InvestIdeas

Banks

A likely further qoq decline in 2Q23 LLP

We reiterate our Overweight rating due to compelling valuations, robust domestic growth and potential write-back of management overlay.

Loan growth eased from 4.8% yoy at end-May 23 to 4.4% yoy at end-Jun 23, mainly due to weakening business loan momentum.

LLP could decline further qoq in 2Q23, deduced from the massive RM1bn drop in the banking industry’s total provision in 2Q23.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 5F9AF1E467

Usage Of Fed's Emergency Bailout Facility Hits New High; Money-Market Inflows Continue
https://www.zerohedge.com/markets/usage ... s-continue

Moody’s cuts ratings of 10 U.S. banks and puts some big names on downgrade watch
https://www.cnbc.com/2023/08/08/moodys- ... watch.html


Italy shocks banks with 40% windfall tax for 2023
https://www.reuters.com/world/europe/it ... 023-08-07/

Corporate demand for bank loans across both the U.S. and Europe has fallen to levels not seen since 2008-2009
https://twitter.com/Barchart/status/1688383816929263617


Italian bank stocks rebound as government waters down windfall tax
https://www.cnbc.com/2023/08/09/italian ... l-tax.html

Fitch Warns Big Banks Face Downgrades
https://www.zerohedge.com/markets/fitch ... downgrades

Banks' Usage Of Emergency Fed Funds Hits New Record High
https://www.zerohedge.com/markets/banks ... ecord-high

S&P Joins Downgrade Party Of US Banks Due To "Tough" Climate
https://www.zerohedge.com/markets/sp-jo ... gh-cliamte

Bank of East Asia, China Construction Bank earnings marred by rise in bad loans to mainland’s distressed property sector

Bank of East Asia’s non-performing loans in China rose by 0.4 percentage points to 3.15 per cent of its total lending in the first half

China Construction Bank’s bad loans to China’s real estate sector climbed 18 per cent at the end of June compared with December

by Enoch YiuYuke Xie and Yuke Xie

Source: SCMP

https://www.scmp.com/business/banking-f ... 0be9826bf3

US Bank Deposits Plunged Last Week As Fed Rescue Funding Usage Hits New Record High
https://www.zerohedge.com/markets/us-ba ... ecord-high

Banks' Usage Of The Fed's Emergency Facility Hits New Record High As Money-Market Fund Inflows Resume
https://www.zerohedge.com/markets/banks ... ows-resume