Asian bank research and consultancy, Tabbush Report

Daniel Tabbush

Asian bank 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)

Paraguay Banks / Thematic (Sector/Industry)

We have seen with many European and US banks, a sharp reduction of credit costs during 2Q20 compared with 1Q20.  Even in Japan some banks have taken exceptionally high credit costs during the March quarter, suggesting there can be a major reduction during 1Q21 ending in June. There is an altogether different concern from some of Latin America’s largest banks. <a href="https://www.smartkarma.com/entities/itau-unibanco-holding-sa-9d47d196-e503-471b-a84e-ca4401033062" target="_blank" data-smartkarma-citation="entities:24550:1" rel="noopener">Itau Unibanco Holding Sa (ITUB4 BZ)</a> and <a href="https://www.smartkarma.com/entities/banco-santander-mexico-sa-in" target="_blank" data-smartkarma-citation="entities:27672:1" rel="noopener">Banco Santander Mexico-B (BSMXB MM)</a> are two that stand out, with incredibly low provision expenses during 1Q20 relative to FY19. This can mean a sharp rise during 2Q20. We have already seen this with some LatAm peers.

We have seen with many European and US banks, a sharp reduction of credit costs during 2Q20 compared with 1Q20.  Even in Japan some banks have taken exceptionally high credit costs during the March quarter, suggesting there can be a major reduction during 1Q21 ending in June. There is an altogether different concern from some of Latin America’s largest banks. Itau Unibanco Holding Sa (ITUB4 BZ) and Banco Santander Mexico-B (BSMXB MM) are two that stand out, with incredibly low provision expenses during 1Q20 relative to FY19. This can mean a sharp rise during 2Q20. We have already seen this with some LatAm peers. 

Grupo Financiero Banorte SAB d (GFNORTEO MF)

LatAm Banks – Late Bloomers On Credit Costs?