left the firm in March 2005, citing "personal reasons" as his motivation, but a government crackdown on dirty dealings in banking soon exposed him for having accepted bribes worth approximately RMB 4.18 million. IN THE NEWS June 2009: CCB enters NY and London Extending its global network, CCB opened its first U.S. branch in New York City. The branch will handle wholesale banking, including lending, wholesale deposits, trade finance, U.S. dollar clearing and treasury transactions. Just a few days earlier, the firm officially launched its whollyowned subsidiary in the U.K., which handles corporate banking, trade finance, commodity finance and more. May 2009: Bank of America sells more of its stake Indeed, following on its major sale of CCB shares in January 2009, Bank of America unloaded a further 5.8 percent stake in CCB for US$7.3 billion. Buyers included China Life Insurance, Hong Kong-based BOCI Asia (a subsidiary of Bank of China and a sister company of BOC International) and an unidentified foreign fund. The sale, intended to raise capital to meet the recommendations of U.S. regulators, leaves Bank of America holding an 11 percent stake in CCB. April 2009: Flying the friendly skies Customized for: vinh (
[email protected]) CCB extended a line of credit totaling RMB 20 billion to China Southern Airlines, one of the largest airlines in China. Despite a downturn in traffic for many fleets around the world, in the first quarter of 2009, China Southern Airlines indicated a growth in passenger traffic. In addition to the lending provided by CCB, the strategic agreement also includes financial consultation for the Guangzhou-based airline, including the management of cash flows and capital settlements. The big lend to China Southern comes on the heels of an extension of credit to Shanghaibased China Eastern Airlines—CCB extended RMB 11 billion to the airline in March 2009. March 2009: Hey, Hefei In efforts to branch out its revenue sources, CCB invested RMB 3.41 billion to scoop up a 67 percent stake in Hefei Xingtai Trust, a regional trust firm based in Hefei, the capital of the eastern Chinese province of Anhui. Under the Xingtai Holding Group, Hefei Xingtai Trust will be Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 173 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China Construction Bank Corporation renamed CCB Trust after capital has fully transferred. Investing in trusts as a means of revenue diversification has been a growing trend amongst Chinese banks, as government bodies have eased regulations on cross-industry transactions. January 2009: Stakes for sale To increase capital, Bank of America announced that it had sold US$2.8 billion worth of its shares in CCB in January 2009, bringing an end to speculation that Chinese authorities had been putting pressure on investors to hang onto their shares in domestic institutions. The sale drops Bank of America's stake in CCB to 16.6 percent. The sale came just months after Bank of America had spent US$7 billion in November 2008 to increase its total holdings in the Chinese bank to 19.1 percent. The Financial Times has indicated that Bank of America may be eyeing a further sale (of up to a third of its current stake) after the lock-in period expires in May 2009. July 2008: A personal touch CCB launched private banking services in July 2008, dedicated to managing the assets of individuals with a net worth of over RMB 10 million. The bank announced that the new department will initially cater to larger Chinese cities such as Beijing, Shanghai, Guangdong and Shenzhen, filling the growing need in China for more sophisticated wealth management services. GETTING HIRED Keep your hat off Hop on the hiring wagon at www.ccb.com/portal/en/home/index.html—just understand that they do things a little differently at CCB. When the bank is in its recruiting season, it posts a "positions vacant" notice in its announcements section. From there, prospective employees need to download and fill out a recruitment application form, attach a recent color photo of themselves (which should be "hatless") and include testimonials on recent work experience. Applicants should then mail everything in to the Human Resources Department, China Construction Bank Corporation, 25 Jinrong Street, Xicheng District Beijing, 100032, China. Alternately, candidates can email
[email protected]. The firm informs candidates that "all application documents will be kept confidential but not returned." Candidates who successfully apply will be notified by mail regarding interviews. As far as the interview process goes, the firm provides some handy tips on its site for the candidates that pass its written test and get to the next level. Prospective employees should arrive "15 minutes before the interview," dress formally and have their best manners at hand—interviewees are "required to cooperate with our staff and to behave properly." For those fluent in Simplified Chinese, the hiring process may be a bit less unpredictable, as there is a detailed web site with information on graduate and experienced recruitment at job.ccb.com. The Chinese recruitment page features a Frequently Asked Questions section, in addition to lists of employment vacancies categorized by city and date added. Customized for: vinh (
[email protected]) 174 © 2009 Vault.com Inc. CHINA GALAXY SECURITIES CO., LTD. No. 35, Jinrong Avenue Xicheng District Beijing 100032 China www.chinastock.com.cn THE STATS Employer Type: Private Company President: Hu Changsheng No. of Employees: 5,000 No. of Offices: 167 LOCATIONS IN CHINA Beijing • Guangzhou • Shanghai • Shenzhen Other major cities in China KEY COMPETITORS BOC International China International Capital Corporation China Merchants Securities CITIC Securities Guotai Junan Securities Ping An Securities DEPARTMENTS Asset Management Financial Consulting Fund Management Investment Banking Market Research Mergers and Acquisitions Portfolio Investment Securities Brokerage Underwriting and IPO Recommendation EMPLOYMENT CONTACT “Contact us” link on www.chinastock.com.cn (in Simplified Chinese) THE SCOOP Come together State-funded China Galaxy Securities was officially founded in August 2000 with start-up capital of RMB 4.5 billion. Though China Galaxy may seem like the new kid on the block, it actually draws on the experience of five established financial services companies. China Galaxy is comprised of securities and investment arms from the Big Four banks (Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China) as well as from China Life Insurance Company. Today, this joint effort is the third-largest underwriter in China with 14 percent of the market share, only trailing CITIC Securities and China International Capital Corporation (CICC). China Galaxy provides high-end investment banking services to corporations, financial institutions, governments and high-net worth individuals. The firm's divisions include a full securities brokerage, IPO underwriting and recommendation, mergers and acquisitions (M&A), financial consulting, asset management, portfolio investment, fund management and market research. China Galaxy also operates a series of indexes, which launched in March 2001. These include the Galaxy 500, the Galaxy Fund Index, the Galaxy T-bond Index and the Galaxy Corporate Bond Index. Customized for: vinh (
[email protected]) 175 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China Galaxy Securities Co., Ltd. IN THE NEWS June 2009: Unfreeze! Chinese underwriters rejoiced as the unofficial moratorium on IPOs, enacted in September 2008 by the China Securities and Regulatory Commission (CSRC), was finally lifted in June 2009. In addition to the more than 300 companies stuck in the application process, over 30 companies had received regulatory approval but weren't cleared to sell shares under the freeze. May 2009: New president replaces arrested Galaxy head Chinese state-run investment vehicle Central Huijin Investment, the majority shareholder of China Galaxy, appointed Hu Changsheng as the new president for the securities firm in May 2009. Hu formerly served as the head of the capital markets division at Central Huijin. The appointment comes on the heels of a massive bribery scandal uncovered by Caijing magazine, which revealed that former China Galaxy president Xiao Shiqing had been detained in April 2009 on corruption charges. According to the publication, Xiao reportedly confessed to accepting RMB 10 million worth of bribes, and a large amount of cash was found in his home. Sources close to the case told Caijing that the investigation was "a continuation of the corruption investigation surrounding Wang Yi," a former China Securities and Regulatory Commission (CSRC) official and vice governor of China Development Bank who was implicated in another bribery scandal in June 2008. Xiao served under Wang at CSRC from 1995 to 1999. The investigation of Xiao's case is expected to continue through August 2009. April 2009: Death sentence upheld for former Galaxy broker Former China Galaxy general manager Yang Yanming lost his final appeal in Beijing's higher court system in April 2009, and his death sentence was upheld. In late 2005, Yang was convicted and sentenced to death for embezzling RMB 97.6 million between 1998 and 2003 (when the firm was known as China Great Wall Trust and Investment Corporation). Yang will become the first employee in China's securities sector to be executed. September 2008: Freeze! Bad news for Chinese underwriters hit in September 2008, as the Chinese Securities and Regulatory Commission (CSRC) stopped allowing initial public offerings due to the global financial crisis—which caused the Shanghai Stock Exchange to drop 60 percent from January 2008 to September 2008. Over 300 companies remained stuck in the application process while IPOs remained frozen until June 2009. January 2008: Transfer of control One of China Galaxy's prime backers, Central Huijin Investment Company, announced that it would be pulling up stakes in January 2008. Central Huijin, a subsidiary of sovereign wealth fund China Investment Corp. (CIC) held 78.5 percent in China Galaxy, and transferred the stake in its entirety to another state operation—the China Securities Investor Protection Fund. Central Huijin had injected funds into a number of Chinese brokerages in 2005 during a low period, and was locked in for three years. All signs pointed to an IPO for China Galaxy in 2008, according to sources at the firm. One source told Reuters, "Our shareholder CIC has approved the plan and is now discussing with the securities regulator about the listing. Galaxy is definitely going to get listed [in 2008]." However, whether due to the stake transfer, the market, or other factors, the IPO ultimately didn't come to fruition in 2008. It's unclear if the new stakeholders will approve the company's plans to go public in late 2009. Customized for: vinh (
[email protected]) October 2007: Mining for coal China Galaxy has scored big on energy deals, particularly by advising China's two largest coal producers on their public debuts. China Galaxy co-advised China Coal Energy Co., the second-largest coal producer in China, on its entrance into the Shanghai stock market in February 2008. Though the market was increasingly volatile in the months before China Coal's debut, the firm still was able to raise RMB 3.12 trillion in orders, a share sale that was approximately 121 times oversubscribed. On its first official day of trading, China Coal opened at RMB 24 per share, up 42.6 percent from its IPO price of RMB 16.83. 176 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China Galaxy Securities Co., Ltd. The debut of China Coal Energy's stock was soon eclipsed by the October 2007 debut of China Shenhua Energy, the largest coal miner in the country. China Shenhua's IPO raised a record RMB 66.6 billion, the largest sum ever raised by a mainland Chinese company at the time. Approximately 1.8 billion shares were sold, and China Shenhua's stock was also massively oversubscribed, raising RMB 2.67 trillion, a record number of subscriptions. April 2007: BoComm blossoms In China, 2007 was a year of IPO fever, as hot stocks hitting the market seemed to set new records each day. China Galaxy was involved in one of the earliest record-setting IPOs of the year in April, when it helped to arrange the sale of Bank of Communications (BoComm), China's sixth-largest bank at the time. BoComm managed to raise RMB 1.45 trillion in subscriptions prior to its debut on the Shanghai exchange. In total, about US$3.3 billion was earned on the sale. GETTING HIRED Best of luck How to go about finding a gig at China Galaxy Securities appears to be anybody's guess. The bank doesn't list employment opportunities on its web site, and listings for the firm are absent from most China-based job sites. If you can read Simplified Chinese, you can log on to its affiliate site, www.chinastock.com.cn, and try the "contact us" section for full information. But China Galaxy seems to be like many securities firms in China—jobs and positions available within the company aren't often widely publicized. So if you have a contact within the company, he or she may be a better way in than the traditional application process. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 177 CHINA INTERNATIONAL CAPITAL CORPORATION 28th Floor, China World Tower 2 No. 1 Jianguomenwai Ave. Beijing 100004 China Phone: +86-10-6505-1166 Fax: +86-10-6505-1156 www.cicc.com.cn THE STATS Employer Type: Private Company CEO: Levin Zhu Yunlai Chairman: Li Jiange No. of Offices: 7 KEY COMPETITORS LOCATIONS IN ASIA PACIFIC Beijing • Hong Kong • Shanghai • Shenzhen CITIC Securities China Galaxy Securities Guotai Junan Securities DEPARTMENTS Asset Management Capital Markets Fixed Income Investment Banking Private Equity Research Sales & Trading EMPLOYMENT CONTACT “Joining CICC” link at www.cicc.com.cn THE SCOOP Wall Street meets China China International Capital Corporation (CICC) was the first major collaboration of a U.S. investment bank with a Chinese investment bank. Founded in 1995, long before the buzz about China turned into a roar, CICC was a way for banking giant Morgan Stanley to test the financial waters. Partnering with a number of Asian firms, Morgan Stanley bought a 34.3 percent stake in CICC at the time of its incorporation, marking the first time a Wall Street company had made such a significant investment in China. CICC's controlling stake is held by China Jianyin Investment (43.4 percent), a sub-subsidiary of Chinese sovereign wealth fund China Investment Corporation (CIC). Other partners in the venture include China National Investment & Guaranty Co. (7.7 percent), the Government of Singapore Investment Corporation (7.4 percent), and a private Hong Kong-based investment firm run by the Cha family, Mingly Corporation (7.4 percent). Morgan Stanley's investment gamble has more than paid off. CICC is currently one of the top underwriters in China working on some of the biggest deals in investment history, including the massive IPOs of China Construction Bank (US$9.2 billion in 2005) and Industrial and Commercial Bank of China, or ICBC (US$19.1 billion in 2006). In 2007, CICC underwrote US$17.7 billion in public offerings, according to Thomson Reuters. CICC is overseen by CEO Levin Zhu Yunlai, the son of former Chinese Premier Zhu Rongji. Levin Zhu got his start as a weather analyst for the Chinese government's China Meteorological Administration. It wasn't until 1996 that he entered finance, joining Credit Suisse in New York after completing a Master's degree in accounting in Chicago. Zhu switched over to CICC in 1998 (the year his father became China's premier) before formally taking the reins at CICC in 2002. The firm's main offices are located in Beijing, but the company also has locations in Shanghai, Hong Kong and Shenzhen. Customized for: vinh (
[email protected]) 178 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China International Capital Corporation More than just IPOs At CICC's core is its investment banking services, particularly underwriting. The firm consistently ranks among the top firms in China on the Thomson Reuters league tables in underwriting categories. Primary industries the firm indulges in include financial services, telecommunications, power, oil and gas, petrochemicals, iron and steel, and logistics. However, CICC also houses a number of other departments, including capital markets, sales and trading, research, fixed income, asset management and private equity. CICC is a licensed brokerage which is authorized to engage in domestic and foreign stock and bond trading (brokerage, proprietary and underwriting), advice on corporate restructuring, mergers and acquisitions (M&A), financing transactions and investments, foreign currency trading and asset management, and inter-bank lending and borrowing. History in the making The past few years have been historic in the exponential growth of both the Hong Kong Stock Exchange and the Shanghai Stock Exchange. Prior to the global financial crisis, the international market was hot for Chinese IPOs, and CICC has been lucky enough to be involved in some of the most lucrative deals. One of the most notable of these was the debut of China's CITIC Bank in April 2007, which hit both exchanges in one day, raising a total of US$5.95 billion. CICC acted as joint global coordinator, bookrunner, sponsor, lead underwriter and financial advisor for the H-share (mainland Chinese stocks listed on the Hong Kong exchange) offering, and sole financial advisor for the A-share (mainland Chinese stocks traded in RMB on the Shanghai and Shenzhen exchanges) offering in Shanghai. The firm also acted as joint coordinator, bookrunner and sponsor for the dual-exchange public offering of Industrial and Commercial Bank of China (ICBC) in October 2006, which continues to stand as the largest IPO in global history, raising an unprecedented US$19.1 billion. Awards and rankings • Best Banks in China: M&A, Domestic—No. 1 (Global Finance, 2009) • Best Local Currency Bond (The Asset, 2008) • Top Ten Deals of 2008 [four made the list] (CFO, 2008) • China Equity House of the Year (IFR Asia, 2008) • Bond of the Year (IFR Asia, 2008) • Best International Pioneer of the Year: Financial Institution (China Business News, 2008) • Best Local Brokerage/Best Overall Sales Service/Best Execution/Best in Sales Trading/Most Improved Brokerage Business in Recent Twelve Months/Best Overall Country Research in China (Asiamoney, 2008) • Most Respected Investment Bank—No. 1/Best Domestic Investment Bank—No. 2/Most Innovative Investment Bank—No. 2/Best IPO—No. 1 (New Fortune, 2008) • Best Investment Bank—No. 1 (21st Century China Brokers, 2008) IN THE NEWS April 2009: First-quarter underwriting kings Customized for: vinh (
[email protected]) According to Bloomberg data, CICC and CITIC have reaped the benefits of a growing bond market which has barred all other brokerages from competing. Aside from banks, CICC and CITIC are the only two brokerages allowed to underwrite medium-term notes and commercial paper— two types of bonds that help companies raise cash. Medium-term notes (bonds that typically mature in three to five years) were introduced to the Chinese market in April 2008, though sales were suspended from July to September. In the first quarter of 2009 alone, CICC worked on RMB 21 billion of medium-term note deals—more than four times the total for all of 2008. (An unofficial moratorium on IPOs in China came into effect in September 2008, and continued until June 2009.) Since CICC and CITIC were the two biggest Chinese equity underwriters in 2008, controlling a combined 43 percent of the market, the medium-term notes may be a way to salvage a bad situation for the two firms under the moratorium on stock offerings. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 179 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China International Capital Corporation February 2009: Big mining deals Australian mining giant Rio Tinto, the world's second-largest mining company, became the target of a massive investment by governmentcontrolled Aluminum Corp. of China (better known as Chinalco) in February 2008. Chinalco teamed up with U.S.-based Alcoa to purchase a 12 percent stake for about US$14 billion, with most of the money put up by Chinalco. CICC acted as joint financial advisor for Chinalco on the deal, which effectively put a halt to mining giant BHP Billiton's plans to complete a hostile takeover of Rio Tinto. A year later, Alcoa announced its decision to pull out of the venture, and sold its stake for US$1.02 billion to Chinalco in February 2009. At the same time, Chinalco announced that it had upped its stake in Rio Tinto (to 18 percent) for US$19.5 billion—China's largest investment in a foreign company to date. CICC again acted as joint financial advisor. The deal immediately sparked controversy in Australia, with critics claiming that the buy-in amounted to the Chinese government using its political might to take further control of Australian resources and raw materials. After gaining approval from the Australian Competition & Consumer Commission, the deal continues to hang in the balance and is under review by Australia's Foreign Investment Review Board. July 2008: Everyone's connected The Chinese government moved to replace CICC's chairman and director, Jesse Wang Jianxi, in July 2008 after months of deliberation. Wang was succeeded by Li Jiange, a vice minister in the Chinese government. Though Wang lost his chairman post, he remains a vice president at state-run sovereign wealth fund China Investment Corp. (CIC), which owns 43.4 percent of CICC through sub-subsidiary China Jianyin Investment. Li had previously served as vice chairman of China's securities regulator, and most recently at a government think tank (the Development Research Center) which researches economic policy and reports directly to the State Council. Well-connected and experienced in all aspects of the Chinese economy, Li also served as former Chinese Premier Zhu Rongji's personal secretary—Zhu Rongji's son, Levin Zhu Yunlai, is CICC's CEO. March 2008: Morgan looking to bow out? Though Morgan Stanley was on board with CICC from its inception, things haven't always been amicable between the two investment banking firms. Morgan Stanley reportedly wanted more control over its Chinese investment than those in charge of CICC were willing to concede, making the partnership increasingly tense. In early 2008, Morgan Stanley decided to cash out. Chinese government regulations only allow foreign investment companies to have joint partnerships with one Chinese company, so in order to start fresh, Morgan Stanley will have to unload its share in CICC. The 34.3 percent share (diluted to about 27 percent due to a "phantom share" issuance) of CICC was originally expected to go for between US$1.1 billion and US$1.3 billion, a huge increase over Morgan Stanley's original investment in the company for only US$37 million in 1995. However, bids from three private equity firms (TPG, JC Flowers and Bain Capital) fell to around US$500 million. In March 2008, Morgan Stanley scrapped the sale, at least for the time being. GETTING HIRED The merits of CICC CICC defines itself as a "meritocracy"—meaning that ability and talent are rewarded above all. The firm claims it has "no rigid hierarchy" though there is a "defined management structure. Core business departments include investment banking, capital markets, sales and trading, research, fixed income and asset management. Development options include overseas, in-house, product and skill-based training in addition to certification assistance programs. Pre-employment training programs for campus hires also exist. Check the "Joining CICC" link at www.cicc.com.cn for recruitment information. Hiring at CICC falls into three categories: lateral hires (experienced professionals), campus hires (fresh graduates) and summer internships. CICC notes that recruiting for the summer internship program usually begins in March or April each year. For any general questions on the application process, you can email
[email protected]. However, the firm notes that resumes should not be sent to this address—instead, use its online application system. To apply, first click the "Login/Register" link to fill in your profile, recommended to be in both Chinese and English. Next, select your category— lateral, campus or internship—and then choose the specific position you're interested in. If your position isn't available, you can join the firm's Customized for: vinh (
[email protected]) 180 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China International Capital Corporation "talent pool" for future openings in some of its departments. After you have finished applying, a confirmation letter will be sent to your email address. Qualified applicants will be invited "to attend a written test and/or interviews." The recruitment site also gives useful tips on interview preparation. Along with general advice (such as a reminder to learn about investment banking and research the firm as well as the department you are applying to), CICC explains that interview questions generally evaluate two main areas: "whether you have the required knowledge and skills for the job; and whether you possess the specific competency required of a CICC employee." Another piece of advice CICC offers is to give specific examples of what you have done "to show the real you" during the interview. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 181 CHINA MERCHANTS SECURITIES CO., LTD. Jiangsu Building Block A, 38/F Yitian Road, Shenzhen 518026 China Phone: +86-75-5379-6636 Fax: +86-75-5379-6500 www.newone.com.cn THE STATS Employer Type: Subsidiary of China Merchants Group President & Director, CMS: Yang Kun No. of Offices: 71 No. of Employees: 2,000 KEY COMPETITORS BOC International China Galaxy Securities GF Securities Guotai Junan Securities Haitong Securities Ping An Securities LOCATIONS IN ASIA PACIFIC Beijing Hong Kong Shanghai Shenzhen Other major cities in China EMPLOYMENT CONTACT DEPARTMENTS Asset Management Brokerage Financial Advisory Investment Advisory Securities Self-Operation Underwriting and Sponsorship news.newone.com.cn/adv/zhaopin/zhaopin.html
[email protected] THE SCOOP Top-10 list Established in 1991, China Merchants Securities (CMS) is a subsidiary of state-owned conglomerate China Merchants Group, which indirectly controls over 51 percent of the firm. CMS now ranks among the top 10 brokerages in China, of which there are over 100. The massive China Merchants Group also oversees wholly owned Hong Kong-based subsidiary China Merchants Securities (HK). Fund management is handled through China Merchants Fund (of which the Hong Kong subsidiary owns a 40 percent stake) and Bosera Funds (in which CMS holds a 73 percent stake). Aside from its transportation/infrastructure and property development businesses, China Merchants Group also oversees China Merchants Bank (CMB), the sixth-largest bank in China. CMB launched in 1987 as the first commercial bank in China not directly under government control. In 1991, CMB launched CMS as a department to expand its business even further, and in October 1994 CMS was established as a wholly owned subsidiary of CMB. Both CMS and CMB are headquartered in the southern Chinese city of Shenzhen, with offices in Hong Kong and throughout mainland China. Strongest in asset management (which is No. 1 with a 25 percent market share in China, according to the firm), CMS also handles brokerage and investment banking services. On the I-banking side, CMS handles equity finance, bonds, structured finance, and advisory and M&A. The securities firm is led by Yang Kun—she has served as the president of CMS since December 2003 and also serves as the "chairman" (though shouldn't that be chairwoman?) of the board for Bosera Funds since July 2008. CMS submitted plans to regulators for the launch of its IPO in September 2008, which could place it even higher up the charts for Chinese securities firms. However, after gaining initial regulatory approval (and after a nine-month freeze on IPOs in China), the launch has yet to Customized for: vinh (
[email protected]) 182 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China Merchants Securities Co., Inc. materialize. CMS has hired the Chinese brokerage arms of financial giants Goldman Sachs and UBS to jointly underwrite the public offering, which analysts predict could potentially raise up to RMB 5 billion. QDII approved CMS has the privilege of being one of only a handful of Chinese brokerages to have won the coveted status of qualified domestic institutional investor, or QDII. The China Securities Regulatory Commission (CSRC) has only allowed securities firms to invest in foreign securities markets since April 2006, when the QDII program was launched. At first, investments were limited to fixed-income and money market products. However, the CSRC expanded the definition of QDII in May 2007 to allow investment banks to invest in stock-related products with modest restrictions. In September 2007, CMS became the second securities firm to earn QDII approval after China International Capital Corporation (CICC). Some of the other securities firms which have QDII approval from the CSRC include CITIC Securities, Guotai Junan Securities, Orient Securities, Everbright Securities and Huatai Securities. Subsidiary of a subsidiary CMS handles fund management in mainland China through a joint venture with Dutch financial firm ING Investment Management. The partnership, named China Merchants Fund Management (CMF), was the first Sino-foreign joint venture of its kind to receive formal approval to operate in mainland China. CMF was founded in December 2002 as a collaboration between CMS, ING and three other companies: China Power Finance Company, China Huaneng Finance Company and China COSCO Finance Company. However, in May 2007, China Merchants Bank bought out the latter three companies, leaving the CMF evenly split three ways between CMB, CMS and ING. Also headquartered in Shenzhen, most of CMF's business revolves around the launching of funds and fund management. The firm is organized into nine main departments: investment management, investment trading, marketing, client services, IT, business development, supervisory and audit, general management and finance, and fund accounting. In January 2008, CMF was also granted QDII approval by the CSRC. IN THE NEWS June 2009: Finally, IPOs return Though CMS has yet to launch its own IPO, the firm served as lead underwriter on China's first IPO of the year when regulators lifted the unofficial moratorium on the markets in June 2009. Guilin Sanjin Pharmaceutical, a major Chinese medicine maker, raised RMB 910.8 million from the IPO and was 584 times subscribed for the main retail portion, as hungry investors jumped on board. February 2009: Jump in with JMP U.S.-based financial services firm JMP Group (and its subsidiary JMP Securities) announced a partnership with CMS. The partnership comes through an investment in China-based HuaMei Capital Company, which itself is a joint venture including CMS and U.S.-based equity firm MVC Capital. Yang Kun, the president of CMS, also serves on HuaMei's board of directors. HuaMei primarily handles cross-border transactions, and also handles acquisition and strategy advising. The firm's co-CEO, Carter Mack, remarked, "Through HuaMei, U.S. and Chinese companies seeking to execute cross-border transactions will now be able to access high-quality investment banking services provided by leading strategic advisors on both sides of the Pacific. We believe that our affiliation with China Merchants Securities ... will greatly benefit JMP over time." Customized for: vinh (
[email protected]) September 2008: Big IPO plans Announcing plans to issue about 359 million RMB-denomination A-shares (or 10 percent of its total share capital) in the domestic market, CMS submitted a draft of its plans for a domestic IPO to regulators. The China Securities Regulatory Commission (CSRC) reviewed the plan in September 2008 and approved it after a few days, making CMS only the second Chinese brokerage (after Everbright Securities) to gain initial approval after a five-year suspension. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 183 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition China Merchants Securities Co., Inc. Though CMS gained approval, the IPO may not be launched immediately. One final hoop remains to be jumped through—CMS must get authorization directly prior to the actual start of the IPO process. To put things in perspective, Everbright Securities received its initial approval from the CSRC in June 2008, but still had not received the final authorization to go ahead with its IPO as of September 2008. And, as luck would have it, the CSRC instituted an unofficial moratorium on IPOs in China from September 2008 until June 2009, effectively freezing the IPO markets due to the global economic crisis. June 2008: New funds set up An agreement was signed in June 2008 between Japan-based financial company SBI Holdings and three Chinese financial firms: CMS, Resource Capital China, and China CITIC Bank Corp. The agreement sets up two investment funds—one based in the Cayman Islands for U.S. dollar investments, and the other in mainland China for RMB investments—for targeting privately held Chinese companies. The U.S.dollar fund is to be financed by SBI Holdings, while the RMB fund, valued at RMB 150 million, will be handled by CMB and the other two Chinese firms. December 2007: High-flying offer The firm received a purchase offer for 29.77 million shares from a domestic airline company, Hainan Airlines, in December 2007. Hainan offered to buy shares, representing an approximate 1 percent stake in CMS, at RMB 20 per share—amounting to a grand total of RMB 595 million. Under the deal, the price is subject to adjustment if the looming IPO makes CMS significantly higher-valued than Hainan Airlines' original offer price. Hainan Airlines will raise assets for the buy-in from its parent company, Grand China Airlines, the fourth-largest airline in China. November 2007: Korea's Daishin is in Hooking up with South Korean securities and investment banking firm Daishin Securities in November 2007, CMS signed a strategic partnership agreement to cooperate in a number of areas. Under the agreement, the two firms will scratch each other's backs on corporate financing, financial market products, futures, U.S. dollar- and Hong Kong dollar-denominated stocks in mainland China, stocks traded in Hong Kong and South Korea, and much more. GETTING HIRED Follow the clues There's no straightforward English-language careers area on the China Merchants Securities site, but there are some resources on the site in Simplified Chinese at news.newone.com.cn/adv/zhaopin/zhaopin.html. By e-mail, you can try sending a resume and cover letter to this general HR address:
[email protected]. Alternately, you can try sending your information to the firm's physical address (care of the HR Department) at: Jiangsu Building, Block A, 38/F, Yitian Road, Shenzhen, 518026, China. For opportunities with CMS in Hong Kong, try
[email protected]. Simplified Chinese-language information on the careers site includes general information on the type of individual the firm's looking for, as well as links to a campus employment blog at zszq2009.blog.sohu.com and a grad-specific recruitment site at news.newone.com.cn/newone/gonggao/20081020/index.htm. The latter site includes campus visitation dates and much more. Customized for: vinh (
[email protected]) 184 © 2009 Vault.com Inc. CIBC WORLD MARKETS INC. (CIBC’S WHOLESALE BANKING DIVISION) Cheung Kong Center 2 Queen’s Road Central Suite 3602 Central, Hong Kong Phone: +852-2841-6111 www.cibcwm.com THE STATS Employer Type: Subsidiary of Canadian Imperial Bank of Commerce (CIBC) Chairman & CEO, CIBC’s wholesale banking division: Richard Nesbitt Revenue: C$405 million (FYE 10/09) Net Income: -C$507 million No. of Employees: 1,100 No. of Offices: 22 LOCATIONS IN ASIA PACIFIC Australia China Hong Kong Japan KEY COMPETITORS BMO Capital Markets RBC Capital Markets TD Securities BUSINESSES Capital Markets Cash Equities Fixed Income, Currencies & Distribution Global Derivatives & Strategic Risk Corporate & Investment Banking Corporate Credit Products Investment Banking Merchant Banking U.S. Real Estate Finance EMPLOYMENT CONTACT www.cibcwm.com/careers THE SCOOP Canada goes Far East CIBC World Markets, also known as the wholesale banking division of Canadian Imperial Bank of Commerce (CIBC), can trace its roots back to 1988 when CIBC acquired a majority interest in Wood Gundy, then one of Canada's leading securities dealers and foremost international Canadian dealer. The combination of CIBC's capital and Wood Gundy's underwriting reputation created one of the leading investing institutions in Canada. CIBC Wood Gundy formed the core of CIBC World Markets, which was created in 1997. Though its home base may be in Canada, CIBC’s wholesale banking division does business globally. The company has five offices in the Asia Pacific region, with operations in Beijing, Hong Kong, Tokyo, Shanghai and Sydney. Customized for: vinh (
[email protected]) Headquartered in Toronto, CIBC’s wholesale banking division provides credit and capital markets products, fixed income and currency services, and investment banking and merchant banking to clients around the world. The capital markets division offers equities, sales and trading, alternative execution services, research, derivatives and arbitrage. The merchant banking division offers both venture capital services and sponsored private equity funds. The fixed income and securities division also offers the trading and sale of debt products, interest rate derivatives and foreign exchange. CIBC's investment banking unit offers credit products, debt and equity underwriting, income securities and trusts, M&A advisory, U.S. real estate finance, and private placement services. CIBC is one of Canada’s top M&A advisors in a number of industries, and is a leader in Canadian equity underwriting and structured products. 185 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CIBC World Markets Inc. (CIBC’s Wholesale Banking Division) Hit by a sub-prime storm CIBC was one of the world’s most promising firms at the start of 2007 due to several key factors. For starters, it was the underwriter on a huge deal: Fortis' acquisition of Canadian utility company Terasen's gas distribution business. Plus, the bank was bringing in a vast sum of money from its U.S. real estate finance business. However, the bank’s fortunes would soon be reversed thanks to the subprime lending crisis in the U.S. By the end of 2007, the firm had announced that its exposure, both hedged and unhedged, to the subprime market was approximately US$11 billion. The bank had roughly US$777 million in write-downs by the end of 2007, followed by a further US$6.5 billion in write-downs at the end of the second quarter of 2008. In early 2008, CIBC sold its U.S.-based investment banking, leveraged finance, equities and related debt capital markets businesses to Oppenheimer Holdings Inc. It also exited its leveraged finance activities in London, placed its structured credit business in run-off, and reduced its activities in several areas, including derivatives trading and asset-backed commercial paper conduits. CIBC retained its other U.S. wholesale businesses, which include real estate finance, equity and commodity structured products, merchant banking, and oil and gas advisory, as well as the balance of its U.S. debt capital markets, Asia and U.K. businesses. CIBC also maintained its corporate lending capability and its ability to distribute Canadian equities and fixed income products in the U.S. and international markets on behalf of its Canadian clients. Restructure, revamp, recover In February 2008, amid an executive reorganization, the former chief executive of the Toronto Stock Exchange, Richard Nesbitt was appointed chairman and chief executive officer of CIBC’s wholesale banking division, succeeding Brian Shaw in the role. In addition to the management change, the firm divided its investment banking, corporate banking and merchant banking departments into “three distinct units.” Upon the announcement, Nesbitt told staff that the “strategic changes” would allow the firm to “further enhance and broaden [its] client focus” and “take advantage of market opportunities resulting from changes in the global credit markets.” The then-newly-appointed chief executive also said the firm’s investment banking team was “well positioned” to profit from the increasing significance of Canada as a contributor to the world economy across various sectors and industries. Other noteworthy additions to the firm include Harry Culham as head of fixed income, currencies and distribution, Tim Carrington as head of global derivatives and strategic risk, Laura Dottori-Attanasio as head of corporate credit products, Rik Parkhill as head of cash equities; and Geoff Belsher as head of investment banking. Mining expertise CIBC’s wholesale banking division carved out a niche for itself in the world of investment banking by specializing in mining M&A advisory. This proved extremely profitable for the company as its focus on the sector coincided with a boom in mining acquisitions. CIBC World Markets has been involved in deals with some of the biggest international names in mining including Placer Dome, Noranda and Anglo Gold Ashanti. The Australian branch of CIBC’s wholesale banking division has represented mining firms such as BHP, Cameco, Mitsubishi, Normandy, and Ashton Mining. Because of the success of its endeavors in this industry, CIBC’s wholesale banking division has adding mining professionals to its offices in both Hong Kong and Beijing. Currently, the firm has 40 professionals dedicated exclusively to the global mining arena. Awards and rankings • • • • Investment Bank of the Year—North America (ACQ, 2009) Financial Advisor of the Year—Canada (Financial Times/Mergermarket M&A Awards, 2009) Mid Market Financial Advisor of the Year—Canada (Financial Times/Mergermarket M&A Awards, 2009) M&A Deal of the Year Canada—Teck Cominco Ltd. (Financial Times/Mergermarket M&A Awards, 2009) Customized for: vinh (
[email protected]) IN THE NEWS December 2009: Hitting its target CIBC’s wholesale banking business reported a net loss of $507 million in 2009 compared with a net loss of $4.2 billion in 2008. The results included write-downs within the firm’s structured credit run-off business (managed apart from wholesale banking’s core and continuing 186 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CIBC World Markets Inc. (CIBC’s Wholesale Banking Division) businesses). Despite the loss, the firm hit its financial goals. “Wholesale Banking exceeded its financial objective set at the end of 2008, which was to deliver annual net income between $300 million and $500 million from its continuing businesses,” according to CIBC President and CEO Gerry McCaughey in a joint statement. “This result reflects progress against the strategy and risk context set forth by the business in 2008, in combination with a better operating environment in 2009.” August 2009: Moving to Hong Kong CIBC announced that its fixed income, currencies and distribution activities in Singapore were relocating to a new office in Hong Kong. The move was made to support plans to pursue new business throughout greater China and North Asia while continuing to service current existing clients in the region. CIBC’s other operations in Asia were not affected by this change. April 2009: What’s in a name? Due to its exposure to subprime loans in the U.S., the firm was forced to write-down billions of dollars in 2007 and 2008. Also during that time, it sold its New York operations (which once included 700 employees) and non-core businesses overseas. Given these facts, it’s no wonder that CEO Richard Nesbitt deemed a fresh start as the best way forward for CIBC’s wholesale banking division. As of April 2009, CIBC’s wholesale banking division became known simply as Wholesale Banking. “While we retain the legal name of CIBC World Markets Inc., this will no longer be part of our brand identity,” said Nesbitt. Canada’s Globe and Mail reported that the firm will be taking a more modest approach, developing the brokerage arm into a value-added service for Wholesale Banking’s clients, while trying to pursue steady growth for the firm as a whole. January 2009: On the road to recovery In the first quarter of 2009, the firm reported a net loss of US$373 million—a surprisingly uplifting result compared to its US$1.63 billion loss reported in the same quarter of 2008. Revenue was up US$1.92 billion compared to the same quarter of last year. The firm stated it owed a bulk of this revenue to lower structured credit losses, higher fixed income and equity trading as well as higher generated income from equity issuances. However, even with its improved financial results, CIBC’s wholesale banking division was forced to let go of 171 full-time employees under cost-cutting initiatives. January 2009: More changes Further shakeups were afoot, as the division’s deputy chairman David Leith departed after 25 years with the firm. Leith, who was also head of investment, corporate and merchant banking, simply said that he had “elected to leave the firm.” Following Leith’s departure Geoffrey Belsher, former managing director of Lehman Brothers Canada, joined as managing director of investment banking. Laura Dottori-Attanasio, former chief risk officer at the National Bank of Canada, signed on as head of corporate credit activities. As part of these change, the firm reorganized its investment banking, corporate banking and merchant banking activities into three distinct lines of business. January 2009: TSX top trader Some good news: CIBC’s wholesale banking unit beat longtime rival TD Securities as the top trader, by value, on the Toronto Stock Exchange. CIBC had a market share of 13.1 percent for January, with C$28.5 billion worth of trading activity. (By June 2009, CIBC had increased its market share to 17.6 percent, with C$45.5 billion in trading activity.) New CEO Richard Nesbitt deserves credit for this success: he’s the one who hired TMX Group’s Rik Parkhill to head the cash equities division. Under Nesbitt’s leadership, the division has also cultivated more business with foreign traders who are interested in low-commission electronic trading. Customized for: vinh (
[email protected]) December 2008: No. 1 in M&A (in Canada) According to Thomson Reuters, CIBC was the No. 1 advisor of Canadian merger and acquisition deals in 2008. CIBC worked on 54 announced deals during the year worth a total of US$26.9 billion. The bank was also the fifth most active debt underwriter in Canada in 2008, underwriting 49 debt deals worth a total of C$14.1 billion. And it ranked No. 3 in Canadian government debt underwriting, having worked on 35 deals worth a collective C$10.5 billion. In the Canadian equity markets, the bank ranked No. 3 in total equity underwriting volume; it worked Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 187 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CIBC World Markets Inc. (CIBC’s Wholesale Banking Division) on 23 deals worth C$3.4 billion. And it came in fifth in Canadian IPO volume; the firm only worked on one deal, but that was worth C$60 million. December 2008: Big losses CIBC’s fiscal year ends on October 31st, and for the fourth quarter of the year, CIBC’s wholesale banking division reported net income of C$133 million, compared to a net loss of C$538 million for the third quarter of the year. For the full fiscal year, CIBC reported a net loss of $4.2 billion, mostly the result of structured credit losses; parent bank CIBC had a net loss of $2.1 billion. Damage control is ongoing. Besides selling off its U.S. investment banking, leveraged finance, equities and related debt capital markets businesses to Oppenheimer, CIBC wound down its London-based leveraged finance business and put its structured credit business in run-off. Other operations, including derivatives trading and asset-backed commercial paper conduits, were scaled back. Going forward, CIBC said it will shift to a 75 percent retail business, and it has set an annual net income goal of $300 million to $500 million for CIBC World Markets. GETTING HIRED Email, email, email CIBC’s wholesale banking division's careers page at www.cibcwm.com/wm/careers has information on general recruitment as well as campus recruitment. There are entry-level job listings, but only for North America and Europe. The firm also offers a "Global Tuition Assistance Policy" designed to foster continuing education for eligible employees. To apply for opportunities in Asia Pacific, there are links from the recruitment page to send your CV by email to coordinators in Australia, Mainland China and Hong Kong, Japan, and Singapore. For Australia, applicants should send their CV to
[email protected]. For mainland China and Hong Kong, contact
[email protected]. For Japan, it's
[email protected]. And finally, for Singapore, shoot an email to
[email protected]. Customized for: vinh (
[email protected]) 188 © 2009 Vault.com Inc. CIMB GROUP HOLDINGS 10th Floor, Bangunan CIMB Jalan Semantan Damansara Heights Kuala Lumpur, 50490 Malaysia Phone: 603 2084 8888 Fax: 603 2084 8899 www.cimb.com THE STATS Employer Type: Public Company Ticker Symbol: CIMB (Bursa Malaysia) CEO: Dato' Sri Nazir Razak Revenue: RM 9.6 billion (FYE 12/08) Net Income: RM 2 billion No. of Employees: 36,000 No. of Offices: Operations in 11 countries LOCATIONS IN ASIA PACIFIC Brunei • China • Hong Kong • Indonesia • Malaysia • Myanmar • Singapore • Thailand KEY COMPETITORS AMMB Holdings Berhad Edaran Otomobil Nasional Berhad Malayan Banking Berhad BUSINESSES Asset Management Consumer Banking Insurance Investment Banking Islamic Banking EMPLOYMENT CONTACT See “careers” at www.cimb.com THE SCOOP Universal banking in Malaysia Commerce International Merchant Bankers Group, better known as CIMB Group, is a Malaysian banking giant. CIMB Group is the secondlargest financial service provider in Malaysia (behind Maybank), the fifth-largest in Southeast Asia by total assets, and also the region's largest investment bank. The company has 36,000 employees and serves over 7 million customers in bout 600 locations, both in Malaysia and around the world. CIMB Group’s international footprint includes regional offices in Hong Kong, Indonesia, Singapore and Thailand, as well as outposts in mainland China, Vietnam, the U.S. and the U.K. The bank aims to become "Southeast Asia's most valued universal bank." As of September 2009, it had RM228.9 billion in assets. Merge and acquire, merge and acquire The founding and history of CIMB Group is not just the story of a single company, but rather, the shared history of dozens of individual banks and organizations that have all become a part of the current conglomerate. CIMB Group has followed a similar expansion path to many giant conglomerates in the U.S. Just as the Pepsi Corporation wholly owns (or has partnered with) numerous rivals and complementary food and beverage companies, CIMB Group has similarly joined forces with, or acquired, dozens of rival banks and financial institutions, both in Malaysia and throughout the whole of Asia. The group can trace its history all the way back to 1924, long before Malaysia's establishment as a country in 1963, with the founding of the Bian Chiang Bank. To date, 17 different independent banks and financial providers have been absorbed to create the CIMB Group. A key event in the history of CIMB Group was the founding and incorporation of Bank Bumiputra Malaysia Berhad (BBMB) in 1965. "Bumiputra" is a Malay word literally meaning "son of earth." The word refers to indigenous ethic groups in Malaysia such as Malays, Bugis, Javanese and Minang, among others. BBMB was created as a result of government initiatives to increase Bumiputra participation in the Customized for: vinh (
[email protected]) 189 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CIMB Group Holdings economy. The bank grew rapidly after its creation and became the bank of choice for many Malaysians. BBHB set up branches in rural and underserved areas where no other banks existed, and by doing so, the bank contributed to the establishment of many small companies as well as the overall growth of the economy. By the 1980s, BBHB had the largest assets of any Malaysian bank. United as one The biggest period of change and growth in CIMB Group's history began in 2004 with a series of important mergers and acquisitions, culminating in the emergence of the company as a universal bank in 2006. The mergers essentially began when Bumiputra-Commerce Holdings Berhad (BCHB) decided to combine all of its operations into a single universal bank under the CIMB Group. In this period of growth and transition, CIMB Group merged with Bumiputra-Commerce Bank (BCB) and Southern Bank Berhad (SBB) to form a company that could handle virtually all banking needs. Malaysia's prime minister, Abdullah Ahmad Badawi, officially launched the new CIMB Group in September of 2006. The launch marked the conclusion of over 20 years of mergers and acquisitions between scores of financial groups that were now under the control of a single branded company. With all its cash counted, the new CIMB Group saw its total assets grow from MYR 14.7 billion in 2004 to MYR 155 billion by September of 2006. In the same period of 18 months, the company saw its workforce grow by 19,000 people, and increased its market capitalization from MYR 6.3 billion to MYR 19.5 billion. Following the launch of the new CIMB Group, the company spent MYR 80 million rebranding branches of BCB and SBB into CIMB banks and also unveiled a new logo and slogan: "Forward Banking." Divided as three CIMB Group now runs three main divisions. The first division, CIMB Bank Berhad handles consumer banking, business banking and direct banking. The second division, CIMB Investment Bank Berhad, handles investment banking, corporate banking, private banking and asset management. Finally, its third division is CIMB Islamic, which handles Islamic banking. The group also oversees asset management in Malaysia, operating a number of funds in areas including private equity, venture capital, structured investments and real estate. Other businesses under the CIMB Group's wings include life insurance (through CIMB Aviva Insurance Berhad), takaful (Islamic insurance through CIMB Aviva Takaful Berhad) and bancassurance (through an agreement with Allianz Malaysia). The commercial banking arm of the CIMB Group, CIMB Bank Berhad, is the second largest commercial bank in Malaysia as a stand- alone entity, operating a network of 364 branches and 2,100 self-service terminals, and serving over 4.7 million customers. Many of the bank's locations were formerly branches of BCB and SBB before they were absorbed and rebranded after being acquired in 2006. The bank also has international branches in Hong Kong, Singapore and London. CIMB Investment Bank handles all investment banking matters within the group including corporate advisory, equity capital markets and debt capital markets. It has offices in eight countries and territories, including Malaysia, Singapore, Indonesia, Hong Kong, Thailand and Brunei, as well as in the U.S. and the U.K. The investment bank also runs CIMB Private Banking, which caters to high net-worth individuals in Southeast Asia. Malaysia, where the official state religion is Islam, has become a hub for the Islamic banking world in recent years, particularly in Southeast Asia. Islamic banking differs from standard banking in that those practicing it must adhere to Islamic law, known as Sharia. Rules unique to the world of Islamic banking include a ban on interest payments and the prohibition of investing in any businesses thought to violate the basic tenets of Islam. Examples of such businesses might include companies that sell, produce, or trade in goods such as pork, alcohol or pornography, all of which are forbidden under Islamic law. CIMB Islamic Bank Berhad is the Sharia-compliant arm of CIMB Group and was initially launched in 2003 as Commerce Tijari. The bank now boasts over 100 Islamic banking specialists and offers services including investment banking, consumer banking and asset management. Customized for: vinh (
[email protected]) Swing your partner round and round In addition to countless mergers and acquisitions through the years, CIMB Group has also made a policy of forming partnerships to expand even further. The group has entered into scores of long-term strategic partnerships with diverse companies from all over the world to extend its reach and increase profits. One of CIMB Group's more notable partnerships is with Aviva, the world's fifth-largest insurance group. Through the partnership, CIMB Group owns 51 percent of both CIMB Aviva Assurance Berhad and also CIMB Aviva Takaful Berhad, which offer life insurance and Islamic insurance products, respectively. The company is also partnered with Allianz to offer non-life insurance products. Other noteworthy partners of CIMB Group include 7-11, Malaysia Airlines, Daewoo Securities and Singer Malaysia, among many others. 190 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CIMB Group Holdings CIMB Group has also partnered with Bank of Tokyo-Mitsubishi UFJ, one of Japan's largest financial services providers. The alliance was announced in 2006 and allows Japanese companies operating in Malaysia to access CIMB's nationwide network, investment services and knowledge of Islamic finance, as well as giving CIMB clients in Japan access to the Malaysian bank. The year after the partnership was announced, CIMB Group closed its branch in Tokyo (it was the only Malaysian bank in Japan), saying the move was to streamline its business since its partnership with Bank of Tokyo-Mitsubishi UFJ ensured a continued presence in Japan. In the Middle East, CIMB Group is also expanding. In late 2006, the firm began a joint partnership with Yusuf Bin Ahmed Kanoo Holdings WLL (Kanoo Group) to launch the CIMB-Kanoo Islamic Investment Co. BSC. The joint venture focuses on the marketing and distribution of Islamic investment banking products and services, specifically in debt and equity capital markets, corporate banking, asset management and treasury services. CIMB-Kanoo is headquartered in Bahrain, a major center for Islamic banking. Awards and rankings • • • • • • • • • • • Best Private Wealth Management House 2009 (Alpha SEA, 2009) Lifetime Achievement Award, Dato’ Sri Nazir (FinanceAsia, 2009) Best Investment Bank in Malaysia (FinanceAsia, 2009) Best Bond House in Malaysia (FinanceAsia, 2009) Best Broker in Malaysia (FinanceAsia, 2009) Best Foreign Exchange Bank in Malaysia (FinanceAsia, 2009) Best Private Bank in Malaysia (FinanceAsia, 2009) Best Islamic Fund for CIMB-Principal Asset Management Berhad’s CIMB Islamic DALI Equity Growth Fund (Takaful Summit, 2009) Best Domestic Bank in Malaysia (Asiamoney, 2009) Best Domestic Equity House in Malaysia (Asiamoney, 2009) Best Domestic Debt House in Malaysia (Asiamoney, 2009) IN THE NEWS July 2009: New Islamic asset management company CIMB Group and the Principal Financial Group teamed up to create a global Islamic asset management company called CIMB-Principal Islamic Asset Management Sdn Bhd. CIMB Group will combine its Islamic finance expertise with PFG’s 129-year track record and some $300 billion in assets under management. April 2009: Buying Chinese CIMB Group acquired a 19.99 percent stake in Bank of Yingkou Co., becoming the largest shareholder in the Chinese bank. CIMB Group said it paid about RMB348.8 million in cash for the stake. June 2008: Thai time CIMB Group finalized a deal to buy a controlling 42.13 percent share of BankThai for MYR 577.4 million, in a move to establish a larger banking presence in Thailand. At the same time, CIMB Group also offered to buy the remaining shares of the bank, called a mandatory general offer (MGO), bringing the total purchase price up to a whopping MYR 1.9 billion. BankThai is the ninth-largest bank in Thailand, and has 147 branches throughout the country. The Thai bank also operates asset management, stock broking and insurance subsidiary companies. Customized for: vinh (
[email protected]) CIMB Group won a hotly contested bidding war, reportedly between 14 different financial institutions including both international and local Thai companies, to purchase the bank. According to a statement released by the firm, the sale offered one of the last remaining opportunities to purchase a controlling share of a Thai bank. CIMB Group purchased the shares from the Thai Central Bank, which owned shares of BankThai through the Financial Institutions Development Bank. The purchase price was nearly three times the book value of BankThai as of March 2008. While the purchase of ThaiBank certainly gave CIMB Group a greater stake in the world of Southeast Asian banking, not everyone was so impressed by the acquisition. Almost immediately after the sale was announced, financial analyst Standard & Poor's (S&P) put CIMB Group on its negatively rated CreditWatch, concerned that the financial position of ThaiBank had the potential to hurt the Malaysian banking giant. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 191 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition CIMB Group Holdings Months later, S&P's fears about CIMB Group seemed to have been allayed as it returned the company's credit rating to "stable" in September 2008. (As of August 2009, CIMB Group owned a controlling 93 percent of Thaibank.) GETTING HIRED Merge with the company that loves mergers! CIMB Group runs an extensive and information-packed careers web site in English at www.cimb.com/careers. The site contains sections covering all sorts of things, including corporate culture, work environment and benefits. For secondary school graduates and experienced hires, job vacancies are grouped by investment banking, consumer banking, and Islamic banking. Asset management opportunities are also possible for secondary school graduates. According to the site, the company is looking for applicants who are, "multi-disciplined persons with high intelligence, energy and integrity." Think you're up to the challenge? The careers site allows you to submit a resume online. Alternately, you can apply for positions by email at
[email protected], by fax at +60-3-2084-9888, or by regular mail to Group Human Resources, c/o Director of Group Corporate Resources, 10th Floor Bangunan CIMB, Damansara Heights, 50490 Kuala Lumpur, Malaysia. Interns and trainees Internships are available with CIMB Group for candidates in their second year of university. The company seeks interns who have strong academic records and are actively involved in extracurricular activities that demonstrate "a positive attitude and a strong desire to learn, leadership capabilities, ability to articulate and communicate well, and ability to work well independently and in a team." Internships run from two to six months, and applications are accepted year-round. CIMB Group also hosts a management trainee program. The CIMB Complete Banker Programme (TCB), is a comprehensive 12-month training (broken apart into two months of classroom training, followed by a 10-month on-the-job rotation) that "covers all aspects of universal banking, both conventional and Islamic, ranging from consumer banking and investment banking to asset management." Overseas attachment may follow for selected trainees. This program is open to fresh graduates (or those with less than a year's experience) from both Malaysian and foreign universities. More information is available on the careers site. To apply for an internship or the TCB program, fill out the online application form. You can also send your resume and details by email to
[email protected], by fax at +60-3-2095-8919, or by regular mail to Group Human Resources, c/o Director of Group Corporate Resources, 10th Floor Bangunan CIMB, Damansara Heights, 50490 Kuala Lumpur, Malaysia. Customized for: vinh (
[email protected]) 192 © 2009 Vault.com Inc. CITIC SECURITIES CO., LTD. 3/F Capital Plaza No. 6 South Xinyuan Road Chaoyang District Beijing, 100004 China Phone: +86-10-8458-8903 Fax: +86-10-8458-8151 www.cs.ecitic.com/en/index.htm THE STATS Employer Type: Public Company Ticker Symbol: 600030 (SSE) Chairman: Wang Dongming Total Assets: RMB 136.7 billion (FYE 12/08) Net Income: RMB 7.3 billion No. of Employees: 11,910 No. of Offices: 166 LOCATIONS IN ASIA PACIFIC Beijing • Guangzhou • Hong Kong • Shanghai • Shenzhen Other major cities in China KEY COMPETITORS BOC International China Galaxy Securities China International Capital Corporation DEPARTMENTS Asset Management Proprietary Trading Securities Brokerage Securities Underwriting EMPLOYMENT CONTACT Email:
[email protected] www.cs.ecitic.com/en/JoinUs.htm THE SCOOP World dominance China International Trust and Investment Corporation Securities, better known as CITICS, is one of the largest investment banks in the world as measured by market capitalization. IT has four main business segments: securities brokerage, securities underwriting, proprietary trading and asset management. Each section has its own unique set of responsibilities. The securities brokerage handles corporate clients, trading equities, funds, treasury bills and corporate bonds. In the proprietary trading division, these same entities are traded for the benefit of the company. The securities underwriting division underwrites equities, convertible bonds and funds and also provides sponsorship for equities, funds and bonds. CITICS is the largest securities house in China based on total capital, with total assets of RMB 136.7 billion at the end of 2008. Besides parent company CITIC Group, CITIC Securities' main shareholder is China Life Insurance Company, which purchased 500 million shares of the company at RMB 9.29 a piece in June 2006. China Life Insurance held 12.3 percent ownership of CITIC as of mid-2009. Sea of subsidiaries Customized for: vinh (
[email protected]) CITIC Securities also does business through a Hong Kong-based subsidiary, CITIC Securities International (formerly CITIC Securities Hong Kong), in which it owns an 88 percent stake. CITIC Securities International serves as a gateway to connect the larger company with overseas capital markets and has three wholly-owned subsidiaries: CITIC Securities Brokerage Hong Kong, CITIC Securities Futures Hong Kong and CITIC Securities Corporate Finance Hong Kong. Other CITIC-owned subsidiaries include: China Securities Co., Ltd., CITIC-Kington Securities Co., Ltd., CITIC Wantong Securities Co., Ltd., CITIC Securities International Company Limited, China Asset Management Co., Ltd., CITIC Fund Management Co., Ltd., CITIC Futures Co., Ltd., CITIC Private Equity Funds Management Co., Ltd., Gold Stone Investment Ltd. and S&P/CITIC Index Information Service (Beijing) Co. Limited. In total, the entire CITIC Securities network, inclusive of the parent firm and its subsidiaries, spans 185 securities brokerage branches, 43 securities service branches and eight futures brokerage branches throughout Greater China. 193 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citic Securities Co., Ltd. Getting off the mainland CITIC has reportedly been mulling over launching an IPO on the Hong Kong Stock Exchange. To do so, the securities firm would have to get approval from its shareholders and would have to meet strict requirements to enter the Hong Kong exchange, including a fee of 10 percent of net proceeds which would go toward a pension fund in the territory. CITIC's chairman, Wang Dongming, told the Financial Times in November 2007 that listing on the Hong Kong market "would help us internationalize our mindset. If you list in Hong Kong, you become real." As of mid2009, CITIC’s listing in Hong Kong has yet to materialize. Awards and rankings • • • • • • • • No. 1 Underwriter in China (The Securities Association of China, 2009) China's Best Bond House (Asiamoney, 2008) China's Best Equity House (Asiamoney, 2008) Best Local Brokerage (Asiamoney, 2008) Best Brokerage House in China (FinanceAsia, 2008) Best Bond House in China (FinanceAsia, 2008) Best Local Investment Banking Team (New Fortune, 2008) Best Local Research Teams (New Fortune, 2008) IN THE NEWS April 2009: IPO of the year In April 2009, it was announced that CITICS, along with JPMorgan Chase and UBS AG, are managing the IPO of Chinese aluminum manufacturer Zhongwang Holdings. According to an article in Bloomberg, the metal manufacturer is expected to have the largest IPOs worldwide in 2009, with plans to raise HK$12.32 billion, offering approximately 1.4 billion shares in Hong Kong for HK$6.80 to HK$8.80 each. March 2009: Journey to the West CITICS journeyed abroad in March 2009, setting up a partnership venture with US-based boutique investment bank Evercore Partners. The cooperative entity, named CITIC Securities International Partners, will work on M&A advisory deals between China and international markets, as well as running a private equity fund focused on the Chinese market. Donald Tang, the former chairman of Bear Stearns Asia, the fallen investment bank in which CITICS nearly made a major investment in 2007, was tapped to run CITICS’ joint venture with Evercore. March 2009: Insuring a stock decline It’s never a good sign when a life insurance company loses faith in you. In March 2009, China Life Insurance decreased its stake in CITICS to 12.3 percent from 17.3 percent. After the decrease, CITICS’ stock price fell for three consecutive days. October 2008: Shaving pay, not jobs As the largest underwriter of Chinese stock sales, CITICS had a rough time in 2008 as the global economic crisis caused the cancellation of many planned acquisitions. In October 2008, the company announced that it planned to cut salaries by 15 percent on average in an effort to cut costs. However, a firm representative also stated at the time that CITICS was not planning any significant layoffs. Customized for: vinh (
[email protected]) March 2008: Golden calf worship Talk about an idolatrous acquisition; In August 2007, CITICS bought China's Shenzhen Gold Bull Futures Company for RMB 100 billion in order to expand its business into the futures trade. However, taming the gold bull apparently wasn’t enough action to satisfy CITICS’ hunger for expansion. In March 2008, the securities firm ventured into the direct equity investment business, pumping over RMB 3 billion in capital into a new subsidiary named Jinshi Investment Company. 194 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Citic Securities Co., Ltd. CITICS’ investment consulting and mutual fund business received a boost as well when it obtained government approval in June 2008 to establish an industrial investment fund management operation in Mianyang, the second-largest city in the Sichuan Province of China. The new company launched the same month with RMB 100 million in registered capital. March 2008: Bear trap The once mighty and now collapsed New York-based investment bank Bear Stearns had a really bad year in 2007. Two of its hedge funds imploded as a result of fallout from the subprime crisis in the U.S., costing the firm US$1.6 billion in write-downs. Earnings and profits were down, and the firm was losing millions as it pondered how it could revive itself amidst a market that was spiraling out of control. The answer came from an unlikely place: China. For years, American companies had been making inroads into the burgeoning Chinese market by buying minority stakes in Chinese banks. Now, for the first time ever, a Chinese firm was turning the tables to bail out a Wall Street giant. CITICS and Bear Stearns signed an agreement in October 2007 that they would swap stakes in one another. Under the agreement, CITICS planned to receive securities that would convert to a 6 percent equity stake in Bear Stearns for US$1 billion. CITICS would also receive the rights to buy as much as 3.9 percent of the investment bank, capping out its minority investment at 9.9 percent. In return, Bear Stearns planned to invest US$1 billion in CITICS, giving it a 2 percent stake in the Chinese company, with the option to buy 5 percent more. The investment would have given Bear Stearns a much-desired foothold in the Chinese securities market, which had only previously been broken into by a handful of American companies, including Bear's main competitors, Goldman Sachs and Merrill Lynch. In February 2008, before the deal had commenced, the two firms sat down to renegotiate terms of the partnership because the share prices of both had fallen by almost 50 percent since the arrangement was first announced. Disaster struck for Bear, however, as its subprime problem spiraled out of control, and the New York brokerage collapsed the following month. CITICS was able to pull out of the deal after the collapse, with the company issuing a statement in March 2008 that it had officially terminated all cross-investment and joint venture negotiations with Bear Stearns, but that it would continue looking for cooperative opportunities overseas. GETTING HIRED Open and shut You can check for open positions by going to the “Join Us” link on CITICS' website (at the time of writing, there were no openings, but the firm recommends returning to the site later or sending a CV to
[email protected]). Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 195 COMMONWEALTH BANK GROUP Level 7, 48 Martin Place Sydney, NSW 1155 Australia Phone: +61-2-9378-2000 Fax: +61-2-9378-3317 www.commbank.com.au THE STATS Employer Type: Public Company Ticker Symbol: CBA (ASX) CEO & Managing Director: Ralph Norris Revenue: AU$37.61 billion (FYE 6/09) Net Income: AU$4.72 billion No. of Employees: 39,600 No. of Offices: 1,000 LOCATIONS IN ASIA PACIFIC Australia • China • Fiji (operating as Colonial) • Hong Kong • Indonesia • Singapore (also operating as First State Investments) • India • Japan • New Zealand (also operating as ASB Bank and Sovereign) • Vietnam KEY COMPETITORS ANZ National Australia Bank Westpac Banking DEPARTMENTS Agribusiness Broking Services Business Banking Corporate Financial Services Funds Management Institutional Banking and Markets Insurance Investment Services Private Client Services Retail Banking Superannuation PLUSES • "The people are very approachable" • "Great hours" MINUSES • In Australia, "Sydney-centric" • "Occasional stigma of working for a bank" this year EMPLOYMENT CONTACT www.commbank.com.au/careers THE SCOOP Brand recognition Commonwealth Bank of Australia (CBA) is one of Australia's leading financial institutions, and the second-largest publicly listed company in Australia behind BHP Billiton. Commonwealth provides integrated financial services, including retail, business and institutional banking, funds management, agribusiness, superannuation, financial planning, insurance, and investment and broking services. Aside from CBA, the Commonwealth Bank Group owns brokerage Commonwealth Securities, fund manager Colonial First State and ASB Bank, which provides banking, investment and financial services in New Zealand. Customized for: vinh (
[email protected]) IWL Limited, an Australian wealth management company and online brokerage, was acquired by Commonwealth in late 2007 for AU$373 million—expanding Commonwealth's broking business immensely. Through its CommSec division, Commonwealth controls over 50 percent of Australia's online trading market. With over 1,000 branch offices, the bank's reach extends to Europe and the Asia Pacific region as well, with significant offshore holdings in Indonesia, Fiji, China, Hong Kong and Singapore, and a presence in Japan, Vietnam and India. As one of the most recognizable brands in the Australian financial services industry, Commonwealth has the largest customer base of any Australian bank and the country's most comprehensive financial services distribution network. In June 2009, the end of the firm's fiscal year, 196 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Commonwealth Bank Group Commonwealth boasted over AU$620 billion in assets under management—a massive increase on the previous year, primarily due to an AU$100 billion increase in net loans. Open for business The Commonwealth Bank was initially founded under a piece of legislation called the Commonwealth Bank Act, enacted by the Australian government in 1911. The act gave the bank the power to conduct both savings and general banking, backed by the federal government. At the time, Commonwealth was the only bank allowed to handle both of these functions concurrently. The bank formally opened on July 15, 1912, with 12 employees in Melbourne as well as a large number of postal outlets in Victoria. During the following year, branches were established in several other cities in Australia. In 1916, the bank relocated its headquarters to Sydney, where it has remained ever since. Commonwealth Bank was actively involved in World War II for the federal government and as a personal banker for enlisted men. Post-war legislation provided financing for activities such as housing construction and industrial development. Expansion continued after World War II as well. A total of 10 branches were opened in 1946, followed by 61 new branches in 1947. Empty nest syndrome In 1960, the government stepped in to separate the Commonwealth Bank's functions, and the Reserve Bank of Australia was formed to take over central banking activities. Banking continued to develop throughout the mid-20th century, and Commonwealth went through a number of restructurings. In 1989, Commonwealth acquired a 75 percent stake in New Zealand's ASB Bank, a major acquisition at the time. In spite of these changes, the government retained its tight grasp on the bank until 1991, when the bank began a three-stage process of privatization. First, in July and August 1991, approximately 30 percent of the bank's shares were made available to the public. A further 20 percent was released in late 1993, for a total just under 50 percent. The government's final 50.4 percent stake was put on public offer in July 1996. During this privatization, Commonwealth was also restructured into three divisions: personal banking, business banking and banking operations. In 2000, the bank officially merged with rival Colonial Limited after approval from the Supreme Court of Victoria. The move into Asia took a bit longer, as it was not until 2005 that Commonwealth joined forces with Indonesia's PT Bank to create the joint venture PT Bank Commonwealth. In the same year, Commonwealth formed strategic alliances with a number of Chinese banks, including Jinan City Commercial Bank and Hangzhou City Commercial Bank. Represented in China Commonwealth may be one of the largest Australian lenders, but it also maintains a sizable offshore presence that continues to grow as neighboring economies flourish. In China, the bank holds a 19.9 percent stake in Hangzhou City Commercial Bank, one of the five largest commercial city banks in the mainland. The purchase was completed in 2005 and set Commonwealth back about US$78 million, an investment that has proved highly lucrative due to the expansion of the Chinese market over the past few years. The bank also has a strategic relationship with Jinan City Commercial Bank which, at the time of the 11-percent acquisition by Commonwealth in 2004, was the eighthlargest commercial city bank in China. Awards and rankings • • • • • • • Best Bank in Australia (Global Finance, 2009) Safest Banks in the World—No. 12 (Global Finance, 2009) Banking Website of the Year (Money, 2009) Excellence in Internet Banking (Asian Banker, 2009) Best Career Development Program (Australian Banking and Finance Awards, 2009) Employer of Choice for Women (Equal Opportunity for Women in the Workplace Agency, 2009) Community Contribution Award (Australian Business Awards, 2009) Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 197 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Commonwealth Bank Group IN THE NEWS August 2009: Looking to expand in Asia In an interview with Australian Broadcasting Corporation in August 2009, CEO Ralph Norris unveiled expansion plans for the bank throughout Asia, especially in Indonesia. "We opened our 61st branch in Indonesia last week, and we'll open another 15 branches in Indonesia before the year is out." On top of that, Commonwealth is looking to India and Vietnam for growth down the line, as Norris continued: "We've just recently received our banking license for India and last year our banking license in Vietnam. We have had a number of organic initiatives underway in parts of Asia, so we're wanting to look at any acquisitions that make sense and strengthen our business." August 2009: Changing of the guard Upon the announcement that John Schubert would be retiring in February 2010, Commonwealth held a vote and chose its new chairman. Formerly serving as the CEO for Australian transport and logistics firm Brambles, David Turner, who has been on Commonwealth's board since 2006, was named to succeed Schubert. Schubert remarked in a statement, "The selection of David Turner as the group's new chairman was carefully undertaken by the board over a period of several years, and my resignation accords with the board's corporate governance guidelines which nominate five years as the preferred term for the chairman." March 2009–June 2009: Weathering the storm After the thundering collapse of Queensland financial planning firm Storm Financial, questions swirled over Commonwealth's involvement with Storm's clients, approximately 2,500 of whom were extended margin loans by the bank. Commonwealth CEO Ralph Norris initially took a hardline stance in February 2009, saying that the situation Storm "got themselves into is their responsibility." However, Norris later admitted in June 2009 that "the position in which some Storm Financial clients find themselves, while not caused directly by the bank, involves the bank to some degree." Norris continued, "In some cases, we have identified shortcomings in how we lent money to our customers involved with Storm Financial. We are not proud of our involvement in some of these issues and we are working toward a fair and equitable outcome for our affected customers." Part of the fix was to suspend repayment obligations for Storm customers through the end of August 2009, which was subsequently extended for another month. Though Commonwealth could hardly be asked to shoulder the blame for Storm Financial's advising, reports emerged that mistakes had been made on the bank's side, including frequently extending loans beyond the financial means of numerous Storm customers—many of whom subsequently lost their life savings or their homes in the collapse. In response to a parliamentary inquiry, Commonwealth said that "there was clear evidence that Storm constantly pressured our staff," and admitted that "on occasion we lost objectivity." April 2009: Establishing communication After a bidding war amongst Australian telecommunications firms, Australian telecom Telstra inked an AU$1 billion deal with Commonwealth in April 2009 to manage the bank’s telecom and data services over a ten-year period, beating out competitors such as British Telecom, GenI and Optus. Telstra will use its Next IP network management system to aid Commonwealth’s AU$580 million, four-year program to update and synchronize its digital infrastructure, modernizing everything from local branches to contact centers and ATMs. The updates are sorely needed in some areas, as a few of Commonwealth’s systems date back to the 1960s. January 2009: New year brings new structure Customized for: vinh (
[email protected]) Ringing in the new year, Commonwealth announced in January 2009 that it would be restructuring its Premium Business Services division. Under the new structure, business banking and corporate banking services (including the Agribusiness and Private Client Services divisions) were separated from the Institutional Banking and Markets areas. On top of the restructuring, Ian Narev was announced as the new head for the business and private banking segments. December 2008: Capitalizing during the crisis Shortly after rival financial services provider Westpac raised AU$2.5 billion in December 2008, Commonwealth rallied with a capital boost of its own. Through a share placement underwritten by UBS Investment Bank (after terminating an agreement with Merrill Lynch), Commonwealth managed to raise an impressive AU$2 billion. Just a week prior, Dow Jones had reported that Commonwealth had raised a 198 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Commonwealth Bank Group further AU$2.7 billion from bond sales. In a statement, the bank declared that it planned to capitalize on “organic growth opportunities in the current market.” The firm also said that it expected its balance sheet to remain strong into 2009 thanks to “international banks reducing their exposure to the Australian domestic market.” October–December 2008: Go west, young man, go west Commonwealth agreed to purchase Bank of Western Australia (BankWest) and insurance firm St. Andrews Australia from Scottish financial services giant HBOS in October 2008. The AU$2.1 billion deal enabled Commonwealth to strengthen its presence in the western part of Australia, a region with rapidly growing business opportunities. At the time of Commonwealth’s purchase, HBOS, one of the most prominent U.K. mortgage lenders, was in the process of being taken over by British financial stalwart Lloyds TSB Group. (The successful January 2009 takeover of HBOS saw Lloyds undergo a name change to Lloyds Banking Group.) Commonwealth's transaction with HBOS, completed in December 2008, helped the Australian lender cement its status as one of the leaders in Australia’s mortgage market. August 2008: Hello, Ho Chi Minh City Commonwealth opened its first Southeast Asian branch in August 2008, with an office Ho Chi Minh City, hoping to capitalize on the strength of Vietnam’s economy. In recent years, Vietnam's economy has grown steadily with the country's GDP growth rate estimated at 6.2 percent for 2008. Commonwealth has had a presence in Hanoi for 14 years, but the opening of a branch in Ho Chi Minh City represents a significant move for the firm. GETTING HIRED Be alert In the Asia Pacific region outside of Australia, Commonwealth has international financial services in New Zealand, Fiji, China, Hong Kong, India, Indonesia and Vietnam. Wealth management operations span China, Hong Kong, Indonesia and Singapore as well as the United Kingdom. Meanwhile, premium business service jobs are available in global markets including Hong Kong, Beijing, Shanghai, Singapore, Tokyo and Hanoi. Commonwealth's careers page at www.commbank.com.au/careers allows candidates to search for positions. Job-seekers can also sign up on the site for job alerts, which will notify candidates by email when a position that matches their criteria is posted. Applicants can also save their information on the site for future positions. Competitive process After prospective candidates have completed the application form and submitted their CV, successful candidates are invited to cognitive online testing and, if candidates move on to the next stage, they are then invited to attend an "assessment day" which includes a combination of individual and team-based activities. The firm also offers a 10-week summer internship program called "SummerConnect." A recruiting schedule at universities across Australia is available from the careers page. In general, internships are viewed as important by insiders, with one reporting that “almost everyone who does the summer vacation programs is hired into the graduate program.” According to another source, summer internships give students “a glimpse of the firm before committing to it. Additionally, it allows students to acclimatize from students to business professionals.” Customized for: vinh (
[email protected]) OUR SURVEY SAYS A lot of love Commonwealth Bank Group has a culture that is reported to be “quite laid back and flexible,” but insiders admit that a “strong work ethic is also evident.” The “people are excellent” at the firm, say sources and above all else they are “friendly and very supportive,” while the firm “focuses on their development.” Says one staffer: “Everyone seems happy. They are welcoming, happy and committed to succeeding, while Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 199 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Commonwealth Bank Group focusing on doing a good job without forgetting about their staff.” Another contact explains, “It is an encouraging and supportive environment,” and though “everyone works hard,” there is “socialization between all groups.” Employees “work hard and play hard,” and one source describes Commonwealth as “fair and accountable.” Sources at the bank are happy to tell us that their “managers are great.” “Managers are very happy and willing to set time aside to teach and give advice and feedback,” reports an insider, while a fresh graduate agrees, saying, “I have no complaints. I have been treated very well and very reasonably. They are always understanding and supporting. It’s also a huge bonus that they are really nice people.” “Even really highup people on my floor remember my name and ask how I am doing,” attests another company contact. Flexi-hours Part of this high satisfaction may be the hours at Commonwealth, which are described by a number of sources as “very relaxed.” “Provided you complete all your work, the managers are not too strict on the hours,” says a respondent. Another colleague explains, “The hours are very flexible. One day, I had to wait at home for the removal people to drop my stuff off, and my boss was very understanding.” Most employees attest to working between 40 and 50 hours a week, with hours generally running from “8 a.m. to 5 p.m.” “If you start earlier, you finish earlier, and if you start later, then you finish later—or you just do the hours needed to get the job done.” Fill your brain The training is described as “extensive” at Commonwealth, and insiders rate it highly, commenting that it is of a “very high level” with “much on offer.” “In a graduate position, I have been given at least 100 hours of training to do for the year, mostly in certain technical areas,” reports a source. A colleague adds that for “new starters, the training is great with continued training available.” Training options available include both “through the intranet and externally.” Banking benefits On the whole, insiders give reasonable marks for the firm’s compensation structure. One source says, “It’s around average salary, but what they offer in terms of support, structure and career options far outweighs anything I’ve heard other firms offer.” This support includes “feefree accounts, half-fees on credit cards and half-interest rates on credit cards, low-interest loans, interest-free loans to pay for public transport for a year and four weeks holiday a year.” There is also an “employee share acquisition plan for staff who have been part of the group for over a year.” The graduate program is also said to offer “above-average” salaries “compared to other graduate programs.” To top that all off, insiders also tell us that the company’s fridges are kept "well stocked" with “fresh fruit every day.” Good gender mix At Commonwealth, sources say there's a fair balance with regards to gender. “Women make up nearly close to half the firm” and there are “some women in senior positions.” Insiders also attest that the firm supports “women-only networking opportunities and forums” and is pushing for more women as is “evident in the recruitment through the graduate program.” One source gushes, “I have never seen a company that is so flexible for working women. New mothers get three months maternity leave, flexible working hours and there is also a child care facility.” Sailing through Like most banks, while Commonwealth may be “weaker at this time due to the global financial crisis,” it is still considered to be “one of the safest and most well regarded banks in the world,” say sources at the firm. Morale appears to be high amongst employees at the bank; sources expect that “the firm has strong capital and will ride through the economic crisis without laying off large numbers of staff.” As one banker puts it, the firm has a “great outlook for 2009 and beyond.” “We look very strong at a global level, and I’m very excited about my future here,” remarks a respondent. Customized for: vinh (
[email protected]) 200 © 2009 Vault.com Inc. DAIWA SECURITIES GROUP Grand Tokyo North Tower 9-1, Marunouchi 1-chome Chiyoda-ku Tokyo 100-0005 Japan Phone: +81-3-5555-1111 www.daiwa-grp.jp THE STATS Employer Type: Public Company Ticker Symbol: 8601 (TYO) President & CEO: Shigeharu Suzuki President, Daiwa Securities SMBC: Shin Yoshidome Net Income: JPY 9.88 billion (FYE 3/09) Total Revenue: JPY 413.93 billion No. of Employees: 15,419 No. of Offices: 146 LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Japan • Korea • Philippines • Singapore • Taiwan • Thailand • Vietnam KEY COMPETITORS DEPARTMENTS Asset Management Corporate Financing Securities Brokerage Securities Trading Venture Capital Mitsubishi UFJ Financial Group Mizuho Financial Group Nomura Holdings Sumitomo Mitsui Banking Corporation EMPLOYMENT CONTACT Email:
[email protected] www.daiwa-grp.jp/recruit (in Japanese) THE SCOOP From the old school With over 100 years in business, Daiwa Securities Group is Japan's second-largest securities firm next to Nomura Holdings. Headquartered in Tokyo, the group is represented internationally with branches across Asia, Oceania, the Middle East, Europe and North America. Daiwa operates through numerous subsidiaries, offering a wide variety of financial services including retail securities, wholesale securities, asset management (both investment trust and investment advisory), research and system consulting, venture capital and private equity investment, and commercial property management. Investment banking services are primarily handled through subsidiary Daiwa Capital Markets (formerly known as Daiwa Securities SMBC), a joint venture launched in April 1999 with Japan-based Sumitomo Mitsui Financial Group (SMFG), which operates subsidiary Sumitomo Mitsui Banking Corporation (SMBC). Daiwa owns 60 percent of the venture, and Sumitomo Mitsui owns 40 percent. Through the venture, the firm operates in a number of areas including global equity products; fixed income, currency and commodities; structured finance; corporate finance; strategic advisory (M&A); IPOs; and capital markets. Customized for: vinh (
[email protected]) Founded in 1959, Daiwa Asset Management handles a variety of the group's asset management operations, including fund management (both in Japan and globally), equity research and management, equity trading, and fixed income and money market services. The subsidiary has overseas offices in Hong Kong, Singapore, New York and London, as well as a representative office in Shanghai. Brokin' bills and strokin' tills Daiwa's roots in Japan stretch back more than 100 years. Japanese entrepreneur Sibei Fujimoto launched a bill-brokering business in 1902, which soon became known as Fujimoto Bill Broker and Bank. Business blossomed as Japan's economy grew over the next decades. In the 201 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Daiwa Securities Group late 1920s, as numerous banks and securities firms collapsed, Fujimoto continued to thrive. In compliance with new Japanese financial regulations following the 1929 crash of the New York stock market, the firm established the Fujimoto Bill Broker & Securities Company in 1933. Underwriting and brokerage continued upon the switch. However, as Japan become engulfed in turmoil, in the midst of World War II, Fujimoto merged with Nippon Trust Bank in 1943 and switched to the moniker Daiwa Securities. In the post-war halt on securities trading on the Japanese exchanges, Daiwa survived by trading in non-defense-related securities until restrictions were lifted. Daiwa entered the investment trust business in 1951, and the business grew so large that the firm established a separate company in 1959— the Daiwa Investment Trust and Management Company (today's Daiwa Asset Management). Daiwa expanded overseas in the next few decades, opening its first international office in London in 1964. The early 1970s brought offices across Europe, as well as those in Hong Kong and Singapore. Bond sales skyrocketed, and these "samurai bonds" caused a massive amount of international interest on into the mid1980s. However, when the Japanese government deregulated capital markets in the mid-1980s, Daiwa faced stiff competition from U.S. investment banks operating in Japan. In the wake of Japan's financial deregulation in the late 1990s—as well as a massive corporate racketeering scandal in 1997 which caused eight executives to resign and left Daiwa's trading activities suspended for four months—the company adopted a holding company structure in 1999, becoming the first listed company in Japan to do so under the new regulations. Under the new holding structure, Daiwa Securities handled retail businesses, while the firm established Daiwa Securities SMBC to handle wholesale operations. Through further restructuring, the firm announced plans to shut down a number of its overseas offices and focus on core businesses, including equities, Japanese-related international bonds, investment banking, asset securitization, and asset management. IN THE NEWS November 2009: Joining forces in Vietnam Daiwa SMBC Capital and SSI Asset Management, subsidiary of Saigon Securities, combined forces to create an unlisted-share investment fund that will invest in high-growth companies in Vietnam. Daiwa SMBC and SSIAM will jointly manage the fund. November 2009: Name change Beginning on January 1, 2010, Daiwa’s investment banking subsidiary Daiwa Securities SMBC will be known as Daiwa Securities Capital Markets. The name change was approved by Daiwa’s board of directors. April 2009: Cordially yours? At the end of March 2009, global financial giant Citigroup announced that it would be entertaining formal offers for Japan's third-largest brokerage, Nikko Cordial. One of Citi's largest overseas acquisitions, Nikko Cordial was acquired by the firm over several years for a price tag of about US$13 billion. The divestment marked part of Citi's refocusing strategy to tighten up its balance sheet by selling off non-core assets prior to U.S. government stress tests for banks. Citi had conducted informal talks with a number of potential bidders in previous months, including Japan's three largest banks. In February 2009, it had been reported that Daiwa Securities was looking at a possible joint bid with Sumitomo Mitsui Financial Group (SMFG). Other major bidders for Nikko Cordial are expected to include Mitsubishi UFJ Financial Group and Mizuho Financial Group. According to Japan's Sankei newspaper, a successful bid for Nikko Cordial would mean that Nomura would lose its top spot to Daiwa and SMFG in total assets under management. Customized for: vinh (
[email protected]) March 2009: Private equity joint venture Daiwa Securities SMBC Principal Investments and Quantum Leaps combined forces to create a private equity joint venture in Japan. The venture will be named Daiwa Quantum Capital Limited, which plans to raise $307 million to invest in Asia-based technology companies. December 2008: Third time's the charm News emerged in October 2008 that Japanese electronics giant Sanyo Electric was being eyed by rival Panasonic Corporation for a takeover. Panasonic entered talks with Sanyo's three top shareholders—Daiwa Securities SMBC, Japanese bank Sumitomo Mitsui Banking Corporation 202 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Daiwa Securities Group (SMBC), and global financial juggernaut Goldman Sachs—to acquire their 70 percent stake in Sanyo. According to the Nikkei newspaper, while the two Japanese firms initially agreed to Panasonic's offer, Goldman held out, rejecting the first two deals. However, in mid-December 2008, Goldman finally agreed to the terms on the third offer. The deal, from which the three firms received about JPY 560 billion in total from Panasonic, marks the largest acquisition in Japan's consumer electronics sector to date. July 2008: Brokering in Brazil Daiwa Securities signed a memorandum of understanding in July 2008 with Brazilian financial firm Banco Itau Holding Financeira to form a business partnership. Co-operating in asset management, buy and sell orders for stocks, investment banking, economic and corporate research, and personnel exchange, the two firms also have plans to develop investment trusts for sale to Japanese investors. The investment trusts are expected to cover Brazilian-real-denominated bonds and South American stocks. June 2008: Restructuring some subsidiaries Some changes were afoot for Daiwa in June 2008, as the group announced a few restructuring moves following the appointment of its new board chairman. First, research and consulting subsidiary Daiwa Institute of Research would be transitioned into two wholly owned subsidiaries based in Tokyo—one focused on economic research and consulting, and the other focused on systems integration and consulting—effective October 2008. Following that, it was announced that subsidiary Daiwa Securities Co. Ltd. would be switched over to a holding company structure. Finally, it was announced that a subsidiary (Netherlands-based Daiwa Europe Finance) and a sub-subsidiary (Luxembourg-based International Bond Fund Management Company) would be liquidated during the fiscal year. This all followed a March 2008 announcement that Hong Kong-based futures trading subsidiary Daiwa Securities SMBC Futures (Asia) Limited would be dissolved by the end of 2008. June 2008: New guys at the top Daiwa Securities SMBC ushered in new leadership in April 2007, when its former president, Tatsuei Saito, had to step down due to health concerns. Saito was replaced in April by former senior managing director Shin Yoshidome, an avid chess player who has been with Daiwa since 1974 and hopes to keep the investment banking arm near the top of the charts. Yoshidome also serves as the vice president and chief operating officer for Daiwa Securities Group. About a year later, Daiwa Securities Group appointed a new chairman of the board in June 2008. Akira Kiyota, formerly the group's vice chairman, replaced Yoshinari Hara, who resigned in the same month. Kiyota has been with Daiwa since 1969, and formerly served in a number of areas for the company, including as president of Daiwa Securities SMBC when it was known under a different name. April 2008: Investment banking in India After incorporating a subsidiary in Mumbai in October 2007, Daiwa Securities SMBC began full-on Indian operations in April 2008. The brokerage and investment banking venture, Daiwa Securities SMBC India Private Limited, handles a wide range of services. On the brokerage side, this includes cash, future and options listed on the Indian securities exchanges, while on the investment banking side, the venture handles underwriting of Indian equity and debt securities as well as M&A business. GETTING HIRED Can you read Japanese? Customized for: vinh (
[email protected]) Unfortunately, Daiwa has very little English-language hiring information. If you can read Japanese, the firm's recruitment page is located at www.daiwa-grp.jp/recruit. This includes a link to career information for Daiwa Securities SMBC. Contact information for Daiwa Securities SMBC's offices in Tokyo, Osaka and Nagoya can be found in English at www.daiwasmbc.co.jp/english/company/locations.html. However, your best bet might be to send off a resume to the firm's careers address by emailing
[email protected]. For Daiwa Securities SMBC Hong Kong, an English-language recruitment page is available at www.daiwasmbc.com.hk/career.html. The page recommends sending your CV and a cover letter listing your "areas of interest and professional experiences" to the Head of Human Resources, Daiwa Securities SMBC Hong Kong Limited, Level 26 One Pacific Place, 88 Queensway, Hong Kong. Alternately, you can contact the HR department by phone at +852-2525-0121, by fax at +852-2848-4077, or by email at
[email protected]. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 203 GF SECURITIES (GUANGFA SECURITIES) 38/F, Metro Plaza 183 North Tianhe Rd. Guangzhou, 510075 China Phone: +86-20-8755-3587 Fax: +86-20-8755-3583 www.gf.com.cn THE STATS Employer Type: Private Company Chairman: Wang Zhiwei President: Li Jianyong Net Profit: RMB 8.18 billion (FYE 12/07) No. of Employees: 2,500 No. of Offices: 100 LOCATIONS IN ASIA PACIFIC Beijing • Guangzhou • Shanghai • Shenzhen • Other major cities in China KEY COMPETITORS BOC International China Galaxy Securities China Merchants Securities Guotai Junan Securities Haitong Securities Ping An Securities DEPARTMENTS Asset Management • Bond Underwriting Brokerage • Equity Underwriting • Financial Consulting • Investment Banking • International Finance • Mergers & Acquisitions • Research & Consulting EMPLOYMENT CONTACT
[email protected] THE SCOOP Good times for Guangfa Guangfa Securities (commonly known as GF Securities) had its best year ever in 2007, as waves of IPO frenzy took over the Chinese market. Securities traders in China earned a whopping RMB 79.36 billion in net profits overall, and GF Securities topped them all with a net profit of RMB 8.18 billion. The profits represented an astounding 373 percent rise over the same period in 2006, and no securities traders in the country suffered losses throughout the year. However, with prosperity comes competition. As it looks to the future, GF Securities finds itself vying for contracts with international heavyweights such as UBS and Goldman Sachs. Headquartered in Guangzhou, GF Securities is the fifth-largest brokerage in China. The firm's main businesses include underwriting, mergers and acquisitions (M&A), brokerage, proprietary trading and asset management. In 2003, the firm launched a fund management subsidiary called GF Fund Management with a capitalization of RMB 100 million. The Securities Association of China has consistently ranked GF Securities in its top 10 firms since the company's incorporation in 1994. IN THE NEWS Customized for: vinh (
[email protected]) January 2009: Thrown in the slammer The fallen-from-grace former president of GF Securities, Dong Zhengqing, was sentenced to four years in prison for insider trading after a long and involved trial. In the Tianhe district court in Guangzhou, the decision was said to be in line with the Chinese government's attempt to restore investor confidence. A Shenzhen-based analyst, speaking on condition of anonymity to the Financial Times, explained that the rare conviction was "quite a step in showing China’s determination to build stock market institutions." 204 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition GF Securities (Guangfa Securities) Chinese stock markets have developed quite a reputation for widespread insider trading over the years, and regulators are forging ahead in trying to curb this practice. A China Securities Regulatory Committee (CSRC) official remarked, "China’s market is an emerging and a transitional market and so it has more irregularities than a developed market." July 2008: Insider trading trial begins In Tianhe District Court in Guangzhou, Dong Zhengqing, the former president of GF Securities, went on trial in July 2008 for insider trading, alongside his younger brother and a former classmate. Dong denied all charges, including an earlier confession to police which he claimed was coerced under intimidation. The prosecution argued that the former president had tipped off his brother (Dong Dewei) and a former classmate (Zhao Shuya) with inside information that GF Securities would be going through a reverse merger via the Yan Bian Highway Construction firm. Also on trial, the brother and the classmate were charged with profiting to the tune of RMB 50 million and RMB 1 million, respectively, from the sale of their Yan Bian Highway stock. (Both men also recanted their earlier confessions to police that they had received the tip-off.) With market speculation in the lead-up to the IPO, shares skyrocketed from RMB 2.86 to RMB 8.06 from March to June 2006. Dong claimed that he didn't know about the listing until the day of the IPO in June 2006, when he was on a business trip, and that it was conducted by two of his partners. He also claimed that the firm had several other choices for the reverse merger, so he didn't know a decision had been made. However, testimony from several GF Securities execs contradicted Dong's story, claiming that he was the leader in key decisions even though he didn't conduct the trade in person. January 2008: Pumping up profits With all the new opportunities available in domestic markets, Chinese people were engaged in a record amount of trading in 2007, driving feebased incomes up—mainly among brokerages. For two of GF Securities' investments, Jilin Aodong Medicine Industry Group and Liaoning Chengda Company, profits went through the roof in 2007, with a share price rise of nearly 750 percent in a year's time. Both are publicly traded companies which have dual representation on the Shenzhen and Shanghai exchanges. However, their astounding rise in profits may not be completely self-sufficient. The claim is that profits of both Jilin Aodong and Liaoning Chengda are merely a reflection of GF Securities' profits flowing through the balance sheets of the smaller companies—with the security firm's profits accounting for 96 percent of Jilin Aodong's and 90 percent of Liaoning Chengda's first-half earnings in 2007. In this way, GF Securities can drive up the price of the two businesses, which in turn drives up its own profits. This is technically legal by Chinese regulatory restrictions. GF is the third-largest investor in Jilin Aodong and the second-largest in Liaoning Chengda. May 2007: Backdoor bust GF Securities' top executives wanted to follow in the footsteps of numerous financial companies with its own IPO. However, the firm was limited by Chinese regulations that a company must have three successive years of profits in order to launch an IPO on either of the main Chinese stock exchanges. GF had been profitable in 2004 and 2005, but in 2003 the firm had suffered losses. To skirt the government's criteria, GF launched a plan to attempt a "backdoor" listing—one in which it would execute a reverse takeover of a company which met the regulations, and then launch the IPO under that company's record. The firm's target was the infrastructure firm Yan Bian Highway Construction. The agreement worked out so that GF Securities would swap 0.83 of its shares for every one share of Yan Bian Highway. This would have given the securities firm 95.4 percent ownership of the construction company. After 15 of GF Securities' largest shareholders had owned Yan Bian Highway for one to three years (based on regulatory approval), the company would be able to launch an IPO under the name GF Securities without adhering to governmental rules. Through Yan Bian Highway's public offering, GF Securities effectively went public in June 2006 through this "backdoor" listing. With market speculation in the lead-up to the IPO, shares skyrocketed from RMB 2.86 to RMB 8.06 from March to June. Everything was on track for the firm when things hit an abrupt stop in May 2007. The China Securities Regulatory Committee (CSRC) announced that it would punish GF Securities, Yan Bian Highway and other firms involved in the trade due to "improper disclosure of information." The firms were accused of insider trading by capitalizing on news of the reverse takeover before it was publicly announced. Many of the top executives in the firm were implicated, including the president of GF Securities, Dong Zhengqing, who officially resigned in June 2007 and was arrested for insider trading the following month. He was succeeded by the firm's former administrative vice president, Li Jianyong. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 205 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition GF Securities (Guangfa Securities) GETTING HIRED Create your own luck The firm's main English site at www.gf.com.cn/eng/index.htm provides no information on careers and doesn't appear to have been updated since 2003. However, that doesn't mean there's no way to pass on your information to the company to get a possible shot at a job. You could try sending an email with a cover letter and resume to the firm's general address:
[email protected]. If that fails, you might have better luck checking out the "subsidiaries and branches" link on the site, which has contact information for offices throughout China that might be hiring. Customized for: vinh (
[email protected]) 206 © 2009 Vault.com Inc. GUOTAI JUNAN SECURITIES CO., LTD. No. 135, Yanping Road Shanghai, 200042 China Phone: +86-21-6258-0818 Fax: +86-21-6258-1911 www.gtja.com THE STATS Employer Type: Private Company Chairman: Zhu Youyi President and Vice Chairman: Chen Geng No. of Employees: 3,554 No. of Offices: 141 LOCATIONS IN ASIA PACIFIC Beijing Hong Kong Shanghai Shenzhen Other major cities in China KEY COMPETITORS BOC International China Galaxy Securities China Merchants Securities GF Securities Haitong Securities Ping An Securities DEPARTMENTS Corporate Finance/M&A • Asset Management • Futures/Options • Margin Trading/Securities Lending • Fixed Income Securities • Derivatives • Research & Development • Retail Brokerage • Securities Dealing • Sales & Trading • International Business EMPLOYMENT CONTACT "Jobs" link at www.gtja.com.hk/english THE SCOOP Secure securities Guotai Junan Securities (sometimes referred to as Guotai Jun'an or GTJA) is one of the top three domestic security houses in China. Based in Shanghai, the firm was officially formed in 1999 through the merger of Guotai Securities and J&A Securities, who were operating smaller businesses before the financial boom hit China. Today, Guotai Junan has considerable clout in the ever-growing Chinese market, with registered capital of RMB 4.7 billion, three subsidiaries and 141 offices spread throughout China as well as in Hong Kong. Guotai Junan's corporate finance services are extensive. They include equity financing, bond financing, mergers and acquisitions (M&A), asset securitization, strategic investments, derivatives design and subscription, and private placement services. The fixed income securitization branch of the bank covers underwriting, trading, investment of treasury bonds, central bank notes, policy financial bonds, common financial bonds, subordinating bonds, short-term financing bonds, and asset securitization. Its asset management business is handled through a subsidiary, Guotai Junan Allianz Fund Management—a collaboration between Guotai Junan and German firm Allianz Group. The first Sino-foreign fund management joint venture in China, Guotai Junan Allianz Fund Management has been operating since October 2002. Futures and options trading are handled through another subsidiary, Guotai Junan Futures. Customized for: vinh (
[email protected]) Awards and rankings Guotai Junan Securities may not have the international clout of UBS or Goldman Sachs, but it does appear on the Thomson Financial (now Thomson Reuters) league tables for M&A in categories on its home turf. In the fourth quarter charts for mid-market M&A deals with Hong Kong involvement up to US$100 million, Guotai Junan ranked No. 15 in 2007, with a modest three deals that earned 0.8 percent of the market share. In the M&A financial advisory category, the firm ranked lower, but was able to tally up a sizeable increase over its numbers from the 207 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Guotai Junan Securities Co., Ltd. year before. In the China rankings for M&A financial advisory, Guotai Junan ranked No. 20 with a value of US$1.7 billion, approximately 26 percent of the market share. In both rank and value, this represents a huge jump from 2006, when the firm was No. 38 on the table and earned only US$207 million. Over the past years, GTJA has gained a solid reputation for creditability, professional skills, innovative spirit and satisfactory services. GTJA was appraised as the most competent securities firm in terms of comprehensive competitive power in China by authoritative mass media in 2001. In 2004, GTJA topped the list of China's 500 Most Valuable Brands (sponsored by World Brand Lab and World Economic Forum) for her RMB 4.9 billion goodwill value. In early 2005, GTJA was one of the first securities companies granted the license of innovative businesses by China Securities Regulatory Commission. GTJA won Grand Prize for Securities Firms (by 21st Century Business Herald) in 2006, and won it again in 2007, plus other prizes of Best Broker, Best Securities Dealer, Best Innovator, Best Bond Underwriter and Best Derivatives Arbitrager (by 21st Century Business Herald), and plus Best Brand Value (by China CBN) in 2007. IN THE NEWS February 2009: Nice compensation in a rough year RMB 3.2 billion. That's how much 3,200 Guotai Junan employees were paid during 2008, according to an internal report by Chen Geng, the firm's president, published in China's National Business Daily in February 2009. (For the non-mathematical, that's RMB 1 million per employee.) This figure came as a shock to most, even the firm's employees, in a year when the Shanghai Composite Index dropped about 65 percent, and securities firms have reportedly been making pay cuts and laying off staff. The Guotai Junan payroll figure is more than double that of China Merchants Securities (RMB 1.55 billion) or Guosen Securities (RMB 1.25 billion), and about 20 times larger than Huatai Securities (RMB 175 million) or Ping An Securities (RMB 159 million), all of which are major brokers in China. As the report spread like wildfire through the media, Guotai Junan posted a statement on its web site in response, explaining that the newspaper's figures were just plain wrong. "The RMB 3.2 billion payroll consists of accumulated surpluses from previous years, accrued salaries, and salaries payable in 2008." A week after the initial report, the firm released figures that its compensation costs had actually dropped by 44 percent in 2008 compared to the previous year—making it RMB 800 million, a shockingly drastic cut from the original RMB 3.2 billion figure. Whatever the actual figure (RMB 3.2 billion or RMB 800 million), the firm still plans to hand out RMB 250 million in "deferred compensation" or bonuses after April 2009. January 2009: SIGnaling the future In the final month of Central Huijin Investment's three-year agreement (which expired at the end of December 2008), there was talk of pulling up stakes. Indeed, an agreement was inked with Shanghai government investment arm Shanghai International Group (SIG), and the entire 21.3 percent share was transferred over the following month. Prior to the deal, SIG was already Guotai Junan's largest shareholder, and the deal gives the group a 45 percent stake. Central Huijin Investment made a sweet profit of more than RMB 1 billion on the sale, more than doubling its initial investment just three years earlier. Analysts reported that the deal was also putting Guotai Junan in line with regulations in setting up for an imminent IPO—under current regulations, a single company can own no more than two brokerages, and Central Huijin Investment had stakes in several. Though the divestment may put Guotai Junan closer to an IPO, many think the firm may still be playing the waiting game. Hu Zhuowen, an analyst for Orient Securities, remarked, "Guotai Junan is not expected to go public soon amid the current weak IPO market." June 2008: No IPO in '08 Customized for: vinh (
[email protected]) It was widely expected that Guotai Junan would look to an IPO in 2008, as the firm's chairman, Chen Geng, stated that preparations were ongoing in 2007. However, things changed, and the firm said it probably wouldn't be looking at a launch in mid-2008. The timetable and exchange for the IPO are also still up in the air. Explaining the about-face, Zheng Huirong, the chairman of Guotai Junan's supervisory committee, remarked, "It's rather difficult for us to launch the IPO this year because of possible changes in our company structure." Zheng was most likely referring to the possible unloading of state-run Central Huijin Investment's 21.3 percent stake in Guotai Junan. Central Huijin Investment has a three-year agreement, which lapses as of the start of 2009. 208 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Guotai Junan Securities Co., Ltd. January 2008: Dabbling in derivatives Guotai Junan Securities was the first of the domestic Chinese brokerages to wade into the complex waters of financial products such as derivatives. In January 2008, it announced it would seek to be even more of a leader in this field by collaborating with IBM to create a risk management system for security trading and fund management. The new system will allow the company to monitor risk in an environment that may be vulnerable to volatility. Zuo Feng, the chief compliance officer of Guotai Junan, says that the new platform will help the company keep up with its new international competition. "Risk management, internal control and compliance will be some of the most important business developments in the Chinese securities industry in the years to come. To compete in this environment, Guotai Junan Securities needs to speak the international language of risk management." January 2008: Secure earnings Despite tough competition from outside interlopers, Guotai Junan has greatly benefited from the surge in stock trading in the past few years. The firm placed second behind China Galaxy Securities for the most stock trading in China in 2007, with stocks contributing 75 percent of its earnings during the year. There were 21 Chinese firms who had an annual stock turnover of more than RMB 1 trillion in 2007, which set a new record for the country, and trading on the Shanghai and Shenzhen stock exchanges increased threefold and fourfold, respectively. December 2007: Ping An buys in Guotai Junan's three largest shareholders are government-run: Shanghai International Group, Central Huijin Investment and Shenzhen Investment Holdings. The firm has numerous other investors who own bits and pieces. In December 2007, China Ping An Trust & Investment Company (the investment arm of Chinese insurer Ping An Insurance) made a small purchase into the securities firm, purchasing a 0.16 percent stake for about RMB 174 million from Sinopec Shanghai Petrochemical Company. The small purchase is significant especially because it represents a huge jump in value for the shares, which were valued at just RMB 7.08 million the year before. December 2007: On the tables Guotai Junan Securities may not have the international clout of UBS or Goldman Sachs, but it does appear on the Thomson Financial (now Thomson Reuters) league tables for M&A in categories on its home turf. In the fourth quarter charts for mid-market M&A deals with Hong Kong involvement up to US$100 million, Guotai Junan ranked No. 15 in 2007, with a modest three deals that earned 0.8 percent of the market share. In the M&A financial advisory category, the firm ranked lower, but was able to tally up a sizeable increase over its numbers from the year before. In the China rankings for M&A financial advisory, Guotai Junan ranked No. 20 with a value of US$1.7 billion, approximately 26 percent of the market share. In both rank and value, this represents a huge jump from 2006, when the firm was No. 38 on the table and earned only US$207 million. GETTING HIRED Put yourself out there Career information is scarce for Guotai Junan, as there are no hiring links on their main English web site. However, the "Jobs" link at the bottom of Guotai Junan's Hong Kong site at www.gtja.com.hk/english provides a list of current open positions. For a position such as a senior analyst in Shenzhen, the firm is looking for someone with the proper background in addition to an "ability and willingness to work under tight deadlines." It also doesn't hurt to have "a general understanding of economics and stock markets," a familiarity with "certain industrial sectors" and proficiency in English as well as Mandarin. Only one email contact seems to be provided for job postings:
[email protected]. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 209 HAITONG SECURITIES CO., LTD. 17-20/F Jiangzhong Plaza No. 98 Huaihai Middle Road Shanghai, 200021 China Phone: +86-21-5359-4566 Fax: +86-21-5385-8536 www.htsec.com/htsec/Channel/2059 THE STATS Employer Type: Public Company Ticker Symbol: 600837 (SSE) Chairman: Wang Kaiguo General Manager & Director: Li Mingshang Net Income: RMB 5.46 billion (FYE 12/07) No. of Employees: 3,786 No. of Offices: 124 LOCATIONS IN ASIA PACIFIC Beijing Guangzhou Shanghai Shenzhen Tianjin Other major cities in China KEY COMPETITORS BOC International China Galaxy Securities China Merchants Securities GF Securities Guotai Junan Securities Ping An Securities DEPARTMENTS Asset Management Corporate • Finance/M&A • Investment Banking • International Business • Research • Stocks & Futures Brokerage EMPLOYMENT CONTACT www.htsec.com/htsec/Channel/3403 THE SCOOP Coming in through the backdoor Haitong Securities is one of China's earliest domestic brokerages, with a history stretching back to 1988, and is the second-largest behind CITIC Securities. In July 2007, it became the first mainland Chinese brokerage to successfully enter the stock market via a technique commonly referred to as "backdoor listing." Haitong was able to skirt Chinese government regulations by merging with Shanghai Urban AgroBusiness, changing the name of the company to Haitong Securities and launching its IPO on the Shanghai stock market. As Haitong was unable to comply with the rule that securities firms need to have three consecutive profitable years to go public, the backdoor move was considered a necessary fundraising measure in order to compete with international firms entering into the securities business in China. The backdoor listing has made Haitong the ninth-largest securities company in the world. Haitong serves approximately 2 million people in mainland China through its 124 domestic branches. The firm provides securities underwriting, brokerage, trading, investment advisory, research, and investment fund and asset management services to its clients. It also provides an outlet for the sales and purchase of securities, agency of debt service and dividend distribution of securities, custody and authentication of securities, agency of registration and accounts opening, and proprietary trading of securities. In July 2007, Haitong got approval from the China Securities Regulatory Commission (CSRC) to expand its company into Hong Kong, giving the company new access to the international financial world. The new company has been started with capital of HK$100 million and is named Haitong (Hong Kong) Financial Holdings. Customized for: vinh (
[email protected]) 210 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Haitong Securities Co., Ltd. Fund management with Fortis Haitong owns the majority stake in its subsidiary, Fortis Haitong Investment Management, which launched in 2003 as a joint endeavor between Haitong and Fortis, the Belgian-Dutch financial services company. Haitong currently owns approximately 51 percent of the investment management company while Fortis has a 49 percent stake. Fortis originally only had a 33 percent stake in the company, but were able to raise that percentage when China, under the terms of an agreement with the World Trade Organization, approved a law allowing foreign companies to own as much as 49 percent of domestic businesses. Awards and rankings • 2007 Excellent Sponsor for Medium and Small-sized Enterprises (Securities Times, 2008) • Most Respectful Investment Banking (New Fortune, 2008) IN THE NEWS November 2009: Buying Taifook Haitong Securities announced that its Hong Kong-based unit will purchase a 53 percent stake in Taifook Securities Group Limited. Haitong will pay NWS Holdings Ltd. (Taifook Securities’ parent company) HK$1.82 billion for the stake. The deal closed in December 2009.) January 2009: Numbers are in Whereas 2007 was a huge year for securities firms in China, 2008 was a painful one as the Chinese stock market underwent its worst performance in history. Among the first securities firms to report 2008 earnings, Haitong experienced a relatively rough year in a tough market, though it remained highly profitable. The firm's profits for 2008 were RMB 3.3 billion, a 40 percent drop from 2007. Operating revenue fell about 38 percent to RMB 7 billion. October 2008: Do you know Chuo? After signing a letter of intent, Haitong announced a cooperative agreement with Japanese financial holding company Chuo Mitsui Trust Holdings in October 2008. Word on what exactly they'll be doing together is unclear, but the cooperation is expected to be on the securities market and asset management businesses in China. September 2008: Happy 20th On September 22, 2008, the firm celebrated its 20th anniversary. That's no small feat in the relatively young Chinese securities business— Haitong was one of the first firms to set up shop in mainland China. April 2008: PE for you and me In early April 2008, reports surfaced that Haitong had plans to set up a private equity unit. According to the Dow Jones Chinese Financial Wire, initial registered capital for the unit would be RMB 1 billion, with total investments not to exceed RMB 3 billion. Customized for: vinh (
[email protected]) January 2008: Branching out Haitong gained permission from the China Securities Regulatory Commission (CSRC) to invest overseas on behalf of its clients as a Qualified Domestic Institutional Investor (QDII). In August 2007, Fortis Haitong Investment Management had also been granted approval to launch products under QDII. The firm joins a number of domestic entities and rivals who have also received QDII approval—others include China International Capital Corporation, CITIC Securities, China Merchants Securities, Guotai Junan Securities, Orient Securities, Everbright Securities and Huatai Securities. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 211 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Haitong Securities Co., Ltd. November 2007: Private placement boosts income With Haitong's July 2007 IPO hot off the presses, the securities firm decided it would hold an additional private stock placement in November 2007 in order to raise even more funds to boost its competitive edge. The brokerage sold off RMB 25.9 billion to institutional investors for the purpose of "expanding the capital pool and subsidizing operations." The institutional investors were some of the Chinese financial world's biggest players, including Pacific Investment Management, Huatai Asset Management, Youngor Group, Taikang Asset Management, Jiangsu Guoxin Investment Group, CITIC Group, Shanghai Electric Power Company and China Ping An Trust & Investment. The private placement sale was boosted by Haitong's reports of drastically increased earnings for the first nine months of 2007. The company reported that net profits for the first three quarters of 2007 were about RMB 4.1 billion, nearly 16 times its net profit from the same period in 2006. GETTING HIRED Not much to go on Haitong's main web site at www.htsec.com is only in Simplified Chinese, with no English links in sight and no clear contact information, so definitely brush up on your Chinese-language skills. There's a recruitment page in Simplified Chinese available at www.htsec.com/htsec/Channel/3403. You could also try addressing an email to the firm's human resources (HR) department at
[email protected]. Fortis Haitong Investment Management has an English page at www.hftfund.com, but doesn't have a hiring page either. You could potentially send your resume to the address listed, but a better idea might be to email
[email protected] for more information before blindly sending anything. Customized for: vinh (
[email protected]) 212 © 2009 Vault.com Inc. HANA FINANCIAL GROUP INC. 27-3, Yeouido-dong Yeongdeungpo-gu Seoul, 150-705 South Korea Phone: +82-2-2002-1110 Fax: +82-2-2002-1401 www.hanafn.com THE STATS Employer Type: Public Company Ticker Symbol: 086790 (KRX) Chairman & CEO: Seung-Yu Kim Operating Income: KRW 3,468.8 billion (FYE 12/08) Net Income: KRW 483.4 billion No. of Employees: 12,860 No. of Offices: 755 LOCATIONS IN ASIA PACIFIC China • Hong Kong • India • Indonesia • Japan • Korea • Singapore • Vietnam KEY COMPETITORS Kookmin Bank Shinhan Financial Woori Finance Holdings DEPARTMENTS Asset Management Corporate & Investment Banking Corporate Planning Personal & Commercial Banking EMPLOYMENT CONTACT Email:
[email protected] www.hanafn.com/pr/prcenter/talent.jsp (Korean-language only) "Job openings" at ww.hanafn.com/eng/main/ir_main.jsp THE SCOOP Hana is one Korea's fourth-largest financial institution, Hana Financial Group (HFG, or Hana) has its roots in the country's rapid economic development during the early 1970s, and was initially established as Korea Investment Finance Corporation. However, the modern-day Hana Financial Group was formed in December 2005. Its flagship subsidiary remains Hana Bank, but the group integration brought a number of other affiliates under one roof. These now include Hana Investment Bank (formerly Hana Securities, but renamed in 2007), Hana Life Insurance, Hana Capital, Hana I&S, Hana Institute of Finance, Hana Daetoo Securities (formerly Daehan Investment and Securities), Daehan Investment Trust Management, and Qingdao International Bank. Temasek Holdings, Singapore's government-run sovereign wealth fund (SWF), has held a stake in Hana since 2004, and owns 10 percent as of 2008. The private equity arm of Goldman Sachs also purchased a 9.4 percent stake in Hana in late 2005 prior to relisting on the Korean stock exchange, currently making Temasek and Goldman the two largest overseas shareholders. German insurer Allianz was also a large shareholder for several years, but ultimately sold off its remaining stake in mid-2007. Hana Financial Group also operates two high-profile joint ventures—UBS Hana Asset Management, a venture with Swiss financial giant UBS in which Hana controls 49 percent, and Hana HSBC Life Insurance, a 50-50 venture with U.K.-based HSBC. Most competitive in personal banking in Korea, Hana also handles a number of non-banking businesses, including securities, consumer finance and life insurance. In February 2008, the group reorganized into three distinct business units: Personal & Commercial Banking, Corporate & Investment Banking, and Asset Management. The group also handles a number of consulting and strategy services through its Corporate Planning unit. Customized for: vinh (
[email protected]) 213 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Hana Financial Group Inc. Hana (meaning "one") has set a target for the end of 2009: to maintain its position in the ranks of the world's top 100 financial institutions, with a further vision of skyrocketing into the top 50 by 2015, placing it on a scale with global banks. Hana Financial Group ranked No. 553 on the Forbes Global 2000 list, placing it behind Kookmin Bank, Shinhan Financial and Woori Finance Holdings. An international affair On the urging of William Diamond, serving as the director of the Development Finance Division of the World Bank's International Bank for Reconstruction and Development (IBRD) in the late 1960s, Korea began looking into ways to grow its capital market. In 1971, Korea Investment and Finance was incorporated through the efforts of the Ministry of Finance & Economy, Bank of Korea, and Korea Development Financing. The World Bank's International Finance Corporation (IFC) took a stake, and following government approval in 1972, Korea Investment and Finance got its start as a short-term finance company with a staff of about 100. Expanding its services, the firm obtained its securities license in 1977 under an amended Securities Exchange Act. Head offices were moved to the Euljiro financial district of Seoul in 1985. It wasn't until the early 1990s that things really started, as the institution was reincorporated as a banking institution and Hana Bank opened its doors in 1991. Quickly spreading its wings upon establishment, Hana Bank expanded into Hong Kong in 1995, opening an office as an independent local corporation. In the following year, the firm also went public on the London Stock Exchange. It wasn't until 2000 that Hana Bank opened its first international branch in Singapore, making it the first Korean bank to open its doors in the city-state. Also in 2000, the firm was granted approval to open a branch in Shanghai. Making it big Things began changing rapidly for Hana Bank in the late 1990s. After executing a purchasing and assumption transaction (P&A) for Chungcheon Bank in 1998 and a major merger with Boram Bank in 1999, Hana Bank expanded its Korean operations. Another mega-buyout in 2002, with then government-owned Seoul Bank, further bolstered Hana Bank's position in the Korean market. Seoul Bank (or SeoulBank) had collapsed amidst a mountain of debt after the 1997 economic crisis. The bank had then been nationalized through a 1998 bailout by the International Monetary Fund (IMF) and had gone through negotiations with a string of potential foreign suitors (including HSBC and Deutsche Bank's DB Capital Partners) before ending up in Hana's hands. After the 2002 merger, Hana Bank was relaunched, making it Korea's third-largest financial institution. Post-relaunch, the firm began branching out into other businesses. In 2003, Hana Life Insurance was incorporated. The following year, Hana Bank took over Daehan Investment and Securities in the lead-up to the 2005 formation of the Hana Financial Group. Deeper into China, Vietnam and Indonesia Making inroads in the booming Chinese financial landscape, Hana Bank first opened a branch in Shanghai in 2000. Hana Bank also gained a further foothold in mainland China through the acquisition of Qingdao International Bank in 2004. In December 2007, after inking a deal to ally itself with China's Bank of Jilin, the firm formally launched a Chinese subsidiary—Hana Bank (China) Co. Meanwhile, the firm allied itself with Southern Bank of Vietnam in November 2007, and also opened a Hana bank liaison office in Ho Chi Minh City. Following Indonesian regulatory approval, Hana Bank took over PT Bank Bintang Manunggal in December 2007. The Indonesian bank is relatively small, boasting about US$30 million in assets at the time of the deal, but Hana is looking to develop it into one of Indonesia's top 20 banks. Hana inked the deal to buy a 61 percent stake in the bank for KRW 3 billion. The small Indonesian bank was renamed PT Bank Hana upon approval, and former Hana Life Insurance CEO Lee Jung-se was called on to head up its operations. The deal keeps Hana in the running with other Korean banks, including Kookmin Bank, which owns a large stake in Bank International Indonesia, and Woori Bank and Korea Exchange Bank, both of which operate subsidiaries in the country. In a statement, a Hana official explained the importance of the deal, particularly in relation to expansion plans. "As we still have no branches or subsidiaries in Indonesia, our acquisition of PT Bank Bintang Manunggal is very significant for our business in Southeast Asian countries. We plan to set up more operations in Singapore and Indonesia to find more business opportunities in Southeast Asia." Customized for: vinh (
[email protected]) Awards and rankings • Best Private Bank in Korea (Euromoney, 2004-2008) • No. 553 on the Forbes Global 2000 list (Forbes, 2008) 214 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Hana Financial Group Inc. IN THE NEWS March 2009: Topping the charts Continuing its reign at the top, Hana Bank was selected as the Best Private Bank in Korea—for the fifth year in a row—by Euromoney magazine. Results were collected through the publication's annual Private Banking Survey, and the top spot worldwide went to Swiss bank UBS. March 2009: Results are in Announcing results for 2008, things looked a bit gloomy as Hana Bank's net profit in 2008 was down 54.8 percent from the previous year (to KRW 474 billion). However, in positive news, the bank stated that it did not have any direct exposure to collateralized debt obligations (CDOs) in the U.S. subprime mortgage market. Explaining its standing amidst worldwide economic uncertainty, Hana stated, "There is widespread concern that the global financial crisis and sharp economic downturn may deal a harsh blow to banks' capital base. Such a risk is rather low at Hana Bank, compared to its competitors, because of its low exposure to recession-sensitive industries and currency derivative products." In China, the firm posted a great deal of growth and remained profitable. Hana Bank China, the firm's Chinese corporate entity, saw its total assets in 2008 soar by 50 percent compared to 2007. More impressive yet, deposits reached US$869 million, up 662 percent from US$114 million in the previous year. Hana more than doubled the number of Chinese branches in 2008, opening six branches to bring the grand total to 11. The firm has plans in 2009 to open new sub-branches in Harbin and Qingdao. March 2009: Big-name acquisitions galore A number of entities have been scooping up pieces of Hana Financial Group to close out 2008 and start up 2009. The first major acquisition came in October 2008, when it was announced that JF Asset Management—the Asian asset management arm of J.P. Morgan, now called J.P. Morgan Asset Management—had picked up a 6.46 percent stake in Hana. The following month, AllianceBernstein Holdings (a subsidiary of AXA Financial, which is in turn a subsidiary of French insurance giant AXA) acquired a 5.32 percent stake in Hana. Keeping it a little closer to home, a domestic organization picked up another piece of Hana in March 2009, as it was announced that Korea's National Pension Service (officially an "institutional investor") had acquired an 8.15 percent stake. December 2008: Capital markets deregulated, securities and IB merged Gearing up for big changes under the Capital Market Consolidation Act (CMCA), which went into effect in February 2009, Hana made a few internal changes. In December 2008, the firm announced that two of its subsidiaries, Hana Daetoo Securities and Hana Investment Banking & Securities, would merge under the name Hana Daetoo Investment Bank. Hana Daetoo Investment Bank CEO Yang Yong-Seung outlined the benefits behind the merger in his CEO message, explaining, "Through this merger we have manifested capital enlargement and are now able to cover all kinds of financial business areas enforced within the Financial Investment Services and Capital Markets Act, and have especially attained the conditions to carry out large-scale investment banking deals." November 2008: Rejected in K-town Customized for: vinh (
[email protected]) After chasing a 37.5 percent stake in U.S.-based Commonwealth Business Bank for over a year, Hana was eventually rejected by the U.S. Federal Reserve. The primarily Korean-American-run Commonwealth Business Bank is headquartered in Los Angeles, home to one of Korea's largest overseas populations. President and CEO Wun Hwa (Jack) Choi of Commonwealth Business Bank explained the Federal Reserve's rejection, stating, "It is important for shareholders to understand that the delays in Federal Reserve Board approval relate to laws and regulations governing foreign ownership of United States banks and certain bank holding company status issues." Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 215 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Hana Financial Group Inc. October 2008: Taesan flops, Hana stuck with the bill One of Korea's top start-ups, Taesan LCD, slapped Hana Bank with heavy losses as it collapsed in October 2008. The computer screen backlight manufacturer started off with a bang, rising to become the primary supplier for Korea's Samsung Electronics and achieving massive sales—in June 2008, the firm ranked as Korea's third-largest start-up. However, Taesan shockingly collapsed and filed for bankruptcy just three months later in a big pile of debt. The firm accumulated a total of KRW 609.2 billion in net losses on KIKO ("knock-in knock-out") hedges—derivative products designed to reward an appreciating currency— as the Korean won slumped against the dollar. In October 2008, the won had fallen 29 percent against the dollar for the year. Taesan's losses amounted to seven times its operating profit in the first half of 2008. Hana Bank was forced to assume Taesan's losses, leading to an unprecedented loss for the financial institution. The third quarter marked one of Hana's first losses in company history. The firm set aside KRW 250.7 billion against its exposure to Taesan. July 2008: Buying into China It was widely reported that Hana was in the final stages on a deal to buy up to 20 percent of China's Bank of Jilin (also called Jilin Bank) in June 2008. The following month, Hana announced the deal, worth a 19.7 percent stake in the bank for RMB 2.16 billion through a rights offering. Bank of Jilin is quite young—it was founded in October 2007 through the merger of a number of smaller local lenders, and the firm operates over 200 locations. Based in the northern Chinese province of Jilin on the North Korean border, the alliance gives Hana access to a broad Korean community in China. In a statement, the firm remarked, "Jilin province has the largest South Korean community in China and we plan to use this investment as a springboard for further expansion into North Korea when trade between two Koreas become more active." March 2008: Changing of the guard There's a new co-CEO in town as of March 2008. Hana Financial Group announced the appointment of Kim Jong Yeol, effective March 28. Kim, formerly Hana Bank's deputy manager, came on board to replace Yoon Gyo Jung. Hana's other co-CEO, Kim Seung Yu—who has led the bank since 1997 and has been with Hana since its inception in the early 1970s—continues his duties. March 2008: A new lease on life A life insurance joint venture between German insurer Allianz and Hana ended in mid-2007 as the German firm sold its remaining stake back to Hana Financial Group. However, Hana soon entered into talks with U.K.-based financial giant HSBC Holdings. In January 2008, after gaining regulatory approval, Hana sold 50 percent—minus one share—of its Hana Life Insurance business to HSBC Insurance (Asia-Pacific) Holdings, a subsidiary of HSBC, for KRW 53 billion. The joint venture aims to become one of Korea's top 10 insurers. The new entity, Hana HSBC Life Insurance, was officially established in March 2008. By that point, Hana HSBC Life Insurance had signed a number of bancassurance partnerships, including those with Hana Bank, HSBC's Korean operations, Hana Daetoo Securities, Mirae Asset Securities and Prudential Securities. March 2008: Picking up the pieces Hana Bank agreed to purchase a small stake in U.S.-based Merrill Lynch from Singaporean government-run investment fund Temasek Holdings in February 2008. The deal was completed the following month. Hana completed the purchase of shares for US$50 million from Temasek, which had scooped up US$4.4 billion of Merrill Lynch at a bargain price in December 2007. The emergency funding came from Temasek as Merrill Lynch strove to tighten up its balance sheet in the fallout from the subprime mortgage crisis. Customized for: vinh (
[email protected]) 216 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Hana Financial Group Inc. GETTING HIRED One thing you'll probably need: Korean skills Though Hana Financial has global ambitions by 2015, one thing it doesn't have is a centralized careers page in English. There are a handful of general job listings, which can be accessed by choosing the "English" link on www.hanafn.com, and then clicking the "Job Openings for Overseas Professionals" link in the middle of the main page. This link outlines general duties and requirements for current openings in areas such as retail banking marketing at Hana Bank, mergers and acquisitions (M&A) at Hana Daetoo, and others. Interested applicants can send a resume by email to
[email protected]. Though only in Korean, Hana does feature some career information on the main Hana Financial site, as well as on each subsidiary's web site. One piece of info that's available concerns the firm's Career Development Program, a rotational program for grads. Departments include retail banking, capital markets, IB, insurance and policy. Rotations in the program take participants through personal finance, commercial finance, asset management, risk management, treasury and investment banking. Also take note that, like many Korean web sites, most of Hana's sites are ActiveX-enabled, so they require Internet Explorer (or Netscape!). Using Firefox or other browsers often won't get you where you need to go. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 217 HANG SENG BANK (CHINA) LIMITED 83 Des Voeux Road Central, Hong Kong Phone: (852) 2198 1111 Fax: (852) 2868 4047 www.hangseng.com THE STATS Employer Type: Member bank of HSBC Group Vice-Chairman & CEO: Margaret Leung No. of Employees: 9,700 LOCATIONS IN ASIA PACIFIC China Hong Kong Macau Taiwan Singapore EMPLOYMENT CONTACT www.hangseng.com/hsb/eng/abo/co/home/index.html DEPARTMENTS Commercial Banking Corporate Banking Personal Wealth Management Private Banking Treasury Services THE SCOOP Money tree Hang Seng Bank, whose name translates literally to “ever-growing” in English, has flourished since its humble beginnings as a small Hong Kong money-changing shop in 1933 to become the largest locally incorporated bank by market capitalization. The bank has 9,700 employees and operates 210 service outlets, including branches and ATMs in its home base of Hong Kong alone. Hang Seng Bank (China) was established as a subsidiary in May 2007 geared toward serving customers in Mainland China, and currently has 32 outposts in key locations such as Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou, among others. In addition, Hang Seng also has branches in Macau, a representative office in Taipei, and operations in Singapore. Hang Seng offers personal wealth management, commercial banking, corporate banking, treasury services and private banking. A member of the globe-spanning financial institution Hongkong and Shanghai Banking (HSBC) Group since 1965, Hang Seng reaches investors in the U.S. through its Sponsored Level-I American Depository Receipts Programme. Customized for: vinh (
[email protected]) Big listings The late 1960s proved to be a watershed time for Hang Seng, with several crucial developments in the expansion of its brand occurring during this period. In 1965, HSBC purchased a 51 percent majority stake in Hang Seng, after which the bank pioneered the launch of seven-year residential mortgages in Hong Kong in 1967. This was followed up by an even more defining moment: when the Hang Seng Index was established in 1969 as a public service stock market indicator for Hong Kong. Today, the index remains the primary gauge of the stock market in Hong Kong and is watched and analyzed around the globe. After a half decade of major breakthroughs, Hang Seng’s vibrant period of growth culminated in its 1972 public listing on the Hong Kong Stock Exchange. Its IPO was oversubscribed by almost 29 times, and raised approximately HK$2.8 billion, which was close to half of the Hong Kong government’s revenue in 1971. For the remainder of the 20th century, Hang Seng focused on expanding its accessibility to the public in Hong 218 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Hang Seng Bank (China) Limited Kong. Perhaps most notably, the bank was granted permission to operate branches within local subway stations in 1981, furthering its reach to customers. Northward Bound With its feet firmly planted in the Hong Kong banking industry, Hang Seng eventually began to shift its attention to the mainland Chinese banking sector, which gradually began opening to outside investment in latter half of the 20th century. In 1995, two years prior to Hong Kong’s handover from British rule to Chinese rule in 1997, Hang Seng opened a single branch beyond Hong Kong’s borders in the neighboring city of Shenzhen in mainland China. Not long after the 1997 reunification, the bank was granted approval to set up shop in Shanghai, a financial hub firmly entrenched in the infrastructure of China’s urban landscape. Since first venturing into the mainland, Hang Seng now provides a diverse range of services between China and the outside world, including offering foreign currency services and handling Renminbi transactions for foreign nationals. Awards and rankings • Excellence in Wealth Management Award (The Asian Banker, 2005-2006, 2008-2009) • Best Retail Bank in Hong Kong (The Asian Banker, 2006 & 2009) • Best Domestic Bank in Hong Kong (Asiamoney, 2008-2009) • Best Banker Award, CEO Raymond Or (21st Century Business Herald, 2008) • Best Brand Award (21st Century Business Herald, 2008) • Best Bank for Return on Equity (FinanceAsia, 2008) • Best Company in Hong Kong for Financial Reputation and Corporate Reputation and Third-Best Hong Kong Company Overall (Wall Street Journal Asia, 2008) • House of the Year, Hong Kong (Asia Risk, 2008) IN THE NEWS August 2009: Changes at the top Hang Seng announced several changes to its board of directors. Dorothy Lit, who had been nominated as the firm’s CEO, was named a nonexecutive director, and William Leung—manager, personal financial services and wealth management at Hang Seng—was named executive director and head of personal banking. Additionally, there were two significant resignations: Joseph Poon, managing director and deputy CEO; and CFO Edgar Ancona, who left the firm to become CFO at HSBC North America Holdings Inc. May 2009: New chief Hang Send CEO Johnson Fu resigned “for personal reasons,” according to a firm press release. Dorothy Sit—the director, general manager and chief operating officer of Hang Seng China—was nominated to take his place. Fu had been CEO of the firm since May 2007. Customized for: vinh (
[email protected]) March 2009: First lady HSBC, Hang Seng’s parent company, announced that Margaret Leung would succeed the retirement-bound Raymond Or to fulfill the position of vice chairman and chief executive of Hang Seng. Leung’s ascension marks the first time a female has led Hang Seng. Prior to taking the post, Leung served with HSBC for 31 years, ultimately attaining the post of group general manager and global co-head of commercial banking for the banking group. (In May 2009, immediately after Hang Seng’s annual general meeting, Or stepped down and Leung entered office.) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 219 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Hang Seng Bank (China) Limited January 2009: Funds for toilets Hang Seng flushed wastefulness down the drain in January 2009 when it financed the construction of 300 energy-saving biogas toilets in China’s Yunnan province to serve approximately 1,200 villagers. A team of Hang Seng employees from Hong Kong and the Mainland volunteered their time for the project, which was initiated by The Conservancy Association with sponsorship from the bank. Hang Seng has been recognized for its community service efforts in the past, most notably when it became the first Hong Kong-incorporated financial company to be certified for ISO 14001, a worldwide standard of environmental management in business practices. January 2009: A cup of debit, sir? Hang Seng expanded its network of services in January 2009 when a new partnership with China UnionPay (CUP) was announced. The partnership will pave the way for CUP cards to be used in Hang Seng China’s outlets, in addition to Hang Seng launching two Renminbi debit cards on the mainland—a standard card and the Hang Seng Prestige Banking Card, which gives mainland customers exclusive privileges at 2,000 designated merchants in Hong Kong. These cards can also be used in roughly 50 countries and regions around the world, further boosting the global usability of Hang Seng’s products. This figure is almost double the reach of the first cards offered through a Hang SengCUP partnership in 2007, which then provided customers with access to ATMs in only 26 global locations. GETTING HIRED Hang 10 at Hang Seng Hang Seng runs an extensive careers site that includes information about the bank's various divisions, benefits and training programs; it also lists current vacancies and links to a downloadable application form. All new employees with the company attend a rigorous training program in which they learn about the history, culture and values of the bank. Hang Seng also offers continuing education courses for employees (including night classes, so workers can fit the training into the work schedules). Courses range in topic from language classes to professional development. The bank also grants some staff education awards that go toward the attainment of MBA or bachelor's degrees in relevant fields. Developing potential Hang Seng has a detailed management trainee program for new graduates looking to work in the banking sector. The Hong Kong-based program lasts three years, during which trainees rotate through different divisions and are able to participate in special opportunities such as a month-long overseas training session in the U.K. Info on how to apply, as well as further details of the program, can be found at www.hangseng.com/hsb/eng/abo/co/mtp/index.html. For those interested in working for Hang Seng in Mainland China, the bank also operates a management trainee program there. Information about the program can be found at www.hangseng.com.cn/1/2/about-us/career-opportunities/mainland-trainee. Customized for: vinh (
[email protected]) 220 © 2009 Vault.com Inc. HDFC BANK LTD. HDFC Bank House Senapati Bapat Road Lower Parel (West) Mumbai, India 400 013 Phone: +1-21-2882-2888 Fax: +91 22-2835-0456 www.hdfcbank.com THE STATS Employer Type: Public Company Ticker Symbol: 500180 (BSE), HDB (NYSE) Non-Executive Chairman: Jagdish Capoor Managing Director: Aditya Puri Total Income: INR 196 billion (FYE 3/09) Net Profit: INR 22.2 billion No. of Employees: 52,687 No. of Offices: 1,506 LOCATIONS IN INDIA Bangalore Chennai Delhi Kolkata Mumbai Other major cities in India KEY COMPETITORS ICICI Bank Kotak Mahindra Capital Company State Bank of India BUSINESSES Retail Banking Treasury Services Wholesale Banking EMPLOYMENT CONTACT www.hdfcbank.com/aboutus/careers/default.htm THE SCOOP Housing works Founded by H.T. Parekh and incorporated in 1977, the Housing Development Finance Company (HDFC) initially aimed to provide long-term financing for home ownership. Fortune smiled on the company in the early 1990s as the Indian economy went through one of its lowest phases—foreign exchange reserves were down to US$975 million and inflation was at a whopping 16 percent. In a historic act, the Indian government decided to allow private investors into most sectors. Sensing the urgency, India's centralized Reserve Bank of India (RBI) threw open the banking sector to private players as well. HDFC seized the opportunity. It was the first firm to apply and get RBI approval, setting up a commercial bank in 1994 and renaming the company HDFC Bank. The bank went public in 1995, raising INR 500 million through its IPO. In 1999, HDFC became the first bank to introduce international debit cards in India, and in 2000, it was the first bank in India to introduce SMS-based mobile banking. Another major milestone came in February 2000, when HDFC acquired private-sector bank Times Bank Limited for INR 2.3 billion (US$53.89 million), expanding its geographic reach and customer base throughout India. As operations increased, HDFC headed abroad and was listed on the New York Stock Exchange on July 1, 2001, raising INR 7.1 billion (US$166.3 million). In 2001, HDFC also became the first private-sector bank authorized to collect income tax on behalf of the Indian central government. Customized for: vinh (
[email protected]) Order of operations Today, HDFC is the third-largest bank by market value in India, coming just behind the private-sector bank ICICI and the government-run State Bank of India. HDFC has over 15 million customers, and operates 1,506 branches and 3,573 ATMs in 635 cities across India. 221 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition HDFC Bank Ltd. HDFC’s operations are split into three main divisions: wholesale banking services, retail banking services, and treasury services. In the wholesale banking capital division, the firm provides working capital finance services, trade services, transactions services, and cash management for small and mid-sized corporations as well as blue-chip manufacturing companies in India. The retail banking arm offers traditional banking services to individual consumers. It also includes the HDFC Bank Preferred program, which caters to high net-worth individuals. The treasury division is responsible for foreign exchange services, derivatives, local currency money market and debt securities, and equities. Awards and rankings • • • • • • • • • • Most Tech-savvy Bank (Businessworld Best Bank Awards, 2009) Best Bank (Outlook Money NDTV Profit Awards, 2009) Fab 50 Companies in Asia (Forbes Asia, 2009) Man of the Year (Business): Aditya Puri, managing director, HDFC Bank (GQ India, 2009) Best Performing Bank (UTI MF-CNBC TV18 Financial Advisor Awards, 2009) Best Banker: Aditya Puri, managing director, HDFC Bank (Business Standard, 2009) Best Bank in India (Euromoney, 2009) Most Trusted Brand - Runner Up (Economic Times Brand Equity & Nielsen Research, 2009) Best Domestic Bank in India (Asiamoney, 2009) Best Trade Finance Bank in India (Global Finance, 2009) IN THE NEWS August 2009: License to bank in HK HDFC was granted a banking license by the Hong Kong Monetary Authority. The approval brought the total number of banks licensed to do business in Hong Kong to 146. July 2009: Branching out HDFC received approval to open an additional 300 branches in 2009, according to a senior HDFC executive. If the firm were to open the entire 300, it would then have more than 1,700 branches in India. April 2009: Board approval At a meeting in Mumbai in April 2009, HDFC’s Board of Directors approved the audited financial results for the year ended March 2009. The figures took into account the merger between HDFC and Centurion Bank of Punjab, which became effective as of May 2008. Overall, the bank’s business figures revealed an upward trend since 2008, with net profit up 41.2 percent to INR 22.2 billion and assets rising 37.6 percent from its March 2008 figure of INR 1.33 trillion to INR 1.83 trillion. August 2008: Rural growth In August 2008, HDFC launched its first commercial Business Process Outsourcing center in Tirupati, a city in the Andhra Pradesh state of India. The move by the bank follows the rapid growth of the BPO industry throughout rural areas of the country. HDFC’s BPO offers employment to youth living in poor villages as a way to help develop the region and benefit the community. According to Ananthanarayan Rajan, HDFC’s head of operations, “The bank is pioneering an initiative that has the potential to revolutionize rural India by taking job opportunities closer to the doorsteps through economically viable projects.” HDFC’s faith in India’s burgeoning BPO sector, worth approximately US$12 billion, was displayed again in June 2009, when the bank acquired a 26 percent stake in Bangalore-based Ruralshores, a BPO startup company that aims to develop operations in roughly 500 locations with populations below 20,000 over the next seven years. Customized for: vinh (
[email protected]) 222 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition HDFC Bank Ltd. May 2008: Conquering India one centurion at a time In the biggest takeover to date in Indian financial history, HDFC acquired one of its main competitors, Centurion Bank of Punjab, for INR 95.1 billion (US$2.4 billion) in February 2008. With the acquisition, HDFC increased its employee base to 30,500 workers, gained greater access into rural areas in the state of Punjab, and emerged in control of assets worth more than INR 1.5 trillion. Before being acquired by HDFC, Centurion had gone acquisition crazy itself. In 2005, Centurion acquired the Central Bank of Punjab, while two years later, in August 2007, it finalized a merger with Lord Krishna Bank. Because of these recent mergers, HDFC's acquisition of Centurion actually represented the integration of four major Indian banks. GETTING HIRED Passion required At HDFC's careers page (www.hdfcbank.com/aboutus/careers/career.htm) you can search for vacancies by location and department. Positions are separated by function into retail liabilities, retails assets, wholesale banking and support functions. If candidates cannot find a position that matches their profile, they can submit an application online for “regular openings,” a broader category that includes positions such as “branch head-retail branch banking” and “relationship manager-retail branch banking.” Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 223 HYUNDAI SECURITIES CO., LTD. 34-4 Hyundai Securities Building Yeoeuido-dong, Youngdeungpo-gu Seoul, 150-735 South Korea Phone: +82-2-768-0114 Fax: +82-2-783-9746 eng.youfirst.co.kr THE STATS Employer Type: Public Company Ticker Symbol: 003450 (KRX) President & CEO: Gyeong Su Choi Revenue: KRW 1.93 trillion (FYE 3/09) Net Income: KRW 121.6 billion No. of Employees: 2,454 No. of Offices: 147 LOCATIONS IN ASIA PACIFIC Ho Chi Minh City Hong Kong Seoul Shanghai Tokyo KEY COMPETITORS Korea Development Bank Samsung Securities EMPLOYMENT CONTACT BUSINESSES Brokerage Corporate Financial Services Research Wealth Management www.youfirst.co.kr (in Korean) THE SCOOP No, you first South Korea's Hyundai Securities takes its customer-prioritizing motto—"You First"—very seriously; it even became the address of the bank's web site. Founded in 1962, Hyundai Securities offers comprehensive wealth management, brokerage, corporate financial services and research. Its network in South Korea includes 140 offices, plus seven several overseas locations that are operated through international subsidiaries. For many years Hyundai Securities was part of Hyundai, one of the massive South Korean conglomerates (known in Korean as "chaebol") that was founded in 1947 by Chung Ju-yung and his brothers. Initially, Hyundai was a simple construction company, but it soon expanded into other industries, eventually becoming the largest chaebol in South Korea. In the wake of the 1997 Asian financial crisis, many Hyundai businesses were spun off, including the Hyundai Automotive Group, the Hyundai Heavy Industries Group and the Hyundai Group. Customized for: vinh (
[email protected]) Chung Ju-yung's death in 2001 led to further restructuring and the Hyundai Group's companies continued to be split apart. A year earlier, a consortium led by U.S.-based insurance giant American International Group (AIG) made a US$800 million bid for Hyundai Securities, Hyundai Investment Trust and Securities and Hyundai Investment Trust Management. After lengthy negotiations that lasted more than a year, the deal ground to a halt, sidelined by the consortium's alleged undervaluing of Hyundai Securities and U.S. concerns about South Korea's openness toward foreign investment. At home and abroad Today, Hyundai Securities serves institutional investors, government agencies, asset management companies and corporations in South Korea and around the world. Its investment banking services include M&A advisory, investment arrangement, real-estate-related structured 224 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Hyundai Securities Co., Ltd. financing, corporate real estate brokerage, project financing and IPOs. Its wealth management services include several types of funds and bonds, derivatives, trust and corporate pensions and integrated wealth management, including cash management accounts. Hyundai Securities also provides brokerage services like futures options brokerage, stock brokerage, overseas marketable securities brokerage and underwriting and equity-linked warrant (ELW) brokerage and issuance. Hyundai Securities Europe Ltd. works with European companies and South Korean companies based in Europe, while Hyundai Securities America Inc. provides underwriting, dealing and brokering of South Korean stocks and bonds. It also provides corporate financial services and works with U.S.-based institutional investors who wish to invest in South Korean companies. Finally, Hyundai Securities Asia Ltd. works outside South Korea to offer equity and fixed income brokerage and corporate finance services in the rest of Asia. Headquartered in Seoul, Hyundai Securities is led by President and CEO Gyeong Su Choi. Ready to grow Hyundai Securities is on a mission to expand. By 2010, the bank plans to have KRW 5 trillion in equity, KRW 150 trillion in client assets and a 20 percent return on equity. In order to meet these goals, Hyundai Securities has been ramping up its infrastructure and unrolling new products in recent years. In 2006, the bank made a major change to its wealth management division when it introduced cash management accounts (CMAs); since then, Hyundai has begun offering MSN Messenger trading, online teleconference investment advisory services and two-way communication TV teleconference trading services. It has also invested heavily in IT infrastructure, investing KRW 8.9 billion in 2006-07 and setting aside an additional KRW 40 billion to build a new online system. IN THE NEWS February 2009: Industry restructure could spell bonanza for Hyundai South Korea’s Capital Market Consolidation Act (CMCA) took effect, intended by the government to develop world-class investment banks in the country. By creating more brokerages and financial service offerings in South Korea, the government hopes to build the nation into a financial powerhouse. When the CMCA was announced, several global and South Korean companies applied for government permits to form brokerage or asset management businesses; while earlier, tough state regulations kept many firms from setting up shop. Under the CMCA, securities firms must either be subsidiaries of local conglomerates, such as Hyundai Securities, or of banks. October 2008: When two chairs become one Hyundai Securities announced that Jung Wung Kim, a Co-CEO of the firm, resigned from the company. After Kim gave up his office, Gyeong Su Choi became the sole CEO of the firm. Choi had become a Co-CEO with Kim just a few months earlier in June 2008. GETTING HIRED Korean speakers wanted Want to work for Hyundai Securities? If you're not fluent in Korean, you will be hard-pressed to find hiring information. However, if you can read Korean, the "company introduction" link at the top of www.youfirst.co.kr features a career area with job postings, a breakdown of departments, employee testimonials and a message board. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 225 ICICI BANK LIMITED ICICI Bank Towers Bandra-Kurla Complex Mumbai, 400 051 India Phone: +91-022-26531414 Fax: +91-022-26531122 www.icicibank.com THE STATS Employer Type: Public Company Ticker Symbol: IBN (NYSE), 532174 (BSE) Managing Director & CEO: Chanda Kochhar Net Interest Income: INR 83.67 billion (FYE 3/09) Net Profit: INR 37.58 billion No. of Employees: 73,362 (Worldwide) No. of Offices: 1,568 LOCATIONS IN ASIA PACIFIC Hong Kong India Singapore Sri Lanka KEY COMPETITORS HDFC Bank Kotak Mahindra Capital Company State Bank of India BUSINESSES Government Banking International Banking Retail Banking Rural, Micro-Banking and Agribusiness Wholesale Banking EMPLOYMENT CONTACT www.icicicareers.com THE SCOOP The mission expands The Industrial Credit and Investment Corporation of India (ICICI) was formed by the World Bank, the Indian government and representatives from several Indian industries in 1955 with the goal of creating a financial institution that could provide project financing for Indian businesses. By the 1990s, ICICI had outgrown its original mission, offering diversified financial services to customers and clients around the world. ICICI Bank was originally a subsidiary of ICICI Limited, an Indian financial institution. In 1998, ICICI Ltd. began reducing its stake in the bank to 46 percent. The reduction began with a public offering of shares in India, which led to a listing of American depository receipts (ADRs) on the New York Stock Exchange in 2000. In 2001, ICICI Bank merged with the Bank of Madura. Additional stock sales in ICICI Bank were held in 2001 and 2002. Finally, ICICI Ltd. and ICICI Bank decided to merge, combining the group's financing and banking operations into a single organization. This transaction was completed in April 2002. With total assets of INR 3.66 trillion (US$76 billion) worldwide as of September 30, 2009, ICICI Bank is India's second-largest bank. It has approximately 1,568 offices and 4,883 ATMs in India, plus international operations in 18 countries and territories, including Hong Kong, Singapore and Sri Lanka, as well as representative offices in Mainland China, Indonesia, Malaysia and Thailand. ICICI Bank offers a full range of banking products and financial services, including corporate banking, retail banking, investment banking, insurance, venture capital and asset management. Customized for: vinh (
[email protected]) All across India ICICI Bank has five Indian subsidiaries in addition to its international subsidiaries. ICICI Securities offers equity underwriting, brokerage and dealership of government securities and also owns an online brokerage platform, ICICIdirect.com. ICICI Venture Funds Management Company (known as ICICI Venture) manages funds that provide venture capital funding for start-up companies and invests in private equity. ICICI's 226 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition ICICI Bank Limited insurance subsidiaries are ICICI Prudential Life Insurance and ICICI Lombard General Insurance. Finally, ICICI Prudential Asset Management offers asset management products and services to corporate clients. The firm focuses on five core business: retail banking, wholesale banking, international banking, government banking, and rural micro-banking and agribusiness. The company also possesses a small private banking division. The retail banking group is India's largest provider of retail credit, with more than 25 million customer accounts. The bank’s retail network nearly doubled from 2007 to 2009, increasing from 755 branches to nearly 1,600 branches. The retail division also includes ICICI's SME (small-and-medium-sized enterprises) group. The wholesale banking group serves large and medium-sized corporate clients, offering credit and treasury products, project finance, investment banking, structured finance and transaction services. In 2007, the corporate banking business was reorganized into two groups: Global Clients, which works with multinational corporations and corporations developing international investments; and Major Clients, which handles the firm's other corporate banking business. ICICI's investment banking group is closely integrated with both Global Clients and Major Clients. ICICI's Bank’s rural banking efforts are managed by the rural, micro-banking and agri-business group, which offers microfinance, agricultural banking, and other products and services aimed at India's rural population. ICICI Bank offers crop loans, equipment financing, capital loans, savings, investment and insurance products though this division. By collaborating with micro finance institutions, ICICI Bank developed a rural customer base of approximately 3.5 million by 2009. In an effort to further improve credit penetration to customers based in rural areas, the bank launched the “Kamdhenu—Cattle Loans Campaign” in 2009. The international banking group oversees ICICI Bank’s operations outside of India, providing international trade finance and correspondent banking. The division also offers banking for non-resident Indians (NRIs). ICICI Bank offers a broad range of NRI products and services, and as of March 2009, the bank had more than 500,000 NRI customers. In 2009, ICICI Bank consolidated its private banking business across India and abroad for high-net worth clients, launching the ICICI Group Global Clients segment, which offers exclusive wealth management services to about 20,000 customers globally. Let’s get rural! In April 2007, ICICI Bank merged with rural Indian bank superstar Sangli Bank. The all-stock deal handed all of Sangli's 190 branches and 1,850 employees over to ICICI Bank. The deal helped ICICI Bank gain a stronger footing in rural sections of India because approximately half of Sangli's locations were in rural areas. At the time of the deal, Sangli held deposits of over INR 20 billion. Awards and rankings • • • • • • • • Best Domestic Bank in India (The Asset, 2007-2009) Most Admired Knowledge (Financial Services) Enterprise in India (Teleos, 2009) Top 20, World's 100 Most Powerful Women: Chanda Kochhar, Managing Director & CEO, ICICI (Forbes, 2009) Best Derivative House, India (Asset Triple A Investment Awards, 2009) Best NRI Services Bank (World Finance, 2009) Excellence in Private Banking, APAC Region (World Finance, 2009) Excellence in Remittance Business, APAC Region (World Finance, 2009) Best Bank Award for Initiatives in Mobile Payments and Banking (IDRBT, 2009) IN THE NEWS Customized for: vinh (
[email protected]) June 2009: Putting the vet to sleep ICICI Venture Funds Management, the private equity arm of the ICICI Bank, announced plans to sell Vetnex Animal Health, the veterinary care division of ICICI-owned biotech company RFCL to Pfizer Animal Health for an undisclosed sum. ICICI originally purchased RFCL from the Indian pharmaceutical giant Ranbaxy Laboratories back in 2005. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 227 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition ICICI Bank Limited May 2009: American Visa Under an agreement signed between ICICI Bank and Visa in May 2009, the bank will soon issue debit cards in the U.S. through its New York branch. The cards are targeted at the bank’s Global Indian account customers, comprised of Indian nationals living abroad who require banking services within U.S. borders. The debit card will allow customers to make withdrawals from both a U.S. dollar checking account and from an INR account for use back home. ICICI Bank first opened a New York branch in Manhattan back in March 2008. May 2009: Branching out ICICI Bank announced plans to open an additional 580 branches within a year’s time. However, according to CEO Chanda Kochhar, instead of hiring new employees to staff the branches, the firm plans to “re-skill and re-train some people” to meet the needs of the expanded network. The bank has expanded rapidly since 2007 when it had just 750 branches. When the newly announced locations are opened, ICICI Bank will have a network totaling more than 2,000 branches. December 2008: First lady of the bank After Kandapur V. Kamath announced that he was retiring from his post as ICICI Bank CEO and would assume the role of non-executive Chairman, the bank announced in December 2008 that it had selected Chanda Kochhar to succeed him as CEO and Managing Director. Since joining ICICI Bank as a management trainee in 1984, Kochhar steadily climbed the ranks and was instrumental in establishing the bank’s commercial banking operations in 1993. Before assuming the CEO post in April 2009, Kochhar last served as the Deputy Managing Director, a position she held since April 2006. August 2008: Risky business When it comes to banking, you have to know when to hold ‘em and when to fold ‘em. In August 2008, ICICI Bank sold US$275 million worth of volatile overseas credit derivatives as a way of lowering its exposure to risk amidst the global financial crisis. However, although the bank dumped foreign CDs, it retained CDs in which the underlying loans are held by Indian companies. As of March 31, 2008, ICICI’s total CD exposure was roughly US$1.6 billion. GETTING HIRED Join the fray ICICI Bank’s careers site can be found at www.icicicareers.com/index.htm, where job seekers can browse current openings, check out the qualifications required and descriptions of listed positions, or create a profile for the bank's "talent database." Interested candidates can also apply for positions online. The firm also has a campus recruitment section on its site, which mostly targets business school graduates for its management programs. The bank details the selection process, which involves several ability and personality tests in addition to the standard application. Test results are posted directly on ICICI Bank’s site for applicants register a resume code with their application. (Don’t worry: results are kept private.) Stars promoted from within Customized for: vinh (
[email protected]) While ICICI Bank continues to recruit at top business schools, it has systems in place to help make sure its executives come from within. Each year, roughly 12 executive spots open at ICICI Bank and its subsidiaries. Formal promotion systems at the bank aren't just based on standardized performance reports. Former CEO Kamath put a "star system" in place for the bank's top performers, who forfeit bonuses for faster advancement. A group of 2,000 managers across the group are organized into a special leadership pool, receiving 360-degree reviews and analyses by the HR department. All managers in the leadership pool—from managing directors on down—must go through the same process. 228 © 2009 Vault.com Inc. INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED No. 55 Fuxingmennei Street Xicheng District Beijing, 100032 China Phone: +86-10-6610-8608 Fax: +86-10-6610-6139 www.icbc-ltd.com/ICBCLtd/en/ THE STATS Employer Type: Public Company Ticker Symbol: 601398 (SSE), 1398 (HKSE) Chairman & Executive Director: Yang Kaisheng Revenue: US$100.06 billion Net Income: US$35.27 billion (FYE 12/08) No. of Employees: 385,609 No. of Offices: 17,826 (including correspondent banks worldwide) LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • Indonesia • Japan • Macau • Singapore • South Korea KEY COMPETITORS Agricultural Bank of China Bank of China China Construction Bank BUSINESSES Bank Card Corporate Banking E-Banking Personal Banking EMPLOYMENT CONTACT www.icbc-ltd.com/icbcltd/career/join%20us/ www.icbcasia.com/eng/about/career/career.shtml THE SCOOP From advisory to Peony The Industrial and Commercial Bank of China (ICBC) was founded in 1984 as a limited company owned by the Chinese government, and wholly restructured as a joint-stock limited company in October 2005 before listing itself on both the Shanghai and Hong Kong stock exchange the following year. Through its business lines and subsidiaries, ICBC offers a full range of banking and financial services. The bank is broken down into four core business lines: personal banking, corporate banking, e-banking and bank cards. Personal banking includes loans, deposits, e-banking, investment and financing. Corporate banking includes services for small- and mid-sized enterprises (SMEs), institutional banking, asset custody, corporate e-banking, investment banking, clearing and settlement services, trading, financing, international trade financing, foreign exchange services, loans and corporate deposits. E-banking lets customers and clients conduct business by phone or internet, as well as providing enterprise banking services. Bank cards oversees operations for ICBC's debit and credit cards, most of which are offered under the Peony brand. ICBC maintains international branches in Asia and Europe, including branches in Hong Kong, Singapore, Macau, Tokyo, Seoul, Germany, New York, and Luxembourg. It also has relationships and affiliations with institutions in the U.K., Australia, Mexico and the U.S. Through these branches and affiliates, the bank has established varying degrees of operations in 117 countries worldwide. At the end of August 2007, ICBC broke the RMB 1 trillion barrier, becoming the first commercial bank in mainland China with over RMB 1 trillion in custodian assets. As of May 2009, the firm boasted RMB 9.75 trillion in assets, making ICBC the world’s largest bank by market value. ICBC is also the world’s most profitable bank, claiming US$35.27 billion in net income on revenue of US$100 billion for fiscal 2008 (a 35 percent net profit margin). Customized for: vinh (
[email protected]) 229 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Industrial and Commercial Bank of China Limited A record-breaking debut On October 27, 2006, ICBC set two records with its initial public offering: it became the first company to list simultaneously on the Hong Kong and Shanghai stock exchanges, and its IPO ranked as the world's largest public offering at the time, breaking the previous record of US$18.4 billion held by Japanese mobile phone company NTT DoCoMo in 1998. Several international institutions made investments in ICBC in 2006. American investment bank Goldman Sachs bought a 5.75 percent stake for US$2.6 billion, and Germany's Dresdner Bank purchased a share worth US$1 billion. The American Express credit card company also invested US$200 million. ICBC's initial listings brought in US$14 billion on the Hong Kong exchange and US$5.1 billion in Shanghai, but as demand for shares of China's largest bank kept rising, additional placement options were exercised. In the end, ICBC's IPO raised nearly US$22 billion, allowing it to clear up billions of dollars owed on bad debts. In July 2007, ICBC overtook Citibank for the first time as the world's largest bank by market capitalization, clocking in at US$254 billion as Citi slipped to US$251 billion. Venturing abroad In 2006, ICBC bought a 90 percent stake in of PT Bank Halim Indonesia, beginning a long string of foreign acquisitions as the bank strove to expand internationally. ICBC made another significant purchase in December 2007, nabbing a 20 percent stake in South Africa's Standard Bank, the largest bank in Africa by assets. The deal, which was announced in October 2007, also opened the door for a proposed US$1 billion fund for joint investments in global mining, oil and gas projects. ICBC paid US$5.6 billion for the Standard Bank shares. Another deal closed in January 2008 when ICBC acquired 80 percent of Macau's Seng Heng Bank for US$583 million. This was ICBC's first venture into Macau, which is known as the Las Vegas of Asia for its robust gaming sector. A month later, ICBC announced that it had been granted approval by the government of Qatar to establish a branch in Doha. The office opened in October 2008, and was expected to become the first Chinese banking presence in the Persian Gulf. However, ICBC beat itself to its own game, by opening a branch in Dubai just days earlier. According to ICBC, its Doha office primarily offers wholesale banking services, with additional services in trust, asset management and financial consulting. The Dubai operation provides a full range of financial services, including asset management, consultation and trade finance. ICBC expects the two bases to form a platform that will generate accessible trade and investment between China, the UAE and other Middle Eastern countries, as well as providing a route for the bank’s operations in North Africa. The firm continued its global expansion in the second half of 2008, establishing an Australian subsidiary in Sydney in September, and opening its first U.S. branch in New York the following October. Both branches are expected to take advantage of the growing value of trade between the U.K. and Australian markets and mainland China. The U.S. branch engages in wholesale deposits, loans, trade financing, U.S. dollar clearing, treasury and other banking businesses. ICBC’s Sydney branch, on the other hand, specializes in international settlement, trade financing, project financing and capital transaction. ICBC has also been working its way into Thailand. The firm currently owns a 49 percent stake in Thai bank ACL, and has recently shown that is hungry for more. However, ICBC is currently hindered by a Thai law that limits foreign shareholders to owning no more than 49 percent of a Thai bank. In June 2009, the firm made a plea for the Thai government to lift the shareholding cap during a proposal in Beijing. Thailand’s biggest lender, Bangkok Bank, owns a 19 percent stake in ACL and has agreed to sell it to ICBC pending approval from the Thai government. Bangkok Bank had originally hoped to settle the sale by the end of 2007. Awards and rankings • Best Bank in China, Best Cash Management Bank of China (Finance Asia, 2008) • Best Bank in China, Best Corporate Lending Bank of China, Best Sub-Custodian Bank in China, Best Consumer Internet Bank of China, Best Corporate/Institutional Internet Bank of China, Best Consumer Internet Bank of Asia, Best Consumer Internet Bank of Asia: Best Investment Management Services, Best Corporate/Institutional Internet Bank of Asia: Best Investment Management Services, Best Trading Financing Bank of China (Global Finance, 2008) • Best Business Continuity Management Award, Bank of the Year in Asia, Bank of the Year in China, Best Deal in China, Best Deal in South Africa , Best Corporate Social Responsibility Award, Best Corporate Image Award from The Banker (The Banker, 2008) • Best Bank in China, Best at Fixed Investment Portfolio Management in China, Best at Trusted Services in China (Euromoney, 2008) • Best Cash Management Bank of China, Best Domestic Bank in China, Best Integrated Deal of China, Best Sub-Custodian Bank of Mainland China (The Asset, 2008) Customized for: vinh (
[email protected]) 230 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Industrial and Commercial Bank of China Limited IN THE NEWS June 2009: First China, next, the world! Continuing its quest to apparently conquer the global banking industry, ICBC announced its intention to purchase 70 percent of Bank of East Asia’s Canadian unit. The HK$567 million deal will add to a long list of overseas ventures purchased by ICBC, displaying the firm’s keen interest in international expansion. Funding for the Canadian unit will likely be supported by ICBC selling 75 percent stake of its stake in the Hong Kong-based joint venture ICEA Finance to Bank of East Asia. At the time the sale was announced, ICBC owned 25 percent of the joint venture and was expected to net HK$372 million from its sale. September 2008: Unbonded Like many banks around the world, ICBC found itself tied to the Lehman Brothers disaster. The Chinese bank held approximately US$151.8 million in Lehman Brothers bonds in September 2008 when Lehman filed for bankruptcy. ICBC was among only three mainland Chinese commercial banks that had the misfortune of holding such bonds. However, the bank claimed that the bonds would not have a significant impact on its finances as they accounted for only 0.03 and 0.01 percent of the bank’s total bond portfolio and assets respectively. GETTING HIRED Develop Yourself ICBC’s main career page at www.icbc-ltd.com/icbcltd/career/join_us/ contains information on the bank’s working environment and human resource philosophy. ICBC promotes the idea that outstanding work performance will be met with high rewards. Employee development is emphasized, and, according to material on the career site, the bank strives to provide clear channels for career progression and evaluation. Employees at ICBC are able to attend a multitude of internal training courses that are tailored to fit workers across the career chain. A vocational training program allows employees to develop their industry knowledge and skills across three levels that include company fundamentals, professional competence and job operational skills, as well as personal development in fields such as language and organizational skills. New recruits out of school are able to enroll in the Employee Job Operation Training Program. The program aims to help new employees quickly master the skills required for their position and “transform from a university student to an ICBC employee.” New recruits can also benefit from the High-Level Financial Professional Training Program that aims to develop and train select employees in specialized fields. The Vocational Qualification and Certification Training Program is tailored to all ICBC employees and provides clear definitions for job goals and requirements. The program is currently in a testing stage, but will soon be provided to all ICBC employees as a means of career development. Furthermore, ICBC boats an extensive internet learning platform available to employees. Launched in 2002, it has fast become the top internet university among ICBC peers in China’s domestic financial sector. The system provides employee self-learning, informational acquisition channels, online mentoring and classrooms from any location at any time. Contact your local ICBC ICBC does not list available job positions on its main career page. However, there are a number of links to country-specific ICBC web sites in Asia Pacific available from the main firm web site, under the “Global Locations” link on the “About Us” section. These sites include Hong Kong, Macau, Singapore, Tokyo, Seoul, Pusan (South Korea) and Sydney, as well as ICBC Indonesia and ICBC (Asia), many of which include contact information. ICBC (Asia) does however contain a list of available positions for potential candidates, the link of which is provided above. Applicants can also send a resume including "present and expected salary" to Human Resources Manager, GPO Box 872, Hong Kong—or by email to
[email protected]. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 231 KOREA DEVELOPMENT BANK 16-3 Yeouido-dong Yeongdeungpo-gu Seoul, 150-973 South Korea Phone: +82-2-787-6450 Fax: +82-2-787-6496 www.kdb.co.kr THE STATS Employer Type: Government-owned Company CEO & Chairman: Min Euoo-Sung Net Income: KRW 350 billion (FYE 12/08) No. of Employees: 2,100 No. of Offices: 56 LOCATIONS IN ASIA PACIFIC China Hong Kong (through a subsidiary) Japan Kazakhstan (through a subsidiary) Singapore South Korea KEY COMPETITORS Hyundai Securities Samsung Securities EMPLOYMENT CONTACT “Contact Us” from the “About KDB” link at www.kdb.co.kr BUSINESSES Consulting • Corporate Banking • Corporate Restructuring • Funding Activities • International Banking • Investment Banking • Research • Trust & Bancassurance THE SCOOP Beyond reconstruction The Korea Development Bank (KDB) was founded in 1954 as the Korea Reconstruction Bank, as part of a government effort to provide financing for the restoration of infrastructure destroyed in the Korean War. The bank also provided support for some of the country's core industries, particularly the energy sector. In the years immediately following its formation, the Korea Reconstruction Bank issued the country's first industrial finance bonds, then went on to fund supply chains for the energy, chemical and export industries in conjunction with a five-year economic development plan. Stock underwriting, bond guarantee and foreign capital services were added to the bank's roster of businesses, and in 1969 it was renamed the Korea Development Bank. In the 1980s and 1990s, KDB launched its trust business, received government authorization to approve applications for foreign direct investment, started issuing global bonds and began equity investment activities, focusing especially on high-tech companies and small-to mid-sized enterprises (SMEs). Customized for: vinh (
[email protected]) Nowadays, KDB provides a range of financial services, including investment banking, corporate banking, global banking, consulting and restructuring to customers in Asia and Europe. Headquartered in Seoul, KDB is still wholly owned by the South Korean government. Under the terms of its ownership, the government is responsible for the bank's solvency. Any annual net loss must be offset by government reserves, and the government can provide capital infusions (in the form of property, securities or cash) to the bank without parliamentary approval. After the Asian financial crisis of 1997, the South Korean government passed a law that allows emergency credit extensions to KDB if necessary. In South Korea, KDB operates through a number of subsidiaries. KDB Capital Corporation was established in 1999 and handles lending, leasing, credit cards and venture capital. Daewoo Securities, which became a subsidiary in May 2000, offers services including securities trading, brokerage, underwriting and sales of beneficiary certificates. Finally, in May 2004, KDB Asset Management Corporation (formerly 232 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Korea Development Bank known as Seoul Investment Trust Management) became a subsidiary. It deals with asset management, investment trust management and investment advisory services. In addition to its South Korean operations, KDB has five international subsidiaries: KDB Asia Ltd., which is based in Hong Kong; KDB Bank (Hungary) Ltd.; KDB Ireland; Banco KDB Do Brasil, in Sao Paulo; and UzKDB Bank in Tashkent, Kazakhstan. The bank also has international branch offices located in Beijing, Guangzhou, China; London; New York; Shanghai; Singapore; and Tokyo. More recently, KDB opened representative offices in Frankfurt and Shenyang, China. Private time Investment banking makes up about 80 percent of KDB's business. In January 2008, reports surfaced that South Korea's new government planned to combine KDB's investment banking division with subsidiary Daewoo Securities and then sell off the consolidated company. If the deal happens, it will be South Korea's biggest M&A transaction to date. Reuters quoted South Korea's senior secretary for national policy planning, Kwak Seung-jun, as saying that the combined KDB-Daewoo sale could raise more than KRW 20 trillion. Lee Myung-bak, South Korea's current president, ran on a platform of promises to privatize state-owned assets and to encourage economic development by allowing South Korean corporations to own banks. KDB already owns a 39 percent share in Daewoo Securities; it's also a major stakeholder in industrial companies like Hyundai Engineering, Daewoo Shipbuilding and Marine Engineering, and Hynix Semiconductor. For its part, in February 2008 KDB set up a task force to study the changes it would need to make for its investment banking business to become privatized. At the same time, KDB began considering the possibility of selling off its shares of Korean industrial companies—possibly to other banks—as a way of streamlining and raising capital. Still, even if the government goes through with the sale, KDB's international banking, corporate restructuring and funding businesses would remain under state control. Onward to '11 For several years, KDB has been working toward a set of goals it calls "Vision 2011." According to the bank, Vision 2011 is designed "to help KDB effectively carry out its role as a public policy institution and also heighten its competitiveness to cope with the increasing globalization of finance." The first stage of Vision 2011 took place from 2003 to 2006 and involved revamping the bank’s core businesses—investment banking, corporate banking, international banking, corporate restructuring and consulting services—in order to become a corporate finance leader in South Korea. Stage two, which runs from 2007 to 2011, aims to make KDB a top player across Asia by increasing its competitiveness, improving asset quality and bringing profitability in line with its global competitors. In the second phase of the plan, KDB has been focusing heavily on corporate restructuring activities. Throughout 2008 and 2009, KDB has purchased distressed assets of a number of large corporations (“chaebol” firms in Korean) as well as SMEs. KDB then helps these firms restructure and eventually sells its purchased assets once a profit can be made from the sale. The bank has also sought partnerships with private equity giants. In May 2009, it signed an agreement with private equity giant Kohlberg Kravis & Roberts to explore investment opportunities. IN THE NEWS August 2009: Funding the needy Customized for: vinh (
[email protected]) KDB, along with the Industrial Bank of Korea, agreed to create a 2 trillion won ($1.61 billion) fund to help ailing private companies in Korea. The fund is a part of a larger state fund worth 5 trillion won that the government hopes will increase private-sector investment. The government indicated that it wants to ultimately have 20 trillion won in the fund. June 2009: No small turnaround In light of the global financial crisis, KDB established a turnaround fund in June 2009 aimed at assisting SMEs through corporate restructuring and strategic reassessment. KDB’s fund, which operates in the style of private equity investments by purchasing distressed companies and then remodeling them to sell at a profit. The first such firm KDB reinvigorated was Sunstar Precision, a local manufacturer of embroidery machines. KDB plans to expand the turnaround fund to KRW 1 trillion by the latter part of 2009. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 233 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Korea Development Bank March 2009: Doing good by paying noobs less The South Korean government launched a nationwide job-sharing campaign in early 2009, urging companies to be prudent in their allocation of resources for wage distribution. The government’s hope is that employers will cut wages for some employees, while using the savings to create positions for new hires. KDB joined the program in March 2009, when it announced that it would cut basic wages of newcomers by 20 percent, using the savings to hire 200 interns throughout the year. September 2008: Privatization still on Despite the global financial crisis, the South Korean government remains optimistic that state-run companies will eventually go private. In September 2008, Jun Kwang-woo, chairman of the Financial Services Commission, said, "The commission will expand competition and autonomy within the financial industry through deregulation, and accelerate sectorial reshaping through the privatization of Korea Development Bank, which will reduce state intervention in the industry." The decision to privatize KDB has been criticized by many South Korean politicians in recent years due largely to the difficulties on Wall Street, which had far-reaching effects that spread over to the Asian markets. In an earlier statement addressing the controversial issue of KDB’s privatization, the bank's governor and chairman, Kim Chang-lok, told The Korea Herald that he would not fully support the plan until the Korean investment banking industry—and KDB's own investment banking business—had more time to grow. "Korea's investment banking is at an infant stage, and not even a toddler stage yet, compared with global ones," he said. "However, I'm confident that KDB's investment banking will build its position, at least in Asia, in five years." Kim also noted that as a state-owned entity, KDB had still managed to pay billion-won dividends for three consecutive years and maintained an excellent capital ratio. "Compared to other public corporations, the bank's macro indexes have greatly improved." He added that spinning off KDB's investment banking unit while keeping other business under government control would render the privatization "meaningless." Despite Kim's reservations, the Lee Myung-bak government has bulldozed ahead with the deal. Plans are set to complete the privatization of KDB by 2012. The first step in 2008 is the creation and transformation of a holding company, the Korea Development Fund (KDF). After its establishment, the KDF looks to be listed on the South Korean stock exchange in 2009. Per the plan, the 49 percent government stake in KDF is to be sold by 2010, followed by disposal of the remaining 51 percent share by the end of Lee Myung-bak's term in 2012. GETTING HIRED Not much to go on There is no specific hiring information on KDB's English site at www.kdb.co.kr. Under "Networks and Subsidiaries," you can find an extensive list of offices in the Asia Pacific region, with direct contact information for each. Locations include Guangzhou, China; Shanghai; Singapore; and Tokyo, with a subsidiary in Hong Kong. Representative offices are also present in Beijing and Shenyang, China. Links to KDB's South Korean subsidiaries—KDB Capital Corporation, Daewoo Securities and KDB Asset Management Corporation—are also provided. If you can read Chinese or Korean, you can certainly try to find career information from the firm's main web site. The "Contact Us" link from KDB's site gives you a chance to send your questions about careers and other unavailable information. Alternately, you could send a resume directly to the company's headquarters at Korea Development Bank, 16-3 Yeouido-dong, Yeongdeungpo-gu, Seoul, 150-973, South Korea—or call +82-2-787-5821. Customized for: vinh (
[email protected]) 234 © 2009 Vault.com Inc. KOTAK MAHINDRA CAPITAL COMPANY 3rd Floor, Bakhtawar 229 Nariman Point Mumbai, 400 021 India Phone: +91-22-6634-1100 Fax: +91-22-2282-6632 www.kmcc.co.in THE STATS Employer Type: Subsidiary of Kotak Mahindra Group Managing Director: Falguni Nayar No. of Employees: 116 No. of Offices: 8 KEY COMPETITORS LOCATIONS IN ASIA PACIFIC Bangalore Delhi Mumbai Mauritius Singapore HDFC Bank ICICI Bank EMPLOYMENT CONTACT www.kmcc.co.in/join_us.html DEPARTMENTS Equity Product Group • Financial Sponsors Group • Infrastructure Products • Mergers & Acquisitions • Structured Finance & Advisory Services THE SCOOP Preeminent Indian investment bank Kotak Mahindra Capital Company (KMCC) is the investment banking arm of Kotak Mahindra Group, a leading financial institution in India with over 20,000 employees. KMCC was originally founded in 1995 as a joint venture between Kotak Mahindra and U.S. investment bank Goldman Sachs. Like its parent, KMCC is headquartered in Mumbai, but has its own office. The firm offers equity issuances, M&A advisory, structured finance services, financial sponsors group and infrastructure services. KMCC has unparalleled experience across all major industry sectors—banking and financial services, fast-moving consumer goods, pharmaceuticals and healthcare, energy and infrastructure, automobiles, aviation and transportation, telecom, technology, retailing, and media and entertainment. The company has played a key role in several industry-defining deals, such as the IPOs for Tech Mahindra, Hughes Software and Maruti Udyog. KMCC has also made a name for itself by being the first Indian investment bank to register with the Securities and Exchange Commission in the U.S. and the Securities & Futures Associates in the U.K. Through its association with Kotak Mahindra Bank and its subsidiaries in New York, London, Mauritius, Singapore and Dubai, KMCC enables Indian corporations to access international capital markets. In addition to working for top technology companies, including British Telecom and Sony, KMCC has also worked its magic for leading financial institutions like Citigroup and Warburg Pincus. Customized for: vinh (
[email protected]) Elite seven In addition to its M&A and equity capital markets groups, KMCC has what it calls its Financial Sponsors Group (FSG). Set up in 2005, FSG is an initiative to provide the full suite of investment banking services for leading global and domestic private equity and hedge funds. The firm's FSG desk has seven experts who work closely with companies, acting as buy- and sell-side advisors for deals in a wide variety of industries. 235 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Kotak Mahindra Capital Company FSG's advisory and execution offerings include private equity financing, venture funding, mezzanine financing, referential allotments, buyouts, pre-IPO services, PIPE (private investment in public equity), secondary sales and block purchases. KMCC established an Infrastructure Group in December 2007 to provide the entire gamut of investment banking solutions to public and private sector corporations engaged in infrastructure development. The services offered include bid advisory services, partner search and strategic alliances, project advisory services, debt and quasi-debt mobilization, private equity mobilization, and project-level acquisitions and divestitures. Good advice KMCC lent its merchant banking and advisory services to several big deals in 2007 and 2008. The firm was the book running lead manager (BRLM) on Reliance Power's INR 115.6 billion IPO in January 2008, and the global coordinator and BRLM on Indian real estate developer DLF Universal's INR 91.9 billion IPO in June 2007. KMCC also successfully completed some marquee qualified institutional placements (QIP) for GMR Infrastructure (INR 39.7 billion), Infrastructure Development Finance Co. (INR 21 billion) and the Bank of India (INR 13.6 billion), among others. KMCC has also displayed prowess in the M&A arena by advising on some of the largest and most complex M&A transactions in India, including managing the entry of Irish buildings materials player Cement Roadstone Holdings (CRH) into India when it acquired a 50 percent stake in My Home Industries in 2008. KMCC also acted as exclusive advisor to Gokaldas Exports for sale of its controlling stake to Blackstone in 2007, and managing the related open offer by Blackstone. In addition, the firm is the exclusive advisor to the Bombay Stock Exchange and managed the first demutualization of the stock exchange in India. Goldman becomes a competitor KMCC enjoyed a mutually beneficial relationship in its joint venture with Goldman Sachs until May 2006, when Goldman decided to go it alone. Kotak bought out Goldman's 25 percent stake after Goldman announced plans to invest US$1 billion in investment banking, private equity, real estate and private wealth management in India. "The Indian market represents tremendous growth and opportunity," Brooks Entwistle, CEO of Goldman Sachs' India operations, told The Hindu Business Line of his firm's decision to end ties with KMCC. "Now, more than ever, there is a compelling case for us to build an onshore presence that is fully integrated with our global businesses." Awards and rankings • • • • • • • • Best Investment Bank in India (Finance Asia, 2006-2009) Best Investment Bank in India (Global Finance, 2008-2009) Best Equity House in India (Asiamoney, 2008-2009) Best Investment Bank in India (Asset Asian Awards, 2006-2008) No. 1 for fund raising through IPOs and QIPs (Prime League Tables, 2008) Best Equity House in India (Finance Asia, 2008) India Equity House of the Year (International Financing Review Asia, 2008) Best Domestic Equity House (Asiamoney, 2008) IN THE NEWS Customized for: vinh (
[email protected]) December 2009: Deal with Russia Kotak Investment Banking partnered up with Russian investment bank Renaissance Capital, entering into an agreement to co-operate on cross-border M&A deals in the markets where the two banks do business. In addition to Russia, Renaissance has a strong M&A practice in the Commonwealth of Independent States (CIS) and Africa. 236 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Kotak Mahindra Capital Company February 2009: Samurai pact KMCC stepped into the land of samurai warriors in February 2009 when it signed an agreement with Japanese investment bank GCA Savvian to mutually advise on M&A deals between Indian and Japanese companies. According to KMCC Managing Director Falguni Nayar, the company is “trying to develop a network of partners across different geographies.” The alliance with GCA came at a good time; according to a report by the Economic Times, it is estimated that Japanese companies will spend roughly US$8 billion acquiring Indian companies in 2009. January 2008: A good day for Uday Uday Bhansali was appointed as an Executive Director of investment banking for KMCC. Prior to this appointment, Bhansali worked for over 20 years at Accenture, where he was one of the consulting firm’s startup team members in India. Before joining KMCC, he served as the Executive Director of Accenture’s Asia Pacific Energy division, where he was responsible for developing the company’s oil and gas business in the region. GETTING HIRED Grow with intelligent and motivated people On the career’s section of KMCC’s web site (see “join us” at www.kmcc.co.in) job seekers can explore links to the company's different divisions, with career information on each individual page. The bank promotes itself as place where staffers can “contribute, innovate, work and grow with other intelligent and motivated people." Interested candidates can send their resume, along with a cover letter, to KMCC's headquarters at 3rd Floor, Bakhtawar, 229 Nariman Point, Mumbai, 400 021, India. Make sure to address the inquiry to the HR department. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 237 METROPOLITAN BANK AND TRUST COMPANY (METROBANK) 3/F, Annex Building, Metro Bank Plaza Sen. Gil J. Puyat Ave. Makati City, 1200 Philippines Phone: +63-2898-9020 Fax: +63-2816-1133 www.metrobank.com.ph THE STATS Employer Type: Public Company Ticker Symbol: MBT (PSE) President: Arthur Ty Net Income: PHP 23.07 billion (FYE 12/08) Net Profit: PHP 4.4 billion No. of Employees: 8,721 No. of Offices: 800 LOCATIONS IN ASIA PACIFIC China • Guam • Hong Kong • Japan • Korea • Philippines • Singapore • Taiwan KEY COMPETITORS Banco de Oro Unibank Bank of the Philippine Islands Citi HSBC DEPARTMENTS Capital Markets Corporate Banking Personal Banking Treasury Products Trust Products and Services EMPLOYMENT CONTACT Email:
[email protected] www.metrobank.com.ph/careers.asp THE SCOOP Banking on the Philippines With PHP 764 billion in total assets as of December 2008, Metropolitan Bank and Trust Company (Metrobank) was overtaken after 14 years in the top spot among banks in the Philippines. Now the second-largest bank in the Philippines behind Banco de Oro Unibank, Metrobank provides a wide range of financial services, from commercial and investment banking to insurance and credit cards. According to Asian Banker Journal, the company is one of the top 300 banks in the world, while Asiaweek, a Hong Kong-based weekly news magazine, ranks Metrobank among the top 300 Asian banks. The bank's network includes over 550 branches in the Philippines and eight foreign branches—in China (Shanghai), Japan (Osaka and Tokyo), South Korea (Pusan and Seoul), Taiwan (Taipei), the U.S. (New York) and Guam. Metrobank has a presence across 21 countries through a large number of representative offices, subsidiaries and remittance tie-ups. Much of Metrobank's personal banking services are offered through subsidiary Philippine Savings Bank (PSBank). Though not its largest source of income, the company's retail banking operations serve as its main focus, with 700 domestic branches and 900 ATMs. First Metro Investment Corporation (FMIC), another subsidiary, handles the company's investment banking services. Customized for: vinh (
[email protected]) Metrobank has numerous other subsidiaries, joint ventures and affiliates. Some of the largest include Federal Land, Metrobank Card, SMBC Metro Investment, Philippine AXA Life and Toyota Motors Philippines. Through these operations, Metrobank's other business activities are conducted, including automotive, property development, and insurance. Take you down to Chinatown Despite its current success, Metrobank was created, in a manner of speaking, as an act of youthful rebellion. In the years directly following World War II, the Philippine economy, like those of many other Southeast Asian countries, was just starting to rebuild. George Siao-kian Ty, 238 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Metropolitan Bank and Trust Company (Metrobank) who hailed from an affluent Chinese-Filipino family, was helping with the creation of a family-owned flour mill when he saw firsthand how much the mill had to rely on the good will of money lenders every step of the way. Realizing "how powerful a bank [could be]", the 29-year-old Ty decided to forgo the family business and to establish his own bank. The bank was initially intended to provide financial services to the FilipinoChinese community. Ty eventually gain his family's blessing—and more importantly, its funds—before embarking on the new venture. (The Ty family continues to control the bulk of Metrobank's empire and its numerous subsidiaries today, so they must have been pleased with the return on their risk.) In 1962, the Metropolitan Bank and Trust Company was founded with the help fellow businessmen Don Emilio Abello, Don Pio Pedrosa and Placido Mapa, Sr. The bank opened for business in September 1962 at the Wellington Building in Binondo—Manila's Chinatown. With strong support from the Filipino-Chinese community, in 1963 the bank was able to launch its first branch, in Divisoria, a bargain shopping district in Manila. This was followed by its first provincial branch, in Davao, in 1967. Going international In the 1970s, the company began to make inroads into the international market. Taking advantage of its deep Chinese roots, the bank opened its first foreign branch in Taipei and eventually a representative office in Hong Kong. Then in 1977, the company was authorized by the Central Bank in the Philippines to operate a Foreign Currency Deposit Unit (FCDU), which meant the company could finally conduct transactions denominated in foreign currency. Still, the bank's focus remained on its domestic operations. When the total number of its branches reached 100 later in 1977, the company celebrated by opening a brand new head office in Metro Manila's financial district, Makati City. Although the bank was fairly successful from the get-go, the 1980s was when it truly went big. In 1980, the bank went public on the Philippine Stock Exchange and eventually established branches in Guam, Los Angeles and New York. In 1981, Metrobank was granted a universal banking license, which allowed the company to diversify into other business sectors. Its first act, however, was to acquire a majority stake in the Philippine Savings Bank, at the time the country's second-largest thrift bank. Metrobank's Chinese roots have also come in handy as it broke into the mainland China market relatively early. After establishing representative offices in Shanghai and Beijing (in 1992 and 1994, respectively), the firm was given the go-ahead to open a branch in Shanghai in 2001, the first Philippine bank allowed to do so in China. Eggs in different baskets Starting in the 1970s, Metrobank entered into a number of joint ventures and partnerships outside of the banking sector, many of which continue for the firm today. One of its biggest ventures, property developer Federal Land, was established in 1972. (The firm is sometimes known as Federaland, owing to its logo, which combines the two L's into a twin tower skyscraper.) The venture owns, develops and manages a number of flagship properties in Metro Manila, both commercial and residential. These include the G.T. International Tower (named after George Ty), the Philippine AXA Life Center, Skyland Plaza, Metropolitan Park, and a number of swanky serviced residences. In 1986, a travel agency was established with the U.K.-based Thomas Cook Group, known as Thomas Cook (Philippines). The venture is now 60 percent owned by Metrobank subsidiary First Metro Investment Corporation, as Thomas Cook's entire 40 percent stake was purchased by U.K. foreign exchange firm Travelex in July 2004. Renamed as First Metro Travelex, the venture only lasted a few years until Travelex sold its stake off in February 2007 to another Metrobank group subsidiary—Asia Pacific Top Management International Resources Corporation. Now back under the Metrobank umbrella and known simply as First Metro Travel, the joint company is one of the largest corporate travel agencies in the Philippines, and features the Marco Polo Plaza hotel in Cebu as part of its portfolio. Customized for: vinh (
[email protected]) After travel came wheels. Metrobank teamed up with Japanese automobile giant Toyota Motor Corporation to establish an automobile manufacturing plant in 1988. Quickly growing, the joint venture, Toyota Motor Philippines, became a market leader in a matter of a couple of years. The venture continues to lead the passenger car and commercial vehicle market in the Philippines, with a 37 percent share overall as of May 2008. A related joint venture, Toyota Financial Services Philippines, was established between Metrobank and Toyota in 2002 and handles consumer loans and assistance for vehicle purchases. Metrobank also has interests in the power sector through electricity subsidiary Global Business Power Corporation (GBPC), as well as technology services through subsidiary MBTC Technology. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 239 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Metropolitan Bank and Trust Company (Metrobank) Expanding financial services The banking conglomerate also diversified into other financial services in the 1980s, as it teamed with Australia and New Zealand Banking Corporation to launch a credit card company—Unibancard Corporation—in 1985. Relaunched in 2003 as Metrobank Card Corporation, the venture is now the third-largest credit card company in the Philippines. In the early 1990s, the growing number of Japanese businesses in the Philippines pushed Metrobank to expand in the financial sector and bolster its firm ties with Japan. Sumigin Metro Investment, a joint venture with Japanese financial conglomerate Sumitomo Mitsui Banking Corporation (SMBC), was eventually renamed in 2001 as SMBC Metro Investment. In 2000, ORIX Metro Leasing and Finance was established with Japanese financial services firm ORIX, which has had a presence in the Philippines since 1977. ORIX Metro Leasing and Finance primarily handles financial leasing for vehicles, heavy machinery, computers, office equipment and more. Metrobank also oversees major two insurance ventures: Philippine AXA Life Insurance and Philippine Charter Insurance. Philippine AXA Life Insurance is a partnership with French-based insurer AXA Group, while Philippine Charter Insurance is a partnership with Japanese-based Mitsui Marine & Fire Insurance and handles non-life insurance services. Keeping it in the family In 2006, Metrobank founder George Ty decided to pass the presidential reins to his eldest son, Arthur Ty, who was only 40 years old. The elder Ty stayed on as the group's chairman. The Ty family continues to retain control over Metrobank, and everyone gets involved. In a February 2007 interview with Starweek magazine, George Ty remarked, "All my five children, in one way or the other, are currently involved in the business or in Metrobank subsidiaries. Arthur is of course president of the bank, while Alfred is in charge of Federal Land and Toyota. My three daughters (Anjanette, Margaret and Alesandra) are all with Metrobank subsidiaries." Awards and Rankings • • • • • Gold Trusted Brand Award in Banking (Reader’s Digest Asia in 2008) Gold Trusted Brand Award in Investment Funds (Reader’s Digest Asia in 2008) Overall Best Performing Government Securities Dealer (Philippine Bureau of Treasury, 2008) People’s Choice for Corporate Website (Philippine Web Awards, 2008) Best Local Cash Management Bank in the Philippines (Asiamoney, 2008) IN THE NEWS March 2009: New lease on life? As American International Group (AIG) began selling off a number of its Asian assets in preparation to repay U.S. government loans it received, one if its largest properties went on the market—Philippine American Life and General Insurance (Philamlife), the largest insurer in the Philippines. Metrobank was right there, and formally announced intentions to put up an offer for Philamlife amid stiff competition, which was unannounced. Analysts suggested competition encompassed more than 10 potential suitors, including local financial firms Bank of the Philippine Islands and Banco de Oro Unibank, Manulife and a number of other global insurance companies, and several Chinese-Filipino tycoons. Customized for: vinh (
[email protected]) However, anonymous sources close to Philamlife told Thomson Reuters in February 2009 that four buyers had been short-listed, and Metrobank was not one of those. Following that, AIG received a third round of bailout funds from the U.S. government in March 2009—under new terms in which the government could convert its loans to equity, putting the sale of AIG's Asian assets in doubt. Offers for Philamlife have been taken off the table for the time being. February 2009: Tough at the top Metrobank had remained No. 1 for financial firms in the Philippines for 14 years, but in February 2009, it lost its top-ranked luster to rival Banco de Oro Unibank. Upon fiscal year 2008 disclosure to the Philippine Stock Exchange, Banco de Oro (run by Chinese-Filipino tycoon Henry Sy's SM Group—a massive conglomerate which also operates some of the Philippines' largest malls) took over the top spot in terms of 240 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Metropolitan Bank and Trust Company (Metrobank) consolidated assets, loans and deposits. For the year, Banco de Oro reported assets of PHP 808 billion (compared to Metrobank's PHP 758.5 billion), net loans and receivables of PHP 461.2 billion (compared to PHP 351.2 billion), and deposits of PHP 634.3 billion (compared to PHP 585.8 billion). Metrobank remains ahead of competitor Bank of the Philippine Islands (BPI), though the race remains relatively close for second place. December 2008: New branches amidst the crisis The firm seems willing to undertake risks in the name of expansion, as two new Cebu branches were opened in December 2008 in the midst of the global economic crisis. In addition to domestic expansion, Metrobank is also seeking to launch a wholly owned subsidiary in China so that the firm can open even more branches there. Bank chairman Antonio Abacan, Jr. explained the intentions for expansion in China, remarking, "Even before this worldwide problem [the financial crisis], our intention really has been to expand the business. But with the problem now in Hong Kong, Japan and Taiwan, the bread-and-butter remittance business is slowing. Filipinos are losing jobs overseas. We see good opportunity in China." July 2008: Remit with no regret Under new leadership, one of Metrobank's first major shifts was to expand its worldwide network of remittance services. Establishing a partnership with U.S.-based internet money transfer firm Xoom.com in November 2007, the alliance allows the massive population of Filipinos working overseas to remit money to beneficiaries' Metrobank accounts, with funds available in mere hours. After the Xoom partnership, remittance services continued to be a major theme in 2008. Remittance tie-ups and offices were launched in Saudi Arabia with Saudi-based National Commercial Bank in April 2008. This was soon followed by South Korea, through a partnership with Korea-based Hana Bank in July 2008. In the Asia Pacific region, Metrobank now has a presence through international branches, remittance partners and correspondent banks in Australia, Cambodia, China, Fiji, Hong Kong, Indonesia, Japan, Korea, Macau, Malaysia, New Zealand, Papua New Guinea, Singapore, Taiwan, Thailand and Vietnam. GETTING HIRED Investing in the future Although Metrobank has a number of international offices, positions available on the company's straightforward careers web site (www.metrobank.com.ph/careers.asp) are all based in the Philippines. For general careers info or to submit a resume, send an e-mail to
[email protected]. Announcements about the annual Metro Manila Career Day can also be seen at the beginning of each year. Included is a brief description of what kind of applicants the company is looking for, what positions are available and when the deadline is. In January 2009, positions included account coordinators, accounting assistants, tellers, auditors, credit support assistants and branch heads. Like most companies, the bank welcomes fresh grads. However, for late career starters, beware: the firm explicitly states that applicants for these positions must be "not more than 27 years old." Opportunities with Metrobank subsidiaries Metrobank's numerous subsidiaries seem to have a bit more career information not available on the main Metrobank site. First Metro Investment Corporation, AXA Philippines, Philippine Savings Bank (PSBank) and Metrobank Card all have career information and job openings listed on their individual sites. Customized for: vinh (
[email protected]) First Metro Investment Corporation is divided into three groups: investment banking, treasury, and investment advisory. Through the "Career Opportunities" link at www.firstmetro.com.ph, a number of openings are listed from the three groups, though it's unclear how up-to-date the postings are. Positions can be applied for by mail or in person to: 20th Floor, G.T. Tower International Ayala Ave., Corner H.V. de la Costa St., Makati City, 1200, Philippines. Alternately, you can call the human resources department at +63-2-840-5751 or email
[email protected]. AXA Philippines, a joint venture between Metrobank and the global AXA Group, also has a careers page at www.axa.com.ph/careers.asp. Openings are posted across a range of areas, and applications are accepted via an online application form—be aware that the form is quite brief and doesn't allow a resume to be attached. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 241 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Metropolitan Bank and Trust Company (Metrobank) PSBank has a "Career Opportunities" link accessible from the main page of its web site at www.psbank.com.ph. Openings are posted across a variety of departments, including business development, branch banking, credit administration, finance, human resources, information security and information technology, internal audit, asset sales, auto loans, customer service, e-banking, mortgage banking, personal loans, collections and remedial management, process management, risk management, small-medium enterprise, and many more. In addition, there's information on the firm's internship program—internships are available if you're "at least an incoming 3rd year college student taking up any course" willing to undertake at least four hours of work per day. For both internships and job openings with PSBank, you can send your resume and other required materials to: Recruitment Department, 7/F PSBank Center, 777 Paseo de Roxas corner Sedeno Streets, Makati City, Philippines. Alternately, you can send it by fax to +63-2-885-8347. For questions, you can contact the recruitment department by phone at +63-2-885-8208 local 8528, or send an email to
[email protected]. Finally, Metrobank Card, the firm's joint venture with Australia-based financial group ANZ, has its careers site at www.metrobankcard.com/careers/careers.aspx. Current openings are listed from a variety of areas, and you can apply online. For more information, contact
[email protected]. The firm also takes walk-in applicants for certain positions. For information on senior management vacancies, you can call +63-2-898-9607. Customized for: vinh (
[email protected]) 242 © 2009 Vault.com Inc. MIZUHO FINANCIAL GROUP, INC. 5-1 Marunouchi 2-Chome Chiyoda-ku Tokyo 100-8333 Japan Phone: +81-3-5224-1111 Fax: +81-3-5224-1059 www.mizuho-fg.co.jp/english/ THE STATS Employer Type: Public Company Ticker Symbol: 8411 (TYO), MFG (NYSE) Chairman: Terunobu Maeda President and CEO: Takashi Tsukamoto Revenue: JPY 3.51 trillion (FYE 3/09) Net Loss: JPY 588.81 billion No. of Employees: 51,714 No. of Offices: 770 LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Japan • Malaysia • Philippines • Singapore • South Korea • Taiwan • Thailand • Vietnam KEY COMPETITORS Citigroup Mitsubishi UFJ Financial Group Sumitomo Mitsui Financial Group DEPARTMENTS Asset and Wealth Management Corporate Banking Retail Banking EMPLOYMENT CONTACT www.mizuho-fg.co.jp/saiyou/pre_index.html (Japanese language only) THE SCOOP Golden grains Mizuho Financial Group, one of Japan's three mega banks and the country's second-largest financial institution in terms of assets, offers a range of financial services, including banking, securities, trust and asset management. Aligned into three main divisions—corporate, retail, and asset and wealth management—Mizuho caters mostly to Japanese corporations, such as financial institutions, public sector entities and foreign corporations, including foreign subsidiaries of Japanese corporations. The firm, which has more than 50,000 employees working in more than 700 locations, is the parent company of Mizuho Bank, Mizuho Corporate Bank, Mizuho Securities, and Mizuho Trust & Banking. Mizuho is known as the most aggressive of Japan's three mega banks, which include rivals Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group. That distinction has won the company praise, but also recently led to the firm suffering the biggest subprime losses among the big three. Mizuho, whose name means "golden ears of rice" in Japanese, will have to harvest a lot of gold in coming years if it hopes to survive—the firm suffered a net loss of JPY 588 billion in fiscal 2009, the first time it failed to earn a profit in five years. Customized for: vinh (
[email protected]) 21st century discovery Mizuho Financial Group was created in September 2000 through the establishment of Mizuho Holdings as a holding company of the firm's three predecessor banks—Dai-Ichi Kangyo Bank, Fuji Bank and Industrial Bank of Japan. The respective securities subsidiaries of the predecessor banks merged to form Mizuho Securities, while the trust banks merged to form Mizuho Trust & Banking. Another major step in Mizuho's development occurred in April 2002, when the operations of the three predecessor banks were realigned into a wholesale banking subsidiary, Mizuho Corporate Bank, and a banking subsidiary serving retail and small and mid-sized enterprises, Mizuho Bank. As an additional step for realigning the group structure, Mizuho Financial Group was established in January 2003 as a corporation organized under Japanese law; a few months later, it became a holding company through a stock-for-stock exchange with Mizuho Holdings. 243 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Mizuho Financial Group, Inc. As part of a strategic plan initiated in 2006—which Mizuho called the "Channel to Discovery"—the firm realigned its entire business its three current operating divisions. In connection with this realignment, the firm also established Mizuho Private Wealth Management Co., a private banking subsidiary, and converted Mizuho Holdings from an intermediate holding company into Mizuho Financial Strategy, an advisory company that provides advisory services to financial institutions. IN THE NEWS May 2009: Preferred stock Mizuho declared its intent to establish a special purpose subsidiary for issuing preferred equity investment securities, a move similar to that made by rival company Mitsubishi UFJ Financial Group at around the same time. Mizuho also stated that it would try to raise up to JPY 200 billion by August through issuing common shares and preferred securities. According to a report in Reuters, the financial group beat this goal and raised JPY 212 billion. Earlier, in December 2008 and February 2009, Mizuho issued US$4 billion and US$850 million, respectively, in preferred securities that were non-convertible to common stock. April 2009: Executive shuffles in a perilous time As part of a company-wide reshuffle announced in January 2009, Mizuho enacted a number of executive management changes. The company announced that the existing President and CEO at the time, Terunobu Maeda, would move on to assume the title of Chairman. Deputy President Takashi Tsukamoto, a Harvard-educated banker, was tapped to succeed Maeda. Tsukamoto assumed his new positions in April 2009 at a difficult juncture in the company’s history. In addition to the ongoing global financial crisis, Mizuho also posted a net loss of JPY 588.81 billion for the fiscal year ended March 2009. March 2009: Dance of the securities firms In March 2007, Mizuho's two affiliate brokerage firms, Mizuho Securities and Shinko Securities, announced plans to merge, which would have created Japan's fourth-largest securities firm in terms of assets and the third-largest in operating revenues. However, in November 2007, the firms said the merger would be postponed from January to May 2008, because they needed more time to configure the deal to account for the significant loss Mizuho Securities expected to post for fiscal 2008. One of the main reasons that Mizuho was hesitant to proceed in its ventures was due to the fact that the firm was badly burned by the spread of the U.S. mortgage crisis. The company reported around JPY 27 billion in net losses for the six months ended September 30, 2007, largely due to a plunge in the prices of securities products linked to U.S. subprime mortgage loans. The second half of 2007 proved to be drastically worse for the firm, as Mizuho posted a loss of JPY 220 billion in the fourth quarter alone, bringing total losses for the year to a whopping JPY 420 billion. In an effort to stop hemorrhaging money, parent company Mizuho Financial Group said in December 2007 that it would inject around JPY 150 billion into Mizuho Securities, which would then issue the full amount in new shares to Mizuho's wholesale banking division, Mizuho Corporate Bank. A deal to finalize the merger between Mizuho Securities and Shinko Securities finally materialized ahead in March 2009. The merger took place through a stock swap in May 2009, in which individual shares of Mizuho Securities share were each exchanged for 122 shares of Shinko Securities. After the merger, the new entity dissolved the old Mizuho Securities company, while the remaining Shinko entity was renamed under Mizuho’s namesake. On May 12, the parent group announced that its voting rights in the affiliate Mizuho Securities would jump from 27 percent to 59 percent, making the new entity an official subsidiary. Customized for: vinh (
[email protected]) February 2009: When it rains, it pours The last few years have been rough for Mizuho, largely thanks to the subprime mortgage crisis, and the resulting losses sustained by the bank. In February 2009, the company announced that it would close its overseas securitized products business, resulting in roughly 300 job cuts in London and other areas. The February announcement came shortly after 27 additional jobs were cut from subsidiary Mizuho Corporate Bank in January 2009. 244 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Mizuho Financial Group, Inc. August 2008: Partners to the core Mizuho agreed to invest US$120 million in U.S.-based investment bank Evercore Partners. The money will be used to expand Evercore’s investment management business as well as the existing cooperative venture in which the two companies mutually share M&A advisory services. GETTING HIRED Konichiwa Mizuho You'd better brush up on your Japanese language skills before looking for career opportunities with Mizuho, because the company doesn’t have any job information available in English. Clicking the "careers" link in English will brilliantly redirect you to the firm's Japanese page. If you’re interested, Mizuho's Japanese language careers page can be found at www.mizuho-fg.co.jp/saiyou/pre_index.html. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 245 NATIONAL AUSTRALIA BANK LIMITED (NAB) 500 Bourke St. GPO Box 84A Melbourne, 3001 Australia Phone: +61-3-9641-3500 Fax: +61-3-8641-4916 www.nab.com.au THE STATS Employer Type: Public Company Ticker Symbol: NAB (ASX) Group CEO: Cameron Clyne Revenue: AU$41.42 billion (FYE 9/08) Net Income: AU$4.54 billion No. of Employees: 39,150 No. of Offices: 1,240 (worldwide) LOCATIONS IN ASIA PACIFIC Australia China (representative office) Hong Kong India (representative office) Japan New Zealand Singapore KEY COMPETITORS ANZ Commonwealth Bank Westpac EMPLOYMENT CONTACT See “Careers at NAB” section of www.nab.com.au DEPARTMENTS Agribusiness Banking • Business Banking • Personal Banking • Private Banking • Wealth Management THE SCOOP Representing Australia National Australia Bank (NAB) is the Australian representative for National Australia Bank Group (NABGroup), an international financial services organization whose history goes back to 1858 with the establishment of the National Bank of Australasia. NABGroup is organized around four regions: Australia (including NAB, MLC and UBank operations), New Zealand (through Bank of New Zealand), the U.K. and Europe (through both Yorkshire Bank and Clydesdale Bank), and the Americas (through Great Western Bank). Each region offers services including retail banking, business banking, corporate banking, wealth management services, and transactional and custodial operations. In addition, the group operates nabCapital, which focuses on debt, risk management and investment products for corporate and institutional customers. NAB is one of the world's largest agricultural bank and one of Australia's leading business banks. With more than 39,000 employees globally (including 24,500 in the Australian region), the bank services customers in Australia through nearly 800 branches, 180 business banking centers, 110 regional agribusiness locations and three contact centers. NAB also maintains a strong presence in Asia, with branches in Hong Kong, Japan and Singapore, and representative offices in mainland China and India. The firm's Asian operations are focused on private retail banking for preferred customers as well as corporate and institutional banking. For the financial year ended September 2008, NAB earned profits of AU$4.54 billion, and holds assets worth AU$656 billion as of March 2009. Customized for: vinh (
[email protected]) Dividing the Australian pie NAB's operations in Australia are divided into several primary areas including: business banking, private banking, agribusiness banking, retail banking, wealth management and wholesale banking. 246 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition National Australia Bank Limited (NAB) The firm's business banking division is Australia's largest business lending and business deposit taker. More than 700,000 customers use the bank's lending, deposit, transaction, custody, asset finance, financial planning and merchant services. Meanwhile, the firm's private banking division caters to the needs of a select group of high-net-worth clients. Agribusiness handles banking services for rural Australian businesses, including those in the agriculture, forestry and fishing industries. Servicing a range of customers, from small family farming enterprises to large multinational operations, the bank's 570 agribusiness banking specialists operate in more than 110 regional locations across Australia. Retail banking offers financial solutions to approximately 3.5 million customers in Australia. The bank provides a range of deposit, lending, credit and transaction products as well as an Australia-wide network of 800 branches. Through a network of financial advisers, NAB's wealth management division is handled through MLC. With over AU$102 billion under management, MLC provides wealth management services and financial planning advice on investments, insurance and superannuation. Finally, the wholesale banking division employs 2,500 globally, providing access to specialized funding, investment capabilities, asset services and risk management. In May 2007, operations commenced for NAB Health, a specialized banking business to serve the financial needs of medical practitioners, healthcare and aged care facilities, and investors in Australia's AU$90 billion healthcare sector. Further, in October 2008, NAB launched UBank, an online-only bank for retail customers. Another online savings account, USaver, was launched in August 2009 by UBank. NAB plans to continue expanding UBank in the future to offer a range of additional savings, transaction and investment products. Nabbing Asia NAB first reached out to its Asian neighbors in 1969, when it opened a representative office in Tokyo. The Tokyo office quickly became a branch with full operations. When NAB merged with the Bank of New Zealand in 1994, the firms combined their Tokyo offices in order to expand their Japanese presence. Focused in Asia on capital markets and institutional banking, NAB currently has branches in Hong Kong, Singapore, and Tokyo, with representative offices in Beijing and Mumbai. The Hong Kong branch was established in 1986 and provides a range of retail and private banking services including local and overseas property loans, a managed funds platform and multicurrency deposits products. In addition, nabCapital has a team of more than 40 in Hong Kong, working in the areas of project finance, structured property and trade finance. The bank has been active in Singapore since 1981 and today has a wholesale banking license that allows it to offer deposit, lending and investment services. NAB also operates a merchant bank in Singapore called the National Australia Merchant Bank. Another Singaporean subsidiary of NAB is Medfin Finance, a financial services company for healthcare providers that has been in operation for over 18 years. IN THE NEWS October 2009: Delisted in NZ After applying to cancel its listing on the New Zealand Exchange in August 2009, NAB was formally removed from the stock exchange in October 2009. In a statement, NAB explained, "The decision reflects increasing globalization that has reduced the need for separate listings, low trading volumes in NAB shares on the NZSX and the ongoing streamlining of NAB's operations." NAB has previously cancelled listings in Tokyo, London and New York for similar reasons; the bank said that customers or business operations in New Zealand won't be affected. August 2009: Up to the challenge Cementing its status among the top three lenders in Australia, NAB reached an agreement to scoop up the mortgage management business of Challenger Financial Services Group for AU$385 million. As part of the deal, NAB takes over AU$4 billion in loans at an unspecified discount to cover defaults. The Challenger acquisition aims to bring a return on equity and add to earnings in its first year, and subject to regulatory approvals, is expected to close during the fourth quarter of 2009. Customized for: vinh (
[email protected]) August 2009: UBank, then USave Further to the October 2008 launch of online retail banking platform UBank, another online savings account, USaver, was launched in August 2009. NAB plans to continue expanding UBank's services in the future to offer a range of additional savings, transaction and investment products. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 247 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition National Australia Bank Limited (NAB) July 2009: Getting cozy with Goldman Goldman Sachs JBWere and NAB announced a strategic alliance in July 2009, in which NAB would acquire an 80.1 percent stake in Goldman's private wealth management businesses across Australia and New Zealand. Branded as JBWere going forward, the firm boasts over 22,000 active client relationships, assets under advice of AU$38 billion and funds under management of AU$10 billion. NAB Group CEO Cameron Clyne said, “JBWere’s pre-eminent reputation for providing wealth management services to high net worth individuals and National Australia Bank’s strong footprint in business and private banking is a great combination. Our Australian Wealth business, MLC & NAB Wealth, has a long history in developing and nurturing wealth management businesses that service private wealth and institutional clients under their own distinct brands, including JANA and Godfrey Pembroke." NAB's acquisition of the stake, valued at AU$99 million with additional considerations dependent on revenues over the next three years, is expected to be completed by the end of 2009. July 2009: Nice raise Following the November 2008 capital raise of AU$3 billion, NAB raised another AU$2 billion of fresh capital in July 2009 through a placement of more than 93 million new ordinary shares. June 2009: Viva Aviva NAB announced in June 2009 that it had acquired Aviva Australia Holdings’ wealth management business, including its life insurance operations and investment platform Navigator, for AU$825 million. The Aviva acquisition will operate under the MLC and NAB Wealth brands. Steve Tucker, MLC's CEO, commented, "Aviva will further develop our retail life insurance business and the Navigator investment platform will enhance our scale in this market. Aviva will deliver important service and technology capabilities which we can utilize across our broader business for the benefit of financial advisers and their clients." After receiving regulatory approval, the acquisition was formally completed in October 2009. April 2009: The good shepherds NAB, in partnership with Good Shepherd Youth and Family Service (a local organization dedicated to addressing the financial needs of lowincome Australians), launched the AddsUp Savings Plan. The plan matches participants’ savings with a once-yearly contribution from the bank. NAB has pledged AU$130 million in capital for AddsUP, which aims to enroll more than 30 community groups and their members by 2010. The bank has collaborated with Good Shepherd since 2003 and previously worked with the organization to develop microfinance programs aimed at helping low-income citizens develop financial saving skills. January 2009: In the cut MLC, the wealth management arm of NAB, announced in January 2009 that approximately 120 jobs would be cut from Melbourne and Sydney as a direct result of the global financial crisis. The news came shortly after Australian rivals ANZ and Macquarie cut jobs the previous month, possibly indicating an ominous trend as financial institutions in Australia struggled to deal with the global downturn. An MLC spokesperson commented that the company would attempt to re-deploy some of the staff who were let go. November 2008: Nice raise NAB managed to raise around AU$3 billion of fresh capital in November 2008 through the successful placement of 150 million new ordinary shares. New shares were assigned to a wide range of institutions and individuals, with domestic investors contributing the bulk of funds for the capital boost. Customized for: vinh (
[email protected]) October 2008: UBank with us NAB launched UBank, an online-only direct bank for retail customers, in October 2008. With customers protected under the Australian government's deposit protection scheme, UBank looks to expand in the future to offer a range of additional savings, transaction and investment products. 248 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition National Australia Bank Limited (NAB) August 2008: New boss in town A week after announcing a drastic hit in credit market losses totaling AU$830 million, NAB removed John Stewart from his position as Group CEO in August 2008. Stewart, who had served as CEO since 2004, was replaced by Cameron Clyne, the former head of the bank’s New Zealand operations. Clyne was appointed to serve as chief executive designate in October 2008 before assuming the position in full in January 2009. August 2008: Down on the farm NAB signed a memorandum of understanding with the Agricultural Development Bank of China to promote the two-way transfer of agricultural and banking skills through staff exchanges and training. This marked a first for the Australian and Chinese agri-business sectors, opening the door to further cooperation between the two countries' financial services sectors. March 2008: A more perfect Union As Chinese regulators have softened up toward foreign investors, many multinational corporations have sought to get in on the action. In March 2008, NAB made sure it didn't miss its chance to invest in the growing Chinese economy when it gained approval to buy a 20 percent stake in the China-based trust firm Union Trust & Investment for RMB 300 million. NAB became the first foreign company to benefit from relaxed laws that allow foreign companies to acquire a maximum of 20 percent in Chinese trust firms. NAB’s stake in the Fujian Province-based trust firm will most likely result in new service offerings such as infrastructure trusts, annuity management and real estate investment trusts. NAB is also allowed to place one member on Union Trust's board to represent its interests and has chosen nabCapital CEO John Hooper. This was NAB's first major point of entry into the Chinese market, though the company previously entered into collaboration with China UnionPay in November 2006 to allow the Chinese firm’s customers to access NAB's banks in Australia. GETTING HIRED NABbing a great job Graduates, professionals and executives all get their own space within the careers section at www.nab.com.au, which provides job-seekers with the tools to get in at the bank. You can conduct a job search, sign up for job alerts and be sent an email when a position opens that meets your specifications, or just learn about what day-to-day life at the firm is like. The bank also details possible career paths in different groups, including human resources, IT, legal, marketing, banking and relationship management, financial planning, insurance and superannuation, customer service, call center, administration, and consulting and project management. If you're just wondering about the basic application procedure, the firm also covers that, guiding prospective employees through the typical interview process. Make sure to put on your thinking cap—according to the web site, the firm does cognitive, psychometric and competency testing for all of its candidates. If you have any general questions on the hiring process that are not answered on the careers page, send an e-mail to
[email protected]. In addition to its Australian graduate programs, NAB launched its Asian graduate program in early 2008 for Hong Kong and Singapore nationals. The Asian program includes a 12-month assignment in Australia alongside participants in the Australian graduate program. The Hong Kong branch also conducts internships on a three-month basis. For more information, you can contact the Hong Kong branch by phone at +852-2822-8111 or by email at
[email protected]. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 249 OCBC GROUP 65 Chulia Street #29-00 OCBC Centre Singapore, 049513 Phone: +65-6318-7222 Fax: +65-6533-7955 www.ocbc.com THE STATS Employer Type: Public Company Ticker Symbol: OCBC (SGX) CEO: David Conner Chairman: Cheong Choong Kong Total Income: SG$4.43 billion (FYE 12/08) Net Profit: SG$1.75 billion No. of Employees: 19,610 No. of Offices: 490 (worldwide) LOCATIONS IN ASIA PACIFIC Australia • Brunei • China • Hong Kong • Indonesia • Japan • Malaysia • Myanmar • Singapore • South Korea • Taiwan • Thailand • Vietnam KEY COMPETITORS DBS Group Holdings United Overseas Bank BUSINESSES Asset Management • Consumer Banking • Corporate/SME Banking • Insurance • Investment Banking • Private Banking • Stock Broking • Transaction Banking • Treasury EMPLOYMENT CONTACT See the “Careers” link at www.ocbc.com.sg/global/main/index.shtm THE SCOOP Singapore's longest established local bank Oversea-Chinese Banking Corporation (OCBC), which bills itself as "Singapore's longest established local bank," began in 1932 when Chinese Commercial Bank, Ho Hong Bank and Overseas-Chinese Bank joined forces. Today, OCBC offers a wide range of specialist financial services, from consumer, corporate, investment, private and transaction banking to treasury and stock-broking services to meet the needs of its consumer and business customers. OCBC Bank has a network of more than 460 branches and representative offices in 15 countries and territories, including Singapore, Malaysia, Indonesia, China, Hong Kong, Brunei, Japan, Australia, the U.K. and the U.S. In 2008, the bank's total income continued its climb year-on-year to SG$4.42 billion, from total income of SG$4.28 billion in 2007. In addition to its flagship OCBC Bank, the OCBC Group oversees OCBC Securities Private Limited (its stockbroking arm that offers a full range of brokerage services for equities and derivatives trading), Great Eastern (the biggest insurance company in Singapore and Malaysia with SGD$44 billion of assets and about three million policy holders), Lion Global Investors (one of the largest asset management companies in Singapore and Southeast Asia) and Bank of Singapore Limited (which the firm calls "Singapore's first pure internet bank") in Singapore. Customized for: vinh (
[email protected]) Big in the rest of Southeast Asia, too In Malaysia, OCBC has been operating in the country for more than seven decades and its subsidiary, OCBC Bank (Malaysia) is one of the top five foreign banks there today. With a network of 29 branches located across both the peninsula and East Malaysia, the bank renders its services to a diverse range of individuals, as well as corporate and small- and medium-enterprise (SME) clients, including sole proprietorships and partnerships. It offers a broad spectrum of specialist financial services in Malaysia including consumer, corporate and business, investment, premier, transaction and Islamic banking, and global treasury services. OCBC's subsidiary in Indonesia, PT Bank NISP is the 10th-largest bank in the country with 380 branches and offices. In China, other than its locally-incorporated subsidiary, OCBC Bank (China), it also has a strategic investment in a local bank, Bank of Ningbo. 250 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition OCBC Group Awards and rankings • • • • • • • • • • Best Foreign Bank (Chengdu Shangbao Financial Awards, 2009) Best Wealth Management Brand (Chengdu Shangbao Financial Awards, 2009) Singapore’s Top 10 Most Admired Companies & No. 1 in Financial Reputation (The Wall Street Journal Asia, 2009) Best Corporate/Institutional Internet Bank in Malaysia (Global Finance, 2009) Best Bond House in Singapore (Alpha Southeast Asia’s Annual Best Financial Institution Awards in Southeast Asia, 2009) Best Foreign Cash Management Bank in Malaysia (Asiamoney, 2009) Best Retail Bank in Singapore, Excellence in Bancassurance, Excellence in Customer Advocacy in Asia (Asian Banker, 2009) Most Innovative Payment Product Award (China UnionPay, 2008) Best Deposit-Linked Product, Excellence in Mobile Phone Banking (Asian Banker, 2008) Excellence in Retail Financial Services, Best SME Cash Management Solution Bank (The Asset, 2008) IN THE NEWS October 2009: Double-digit net profit growth For the third quarter 2009, OCBC booked a net profit of S$450 million, a 12 percent rise versus the S$402 million it recorded in the same period a year earlier. According to OCBC, “core net profit rose by 14 percent, driven by strong gains in insurance, trading and investment income, as well as lower expenses and allowances.” And for the first nine months of 2009, the firm saw a rise of 18 percent in net profit to S$1.461 billion. OCBC’s interest income increased 7 percent while non-interest income rose 25 percent “due to strong contributions from the insurance business and foreign exchange income.” May 2009: Customer support In an effort to enable its customers to gain the most from their trade activities, OCBC’s Malaysia branch set up a trade finance academy for their staff in May 2009. The academy courses, headed by OCBC staff, aim to educate customers on the key skills required to compete effectively in trade finance. “SMEs are often unable to optimize on opportunities that are presented to them due to lack of know-how in trade finance,” remarked OCBC Bank (Malaysia) chairman Tan Sri Nasruddin Bahari. April 2009: "Economic annus horribilis" As Singapore’s recession continued into April 2009, OCBC remained content in the belief that they would not have to raise funds to see it through. According to The Straits Times, though senior staff have seen dramatic reductions in compensation (OCBC Bank CEO David Conner's pay reportedly dropped by a third, though he still brought in close to SG$4 million), the bank has so far managed to avoid job cuts. According to a letter to shareholders, the bank also stated, "While we'll limit new hiring, there is currently no plan for retrenchment." The firm described 2008 as an "economic annus horribilis," but group chairman Cheong Choong King stated that OCBC has done “relatively well” in light of the global economic environment. March 2009: Training days As part of a bid to retain talent and further establish the firm as a market leader in Malaysia, OCBC Bank (Malaysia) launched a new training program that promises to shift company emphasis from sales to quality and service excellence. The 37 new in-house training and development courses, now part of the total 62 courses offered, will be accessible through two learning faculties: banking and finance, and employee development and leadership. Despite the global economic crisis, OCBC is "holding nothing back where training and development is concerned," according to the Malaysian subsidiary's director and CEO, Jeffrey Chew. The bank hopes the new training courses will further develop employee talents and capabilities. Customized for: vinh (
[email protected]) December 2008: Islamic banking comes to town OCBC’s Islamic banking subsidiary OCBC Al-Amin opened for business. The subsidiary, which shares a logo with its parent, is legally known as OCBC Al-Amin Bank Berhad. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 251 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition OCBC Group May 2008-June 2008: A few new ventures In May 2008, OCBC said that it was raising around SG$1 billion from a non-convertible preference share offering. The firm confirmed that the transaction had already received approval from the Monetary Authority of Singapore and the Singapore Exchange. The bank did not confirm other details, but Singapore publication The Straits Times reported that OCBC will be offering these shares to retail investors, as opposed to recent institutional investor-only preference shares, which competitors such as DBS Group Holdings have begun to offer. The firm has a few more projects up its proverbial sleeve as well. In June 2008, the bank announced that it would be partnering with online shopping service comGateway to launch ShopOnline, which connects customers in Asia with more than 300,000 internet shops based in the U.S. In its initial stages, the service will be available to cardmember clients of OCBC Bank. GETTING HIRED Transition in The careers link at www.ocbc.com tries to offer its prospective employees a few new angles, even describing its Career Transition Program— for candidates who've considered a career in banking but might not have had the necessary background to successfully apply. Information is also available on OCBC's Management Associate Programme (MAP), an 18-month leadership development program for those with an MBA or Master's degree and two to six years of work experience. The firm also offers a general job posting section, including current openings in the firm's Singapore, Malaysia and China offices as well as positions with subsidiary Great Eastern. For students, a schedule of campus visits is available for both the MAP program and undergraduate recruitment. In addition, the firm has a good deal of information on its internship program. Internships run 10 weeks and are awarded to Singaporean citizens or permanent residents studying overseas, as well as students in their "pre-final and final year pursuing their undergraduate or post-graduate studies in Singapore" who have "excellent academic results and involvement in extra-curricular activities." Final-year students from foreign universities who qualify under the Singapore Ministry of Manpower Work Holiday Programme are also encouraged to apply for internships. Customized for: vinh (
[email protected]) 252 © 2009 Vault.com Inc. PING AN SECURITIES COMPANY LTD. 1st Floor, Ping An Building Bagua 3rd Road Futian District Shenzhen, 518040 China Phone: +86-40-0886-6338, +86-755-8242-2251 www.pingan.com/about/en/securities.jsp THE STATS Employer Type: Subsidiary of Ping An Group Chairman & CEO: Ye Licheng Net Income: US$206.9 million (FYE 12/07) No. of Offices: 24 KEY COMPETITORS BOC International • China Galaxy Securities • China Merchants Securities • GF Securities • Guotai Junan Securities • Haitong Securities LOCATIONS IN ASIA PACIFIC Beijing Guangzhou Hong Kong Shanghai Shenzhen Other major cities in China EMPLOYMENT CONTACT job.pingan.com (in Simplified Chinese) DEPARTMENTS Equities Investment Banking Research THE SCOOP Backed by an insurance giant Ping An Securities is the securities arm of Ping An Insurance Group, China's second-largest insurer. Located in Shenzhen, in Guangdong Province in southern China, the firm began operations in 1991 as a securities department within its parent company. Ping An Securities was formally established as a subsidiary in October 1995 with approval from the People's Bank of China. With the backing of its well-known parent, Ping An Securities has grown over the years from a regional securities house into an integrated, nationwide company overseeing assets of RMB 1.8 billion as of April 2009. Ping An Securities handles a variety of financial services through six main divisions: investment banking, fixed earnings, asset management, brokerage, research and derivative products. Innovation is the name of the game In 2004, Ping An acted as lead underwriter on four IPOs in the primary market, earning a top ranking that year for equity offerings. The following year, the firm pushed forward reforms on non-tradable shares for domestically listed companies. In 2007 alone, Ping An's sponsoring of 11 IPOs earned the company a No. 2 ranking by number of IPOs sponsored amongst Chinese securities firms. Ping An Securities was a pioneer in helping to develop a next-generation trading system for the Shanghai Stock Exchange. The firm played a crucial role by setting up a risk-supervision project and proposing a process for developing derivative products domestically. For this, the firm was named an "Annual Financial Innovator" in 2005 by the Securities Association of China and Capital Circle magazine. These organizations also named Ping An the "Most Influential Corporate Brand" and "Best Investment Banking Team" for that year. Customized for: vinh (
[email protected]) 253 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Ping An Securities Company Ltd. Awards and rankings • • • • • • Best Corporate Management, Best Investor Relations Officer at a Non-SOE: Jin Shaoliang (IR magazine, 2008) Most Admired Chinese Company (Fortune, 2008) Asia’s Best Managed Companies (Euromoney, 2008) Most Caring Domestic Capital Enterprise (China Philanthropy Conference, 2008) Best Corporate Governance Award (The Asset, 2008) Best Recruitment Management Prototype”, “Best Performance Management Model and Excellent Enterprise” and “Best Enterprise Training Prototype (51job, 2008) IN THE NEWS May 2009: Let the higher profit margins commence! Higher profits might be just around the corner for Ping An Securities. In May 2009, Ping An was one of nine Chinese brokerage firms awarded a license to directly invest in the forthcoming Shenzhen-based Growth Enterprise Board (GEB), an index for small-to-medium-sized enterprises (SME). After the idea of the GEB was first pitched a decade ago, regulators green-lit the creation of a platform in which securities firms could do business with the potential to earn higher profit margins. Ping An's entrance into the fray is a step forward from the initial test run in April 2008 when CITIC Securities and China International Capital Corporation (CICC) were first granted the right to invest in the GEB. June 2008: Joining up Ping An Securities announced that it was forming a joint venture fund management company with UOB Asset Management, Singapore's largest asset manager. Ping An will hold a 75 percent stake in the venture, with UOB claiming the remaining 25 percent. Earlier, in January 2008, Ping An's parent group expressed the desire to enter the fund management area after its expansion into securities, banking and trust. April 2008: A private affair Ping An Securities applied for a license to establish a private equity investment division in April 2008. The application for the new division came in tandem with parent company, Ping An Insurance Group, establishing a RMB 20 billion unit to engage in a similar business. Ping An Securities had already invested in 25 Chinese-listed companies at the time of its application. A company official stated that the firm was likely to "invest in smaller unlisted companies and cash out once they float shares to the public." The China Securities Regulatory Commission said it would allow more securities firms to open up private equity subdivisions after a test run program, in which CITIC Securities and China International Capital Corporation (CICC) would give such ventures a go. January 2008: Identity crisis The Ping An Insurance Group won a lawsuit in Hong Kong in which it secured the right to use two name-related trademarks in the city. The trademarks included its company name in Chinese characters as well as the English notation "Ping An." This dispute originated in 2004, when Hong Kong-based Ping An Securities, which had no association with the insurance group, applied to the Hong Kong Intellectual Property Department for the rights to use the name in both formats, and filed a lawsuit when it discovered that the mainland Chinese insurance group had registered the name already. The Hong Kong High Court ruled in the insurance group's favor, while stating that the trademarks would not impose on the Hong Kong firm's business, which was small enough for the impact to be negligible. Customized for: vinh (
[email protected]) 254 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Ping An Securities Company Ltd. GETTING HIRED Yingwen zai nali? (Where is the English?) Ping An Securities offers absolutely no information about careers on its English website. If you can read Simplified Chinese, check out the firm's jobs page at job.pingan.com for more information, including regularly updated job postings. Otherwise, it might be worth calling the company’s main number at +86-40-0886-6338 and asking to speak with the HR department. Interested candidates will probably have more luck speaking in Mandarin. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 255 RBC CAPITAL MARKETS 17/F Cheung Kong Center 2 Queen’s Road Central, Hong Kong Phone: +852-2848-1388 www.rbccm.com THE STATS Employer Type: Subsidiary of Royal Bank of Canada Chairman: Doug McGregor Co-CEOs: Doug McGregor & Mark Standish Revenue: C$3.93 billion (FYE 12/08) Net Income: C$1.17 billion No. of Employees: 3,100 No. of Offices: 75 LOCATIONS IN ASIA PACIFIC Sydney Beijing Hong Kong Mumbai Singapore Tokyo KEY COMPETITORS Bank of America CIBC Citigroup BUSINESSES Global Credit • Global Investment Banking & Equity Markets • Global Markets • Global Research EMPLOYMENT CONTACT www.rbccm.com/careers THE SCOOP Part of the Royal family RBC Capital Markets is an international corporate and investment bank, serving corporations, governments and high-net-worth clients around the world. The firm operates as part of the Royal Bank of Canada, which has four other business segments: Canadian Banking, Insurance, International Banking and Wealth Management. Its 3,100 employees work from 75 offices around the world. In the Asia Pacific region, RBC Capital Markets has offices in Beijing, Hong Kong, Tokyo, Mumbai, Singapore and Sydney. The Royal Bank of Canada began operation in 1869, and today it has over C$724 billion in assets, 80,000 employees, and more than 18 million clients in North America, Europe and Australia. Until 2001, RBC Capital Markets was known as RBC Dominion Securities. The former Dominion Securities was created in 1901 and purchased by the Royal Bank of Canada in 1988. In 2000 and 2001, RBC added several boutique acquisitions to its investment banking arm, including U.S. firms Dain Rauscher Wessels and Tucker Anthony Sutro. These last two acquisitions resulted in the formation of RBC Capital Markets in November 2001. Customized for: vinh (
[email protected]) RBC Capital Markets' business is segmented into municipal finance, corporate finance and investment banking, debt finance, infrastructure finance, global treasury services, equity sales and trading, global credit, fixed income and currencies, sales and trading, global financial institutions, financial products, research and corporate banking. Brothers in banking RBC Capital Markets may not have a huge presence in Hong Kong just yet, but its sister subsidiary, RBC Investment Services (Asia) Ltd., is entirely devoted to providing clients there with a "broad range of investment choices." The investment firm is an extension of RBC's longstanding presence in Hong Kong, which stretches back to 1969. In fact, RBC was the first foreign member to be listed on the Hong Kong 256 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition RBC Capital Markets Stock Exchange. RBC Investment Services (Asia) is a full service brokerage, and also offers international advisory services for portfolio management. RBC also has private banking and wealth management services in Asia. These offices are headquartered in Singapore and offer deposits, foreign exchange services, loan, investment management, custody, and trust services for individuals with investable assets of more than SG$500,000. Awards and rankings • European Airports Deal of the Year—BAA’s £230 million funding package (Project Finance Magazine, 2008) • European Private Placement Program Deal of the Year—AirTanker/FSTA (Project Finance Magazine, 2008) • European Acquisition Deal of the Year—the £3.6 billion sale of railway company Angel Trains to a consortium led by Babcock & Brown, AMP Capital Investors, Deutsche Bank and Access Capital Advisers (Project Finance Magazine, 2008) IN THE NEWS June 2009: Committing to Asia RBC Capital Markets hired more than 300 staff across its global operations from 2008 until summer 2009. The firm recently expressed a commitment to expanding its headcount in Asia, and in June 2009, RBS announced two key appointments to complement that goal. Chris Tam joined the firm as director of the fixed income and sales team in Hong Kong, Minako Endo signed on as RBC’s director head of institutional fixed income sales in Tokyo. March 2009: Direct acquisition RBC Capital Markets acquired Canadian investment service provider Commission Direct Inc. for an undisclosed amount. Before the deal took place, RBC owned 50 percent of CDI. "CDI has a long track record of independent, high-quality agency execution, serving the growing needs of Canadian institutional clients,” said John Reilly, RBC Capital Markets’ head of Canadian Equity Trading. “We look forward to CDI continuing to develop and distribute innovative new products and services for the Canadian institutional marketplace.” December 2008: Pride of Canada According to the Thomson Financial (now Thomson Reuters) 2008 investment banking league tables, RBC Capital Markets was the pride of its home country, ranking in as the No. 1 Canadian underwriter, maintaining its position from the previous year. However, the firm slipped from its top spot as the Canadian M&A leader, falling into second place as it announced 44 deals worth a total of US$26.37 billion. Though RBC Capital Markets has made significant strides in U.S. M&A; jumping into the top 20 in U.S. announced deals at No. 12 in 2007, the firm fell to 24 in 2008. In Australia, the firm shared its No. 23 spot in announced M&A deals with three other competitors. On a global scale, RBC had an impressive 2008, coming in at No. 24 in worldwide completed M&A, maintaining its presence in the top 25. RBC Capital Markets has also found success in the Australian debt issuance market. The company has consistently ranked No. 1 on the KangaNews Kangaroo league tables since 1996. September 2008: Chuck steps down Customized for: vinh (
[email protected]) After spending 12 years at RBC, Charles ‘Chuck’ Winograd, RBC Capital Markets’ chairman and CEO, declared he would be calling it a day, retiring on October 31, 2008. Praising his accomplishments, RBC president and CEO Gordon Nixon said, “Chuck has led the transformation of our capital markets business to a significant and growing global concern.” Winograd began his career as a research analyst at Canadian firm Richardson Securities in 1971, rising up through the ranks to become head of equity sales, trading and research in 1985. He then joined big leagues in 1987 when he was appointed president and CEO of Richardson Greenshields before becoming chairman and CEO of RBC Dominion Securities in 1998. Three years later, Winograd was named the president and CEO of RBC Capital Markets. Replacing him were two men: Doug McGregor and Mark Standish were named co-CEOs. McGregor also became chairman of RBC Capital Markets, and McGregor also became president of the unit. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 257 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition RBC Capital Markets September 2008: Considering Lehman News surfaced that RBC had seriously considered buying troubled American investment bank Lehman Brothers in July 2008 but changed its mind after having doubts about the long-term stability of Lehman’s balance sheet. An RBC spokesman added that his firm was also concerned “about what we would have to promise the Lehman people” who stuck around post-potential-merger. Other buyers around the world agreed, and Lehman wound up dissolving in bankruptcy. September 2008: Down, but not out RBC Capital Markets announced that it would make a £258 million write-down on subprime loans. Given the deep losses incurred at other banks, however, the financial media dubbed RBC’s write-down “a scratch, rather than flesh wound.” However, revenue and net income for fiscal year 2008 was down from 2007, though the firm did at least report a net gain for the year. Looking ahead, RBC Capital Markets said its plans for 2009 and beyond include extending infrastructure finance and project advisory businesses in the U.K., Europe, U.S. and Canadian markets. It’s also on track to expand municipal banking and leveraged finance in Europe. Industry-wise, the firm has its sights set on the energy and mining sectors, but it also plans to build out its commodities franchise and enhance its electronic trading offerings. GETTING HIRED Unable to find Asia RBC Capital Markets maintains offices in Beijing, Hong Kong, Tokyo, Mumbai, Sydney and Singapore; however, it does not currently provide information about careers in the Asia Pacific region on its web site at www.rbccm.com/careers. However, the firm offers an analyst and associate program to undergraduate and postgraduate applicants in the U.S. and Canada. Interested candidates are asked to either apply through the firm’s campus visits (as listed on the company web site) or through its careers web site. Candidates looking for placement in Asia might have luck contacting the office of their choice directly from the addresses listed at www.rbccm.com/offices/asia.html. Develop all the right skills RBC Capital Markets operates a variety of employment programs for undergraduate and MBA students. Interested candidates can join programs in investment banking, global markets, finance management, wealth management, global technology and operations, and leadership. You'll pick up experience through hands-on work and classroom training to give you a good look at what it means to work in capital markets. The bank will also support you towards passing the FSA regulatory exams in your first months. On completion, you'll be given a permanent position suited to both your strengths and preferences. While the firm doesn't fuss about your degree discipline, it does require a certain grade average, along with strong numerical and analytical skills, and an awareness of global economic issues. It should also be noted that the majority of the bank's graduates hold degrees in business, economics, math, science or engineering—so while not prescribed, these subjects are certainly looked upon kindly. The online application process for most programs opens in September and deadlines are in November—be sure to check the company website for specific dates. Your application will consist of a numerical reasoning test, an interview with someone from human resources, and if your performance is up to scratch, an assessment centre visit. The assessment centre will see you interviewed by senior management, undertaking role plays and presentations, along with a chance to meet and chat to senior bankers more informally. Around a week after this, the bank will let you know if you've been successful. Experienced candidates can check out openings all over the world at RBC’s careers section of its web site. Customized for: vinh (
[email protected]) 258 © 2009 Vault.com Inc. SAMSUNG SECURITIES Jongro Tower Bldg 6 Jongro-2 ga, Jongro-gu Seoul, 110-789 South Korea Phone: +82-2-2020-8000 Fax: +82-2-2020-8077 english.samsungfn.com/ir/index.html THE STATS Employer Type: Public Company Ticker Symbol: 016360 (KRX) CEO: Chun-Hyun Park Net Revenue: KRW 777 billion (FYE 12/08) Net Income: KRW 230 billion No. of Employees: 2,757 No. of Offices: 137 LOCATIONS IN ASIA PACIFIC Hong Kong Seoul Shanghai (Representative Office) KEY COMPETITORS Daewoo Securities Korea Development Bank Hyundai Securities DEPARMENTS Asset Management • Investment Banking • Investment Consulting • Securities Brokerage EMPLOYMENT CONTACT See “Recruitment - Careers” section of english.samsungfn.com/ir/index.html THE SCOOP Electronic banking Samsung Securities is South Korea’s top securities firm by market value. Originally founded in 1982 as Hanil Investment Finance, the firm was acquired by the electronics giant Samsung Group in 1992. The Seoul-based firm offers retail brokerage and wealth management services to individual investors, and institutional brokerage, investment advisory, investment banking and capital markets services to public and private enterprises. Samsung's 2,757 employees work from 137 branches throughout South Korea, in addition to overseas offices in New York, London and Hong Kong, and a representative office in Shanghai. Samsung Securities has been involved in a number of large financial advisory deals, including sea transportation company STXPanOcean's KRW 590.1 billion IPO on the Korean exchange in September 2007, sportswear giant Fila Korea's KRW 400 billion acquisition of the global Fila business (for which it won MoneyToday's M&A of the Year award in 2007), and Samsung Corporation's KRW 470 billion divestiture of its retail businesses. High hopes Customized for: vinh (
[email protected]) Despite the turbulent global market environment in 2008, Samsung Securities might be in a better spot than many of its South Korean counterparts because of the substantial investment the firm has made in its asset management division in recent years. The firm has a stepby-step plan for future development called "Vision 2020: Global Top 10," which aims for the company to become a leading global player in the market. By 2010, the firm wants to dominate the South Korean market for financial services, hoping that this will lead to the establishment of a solid Asia-centered network by 2014, and looking into possible acquisitions of another global player sometime after 2015. Then, by 2020, Samsung Securities hopes to have KRW 10 trillion in net revenue and KRW 15 trillion in capital. The firm wants their vision to eventually enable it to compete head-to-head with long-established global rivals. These lofty goals culminate in a more-than-tenfold increase in revenue, which Samsung Securities plans to achieve through a number of initiatives, including: expanding its wealth management business; growing further through overseas investment such as through expansion in 259 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Samsung Securities mainland China and Southeast Asia, followed by further Asia Pacific coverage, with the ultimate goal of acquiring of two to three firms in the region; and expanding its trading business. Awards and rankings • • • • • • • • • • Best Best Best Best Best Best Best Best Best Best Compliance Member (Korea Exchange, 2009) Private Bank in Korea (Asiamoney, 2008-2009) Domestic Broker (Finance Asia, 2009) Domestic Private Bank (Finance Asia, 2009) Regional Research and Sales (Asiamoney, 2009) Research House in Korea (Institutional Investor, 2006-2008) Investment Bank in Korea (Global Finance, 2008) Equity House (Asiamoney, 2008) Domestic Private Bank and Best Broker (Finance Asia, 2008) Regional Research and Sales (Asiamoney, 2008) IN THE NEWS November 2009: Nice numbers Samsung Securities reported a net profit of 57.5 billion won (US$48.6 million) for the quarter ended September 2009. The results were 94 percent higher than the same quarter a year earlier (for which the firm booked a net profit of 29.7 billion won). November 2007–June 2009: A slushy mess Samsung Securities, along with its parent company Samsung Group, came under investigation in late 2007 as authorities pursued allegations from the group's former chief in-house lawyer that Samsung Group had been managing slush funds for the bribery of politicians, prosecutors and journalists. Samsung Securities offices were raided on November 30, 2007 by prosecutors looking for evidence in the case. Authorities involved in the investigation said they suspected that more than 3,700 accounts were opened by the Samsung Group using false names. Bribery claims were ultimately dismissed by the prosecution due to a lack of evidence, though Lee Kun-hee, the chairman of Samsung Group, was indicted on a number of charges and finally found guilty of tax evasion in July 2008. A week after his indictment, Lee stepped down on April 22, 2008 in a nationally televised news conference. Samsung Securities former CEO, Ho-won Bae, also resigned his post on the same day. In June, Bae was replaced by Chun-Hyun Park, formerly the vice president of Samsung Life Insurance. Investigations carried out by South Korea’s Financial Supervisory Service (FSS) continued into June 2009, with the FSS finally announcing that 256 employees from across 10 financial institutions—including Samsung Securities—had been involved in related violations. As a result of the slush fund scandal, Samsung Securities was banned from becoming the largest shareholder in any financial investment entity until 2012; the heaviest penalty received by any of the involved firms. September 2008: A Hong Kong stepping stone Customized for: vinh (
[email protected]) As part of its newly introduced global strategy, Samsung Securities announced plans to expand its operations in Hong Kong. The firm’s Hong Kong subsidiary will receive a 100-fold boost in investment, driving its capital up to US$100 million. Believing that the firm needs a greater presence in a key financial centre, the Hong Kong subsidiary will grow to include mergers and acquisitions, trading, principle investment, institutional brokerage, and equity capital management. The subsidiary, which previously focused exclusively on South Korean securities brokerage, will also run a research and sales department with 35 staff members. The firm plans to hire local staff with experience in global investment banking, and has stated that it will use competitive salaries and incentives to lure prospective candidates. Kim Suk, a board member and senior executive VP for capital markets and investment banking in Seoul, will have overall responsibility for the Hong Kong subsidiary. 260 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Samsung Securities Samsung Securities has also expressed a great deal of interest in developing its operations in markets such as mainland China and India, and the firm views its growth in Hong Kong as a stepping stone toward these goals. “[Samsung] is laying the foundations for developing a regional and global presence,” explained CEO Chun-Hyun Park. GETTING HIRED Like taking the SAT with an added “S” Samsung Securities recruits for entry-level positions in the second half of the year, posting detailed announcements on its careers site during September. Nevertheless, the careers site—which you can locate under the Careers tab of the Recruitment heading—offers some helpful information. On it, potential candidates can read about the recruitment process for entry-level candidates, that involves following a successful online application with a written examination, three rounds of interviews and a physical examination before a job offer is made. The examination, or Samsung Aptitude Test (SSAT), attempts to identify applicants with “creativity and drive” and is divided into two sections; a basic competency test and a job aptitude test. The three rounds of interviews begin with a 10 minute interview with a panel of company directors. Here, the firm looks to understand your basic character and motivations for wanting to join the company, and whether you are a ‘suitable’ for its working environment. During the second interview, candidates are expected to prepare an individual presentation and Q&A session—expected to last 15 minutes—that further enables company brass to assess competency, potential, and relative expertise in the field. Those who make it to the third round of interviews will find themselves in a group debate, where two teams of four-to-six people will be expected to display skills of logic, persuasion and communication. Experienced applicants have a shorter path to follow upon applying. Following a successful application online, they may skip the need pass the SSAT and move straight to a two-part interview that will evaluate a candidates expertise, suitability and fit with the company environment. Overseas? Masters only, please Overseas candidates interested in applying for a position at Samsung Securities need to have either a master’s degree or a doctorate degree to be eligible. Candidates are expected to sit in on a “recruiting presentation at an overseas site” before applying. Details on these presentations are listed on the company’s job posting web site in September. Following a successful written application, candidates take part in a conference call interview, followed by an in-person interview at an overseas site. Summer days at Samsung Samsung runs an extensive summer internship program for masters and doctoral candidates studying overseas. The application schedule takes place at the start of each year and is announced through the firm’s web site as well as through the Korean Students Association web site. The program offers interns the chance to develop contacts and networks within the company and industry, have mentor support for onthe-job development, and also gives participants the chance to receive a full-time job offer grant. The program lasts eight weeks, allowing candidates to develop skills across a range of departments, before ending with a final project presentation and interview. Interns are paid and also receive travel insurance and round-trip airfare. The firm also runs a less-extensive program for undergraduate college interns, with recruitment starting in early May. Customized for: vinh (
[email protected]) Language barriers Applicants navigating the Samsung Securities careers page and looking to access more details will find themselves diverted to the Samsung Group recruitment web site. However, the site lacks an English option and is only available in Korean. According to an announcement from Samsung Securities’ HR team, the English-language web site is currently undergoing an update and is expected to be completed in due course. Those looking to apply for the internship program can submit a resume and cover letter to
[email protected]. This email address can also be used for further hiring questions. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 261 SHANGHAI CFETS-ICAP INTERNATIONAL MONEY BROKING CO., LTD Unit 1205-1206, 12/F, AZIA Center 1233 Lujiazul Ring Road Pudong, Shanghai 200120 China Phone: +86-21-3861-7888 Fax: +86-21-5047-2092 www.cfets-icap.com.cn THE STATS Employer Type: Private Company CEO: Danny Cheung No. of Offices: 20 KEY COMPETITORS Ping An Trust Tullett Prebon SITICO LOCATIONS IN CHINA Beijing Shanghai Other major cities in China EMPLOYMENT CONTACT www.cfets-icap.com.cn/en/ company_recru.html
[email protected] DEPARTMENTS Energy Derivatives • Equity Derivatives • Fixed Income • Foreign Exchange • Money Markets • OTC Derivatives • RMB Lending & Bond Trading • Wholesale Broker THE SCOOP Just a baby As far as financial entities go, Shanghai CFETS-ICAP International Money Broking Co. (or simply CFETS-ICAP) is barely out of its infancy. The unit first came about in September 2007, when U.K.-based ICAP plc—the largest interbank dealer (or money broker) worldwide—and the China Foreign Exchange Trading System & National Interbank Funding Center (CFETS) formally launched their joint venture. With the birth of CFETS-ICAP, the venture initially provided broking services (both domestic and offshore) for foreign exchange markets, as well as transactions in money markets, bond markets and derivative products. The venture is only the second of its kind to receive approval from the by the China Banking Regulatory Commission—another joint venture between a U.K. firm and a Chinese firm, Tullett Prebon SITICO, was the first to be approved back in November 2005. Making it tick Clearly, CFETS-ICAP isn't a venture that just arose out of thin air—its dual components are what make it run. ICAP acts as a go-between for investment banks and institutions who want to get involved in monetary markets. ICAP, which arose from a 1999 merger between Garban and Intercapital, owns a 33 percent stake in the CFETS-ICAP joint venture. Customized for: vinh (
[email protected]) Meanwhile, CFETS originated from a set of foreign exchange reforms, and was founded in 1994 as a non-profit public institution overseen by the People's Bank of China. The group is responsible for a host of functions related to foreign exchange trading, including managing bankto-bank trading, supplying information regarding foreign exchange trading, and putting systems in place to ensure smooth trading, as well as RMB lending and bond trading. CFETS has its head office in Shanghai (with a staff of 30), a backup headquarters in Beijing and 18 other centers across China. In terms of ownership, CFETS holds the majority share in the CFETS-ICAP relationship, with a 67 percent stake in the joint venture. 262 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Shanghai CFETS-ICAP International Money Broking Co., Ltd. IN THE NEWS March 2009: Back in business According to an anonymous insider quoted by Dow Jones in March 2009, CFETS-ICAP became the first interbank dealer to receive a license from the State Administration of Foreign Exchange (SAFE), China's foreign exchange regulator. The shiny new license gives CFETS-ICAP the power to broker deals involving yuan-denominated swaps, forwards and cross-currency swaps, which it had previously been involved in up to February 2008, when SAFE put a stop to those services for unannounced reasons. With power comes responsibility—interbank dealers will be required to publicly post the prices of all transactions on China's foreign exchange trading platform, ultimately reporting all details to the China Foreign Exchange Trading System (CFETS) directly. October 2008: Hot off the presses As part of ICAP's tie-up with Chinese state news agency Xinhua, the CFETS-ICAP venture added a new method of publishing its data. In midOctober 2008, ICAP signed an agreement with Xinhua to provide data on Xinhua's financial services platform, including information on U.S. dollar-RMB foreign exchange, RMB money markets, interest rate derivatives and fixed income products. The real-time RMB market data will be provided by CFETS-ICAP's Shanghai headquarters. Zhang Bin, the vice general director for Xinhua's News and Information Center, remarked, "This collaboration with ICAP is an important strategic step for Xinhua to build a unified, cross-markets financial information and trading platform." May 2008: Expansion of services Parent company CFETS announced in May 2008 that China would continue to expand its currency derivatives through the year to keep up with market demand. The hope is that having an assortment of derivative products might assist China's exporters and importers in deciding which currency risks are safe (or at least safer) bets. However, new types of derivatives wouldn't necessarily be added in 2008, according to Xie Duo, president of CFETS. February 2008: A temporary halt In February 2008, CFETS-ICAP—along with rival Tullet Prebon SITICO—announced that it would be discontinuing its practice of providing quotes for onshore foreign exchange forward contracts and swaps. The move came due to demands from the State Administration of Foreign Exchange (SAFE), which regulates China's foreign exchange system. Although SAFE did not give a public reason for its decision, CFETS-ICAP reassured investors that effects of the decision would be minimal, adding that foreign exchange forwards and swaps only constituted a small portion of its services. January 2008: Another challenger? Just a few months after its inception, CFETS-ICAP faced a little friendly competition in its niche market when China-based Ping An Group and Switzerland-based Compagnie Financiere Tradition (CFT) launched a similar money broking venture—Ping An Tradition International Money Broking Co., in January 2008. The joint venture, which is the third-largest of its kind in China behind CFETS-ICAP and Tullett Prebon SITICO, is 67 percent owned by Ping An Trust and 33 percent owned by CFT. The venture, based out of the southern Chinese city of Shenzhen, has registered capital of RMB 50 million and became fully operational at the end of 2008. Customized for: vinh (
[email protected]) GETTING HIRED Pretty vacancies At www.cfets-icap.com.cn/en/company_recru.html, CFETS-ICAP's English-language careers page, vacancies are listed along with the specific roles prospective applicants can expect to undertake in the position. In addition, the firm lists its requirements for jobs—"good communication Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 263 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Shanghai CFETS-ICAP International Money Broking Co., Ltd. skills," "self-motivation and self-discipline" and the ability to work as part of a team (particularly under pressure) all seem to be recurrent themes. There's no formal application process on the site and it's unclear how up-to-date the information is—the CFETS-ICAP sites reflect a copyright date of 2007 for both its English and Chinese variants. However, if you find a job that fits your experience, you can email
[email protected]. Openings range from entry-level trainee positions and tech positions to full-fledged broker positions. Customized for: vinh (
[email protected]) 264 © 2009 Vault.com Inc. SHINHAN FINANCIAL GROUP 120 Taepyungro 2-ga Jung-gu Seoul, 100-865 South Korea Phone: +82-2-6360-3000 Fax: +82-2-6263-8070 www.shinhan.com/en THE STATS Employer Type: Public Company Ticker Symbol: 055550 (KRX) Chairman: Eung Chan Ra President & CEO: Sang Hoon Shin Revenue: KRW 57.33 trillion (FYE 12/08) Net Income: KRW 2.02 trillion No. of Employees: 16,434 LOCATIONS IN ASIA PACIFIC Cambodia • China • Hong Kong • India • Japan • Kazakhstan • Korea • Singapore • Vietnam KEY COMPETITORS Hana Financial Group Kookmin Bank Woori Finance Holdings DEPARTMENTS Asset Management Corporate Banking Insurance Investment Banking & Securities Private Equity Retail Banking EMPLOYMENT CONTACT www.shinhan.com/en THE SCOOP Second-largest in the South Shinhan Financial Group is South Korea's second-largest financial firm. The group owns numerous subsidiaries through which it provides a range of services including corporate, commercial and private banking, credit and asset management, insurance, brokerage and investment banking. Major subsidiaries include Shinhan Bank, Jeju Bank, Shinhan Card, Good Morning Shinhan Securities, Shinhan Life Insurance, Shinhan Capital, Shinhan Credit Information and Shinhan Private Equity. Shinhan has partnered with French bank BNP Paribas in a number of joint ventures. A strategic alliance agreement signed in 2001 later blossomed into Shinhan BNP Paribas ITMC—a 50-50 joint venture focused on asset management. The group's relationship with BNP Paribas has since continued to grow. The French bank now owns a 50 percent share of joint venture bancassurance specialist SH&C Life Insurance, a 35 percent share of asset management subsidiary Shinhan BNP Paribas Asset Management (founded in January 2009) and a 9 percent share in the overall Shinhan group. Customized for: vinh (
[email protected]) The South Korean giant also runs a joint venture with Australia's Macquarie Group. Named Shinhan Macquarie Financial Advisory, the subsidiary handles investment advisory services including project and infrastructure finance, structured finance, mergers and acquisitions, capital and debt raisings, cross-border leasing and specialized fund management. Though its largest operations are in South Korea, the group has operations throughout the Asia Pacific region, as well as in North America (the U.S., Canada and Mexico) and Europe (the U.K. and Germany). Firsties Shinhan’s origins trace back to 1897 when it was established as the first bank in Korea. Originally named the Hanseong Bank, the company later relaunched the brand as Shinhan Bank in 1982. Over the following two decades, Shinhan Bank continued to develop as a major financial 265 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Shinhan Financial Group player within its home market, establishing a series of subsidiaries that were eventually incorporated into the Shinhan Financial Group in 2001. The group now serves over 10 million customers throughout 970 network branches in South Korea. In total, the company employs 16,434 people in 21 offices worldwide. Its Asia Pacific operations include offices in mainland China, Japan, Hong Kong, India, Singapore and Vietnam. Shinhan-KTF Mobile Card, a joint venture with KT Freetel, was established in 2008 to promote a mobile phone credit card payment service in addition to further developing a range of wireless financial services. The mobile credit system will allow users to pay for goods and services with a simple swipe of their phone and is planned to be installed in roughly 10,000 stores across South Korea. Awards and rankings • No. 505, Forbes 2000 (Forbes, 2008) • No. 278, Global Fortune 500 (Fortune, 2008) • Best Entrepreneur in Financial Sector: Shinhan Chairman Eung-chan Ra (Ernst & Young, 2008) IN THE NEWS April 2009: Selling insurance Shinhan agreed to sell a 35 percent stake in its SH&C Life Insurance Co. to BNP Paribas. The deal will leave Shinhan with a 15 percent piece of the insurance company, and will make SH&C Life a subsidiary of BNP Paribas. March 2009: Filling the vaults with foreign debt By the end of March 2009, Shinhan Bank had acquired US$800 million in foreign debt, representing the migration of foreign credit markets into emerging Asian markets. The debt was secured from a number of foreign sources, including US$118.7 million borrowed from four European institutions. Shinhan Bank has stated plans to acquire further foreign debt under a bond sale later this year, but assured that nothing has been set in stone. The bank expects to borrow an additional US$300 million in the first half of 2009. March 2009: Going abroad In a further bid to capitalize and focus on foreign markets, Shinhan Bank announced plans to establish subsidiaries in Canada, Japan and Vietnam by the end of 2009. The subsidiaries are expected to continue developing the brand abroad, taking advantage of the branches already established in Japan and Vietnam and further boosting profits within each region. Shinhan Bank has vigorously pursued international expansion since 2007. Not content with simply setting up branches abroad, the bank enacts localization strategies in an effort to gain further long-term competitiveness within each market. Shinhan Bank has also displayed interest in entering the Chinese financial market and has announced plans to establish a subsidiary in Kazakhstan. March 2009: Doin' the Shinhan shuffle Following the resignation of former Shinhan Finance Holdings CEO Lee In-ho, the company announced in March 2009 that Sang Hoon Shin, previously the CEO of Shinhan Bank, would be his replacement. Shinhan Finance Holdings deputy president Lee Bae soon filled Shin's vacancy as Shinhan Bank CEO. Customized for: vinh (
[email protected]) February 2009: A French affair Shinhan teamed up with BNP Paribas to establish a new subsidiary, Shinhan BNP Paribas Asset Management, a merger between Shinhan BNP Paribas ITMC and SH Asset Management. SH AMC was wholly owned by Shinhan Financial prior to the merger, with both groups owning a 50 percent share of Shinhan BNP Paribas ITMC. 266 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Shinhan Financial Group GETTING HIRED A lot of add-ons, but not much info Despite Shinhan’s emphasis on aggressive international expansion, the firm’s web site lacks a centralized careers page in English. There are, however, a number of complicated flowcharts about types of people the firm wants to hire at www.shinhan.com. (A sample: "Goal congruence between organizational target and individual growth—MBO, BSC.") Under the "Vision of Shinhan Team Member" tab on the site, the firm professes that it spent 118 training hours and KRW 1.91 million on training expenses per person in 2008. Shinhan also reveals that it has plans to develop employees through in-house and overseas MBA programs as well as dispatching some team members to international branches for foreign experience and training. Employee benefits are numerous and quirky, including things such as a housing allowance in Korea, personal loans, tuition support for children, clothing allowance, stock ownership, an annual overseas sightseeing tour, and even "floral garlands" for weddings. Sounds nice, but there's no information on how to actually get your foot in the door for these benefits. Shinhan Financial Group's main internet portal can be accessed at www.shinhangroup.com, but visitors should be warned to only use Internet Explorer, watch out for ActiveX add-ons that the site forces on you, and make sure to disable your pop-up window blocker in order to get anywhere. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 267 STATE BANK OF INDIA State Bank Bhavan Central Office 8th Floor Madame Cama Marg Nariman Point Mumbai 400021 Maharashtra India Phone: +91-22-2202-2426 Fax: +91-22-2285-2708 www.statebankofindia.com THE STATS Employer Type: Public Company Ticker Symbol: 500112 (BSE), SBIN (NSE) Chairman: Om Prakash Bhatt Net Profit: INR 91.2 billion (FYE 3/09) No. of Employees: 205,896 No. of Offices: 11,532 KEY COMPETITORS Citigroup HDFC Bank HSBC ICICI Bank Kotak Mahindra Bank LOCATIONS IN ASIA PACIFIC Australia • Bangladesh • China • India • Indonesia • Japan • Maldives • Mauritius • Nepal • Philippines • Singapore • Sri Lanka DIVISIONS International Banking Group • Mid Corporate Group • National Banking Group • Rural Business Group • Wholesale Banking Group EMPLOYMENT CONTACT Click the “Recruitment” link at www.statebankofindia.com THE SCOOP One mega bank In India, the State Bank of India (SBI) continues to be the largest commercial bank, with total assets of over INR 96 trillion, way ahead of its closest competitor ICICI Bank. The bank is massive in terms of branches—SBI has 11,448 branches within India and 84 branches overseas. SBI’s net profit has grown steadily over recent years as well. The bank recorded INR 91 billion in profits for the financial year ending March 2009, a 35 percent jump from the previous year. SBI was the first Indian bank to offer merchant banking and also the first Indian bank to launch mutual fund services in the country. Today, the bank operates through seven associate banks and six subsidiaries within India. It also has six major foreign subsidiaries across the globe. The bank's major divisions are the International Banking Group, the Wholesale Banking Group, the Mid Corporate Group, the National Banking Group and the Rural Business Group. The company also operates in a number of additional areas through the joint venture SBI Life Insurance Company, and subsidiaries SBI Capital Markets, SBI Funds Management, SBI DFHI (for securities in debt markets) and SBI Factors and Commercial Services. Overseas, the bank operates through a number of subsidiaries in Canada, the U.S., Mauritius, Nigeria, Nepal and Bhutan. Customized for: vinh (
[email protected]) Inside view The Wholesale Banking Group, which primarily serves the bank's largest corporate clients, is divided into three units: corporate accounts, project finance and leasing, and stressed asset management. The Mid Corporate Group performs similar functions as Wholesale Banking Group, but for mid-cap companies. 268 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition State Bank of India Personal banking, small-and-medium-enterprises (SME) and government banking are handled through SBI's National Banking Group. Personal banking provides basic banking services including savings accounts, card services, loans and advances. The SME unit finances SMEs enterprises, while the government business unit handles tax collection and accounting for the Indian government. Rural India is where SBI is betting big for the future. Over the 2009 financial year, SBI added 481 branches in rural and semi-urban areas, bringing the total number of branches in such locations to 7,696. By the end of 2010, SBI has ambitious plans to widen its reach to cover an additional 50,000 Indian villages. The Rural Business Group provides loan assistance to farmers and marginalized people in the form of agricultural loans and micro-financing. India's oldest bank SBI's story dates back to 1806, when General Wellesley, the Governor-General of India at the time, founded the Bank of Calcutta in order to facilitate trade and mobilize local resources in India. In 1809, after receiving charter from the Government of Bengal and British India, it was renamed the Bank of Bengal. Similar initiatives by British India led to the formation of the Bank of Bombay and the Bank of Madras in 1840 and 1843, respectively. For a considerable period, these three banks functioned as the core banks of India. In 1921, all three of the banks were integrated into the Imperial Bank of India (IBI). The newly formed bank played the role of a commercial bank, a banker's bank and a banker to the government. With the formation of the Reserve Bank of India (RBI) in 1935, IBI ceased to be the government's banker, but continued to act as treasurer for RBI and the government. Many restrictions were abolished, allowing IBI to assume the role of a pure commercial bank. When India became independent in 1947, IBI had a capital base of INR 1.18 billion, a network of 172 branches and more than 200 sub-offices across over the country. However, most of rural India remained untouched by banking. In 1951, the All-India Rural Credit Survey Committee recommended the establishment of a state-sponsored banking entity to spur India's rural growth. Acting on these recommendations, the Government of India acquired IBI along with many other state-associated banks. On July 1, 1955, all the banks were amalgamated and SBI came into existence. Winds of change Since 1991, the Indian banking sector has undergone dramatic changes. One of the primary catalysts for these changes was the entry of private players like ICICI Bank and HDFC Bank into this sector. In order to maintain its lead in the market, SBI has taken a few important measures. The first initiative was the computerization of its huge branch network to inter-connect all of its branches, starting in June 2002. The bank also instituted as voluntary retirement scheme, which was initiated in 2001 and 2002 in order to downsize its workforce of more than 200,000. Through this scheme, employees were reduced to just over 20,000. Another significant change came in the form of business process re-engineering (BPR). According to company reports, this has helped the bank increase business per employee nearly 2.5 times in the last five years. Establishing call centers, setting up over 400 centralized processing centers, implementing alternative channels of banking like ATMs, internet banking and mobile banking were some of the major upgrades. Awards and Rankings • • • • • Best Bank (Business India, 2009) India’s Best Marketed Bank (4PS B & M & ICMR Survey, 2009) One of the 25 Most Valuable Indians: State Bank of India Chairman Shri Om Prakash Bhatt (The Week, 2009) No. 380, Global 500 (Fortune, 2008) No. 150, Global 2000 (Fortune, 2008) Customized for: vinh (
[email protected]) IN THE NEWS April 2009: State-of-the-art infrastructure in India SBI and Australian financial giant Macquarie Group partnered up to launch the Macquarie-SBI Infrastructure Fund (MSIF) in April 2009. MSIF raised initial capital of US$1.04 billion to invest in infrastructure projects such as roads, ports and power plants across India. R. Sridharan, the Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 269 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition State Bank of India managing director of SBI, remarked on India's infrastructure needs: "As per the Planning Commission of India estimates, the country will need close to US$500 billion in infrastructure investments in the next five years. Funding of this magnitude cannot be supported domestically alone and must be supplemented by other sources of capital." The fund has a strong supporter in the private-sector investment arm of the World Bank, the International Finance Corporation (IFC), which serves as a keystone investor and a minority shareholder in the venture. March 2009: India on strike On the verge of the liberalization of India’s banking industry in 2009, a move expected to bring in a large number of international banking players, SBI began to receive pressure on the home front. Beginning in December 2007, when SBI merged with its associate bank, State Bank of Saurashtra, SBI planned to eventually complete mergers with other associate banks by the spring of 2009. Yet, as the date of consolidation neared, a public outcry arose over the plans. Associate banks, including the State Bank of Hyderabad and the State Bank Bikaner & Jaipur, called for the observance of a one-day countrywide strike in March 2009 to protest against unequal treatment from SBI management. The lack of fringe benefits enjoyed by SBI employees being extended to the associate banks caused some of the discontent, an issue that has also caused conflict in the past—in 1987, 2000 and 2006, agreements were reached to discuss and increase associate benefits. Associate banks scheduled large-scale rallies for April 8 and 9, but they were eventually called off when SBI management reached a private agreement with representatives of protesting banks. December 2008: Director’s chair In December 2008, the Indian government issued a press statement declaring R. Sridharan the new Managing Director of SBI, with the appointment scheduled to run until June 2011. Sridharan served a variety of SBI functions and titles since joining the firm in 1972 as a probationary officer, and he most recently held the office of Deputy Managing Director in charge of SBI’s non-banking subsidiaries. June 2008 -November 2008: A season of ventures A pioneering agreement was signed in June 2008 between SBI and Societe Generale Securities, the investment banking arm of the namesake France-based financial group. Under the agreement, the companies would form a joint venture in which SBI would become the first public sector bank in India to offer services in custody, depository, fund administration and transfer agent services, areas which are already within the business scope of private sector firms. In June 2009, the bank issued a statement that this venture is expected to become operational by 2010. SBI signed another cooperative agreement with a large overseas financial house in November 2008 when the Insurance Australia Group (IAG) agreed to form a nonlife insurance company in India. The insurance business is expected to begin operations sometime before March 2010 and will target SBI’s corporate, SME and retail banking segments, which are the state bank’s stronger areas of business. Under the agreement, IAG will initially hold a 26 percent stake in the joint venture. GETTING HIRED Join the State India's Central Recruitment and Promotion Department (CRPD) manages the recruitment process for SBI and its associate banks. All new employees join SBI or associate banks as probationary officers. The selection process starts with a written test (objective as well as descriptive), followed by group discussions and a final interview. The objective test consists of reasoning, quantitative aptitude, general awareness, computer literacy and English language skills sections. For vacancies, click the "Recruitment" link at www.statebankofindia.com. You can also contact SBI's recruiting department directly at
[email protected], by phone at +91-22-2282-0427 or by fax at +91-22-2282-0411. Graduate candidates from all fields are eligible to become probationary officers. SBI employees are eligible for specialized training at the firm's colleges, situated in Hyderabad and Gurgaon. These schools include the State Bank Staff College at Hyderabad, the State Bank Academy, the Gurgaon State Bank Institute of Information and Communication Management, and the State Bank Institute of Rural Development. The bank plans to set up 3,000 more branches over next few years to support its operations in India and throughout the world. The bank recruited 33,703 new hires in the financial year ending March 2009, and plans to hire an additional 13,000 by March 2010. Customized for: vinh (
[email protected]) 270 © 2009 Vault.com Inc. SUMITOMO MITSUI BANKING CORPORATION 1-2, Yurakucho 1-Chome Chiyoda-ku Tokyo, 100-0006 Japan Phone: +81-3-5512-3411 Fax: +81-3-5512-4429 www.smbcgroup.com THE STATS Employer Type: Subsidiary of Sumitomo Mitsui Financial Group Chairman: Teisuke Kitayama President: Masayuki Oku Net Loss: JPY 301.1 billion (FYE 3/09) No. of Employees: 21,816 No. of Offices: 445 LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • Indonesia • Japan • Malaysia • Myanmar • Philippines • Singapore • South Korea • Taiwan • Thailand • Vietnam KEY COMPETITORS Citigroup Mitsubishi UFJ Financial Group Mizuho Financial Group DEPARTMENTS Asset Management • Investment Banking • Loans • Retail Banking • Securities Trading EMPLOYMENT CONTACT www.smbcgroup.com THE SCOOP Pride and joy Sumitomo Mitsui Banking Corporation (SMBC) was established in April 2001 through the merger of Sakura Bank and Sumitomo Bank, and is now Japan's third-largest bank behind Mitsubishi UFJ Financial Group and Mizuho Financial Group. The firm employs nearly 22,000 people and operates 445 offices spread throughout Japan and 20 international locations. SMBC offers services including deposits, loans, commodities trading, securities investment, domestic and foreign exchange, futures trading, bond fiduciary and registration, trust, securities brokerage and insurance. In December 2002, Sumitomo Mitsui Financial Group (SMFG) was established as the major holding company for SMBC. In addition to banking, SMFG's other main business is leasing. The company operates SMBC Leasing Co. in Japan and SMBC Leasing and Finance overseas. The parent company also owns a management consultancy, Japan Research Institute, and a credit card company, Sumitomo Mitsui Card. In September 2006, Sumitomo Mitsui Financial Group added a securities firm, SMBC Friend Securities, to its roster of companies. In the U.S., Sumitomo Mitsui Financial Group operates Los Angeles-based Manufacturers Bank in locations throughout California. Despite its entry into other markets and industry segments, Japanese banking remains SMBC's pride and joy. As of March 31, 2009, the bank had more than JPY 110 billion in assets. Customized for: vinh (
[email protected]) Restructuring the bank In April 2007, SMBC announced a new organizational structure. The firm established a private advisory department that handles consumer banking, middle-market banking and corporate banking. SMBC also established a financial consulting research and development department in charge of developing cross-category services in asset management, financing and settlement finance. In addition, SMBC launched its public and financial institutions banking department to manage the firm's relationships with municipal entities and central government agencies in Japan. The department also took over responsibility for planning and promoting regional banking from the Tokyo corporate banking department. 271 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Sumitomo Mitsui Banking Corporation Several departments within SMBC's investment banking business experienced a shake-up in 2007 as well. The firm established a new merchant banking department to help companies grow through equity and other investments. In response to a rising demand for asset management, SMBC launched a securities department that focuses on direct sales of specific investment products. Lastly, in light of reforms to the Japanese securities clearing and settlement system, SMBC revised the role of its global investor. IN THE NEWS May 2009: Subprime suckage In the financial year ending March 2009, SMBC posted an overall loss of JPY 301.1 billion, despite gains in net interest income from international operations and improvements bond performance. The primary reason for the loss was the global economic downturn, which has hammered away at SMBC since the subprime lending crisis led to the global credit disaster. For a while, it seemed that Japanese banks dodged the bullet in comparison to U.S. and European banks being trashed by the subprime crisis. However, at this point in time, the crisis has cost SMBC JPY 550.1 billion. May 2009: Keys to the Citi SMBC announced it would integrate Citigroup’s Japanese subsidiary Nikko Citi Holdings into its business in May 2009 after it won a bidding war involving other Japanese banking titans such as Mitsubishi UFJ Financial Group and Mizuho Financial Group. The purchase, conducted primarily through the Japanese retail brokerage group Nikko Cordial Securities, cost SMBC JPY 774.5 billion. SMBC is expected to complete the takeover by October 2009. SMBC’s parent group, SMFG, also has plans to eventually take over Nikko Cordial’s operations and merge them with Nikko Citi. April 2009: Dining on sushi at the Kremlin Russia’s Central Bank officially registered SMBC’s Russian subsidiary, Sumitomo Mitsui Russia Bank in April 2009. Opening with registered capital of RUB 1.6 billion, the bank will be granted a license to operate in Russia as soon as the authorized capital is paid. June 2008: Raising the Barclays Along with the Qatar Investment Authority, SMBC purchased a stake in global financial services institution Barclays in June 2008 that raised GBP 4.5 billion for the London-based banking house. The share transfer took place through an issue of 1.56 billion shares, of which SMBC shelled out GBP 500 million for a 2.1 percent stake. GETTING HIRED Do some serious digging Getting a job offer at SMBC requires some serious digging. Job seekers can check contact information for individual branches at www.smbcgroup.com. The site includes information on branches and representative offices in Australia, mainland China, Hong Kong, Indonesia, South Korea, Malaysia, Myanmar, the Philippines, Taiwan, Thailand and Vietnam. Unfortunately, no job openings are listed on the site. Alternately, candidates can try sending their resume or CV to the human resources department at 1-2 Yurakucho 1-chome, Chiyoda-ku, Tokyo, 100-0006, Japan—or call +81-3-5512-3411 to find out who to contact for job opportunities. Customized for: vinh (
[email protected]) 272 © 2009 Vault.com Inc. SUN HUNG KAI FINANCIAL 1201 CITIC Tower 1 Tim Mei Avenue Central, Hong Kong Phone: +852-3920-2888 Fax: +852-3920-2789 www.shkco.com THE STATS Employer Type: Public Company Ticker Symbol: 0086 (HKSE) Chairman: Lee Seng Huang Net Revenue: HK$2.78 billion (FYE 12/08) No. of Employees: 1,789 No. of Offices: 60+ LOCATIONS IN ASIA PACIFIC Brunei China Hong Kong Macau Singapore KEY COMPETITORS Bank of China CITIC Securities Taifook Securities Group DEPARTMENTS Asset Management • Consumer Finance • Corporate Finance • Principal Investments • Wealth Management & Brokerage EMPLOYMENT CONTACT www.shkco.com/en/careers/main.html THE SCOOP Here comes the Sun Sun Hung Kai & Co. Limited is a Hong Kong-based investment holding company that operates under the name Sun Hung Kai Financial (SHKF). The firm focuses on five main business areas: wealth management and brokerage, asset management, corporate finance, consumer finance and principal investments. The corporate finance group offers IPO, M&A, corporate restructuring and capital markets advisory services. As of December 2008, SHKF had over HK$50 billion in assets under management. The firm's 1,789 employees work from more than 60 offices in Hong Kong, mainland China, Macau and Singapore. In April 2009, SHKF posted disappointing financial results for 2008, with net revenue falling HK$1.89 billion from the previous year due largely to the global financial crisis. A son of the 1960s Sun Hung Kai & Co. Limited was founded in 1969 by Fung King Hey, Kwok Tak Seng and Lee Shau Kee—though it is now primarily controlled by a family trust set up by Kwok Tak Seng. Expanding in the 1970s and 1980s, Sun Hung Kai Securities Limited was listed on the stock market in Hong Kong in 1975, followed by Sun Hung Kai & Co. Limited in 1983. The firm later expanded into Shenzhen and Shanghai, as Sun Hung Kai Investment Services Limited began trading on both exchanges in 1993—one of the first approved brokers and lead underwriters on those exchanges. In 2006, the firm took the name Sun Hung Kai Financial to combine all of its financial businesses under one roof. Customized for: vinh (
[email protected]) Welcoming friends (and money) from Dubai At the height of the financial crisis, SHKF got a needed injection of cash straight from the Middle East. In November 2007, the Dubai Investment Group bought a 9.88 percent share in SHKF and got a seat on the Hong Kong-based firm’s board for a cool HK$1.9 billion. According to executive chairman Lee Seng Huang, the partnership will provide, "a strategic opportunity to tap into the growing capital flows from the Middle East to the Greater China markets." Following the purchase, in December 2007, Dubai Investment Group's CEO, Abdulhakeem Kamkar, was appointed as a non-executive director of SHKF. 273 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Sun Hung Kai Financial Buy and sell As part of an ongoing effort to streamline is business to focus exclusively on wealth management, brokerage, asset management, capital markets and consumer finance, SHFK agreed in June 2007 to sell off its 22.43 percent stake in Yu Ming Investments, a Hong Kong-based financial services firm that invests in securities and properties. Earlier, in March 2007, SHKF agreed to buy a 9.1 percent stake in Ambrian Capital, an independent investment bank in London, for approximately HK$90 million. SHKF works closely with Ambrian Capital in the area of corporate finance to raise capital for Asian companies in European capital markets, as well as to focus on alternative investment market listings on the London stock exchange. The two firms also collaborate in the areas of fund management and commodities. Awards and rankings • Best Broker in Hong Kong (FinanceAsia, 2008) • Hong Kong’s Best Local Brokerage 1990-2008 (Asiamoney, 2008) • Best Equity House in Hong Kong (FinanceAsia, 2008) IN THE NEWS April 2009: Good morning, Vietnam A memorandum of understanding was signed in April 2009 between SHKF and the Bank for Investment and Development of Vietnam, marking the company’s further expansion in the Asia Pacific region. The two financial firms plan to establish a two-way investment joint venture in which capital, networking opportunities and market information, will be mutually shared. February 2009: Over the hill Sun Hung Kai Financial celebrated its 40th anniversary by opening a new wealth management center. Located in Causeway Bay, one of Hong Kong’s key business districts, the flagship location centralized SHKF’s investment management operations under one roof, including financial products services and strategic wealth management consulting. In March 2009, SHKF unveiled a promotional offer attached to the new center in which new accounts were eligible to receive a waiver of up to HK$400,000 in brokerage commission fees. January 2009: The big buyback The global financial crisis was devastating for many private investors, including some who invested in Lehman Brothers Minibonds purchased through SHKF. After a public outcry over the purportedly misleading sales tactics banks in the territory used to sell the Minibonds, SHKF announced in January 2009 that it would repurchase up to HK$85 million in the troublesome bonds from some of its retail customers. Since Lehman Brothers collapsed, triggering a domino effect in the global financial landscape, SHKF worked in cooperation with a number of government agencies (both in Hong Kong and in the U.S.) to devise a solution for salvaging its customers’ savings. June 2008: Ambitious ventures In June 2008, SHKF formed a joint venture pioneering venture capital fund with Shenzhen Oriental Fortune Capital (SOFC), a mainland Chinabased venture capital investment firm. The partnership entity, named Shenzhen Oriental Venture Capital Management (SOVCM), launched with an initial capital amount of RMB 900 million. The fund will look for investment opportunities in Shenzhen in growing sectors such as information technology, biological technology and new forms of energy. Customized for: vinh (
[email protected]) May 2008: Earthquake recovery Immediately after the catastrophic May 2008 earthquake in Sichuan Province, SHKF mobilized an appeal for staff donations that would be matched dollar-for-dollar by the company. By June 2008, SHKF managed to raise approximately HK$2.5 million, all of which was donated to the Hong Kong Red Cross’ China Relief Fund to support victims of the disaster. 274 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Sun Hung Kai Financial GETTING HIRED Explore opportunities At SHKF's careers page at www.shkco.com/en/careers/main.html, you can explore a list of the company's current job opportunities, which span all the firm's divisions. If you find a position that you think you'd be suited for, send your resume, "present and expected salary" and contact information to Sun Hung Kai's human resources department at
[email protected]. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 275 TAIFOOK SECURITIES GROUP 25th Floor, New World Tower 16-18 Queen’s Road Central Central, Hong Kong Phone: +852-2848-4333 Fax: +852-2845-0537 www.taifook.com/english THE STATS Employer Type: Public Company (and subsidiary of Haitong Securities) Ticker Symbol: 0665 (HKSE) CEO & Managing Director: Shiu Hoi Wong Net Revenue: HK$730.2 million (FYE 12/08) No. of Employees: 997 No. of Offices: 20 LOCATIONS IN ASIA PACIFIC China Hong Kong Macau KEY COMPETITORS BOC International CITIC Securities Sun Hung Kai Financial DEPARTMENTS Asset Management Capital Markets Securities Brokerage Services EMPLOYMENT CONTACT www.taifook.com/english/aboutus/jobs.jsp (English) www.taifook.com/chi/aboutus/jobs.jsp (Chinese) THE SCOOP Brokering across Hong Kong and mainland China Taifook Securities Group (formerly known as simply Tai Fook) is one of Hong Kong's leading brokerage firms and offers a range of services, including capital markets, asset management and securities brokerage services. The firm’s clients include a large number of institutional and corporate investors as well as over 120,000 individual investors. Taifook Securities employs close to 1000 people, and is majority owned by NWS Holdings Limited, a Hong Kong-based investment holding company. Established in 1973, Taifook Securities has been listed on the Hong Kong Stock Exchange since 1996. The firm has 12 branches in Hong Kong and Macau, and six investment consultancy centers in mainland China in Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou and Xiamen. The firm has underwritten or placed shares for over 200 companies in Hong Kong on IPOs and secondary placements, and has also advised on more than 250 mergers and acquisitions, asset exchange and debt restructuring transactions. In December 2009, Taifook became a subsidiary of China’s Haitong Securities, which purchased a 53 percent stake in Taifook for HK$1.82 billion. Haitong is the second-largest Mainland China bank (by assets). The deal marked the first time a Mainland bank took over a brokerage firm in Hong Kong. Six pack of services Customized for: vinh (
[email protected]) Taifook Securities operates in six main areas. Its broking segment engages in securities, futures, options and gold bullion contracts broking and dealing. Margin and other financing handles margin financing, as well as personal and commercial loans to individuals and corporations. Corporate advisory offers placement and underwriting services. The trading and investment segment engages in investment holding in addition to trading of securities, futures, options and bullion contracts. Taifook Securities also offers financial planning and advisory services, as well as fund management, custodian and handling services, and leveraged foreign exchange trading. In March 2007, Taifook Securities expanded its asset management business with the acquisition of Kingsway Fund Management Limited. 276 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Taifook Securities Group True believer Demonstrating its belief that Taifook Securities is a promising player in the Hong Kong and mainland China markets, NWS Holdings increased its stake in the brokerage to over 60 percent in June 2007. NWS had previously held 21.5 percent of Taifook Securities since 2003 and had been its largest shareholder. NWS paid US$77 million for another 41 percent of Taifook Securities, which brought its total stake to 62.5 percent. Awards and rankings • Best Equity Pension Fund Over Three Years and Five Years: Taifook Investment Managers (Lipper Fund Awards Hong Kong, 20062009) • Best Equity House in Hong Kong (FinanceAsia, 2004-2008) • Best Domestic Equity House in Hong Kong (Asiamoney, 2008) • Best Brokerage Company (Capital magazine, 2007) IN THE NEWS November 2009: Getting a new parent Taifook Securities Group Limited agreed to sell a 53 percent stake in itself to Haitong Securities, which will pay NWS Holdings Ltd.—Taifook Securities’ parent company—HK$1.82 billion for the stake. The deal closed the following month, in December 2009. March 2009: Financial crisis lays waste to revenue Like many financial institutions around the world, the global financial crisis has hit Taifook Securities like a brick dropped out of a plane. The group released an interim report in March 2009 noting that total revenue dropped by 50 percent to HK$730.2 million in 2008. Even worse for the company was the fact that 63 percent of this revenue came from the first half of 2008. Translation: Taifook Securities made less money in the second half of 2008 than some people make betting on the Cubs to win the World Series every year. A significant part of the decrease in revenue was attributed to investment losses as a result of floundering worldwide markets in the second half of 2008. February 2009: Cookie monster Not every financial services firm appreciates baked goods, but Taifook Securities is cookie crazy. The firm has sponsored a charity program called the Helping Hand Cookie Campaign for four consecutive years as of February 2009. The program involves company volunteers selling “Helping Hand Wing Wah Cookies” and “Love Panda Key Chains,” internally in support of elderly care services. All of the proceeds from the sales then go to the Helping Hand Homes charity, which provides living quarters for elderly citizens afflicted with dementia. July 2008: Happy 35 Taifook Securities celebrated its 35th anniversary in July 2008, hosting a commemorative event at the Renaissance Harbour View Hotel in Hong Kong. Since the firm’s humble beginnings in 1973 when it had only 3000 clients, the company has since expanded to serve roughly 120,000 investors. Customized for: vinh (
[email protected]) GETTING HIRED Give Tai a try Taifook Securities' English careers site is located at www.taifook.com/english/aboutus/jobs.jsp., where candidates can peruse open positions. Interested candidates can send their resume or CV with a cover letter and "current and expected salary (a must)" to
[email protected] or by fax to +852-2537-5431. Be sure to cite the job's reference number. Alternately, resumes or CVs with a cover letter can be sent via snail mail to the Human Resources Department, Taifook Securities Group Ltd., 25/F New World Tower I, 16-18 Queen's Road Central, Central, Hong Kong. The firm also notes that there are more opportunities available on its Chinese site, located at www.taifook.com/chi/aboutus/jobs.jsp. Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 277 UNITED OVERSEAS BANK LIMITED CO. 80 Raffles Place UOB Plaza Singapore, 048624 Phone: +65-6533-9898 Fax: +65-6534-2334 www.uobgroup.com THE STATS Employer Type: Public Company Ticker Symbol: UOB (SES) Chairman: Wee Cho-Yaw CEO: Wee Ee-Cheong Net Income: SG$3.6 billion (FYE 12/08) No. of Employees: 22,299 No. of Offices: 500 LOCATIONS IN ASIA PACIFIC Australia • Brunei • China • Hong Kong • Indonesia • Japan • Malaysia • Myanmar • Philippines • South Korea • Taiwan • Thailand • Vietnam KEY COMPETITORS DBS Group Holdings OCBC Bank DEPARTMENTS Asset Management • Corporate Banking • Insurance • Personal Banking • Private Banking • Trust Services • Venture Capital EMPLOYMENT CONTACT Click the “Careers” link at the bottom of the firm’s home page at www.uobgroup.com Or send resumes to: 80 Raffles Pl., UOB Plaza Singapore, 048624 Fax: +65-6534-2334 THE SCOOP Expanding across Asia Pacific Over the past 74 years, United Overseas Bank (UOB) has grown into one of Singapore's leading financial institutions. The firm, founded by Datuk Wee Kheng Chiang, was incorporated in August 1935 as the United Chinese Bank and catered in its early years to the Fujian community. UOB officially changed its name to its current moniker in 1965. Today, UOB employs over 22,000 people and has a network of over 500 offices in 18 countries and territories in the Asia Pacific region, Western Europe and North America. The firm's subsidiaries include Far Eastern Bank in Singapore, United Overseas Bank Malaysia, United Overseas Bank Thai, PT Bank UOB Indonesia, PT Bank UOB Buana (also in Indonesia), United Overseas Bank China and United Overseas Bank Philippines. UOB provides a wide range of financial services, including personal banking, private banking, trust services, corporate banking, treasury services, asset management and venture capital. In addition, UOB is Singapore's market leader in the private residential home loan business, and with over 1.5 million cardholders, UOB is the country's leading credit and debit card company. It is also a dominant player in loans to small-and-medium-sized enterprises. UOB's fund management arm, UOB Asset Management, is one of Singapore's most-awarded fund managers. Customized for: vinh (
[email protected]) Taking over for dad In April 2007, Wee Ee-Cheong succeeded his father, Wee Cho Yaw, as CEO of UOB. Wee Cho Yaw, 78, the son of founder Datuk Wee Kheng Chiang, had held the CEO post for 30 years. Wee Cho Yaw retained his title as chairman. The 54-year-old grandson of Datuk Wee Kheng Chiang, Wee Ee-Cheong has been with UOB for almost as long as his dad was CEO, and was most recently deputy chairman and president. UOB began searching for a new CEO over three years prior to the younger Wee taking over, but most considered the son a shoo-in for the role. In accepting his new job, Wee Ee-Cheong announced that he did not plan to make any major changes to management, but noted plans to further build UOB's presence in Southeast Asian markets such as Thailand, Malaysia and Vietnam, as well as placing more emphasis on China. 278 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition United Overseas Bank Limited Co. Trying to double down in Vietnam One example of UOB's expanded focus in Vietnam is its effort to double its holding in the country’s Southern Commercial Bank. In December 2007, UOB finalized a deal to buy 10 percent of the Vietnamese bank—a share worth about US$30 million—and filed an application with the State Bank of Vietnam asking for permission to raise its investment in the bank to 20 percent. According to a report by Reuters, “Vietnam limits total foreign ownership in domestic banks to 30 percent, with a 10 percent cap for any individual investor. But the government has said that in exceptional cases it would allow a foreign strategic investor to own 20 percent." In October 2008, the State Bank of Vietnam granted UOB’s wish—almost. The Vietnamese bank issued a ruling permitting UOB to increase its share in Southern Commercial Bank to 15 percent, rather than the requested 20 percent. Awards and rankings • Best Bank in Singapore (Global Finance, Best Developed Market Banks, 2009) • The Best of Asia (Corporate Governance Asia, 5th Corporate Governance Asia Recognition Awards, 2009) • Best SME Bank in Asia Pacific (Asian Banking and Finance Retail Banking Award, 2009) • QFC-Asian Banker Achievement Award for Risk Management Excellence in Credit Card Management in Asia (The Asian Banker, 2009) • Best Overall Fund Group (The Edge-Lipper Singapore Fund Awards, 2008 and 2009) • Best Domestic Bank in Singapore (Asiamoney Awards, 2008 and 2009) • Net Profit Excellence, Finance Category (DP Information Group, Singapore 1000 Rankings, 2008) • Grand Prix for Best Overall Investor Relations - Large Cap (IR Magazine, South East Asia Awards, 2008) • The Best of Asia (Corporate Governance Asia, 4th Corporate Governance Asia Recognition Awards, 2008) • Best Domestic Provider of FX Services in Singapore, Best Local Cash Management Bank in Singapore, Best Local Currency Cash Management Services in Singapore (Asiamoney Awards, 2008) • Silver Award for Best Contact Centre of the Year for Outbound Campaign Programme Category (Contact Centre Association of Singapore, 2008) • “Top Rated” status for excellence in providing custody services (Global Custodian, 2008) • Best Domestic Bank in Singapore (The Asset, 2008) • Leading HR Practices in Leading and Human Capital Development Award (Singapore Human Resources Institute, 2008) • Distinguished Patron of the Arts Award (National Arts Council, 2008) IN THE NEWS October 2009: Good quarter, good year (so far) Customized for: vinh (
[email protected]) Fort the third quarter 2009, UOB booked operating profit of S$812 million, a 14.6 percent rise versus the profit it recorded for the same period a year earlier. And for the first nine months of 2009, UOB booked operating profit of S$2.64 billion, 10.9 percent higher than the profit it made a year earlier for the same period. April 2009: Restructuring on the horizon With the global economic downturn still raging during the first half of 2009, many companies continued cutting costs in an effort to stay competitive. In April 2009, UOB’s annual report stated that the bank is planning a restructuring process that will reduce operating costs. Though UOB remained vague on what the restructuring will actually entail, the bank said it did not plan on initially cutting jobs as a solution, and that it will pursue a “cautious course” through the “turbulent environment.” Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 279 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition United Overseas Bank Limited Co. April 2009: Trouble in Indonesia UOB’s Indonesian operations faced mounting pressure from thousands of angry employees demanding pay rises and annual bonus payments in early April 2009. Roughly 4000 workers from 23 branch offices launched a three-day strike in the country, disrupting the bank’s operations not only locally, but internationally as well. The strike prompted UOB to offer the disgruntled workers a total of RP 5 billion, an offer that proved too low from the RP 12.5 billion demanded by the strikers, and was ultimately rejected. UOB cited the global economic crisis as the major reason for not meeting its employees’ demands, though the banks latest financial results have shown strong profit growth since the previous year. As of August 2009, no additional updates had been reported. March 2009: Anything you can do … In a bold move that surprised many, UOB bravely waded into the thick of Singapore’s mass-market mortgages—a sector already dominated by powerhouse rivals OCBC Bank and DBS Group Holdings. In March 2009, UOB signed an exclusive deal with SingPost to sell and distribute HDB home loans for five years or longer. HDB flats were introduced to Singapore in the 1960s to quell the number of its residents living in squatter settlements. Currently, 80 to 90 percent of Singapore’s population lives in such high-density housing blocks. UOB stated that they hope the move will bring an added convenience to customers and further extend the bank’s distribution network. The bank plans to have 24 post office branches set up by end of 2009 that will be able to handle such loans. August 2008: Share and share alike Following similar moves by some of its rivals, UOB announced in August 2008 that it also would be issuing preferred shares. The bank stated that it would sell SG$1 billion in preferred shares, with SG$800 million worth of the sales being offered to institutional investors. January–June 2008: Assets in China One month after the Southern Commercial Bank announcement, Wee Ee-Cheong's plan to boost UOB's presence in China proved true as well. In January 2008, China Daily reported in that UOB Asset Management, Singapore's largest asset manager, was planning a joint venture fund management company with Ping An Securities, the securities arm of Ping An Insurance Co., China's second-largest insurer. Though it was initially unclear what the exact nature of UOB Asset Management's relationship with Ping An Securities would be, by the following June the two companies had won approval to set up a fund management joint venture. The new firm, situated in Shenzhen, has since begun hiring staff in areas such as marketing, auditing and risk management. GETTING HIRED Watch the video Settle in and watch UOB's recruitment video, learn about the perks the bank offers or just browse job listings at the "Careers" link at the bottom of www.uobgroup.com. The firm also offers a graduate careers section for students explaining their options when it comes graduate programs, as well as sections devoted to program tracks for management associates, personal banking associates and business development associates. "Outstanding performers" within the graduate program "will be rewarded with an accelerated career development path and attractive remuneration package," the firm says. To apply for any job on the site, or to submit a general application based on your area of interest, just create an account and send in your resume or CV. Customized for: vinh (
[email protected]) 280 © 2009 Vault.com Inc. THE WESTPAC GROUP Level 20, Westpac Place 275 Kent St. Sydney, 2000; Australia Phone: +61-2-300-130-548 Fax: +61-8253-1888 www.westpac.com.au Head Asia Office 77 Robinson Road Level 19, Robinson 77 Singapore 068896 Phone: +65-6530-9898 THE STATS Employer Type: Public Company Ticker Symbol: WBS (ASX), WBK (NYSE) CEO: Gail Kelly Revenue: AU$29.08 billion (FYE 9/08) Net Income: AU$3.85 billion No. of Employees: 34,800 No. of Offices: 200 KEY COMPETITORS Australia & New Zealand Bank (ANZ) Commonwealth Bank (CBA) National Australia Bank (NAB) LOCATIONS IN ASIA PACIFIC Australia • China • Hong Kong • India • Indonesia • New Zealand • Pacific Islands • Singapore EMPLOYMENT CONTACT Phone: +61-2-300-130-548 DEPARTMENTS Bank SA • BT Financial Group • RAMS Home Lending • St.George Bank • Westpac Institutional Bank • Westpac New Zealand Westpac Pacific Banking • Westpac Retail and Business Banking The Westpac Group, Westpac & RAMS www.westpac.com.au/careers St.George & BankSA www.st.george.com.au/careers BT Financial Group www.bt.com.au/careers THE SCOOP Supporting Australia around the globe Through more than 200 offices and 1,200 branches, The Westpac Group's some 34,000 employees offer retail banking, investment services and corporate financial services to about 10 million customers throughout Australia, New Zealand, Asia and the neighboring Pacific islands. After acquiring Australia's fifth-largest bank, St.George Bank, in December 2008 for about AU$16 billion, The Westpac Group has grown by leaps and bounds with five major financial services brands—Westpac, St.George, BankSA, RAMS and BT. The Westpac Group has now become the second largest of the four major Australian banking groups by assets, just behind National Australia Bank (NAB) and ahead of Commonwealth Bank (CBA) and Australia & New Zealand Bank (ANZ). Customized for: vinh (
[email protected]) Pre-acquisition, as of the end of Westpac's fiscal year in September 2008, the firm had global assets of AU$439 billion and was ranked in the top five among listed companies by market capitalization on the Australian Securities Exchange. (With the acquisition of St.George Bank, assets had skyrocketed to over AU$594 billion as of March 2009.) For the 2008 fiscal year, Westpac recorded cash earnings of AU$3.93 billion, which surpassed its 2007 results of AU$3.51 billion. Net profit was on an upward trend as well, surpassing the record-setting AU$3.45 billion in 2007 to a new record of AU$3.85 billion in fiscal 2008. The Westpac Group’s Asian strategy is to support Australian and New Zealand customers in Asia with the Westpac brand, and to provide a gateway for Asian firms and nationals interested in investing in Australasia. The firm's Singapore office, the main regional office in Asia, has been in operation since 1984. Westpac has also had a branch office in Hong Kong since 1986 and recently, in 2008, opened an office in Shanghai. Westpac has had representative offices in Jakarta since 1972, in Beijing since 1982, and in Mumbai since 2007. The firm's Pacific banking operations extend to the Cook Islands, Fiji, Papua New Guinea, Samoa, the Solomon Islands, Tonga and Vanuatu. 281 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Westpac Group Striking gold Established in 1817 as the Bank of New South Wales, Westpac is Australia's first bank as well as the country's first public company. When the bank first opened its doors, it operated from small premises leased from an ex-convict turned businesswoman. It was a challenging time of growth for the nation, and for the bank. Westpac's major expansion began after gold was discovered in New South Wales and Victoria. In 1850, it opened its very first branch outside NSW at Moreton Bay in Brisbane, and as the branches expanded, some were set up where no town yet existed. But even a branch as primitive as a tent lent stability to the rough-and-ready gold fields, and earned the respect of the hardened community. As they flourished, tents and bark huts eventually gave way to impressive, architecturally designed premises, with their solid respectability reflecting that of the bank. The name Westpac Bank was adopted in 1982, following a merger with the Victorian-based Commercial Bank of Australia Ltd. By its consolidation, Westpac became Australia's biggest banking group at the time. Reorganized, merged In July 2008, Westpac reorganized into four key customer-facing divisions: Westpac Retail and Business Banking (WRBB) including RAMS, BT Financial Group Australia (BTFG), Westpac Institutional Bank (WIB), and Westpac New Zealand Banking. Then, after the big December 2008 merger was completed, St.George Bank including BankSA became the fifth key division. WRBB is responsible for sales and services for consumer and business customers across Australia. Representation extends to branches, call centers, business banking centers, management of third-party distribution, automatic teller machines and online and regional banking. WRBB also manages the retail branch operations in Hong Kong and Singapore. In January 2008, Westpac acquired the RAMS Home Loans brand and distribution network. WRBB operates the RAMS distribution business separately from the existing Westpac channel and under the RAMS brand. WIB provides financial services to corporate and institutional customers through: corporate and institutional banking (including relationship management, research analysis and a global transactional banking group that provides cash management and transaction services solutions); debt markets (covering capital markets, credit portfolio management, debt capital markets and economics); foreign exchange and global energy and commodity derivatives; Hastings Funds Management Limited (for alternative asset investments, including property, economic and social infrastructure, private equity, commodities and high yield debt); equities (including equity lending, broking and equity derivatives); treasury and structured finance; finance; WIB Risk (risk management and compliance); and technology. WIB is represented across Europe and the Americas by about 65 employees in London and approximately 35 in New York. WIB has a long history in the U.K. and North America—the London branch celebrated 150 years in the city in 2007 and is the oldest surviving foreign bank in the United Kingdom. BT Financial Group (BTFG) takes care of asset accumulation, investment management, life insurance and general insurance in Australia. Wealth management designs, manufactures and services financial products to enable customers to build, manage and protect their wealth. BTFG encompasses distribution and service points including Westpac Private Bank, financial planning and wireless router application platforms (WRAPs). Westpac New Zealand Banking provides a full range of retail and commercial services to customers throughout New Zealand. It is the leading provider of banking services for small- to medium-sized businesses and is the banker of the New Zealand government. Meanwhile, in the nearby Pacific islands, Westpac Pacific Banking provides a full range of deposit, loan, transaction account and international trade facilities to personal and business customers. Committed to China Customized for: vinh (
[email protected]) One way The Westpac Group plans to grow in the region is through an expanded presence in Asia. In January 2008, the firm opened a Westpac branch in Shanghai, its first full-service overseas office in 15 years, signifying the importance of the Chinese market. The opening came after the China Banking Regulatory Commission approved The Westpac Group’s application for a financial license. The Shanghai office will cater to small- and medium-sized enterprises through services such as import and export settlement. The office, which started with a fulltime staff of 15, is led by Andrew Whitford, country head of China operations. The Westpac Group’s general manager of the Asia region, Yogan Rasanayakam, explained that the new office marks a significant milestone for the bank. "Given the deep trading links between China, Australia and New Zealand, it makes good business sense for Westpac to establish a branch in the financial capital of China," said Rasanayakam. "In particular, it will assist customers who are benefiting from China's demand for Australia's resources and New Zealand's agricultural products. China is now the world's growth engine and this new branch provides Westpac with a stronger capability to assist Australian, New Zealand and Chinese customers who are doing business in the region." 282 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Westpac Group Awards and rankings • • • • • • • • • • • (Westpac) Bank of the Year (Money Magazine, 2009) (Westpac) Business Bank of the Year (Money Magazine, 2009) (Westpac) Best Value Small Business Banking Award (Canstar Cannex, 2009) (St.George) Bank Home Lender of the Year (Money Magazine, 2009) (St.George) Bank of the Year (Financial Review, Smart Investor, 2009) (RAMS) Best Non-Bank Lender of the Year (Money Magazine, 2009) Strongest Bank in Australia (Asian Banker, 2009) Best Domestic Provider of FX Services in Australia (Asia Money, 2009) Best for Currency Strategy (Asia Money, 2009) Best Investment Platform: BT (AFR Smart Investor Blue Ribbon Awards, 2009) Gail Kelly: No. 6 among the Top 50 Women Business Leaders Around the World (Financial Times, 2009) IN THE NEWS September 2009: Ascalon is on After taking on a 50 percent stake in Ascalon Capital Managers through the St.George Bank merger, The Westpac Group went ahead and bought the remaining 50 percent from Kaplan Equity in September 2009. Financial terms of the deal weren't disclosed, but the move will help The Westpac Group push further into the wealth management sector, as Ascalon, which was established by St.George in the year 2000, provides incubation support for emerging boutique funds management firms. Rob Coombe, the chief executive of The Westpac Group’s wealth management division, BT Financial Group, commented, "Ascalon has a compelling business model, a very capable CEO, and a demonstrated track record of identifying talented managers who have set up a boutique business and have the potential to develop into significant participants in the Australian funds management industry." June 2009: New head of WIB After 27 years with Westpac, Phil Chronican, the group executive for Westpac Institutional Bank (WIB), announced his decision to leave the organization in late June 2009. Formerly serving as The Westpac Group’s chief financial officer, Chronican landed a top position at rival ANZ in September 2009, and now serves as the chief executive for ANZ's Australian operations. Chronican was replaced effective July 2009 by another long-term Westpac Group executive, Rob Whitfield, who had been serving as the firm's group executive for risk management. Whitfield joined the firm in 1986, and aside from broad WIB experience, he was also heavily involved in the St.George merger. The Westpac Group CEO Gail Kelly remarked, "Rob is very well placed to take on the leadership of Westpac Institutional Bank, with his in-depth understanding and knowledge of both The Westpac Group and the Institutional Bank. His recent experience as Group Executive, Risk Management, complements his 18 years' prior experience in the Institutional Bank, culminating in the role of Group Treasurer. I look forward to working with him in his new role." May 2009: The big freeze In a move following other banks in the region such as ANZ and CBA’s New Zealand subsidiary ASB, an internal memo circulated through Westpac New Zealand in May 2009 that employees making more than NZ$70,000 a year would not be receiving any salary raises in the near future. As reported in New Zealand's The National Business Review, the memo explained the decision related to "challenges of our business performance and the consequences of our recent half year results, where we reported a 15 percent fall in cash earnings." Westpac New Zealand's chief executive, George Frazis, remarked that the pay limitations will "unquestionably" help protect jobs at the bank. Despite difficulties faced by many financial institutions in the market downturn, The Westpac Group posted overall net profits of over AU$2.2 billion for the half year leading up to March 2009. Customized for: vinh (
[email protected]) April 2009: A shining ethics example The Westpac Group earned honors for a second consecutive year in April 2009 by the Ethisphere Institute’s annual list of most ethical companies in the world. The only Australian company to make the list this time around, Ethisphere is a New York-based think tank involved Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 283 Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Westpac Group in the promotion of corporate responsibility, ethical business practices and industry and public leadership. Many of the companies making the cross-industry list are large multinational corporations leading their respective sectors, including Nike, Unilever and IKEA. March 2009: Strong backing With the support of a November 2008 deposit guarantee initiative launched by the Australian government to strengthen the financial sector during the downturn, The Westpac Group issued AU$3.06 billion in three-year bonds in March 2009. This was one of the largest single bond offers in the history of the Australian dollar, with many prominent fund managers joining the purchase frenzy. December 2008: New guy in New Zealand After Brad Cooper, Westpac New Zealand's chief executive, was appointed to lead the integration process for the St.George merger, The Westpac Group underwent a search for new leadership in New Zealand. The firm found its man in George Frazis, who had been serving as the executive general manager for development and new business at National Australia Bank (NAB). Prior to NAB, Frazis had served at CBA, and as a partner at The Boston Consulting Group. During the international search, Bruce McLachlan had been serving as the firm's acting chief executive since June 2008; he returned to his role as general manager of the consumer banking business in New Zealand. December 2008: Saint comes marching in In her new position, CEO Gail Kelly has been moving at lightning speed. In the largest deal to date between two Australian-based companies, Kelly's former firm, St.George Bank—the fifth-largest bank in Australia—joined forces with new beau Westpac in an all-stock deal initially valued at a whopping AU$18.5 billion. Shareholders of St.George were offered 1.31 Westpac shares for each St.George share, as well as a final dividend for the 2008 fiscal year. The merger, announced in May 2008, was successfully completed in December 2008, creating The Westpac Group. The final deal value landed at about AU$16 billion. Integration is being led by Brad Cooper, who was appointed to the post of Group Chief Transformation Officer in June 2008 after serving as Westpac New Zealand's chief executive for a little over a year. March 2008: Ushering in a new era New Westpac Group CEO Gail Kelly made the first major personnel change at the firm. She hired her former right-hand man at St.George Bank, Peter Clare, to lead the Consumer Financial Services division, The Westpac Group’s second-biggest moneymaker. In July 2008, Clare switched departments, becoming the Group Executive for Product and Operations. February 2008: History-making CEO In August 2007, Westpac announced that Gail Kelly, the CEO of fellow Aussie bank St.George Bank, would succeed David Morgan as Westpac's CEO. The appointment makes Kelly the first female CEO of a Big Four bank in Australia. Kelly, a native South African and former teacher, had been appointed CEO of St.George in December 2001 and became a managing director in January 2002. Under Kelly's reign, St.George more than doubled its total assets and its profits. Prior to St.George, Kelly also served in executive positions at Commonwealth Bank. Kelly took over as The Westpac Group’s CEO in February 2008. GETTING HIRED Customized for: vinh (
[email protected]) Can-do! The Westpac Group looks for "people with a can-do attitude, who are energetic, passionate, optimistic and innovative." The firm's careers web site at www.westpac.com.au/careers has a wealth of information about what it's like to be a part of the team, and what it takes to get there. The Westpac Group also has a site dedicated to St.George careers at www.stgeorge.com.au/careers. The Westpac Group hosts graduate programs for both Westpac and St.George. At Westpac, there are two types of programs for graduates. The generalist program gives participants a taste of several business areas. At the end of the program, graduates decide where they'd like to focus their careers. Generalist programs are available in business and consumer banking, and enterprise business services, as well as the Westpac Institutional Bank. The specialist program allows graduates to focus on a chosen field, sampling different departments during the 284 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition The Westpac Group time of placement. Specialist programs are available in accounting, agribusiness, financial markets, information technology, legal, operations, human resources and risk. The Westpac Group also operates a network for alumni who have taken part in graduate programs. At St.George, graduates take part in rotations in sales, lending, risk, and compliance and credit. Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 285 WOORI FINANCIAL GROUP 20F 203 Hoehyeon-dong 1-ga Jung-gu Seoul 100-792 Korea Phone: 82-2-2125-2000 Fax: 82-2-2125-2291-4 www.woorifg.com THE STATS Employer Type: Public Company Ticker Symbol: WF (NYSE) Chairman & CEO: Pal-Seung Lee No. of Employees: 23,000 No. of Offices: 1,322 LOCATIONS IN ASIA PACIFIC China • South Korea • Hong Kong • Japan • India • Indonesia • Malaysia • Singapore • Vietnam KEY COMPETITORS Shinhan Financial Group KB Financial Group (formerly known as Kookmin Bank) DEPARTMENTS Asset Management • Bancassurance • Capital Markets • Commercial Banking • Credit Card Services • Investment Banking • Lease Services • Security Brokerage THE SCOOP Bank number won Set up in 2001, Woori Financial Group (WFG) became South Korea’s first financial holding company. The group operates eight subsidiaries, which were brought into the fold through a series of mergers and acquisitions. In the commercial banking sector, these subsidiaries include Woori Bank, the second-largest commercial bank in South Korea, Kwangju Bank and Kyongnam Bank. WFG also operates in the areas of securities, life insurance, asset management, financial information and private equity. The company employs 23,000 people and serves a network of 17 million commercial and retail customers in 1,322 locations across the globe. An integrated platform After WFG was officially launched in April 2001, the company integrated a number of key components during its first three years of operation; these included the incorporation of Woori Financial Information System, Woori Financial Asset Management, Woori Securities and Hanaro Investment Bank, which was soon renamed Woori Investment Bank. At the end of 2001, the company also launched the first Woori Credit Card. WFG was listed on the New York Stock Exchange (NYSE) in 2003, which led to management restructuring the following year. The second phase of WFG’s development saw the company acquire a number of local businesses, along with the formation of new partnerships. Among the purchases during this period of growth were LG Investment Securities and LG Investment Trust, the latter of which was merged with the group’s asset management wing in 2005. In 2006, WFG reached an agreement with Credit Suisse to build a joint-venture asset management entity. Since 2007, the company has also branched into the insurance business by acquiring LIG Life Insurance. Customized for: vinh (
[email protected]) IN THE NEWS April 2009: Hey big lender Woori Bank announced that it had borrowed a total of US$300 million from JP Morgan Chase & Co. and Deutsche Bank AG in two long-term lending contracts. These actions, made without a payment guarantee from the South Korean government, reflected investor confidence in the 286 © 2009 Vault.com Inc. Vault Guide to the Top 25 Asia Pacific Banking Employers, 2010 Edition Woori Financial Group bank. Previously, in February 2009, when Woori Bank did not redeem US$400 million in bonds due to mature in 2014, the bank underwent a sell-off in its debt. March 2009: Funding the development of South Korea Seoul’s Economy Ministry confirmed in March 2009 that Australian investment bank Macquarie would team up with Woori Bank to create a US$1 billion fund aimed at investing in renewable energy and infrastructure in South Korea. Macquarie, which has been investing in property and assets in South Korea in recent years, contributed US$300 million to the fund in addition to the US$200 million which Woori Bank will raise. The companies aim to reach their fiscal target for the fund by 2012. May 2008: A classical appointment The firm’s CEO recommendation committee of WFG nominated Pal-Seung Lee, the CEO of the Seoul Philharmonic Orchestra, to succeed Pak Byeong-won as the Chairman and CEO of WFG. The latter had handed in his resignation after the South Korean government decreed a change in the top management of state-owned firms to bring about greater privatization. After the appointment was made, Lee announced in a press conference that, in addition to working to speed up the process of privatizing WFG, the non-banking divisions of the company, such as securities and insurance, would receive greater attention. Lee was previously a banker at Hanil Bank for 38 years before leading Woori Securities and Investments from 1994 to 1999, after which he took up the Philharmonic Orchestra post. GETTING HIRED Send it in The firm’s website doesn’t host a careers section, so interested candidates should contact the firm about jobs—and perhaps include your resume when sending inquiries—via mail (20F 203 Hoehyeon-dong 1-ga/Jung-gu Seoul 100-792 Korea), phone (82 2 2125 2000), fax (82 2 2125 2291) or email (
[email protected]). Customized for: vinh (
[email protected]) Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more. 287 About the Editor Derek Loosvelt has a BS in economics from the Wharton School at the University of Pennsylvania and an MFA in creative writing from The New School. He is a writer and editor, and has worked for Brill’s Content and Inside.com. Previously, he worked in investment banking at CIBC and Duff & Phelps. Customized for: vinh (
[email protected]) 289