Japan's Three Biggest Banks Report Earnings

The video discusses the current state and future prospects of mega banks, highlighting their holding pattern due to BOJ's yield curve control policy. It explores the potential for future growth, contingent on interest rates and inflation targets. The speaker provides insights into bank ratings, expressing a preference for buy or sell recommendations over neutral ones. Investment strategies are suggested, with a focus on non-life insurers and leasing companies as alternatives to mega banks, which require patience for potential growth.

What policy change by the Bank of Japan has influenced the current holding pattern of mega banks?

• Currency devaluation

• Negative interest rate policy

• Quantitative easing

• Yield curve control

What is the expected timeline for an upside breakout in the banking sector?

• 2021

• 2017

• 2018-2019 or later

• 2020

Why are many Japanese banks currently rated as neutral?

• Due to strong economic conditions

• Due to high profit growth

• Because of high interest rates

• Because of a holding pattern on profit growth

What is the analyst's long-term view on Japanese banks?

• Bearish due to immediate catalysts

• Pessimistic due to economic downturn

• Neutral due to market volatility

• Bullish due to undemanding valuations

Which financial stocks are recommended for more immediate catalysts?

• Mega banks

• Non-life insurers and leasing companies

• Real estate firms

• Technology startups