Research and consultancy, Tabbush Report

Daniel Tabbush

The Tabbush Report: Asian bank research and consultancy, without the noise.

Daniel Tabbush has ~30 years experience analyzing Asia-Pacific banks, including HSBC, Standard Chartered, Japanese and Australian banks. His research and consulting focuses on global banking issues, including with banks in the US. He was the Head of Asian Bank research at the number one Asian brokerage CLSA for most of his career, overseeing coverage of 80 banks and 10 analysts in Asia-Pacific.

He has been highly ranked by Asiamoney, The Asset and Bloomberg, as well as by institutional investors focused on Asia. He continues to appear in press interviews with TVB in Hong Kong, and has appeared on CNBC in the past. He maintains an information-sharing agreement with Dr. Jim Walker of Asianomics, the foremost economist in Asia-Pacific, and Tabbush was an invited speaker on Asian banks at the Independent Research Summit in Hong Kong, during years 2013 and 2014.

Daniel started his own independent bank research and consultancy in 2012, under the banner name Tabbush Report. Since 2014, he has been a member of University of California San Diego Economics Leadership Council (ELC), supporting Economic students at the University through this alumni association, and providing guidance on Economics program develoment. Daniel grew up in Los Angeles, graduated from UCSD in Economics, cum laude and with Phi Beta Kappa honors. He lives with his family in Bangkok, and enjoys cooking, running and chess.

He is known for extolling the unusual positives of Japan’s mega banks in 2005, and the risks likely to hit HSBC from its U.S. subprime loan operations, in 2006.  More recently, when most were concerned with nearly all Western banks in late 2008, Tabbush highlighted the positive outlook for Standard Chartered Bank at that time. 

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, S&P Global Market Intelligence. S&P Capital IQ augments our database, with corporate data and CEIC, with economics.

Research and consultancy

Bank of China - Second Derivative Impact Will Be Huge

Chailease Holding – Return to Growth In 1Q20

Chailease Holding – Delayed Reaction By ASEAN Should Weigh Heavily On Results Too

China – Soaring Real Estate Loans Makes One Wonder

China Banks – Missing Financials, Negative Growth, High Special Mention Loans

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.

Equity Bottom-Up

<p>Rural banks come to mind. Medium-sized banks as well. But it is not one of the large four SOE banks that we to feel will have some of the highest impairment cost growth. Yet, <a href="https://www.smartkarma.com/entities/bank-of-china-ltd" target="_blank" data-smartkarma-citation="entities:24574:1">Bank Of China (601988 CH)</a> ranks second of the largest 10 listed China banks for impairment cost growth in 1Q19 YoY at a staggering 76%. And this can continue through 2Q19 and through 2019. The reason is simple: BOC’s impairment costs remain far lower than large peer banks. With the profit warning from <a href="https://www.smartkarma.com/entities/bank-of-east-asia" target="_blank" data-smartkarma-citation="entities:341:1">Bank Of East Asia (23 HK; BEA)</a> due to worsening China credit metrics, worsening industrial output data (just out) and the full effects of US-China trade war yet to hit, BOC may have to play catch-up with peers. This is also apparent with its HK subsidiary, where credit costs are lower than most all peer banks at just 10bps of loans in 2018; BEA was 2.4x higher. See valuation, fundamental and momentum (VFM) research done by our Smartkarma colleague <a href="https://www.smartkarma.com/profiles/paul-hollingworth" target="_blank" data-smartkarma-citation="accounts:2554">Paul Hollingworth</a> on BOC and BEA in the past.</p>

Rural banks come to mind. Medium-sized banks as well. But it is not one of the large four SOE banks that we to feel will have some of the highest impairment cost growth. Yet, Bank Of China (601988 CH) ranks second of the largest 10 listed China banks for impairment cost growth in 1Q19 YoY at a staggering 76%. And this can continue through 2Q19 and through 2019. The reason is simple: BOC’s impairment costs remain far lower than large peer banks. With the profit warning from Bank Of East Asia (23 HK; BEA) due to worsening China credit metrics, worsening industrial output data (just out) and the full effects of US-China trade war yet to hit, BOC may have to play catch-up with peers. This is also apparent with its HK subsidiary, where credit costs are lower than most all peer banks at just 10bps of loans in 2018; BEA was 2.4x higher. See valuation, fundamental and momentum (VFM) research done by our Smartkarma colleague Paul Hollingworth on BOC and BEA in the past.

Bank of China – An SOE Bank that Is Not Immune

Bank Of China Ltd (H)

Bank of China – An SOE Bank that Is Not Immune