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Archives: CreditSights Issuer List
Tencent
- Sector: Technology Media and Telecommunications
- Sub Sector: Technology
- Country: China
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Fundamental View
AS OF 28 Nov 2025We maintain our O/P recommendation on Tencent. In 3Q25, revenues accelerated and were ahead of expectations, EBITDA margin expanded on an improved revenue mix, FOCF remained robust, debt metrics improved. We view Tencent as a core holding in China and Asia IG credits, and it is our preferred duration play. While valuations of Tencent is less compelling compared to YE24, its longer duration bonds still offer ~20 bp of spread pick up against Chinese SOEs of similar tenors. We like Tencent’s strong and improving credit outlook compared to its Chinese tech peers, rock solid balance sheet and robust free operating cash flow. We prefer its 2041 bond which offer the highest 20-35 bp spread pick up against Asia A corporate and Chinese SOEs
Business Description
AS OF 28 Nov 2025- Founded in November 1998, Tencent is a leading provider of Internet value added services in China. Since its establishment, Tencent has ventured into instant messaging, social networking, online payments, digital entertainment, and PC and smartphone gaming. Most recently, it has also forayed into high-tech areas such as artificial intelligence, and cloud computing.
- Tencent's leading Internet platforms in China include Weixin/WeChat (online messaging), QQ Instant Messenger (online messaging), Tencent Games (gaming), Tencent Video/Weixin Video Accounts (video platforms), WeChat Pay (payments), and Tencent Cloud. The combined monthly average users (MAU) of Weixin and Wechat reached 1.40 bn as of 31 March 2025.
- In 3Q25, 50% of revenues came from Value Added Services (which consist of Domestic Games, International Games, and Social Networks), 30% came from FinTech and Business Services (e.g. commercial payments and cloud), and 19% from Online Advertising.
- Tencent is currently primarily listed on the Hong Kong Stock Exchange, with a market capitalization of HKD 5.6 tn as of 27 November 2025.
Risk & Catalysts
AS OF 28 Nov 2025While Chinese regulators have adopted a more friendly stance towards tech companies, any regulatory clampdowns abroad and domestically (e.g. antitrust rules, data security, personal information protection laws) may affect Tencent’s business. Tencent’s gaming, music streaming, and online payment units are among those that have come under regulatory scrutiny in the past.
Tencent uses variable interest entities (VIEs) to circumvent China’s restrictions on foreign ownership of Internet Content Providers, which poses regulatory risks. Specifically, VIE transactions involving “change in control” will be subject to antitrust regulatory processes.
US-China tension may escalate under the new Trump Administration, including additional chip sanctions, which may result in higher volatility. Failing to secure a stable supply of advanced AI chips and/(or) find domestic alternatives could weigh on the long-term AI development of Tencent against international peers.
Key Metric
AS OF 28 Nov 2025| RMB bn | FY21 | FY22 | FY23 | FY24 | LTM 3Q25 |
|---|---|---|---|---|---|
| Debt to Book Cap | 27.0% | 31.4% | 29.8% | 25.4% | 24.5% |
| Net Debt to Book Cap | 6.0% | 8.5% | 1.0% | 2.3% | 1.4% |
| Debt/Total Equity | 36.9% | 45.9% | 42.5% | 34.0% | 32.5% |
| Debt/Total Assets | 20.1% | 22.8% | 23.5% | 20.1% | 19.7% |
| Gross Leverage | 1.7x | 1.9x | 1.6x | 1.3x | 1.2x |
| Net Leverage | 0.4x | 0.5x | 0.1x | 0.1x | 0.1x |
| Interest Coverage | 24.7x | 19.0x | 19.9x | 22.5x | 24.4x |
| EBITDA Margin | 34.9% | 34.3% | 38.9% | 42.4% | 45.0% |
CreditSight View Comment
AS OF 14 Nov 2025We maintain our O/P recommendation on Tencent. In 3Q25, revenues accelerated and were ahead of expectations, EBITDA margin expanded on an improved revenue mix, FOCF remained robust, debt metrics improved. We view Tencent as a core holding in China and Asia IG credits, and it is our preferred duration play. While valuations of Tencent is less compelling compared to YE24, its longer duration bonds still offer ~20 bp of spread pick up against Chinese SOEs of similar tenors. We like Tencent’s strong and improving credit outlook compared to its Chinese tech peers, rock solid balance sheet and robust free operating cash flow. We prefer its 2041 bond which offer the highest 20-35 bp spread pick up against Asia A corporate and Chinese SOEs
Recommendation Reviewed: November 14, 2025
Recommendation Changed: August 18, 2022
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Fundamental View
AS OF 27 Nov 2025Rural Electrification Corp Ltd (REC) is an important public sector enterprise as it is the government’s key strategic partner for driving reforms and developments in the power sector, and providing financing to weaker players (particularly distribution companies or “discoms”) to prevent liquidity disruptions to the sector, similar to its parent Power Finance Corp’s (PFC) mandate.
We view REC’s credit profile as underpinned by strong state support due to its majority 52.63% ownership by PFC, which is in turn 55.99% owned by the government of India (GoI), as well as the key role that it plays in an essential sector of the country.
REC is rated in line with both its parent, PFC, and the Indian sovereign at the international credit rating agencies.
Business Description
AS OF 27 Nov 2025- Established in 1969, Rural Electrification Corp Ltd (REC) is an important public sector enterprise of the Government of India (GoI) due to its mandate of helping to support the country's power sector initiatives. It has been designated as a systematically important NBFC by the Reserve Bank of India (RBI).
- REC went public on the Indian stock exchanges in 2008 but continued to be majority owned by the GoI until March 2019, where the GoI sold its 52.63% shareholding in REC to Power Finance Corp (PFC) for INR 145 bn as part of the GoI's efforts to monetise its shareholding in different public sector enterprises; PFC is in turn 56% owned by the GoI. REC’s non-PFC shareholding is broadly similar to that of its parent, with a 20% share of foreign portfolio investors, 12% individuals, 9% mutual funds, and 6% others.
- REC has continued to be run as a standalone institution despite PFC's majority ownership in the entity.
- Similar to its parent, REC primarily provides funding to the public sector (~86% of its loan book) while the private sector is ~14%. By segment, Transmission & Distribution (T&D) is the largest part of the loan asset mix at 49%, followed by conventional and renewable energy generation at 27% and 12% respectively, while Infrastructure (10%) and Others (3%) round up the rest.
Risk & Catalysts
AS OF 27 Nov 2025Given its mandate, REC has concentrated loan exposure to the power sector which is also chunky in nature; power generation projects typically involve large upfront borrowing and have long gestation periods before the projects become operational. Resolutions of stressed exposures have been with delays due to India’s slow moving Insolvency & Bankruptcy Code (IBC) regime despite the ongoing NCLT reforms, but are gaining traction. Earlier lumpy provisioning and now meaningful reversals are the result.
Asset quality risk is also mitigated by a majority public sector exposure; while many state government discoms are in poor health, REC can get funds meant for the states through the GoI/RBI if payments are overdue.
Like most NBFCs, REC is reliant on the confidence sensitive wholesale market for funding. However, its quasi-government status enables it to have diversified funding sources (onshore and offshore) at costs that are close to the sovereign.
Key Metric
AS OF 27 Nov 2025| INR mn | FY22 | FY23 | FY24 | FY25 | 1H26 |
|---|---|---|---|---|---|
| NIM | 4.07% | 3.38% | 3.57% | 3.63% | 3.64% |
| PPP ROAA | 3.91% | 3.17% | 3.24% | 3.60% | 3.42% |
| ROAA | 2.47% | 2.53% | 2.77% | 2.71% | 2.83% |
| ROE (Reported) | 21.3% | 20.4% | 22.2% | 21.5% | 22.1% |
| Total Equity/Total Assets | 12.42% | 12.41% | 12.56% | 12.65% | 12.94% |
| Tier 1 Ratio | 19.6% | 22.8% | 23.3% | 23.8% | 21.7% |
| Total Capital Ratio | 23.6% | 25.8% | 25.8% | 26.0% | 23.7% |
| Gross NPA Ratio | 4.45% | 3.42% | 2.71% | 1.35% | 1.06% |
| Provisions/Avg Loans | 0.91% | 0.03% | (0.29%) | 0.19% | (0.17%) |
CreditSight View Comment
AS OF 09 Feb 2026REC is 52.63% owned by PFC and along with its parent is one of two policy NBFIs that provides funding for power generation and T&D projects, lending largely to state government utilities (86% of loans) vs. the private sector (14%). Operating performance was on an uptrend in recent years, supported by a material improvement in asset quality and resolution of past stressed assets. Margin expansion since FY23 and robust loan growth also supported a strong topline. Growth momentum however is slowing on higher pre-payments and margins have steadied. The CAR ratio is ~24%. Although a number of state government utilities are in poor health, the NBFIs can get funds meant for the states through the GoI/RBI if they don’t get paid in time.
Recommendation Reviewed: February 09, 2026
Recommendation Changed: May 22, 2025
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Fundamental View
AS OF 27 Nov 2025Bank Negara Indonesia (BNI) is the fourth largest commercial bank in Indonesia.
The bank is majority-owned by the Indonesian government (60%) and receives strong state support in the form of well-established relationships with SOEs, an area that the bank heavily loans to.
BNI’s asset quality has shown a steady improvement after COVID headwinds in Indonesia, through de-risking its loan portfolio by focusing growth on top tier private corporates. It is now going for balanced loan growth across segments.
Business Description
AS OF 27 Nov 2025- Bank Negara Indonesia was founded in 1946, initially as a central bank, before becoming a commercial bank in 1968. It is now the 4th largest commercial bank in Indonesia by assets.
- The bank is majority-owned by the state (60%) and focuses its lending toward SOEs and domestic corporates.
- BNI's loan book is split 56% corporates, 24% small and medium enterprises and 19% retail, with the remaining coming from its subsidiaries at September 2025.
Risk & Catalysts
AS OF 27 Nov 2025The liquidity environment showed a turning point in September, aided by BI rate cuts, smaller SRBI issuance and yields, higher government spending, and the government’s cash injection into key state banks, supporting loan growth momentum.
While Indonesia’s growth is projected at ~5% in 2025 and could pickup over the medium term under the Prabowo administration, volatile sentiment towards Indonesia over growth slowdown concerns, weak state finances, and governance and policy uncertainties could weigh on spreads.
We see governance risks as increased with the move of SOE banks including BNI to Danantara; higher dividend payouts to fund government policies are likely. However, we are comfortable with the CET1 ratio dropping to the 14-16% range of other APAC banks.
Asset quality is showing pressure in retail and medium commercials, yet BNI is shifting its growth focus from large corporates and safer retail to more balanced mix. We see this as margin pressure and possibly policy driven. There could be more state directed lending to less commercially viable projects, but the effects would take a few years to play out.
Key Metric
AS OF 27 Nov 2025| IDR bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| PPP ROA | 3.35% | 3.42% | 3.32% | 3.10% | 2.68% |
| ROA | 1.2% | 1.8% | 2.0% | 1.9% | 1.7% |
| ROE | 9.9% | 15.0% | 15.2% | 13.9% | 12.4% |
| Equity/Assets | 12.07% | 12.32% | 13.61% | 14.18% | 12.96% |
| CET1 Ratio | 17.4% | 17.5% | 20.2% | 18.9% | 18.7% |
| NPL Ratio | 3.70% | 2.81% | 2.14% | 1.97% | 1.96% |
| Provisions/Average Loans | 3.23% | 1.83% | 1.41% | 1.08% | 0.95% |
| LDR | 79.9% | 84.0% | 85.7% | 96.3% | 86.9% |
CreditSight View Comment
AS OF 06 Feb 2026BNI is the 4th largest bank in Indonesia by assets and is 60% government owned. Asset quality was weaker than Mandiri, but has improved on its pivot to better quality segments since ’21. Funding cost pressure from the tight liquidity environment has eased with recent government stimulus, and loan growth has picked up. Margins though are under pressure from state-subsidized lending programs and rate cuts impacting wholesale lending yields. Soft economic momentum, retail asset quality strains and higher governance risks are also headwinds. Fundamentals however remain sound with a corporates focused book, strong capital and decent profitability. We expect capital ratios to decline, but would be fine with a 14-16% CET1 ratio. We have BNI on U/P due to Indonesia’s macro uncertainty overhang.
Recommendation Reviewed: February 06, 2026
Recommendation Changed: August 04, 2025
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Fundamental View
AS OF 27 Nov 2025Bank Mandiri (Mandiri) is the largest state-owned bank in Indonesia with 60% government ownership. We therefore expect a very high likelihood of government support in times of need.
Mandiri’s strength had been its large corporate loan portfolio, which has allowed the bank to book lower credit costs compared to its peers over the pandemic. Mandiri is well capitalised in line with the other Indonesian banks that have relatively high CET1 ratios in the region, though we expect this to be reduced by higher dividend payouts over time.
Business Description
AS OF 27 Nov 2025- Bank Mandiri was established as a result of the mergers of four state-owned banks, Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia, and Bank Pembangunan Indonesia, in the late 1990s. The bank was first listed in Indonesia Stock Exchange in 2003.
- The Indonesian government holds a 60% stake in the bank. Foreign investors have a 32% shareholding while domestic investors have another 8%.
- Corporates accounted for 38% of total loans, consumer for 7%, micro & payroll for 11%, SME for 5%, commercial for 18% and subsidiaries 21% at September 2025.
Risk & Catalysts
AS OF 27 Nov 2025The liquidity environment showed a turning point in September, aided by BI rate cuts, smaller SRBI issuance and yields, higher government spending, and the government’s cash injection into key state banks, supporting loan growth momentum.
While Indonesia’s growth is projected at ~5% in 2025 and could pickup over the medium term under the Prabowo administration, volatile sentiment towards Indonesia over growth slowdown concerns, weak state finances, and governance and policy uncertainties could weigh on spreads.
We see governance risks as increased with the move of SOE banks including BNI to Danantara; higher dividend payouts to fund government policies are likely. However, we are comfortable with the CET1 ratio dropping to the 14-16% range of other APAC banks.
Asset quality has trended better than peers due to its loan book and growth being predominantly in large corporates. However, we see the possibility of more state directed lending to less commercially viable projects, but the effects would take a few years to play out.
Key Metric
AS OF 27 Nov 2025| IDR bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| PPP ROA | 3.5% | 3.9% | 4.1% | 3.8% | 3.2% |
| ROA | 1.7% | 2.2% | 2.6% | 2.4% | 2.0% |
| ROE | 14.2% | 19.0% | 22.4% | 20.5% | 17.8% |
| Equity/Assets | 11.9% | 11.5% | 12.0% | 11.7% | 11.0% |
| CET1 Ratio | 18.4% | 18.6% | 20.8% | 19.6% | 18.9% |
| NPL Ratio | 2.72% | 1.92% | 1.19% | 1.12% | 1.19% |
| Provisions/Average Loans | 1.98% | 1.41% | 0.79% | 0.77% | 0.71% |
| LDR | 81% | 81% | 89% | 98% | 94% |
CreditSight View Comment
AS OF 06 Feb 2026Mandiri is the biggest bank in Indonesia by assets and 60% government owned. It weathered the pandemic well given its focus on large corporates. Funding cost pressure from the tight liquidity environment has eased with recent government stimulus, and loan growth has picked up. Margins though are under pressure from state-subsidized lending programs and rate cuts impacting wholesale lending yields. Soft economic momentum, retail asset quality strains and higher governance risks are also headwinds. Fundamentals however remain sound with a corporates focused book, strong capital and healthy profitability. We expect higher dividend payouts to gradually reduce capital ratios but are comfortable with a 14-16% CET1 ratio. We have Mandiri on U/P due to Indonesia’s macro uncertainty overhang.
Recommendation Reviewed: February 06, 2026
Recommendation Changed: September 02, 2025
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Search topics about wealth insights and investments.Sumitomo Mitsui Financial Group
- Sector: Financial Services
- Sub Sector: Banks
- Region: Japan
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Fundamental View
AS OF 26 Nov 2025After reorganising and building up capital for the full impact of Basel 3, SMFG has recently been acquisitive to develop its next phase of growth, and now has a lower capital buffer than Mizuho.
It has a strong retail, mid and large corporate franchise in Japan, but its securities arm SMBC Nikko punches below weight.
Given its size and systemic importance, SMFG is considered too big to fail, and will be supported by the Japanese government if needed.
Business Description
AS OF 26 Nov 2025- The core unit of SMFG is Sumitomo Mitsui Banking Corp (SMBC), whose main predecessors were Sumitomo Bank and Mitsui Bank.
- SMFG's group companies include the securities firm SMBC Nikko, SMBC Trust Bank, SMBC Card Company, SMBC Consumer Finance, Sumitomo Mitsui Finance and Leasing, SMFG India Credit Company (SMICC), Sumitomo Mitsui DS Asset Management, and SMBC Aviation Capital.
- SMFG does not have a large trust business as Sumitomo Trust and Chuo Mitsui Trust chose not to join SMFG, but merged with each other to form the separate Sumitomo Mitsui Trust Holdings.
- It has been acquisitive over the years, particularly in emerging Asia and leasing assets. In 2021, the group took a 49% stake in Vietnam's FE Credit, 74.9% of Indian NBFI Fullerton Capital (now called SMICC), 4.99% of Philippines' RCBC, and 4.5% of US investment bank Jefferies. In 2022, it increased its stake in RCBC to 20%. In 2023, it acquired a 15% stake in Vietnam's VP Bank, and increased its stake in Jefferies from 4.5% to 15%, and in 2024 took its stake in SMICC to 100%. In 2025 it took a 24% stake in India's Yes Bank, and increased its Jefferies stake to 20%.
Risk & Catalysts
AS OF 26 Nov 2025SMFG has the strongest Japan retail franchise amongst its peers, and a very strong corporate banking franchise.
Similar to the other megabanks, SMFG aims to focus more on the US, and reduce low return RWAs in Europe and Asia ex-Japan.
SMFG has made a number of acquisitions and taken stakes in banks and NBFIs in Vietnam, the Philippines, India and Indonesia. The group took JPY 135 bn of goodwill impairments in FY24 on its Vietnam investments. RoE on these investments has been poor.
It has increased its 15% stake in Jefferies to 20%, to develop revenue opportunities for SMBC Nikko. Further investments in SMBC Nikko will be required.
Its CET1 ratio buffer is ~200 bp, which we would like to see maintained.
Key Metric
AS OF 26 Nov 2025| JPY bn | FY21 | FY22 | FY23 | FY24 | 1H25 |
|---|---|---|---|---|---|
| Net Interest Revenue/Average Assets | 0.64% | 0.68% | 0.70% | 0.82% | 0.88% |
| Operating Income/Average Assets | 1.23% | 1.26% | 1.39% | 1.44% | 1.58% |
| Operating Expense/Operating Income | 62% | 61% | 60% | 58% | 53% |
| Pre-Impairment Operating Profit / Average Assets | 0.48% | 0.51% | 0.58% | 0.60% | 0.79% |
| Impairment charge/Average Loans | (0.31%) | (0.22%) | (0.27%) | (0.32%) | (0.16%) |
| ROAA | 0.30% | 0.32% | 0.36% | 0.41% | 0.64% |
| ROAE | 5.9% | 6.5% | 7.0% | 8.0% | 12.5% |
CreditSight View Comment
AS OF 02 Feb 2026SMFG’s banking business had performed well, while its non-bank subsidiaries had underperformed over FY21-22. The group had a better 2H vs a poor 1H23, with improved trading and fee revenues, partially offset by higher credit costs at the non-bank businesses. The group became acquisitive from 2021, taking a 49% stake in a leading Vietnamese NBFI and 15% of its parent (VP Bank), 20% of RCBC of the Philippines, 74.9% of NBFI Fullerton India (now 100%), 4.5% in US IB Jefferies (increasing to 20%), and 24% of India’s Yes Bank for the next stage of growth. Its high CET1 ratio has been whittled down by acquisitions. FY24 results were boosted by share sales and structured investment trusts, 9M25 showed a large jump on base effects. Govt. support is assured. We like its PerpNC10 AT1s for duration.
Recommendation Reviewed: February 02, 2026
Recommendation Changed: August 05, 2025
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Search topics about wealth insights and investments.Mitsubishi UFJ Financial Group
- Sector: Financial Services
- Sub Sector: Banks
- Region: Japan
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Fundamental View
AS OF 26 Nov 2025MUFG is the largest of Japan’s three megabanks, and has the most diversified operations by business line and geography. It had also been the most acquisitive till the early 2020s.
Core profitability had been weak due to Japan’s ultra-low interest rates and growth; that improved post an efficiency drive and a CEO change in April 2020; the bank has improved international margins and fee income, and benefits from rising domestic interest rates.
Given its size and systemic importance, MUFG is considered too big to fail, and will be supported by the Japanese government if needed.
Business Description
AS OF 26 Nov 2025- The 2 main banks of MUFG are MUFG Bank (earlier Bank of Tokyo-Mitsubishi UFJ or BTMU) & Mitsubishi UFJ Trust & Banking. In the early stages of Japan's long banking crisis, Bank of Tokyo merged with Mitsubishi Bank, and in the late stages they absorbed UFJ (former Sanwa Bank & Tokai Bank) while Mitsubishi Trust absorbed Toyo Trust & Nippon Trust.
- The group includes consumer lenders Mitsubishi-UFJ NICOS & ACOM, and securities/IB JVs with Morgan Stanley. MUFG invested in Morgan Stanley in 2008 and now has a ~20% stake. In Dec-22, it completed the sale of its US retail and commercial bank, MUFG Union Bank, to US Bancorp.
- It has a majority stake in Thailand's Bank of Ayudhya (now Krungsri), 20% stakes in Vietnam's Vietinbank and Philippines' Security Bank, and 100% of Indonesia's Bank Danamon.
- In 2019, it acquired Colonial First State from Commonwealth Bank of Australia to strengthen its global asset management business, in 2020 it invested $700 mn in SE Asia's Grab, and more recently has bought Home Credit's Philippine and Indonesian subsidiaries, Link (an Australian pension fund administrator), auto loan companies in Indonesia, Albacore Capital, StanChart's Indonesian retail operations, and a stake in an Indian NBFI.
Risk & Catalysts
AS OF 26 Nov 2025Its recent divisional performance has been strong, with the domestic businesses benefiting from higher BOJ rates, and robust growth in fee income.
Credit costs have been rising because of increased exposure to personal unsecured loans in Japan and Southeast Asia, as well as higher-risk lending in Southeast Asia.
Its close relationship with Morgan Stanley has led it to take large positions in US corporate finance loans, which has been problematic on occasion.
We see limited risk from rising JGB yields as the large equity unrealised gains dwarf the unrealised losses on the bond portfolio.
Key Metric
AS OF 26 Nov 2025| JPY bn | FY21 | FY22 | FY23 | FY24 | 1H25 |
|---|---|---|---|---|---|
| Net Interest Revenue/Average Assets | 0.57% | 0.79% | 0.64% | 0.73% | 0.73% |
| Operating Income/Average Assets | 1.11% | 1.22% | 1.23% | 1.22% | 1.48% |
| Operating Expense/Operating Income | 69% | 65% | 61% | 67% | 56% |
| Pre-Impairment Operating Profit / Average Assets | 0.34% | 0.43% | 0.48% | 0.40% | 0.65% |
| Impairment charge/Average Loans | (0.30%) | (0.61%) | (0.36%) | 0.00% | (0.12%) |
| ROAA | 0.32% | 0.30% | 0.39% | 0.47% | 0.65% |
| ROAE | 6.7% | 6.5% | 8.1% | 9.3% | 12.5% |
| CET1 post Basel 3 reforms excl. secs gains | 10.4% | 10.3% | 10.1% | 10.8% | 10.5% |
CreditSight View Comment
AS OF 05 Feb 2026MUFG is the largest of the megabanks with more diversified business lines than its peers. Digitalisation and operational efficiency improvements, in addition to higher rates in Japan and the US, had led to much better results in FY24. Lending discipline has lifted international margins; domestic margins though lag its peers. Its ~20% shareholding in Morgan Stanley has been a boon. Its $ liquidity is the best amongst its peers, and government support is assured. Its CET1 ratio ratio has fallen to ~180 bp, which we see as low; pro-forma for the Shriram acquisition it will fall to a particularly low ~120 bp. However, we see the group’s earnings power improving from BOJ rate rises and so continue with our Market perform recommendation. We see current levels on its 6NC5 of G+68 bp as 5 bp wide.
Recommendation Reviewed: February 05, 2026
Recommendation Changed: August 05, 2025
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Fundamental View
AS OF 25 Nov 2025Standard 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 25 Nov 2025- 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 25 Nov 2025Political 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 25 Nov 2025| $ mn | 3Q25 | Y24 | Y23 | Y22 | Y21 |
|---|---|---|---|---|---|
| Return on Equity | 9.8% | 8.0% | 7.0% | 5.7% | 4.5% |
| Total Revenues Margin | 2.2% | 2.3% | 2.2% | 2.0% | 1.8% |
| Cost/Income | 61.5% | 64.0% | 64.1% | 66.9% | 74.3% |
| CET1 Ratio (Transitional) | 14.2% | 14.2% | 14.1% | 14.0% | 14.1% |
| CET1 Ratio (Fully-Loaded) | 14.2% | 14.2% | 14.1% | 13.9% | 14.1% |
| Leverage Ratio (Fully-Loaded) | 4.6% | 4.8% | 4.7% | 4.8% | 4.9% |
| Loan Impairment Charge | 0.3% | 0.2% | 0.2% | 0.3% | 0.1% |
| Impaired Loans (Gross)/Total Loans | 1.9% | 2.2% | 2.5% | 2.5% | 2.7% |
CreditSight View Comment
AS OF 02 Dec 2025We 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: December 02, 2025
Recommendation Changed: April 26, 2023
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Search topics about wealth insights and investments.T-Mobile US
- Sector: Technology Media and Telecommunications
- Sub Sector: Telecommunications
- Region: US
- Bond: TMUS 3.5 31
- Indicative Yield-to-Maturity (YTM): 4.275%
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Fundamental View
AS OF 24 Nov 2025We expect T-Mobile will maintain its position as the industry leader in postpaid phone net additions, service revenue and EBITDA growth in 2025. We think the company has significant subscriber runway remaining in the suburban/rural and enterprise markets.
Adjusted net leverage (2.5x at 3Q25) is below AT&T/Verizon. Relatively strong EBITDA growth and a modest dividend commitment results in greater financial flexibility than peers.
T-Mobile benefits from the strongest spectrum position in the industry, including an average of 181 MHz in the 2.5 GHz band, which results in better 5G network coverage than AT&T and Verizon.
Business Description
AS OF 24 Nov 2025- TMUS is the one of the top 3 U.S. wireless carriers and is owned ~51% by Deutsche Telekom (DT). On April 1, 2020, TMUS and S completed an all-stock merger, valuing S at an EV of approximately $59.7 bn.
- TMUS ended 2024 with ~130 mn customers, including 104 mn postpaid and 25 mn prepaid.
- TMUS reaches 330+mn POPs with its Extended Range 5G network (using the 600 MHz spectrum) and reaches 300mn customers with its Ultra Capacity 5G.
Risk & Catalysts
AS OF 24 Nov 2025Converged wireless/broadband offers from cable operators raises the risk of pricing pressure in the mature consumer wireless market. AT&T and Verizon have also made sizable fiber acquisitions, enhancing their ability to offer converged services.
The company has not shied away from acquisitions. T-Mobile recently acquired Mint Mobile, two FTTH JVs and US Cellular. So far, M&A has not had much impact on T-Mobile’s credit metrics, but further moves into FTTH may be received poorly by investors.
Key Metric
AS OF 24 Nov 2025| $ mn | FY21 | FY22 | FY23 | FY24 | LTM 3Q25 |
|---|---|---|---|---|---|
| Revenue | 80,118 | 79,571 | 78,558 | 81,400 | 85,847 |
| Organic Revenue Growth | 7.3% | (0.7%) | (1.3%) | 3.6% | 7.3% |
| EBITDA | 26,924 | 27,821 | 29,428 | 31,864 | 33,406 |
| Adj. EBITDA Growth | (64.0%) | 33.9% | 5.8% | 8.3% | 7.2% |
| Adj. EBITDA Margin | 33.6% | 35.0% | 37.5% | 39.1% | 38.9% |
| CapEx % of Sales | 15.4% | 17.6% | 12.5% | 10.9% | 11.3% |
| Total Debt | 79,574 | 78,425 | 83,586 | 84,255 | 90,107 |
| Net Debt | 72,943 | 73,918 | 78,451 | 78,846 | 86,797 |
| Gross Leverage | 3.4x | 3.0x | 2.9x | 2.7x | 2.7x |
| Net Leverage | 3.0x | 2.7x | 2.6x | 2.4x | 2.5x |
| Interest Coverage | 7.2x | 8.0x | 8.3x | 8.7x | 8.7x |
| FCF as % of Debt | 13.7% | 13.2% | 19.2% | 23.0% | 22.1% |
CreditSight View Comment
AS OF 12 Feb 2026We expect T-Mobile will continue to lead the industry for growth in subscribers and EBITDA (+10% YoY) in 2026 and beyond. T-Mobile also boasts the lowest leverage (~2.4x) and strongest FCF/debt ratio amongst the Wireless Big 3, while its rising FCF generation and comparatively low dividend commitment provide flexibility for selective M&A. We acknowledge that event risk for TMUS is higher than peers AT&T and Verizon, which have already announced material FTTH and spectrum acquisitions. However, despite the rising focus on convergence, we believe TMUS will stick with its off-balance sheet strategy for FTTH JVs and view the risk of a transformational broadband acquisition (ILEC or cable) as low.
Recommendation Reviewed: February 12, 2026
Recommendation Changed: March 18, 2021
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Search topics about wealth insights and investments.State Bank of India
- Sector: Financial Services
- Sub Sector: Banks
- Country: India
- Bond: SBIIN 5.125 29
- Indicative Yield-to-Maturity (YTM): 4.22%
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Fundamental View
AS OF 19 Nov 2025- State Bank of India (SBI) is the largest state-owned bank in India and is in some respects the country’s flagship bank. Given the bank’s ~55% government ownership and systemic importance, government support for SBI is very strong.
- The bank’s capital buffers are relatively low, but we take comfort in the strong government support.
Business Description
AS OF 19 Nov 2025- State Bank of India is the largest commercial bank in India. Its predecessor banks date back to the 19th century. In the early 20th century, they merged to form the Imperial Bank of India, which became the State Bank of India after India gained independence in 1947.
- The Government of India remains the largest shareholder with a 55.03% stake. Per the SBI Act, the government's shareholding cannot fall below 55%.
- SBI's merged with its 5 associate banks and Bharatiya Mahila Bank in 2018. The merger catapulted SBI into one of the world's 50 largest banks.
- The bank has 85% of its loans in the domestic market, and has steadily increased its international business too over the past few years with offices across all international business centres. The domestic book is split 43% retail, 33% corporates, ~14% SMEs and ~10% to the agri segment as of September 2025.
- It has diversified its operations with well regarded subsidiaries in the areas of fund management, credit cards, insurance, and capital markets.
Risk & Catalysts
AS OF 19 Nov 2025- SBI does not have a strong buffer vs. the regulatory minimum of 8%, but its size, systemic importance and majority government shareholding confer particularly strong government support. But consequentially, any deterioration in the sovereign ratings will also affect the bank’s credit.
- RBI repo rate cuts will impact the NIM in FY26-27, with another 25 bp reduction on the table in December. System loan growth has been slow despite improved system liquidity, but picked up in F2Q26. Momentum should sustain into F2H26 given GST rate cuts and the 3Q festive season. A sustained pickup in private sector capex though hinges on consumption strength enduring beyond the festive period.
- We are cautious about pockets of stress in Indian retail, particularly unsecured retail and microfinance. Asset quality however is trending well as SBI’s personal unsecured loans book is ~95% to salaried employees of top tier corporates and the government.
Key Metric
AS OF 19 Nov 2025| INR mn | FY22 | FY23 | FY24 | FY25 | 1H26 |
|---|---|---|---|---|---|
| NIM | 3.12% | 3.37% | 3.28% | 3.09% | 2.93% |
| ROAA | 0.67% | 0.96% | 1.04% | 1.10% | 1.15% |
| ROAE | 11.9% | 16.5% | 17.3% | 17.3% | 16.4% |
| Equity to Assets | 5.6% | 5.9% | 6.1% | 6.6% | 7.4% |
| CET1 Ratio | 10.3% | 10.6% | 10.6% | 11.1% | 11.7% |
| Gross NPA Ratio | 3.97% | 2.78% | 2.24% | 1.82% | 1.73% |
| Provisions/Loans | 0.91% | 0.54% | 0.14% | 0.38% | 0.47% |
| PPP ROA | 1.58% | 1.59% | 1.60% | 1.72% | 1.69% |
CreditSights View
AS OF 10 Feb 2026SBI is India’s largest bank and a well-run franchise. Government support (55% shareholding, can’t drop below 51%) underpins SBI’s relative positioning, while fundamentally, it has good operating metrics and business plans, a comfortable LDR, sufficient CET1 ratio (recently boosted by an equity raise in Jul-25), and the best management among the public sector banks. India’s macro backdrop remains relatively robust and SBI’s lower risk personal unsecured loans clientele is supporting asset quality well. Lower rates should keep asset quality well-supported. Rate cuts will feed through to the NIM in FY26, but treasury gains have provided some offset, and deposit repricing has started to catch up. Loan growth has picked up strongly. We like the name, but have it on M/P as it trades fair.
Recommendation Reviewed: February 10, 2026
Recommendation Changed: April 25, 2025
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Fundamental View
AS OF 19 Nov 2025ICICI 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 19 Nov 2025- 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 52% of its loan book, corporates are at 20%, while rural and business banking & SMEs are at 6% and 20% respectively, and overseas (which is being de-emphasised) consists of just 2% at F2Q26.
- The bank has well regarded life insurance (ICICI Prudential) and general insurance (ICICI Lombard) businesses.
Risk & Catalysts
AS OF 19 Nov 2025ICICI has been delivering both relatively strong loan and deposit growth momentum, while maintaining its leading LDR and profitability, in testament to its strong franchise.
RBI repo rate cuts will impact the NIM in FY26-27, with another 25 bp reduction on the table in December. System loan growth has been slow despite improved system liquidity, but picked up in F2Q26. Momentum should sustain into F2H26 given GST rate cuts and the 3Q festive season. A sustained pickup in private sector capex though hinges on consumption strength enduring beyond the festive period.
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 19 Nov 2025| INR bn | FY22 | FY23 | FY24 | FY25 | 1H26 |
|---|---|---|---|---|---|
| NIM | 3.96% | 4.48% | 4.53% | 4.32% | 4.32% |
| ROAA | 1.77% | 2.13% | 2.37% | 2.37% | 2.36% |
| ROAE | 14.7% | 17.2% | 18.7% | 17.9% | 16.8% |
| Equity/Assets | 12.1% | 12.6% | 12.7% | 13.7% | 14.5% |
| CET1 Ratio | 17.3% | 16.9% | 15.4% | 15.8% | 14.9% |
| Gross NPA Ratio | 3.60% | 2.81% | 2.16% | 1.67% | 1.58% |
| Provisions/Loans | 0.97% | 0.65% | 0.30% | 0.34% | 0.37% |
| PPP ROA | 2.97% | 3.28% | 3.36% | 3.37% | 3.39% |
CreditSight View Comment
AS OF 20 Jan 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: January 20, 2026
Recommendation Changed: December 07, 2020
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