Daily Brief Financials: Rakuten Bank, Ethereum, Triple Point Social Housing REIT and more

• Rakuten Bank’s IPO will add an attractively valued Japanese neobank to the globally listed neobank universe; furthermore, the Rakuten Group ecosystem is a powerful tool for customer acquisition and retention
• On efficiency metrics, Rakuten Bank scores well versus its key domestic peers as well as global comparables; Rakuten Group companies act as a key conduit for new clients
• At the announced issue price of ¥1,400, Rakuten Bank’s PBV ratio implies an attractive 25% discount to its core Japanese peer SBI Sumishin Net Bank, for similar ROE

• It’s a truism within the industry that crypto is not an effective tool for crime.
• Yes, it’s possible to send value without an intermediary, but all transactions leave a permanent trace that can become more visible over time as tracking tools improve.
• It’s even possible to track funds that move through Tornado Cash – a protocol built specifically to enhance privacy by obfuscating token flows. 

Triple Point Social Housing REIT’s (SOHO’s) FY22 results were robust. Indexed rent growth compensated for higher debt costs and expected credit losses, and the DPS target was met. Income and dividends have grown each year since listing, while the company has generated strong social returns. We expect progress in FY23 despite a continuation of credit losses, for which SOHO has set out a path to recovery. Sector issues raised by the regulator continue to generate uncertainty despite a positive response and good performance from many lessees, and tangible progress at others. This seems unrecognised in the share price.