While Asian financial companies have by no means been safe from the recent banking turmoil scything through other developed economies, regional banks have had a far less punishing month in terms of sales and earnings estimates than their peers in other markets. The financials sector is one of the least negatively-revised in developed Asia, making it a standout in the region with net positive guidance changes over the past month.
Regional banks, led by Japanese companies, are now forecasted to maintain a stable level of sales this year, with larger banks and more widely-exposed financial companies taking a far greater hit to sales from broader banking uncertainty. As detailed below, Asia’s regionals appear to be standing a bit above the chaos and expected to be able to protect their sales for the next two years.
Change in FY1 and FY2 Sales Estimates (%) – DM Asia, current fiscal year:
Earnings per share, as seen in the table below, is a slightly different story. Though still subject to a drop in estimated earnings, regional banks in the region still stand well above other financial companies for projected earnings. Their US peers fall at the bottom of this list.
