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

Japanese Banks:  Beyond the Ides of March

TSE's Market Structure Review: Public Comments As Expected, But Miss The Mark

Big Trouble in Little Stocks? Maybe TSE Mulls Changing TOPIX

Windamee Research

Japanese Banks

Equity Bottom-Up

We highlighted the financial predicament of <a href="https://www.smartkarma.com/entities/fukushima-bank-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:7474:1">Fukushima Bank (8562 JP)</a>, an obscure secondary regional bank from Fukushima Prefecture in the Tohoku Region of northern Japan, in our Insight <a href="https://www.smartkarma.com/insights/fukushima-bank-8562-jp-years-of-living-dangerously" target="_blank" rel="noopener" data-smartkarma-citation="insights:22816">Fukushima Bank (8562 JP): Years of Living Dangerously</a> .  At that time, the bank’s share price was just short of the ¥700 level.  Since then, the share price has fallen to around the ¥250 level, a 64% decline.  To put this in perspective, in percentage terms Fukushima Bank’s stock price has now fallen even further than the thoroughly-disgraced <a href="https://www.smartkarma.com/entities/suruga-bank-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:6267:1">Suruga Bank Ltd (8358 JP)</a>  over the same period: a remarkably ignominious achievement.  Fukushima Bank’s market capitalisation has shrunk to the point where the bank is now the 3rd-smallest of the 76 stock exchange-listed regional banks.As an independent entity, Fukushima Bank’s position looks untenable.  Its current size is insufficient to ensure its survival.  It can barely generate sufficient net interest and fee income to cover its overheads, let alone rebuild capital.  Yet foreign investors in aggregate own over 22% of the bank’s total shares in issue.  Why?  Caveat emptor!  (May the buyer beware)!

We highlighted the financial predicament of Fukushima Bank (8562 JP), an obscure secondary regional bank from Fukushima Prefecture in the Tohoku Region of northern Japan, in our Insight Fukushima Bank (8562 JP): Years of Living Dangerously .  At that time, the bank’s share price was just short of the ¥700 level.  Since then, the share price has fallen to around the ¥250 level, a 64% decline.  To put this in perspective, in percentage terms Fukushima Bank’s stock price has now fallen even further than the thoroughly-disgraced Suruga Bank Ltd (8358 JP)  over the same period: a remarkably ignominious achievement.  Fukushima Bank’s market capitalisation has shrunk to the point where the bank is now the 3rd-smallest of the 76 stock exchange-listed regional banks.As an independent entity, Fukushima Bank’s position looks untenable.  Its current size is insufficient to ensure its survival.  It can barely generate sufficient net interest and fee income to cover its overheads, let alone rebuild capital.  Yet foreign investors in aggregate own over 22% of the bank’s total shares in issue.  Why?  Caveat emptor!  (May the buyer beware)!

Fukushima Bank (8562 JP) - Living on the Edge