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>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; 

Equity Bottom-Up

Indonesia’s <a href="https://www.smartkarma.com/entities/bank-mestika-dharma-tbk-pt" target="_blank" data-smartkarma-citation="entities:9566:1" rel="noopener">Bank Mestika Dharma (BBMD IJ)</a> may be one of Asia’s and indeed the world’s first banks to report earnings through the end of September. The figures are telling, where credit costs are not only down, but they are in reversal. We believe this is the most important theme for banks globally, where the credit cost delta can be radical as we move completely away from the dire days early in the year, to re-opened economies. This is especially the case where C19 mortality rates are now statistically insignificant in most all countries.

Indonesia’s Bank Mestika Dharma (BBMD IJ) may be one of Asia’s and indeed the world’s first banks to report earnings through the end of September. The figures are telling, where credit costs are not only down, but they are in reversal. We believe this is the most important theme for banks globally, where the credit cost delta can be radical as we move completely away from the dire days early in the year, to re-opened economies. This is especially the case where C19 mortality rates are now statistically insignificant in most all countries. 

Bank Mestika Dharma – September Quarter Reversals Surge

Indonesia

PT Bank Mestika Dharma Tbk is an Indonesia-based company that provides a comprehensive range of banking products and services for individual consumers and small and medium-sized enterprises. Its offerings include various savings accounts, current accounts, time deposits, and different types of loans, alongside digital banking solutions such as mobile and internet banking. The company was established in 1955 and is headquartered in Medan, Indonesia.

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Bank Mestika Dharma (BBMD IJ)

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

Bank Mestika Dharma – September Quarter Reversals Surge

Bank Mestika Dharma is one of the first banks globally to be reporting 3Q numbers, and it should portend a reversal in credit costs.

Daniel Tabbush

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