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>Philippine banks are now taking over others in SE Asia in terms of credit growth&nbsp;as they become more comfortable with their own financials and the overall economy.</li><li>Indonesian Bank loan growth has stepped down dramatically over the past few years. This reflects cyclically less corporate demand combined with increased caution from the banks</li><li>Thai Banks now report the lowest growth. With GDP growing at 0.5% this is reflective of demand.</li></ul>

Philippine banks are now taking over others in SE Asia in terms of credit growth&nbsp;as they become more comfortable with their own financials and the overall economy.Indonesian Bank loan growth has stepped down dramatically over the past few years. This reflects cyclically less corporate demand combined with increased caution from the banksThai Banks now report the lowest growth. With GDP growing at 0.5% this is reflective of demand.

South East Asian Loan Growth  - Phillippine, Thai and Indonesian Banks Compared.

<ul><li>There is a boom in Bangkok, yet again.</li><li>This tends to be positive for banks.</li><li>It creates loan demand, both by developers and also companies making and selling products for construction.It also supports mortgage lending and collateral values behind loans.</li><li>A benign credit cycle, high provisions and reasonable margins is reason enough to be positive on Thai banks. Additionally is the current construction boom.</li><li>But the warning and focus of this note is that not all banks are created equal. And it may be surprising, that some of Thailand&rsquo;s newest banks are showing trends completely at odds with mainstream banks. </li><li>It pays to differentiate, even in a boom</li></ul>

There is a boom in Bangkok, yet again.This tends to be positive for banks.It creates loan demand, both by developers and also companies making and selling products for construction.It also supports mortgage lending and collateral values behind loans.A benign credit cycle, high provisions and reasonable margins is reason enough to be positive on Thai banks. Additionally is the current construction boom.But the warning and focus of this note is that not all banks are created equal. And it may be surprising, that some of Thailand&rsquo;s newest banks are showing trends completely at odds with mainstream banks. It pays to differentiate, even in a boom

Thailand: Despite Boom, Small Banks are Dull. Big Banks are Irresistible.

<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; 

Thailand

Eastern Commercial Leasing Public Company Limited provides hire-purchase and lease financing services for used automobiles.

MIDA Leasing Public Company Limited provides hire-purchase and leasing services for both personal vehicles and pick up trucks, working capital loan for second-hand car dealer.  The company also provides refinancing services for car loan and additional services such as renewal of annual vehicle duty, car insurance policy and third-party car insurance.

Phatra Leasing Public Company Limited provides leasing services to corporate entities. The Company primarily focuses on operating leases by providing assets to lessees who have the right to utilize them, while the Company still retains ownership of the assets.

Mida Assets Public Company Limited sells electrical home appliances, home furniture, and motorcycles through its retail stores throughout Thailand. The Company also provides hire purchase financing to its customers.

Amanah Leasing PCL provides financing services for the purchase of new and used automobiles.

Thitikorn Public Company Limited provides hire purchase financing services for motorcycles and automobiles.

Asia Sermkij Leasing Public Company Limited provides financing services for purchasing of new and used automobiles.  The Company also provides personal loans, and financial services to automobile dealers.

Ratchthani Leasing Public Company Limited provides hire-purchase and leasing services for used automobiles to businesses and retail consumers in Thailand.

Srisawad Finance Public Company Limited offers financial services. The Company engages in various kinds of investments for public such as deposit receipts and bills of exchange, provides commercial loan facilities, and invests in securities. Srisawad Finance serves individuals, corporate entities, financial institutes, and associations in Thailand.

Srisawad Finance Public Company Limited (BFIT TB)

AEON Thana Sinsap (Thailand) Public Company Limited provides consumer financial services.  The Company offers hire purchase loans for household products such as appliances, electronic equipment, and furniture, as well as other unsecured personal loans for general purposes.  It also issues locally accepted AEON credit cards, and internationally accepted Mastercards and JCB credit cards.

PT Trust Finance Indonesia Tbk provides consumer financing, leasing and factoring services.

Capital Trust Ltd. is a finance company. The Company's lines of business include leasing, hire-purchase, corporate and auto finance.

Flying Financial Service Holdings Limited provides integrated short-term services, including pawn loan services and entrusted loan services. The Company also offers financial consultation services to its customers.

Flying Financial Service Holdings (8030 HK)

Wedge Holdings CO., LTD. is a holding company which was established through reorganization.  The subsidiaries produce audio & visual contents as well as DVD and related character products.  The group companies also provide integrated publishing services including planning, editing, and designing layout to publishers.

PT Radana Bhaskara Finance Tbk provides financing for motorcycles and cars. The Company has been operating since 2005 and is based in Java and Sumatra, Indonesia.

Weizmann Forex Ltd. offers money changing services.  The Company operates a chain of shops that offer foreign exchange services; demand drafts; telegraphic transfers; prepaid travel cards; traveller's checks; travel, life and general insurance; mutual funds; branded gold coins; and inbound money transfers.

PT Verena Multi Finance Tbk is a financial services company.  The Company provides consumer financing.

China Art Financial Holdings Limited is an art finance provider. The Company offers art assets pawn and auction services. China Art Financial serves customers throughout China.

Pintec Technology Holdings Limited operates as an online lending platform. The Company offers personal and SME loans as well as wealth management and insurance brokerage services. Pintec Technology Holdings serves customers in China.

ORIX Leasing Pakistan Limited is an leasing and diversified financial services company. The Company offers full pay out finance leases for machinery, office automation, computers, vessels, aircraft and automobiles. Orix financial service products include loans, rentals, security brokerage, options trading and life insurance products.

Group Lease Public Company Limited provides motorcycle hire purchase in Bangkok, asset financing and personal loan.  The company also provides related services such as registration and insurance services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Group Lease Public (GL TB)

South East Asian Loan Growth - Phillippine, Thai and Indonesian Banks Compared.

Philippine banks are now taking over others in SE Asia in terms of credit growth as they become more comfortable with their own financials and the...

Daniel Tabbush

Thailand: Despite Boom, Small Banks are Dull. Big Banks are Irresistible.

There is a boom in Bangkok, yet again. This tends to be positive for banks. It creates loan demand, both by developers and also companies making...

Daniel Tabbush

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)