Senior Bank Analyst - Japanese Banks, Windamee Research

J. Brian Waterhouse

J. Brian Waterhouse has been covering the Japanese financial sector as an analyst continuously since 1976, working for CLSA, Japaninvest, Rabobank, HSBC Securities, James Capel, Marine Midland Bank of New York and National & Grindlays Bank.  He has been ranked No.1 overall in Japanese banks research in Japan by Asiamoney for 6 of the past 9 years and was runner-up in 2015.  He was awarded the coveted Starmine prize as top Japanese bank stock picker in 2012 and 2014 and was runner-up in 2013.  He frequently appears on TV, radio and in international print media as a commentator on Japanese banking.

Senior Bank Analyst - Japanese Banks

Iyo Bank  (8385 JP):  The Return of the Pirate's Smile

Hyakujushi Bank (8386 JP):  In the Stocks with Investors

Windamee Research

Japanese Banks

Equity Bottom-Up

As we warned in our previous Smartkarma Insight on <a href="https://www.smartkarma.com/entities/hyakujushi-bank-ltd" target="_blank" data-smartkarma-citation="entities:20502:1" rel="noopener">Hyakujushi Bank (8386 JP)</a>, <a href="https://www.smartkarma.com/insights/hyakujushi-bank-8386-jp-in-the-stocks-with-investors" target="_blank" data-smartkarma-citation="insights:42773" rel="noopener">Hyakujushi Bank (8386 JP):  In the Stocks with Investors</a>, the bank has now had to issue a profit warning for both 1H FY3/2021 and FY3/2021, slashing its interim guidance from consolidated net profits of ¥2.3 billion to a consolidated net loss of ¥1.6 billion.  The bank has in addition lowered its full-year guidance by ¥3 billion to just ¥500 million: a reduction of 87.5%.  The problem is burgeoning valuation losses on securities. While the interim dividend of ¥40/share is being maintained despite the likely 1H loss, the final dividend has been cut from ¥40/share to ¥30/share.
Foreign investors continue to own around 11% of outstanding shares despite the bank’s long-standing structural issues, low efficiency, demanding valuations (FY3/2021 PER now exceeds 100x!) and continuing reliance on volatile non-core income sources to prop up flagging revenues.  Caveat emptor!  (May the Buyer Beware!)

As we warned in our previous Smartkarma Insight on Hyakujushi Bank (8386 JP), Hyakujushi Bank (8386 JP):  In the Stocks with Investors, the bank has now had to issue a profit warning for both 1H FY3/2021 and FY3/2021, slashing its interim guidance from consolidated net profits of ¥2.3 billion to a consolidated net loss of ¥1.6 billion.  The bank has in addition lowered its full-year guidance by ¥3 billion to just ¥500 million: a reduction of 87.5%.  The problem is burgeoning valuation losses on securities. While the interim dividend of ¥40/share is being maintained despite the likely 1H loss, the final dividend has been cut from ¥40/share to ¥30/share.
Foreign investors continue to own around 11% of outstanding shares despite the bank’s long-standing structural issues, low efficiency, demanding valuations (FY3/2021 PER now exceeds 100x!) and continuing reliance on volatile non-core income sources to prop up flagging revenues.  Caveat emptor!  (May the Buyer Beware!)

Hyakujushi Bank (8336 JP):  The First Cut Is the Deepest