Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

Bank of the Philippine Islands / Equity Bottom-Up

<ul><li>Sometimes it is better to stick to the larger banks in markets that are especially illiquid, like Philippines.</li><li>The largest banks are BDO Unibank and Bank of Philippine Islands, which are often considered the same risk; they aren&rsquo;t.</li><li>Where BPI has a higher market value relative to its assets compared with BDO, we are not sure this is justified.</li></ul>

Sometimes it is better to stick to the larger banks in markets that are especially illiquid, like Philippines.The largest banks are BDO Unibank and Bank of Philippine Islands, which are often considered the same risk; they aren&rsquo;t.Where BPI has a higher market value relative to its assets compared with BDO, we are not sure this is justified.

Thematic (Sector/Industry)

PNB has seen its NPLs collapse. Its capital is higher than domestic peers - and most in Asia. &nbsp;Yet it's market capitalization is 50-75% lower than peers in Philippines. This will not last as credit costs narrow, costs come in, and fee income improves.&nbsp;

PNB has seen its NPLs collapse. Its capital is higher than domestic peers - and most in Asia. &nbsp;Yet it's market capitalization is 50-75% lower than peers in Philippines. This will not last as credit costs narrow, costs come in, and fee income improves.&nbsp;

PNB is over looked by most, but better capitalized, and with turnaround features

<ul><li>A likely Russian credit and currency crisis, the weakening Euro and ineptitude of BoJ &nbsp;combine to create a world of worry in markets and bank stocks in particular. The way this usually plays out is first with liquidity.&nbsp; </li><li>Banks pull credit lines from weaker banks (and weaker companies).&nbsp; </li><li>If a bank has a loan to deposit ratio (LDR) above 100%, it is often difficult to repay the redeemed credit line, as it means disposing of an asset, a loan – immediately. &nbsp; </li></ul>

A likely Russian credit and currency crisis, the weakening Euro and ineptitude of BoJ &nbsp;combine to create a world of worry in markets and bank stocks in particular. The way this usually plays out is first with liquidity.&nbsp; Banks pull credit lines from weaker banks (and weaker companies).&nbsp; If a bank has a loan to deposit ratio (LDR) above 100%, it is often difficult to repay the redeemed credit line, as it means disposing of an asset, a loan – immediately. &nbsp; 

Philippines

BDO Unibank Inc provides banking services. The Bank offers saving accounts, investment, loans, credit and debit cards, remittance, insurance, and trade financing services. BDO Unibank serves customers in Philippines.

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BDO Unibank Inc (BDO PM)

BDO, BPI are not homogenous

Sometimes it is better to stick to the larger banks in markets that are especially illiquid, like Philippines. The largest banks are BDO Unibank...

Daniel Tabbush

PNB is over looked by most, but better capitalized, and with turnaround features

PNB has seen its NPLs collapse. Its capital is higher than domestic peers - and most in Asia. Yet it's market capitalization is 50-75% lower than...

Daniel Tabbush

Be Wary of High LDR Banks at Present

A likely Russian credit and currency crisis, the weakening Euro and ineptitude of BoJ combine to create a world of worry in markets and bank...

Daniel Tabbush

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