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.

Thematic (Sector/Industry)

<ul>
<li>High-Frequency data for balance sheets of US banks is just released</li>
<li>Contra-Asset account, loan loss reserves, rapid rise suggests far worse credit metrics </li>
<li>US banks can see hits on all fronts: volume, funding, credit costs, regulatory capital</li>
</ul>


High-Frequency data for balance sheets of US banks is just released
Contra-Asset account, loan loss reserves, rapid rise suggests far worse credit metrics 
US banks can see hits on all fronts: volume, funding, credit costs, regulatory capital


US Banks - Weekly Balance Sheet Data Suggests Rapid Growth Of Credit Costs

<ul>
<li>New high frequency data from the Fed in its weekly H8 series for US banks, shows loan growth at 5.22% YoY in week 12 November</li>
<li>There has not been a higher rate in a long time, since mid FY23 where the data is distorted from a low base effect in FY22</li>
<li>Steepening slope of weekly loan growth together with no real rise in loan loss allowance, gives a strong view of US credit metrics, demand</li>
</ul>


New high frequency data from the Fed in its weekly H8 series for US banks, shows loan growth at 5.22% YoY in week 12 November
There has not been a higher rate in a long time, since mid FY23 where the data is distorted from a low base effect in FY22
Steepening slope of weekly loan growth together with no real rise in loan loss allowance, gives a strong view of US credit metrics, demand


US Banks - New HFD Shows Loans Accelerating Further at 5.22% YoY, Highest Pace in 2 Years

<ul>
<li>There is good HFD out from the Fed on weekly balance sheets and commercial paper outstanding, suggesting continued underlying strength</li>
<li>CP outstanding for non-financials is rising at rate of 19% YoY in most recent week, which is relatively strong growth for short duration working capital</li>
<li>Weekly loan growth data is 5.09% YoY for week of 5 November, one of highest growth rates in recent weeks, with LDR expansion accelerating</li>
</ul>


There is good HFD out from the Fed on weekly balance sheets and commercial paper outstanding, suggesting continued underlying strength
CP outstanding for non-financials is rising at rate of 19% YoY in most recent week, which is relatively strong growth for short duration working capital
Weekly loan growth data is 5.09% YoY for week of 5 November, one of highest growth rates in recent weeks, with LDR expansion accelerating


US Banks - CP at +19% YoY, LDR Expansion Accelerates, Weekly Loans +5% YoY

<ul>
<li>Fed quarterly data on net charge-off rates (NCO) and delinquency rates, does not suggest any major concerns</li>
<li>The data is partly backwards looking, and does not include Tricolor, First Brands, but still, data appears benign</li>
<li>Growth in NCO and delinquencies since FY20-FY22 is skewed due to coming off of forbearance, lower rates, can help total figures in coming quarters</li>
</ul>


Fed quarterly data on net charge-off rates (NCO) and delinquency rates, does not suggest any major concerns
The data is partly backwards looking, and does not include Tricolor, First Brands, but still, data appears benign
Growth in NCO and delinquencies since FY20-FY22 is skewed due to coming off of forbearance, lower rates, can help total figures in coming quarters


US Banks - Quarterly NCO Rate in 2Q25 -4.7% QoQ, Delinquency Rates -1.9% QoQ

<ul>
<li>The comment by <a href="https://www.smartkarma.com/entities/jpmorgan-chase-co" target="_blank" data-smartkarma-citation="entities:277:1" rel="noopener">JPMorgan Chase &amp; Co (JPM US)</a> about its two bad loans suggesting there will be more, something like 'cockroaches' coming out from nowhere. </li>
<li>The weekly data from H8 filings at the Fed have been showing lower LLR for many weeks, suggesting a better credit environment not worsening - whatever the animal.</li>
<li>The reality is that most banks that have announced in the US are showing lower credit costs, lower NPLs or benign growth in bad loans. </li>
</ul>


The comment by JPMorgan Chase &amp; Co (JPM US) about its two bad loans suggesting there will be more, something like 'cockroaches' coming out from nowhere. 
The weekly data from H8 filings at the Fed have been showing lower LLR for many weeks, suggesting a better credit environment not worsening - whatever the animal.
The reality is that most banks that have announced in the US are showing lower credit costs, lower NPLs or benign growth in bad loans. 


US Banks - Cockroaches? Weekly LLR Only 0.32% YoY. Comment Appears to Be In Contrast to Data

United States

Capital One Financial Corporation is a diversified bank. The Bank, through its subsidiaries, offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients both domestically and internationally.  Capital One has bank locations in Connecticut, Louisiana, New Jersey, New York, and Texas.

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Capital One Financial (COF US)

US Banks - Weekly Balance Sheet Data Suggests Rapid Growth Of Credit Costs

Weekly balance sheet data for US banks is released every Saturday and the data through 14 June suggests major worsening in credit metrics at large...

Daniel Tabbush

US Banks - New HFD Shows Loans Accelerating Further at 5.22% YoY, Highest Pace in 2 Years

New weekly data from the Fed shows loans accelerating for US banks and with loan loss reserves still stable, suggesting strong credit market, overall.

Daniel Tabbush

US Banks - CP at +19% YoY, LDR Expansion Accelerates, Weekly Loans +5% YoY

High frequency data from Fed on commercial paper and balance sheets is positive. Loans are accelerating to 5% YoY and CP is at 19% YoY, with LDR...

Daniel Tabbush

US Banks - Quarterly NCO Rate in 2Q25 -4.7% QoQ, Delinquency Rates -1.9% QoQ

Fed quarterly data on NCO and delinquencies, does not suggest any systemic malaise in credit markets. Will be interesting to see how data changes...

Daniel Tabbush

US Banks - Cockroaches? Weekly LLR Only 0.32% YoY. Comment Appears to Be In Contrast to Data

Comment from JPM seems to be in contrast to US bank data, where there are no major or systemic signs of credit deterioration, rather it is the...

Daniel Tabbush

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