RATIONALE: 10TH ANNUAL TREASURY & FX AWARDS 2020

We hereby announce the awards rationale of our 10th Annual Alpha Southeast Asia Treasury & FX Awards 2020 for the following 33 awards categories.

We have over the last decade continued to refine and develop a unique, fair, robust and informative methodology and by adding a number of new criterions to existing awards, we have broadened the depth of our awards and tightened its eligibility among leading banks in Southeast Asia. Going forward, the role of treasury and FX will become a key factor as part of the awards evaluation process.

 

Indonesia:

  1. Best FX Bank for Corporates & FIs: Bank Mandiri
  2. Best FX Bank for Retail Clients: Bank Mandiri
  3. Best FX Bank for CCS, IRS, Forward & Options Hedging (Corporates, FIs & SMEs): Bank Mandiri

The Indonesian rupiah (IDR) has remained fairly volatile in the last few years despite recent weakening. As a leading local bank in the country, Bank Mandiri is the preferred choice among corporate treasurers at local corporates and FIs. The bank today remains as the best domestic provider for local currency products in Indonesia. By continuously investing in technology, the bank has significantly improved its pricing efficiency, reduced operating costs and increased its trading volume and while the numbers may pale in comparison to some global or regional banks, the bank has come a long way and its FX capabilities look set to strengthen in years ahead, enabling the bank to retain its position as the Best FX Bank for Retail Clients, Corporates & FIs: for tenth consecutive years.

 

  1. Best Corporate Treasury Sales and Structuring Team: BNI
  2. Best FX Bank for Structured Hedging Solutions and Proprietary Trading Ideas: BNI

The Indonesian economy has made excellent progress over the years when it comes to their fiscal position and external accounts. The macroeconomic outlook has also continued to improve since the multiple financial crises prior to the turn of the century. As a leading local bank in the country, Bank Negara Indonesia is the preferred choice among corporate treasurers at local corporates and FIs. The bank is one of the best domestic providers for local currency products in Indonesia. By continuously investing in technology, the bank has significantly improved its pricing efficiency, reduced operating costs and increased its trading volume and while the numbers may pale in comparison to some global or regional banks, the bank has come a long way and its FX capabilities look set to strengthen in years ahead.

 

  1. Best FX Bank for Structured Products: Commodities, Credit, Equity, FX and Multi-Assets: Maybank Indonesia

One of the top ten banks in the country, PT Bank Maybank Indonesia Tbk [Maybank Indonesia] has a genuine ambition and capability of becoming a one-stop FX solutions and investment services to its clients in Indonesia. With wide ranging products covering simple plain vanilla FX to FX options, derivatives, and structured products, both in the conventional and Islamic finance space, Maybank Indonesia is today  the Best FX Bank for Structured Products: Commodities, Credit, Equity, FX and Multi-Assets. Leveraging on over 374 branch offices, spread across 9 key regions across Indonesia, the bank has captured 10 percent of the FX flows within the country. With  ongoing digitisation of its business, Maybank Indonesia is set to expand its market share further in years to come.

 

Malaysia

  1. Best FX Bank for Corporates & FIs: AmBank
  2. Best FX Bank for Structured Products: Commodities, Credit, Equity, FX and Multi-Assets: AmBank

One of Ambank Group’s many strengths are its foreign exchange capabilities, which the bank is able to provide both in the Malaysian market as well as regionally. The bank has executed some of the best, most well-known structured swap solutions (both in terms of size and pricing) for large government-linked entities, MNCs as well as a number of corporates in Malaysia. Most of these deals would not have been completed without Ambank’s ability to provide competitive swap pricing. As one of Malaysia’s leading banks, AmBank’s derivative capability complements its funding proposals with synthetic G3 or regional funding solutions and provides issuers access to other currencies without compromising on the funding currency with the cheapest credit spreads. Therefore, the bank wins this much sought after accolade for the ninth consecutive years.

 

  1. Best FX Bank for Interest Rates, FX Research and Market Coverage: CIMB
  2. Best Corporate Treasury Sales and Structuring Team: CIMB

Given its predominance in the fixed income area, CIMB is able to package its bond offerings with derivative-based solutions (including cross currency swaps, interest rate swaps, credit linked notes etc.,) to its regional clients and investors, to facilitate cross border credit exposure/investments, enabling them to enhance the diversity of their investments and also capitalise on arbitrage opportunities. With a highly sought after team of corporate treasury sales and structuring professionals, CIMB has the best the world of ASEAN treasury and FX has to offer. CIMB has also continued to implement the latest world-class technology with the aim of enhancing productivity and cost efficiency, making it one of the most preferred choices for FX banking among financial and non-financial companies across Southeast Asia today.

 

  1. Best FX Bank for Retail Clients: RHB Bank

Following years of industry-wide consolidation, RHB Bank is fast emerging as a bank of choice not only among corporate and treasury clients but increasingly, SMEs, large corporates and FIs – spread across Malaysia today. With a strong balance sheet and a simple unyielding focus on leveraging on technology, the bank is one of the two most profitable banks in the country today. In almost every metric measured against, RHB Bank excels including key financial ratios, let alone in the realm of FX trading. RHB Bank is not only able to provide structured hedging solutions but also provide proprietary trading ideas by creating a combination of series of FX structures to hedge instability of cash inflows, making the bank one of the best local FX providers in the market today.

 

Philippines

  1. Best FX Bank for Corporates & FIs: BPI
  2. Best FX Bank for Retail Clients: BPI
  3. Best FX Bank for CCS, IRS, Forward & Options Hedging (Corporates, FIs & SMEs): BPI

BPI aims to uphold its reputation as the preferred domestic FX provider to the local corporates as well as financial institutions in the domestic interbank FX market in the Philippines. This includes large listed corporates, FIs, non-bank FIs, GLCs and SMEs including sole proprietors. With continuing costs improvements and evolving strategy to capitalize on the latest trends in the local FX market, BPI is emerging as the leading bank in this space. With a strong treasury research arm covering macroeconomics, econometrics and technical analysis, FX, interest rates, commodities and credits, BPI is able to structure products and provide financial solutions to its customers thanks to its unique ability of understanding the divergent needs of its client’ and offering competitive rates and efficient execution services.

 

  1. Best FX Bank for Structured Hedging Solutions and Proprietary Trading Ideas: BDO
  2. Best Corporate Treasury Sales and Structuring Team: BDO

After years of heavily investing in its suite of corporate treasury products and integrating its offerings across the bank, BDO is today remerging as one of the leading providers of treasury and FX services in the Philippines. Among SMEs and top-tier corporates, the bank is perceived as the most capable bank when it comes to providing unique FX and corporate treasury solutions. BDO’s secret to success lies in its infinite drive to lower costs for the benefit of its stakeholders and its treasury and FX clients as well as its ‘zero tolerance’ policy towards technical glitches. Given such, the bank has steadily made major inroads into the corporate treasury and FX space and is today, the undisputed leader of FX services in the Philippines.

 

Singapore:

  1. Best FX Bank for Corporates and FIs: OCBC
  2. Best FX Bank for CCS, IRS, Forward & Options Hedging (Corporates, FIs & SMEs): OCBC
  3. Best Corporate Treasury Sales and Structuring Team: OCBC Bank

OCBC Bank has evolved from being a traditional treasury business unit into becoming a leading Asian financial powerhouse with a broad range of capabilities in foreign exchange, interest rates, money market, derivatives and securities trading to corporations and financial institutions. In Singapore, OCBC is today one of the leading market makers for SGD and SGD cross-currency options, with a fast growing market share among key players in the city-state. OCBC is also ranked among the top players in terms of the daily FX volumes in Singapore. OCBC is also widely acknowledged as the emerging provider of treasury products and the leader in both SGD and Asian currencies products. At its end, OCBC has also continued to enhance productivity and cost efficiency, and thus winning the award Best FX Bank for Corporates and FIs in particular for the eighth consecutive year.

 

  1. Best FX Bank for Structured Hedging Solutions and Proprietary Trading Ideas: DBS Bank
  2. Best FX Bank for Structured Products: Commodities, Credit, Equity, FX and Multi-Assets:DBS Bank
  3. Best FX Bank for Interest Rates, FX Research and Market Coverage: DBS Bank

DBS Bank is often ranked among the top ten percentile of all commercial and merchant banks combined, in terms of the daily FX volumes in RMB in Singapore. Trading flows at DBS Bank also make up to approximately 2 percent of the total turnover, which is 3x more than the average turnover in Singapore. As a major player in Asian currency options, DBS FX derivatives team is one of Singapore’s fastest growing departments given the widening regional footprint at the bank. Lately, DBS is also being widely acknowledged as the leading provider of treasury products and the leader in both SGD and Asian currencies products. Levelling the playing field, DBS has also implemented the latest world-class technology with the aim of enhancing productivity and cost efficiency, making it one of the most preferred choices for FX banking among financial and non-financial companies across Southeast Asia today.

 

Thailand:

  1. Best FX Bank for Retail Clients: Kasikornbank
  2. Best FX Bank for Structured Products: Commodities, Credit, Equity, FX and Multi-Assets: Kasikornbank
  3. Best Corporate Treasury Sales and Structuring Team: Kasikornbank

After years of heavily investing in its suite of corporate treasury products and integrating its offerings across the bank, Kasikornbank is today remerging as one of the leading providers of treasury and FX services in Thailand. Among small-to-medium-sized companies as well as top-tier corporates, the bank is perceived as the most capable bank when it comes to providing unique FX and corporate treasury solutions. Kasikornbank’s secret to success lies in its infinite drive to lower costs for the benefit of its stakeholders and its treasury and FX clients as well as its ‘zero tolerance’ policy towards technical glitches. With a 24/7 call centre dedicated to supporting its products, the bank has made major inroads into the corporate treasury and FX space and is today, the undisputed leader of FX services in Thailand, winning in this series of awards for the sixth consecutive year.

 

  1. Best FX Bank for Corporates & FIs: Siam Commercial Bank
  2. Best FX Bank for Structured Hedging Solutions and Proprietary Trading Ideas: Siam Commercial Bank

As one of Thailand’s largest banks, Siam Commercial Bank (SCB) is the Best FX Bank for Corporates & FIs in the country. SCB is able to offer a wide array of products and services to help its clients hedge their financial risk and efficiently manage their portfolios. From trading ideas to hedging solutions, SCB products range from vanilla FX forwards and options to long-dated IRS and CCS transactions of up to 20 years. The bank also accounts for approximately 20-25 percent of Thailand’s market share with regards to daily “flow” transactions and up to 30-35 percent of local derivative activity. In fact, SCB utilizes a holistic approach when it comes to providing optimal hedging strategies for its client’ portfolio, garnering increasing market share despite the stiff competition among key players in the market.

 

  1. Best FX Bank for CCS, IRS, Forward & Options Hedging (Corporates, FIs & SMEs): Bangkok Bank
  2. Best FX Bank for Interest Rates, FX Research and Market Coverage: Bangkok Bank

 

Bangkok Bank is among the top five as a market maker and a liquidity provider in the USD/THB FX options market. The bank is also one of the top three market players in Thailand, in the areas of Cross Currency Swap (CCS), Interest Rate Swap (IRS) and Forwards for Corporates and FIs. In terms of the bank’s market share of the local currency interest rate flows, the bank has been one of the top three market players in Thailand for several years. As for THB money market flows, Bangkok Bank’s market share is in the envious range of between 15 percent and 20 percent. As one of the largest loan providers to corporates and SMEs in Thailand, Bangkok Bank has also cornered a significant market share for hedging instruments, namely Cross Currency Swaps (CCS) and Interest Rate Swaps (IRS). Leveraging on its bank wide capabilities and deep knowledge of key trends shaping market direction, Bangkok Bank today is able to produce actionable research and offer solutions that are second to none.

 

VIETNAM

 

  1. Best FX Bank for Corporates & FIs: Sacombank
  2. Best FX Bank for Retail Clients: Sacombank

As a leading bank in the country, Sacombank has refined its bank wide treasury and FX capabilities over the last twenty years. The bank is able to offer wide ranging FX services in line with local regulatory requirements. Sacombank produces research covering multi asset classes including forecast exchange rates, interest rates and commodities prices. In recent years, a number of roles have been automated and everything possible is being done to drive down transaction costs and thus, create competitive pricing for its clients, large and small, both at the retail and corporate spectrum. Be it spot, derivatives and commodities. Backed by Large capital, good liquidity management, a centralized customer database as well as a well-trained and extensive sales team, Sacombank is expected to rise from strength to strength for many more years ahead.

 

  1. Best FX Bank for Structured Products: Commodities, Credit, Equity, FX and Multi-Assets: Vietcombank
  2. Best Corporate Treasury Sales and Structuring Team: Vietcombank

Vietcombank is one of the best one-stop provider of FX services in Vietnam. In terms of commodities, credit, as well as equity, Vietcombank is able to provide a range of FX solutions to its corporate, retail and institutional clients. As one of the top players in the country, Vietcombank is able to leverage on its branch network and maximise the use of its capital to grow its fee-based income. Despite challenging headwinds driven by US-China trade tensions, geopolitical uncertainties and negative sentiments, Vietcombank has continued to refine and strengthen its product offering and is an anchor of refuge in a sea of market volatility, making the bank a preferred choice among clients, large and small.

 

MARQUEE AWARD

 

Best Derivatives House in Southeast Asia: OCBC Bank

The key to a solid foundation lies in solid building blocks, a material ingredient found in one of Asia’s most ambitious banks. With a pro-active advisory team of treasury advisors and time-sensitive innovative solutions the bank is able to offer, OCBC Bank is an industry leader unlike another. As an example, to enable a client to urgently hedge interest rates is one thing but to offer a holistic solution well before the need becomes an urgency is quite another. While it should be considered a feat to help mitigate interest rate risks but just as equally a feather in the cap when the bank is able to help improve the overall hedge using a basis swap to derive significant savings for its clients. From a Cross Currency Swap to hedge out rising USD risk – to its syndicated loans to providing an investment upside to a FX Call Spread – creating a much welcome investment upside, OCBC Bank’s intricate understanding of market triggers and catalysts makes the bank a preferred partner for corporate treasurers and CFOs looking for transparent yet bespoke structured solutions. Thus, the award for the award category, Best Derivatives House in Southeast Asia again, goes to OCBC Bank.