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>Weekly data for US banks shows good loan acceleration continuing in February, with less LLR, less large time deposits</li>
<li>The profit outlook for US banks is positive during 1Q25 given trends in high frequency data on loans, loan loss reserves, jumbo time deposits</li>
<li>Banks are seeing sharply higher growth rates in residential mortgage loans, where flow-through to economy is typically +ve</li>
</ul>


Weekly data for US banks shows good loan acceleration continuing in February, with less LLR, less large time deposits
The profit outlook for US banks is positive during 1Q25 given trends in high frequency data on loans, loan loss reserves, jumbo time deposits
Banks are seeing sharply higher growth rates in residential mortgage loans, where flow-through to economy is typically +ve


US Banks - Loan Acceleration Into February, Less LLR, Large Time Deposits: +ve Profit Outlook

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>The S&amp;P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.</li>
<li>In this insight, we take a look at the upcoming constituent changes in the run up to the March 2025 index rebal event.</li>
<li>We expect two regular changes in March 2025. There are also several live spin-off and M&amp;A events which are likely to trigger intra-review index changes before then.</li>
</ul>


The S&amp;P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
In this insight, we take a look at the upcoming constituent changes in the run up to the March 2025 index rebal event.
We expect two regular changes in March 2025. There are also several live spin-off and M&amp;A events which are likely to trigger intra-review index changes before then.


[Quiddity Index Jan25] S&P500/600 Mar25 Rebal: Multiple Intra-Review Changes Possible

Equity Bottom-Up

<ul>
<li>BAC shows strong growth of its core income in the period YoY, almost accounting for 100% of its full net profit delta YoY</li>
<li>The bank is showing greater strength in corporate lending YoY and QoQ, and this can be more powerful of a statement for economic health</li>
<li>NCO figures are coming down in corporate lending, while residential mortgages is seeing strong new originations - both are a good view on US economy</li>
</ul>


BAC shows strong growth of its core income in the period YoY, almost accounting for 100% of its full net profit delta YoY
The bank is showing greater strength in corporate lending YoY and QoQ, and this can be more powerful of a statement for economic health
NCO figures are coming down in corporate lending, while residential mortgages is seeing strong new originations - both are a good view on US economy


BAC - Almost All of Net Profit Delta YoY Is Core Income, with Strong Corporate Lending in QoQ

<ul>
<li>The 4Q24 results from JPM are strong with net profit up 50% YoY and 9% QoQ</li>
<li>The bank shows almost no deposit growth YoY but there is reasonable loan growth</li>
<li>While non-accrual loans are rising, JPM holds substantially and rising LLR for these</li>
</ul>


The 4Q24 results from JPM are strong with net profit up 50% YoY and 9% QoQ
The bank shows almost no deposit growth YoY but there is reasonable loan growth
While non-accrual loans are rising, JPM holds substantially and rising LLR for these


JPM - 4Q24 Results Show Continued Strength in Core Income, Rising Non-Accruals Well Covered by LLR

<ul>
<li>There are few large US banks where quarterly net interest income is more than 1.6x higher now on average than in late FY19 and early FY20</li>
<li>JPM demonstrates some of the best asset-liability management (ALM) of any major bank in the US</li>
<li>Other risks and parts of the business appear to be very well managed too, including credit risk and operating costs</li>
</ul>


There are few large US banks where quarterly net interest income is more than 1.6x higher now on average than in late FY19 and early FY20
JPM demonstrates some of the best asset-liability management (ALM) of any major bank in the US
Other risks and parts of the business appear to be very well managed too, including credit risk and operating costs


JPM - Exceptional Core Income Strength, ALM Is Excellent, HFD for US Banks Supports Outlook

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 - Loan Acceleration Into February, Less LLR, Large Time Deposits: +ve Profit Outlook

US banks are seeing accelerating loan growth with lower loan loss reserves and less large time deposits, in HFD during Jan and Feb. The...

Daniel Tabbush

[Quiddity Index Jan25] S&P500/600 Mar25 Rebal: Multiple Intra-Review Changes Possible

Q1 has a bunch of deals nearing completion. We could see a couple of intra-review changes before the announcement of the March rebal. I expect we...

Travis Lundy

BAC - Almost All of Net Profit Delta YoY Is Core Income, with Strong Corporate Lending in QoQ

BAC is showing most all of its net profit delta in the past year coming from core income, which is positive. Its corporate lending appears strong,...

Daniel Tabbush

JPM - 4Q24 Results Show Continued Strength in Core Income, Rising Non-Accruals Well Covered by LLR

The 4Q24 results from JPM are just out, with very strong growth in net profit, good cost controls and strong ALM still, with LDR expansion. Rising...

Daniel Tabbush

JPM - Exceptional Core Income Strength, ALM Is Excellent, HFD for US Banks Supports Outlook

JPM shows some of the best rise of quarterly net interest income in US banking, and we believe this is very much due strong ALM, which is core to...

Daniel Tabbush

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