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

Equity Bottom-Up

*Stress Continues: A competitor hosted a conference call with the management of Kasikornbank PCL (KBANK-R.TB) [KBANK] which suggests nothing positive is occurring. Credit risk remains elevated, yet half of current and projected loan growth will be used for current customer relief measures; and
*Weak Guidance: KBANK also reiterated guidance, although we weren’t left with a high degree of confidence that KBANK wouldn’t fall short in 2021.Coupled with the aforementioned credit challenges, we anticipate the roll forward of lower lending rates to continue to impact NIMs, as will the rising loan default rates.

*Stress Continues: A competitor hosted a conference call with the management of Kasikornbank PCL (KBANK-R.TB) [KBANK] which suggests nothing positive is occurring. Credit risk remains elevated, yet half of current and projected loan growth will be used for current customer relief measures; and
*Weak Guidance: KBANK also reiterated guidance, although we weren’t left with a high degree of confidence that KBANK wouldn’t fall short in 2021.Coupled with the aforementioned credit challenges, we anticipate the roll forward of lower lending rates to continue to impact NIMs, as will the rising loan default rates. 

Mitsubishi UFJ Financial (MUFG) (8306 JP)

Kasikornbank PCL

Kasikornan – Unconvincing Call