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>US large banks' new balance sheet data for 27 September show surging cash at +USD90bn in the week putting YoY growth highest all year, at 11.6%. This is risk aversion.</li>
<li>Commercial &amp; Industrial lending, shows another subdued week, down USD1bn to 27 Sept WoW, and YoY growth at 0.36% compared with 12.5% early this year. Suggests a weak underlying economy.</li>
<li>CRE lending growth remains negative, and book value growth worsens in past 2 weeks, from +USD9.4bn to +USD4.0bn and now to +0.4bn WoW. </li>
</ul>


US large banks' new balance sheet data for 27 September show surging cash at +USD90bn in the week putting YoY growth highest all year, at 11.6%. This is risk aversion.
Commercial &amp; Industrial lending, shows another subdued week, down USD1bn to 27 Sept WoW, and YoY growth at 0.36% compared with 12.5% early this year. Suggests a weak underlying economy.
CRE lending growth remains negative, and book value growth worsens in past 2 weeks, from +USD9.4bn to +USD4.0bn and now to +0.4bn WoW. 


US Banks - Cash +USD90bn in Week, CRE  -0.55% YoY, C&I +0.36% YoY, Book Value Growth Dwindles 3 Wks

<ul>
<li>Weekly balance sheets to 20 September show worsening general trends for large US banks, that can point to risk aversion, and worse net interest income and profit delta. </li>
<li>Loan growth ratcheted well lower from 2.04% YoY three weeks ago, to 1.89% two weeks ago and now to 1.54% in most recent week's data. CRE loans see worsening contraction. </li>
<li>Large US banks continue to accelerating growth in Jumbo Time Deposits, now at 89.0% YoY vs 85.8% in preceding week. These are now 6.8% of deposits, 2.1% higher WoW. </li>
</ul>


Weekly balance sheets to 20 September show worsening general trends for large US banks, that can point to risk aversion, and worse net interest income and profit delta. 
Loan growth ratcheted well lower from 2.04% YoY three weeks ago, to 1.89% two weeks ago and now to 1.54% in most recent week's data. CRE loans see worsening contraction. 
Large US banks continue to accelerating growth in Jumbo Time Deposits, now at 89.0% YoY vs 85.8% in preceding week. These are now 6.8% of deposits, 2.1% higher WoW. 


US Big Banks - Wkly B/S 20 Sep, Slower Loans +1.5%, CRE -0.5%, Big Term-Deposits Up to 6.8% of Total

<ul>
<li>US large banks are showing more cash emphasis in the latest weekly data, increased signs of risk aversion, with MBS in sharp decline and CRE loans</li>
<li>Loan loss reserves continue to rise at over 18% YoY, and this will mean that banks are taking a lot more credit costs, impacting returns, net profit growth</li>
<li>Large time deposits accelerating, up 88.0% YoY in the most recent week; with all of these points, perhaps it is no wonder that shareholders' equity is stagnant?</li>
</ul>


US large banks are showing more cash emphasis in the latest weekly data, increased signs of risk aversion, with MBS in sharp decline and CRE loans
Loan loss reserves continue to rise at over 18% YoY, and this will mean that banks are taking a lot more credit costs, impacting returns, net profit growth
Large time deposits accelerating, up 88.0% YoY in the most recent week; with all of these points, perhaps it is no wonder that shareholders' equity is stagnant?


US Large Banks - New B/S Data: CRE Craters, MBS Sharp Decline, LLR & Big Fixed Deposits Up+, SE Flat

<ul>
<li>De-Risking is well in place in weekly balance sheet for US banks. Cash rose USD122bn in past 2 weeks, loans rose USD31bn, and deposits rose USD113bn. CRE loans are down.</li>
<li>US banks' LDR <em>was</em> rising a lot, from 58.6% low in week of 15 December 2021 to 69.3% in the most recent week's data; they do not want the money.</li>
<li>The increase in large time deposits, which cost more than other deposits, is now 82.8% YoY in the most recent week; this YoY growth was 71.0% just 9 weeks earlier.</li>
</ul>


De-Risking is well in place in weekly balance sheet for US banks. Cash rose USD122bn in past 2 weeks, loans rose USD31bn, and deposits rose USD113bn. CRE loans are down.
US banks' LDR was rising a lot, from 58.6% low in week of 15 December 2021 to 69.3% in the most recent week's data; they do not want the money.
The increase in large time deposits, which cost more than other deposits, is now 82.8% YoY in the most recent week; this YoY growth was 71.0% just 9 weeks earlier.


US Banks - Added $122bn Cash In Past 2 Weeks | Loans up $31bn | CRE Loans Down | Deposits up $113bn

<ul>
<li>Large US banks show -0.2% growth YoY in CRE loans at 30 August week, completely at odds with small US banks, showing 11.3% YoY growth, more than total loan growth</li>
<li>Large time deposit at large banks are now up 80.1% YoY, accelerating, with only 1.95% YoY loan growth, negative implications for net interest income delta</li>
<li>Small banks have 1.44% LLR/loans vs large banks at 1.85%; small banks have capital/loans at 15.2% vs 22.2% for large banks; despite small banks' higher CRE lending</li>
</ul>


Large US banks show -0.2% growth YoY in CRE loans at 30 August week, completely at odds with small US banks, showing 11.3% YoY growth, more than total loan growth
Large time deposit at large banks are now up 80.1% YoY, accelerating, with only 1.95% YoY loan growth, negative implications for net interest income delta
Small banks have 1.44% LLR/loans vs large banks at 1.85%; small banks have capital/loans at 15.2% vs 22.2% for large banks; despite small banks' higher CRE lending


US Banks - New HFD | Big Bnks CRE -0.2%, Big FD's +80% | Sm. Bnks CRE +11% | LLR, Capital: Divergent

United States

Comerica Incorporated is the holding company for business, individual, and investment banks with operations in the United States, Canada, and Mexico.  The Company's subsidiaries provide services such as corporate banking, international finance, treasury management, community banking, private banking, small business and individual lending, investment services, and institutional trust.

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Comerica Inc (CMA US)

US Banks - Cash +USD90bn in Week, CRE -0.55% YoY, C&I +0.36% YoY, Book Value Growth Dwindles 3 Wks

New weekly balance sheet data shows USD90bn surge in cash assets in the most recent week. Growth YoY has never been higher this year. There are...

Daniel Tabbush

US Big Banks - Wkly B/S 20 Sep, Slower Loans +1.5%, CRE -0.5%, Big Term-Deposits Up to 6.8% of Total

New balance sheet data US big banks: weaker loan growth, more negative for CRE, higher big term deposits. Loan loss reserves continue to rise fast....

Daniel Tabbush

US Large Banks - New B/S Data: CRE Craters, MBS Sharp Decline, LLR & Big Fixed Deposits Up+, SE Flat

HFD shows risk aversion increasing at large US banks. LLR rising a lot and big fixed time deposits, can mean worsening net profit delta. With less...

Daniel Tabbush

US Banks - Added $122bn Cash In Past 2 Weeks | Loans up $31bn | CRE Loans Down | Deposits up $113bn

US banks are de-risking. Weekly balance sheet data shows almost all new deposits coming in moving into cash. Jumbo time deposits now far higher to...

Daniel Tabbush

US Banks - New HFD | Big Bnks CRE -0.2%, Big FD's +80% | Sm. Bnks CRE +11% | LLR, Capital: Divergent

New weekly balance sheets: large banks at -0.2% CRE loan growth, first time negative this year; small banks at 11% CRE loan growth. Large banks'...

Daniel Tabbush

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