Category: Machine Learning

  • MIL-OSI: Amalgamated Financial Corp. Declares Regular Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 22, 2024 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (“Amalgamated” or the “Company”) (Nasdaq: AMAL) today announced that its Board of Directors has declared a regular dividend to common stockholders of $0.12 per share, payable by the Company on November 21, 2024, to stockholders of record on November 5, 2024. The amount and timing of any future dividend payments to stockholders will be subject to the discretion of the Board of Directors.

    About Amalgamated Financial Corp.

    Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of June 30, 2024, our total assets were $8.3 billion, total net loans were $4.4 billion, and total deposits were $7.4 billion. Additionally, as of June 30, 2024, our trust business held $34.6 billion in assets under custody and $14.0 billion in assets under management.

    Investor Contact:
    Jamie Lillis
    Solebury Strategic Communications
    shareholderrelations@amalgamatedbank.com
    800-895-4172

    Source: Amalgamated Financial Corp.

    The MIL Network

  • MIL-OSI: The clock is ticking on Activeport’s $5.3 Million Rights Issue

    Source: GlobeNewswire (MIL-OSI)

    SYDNEY, Oct. 22, 2024 (GLOBE NEWSWIRE) — Activeport Group (ASX: ATV) has announced a significant financial move by launching a rights issue aimed at raising $5.3 million to bolster their software and Software-as-a-Service (SaaS) business ventures.

    In an attractive offer, shares are being made available at a 50% discount, providing an enticing opportunity for investors. As part of this initiative, shareholders will receive one free option for every three shares they purchase. The clock is ticking with firms bids due by Friday 1 November.

    Highlights: 

    • 3 for 4 Renounceable Rights Issue to raise up to $5.3 million 
    • Attractively priced at 2 cents per share 
    • Discount of 50% to the September 30-day VWAP 
    • With every 3 New Shares, shareholders receive 1 free attaching New Option 
    • New Options will have Exercise Price of 10 cents, term of 3 years 
    • Shareholders can trade their rights and apply for additional shares and options 
    • Rights to start trading from December 2024 

    The funds raised from the rights issue will be strategically utilised to strengthen Activeport’s balance sheet and provide working capital for accelerating growth. This capital injection will support hiring additional staff to enhance operations, expanding the SaaS portfolio and broadening the company’s global market presence.

    With a high gross margin exceeding 90% on its software products, Activeport has the potential to deliver significant shareholder returns, as its recurring revenue base grows. The company targets a deep global market, focusing on telecommunications and data centres, which delivers significant revenue per customer. And with cutting-edge GPU orchestration software optimised for the technically demanding cloud gaming industry, Activeport is perfectly positioned to tackle the emerging artificial intelligence market using the same advanced software.

    “Activeport has achieved profitability and established itself as a leading vendor of orchestration software for networks, data centres, cloud gaming, and artificial intelligence. We have significant projects underway in Asia, India, and the Middle East and an extensive pipeline of new opportunities in front of us.” Chairman Peter Christie stated “This fundraising will provide a solid foundation on which we can grow our recurring revenue base to achieve consistent, positive free cash flow. I look forward to continued shareholder support as we advance Activeport to the next level and deliver value for shareholders.”

    In addition, this week Activeport announced a strategic partnership with Australia’s FibreconX to orchestrate services across its new national dark fibre network. By integrating FibreconX with Activeport’s automation software, customers can create self-service networks that connect customers in Australia’s major commercial centres to all the major national data centres. This partnership empowers enterprise customers to build new networks that redefine speed, cost efficiency, flexibility, and connectivity in this era of AI.

    For more information on the Rights Issue, check the recent Activeport ASX announcements on the website- Link here. Activeport also held a webinar 16 October 2024 which is now available to view on YouTube.

    About Activeport
    Headquartered in Australia, Activeport develops automation software and customer self-service portals for global telecommunication providers. The Activeport product suite enables network automation, minimising operational costs, accelerating ‘time to revenue; and improving customer experience.
    For more information: https://www.activeport.com.au

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cdd6f0f8-eff6-4248-915d-5096ff5dbe76

    The MIL Network

  • MIL-OSI: First Busey Corporation Announces 2024 Third Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    CHAMPAIGN, Ill., Oct. 22, 2024 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE)

     Net Income of $32.0 million
    Diluted EPS of $0.55


    THIRD QUARTER 2024 HIGHLIGHTS

    • Adjusted net income1 of $33.5 million, or $0.58 per diluted common share
    • Noninterest income of $36.0 million, or 30.5% of operating revenue1
    • Record high quarterly revenue for the Wealth Management operating segment
    • Tangible book value per common share1 of $18.19 at September 30, 2024, compared to $16.97 at June 30, 2024, and $15.07 at September 30, 2023, a year-over-year increase of 20.7%
    • Tangible common equity1 increased to 8.96% of tangible assets at September 30, 2024, compared to 8.36% at June 30, 2024, and 7.06% at September 30, 2023
    • Announced transformative partnership with CrossFirst Bankshares

    For additional information, please refer to the 3Q24 Earnings Investor Presentation.

    MESSAGE FROM OUR CHAIRMAN & CEO

    Third Quarter Financial Results

    Net income for First Busey Corporation (“Busey,” “Company,” “we,” “us,” or “our”) was $32.0 million for the third quarter of 2024, or $0.55 per diluted common share, compared to $27.4 million, or $0.47 per diluted common share, for the second quarter of 2024, and $30.7 million, or $0.54 per diluted common share, for the third quarter of 2023. Adjusted net income1, which excludes the impact of acquisition and restructuring expenses, was $33.5 million, or $0.58 per diluted common share, for the third quarter of 2024, compared to $29.0 million, or $0.50 per diluted common share, for the second quarter of 2024 and $30.7 million or $0.55 per diluted common share for the third quarter of 2023. Annualized return on average assets and annualized return on average tangible common equity1 were 1.06% and 12.80%, respectively, for the third quarter of 2024. Annualized adjusted return on average assets1 and annualized adjusted return on average tangible common equity1 were 1.11% and 13.41%, respectively, for the third quarter of 2024.

    Third quarter results included $0.8 million in net securities gains, nearly all of which were unrealized, as well as immaterial follow-on adjustments from the mortgage servicing rights sale previously announced in the first quarter of 2024. Excluding these items, adjusted noninterest income1 was $35.1 million, or 29.9% of operating revenue1, during the third quarter of 2024, compared to $33.9 million, or 29.1% of operating revenue, for the second quarter of 2024 and $31.3 million, or 28.7% of operating revenue, for the third quarter of 2023. Further adjusted net income1 was $32.9 million for the third quarter of 2024 with these items excluded, equating to further adjusted earnings1 of $0.57 per diluted common share.

    Pre-provision net revenue1 was $41.7 million for the third quarter of 2024, compared to $41.1 million for the second quarter of 2024 and $38.1 million for the third quarter of 2023. Pre-provision net revenue to average assets1 was 1.38% for the third quarter of 2024, compared to 1.37% for the second quarter of 2024, and 1.24% for the third quarter of 2023. Adjusted pre-provision net revenue1 was $44.1 million for the third quarter of 2024, compared to $42.6 million for the second quarter of 2024 and $40.5 million for the third quarter of 2023. Adjusted pre-provision net revenue to average assets1 was 1.46% for the third quarter of 2024, compared to 1.42% for the second quarter of 2024 and 1.32% for the third quarter of 2023.

    Our fee-based businesses continue to add revenue diversification. Total noninterest income was $36.0 million for the third quarter of 2024, compared to $33.8 million for the second quarter of 2024 and $31.0 million for the third quarter of 2023. Busey’s Wealth Management and FirsTech operating segments contributed $16.2 million and $5.6 million, respectively, to our noninterest income for the third quarter of 2024, representing 60.4% of noninterest income on a combined basis.

    Busey views certain non-operating items, including acquisition-related expenses and restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). Non-operating pretax adjustments for acquisition and restructuring expenses1 were $1.9 million in the third quarter of 2024. Busey believes that its non-GAAP measures (which are identified with the endnote labeled as 1) facilitate the assessment of its financial results and peer comparability. For more information and a reconciliation of these non-GAAP measures in tabular form, see Non-GAAP Financial Information.

    We remain deliberate in our efforts to prudently manage our expense base and operating efficiency given the economic outlook. Noninterest expense was $75.9 million in the third quarter of 2024, compared to $75.5 million in the second quarter of 2024 and $70.9 million in the third quarter of 2023. Adjusted core expense1, which excludes the amortization of intangible assets and new markets tax credits, acquisition and restructuring expenses, and the provision for unfunded commitments, was $71.0 million in the third quarter of 2024, compared to $71.1 million in the second quarter of 2024 and $66.0 million in the third quarter of 2023. The year-over-year comparable period growth in adjusted core expense can be attributed primarily to the acquisition of M&M and general inflationary pressures on compensation and benefits and to a lesser extent certain other expense categories.

    Quarterly pre-tax expense synergies resulting from our acquisition of Merchants and Manufacturers Bank Corporation (the “M&M acquisition”) are anticipated to be $1.6 million to $1.7 million per quarter when fully realized. Quarterly run-rate savings are projected to be achieved by the first quarter of 2025. During the third quarter of 2024, we achieved approximately 79% of the full quarterly savings. We expect to continue to prudently manage our expenses and to realize increased rates of M&M acquisition synergies during the final quarter of 2024.

    Planned Partnership with CrossFirst

    On August 26, 2024, Busey and CrossFirst Bankshares, Inc. (“CrossFirst”) entered into an agreement and plan of merger (the “merger agreement”) pursuant to which CrossFirst will merge with and into Busey (the “merger”) and CrossFirst’s wholly-owned subsidiary, CrossFirst Bank, will merge with and into Busey Bank. This partnership will create a premier commercial bank in the Midwest, Southwest, and Florida, with 77 full-service locations across 10 states—Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas—and approximately $20 billion in combined assets, $17 billion in total deposits, $15 billion in total loans, and $14 billion in wealth assets under care.

    Under the terms of the merger agreement, CrossFirst stockholders will have the right to receive for each share of CrossFirst common stock 0.6675 of a share of Busey’s common stock. Upon completion of the transaction, Busey’s stockholders will own approximately 63.5% of the combined company and CrossFirst’s stockholders will own approximately 36.5% of the combined company, on a fully-diluted basis. Busey common stock will continue to trade on the Nasdaq under the “BUSE” stock ticker symbol.

    Completion of the merger is subject to customary closing conditions, including the approval of both Busey and CrossFirst stockholders and the regulatory approvals for the merger and the bank merger. With approvals, the parties expect to close the merger in the first or second quarter of 2025. The combined holding company will continue to operate under the First Busey Corporation name and the combined bank will operate under the Busey Bank name. It is anticipated that CrossFirst Bank will merge with and into Busey Bank in mid-2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank. In connection with the merger, Busey incurred one-time pretax acquisition-related expenses of $1.3 million during the third quarter of 2024.

    For further details on the merger, see Busey’s Current Report on Form 8‑K announcing the merger, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 27, 2024.

    Busey’s Conservative Banking Strategy

    Busey’s financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.

    The quality of our core deposit franchise is a critical value driver of our institution. Our granular deposit base continues to position us well, with core deposits1 representing 96.5% of our deposits as of September 30, 2024. Our retail deposit base was comprised of more than 253,000 accounts with an average balance of $22 thousand and an average tenure of 16.7 years as of September 30, 2024. Our commercial deposit base was comprised of more than 33,000 accounts with an average balance of $97 thousand and an average tenure of 12.6 years as of September 30, 2024. We estimate that 29% of our deposits were uninsured and uncollateralized2 as of September 30, 2024, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

    Asset quality remains strong by both Busey’s historical and current industry trends. Non-performing assets decreased to $8.3 million during the third quarter of 2024, representing 0.07% of total assets. Busey’s results for the third quarter of 2024 include an insignificant provision expense for credit losses and a $0.4 million provision expense for unfunded commitments. The allowance for credit losses was $85.0 million as of September 30, 2024, representing 1.09% of total portfolio loans outstanding, and providing coverage of 10.34 times our non-performing loan balance. Busey recorded net charge-offs of $0.2 million in the third quarter of 2024. As of September 30, 2024, our commercial real estate loan portfolio of investor-owned office properties within Central Business District3 areas was minimal at $2.1 million. Our credit performance continues to reflect our highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with our company.

    The strength of our balance sheet is also reflected in our capital foundation. In the third quarter of 2024, our Common Equity Tier 1 ratio4 was 13.78% and our Total Capital to Risk Weighted Assets ratio4 was 18.19%. Our regulatory capital ratios continue to provide a buffer of more than $580 million above levels required to be designated well-capitalized. Our Tangible Common Equity ratio1 increased to 8.96% during the third quarter of 2024, compared to 8.36% for the second quarter of 2024 and 7.06% for the third quarter of 2023. Busey’s tangible book value per common share1 increased to $18.19 at September 30, 2024, from $16.97 at June 30, 2024, and $15.07 at September 30, 2023, reflecting a 20.7% year-over-year increase. During the third quarter of 2024, we paid a common share dividend of $0.24.

    Community Banking

    In July 2024—based on their community involvement and academic achievements—Busey awarded 10 deserving students from across Busey’s footprint in Illinois, Missouri, Florida, and Indiana, a $2,500 scholarship to support their continuing education and bright futures. With 70 applications received, and a record number of eligible applicants, the students with the top scores, as determined by Busey’s Scholarship Committee, averaged a 4.16 GPA. Since the inception of the Busey Bank Bridge Scholarship program in 2022, Busey has awarded 30 scholarships to deserving students for a total $75,000. Full details on the scholarship’s eligibility criteria and application process can be found at https://www.busey.com/busey/busey-bank-bridge-scholarship.

    As we build upon Busey’s forward momentum and our strategic growth plans, we are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal shareholders. With our strong capital position, an attractive core funding base, and a sound credit foundation, we remain confident that we are well positioned as we move into the final quarter of 2024 and into 2025. We are mindful of the evolving economic outlook and remain focused on balance sheet strength, profitability, and growth, in that order. The pending CrossFirst transaction fits with our acquisition strategy and we are excited to welcome our CrossFirst colleagues into the Busey family.

        Van A. Dukeman
        Chairman and Chief Executive Officer
        First Busey Corporation
     
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
    (dollars in thousands, except per share amounts)
                       
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    EARNINGS & PER SHARE AMOUNTS                  
    Net income $ 32,004     $ 27,357     $ 30,666     $ 85,586     $ 96,816  
    Diluted earnings per common share   0.55       0.47       0.54       1.49       1.72  
    Cash dividends paid per share   0.24       0.24       0.24       0.72       0.72  
    Pre-provision net revenue1, 2   41,744       41,051       38,139       129,168       125,593  
    Operating revenue2   117,688       116,311       109,084       343,676       336,146  
                       
    Net income by operating segment:                  
    Banking   33,221       26,697       31,189       86,410       98,689  
    FirsTech   (61 )     28       317       53       505  
    Wealth Management   5,618       5,561       4,781       16,177       14,571  
                       
    AVERAGE BALANCES                  
    Cash and cash equivalents $ 502,127     $ 346,381     $ 252,730     $ 480,979     $ 237,370  
    Investment securities   2,666,269       2,737,313       3,148,759       2,769,862       3,254,054  
    Loans held for sale   11,539       9,353       2,267       8,585       1,955  
    Portfolio loans   7,869,798       8,010,636       7,834,285       7,826,741       7,767,378  
    Interest-earning assets   10,936,611       10,993,907       11,118,167       10,976,660       11,142,780  
    Total assets   12,007,702       12,089,692       12,202,783       12,040,414       12,225,232  
                       
    Noninterest-bearing deposits   2,706,858       2,816,293       2,925,244       2,743,777       3,082,884  
    Interest-bearing deposits   7,296,921       7,251,582       7,217,463       7,292,884       6,886,277  
    Total deposits   10,003,779       10,067,875       10,142,707       10,036,661       9,969,161  
                       
    Federal funds purchased and securities sold under agreements to repurchase   132,688       144,370       190,112       151,835       207,014  
    Interest-bearing liabilities   7,731,459       7,725,832       7,864,355       7,762,867       7,748,218  
    Total liabilities   10,643,325       10,757,877       10,994,376       10,716,295       11,029,374  
    Stockholders’ equity – common   1,364,377       1,331,815       1,208,407       1,324,119       1,195,858  
    Tangible common equity2   994,657       955,591       850,382       957,788       835,204  
                       
    PERFORMANCE RATIOS                  
    Pre-provision net revenue to average assets1, 2, 3   1.38 %     1.37 %     1.24 %     1.43 %     1.37 %
    Return on average assets3   1.06 %     0.91 %     1.00 %     0.95 %     1.06 %
    Return on average common equity3   9.33 %     8.26 %     10.07 %     8.63 %     10.82 %
    Return on average tangible common equity2, 3   12.80 %     11.51 %     14.31 %     11.94 %     15.50 %
    Net interest margin2, 4   3.02 %     3.03 %     2.80 %     2.94 %     2.93 %
    Efficiency ratio2   62.15 %     62.32 %     62.38 %     60.87 %     59.97 %
    Adjusted noninterest income to operating revenue2   29.86 %     29.13 %     28.69 %     29.95 %     27.91 %
                       
    NON-GAAP FINANCIAL INFORMATION                  
    Adjusted pre-provision net revenue1, 2 $ 44,104     $ 42,617     $ 40,491     $ 125,359     $ 132,067  
    Adjusted net income2   33,533       29,016       30,730       89,080       96,889  
    Adjusted diluted earnings per share2   0.58       0.50       0.55       1.55       1.72  
    Adjusted pre-provision net revenue to average assets2, 3   1.46 %     1.42 %     1.32 %     1.39 %     1.44 %
    Adjusted return on average assets2, 3   1.11 %     0.97 %     1.00 %     0.99 %     1.06 %
    Adjusted return on average tangible common equity2, 3   13.41 %     12.21 %     14.34 %     12.42 %     15.51 %
    Adjusted net interest margin2, 4   2.97 %     3.00 %     2.79 %     2.92 %     2.91 %
    Adjusted efficiency ratio2   60.50 %     60.57 %     62.31 %     60.91 %     59.95 %

    ___________________________________________

    1. Net interest income plus noninterest income, excluding securities gains and losses, less noninterest expense.
    2. See Non-GAAP Financial Information for reconciliation.
    3. For quarterly periods, measures are annualized.
    4. On a tax-equivalent basis, assuming a federal income tax rate of 21%.
     
    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
    (dollars in thousands, except per share amounts)
     
      As of
      September 30,
    2024
      June 30,
    2024
      September 30,
    2023
    ASSETS          
    Cash and cash equivalents $ 553,709     $ 285,269     $ 337,919  
    Debt securities available for sale   1,818,117       1,829,896       2,182,841  
    Debt securities held to maturity   838,883       851,261       882,614  
    Equity securities   10,315       9,618       8,782  
    Loans held for sale   11,523       11,286       3,051  
               
    Commercial loans   5,631,281       5,799,214       5,824,800  
    Retail real estate and retail other loans   2,177,816       2,199,698       2,031,360  
    Portfolio loans   7,809,097       7,998,912       7,856,160  
               
    Allowance for credit losses   (84,981 )     (85,226 )     (91,710 )
    Premises and equipment   120,279       121,647       122,538  
    Right of use asset   11,100       11,137       11,500  
    Goodwill and other intangible assets, net   368,249       370,580       356,343  
    Other assets   530,548       567,036       588,212  
    Total assets $ 11,986,839     $ 11,971,416     $ 12,258,250  
               
    LIABILITIES & STOCKHOLDERS’ EQUITY          
    Liabilities          
    Deposits:          
    Noninterest-bearing deposits $ 2,683,543     $ 2,832,776     $ 2,918,574  
    Interest-bearing checking, savings, and money market deposits   5,739,773       5,619,470       5,747,136  
    Time deposits   1,519,925       1,523,889       1,666,652  
    Total deposits   9,943,241       9,976,135       10,332,362  
               
    Securities sold under agreements to repurchase   128,429       140,283       183,702  
    Short-term borrowings               12,000  
    Long-term debt   227,482       227,245       243,666  
    Junior subordinated debt owed to unconsolidated trusts   74,754       74,693       71,946  
    Lease liability   11,470       11,469       11,783  
    Other liabilities   198,579       207,781       212,633  
    Total liabilities   10,583,955       10,637,606       11,068,092  
               
    Stockholders’ equity          
    Retained earnings   279,868       261,820       224,698  
    Accumulated other comprehensive income (loss)   (170,913 )     (220,326 )     (290,730 )
    Other1   1,293,929       1,292,316       1,256,190  
    Total stockholders’ equity   1,402,884       1,333,810       1,190,158  
    Total liabilities & stockholders’ equity $ 11,986,839     $ 11,971,416     $ 12,258,250  
               
    SHARE AND PER SHARE AMOUNTS          
    Book value per common share $ 24.67     $ 23.50     $ 21.51  
    Tangible book value per common share2 $ 18.19     $ 16.97     $ 15.07  
    Ending number of common shares outstanding   56,872,241       56,746,937       55,342,017  

    ___________________________________________

    1. Net balance of common stock ($0.001 par value), additional paid-in capital, and treasury stock.
    2. See Non-GAAP Financial Information for reconciliation.
     
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    (dollars in thousands, except per share amounts)
                       
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    INTEREST INCOME                  
    Interest and fees on loans $ 111,336     $ 109,641     $ 99,844     $ 320,302     $ 284,423  
    Interest and dividends on investment securities   18,072       19,173       21,234       57,182       62,360  
    Other interest income   5,092       3,027       1,591       14,590       3,890  
    Total interest income $ 134,500     $ 131,841     $ 122,669     $ 392,074     $ 350,673  
                       
    INTEREST EXPENSE                  
    Deposits $ 46,634     $ 43,709     $ 37,068     $ 134,311     $ 78,576  
    Federal funds purchased and securities sold under agreements to repurchase   981       1,040       1,327       3,393       3,772  
    Short-term borrowings   26       418       1,964       676       12,527  
    Long-term debt   3,181       3,181       3,528       9,767       10,631  
    Junior subordinated debt owed to unconsolidated trusts   1,137       1,059       991       3,185       2,849  
    Total interest expense $ 51,959     $ 49,407     $ 44,878     $ 151,332     $ 108,355  
                       
    Net interest income $ 82,541     $ 82,434     $ 77,791     $ 240,742     $ 242,318  
    Provision for credit losses   2       2,277       364       7,317       1,944  
    Net interest income after provision for credit losses $ 82,539     $ 80,157     $ 77,427     $ 233,425     $ 240,374  
                       
    NONINTEREST INCOME                  
    Wealth management fees $ 15,378     $ 15,917     $ 14,235     $ 46,844     $ 43,594  
    Fees for customer services   8,168       7,798       7,502       23,022       21,560  
    Payment technology solutions   5,265       5,915       5,226       16,889       15,772  
    Mortgage revenue   355       478       311       1,579       871  
    Income on bank owned life insurance   1,189       1,442       1,001       4,050       3,682  
    Realized net gains (losses) on the sale of mortgage servicing rights   (18 )     277             7,724        
    Net securities gains (losses)   822       (353 )     (285 )     (5,906 )     (2,960 )
    Other noninterest income   4,792       2,327       3,018       10,550       8,349  
    Total noninterest income $ 35,951     $ 33,801     $ 31,008     $ 104,752     $ 90,868  
                       
    NONINTEREST EXPENSE                  
    Salaries, wages, and employee benefits $ 44,593     $ 43,478     $ 39,677     $ 130,161     $ 119,867  
    Data processing expense   6,910       7,100       5,930       20,560       17,472  
    Net occupancy expense of premises   4,633       4,590       4,594       13,943       13,896  
    Furniture and equipment expense   1,647       1,695       1,638       5,155       5,065  
    Professional fees   3,118       2,495       1,542       7,866       4,573  
    Amortization of intangible assets   2,548       2,629       2,555       7,586       7,953  
    Interchange expense   1,352       1,733       1,786       4,696       5,509  
    FDIC insurance   1,413       1,460       1,475       4,273       4,483  
    Other noninterest expense   9,712       10,357       11,748       27,992       31,735  
    Total noninterest expense $ 75,926     $ 75,537     $ 70,945     $ 222,232     $ 210,553  
                       
    Income before income taxes $ 42,564     $ 38,421     $ 37,490     $ 115,945     $ 120,689  
    Income taxes   10,560       11,064       6,824       30,359       23,873  
    Net income $ 32,004     $ 27,357     $ 30,666     $ 85,586     $ 96,816  
                       
    SHARE AND PER SHARE AMOUNTS                  
    Basic earnings per common share $ 0.56     $ 0.48     $ 0.55     $ 1.52     $ 1.75  
    Diluted earnings per common share $ 0.55     $ 0.47     $ 0.54     $ 1.49     $ 1.72  
    Average common shares outstanding   57,033,359       56,919,025       55,486,700       56,458,430       55,441,980  
    Diluted average common shares outstanding   57,967,848       57,853,231       56,315,492       57,411,299       56,230,624  
                                           

    BALANCE SHEET STRENGTH

    Our balance sheet remains a source of strength. Total assets were $11.99 billion as of September 30, 2024, compared to $11.97 billion as of June 30, 2024, and $12.26 billion as of September 30, 2023.

    We remain steadfast in our conservative approach to underwriting and disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters, and this approach has impacted loan growth as predicted. Portfolio loans totaled $7.81 billion at September 30, 2024, compared to $8.00 billion at June 30, 2024, and $7.86 billion at September 30, 2023.

    Average portfolio loans were $7.87 billion for the third quarter of 2024, compared to $8.01 billion for the second quarter of 2024 and $7.83 billion for the third quarter of 2023. Average interest-earning assets were $10.94 billion for the third quarter of 2024, compared to $10.99 billion for the second quarter of 2024, and $11.12 billion for the third quarter of 2023.

    Total deposits were $9.94 billion at September 30, 2024, compared to $9.98 billion at June 30, 2024, and $10.33 billion at September 30, 2023. Average deposits were $10.00 billion for the third quarter of 2024, compared to $10.07 billion for the second quarter of 2024 and $10.14 billion for the third quarter of 2023. Deposit fluctuations over the last several quarters were driven by a number of elements, including (1) seasonal factors, including ordinary course public fund flows and fluctuations in the normal course of business operations of certain core commercial customers, (2) the macroeconomic environment, including prevailing interest rates and inflationary pressures, (3) depositors moving some funds to accounts at competitors offering above-market rates, and (4) deposits moving within the Busey ecosystem between deposit accounts and our wealth management group. Core deposits1 accounted for 96.5% of total deposits as of September 30, 2024. Cost of deposits was 1.85% in the third quarter of 2024, which represents an increase of 10 basis points from the second quarter of 2024. Excluding time deposits, Busey’s cost of deposits was 1.50% in the third quarter of 2024, an increase of 14 basis points from the second quarter of 2024. Non-maturity deposit cost of funds has increased as Busey Bank continues to offer savings account specials to customers with larger account balances, with the intention of migrating maturing CDs to these managed rate products. Pressure on non-interest bearing deposits along with some elevated balances of higher rate seasonal business and public funds accounts also contributed to increases in overall deposit funding cost during the quarter. Spot rates on total deposit costs, including noninterest bearing deposits, increased by 5 basis points from 1.75% at June 30, 2024, to 1.80% at September 30, 2024. Spot rates on interest bearing deposits increased by 1 basis point from 2.45% at June 30, 2024 to 2.46% at September 30, 2024.

    There were no short term borrowings as of September 30 or June 30, 2024, compared to $12.0 million at September 30, 2023. We had no borrowings from the Federal Home Loan Bank (“FHLB”) at the end of the third quarter of 2024, the second quarter of 2024, or the third quarter of 2023. We have sufficient on- and off-balance sheet liquidity5 to manage deposit fluctuations and the liquidity needs of our customers. As of September 30, 2024, our available sources of on- and off-balance sheet liquidity totaled $6.37 billion. We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the third quarter of 2024 had a weighted average term of 8.1 months at a rate of 4.18%, 67 basis points below our average marginal wholesale equivalent-term funding cost during the quarter. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were approximately $81.1 million in the third quarter of 2024. For the remainder of 2024, cash flows from our securities portfolio are expected to be approximately $97.1 million with a current book yield of 2.18%.

    ASSET QUALITY

    Credit quality continues to be strong. Loans 30-89 days past due totaled $10.1 million as of September 30, 2024, compared to $23.5 million as of June 30, 2024, and $5.9 million as of September 30, 2023. The decrease in loans that were 30-89 days past due is primarily attributable to a single commercial real estate loan in the second quarter that is no longer past due as of September 30, 2024. Non-performing loans were $8.2 million as of September 30, 2024, compared to $9.1 million as of June 30, 2024, and $12.0 million as of September 30, 2023. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.11% as of both September 30, 2024, and June 30, 2024, and 0.15% as of September 30, 2023. Non-performing assets were 0.07% of total assets for the third quarter of 2024, compared to 0.08% for the second quarter of 2024 and 0.10% for the third quarter of 2023. Our total classified assets were $89.0 million at September 30, 2024, compared to $95.8 million at June 30, 2024, and $59.6 million at September 30, 2023. Our ratio of classified assets to estimated bank Tier 1 capital4 and reserves remains low by historical standards, at 5.9% as of September 30, 2024, compared to 6.4% as of June 30, 2024, and 4.1% as of September 30, 2023.

    Net charge-offs were $0.2 million for the third quarter of 2024, compared to $9.9 million for the second quarter of 2024, and $0.3 million for the third quarter of 2023. Charge-offs in the second quarter of 2024 were primarily in connection with a single commercial and industrial credit relationship that also experienced a partial charge-off during the first quarter of 2024. The allowance as a percentage of portfolio loans was 1.09% as of September 30, 2024, compared to 1.07% as of June 30, 2024, and 1.17% as of September 30, 2023. The ratio was impacted in 2024 by the acquisition of M&M’s Life Equity Loan® portfolio, as Busey did not record an allowance for credit loss for these loans due to no expected credit loss at default, as permitted under the practical expedient provided within the Accounting Standards Codification 326-20-35-6. The allowance coverage for non-performing loans was 10.34 times as of September 30, 2024, compared to 9.36 times as of June 30, 2024, and 7.64 times as of September 30, 2023.

    Busey maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.

     
    ASSET QUALITY (unaudited)
    (dollars in thousands)
               
      As of
      September 30,
    2024
      June 30,
    2024
      September 30,
    2023
    Total assets $ 11,986,839     $ 11,971,416     $ 12,258,250  
    Portfolio loans   7,809,097       7,998,912       7,856,160  
    Loans 30 – 89 days past due   10,141       23,463       5,934  
    Non-performing loans:          
    Non-accrual loans   8,192       8,393       11,298  
    Loans 90+ days past due and still accruing   25       712       709  
    Non-performing loans $ 8,217     $ 9,105     $ 12,007  
    Non-performing loans, segregated by geography:          
    Illinois / Indiana $ 3,981     $ 5,793     $ 7,951  
    Missouri   3,530       3,089       3,747  
    Florida   706       222       309  
    Other non-performing assets   64       90       96  
    Non-performing assets $ 8,281     $ 9,195     $ 12,103  
               
    Allowance for credit losses $ 84,981     $ 85,226     $ 91,710  
               
    RATIOS          
    Non-performing loans to portfolio loans   0.11 %     0.11 %     0.15 %
    Non-performing assets to total assets   0.07 %     0.08 %     0.10 %
    Non-performing assets to portfolio loans and other non-performing assets   0.11 %     0.11 %     0.15 %
    Allowance for credit losses to portfolio loans   1.09 %     1.07 %     1.17 %
    Coverage ratio of the allowance for credit losses to non-performing loans 10.34 x   9.36 x   7.64 x
    NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) (unaudited)
    (dollars in thousands)
                       
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Net charge-offs (recoveries) $ 247     $ 9,856     $ 293     $ 15,319     $ 1,842  
    Provision expense (release)   2       2,277       364       7,317       1,944  
                                           

    NET INTEREST MARGIN AND NET INTEREST INCOME

    Net interest margin1 was 3.02% for the third quarter of 2024, compared to 3.03% for the second quarter of 2024 and 2.80% for the third quarter of 2023. Excluding purchase accounting accretion, adjusted net interest margin1 was 2.97% for the third quarter of 2024, compared to 3.00% in the second quarter of 2024 and 2.79% in the third quarter of 2023. Net interest income was $82.5 million in the third quarter of 2024, compared to $82.4 million in the second quarter of 2024 and $77.8 million in the third quarter of 2023.

    After raising federal funds rates by a total of 525 basis points between March 2022 and July 2023, the Federal Open Market Committee (“FOMC”) lowered rates by 50 basis points in September 2024. In anticipation of the FOMC pivot to an easing cycle, we limited our exposure to term funding structures and intentionally priced savings specials to encourage maturing CD balances to migrate to managed rate non-maturity products. During September we began lowering rates on special priced deposit accounts and other managed rate products to benefit from the FOMC rate cuts. In addition, approximately 6% of our deposit portfolio is indexed and immediately repriced with the rate cuts by the FOMC. With our short duration CD balances comprising only 15% of the deposit funding base, we also have the ability to quickly reprice the book at lower market rates. We continue to offer CD specials with shorter term structures as well as offering attractive premium savings rates to encourage rotation of maturing CD deposits into nimble pricing products. Components of the 1 basis point decrease in net interest margin1 during the third quarter of 2024 include:

    • Increased cash and securities portfolio yield contributed +3 basis points
    • Increased loan portfolio and held for sale loan yields contributed +2 basis points
    • Increased purchase accounting contributed +2 basis points
    • Reduced borrowing expense +2 basis points
    • Reduced time deposit funding costs contributed +1 basis point
    • Increased non-maturity deposit funding costs contributed -11 basis points

    Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 2.1% over the subsequent twelve-month period. Busey continues to evaluate off-balance sheet hedging and balance sheet restructuring strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have provided funding flows, and we had excess earning cash during the third quarter of 2024. Since the onset of the current FOMC tightening cycle that began in the first quarter of 2022, our cumulative interest-bearing non-maturity deposit beta peaked at 41%. Our total deposit beta for the completed tightening cycle was 34%. Deposit betas were calculated based on an average federal funds rate of 5.43% during the third quarter of 2024. The average federal funds rate decreased by 7 basis points compared to the average rate of 5.50% in the second quarter of 2024.

    NONINTEREST INCOME

    Noninterest income was $36.0 million for the third quarter of 2024, as compared to $33.8 million for the second quarter of 2024 and $31.0 million for the third quarter of 2023. Excluding the impact of net securities gains and losses and immaterial follow-on adjustments from the previously announced mortgage servicing rights sale, adjusted noninterest income1 was $35.1 million, or 29.9% of operating revenue1, during the third quarter of 2024, $33.9 million, or 29.1% of operating revenue, for the second quarter of 2024, and $31.3 million, or 28.7% of operating revenue, for the third quarter of 2023.

    Consolidated wealth management fees were $15.4 million for the third quarter of 2024, compared to $15.9 million for the second quarter of 2024 and $14.2 million for the third quarter of 2023. Wealth management fees for the third quarter of 2024 declined by 3.4% compared to the second quarter of 2024 primarily based on seasonal tax preparation fees. On a segment basis, Wealth Management generated $16.2 million in revenue during the third quarter of 2024, a 12.7% increase over revenue of $14.4 million for the third quarter of 2023. Approximately $0.8 million of revenue attributed to the wealth segment is reported on a consolidated basis as part of other noninterest income. Third quarter of 2024 results marked a new record high reported quarterly revenue for the Wealth Management operating segment. The Wealth Management operating segment generated net income of $5.6 million in both the third quarter of 2024 and the second quarter of 2024, compared to $4.8 million in the third quarter of 2023. Busey’s Wealth Management division ended the third quarter of 2024 with $13.69 billion in assets under care, compared to $13.02 billion at the end of the second quarter of 2024 and $11.55 billion at the end of the third quarter of 2023. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark6 over the last three and five years.

    Payment technology solutions revenue was $5.3 million for the third quarter of 2024, compared to $5.9 million for the second quarter of 2024 and $5.2 million for the third quarter of 2023. Excluding intracompany eliminations, the FirsTech operating segment generated revenue of $5.6 million during the third quarter of 2024, compared to $6.2 million in the second quarter of 2024 and $5.7 million in the third quarter of 2023.

    Noninterest income generated from our Wealth Management and FirsTech operating segments comprised 60.4% of our total noninterest income for the quarter ended September 30, 2024, providing a balance to spread-based revenue from traditional banking activities.

    Fees for customer services were $8.2 million for the third quarter of 2024, compared to $7.8 million in the second quarter of 2024 and $7.5 million in the third quarter of 2023.

    Net securities gains were $0.8 million for the third quarter of 2024, comprised primarily of unrealized gains on equity securities.

    Other noninterest income was $4.8 million in the third quarter of 2024, compared to $2.3 million in the second quarter of 2024 and $3.0 million in the third quarter of 2023. Revenue associated with certain wealth management activities reported as other noninterest income on a consolidated basis was $0.8 million for the third quarter of 2024, compared to $0.2 million for the second quarter of 2024 and $0.1 million for the third quarter of 2023. Fluctuations in other noninterest income are primarily attributable to increases in venture capital investments, referral fees, and swap origination fees, partially offset by decreases in commercial loan sales gains. Increases for the year also reflect the addition of Life Equity Loan® servicing income beginning in the second quarter of 2024.

    OPERATING EFFICIENCY

    Noninterest expense was $75.9 million in the third quarter of 2024, compared to $75.5 million in the second quarter of 2024 and $70.9 million for the third quarter of 2023. The efficiency ratio1 was 62.1% for the third quarter of 2024, compared to 62.3% for the second quarter of 2024, and 62.4% for the third quarter of 2023. Adjusted core expense1 was $71.0 million in the third quarter of 2024, compared to $71.1 million in the second quarter of 2024 and $66.0 million in the third quarter of 2023. The adjusted core efficiency ratio1 was 60.2% for the third quarter of 2024, compared to 60.9% for the second quarter of 2024, and 60.2% for the third quarter of 2023. We expect to continue to prudently manage our expenses and to realize increased rates of M&M acquisition synergies during the final quarter of 2024.

    Noteworthy components of noninterest expense are as follows:

    • Salaries, wages, and employee benefits expenses were $44.6 million in the third quarter of 2024, compared to $43.5 million in the second quarter of 2024 and $39.7 million in the third quarter of 2023. Busey recorded $0.1 million of non-operating salaries, wages, and employee benefit expenses in the third quarter of 2024, compared to $1.1 million in the second quarter of 2024 and none in the third quarter of 2023. The increase in the third quarter of 2024 over the second quarter of 2024 was primarily attributable to performance metrics tied to bonus and equity compensation. Our associate-base consisted of 1,510 full-time equivalents as of September 30, 2024, compared to 1,520 as of June 30, 2024, and 1,484 as of September 30, 2023. The increase in our associate-base in the second quarter of 2024 was largely due to the M&M acquisition.
    • Data processing expense was $6.9 million in the third quarter of 2024, compared to $7.1 million in the second quarter of 2024 and $5.9 million in the third quarter of 2023. Busey recorded $0.1 million of non-operating data processing expenses in the third quarter of 2024, compared to $0.3 million in the second quarter of 2024 and none in the third quarter of 2023. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
    • Professional fees were $3.1 million in the third quarter of 2024, compared to $2.5 million in the second quarter of 2024 and $1.5 million in the third quarter of 2023. Busey recorded $1.4 million of non-operating professional fees in the third quarter of 2024, as compared to $0.4 million in the second quarter of 2024 and $0.1 million in the third quarter of 2023.
    • Other noninterest expense was $9.7 million for the third quarter of 2024, compared to $10.4 million in the second quarter of 2024 and $11.7 million in the third quarter of 2023. Busey recorded $0.4 million of non-operating costs in other noninterest expense in the third quarter of 2024, compared to $0.3 million in the second quarter of 2024 and none in the third quarter of 2023. In connection with Busey’s adoption of ASU 2023-02 on January 1, 2024, Busey began recording amortization of New Markets Tax Credits as income tax expense instead of other operating expense, which resulted in a decrease to other operating expenses of $2.3 million compared to the third quarter of 2023. Other items contributing to the fluctuations in other noninterest expense included the provision for unfunded commitments, mortgage servicing rights valuation expenses, fixed asset impairment, marketing, business development, and expenses related to recruiting and onboarding.

    Busey’s effective tax rate for the third quarter of 2024 was 24.8%, which was lower than the combined federal and state statutory rate of approximately 28.0% due to the impact of tax exempt interest income, such as municipal bond interest, bank owned life insurance income, and investments in various federal and state tax credits.

    Effective tax rates were higher in 2024, compared to 2023, due to the adoption of ASU 2023-02 in January 2024. Upon adoption of ASU 2023-02 Busey elected to use the proportional amortization method of accounting for equity investments made primarily for the purpose of receiving income tax credits. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense as opposed to being presented on a gross basis on the income statement as a component of noninterest expense and income tax expense.

    CAPITAL STRENGTH

    Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. On October 25, 2024, Busey will pay a cash dividend of $0.24 per common share to stockholders of record as of October 18, 2024. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

    As of September 30, 2024, Busey continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. Busey’s Common Equity Tier 1 ratio is estimated4 to be 13.78% at September 30, 2024, compared to 13.20% at June 30, 2024, and 12.52% at September 30, 2023. Our Total Capital to Risk Weighted Assets ratio is estimated4 to be 18.19% at September 30, 2024, compared to 17.50% at June 30, 2024, and 16.72% at September 30, 2023.

    Busey’s tangible common equity1 was $1.04 billion at September 30, 2024, compared to $970.9 million at June 30, 2024, and $841.2 million at September 30, 2023. Tangible common equity1 represented 8.96% of tangible assets at September 30, 2024, compared to 8.36% at June 30, 2024, and 7.06% at September 30, 2023. Busey’s tangible book value per common share1 increased to $18.19 at September 30, 2024, from $16.97 at June 30, 2024, and $15.07 at September 30, 2023, reflecting a 20.7% year-over-year increase. The ratios of tangible common equity to tangible assets1 and tangible book value per common share have been impacted by the fair value adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of shareholder’s equity.

    THIRD QUARTER EARNINGS INVESTOR PRESENTATION

    For additional information on Busey’s financial condition and operating results, please refer to the Q3 2024 Earnings Investor Presentation furnished via Form 8-K on October 22, 2024, in connection with this earnings release.

    CORPORATE PROFILE

    As of September 30, 2024, First Busey Corporation (Nasdaq: BUSE) was an $11.99 billion financial holding company headquartered in Champaign, Illinois.

    Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $11.95 billion as of September 30, 2024, and is headquartered in Champaign, Illinois. Busey Bank currently has 62 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, three in Southwest Florida, and one in Indianapolis. More information about Busey Bank can be found at busey.com.

    Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $13.69 billion as of September 30, 2024. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

    Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

    For the first time, Busey was named among the World’s Best Banks for 2024 by Forbes, earning a spot on the list among 68 U.S. banks and 403 banks worldwide. Additionally, Busey Bank was honored to be named among America’s Best Banks by Forbes magazine for the third consecutive year. Ranked 40th overall in 2024, Busey was the second-ranked bank headquartered in Illinois of the six that made this year’s list and the highest-ranked bank of those with more than $10 billion in assets. Busey is humbled to be named among the 2023 Best Banks to Work For by American Banker, the 2023 Best Places to Work in Money Management by Pensions and Investments, the 2024 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2024 Best Places to Work in Indiana by the Indiana Chamber of Commerce, and the 2024 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized globally, nationally and locally for our engaged culture of integrity and commitment to community development.

    For more information about us, visit busey.com.

    Category: Financial
    Source: First Busey Corporation

    Contacts:

    Jeffrey D. Jones, Chief Financial Officer
    217-365-4130

    NON-GAAP FINANCIAL INFORMATION

    This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring noninterest items and provide additional perspective on Busey’s performance over time.

    Below is a reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, average tangible common equity, return on average tangible common equity, adjusted return on average tangible common equity; net income and net security gains and losses in the case of further adjusted net income and further adjusted diluted earnings per share; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest income, adjusted noninterest expense, noninterest expense excluding non-operating adjustments, adjusted core expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; net interest income, total noninterest income, net securities gains and losses, and net gains and losses on the sale of mortgage servicing rights in the case of operating revenue and adjusted noninterest income to operating revenue; total assets and goodwill and other intangible assets in the case of tangible assets; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; and total deposits in the case of core deposits and core deposits to total deposits.

    These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

    Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue,
    Pre-Provision Net Revenue to Average Assets, and
    Adjusted Pre-Provision Net Revenue to Average Assets
    (dollars in thousands)
                         
        Three Months Ended   Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    PRE-PROVISION NET REVENUE                     
    Net interest income   $ 82,541     $ 82,434     $ 77,791     $ 240,742     $ 242,318  
    Total noninterest income     35,951       33,801       31,008       104,752       90,868  
    Net security (gains) losses     (822 )     353       285       5,906       2,960  
    Total noninterest expense     (75,926 )     (75,537 )     (70,945 )     (222,232 )     (210,553 )
    Pre-provision net revenue     41,744       41,051       38,139       129,168       125,593  
    Non-GAAP adjustments:                    
    Acquisition and restructuring expenses     1,935       2,212       79       4,555       91  
    Provision for unfunded commitments     407       (369 )     13       (640 )     (357 )
    Amortization of New Markets Tax Credits                 2,260             6,740  
    Realized (gain) loss on the sale of mortgage service rights     18       (277 )           (7,724 )      
    Adjusted pre-provision net revenue   $ 44,104     $ 42,617     $ 40,491     $ 125,359     $ 132,067  
                         
    Pre-provision net revenue, annualized [a] $ 166,069     $ 165,106     $ 151,312     $ 172,538     $ 167,917  
    Adjusted pre-provision net revenue, annualized [b]   175,457       171,405       160,644       167,450       176,573  
    Average total assets [c]   12,007,702       12,089,692       12,202,783       12,040,414       12,225,232  
                         
    Reported: Pre-provision net revenue to average total assets1 [a÷c]   1.38 %     1.37 %     1.24 %     1.43 %     1.37 %
    Adjusted: Pre-provision net revenue to average total assets1 [b÷c]   1.46 %     1.42 %     1.32 %     1.39 %     1.44 %

    ___________________________________________

    1. Annualized measure.
     
    Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Average Tangible Common Equity, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity
    (dollars in thousands, except per share amounts)
                         
        Three Months Ended   Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    NET INCOME ADJUSTED FOR NON-OPERATING ITEMS                    
    Net income [a] $ 32,004     $ 27,357     $ 30,666     $ 85,586     $ 96,816  
    Non-GAAP adjustments for non-operating expenses:                    
    Acquisition expenses:                    
    Salaries, wages, and employee benefits     73       1,137             1,210        
    Data processing     90       344             534        
    Professional fees, occupancy, furniture and fixtures, and other     1,772       731       79       2,688       91  
    Restructuring expenses:                    
    Salaries, wages, and employee benefits                       123        
    Acquisition and restructuring expenses     1,935       2,212       79       4,555       91  
    Related tax benefit1     (406 )     (553 )     (15 )     (1,061 )     (18 )
    Adjusted net income [b] $ 33,533     $ 29,016     $ 30,730     $ 89,080     $ 96,889  
                         
    DILUTED EARNINGS PER SHARE                    
    Diluted average common shares outstanding [c]   57,967,848       57,853,231       56,315,492       57,411,299       56,230,624  
                         
    Reported: Diluted earnings per share [a÷c] $ 0.55     $ 0.47     $ 0.54     $ 1.49     $ 1.72  
    Adjusted: Diluted earnings per share [b÷c] $ 0.58     $ 0.50     $ 0.55     $ 1.55     $ 1.72  
                         
    RETURN ON AVERAGE ASSETS                    
    Net income, annualized [d] $ 127,320     $ 110,029     $ 121,664     $ 114,323     $ 129,443  
    Adjusted net income, annualized [e]   133,403       116,702       121,918       118,990       129,540  
    Average total assets [f]   12,007,702       12,089,692       12,202,783       12,040,414       12,225,232  
                         
    Reported: Return on average assets2 [d÷f]   1.06 %     0.91 %     1.00 %     0.95 %     1.06 %
    Adjusted: Return on average assets2 [e÷f]   1.11 %     0.97 %     1.00 %     0.99 %     1.06 %
                         
    RETURN ON AVERAGE TANGIBLE COMMON EQUITY                    
    Average common equity   $ 1,364,377     $ 1,331,815     $ 1,208,407     $ 1,324,119     $ 1,195,858  
    Average goodwill and other intangible assets, net     (369,720 )     (376,224 )     (358,025 )     (366,331 )     (360,654 )
    Average tangible common equity [g] $ 994,657     $ 955,591     $ 850,382     $ 957,788     $ 835,204  
                         
    Reported: Return on average tangible common equity2 [d÷g]   12.80 %     11.51 %     14.31 %     11.94 %     15.50 %
    Adjusted: Return on average tangible common equity2 [e÷g]   13.41 %     12.21 %     14.34 %     12.42 %     15.51 %

    ___________________________________________

    1. Year-to-date tax benefits were calculated by multiplying year-to-date acquisition and restructuring expenses by the effective income tax rate for each year-to-date period, which for 2024 excludes a one-time deferred tax valuation adjustment resulting from a change in Illinois apportionment rate due to recently enacted regulations and deductibility of certain acquisition expenses. Tax rates used in these calculations were 23.3% and 19.8% for the nine months ended September 30, 2024 and 2023, respectively. Quarterly tax benefits were calculated as the year-to-date tax benefit amounts less the sum of amounts applied to previous quarters during the year, equating to tax rates of 21.0%, 25.0%, and 19.7% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
    2. Annualized measure.
     
    Further Adjusted Net Income and Further Adjusted Diluted Earnings Per Share
    (dollars in thousands, except per share amounts)
                         
        Three Months Ended   Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Adjusted net income1 [a] $ 33,533     $ 29,016     $ 30,730     $ 89,080     $ 96,889  
    Further non-GAAP adjustments:                    
    Net securities (gains) losses     (822 )     353       285       5,906       2,960  
    Realized net (gains) losses on the sale of mortgage servicing rights     18       (277 )           (7,724 )      
    Tax effect for further non-GAAP adjustments2     199       (19 )     (52 )     453       (585 )
    Tax effected further non-GAAP adjustments3     (605 )     57       233       (1,365 )     2,375  
    Further adjusted net income3 [b] $ 32,928     $ 29,073     $ 30,963     $ 87,715     $ 99,264  
    One-time deferred tax valuation adjustment4           1,446             1,446        
    Further adjusted net income, excluding one-time deferred tax valuation adjustment3 [c] $ 32,928     $ 30,519     $ 30,963     $ 89,161     $ 99,264  
                         
    Diluted average common shares outstanding [d]   57,967,848       57,853,231       56,315,492       57,411,299       56,230,624  
                         
    Adjusted: Diluted earnings per share [a÷d] $ 0.58     $ 0.50     $ 0.55     $ 1.55     $ 1.72  
    Further Adjusted: Diluted earnings per share3 [b÷d] $ 0.57     $ 0.50     $ 0.55     $ 1.53     $ 1.77  
    Further Adjusted, excluding one-time deferred tax valuation adjustment: Diluted earnings per share3 [c÷d] $ 0.57     $ 0.53     $ 0.55     $ 1.55     $ 1.77  

    ___________________________________________

    1. Adjusted net income is a non-GAAP measure. See the table on the previous page for a reconciliation to the nearest GAAP measure.
    2. Tax effects for further non-GAAP adjustments were calculated by multiplying further non-GAAP adjustments by the effective income tax rate for each period. For the nine months ended September 30, 2024, the rate that we used excluded a one-time deferred tax valuation adjustment resulting from a change in Illinois apportionment rate due to recently enacted regulations. Effective income tax rates that we used to calculate the tax effect were 24.8%, 25.0%, and 18.2% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively, and were 24.9% and 19.8% for the nine months ended September 30, 2024 and 2023, respectively.
    3. Tax-effected measure.
    4. An estimated one-time deferred tax valuation adjustment of $1.4 million resulted from a change to our Illinois apportionment rate due to recently enacted regulations.
     
    Adjusted Net Interest Income and Adjusted Net Interest Margin
    (dollars in thousands)
                         
        Three Months Ended   Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Net interest income   $ 82,541     $ 82,434     $ 77,791     $ 240,742     $ 242,318  
    Non-GAAP adjustments:                    
    Tax-equivalent adjustment1     396       402       553       1,247       1,672  
    Tax-equivalent net interest income     82,937       82,836       78,344       241,989       243,990  
    Purchase accounting accretion related to business combinations     (1,338 )     (812 )     (277 )     (2,354 )     (1,093 )
    Adjusted net interest income   $ 81,599     $ 82,024     $ 78,067     $ 239,635     $ 242,897  
                         
    Tax-equivalent net interest income, annualized [a] $ 329,945     $ 333,165     $ 310,821     $ 323,241     $ 326,214  
    Adjusted net interest income, annualized [b]   324,622       329,899       309,722       320,096       324,752  
    Average interest-earning assets [c]   10,936,611       10,993,907       11,118,167       10,976,660       11,142,780  
                         
    Reported: Net interest margin2 [a÷c]   3.02 %     3.03 %     2.80 %     2.94 %     2.93 %
    Adjusted: Net interest margin2 [b÷c]   2.97 %     3.00 %     2.79 %     2.92 %     2.91 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    2. Annualized measure.
     
    Adjusted Noninterest Income, Operating Revenue, Adjusted Noninterest Income to Operating Revenue, Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense,
    Adjusted Core Expense, Noninterest Expense Excluding Non-Operating Adjustments,
    Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio
    (dollars in thousands)
                         
        Three Months Ended   Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Net interest income [a] $ 82,541     $ 82,434     $ 77,791     $ 240,742     $ 242,318  
    Non-GAAP adjustments:                    
    Tax-equivalent adjustment1     396       402       553       1,247       1,672  
    Tax-equivalent net interest income [b]   82,937       82,836       78,344       241,989       243,990  
                         
    Total noninterest income     35,951       33,801       31,008       104,752       90,868  
    Non-GAAP adjustments:                    
    Net security (gains) losses     (822 )     353       285       5,906       2,960  
    Noninterest income excluding net securities gains and losses [c]   35,129       34,154       31,293       110,658       93,828  
    Further adjustments:                    
    Realized net (gains) losses on the sale of mortgage servicing rights     18       (277 )           (7,724 )      
    Adjusted noninterest income [d] $ 35,147     $ 33,877     $ 31,293     $ 102,934     $ 93,828  
                         
    Tax-equivalent revenue [e = b+c] $ 118,066     $ 116,990     $ 109,637     $ 352,647     $ 337,818  
    Adjusted tax-equivalent revenue [f = b+d]   118,084       116,713       109,637       344,923       337,818  
    Operating revenue [g = a+d]   117,688       116,311       109,084       343,676       336,146  
                         
    Adjusted noninterest income to operating revenue [d÷g]   29.86 %     29.13 %     28.69 %     29.95 %     27.91 %
                         
    Total noninterest expense   $ 75,926     $ 75,537     $ 70,945     $ 222,232     $ 210,553  
    Non-GAAP adjustments:                    
    Amortization of intangible assets [h]   (2,548 )     (2,629 )     (2,555 )     (7,586 )     (7,953 )
    Noninterest expense excluding amortization of intangible assets [i]   73,378       72,908       68,390       214,646       202,600  
    Non-operating adjustments:                    
    Salaries, wages, and employee benefits     (73 )     (1,137 )           (1,333 )      
    Data processing     (90 )     (344 )           (534 )      
    Professional fees, occupancy, furniture and fixtures, and other     (1,772 )     (731 )     (79 )     (2,688 )     (91 )
    Adjusted noninterest expense [j]   71,443       70,696       68,311       210,091       202,509  
    Provision for unfunded commitments     (407 )     369       (13 )     640       357  
    Amortization of New Markets Tax Credits                 (2,260 )           (6,740 )
    Adjusted core expense [k] $ 71,036     $ 71,065     $ 66,038     $ 210,731     $ 196,126  
                         
    Noninterest expense, excluding non-operating adjustments [j-h] $ 73,991     $ 73,325     $ 70,866     $ 217,677     $ 210,462  
                         
    Reported: Efficiency ratio [i÷e]   62.15 %     62.32 %     62.38 %     60.87 %     59.97 %
    Adjusted: Efficiency ratio [j÷f]   60.50 %     60.57 %     62.31 %     60.91 %     59.95 %
    Adjusted: Core efficiency ratio [k÷f]   60.16 %     60.89 %     60.23 %     61.10 %     58.06 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
     
    Tangible Book Value and Tangible Book Value Per Common Share
    (dollars in thousands, except per share amounts)
                 
        As of
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
    Total stockholders’ equity   $ 1,402,884     $ 1,333,810     $ 1,190,158  
    Non-GAAP adjustments:            
    Goodwill and other intangible assets, net     (368,249 )     (370,580 )     (356,343 )
    Tangible book value [a] $ 1,034,635     $ 963,230     $ 833,815  
                 
    Ending number of common shares outstanding [b]   56,872,241       56,746,937       55,342,017  
                 
    Tangible book value per common share [a÷b] $ 18.19     $ 16.97     $ 15.07  
     
    Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets
    (dollars in thousands)
                 
        As of
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
    Total assets   $ 11,986,839     $ 11,971,416     $ 12,258,250  
    Non-GAAP adjustments:            
    Goodwill and other intangible assets, net     (368,249 )     (370,580 )     (356,343 )
    Tax effect of other intangible assets1     7,178       7,687       7,354  
    Tangible assets2 [a] $ 11,625,768     $ 11,608,523     $ 11,909,261  
                 
    Total stockholders’ equity   $ 1,402,884     $ 1,333,810     $ 1,190,158  
    Non-GAAP adjustments:            
    Goodwill and other intangible assets, net     (368,249 )     (370,580 )     (356,343 )
    Tax effect of other intangible assets1     7,178       7,687       7,354  
    Tangible common equity2 [b] $ 1,041,813     $ 970,917     $ 841,169  
                 
    Tangible common equity to tangible assets2 [b÷a]   8.96 %     8.36 %     7.06 %

    ___________________________________________

    1. Net of estimated deferred tax liability, calculated using the estimated statutory tax rate of 28%.
    2. Tax-effected measure.
     
    Core Deposits, Core Deposits to Total Deposits, and Portfolio Loans to Core Deposits
    (dollars in thousands)
                 
        As of
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
    Portfolio loans [a] $ 7,809,097     $ 7,998,912     $ 7,856,160  
                 
    Total deposits [b] $ 9,943,241     $ 9,976,135     $ 10,332,362  
    Non-GAAP adjustments:            
    Brokered deposits, excluding brokered time deposits of $250,000 or more     (13,089 )     (43,089 )     (6,055 )
    Time deposits of $250,000 or more     (338,808 )     (314,461 )     (350,276 )
    Core deposits [c] $ 9,591,344     $ 9,618,585     $ 9,976,031  
                 
    RATIOS            
    Core deposits to total deposits [c÷b]   96.46 %     96.42 %     96.55 %
    Portfolio loans to core deposits [a÷c]   81.42 %     83.16 %     78.75 %
                             

    FORWARD-LOOKING STATEMENTS

    This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

    A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) risks related to the proposed transaction with CrossFirst, including (i) the possibility that the proposed transaction will not close when expected or at all because required regulatory, stockholder, or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that required regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); (ii) the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Busey and CrossFirst do business; (iii) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (iv) diversion of management’s attention from ongoing business operations and opportunities; (v) the possibility that Busey may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all, and to successfully integrate CrossFirst’s operations with those of Busey or that such integration may be more difficult, time consuming or costly than expected; (vi) revenues following the proposed transaction may be lower than expected; and (vii) shareholder litigation that could prevent or delay the closing of the proposed transaction or otherwise negatively impact our business and operations; (2) the strength of the local, state, national, and international economy (including effects of inflationary pressures and supply chain constraints); (3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (4) changes in state and federal laws, regulations, and governmental policies concerning Busey’s general business (including changes in response to the failures of other banks or as a result of the upcoming 2024 presidential election); (5) changes in accounting policies and practices; (6) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (7) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (8) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (9) the loss of key executives or associates; (10) changes in consumer spending; (11) unexpected results of other transactions (including the acquisition of M&M); (12) unexpected outcomes of existing or new litigation, investigations, or inquiries involving Busey (including with respect to Busey’s Illinois franchise taxes); (13) fluctuations in the value of securities held in Busey’s securities portfolio; (14) concentrations within Busey’s loan portfolio (including commercial real estate loans), large loans to certain borrowers, and large deposits from certain clients; (15) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (16) the level of non-performing assets on Busey’s balance sheets; (17) interruptions involving information technology and communications systems or third-party servicers; (18) breaches or failures of information security controls or cybersecurity-related incidents; and (19) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

    Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

    ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT

    Busey has filed a registration statement on Form S‑4 with the SEC to register the shares of Busey’s common stock that will be issued to CrossFirst stockholders in connection with the proposed transaction. The registration statement includes a preliminary joint proxy statement of Busey and CrossFirst, which also constitutes a prospectus of Busey. The definitive joint proxy statement/prospectus will be sent to the stockholders of each of Busey and CrossFirst seeking certain approvals related to the proposed transaction. INVESTORS AND SECURITY HOLDERS OF BUSEY AND CROSSFIRST AND THEIR RESPECTIVE AFFILIATES ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S‑4 AND THE JOINT PROXY STATEMENT/PROSPECTUS TO BE INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S‑4 WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BUSEY, CROSSFIRST, AND THE PROPOSED TRANSACTION. Investors and security holders may obtain a free copies of these documents, as well as other relevant documents filed with the SEC containing information about Busey and CrossFirst, without charge, at the SEC’s website (http://www.sec.gov). Copies of documents filed with the SEC by Busey will be made available free of charge in the “SEC Filings” section of Busey’s website, https://ir.busey.com. Copies of documents filed with the SEC by CrossFirst will be made available free of charge in the “Investor Relations” section of CrossFirst’s website, https://investors.crossfirstbankshares.com.

    PARTICIPANTS IN SOLICITATION

    Busey, CrossFirst, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction under the rules of the SEC. Information regarding Busey’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on April 12, 2024, and certain other documents filed by Busey with the SEC. Information regarding CrossFirst’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on March 26, 2024, and certain other documents filed by CrossFirst with the SEC. Other information regarding the participants in the solicitation of proxies in respect of the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC when they become available. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

    END NOTES

    1 Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see Non-GAAP Financial Information.”
    2 Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250 thousand FDIC insurance limit, less intercompany accounts and collateralized accounts (including preferred deposits).
    3 Central Business District areas within Busey’s footprint include downtown St. Louis, downtown Indianapolis, and downtown Chicago.
    4 Capital amounts and ratios for the third quarter of 2024 are not yet finalized and are subject to change.
    5 On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
    6 The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.

    The MIL Network

  • MIL-OSI: Helium Evolution Announces Partner to Drill Joint Well

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 22, 2024 (GLOBE NEWSWIRE) — Helium Evolution Incorporated (TSXV:HEVI) (“HEVI” or the “Company“), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, is pleased to announce that its partner, North American Helium Inc. (“NAH”), has served the Company notice of its intention to drill a joint well in the Mankota area. This initiative is part of the previously announced development plan for up to nine wells in the Mankota area, as disclosed on April 2, 2024.

    The joint well is expected to spud before the end of October 2024 and is located at 7-2-4-9W3M (the “7-2 Well”). HEVI is pleased to confirm its participation in the drilling of the 7-2 Well, with the Company holding a 20% working interest. The estimated total cost for HEVI’s share in the 7-2 Well is approximately $0.4 million net and is supported by HEVI’s strong working capital position, which totaled $4.7 million as of June 30, 2024.

    “We are excited to announce the upcoming drilling of a joint well in the Mankota area, a significant step in our strategic development plan,” said Greg Robb, President and CEO of HEVI. “Our partnership with NAH underscores our commitment to harnessing the potential of helium resources in southern Saskatchewan. With our solid financial foundation and collaborative approach, we are poised to make meaningful advancements in our exploration efforts, ultimately contributing to the growth of the helium industry in Canada.”

    Stay Connected to Helium Evolution

    Shareholders and other parties interested in learning more about the Helium Evolution opportunity are encouraged to visit the Company’s website, which includes an updated corporate presentation, and are invited to follow the Company on LinkedIn and X for ongoing corporate updates and helium industry information. Helium Evolution also provides an extensive, commissioned ‘deep-dive’ research report prepared by a third party whose background includes serving as a research analyst for several bank-owned and independent investment dealers. In addition to recent media articles, HEVI maintains a profile on the Investing News Network platform, where further information, editorial pieces and industry reviews are available.

    About Helium Evolution Incorporated

    Helium Evolution is a Canadian-based helium exploration company holding the largest helium land rights position in North America among publicly-traded companies, focused on developing assets in southern Saskatchewan. The Company has over five million acres of land under permit near proven discoveries of economic helium concentrations which will support scaling the exploration and development efforts across its land base. HEVI’s management and board are executing a differentiated strategy to become a leading supplier of sustainably-produced helium for the growing global helium market.

    For further information, please contact:

    Statement Regarding Forward-Looking Information

    This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.

    Forward-looking statements in this document include statements regarding the anticipated spud date of the 7-2 Well, the cost to drill the 7-2 Well, the anticipated nine well drilling program, the Company’s expectations regarding the Company becoming a leading supplier of sustainably-produced helium, the Company’s strong working capital position, the Company’s beliefs regarding growth of the global helium market and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: NAH may be unsuccessful in drilling commercially productive wells; drill costs may be higher or lower than estimates; NAH may defer, abandon or accelerate the drilling of the 7-2 Well and the nine well drill program; new laws or regulations and/or unforeseen events could adversely affect the Company’s business and results of operations; stock markets have experienced volatility that often has been unrelated to the performance of companies and such volatility may adversely affect the price of the Company’s securities regardless of its operating performance; risks generally associated with the exploration for and production of resources; the uncertainty of estimates and projections relating to expenses and the Company’s working capital position; constraint in the availability of services; commodity price and exchange rate fluctuations; adverse weather or break-up conditions; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

    When relying on forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraphs will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    The MIL Network

  • MIL-OSI: Baker Hughes Company Announces Third-Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

     Third-quarter highlights

    • Orders of $6.7 billion, including $2.9 billion of IET orders.
    • RPO of $33.4 billion, including record IET RPO of $30.2 billion.
    • Revenue of $6.9 billion, up 4% year-over-year.
    • Attributable net income of $766 million.
    • GAAP diluted EPS of $0.77 and adjusted diluted EPS* of $0.67.
    • Adjusted EBITDA* of $1,208 million, up 23% year-over-year.
    • Cash flows from operating activities of $1,010 million and free cash flow* of $754 million.
    • Returns to shareholders of $361 million, including $152 million of share repurchases.

    HOUSTON and LONDON, Oct. 22, 2024 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the third quarter of 2024.

    “We delivered another quarter of record EBITDA, highlighted by exceptional operational performance across both segments. Our margins continue to improve at an accelerated pace, with total company EBITDA margins increasing to 17.5%. This marks the highest margin quarter since the company was formed. On the back of our solid third-quarter results and stable outlook, we remain confident in achieving our full-year EBITDA guidance midpoint,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

    “Orders remain at solid levels, with IET orders of $2.9 billion marking the eighth consecutive quarter at or above these levels. IET continued to demonstrate strong order momentum for gas infrastructure and FPSOs, booking the largest ever ICL compressor award from Dubai Petroleum Establishment for the Margham Gas storage facility and two FPSO awards with separate offshore operators.”

    “Overall, our segments continue to make strong progress on their journey toward 20% EBITDA margins, with both segments achieving high-teen margins during the quarter. Our operational discipline and rigor continue to gain traction.”

    “We are also benefiting from the life-cycle attributes of our service offerings and the breadth of our portfolio. With significant recurring IET service revenue, strong production-levered businesses, untapped market opportunities, and improved cost structure, we are becoming less cyclical and capable of generating more durable earnings and free cash flow across cycles.”

    “We are successfully executing our strategy, and this is a testament to the strength of our people and the culture we are building,” concluded Simonelli.

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

      Three Months Ended   Variance
    (in millions except per share amounts) September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    Orders $ 6,676 $ 7,526 $ 8,512   (11%)   (22%)  
    Revenue   6,908   7,139   6,641   (3%)   4%  
    Net income attributable to Baker Hughes   766   579   518   32%   48%  
    Adjusted net income attributable to Baker Hughes*   666   568   427   17%   56%  
    Operating income   930   833   714   12%   30%  
    Adjusted operating income*   930   847   716   10%   30%  
    Adjusted EBITDA*   1,208   1,130   983   7%   23%  
    Diluted earnings per share (EPS)   0.77   0.58   0.51   33%   51%  
    Adjusted diluted EPS*   0.67   0.57   0.42   18%   59%  
    Cash flow from operating activities   1,010   348   811   F   25%  
    Free cash flow*   754   106   592   F   27%  

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    “F” is used when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

    Quarter Highlights

    Industrial & Energy Technology (“IET”) experienced a strong quarter for its Integrated Compressor Line (“ICL”) technology. In its largest ICL award to-date, and booked under Climate Technology Solutions (“CTS”), Baker Hughes will supply 10 units to Dubai Petroleum Establishment for the Margham Gas storage facility. These ICL units will support gas infrastructure, providing stability to Dubai’s energy supply by strengthening the system’s ability to switch between natural gas and solar power.

    IET’s Gas Technology Equipment (“GTE”) was also awarded a significant contract to supply advanced compression solutions to Saipem for TotalEnergies’ all-electric Kaminho Floating Production Storage and Offloading (“FPSO”) project in Angola. Baker Hughes’ centrifugal BCL compressor and ICL technology were selected because of the capability to minimize greenhouse emissions and eliminate routine flaring by reinjecting associated gas into the reservoir for storage. Separately, IET was selected to provide electric motor-driven process compressors for an FPSO project in Latin America.

    IET’s Gas Technology Services (“GTS”) secured a multi-decade agreement for an LNG facility in the Middle East. The scope encompasses extensive maintenance services and digital solutions, leveraging Baker Hughes’ iCenter™ Remote Monitoring and Diagnostics capabilities.

    Oilfield Services & Equipment (“OFSE”) strengthened the Company’s relationship with Petrobras, receiving contracts to supply 43 miles of flexible pipe systems in Brazil’s Santos Basin. A significant portion of these risers and flowlines will be manufactured in-country at Baker Hughes’ Niteroi plant. The contracts, awarded through an open tender, include multi-year service agreements to support maintenance activities through the life of the project and demonstrate Baker Hughes’ dedication to providing equipment and services critical to help Petrobras achieve its strategic plan to expand operations.

    In OFSE, mature assets solutions (“MAS”) delivered a strong order quarter, illustrating confidence in the Company’s full range of workflows and solutions to accelerate production and total recovery. OFSE won a MAS award to supply Santos Energy’s strategic and historic Cooper Basin Development in Australia with drilling fluids and wireline services, marking Baker Hughes’ return to the basin. Additionally, OFSE signed a multi-year contract extension with a customer in the Middle East for completions and well intervention.

    Baker Hughes saw increased adoption of Leucipa™, the Company’s intelligent automated field production digital solution. A major global operator expanded the use of Leucipa across multiple fields in the Permian Basin, enabling the customer to optimize production through real-time field orchestration to generate lower-carbon, short-cycle barrels. Additionally, a new strategic collaboration was established early in the fourth quarter with Repsol, a major customer of Leucipa, to develop and deploy next-generation artificial intelligence capabilities for this digital solution. The companies will share knowledge and expertise to optimize and enhance production across Repsol’s global portfolio while creating new commercial opportunities for Baker Hughes.

    Baker Hughes continues to innovate new digital technologies to support customers on their decarbonization journey. The Company launched CarbonEdge™, powered by Cordant™, an end-to-end, risk-based digital solution that delivers precise, real-time data and alerts on carbon dioxide (CO2) flows across CCUS infrastructure from subsurface to surface. This solution enables operators to mitigate risk, improve decision-making, enhance operational efficiency, and simplify regulatory reporting across the entire project lifecycle.

    Consolidated Revenue and Operating Income by Reporting Segment

    (in millions) Three Months Ended   Variance
      September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    Oilfield Services & Equipment $ 3,963   $ 4,011   $ 3,951     (1%)   —%  
    Industrial & Energy Technology   2,945     3,128     2,691     (6%)   9%  
    Segment revenue   6,908     7,139     6,641     (3%)   4%  
                 
    Oilfield Services & Equipment   547     493     465     11%   18%  
    Industrial & Energy Technology   474     442     346     7%   37%  
    Corporate(1)   (91 )   (88 )   (95 )   (3%)   4%  
    Restructuring, impairment & other       (14 )   (2 )   F   F  
    Operating income   930     833     714     12%   30%  
    Adjusted operating income*   930     847     716     10%   30%  
    Depreciation & amortization   278     283     267     (2%)   4%  
    Adjusted EBITDA* $ 1,208   $ 1,130   $ 983     7%   23%  

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    “F” is used when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    (1)   Corporate costs are primarily reported in “Selling, general and administrative” in the condensed consolidated statements of income (loss).

    Revenue for the quarter was $6,908 million, a decrease of 3% sequentially and an increase of 4% year-over-year. The increase in revenue year-over-year was driven by IET.

    The Company’s total book-to-bill ratio in the quarter was 1.0; the IET book-to-bill ratio in the quarter was also 1.0.

    Operating income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), for the third quarter of 2024 was $930 million. Operating income increased $97 million sequentially and increased $216 million year-over-year.

    Adjusted operating income (a non-GAAP financial measure) for the third quarter of 2024 was $930 million. There were no adjustments to operating income in the third quarter. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted operating income for the third quarter of 2024 was up 10% sequentially and up 30% year-over-year.

    Depreciation and amortization for the third quarter of 2024 was $278 million.

    Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2024 was $1,208 million. There were no adjustments to EBITDA in the third quarter. See Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the third quarter was up 7% sequentially and up 23% year-over-year.

    The sequential increase in adjusted operating income and adjusted EBITDA was driven by higher pricing in both segments and structural cost-out initiatives, partially offset by lower volume in both segments. The year-over-year increase in adjusted operating income and adjusted EBITDA was driven by higher pricing in both segments, higher volume in IET, and structural cost-out initiatives, partially offset by cost inflation in IET and unfavorable business mix in both segments.

    Other Financial Items

    Remaining Performance Obligations (“RPO”) in the third quarter ended at $33.4 billion, a decrease of $0.1 billion from the second quarter of 2024. OFSE RPO was $3.2 billion, down 5% sequentially, while IET RPO was $30.2 billion, up $44 million sequentially. Within IET RPO, GTE RPO was $11.9 billion and GTS RPO was $14.8 billion.

    Income tax expense in the third quarter of 2024 was $235 million.

    Other non-operating income in the third quarter of 2024 was $134 million. Included in other non-operating income were net mark-to-market gains in fair value for certain equity investments of $99 million.

    GAAP diluted earnings per share was $0.77. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.67. Excluded from adjusted diluted earnings per share were all items listed in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Cash flow from operating activities was $1,010 million for the third quarter of 2024. Free cash flow (a non-GAAP financial measure) for the quarter was $754 million. A reconciliation from GAAP has been provided in Table 1d in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Capital expenditures, net of proceeds from disposal of assets, were $256 million for the third quarter of 2024, of which $182 million for OFSE and $62 million for IET.

    Results by Reporting Segment
     

    The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

    Oilfield Services & Equipment

    (in millions) Three Months Ended   Variance
    Segment results September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    Orders $ 3,807   $ 4,068   $ 4,178     (6%)   (9%)  
    Revenue $ 3,963   $ 4,011   $ 3,951     (1%)   —%  
    Operating income $ 547   $ 493   $ 465     11%   18%  
    Operating margin   13.8 %   12.3 %   11.8 %   1.5pts   2pts  
    Depreciation & amortization $ 218   $ 223   $ 206     (2%)   6%  
    EBITDA* $ 765   $ 716   $ 670     7%   14%  
    EBITDA margin*   19.3 %   17.8 %   17.0 %   1.5pts   2.3pts  
    (in millions) Three Months Ended   Variance
    Revenue by Product Line September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    Well Construction $ 1,050 $ 1,090 $ 1,128   (4%)   (7%)  
    Completions, Intervention & Measurements   1,009   1,118   1,085   (10%)   (7%)  
    Production Solutions   983   958   967   3%   2%  
    Subsea & Surface Pressure Systems   921   845   770   9%   20%  
    Total Revenue $ 3,963 $ 4,011 $ 3,951   (1%)   —%  
    (in millions) Three Months Ended   Variance
    Revenue by Geographic Region September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    North America $ 971 $ 1,023 $ 1,064   (5%)   (9%)  
    Latin America   648   663   695   (2%)   (7%)  
    Europe/CIS/Sub-Saharan Africa   933   827   695   13%   34%  
    Middle East/Asia   1,411   1,498   1,497   (6%)   (6%)  
    Total Revenue $ 3,963 $ 4,011 $ 3,951   (1%)   —%  
                 
    North America $ 971 $ 1,023 $ 1,064   (5%)   (9%)  
    International   2,992   2,988   2,887   —%   4%  

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” EBITDA margin is defined as EBITDA divided by revenue.

    OFSE orders of $3,807 million for the third quarter decreased by $261 million sequentially. Subsea and Surface Pressure Systems orders were $776 million, down 13% sequentially, and down 23% year-over-year.

    OFSE revenue of $3,963 million for the third quarter was down 1% sequentially, and up $12 million year-over-year.

    North America revenue was $971 million, down 5% sequentially. International revenue was $2,992 million, an increase of $4 million sequentially, driven by growth in Europe/CIS/Sub-Saharan Africa regions partially offset by decline in Middle East/Asia.

    Segment operating income for the third quarter was $547 million, an increase of $54 million, or 11%, sequentially. Segment EBITDA for the third quarter was $765 million, an increase of $49 million, or 7% sequentially. The sequential increase in segment operating income and EBITDA was driven by positive price and productivity, partially offset by pressure from negative business mix and lower volume.

    Industrial & Energy Technology

    (in millions) Three Months Ended   Variance
    Segment results September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    Orders $ 2,868   $ 3,458   $ 4,334     (17%)   (34%)  
    Revenue $ 2,945   $ 3,128   $ 2,691     (6%)   9%  
    Operating income $ 474   $ 442   $ 346     7%   37%  
    Operating margin   16.1 %   14.1 %   12.9 %   2pts   3.2pts  
    Depreciation & amortization $ 54   $ 55   $ 57     (2%)   (6%)  
    EBITDA* $ 528   $ 497   $ 403     6%   31%  
    EBITDA margin*   17.9 %   15.9 %   15.0 %   2pts   2.9pts  
    (in millions) Three Months Ended   Variance
    Orders by Product Line September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    Gas Technology Equipment $ 1,088 $ 1,493 $ 2,813   (27%)   (61%)  
    Gas Technology Services   778   769   724   1%   7%  
    Total Gas Technology   1,866   2,261   3,537   (17%)   (47%)  
    Industrial Products   494   524   477   (6%)   4%  
    Industrial Solutions   293   281   271   4%   8%  
    Total Industrial Technology   787   805   748   (2%)   5%  
    Climate Technology Solutions   215   392   49   (45%)   F  
    Total Orders $ 2,868 $ 3,458 $ 4,334   (17%)   (34%)  
    (in millions) Three Months Ended   Variance
    Revenue by Product Line September 30,
    2024
    June 30,
    2024
    September 30,
    2023
      Sequential Year-over-year
    Gas Technology Equipment $ 1,281 $ 1,539 $ 1,227   (17%)   4%  
    Gas Technology Services   697   691   637   1%   9%  
    Total Gas Technology   1,978   2,230   1,865   (11%)   6%  
    Industrial Products   520   509   520   2%   —%  
    Industrial Solutions   257   262   243   (2%)   6%  
    Total Industrial Technology   777   770   763   1%   2%  
    Climate Technology Solutions   191   128   63   49%   F  
    Total Revenue $ 2,945 $ 3,128 $ 2,691   (6%)   9%  

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” EBITDA margin is defined as EBITDA divided by revenue.

    “F” is used when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    IET orders of $2,868 million for the third quarter decreased by $1,465 million, or 34% year-over-year. The decrease was driven primarily by GTE orders which were down $1,725 million or 61% year-over-year.

    IET revenue of $2,945 million for the quarter increased $254 million, or 9% year-over-year. The increase was driven primarily by Climate Technology Solutions, up favorably year-over-year, and by Gas Technology, up 6% year-over-year.

    Segment operating income for the quarter was $474 million, up 37% year-over-year. Segment EBITDA for the quarter was $528 million, up $125 million, or 31% year-over-year. The year-over-year increase in segment operating income and EBITDA was primarily driven by higher volume, pricing and productivity, partially offset by cost inflation.

    Reconciliation of GAAP to non-GAAP Financial Measures
     

    Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted operating income; EBITDA; EBITDA margin; adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

    Table 1a. Reconciliation of GAAP and Adjusted Operating Income

      Three Months Ended
    (in millions) September 30,
    2024
    June 30,
    2024
    September 30,
    2023
    Operating income (GAAP) $ 930 $ 833 $ 714
    Restructuring, impairment & other     14   2
    Total operating income adjustments     14   2
    Adjusted operating income (non-GAAP) $ 930 $ 847 $ 716

    Table 1a reconciles operating income, which is the directly comparable financial result determined in accordance with GAAP, to adjusted operating income. Adjusted operating income excludes the impact of certain identified items.

    Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to EBITDA and Adjusted EBITDA

      Three Months Ended
    (in millions) September 30,
    2024
    June 30,
    2024
    September 30,
    2023
    Net income attributable to Baker Hughes (GAAP) $ 766   $ 579   $ 518  
    Net income attributable to noncontrolling interests   8     2     6  
    Provision for income taxes   235     243     235  
    Interest expense, net   55     47     49  
    Other non-operating income, net   (134 )   (38 )   (94 )
    Operating income (GAAP)   930     833     714  
           
    Depreciation & amortization   278     283     267  
    EBITDA (non-GAAP)   1,208     1,116     981  
    Total operating income adjustments(1)       14     2  
    Adjusted EBITDA (non-GAAP) $ 1,208   $ 1,130   $ 983  

    (1)   See Table 1a for the identified adjustments to operating income.

    Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to EBITDA. Adjusted EBITDA excludes the impact of certain identified items.

    Table 1c. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

      Three Months Ended
    (in millions, except per share amounts) September 30,
    2024
    June 30,
    2024
    September 30,
    2023
    Net income attributable to Baker Hughes (GAAP) $ 766   $ 579   $ 518  
    Total operating income adjustments(1)       14     2  
    Other adjustments (non-operating)(2)   (99 )   (19 )   (95 )
    Tax adjustments(3)   (1 )   (6 )   2  
    Total adjustments, net of income tax   (100 )   (11 )   (91 )
    Less: adjustments attributable to noncontrolling interests            
    Adjustments attributable to Baker Hughes   (100 )   (11 )   (91 )
    Adjusted net income attributable to Baker Hughes (non-GAAP) $ 666   $ 568   $ 427  
           
           
    Denominator:      
    Weighted-average shares of Class A common stock outstanding diluted   999     1,001     1,017  
    Adjusted earnings per share – diluted (non-GAAP) $ 0.67   $ 0.57   $ 0.42  

    (1)   See Table 1a for the identified adjustments to operating income.

    (2)   All periods primarily reflect the net gain or loss on changes in fair value for certain equity investments.

    (3)   All periods reflect the tax associated with the other operating and non-operating adjustments.

    Table 1c reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

    Table 1d. Reconciliation of Net Cash Flows From Operating Activities to Free Cash Flow

      Three Months Ended
    (in millions) September 30,
    2024
    June 30,
    2024
    September 30,
    2023
    Net cash flows from operating activities (GAAP) $ 1,010   $ 348   $ 811  
    Add: cash used for capital expenditures, net of proceeds from disposal of assets   (256 )   (242 )   (219 )
    Free cash flow (non-GAAP) $ 754   $ 106   $ 592  

    Table 1d reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.

    Financial Tables (GAAP)
     
    Condensed Consolidated Statements of Income (Loss)
     
    (Unaudited)
      Three Months Ended
    September 30,
    Nine Months Ended
    September 30,
    (In millions, except per share amounts)   2024     2023     2024     2023  
    Revenue $ 6,908   $ 6,641   $ 20,465   $ 18,671  
    Costs and expenses:        
    Cost of revenue   5,366     5,298     16,155     14,867  
    Selling, general and administrative   612     627     1,873     1,977  
    Restructuring, impairment and other       2     21     161  
    Total costs and expenses   5,978     5,927     18,049     17,005  
    Operating income   930     714     2,416     1,666  
    Other non-operating income, net   134     94     200     638  
    Interest expense, net   (55 )   (49 )   (143 )   (171 )
    Income before income taxes   1,009     759     2,473     2,133  
    Provision for income taxes   (235 )   (235 )   (656 )   (614 )
    Net income   774     524     1,817     1,519  
    Less: Net income attributable to noncontrolling interests   8     6     17     16  
    Net income attributable to Baker Hughes Company $ 766   $ 518   $ 1,800   $ 1,503  
             
    Per share amounts:      
    Basic income per Class A common stock $ 0.77   $ 0.51   $ 1.81   $ 1.49  
    Diluted income per Class A common stock $ 0.77   $ 0.51   $ 1.80   $ 1.48  
             
    Weighted average shares:        
    Class A basic   993     1,009     996     1,010  
    Class A diluted   999     1,017     1,001     1,016  
             
    Cash dividend per Class A common stock $ 0.21   $ 0.20   $ 0.63   $ 0.58  
             
    Condensed Consolidated Statements of Financial Position
     
    (Unaudited)
    (In millions) September 30,
    2024
    December 31,
    2023
    ASSETS
    Current Assets:    
    Cash and cash equivalents $ 2,664 $ 2,646
    Current receivables, net   6,920   7,075
    Inventories, net   5,254   5,094
    All other current assets   1,730   1,486
    Total current assets   16,568   16,301
    Property, plant and equipment, less accumulated depreciation   5,150   4,893
    Goodwill   6,167   6,137
    Other intangible assets, net   3,995   4,093
    Contract and other deferred assets   1,904   1,756
    All other assets   3,746   3,765
    Total assets $ 37,530 $ 36,945
    LIABILITIES AND EQUITY
    Current Liabilities:    
    Accounts payable $ 4,431 $ 4,471
    Short-term and current portion of long-term debt   52   148
    Progress collections and deferred income   5,685   5,542
    All other current liabilities   2,622   2,830
    Total current liabilities   12,790   12,991
    Long-term debt   5,984   5,872
    Liabilities for pensions and other postretirement benefits   991   978
    All other liabilities   1,422   1,585
    Equity   16,343   15,519
    Total liabilities and equity $ 37,530 $ 36,945
         
    Outstanding Baker Hughes Company shares:    
    Class A common stock   989   998
             
    Condensed Consolidated Statements of Cash Flows
     
    (Unaudited)
      Three Months
    Ended
    September 30,
    Nine Months Ended
    September 30,
    (In millions)   2024     2024     2023  
    Cash flows from operating activities:      
    Net income $ 774   $ 1,817   $ 1,519  
    Adjustments to reconcile net income to net cash flows from operating activities:      
    Depreciation and amortization   278     844     813  
    Stock-based compensation cost   53     154     148  
    Gain on equity securities   (99 )   (171 )   (639 )
    Provision for deferred income taxes   2     35     68  
    Other asset impairments           43  
    Working capital   (21 )   (57 )   19  
    Other operating items, net   23     (480 )   159  
    Net cash flows provided by operating activities   1,010     2,142     2,130  
    Cash flows from investing activities:      
    Expenditures for capital assets   (300 )   (925 )   (868 )
    Proceeds from disposal of assets   44     145     150  
    Proceeds from sale of equity securities       21     372  
    Proceeds from business dispositions           293  
    Net cash paid for acquisitions           (301 )
    Other investing items, net   (13 )   (40 )   (149 )
    Net cash flows used in investing activities   (269 )   (799 )   (503 )
    Cash flows from financing activities:      
    Repayment of long-term debt   (9 )   (134 )    
    Dividends paid   (209 )   (628 )   (586 )
    Repurchase of Class A common stock   (152 )   (476 )   (219 )
    Other financing items, net   6     (55 )   (56 )
    Net cash flows used in financing activities   (364 )   (1,293 )   (861 )
    Effect of currency exchange rate changes on cash and cash equivalents   3     (32 )   (53 )
    Increase in cash and cash equivalents   380     18     713  
    Cash and cash equivalents, beginning of period   2,284     2,646     2,488  
    Cash and cash equivalents, end of period $ 2,664   $ 2,664   $ 3,201  
    Supplemental cash flows disclosures:      
    Income taxes paid, net of refunds $ 397   $ 733   $ 463  
    Interest paid $ 49   $ 199   $ 205  
                       

    Supplemental Financial Information

    Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

    Conference Call and Webcast

    The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, October 23, 2024, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

    Forward-Looking Statements

    This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “forward-looking statement”). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target”, “goal” or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2023 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: http://www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: http://www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

    Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

    These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

    • Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
    • Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
    • Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
    • Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

    About Baker Hughes:

    Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com

    For more information, please contact:

    Investor Relations

    Chase Mulvehill
    +1 346-297-2561
    investor.relations@bakerhughes.com

    Media Relations

    Adrienne Lynch
    +1 713-906-8407
    adrienne.lynch@bakerhughes.com

    The MIL Network

  • MIL-OSI USA: Senate Advancing Forest Innovation in Georgia Study Committee to Hold Third Meeting

    Source: US State of Georgia

    ATLANTA (October 22, 2024) — On Tuesday, October 29th,2024, at 11:00 a.m., the Senate Advancing Forest Innovation in Georgia Study Committee, chaired by President Pro Tempore John F. Kennedy (R–Macon), will hold its third hearing.

    EVENT DETAILS:                      

    • Date: Tuesday, October 29, 2024
    • Time: 11:00 a.m.
    • Location: Delta Airlines Headquarters – 1030 Delta Blvd, Hapeville, GA 30354
    • This event is open to the public and will be live-streamed on the Georgia General Assembly website here. Please note that there is a link to RSVP to the meeting pursuant to Delta’s security policies. We ask that all guests and staff planning to attend fill out this attendance questionnaire and bring a Photo ID to the meeting.

    ABOUT THE MEETING:         

    The Senate Advancing Forest Innovation in Georgia Study Committee examines how public policy can encourage investment in facilities that create sustainable manufacturing components, practices, and energy derived from Georgia-grown products.

    MEDIA OPPORTUNITIES:

    We kindly request that members of the media confirm their attendance in advance by contacting Jantz Womack at SenatePressInquiries@senate.ga.gov

    # # # #

    Sen. John F. Kennedy serves as the President Pro Tempore of the Georgia State Senate. He represents the 18th Senate District which includes Upson, Monroe, Peach, Crawford, as well as portions of Bibb and Houston County. He may be reached at 404.656.6578 or by email at john.kennedy@senate.ga.gov.

    MIL OSI USA News

  • MIL-OSI New Zealand: Significant environmental offences deliver hefty fine for contractor

    Source: Auckland Council

    In a reserved decision handed down in the Auckland District Court last Friday (18 October), contractor Prameet Sharma was fined $144,500 and ordered $11,575 in reparations for extensive violations of the Resource Management Act (RMA), involving illegal earthworks and environmental contamination at his Drury property at Judge Richardson Drive, Drury.

    Sharma was convicted on three charges, including breaching an abatement notice, depositing contaminated fill, and conducting unauthorised earthworks exceeding legal limits.

    The fine is the largest handed down to an individual in recent years for breaches of the RMA.

    Serious environmental harm

    Judge Semple, referencing a report that found hazardous materials including asbestos, arsenic, and lead in the fill deposited by Sharma, described the environmental harm as significant and long-lasting, and the effects of the offending on the environment as serious.

    “Even once remediated, the site will remain a HAIL (Hazardous Activities and Industries List) site with ‘no build’ areas, which is a significant consequence of Mr Sharma’s actions.”

    The court heard that between 2015 and 2022, Sharma allowed illegal earthworks on his property, depositing over 33,900 cubic metres of contaminated fill, far exceeding the permitted consented limit of 5,000 cubic metres.

    The fill, which included asbestos and other harmful materials, was found to have travelled onto neighbouring properties, causing land instability and damaging ecosystems.

    Reckless and prolonged breach

    Judge Semple emphasised Sharma’s culpability, noting he ignored repeated warnings and enforcement actions from Auckland Council.

    “Mr. Sharma was alerted to issues with the volume and placement of fill as early as 2015.

    “Despite receiving abatement and infringement notices, Mr Sharma continued illegal activity. His disregard for the legal process and expert advice resulted in long-term environmental damage.”

    The judge rejected claims Sharma was merely trying to resolve issues arising from the council’s changing parameters.

    “I find limited evidence to support this assertion,” said Judge Semple. She noted Sharma refused to comply with council directives and acted with a high level of culpability. “Mr Sharma chose to continue undertaking earthworks in breach of his consent.”

    Public deterrence

    Auckland Council’s Team Leader Investigations David Pawson was happy with the outcome.

    “The court ruling marks a strong stance in upholding the integrity of environmental laws and sends a clear message to the public regarding the consequences of non-compliance.

    “The decision highlights the importance of holding an offender accountable to prevent similar violations in the future.”

    Failure to remediate

    The court ruled out a discharge without conviction, finding the seriousness of the offences and their ongoing impacts warranted a significant penalty.

    While the court acknowledged enforcement orders were issued to Sharma in 2024, Judge Semple noted no remediation had taken place despite these orders and refused to grant credit for remediation work, stating that returning the land to a compliant state is the bare minimum requirement.

    Final orders

    In addition to the $144,500 fine, Mr Sharma has been ordered to pay $11,575 in reparations to his neighbour, whose property was damaged due to the migration of contaminated fill.

    MIL OSI New Zealand News

  • MIL-OSI Video: AMGFC24 – Betazone: Keeping AI on Track

    Source: World Economic Forum (video statements)

    From bespoke gene editing to AI-powered healthcare, we are living in an age of breakthroughs propelled by advances in AI. What are the trade-offs societies and industries need to manage as AI adoption progresses?
    Speaker:

    Erik Brynjolfsson, Jerry Yang and Akiko Yamazaki Professor; Director, Digital Economy Lab, Stanford University
    Host:

    Zeina Soufan, Senior Anchor, Asharq News

    This is the full audio from a session at the Annual Meeting of the Global Future Councils 2024 in Dubai on 16, Oct, 2024. Watch it here: https://www.weforum.org/events/annual-meeting-of-the-global-future-councils-2024/sessions/keeping-ai-on-track/
    Links:

    Article based on this session: https://www.weforum.org/agenda/2024/10/ai-augment-rather-than-dictate-human-action/
    Related podcasts:

    Check out all our podcasts on wef.ch/podcasts (http://wef.ch/podcasts) :

    YouTube: (https://www.youtube.com/@wef/podcasts) – https://www.youtube.com/@wef/podcasts

    Radio Davos (https://www.weforum.org/podcasts/radio-davos) – subscribe (https://pod.link/1504682164) : https://pod.link/1504682164

    Meet the Leader (https://www.weforum.org/podcasts/meet-the-leader) – subscribe (https://pod.link/1534915560) : https://pod.link/1534915560

    Agenda Dialogues (https://www.weforum.org/podcasts/agenda-dialogues) – subscribe (https://pod.link/1574956552) : https://pod.link/1574956552

    Join the World Economic Forum Podcast Club (https://www.facebook.com/groups/wefpodcastclub) : https://www.facebook.com/groups/wefpodcastclub

    https://www.youtube.com/watch?v=p77BEVba_i4

    MIL OSI Video

  • MIL-OSI New Zealand: NZ joins UK initiative for AI safety

    Source: New Zealand Government

    The Government is joining the UK’s Bletchley Declaration on Artificial Intelligence (AI) Safety, Minister of Science, Innovation and Technology, and for Digitising Government Judith Collins says.

    “AI used responsibly can be a game changer for New Zealand, supporting productivity, innovation, and economic development,” Ms Collins says

    “The UK’s Bletchley Declaration is an important international agreement which affirms the potential that AI offers for society and for economies. To achieve this, AI must be designed, developed, deployed and used responsibly and safely, and in a manner that is people-focused and can be trusted. 

    “In May we signed the Seoul Ministerial Statement for Advancing AI Safety which, coupled with the Bletchley Declaration and Cabinet’s confirmed approach to AI being in accordance with the OECD’s AI Principles, solidifies our focus on the responsible use of AI.   

    “Important safety standards and pressure will be applied on the international stage, and New Zealand is proud to be part of global efforts towards responsible AI.” 

    The Ministry of Business, Innovation and Employment has developed an initial cross-portfolio which focuses on policy changes, while the Department of Internal Affairs’ Government Chief Digital Officer is leading work to support public sector agencies to explore safe use of AI for efficiency and service delivery improvements.  

    “The Government will next year consult publicly on a national AI strategy to encourage greater use of AI to deliver better results for New Zealanders,” Ms Collins says.

    “I am confident that all the work under way will form a coherent approach to AI in New Zealand – delivering greater productivity, innovation and growing New Zealand’s economy to benefit all New Zealanders,” Ms Collins says.

    MIL OSI New Zealand News

  • MIL-OSI Australia: NSW invites technology and AI solutions to improve planning assessments

    Source: New South Wales Premiere

    Published: 23 October 2024

    Released by: Minister for Planning and Public Spaces


    The Minns Labor Government is calling on the best and brightest in developing Artificial Intelligence (AI) and technology tools to improve the NSW Planning Portal and speed up assessment timeframes to deliver more homes, jobs and infrastructure.

    The NSW Planning Portal processes all the state’s Development Applications (DA) as well as Complying Development Certificates (CDC) and Concurrence and Referrals (C&R) for DAs that require state agency advice.

    The NSW Government has launched two Requests for Proposals (RFP) seeking innovative technology and AI solutions to integrate into the Planning Portal as a feature of the Next Generation NSW Planning Portal Ecosystem. The first RFP asks for:

    • Products to improve DA quality and assessment times that can be integrated into the existing Portal
    • Products or services that use AI to provide data analytics and spatial insights
    • Products to strengthen cybersecurity and improve user privacy including document security and certificate forgery

    A second tender seeking a range of technology enhancements to upgrade the core platform functionality of the NSW Planning Portal which include:

    • Making this legacy platform more efficient through upgrades to assessment and implementation planning
    • Seeking products that improve security through data processing and document migration and validation
    • Enhancements to the core platform, making it more reliable and improving the user experience

    These two RFPs follow the NSW Government’s $5.6 million investment to introduce AI into the planning system with 16 councils currently trialling AI solutions through the AI Early Adopter Grant.

    To provide a Request for Proposal for the NSW Planning Portal, applicants should respond by 3pm on Friday 1 November: NSW Planning Portal – Pega Upgrade – SR00252 | buy.nsw

    To provide a Request for Proposal for the Next Generation NSW Planning Portal ecosystem applicants should respond by 3pm on Monday 4 November: Next Generation NSW Planning Portal Ecosystem – SR00132 | buy.nsw

    Minister for Planning and Public Spaces Paul Scully said:

    “The NSW Planning Portal services millions of people, it should be utilising the best technological platforms available to us.

    “AI can assist planners to determine DAs much faster and that means faster assessments for housing across NSW.

    “We are also looking for solutions to improve the core technology of the Planning Portal to improve user experience.

    “The Minns Labor Government is bringing the planning system into the 21st century.

    “Our Early Adopter AI grant Program has already seen 16 councils commence technology trials to help their planners free up valuable time and energy to improve assessment times. This next round of technology enhancements will bring us even closer to the future of digital assessment in the planning system.”

    MIL OSI News

  • MIL-OSI: Andrew Cardno to Deliver Keynote at November Gaming Conference in Phoenix: “How are Technology Advancements Impacting Decision Making and Driving Innovation in Gaming?”

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Oct. 22, 2024 (GLOBE NEWSWIRE) — The gaming industry continues to evolve with the rapid integration of advanced technologies, offering new pathways for innovation and decision-making. Andrew Cardno, Chief Technology Officer of Quick Custom Intelligence (QCI), will deliver a keynote address titled “How are Technology Advancements Impacting Decision Making and Driving Innovation in Gaming?” at this year’s premier gaming conference, taking place on November 12th and 13th in Phoenix, Arizona.

    Cardno, a leading expert with over two decades of experience in gaming and technology, will explore how advancements such as artificial intelligence, machine learning, and data-driven solutions are reshaping decision-making processes within the gaming industry. His address will provide actionable insights for professionals seeking to stay ahead in this fast-paced environment.

    “Technology is no longer just an enabler; it’s the driving force behind innovation in gaming,” said Andrew Cardno. “At this year’s conference, I will delve into how these advancements can empower industry leaders to make better, faster decisions and capitalize on new opportunities for growth.”

    Mark Pace, President of the International Gaming Standards Association (IGSA), praised Cardno’s expertise: “Andrew Cardno has a deep understanding of how technology is transforming the gaming industry. His ability to translate complex innovations into practical, strategic insights makes him the ideal keynote speaker. His work continues to inspire and guide decision-makers across the gaming world.”

    The conference, held in Phoenix on November 12th and 13th, promises to be a hub of cutting-edge discussions and networking opportunities, bringing together top leaders to explore the future of gaming.

    ABOUT QCI
    Quick Custom Intelligence (QCI) has pioneered the revolutionary QCI AGI Platform, an artificial intelligence platform that seamlessly integrates player development, marketing, and gaming operations with powerful, real-time tools designed specifically for the gaming and hospitality industries. Our advanced, highly configurable software is deployed in over 250 casino resorts across North America, Australia, New Zealand, Canada, Latin America, and The Bahamas. The QCI AGI Platform, which manages more than $35 billion in annual gross gaming revenue, stands as a best-in-class solution, whether on-premises, hybrid, or cloud-based, enabling fully coordinated activities across all aspects of gaming or hospitality operations. QCI’s data-driven, AI-powered software propels swift, informed decision-making vital in the ever-changing casino industry, assisting casinos in optimizing resources and profits, crafting effective marketing campaigns, and enhancing customer loyalty. QCI was co-founded by Dr. Ralph Thomas and Mr. Andrew Cardno and is based in San Diego, with additional offices in Las Vegas, St. Louis, Denver, Dallas, and Tulsa. Main phone number: (858) 299.5715. Visit us at http://www.quickcustomintelligence.com.

    ABOUT Andrew Cardno
    Andrew Cardno is a distinguished figure in the realm of artificial intelligence and data plumbing. With over two decades spearheading private Ph.D. and master’s level research teams, his expertise has made significant waves in data tooling. Andrew’s innate ability to innovate has led him to devise numerous pioneering visualization methods. Of these, the most notable is the deep zoom image format, a groundbreaking innovation that has since become a cornerstone in the majority of today’s mapping tools. His leadership acumen has earned him two coveted Smithsonian Laureates, and teams under his mentorship have clinched 40 industry awards, including three pivotal gaming industry transformation awards. Together with Dr. Ralph Thomas, the duo co-founded Quick Custom Intelligence, amplifying their collaborative innovative capacities. A testament to his inventive prowess, Andrew boasts over 150 patent applications. Across various industries—be it telecommunications with Telstra Australia, retail with giants like Walmart and Best Buy, or the medical sector with esteemed institutions like City Of Hope and UCSD—Andrew’s impact is deeply felt. He has enriched the literature with insights, co-authoring eight influential books with Dr. Thomas and contributing to over 100 industry publications. An advocate for community and diversity, Andrew’s work has touched over 100 Native American Tribal Resorts, underscoring his expansive and inclusive professional endeavors.

    Contact:
    Laurel Kay, Quick Custom Intelligence
    Phone: 858-349-8354

    The MIL Network

  • MIL-OSI: Enterprise Bancorp, Inc. Announces Third Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LOWELL, Mass., Oct. 22, 2024 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended September 30, 2024. Net income amounted to $10.0 million, or $0.80 per diluted common share, for the three months ended September 30, 2024 compared to $9.5 million, or $0.77 per diluted common share, for the three months ended June 30, 2024 and $9.7 million, or $0.79 per diluted common share, for the three months ended September 30, 2023.

    Selected financial results at or for the quarter ended September 30, 2024 compared to June 30, 2024 were as follows:

    • The returns on average assets and average equity were 0.82% and 11.20%, respectively.
    • Tax-equivalent net interest margin (non-GAAP) (“net interest margin”) was 3.22%, an increase of 3 basis points.
    • Total loans amounted to $3.86 billion, an increase of 2.4%.
    • Total deposits amounted to $4.19 billion, a decrease of 1.4%.
    • Wealth assets under management and administration amounted to $1.51 billion, an increase of 8.5%.

    Chief Executive Officer Steven Larochelle commented, “Our team continued to deliver strong results in the third quarter. Loan growth was 2.4% for the quarter and 13.4% over the past twelve months. Customer deposits, which were down slightly during the quarter, have increased 5.3% in 2024 and 3.2% over the last twelve months. We continue to be primarily core funded and had no brokered deposits at September 30, 2024. Total borrowings were down $1.8 million compared to June 30, 2024, and amounted to only $59.9 million, or 1.3% of total assets. Higher deposit costs and the inverted yield curve continued to be a headwind, but net interest margin increased to 3.22% in the third quarter of 2024 from 3.19% in the prior quarter and benefited by 2 basis points from a large seasonal deposit.”

    Mr. Larochelle continued, “We remain committed to our long-term strategy of geographic expansion and customer acquisition through organic growth and investment in our team members, communities, products and technology. We are well positioned with a strong balance sheet, centered around a high-quality loan portfolio and favorable liquidity, core deposit funding and capital, paired with a conservative credit and reserve culture.”

    Executive Chairman & Founder George Duncan stated, “I would like to congratulate Steve, who completed his first quarter as CEO of Enterprise, and the whole team for a very successful quarter. I am particularly impressed that the team has been able to achieve such strong loan and deposit growth while stabilizing our net interest margin and without significant increases in wholesale funding. I firmly believe this is a testament to our relationship based, sales and service culture partnered with our strong commitment to community outreach and involvement.”

    Mr. Duncan added, “On September 5th, we were once again recognized at the Boston Business Journal’s Corporate Citizenship Summit for our significant contributions in employee volunteerism and corporate philanthropy. In particular, I am very proud that we ranked 2nd in the Commonwealth of Massachusetts for the highest average of volunteer hours per employee.”

    Net Interest Income
    Net interest income for the three months ended September 30, 2024, amounted to $38.0 million, a decrease of $482 thousand, or 1%, compared to the three months ended September 30, 2023. The decrease was due primarily to increases in deposit interest expense of $7.7 million and borrowings interest expense of $646 thousand and a decrease in income on other interest-earning assets of $971 thousand, partially offset by an increase in loan interest income of $9.3 million.

    The increase in interest expense during the period was attributed primarily to an increase in the cost of funds and changes in deposit mix, while the increase in interest income during the period was due primarily to loan growth and higher market interest rates.

    Net Interest Margin
    Net interest margin was 3.22% for the three months ended September 30, 2024, compared to 3.19% for the three months ended June 30, 2024 and 3.46% for the three months ended September 30, 2023.

    Asset yields for the third quarter of 2024 were 5.09%, an increase of 8 basis points compared to the second quarter of 2024, due primarily to new loan originations, loans repricing and an increase in the average balance of other interest-earning assets, which resulted mainly from deposit inflows during the period. Average total loans increased $105.3 million, or 3%, and average other interest-earning assets increased $57.6 million, or 46%, compared to the second quarter of 2024.

    The cost of funds for the third quarter of 2024 was 1.99%, an increase of 5 basis points compared to the second quarter of 2024. During the third quarter of 2024, average total deposits increased $128.8 million, or 3%, and the cost of deposits increased 6 basis points, compared to the second quarter of 2024. The increase in average total deposits was comprised of increases in average lower-cost checking account balances of $59.4 million, or 3%, which was driven primarily by a large seasonal deposit, and higher-cost savings, money market and certificate of deposit account balances of $69.4 million, or 3%.

    Provision for Credit Losses
    The provision for credit losses for the three-month periods ended September 30, 2024 and September 30, 2023 are presented below:

        Three months ended   Increase / (Decrease)
    (Dollars in thousands)   September 30,
    2024
      September 30,
    2023
    Provision for credit losses on loans – collectively evaluated   $ (663 )   $ (1,518 )   $ 855  
    Provision for credit losses on loans – individually evaluated     2,311       2,512       (201 )
    Provision for credit losses on loans     1,648       994       654  
                 
    Provision for unfunded commitments     (316 )     758       (1,074 )
                 
    Provision for credit losses   $ 1,332     $ 1,752     $ (420 )

    The increase in the provision for credit losses on loans of $654 thousand was due primarily to a net increase in reserves on individually evaluated loans. The increase in reserves on individually evaluated loans for the three months ended September 30, 2024 was driven by one individually evaluated commercial relationship which was downgraded, placed on non-accrual and assigned specific reserves of $3.4 million, partially offset by a reduction of $1.2 million in specific reserves resulting from a commercial relationship that experienced improvement in its collateral valuation during the period. The reduction in the provision for unfunded commitments of $1.1 million was driven primarily by a decrease in off-balance sheet commitments during the period.

    Non-Interest Income
    Non-interest income for the three months ended September 30, 2024, amounted to $6.1 million, an increase of $1.7 million compared to the three months ended September 30, 2023. The increase in non-interest income was due primarily to increases in gains on equity securities, wealth management fees and deposit and interchange fees.

    Non-Interest Expense
    Non-interest expense for the three months ended September 30, 2024, amounted to $29.4 million, an increase of $1.0 million, or 4%, compared to the three months ended September 30, 2023. The increase in non-interest expense was due primarily to an increase in salaries and employee benefits expense of $938 thousand, or 5%.

    Balance Sheet
    Total assets amounted to $4.74 billion at September 30, 2024, compared to $4.47 billion at December 31, 2023, an increase of 6%.

    Total investment securities at fair value amounted to $632.0 million at September 30, 2024, compared to $668.2 million at December 31, 2023. The decrease of 5% during the nine months ended September 30, 2024 was largely attributable to principal pay-downs, calls and maturities. Unrealized losses on debt securities amounted to $80.8 million at September 30, 2024, compared to $102.9 million at December 31, 2023, a decrease of 21% that resulted from lower term interest rates.

    Total loans amounted to $3.86 billion at September 30, 2024, compared to $3.57 billion at December 31, 2023. The increase of 8% during the nine months ended September 30, 2024 was due primarily to increases in commercial real estate and construction loans of $175.2 million and $89.3 million, respectively.

    Total deposits amounted to $4.19 billion at September 30, 2024, compared to $3.98 billion at December 31, 2023. The increase of 5% during the nine months ended September 30, 2024 was due primarily to increases in money market and certificate of deposit balances of $85.5 million and $153.6 million, respectively.

    Total borrowed funds amounted to $59.9 million at September 30, 2024, compared to $25.8 million at December 31, 2023. The increase during the nine months ended September 30, 2024 resulted from a term advance in the first quarter of 2024.

    Total shareholders’ equity amounted to $368.1 million at September 30, 2024, compared to $329.1 million at December 31, 2023. The increase of 12% during the nine months ended September 30, 2024 was due primarily to an increase in retained earnings of $19.1 million and a decrease in the accumulated other comprehensive loss of $17.1 million.

    Credit Quality
    Selected credit quality metrics at September 30, 2024, compared to December 31, 2023, were as follows:

    • The ACL for loans amounted to $63.7 million, or 1.65% of total loans, compared to $59.0 million, or 1.65% of total loans.
    • The reserve for unfunded commitments (included in other liabilities) amounted to $4.6 million, compared to $7.1 million.
    • Non-performing loans amounted to $25.9 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase in non-performing loans during the nine months ended September 30, 2024 resulted primarily from two individually evaluated commercial construction loans which were placed on non-accrual.

    Net recoveries amounted to $7 thousand for the three months ended September 30, 2024, compared to $12 thousand for the three months ended September 30, 2023.

    Wealth Management
    Wealth assets under management and administration, which are not carried as assets on the Company’s consolidated balance sheets, amounted to $1.51 billion at September 30, 2024, an increase of $194.9 million, or 15%, compared to December 31, 2023, and resulted primarily from an increase in market values.

    About Enterprise Bancorp, Inc.
    Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 140 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company’s headquarters and Enterprise Bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.

    Forward-Looking Statements
    This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures in our market areas and the United States; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

    ENTERPRISE BANCORP, INC.
    Consolidated Balance Sheets
    (unaudited)

    (Dollars in thousands, except per share data)   September 30,
    2024
      December 31,
    2023
      September 30,
    2023
    Assets            
    Cash and cash equivalents:            
    Cash and due from banks   $ 60,466     $ 37,443     $ 45,345  
    Interest-earning deposits with banks     28,166       19,149       180,076  
    Total cash and cash equivalents     88,632       56,592       225,421  
    Investments:            
    Debt securities at fair value (amortized cost of $703,311, $763,981 and $806,077, respectively)     622,527       661,113       672,894  
    Equity securities at fair value     9,448       7,058       6,038  
    Total investment securities at fair value     631,975       668,171       678,932  
    Federal Home Loan Bank stock     2,482       2,402       2,403  
    Loans held for sale     1,229       200        
    Loans:            
    Total loans     3,858,940       3,567,631       3,404,014  
    Allowance for credit losses     (63,654 )     (58,995 )     (57,905 )
    Net loans     3,795,286       3,508,636       3,346,109  
    Premises and equipment, net     43,291       44,931       43,391  
    Lease right-of-use asset     24,291       24,820       24,979  
    Accrued interest receivable     20,529       19,233       18,572  
    Deferred income taxes, net     44,067       49,166       55,080  
    Bank-owned life insurance     66,899       65,455       65,106  
    Prepaid income taxes     4,645       1,589       2,548  
    Prepaid expenses and other assets     13,827       19,183       14,177  
    Goodwill     5,656       5,656       5,656  
    Total assets   $ 4,742,809     $ 4,466,034     $ 4,482,374  
    Liabilities and ShareholdersEquity            
    Liabilities            
    Deposits   $ 4,189,461     $ 3,977,521     $ 4,060,403  
    Borrowed funds     59,949       25,768       4,290  
    Subordinated debt     59,736       59,498       59,419  
    Lease liability     24,010       24,441       24,589  
    Accrued expenses and other liabilities     32,116       45,011       31,288  
    Accrued interest payable     9,428       4,678       2,686  
    Total liabilities     4,374,700       4,136,917       4,182,675  
    Commitments and Contingencies            
    ShareholdersEquity            
    Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued                  
    Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,428,426, 12,272,674 and 12,256,964 shares issued and outstanding, respectively.     124       123       123  
    Additional paid-in capital     110,110       107,377       106,451  
    Retained earnings     320,497       301,380       296,291  
    Accumulated other comprehensive loss     (62,622 )     (79,763 )     (103,166 )
    Total shareholders’ equity     368,109       329,117       299,699  
    Total liabilities and shareholders’ equity   $ 4,742,809     $ 4,466,034     $ 4,482,374  

    ENTERPRISE BANCORP, INC.
    Consolidated Statements of Income
    (unaudited)

        Three months ended   Nine months ended
    (Dollars in thousands, except per share data)   September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Interest and dividend income:                    
    Other interest-earning assets   $         2,497             $         1,697           $         3,468             $         5,366             $         7,593          
    Investment securities             3,835                       3,943                     4,316                       11,812                       14,356          
    Loans and loans held for sale             53,809                       51,224                     44,501                       153,850                       125,855          
    Total interest and dividend income             60,141                       56,864                     52,285                       171,028                       147,804          
    Interest expense:                    
    Deposits             20,581                       19,172                     12,889                       57,025                       28,568          
    Borrowed funds             674                       664                     28                       2,032                       70          
    Subordinated debt             866                       867                     866                       2,600                       2,600          
    Total interest expense             22,121                       20,703                     13,783                       61,657                       31,238          
    Net interest income             38,020                       36,161                     38,502                       109,371                       116,566          
    Provision for credit losses             1,332                       137                     1,752                       2,091                       6,756          
    Net interest income after provision for credit losses             36,688                       36,024                     36,750                       107,280                       109,810          
    Non-interest income:                    
    Wealth management fees             2,025                       1,970                     1,673                       5,845                       4,933          
    Deposit and interchange fees             2,282                       2,284                     1,987                       6,635                       6,330          
    Income on bank-owned life insurance, net             518                       503                     327                       1,479                       950          
    Net losses on sales of debt securities             (2 )             —                     —                       (2 )             (2,419 )
    Net gains on sales of loans             57                       44                     14                       123                       34          
    Net gains (losses) on equity securities             604                       101                     (181 )             1,170                       (8 )
    Other income             656                       726                     666                       2,013                       2,242          
    Total non-interest income             6,140                       5,628                     4,486                       17,263                       12,062          
    Non-interest expense:                    
    Salaries and employee benefits             20,097                       19,675                     19,159                       58,948                       53,815          
    Occupancy and equipment expenses             2,438                       2,406                     2,433                       7,303                       7,439          
    Technology and telecommunications expenses             2,618                       2,658                     2,626                       8,021                       7,937          
    Advertising and public relations expenses             559                       674                     592                       1,976                       2,077          
    Audit, legal and other professional fees             569                       711                     735                       2,014                       2,157          
    Deposit insurance premiums             900                       862                     654                       2,621                       1,944          
    Supplies and postage expenses             261                       240                     251                       738                       753          
    Other operating expenses             1,911                       1,803                     1,862                       5,669                       5,853          
    Total non-interest expense             29,353                       29,029                     28,312                       87,290                       81,975          
    Income before income taxes             13,475                       12,623                     12,924                       37,253                       39,897          
    Provision for income taxes             3,488                       3,111                     3,225                       9,247                       9,746          
    Net income   $         9,987             $         9,512           $         9,699             $         28,006             $         30,151          
                         
    Basic earnings per common share   $         0.80             $         0.77           $         0.79             $         2.26             $         2.47          
    Diluted earnings per common share   $         0.80             $         0.77           $         0.79             $         2.26             $         2.46          
                         
    Basic weighted average common shares outstanding             12,428,543                       12,389,917                     12,247,892                       12,370,812                       12,210,740          
    Diluted weighted average common shares outstanding             12,438,160                       12,394,463                     12,264,778                       12,379,390                       12,233,861          

    ENTERPRISE BANCORP, INC.
    Selected Consolidated Financial Data and Ratios
    (unaudited)

        At or for the three months ended
    (Dollars in thousands, except per share data)   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Balance Sheet Data                    
    Total cash and cash equivalents   $ 88,632     $ 199,719     $ 147,834     $ 56,592     $ 225,421  
    Total investment securities at fair value     631,975       636,838       652,026       668,171       678,932  
    Total loans     3,858,940       3,768,649       3,654,322       3,567,631       3,404,014  
    Allowance for credit losses     (63,654 )     (61,999 )     (60,741 )     (58,995 )     (57,905 )
    Total assets     4,742,809       4,773,681       4,624,015       4,466,034       4,482,374  
    Total deposits     4,189,461       4,248,801       4,106,119       3,977,521       4,060,403  
    Borrowed funds     59,949       61,785       63,246       25,768       4,290  
    Subordinated debt     59,736       59,657       59,577       59,498       59,419  
    Total shareholders’ equity     368,109       340,441       333,439       329,117       299,699  
    Total liabilities and shareholders’ equity     4,742,809       4,773,681       4,624,015       4,466,034       4,482,374  
                         
    Wealth Management                    
    Wealth assets under management   $ 1,212,076     $ 1,129,147     $ 1,105,036     $ 1,077,761     $ 984,647  
    Wealth assets under administration   $ 302,891     $ 267,529     $ 268,074     $ 242,338     $ 211,046  
                         
    Shareholders’ Equity Ratios                    
    Book value per common share   $ 29.62     $ 27.40     $ 26.94     $ 26.82     $ 24.45  
    Dividends paid per common share   $ 0.24     $ 0.24     $ 0.24     $ 0.23     $ 0.23  
                         
    Regulatory Capital Ratios                    
    Total capital to risk weighted assets     13.07 %     13.07 %     13.20 %     13.12 %     13.45 %
    Tier 1 capital to risk weighted assets(1)     10.36 %     10.34 %     10.43 %     10.34 %     10.61 %
    Tier 1 capital to average assets     8.68 %     8.76 %     8.85 %     8.74 %     8.59 %
                         
    Credit Quality Data                    
    Non-performing loans   $ 25,946     $ 17,731     $ 18,527     $ 11,414     $ 11,656  
    Non-performing loans to total loans     0.67 %     0.47 %     0.51 %     0.32 %     0.34 %
    Non-performing assets to total assets     0.55 %     0.37 %     0.40 %     0.26 %     0.26 %
    ACL for loans to total loans     1.65 %     1.65 %     1.66 %     1.65 %     1.70 %
    Net (recoveries) charge-offs   $ (7 )   $ (130 )   $ 122     $ 15     $ (12 )
                         
    Income Statement Data                    
    Net interest income   $ 38,020     $ 36,161     $ 35,190     $ 36,518     $ 38,502  
    Provision for credit losses     1,332       137       622       2,493       1,752  
    Total non-interest income     6,140       5,628       5,495       5,547       4,486  
    Total non-interest expense     29,353       29,029       28,908       28,224       28,312  
    Income before income taxes     13,475       12,623       11,155       11,348       12,924  
    Provision for income taxes     3,488       3,111       2,648       3,441       3,225  
    Net income   $ 9,987     $ 9,512     $ 8,507     $ 7,907     $ 9,699  
                         
    Income Statement Ratios                    
    Diluted earnings per common share   $ 0.80     $ 0.77     $ 0.69     $ 0.64     $ 0.79  
    Return on average total assets     0.82 %     0.82 %     0.75 %     0.69 %     0.85 %
    Return on average shareholders’ equity     11.20 %     11.55 %     10.47 %     10.21 %     12.53 %
    Net interest margin (tax-equivalent)(2)     3.22 %     3.19 %     3.20 %     3.29 %     3.46 %

    (1)   Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.
    (2)   Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.

    ENTERPRISE BANCORP, INC.
    Consolidated Loan and Deposit Data
    (unaudited)

    Major classifications of loans at the dates indicated were as follows:

    (Dollars in thousands)   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Commercial real estate owner-occupied   $ 660,063     $ 660,478     $ 635,420     $ 619,302     $ 618,903  
    Commercial real estate non owner-occupied     1,579,827       1,544,386       1,524,174       1,445,435       1,413,555  
    Commercial and industrial     415,642       426,976       417,604       430,749       425,334  
    Commercial construction     674,434       622,094       583,711       585,113       501,179  
    Total commercial loans     3,329,966       3,253,934       3,160,909       3,080,599       2,958,971  
                         
    Residential mortgages     424,030       413,323       400,093       393,142       362,514  
    Home equity loans and lines     95,982       93,220       85,144       85,375       74,433  
    Consumer     8,962       8,172       8,176       8,515       8,096  
    Total retail loans     528,974       514,715       493,413       487,032       445,043  
    Total loans     3,858,940       3,768,649       3,654,322       3,567,631       3,404,014  
                         
    ACL for loans     (63,654 )     (61,999 )     (60,741 )     (58,995 )     (57,905 )
    Net loans   $ 3,795,286     $ 3,706,650     $ 3,593,581     $ 3,508,636     $ 3,346,109  

    Deposits are summarized as follows as of the periods indicated:

    (Dollars in thousands)   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Non-interest checking   $ 1,064,424   $ 1,041,771   $ 1,038,887   $ 1,061,009   $ 1,118,714
    Interest-bearing checking     682,050     788,822     730,819     697,632     727,817
    Savings     279,824     294,566     285,090     294,865     302,381
    Money market     1,488,437     1,504,551     1,469,181     1,402,939     1,434,036
    CDs $250,000 or less     375,055     358,149     337,367     295,789     262,975
    CDs greater than $250,000     299,671     260,942     244,775     225,287     214,480
    Deposits   $ 4,189,461   $ 4,248,801   $ 4,106,119   $ 3,977,521   $ 4,060,403

    ENTERPRISE BANCORP, INC.
    Consolidated Average Balance Sheets and Yields (tax-equivalent basis)
    (unaudited)

    The following table presents the Company’s average balance sheets, net interest income and average rates for the periods indicated:

        Three months ended September 30, 2024   Three Months Ended June 30, 2024   Three months ended September 30, 2023
    (Dollars in thousands)   Average
    Balance
      Interest(1)   Average
    Yield(1)
      Average
    Balance
      Interest(1)   Average
    Yield(1)
      Average
    Balance
      Interest(1)   Average
    Yield(1)
    Assets:                                    
    Other interest-earning assets(2)   $ 181,465   $ 2,497   5.48 %   $ 123,887   $ 1,697   5.51 %   $ 260,475   $ 3,468   5.28 %
    Investment securities(3)(tax-equivalent)     731,815     3,945   2.16 %     750,822     4,057   2.16 %     820,156     4,444   2.17 %
    Loans and loans held for sale(4)(tax-equivalent)     3,813,800     53,956   5.63 %     3,708,485     51,366   5.57 %     3,372,754     44,644   5.25 %
    Total interest-earnings assets (tax-equivalent)     4,727,080     60,398   5.09 %     4,583,194     57,120   5.01 %     4,453,385     52,556   4.69 %
    Other assets     104,284             96,991             82,190        
    Total assets   $ 4,831,364           $ 4,680,185           $ 4,535,575        
                                         
    Liabilities and stockholders’ equity:                                    
    Non-interest checking   $ 1,069,130           $ 1,044,648           $ 1,186,243        
    Interest checking, savings and money market     2,574,439     13,017   2.01 %     2,520,439     12,381   1.98 %     2,491,229     9,185   1.47 %
    CDs     651,614     7,564   4.62 %     601,339     6,791   4.54 %     430,376     3,704   3.41 %
    Total deposits     4,295,183     20,581   1.91 %     4,166,426     19,172   1.85 %     4,107,848     12,889   1.24 %
    Borrowed funds     61,232     674   4.38 %     62,513     664   4.27 %     4,938     28   2.30 %
    Subordinated debt(5)     59,689     866   5.81 %     59,609     867   5.82 %     59,372     866   5.84 %
    Total funding liabilities     4,416,104     22,121   1.99 %     4,288,548     20,703   1.94 %     4,172,158     13,783   1.31 %
    Other liabilities     60,524             60,270             56,414        
    Total liabilities     4,476,628             4,348,818             4,228,572        
    Stockholders’ equity     354,736             331,367             307,003        
    Total liabilities and stockholders’ equity   $ 4,831,364           $ 4,680,185           $ 4,535,575        
                                         
    Net interest-rate spread (tax-equivalent)           3.10 %           3.07 %           3.38 %
    Net interest income (tax-equivalent)         38,277             36,417             38,773    
    Net interest margin (tax-equivalent)           3.22 %           3.19 %           3.46 %
    Less tax-equivalent adjustment         257             256             271    
    Net interest income       $ 38,020           $ 36,161           $ 38,502    
    Net interest margin           3.20 %           3.17 %           3.43 %

    (1)   Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
    (2)   Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and Federal Home Loan Bank stock
    (3)   Average investment securities are presented at average amortized cost.
    (4)   Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans.
    (5)   Subordinated debt is net of average deferred debt issuance costs.

    Contact Info:        Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578

    The MIL Network

  • MIL-OSI: Altai Mourns the Passing of Chairman and President Niyazi Kacira, and Announces Election of the Board of Directors, Appointment of New Chairman and President, and Stock Option Grants

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Oct. 22, 2024 (GLOBE NEWSWIRE) — Altai Resources Inc. (ATI, TSX VENTURE; US SEC Rule 12g3-2(b) File # 82-2950) (“Altai” or the “Company”) announces with great sadness the passing of its Chairman and President, Dr. Niyazi Kacira following a short illness. We extend our deepest sympathies to his family.

    The Board and the Altai family will greatly miss his extraordinary passion and devotion to the Company, thoughtful leadership and ability to connect with people. He was a person of great integrity and unparalleled reputation.

    Dr. Kacira took over the helm of the dormant Black Cliff Mines Ltd. (later changed the name to Altai Resources Inc) in 1987, revived it and listed it on the Toronto Stock Exchange. Since 1987, he served as President (except for a short period of time) and Chairman until his passing. He has made an invaluable and immeasurable contribution in nurturing, building and growing Altai with his tremendous geological expertise and foresight and always with the best interest of the Company in mind and in action, and has set the highest standard of integrity for the Company.

    At its annual general meeting of the shareholders held on October 21, 2024 (the “Meeting”) in Toronto, Jeffrey S. Ackert, Maria Au and Eric Yao as described in the Management Information Circular of the Meeting, were elected as Directors of the Company. Due to his passing, Dr. Kacira was not nominated as director in the Meeting. In the Meeting, Kursat Kacira, who has advised that he is willing and able to serve as a Director of Altai if elected, was nominated as permitted in accordance with the Company’s Advance Notice By-laws and was duly elected as a Director of the Company.

    Mr. Kursat Kacira, a resident of Ontario, Canada, is an accomplished finance and investment executive with over 25 years of global experience in investment management, real estate, corporate finance, capital markets, investment banking, and public accounting. He is a Chartered Professional Accountant (Ontario), has a Master of Business Administration (Dean’s Scholarship) from the Stern School of Business at New York University, and a Bachelor of Mathematics (Honours) from the University of Waterloo.

    He is currently the President of Kacira Holdings Ltd., a private family office investment company. Previously, he served as Managing Director, Head of Global Capital Markets in the Private Markets group at Manulife Investment Management, the Global Wealth & Asset Management division of Manulife Financial Corporation. Prior to joining Manulife, he was the CEO and a director of Firm Capital American Realty Partners Corp., a publicly traded real estate company focused on investing in multi-family residential real estate in the United States. He has also previously been the CEO (and Board Trustee) of Maplewood International REIT (a publicly traded REIT focused on investing in commercial real estate in Europe); CFO of NorthWest International Healthcare Properties REIT (a publicly traded REIT focused on investing in healthcare real estate in Europe, South America, and Australasia); CFO of Whiterock REIT, a publicly traded REIT focused on investing in commercial real estate in Canada and the United States, where he was responsible for the ultimate sale of Whiterock to publicly traded Dundee REIT in 2012, for an enterprise value of $1.4 billion (at the time, the 3rd largest Canadian commercial real estate M&A transaction since 2006). Prior to the above, he had been Vice President & Director in the Real Estate Group, Investment Banking at TD Securities Inc. in Toronto, Ontario, in investment banking with Bear, Stearns & Co. Inc. in New York, US and in public accounting in Canada and Europe (Price Waterhouse in Toronto and Paris). Through his investment banking career in Canada and the United States, he was responsible for completing over $10 billion of capital raising (equity and debt) and M&A transactions for companies across numerous industries, primarily in the real estate sector.

    Mr. Harold Tan, a director of the Company since 2023, did not stand for renomination as a director in this Meeting, for personal reasons. Altai sincerely thanks him for his contributions to the Company during his directorship and wishes him well in all his future ventures.

    In the Meeting, CAN Partners LLP, Chartered Professional Accountants were appointed as Auditors of the Company.

    On October 21, 2024 and after the Meeting, the Board appointed Kursat Kacira as the Chairman and President of the Company.

    On October 21, 2024, the Company granted to each of the two new directors and a new officer, a stock option of 200,000 shares to purchase common shares of the Company at an exercise price of $0.10 per share and expiring October 19, 2029.

    ABOUT ALTAI
    Altai Resources Inc. is a resource company with a producing oil property in Alberta and an exploration gold property in Quebec.

    For further information, please contact
    Maria Au, Secretary-Treasurer
    Tel: (416) 383-1328 Fax: (416) 383-1686
    Email: info@altairesources.com Internet: http://www.altairesources.com

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    The MIL Network

  • MIL-OSI Economics: Transcript of Global Financial Stability Report October 2024 Press Briefing

    Source: International Monetary Fund

    October 22, 2024

    Speakers:

     

    Tobias Adrian, Financial Counselor and Director, Monetary and Capital Markets Department, IMF

    Caio Ferreira, Deputy Division Chief, Monetary and Capital Markets Department, IMF

    Jason Wu, Assistant Director, Monetary and Capital Markets Department, IMF

     

    Moderator: Alexander Müller, Communications Analyst, IMF

     

    Mr. MÜLLER: OK. Good morning, good afternoon, and good evening, depending on where you are joining us from. Welcome to this press briefing on our latest Global Financial Stability Report, titled “Steadying the Course: Uncertainty, Artificial Intelligence, and Financial Stability.”

     

    I am Alex Müller with the Communications Department here at the IMF. I am joined today by Tobias Adrian, the IMF’s Financial Counsellor and Director of the Monetary and Capital Markets Department; to Tobias’s left, Jason Wu, assistant director at the Monetary and Capital Markets Department; and to his left, Caio Ferreira, deputy chief of the Global Markets Analysis Division.

     

    Our latest GFSR is out as of right now, so you can download the full text, our executive summary, and the latest blog on our website at IMF.org/GFSR.

     

    This press briefing is on the record. And we’ll start things off with some opening remarks just to set the stage before opening the floor to your questions. As a reminder we do have simultaneous interpretation into Arabic, French, and Spanish, both in the room and online.

     

    With that, I think we can get started.

     

    Tobias, when we released our last GFSR in April, optimism in financial markets was fueling asset valuations, credit spreads had compressed, and valuations in riskier asset markets had ratcheted up. At the time, you warned of some short‑term risks, like persistent inflation, as well as the tension between these narrowing credit spreads and the deteriorating underlying credit quality in some regions; but you also warned of some more medium‑term risks, like heightened vulnerabilities amidst elevated debt levels globally. So where are we now since then, six months later?

     

    Mr. ADRIAN: Thanks so much. And let me welcome all of to you this launch of the Global Financial Stability Report.

     

    So the themes that you highlight, Alex, have broadly continued.

     

    Let me start with inflation. So global inflation has progressed toward target in most countries. So most central banks continue with a tight stance of policy but have started to cut rates. Now, with inflation heading towards target in many countries, the focus of the central banks has shifted from being primarily focused on inflation toward also considering real activity.

     

    So, concerning real activity, we have seen upward surprises relative to expectations. In financial markets, that has been particularly visible in earnings surprises that have been on the positive side. So as a result, the likelihood of a global recession has continued to recede. So the baseline forecast is one of a soft landing globally. And that is the optimism that we had flagged already in April. That has been reinforced in many ways. And that is fueling optimism in financial markets. So financial conditions globally continue to be accommodative. Credit spreads continue to be tight. Implied volatility, particularly in risky asset markets, such as equity markets, continues to be fairly low.

     

    Now, you know, our main theme in Chapter 1, which was released today, is a tension between this financial market assessment of volatility‑‑i.e. the implied volatility in the equity market is perhaps the best indicator here‑‑which is at fairly low levels by historical standards, relative to measures of global geopolitical uncertainty.

     

    So in the report, we’re showing two measures that are computed not at the Fund but by other institutions. One on geopolitical uncertainty. The other one on economic uncertainty. And those continue to be relatively elevated. So there’s a kind of wedge in between the financial market‑implied volatility and the assessment of political or economic uncertainty. So this tension worries us, as it gives rise to the potential for a sharp readjustment of financial conditions. So we saw a little bit of that in August in a sell‑off that was very brief. So it’s a blip, in retrospect; but it does raise the concern, whether there are some vulnerabilities in the financial system that could be triggered if adverse shocks hit.

     

    Mr. MÜLLER: Thank you, Tobias. That sets the stage nicely for us, I think.

     

    We will turn to your questions now. We do have runners in the room with mics, so please do raise your hand. You can raise your hand both online or in the room, and we’ll come to you. Please do remember to state your name and affiliation. And keep it as brief as possible so we can get to as many questions as possible.

     

    Let’s start over here with the first question.

     

    QUESTION: Thank you so much. I am not asking you to comment on the presidential election in the U.S. But we have a presidential election here in 14 days, and President Trump or Vice President Harris may win the election. And that election will have ramifications not just in the U.S. but around the world.

     

    How does the IMF assess the outlook for the U.S. economy in the lead‑up to the presidential election? And what implications could a potential economic shift have for emerging markets in Africa, particularly regarding investment flows and debt sustainability? Thank you.

     

    Mr. ADRIAN: Thank you so much.

     

    Mr. MÜLLER: Do you want to group some questions? Do we have similar questions on the election or the U.S.? Can we take the question over there, please?

     

    QUESTION: How do you explain the recent backup in U.S. yields? And are you concerned about financial stability in the United States, given the rising projections of federal debt, irrespective of the outcome of the election? Thank you.

     

    Mr. MÜLLER: I think we can start with that for now.

     

    Mr. ADRIAN: OK. Sounds good. Yes.

     

    You know, we don’t comment on specific election outcomes. Of course, this year is an unusual year, in that over half of the population globally either has elected already this year or will elect this year new governments. And so that is certainly part of the reason why this policy uncertainty globally is high. There’s some uncertainty as to, you know, what the policy path for economic policies and broader policies is going to be going forward.

     

    When we look at volatility, as I said, that uncertainty in equity markets is relatively contained. But in interest rates, volatility is somewhat more elevated than it was, say, in the decade after the global financial crisis. So we are back to levels that are more similar to pre‑financial crisis. So interest rate volatility is relatively high. And that answers to some degree the second question.

     

    We have seen volatile longer‑term yields throughout the year, but we don’t think that that volatility is excessive, relative to the fact that monetary policy has become more data dependent. You know, after the global financial crisis, there was this challenge of the zero lower bound for monetary policy; so forward guidance was a very important tool. And that had even been phase in prior to the financial crisis with, you know, forward guidance being a compressor of volatility for interest rates. And that is less the case today. So interest rate volatility has increased.

     

    When we look at the longer‑term yields, we do certainly see that term premia have decompressed to some extent. So after the global financial crisis, we had seen negative term premia at a 10‑year level in the U.S. and many other countries, and some of that has decompressed. And that is, as would be expected, as the interest rate wall is coming up, asset purchases are normalizing, and quantitative tightening is being phased in.

     

    Now turning to Africa. Of course, you know, financial markets are global. So the base level of interest rates is moving across the world in a common fashion. So you can think about sort of like the base level of interest rates and then the spreads in countries, relative to that. So what we see in sub‑Saharan Africa is that countries with market access‑‑so those are the frontier economies‑‑they have seen spreads being compressed, so financial conditions have eased. And you know, relative to, say, 12 months ago, interest rates have certainly declined as a base. And many frontier markets have reissued, sort of accessed international capital markets. So, of course, there are countries that do face debt challenges, that do face liquidity challenges; and we’re actively engaged with the membership to address those.

     

    Mr. WU: Just to quickly add to what Tobias said about Africa.

     

    As he pointed out, the backdrop heading into this year was one of improvement, both in terms of growth, as well as financing conditions and spreads. Inflation is still high in the region, but it is coming down and stabilizing. Debt is an issue, but we have seen several cases this year being resolved. So that is good news.

     

    I think to your broader point, you know, we don’t comment on election outcomes; but we do know that financial markets tend to see, you know, more uncertainty around those outcomes. And this may affect financing conditions around the world, including in Africa. Uncertainty can also bring, you know, some slowdown in investments in the near term or the medium term. And so those are all possible outcomes. I think the key thing is for the macroeconomic framework to remain stable to address domestic situations and for countries that may be facing debt issues to engage with their creditors early, including through the Common Framework and other international setups.

     

    Mr. MÜLLER: Thank you. Can we take other questions? I think we have a question here in the middle, at the center.

     

    QUESTION: I was hoping you could talk about quantitative tightening. The Fed is still doing it. What are the risks now going forward? When do you think they might stop it? Thanks.

     

    Mr. ADRIAN: Thanks so much.

     

    As I mentioned earlier, you know, during the global financial crisis and then in the decade after the global financial crisis and then again with the COVID crisis, central banks‑‑advanced economy central banks around the world engaged in a quantitative easing. So these are asset purchases, called large‑scale asset purchases, in the U.S. that led to an increase in the balance sheet size of the central banks. So in the U.S. case, it grew roughly by a factor of 10. And the Fed has started to move towards a normalization of the balance sheet size. So that is generally referred to as quantitative tightening. And that has proceeded in a very orderly fashion. So when we look at market functioning, we see orderly markets in money markets. We see ample liquidity in core funding markets, including Treasury markets. And that is generally the case in other advanced economies that are doing quantitative tightening, as well.

     

    Of course, there is the question of how far the balance sheet normalization is going to go. And policymakers in the U.S. and other advanced economies have indicated how far this normalization would be going. So what is notable here is that the operational framework of the Federal Reserve changed to a floor system, so having a sufficient amount of reserves in the system to operate that floor system is key. So, you know, looking at funding conditions in money markets and market functioning is absolutely key. Back in 2019, there were some dislocations, and that is certainly something that policymakers are watching out for. But I would say that this balance sheet normalization has proceeded in a satisfactory and very orderly manner.

     

    Mr. FERREIRA: Tobias, just a quick complement.

     

    I think that we have seen a quantitative tightening from all of the major central banks. And I think that from the peak in 2022, of about 28 trillion in terms of assets in their balance sheets, it has come down by about one‑quarter already and, as Tobias was saying, in a very orderly fashion.

     

    The main risk that I think is important to monitor going forward is the potential drain on reserves, as Tobias was saying, to avoid the kind of episodes that we have seen in 2019. But there is also a potential risk for a bounce of increasing volatility, in the sense that we are moving from central banks being one of the main buyers of Treasuries to more price‑sensitive buyers. And this might cause volatility coming from data releases.

     

    Mr. MÜLLER: OK. Let’s take it back as well. We have a question in the front here, in the center, that we can take.

     

    QUESTION: Thank you for taking my question. I want to ask about the U.S. Federal Reserve’s policy and its impact, spillover impact. I think recently, it started to cut rates, and it’s going to cut rates further going forward. And it seems to be allowing other governments, other policymakers to have more room, including the People’s Bank of China. I want to ask Tobias whether he could comment on the latest action by China’s central bank and what’s the IMF’s suggestion going forward. Thank you.

     

    Mr. ADRIAN: Yeah. Absolutely.

     

    What we have seen in China is an easing of monetary policy. So the question is referring to the most recent action, which was a cut in interest rates. And, of course, we have seen PBoC engaging in asset purchases, which has supported the easing of financial conditions. So when we look at financial conditions‑‑so, you know, the cost of funding for households and corporations in China, those financial conditions have eased quite markedly. Equity markets have rallied. Longer‑term bond yields have declined. And we generally welcome that easing. We think that is the appropriate policy for monetary policy.

     

    There have been also some announcements on the fiscal side that are indicating support ‑‑ to the real estate sector, in particular. And, of course, authorities in China had already engaged for some time in terms of addressing the exposure of the banking system to the real estate sector. The real estate sector has cooled off in China, and that has created some risks in the banking sector. So authorities are working actively at addressing those by merging banks and using asset management corporations (AMCs) in an active manner. And we welcome that, as well.

     

    You know, we are watching closely how financial stability policies are going to evolve going forward, relative to the real sector but also the broader economy, and how fiscal policy is evolving going forward.

     

     

    Mr. FERREIRA: Maybe on this last point, Tobias, on financial stability.

     

    Of course, there’s some slowdown in economic activity, and the problems that we are seeing in the property sector are exerting some pressure on the financial system. The good news I think is that particularly the large banks seem to have strong capital buffers and liquidity buffers. The authorities also have the capacity to make target interventions, and this somewhat limits the risks of spillovers.

     

    There are some vulnerabilities that need to be monitored. Right? So one, of course, is this potential pressure on asset deterioration coming from this slowdown in the property market. So far, banks have been quite good in terms of being able to deal with this potential deterioration, particularly using asset management companies to dispose of some of the nonperforming assets. The capacity of these asset management companies to keep absorbing these assets needs to be monitored going forward. It’s also important to monitor the stability of the smaller banks that are not as strong as the larger banks.

     

    And the last point I think that’s important to mention is that the financial sector holds a lot of exposure to local government financing vehicles. And if there is‑‑and there are some pressures on these vehicles, and a potential restructuring of these debts might cause some losses to the banking sector, as well.

     

    Mr. MÜLLER: Thank you, Caio. Do we have any other questions on China before we move to anything else?

     

    So we can turn over to the side.

     

    QUESTION: Thank you. My question will be for Tobias and Jason.

     

    Of course, reading your report, you talked about financial fragilities, so I would like to know what financial fragilities you see in developing economies and what policymakers should do to keep financial markets resilient and stable in the face of high interest rates as a result of high inflation in developing economies like Nigeria, too.

     

    The question I have for Jason would be around, what does vigilance really mean for policymakers? Because in your report, you said that the policymakers need to be vigilant. Because vigilance in European economies or advanced economies is also different vigilance for developing economies. Thank you.

     

    Mr. ADRIAN: Thank you so much. Those are very pertinent questions. And thanks so much for taking a close look at the report.

     

    For developing economies broadly, I would say that there are three priorities. In terms of financial stability, we are engaging with many countries in terms of building capacity on regulatory issues, so making sure that banks are well capitalized, that monetary policy frameworks are sound. And Nigeria is a good example, where the central bank has been moving toward an inflation‑targeting regime, has liberalized the exchange rate. And we welcome that direction.

     

    Secondly‑‑and I think you alluded to that‑‑is, of course, the overall indebtedness. That is a challenge for some countries. As I mentioned earlier, frontier markets are developing economies with market access. And we have seen many frontier markets issue this year. The issuance levels are fairly high. And we think market access is there, though, of course, financing conditions have improved but are still more expensive than they were, say, in 2021, before the run‑up in inflation.

     

    So with inflation coming down and interest rates expected to further normalize, we would also expect that frontier market funding conditions will improve. And as I said, interest rate spreads are fairly tight.

     

    Now, of course, there are some countries a that do not have market access, and many of those countries are in programs with the IMF. And we are working actively with authorities on the debt issue. We do feel we have made good progress within the Common Framework, but there is certainly more to be done.

     

    Now, of course, it remains key to also work on structural issues to enhance the growth outlook. And that is really something that the regional economic briefings are going to address in detail.

     

    Mr. WU: Maybe just a quick word, to add to what Tobias said about Nigeria, in particular. We recognize that many citizens do face difficulty. The flood was quite devastating. Inflation is still very high, at some 30 percent. So in that regard, the central bank’s rate hikes so far this year have been appropriate.

     

    You asked a question about vigilance. I think importantly, macroeconomic conditions within the country should stabilize. Right? And that includes inflation that will provide room to guard against external shocks, which is less controllable, right, for the economy of Nigeria. So when appropriate, the various foreign exchange measures that were taken by authorities earlier this year are also appropriate in improving vigilance, as are the banking sector‑related measures that Tobias has mentioned.

     

    Mr. MÜLLER: All right. Do we have any more questions on that side of the room before we turn it back over here?

     

    QUESTION: Thank you very much.

    So Ghana has just completed its debt restructuring. It’s good news for Ghanians. However, it appears the government is looking at the capital market. What advice do you have for the government at this point? And also because we have an election around the corner.

     

    Mr. ADRIAN: Yeah. As I noted earlier, we don’t really comment on elections in the countries of our membership. You know, these are democratic processes. And the people in each country are‑‑it’s their liberty to vote for the government, so we don’t comment on that.

     

    We are, of course, engaged very closely with Ghana. Ghana is in a program. Ghana did restructure its debt. And we are confident that the outlook is going to improve going forward. The regional economic press briefing on Africa is going to go further into detail on those issues.

     

    Mr. MÜLLER: Thank you, Tobias.

     

    As a reminder these regional press briefings will be on Thursday and Friday. So they’re all going to be here, so you will have the opportunity to ask those specific questions then.

     

    Can we turn it over here to the middle for a question, please? Right in the center. Thank you.

     

    QUESTION: Thank you.

     

    A follow‑up question related to the yields going up for the Treasury. In simple words, do you see them going up as a source of a potential sell‑off in the financial markets?

     

    And a separate question, if possible. For the same token, yields are going up because of the fiscal trajectory in the U.S. that is worrisome for some, at least, although the candidates are not talking about it. For the same token, considering that the Italian debt is only going up, according to the latest estimates from the IMF, does that represent a source of financial instability for the euro zone?

     

    Mr. ADRIAN: Yeah. Thanks so much for this question.

     

    We have, indeed, done work on the interconnection or the nexus between fiscal‑‑or, you know, sovereign debt and financial market debt. So in the euro area, of course, we are watching closely the sovereign‑bank nexus, so the exposure of banks to the sovereign. And you know, in general, we have seen an amelioration there. So, you know, debt‑to‑GDP has been increasing. And that’s very broadly the case around the world. It’s really in the pandemic that we see a sharp upward move in debt‑to‑GDP in both advanced economies and emerging and developing economies. And you know, the fiscal outlook in many countries does imply that debt-to-GDP may continue to rise. So that could‑‑you know, that is certainly a backdrop for the financial system.

     

    Now having said that, governments in advanced economies and major emerging markets have ample room to adjust the fiscal situation going forward through spending measures, through revenue measures. So it is not an immediate financial stability concern in those advanced economies or major emerging markets.

     

    You know, in terms of the pricing of sovereign debt‑‑so, you know, Treasury yields and other benchmark yields around the world‑‑as I said earlier, volatility in those longer‑term yields has increased relative to the decade of the post‑crisis environment, where central banks were constrained at the zero lower bound or the effective lower bound, so had very low interest rates; so they deployed forward guidance and these quantitative asset purchases. So that really compressed longer‑term yields. And that has normalized to some degree, but we don’t think that it is an unusual move. So we are quite comfortable with the kind of levels that we are seeing.

     

    Mr. MÜLLER: Thank you. Let’s bring it back over here. I think we have a few questions. Can we take the one in the middle right at the center? Thank you.

     

    QUESTION: A question for Tobias, if I may.

     

    There has been quite a lot of talk about fragmentation and geopolitical risk. Do you think that, as others have said, the momentum for financial regulation and for completing the job on a lot of areas of that is fading? Is there a risk of complacency there? Thank you.

     

    Mr. ADRIAN: Yeah. So let me note that we are working around the membership on the regulation of banks but also non‑banks, including security markets, insurance companies, pension funds, and other non‑bank financial institutions.

     

    Concerning banking regulation, of course, there was a major initiative after the global financial crisis to improve capital and liquidity in the banks and to improve the supervision of the banks, primarily of internationally active banks. So the members of the Basel Committee‑‑this is, you know, a group of countries that roughly maps into the G‑20‑‑have committed to phasing in Basel III as a standard for capital and liquidity requirements in those banks. And our understanding is that the membership is still committed to that phase‑in.

     

    I would note that it has taken longer than was initially anticipated, but we are very confident for now that, you know, the major advanced economies and major emerging markets that have signed onto this Basel III framework are going to phase that in.

     

    In the broader membership of the IMF, there’s also a substantial improvement in the regulation of banks. And I would note that there has also been quite a bit of progress in terms of regulations of non‑banks, including insurance companies but also security markets, though we do think that more needs to be done going forward.

     

    Mr. FERREIRA: We have seen important progress in the post‑crisis. Our baseline is still that all the internationally agreed standards will be implemented. Although, as Tobias was saying, there are some major jurisdictions that are facing some challenges implementing that.

     

    We see this with some concern because when you see a major jurisdiction not implementing any standard or implementing it with substantial deviations from what has been agreed, it kind of jeopardizes the international standard‑setting process. That seems to be working fine, but we still are concerned with the delays in the implementation of these regulations that are important for the banks but also to maintain trust in the international standard setting process.

     

    Mr. MÜLLER: Thank you. We are coming close on time. So let’s take two or three last questions from this side. Then I think we still have one more question online. Can we do the three over here in the front, on the right?

     

    QUESTION: [Through interpreter]

     

    Good day. Jesus Antonio Vargas. Chucho Lo Sabe Newsletter.

     

    This is the ninth time I come to the Annual Meetings of the IMF and the World Bank. Six times in Washington. I come from Medellín, Colombia. I have also been in Lima, in Bali, last year in Marrakech. And it is a pleasure to see Tobias Adrian here. He has been year in, year out heading the endeavors. Congratulations.

     

    First, a surprise positively since there’s measures to come from the effort to the citizens. In Bogota, they’ve been talking about building a Metro system for 60 years, and they’re attempting it yet again now.

     

    Now, leaving that aside, we have spoken about, it is unlikely there will be a global recession, which is a relief.

     

    I was talking about the risk of a recession. You were talking about a positive surprise in terms of the gains. What do you mean exactly by that? Thank you.

     

    Mr. MÜLLER: If we could take two more questions over here.

     

    QUESTION:

     

    You just mentioned there is a disconnect between market volatility and also market economic uncertainties. Could you please just elaborate a little bit more on these risks. And also, more importantly, how will it affect global financial stability if it persists? Thank you.

     

    Mr. MÜLLER: One last question in the back there.

     

    QUESTION:

     

    I’ve got a question on liquidity mismatch, in the world of DC pensions. The report mentions the U.K.’s desire to shift toward unlisted assets as investments. And our current Chancellor has also expressed an interest in this. What are the risks in this? Should the shift toward these assets be limited? And how should we guard against them?

     

    Mr. ADRIAN: Yeah. Let me perhaps start with the question on macro uncertainty, which was the second question.

     

    So yeah, you know, what we’re seeing is that there is leverage and there are maturity mismatches in the financial sector in many different parts. You know, some of those are contained through prudential regulations, but not all institutions are subject to prudential regulations. So when there’s a sudden burst of uncertainty, some institutions may be forced to unwind their positions. So this includes, say, leveraged trades in fixed‑income markets or in equity markets.

     

    We saw some of that in August, when there was a sharp sell‑off in global equity markets but also in some fixed‑income markets, such as the carry trade across countries. And you know, volatility increased very quickly, leading to this forced deleveraging, and that can amplify downward moves in asset markets.

     

    In August, this episode was very short‑lived. So the sell‑off was followed by a buying of longer‑term investors, such as insurance companies and pension funds. But if such a sell‑off persists for more than‑‑or is more sharp, that could lead to financial stability problems or financial sector distress.

     

    Concerning the U.K. situation and the liquidity mismatches, let me just point out that the Bank of England and the FCA are very focused on those issues. And they do have, you know, broad authorities to regulate those mismatches. And I think they’re actively looking at how to model stress and how to make sure that these investments are sort of balancing risks and returns in an appropriate manner. I think Andrew Bailey made some remarks just this morning in that regard, and we’re fully aligned with his views there.

     

    Mr. MÜLLER: I’ll take one last question we have from WebEx, online on the Mexican central bank lowering interest rates. For future adjustments and to maintain financial stability, what should it take into account more, the movements of the Federal Reserve, internal inflation, or the depreciation of the currency?

     

    Mr. ADRIAN: OK. I don’t want to go too specifically into Mexico. Again, there is the Regional Economic Outlook that will speak more closely to specific country issues. So, you know, in general, in the major emerging markets, such as Mexico, that have open capital markets and have inflation targeting regimes, you know, inflation targeting and monetary policy credibility has proven to be very powerful in terms of generating macroeconomic stability, relative to both domestic and external shocks. And you know, in those frameworks, central banks look at both internal and external conditions and are targeting the medium‑term convergence of inflation back to target rates. That has proven very successful. And I would argue that in the major emerging markets, we really see a great deal of improvement in those monetary policy frameworks. So let me stop here.

     

    Mr. WU: Just to quickly complement.

     

    Hence, this is why we have seen major emerging markets come through this rate hike cycle with reasonable resilience across the board. This inflation‑targeting framework has obviously done work, to an extent. Having said that, we are now on the opposite side of the cycle, where interest rates are being cut. That, in theory, should be conducive to emerging markets. Financial conditions could ease. We just want to point out that, as we said in the report, expectations could change. Volatility could be introduced and suddenly surge. So this may have spillovers to emerging market economies, you know, sentiment, financial market sentiment, as well. So policymakers need to remain vigilant on monetary policy and on other aspects of financial sector policies in order to guard against those risks.

     

    Mr. MÜLLER: All right. Great. Thank you.

     

    Unfortunately, that does bring us to a close because we do have to respect the next press briefing in this room.

     

    If you do have any questions that we weren’t able to address, please do send them over to me or someone from our team. We’ll make sure to get back to you as soon as we can.

     

    Meanwhile, the events here at the IMF do continue. We still have a host of press conferences this week, from our Fiscal Monitor tomorrow at 9 a.m. Eastern Time to the Managing Director’s Global Policy Agenda on Thursday to our five regional briefings that we talked about, on Thursday and Friday, not to mention the seminars. We have the Managing Director joining the debate on the global economy. That is on Thursday afternoon, which is always a hit that you won’t want to miss. On Friday, the First Deputy Managing Director Gita Gopinath will participate in a panel discussion on monetary policy in a shock‑prone world on Friday afternoon. And there’s a whole lot more, so do check the full schedule online at IMFConnect or at meetings.imf.org.

     

    With that, Tobias, Jason, Caio, thank you for your insights. And thank you all for joining us for this event. We look forward to seeing you at the next one. Thank you.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Alexander Muller

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    MIL OSI Economics

  • MIL-OSI Economics: Transcript of G24 October 22 Press Briefing

    Source: International Monetary Fund

    October 22, 2024

    Speakers
    Chair: Ralph Recto, Secretary of Finance, Philippines

    First Vice‑Chair: Candelaria Alvarez Moroni, Argentina, representing Ministry of Economy Luis Caputo
    Second Vice‑Chair: Olawale Edun, Minister of Finance and Coordinating Minister of the Economy, Nigeria
    Iyabo Masha, G‑24 Secretariat

    Mr. Recto (Philippines): Thank you, all. We had a productive exchange of views and experiences on some of the most pressing issues, confronting the global economy today. We are hard‑pressed on multiple fronts. The suffering costs by conflicts and humanitarian crisis around the world is vast and the affected region’s recovery, the construction, and long‑term development, cannot wait. They demand immediate forceful multilateral action.    

    While the global economy shows signs of stabilization, the outlook for many vulnerable nations, particularly in the global south, remains bleak. These weak economic prospects continue to haunt those already struggling to recover from the pandemic.      

    Inflation may be easing, but rising geopolitical tensions are keeping the threat of commodity price spikes and elevated interest rates alive. These risks impair capital flows, fiscal stability and the very survival of economies on the brink.          

    One thing is clear. Any slowdown in the global economy due to these new economic realities is bound to hit developing countries the hardest. While current circumstances have made it more difficult for us to achieve a sustainable and inclusive future by 2030, we believe that it remains possible with the right priorities and concerted international cooperation.         

    Thus, we continue to call for a more agile and strong will IMF and World Bank. We need heightened development cooperation, scale‑up support, and innovative solutions as we now begin the headwinds to foster peace, stability, and prosperity for all. And the key issue that underpins our discussions is the 80th Anniversary of the Bretton Woods System.         

    We acknowledge the significant evolution of the system over the decades. Yet, we must recognize that rapid transformations are occurring at an unprecedented base. We must therefore critically assess if the Bretton Woods System is adopting fast enough to the rapidly changing and increasingly volatile global environment.         

    To this end, the G‑24 has identified four key reforms that will enhance the system’s effectiveness and empower both the IMF and the World Bank Group to better serve their members.              

    First, the IMF must create a new mechanism to support countries with sound fundamentals during liquidity crisis.

    Second, the immediate submission of eradicating poverty on a livable planet, the World Bank needs more ambitious goals for its concessional and non‑concessional windows, commensurate with the challenges of achieving inclusive and sustainable development by 2030.    

    Third, the sovereign debt resolution framework must be reformed to deliver comprehensive, predictable, swift, and impactful debt relief, addressing the urgent needs of vulnerable economies.               

    Fourth, we must accelerate governance and institutional reforms of the Bretton Woods Institutions, to increase the voice and representation of developing nations. Without improvements and both actions, decades of individual and global efforts to eradicate poverty and inequality, combat climate change, and invest in growth‑enhancing projects will be put to a halt, if not reversed. Thus, we are counting on our recently concluded meeting to set an unprecedented multilateral cooperation and action. All of these points are comprehensively discussed in the communiqué and press release we have prepared for your perusal. With that, we are now ready to take your questions. Thank you.         

    MODERATOR: Thank you, Mr. Chair. So now moving on to the Q&A section, I would like to remind you that when you raise your hand, please identify yourself, your outlet, and please identify the Chair members that you would like to address the question to. Now moving on to the gentleman in the third row, please.       

    QUESTIONER: Thank you so much. I have a question actually for the three of you. Mr. Recto, you talked about the need for liquidity and buffers. The Philippines serves as a really good example. You are one of the fastest growing economies in the developing Asia region. Business process outsourcing, revenues have passed $35 billion. I wanted to find out, what is the Philippines doing so well? Is it a well‑educated workforce or is it constant electricity; what is the secret; and is AI going to disrupt that going forward?        

    For Candelaria Alvarez, reforms have been taking in Argentina. Javier Milei recently, I think it was in the last month, vetoed a bill that was going to increase financing for public universities, and students have been protesting. How patient do you expect the residents of Argentina to be with the reforms that are taking place?               

    And for Mr. Olawale Edun, the CBN Governor, Olayemi Cardoso, at the last monetary policy meeting in Nigeria mentioned that the FAAC allocations, the Federation Account Allocation Committee, are causing—he noted they are causing the naira to depreciate when those disbursements are made. What do you think need to be done to address that?

    Then, two, you recently, I think it was a month or two, you talked about the need for single‑digit interest rates in Nigeria. Do you think that is ever going to happen with inflation being in double digits and a hawkish monetary policy path in Nigeria? Thank you.              

    MODERATOR: Thank you. Let me remind you that I hope that your question will be under the purview of G‑24 discussions but let ask the Chair to respond to the questions.               

    Mr. Recto (Philippines): Thank you very much for your question. Thank you for noticing the Philippines. The Philippines at the second quarter grew by roughly 6.3 percent. For the first 2 years of this administration, we have grown about 6 percent. We are following our macro fiscal framework of reducing the deficit over time. We expect the good debt‑to‑GDP to be way below 60 percent by 2028. Today are roughly at 60 percent.               

    On the expenditure side, we are spending roughly 5 to 6 percent on infrastructure, maybe a similar amount also for human resource development, particularly in health and education.               

    You are correct that the BPO industry is growing by about—well, we collect roughly 35 billion in revenues a year. We also have a robust remittance of roughly the same amount, about $35 billion a year as well. That helps our consumption. 70 percent of the economy is household consumption. And public investments have also generated most of that growth as well.                 

    AI is a challenge, but in the Philippines the BPO industry is already adapting to AI. So thank you for your question. Thank you.               

    MODERATOR: Mr. Edun, would you like to address the question?              

    Mr. Edun (Nigeria): Thank you very much. Let me answer it within the context of the discussions of the G‑24. Fundamentally, of course, foreign exchange and liquidity generally is very difficult. There are countries that are—they are reforming their economies domestically. They key into the rules‑based world trading system. And they do have debt sustainability in terms of debt‑to‑GDP. However, they have liquidity constraints, particularly foreign exchange with relation to debt servicing of the foreign debt but also their domestic debt. And I think to bring that—that is the context within which the questions of how to help. In fact, the IMF is specifically focusing on how to help is sort of a bridge financing that takes a question that does have its fundamentals right, but it gives it enough time for that adjustment and probably helps it with heightened debt servicing, which is just for a period.

    Clearly with regard to Nigeria, the key about the foreign exchange market really is supply. And, of course, as you know we have the—we are an oil‑producing country. We just need to get our oil production up, and that will deal with that issue of foreign exchange supply, and pressure on foreign exchange every time there are large flows.                  

    In terms of single‑digit inflation, of course, the western world, the rich countries, they have effectively defeated inflation. That is why the interest rates can come down. The Governor of the Central Bank in Nigeria, in the context of high inflation, is continuing with monetary tightening. That is the orthodoxy of the day. And it is one which is following. Thank you.               

    MODERATOR: Ms. Moroni on Argentina.          

    Ms. Moroni (Argentina): Thank you. Going back to the question on Argentina, just as an important framework, G‑24 has been working on the need for emerging market and developing economies to try to put their economies in the right place. The Minister mentioned the need for the international financial organizations to give liquidity or to provide access to liquidity for countries like Argentina and others to be able to get back on our feet. For the government of Argentina, it is really relevant. We do think there is a need for a fiscal anchor on that sense. What happened with the education law had to do with the idea to keep the budget where it has to be, and it has not to do with kind of cutting education. It has to do with evaluating costs and expenditure in the right way. I think that is it.          

    MODERATOR: Thank you so much. Going back to the floor. The gentleman in the fourth row, please.            

    QUESTION: Just turning to the U.S. election, obviously we have seen the U.S. follow suit on trade change to a more protectionist stance. We have seen more industrial policy. Regardless of who wins the election, how do you see the U.S. involvement with multilateral organizations represented here and the WTO; and what is the impact of maybe a lessen gauged, more transactional U.S. on the group of countries, the G‑24?           

    MODERATOR: Mr. Chairman, maybe the Secretariat would like to respond?               

    Mr. Edun (Nigeria): We are concerned that there will be a setback on multilateralism, particularly on trade as well. And we know the driver of global growth is more trade. So that is a concern. In the Philippines, we count on our relationship with the United States to do maybe more out‑shoring to the Philippines, and hopefully that will be done also with other members of the G‑24.            

    Ms. Masha (Secretariat): If I can add, if you look at the communiqué, the last paragraph there actually addresses this issue. It is not just about the U.S. it is also about different countries all over the world implementing protectionist policies. And we have seen the impact of that in sectors that continue to build more to growth and development in many countries. So where do we go from here? What we are calling on is for the WTO to become the center of trade discussions, trade negotiations, and for the World Bank and the IMF to rise up to a much more multilaterally‑engaged organization that will be able to at least influence the kind of policies that countries take one way or the other. Thank you.            

    MODERATOR: Thank you. We are going to go online. The question that was just received from Sri Lanka. Sri Lanka as a member of G‑24 is currently making attempts to emerge out of a crisis. What can you tell us about a G‑24 position to support countries like Sri Lanka and also for the island nations to secure financial facilities at reasonable conditions. Mr. Chair, maybe Iyabo?            

    Ms. Masha (Secretariat): Yes. So I would say that Sri Lanka has come a long way from where it was 2 years ago. The last IMF Article IV Consultation assessment does show that growth is picking up, that fiscal buffers are coming up, and also import duties are rising, so that indicates that the countries are making some recovery.           

    As for the position that the G‑24 takes on this issue, the way it affects Sri Lanka most is on the debt sustainability issue. So what we are calling for is that countries, especially middle‑income countries, should also have a framework, a forum where they can negotiate with their debtors. As it is now, the Common Framework only works for low‑income countries. Only low‑income countries are part of the Common Framework, but middle‑income countries can be part of another forum called the Sovereign Debt Resolution Roundtable, which is not really an association—an organization that delivers any form of debt relief. It just fosters common understanding. So that is what we are calling for. We want very timely, very comprehensive reduction in debt for countries, and also for both middle and low‑income countries to qualify. So that is where I see it working out. If things work out and the discussion in that area picks up quite fastly, then we can see the likes of Sri Lanka and maybe Lebanon and a few other countries benefiting from that. Thank you.          

    MODERATOR: Thank you. Back to the floor. Maybe I will take one question from the side and come back to you. I’ve seen your hand, sir, in the third row. Sorry, the fourth row. Yes.               

    QUESTION: Hi, there. Mr. Recto, you said that developing countries would be hit by the hardest by any slowdown. I am going to ask an uncomfortable question, but the U.S. election has two very different results, one of which will likely be much more inflationary and lead to more trade tensions. Could each of you tell me a little bit about how your economies are preparing or thinking about the possibility of a Trump victory and associated trade tensions and inflationary pressures that could be a headwind to growth?              

    MODERATOR: Yes, please.             

    Mr. Recto (Philippines): Well, in the Philippines, we do have a relationship with the U.S. We have a mutual defense treaty. We are hoping to leverage that relationship so that we do not get much affected. We understand that many U.S. companies are also interested to invest in the Philippines. We do have a partnership also, the U.S.-Japan-and the Philippines, with regards to our security arrangements. We expect more investments to take place also in the Philippines.             

    MODERATOR: Anything to add from Mr. Edun or Ms. Moroni?             

    Mr. Edun (Nigeria): Thank you. I think the issues that we are contending with in Africa, in many ways, we are bystanders to this all‑important election. Yes, we do have African Growth and Opportunity Act, which tries to open up the U.S. market to African‑manufactured products. I do not think that will be affected in any way by the results of this election. Generally, what we are finding is that at this particular time, the economies of trade generally, there is a reversal of globalization, of trade. There is a move to protectionism in these countries. There is on‑boarding of production. All these things tend to work against the developing world’s ability to benefit from expanding trade and thereby use that opportunity for investment, for growth, and for job creation and poverty reduction.            

    Overall, I think that we are not that affected specifically or that in general we continue to ask for an improved global financial architecture that provides us with more concessional funding, add skill, particularly for those countries that, as I said earlier, are undertaking the macroeconomic reforms that everybody agrees are sensible and will lead to better lives for their people. Thank you.             

    MODERATOR: Anything to add from the macro, broad perspective?             

    Ms. Moroni (Argentina): Very briefly. What was mentioned by both Ministers is the right sentimenting in the emerging markets. We do think, at least for Argentina, the U.S. is a strategic partner and whatever the elections go, we do think that we need to keep having that channel open. Trade is quite a relevant issue. Financial issues are quite relevant. Governance issues in institutions also will be something sensitive to work with the new administration. We do think it is going to be something quite interesting to see in the short‑term. Thank you.           

    MODERATOR: You, sir, in the second row right here.            

    Question: My question is meant for Mr. Wale. Like Mr. Recto said in his opening remarks, a lot of G‑24 countries are having challenges implementing structural reforms and adjustment programs. I would like you to speak specifically to the case of Nigeria. What are the key lessons to learn from the structural reforms being implemented in Nigeria today. And looking back, are there better ways these reforms would have been implemented to limit the level of disruptions? Also, you met with the IMF MD and the team yesterday. We would like to know some of the discussions on that meeting and how does that relate to debt sustainability for Nigeria. Thank you.           

    MODERATOR: Mr. Edun, would you like to respond?         

    Mr. Edun (Nigeria): Thank you very much. When we talk about—I will take the last one—debt sustainability, and also reforms generally, the G‑24 I think is better to talk within the framework, to talk beyond Nigeria and more about developing countries as a whole. The requirement really for support from the international community, from the development partners, from the multilateral development banks is that you undertake reforms that lead to sustainability at the macro level.             

    The key lesson that I think I would focus on is that in devising these programs and carrying out the reforms, what is particularly important — because the benefits over the longer term and the costs are frontloaded, it is important that the social safety nets that will help the poor and the vulnerable cope with the up‑front costs with a spike in their cost‑of‑living is adequately planned for and dealt with. So, it should not be an issue of it is an afterthought that you decide now that there need to be certain poverty alleviation initiatives. And linked to that, focus on helping the poor and the most vulnerable, [what can] cope with the cost is communication. I think one of the critical things in carrying out these economy reforms that are so fundamental and clearly they are necessary, otherwise they would not be implemented, is that communicating what is being done, what was to be expected, and also the timing as much as possible, the timing of the various activities, and then communicating what actually has been done so if it is a program to give direct benefits, direct transfers of funds to a group of people, then it should be published. There should be a dashboard that people can follow, thereby engendering and building public trust. I think those are the two important things that I would say you need to have for all of us at the G‑24 and developing countries in general. Thank you.         

    MODERATOR: Thank you, Minister. I have time for two more questions. Let me go back to the far end of the room right there. Thank you.

    QUESTION: Thank you. A question on climate change. Do you think the development banks, MDBs, are doing enough to tackle climate change? And especially our shareholders of MDBs, are they doing enough to tackle this issue? Thank you.            

    MODERATOR: Thank you. Mr. Recto, you would like to comment?        

    Mr. Recto (Philippines): The short comment is, it is never enough.     

    MODERATOR: Minister, do you want to chime in or, Ms. Moroni, or Iyabo on climate change.        

    Ms. Masha (Secretariat): Yes, I will say that the ambition is there. They really want to do a lot. The finance is just not commensurate with the level of ambition, so that is also one area where we have called on them to demonstrate the ambition. Thank you.     

    Mr. Edun (Nigeria): Sorry. If I may, since you asked me.     

    MODERATOR: Please.

    Mr. Edun (Nigeria): The thing I would say on climate change, for a poor country such as Nigeria and others that are actually endowed with fossil fuels in particular, must take a realistic approach to climate change because it is the resources that we have that we must use to industrialize, to modernize our economies while being members of the global fight against climate change. We are signatories to the Paris Accord. We have our target for net zero, and while sticking to those, we must take a realistic view that we need to use our fossil fuels to develop our economies. Thank you.        

    Ms. Moroni (Argentina): The recent issue we had been discussing on G‑24, G‑20, and other forums, the need for development banks to keep in mind their core objective. Then as you mentioned, there is a need to kind of—we do have an ambition, a climate agenda, but we do need to respect the emerging markets’ right to develop first. So, there is a need to—for financing for other development issues that are not directly linked to this, thank you.      

    MODERATOR: Last question to the lady up‑front.       

    QUESTION: Thank you. My question will be to Ms. Director and Mr. Olawale. Earlier on the World Economic Outlook, we were told that inflation is almost won, so I would like to know how the Group of Twenty‑Four is actually interpreting that, especially with the fundamentals in the developed world getting a little bit better; and what are the risks that are posed to the Group of 24. Also, to you, Mr. Recto, you rolled out four key reforms that G‑24 is asking from the World Bank and the IMF. Are you looking at timelines for these reforms? Then over to Nigeria’s Finance Minister and the Second Vice Chair. One of the reforms is heightened development support. That reform, what does it mean for African economies? For example, so I would really like you to take a look at that and perhaps what are the timelines that you are expecting? Is there a Nigerian agenda within these four key reforms?         

    MODERATOR: Thank you so much. Also, I would like to invite Iyabo to address on the reforms of the Bretton Woods institutions as well, but first, the Director or Mr. Edun, would you like to respond on inflation?         

    Mr. Recto (Philippines): On inflation, I think for next year, the global inflation rate will still be relatively high, lower than this year, but something like 5.8 percent, thereabouts. I still think that will be high, and because of that, the interest rate, while it is going down, it remains high. That is why we are also calling for the World Bank to reduce cost of borrowing. This will be very beneficial to the developing economies. On the time frame, maybe Iyabo can elaborate more.              

    Ms. Masha (Secretariat): Yes. Yes, the Bretton Woods initiative itself, the reform, they just started, so now they are in the process of consultations, going around countries, going around regions, so I will say that at a minimum, maybe by next Spring Meeting, they will have an update on where they are in the process and maybe some final decision by the Annual Meetings. In any case, these things have to go through the boards of both the IMF and the World Bank for ratification.        

    MODERATOR: Thank you. Mr. Edun.

    Mr. Recto (Philippines): I think I think around this time last year, we were still dealing with heightened levels of inflation, particularly in the developed countries. That means elevated rates of interest as they put as their number one priority, the fight against inflation and tight monetary policy by the central banks. That has changed. And there is now as we are seeing monetary easing or at least easing of rates of interest by central banks, but that is in the developed world.

    In the developing world, rates are still high and that fight against inflation means that the interest rates also will remain high. But as far as the developed world is concerned, lower interest rates translate to more affordability. Nobody wants to borrow. Nobody likes to borrow. But when it becomes necessary. It is something that must be managed as well as possible. So the first port of call is concessional financing; IDA financing, for instance, from the World Bank. And what the developing world continues to call for is larger sums that can really make a difference, not just to be able to help a country cope with its immediate payment needs, but to have funds to grow the economies. That is what the fight against inflation translates to for the developing countries. Victory therefore or success therefore in the developed world means that they should be able to make more resources available. I must note here that the IMF has reduced their charges. 36 percent reduction in the rates and the excess charges is significant, and it is in the right direction to help developing countries get the resources they need to develop and grow.

    MODERATOR: Thank you so much, Minister and

    Secretariat. Thank you so much for the questions. Unfortunately, we are out of time. Thank you so much again for joining this press conference. The G‑24 communique is being posted on IMF.org and the transcript of this press briefing will be made available later. Have a good rest of your day. Thank you.

    IMF Communications Department
    MEDIA RELATIONS

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    MIL OSI Economics

  • MIL-OSI United Kingdom: Cutting-edge transport projects receive £1.4 million to encourage innovation and deliver growth

    Source: United Kingdom – Executive Government & Departments 2

    Winners of the Transport Research and Innovation Grant (TRIG) will help make travel cleaner, safer and more efficient for everyone in the UK.

    • 32 pioneering projects granted a share of £1.4 million to drive innovation and revolutionise the UK transport sector
    • visionary designs include an air purification product to tackle pollution and a pedestrian management system to enhance road safety
    • ideas will boost economic growth by creating jobs – sparking further innovation and cementing the UK’s position as a global leader in green transport

    Winners of a £1.4 million competition to transform the transport sector, grow the economy and inspire innovation have been announced by the Department for Transport today (23 October 2024).

    Organisations and academics with innovative ideas were able to win up to £45,000 in funding to offer sustainable, forward-thinking alternatives and contribute to the government’s aim of cleaner, greener and more efficient transport networks.

    Over the last decade, the Transport Research and Innovation Grant (TRIG) programme has invested over £15 million to support industries in the pursuit for new technologies and collaborations – helping deliver key economic growth throughout the country.

    This year sought proposals focused on local transport decarbonisation, maritime decarbonisation and emerging technologies such as AI and drones.

    Aviation, Maritime and Security Minister, Mike Kane, said:  

    Innovation is the driving force behind our transport system and these winning projects are leading the charge by creating cutting-edge solutions that could offer so much benefit for all.

    With sustainability at the core of this year’s competition, we’re helping to shape the future of transport – making travel cleaner, safer and more efficient for everyone.

    Among the groundbreaking projects awarded funding through the government’s TRIG is Vox Aeris, with an invention that hopes to use sound waves and music vibrations from a speaker to reduce harmful pollution across transport networks.

    Selene Sari, founder and CEO of Vox Aeris, said: 

    We are beyond excited to be a TRIG 2024 winner. This support will be pivotal for developing our technology, assessing feasibility with refined prototypes and engaging early stakeholders. We look forward to collaborating with Connected Places Catapult and the Department for Transport.

    The financial backing, expertise, and network support we’re receiving will be crucial for us to advance to the next stage. Having such robust support early in our journey will enable us to move faster and connect with networks that would otherwise be challenging to bring together.

    Previous TRIG winners include OpenSpace – a cutting-edge project using digital twinning and AI to tackle rail station disruption. By using special algorithms, it created the world’s first real-time simulated environment of St Pancras station to help operators manage people flow, improve safety and boost customer experience. 

    TRIG has been running for over a decade, funding more than 430 projects that have ranged from better connecting rural communities with a shuttle bus app to trialling the use of hydrogen to make plane and boat journeys greener. 

    Erika Lewis, Chief Executive Officer at Connected Places Catapult, said:

    Innovation in transport can unlock many benefits for society, the economy and the environment. The Transport Research and Innovation Grants programme has been supporting high-potential innovators for a decade, through funding and dedicated business support, helping them realise their commercial potential.

    This year’s TRIG competition drew a fantastic response from innovators, with the ‘critical and emerging technologies’ challenge proving to be especially popular.

    Today, the Aviation, Maritime and Security Minister is at the Transport Research and Innovation Grant Awards in Birmingham to celebrate last year’s successful winners and see firsthand what the funding can achieve.

    See the complete list of TRIG winners for more information.

    Aviation, Europe and technology media enquiries

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    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: UK Development Minister to push for gender equality at World Bank Annuals

    Source: United Kingdom – Executive Government & Departments 3

    Anneliese Dodds to outline priorities for gender equality and announce funding to boost women’s economic and social empowerment during visit to Washington D.C.

    • World’s finance and development ministers gather in Washington D.C. to discuss pressing international development issues at Annual Meetings of the World Bank Group and IMF.
    • UK Development Minister to announce funding to boost women’s economic and social empowerment in speech on priorities for gender equality.
    • UK to send two female governors to the World Bank Group and IMF Annual Meetings for the first time.

    The UK’s Development Minister Anneliese Dodds will arrive at the World Bank Group and IMF Annual Meetings in Washington D.C. today [23 October] for a series of engagements focused on advancing gender equality.

    It will mark the Minister’s first time attending in her capacity as the UK’s Governor to the World Bank Group. Her visit coincides with Chancellor Reeves attending the IMF Annual Meetings, marking the first time for the UK to send two female governors to the Meetings.

    In a speech at the conference tomorrow [24 October], the Minister will outline her priorities for gender equality and announce a £7.5 million investment over the next two years, and continued support beyond that, in the World Bank’s Umbrella Facility for Gender Equality (UFGE). The facility supports the generation of high-quality data and evidence to address gender inequality and boost women’s economic and social empowerment.

    The UFGE, which has received funding from the UK since 2012, has, for example, benefitted half a million women in Rwanda who were found to be losing rights over land due to not having marriage certificates. In Nigeria, the programme funded research on the benefits of cash transfers, which the government used to inform the expansion of its national livelihoods programme, covering more than 4 million vulnerable households.

    The new funding will enable the UK’s support to the UFGE to expand beyond Africa into Asia and the Pacific and support the development of new methods to collect and use gender data, including through the adoption of AI technology.

    The UK’s Development Minister Anneliese Dodds said: 

    My mission is to help create a world free from poverty, on a livable planet, for all. Women and girls are at the heart of this.

    Britain is back with a voice on the world stage. We are playing a leading role with the World Bank to improve the lives of women and girls around the world.

    The funding announced today will deliver projects that will have an enormous impact on the lives and economic situations of women and girls across the globe and drive economic growth.

    This year’s Meetings come as the World Bank Group and IMF celebrate their 80th founding anniversary and will bring together finance and development ministers from all over the world to agree joint approaches to addressing pressing international development issues.

    Minister Dodds’ attendance follows a keynote speech at Chatham House, in which she outlined her vision for a modern approach to international development.

    Over the course of the Annual Meetings, the Minister will also host an event on conflict prevention, bringing together ministers from the Global South, international financial institutions, humanitarian actors, and academics, to discuss how the World Bank Group and IMF can work better in an increasingly fragile world.

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    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Australia: University Chancellors’ Council – 13th National Conference on University Governance

    Source: Australian Ministers for Education

    I acknowledge the Traditional Owners of the land on which the Summit is taking place today, and I pay my respects to elders, past and present.

    I also acknowledge:

    •    John Stanhope AO and all the members of the Organising Committee, including
    •    Terry Moran AC
    •    Peter Varghese AO
    •    John Brumby AO
    •    John Pollaers OAM
    •    And all the other university leaders in the room

    I’m sorry I can’t be there with you. I wish I was.

    Universities are future makers.

    They help build the future that we’re all going to live in.

    Build the workforce we’re going to need.

    But not just that.

    The research that our universities do grapple with the problems of today.

    And the upshot of that is a different world tomorrow.

    Look around and you can see the fingerprints of universities everywhere.

    From environmental and industrial innovations to the medicine we take or the technology we hold in our hands.

    It’s just another way of saying how important our universities are and the work they do.

    Then there’s the change that’s coming at us. That we have to adapt to. Respond to. That we have to be ready for.

    This conference is talking about that.

    And AI is a classic example of it.

    The Accord itself is all about getting us ready for that future. That change that is coming at us.

    A future where more people have a university degree than today.

    Where more people have a university qualification than ever before.

    Where by 2050, 80 per cent of the entire workforce would have a TAFE qualification or a university degree.

    That’s a big change.

    In the 1980s and 1990s, under Bob Hawke and Paul Keating, the number of Australians finishing high school jumped from around 40 per cent to almost 80 per cent.

    In the next 25 years it won’t just be 80 per cent of the workforce who have finished high school, 80 per cent will have gone to TAFE or university as well.

    That’s a big economic and social shift.

    Some of it will happen organically. Think about it.

    The fastest growing jobs in the future will be in areas like health care, teaching, ICT and engineering.

    And it’s often those professions that require university qualifications.

    But that alone is not enough to hit that 80 per cent target.

    We have also got to change.

    What the Accord says is we’ve got to break down that invisible barrier that stops a lot of people from getting a chance to go to university.

    Unless more people from poor backgrounds, more people from the outer suburbs, more people in the regions get a crack at university, then we won’t hit that target.

    That’s obvious just by looking at the raw statistics.

    About one in two young people in their 20s and 30s have a university degree, but not everywhere.  

    Not in the outer suburbs and not in the regions.

    At its core, the Universities Accord is about changing that.

    The first Accord bill is in the Parliament right now.

    It wipes about $3 billion of HECS debt, it creates paid prac, and it massively expands those FEE-FREE courses that act as a bridge between school and uni.

    That’s passed the House and it’s in the Senate.

    It’s just the start.

    The Accord is massive. Implementing it will take more than one budget or one government, but have bitten off a big chunk in this year’s budget.

    29 of the Accord’s 47 recommendations in full or in part.

    That includes a new funding system, needs-based funding and a new Australian Tertiary Education Commission to steer reform over multiple governments.

    And I hope to provide you with more detail on all of that before the end of the year.

    There is also another Accord Bill in the Parliament.

    That’s the one that sets up a National Student Ombudsman.

    An independent body to investigate and resolve disputes and give students a stronger voice when the worst happens.

    It is a necessary response to the terrible and appalling evidence of sexual violence and harassment on campus.

    But it’s not just about that. Its scope will be broad.

    That includes complaints about antisemitism and Islamophobia or any type of racism or discrimination.

    That builds on the work that TEQSA is doing with universities right now.

    The Accord also had a fair bit to say about governance more broadly.

    That’s why Education Ministers have agreed to set up the Expert Council on University Governance.

    It is based on a proposal from the University Chancellors Council.

    It is not intended to be a representative body or a stakeholder forum.

    Its job will really be to provide Ministers with expert and technical governance advice about how to improve university performance.

    There are three areas this Council will focus on:

    1.    Ensuring that universities are good employers providing a supportive workplace—and, importantly, a workplace where staff can have confidence that they will not be underpaid for the important work they do.
    2.    Making sure governing bodies have the right expertise, including in the business of running universities; and, of critical importance,
    3.    Making sure our universities are safe for our students and staff.

    My department is also engaging with the TEQSA to issue new guidance and requirements on workplace obligations for higher education providers.

    The department has also engaged an independent expert to support the National Tertiary Education Union (NTEU), Universities Australia (UA) and the Australian Higher Education Industrial Association (AHEIA) to assist in identification and resolution of priority issues to ensure universities are exemplary employers.

    And we will require universities to provide additional data to the Australian Government on casual staff numbers to increase transparency and understanding of workforce patterns and issues.

    All of these reforms are important to me.

    They are about making our universities as good as they possibly can be.

    Making them better.

    Making them fairer.

    And if we do that our country will be better and fairer too.

    Because the doors of opportunity, that the Prime Minister talks about and you hold in your hands, are opened just a bit wider.

    That’s what’s at stake.

    That’s how important the work you do is.

    Thank you and I hope you have a great conference.

    MIL OSI News

  • MIL-OSI China: New air-cargo route links China’s Shanxi, Kazakhstan’s Almaty

    Source: People’s Republic of China – State Council News

    TAIYUAN, Oct. 22 — A new air freight route officially opened Monday, linking Taiyuan, capital city of north China’s Shanxi Province, and Almaty in Kazakhstan.

    A freighter, loaded with cargo including clothing and daily consumer goods, left Taiyuan Wusu International Airport for Almaty on Monday morning, according to the customs of Taiyuan.

    The round-trip flights will operate twice each week, on Mondays and Fridays. The type of goods transported via the route is expected to be increased in the future.

    The first flight on the route marks the official opening of the air cargo channel connecting Shanxi with the Central Asian country, injecting new impetus into the economic and trade exchanges between the two sides, said the customs.

    MIL OSI China News

  • MIL-OSI Economics: Samsung Unveils Generative Wallpaper, Offering Personalized 4K Images on Its AI TVs

    Source: Samsung

     
    Samsung Electronics today announced the launch of its Generative Wallpaper feature for the 2024 Neo QLED and QLED models, powered by Tizen OS. This new feature leverages AI to create custom 4K images that enhance the TV’s display, offering users a unique way to personalize their viewing experience.
     
    “Generative Wallpaper brings a new dimension of personalization to our customers’ screens, allowing them to customize their TVs in a way that truly reflects their style,” said Cheolgi Kim, Executive Vice President of the Visual Display Business at Samsung Electronics. “As we continue to push the boundaries of AI technology, we look forward to transforming the home entertainment experience and evolving how users interact with their screens.”
     
    Through Generative Wallpaper, Samsung will deliver high-quality visuals that seamlessly integrate with home décor and creating a welcoming and immersive atmosphere. The feature will be available through Samsung’s Ambient Mode, which transforms the TV into a canvas for curated visuals, including useful information like weather updates, news and time. To access the feature, users can simply navigate to the ‘Ambient Mode’ menu, select the button and choose from themes such as ‘Happy Holiday’ or ‘Party.’ Samsung’s advanced AI then provides stunning 4K visuals that harmonize with the user’s home environment.
     
    Generative Wallpaper will debut this month in South Korea, North America and Europe, with a global rollout planned for 2025.
     

     

    MIL OSI Economics

  • MIL-OSI Asia-Pac: Speech by FS at Bloomberg Global Regulatory Forum in New York (English only) (with photos)

    Source: Hong Kong Government special administrative region

         Following is the speech by the Financial Secretary, Mr Paul Chan, at the Bloomberg Global Regulatory Forum in New York, yesterday (October 22, New York time): Mike (Founder of Bloomberg L.P. & Bloomberg Philanthropies, Mr Michael Bloomberg), Mr Cotzias (Global Head of External Relations of Bloomberg, Mr Constantin Cotzias), distinguished guests, ladies and gentlemen,     Good afternoon. I’m pleased to be here, in New York City, in fall. And delighted to hear that baseball, more than politics, is still the talk of the town.      Well, baseball and finance. For that, for hosting today’s Global Regulatory Forum, for consistently driving high-powered discussion on the future of global finance, my thanks to Bloomberg.     Last year’s Forum took place for the first time in Hong Kong, when we discussed how to navigate complexity and unlock opportunities. A year on, many things in the financial world have changed, and I’m pleased to bring you some positive updates about our city.Hong Kong: strong fundamentals     Despite several challenging years, from social violence to the pandemic, Hong Kong is back, back once again with a stable, welcoming and promising business environment.      Our strong fundamentals continue to be internationally recognised. Hong Kong ranks once again among the top three global financial centres, behind only New York and London.      Canada’s Fraser Institute has again ranked Hong Kong the world’s freest economy.      The International Monetary Fund and credit-rating agencies have reaffirmed Hong Kong’s institutional framework, our quality regulation and economic and financial resilience.      These commendations are echoed by the global investor community. Total banking deposits in Hong Kong, for example, have grown 5 per cent, or US$100 billion, this year to date, reaching more than US$2 trillion.      Our asset-and-wealth-management sector is also growing. We are managing over US$4 trillion in assets, and over half of that value was sourced from investors outside Hong Kong and the Chinese Mainland.      Coupled with easing interest rate cycles and the Mainland’s stimulus package to inject liquidity to the banking sector and provide more support to the real estate sector, our stock market has gone on a rally, rising some 15 per cent in the past month or so.       From late September to early October, we have seen strong net buys from American and European investors, constituting some 85 per cent of the buy side by value. And 90 per cent of those investors are long-term fund managers and investment banks.     International investors have good reason to be confident in Hong Kong. Our singular “one country, two systems” arrangement is here to stay, here for the long term.      That clear and compelling commitment has been reiterated, time and again, by President Xi Jinping. Indeed, the arrangement was designed not for short-term expediency but for the long-term interests of our country. It is clear that the Mainland is fully embracing high-level opening up, evident in the conclusions of state and party meetings in Beijing in the past year or so. The Mainland will support Hong Kong in remaining as a “super connector”, to assist in realising the country’s vision.      We can, and will, continue to do just that, thanks to the advantages that define Hong Kong’s international character: our common law tradition, a judiciary that exercises powers independently; the free flow of goods, capital, talent and information; a currency pegged to the US dollar; and business practices that align with the best international standards.     For so long, we have built our success as an international financial, trade and shipping centre on these merits, and they will continue to underpin Hong Kong’s development in the future.      Robust financial regulation     But still, Hong Kong is a small, fully open and externally-oriented economy. That means we are prone to external shocks and volatility. The trials and tribulations in the Asian Financial Crisis in 1998, the Global Financial Crisis of 2008, and the market squeeze during the onset of the COVID pandemic, are good lessons to learn.      Each time we weathered a crisis, we grew more resilient, but the take home message for us is clear: first, we need to identify systemic weaknesses and vulnerabilities, and address them. Second, establish multi-sectoral risk detection and monitoring systems to raise alarm against potential crises. Third, build in a strong buffer to allow us to respond to the unknowns.       This is particularly valid for Hong Kong which implements a linked exchange rate system. Hong Kong dollar is pegged to the US dollar, and therefore we must have sufficient monetary depth to enforce our convertibility undertakings and defend our currency board system. To ensure we have ample liquidity as we need it, we have a foreign exchange reserve of more than US$420 billion at our disposal.      In light of rising geopolitical and economic challenges, we’ve established a high-level, cross-market, co-ordinated and round-the-clock monitoring mechanism. It covers all sectors of the financial market and gathers all financial regulators, allowing us to detect looming risks.     I’m glad to report that over the past few years, our financial markets have been functioning in an orderly manner, despite volatility that might appear from time to time. The role of regulators in market development     Good regulation, of course, is only half the story. For the ultimate goal of regulation is to promote the healthy and sustainable development of the financial market. Good market development, in my view, is equally important, and it is the best means to future-proof our financial systems.      This requires the regulatory regime be agile and forward-looking. This requires the regime to respond to market and economic changes, embrace and empower technological innovation, and create the conditions for markets to thrive.      It’s why in Hong Kong, regulators have been given a dual mandate, serving both as regulators and market enablers.      Our listing regime reform is a good case in point. Back in 2018, the Government and the financial regulators made bold decisions to allow pre-profit or pre-revenue biotech companies, and new economy companies with weighted voting rights structures, to list on our stock exchange. The idea was met with doubt initially. But today the facts speak for themselves: new economy companies constitute only 13 per cent of the total number of listed companies, but their capitalisation accounts for 26 per cent. These reforms have not only broadened our market’s appeal but also put Hong Kong as a leading listing hub for innovative enterprises.     Reform is an ongoing process. For instance, last year we introduced a new Chapter in our listing rules to facilitate the listing of specialist technology companies.     Looking ahead, two key areas will be vital for Hong Kong’s financial future: enhancing our financial connectivity with the world, and embracing innovation.Enhancing Connectivity      Connectivity has always been the trump card of Hong Kong – although “trump” may be a word that you may now love or hate. For long, we have been the premier listing platform for Mainland companies going global. The launch of the “Stock Connect” 10 years ago was a landmark in forging close connectivity between the two markets. Its very significance was to allow foreign investors to make use of the Hong Kong Stock Exchange, and all the regimes, regulation and practices with which they are familiar, to access the Mainland’s stock market. Today, over 70 per cent of the A-share holdings by foreign investors were acquired through the Stock Connect. The Scheme has been continuously expanding, now covering bonds, ETFs, derivatives such as swap contracts.      Just in April this year, the China Securities Regulatory Commission announced four further measures to expand the Connect Schemes, including enlarging the scope of ETFs Connect, covering REITs in Stock Connect, and more. Meanwhile, it also made clear that they will support leading Mainland companies to list on the Hong Kong Stock Exchange. Obviously our IPO market has seen a rebound. In the first nine months this year, we raised more than US$7.1 billion, ranking fourth globally thus far.       Looking ahead, Hong Kong is also strengthening connections with other markets in the ASEAN countries, the Middle East and the Belt and Road countries. For instance, next week, we will be seeing the launch of two ETFs on the Saudi Stock Exchange investing in the Hong Kong Stock market.     So Hong Kong’s role as a connector of markets will only grow stronger. And with this, our financial regulators will continue to make it their strategic priorities to enhance collaboration with regulatory counterparts for timely and effective responses. Embracing innovation      Ladies and gentlemen, another area essential to our future is innovation.      In Hong Kong, we’re taking a balanced regulatory approach to enable financial innovation.      For example, last year, we introduced a regulatory regime for digital assets, along the principle of “same activity, same risks, same regulation”. The key feature is to put in place guardrails for investor protection, while enabling financial innovation to thrive in a responsible and sustainable manner.      So far, three firms have been issued with virtual asset trading platform licences, and we are expecting more in the next couple of months.      Besides, legislation will be introduced later this year for the regulation of stablecoins.      Then there’s also AI (artificial intelligence), which is reshaping the financial services industry, driving new products and services that enhance efficiency, security and customer experience.      Like blockchain and other new technologies, we must address the potential challenges of AI, such as cybersecurity, data privacy and the protection of intellectual property rights.      To that end, we will publish a policy statement next week. We will work to provide a clear supervisory framework and create a conducive and sustainable market environment.      Concluding remarks     Ladies and gentlemen, alongside changing global financial landscape comes far-reaching opportunity. Judging from Hong Kong’s experience, capturing such opportunities calls for the mentality of policy makers to focus not just on regulation compliance but also market development. For some, this may require a paradigm shift. But in our view, it will be an essential path to future-proof our financial markets, ensuring their long-term sustainable growth.      Finally, I wish to convey my thanks again to Bloomberg for inviting me to this Forum. I wish you all the best of business and health in the coming year. Thank you.

    MIL OSI Asia Pacific News

  • MIL-OSI Australia: DNA breakthrough accelerates biosecurity response

    Source: New South Wales Department of Primary Industries

    23 Oct 2024

    In a world-first development for biosecurity management, the NSW Department of Primary Industries and Regional Development (DPIRD) has used a new rapid DNA sequencing technology which can speed up data analysis of pests, weeds and diseases.

    The technique could change how we monitor and manage diseases and pests at national and international levels to ensure the safety of our food supplies and the protection of our environment.

    NSW DPIRD scientists first used the innovative approach to accelerate species identification rates during the NSW varroa mite emergency response.

    NSW DPIRD biosecurity molecular epidemiologist, Daniel Bogema, said rapid and accurate identification of the species as Varroa destructor was critical.

    “The technology delivered sharper insights for surveillance and tracking during the early stages of the biosecurity operation and streamlined the process by isolating longer fragments of varroa DNA using an advanced gene editing technique called CRISPR,” Dr Bogema said.

    “Our team at the Elizabeth Macarthur Agricultural Institute (EMAI) was able to sequence DNA in a Nanopore sequencer, a portable device which can be used in the field.

    “Time is critical in an emergency response and the new technique delivered 12 times more data in a 24-hour period compared with conventional PCR methods.”

    This valuable investment in research and new technology allows NSW DPIRD to continue to deliver state-of-the-art diagnostic services to support primary industries.

    The rapid genetic diagnostic methods developed by the team can be used to monitor and identify any number of pests, weeds or diseases.

    NSW DPIRD scientist, Gus McFarlane, said the EMAI team sees broad applications for the technique in the ongoing management and surveillance of biosecurity and food safety threats.

    “This technique is simpler and quicker to design and validate than current multiplexed PCR tests and is now being used to study cattle diseases,” Dr McFarlane said.

    “NSW DPIRD’s findings contribute valuable insights to the future development of CRISPR-targeted Nanopore sequencing.”

    More information about the research is available in a recently published paper, Frontiers | Amplicon and Cas9-targeted nanopore sequencing of Varroa destructor at the onset of an outbreak in Australia (frontiersin.org)

    Media contact: pi.media@dpird.nsw.gov.au

    MIL OSI News

  • MIL-Evening Report: Apia Ocean Declaration to be ‘crown jewel’ of CHOGM climate ‘fight back’

    By Sialai Sarafina Sanerivi in Apia

    The Ocean Declaration that will be agreed upon at the Commonwealth Heads of Government Meeting (CHOGM) this week will be known as the Apia Ocean Declaration.

    In an exclusive interview with the Samoa Observer, Commonwealth Secretary-General Patricia Scotland said members were in a unique position to bring their voices together for the oceans, which have long been neglected.

    “The Apia Ocean Declaration aims to address the rising threats to our ocean faces, especially from climate change and rising sea levels,” she said.


    Commonwealth pushes for ocean protection with historic Apia Ocean Declaration. Video: Samoa Observer

    Scotland, reflecting on her tenure as Secretary-General, noted the privilege of serving the Commonwealth, a diverse family of 56 countries comprising 2.7 billion people.

    “I am very much the child of the Commonwealth. With 60 percent of our population under 30 years, we must prioritise their future.”

    Scotland reflected that upon assuming her role, she recognised immediately that addressing climate change would be a key priority for the Commonwealth.

    “Why? Because we have 33 small states, 25 small island states and we were the ones who were really suffering this badly,” she said.

    Pacific a ‘big blue ocean state’
    “We also knew in 2016 that nobody was looking at the oceans. Now, the Pacific is a big blue ocean state.

    “But it’s one of the most under-resourced elements that we have. And yet, look at what was happening. The hurricanes and the cyclones were getting bigger and bigger.

    “Why? Because our ocean had absorbed so much of the heat, so much of the carbon, and now it was starting to become saturated. So before, our ocean acted as a coolant. The cyclone would come, the hurricane would come, they’d pass over our cool blue water, and the heat would be drawn out.”

    The Apia Ocean Declaration emerged from a pressing need to protect the oceans, especially given the devastating impact of climate change on coastal and island nations.

    “We realised that while many discussions were happening globally, the oceans were often overlooked,” Scotland remarked.

    “In 2016, we recognised the necessity for collective action. Our oceans absorb much of the carbon and heat, leading to increasingly severe hurricanes and cyclones.”

    Scotland has spearheaded initiatives that brought together oceanographers, climatologists, and various stakeholders.

    Commonwealth Secretary-General Patricia Scotland . . . discussing this week’s planned Apia Ocean Declaration at CHOGM, highlighting the urgent need for global action to protect oceans. Image: Junior S. Ami/Samoa Observer

    Worked in silos ‘for too long’
    “We worked in silos for too long. It was time to unite our efforts for the ocean’s health.

    “That’s when we realised that nobody had their eye on our oceans, but of the 56 Commonwealth members, many of us are island states, so our whole life is dependent on our ocean. And so that’s when the fight back happened.”

    This collaboration resulted in the establishment of the Commonwealth Blue Charter, a significant framework focused on ocean conservation.

    “Fiji’s presidency at the UN Oceans Conference was a turning point. Critics said it would take years to establish an ocean instrument, but we achieved it in less than ten months.”

    “We are not just talking; we are implementing solutions.”

    Scotland also addressed the financial challenges faced by many small island states, particularly regarding climate funding.

    “In 2009, $100 billion was promised by those who had been primarily responsible for the climate crisis, to help those of us who contributed almost nothing to get over the hump.

    Hard for finance applications
    “But the money wasn’t coming. And in those days, many of our members found it so hard to put those applications together.”

    To combat this issue, the Commonwealth established a Climate Finance Access Hub, facilitating over $365 million in funding for member states with another $500 million in the pipeline.

    “But this has caused us to say we have to go further,” she added.

    “We’re using geospatial data, we have to fill in the gaps for our members who don’t have the data, so we can look at what has happened in the past, what may happen in the future, and now we have AI to help us do the simulators.

    “The Ocean Ministers’ Conference highlighted the importance of ensuring that countries at risk of disappearing under the waves can maintain their maritime jurisdiction,” Scotland asserted.

    “The thing that we thought was so important is that those countries threatened with the rising of the sea, which could take away their whole island, don’t have certainty in terms of that jurisdiction. What will happen if our islands drop below the sea level?

    “And we wanted our member states to be confident that if they had settled their marine boundaries, that jurisdiction would be set in perpetuity. Because that was the biggest guarantee; I may lose my land, but please don’t tell me I’m going to lose my ocean too.

    Target an ocean declaration
    “So that was the target for the Ocean Ministers’ Conference. And out of that came the idea that we would have an ocean declaration.

    “It is that ocean declaration that we are bringing here to Samoa. And the whole poignancy of that is Samoa is the first small island state in the Pacific ever to host CHOGM. So wouldn’t it be beautiful if out of this big blue ocean state, this wonderful Pacific state, we could get an ocean declaration which could in the future be able to be known as the Apia Ocean Declaration? Because we would really mark what we’re doing here.

    “What the Commonwealth has been determined to do throughout this whole period is not just talk, but take positive action to help our members not only just to survive, but to thrive.

    “And if, which I hope we will, we get an agreement from our 56 states on this ocean declaration, it enables us to put the evidence before everyone, not only to secure what we need, but then to say 0.05 percent of the money is not enough to save our oceans.

    “Oceans are the most underfunded area.

    “I hope that all the work we’ve done on the Universal Vulnerability Index, on the nature of the vulnerability for our members, will be able to justify proper money, proper resources being put in.

    “And you know what’s happening in this area; our fishermen are under threat.

    “Our ability to use the oceans in the way we’ve used for millennia to feed our people, support our people, is really under threat. So this CHOGM is our fight back.”

    As the meeting progresses, the emphasis remains on achieving consensus among the 56 member states regarding the Apia Ocean Declaration.

    Republished from the Samoa Observer with permission.

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI United Nations: Human Rights Council Concludes Fifty-Seventh Regular Session after Adopting 37 Resolutions and One Statement by the President

    Source: United Nations – Geneva

    Council Extends Mandates of Nine Country and One Thematic Mandate Holders

    The Human Rights Council today concluded its fifty-seventh regular session after adopting 37 resolutions and one Statement by the President, in which it, among others, extended the mandates of nine country and one thematic mandate holders.

    The Council extended the mandate of the Office of the High Commissioner for Human Rights on promoting reconciliation, accountability and human rights in Sri Lanka under agenda item two.

    It extended for a period of one year the mandates of the independent international fact-finding mission for the Sudan under agenda item two; of the Special Rapporteur on the situation of human rights in Afghanistan, the Special Rapporteur on the situation of human rights in the Russian Federation, and the Special Rapporteur on the situation of human rights in Burundi, under agenda item four; and of the Independent Expert on the situation of human rights in Somalia, the Team of International Experts on the Democratic Republic of the Congo, and the Independent Expert on the situation of human rights in the Central African Republic under agenda item 10.

    Under agenda item four, the mandate of the independent international fact-finding mission on the Bolivarian Republic of Venezuela was extended for a period of two years. 

    The Council also decided to extend, for a period of three years, the mandate of the Special Rapporteur on the promotion and protection of human rights in the context of climate change.

    Further resolutions adopted concerned the thirtieth anniversary of the Beijing Declaration and Platform for Action; the role of good governance in the promotion and protection of human rights; countering cyberbullying; promotion of a democratic and equitable order; the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination; social reintegration of persons released from detention and persons subjected to non-custodial measures; the World Programme for Human Rights Education: the plan of action for the fifth phase; and on terrorism and human rights.

    Other resolutions concerned local government and human rights; the human rights to safe drinking water and sanitation; the human rights of migrants; human rights and indigenous peoples; promoting accessibility for the full enjoyment of all human rights by all; equal participation in political and public affairs; the elimination of domestic violence; the right to development; the situation of human rights in the Syrian Arab Republic; national human rights institutions; education as a tool to prevent racism, racial discrimination, xenophobia and related intolerance; from rhetoric to reality: a global call for concrete action against racism, racial discrimination, xenophobia and related intolerance; technical assistance and capacity-building to address the human rights implications of the nuclear legacy in the Marshall Islands; biodiversity and human rights; promotion, protection and enjoyment of human rights on the Internet; and youth and human rights.

    Resolutions on the enhancement of technical cooperation and capacity-building in the field of human rights; cooperation with Georgia; and technical assistance and capacity-building for Yemen in the field of human rights were also adopted.

    The President’s Statement adopted concerned the report of the Advisory Committee on its thirty-first session. 

    During the session, the Council adopted the final outcomes of the Universal Periodic Review of 14 States, namely those of New Zealand, Afghanistan, Chile, Cyprus, Viet Nam, Yemen, Vanuatu, North Macedonia, Comoros, Slovakia, Eritrea, Uruguay, the Dominican Republic and Cambodia.

    At the end of the session, the Council appointed four Special Procedures mandate holders: the Special Rapporteur on the situation of human rights in Belarus, Nils Muižnieks (Latvia); for the Working Group of Experts on People of African Descent, member from Western European and other States, Isabel Mamadou (Spain); for the Working Group on Enforced or Involuntary Disappearances, member from Asia-Pacific States, Mohammed Al-Obaidi (Iraq); and for the Working Group on the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination, member from Latin American and Caribbean States, Andrés Macias Tolosa (Colombia). 

    The Council also elected four members of its Advisory Committee: Frans Viljoen (African States), Miznah O.Alomair (Asia-Pacific States), Alessandra Devulsky (Latin American and Caribbean States), and Vassilis Tzevelekos (Western Europe and other States).

    Darius Staniulis, Vice-President and Rapporteur of the Human Rights Council, said over the past five weeks, the Council completed its extensive programme of work.  It held 23 interactive dialogues with Special Procedures mandate holders and expert mechanisms; nine interactive dialogues with the High Commissioner, Deputy High Commissioner, Assistant Secretary-General and other Office of the High Commissioner for Human Rights Representatives; five dialogues with international investigative mechanisms; five enhanced interactive dialogues; six panel discussions; and nine general debates.  The Council also adopted 14 outcomes of the Universal Periodic Review.  Finally, the Council completed the adoption of 37 resolutions and one President’s Statement across a wide range of issues.

    The Council adopted the draft report of the fifth-seventh session ad referendum.

    Omar Zniber, President of the Human Rights Council, in his concluding remarks,

    extended his deepest gratitude to the members of the Bureau, the Secretariat and all other United Nations staff for their cooperation, support and dedication during the session.  Mr. Zniber said the fifty-seventh session had been a success and was an example of multilateralism.

    The fifty-eighth regular session of the Human Rights Council is scheduled to be held from 24 February to 4 April 2025.

    Action on a Statement by the President Under Agenda Item One on Organizational and Procedural Matters

    In a Statement by the President (A/HRC/57/L.13) on the Report of the Advisory Committee, adopted without a vote, the Council takes note of the report of the Advisory Committee on its thirty-first session.

    Action on Resolutions Under Agenda Item Two on the Annual Report of the United Nations High Commissioner for Human Rights and Reports of the Office of the High Commissioner and the Secretary-General 

    In a resolution (A/HRC/57/L.1) on Promoting reconciliation, accountability and human rights in Sri Lanka, adopted without a vote, the Council decides to extend the mandate of the Office of the United Nations High Commissioner for Human Rights and all work requested of it by the Council in its resolution 51/1, and requests the Office to present an oral update to the Council at its fifty-eighth session and a comprehensive report on progress in reconciliation, accountability and human rights in Sri Lanka at its sixtieth session, to be discussed in an interactive dialogue.

    In a resolution (A/HRC/57/L.22) on Responding to the human rights and humanitarian crisis caused by the ongoing armed conflict in the Sudan, adopted by a vote of 23 in favour, 12 against and 12 abstentions, the Council reiterates its call for an immediate and complete ceasefire by all parties, without preconditions, and a negotiated and peaceful resolution to the conflict on the basis of inclusive, Sudan-owned and Sudan-led dialogue; decides to extend the mandate of the independent international fact-finding mission for the Sudan for a period of one year; requests the fact-finding mission to provide the Council with an oral update on its work at its fifty-ninth session and a comprehensive report at its sixtieth session, to be followed by an interactive dialogue, and to submit the report to the General Assembly at its eightieth session.

     In a resolution (A/HRC/57/L.24) on the Situation of human rights in Afghanistan, adopted without a vote, the Council decides to extend the mandate of the Special Rapporteur on the situation of human rights in Afghanistan for a period of one year, and requests the Special Rapporteur to present a report to the Council at its fifty-eighth session, including a separate study on the so-called “Law on propagation of virtue and prevention of vice”, to provide an oral update to the Council at its sixtieth session and to present a report to the General Assembly at its eightieth session; requests the Special Rapporteur to prepare a report on access to justice and protection for women and girls…and to present it to the Council at its fifty-ninth session, to be followed by an enhanced interactive dialogue; and also requests the Office of the High Commissioner to present, during an enhanced interactive dialogue at the sixtieth session of the Council, a comprehensive report, including a mapping of policies and practices, edicts and so-called laws by the Taliban that impair the enjoyment of human rights; and decides to remain seized of the matter.

    Action on Resolutions Under Agenda Item Three on the Promotion and Protection of All Human Rights, Civil, Political and Cultural Rights, Including the Right to Development 

    In a resolution (A/HRC/57/L.2) on Marking the thirtieth anniversary of the Beijing Declaration and Platform for Action, adopted without a vote , the Council decides to convene, during the high-level segment at its fifty-eighth session, a high-level panel discussion to commemorate the thirtieth anniversary of the Fourth World Conference on Women; invites the President of the Human Rights Council to consider the theme “Thirtieth anniversary of the Beijing Declaration and Platform for Action” for the annual high-level panel discussion on human rights mainstreaming, to be held at the fifty-eighth session of the Council; and also requests the High Commissioner to prepare a summary report on the panel discussion.

    In a resolution (A/HRC/57/L.5) on the Role of good governance in the promotion and protection of human rights, adopted without a vote, the Council requests the Human Rights Council Advisory Committee to prepare a study on the impact of artificial intelligence systems on good governance…highlighting good practices around the globe on the ways to develop, deploy, use and govern artificial intelligence systems, and to present the study to the Human Rights Council at its sixty-second session.

    In a resolution (A/HRC/57/L.7) on Countering cyberbullying, adopted without a vote, the Council decides to include the topic of countering cyberbullying against persons with disabilities in the context of its next annual interactive debate on the rights of persons with disabilities, to be held at its fifty-eighth session; requests the Office of the High Commissioner for Human Rights to prepare a report … on countering cyberbullying against older persons, and to present the report to the Council at its sixty-second session; and decides to remain seized of the matter.

    In a resolution (A/HRC/57/L.9) on the Promotion of a democratic and equitable international order, adopted by a vote of 27 in favour, 15 against and 5 abstentions, the Council calls upon States and the United Nations system to minimise the adverse impact of multiple interrelated global crises, including the COVID-19 pandemic, through the strengthening and enhancement of international cooperation; requests the High Commissioner for Human Rights to continue to provide all the human and financial resources necessary for the effective fulfilment of the mandate by the Independent Expert; and invites the Independent Expert to study and present concrete measures that can be adopted by States and international institutions to contribute to the promotion of a democratic and equitable international order and the transformation of the international financial architecture, in close cooperation with relevant stakeholders from all regions.

    In a resolution (A/HRC/57/L.10) on the Use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination, adopted by a vote of 29 in favour, 14 against and 4 abstentions, the Council urges once again all States to exercise the utmost vigilance against the threat posed by the activities of mercenaries; and requests the Working Group on the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination to continue the work already carried out by previous mandate holders on the strengthening of international law and the international legal framework for the prevention and sanction of the recruitment, use, financing, arming and training of mercenaries, and to study and identify new sources and causes, emerging issues, manifestations and trends.

    In a resolution (A/HRC/57/L.17/Rev.1) on Social reintegration of persons released from detention and persons subjected to non-custodial measures, adopted without a vote, the Council requests the Office of the High Commissioner for Human Rights to prepare a comprehensive study, with practical recommendations on human rights and the social reintegration of persons released from detention and persons subjected to non-custodial measures, based on wide consultations with key stakeholders, and to present the study, accessible to persons with disabilities, to present to the Council at its sixtieth session.

    In a resolution (A/HRC/57/L.21) on the World Programme for Human Rights Education: the plan of action for the fifth phase, adopted without a vote, the Council reaffirms the continuation of the World Programme on Human Rights Education and launches its fifth phase, for the period 2025-2029; and decides to convene at its sixty-third session a high-level panel discussion to mark the fifteenth anniversary of the United Nations Declaration on Human Rights Education and Training, further decides that the discussion will be fully accessible to persons with disabilities, and requests the Office of the High Commissioner to prepare a summary report of the discussion and to submit it to the Council by its sixty-fourth session. 

    In a resolution (A/HRC/57/L.3) on Terrorism and human rights, adopted without a vote, the Council calls upon States to ensure that any measure taken to counter terrorism and violent extremism conducive to terrorism complies with international law; invites the Special Rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism to pay attention to the negative effect of terrorism on the enjoyment of human rights and fundamental freedoms, and to make recommendations in this regard; and decides to remain seized of this matter.

    In a resolution (A/HRC/57/L.6) on Local government and human rights, adopted without a vote, the Council requests the Office of the High Commissioner for Human Rights to convene a one-day panel discussion … prior to the sixtieth session of the Council, to exchange and review the best practices of States, local governments and other relevant stakeholders in overcoming the various challenges that local governments face in promoting and protecting human rights; also requests the Office of the High Commissioner to prepare a report … in which it compiles and analyses the best practices of States, local governments and other relevant stakeholders in overcoming the various challenges that local governments face in promoting and protecting human rights, taking into account the results of the panel, and to present the report to the Council at its sixty-third session. 

    In a resolution (A/HRC/57/L.23/Rev.1) on the Human rights to safe drinking water and sanitation, adopted without a vote, the Council decides to convene, at its fifty-ninth session, a panel discussion on the realisation of the human rights to safe drinking water and sanitation, and also decides that the discussion shall be fully accessible to persons with disabilities, including through the provision of hybrid modalities; and requests the High Commissioner for Human Rights to prepare a summary report on the panel discussion and to present it to the Council at its sixty-first session. 

    In a resolution (A/HRC/57/L.27) on the Human rights of migrants, adopted without a vote, the Council requests the Office of the High Commissioner to prepare a study on human rights monitoring in the context of migration, including at international borders, in consultation with States and other relevant stakeholders, and to submit the study to the Council before its sixtieth session; to convene a one-day intersessional panel discussion, accessible to persons with disabilities, and with appropriate gender representation, on measures to prevent, counter and address dehumanising and harmful narratives about migrants and migration, hate speech, xenophobia and related forms of intolerance against migrants; to ensure the meaningful participation of migrants and their family members; and to prepare a summary report on the panel discussion and the recommendations resulting from it, and to submit the report to the Council at its sixty-second session and to the General Assembly at its eighty-first session; and decides to remain seized of the matter. 

    In a resolution (A/HRC/57/L.29/Rev.1) on Human rights and Indigenous Peoples, adopted without a vote, the Council decides that the theme of the annual half-day panel discussion on the rights of Indigenous Peoples, to be held during the sixtieth session of the Council, will be the rights of Indigenous Peoples in the context of a just transition to sustainable energy systems, including in relation to critical minerals, and requests the Office of the High Commissioner to encourage and facilitate the participation of Indigenous women and youth in the panel, to make the discussion fully accessible to and inclusive for persons with disabilities, and to prepare a summary report on the discussion for submission to the Council prior to its sixty-second session; and invites the General Assembly to consider holding a high-level plenary meeting on the occasion of the twentieth anniversary of the United Nations Declaration on the Rights of Indigenous Peoples, during its eighty-second session, and to evaluate the implementation of the outcome document of the World Conference on Indigenous Peoples.

    In a resolution (A/HRC/57/L.33) on Promoting accessibility for the full enjoyment of all human rights by all, adopted without a vote (as orally revised), the Council invites the Office of the High Commissioner for Human Rights to continue to provide technical assistance and capacity-building support to States upon their request in developing and implementing policies and programmes on accessibility, to continue to share its expertise with the relevant intergovernmental organizations and United Nations agencies, funds and programmes and to assist the relevant special procedure mandate holders and treaty bodies to integrate the view of accessibility for all from the perspective of the full enjoyment of all human rights by all into their work in close consultation with the relevant stakeholders.

    In a resolution (A/HRC/57/L.34) on the Equal participation in political and public affairs, adopted without a vote, the Council calls upon all States to enhance the political participation of all women, and to address violence against women participating in political and public affairs; and requests the Office of the High Commissioner for Human Rights to continue its dissemination and promotion of the guidelines on the effective implementation of the right to participate in public affairs … and to prepare, in consultation with States and all other relevant stakeholders, a follow-up report on good practices and challenges that States face when using the guidelines, with a particular focus on participation in elections, and to present the report to the Council at its sixty-third session.

    In a resolution (A/HRC/57/L.35/Rev.1) on the Elimination of domestic violence, adopted without a vote (as orally revised), the Council decides to convene an intersessional panel discussion on the intensification of efforts to prevent and eliminate domestic violence, before its sixty-first session, and requests the Office of the United Nations High Commissioner for Human Rights to organise the panel discussion … and requests the Office of the High Commissioner to prepare a comprehensive report … on how to address structural and underlying causes and risk factors to prevent domestic violence, in consultation with States and all relevant stakeholders, and to present the report to the Council at its sixty-second session.

    In a resolution (A/HRC/57/L.19) on the Right to development, adopted by a vote of 29 in favour, 14 against and 4 abstentions, the Council requests the High Commissioner for Human Rights to continue to submit to the Council an annual report on the activities of the Office of the High Commissioner, including on inter-agency coordination within the United Nations system that has direct relevance to the realisation of the right to development; requests the Special Rapporteur and the members of the Expert Mechanism to participate in relevant international dialogues and policy forums relating to the implementation of the 2030 Agenda; requests the Office of the High Commissioner to organise the next biennial panel discussion on the right to development, to be held at its sixty-third session, in a format that is fully accessible to persons with disabilities, including sign language interpretation; and also requests the Office to prepare a report on the panel discussion and to submit it to the Council at its sixty-sixth session. 

    In a resolution (A/HRC/57/L.26) on Biodiversity and human rights, adopted without a vote, the Council requests the High Commissioner for Human Rights to conduct a global analytical study on the implementation of a human-rights based approach into the goals and targets of the Kunming-Montreal Global Biodiversity Framework, to be submitted to the Council at its sixty-first session; and encourages the Office of the High Commissioner to cooperate with other relevant United Nations organizations and bodies, as well as with Indigenous Peoples, people of African descent and groups in vulnerable situations on advancing human rights-based biodiversity action. 

    In a resolution (A/HRC/57/L.28) on the Promotion, protection and enjoyment of human rights on the Internet, adopted without a vote (as orally revised), the Council calls upon all States to accelerate efforts to bridge digital divides, including the gender digital divide, and to take the necessary and appropriate measures to promote free, open, interoperable, reliable, accessible and secure access to the Internet; and requests the Office of the High Commissioner for Human Rights to prepare a report on a human rights approach to meaningful connectivity and to overcoming digital divides, including by addressing threats to individuals’ access to the Internet, and to present it to the Council at its sixty-second session, to be followed by an interactive dialogue. 

    In a resolution (A/HRC/57/L.30) on Youth and human rights, adopted without a vote, the Council decides that the theme of the next biennial panel discussion, to be held during the sixtieth session of the Council, will be the role of youth in fostering peaceful societies and creating an enabling environment for the enjoyment of human rights by all, and requests the Office of the High Commissioner to organise the panel discussion following consultations with youth and youth-led organizations and to prepare a summary report on the panel discussion for consideration by the Council at its sixty-first session; and requests the Office of the High Commissioner, in consultation with States and relevant stakeholders, to conduct a detailed study on the impact of mental health challenges on the enjoyment of human rights by young people and to submit the study to the Council for consideration prior to its sixty-third session. 

    Before the resolution was adopted, the Council took action on and rejected amendment L.39.

    In a resolution (A/HRC/57/L.31/Rev.1) on the Mandate of the Special Rapporteur on the promotion and protection of human rights in the context of climate change, adopted without a vote (as orally revised), the Council decides to extend for a period of three years the mandate of the Special Rapporteur on the promotion and protection of human rights in the context of climate change under the same terms as provided for by the Council in its resolution 48/14; and requests the Special Rapporteur to report annually on the implementation of the mandate to the Council and the General Assembly in accordance with their programmes of work.

    Action on Resolutions Under Agenda Item Four on Human Rights Situations that Require the Council’s Attention 

    In a resolution (A/HRC/57/L.4) on the Situation of human rights in the Russian Federation, adopted by a vote of 20 in favour, 8 against and 19 abstentions, the Council decides to extend the mandate of the Special Rapporteur on the situation of human rights in the Russian Federation as defined by the Council in its resolution 54/23 for a period of one year, and requests the mandate holder to … present a comprehensive report to the Council at its sixtieth session and to the General Assembly at its eightieth session; and calls upon the Russian authorities to establish full and non-selective engagement with all United Nations human rights mechanisms, and to refrain from all forms of intimidation and reprisal against persons and associations for their cooperation with United Nations human rights mechanisms. 

    In a resolution (A/HRC/57/L.11) on the Situation of human rights in the Syrian Arab Republic, adopted by a vote of 26 in favour, 4 against and 17 abstentions, the Council demands that all parties to the conflict in the Syrian Arab Republic immediately comply with their respective obligations under international humanitarian law and international human rights law, and emphasises the need to ensure that all those responsible for such violations and abuses are held to account and that civilians are protected; and demands that the Syrian authorities cooperate fully with the Council and the Independent International Commission of Inquiry on the Syrian Arab Republic by granting the Commission immediate, full and unfettered access throughout the Syrian Arab Republic; demands that all parties to the conflict maintain rapid, unhindered, safe and sustainable humanitarian access and ensure that humanitarian assistance reaches its intended recipients.

    In a resolution (A/HRC/57/L.12) on the Situation of human rights in Burundi, adopted by a vote of 22 in favour, 10 against and 15 abstentions, the Council strongly condemns all human rights violations and abuses committed in Burundi; decides to extend the mandate of the Special Rapporteur on the situation of human rights in Burundi for a further period of one year; and requests the Special Rapporteur to present to the Human Rights Council, at its fifty-ninth session, an oral update on the situation of human rights in Burundi, and also to submit to the Council, at its sixtieth session, and to the General Assembly, at its eightieth session, a comprehensive report.

    In a resolution (A/HRC/57/L.8) on the Situation of human rights in the Bolivarian Republic of Venezuela, adopted by a vote of 23 in favour, 6 against and 18 abstentions (as orally revised), the Council decides to extend for a period of two years the mandate of the independent international fact-finding mission on the Bolivarian Republic of Venezuela to enable the mission to continue to investigate gross violations of human rights committed since 2014, with a particular focus on the situation of human rights in the lead-up to, during and after the 2024 presidential elections, and on the violence by armed individuals known as colectivos; and urges the Bolivarian Republic of Venezuela to resume cooperation in a full manner with the Office of the High Commissioner for Human Rights and the fact-finding mission. 

    Before the resolution was adopted, the Council took action on and rejected amendments L.40, L.41, L.42, L.43 and an oral amendment.

    Action on a Resolution Under Agenda Item Eight on Follow-up and Implementation of the Vienna Declaration and Programme of Action

    In a resolution (A/HRC/57/L.16) on National human rights institutions, adopted without a vote (as orally revised), the Council requests the Secretary-General and the High Commissioner for Human Rights to provide the Office of the High Commissioner with the financial and human resources necessary for the servicing of the sessions of the Subcommittee on Accreditation of the Global Alliance of National Human Rights Institutions; and requests the Secretary-General to submit to the Council, at its sixty-third session, a report on the implementation of the present resolution … and a report on the activities of the Global Alliance of National Human Rights Institutions in accrediting national institutions in compliance with the Paris Principles.         

    Action on Resolutions Under Agenda Item 9 on Racism, Racial Discrimination, Xenophobia and Related Forms of Intolerance, Follow-Up to and Implementation of the Durban Declaration and Programme of Action

    In a resolution (A/HRC/57/L.25) on Education as a tool to prevent racism, racial discrimination, xenophobia and related intolerance, adopted without a vote (as orally revised), the Council urges States, in particular, to adopt and implement laws, policies and programmes that prohibit and combat discrimination on the basis of race, colour, descent or national or ethnic origin, at all levels of education, both formal and non-formal; and requests the High Commissioner for Human Rights to submit to the Council at its sixty-third session a comprehensive report, accessible to persons with disabilities, including in an accessible and easy to read format, analysing relevant education-related practices and measures to prevent racism, racial discrimination, xenophobia and related intolerance, with input from all relevant stakeholders. 

    In a resolution (A/HRC/57/L.36/Rev.1) on From rhetoric to reality: a global call for concrete action against racism, racial discrimination, xenophobia and related intolerance, adopted by a vote of 30 in favour, 5 against and 12 abstentions, the Council decides that the Chair-Rapporteur of the Ad Hoc Committee on the Elaboration of Complementary Standards to the International Convention on the Elimination of All Forms of Racial Discrimination may request that the annual session of the Ad Hoc Committee be split into two full one-week segments; requests the High Commissioner for Human Rights to facilitate the interactive participation of six legal experts in one of the two full one-week segments of the fifteenth and sixteenth sessions of the Ad Hoc Committee, to be held in 2025 and 2026 respectively; requests the Chair-Rapporteur of the Ad Hoc Committee to present in person a progress report to the General Assembly at its eightieth session, and to participate in the interactive dialogue and carry out consultations to continue progress in the elaboration of complementary standards to the Convention; reiterates its decision to request the Group of Independent Eminent Experts on the Implementation of the Durban Declaration and Programme of Action to report annually on its session and activities to the Council, and that its report will be also transmitted and presented to the General Assembly, and in this regard requests the Chair of the Group to engage in an interactive dialogue with the Assembly under the agenda item entitled “Elimination of racism, racial discrimination, xenophobia and related intolerance”; and encourages the General Assembly to proclaim a second International Decade for People of African Descent commencing in 2025. 

    Action on Resolutions Under Agenda Item 10 on Technical Assistance and Capacity-Building 

    In a resolution (A/HRC/57/L.14) on Technical assistance and capacity-building to address the human rights implications of the nuclear legacy in the Marshall Islands, adopted without a vote, the Council requests the Office of the High Commissioner for Human Rights to cooperate with the Government of the Marshall Islands in the field of human rights and to provide technical assistance and capacity-building to the National Nuclear Commission of the Marshall Islands in advancing its national strategy for nuclear justice and pursuing transitional justice in its efforts to address the nuclear legacy; and requests the Office of the High Commissioner to prepare a report on addressing the challenges and barriers to the full realisation and enjoyment of the human rights of the people of the Marshall Islands, stemming from the State’s nuclear legacy, and to submit it to the Council at its sixty-third session, to be followed by an enhanced interactive dialogue.

    In a resolution (A/HRC/57/L.15) on Assistance to Somalia in the field of human rights, adopted without a vote, the Council decides to renew the mandate of the Independent Expert on the situation of human rights in Somalia, under agenda item 10, for a period of one year, to assess, monitor and report on the situation of human rights in Somalia; requests the Independent Expert to report to the Council at its sixtieth session and to the General Assembly at its eightieth session; and also requests the Independent Expert to provide an update to the Council in her report on progress on the implementation of the benchmarks and indicators in the transition plan to inform future action by the Council.

    In a resolution (A/HRC/57/L.18) on the Enhancement of technical cooperation and capacity-building in the field of human rights, adopted without a vote, the Council decides … that the theme of the annual thematic panel discussion under agenda item 10, to be held at its fifty-ninth session, will be “The role of technical cooperation and capacity-building in strengthening national structures which play a role in promoting and safeguarding human rights, particularly national human rights institutions and national mechanisms for implementation, reporting and follow-up”; and also requests the Office of the High Commissioner to prepare a report, to be submitted to the Human Rights Council at its fifty-ninth session, to serve as a basis for the panel discussion, on the role of technical cooperation and capacity-building among States, the Office and other relevant stakeholders, to support States’ efforts to strengthen national structures which play a role in promoting and safeguarding human rights.

    In a resolution (A/HRC/57/L.20) on Cooperation with Georgia, adopted by a vote of 24 in favour, 3 against and 20 abstentions, the Council demands that immediate and unimpeded access be given to the Office of the High Commissioner for Human Rights and other international and regional human rights mechanisms to Abkhazia, Georgia, and the Tskhinvali region/South Ossetia, Georgia; requests the High Commissioner for Human Rights to present to the Council an oral update on the follow-up to the present resolution at its fifty-eighth session and to present a report on developments relating to and the implementation of the present resolution at its fifty-ninth session; and also requests the High Commissioner to continue to provide technical assistance through the Office of the High Commissioner in Tbilisi.

    In a resolution (A/HRC/57/L.37) on Technical assistance and capacity-building in the field of human rights in the Democratic Republic of the Congo, adopted without a vote, the Council decides to renew, for one year, the mandate of the team of international experts on the Democratic Republic of the Congo, and requests the team to provide the necessary technical support to the Government in implementing effectively its National Transitional Justice Policy, in particular by taking account of the cross-border nature of conflict and insecurity in the Great Lakes, identifying the causes of conflict and preventing their recurrence, and designing and implementing mechanisms for transitional justice and the fight against impunity, and encourages it to support the Government in this regard; requests the team of international experts to submit its final report to the Council, in the framework of an enhanced interactive dialogue, at its sixtieth session and to present it with an oral update at its fifty-eighth session; requests the High Commissioner to present the Council with an oral update on the situation of human rights in the Democratic Republic of the Congo, in the framework of an enhanced dialogue, at its fifty-eighth session; also requests the High Commissioner to prepare a comprehensive report on the situation of human rights in the Democratic Republic of the Congo and to submit it to the Council, in the framework of an enhanced interactive dialogue, at its sixtieth session; and decides to remain seized of the matter until its sixtieth session.

    In a resolution (A/HRC/57/L.38/Rev.1) on Technical assistance and capacity-building in the field of human rights in the Central African Republic, adopted without a vote, the Council decides to renew, for one year, the mandate of the Independent Expert on the situation of human rights in the Central African Republic, which is to assess, monitor and report on the situation with a view to making recommendations relating to technical assistance and capacity-building in the field of human rights; requests the Independent Expert to pay particular attention to violations of human rights and international humanitarian law alleged to have been committed by all parties to the conflict; decides to convene, at its fifty-eighth session, a high-level dialogue to enable it to assess human rights developments on the ground…; requests the Independent Expert to provide an oral update on his report on technical assistance and capacity-building in the field of human rights in the Central African Republic to the Human Rights Council at its fifty-ninth session and to submit a written report to the Council at its sixtieth session and to the General Assembly at its eightieth session; and requests the United Nations High Commissioner for Human Rights to continue to provide the Independent Expert with all the necessary technical, human and financial resources to enable him to carry out fully his mandate.

    In a resolution (A/HRC/57/L.32) on Technical assistance and capacity-building for Yemen in the field of human rights, adopted without a vote, the Council requests the High Commissioner for Human Rights to continue to provide substantive capacity-building and technical assistance to the Government of Yemen and all requisite technical and logistical support to the National Commission of Inquiry, to enable it to continue to investigate allegations of violations and abuses committed by all parties to the conflict in Yemen and to submit its comprehensive report on alleged violations and abuses of human rights in all parts of Yemen as soon as it is available; and requests the High Commissioner to present a report on the implementation of technical assistance, as stipulated in the present resolution, to the Council at its sixtieth session.

    Other Matters 

    The Council appointed four Special Procedures mandate holders: the Special Rapporteur on the situation of human rights in Belarus, Nils Muižnieks (Latvia); for the Working Group of Experts on People of African Descent, member from Western European and other States, Isabel Mamadou (Spain); for the Working Group on Enforced or Involuntary Disappearances, member from Asia-Pacific States, Mohammed Al-Obaidi (Iraq); and for the Working Group on the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination, member from Latin American and Caribbean States, Andrés Macias Tolosa (Colombia). 

    The Council elected four members of its Advisory Committee: Frans Viljoen (African States), Miznah O.Alomair (Asia-Pacific States), Alessandra Devulsky (Latin American and Caribbean States), and Vassilis Tzevelekos (Western Europe and other States).

    The Council also adopted its draft report for the fifty-seventh session ad referendum.

    Bureau of the Council

    The President of the Council is Omar Zniber of Morocco.  The four Vice-Presidents are Febrian Ruddyard (Indonesia); Darius Staniulis (Lithuania); Marcela Maria Arias Moncada (Honduras); and Heidi Schroderus-Fox (Finland).  Mr. Staniulis also served as Rapporteur.

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

    HRC24.030E

    MIL OSI United Nations News

  • MIL-OSI USA News: FACT SHEET: U.S. Achievements in the Global Fight Against  Corruption

    Source: The White House

    Corruption poses a grave and enduring threat to U.S. national interests and those of our partners. When officials abuse their entrusted power for personal or political gain, the interests of authoritarians and corrupt actors win – at the expense of citizens, honest businesses, and healthy societies. As the Biden-Harris Administration took office, this longstanding challenge had metastasized. In some countries, oligarchs were teaming up with foreign kleptocrats to warp policy and procurement decisions in exchange for kickbacks – with no accountability. Corrupt officials were laundering stolen assets through the U.S. and global financial systems, while local investigators were ill-equipped to follow the money. Reformers in countries saddled with corruption had scarce public resources to actually address development needs. The Biden-Harris Administration tacked these challenges starting Day One, to ensure democracy delivers and corrupt actors are held to account.

    The first National Security Study Memorandum of the Biden-Harris Administration established countering corruption as a “core U.S. national security interest,” leading to the issuance in December 2021 of the first United States Strategy on Countering Corruption. Since then, the United States has taken action at home and around the world to curb illicit finance, hold corrupt actors accountable, forge multilateral partnerships, and equip frontline leaders to take on transnational corruption. The result has been historic progress in protecting the U.S. financial system from money-laundering, including in the residential real estate sector, while enhancing corporate transparency. This Administration has mobilized record levels of foreign assistance dedicated to anti-corruption, including $339 million in Fiscal Year 2023 alone – almost double the yearly average during the previous four years. This new assistance has unlocked support for anti-corruption institutions, leveled the playing field for law-abiding businesses, enabled journalists to team up across borders, and more. Expanded law enforcement cooperation and capacity-building have generated convictions of corrupt actors as well as the seizure, forfeiture, and return of criminal proceeds, while new anti-corruption offices at the Department of State (State) and the U.S. Agency for International Development (USAID) energized diplomatic and stakeholder engagement. The United States imposed sanctions on more than 500 individuals and entities for corruption and related activities, and established – for the first time in any jurisdiction globally – a new visa restriction for those who enable corrupt activity.

    U.S. progress on anti-corruption has produced concrete benefits for the American people and stakeholders around the world – enhancing prosperity, economic security, safety, and democracy, as outlined below. To bolster and sustain this work, the U.S. government has also modernized its approach to addressing corruption as a cross-cutting priority. Today, Deputy National Security Advisor for International Economics Daleep Singh will highlight the benefits of this work to American businesses and workers at a White House anti-corruption roundtable with leaders from 15 major U.S. companies.

    Advancing economic opportunity abroad

    • Improving the business enabling environment: U.S. assistance advanced governments’ capacity to prevent, detect, investigate, and prosecute corruption, while encouraging anti-bribery compliance. State expanded its Fiscal Transparency Innovation Fund – to help willing partners improve budget transparency – while holding countries to account for progress in its Fiscal Transparency Report. In the past two years alone, a newly expanded State-Federal Bureau of Investigations (FBI) program facilitated U.S. collaboration with foreign counterparts on more than 50 transnational corruption and money laundering cases with a U.S. nexus. In coordination with State, experienced legal advisors from the U.S. Department of Justice (DOJ) assisted foreign justice partners around the world in investigating and prosecuting corruption and money laundering cases, and recovering assets. And DOJ’s Kleptocracy Asset Recovery Initiative, in partnership with the FBI and the Department of Homeland Security, has recovered more than $1.7 billion and returned or assisted in returning more than $1.6 billion for the benefit of the people harmed by the corruption.
    • Enforcing our bans on foreign bribery and money-laundering – and pressing other countries to do the same: To enable honest companies to compete overseas, the United States upheld its commitments under the OECD Anti-Bribery Convention by enforcing its foreign bribery and related laws and working with partners to monitor other countries’ progress in implementing the Convention, which celebrated its 25th anniversary in 2024. Since the start of the Administration, DOJ has imposed more than $3.5 billion in total monetary sanctions under the Foreign Corruption Practices Act (FCPA) in 16 corporate resolutions, and announced charges against more than 70 individuals. For instance, this April the former Comptroller General of Ecuador was convicted of money laundering relating to his receipt of over $10 million in bribes from, among others, the Brazil-based construction conglomerate Odebrecht S.A. The Securities and Exchange Commission continued civil enforcement of the FCPA, with approximately $1 billion in total monetary sanctions in 22 corporate resolutions, spanning conduct in 24 countries, since the start of the Administration. DOJ is also enforcing the recently enacted Foreign Extortion Prevention Act, which criminalizes demands for bribes by foreign officials from U.S. companies and others. In addition, this August DOJ announced a new Corporate Whistleblower Awards Pilot Program to uncover and prosecute corporate crime – with a particular focus on foreign and domestic corruption, as well as violations by financial institutions of their obligations to take steps to detect and deter money laundering.
    • Seizing windows of opportunity: U.S. assistance has become more agile via the establishment of USAID’s Anti-Corruption Response Fund (providing flexible support to countries experiencing new opportunities or backsliding), the State-DOJ Global Anti-Corruption Rapid Response Fund (providing assistance and case mentoring to foreign partners on short notice), and USAID’s Democracy Delivers initiative (which has marshalled $500 million in funding from the United States and others to help reformers deliver, including on their anti-corruption commitments). These innovations, informed by USAID’s Dekleptification Guide, are enabling the U.S. government to more nimbly pivot toward environments where local momentum can be bolstered by outside assistance.
    • Bolstering integrity in high-risk sectors: In April 2024, the United States and its partners launched the Blue Dot Network – a mechanism to certify infrastructure projects that have met global standards for quality and sustainability, including transparency in procurement and provisions to limit opportunities for corruption. The United States also supported the launch of PROTECT, a collective action project to address corruption risk in the supply chain for critical minerals.
    • Strengthening corruption safeguards in the Indo-Pacific: In June, the United States and thirteen other partners held a signing ceremony, after concluding eight rounds of negotiations in record time, for the Indo-Pacific Economic Framework for Prosperity (IPEF) Fair Economy Agreement. The Agreement aims to create a more transparent, predictable trade and investment environment across IPEF partners’ markets, including through binding obligations to prevent and combat corruption. The Department of Commerce (Commerce) and State are accelerating implementation by offering new anti-corruption technical assistance to IPEF partners, including workshops on procurement corruption.
    • Dialoguing with the private sector: In 2021, State launched the Galvanizing the Private Sector as Partners in Combatting Corruption initiative, which connects companies and governments to strengthen business integrity and encourage governance reform. Commerce’s International Trade Administration organized the 2024 forum of the Business Ethics for Asia-Pacific Economic Cooperation (APEC) Small and Medium Enterprises Initiative – the world’s largest public-private partnership on ethical business conduct – at which stakeholders formalized policy recommendations on business integrity in public procurement.

    Protecting the U.S. financial system from abuse

    • Expanding corporate transparency: To deter kleptocrats and criminals from laundering money through anonymous shell companies, the Department of the Treasury (Treasury) operationalized a new filing system for certain companies operating in the United States to report their beneficial owners – the real people who own or control them – pursuant to the bipartisan Corporate Transparency Act. Treasury held hundreds of outreach events across all states and territories, reaching thousands of stakeholders, to enable companies to quickly and easily comply with this reporting requirement.
    • Closing loopholes for money-laundering: Treasury finalized rules to close two major loopholes in the U.S. financial system: (1) to increase transparency in the U.S. residential real estate sector, to ensure that law-abiding homebuyers are not disadvantaged by individuals laundering their ill-gotten gains, and (2) to safeguard the investment adviser industry from illicit finance. Treasury also proposed a rule to modernize financial institutions’ anti-money-laundering/countering the financing of terrorism (AML/CFT) programs, to make them more effective and risk-based. Together, these rulemakings represent historic advances for the U.S. AML/CFT regime, in line with international standards, that will help the United States urge other countries to undertake similar reforms to curb illicit finance. The Biden-Harris Administration has also called on Congress to close even more loopholes that facilitate money-laundering by passing the ENABLERS Act.
    • Blocking assets and denying entry to corrupt actors: Since the start of the Administration, Treasury has designated more than 500 individuals and entities for corruption and related activities, across six continents. That includes blocking the assets of 20 individuals and 48 companies in Fiscal Year 2024 for corruption in Afghanistan, Guatemala, Guyana, Paraguay, Western Balkans, and Zimbabwe. In tandem, State publicly issued corruption-related visa restrictions for 76 foreign officials and family members in Fiscal Year 2024, and 292 over the course of the Administration. These actions have protected the U.S. financial system from corrupt actors and promoted accountability in domestic jurisdictions. For example, just one week after the U.S. issuance of a public visa restriction on former Director of Bosnia-Herzegovina (BiH) Intelligence Services Osman Mehmedagic for significant corruption, he was arrested by BiH authorities for abuse of office.
    • Taking aim at enablers of corruption: In December 2023, President Biden issued an historic Presidential Proclamation establishing a visa restriction for those who facilitate and enable significant corruption and their immediate family members. This new visa restriction complements existing commitments to use sanction and law enforcement capabilities to target private enablers of public corruption. Earlier this year, the FBI and DOJ secured a guilty plea and a criminal penalty of $661 million from Gunvor – one of the largest commodities trading firms in the world – for facilitating bribery of Ecuadorian officials and laundering those bribes through U.S. banks. In addition, USAID launched new activities to incentivize integrity within professions that serve as gatekeepers to the international financial system.
    • Upholding international standards: The United States has helped lead efforts to expand anti-corruption work at the Financial Action Task Force (FATF), including improving assessment tools, mitigating risks associated with “golden passport” programs, and highlighting how non-financial sectors can be abused by corrupt actors.

    Keeping America and our partners safe

    • Addressing corruption risk in the security sector: Security sector corruption can divert essential supplies, empower malign actors, threaten the safety of U.S. service members, and undermine U.S. military missions writ large. In the past year, the Department of Defense (DOD) incorporated corruption risk into its security cooperation planning – subjecting certain proposals to further scrutiny and identifying risk mitigation measures as needed. State also created new resources to weigh corruption risk as part of security sector assistance decision-making. In addition, State’s Global Defense Reform Program and DOD’s institutional capacity building programs advanced more transparent, accountable, and professional defense institutions. DOD continued running a training course on combatting corruption for partner military commanders and civilian leaders.
    • Tackling organized crime and corruption: Transnational criminal organizations often rely on corruption to enable their criminal activities and evade accountability – which fuels narcotrafficking into the United States, human smuggling, cybercrimes, and more. The U.S. government is deploying anti-corruption tools to target criminal networks and their financial enablers, in line with the 2023 White House Strategy to Combat Transnational Organized Crime.
    • Standing up to Russia’s aggression: The United States has adapted to address the wartime needs of Ukraine’s anti-corruption stakeholders, as they close off a key vector for Russian dominance and advance Ukraine’s democratic future. In 2023, Ukrainian anti-corruption investigators and prosecutors achieved an 80 percent increase in prosecutions and a 50 percent increase in convictions, plus opened cases against high-ranking officials including the former head of the Ukrainian Supreme Court.  With U.S. support, Ukraine has advanced significant reforms on asset disclosure, launched a whistleblower portal, strengthened the National Anti-Corruption Bureau, and enhanced transparency and integrity in reconstruction.
    • Securing a greener future: The United States has integrated an anti-corruption lens across sectors, with particular emphasis on addressing corruption vulnerabilities that threaten a secure, just energy transition for all. This includes USAID support to the Extractive Industries Transparency Initiative (EITI), increased mining transparency in the Democratic Republic of Congo and Zambia, and innovations that address transnational corruption in green energy mineral supply chains across 15 countries.
    • Protecting global health: Corruption curtails the ability of states to respond to pandemics and undercuts access to basic healthcare. USAID is tackling this challenge by releasing cutting-edge guidance on anti-corruption in the health sector and launching integrated programming. For example, in Liberia the United States is working with the government to curb theft of pharmaceuticals through civil society monitoring, law enforcement trainings, and public awareness campaigns.
    • Addressing the root causes of migration: Combating corruption is a core component of improving conditions in El Salvador, Guatemala, and Honduras – so people do not feel compelled to leave their homes, in line with the U.S. Strategy for Addressing the Root Causes of Migration in Central America. Recent U.S. actions have included training up to 27,000 justice sector stakeholders in those countries to more effectively address corruption.

    Defending democracy by rooting out corruption

    • Tackling electoral corruption: When candidates can be bankrolled by foreign adversaries and institutions captured by kleptocrats, citizens lose faith in their governments—or even in democracy itself. In response, USAID has launched new programs to bolster electoral integrity, strengthen independent media, and increase the transparency of political finance in high-risk locations.
    • Lifting up civil society and independent media: The U.S. government has substantially expanded support to frontline activists and journalists, including through the Global Anti-Corruption Consortium. In addition, a new State Department initiative is training hundreds of journalists in transnational corruption investigations, while USAID’s new investigative journalist networks in Asia and Southern Africa are building capacity to track corruption across sectors and across borders. The Secretary of State established a new award for Anti-Corruption Champions, which has honored dozens of courageous civil society leaders and embattled reformers. In 2022, the United States also hosted the largest regular gathering of civil society activists fighting corruption – the International Anti-Corruption Conference – in Washington, DC, with keynote remarks from APNSA Jake Sullivan.
    • Protecting sovereignty: Authoritarian actors like Russia and the PRC use bribery to interfere in the policy, procurement, debt, and electoral processes of other countries – undermining both sovereignty and democracy. The United States is standing up to this tactic by building the resilience of frontline actors to detect and deflect foreign-backed strategic corruption, educating partners about the kleptocrats’ playbook, harnessing sanction tools to deter threats, and increasing collaboration between practitioners working on anti-corruption and those addressing foreign malign influence – both within the USG and with likeminded partners. For example, in June the United States joined with Canada and the UK to expose Russia’s use of corruption and covert financing, among other tactics, to undermine democratic processes in Moldova.
    • Restoring trust in American democracy: The Biden-Harris Administration has established the strongest ethics standards of any U.S. presidency. On his first day in office, the President signed an Executive Order requiring administration officials to take a stringent ethics pledge, which extends lobbying bans, limits shadow lobbying, and makes ethics waivers more transparent. The Administration also restored longstanding democratic norms by protecting DOJ cases from political interference, releasing the President’s and Vice-President’s taxes, and voluntarily disclosing White House visitor logs. And in the last year, the Office of Government Ethics finalized rules updating the standards for ethical conduct and legal expense funds for executive branch employees.
    • Protecting American democracy from malign finance: Just as we defend democracy around the world, the U.S. government is working to keep American democracy safe from foreign adversaries. Actions to curb money laundering in the United States can help reduce the ability of foreign and domestic actors to make illegal campaign contributions and evade U.S. election laws. President Biden has called on Congress to go even further by passing the DISCLOSE Act, which would curb the ability of foreign entities and special interests to use dark money loopholes to influence our elections.
    • Revitalizing participation in the Open Government Partnership (OGP): The United States rejoined the Steering Committee of OGP – a platform for civil society and governments to forge joint commitments and learn from each other– and provided assistance for OGP’s work on anti-corruption. Domestically, the United States has turbocharged OGP implementation by creating the U.S. Open Government Secretariat at the General Services Administration, an Open Government Federal Advisory Committee, an Interagency Community of Practice – spanning federal, state, local, tribal, and territorial governments, and engaged with hundreds of stakeholders to exchange lessons and expand transparency, accountability, and public participation. The United States also launched the first-ever Request for Information to feed into the 6th U.S. OGP National Action Plan and announced development of a toolkit to help federal agencies more meaningfully engage with the public.

    Modernizing and coordinating U.S. government efforts to fight corruption

    • Institutionalizing anti-corruption as an enduring priority: Over the past four years, Departments and Agencies have made substantial organizational improvements to elevate corruption concerns. For example:
      • The State Department’s new Office of the Coordinator on Global Anti-Corruption leads the integration of anti-corruption priorities into bilateral and other policy processes, conducts targeted diplomatic engagements, and drives strategic planning, including through the Department’s senior-level Anti-Corruption Policy Board. In the past year, the Office jumpstarted implementation of the Combating Global Corruption Act and completed an analysis of anti-corruption assistance to inform future State Department decision-making.
      • USAID’s new Anti-Corruption Center, within the newly established Bureau for Democracy, Human Rights, and Governance, serves as a hub of technical expertise and thought leadership – driving the integration of corruption considerations across USAID’s portfolio, supporting USAID Missions in developing localized approaches, managing a suite of programming focused on transnational corruption, and using its convening power and policy insights to forge strategic partnerships. Since 2022, USAID has released its first-ever Anti-Corruption Policy, which outlines a cross-sectoral approach to constraining opportunities for corruption, raising the costs of corruption, and incentivizing integrity – plus a host of tools to drive uptake across USAID.
      • FBI’s International Corruption Unit expanded an agreement with the State Department to deploy six regional anti-corruption advisors to strategic locations around the world, where they organize regional working groups with local law enforcement officials, provide case-base mentorship, and facilitate coordination with the International Anti-Corruption Coordination Centre.

    Expanded interagency capacity has been complemented by the National Security Council’s establishment of a dedicated Director for Anti-Corruption position, for the first time, to ensure whole-of-government coordination and advance anti-corruption within key policy processes.

    • Leading in multilateral fora: The United States has regained its leadership role in the international bodies that shape anti-corruption norms globally and can sustain momentum across time. In particular, the United States stepped into the presidency of the UN Convention against Corruption Conference of States Parties (UNCAC COSP), proudly hosting in December 2023 thousands of stakeholders in Atlanta, Georgia, led by the U.S. Representative to the United Nations Linda Thomas-Greenfield. As part of its commitment to championing the role of non-governmental actors in the fight against corruption, the United States facilitated record civil society participation in UNCAC working group meetings, hosted the first UNCAC Private Sector Forum, and supported inclusive implementation of UNCAC commitments in Latin America, East Africa, and Southeast Asia. The United States also participated in several peer reviews of our own anti-corruption practices over the last three years, and proudly made these results public. Alongside these multilateral fora, we convened the Global Forum on Asset Recovery action series to accelerate practitioner cooperation across the United States, Algeria, Honduras, Iraq, Moldova, Nigeria, Seychelles, Ukraine, the United Kingdom, and Zambia.
    • Understanding corruption dynamics: The Intelligence Community developed and disseminated new resources to bolster intelligence prioritization, collection and analysis on corrupt actors and their networks. USAID commissioned research on topics like countering corruption through social and behavioral change and State initiated an interagency anti-corruption learning agenda and a small grants program to support it.
    • Deepening external partnerships: The United States convened a series of coordination meetings with other bilateral donors and philanthropies in order to harmonize our anti-corruption approaches and galvanized anti-corruption resources across the donor community through the Integrity for Development campaign. USAID’s Countering Transnational Corruption Grand Challenge for Development brought together technologists, businesses, activists, and others to collaboratively address concrete corruption challenges.

    ###

    MIL OSI USA News

  • MIL-OSI USA News: Press Gaggle by Press Secretary Karine Jean-Pierre and National Security Advisor Jake Sullivan En Route Berlin,  Germany

    Source: The White House

    2:15 P.M. EDT

    MS. JEAN-PIERRE:  Okay.  So, I’m just going to get straight to it.  

    As you can see, I have the national security advisor, Jake Sullivan, here to talk to us about the trip but also the latest in the Middle East.

    Jake, the floor is yours. 

    MR. SULLIVAN:  So, I don’t know if you guys have heard because of the lack of Wi-Fi back here, but the IDF has confirmed the death of Yahya Sinwar, the Hamas leader, and I’ll come to that in just a moment. 

    But let me start by laying out what we hope to achieve over the course of the next 24 hours in Berlin.  This is the president’s first visit to Berlin as president, and he did not want his time in office to go by without going to the capital of one of — one of our most important partners and allies. 

    Germany is a core Ally in NATO, a core partner in the G7.  They’ve been a core player in the Allied response to Russia’s brutal invasion of Ukraine.  And the president is looking forward to having the opportunity to talk to the chancellor and other German officials about where we go from here in Ukraine; about developments in the Middle East, in Iran, Lebanon, Gaza, Israel; about how we align our respective approaches on the PRC; about how we align our industrial and innovation strategies; about artificial intelligence and the clean energy transition. 

    He will also have the opportunity to meet with the prime minister of the UK and president of France.  The four leaders — Germany, France, UK, U.S. — will sit together to particularly focus on two issues.

    One, the war in Ukraine and the pathway ahead, particularly in light of the fact that they’ve all had the opportunity to engage in person with President Zelenskyy over the course of the last few weeks and heard from him about where he sees things going.  So, this is an opportunity to consult on that.

    And then, second, to talk about the ongoing and fast-moving developments across the Middle East region.

    The president will see President Steinmeier.  He’ll spend one-on-one time with Chancellor Scholz.  He’ll spend time with his delegation — with Chancellor Scholz and his delegation. 

    And then, of course, there’ll be this meeting among the four leaders in the afternoon, and there’ll be an opportunity for press statements with the chancellor and the president. 

    So, that’s the plan for tomorrow.

    Of course, this comes against the backdrop of a pretty significant — very significant day in the Middle East, and that is that Yahya Sinwar has been taken off the battlefield.  This is a murderous terrorist responsible for the worst massacre of Jews since the Holocaust.  He has a lot of blood on his hands — Israeli blood, American blood, Palestinian blood — and the world is better now that he’s gone. 

    President Biden has just put out a written statement sharing his thoughts and reactions to the death of Sinwar, and he looks forward to the opportunity soon, perhaps very shortly, to speak to Prime Minister Netanyahu to congratulate the IDF and the brave Israeli soldiers and security professionals who carried out the operation that killed Sinwar but also to talk about the way forward, because Sinwar was a massive obstacle to peace and the day after in Gaza.  And now that that obstacle has been removed, President Biden looks forward to talking to Prime Minister Netanyahu about how we secure the return of the hostages, an end to the war, and a move to the day after in Gaza — a Gaza where Hamas is no longer in power or control. 

    So they’ll have the opportunity to have an initial conversation about that, but this truly is an opportunity we need to seize together to bring about a better day for the people of Gaza, the people of Israel, the people of the whole region.  And the United States is committed to doing everything in our power to help contribute to that. 

    Last thing I will say is that from shortly after October 7th, President Biden dispatched special operations personnel and intelligence professionals to Israel to work side by side with their Israeli counterparts in the hunt for Hamas leaders, including Sinwar, and it was with American intelligence help that many of these leaders, including Sinwar, were hunted and tracked, were flushed out of their hiding places, and put on the run.  And, ultimately, this is a credit to the IDF for taking out Sinwar over the course of the last hours and days, but we’re proud of the support that the United States has given to the IDF all along the way. 

    So, with that, I’d be happy to take your questions.

    Q    Jake —

    Q    Can you say anything — well, go ahead.  I’m sorry. 

    Q    Jake, thanks so much for doing this.  You kind of implied that Sinwar had been an obstacle to hostage release and ceasefire.  How big an obstacle is that?  And does this give you additional hope now of a ceasefire and possibly a hostage release?  How should we process this?

    MR. SULLIVAN:  I didn’t just imply it; I stated it explicitly. 

    At various points along the way, Sinwar was more interested in causing mayhem and chaos and death than in actually trying to achieve a ceasefire and hostage deal.  And we repeatedly saw moments where it was him, in particular, who stood in the way of making progress towards a ceasefire and hostage deal.  Now, there were other obstacles too along the way, but he was certainly a critical one. 

    And, yes, I think his removal from the battlefield does present an opportunity to find a way forward that gets the hostages home, brings the war to an end, brings us to a day after.  That’s something we’re going to have to talk about with our Israeli counterparts.

    Of course, there are still other Hamas actors who need to be brought to justice, and there are hostages, including Americans, being held by terrorists.  We’re going to have to deal with all of that, but we believe there is a renewed opportunity right now that we would like to seize.

    Yeah.

    Q    Do you assess this as being the cutting off of the head of the Hydra, or what — what’s your assessment of Hamas’ capabilities from now on?  Is there going to be a mop up?  And what — what would you recommend the Israelis do?

    MR. SULLIVAN:  Sinwar was a critical figure operationally, militarily, and politically for Hamas.  He had, in fact, consolidated control of both the political and military wing under his singular leadership in — in recent weeks and months.  And so, this is a very significant event.

    But what exactly it means for the future of Hamas as an organization, it’s early days yet.  We will have to see.

    What we do know is that the broad military structure, the battalions of Hamas have been systematically dismantled.  We do know that Hamas does not pose the kind of threat to Israel that it posed on October 7th or anything close to it.  We also know that there are still Hamas terrorists wielding guns and holding hostages and harboring a desire to continue to attack Israel and attack others. 

    And so, we’re going to have to sort through all of that.  But this is an incredibly significant blow to Hamas.  It is the removal of someone who, as I said, was unique in the consolidation of the control of the Hamas apparatus under his command.  And now we will have to work to ensure that his death actually does deal the kind of long-term blow to Hamas that all of us would like to see.

    Q    Can you give —

    Q    Do you get the sense that Netanyahu is done now, that he’s — he’s reached his objectives?  You just laid out the decimation of Hamas — 

    MR. SULLIVAN:  No, his critical objective that — has not been reached.  That objective is the return of the hostages, including American hostages.  So, from the United States’ perspective, we now need to work with Israel, with Qatar and Egypt, with others — and this is something we’ll discuss with our European partners as well — to secure the release of those hostages.  We’d like to see that happen.

    Q    You referenced U.S. intel.  To what extent did that play a role in this particular operation? 

    MR. SULLIVAN:  This operation was an IDF operation.  I’m not here to overclaim or — or try to take credits for something where the credit belongs to them. 

    But the Americans — the special operations personnel, the intelligence professionals — they also deserve our thanks for the work that they did alongside the IDF over the course of many months to help create the kind of counterterrorism pressure in Gaza that put a lot of these guys on the run.  And Sinwar was plainly on the run (inaudible).

    Q    Earlier this — earlier this week, Secretary Blinken and Secretary Austin sent letters to their counterparts threatening legal action if the humanitari- — humanitarian situation in Gaza doesn’t improve.  Can you give us a sense of what that legal option would be and if there are any deadlines or specific actions that the president will raise with Prime Minister Netanyahu about that today?

    MR. SULLIVAN:  The letter speaks for itself.  I think a lot of the headlines were breathless and overblown.  We have had an ongoing dialogue with Israel for months now about improving the humanitarian situation.  We have had previous communications that looked quite similar and that generated positive momentum towards opening crossings and getting more aid in.  We’ve had, actually, constructive back-and-forth with our Israeli counterparts over the last few days in response to our requests, and we expect that we’ll see progress on the ground. 

    One thing that has unfolded this week is — is the reopening of some of the crossings that had been closed in the north and trucks going in.  We need to see that sustained and expanded as we go forward, among the other requests in that letter. 

    But I’d — and I’d — just the other point I would make here is that it’s — it was a private diplomatic communication.  It was a serious, substantive laydown.  It’s part of our ongoing work and partnership with Israel.  And having it all out there in the open, leaked in the way that it was, I think, was highly unfortunate.  And I’ll leave it at that.

    Q    Can you give us a sense of what the president will say in this conversation with Netanyahu?  Will he push for an accelerated timeline for a ceasefire?  Will he say, you

    know, kind of, “Now you achieved the main direct- — main objective and we should move forward on — on other things,” or push for humanitarian aid?

    MR. SULLIVAN:  I’m going to let the president speak to the prime minister before I preview what he’s going to say in the press on the record, but we’ll try to give you a good sense of both what the president is thinking and what he’s communicating to the prime minister at the appropriate time.

    Q    To — to what extent do you think this success with Sinwar might embolden Netanyahu when it comes to retaliating against Iran?  Or do you see them as totally unrelated?  And what are your conversations right now with them in terms of restraint — or whatever you want to call it — when the president has thoughts about what the target should be when they hit back?

    MR. SULLIVAN:  We’ve had very constructive communications with the Israelis about how they’re thinking about responding to the attack on October 1st.  Those conversations will continue. 

    I can’t speculate as to the psychology of the prime minister based on what happened today.  What I can say is that the logic of deterrence, the logic of a response to a salvo of 200 ballistic missiles — nothing in the Middle East is unrelated, but that is a distinct logic from the killing of Sinwar today.

    Q    Jake, going back to the trip.  What message will President Biden give his fellow leaders about America’s place in the world, given the uncertainty around our upcoming election?

    MR. SULLIVAN:  Say that again.

    Q    What reassurance will President Biden give his fellow leaders about America’s place in the world, given the uncertainty about our upcoming presidential election?

    MR. SULLIVAN:  What President Biden can do is what he’s done for four years, which is lay out his vision of America’s place in the world and point the way forward based on what he thinks are in America’s national security interests and in the interests of our close allies. 

    Beyond that, he can’t speak for anyone else and doesn’t intend to.

    Q    Is there any —

    Q    Does this change your calculus on whether Israel can come to the table on a ceasefire by the end of the year?

    MR. SULLIVAN:  I’m sorry?

    Q    Your calculus on whether a ceasefire could be reached by the end of the year.

    MR. SULLIVAN:  I have long since given up on making predictions or drawing timelines.  All I can say is that we see an opportunity now that we want to seize to try to secure the release of the hostages, and we’re going to work at that as rapidly as we possibly can.

    Q    Give- — given the situation, would the president reconsider possibly holding a press conference during his time in Berlin?  It would be good to hear from him firsthand on how he thinks about this and the situation in Ukraine. 

    MR. SULLIVAN:  I will note for the record there are heads nodding.  (Laughter.)  I’ll also note for the record that that is a really fascinating way to bring the press into the middle of a world historical event.  So — (laughter) — and I’ll leave it at that.

    Q    I’ll follow up on that.  The president talks about democracy as being a key part of his administration, of his vision for America that you just referenced.  Why would he not take questions from the press at what was originally going to be a state visit to Germany?  I don’t understand.

    MR. SULLIVAN:  It’s fascinating how you guys can — (laughs) — make this the story.

    Q    It’s not the story.  It’s just a question. 

    MR. SULLVIAN:  I mean, honestly, I think invoking democracy and suggesting that President Biden is somehow insufficiently committed to it because of the structure of his press engagement on one day in Germany is a bit ludicrous. 

    Q    I can ask a Germany question.  So, a lot of the moves that President Biden has made both domestically and internationally have been characterized as “Trump-proofing” the — the, you know, U.S. government for a future Trump presidency. 

    How do you feel about that characterization?  I’m talking about moves like bringing NATO under — forgive me, it’s too complicated to explain, but you know what I’m talking about. 

    So, do you think he’s Trump-proofing?

    MR. SULLIVAN:  I — I don’t like characterizations like that because they’re inherently political.

    Q    So, what is he doing, then?

    MR. SULLIVAN:  What the president is trying to do is to make our commitment to Ukraine sustainable and institutionalized for the long term.  And every other ally agreed that that was the responsible thing to do. 

    The la- —

    Q    (Inaudible) necessarily reduced U.S. role, is that the idea?

    MR. SULLIVAN:  Not at all.  The basic logic was what the president laid out at the Washington Summit this summer, which is the communiqué said Ukraine’s place, Ukraine’s future, is in NATO.  There is work to do to get from here to there, including reforms and security conditions being met. 

    So, the question is, how do you build a bridge from where we are now to Ukraine’s eventual membership in NATO?  And the answer to that question was the set of deliverables in Washington, including the institutionalization of the security support apparatus for Ukraine.  That is what we were trying to accomplish, and that’s what we believe we did accomplish.

    Q    Jake, on Iran.  Can you confirm and elaborate on reporting that President Biden directed the NSC to warn Iran that any attempt on President Trump’s life would be seen as an act of war?

    MR. SULLIVAN:  I will tell you that President Biden has taken this issue with the utmost seriousness.  He asked to be updated on it regularly.  He gives us direction for how to respond to it regularly and in a very serious and consequential way.  We are following his directives and implementing them.  And I’m not going to get into specifics on what that looks like.

    Q    Jake, what about these reports that President Trump and President Putin have had seven conversations?  Are you worried about this?  Are you worried about any sort of backdoor conversations President Trump is having with leaders?

    MR. SULLIVAN:  I do not know if that’s true or not, but obviously that would raise red flags if it were true. 

    Q    Another one on — since you just said Putin.  There’s been reporting in Germany that Chancellor Scholz said he would be open to speaking with President Putin ahead of the G20 if asked — sort of various ways he said it.  Have you guys talked about this?  Has he told President Biden about this?  Do you think this would be a good idea to do a leader-level conversation with President Putin at this time?

    MR. SULLIVAN:  That has not come up between the chancellor and the president.  You know, I was just in Germany at the end of last week with my German counterpart.  That — the question of a call to Putin didn’t come up.  So, I think that’s a question better put to the chancellor. 

    Q    The official who briefed us yesterday about the Germany trip on the — on the phone mentioned that the Ramstein meeting would be rescheduled.  Does that mean the president will be going back to Ramstein at some point, or what — what did that mean?

    MR. SULLIVAN:  We will hold a leaders-level Ramstein meeting virtually in November.

    Q    One more.  On the frozen assets deal — the Russian frozen assets.  What’s the progress on that there?  I assume this comes up in the conversations.  Is there a plan B if the EU doesn’t figure out a sanctions regime?

    MR. SULLIVAN:  I’m feeling very good about the progress that we’ve made on the G7 commitment to mobilize $50 billion from the proceeds of the Russian sovereign assets by the end of the year.  We intend to meet that commitment, and we intend to make a contribution — the United States.  The EU, obviously, has announced that it’s prepared to make a contribution.  So are other partners.  So, from my perspective, at this point, everything is on track. 

    Q    Is there any update on when the president might talk to President Xi?

    MR. SULLIVAN:  No.

    Thank you, guys. 

    Q    Thank you.

    Q    Who you — wait, who are you rooting for in the playoffs, World Series?

    MR. SULLIVAN:  I’m a Minnesota Twins fan, so I can’t root for the Guardians, but I definitely can’t root for the Yankees.

    I don’t know.

    Q    What about the Dodgers and Mets?

    MR. SULLIVAN:  Yeah, I’m watching, but actually I don’t — I’ve not clearly determined who I’d prefer to win.  But, yeah, Dodgers or Mets. 

    Q    Can you swing back and talk to us off the record later?

    MR. SULLIVAN:  Sure. 

    Q    Great.

    Q    Thanks.

    MS. JEAN-PIERRE:  I don’t know.  Is there any real thing — anything else to discuss?  Let me t- —

    Q    The only thing I would say is we disagree with the suggestion that democracy and speaking — and taking questions from the press is “ludicrous.” 

    MS. JEAN-PIERRE:  All right.  Noted.

    Q    I would argue that our stories allow the president to have a relationship with the world, not just with other leaders, and the ability to talk openly will help that. 

    MS. JEAN-PIERRE:  All right.  Noted.  Noted. 

    Let’s move on.

    So, just want to talk about an announcement.  This is domestic, obviously, going to go to the — to that space.  I just wanted to touch on an announcement very quickly.

    And so, today, the Biden-Harris administration announced an additional $4.5 billion in student debt cancelation for over 60,000 public service workers, bringing the total number of public — of public service workers who have had their student debt canceled under the Biden-Harris administration to over 1 million people. 

    One such example is Kelly, a kindergarten teacher in Rhode Island, who had been paying off her student loans for a decade.  After the student let her know that her debt had been canceled, she tol- — after the president, pardon me — she told us that after 12 years of marriage, she might be able to take the honeymoon she never had.

    The president — the president’s administration made it a priority to fix the Public Service Loan Forgiveness Program.  Prior to our administration, only 7,000 public service workers had received relief since the program was established in 2007. 

    Thanks to the work of the Biden-Harris administration, as of today, 1 million teachers, nurses, firefighters, service members, first resp- — responders, and — and more who — who pursued careers in public service have gotten the relief they deserve. 

    The relief brings the total loan forgiveness approved by the Biden-Harris administration — administration to over $175 billion for nearly 5 million Americans.  And while — meanwhile, our Republicans elected officials have repeatedly attempted to block student debt relief. 

    President Biden and Vice President Harris remain committed to making education affordable for all Americans. 

    With that, what else do you guys have for me?

    Q    I have a question. 

    MS. JEAN-PIERRE:  Sure.

    Q    Did President Biden talk to Vice President Harris ahead of this trip to see if she had any message for the world leaders or to get her input on what the situation should be going forward? 

    MS. JEAN-PIERRE:  As you know, the president and the vice president talk regularly.  I don’t have a specific call to — to read out, but I think you can see the last almost four years of the — what we’ve been able to do, what the president has been able to do on the world stage, certainly has been in partnership with the vice president.  I know that she supports his trip and everything that he’s — he’s trying to do tomorrow in the — in the short trip that we have in — in Germany.

    I just don’t have anything to read out as a call specifically on this trip.

    Q    Is the president or the administration facing pressure from allies to get something done after the election but before he is out of office?  There’s been some talks that Zelenskyy — you know, whether that’s accelerating a push for Ukraine into NATO or — or other funding things for Ukraine?

    MS. JEAN-PIERRE:  Well, you’re talking about the victory plan.  Certainly, I’m going to let the Ukr- — Ukrainians speak to their victory plan as it relates to that question about NATO. 

    Look, I think — I think what you have seen from this president, from this administration — obviously, including the vice president — is how much we have stand behind — next to, if you will — with Ukrainians and how they’re trying to beat back the aggression that we’ve seen from Russia.  And you have not just seen us standing there.  You’ve seen this president take action, and — which is why you see NATO much stronger than it was, and that’s why you see 50 countries have gotten behind Ukraine.  And you heard us — you heard us lay out yesterday an additional assistance package that we have provided to Ukrainians. 

    And so, we’re going to have to continue — we’re going to continue having conversations with the Ukrainians on what they need on the battlefield and how else we can be helpful to them. 

    As it relates to their victory plan — as it relates to what’s next, I’m certainly going to let the Ukrainians speak directly about that. 

    Obviously, the president has had a conversation with the president, President Zelenskyy, on that plan.  I just don’t have anything beyond that, and I’m not — certainly, I’m not going to get into hypotheticals from here. 

    Q    The president at the funeral yesterday had a — what looked like a spirited conversation with former President Obama.  Did you talk to him about what they discussed?

    MS. JEAN-PIERRE:  No, it’s been kind of busy the last couple hours on the plane, as you can imagine. 

    Look, I’ll — I’ll say this.  The president really very much looked — appreciated being there at the — at the funeral of Ethel Kennedy, who he saw as someone who was incredible and had a — was an incredible force, obviously, in her life, during her — her years.  And what he wanted to do is — was to lift up — lift her up and speak to her accomplishment and what she meant to him — not just to him but to her family and to the country.  So, he appreciated doing that. 

    And we have said many times the president and — and president — and former President Biden [Obama] — they have a very close relationship.  They’ve had one for a long time, obviously, as he served as his vice president.

    I don’t have anything else to — to share on that.  I have not had this conversation with the president.  Obviously, we’ve been pretty busy these past couple of hours on the plane. 

    Q    Do you know if the president was able to watch any of the Fox News interview that Vice President Harris did?  And does —

    MS. JEAN-PIERRE:  Yes, he —

    Q    — did he talk to you about how — how she did? 

    MS. JEAN-PIERRE:  Yeah, he was able to — to catch that.  And he saw her performance, her interview as strong.  And I think what you saw and what — and this is what he believes — is that you saw why Americans and people want to see her continuing to fight for them.  And that’s what he saw last night.  That’s what we all saw — many of us saw.  So, I think she was strong and incredibly impressive in that interview. 

    Q    Karine, does the president believe that his vice president would be a markedly different leader?

    MS. JEAN-PIERRE:  I mean, look, he talked about this on Tuesday when he was in Philly, and he — and I talked a little bit about this as well, just reit- — really reiterating what the president shared, which is that, look, she’s going to be essentially her own person, right?  She is going to have her own direction, her own view of how to move forward. 

    And he did that, right?  He was loyal to President Obama when he was vice president, but he cut his own path.  And so, that’s what he expects from the vice president to do. 

    So, nothing — nothing new.  That’s what he expects her to do — to have her own path, to have — to build on — certainly, to build on the economic successes that we have seen and continuing the — the work that we’ve been able to do. 

    But she’s going to cut her own path.  He was very clear about that a couple days ago.

    Q    Karine —

    Q    But on student loans — you talked about the PSLF 1 million, a huge achievement for those borrowers — what’s your message for the other 40 million-plus borrowers who’ve been caught up in a lot of legal limbo over the past three years?

    MS. JEAN-PIERRE:  Look, I’ll — I’ll say this.  You know, I’m not going to speak to the legal — the legal components of this.  There are legal matters that are happening, so they are ongoing.  So, I’m not going to speak to that. 

    But I think what you can take away from what this president has — trying to do, when Republicans have continued to block him, in promising to give Americans a little bit of breathing room, to make sure that Americans who have — borrows [borrowers] who have loans and — and are squeezed by those loans are not able to, you know, buy a home, start a family.

    The president was very attuned to that and very clear that he wanted to give them an opportunity — an opportunity to really, you know, be able to — to start that life that they wanted.  And so, he’s been trying to do that, even though he’s been blocked and — and Republicans have gotten in the way. 

    I think you can see over the past — certainly, the past six months, the president continuing to try to take actions to — to make sure he kept his commitment to Americans who, again, need a little bit of breathing room.

    So, I’m not going to speak to the legal matter, but I think this announcement today shows his commitment to public service workers, right?  I talked about firefighters, nurses.  I talked about police officers, who put so much on the line, who give so much for — for everybody, for folks who need their assistance and their help, and wanted to give them that opportunity to really be able to — to move on economically in what they want to accomplish for themselves and for their family.

    All right.  Anything else?

    Q    On the —

    Q    So —

    Q    Sorry.  Go ahead.

    Q    Sorry.

    Now going back to the funeral for a minute.  Did he speak with Speaker Emeritus Pelosi?  And also, she was not seen at the Italian American celebration, when she’s been front and center in the past.  Was she not invited?

    MS. JEAN-PIERRE:  I — I don’t have anything to share with you on that.  I didn’t talk to the president about that at all.  But what you saw — obviously, you saw the president and the former president, Pres- — President Obama, connect, have a moment together.  The president m- — very much looked forward to that.  I just don’t have anything on Nancy Pelosi.

    Q    Just —

    Q    I noticed he didn’t recognize her when he recognized the other two presidents at the funeral.

    MS. JEAN-PIERRE:  Well, he wanted it — I can say this.  He wanted it to be, you know — to — to be very focused on the family.  He wanted it to be, you know, brief and — and very poignant.  And that’s what his focus was yesterday on his remarks.

    Q    On the trip.  Obviously, this is a abbreviated agenda from, you know, the Ramstein summit —

    MS. JEAN-PIERRE:  Yeah.

    Q    — and other things.

    MS. JEAN-PIERRE:  Yeah.

    Q    But can you explain to us, what’s the reason that it’s so short?  Why do we have to get out of Germany at 4:00 p.m. tomorrow?  Is there a reason on the German chancellor’s schedule why we have to —

    MS. JEAN-PIERRE:  So, I mean —

    Q    Regardless of the press conference, there was also talk about maybe doing a Holocaust memorial situation.  What’s —

    MS. JEAN-PIERRE:  No, I totally understand what — totally — as you — let’s step back for a second. 

    The reason that the president had to postpone his trip was because Hurricane Milton was coming, and it was — it was forecast to be a historical hurricane, and the president wanted to be in the States to deal with the response and what was needed, certainly, by the impacted region, for what folks on the ground really needed.

    And so, that’s why we postponed the trip.  We said that we wanted to certainly get that back on the books.  We were able to do it — to your point, a truncated version, but it is a robust schedule.  And we were able to work with the Germans and to be able to get done what we can on this trip.

    I mean, the president has a busy schedule.  He does.  There’s a lot going on in the next couple days, couple weeks.

    Q    But he has to get back to the States for something in particular —

    MS. JEAN-PIERRE:  I mean, we’ll —

    Q    — that we don’t know about?

    MS. JEAN-PIERRE:  We’re certainly going to share with you what the — his — the next couple of days of his schedule is going to look like.  But he wanted to — and I said this yesterday in the briefing room.  He wanted to thank the chancellor for his partnership, for his leadership as well with Ukraine.  Outside of the U.S., U- — the U- — German is the second — have provided the second-most resources, assistance to Ukrainians.

    And so, he wanted to be, you know, thankful to him.  And so, that’s what you’re seeing on this trip.  He wanted to make this happen.  He asked his team to make this trip happen.

    And so, look, we have a busy schedule.  We got a lot going on in next couple of days, next couple of weeks.  And so, we tried to fit this in, and this is what we were able to do in working with the German government as well to make this happen.

    Q    Does the president, as the election hits its final two weeks, expect to get more aggressive in outreach and participation?  Is that maybe what you’re referencing, or what’s his thinking on that?

    MS. JEAN-PIERRE:  So, you know I can’t speak to political trips or any- —

    Q    But if —

    MS. JEAN-PIERRE:  But wa- —

    Q    — you could speak on his schedule.

    MS. JEAN-PIERRE:  Well, I — I’m just — want to get that out of there.  And so, look, the president is certainly looking at — looking forward to being out there and supporting the vice president.

    I just want to be super mindful.  But he will — you’ll see him — you’ll see him hit the road.  You’ll see him hit the road, for sure.

    That’s all I got. 

    All right.  Thanks, everybody.  Sorry my voice is a little hoarse.

    Q    Thanks, Karine.

    MS. JEAN-PIERRE:  Thanks, everybody.

    2:45 P.M. EDT

    MIL OSI USA News

  • MIL-OSI Australia: Transcript – Press conference, Port of Burnie, Tasmania

    Source: Australian Ministers 1

    TASRAIL CEO, STEVEN DIETRICH: … I would like to begin the formalities with an acknowledgement of country. In recognition of the deep history and culture of this island of Lutruwita Tasmania, we would like to acknowledge the traditional owners of the land upon which we gather today, and pay our respects to elders past and present, for they hold the memories, the knowledge, and the culture and hopes of Aboriginal Tasmania.

    First up today, it is my pleasure – real pleasure to introduce a great supporter of TasRail. It’s not her first visit to the site, and I’m sure she can see a vast difference to when she was last here. The old shiploader was still here that had served us well for the last 50 years, and now with our new state of the art asset in place. So I’d like to introduce the Federal Minister for Infrastructure, Transport, Regional Development and Local Government, the Honourable Catherine King.

    [Applause]

    CATHERINE KING: Thanks very much, Steve, and it is terrific to be here in Burnie today. Can I too acknowledge the traditional custodians of the lands on which we gather, and pay my respects to elders past, present and emerging? To Premier Jeremy Rockliff, a great friend who’s been terrific to work with. And it’s lovely to see you back in the Infrastructure portfolio, and we’re doing lots of great work and great things in Tasmania together. Also to Senator Anne Urquhart, again, my friend and colleague, and to the mayor of Burnie, who’s also here with us today, and the many TasRail and TasPorts workers, staff who are here with us today as well.

    Look, this is a terrific day. As Steven mentioned, I was back here in 2022 with Anne. It was pouring with rain. I managed to score myself a pair of Tassie boots that have been to every single corner of the country, from the Tanami to all sorts of projects. So it’s terrific to be here again and to see the shiploader now, this – from 1968, it has served this community incredibly well.

    But this next generation now of a shiploader that really is part of the export story of Tasmania. This really is about not just the shiploader, it is about the bulk export minerals facility, which we’ll see work commencing on that – very happy as part of the $82 million to provide some extra money to ensure that that project is delivered as well. But really, this is about rail freight. It’s about- alongside this and the hubs further down, getting trucks off roads here in Tasmania, getting more freight onto rail, making sure you’ve got that connected freight routes out of our port into our export markets. It is about the economic story of Tasmania, and we’re very delighted to have been part of that story. And can I commend very much the work that has been done here, to come back in 2022, to wander on with our umbrellas under the shiploader, to understand the complexity of the engineering task, to be able to continue on a functioning port, to be able to develop and deliver this project really was quite a feat. And so I do want to say congratulations to that. And now the old shiploader, I think you’ve got most of the scrap metals now off site.

    So on behalf of the Albanese Labor Government, we’re really delighted to have funded the project- been part of the delivery of the project. But really, this is about the life of the next economic story for Tasmania. Very important to not just this state but the rest of the country, the work that you do here. I’m really delighted to be here today to, I think we call commission the ship loader formally. It is important to celebrate these occasions. I think when you’re working on these projects, it’s important to mark the occasion, important to celebrate that, and delighted to be here on behalf of the Albanese Labor Government, alongside Senator Urquhart, to do that today. Thank you for having me.

    [Applause]

    STEVEN DIETRICH: Thank you very much, Minister King. Really appreciate your kind words there. And we appreciate your support, and we also appreciate the Prime Minister’s support. The Prime Minister was here a couple of months ago and took the opportunity to climb right to the top. We thought he’d only stop halfway, but he wanted to go all the way to the top, so it was fantastic to provide him an opportunity and firsthand experience with our shiploader. So without further ado, please welcome the Premier of Tasmania, the Honourable Jeremy Rockliff.

    [Applause]

    JEREMY ROCKLIFF: Well, thanks very much, Steve, for the introduction. It’s fantastic to be here to celebrate new enabling infrastructure for the North West Coast of Tasmania, and more particularly, of course, our highly valuable mining industry in which I’ll come to in just a moment. Thanks Mayor Teeny for having us in your city. It’s great- always great to be in the powerhouse of the North West Coast, and indeed Tasmania, when it comes to the diverse region that we have. And we’re very lucky to have such diverse opportunities when it comes to our economic development here. Our forestry and mining industry, agriculture, aquaculture – we’ve got it all and we’re very, very fortunate, which is why it’s so important to have this investment in such key enabling infrastructure. 

    Catherine, thanks very much for you as Minister, being here alongside Anne as well, another very strong advocate for the North West Coast and Tasmania. It has been a pleasure to work alongside your government in recent times when it comes to putting on the agenda health infrastructure in Launceston. The Prime Minister and I were working together just last week when it comes to berth six at Macquarie Wharf – enabling, of course, a 30-year extension of Tasmania being the home to the Antarctic Gateway.

    But this is cause for celebration. We very much appreciate the significant investment that the Federal Government has made into what is enabling infrastructure. And along with it, acknowledging the key players and all players here today from TasRail, TasPorts, but also the Tasmanian Minerals and Energy Council here today represented by Vanessa and others. Mining is so crucial when it comes to our economy. It is a huge part of our GDP here in Tasmania. And to have this inter-generational infrastructure, if you like, much needed.

    I was infrastructure minister around 2018, and Steve and I were reflecting on that just yesterday, where we started the process going in terms of the need for a new shiploader. And here it is, with the work of TasRail and the cooperation with TasPorts. Thank you, Anthony Donald, for you being here as well, which we very much appreciate that cooperative arrangement between TasRail and TasPorts. But also, ensuring that we have not only new enabling infrastructure but infrastructure that is more efficient, infrastructure that is quicker, and infrastructure environmentally sound and also safer. And that’s why this key investment is welcomed by the State Government. Thank you again, Catherine. Thank you, TasRail, for what has been some journey. And if you’ll also indulge me as well, I’d like to commend our outgoing Member for Braddon, Gavin Pearce, for being on the journey as well alongside Anne Urquhart as well, which is fantastic.

    So, thank you for enabling me to be part of the event today. Very much appreciated. And all the very best to all those that work within such a critical sector and all those employees in TasRail, TasPorts and others that work so hard as we export out of Tasmania, which creates wealth and opportunity for Tasmanians and allows us to fund those essential services that Tasmanians all care about – health, housing, and addressing the challenges of the cost of living. Thank you very much.

    [Applause]

    STEVEN DIETRICH: Thank you very much, Premier. We’ve got a great relationship with government, and it’s your government’s support that’s been invaluable to see a very complex, sophisticated project like this delivered on time, on budget. So we really appreciate the support. Finally, I’d like to invite the Chairman of the TasRail board, Stephen Cantwell, to come up and say a few words. Thank you, Stephen.

    [Applause]

    STEPHEN CANTWELL: Thanks, Steve. Minister King, Premier Rockliff, Senator Urquhart, Mayor Brumby, other important guests. Let me say it’s really good to get to this point in the delivery of a project like this when you’re in the wheelhouse and have accountability for delivery. So thank you, Minister King, and thank you, Premier Rockliff, for supporting us and trusting us in the delivery of this asset, which is such an important component of the Tasmanian resources sector supply chain. Thank you also to our customers, many of whom are represented here today, for trusting us at TasRail day in, day out, with an important part and- by integrating us into and being an important part of your business.

    It’s also a great source of satisfaction and sort of worthy of comment that we were delighted at the end of a global tendering process to be in a position to award this contract to the local firm, COVA, and in doing that, opened the way for many other local businesses to participate in the delivery of this project. This asset is as good as it gets. It is state-of-the-art. By any measure, it is a world-leading piece of infrastructure. Going local and being drama-free in the delivery of a project such as this is a great demonstration of the depth of capability that we not only have here in Tasmania, but we have in the manufacturing sector in Australia. And it also reflects the value that can be had by keeping things local, so we particularly wanted to acknowledge the pride with which we’re able to say that we can do all of this locally.

    Now this project, by any measure, and nowadays, projects are described both in terms of their complexity and their – how complicated and how complex they are, and this is right up there. It wasn’t easy to deliver. There were many challenges along the way. And the extent to which TasRail has been able to deliver it within the agreed budget envelope and in the timeframe promised is largely a reflection of the quality of the people inside the organisation.

    As a mainlander, I’m continually amazed and inspired by the extent to which TasRail people and Tasmanians in general – I don’t know what it is, maybe it’s some sort of inferiority complex – but they always punch above their weight. And I think that’s held us in good stead in the delivery of this project. And so, I want to pay particular tribute to the quiet achievers who’ve just stepped up to the plate and got the job done. You see the product of their efforts here today. Thank you to you all indeed. This common use and asset you have created now will stand for decades for the benefit of all Tasmanians, and indeed all Australians, as we confirm to the world the credentials of our resources sector. Thank you.

    [Applause]

    STEVEN DIETRICH: Thank you, Chairman. Thank you for those words. And I would just like to acknowledge the Chairman and the whole TasRail board of directors for their support and trust in this project. I remember putting this Board paper up, one, first putting in the shovel ready justification to the Federal Government to enable a project, knowing that we had an old shiploader that needed to be replaced to provide certainty for decades to come through the North West and the mining industry. But putting a business case up, working it through with the Board and them putting their trust in myself, our Key Project Director Stephen Kerrison, and the entire Shiploader project team was really, really appreciated, and we delivered.

    So, this machine takes us to 2,000 tonnes per hour. the original machine probably operated at 1,000 tonnes per hour, so more efficient, more productive- the latest safety and environmental features. It also will facilitate future expansion of larger vessels. Most of our vessels at the moment are what you classify as Handymax type style vessels, and we’ll be able to accommodate Panamax vessels into the future. It’s a great asset built by Tasmanians. Can you believe an asset like this was built in Tasmania by Tasmanians?

    CATHERINE KING: Absolutely. 

    STEVEN DIETRICH: It’s fantastic. The Haywoods engineering, the engineering company at Somerset, the SAGE Automation people, IF&S – the technology that’s gone into this unit is just amazing. I won’t lie, there was a couple of nervous moments when we put the first tonne of dirt on and there was a couple of teething problems, and to be expected, but what a wonderful asset. We’ve got a couple of things to work through. COVA Haywood’s have been a fantastic contractor and we’ve got an asset here that will deliver for decades to come, enabling the industry a fully integrated supply chain that will take industry forward.

    And once we expand the bulk minerals bulk minerals export facility, currently we can hold 130,000 tonnes and we’ll be able to go to 150,000, enabling more mines to be able to grow in Tasmania and get their product out efficiently.

    So, I’m getting the wind up now, I’m conscious of time. Now, we do have some gifts for our political visitors which Kirsten and Samantha, I think they’re almost sure that we give those once the medias had some opportunity for questions. And we’re going to go and do some photography – we’re allowed to go for a walk out onto the berth and right up to the shiploader to platform one and have a look at the cabin, and we’d like to get a group photo up at platform one.

    So, thank you again. Really appreciate you coming here today and investing the time. It’s a momentous occasion for us, but it’s a momentous occasion for all Tasmanians and it’s an asset all Tasmanian’s can be proud of. Thank you very much.

    UNIDENTIFIED SPEAKER: Thank you.

    [Applause]

    CATHERINE KING: Questions if you want, but over here with Anne.

    JOURNALIST: I guess the last [indistinct] lasted 50 years. Do you know how long this one’s meant to last?

    CATHERINE KING: Well, let’s hope- it certainly is expected to last another 50 years. What an extraordinary investment. A 1968 facility now being replaced by a state-of-the-art shiploader which is much more efficient, will be able to load much more quickly. And also, it’s much quieter which is terrific, obviously, for the people of the Burnie, and we’ve obviously got ships often loading late at night.

    But, as I said, it’s not just about the shiploader. We’re about to see the project commence for the bulk mineral export facility. So, this old shed, again it is pre-1960s, to be replaced with the, again, a state of the art export facility here. But of course, we’ve also got the hub, which is a rail hub, an [indistinct] intermodal hub where we can also transport goods from there, which is really about getting more of our commodities, more of our minerals onto rail so we’re not seeing so many trucks onto the roads here.

    So this is a great freight story, but it’s also a great story for the economy here. I’m so delighted to hear just how many local companies have been involved in building this project – built by Tasmanians, for Tasmanians – really showing the complex engineering capability of the companies here in this community, and it’s something we should be incredibly proud of.

    JOURNALIST: Why is it important that we do keep jobs within the state?

    CATHERINE KING: Well, of course, because Tasmania is important not just to the state but to the economy of the whole country. You produce some beautiful products from here in your agriculture and aquaculture sector that are showcases to the rest of the world. Your minerals are exported all over the world as well. You’ve got an incredibly important economy here. I love coming down here. I love hearing the innovation and the – all of the new things people are doing. And really what this common user infrastructure, this shiploader here is doing, is providing that opportunity to continue to provide those mineral exports to the world.

    JOURNALIST: Apologies if this is, you know, common knowledge, but I guess I was reading the release from your office a couple- an old one, and it was saying the operational- it was meant to be operational by mid-2023. Why was there a delay?

    CATHERINE KING: Well, these are complex projects to build. As you know, trying to make sure that we’ve- a, we’ve got supply chain issues, but also trying to make sure the port continues to be operational so that there’s limited downtime to continue to be able to do that. So it’s complex to build, and so that’s really what happens with these facilities. So it started in May 2022 and here we are in 2024, finally commissioned, operational, loading ships today.

    Any other questions? Yeah.

    JOURNALIST: Do you agree with Lidia Thorpe’s actions yesterday? Is she exercising free speech?

    CATHERINE KING: Look, I think it was disappointing to see what happened yesterday. We were all there. You know, it’s important that, regardless of your views about a whole range of issues, to show respect to our institutions and our traditions. And I do think it was disappointing yesterday, but it was a very small, small part of what has been a really successful visit by Their Majesties, the King and the Queen, over the last couple of days. And I know that they were really delighted to be received and warmly welcomed by the Australian people.

    JOURNALIST: Sprit of Tasmania are part of the Federal and National Highway 1 essentially. From a Federal perspective, what is your view then of the debacle that’s been engulfing Tasmania in recent months?

    CATHERINE KING: Well look, really that’s a matter for the Tasmanian Government, and I don’t think it’s appropriate for me to comment there. TasPorts comes under the State Government, and I’m sure Premier Rockliff will be happy to answer questions there. We’re obviously, as part of the Federal Government, really proud to partner with the Tasmanian Government to deliver infrastructure such as the shiploader that you’re seeing here today.

    JOURNALIST: How can the Federal Government have confidence Tasmania will deliver projects on time and on budget, when that’s not what’s happened here?

    CATHERINE KING: Well, we’ve seen, with the shiploader, the incredible, great work that TasRail and TasPorts have done together to deliver this project. Our expectation of all our co delivery partners, whether it’s here in Tasmania or it’s on the mainland, is that they do work very closely with my department about the delivery of those. And this project, where we’ve been funding it, is been an important- it’s important to see that delivered and important that all levels of government, particularly when we’re working on mega projects, projects that are big and complex, that we do those gateway reviews, that we do keep an eye on the progress of those. That’s all?

    JOURNALIST: Just one more, sorry, if you [indistinct]…

    CATHERINE KING: Yes, of course.

    JOURNALIST: Should Lidia Thorpe resign from the Senate given she’s pledged allegiance to the King?

    CATHERINE KING: Can I just say really clearly, I think that what happened yesterday was disappointing and I think that it shouldn’t overshadow what has been a fantastic visit by Their Majesties. I think we saw them warmly welcomed all across the places that they visited, other than the alpaca sneezing on them – but I’m sure that will be memorable as well. I understand, from alpaca’s that’s a sign of affection. So really, I don’t think that that should overshadow it, and, really, what Lidia does is a matter for her.

    MIL OSI News

  • MIL-OSI China: Greater BRICS spearheads Global South cooperation as leaders meet in Kazan

    Source: China State Council Information Office

    This photo shows a view of the Kazan Kremlin in Kazan, Russia, Oct. 20, 2024. [Photo/Xinhua]

    Chinese President Xi Jinping will attend the 16th BRICS Summit on Oct. 22-24 in the Russian city of Kazan at the invitation of Russian President Vladimir Putin.

    BRICS is an acronym for Brazil, Russia, India, China, and South Africa, five major emerging markets with considerable economic potential. It has now evolved into an influential international cooperation mechanism with an expanded membership.

    Over the past 18 years, China has upheld the BRICS spirit of openness, inclusiveness, and win-win cooperation and helped drive the BRICS cooperation mechanism to a new level, serving as a constructive force for safeguarding world peace, promoting common development, improving global governance and facilitating democratization of international relations.

    This year marks the beginning of greater BRICS cooperation. During the upcoming summit, the first such gathering to be held after the BRICS expansion, Xi and leaders of other BRICS countries are expected to draw a blueprint for the development of its mechanism, inject new impetus into a multipolar world, facilitate economic globalization and democratization of international relations, and open up a new chapter for the solidarity and development of the Global South.

    New starting point

    “BRICS is an important force in shaping the international landscape. We choose our development paths independently, jointly defend our right to development, and march in tandem toward modernization. This represents the direction of the advancement of human society, and will profoundly impact the development process of the world,” said Xi during the 15th BRICS Summit in August 2023.

    Other than the countries that officially joined the BRICS family on Jan. 1, 2024, over 30 countries like Thailand, Malaysia, Türkiye and Azerbaijan have either formally applied for or expressed interest in its membership.

    After the expansion, the BRICS countries account for about 30 percent of the global GDP, nearly half of the global population and one-fifth of global trade.

    China has been committed to deepening mutually beneficial cooperation with its BRICS partners. In the first quarter of this year, China’s imports and exports to BRICS countries increased by more than 11 percent year on year.

    Ahmed Al-Ali, a researcher based in Dubai, the United Arab Emirates (UAE), said that the BRICS has become an important engine to drive global economic recovery and maintain world peace and stability thanks to its steady economic growth, and equal and extensive cooperation opportunities.

    “Ethiopia’s BRICS membership could significantly boost the country’s socio-economic development through various economic opportunities, including increased investment, expanded South-South cooperation and trade partnerships,” said Balew Demissie, a researcher at the Policy Studies Institute of Ethiopia.

    China’s cooperation with other BRICS members has strongly defended multilateralism and promoted the democratization of international relations, said Evandro Carvalho, a Brazilian professor at the Getulio Vargas Foundation, an economic think tank.

    The appeal of the BRICS cooperation mechanism comes from its spirit of openness, inclusiveness, and win-win cooperation. “BRICS countries gather not in a closed club or an exclusive circle, but a big family of mutual support and a partnership for win-win cooperation,” Xi said during the 14th BRICS Summit in June 2022.

    From the “BRICS Plus” cooperation approach proposed in 2017 to the historic expansion of BRICS membership, the mechanism is widely welcomed, with growing influence and appeal.

    The BRICS cooperation mechanism respects the interests of all parties involved and is an “attractive platform for cooperation and mutual benefit,” said Elshad Mammadov, an Azerbaijani economics expert.

    The BRICS Media Summit is held in Moscow, Russia, Sept. 14, 2024. [Photo/Xinhua]

    Fruitful achievements

    At present, the mechanism is at a crucial stage of building on past achievements and ushering in a new era of cooperation. China is working with other BRICS partners, embarking on a new journey of greater BRICS cooperation.

    “We should navigate the trend of our times and stay in the forefront. We should always bear in mind our founding purpose of strengthening ourselves through unity, enhance cooperation across the board, and build a high-quality partnership. We should help reform global governance to make it more just and equitable, and bring to the world more certainty, stability and positive energy,” Xi has said.

    Applauding more participants and exploring new ways of cooperation within the mechanism, the BRICS countries will also have more opportunities and their roles in the global arena will continue to expand, said Ivan Melnikov, first vice-chairman of the Russian State Duma and chairman of the Russia-China Friendship Association.

    China and its BRICS partners have worked together to advance practical cooperation and deepen mutual benefit, setting up projects such as the China-BRICS Science and Innovation Incubation Park for the New Era and the China-BRICS AI Development and Cooperation Center, as well as hosting the BRICS Forum on Partnership on New Industrial Revolution and BRICS Industrial Innovation Contest.

    Set up by the BRICS and opened in 2015, the New Development Bank (NDB) aims to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries.

    Meanwhile, people-to-people and cultural exchanges among BRICS countries are in full swing with popular events such as film festivals, sports games, and co-productions of films and documentaries.

    The first special session for BRICS countries of the International Youth Poetry Festival kicked off in the Southeastern Chinese city of Hangzhou in July, attracting 72 poets from BRICS countries.

    In mid-September, over 60 media leaders from more than 40 countries joined the BRICS Media Summit in Moscow, discussing the role of BRICS media in promoting a multipolar world.

    People-to-people exchanges have deepened among BRICS countries, and BRICS member states have worked towards a closer friendship, providing a “BRICS model” for promoting exchanges and mutual learning among civilizations, said Ahmed Hamadi, a political commentator of the Aletihad News Center of the UAE.

    A model of E190-E2 aircraft is on display at the exhibition of BRICS New Industrial Revolution 2024 in Xiamen, southeast China’s Fujian Province, Sept. 10, 2024. [Photo/Xinhua]

    Bright future

    Thanks to the concerted efforts of all parties, the BRICS has increasingly become an important force in shaping the international landscape and safeguarding global stability.

    The BRICS cooperation mechanism is now a key venue for emerging markets and developing countries to strengthen solidarity and cooperation and safeguard common interests, thereby serving as the most pivotal mechanism representing the Global South.

    China is a significant promoter of BRICS cooperation and a natural member of the Global South. Beijing has all along stood with other developing countries through thick and thin. While pursuing its own development, China has continuously provided new opportunities for the rest of the world by sharing its development dividends.

    “China’s role in promoting the continuous development of BRICS is significant,” said Zukiswa Roboji, a researcher at Walter Sisulu University in South Africa.

    The BRICS mechanism effectively promotes solidarity and cooperation among countries of the Global South, and enhances the representation of developing countries in global governance, and China has made positive contributions to raising the global influence of BRICS cooperation, Roboji said.

    The genuine multilateralism advocated by China and its efforts in promoting the modernization of the Global South have brought confidence and important strength to the world, said Bunn Nagara, director and senior fellow at Belt and Road Initiative Caucus for Asia-Pacific.

    “Today, China is exactly what the countries of the Global South want to be,” said Dilma Rousseff, former Brazilian president and president of the NDB, adding that China’s advocacy of more just and effective global governance is helping the world build a bright shared future.

    MIL OSI China News

  • MIL-OSI China: High-tech goods prove popular at Canton Fair

    Source: People’s Republic of China – State Council News

    A wide range of high-tech and high value-added products displayed at the first phase of the 136th China Import and Export Fair, also known as the Canton Fair, proved increasingly popular among overseas buyers, the event’s organizers said on Monday.

    The event’s first phase, which focused on China’s advanced manufacturing, concluded on Saturday in Guangzhou, the capital of Guangdong province, with digitalized, intelligent and green products emerging as major highlights of the exhibits.

    Among the 11,165 participating companies in the first phase, approximately 3,600 are related to digital technology and intelligent manufacturing, according to the organizers. Of these, 57.8 percent are enhancing their industrial chains through technology transformations involving big data, artificial intelligence and the industrial internet.

    Chinese exhibitors have showcased a plethora of new products, technologies, materials and processes, with 390,000 digital products on display, marking a 300 percent increase compared with the last session.

    High-end products including smart home appliances, new energy vehicles, industrial automation equipment, humanoid robots, intelligent bionic hands and hydrogen-powered bikes are increasingly popular, the organizers said.

    They also said the trend indicates that Chinese manufacturing is accelerating its pace toward the high end of the industrial and value chains, while the independent innovation capabilities of Chinese enterprises and the core competitiveness of Chinese products are continuing to strengthen.

    Xu Jiadong, sales manager of Skymen Technology Corp, said, “We have seen an increased number of buyers, especially those from emerging markets such as the Middle East and Southeast Asia, visiting our exhibition booth during the fair, showing interest in buying advanced ultrasonic cleaning products.”

    The Shenzhen, Guangdong province-based company’s overseas sales of ultrasonic cleaning products steadily increased in the first nine months of this year, reaching more than 60 million yuan ($8.4 million), Xu said.

    To meet the increased demand for advanced and intelligent ultrasonic cleaning products in overseas markets, the company launched operation of its manufacturing base in Shaoguan, Guangdong, in late 2023.

    More than 130,000 overseas buyers, an increase of 4.6 percent compared with the previous session, visited the fair’s first phase. Of these, 69.7 percent were from countries and regions involved in the Belt and Road Initiative, and around 20,000 buyers were from the Middle East, an increase of 44.2 percent compared with the previous session, according to the organizers.

    In addition, advanced products with high added value, such as industrial machines manufactured in China, have become increasingly popular in the overseas market, according to Yusuf Kandemir, CEO of Alshamela Group Trading Co.

    “The fair provides me with very valuable information, as we are looking for high-end industrial machinery suppliers from China,” said Kandemir, adding that such products are very much in demand, especially in the Middle East.

    The second phase of the fair will be held from Wednesday to Sunday, with 10,040 Chinese exhibitors showcasing household items, gifts and decorations, building materials and furniture.

    Spanning three phases, with both online and on-site exhibitions, the fair, which will run until Nov 4, aims to serve high-quality development and promote greater opening-up.

    MIL OSI China News

  • MIL-OSI China: Qualcomm unveils mobile platform featuring fastest mobile CPU

    Source: China State Council Information Office

    Qualcomm CEO Cristiano Amon introduces the mobile platform, named Snapdragon 8 Elite, at Qualcomm’s annual tech summit in Maui, Hawaii, the United States, on Oct. 21, 2024. [Photo/Xinhua]

    U.S. leading chip manufacturer Qualcomm on Monday unveiled its first Snapdragon Mobile Platform featuring the world’s fastest mobile CPU.

    The platform, named Snapdragon 8 Elite, was launched at Qualcomm’s annual tech summit in Maui, U.S. state of Hawaii.

    The platform powers a new era of on-device generative AI, built to handle the complexities of multi-modal AI seamlessly while prioritizing privacy.

    Snapdragon 8 Elite, featuring Qualcomm’s next generation custom-built Oryon CPU, is the most powerful and world’s fastest mobile system-on-a-chip ever, according to Qualcomm.

    The platform delivers improved performance and power efficiency across the board and transforms on-device experiences with support for multimodal generative AI, redefined AI photography, gaming and studio-quality audio — all backed by AI-enhanced connectivity.

    Earlier this year, Qualcomm debuted Oryon CPU in personal computers (PC).

    “We are so excited to bring the power of Qualcomm Oryon to our Snapdragon mobile platforms for the first time,” said Chris Patrick, senior vice president and general manager of mobile handsets, Qualcomm Technologies, Inc.

    “It’s a major leap forward and we expect consumers to be thrilled with the new experiences enabled by our CPU technology,” he said.

    The first-in-mobile Qualcomm Oryon CPU delivers a 45 percent performance boost, 44 percent greater power efficiency, and the mobile industry’s largest shared data cache, according to Qualcomm.

    The tech summit, named Snapdragon Summit, runs from Monday to Wednesday, during which the company launches its next-generation platforms and showcases innovative technologies that will power consumer devices and automobiles.

    MIL OSI China News