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Archives: CreditSights Issuer List
Commonwealth Bank of Australia
- Sector: Financial Services
- Sub Sector: Banks
- Region: Australia
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Fundamental View
AS OF 05 Mar 2026CBA has a very strong franchise in Australia; it is the leader in the retail market and is making good progress in challenging NAB in business banking.
It has been the best managed of the Australian banks for many years, outperforming peers. It lost some of its luster in the latter part of the 2010s due to regulatory and compliance lapses amid charges of complacency, but has since improved into a better institution.
Its capital and liquidity position is robust, and asset quality is strong.
Business Description
AS OF 05 Mar 2026- Originally established by the Australian government in 1911, CBA functioned for some time as Australia's central bank until the establishment in 1959 of the Reserve Bank of Australia. It remained under government ownership until the early 1990s, after which it underwent a transformation from a bureaucratic public sector bank into a widely respected commercial organisation.
- Over the past couple of decades, CBA consolidated its position as the leading bank in Australia with a 24-28% share in household deposits and lending, helped by its acquisition of Bank of Western Australia during the 2008 crisis.
- In New Zealand it owns ASB Bank, but otherwise has been selling non-core assets, including its life insurance business.
Risk & Catalysts
AS OF 05 Mar 2026CBA’s financial health is closely linked to the Australian economy, in particular retail credit quality, mainly housing loans. Rate hikes, to reduce inflation resulting from growth and a tight labour market, will temper growth, but it is still expected to be higher by recent Australian standards, at 2.3% in 2026 and 2.1% in 2027; unemployment is expected to be flat at 4.4%. The bank expects one more rate hike to 4.10%, and for RBA to hold steady at that rate to end-2027.
Earnings/NIMs are under pressure from strong mortgage market and deposit competition, but the bank anticipates continued tailwinds from a higher replicating rate which would hopefully provide sufficient offset.
Business banking growth continues to be stellar and highly profitable. Overall credit growth is expected to continue at 6-8% p.a. over this and next calendar years.
Key Metric
AS OF 05 Mar 2026| AUD mn | Y23 | Y24 | Y25 | 1H26 |
|---|---|---|---|---|
| Return on Equity | 14.0% | 13.6% | 13.5% | 14.0% |
| Total Revenues Margin | 2.2% | 2.2% | 2.2% | 1.1% |
| Cost/Income | 43.7% | 45.0% | 45.7% | 45.9% |
| APRA CET1 Ratio | 12.2% | 12.3% | 12.3% | 12.3% |
| International CET1 Ratio | 19.1% | 19.1% | 20.9% | 18.3% |
| APRA Leverage Ratio | 5.1% | 5.0% | 4.7% | 4.7% |
| Impairment Charge/Avg Loans | 0.1% | 0.1% | 0.1% | 0.0% |
| Gross Impaired Loans/Total Loans | 0.8% | 1.0% | 1.1% | 1.0% |
| Liquidity Coverage Ratio | 131% | 136% | 130% | 132% |
| Net Stable Funding Ratio | 124% | 116% | 115% | 117% |
CreditSight View Comment
AS OF 11 Feb 2026CBA operates as a well-oiled machine in the Australian banking market and is our preferred name in the space. It has the leading position in mortgages and deposits, and is challenging NAB in business banking. An AUSTRAC penalty in 2018 damaged its reputation and remediation costs impacted earnings for a couple of years. The bank sold a number of its non-bank business and equity investments to simplify and focus on its core domestic businesses. It has the highest NIM amongst the Aussie banks. Business banking growth has been stellar and highly profitable. Asset quality is comfortable. Its seniors trade tight but at an acceptable level, while its Tier 2s trade fair. It had a recent dip in performance in 1Q26 but 2Q26 was strong.
Recommendation Reviewed: February 11, 2026
Recommendation Changed: October 05, 2016
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Search topics about wealth insights and investments.Security Bank (PH)
- Sector: Financial Services
- Sub Sector: Banks
- Country: Philippines
- Bond: SECBPM 5.5 29
- Indicative Yield-to-Maturity (YTM): 4.694%
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Fundamental View
AS OF 04 Mar 2026Security Bank has historically been a wholesale focused bank. Rapid retail expansion pre-pandemic led to a large asset quality hit when COVID-19 struck. The bank completed revamping its underwriting processes at end-2021 and has resumed brisk growth in the retail book since.
The bank had a less well-established deposit franchise than most peers, resulting in a heavy hit to NIMs when rates rose this cycle. This has led it to focus aggressively on growing the higher yielding retail and MSME segments, the latter via forming a new business banking segment in 2022.
Previously high capital ratios have hence fallen; the CET1 ratio is a low 12-13%.
MUFG is a 20% shareholder of Security Bank.
Business Description
AS OF 04 Mar 2026- Security Bank was established in 1951 and obtained its universal banking license from the BSP in 1994. It is today the 9th largest bank in the Philippines.
- The bank is majority-owned by longtime owner Frederick Y. Dy (23.7%) and MUFG Bank (20%), which acquired its stake in April 2016.
- SB Finance, a joint venture between Security Bank and Thailand's Bank of Ayudhya (Krungsri), a consolidated subsidiary of MUFG, was launched in 2019. The unit is a consumer finance company formed to engage in the unsecured loans business in the Philippines, focusing on the lower mass retail segment.
- Security Bank's loan portfolio is 32% consumer, 4% MSME and 64% wholesale at 4Q25. The consumer and MSME book is roughly split mortgages (44%), auto loans (23%), credit card (23%) and small business loans (10%).
Risk & Catalysts
AS OF 04 Mar 2026Any rating downgrade of the Philippine sovereign would have a negative impact on Security Bank.
RRR cuts and rates coming down, along with brisk growth in higher yielding but riskier retail and MSME (business banking), are supporting the NIM well. Asset quality indicators however have unsurprisingly started to weaken with a jump in credit costs. We remain cautious given the relatively thin reserve cover and capital buffer. Management is now exercising some prudence in retail loan growth after the emergence of stress in credit cards.
Capital ratios have fallen due to brisk RWA growth and now trail peers. We view current levels as low, but do not rule out capital support from MUFG if needed.
A prolonged hit to sentiment from the flood controls scandal would exacerbate the slowdown in GDP and credit growth, and pressure asset quality.
Key Metric
AS OF 04 Mar 2026| PHP mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Net Interest Margin | 4.43% | 4.23% | 4.49% | 4.73% | 4.66% |
| ROA | 1.0% | 1.4% | 1.1% | 1.1% | 1.0% |
| ROE | 5.6% | 8.4% | 7.0% | 8.1% | 7.9% |
| PPP ROA | 2.30% | 2.17% | 1.97% | 2.18% | 2.38% |
| CET1 Ratio | 19.1% | 16.1% | 15.3% | 12.9% | 12.3% |
| Total Equity/Total Assets | 17.88% | 14.94% | 15.62% | 12.50% | 12.91% |
| Gross NPL Ratio | 3.94% | 2.95% | 3.36% | 2.85% | 2.89% |
| Net LDR | 85.7% | 83.0% | 88.8% | 84.6% | 74.9% |
| Liquidity Coverage Ratio | 150% | 144% | 158% | 178% | 200% |
| Net Stable Funding Ratio | 138% | 122% | 131% | 130% | 146% |
CreditSight View Comment
AS OF 06 Mar 2026Security Bank has historically been a wholesale focused bank. Rapid retail expansion leading up to the pandemic led to a large asset quality fallout. It was conservative for a few years, but resumed aggressive growth in higher yielding but riskier retail and MSME segments to counter NIM pressure. This along with improving funding costs from a declining rate environment has supported margins. Asset quality however is showing stress from the brisk growth in riskier segments as we had anticipated, leading it to start exercising prudence in retail loan growth starting 2H25. We remain cautious about asset quality strains given the relatively thin capital buffer (12.3% CET1 ratio).
Recommendation Reviewed: March 06, 2026
Recommendation Changed: May 21, 2024
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Search topics about wealth insights and investments.Baidu
- Sector: Media and TelecommunicationsTechnology
- Sub Sector: Technology
- Country: China
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Fundamental View
AS OF 04 Mar 2026We maintain our Underperform recommendation on Baidu following its weak 4Q25 results. Revenues fell amid the continued contraction in online ads, while EBITDA margin fell YoY due to an increased revenue mix of the lower-margin AI cloud segment and weak monetization of its search engine; gross leverage further weakened and net cash narrowed. Baidu trades in-line to Asia A corp and 9 bp tighter than Asia A- corp which we view as rich; this is because we expect its debt metrics to remain weak compared to its historical levels over the next 12-24 months given the challenging outlook of its advertising segment and weak margins of its AI cloud segment. In our view, Baidu should be trading closer to A- corps. We also think Baidu is expensive compared to BABA and TENCNT.
Business Description
AS OF 04 Mar 2026- Founded in 2000, Baidu started out as a search engine business and began its development into artificial intelligent (AI) since 2010.
- Baidu general business is the main revenue driver of the company (79% of 4Q25 revenues); this includes its AI-powered businesses (34% of 4Q25 revenues) through AI cloud infrastructure (ie. enterprise cloud), AI applications (Baidu Wenku, Baidu Drive, automonous ride-hailing via Apollo Go), and AI-native marketing services; the remaining core revenues (45% of total) are derived from its legacy business and others which includes traditional advertising services across Search, Feed and other properties.
- iQiyi accounts for the remaining revenues of Baidu; iQIYI is an online video platform with a content library that includes licensed movies, television series, cartoons, and other programs; it generate revenues through online ads and membership subscription fees.
- Baidu launched ERNIE bot in Mar-23, a generative AI chatbot powered by ERNIE, Baidu's in-house foundation model.
- Baidu has a market capitalization of RMB 284.9 bn as of 4 March 2026.
Risk & Catalysts
AS OF 04 Mar 2026Any regulatory clampdowns abroad and domestically (e.g. potential US investment ban, antitrust rules, data security and personal information protection laws) may adversely affect the business of Baidu. The interpretation of Chinese laws and regulations involves some degree of uncertainty.
There are regulatory risks given the corporate structure which uses variable interest entities (VIEs) to circumvent China’s restrictions on foreign ownership of Internet Content Providers (ICPs).
Baidu has made significant investments into long-term AI-related projects, which may take time to turn profitable. A potential escalation of the US chip restriction could have a material negative impact its AI related business (ie. cloud, ernie bot, autonomous driving).
Intense competition in online ads segment may pressure topline and EBITDA margin.
Key Metric
AS OF 04 Mar 2026| RMB bn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Debt to Book Cap | 29.7% | 28.5% | 25.0% | 22.5% | 26.0% |
| Debt/Total Equity | 42.2% | 39.8% | 33.4% | 29.0% | 35.1% |
| Debt/Total Assets | 24.1% | 23.4% | 20.8% | 18.5% | 21.6% |
| Gross Leverage | 3.3x | 2.8x | 2.2x | 2.0x | 3.2x |
| Interest Coverage | 8.2x | 11.4x | 12.1x | 13.8x | 10.9x |
| EBITDA Margin | 22.6% | 26.8% | 29.2% | 29.3% | 23.4% |
CreditSight View Comment
AS OF 27 Feb 2026We maintain our Underperform recommendation on Baidu following its weak 4Q25 results. Revenues fell amid the continued contraction in online ads, while EBITDA margin fell YoY due to an increased revenue mix of the lower-margin AI cloud segment and weak monetization of its search engine; gross leverage further weakened and net cash narrowed. Baidu trades in-line to Asia A corp and 9 bp tighter than Asia A- corp which we view as rich; this is because we expect its debt metrics to remain weak compared to its historical levels over the next 12-24 months given the challenging outlook of its advertising segment and weak margins of its AI cloud segment. In our view, Baidu should be trading closer to A- corps. We also think Baidu is expensive compared to BABA and TENCNT.
Recommendation Reviewed: February 27, 2026
Recommendation Changed: August 21, 2025
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Fundamental View
AS OF 04 Mar 2026Stryker benefits from a leading position in orthopedics as well as strong franchises in medical surgery and neurotechnology. The company’s sales and EBITDA growth trajectory bests most of its medical device peers.
Stryker has exhibited discipline with capital allocation. Following larger bolt-on deals in 2022 (Vocera, $3.1 bn) and 2020 (Wright Medical, $5.4 bn) management prioritized debt reduction.
We expect SYK to manage leverage in the low- to mid-2x range as it addresses its M&A needs/wants in the aftermath of the Inari purchase.
Business Description
AS OF 04 Mar 2026- Stryker (SYK) is a global manufacturer of implants used in joint replacement & trauma surgeries; surgical equipment & surgical navigation systems; endoscopic & communications systems; patient handling & emergency medical equipment; neurosurgical, neurovascular & spinal devices among other products. Stryker generated $25.1 bn of revenues in 2025 (versus $22.6 bn in 2024).
- SYK maintains two operating segments: MedSurg & Neurotechnology (62% of 2025 consolidated revenues) and Orthopaedics & Spine (38%).
- SYK's recent sizable acquisitions include: Inari Medical ($4.9 bn) in 2025, which increased its exposure to peripheral vascular diseases; Vocera ($3.1 bn enterprise value) in 2022, which increased its digital care coordination and communication categories; Wright Medical ($5.6 bn including debt) in 2020, which increased its exposure to the trauma & extremities end market; and K2M Group ($1.4 bn) in 2018, which boosted the spine portfolio.
Risk & Catalysts
AS OF 04 Mar 2026Stryker is exposed to medical procedure volumes. While volumes have been positive, owing in part to the resumption of procedures deferred during COVID, volatility could result from economic uncertainty in the year ahead.
Stryker’s M&A interest has leaned bolt-on in nature over the past several years, including the acquisitions of Inari in 2025 ($4.9 bn), Vocera in 2022 ($3.1 bn) and Wright Medical in late 2020 ($5.4 bn).
In April 2025, SYK sold its US Spinal Implants business to Viscogliosi Brothers to create a newly formed company (named VB Spine, LLC).
SYK recently held its investor day, which covered expectations for 2026-28. Management expects organic sales growth to be at the ‘high end’ of MedTech and guides to operating margin expansion of ~150 bp through 2028. M&A remains Stryker’s top capital allocation priority.
Key Metric
AS OF 04 Mar 2026| $ mn | Y21 | Y22 | Y23 | Y24 | LTM 4Q25 |
|---|---|---|---|---|---|
| Revenue | 17,108 | 18,449 | 20,498 | 22,595 | 25,116 |
| Gross Profit | 10,968 | 11,578 | 13,058 | 14,440 | 16,065 |
| R&D | (1,235) | (1,454) | (1,388) | (1,466) | (1,623) |
| SG&A | (6,427) | (6,455) | (7,121) | (7,685) | (8,651) |
| Adj. EBITDA | 4,753 | 4,755 | 5,356 | 6,142 | 7,064 |
| Total Debt | 12,479 | 13,048 | 12,995 | 13,597 | 15,859 |
| Gross Leverage | 2.6x | 2.7x | 2.4x | 2.2x | 2.2x |
| Interest Coverage | 14.1x | 14.1x | 15.0x | 15.5x | 12.1x |
CreditSight View Comment
AS OF 13 Mar 2026We maintain our Outperform recommendation on Stryker. SYK exhibits organic growth on strong procedural volumes and relatively healthy capital equipment spending. At current spreads, we like SYK versus more conservative peers, ABT and MDT, both of which carry higher leverage with less impressive organic growth. SYK offers attractive spread pickup versus both comps.
Recommendation Reviewed: March 13, 2026
Recommendation Changed: May 03, 2022
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Search topics about wealth insights and investments.BDO Unibank
- Sector: Financial Services
- Sub Sector: Banks
- Country: Philippines
- Bond: BDOPM 4.375 30
- Indicative Yield-to-Maturity (YTM): 4.26%
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Fundamental View
AS OF 03 Mar 2026BDO Unibank (BDO) is the largest bank in the Philippines in terms of assets & market share.
Given its size and systemic importance, BDO is considered too big to fail and is strongly likely to be supported by its controlling shareholder SM Investments, as well as the Philippine government in times of stress.
BDO is widely viewed as the soundest bank in the country given its strong fundamentals, well-diversified businesses, and good management.
Business Description
AS OF 03 Mar 2026- BDO Unibank was established as Acme Savings Bank in 1968, and was then acquired by SM Investments in 1976. It became a commercial bank in 1994 and a universal bank in 1996.
- BDO was listed in May 2002. SM Investments remains the bank's largest shareholder with a 41% stake.
- BDO has expanded through a series of M&As. Among its key transactions, it merged with Dao Heng Bank Philippines in 2001, Banco Santander Philippines in 2003, UOB Philippines in 2005, Equitable PCI Bank in 2007, GE Money Bank in 2009, Citibank Savings, DB Trust and Real Bank in 2014, One Network Bank in 2015 (the largest rural bank in the Philippines), and RB Pandi's banking business in 2019. It also acquired the insurance business of Generali in the Philippines in 2016.
- BDO has the largest distribution network in the country and is ranked the largest bank in terms of consolidated resources, total assets, loans, deposits and trust funds under management.
- Its loan book was split 49% large corporates, 26% middle market, and 25% consumer at 4Q25. 39% of the consumer book comprised mortgages, 31% credit cards, 13% auto loans and the remaining personal loans (13%) and others (5%).
Risk & Catalysts
AS OF 03 Mar 2026Direct impact from US tariffs is limited given that the Philippines is not a major goods exporter, but there is likely to be some second order effects from a slowdown in regional and global growth.
The recent public infrastructure graft scandal has dampened public infra spending, consumer and business sentiment, and private investment, which will weigh on GDP and corporate loan growth at least through 1H26. A prolonged hit to sentiment would exacerbate these effects and strain asset quality. BSP rate cuts to support growth will pressure the NIM, but this is being mitigated by a loan mix shift towards retail.
We see few asset quality risks for BDO given a comfortable NPL cover and an acceptable CET1 ratio, as well as BDO’s large corporates book (~50% of total loans) and good underwriting track record.
Any rating downgrade of the Philippine sovereign would negatively impact BDO.
Key Metric
AS OF 03 Mar 2026| PHP mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| NIM | 4.05% | 4.14% | 4.37% | 4.35% | 4.31% |
| Reported ROA (Cumulative) | 1.2% | 1.5% | 1.7% | 1.8% | 1.7% |
| Reported ROE (Cumulative) | 10.4% | 13.0% | 15.2% | 15.1% | 14.4% |
| Equity/Assets | 11.7% | 11.3% | 11.5% | 11.8% | 11.8% |
| CET1 Ratio | 13.6% | 13.4% | 13.8% | 14.1% | 13.8% |
| NPL ratio | 2.8% | 2.0% | 1.9% | 1.8% | 1.7% |
| Provisions/Loans | 0.72% | 0.64% | 0.59% | 0.46% | 0.43% |
| PPP ROA | 2.1% | 2.3% | 2.7% | 2.5% | 2.4% |
| Liquidity Coverage Ratio | 145% | 141% | 123% | 132% | 121% |
| Net Stable Funding Ratio | 124% | 124% | 124% | 122% | 118% |
CreditSights View
AS OF 06 Mar 2026BDO is the largest bank in the Philippines. Management is well-regarded, the business is well-diversified and it is the market leader in many business lines. The NIM has peaked with the turn in policy rates, but non-interest income is close to a third of operating income given good fee generation and overall core profitability is strong. We remain comfortable with BDO given the large corporate book and comfortable NPL cover, as well as underwriting track record, which provide comfort around the recently robust growth in retail loans. Capital is also acceptable with the CET1 ratio at 13.8%. However, we have BDO on Underperform from an RV standpoint.
Recommendation Reviewed: March 06, 2026
Recommendation Changed: January 07, 2026
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Fundamental View
AS OF 03 Mar 2026AZN enjoys one of the strongest growth profiles in our coverage, reflecting a portfolio of innovative medicines, particularly in Oncology. The addition of Alexion supports AZN’s growth prospects, bringing strong assets in immune-mediated rare diseases.
AZN also enjoys relatively strong diversification, with core sales coming from multiple therapeutic areas and with depth across its Oncology and Biopharma platforms.
AZN’s capital allocation priorities include investment in the business, the pursuit of value-enhancing bolt-on M&A, and support for the dividend.
Business Description
AS OF 03 Mar 2026- AstraZeneca is a UK-based pharmaceutical company that researches, develops, and manufactures drugs with a focus in (i) Oncology, (ii) Cardiovascular, Renal and Metabolism (CVRM), (iii) Respiratory and Immunology, (iv) Rare Disease, and (v) Vaccines and Immune.
- AstraZeneca operates in five primary segments: Oncology, CVRM (cardiovascular, renal, and metabolism), Respiratory and Immunology, Rare Diseases, and V&I (Vaccines and Immune). AstraZeneca reported FY25 revenues of $58.7 bn, with ~44% from Oncology, ~23% from CVRM, ~22% from Respiratory and Immunology, and ~16% from Rare Diseases.
- In recent years, AstraZeneca has acquired Alexion for $39 bn, CinCor for $1.8 bn, Fusion for $2 bn, among other smaller transaction.
Risk & Catalysts
AS OF 03 Mar 2026Given that AZN’s leverage has been largely restored to pre-Alexion levels, we expect limited deliberate improvement from here. However, we expect future shareholder rewards and business development to be managed somewhat conservatively.
AstraZeneca has shown discipline with respect to leverage and capital allocation in recent years. While AstraZeneca pays a relatively aggressive dividend (~32% of LTM FCF), the company has historically been very conservative with share repurchases and has even used share issuance to fund certain acquisitions.
AZN recently lost a patent-infringement lawsuit against Samsung Biologics regarding a biosimilar version of Soliris.
Key Metric
AS OF 03 Mar 2026| $ mn | Y20 | Y21 | Y22 | Y23 | Y24 | LTM 4Q25 |
|---|---|---|---|---|---|---|
| Revenue | 26,617 | 37,417 | 44,351 | 45,811 | 54,073 | 58,739 |
| Gross Profit | 21,318 | 24,980 | 31,960 | 37,543 | 43,866 | 48,106 |
| R&D | (5,991) | (9,736) | (9,762) | (10,935) | (13,583) | (14,232) |
| SG&A | (11,294) | (15,234) | (18,419) | (19,216) | (19,977) | (19,933) |
| Adj. EBITDA | 8,680 | 11,506 | 14,507 | 15,641 | 18,208 | 19,914 |
| Total Debt | 19,699 | 29,794 | 28,279 | 27,494 | 28,843 | 27,819 |
| Gross Leverage | 2.3x | 2.6x | 1.9x | 1.8x | 1.6x | 1.4x |
| Interest Coverage | 11.8x | 16.0x | 17.1x | 14.5x | 13.9x | 13.4x |
CreditSight View Comment
AS OF 25 Feb 2026We reiterate our Outperform recommendation on AstraZeneca. AZN benefits from a deep portfolio of innovative medicines and one of the strongest growth trajectories in the space (trailing only Eli Lilly). We see AZN as attractive versus NVS (U/P), a name with a less compelling growth narrative and modestly higher net leverage (~1.4x pf).
Recommendation Reviewed: February 25, 2026
Recommendation Changed: April 01, 2021
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Fundamental View
AS OF 25 Feb 2026UOB has solid stand-alone credit profile and benefits from the high likelihood of support from the government of Singapore, where it is one of the three major local banks.
The bank is more focused on Singapore and Southeast Asia than on Greater China; its traditional strengths are the SME and retail sectors, although its large corporate book is now over 60% of loans.
UOB has been conservatively managed with a sound risk profile, a strong focus on liquidity and a long track record of relatively good performance. However, its FY25 results showed some softness with substantial provisions set aside for HK and US CRE.
Business Description
AS OF 25 Feb 2026- UOB was established in 1935 as a Chinese family-owned bank catering to the Hokkien (Fujian) community, Singapore's largest Chinese ethnic sub-group. The Wee family owns about 18% of the shares. A further 5.2% is held by the Lien family which previously controlled Overseas Union Bank, which UOB merged within 2001. The Wee family has significant real estate and hospitality interests in Singapore and regionally.
- UOB's main markets are Singapore and Malaysia where its presence dates back to before Singapore's independence. It expanded through acquisitions in Thailand (Bank Radanasin and Bank of Asia) and Indonesia (Bank Buana), and more recently bought over Citi's consumer franchise in Malaysia, Thailand, Indonesia and Vietnam.
- Franchise strengths are in SME and consumer lending. Building & construction accounts for 26% of loans, followed by housing at 24%, financial institutions at 11% and general commerce at 11% at 4Q25.
- Loans by geography comprise Singapore at 50% of loans, Greater China at 13%, Malaysia at 10%, Thailand at 8%, and Indonesia at 3% at 4Q25.
Risk & Catalysts
AS OF 25 Feb 2026UOB has a greater focus on Southeast Asia than its Singapore bank peers, which leaves it open to more asset quality risk in a downturn / high interest rate environment. It has 8% of its loan book in Thailand and 3% in Indonesia, where we are cautious about macroeconomic conditions.
The bank has benefited more from the final Basel III rules implementation than its peers – its CET 1 ratio was previously the lowest among the three but now aligns with peers.
It posted a large profit decline in FY25 which was a negative surprise. Although the improved coverage ratios following the preemptive provision recognition are welcome, its NPL coverage ratio remains 30-50 ppt behind peers. Topline performance also lagged peers.
Key Metric
AS OF 25 Feb 2026| SGD mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 1.23% | 1.31% | 1.52% | 1.50% | 1.38% |
| ROA | 0.92% | 0.99% | 1.19% | 1.16% | 0.86% |
| ROE | 10.2% | 11.9% | 14.2% | 13.3% | 9.6% |
| Equity to Assets | 9.3% | 8.6% | 8.8% | 9.2% | 9.0% |
| CET1 Ratio (fully-loaded) | 13.5% | 13.3% | 13.4% | 15.4% | 14.9% |
| NPL Ratio | 1.62% | 1.58% | 1.52% | 1.53% | 1.53% |
| Provisions / Loans | 0.20% | 0.20% | 0.25% | 0.27% | 0.55% |
| Liquidity Coverage Ratio | 133% | 147% | 158% | 148% | 143% |
| Net Stable Funding Ratio | 116% | 116% | 120% | 116% | 116% |
CreditSight View Comment
AS OF 24 Feb 2026UOB is conservatively run with a large family ownership and a sound balance sheet. The bank is more focused on SG and Southeast Asia than on Greater China. Outside SG, its main operations in ASEAN are in Thailand, Malaysia and Indonesia which collectively make up ~20% of its loan book. It acquired Citi’s consumer operations in Thailand, Malaysia, Indonesia and Vietnam, which has been good for the franchise. The bank has benefitted more from the final Basel III rules implementation than its peers but it has lost this advantage again since 3Q25. The substantial preemptive provisions taken in 3Q25 to strengthen coverage ratios heavily hit the bank’s 2H25 results, but UOB’s NPL coverage ratio remained 40-60 ppt behind the two peers. New NPAs have risen due to its CRE exposure in HK and the US.
Recommendation Reviewed: February 24, 2026
Recommendation Changed: July 04, 2017
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Fundamental View
AS OF 25 Feb 2026ICICI Bank is one of the leading private banks in India and has a good diversified business model, with well regarded life and general insurance subsidiaries.
Under its previous CEO, the bank suffered setbacks from sizeable bad debt problems in FY17/18, but the situation has since stabilised following a leadership change and the bank has done well ever since.
Business Description
AS OF 25 Feb 2026- The original Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 by the World Bank, the Government of India and representatives of Indian industry as a financial institution to provide Indian businesses with medium and long-term project financing.
- In 1994, ICICI established a commercial banking subsidiary, ICICI Bank as India's financial sector opened up, and in 2002 ICICI merged with ICICI Bank, keeping the latter's name.
- Retail now accounts for 51% of its loan book, corporates are at 20%, while rural and business banking & SMEs are at 6% and 21% respectively, and overseas (which is being de-emphasised) consists of just 2% at F3Q26.
- The bank has well regarded life insurance (ICICI Prudential) and general insurance (ICICI Lombard) businesses.
Risk & Catalysts
AS OF 25 Feb 2026RBI repo rate cuts will initially impact the NIM before the lagged effect of deposit repricing catches up over FY26-27.
System loan growth has picked up and should stay robust in coming quarters, supported by GST rate cuts lifting consumption, and improving corporate borrowing momentum amid India’s trade deals with the US and EU and robust public-sector infrastructure capex.
We are cautious about pockets of stress in Indian retail, particularly unsecured retail and microfinance. However, ICICI’s prudence towards the segment than peers, and the banks not playing in the small ticket segment in general, are keeping asset quality well controlled.
Leadership and governance issues under the previous CEO Ms. Chanda Kochhar have been dealt with well, since her replacement in Oct-18.
Key Metric
AS OF 25 Feb 2026| INR bn | FY22 | FY23 | FY24 | FY25 | 9M26 |
|---|---|---|---|---|---|
| NIM | 3.96% | 4.48% | 4.53% | 4.32% | 4.31% |
| ROAA | 1.77% | 2.13% | 2.37% | 2.37% | 2.26% |
| ROAE | 14.7% | 17.2% | 18.7% | 17.9% | 15.9% |
| Equity/Assets | 12.1% | 12.6% | 12.7% | 13.7% | 14.6% |
| CET1 Ratio | 17.3% | 16.9% | 15.4% | 15.8% | 14.6% |
| Gross NPA Ratio | 3.60% | 2.81% | 2.16% | 1.67% | 1.53% |
| Provisions/Loans | 0.97% | 0.65% | 0.30% | 0.34% | 0.47% |
| PPP ROA | 2.97% | 3.28% | 3.36% | 3.37% | 3.30% |
CreditSight View Comment
AS OF 25 Feb 2026ICICI Bank is a preferred name among the Indian FIs we cover. We like the bank’s robust capital and loan loss buffers, strong asset quality, as well as peer leading margins, profitability and liquidity position. Under its previous CEO, the bank suffered setbacks from sizable bad debt problems in FY17/18 but the situation has since stabilised following a leadership change. The bank has emerged stronger from a capital, asset quality and earnings perspective, as it de-risked its book, and took pro-active actions to protect its capital by raising equity and selling small stakes in its well-regarded insurance subsidiaries to raise funds and set aside more general provisions. ICICI last issued a $ bond in 2017; we have ICICI on M/P given likely low trading liquidity.
Recommendation Reviewed: February 25, 2026
Recommendation Changed: December 07, 2020
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Fundamental View
AS OF 24 Feb 2026Standard Chartered has been making good progress in the past few years, improving its asset quality and profitability and dealing with legacy litigation issues. Capital, funding and liquidity look solid.
However, tensions between China and the West, including reciprocal trade tariffs between the US and China, and global economic headwinds continue to cloud the near term outlook.
Its unusual business mix – headquartered and regulated in the UK but operating primarily in Asia, Africa and the Middle East – means it is well diversified but sensitive to geopolitical developments and emerging market volatility.
Business Description
AS OF 24 Feb 2026- Standard Chartered PLC is the holding company and listed entity of the group, in which Standard Chartered Bank is the main operating company.
- Although Standard Chartered is headquartered in London and therefore subject to UK banking regulation, its operations are mainly in Asia (Hong Kong is its biggest single market, Africa and the Middle East. It is present in over 60 markets.
- It has the usual variety of businesses across these regions, including corporate and institutional banking, retail banking, commercial banking and private banking. It specialises in trade finance and cross-border cash management.
- It is classified as a G-SIB, with a regulatory capital buffer of 1%.
Risk & Catalysts
AS OF 24 Feb 2026Political tensions in Hong Kong, a slowing economy in China and a weak commercial real estate sector, and a US/China trade war have threatened the growth and stability of some of Standard Chartered’s key markets.
A number of Standard Chartered’s markets have underperformed in the past but are now turnaround stories, including India, Korea, Indonesia and the UAE.
The group has had to improve its AML and sanctions controls. In April 2019, it paid a $947 mn fine to US authorities over breaches of US sanctions and a £102 mn fine to the UK FCA for AML weaknesses.
Key Metric
AS OF 24 Feb 2026| $ mn | 4Q25 | Y25 | Y24 | Y23 | Y22 |
|---|---|---|---|---|---|
| Return on Equity | 3.5% | 9.7% | 8.0% | 7.0% | 5.7% |
| Total Revenues Margin | 2.4% | 2.4% | 2.3% | 2.2% | 2.0% |
| Cost/Income | 79.4% | 63.5% | 64.0% | 64.1% | 66.9% |
| CET1 Ratio (Transitional) | 14.1% | 14.1% | 14.2% | 14.1% | 14.0% |
| CET1 Ratio (Fully-Loaded) | 14.1% | 14.1% | 14.2% | 14.1% | 13.9% |
| Leverage Ratio (Fully-Loaded) | 4.7% | 4.7% | 4.8% | 4.7% | 4.8% |
| Loan Impairment Charge | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% |
| Impaired Loans (Gross)/Total Loans | 2.1% | 2.1% | 2.2% | 2.5% | 2.5% |
CreditSight View Comment
AS OF 27 Feb 2026We revised our recommendation on Standard Chartered HoldCo senior from Underperform to Market perform on 26 April 2023, but we changed our recommendations on Tier 2 and AT1 from Fair to Rich on 10 January 2024. The changes reflect StanChart’s recent resilient performance, while taking into account the potential impact from US tariffs policies and exposure to China. Capital and liquidity ratios are robust, and profitability has improved significantly, but the bank continues to face geopolitical tensions inherent in its extensive operations in Hong Kong, China and the rest of Asia.
Recommendation Reviewed: February 27, 2026
Recommendation Changed: April 26, 2023
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Search topics about wealth insights and investments.Bangkok Bank
- Sector: Financial Services
- Sub Sector: Banks
- Region: Thailand
- Bond: BBLTB 4.507 30
- Indicative Yield-to-Maturity (YTM): 4.39%
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Fundamental View
AS OF 24 Feb 2026Bangkok Bank is a family run conservative financial institution, with high capital and liquidity levels.
It acquired Indonesia’s Permata Bank in 2020 which resulted in a meaningful decline in its CET1 ratio to 14%. It has been built back to 17%. Management aims to keep the CET1 ratio above ~16% in preparation for Basel III final reforms.
Profitability (ROA and ROE) has historically been below the industry average, due in part to higher exposure to the lower-yielding corporates segment that has resulted in a lower NIM. However, the returns gap has narrowed as this has supported its relatively better asset quality than most peers in a prolonged sluggish macroeconomic environment.
Business Description
AS OF 24 Feb 2026- Bangkok Bank was set up in 1944 and was listed on the Stock Exchange of Thailand in 1975. It is a family-run bank and the current President of the bank, Chartsiri Sophonpanich, is the grandson of the founder of the bank.
- It is the largest bank by assets in Thailand. It was briefly surpassed by Kasikornbank in 2018, but the Bank Permata acquisition has taken BBL back to No.1.
- The bank is corporate-loan focused, and the loan book was split 49% corporate, 16% SME, 12% retail, and 23% international as at December 2025. It is by far the most international amongst the Thai banks, with branches in 14 economies.
- BBL's overseas presence has been enhanced by the acquisition of Bank Permata, the 12th largest bank in Indonesia. Bank Permata's asset size is ~10% of that of BBL.
Risk & Catalysts
AS OF 24 Feb 2026Thai economic growth is expected to slowdown this year from US tariffs. Ripple effects are in the form of lower bank NIMs as more BOT rate cuts come through to support growth, and credit costs remaining relatively elevated. Moody’s and Fitch have downgraded their rating outlook on the Thailand sovereign (and consequently the Thai banks including BBL at Moody’s, which it currently rates in line with the sovereign) to negative in April and September 2025 respectively on increased risks to Thailand’s economic and fiscal strength.
We see still middling loan growth across the Thai banks due to a focus on quality amid the current backdrop. Trading/investment income is also set to moderate from a high base given a smaller rates tailwind this year. However, we take comfort in BBL’s prudent provisioning, high loan loss buffers and safer large corporate book.
The acquisition of Bank Permata of Indonesia in May 2020 provides BBL with exposure to the high growth opportunities of the Indonesian market, but this also presents higher risks.
Key Metric
AS OF 24 Feb 2026| THB mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 1.65% | 1.60% | 1.92% | 2.02% | 2.01% |
| ROA | 0.65% | 0.67% | 0.93% | 1.00% | 1.00% |
| ROE | 5.6% | 5.9% | 8.1% | 8.3% | 8.2% |
| Equity / Assets | 11.4% | 11.5% | 11.8% | 12.2% | 12.5% |
| CET1 Ratio | 15.2% | 14.9% | 15.4% | 16.2% | 17.2% |
| Calculated NPL ratio | 3.20% | 3.10% | 2.70% | 2.70% | 3.00% |
| Provisions / Loans | 1.38% | 1.24% | 1.26% | 1.30% | 1.36% |
| Gross LDR | 82% | 84% | 84% | 85% | 82% |
| Liquidity Coverage Ratio | 270% | 271% | 277% | 265% | n/m |
CreditSights View
AS OF 22 Jan 2026Bangkok Bank’s strength has been its large corporate book and strong capital. It completed the acquisition of Indonesia’s Bank Permata (~12% of loans) in 2Q20 which reduced its CET1 ratio to 14%, but it has since rebuilt it to ~17-18%. Returns though have been lower due to thinner corporate margins, and we see greater NIM pressure on BBL than most peers from the turn in base rates. Disclosure from BBL is less than peers and credit costs rose again in FY25. However, we take comfort in BBL’s strong loss buffers and large corporate book. We also see a meaningful impact to the Thai economy from US tariffs, with ripple effects in the form of lower bank NIMs and continued high credit costs. We have it on Market perform as its recent longer dated issues trade at fair levels.
Recommendation Reviewed: January 22, 2026
Recommendation Changed: December 03, 2025
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