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In contrast to our other three Japanese regional bank holdings, Eighteenth Bank produced not only disappointing results but also continuing weak guidance for the year ahead. This comes after the bank had signalled that they expect to see loans growth improve and profitability rebound. Last year they placed through a higher provisioning charge on the back of a tighter provisioning policy, hence we would have anticipated that profitability should in fact improve in the year ahead.
Eighteenth Bank. This medium-sized bank is regarded as having strong management and is ahead of the game when it comes to computerised banking. Given its market capitalisation of a little over £500m it would appear a strong candidate for consolidation. In addition first half results have surprised on the upside due to falling non-performing loans and rising revenue. Valuations look compelling.
| Sedol |
Type |
Price |
Date |
| 6307169 |
Sell |
JPY 509.398 |
16/05/2007 |
| 6307169 |
Buy |
JPY 717.824 |
29/03/2006 |
| 6307169 |
Buy |
JPY 709.208 |
28/02/2006 |
| 6307169 |
Buy |
JPY 733.656 |
12/12/2005 |
| 6307169 |
Buy |
JPY 786.944 |
02/12/2005 |
| 6307169 |
Buy |
JPY 668.75 |
14/11/2005 |
| 6307169 |
Buy |
JPY 598.40 |
24/10/2005 |
| 6307169 |
Buy |
JPY 585.853 |
19/10/2005 |
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