In today’s briefing:
- KakaoBank – Term Deposits +47% | Net Int Inc/Assets -80bps | Provisions: 10% to 23% of Net Int Inc
- Seoul Guarantee Insurance Pre-IPO – The Negatives – The Tide Could Be Turning. Overhang Looms
- Arthur J Gallagher & Co.: Strategic Acquisitions Pave the Way for Global Expansion! – Initiation of Coverage – Financial Forecasts
- SBI Sumishin Net Bank IPO Lock-Up – A US$1bn Lockup Release, Will Sell a Little at Some Point
- The Allstate Corporation: Discover The Major Drivers Behind Their Recent Performance! – Initiation of Coverage – Financial Forecasts
- EQD | NIFTY Index New WEEKLY Supports Analysis for LONG Trades
KakaoBank – Term Deposits +47% | Net Int Inc/Assets -80bps | Provisions: 10% to 23% of Net Int Inc
- Major pressure on net interest income where deposits are growing much faster than loans in the past six months, especially with term deposits, is creating major NIM contraction
- Earnings may disappoint based on weakening net interest income, weakening margins, and where the overlay is far higher credit costs; from KRW17bn to KRW59bn in 2 yrs to 2Q23
- Operating costs are not helping to support ROA and with a new virtual bank investment in Thailand, costs can remain high; fixing operational risks can also keep costs high.
Seoul Guarantee Insurance Pre-IPO – The Negatives – The Tide Could Be Turning. Overhang Looms
- Seoul Guarantee Insurance (031210 KS) is looking to raise around US$270m in its Korean IPO.
- Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
- In this note, we will talk about the not so positive aspects of the deal.
Arthur J Gallagher & Co.: Strategic Acquisitions Pave the Way for Global Expansion! – Initiation of Coverage – Financial Forecasts
- This is our first report on insurance and reinsurance brokerage player, Arthur J Gallagher & Co.
- The company surpassed Wall Street’s revenue and earnings expectations in its latest quarterly result.
- The company posted revenue and organic growth for its risk management and combined brokerage segments.
SBI Sumishin Net Bank IPO Lock-Up – A US$1bn Lockup Release, Will Sell a Little at Some Point
- SBI Sumishin Net Bank (7163 JP) raised around US$370m in its Japan IPO in Mar 2023. Its IPO linked lockup is set to expire on 24th Sep 2023.
- SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
The Allstate Corporation: Discover The Major Drivers Behind Their Recent Performance! – Initiation of Coverage – Financial Forecasts
- The Allstate Corporation delivered a mixed result in the recent quarter, with revenues above market expectations but failed to surpass the analyst consensus regarding earnings.
- Property-Liability earned premium surged by 9.6% compared to the prior year quarter due to increased average premiums in auto and homeowners insurance, offset slightly by a reduction in policies in force.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
EQD | NIFTY Index New WEEKLY Supports Analysis for LONG Trades
- The NIFTY Index closed up 3 weeks in a row, then fell on Monday, but current pattern looks bullish according to MRM models, we expect a modest correction (if any).
- Usually (69% of the times) this pattern brings a pullback that does not last for more than 1 week, then the following week the index closes up.
- Broadly speaking buy-the-dips support for this week is found between 20050 and 19900. If the correction becomes multi-week, it can go much lower, we will re-assess in that case.
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