Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Thematic (Sector/Industry)

* Regulator spread letter and LDR changes could prompt aggressive NIM/spread compression at the Bangladeshi banks.  * Higher capital requirements and USD 7.7 bn of NPLs could prompt further EPS reductions and capital raises. <h2>Summary </h2>Bangladesh Bank (the central bank) chronically tries to encourage its commercial banks to narrow their net lending spreads below 5.0%. 2018 is no different. Bangladesh Bank has instructed eight private banks to reduce their interest rate spread to less than 5.0%…

* Regulator spread letter and LDR changes could prompt aggressive NIM/spread compression at the Bangladeshi banks.  * Higher capital requirements and USD 7.7 bn of NPLs could prompt further EPS reductions and capital raises. Summary Bangladesh Bank (the central bank) chronically tries to encourage its commercial banks to narrow their net lending spreads below 5.0%. 2018 is no different. Bangladesh Bank has instructed eight private banks to reduce their interest rate spread to less than 5.0%…

Bangladesh Banks – Harder Line Being Taken

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.

The key for US banks in upcoming results will be the effect of lower corporate taxes on the carrying value of deferred tax assets (DTA). While not a major issue for most banks and especially money center banks, impairments will be meaningful for some. HSBC Finance also stands out here – although technically not a bank - where its DTA are exceptionally high compared with its stated net worth and more so than most all banks in the US.Operationally, what most will be looking for are improvements in…

The key for US banks in upcoming results will be the effect of lower corporate taxes on the carrying value of deferred tax assets (DTA). While not a major issue for most banks and especially money center banks, impairments will be meaningful for some. HSBC Finance also stands out here – although technically not a bank - where its DTA are exceptionally high compared with its stated net worth and more so than most all banks in the US.Operationally, what most will be looking for are improvements in…

US Banks – What to Look for in 4Q17 Results

* Despite bottom-line improvement on a go-forward basis, deferred tax asset (DTA) write-downs are likely at major global financial companies  - beckoning for major 2018 EPS revisions.* Domestic institutions such as, Bank of America (BAC.US), Goldman Sachs (GS.US), and Morgan Stanley (MS.US) stand out with large DTAs in the US.  * Of the international companies with US subsidiaries, the Swiss financials would post shocking results, while HSBC Holdings could have a 25% EPS adjustment, by our…

* Despite bottom-line improvement on a go-forward basis, deferred tax asset (DTA) write-downs are likely at major global financial companies  - beckoning for major 2018 EPS revisions.* Domestic institutions such as, Bank of America (BAC.US), Goldman Sachs (GS.US), and Morgan Stanley (MS.US) stand out with large DTAs in the US.  * Of the international companies with US subsidiaries, the Swiss financials would post shocking results, while HSBC Holdings could have a 25% EPS adjustment, by our…

HSBC Holdings Plc – Likely Getting a Big Hickey From President Trump

* Rajoy’s Terrible Gamble: Spain’s Prime Minister (PM) Rajoy’s gamble for a unified vote when he called for new elections and seized control of Catalonia in October 2017 has failed, as Catalonians have voted for independence.* Economic Impact: The Catalonian separatist movement undermines much of Spain’s GFC recovery. Catalonia has amongst the largest public debts of Spain's regions, and could witness a 25%-30% economic contraction and a doubling of unemployment with secession. Spain accounts…

* Rajoy’s Terrible Gamble: Spain’s Prime Minister (PM) Rajoy’s gamble for a unified vote when he called for new elections and seized control of Catalonia in October 2017 has failed, as Catalonians have voted for independence.* Economic Impact: The Catalonian separatist movement undermines much of Spain’s GFC recovery. Catalonia has amongst the largest public debts of Spain's regions, and could witness a 25%-30% economic contraction and a doubling of unemployment with secession. Spain accounts…

Catalonia Crisis – Heightened Post-Election Risks

Banks in Hong Kong have some of the lowest levels of loan loss reserves (LLR) compared with loans and also their loan loss provision (LLP) expenses are paltry. The sharp rise of interest rates during late this year will see a marked increase in interest payments. This is due to the magnitude of the rate change, which is over 60% higher. It is fairly simple to service loans at near zero interest rates, but the propensity for defaults is suddenly much higher as rates climb to 1.25%.  Hong Kong – 3…

Banks in Hong Kong have some of the lowest levels of loan loss reserves (LLR) compared with loans and also their loan loss provision (LLP) expenses are paltry. The sharp rise of interest rates during late this year will see a marked increase in interest payments. This is due to the magnitude of the rate change, which is over 60% higher. It is fairly simple to service loans at near zero interest rates, but the propensity for defaults is suddenly much higher as rates climb to 1.25%.  Hong Kong – 3…

United Kingdom

HSBC Holdings plc is the holding company for the HSBC Group. The Company provides a variety of international banking and financial services, including retail and corporate banking, trade, trusteeship, securities, custody, capital markets, treasury, private and investment banking, and insurance.  The Group operates worldwide.

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

HSBC Holdings (5 HK)

Bangladesh Banks – Harder Line Being Taken

* Regulator spread letter and LDR changes could prompt aggressive NIM/spread compression at the Bangladeshi banks. * Higher capital requirements...

Thomas J. Monaco

US Banks – What to Look for in 4Q17 Results

The key for US banks in upcoming results will be the effect of lower corporate taxes on the carrying value of deferred tax assets (DTA). While not...

Daniel Tabbush

HSBC Holdings Plc – Likely Getting a Big Hickey From President Trump

* Despite bottom-line improvement on a go-forward basis, deferred tax asset (DTA) write-downs are likely at major global financial companies -...

Thomas J. Monaco

Catalonia Crisis – Heightened Post-Election Risks

* Rajoy’s Terrible Gamble: Spain’s Prime Minister (PM) Rajoy’s gamble for a unified vote when he called for new elections and seized control of...

Thomas J. Monaco

Hong Kong Banks – Interest Rate Shock

Banks in Hong Kong have some of the lowest levels of loan loss reserves (LLR) compared with loans and also their loan loss provision (LLP) expenses...

Daniel Tabbush

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)