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>The risk for US small banks is clear with the major charge taken by <a href="https://www.smartkarma.com/entities/new-york-community-bancorp" target="_blank" data-smartkarma-citation="entities:1193:1" rel="noopener">New York Community Bank (NYCB US)</a> for its CRE exposure</li>
<li>Small banks in the US, those outside the largest 25 by assets, have 45% of their loans in CRE which equates to 2.9x shareholders' equity </li>
<li>The reality is that NYCB's credit costs are now far higher than in the recessionary period of the early 1990s, showing what some banks can face in coming quarters</li>
</ul>


The risk for US small banks is clear with the major charge taken by New York Community Bank (NYCB US) for its CRE exposure
Small banks in the US, those outside the largest 25 by assets, have 45% of their loans in CRE which equates to 2.9x shareholders' equity 
The reality is that NYCB's credit costs are now far higher than in the recessionary period of the early 1990s, showing what some banks can face in coming quarters


US Banks - NYCB Credit Costs Are Much Higher than in the Early 1990s

<ul>
<li>Large US banks saw loans down USD22bn from 28 Jun to 16 Aug vs 5bn decline preceding</li>
<li>Weekly data in preceding several weeks shows combined USD18bn decline: it's worsening</li>
<li>Large time deposits, at large US banks, up 76% YoY at 16 Aug - growth is 'off the charts' </li>
</ul>


Large US banks saw loans down USD22bn from 28 Jun to 16 Aug vs 5bn decline preceding
Weekly data in preceding several weeks shows combined USD18bn decline: it's worsening
Large time deposits, at large US banks, up 76% YoY at 16 Aug - growth is 'off the charts' 


US Banks - New HFD Shows Loans Down $22bn From 28 Jun To 16 Aug & Large Time Deposits up 76% YoY

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>KeyCorp reported robust financial performance for the second quarter of 2025 amidst a dynamic macroeconomic environment.</li><li>The company's earnings per share were $0.35, sustained by a $36 million addition to loan loss reserves and strategic pre-funding of its charitable foundation.</li><li>Revenues increased by 21% year-over-year, while expenses saw a 6% rise, excluding the charitable contribution.</li></ul>

KeyCorp reported robust financial performance for the second quarter of 2025 amidst a dynamic macroeconomic environment.The company's earnings per share were $0.35, sustained by a $36 million addition to loan loss reserves and strategic pre-funding of its charitable foundation.Revenues increased by 21% year-over-year, while expenses saw a 6% rise, excluding the charitable contribution.

KeyCorp: Optimization of Deposit & Liquidity Management to Support Anticipated Loan Growth & Ensure A Stable Funding Base!

<ul><li>KeyCorp has delivered a strong performance in its first quarter of 2025, despite operating in an uncertain macroeconomic environment marked by potential economic slowdowns, geopolitical tensions, and volatile financial markets.</li><li>KeyCorp's focused strategic execution and robust financial health underpin its ability to navigate these challenges.</li><li>For the quarter, KeyCorp reported an impressive 16% increase in revenues year-over-year, with stable expenses contributing to a substantial rise in pre-provision net revenue.</li></ul>

KeyCorp has delivered a strong performance in its first quarter of 2025, despite operating in an uncertain macroeconomic environment marked by potential economic slowdowns, geopolitical tensions, and volatile financial markets.KeyCorp's focused strategic execution and robust financial health underpin its ability to navigate these challenges.For the quarter, KeyCorp reported an impressive 16% increase in revenues year-over-year, with stable expenses contributing to a substantial rise in pre-provision net revenue.

KeyCorp: The Top 6 Influences on Its Performance for 2025 & the Future!

<ul>
<li>The Fed's Michael Barr has proposed recommendations to adjust Basel III rules, calculations on 11 September, so this is very new</li>
<li>JPM, CITI, BAC, GS, MS, WFC, SST, are G-SIBs in the US in order of 'importance to system' so that JPM is ranked as first and State Street the lowest</li>
<li>Of these banks, only WFC has seen its loans contract over the past two and a half years, which can mean it is marginally better prepared</li>
</ul>


The Fed's Michael Barr has proposed recommendations to adjust Basel III rules, calculations on 11 September, so this is very new
JPM, CITI, BAC, GS, MS, WFC, SST, are G-SIBs in the US in order of 'importance to system' so that JPM is ranked as first and State Street the lowest
Of these banks, only WFC has seen its loans contract over the past two and a half years, which can mean it is marginally better prepared


US Banks and New Capital Rules - GSIBs 9% More Capital, Can Impact Lending, WFC Stands Out Best

United States

KeyCorp is a financial services holding company.  The Company provides a wide range of retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients.

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Keycorp (KEY US)

US Banks - NYCB Credit Costs Are Much Higher than in the Early 1990s

US CRE loan risk is clearest now with the NYCB charge taken in 4Q23, putting its credit costs now well higher than the recessionary period in...

Daniel Tabbush

US Banks - New HFD Shows Loans Down $22bn From 28 Jun To 16 Aug & Large Time Deposits up 76% YoY

US banks' HFD data shows loans down $22bn in recent weeks - a major worsening - and 76% growth in the latest week YoY for large time deposits. B/S...

Daniel Tabbush

KeyCorp: Optimization of Deposit & Liquidity Management to Support Anticipated Loan Growth & Ensure A Stable Funding Base!

KeyCorp reported robust financial performance for the second quarter of 2025 amidst a dynamic macroeconomic environment. The company's earnings...

Baptista Research

KeyCorp: The Top 6 Influences on Its Performance for 2025 & the Future!

KeyCorp has delivered a strong performance in its first quarter of 2025, despite operating in an uncertain macroeconomic environment marked by...

Baptista Research

US Banks and New Capital Rules - GSIBs 9% More Capital, Can Impact Lending, WFC Stands Out Best

New proposals on capital regulations for banks can mean more capital for the largest banks, but there are major differences between the GSIBs.

Daniel Tabbush

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