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

Concordia Financial Group (7186 JP):  Blame It on the Junior

Concordia Financial Group (7186 JP):  Unequal Partners

Concordia Financial Group (7186 JP): Asset Quality Issues

Concordia FG (7186.JP): An Embarrassment of Riches

Japanese Banks:  These Lifeless Things (The Ozymandias Syndrome)

Concordia FG (7186 JP): Oil on Troubled Waters

Japan: 2018 Market Review - Bear Market Rally Ahead

Windamee Research

Japanese Banks

Equity Bottom-Up

Concordia Financial Group, Ltd / Equity Bottom-Up

<p>CY2018 was not a good year for <a href="https://www.smartkarma.com/entities/22704" target="_blank" data-smartkarma-citation="entities:22704:1">Concordia Financial Group, Ltd (7186 JP)</a>  (CFG), the holding company for one of Japan’s largest regional banks, the Bank of Yokohama (BoY), and a small secondary regional bank, Higashi-Nippon Bank (HNPB).  Beset by a lending scandal at HNPB, which forced the bank's president to step down, CFG’s share price remains some 30% below February 2018 levels, and has essentially traded sideways so far this year. </p>
<p>CFG management's attempts to placate disgruntled shareholders with stock buybacks and dividend payout increases have largely failed to impress.  3Q FY3/2019 profits declined by 8% year-on-year but relied heavily on non-core profit items: true core earnings collapsed 35.9%.  The Japanese banking sector remains unloved at present.  That said, currently trading on similar valuations to our much-preferred <a href="https://www.smartkarma.com/entities/1048" target="_blank" data-smartkarma-citation="entities:1048:1">Chiba Bank (8331 JP)</a> , CFG remains a liquid alternative to the ‘crowded trade’ of simply buying megabanks for exposure to the Japanese financial sector.  Patience, however, is the key word for investors here.  No harm in waiting to buy at a better entry price.</p>

CY2018 was not a good year for Concordia Financial Group, Ltd (7186 JP)  (CFG), the holding company for one of Japan’s largest regional banks, the Bank of Yokohama (BoY), and a small secondary regional bank, Higashi-Nippon Bank (HNPB).  Beset by a lending scandal at HNPB, which forced the bank's president to step down, CFG’s share price remains some 30% below February 2018 levels, and has essentially traded sideways so far this year. 
CFG management's attempts to placate disgruntled shareholders with stock buybacks and dividend payout increases have largely failed to impress.  3Q FY3/2019 profits declined by 8% year-on-year but relied heavily on non-core profit items: true core earnings collapsed 35.9%.  The Japanese banking sector remains unloved at present.  That said, currently trading on similar valuations to our much-preferred Chiba Bank (8331 JP) , CFG remains a liquid alternative to the ‘crowded trade’ of simply buying megabanks for exposure to the Japanese financial sector.  Patience, however, is the key word for investors here.  No harm in waiting to buy at a better entry price.

コンコルディア・ファイナンシャル・グループ（7186 JP）：注目度外視