1. MORGAN STANLEY RESEARCH
ASIA/PACIFIC
Morgan Stanley Asia (Singapore) Matthew S Wilson, CFA
Pte.+
Matthew.Wilson@morganstanley.com
+65 6834 6746
Morgan Stanley Asia Limited+ Anil Agarwal
Anil.Agarwal@morganstanley.com
+852 2848 5842
December 14, 2009
Asia Pacific Banks
December– Data Dashboard
Recent Reports
▲ India SoE banks: Offer value, return expansion and Title Date
strong earnings momentum. Capital flows reduce asset Asia Pacific Banks: Higher Rates Better for Nov 3, 2009
Who?
quality concerns. Prefer SBI, Least Axis. Matthew S Wilson, CFA / Samantha L Horton /
Anil Agarwal
▲ Thailand: We see value, clean balance sheets, growth Asia/Pacific Financials: Stocks We Would Aug 14, 2009
& expanding returns from a dual track 2010 recovery. Prefer Buy
Anil Agarwal / Matthew S Wilson, CFA
BBL, Least KTB.
Asia Pacific Banks: Dissecting Regional Jul 21, 2009
▲ Indonesia: High growth, high return & declining risk/ Returns
Matthew S Wilson, CFA / Anil Agarwal
sovereign upgrade. Prefer BRI, Least BCA. Asia/Pacific Banks: We Prefer Mega Cap Jun 15, 2009
China to Large Cap India
▲ Korea: Key factors for FY10 1) regulatory changes, Anil Agarwal / Minyan Liu / Matthew S Wilson,
2) asset & liability spread management, and 3) credit CFA
Asia Pacific Banks: Stocks to Buy if Economic May 5, 2009
cost management/ recoveries. Prefer SFG, Least HFG. Recovery Is Sustainable
Anil Agarwal / Matthew S Wilson, CFA
▲ China: Capital to be a key near-term differentiator.
The large banks have strong Tier-1 and capital
YTD MSCI bank index performance vs. MSCI
generation ability. Prefer CCB & ICBC, Least Ningbo.
local market index …
- Philippines: Resilient remittances, improving 40%
consumption and reasonable value. Liquidity to find this 30%
Korea
overlooked market. Prefer MBT, Least BDO. Australia Malaysia Thailand
20%
RELATIVE PERFORMANCE
- Pakistan: Macro looks to have bottomed and risk 10% Singapore
Pakistan
China
appetite returns. High return, high growth.
0%
Hong Kong India
- Malaysia: Stimulus cushioned macro. NIM & credit
(10%)
Philippines
stable. Defensive. Prefer CIMB, Least MAY.
Indonesia
(20%)
- Hong Kong: Low HIBOR and China liquidity mitigates Taiwan
(30%)
weak growth and credit. Prefer DSF, Least BEA 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
ABSOLUTE PERFORMANCE
▼ Australia: More positive on the outlook, but Source: Factset, Morgan Stanley Research
valuations imply optimistic expectations. Prefer NAB,
Least CBA.
▼ Taiwan: Better NIM & credit discounted. Any cross-
trait activity is unlikely to deliver much fundamental
change. Prefer Fubon, Least First Financial. Morgan Stanley does and seeks to do business with
companies covered in Morgan Stanley Research. As
▼ Singapore: We see no value, no growth, no domestic a result, investors should be aware that the firm may
story. Prefer UOB, Least DBS. have a conflict of interest that could affect the
objectivity of Morgan Stanley Research. Investors
Indian SoE banks remain the top pick with Thailand should consider Morgan Stanley Research as only a
& Indonesia: we continue to prefer strong domestic single factor in making their investment decision.
stories with high growth and high returns underpinned For analyst certification and other important
by real revenue growth. Higher interest rates will disclosures, refer to the Disclosure Section,
generally be a positive for earnings but are unlikely to located at the end of this report.
manifest until the second half of 2010 at the earliest. += Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be
associated persons of the member and may not be subject to NASD/NYSE restrictions on
Moreover, rate hikes are likely to be small and managed. communications with a subject company, public appearances and trading securities held by a
research analyst account.

2. MORGAN STANLEY RESEARCH
December 14, 2009
Asia Pacific Banks
Share 52 week Target Avg daily Mkt cap EPS P/E EPS BVPS P/B ROE RoA DPS Div yield Mkt cap/
Rating price high low price trade US$m US$bn 2009E 2010E 2009E 2010E 3 yr cagr 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E deposits
Regional Banks
HSBC E/W 90.15 98 30.56 87.00 320.1 202 0.49 0.59 23.6 19.5 (0%) 6.86 7.31 1.7 1.6 9% 9% 0.3% 0.4% 2.65 2.78 3.1% 16.9%
Standard Chartered E/W 188.20 218.80 66.10 194.00 19.0 46 1.77 1.77 13.6 13.6 2% 11.81 12.70 2.0 1.9 17% 16% 0.8% 0.8% 5.29 5.29 2.8% 18.4%
Australia
ANZ Bank n.a 21.30 25.25 11.83 ++ 161.0 51 1.48 1.42 14.4 15.0 6% 12.13 12.98 1.8 1.6 13% 11% 0.7% 0.7% 1.02 1.02 4.8% 24.5%
Bank of Queensland U/W 11.03 13.49 6.23 11.10 5.8 2 0.99 0.96 11.1 11.5 6% 8.51 9.81 1.3 1.1 12% 11% 0.6% 0.6% 0.52 0.6 4.7% 10.4%
Commonwealth Bk Aust U/W 52.50 56.24 24.03 48.70 188.8 80 2.92 3.33 18.0 15.8 3% 19.06 20.28 2.8 2.6 17% 17% 0.7% 0.8% 2.28 2.62 4.3% 29.7%
Nat Aust Bank E/W 28.21 32.37 15.85 29.50 172.1 56 1.97 1.81 14.3 15.6 2% 15.38 15.77 1.8 1.8 13% 12% 0.6% 0.6% 1.46 1.46 5.2% 23.8%
Westpac Banking E/W 23.56 27.57 14.40 24.30 170.8 66 1.58 1.53 14.9 15.4 (0%) 11.45 11.74 2.1 2.0 24% 13% 0.8% 0.8% 1.16 1.22 4.9% 27.3%
Bendigo Bank E/W 9.00 12.16 5.73 7.80 8.0 3 0.56 0.67 16.1 13.4 (3%) 9.49 9.39 0.9 1.0 5% 8% 0.3% 0.5% 0.43 0.49 4.8% 8.7%
Macquarie O/W 47.89 58.80 15.00 63.80 66.9 15 3.09 2.99 15.5 16.0 (8%) 30.06 31.14 1.6 1.5 10% 12% 0.6% 0.7% 1.85 1.74 3.9% 75.6%
Total/ Country average 773.5 273 15.4 15.5 2% 2.1 2.0 16% 13% 0.7% 0.7% 4.7% 30.4%
Hong Kong
Hang Seng Bank E/W 113.70 127.00 67.00 120.00 41.1 28 7.04 7.31 16.2 15.6 5% 26.04 26.38 4.4 4.3 29% 28% 1.7% 1.7% 6.50 7.00 5.7% 35.0%
Bank of East Asia U/W 32.85 36.50 11.09 22.00 23.6 7 1.12 1.20 29.2 27.3 319% 17.97 18.58 1.8 1.8 6% 7% 0.5% 0.5% 0.55 0.59 1.7% 14.8%
Dah Sing Financial O/W 44.00 50.00 15.00 55.00 1.6 1 2.67 4.14 16.5 10.6 135% 42.34 46.25 1.0 1.0 7% 10% 0.6% 0.8% 0.67 1.45 1.5% 12.0%
Wing Hang Bank E/W 79.70 86.50 32.90 75.00 3.8 3 4.16 4.80 19.1 16.6 15% 38.39 40.81 2.1 2.0 12% 13% 0.9% 0.9% 2.08 2.40 2.6% 18.3%
BOC Hong Kong E/W 17.72 19.88 6.30 17.00 47.2 24 1.23 1.60 14.4 11.1 85% 8.81 9.38 2.0 1.9 16% 18% 1.1% 1.3% 0.80 1.04 4.5% 18.7%
ICBC (Asia) O/W 17.54 20.20 6.51 23.00 2.7 3 1.38 1.49 12.7 11.7 37% 12.01 12.76 1.5 1.4 13% 12% 0.9% 0.8% 0.69 0.75 3.9% 11.4%
Country average 120.1 67 15.3 13.2 48% 3.0 2.9 21% 22% 1.3% 1.4% 4.8% 25.3%
Singapore
DBS U/W 14.78 15.32 6.42 12.50 74.1 24 0.87 0.91 16.9 16.2 4% 9.38 9.72 1.6 1.5 12% 10% 0.8% 0.8% 0.56 0.58 3.8% 18.1%
OCBC U/W 8.65 8.74 3.95 7.20 34.8 19 0.58 0.63 15.0 13.7 9% 5.08 5.43 1.7 1.6 13% 12% 1.0% 1.0% 0.28 0.28 3.2% 25.5%
UOB O/W 19.80 20.08 8.07 21.00 50.5 21 1.26 1.55 15.7 12.8 11% 10.64 11.59 1.9 1.7 14% 15% 1.0% 1.2% 0.60 0.65 3.0% 24.5%
Country average 159.4 65 16.1 14.6 7% 1.7 1.6 13% 12% 0.9% 1.0% 3.4% 21.8%
China
Bk of China E/W 4.28 4.98 1.82 4.49 210.2 140 0.31 0.36 12.3 10.4 19% 2.01 2.22 1.9 1.7 17% 18% 1.0% 1.0% 0.15 0.18 4.0% 14.4%
Bank of Communications E/W 9.14 10.58 4.36 10.14 56.9 58 0.61 0.76 13.2 10.6 16% 3.47 4.02 2.3 2.0 20% 22% 1.0% 1.0% 0.21 0.25 2.5% 16.3%
China CITIC E/W 6.77 6.98 2.51 6.06 30.5 34 0.38 0.44 15.6 13.5 17% 2.65 3.01 2.2 2.0 16% 17% 1.1% 1.0% 0.09 0.11 1.5% 17.3%
China Construction Bk O/W 6.84 7.46 3.62 8.02 267.7 198 0.46 0.56 13.1 10.8 18% 2.38 2.71 2.5 2.2 23% 23% 1.3% 1.3% 0.22 0.26 3.7% 17.2%
China Merchants Bk (HK) E/W 20.65 22.50 8.23 19.65 79.0 39 0.95 1.31 19.1 13.8 13% 5.04 6.10 3.6 3.0 23% 26% 1.0% 1.1% 0.25 0.33 1.4% 16.5%
ICBC O/W 6.45 7.07 2.99 7.11 250.2 278 0.39 0.46 14.6 12.3 17% 2.03 2.31 2.8 2.5 22% 23% 1.2% 1.2% 0.19 0.23 3.3% 19.3%
Shanghai Pudong Dev. Bk E/W 22.11 27.36 9.29 22.20 270.4 18 1.59 1.80 13.9 12.3 11% 7.68 9.33 2.9 2.4 30% 23% 0.8% 0.8% 0.17 0.19 0.8% 9.9%
Industrial Bank E/W 39.53 43.48 14.57 36.80 134.3 29 2.43 2.79 16.3 14.2 15% 11.75 13.99 3.4 2.8 25% 24% 1.0% 1.0% 0.48 0.55 1.2% 23.2%
Ningbo U/W 15.81 16.31 6.79 10.46 36.4 6 0.58 0.76 27.1 20.7 18% 3.90 4.45 4.0 3.6 17% 20% 1.2% 1.2% 0.22 0.29 1.4% 37.6%
Country average 1,335.6 801 14.1 11.7 17% 2.6 2.3 21% 22% 1.1% 1.1% 3.1% 17.6%
India
AXIS Bank E/W 1003.65 1063 279 930 11.7 8 50.57 56.98 19.8 17.6 27% 284.5 392.1 3.5 2.6 21% 21% 1.4% 1.4% 10.00 10.00 1.0% 30.7%
HDFC Bank E/W 1783.35 1836 774 1600 7.3 16 52.77 70.23 33.8 25.4 25% 353.9 466.1 5.0 3.8 20% 20% 1.4% 1.5% 10.00 11.00 0.6% 53.1%
ICICI Bank E/W 863.25 984 253 800 35.3 21 33.76 35.31 25.6 24.4 5% 444.9 467.9 1.9 1.8 8% 8% 1.0% 1.0% 12.36 12.36 1.4% 44.0%
Kotak Mahindra Bank U/W 800.85 850 208 370 4.9 6 18.87 27.94 42.4 28.7 4% 188.7 214.9 4.2 3.7 11% 15% 1.6% 2.2% 0.75 1.50 0.1% 200.3%
Yes Bank O/W 255.45 278 41 330 2.5 2 10.23 13.86 25.0 18.4 31% 54.7 68.6 4.7 3.7 23% 25% 1.5% 1.5% 0.00 0.00 0.0% 46.9%
- private banks 61.7 52 27.8 24.1 14% 3.1 2.6 14% 14% 1.2% 1.3% 1.1% 57.0%
BOB O/W 499.15 563 181 635 1.7 4 60.93 60.90 8.2 8.2 20% 351.2 401.6 1.4 1.2 20% 17% 1.1% 0.9% 8.97 8.97 1.8% 9.5%
BOI O/W 387.45 472 180 470 2.8 4 57.18 47.77 6.8 8.1 14% 224.1 262.5 1.7 1.5 34% 21% 1.5% 1.0% 9.35 9.36 2.4% 10.7%
Canara Bank E/W 401.25 437 144 400 1.0 4 50.55 43.21 7.9 9.3 6% 297.8 331.6 1.3 1.2 20% 15% 1.0% 0.7% 8.00 8.00 2.0% 8.8%
Corporation Bank O/W 438.30 480 156 545 0.2 1 62.24 65.05 7.0 6.7 13% 341.4 392.0 1.3 1.1 21% 19% 1.2% 1.0% 12.50 14.38 2.9% 8.5%
IDBI U/W 132.55 139 40 60 3.6 2 11.85 11.31 11.2 11.7 (6%) 102.7 111.1 1.3 1.2 13% 11% 0.6% 0.4% 2.50 2.50 1.9% 8.5%
OBC O/W 263.60 296 95 335 0.9 1 36.14 34.80 7.3 7.6 (1%) 295.5 321.8 0.9 0.8 16% 12% 0.9% 0.7% 8.54 8.54 3.2% 6.7%
Punjab National Bank O/W 917.10 943 286 1015 3.1 6 98.35 88.68 9.3 10.3 18% 464.7 530.4 2.0 1.7 25% 19% 1.4% 1.0% 20.00 20.00 2.2% 13.8%
SBI O/W 2265.75 2500 894 3000 27.5 31 175.99 174.33 12.9 13.0 10% 1098.4 1230.5 2.1 1.8 19% 16% 1.0% 0.8% 39.56 41.39 1.7% 14.3%
Union Bk O/W 264.30 291 115 324 1.0 3 34.18 30.85 7.7 8.6 12% 173.0 198.0 1.5 1.3 23% 18% 1.2% 0.9% 5.00 5.00 1.9% 9.6%
- state banks 41.9 57 11.5 11.8 9% 1.9 1.7 18% 16% 1.0% 0.8% 1.9% 12.9%
HDFC O/W 2693.15 2875 1116 3100 10.1 16 80.24 91.48 33.6 29.4 16% 461.9 510.5 5.8 5.3 19% 20% 2.6% 2.5% 30.00 34.00 1.1% 395.4%
IDFC O/W 164.25 180 44 180 7.9 5 5.79 7.71 28.4 21.3 16% 47.7 54.0 3.4 3.0 13% 16% 2.6% 3.1% 1.40 1.40 0.9% 0.0%
- NBFI's 18.0 21 31.3 25.9 16% 4.8 4.3 17% 18% 2.6% 2.8% 1.0% 222.9%
Indonesia
Danamon O/W 4400 5100 1568 4922 5.1 2 209 359 21.0 12.3 13% 1,820 2,090 2.4 2.1 13% 20% 1.2% 2.4% 78 174 1.8% 26.8%
Mandiri O/W 4675 5300 1680 5194 11.2 10 337 428 13.9 10.9 25% 1,662 1,972 2.8 2.4 23% 26% 1.9% 2.2% 118 150 2.5% 30.5%
BRI O/W 7850 8700 3550 9238 11.6 10 575 699 13.7 11.2 20% 2,254 2,732 3.5 2.9 31% 31% 2.6% 2.7% 201 245 2.6% 40.4%
BCA E/W 4825 5500 2275 4583 6.0 13 279 325 17.3 14.8 17% 1,131 1,303 4.3 3.7 29% 29% 2.6% 2.8% 153 157 3.2% 50.3%
Country average 33.9 35 15.5 11.9 20% 3.2 2.7 25% 27% 2.2% 2.5% 2.5% 36.8%
Thailand
Bangkok Bank O/W 111.50 135.00 65.00 130.00 6.4 6 10.62 13.31 10.5 8.4 18% 99.6 109.6 1.1 1.0 12% 13% 1.1% 1.3% 3.00 3.25 2.7% 15.1%
Kasikornbank E/W 84.00 91.00 40.25 86.00 18.8 6 6.56 8.60 12.8 9.8 19% 51.7 58.0 1.6 1.4 14% 17% 1.2% 1.6% 2.25 2.50 2.7% 21.3%
Krung Thai Bank E/W 9.95 10.30 3.50 8.50 7.0 3 0.97 1.02 10.2 9.7 15% 9.4 10.0 1.1 1.0 10% 11% 0.8% 0.7% 0.44 0.45 4.4% 9.3%
Siam Comm'l Bank O/W 85.75 91.75 44.50 90.00 19.0 9 6.55 8.14 13.1 10.5 21% 41.6 47.0 2.1 1.8 19% 20% 1.7% 1.9% 2.75 2.75 3.2% 28.4%
TMB O/W 1.12 1.37 0.43 1.20 7.1 1 0.13 0.19 8.7 5.8 226% 1.2 1.4 0.9 0.8 12% 16% 0.8% 1.1% 0.00 0.00 0.0% 9.4%
Country average 58.3 26 11.8 9.4 17% 1.6 1.4 15% 16% 1.3% 1.5% 2.7% 20.0%
Malaysia
CIMB Group E/W 12.84 13.48 5.75 12.36 16.8 14 0.72 0.82 17.8 15.6 11% 5.46 6.03 2.3 2.1 15% 15% 1.2% 1.3% 0.30 0.35 2.3% 27.7%
Hong Leong Bank U/W 8.15 8.40 4.94 4.50 1.5 4 0.63 0.37 12.9 21.7 (6%) 3.63 3.77 2.2 2.2 18% 9% 1.2% 0.7% 0.15 0.28 1.8% 19.1%
Maybank U/W 6.76 7.08 3.50 5.94 10.6 14 0.42 0.40 16.0 17.1 (13%) 3.52 3.78 1.9 1.8 13% 11% 0.8% 0.9% 0.07 0.16 1.1% 22.5%
Public Bank O/W 10.98 11.04 6.85 13.60 6.4 11 0.72 0.81 15.4 13.5 5% 3.13 3.51 3.5 3.1 26% 25% 1.2% 1.3% 0.55 0.55 5.0% 21.3%
Country average 35.2 43 16.6 15.9 2% 2.4 2.2 16% 16% 1.1% 1.1% 0.27 0.33 2.4% 24.6%
Philippines
MBT O/W 44.50 47.50 19.50 58.00 1.7 2 2.92 3.83 15.2 11.6 32% 34.43 37.25 1.3 1.2 9% 11% 0.7% 0.8% 0.80 1.20 1.8% 13.1%
BPI O/W 47.50 49.00 31.00 57.00 1.8 3 2.97 3.40 16.0 14.0 29% 20.75 22.49 2.3 2.1 15% 16% 1.4% 1.4% 1.80 1.90 3.8% 25.9%
BDO E/W 38.50 41.00 19.75 36.00 1.2 2 1.61 2.00 23.9 19.3 57% 23.95 25.55 1.6 1.5 7% 8% 0.4% 0.4% 0.40 0.50 1.0% 11.3%
Country average 4.7 7 17.7 14.5 37% 1.8 1.6 11% 12% 0.9% 0.9% 2.4% 17.6%
Pakistan
MCB n.a 206.11 244.00 68.18 ++ 6.3 2 21.72 22.79 9.5 9.0 0% 98.88 111.68 2.1 1.8 24% 23% 3.0% 2.9% 10.00 10.00 4.9% 32.2%
UBL O/W 56.80 66.50 25.38 125.00 1.7 1 9.22 10.54 6.2 5.4 20% 51.35 60.39 1.1 0.9 21% 21% 1.5% 1.6% 1.50 1.75 2.6% 10.1%
Country average 8.0 2 8.8 8.3 5% 1.9 1.7 23% 23% 2.7% 2.6% 4.4% 27.5%
Korea
Hana Financial E/W 35,650 41,750 16,100 40,000 59.5 6 1,300 3,980 27.4 9.0 30% 44,363 48,332 0.8 0.7 3% 9% 0.2% 0.5% 0 253 0.0% 7.7%
Kookmin Financial O/W 61,700 64,100 25,438 73,000 101.9 18 2,583 6,043 23.9 10.2 10% 51,888 57,597 1.2 1.1 6% 12% 0.3% 0.7% 400 600 0.6% 11.9%
KEB O/W 14,700 15,450 5,000 16,000 34.7 8 1,217 1,331 12.1 11.0 10% 11,979 13,190 1.2 1.1 12% 11% 0.8% 0.8% 200 425 1.4% 17.4%
Shinhan Financial O/W 45,650 49,950 20,400 53,000 100.0 19 3,140 4,504 14.5 10.1 5% 32,629 37,762 1.4 1.2 11% 14% 0.6% 0.8% 250 500 0.5% 14.5%
Busan Bank O/W 13,900 14,550 4,840 16,500 14.4 2 1,423 1,637 9.8 8.5 0% 11,119 12,559 1.3 1.1 15% 15% 0.9% 0.9% 211 200 1.5% 14.1%
Daegu Bank E/W 17,000 18,400 5,360 16,000 8.9 2 1,437 1,675 11.8 10.1 1% 13,514 14,940 1.3 1.1 12% 12% 0.7% 0.7% 250 350 1.5% 12.4%
IBK O/W 14,000 15,700 5,300 18,000 34.7 7 1,095 1,833 12.8 7.6 12% 14,568 16,444 1.0 0.9 9% 13% 0.4% 0.7% 0 100 0.0% 16.0%
Woori Finance E/W 15,050 17,200 5,550 14,500 79.9 10 1,234 1,593 12.2 9.4 54% 15,723 17,452 1.0 0.9 8% 10% 0.3% 0.4% 150 250 1.0% 6.7%
Country average 433.9 74 17.5 9.7 19% 1.1 1.0 8% 12% 0.4% 0.7% 0.7% 11.8%
Taiwan
Chang Hwa Bank E/W 15.00 16.70 9.46 14.90 10.7 3 0.74 0.71 20.4 21.2 4% 13.11 13.55 1.1 1.1 6% 5% 0.3% 0.3% 0.27 0.35 1.8% 7.8%
Chinatrust Financial E/W 19.50 22.68 9.30 21.80 44.3 6 1.30 1.24 15.0 15.7 60% 13.51 14.71 1.4 1.3 11% 9% 0.7% 0.6% 0.04 0.29 0.2% 13.8%
Fubon Financial E/W 37.20 40.45 16.60 40.10 34.3 9 6.39 2.21 5.8 16.8 NM 25.13 24.72 1.5 1.5 36% 9% 2.6% 0.9% 2.62 1.55 7.1% 28.4%
Mega Holdings E/W 18.30 21.60 8.60 20.90 14.8 6 1.26 1.21 14.5 15.2 412% 17.31 17.63 1.1 1.0 8% 7% 0.5% 0.5% 0.89 0.84 4.8% 14.1%
Taishin n.a 12.10 14.80 4.30 ++ 19.9 3 1.76 0.49 6.9 24.8 NM 10.43 10.75 1.2 1.1 20% 3% 1.1% 0.2% 0.00 0.00 0.0% 13.4%
Yuanta E/W 22.20 26.00 11.55 25.30 29.6 6 0.92 1.19 24.0 18.6 135% 14.06 14.46 1.6 1.5 7% 8% 1.5% 1.9% 0.79 1.02 3.6% 58.8%
E.Sun Financial E/W 13.00 15.00 6.89 13.60 5.6 2 0.64 0.74 20.4 17.7 50% 13.42 13.75 1.0 0.9 5% 5% 0.3% 0.3% 0.32 0.50 2.5% 6.8%
First Financial E/W 19.20 21.85 11.90 20.80 26.9 4 0.96 1.08 20.1 17.7 6% 16.19 16.60 1.2 1.2 6% 7% 0.3% 0.4% 0.58 0.65 3.0% 8.0%
SinoPac Holdings E/W 12.00 13.90 5.31 12.80 12.9 3 (0.00) 0.68 nm 17.6 NM 11.68 12.35 1.0 1.0 (0%) 6% (0.0%) 0.5% 0.00 0.47 0.0% 10.2%
Country average 199.1 40 14.1 17.9 NA 1.3 1.3 13% 7% 1.0% 0.7% 2.7% 21.5%
Source: Company data, Morgan Stanley Research. E = Morgan Stanley Research estimates. *India data is FY10e & FY11e (March 31 yr end). Stock prices as of December 11, 2009 close. NA = Not available.
2

3. MORGAN STANLEY RESEARCH
December 14, 2009
Asia Pacific Banks
Balance Sheet Profit & Loss
Loans/ Loans/ NPL ratio Provision/ NPLs Provision/ Loans Tier Tier Total NIM Non int inc/ total inc Cost/ Income Cost/ Avg assets Core profit'ity LLP/ RWA RoRWAs
deposits assets 2009E 2010E 2009E 2010E 2009E 2010E one two CAR 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E
Regional Banks
HSBC 82% 38% 4.6% 5.7% 94% 90% 4.3% 5.1% 10.3% NA 13% 2.62% 2.54% 46% 45% 50% 53% 1.4% 1.4% 1.4% 1.3% 2.29% 1.77% 0.7% 0.9%
Standard Chartered 82% 47% 3.2% 5.5% 53% 31% 1.7% 1.7% 11.1% NA 16% 2.17% 1.96% 49% 50% 52% 53% 1.7% 1.8% 1.6% 1.6% 1.00% 0.78% 1.8% 1.7%
Australia
ANZ Bank 153% 74% 1.6% 1.1% 81% 126% 1.3% 1.3% 10.6% 3.1% 14% 2.29% 2.33% 30% 35% 44% 47% 1.2% 1.5% 1.5% 1.7% 1.10% 1.19% 1.2% 1.4%
Bank of Queensland 117% 83% 0.4% 0.4% 44% 55% 0.2% 0.2% 8.9% 2.7% 3% 1.56% 1.54% 24% 22% 50% 43% 1.0% 0.8% 1.0% 1.1% 0.39% 0.51% 1.2% 1.2%
Commonwealth Bk Aust 166% 79% 0.9% 1.0% 118% 104% 1.0% 1.0% 8.1% 2.3% 10% 2.12% 2.09% 39% 40% 46% 45% 1.3% 1.4% 1.5% 1.6% 1.25% 0.95% 1.8% 1.8%
Nat Aust Bank 158% 62% 1.4% 1.7% 80% 75% 1.1% 1.3% 9.0% 2.5% 11% 2.16% 2.21% 29% 29% 45% 44% 1.1% 1.2% 1.4% 1.5% 1.10% 1.17% 1.1% 1.1%
Westpac Banking 175% 79% 0.8% 0.8% 126% 132% 1.0% 1.0% 8.1% 2.7% 11% 2.33% 2.33% 30% 28% 40% 41% 1.1% 1.2% 1.7% 1.7% 1.24% 1.07% 1.7% 1.7%
Bendigo Bank 122% 83% 0.6% 0.6% 86% 80% 0.5% 0.5% 7.4% 3.5% 11% 1.40% 1.54% 33% 32% 65% 59% 1.3% 1.3% 0.7% 0.9% 0.38% 0.31% 0.8% 0.9%
Macquarie 208% 30% 1.2% 2.2% 119% 41% 1.4% 0.9% NA NA NA 0.91% 1.02% 86% 88% 74% 77% 3.2% 3.8% 1.1% 1.1% NA NA NA NA
Country average 166% 70% 1.1% 1.2% 103% 102% 1.1% 1.1% 8.1% 2.4% 10% 2.02% 2.03% 37% 37% 47% 47% 1.4% 1.5% 1.5% 1.6% 1.06% 0.98% 1.3% 1.4%
Hong Kong
Hang Seng Bank 56% 43% 1.5% 2.0% 42% 32% 0.6% 0.6% 12.4% 3.5% 16% 1.91% 1.86% 33% 33% 30% 30% 0.8% 0.8% 1.9% 1.9% 0.46% 0.51% 5.2% 5.6%
Bank of East Asia 71% 61% 1.5% 2.5% 24% 13% 0.4% 0.3% 8.8% 6.2% 15% 1.57% 1.64% 33% 31% 65% 65% 1.5% 1.5% 0.8% 0.8% 0.35% 0.43% 0.7% 0.7%
Dah Sing Financial 80% 58% 3.0% 3.5% 30% 18% 0.9% 0.6% 8.9% 6.2% 15% 1.90% 1.89% 23% 27% 60% 47% 1.4% 1.2% 1.0% 1.3% 0.65% 0.55% 0.9% 1.3%
Wing Hang Bank 63% 55% 1.5% 2.0% 22% 21% 0.3% 0.4% 9.3% 7.0% 16% 1.51% 1.52% 24% 26% 47% 44% 1.0% 1.0% 1.1% 1.2% 0.25% 0.30% 1.5% 1.7%
BOC Hong Kong 51% 41% 0.6% 0.7% 71% 63% 0.4% 0.5% 11.7% 4.9% 17% 1.55% 1.50% 35% 33% 31% 32% 0.7% 0.7% 1.6% 1.5% 0.53% -0.34% 2.1% 2.6%
ICBC (Asia) 72% 62% 1.4% 1.4% 50% 46% 0.7% 0.6% 8.0% 3.1% 11% 1.44% 1.39% 26% 23% 33% 34% 0.6% 0.6% 1.3% 1.2% 0.38% 0.30% 1.3% 1.3%
Country average 55% 43% 1.1% 1.4% 56% 47% 0.5% 0.6% 11.8% 4.4% 16% 1.70% 1.66% 33% 32% 31% 32% 0.8% 0.7% 1.7% 1.6% 0.48% 0.08% 3.4% 3.8%
Singapore
DBS 70% 49% 3.7% 4.3% 52% 58% 1.9% 2.5% 13.0% 3.6% 17% 2.03% 2.06% 33% 28% 39% 43% 1.0% 1.0% 1.5% 1.4% 0.77% 0.51% 1.1% 1.2%
OCBC 75% 43% 2.5% 2.6% 100% 132% 2.5% 3.5% 15.5% 0.6% 16% 2.27% 2.18% 42% 43% 41% 37% 1.1% 1.0% 1.6% 1.7% 0.39% 0.48% 1.9% 2.0%
UOB 84% 56% 3.0% 3.3% 95% 86% 2.9% 2.9% 12.9% 4.7% 18% 2.34% 2.26% 33% 30% 37% 39% 1.1% 1.1% 1.9% 1.7% 1.10% 0.48% 1.8% 2.1%
Country average 76% 50% 3.2% 3.6% 76% 83% 2.3% 2.8% 13.5% 3.3% 17% 2.18% 2.15% 35% 32% 39% 41% 1.1% 1.1% 1.7% 1.6% 0.79% 0.49% 1.5% 1.6%
China
Bk of China 71% 55% 1.6% 1.6% 152% 169% 2.5% 2.6% 9.3% 2.2% 12% 2.11% 2.18% 31% 28% 46% 43% 1.3% 1.3% 1.6% 1.7% 0.35% 0.55% 1.6% 1.5%
Bank of Communications 75% 54% 1.5% 1.5% 140% 150% 2.0% 2.2% 8.1% 4.2% 12% 2.30% 2.39% 17% 15% 40% 37% 1.0% 1.0% 1.6% 1.7% 0.64% 0.71% 1.9% 1.8%
China CITIC 79% 65% 1.1% 1.2% 131% 130% 1.5% 1.6% 8.8% 7.7% 10% 2.55% 2.47% 11% 11% 42% 41% 1.2% 1.2% 1.6% 1.7% 0.33% 0.52% 1.6% 1.4%
China Construction Bk 61% 50% 1.5% 1.4% 166% 174% 2.5% 2.5% 9.9% 2.0% 12% 2.42% 2.48% 21% 19% 39% 36% 1.2% 1.1% 1.9% 2.0% 0.40% 0.52% 2.3% 2.3%
China Merchants Bk (HK) 74% 58% 0.8% 0.7% 254% 304% 2.1% 2.1% 6.6% 3.5% 10% 2.26% 2.49% 22% 17% 49% 44% 1.4% 1.4% 1.5% 1.7% 0.36% 0.51% 1.7% 1.9%
ICBC 57% 47% 1.6% 1.5% 155% 167% 2.5% 2.5% 10.7% 3.1% 14% 2.28% 2.36% 21% 19% 38% 36% 1.1% 1.0% 1.8% 1.8% 0.38% 0.51% 2.5% 2.5%
Shanghai Pudong Dev. Bk 74% 55% 1.0% 1.0% 210% 203% 2.0% 2.1% 6.7% 3.0% 10% 2.22% 2.30% 9% 8% 45% 41% 1.1% 1.0% 1.3% 1.5% 0.45% 0.66% 1.5% 1.5%
Industrial Bank 82% 53% 0.6% 0.7% 237% 223% 1.5% 1.6% 7.9% 2.6% 10% 2.15% 2.20% 13% 12% 45% 41% 1.2% 1.1% 1.4% 1.5% 0.30% 0.61% 2.0% 1.7%
Ningbo 77% 56% 0.8% 0.9% 165% 168% 1.3% 1.6% 10.1% 0.9% 11% 2.98% 3.10% 13% 11% 47% 45% 1.5% 1.5% 1.7% 1.8% 0.59% 0.61% 1.9% 1.7%
Country average 65% 52% 1.5% 1.4% 164% 176% 2.4% 2.4% 9.6% 2.9% 12% 2.29% 2.37% 22% 19% 41% 38% 1.2% 1.1% 1.7% 1.8% 0.40% 0.54% 2.1% 2.1%
India
AXIS Bank 70% 56% 1.1% 1.4% 64% 72% 0.7% 1.0% 9.3% 4.4% 14% 2.96% 3.10% 44% 44% 46% 44% 2.3% 2.4% 2.8% 3.0% 0.81% 1.27% 1.8% 1.8%
HDFC Bank 70% 55% 2.0% 2.2% 68% 78% 1.4% 1.7% 10.6% 5.1% 16% 4.90% 4.89% 31% 30% 53% 49% 3.6% 3.3% 3.2% 3.4% 1.46% 1.69% 1.9% 2.1%
ICICI Bank 102% 59% 4.3% 5.6% 53% 59% 2.3% 3.3% 11.8% 3.7% 16% 2.30% 2.45% 48% 47% 44% 40% 1.8% 1.7% 2.3% 2.6% 1.08% 1.27% 1.1% 1.2%
Kotak Mahindra Bank 165% 57% 3.2% 2.3% 46% 54% 1.5% 1.2% 16.1% 3.9% 20% 6.32% 5.98% 55% 62% 74% 67% 9.8% 9.8% 3.3% 4.7% 1.59% 1.65% 3.1% 4.2%
Yes Bank 77% 54% 0.7% 0.7% 52% 75% 0.4% 0.5% 9.5% 7.1% 17% 2.72% 3.04% 46% 41% 44% 41% 2.1% 2.0% 2.7% 2.9% 0.41% 0.67% 1.8% 1.9%
- private banks 99% 60% 3.2% 4.0% 58% 67% 1.7% 2.4% 11.8% 4.4% 16% 3.18% 3.29% 47% 47% 50% 46% 2.9% 2.8% 2.7% 3.1% 1.10% 1.35% 1.6% 1.7%
BOB 76% 64% 1.3% 1.5% 76% 83% 1.0% 1.3% 8.5% 5.6% 14% 2.60% 2.33% 35% 30% 53% 45% 2.1% 1.5% 1.8% 1.8% 0.28% 0.76% 1.8% 1.6%
BOI 76% 64% 1.7% 3.0% 75% 65% 1.3% 1.9% 8.9% 4.1% 13% 2.82% 2.53% 36% 32% 44% 43% 1.9% 1.6% 2.4% 2.1% 0.49% 1.01% 2.4% 1.7%
Canara Bank 74% 63% 1.6% 2.9% 30% 49% 0.5% 1.4% 8.0% 6.1% 14% 2.43% 2.30% 33% 33% 51% 47% 1.8% 1.5% 1.7% 1.8% 0.75% 1.48% 1.7% 1.3%
Corporation Bank 66% 56% 1.1% 1.4% 75% 84% 0.9% 1.2% 8.9% 4.7% 14% 2.28% 2.13% 40% 37% 44% 41% 1.6% 1.3% 2.0% 1.9% 0.43% 0.78% 2.1% 1.9%
IDBI 92% 61% 1.4% 1.9% 34% 51% 0.5% 1.0% 6.8% 4.8% 12% 0.73% 0.98% 66% 62% 58% 45% 1.1% 0.9% 0.8% 1.1% 0.11% 0.77% 0.7% 0.5%
OBC 70% 61% 1.5% 2.0% 58% 69% 0.9% 1.4% 9.1% 3.9% 13% 2.02% 1.80% 35% 36% 57% 46% 1.7% 1.2% 1.3% 1.5% 0.25% 0.85% 1.3% 1.1%
Punjab National Bank 75% 64% 1.8% 2.4% 90% 87% 1.6% 2.1% 9.0% 5.1% 14% 3.26% 3.08% 29% 30% 44% 46% 2.0% 2.0% 2.5% 2.3% 0.55% 1.09% 2.1% 1.7%
SBI 74% 58% 2.5% 2.9% 41% 49% 1.0% 1.4% 9.4% 4.9% 14% 2.52% 2.27% 36% 37% 53% 50% 2.0% 1.7% 1.8% 1.7% 0.61% 1.26% 2.1% 1.8%
Union Bk 71% 61% 2.0% 2.6% 83% 85% 1.6% 2.2% 8.2% 5.1% 13% 2.79% 2.37% 28% 34% 45% 45% 1.7% 1.5% 2.0% 1.9% 0.62% 1.20% 1.9% 1.5%
- state banks 76% 60% 2.2% 2.7% 49% 56% 1.0% 1.5% 9.0% 4.9% 14% 2.43% 2.23% 38% 38% 52% 48% 1.9% 1.6% 1.8% 1.7% 0.54% 1.16% 1.9% 1.7%
HDFC 443% 88% 0.8% 0.8% 89% 91% 0.7% 0.8% 13.2% 1.9% 15% 3.96% 3.80% 10% 14% 9% 9% 0.4% 0.3% 3.7% 3.6% 0.07% 0.07% 3.0% 3.0%
IDFC 0% 70% 0.4% 0.6% 476% 328% 1.8% 2.1% 20.0% 3.7% 24% 3.01% 3.44% 51% 49% 23% 23% 1.2% 1.4% 4.1% 4.6% 0.61% 0.45% 2.9% 3.2%
- NBFI's 250% 81% 0.6% 0.8% 257% 194% 1.2% 1.4% 16.2% 2.7% 19% 3.55% 3.64% 28% 29% 15% 15% 0.7% 0.8% 3.9% 4.0% 0.30% 0.24% 3.0% 3.1%
Indonesia
Danamon 89% 61% 3.3% 3.1% 92% 110% 3.0% 3.4% 18.7% 1.4% 20% 9.22% 10.03% 15% 15% 61% 55% 5.6% 5.5% 3.5% 4.5% 2.54% 1.80% 1.9% 3.6%
Mandiri 65% 53% 5.5% 5.2% 118% 122% 6.5% 6.3% 12.3% 2.5% 15% 4.67% 4.96% 28% 27% 46% 45% 2.8% 2.8% 3.3% 3.5% 1.39% 1.19% 3.8% 4.1%
BRI 88% 71% 4.1% 4.3% 174% 167% 7.1% 7.1% 11.7% 0.8% 12% 8.46% 8.37% 16% 14% 45% 47% 4.4% 4.5% 5.4% 5.0% 3.97% 2.48% 4.4% 4.5%
BCA 51% 44% 1.1% 1.1% 340% 295% 3.8% 3.4% 15.9% 0.5% 16% 5.43% 5.14% 27% 27% 42% 43% 3.1% 3.0% 4.3% 3.9% 1.83% 0.62% 5.0% 5.2%
Country average 74% 59% 3.9% 3.8% 173% 166% 5.7% 5.6% 13.7% 1.4% 15% 6.79% 6.93% 22% 21% 47% 47% 3.8% 3.8% 4.2% 4.2% 2.52% 1.62% 3.9% 4.3%
Thailand
Bangkok Bank 84% 63% 5.2% 4.9% 109% 113% 5.6% 5.6% 12.4% 3.0% 15% 2.97% 3.13% 34% 33% 52% 49% 2.3% 2.2% 2.1% 2.3% 0.63% 0.57% 1.6% 1.9%
Kasikornbank 98% 74% 4.0% 3.8% 83% 86% 3.3% 3.3% 10.5% 5.0% 15% 3.84% 4.17% 37% 38% 56% 55% 3.1% 3.5% 2.4% 2.8% 0.96% 0.82% 1.6% 2.0%
Krung Thai Bank 97% 76% 8.9% 9.4% 41% 44% 3.6% 4.1% 9.4% 5.4% 15% 3.21% 3.28% 22% 22% 57% 55% 2.3% 2.2% 1.7% 1.8% 1.03% 1.30% 1.0% 1.0%
Siam Comm'l Bank 92% 69% 5.0% 4.7% 91% 98% 4.6% 4.6% 11.2% 4.0% 15% 3.60% 3.71% 40% 41% 49% 46% 2.7% 2.7% 2.8% 3.1% 0.63% 0.67% 2.4% 2.7%
TMB 86% 63% 12.7% 9.7% 83% 103% 10.5% 10.1% 11.3% 4.0% 15% 2.42% 2.62% 34% 35% 65% 59% 2.3% 2.3% 1.3% 1.6% 0.69% 0.70% 1.3% 2.0%
Country average 93% 70% 6.1% 5.6% 84% 90% 4.9% 4.9% 10.9% 4.4% 15% 3.42% 3.61% 35% 36% 55% 52% 2.7% 2.8% 2.3% 2.6% 0.79% 0.79% 1.8% 2.1%
Malaysia
CIMB Group 81% 60% 5.0% 5.0% 86% 84% 4.3% 4.2% 11.0% 4.4% 14% 3.10% 3.15% 29% 29% 58% 58% 2.4% 2.4% 1.7% 1.8% 0.93% 0.72% 2.3% 2.3%
Hong Leong Bank 53% 45% 2.2% 2.7% 100% 121% 2.3% 3.2% 15.9% 3.5% 19% 2.02% 1.81% 25% 24% 42% 51% 1.1% 1.2% 1.5% 1.1% 0.52% 0.99% 2.5% 1.5%
Maybank 91% 62% 3.5% 3.2% 113% 116% 3.9% 3.8% 11.0% 5.5% 16% 2.71% 2.68% 30% 30% 51% 53% 1.8% 1.8% 1.7% 1.6% 0.65% 0.67% 1.1% 1.2%
Public Bank 75% 64% 0.9% 0.9% 191% 211% 1.7% 1.8% 8.4% 5.2% 14% 2.35% 2.32% 22% 23% 35% 34% 1.0% 1.0% 1.9% 1.9% 0.59% 0.48% 2.1% 2.1%
Country average 81% 61% 3.7% 3.6% 114% 118% 3.6% 3.6% 10.7% 4.8% 15% 2.80% 2.80% 28% 28% 51% 52% 1.9% 1.9% 1.7% 1.7% 0.77% 0.67% 1.9% 1.9%
Philippines
MBT 64% 46% 4.8% 5.0% 99% 112% 4.8% 5.6% 9.6% 4.0% 14% 4.18% 4.28% 37% 39% 66% 66% 3.2% 3.2% 1.7% 1.6% 1.03% 0.94% 1.0% 1.2%
BPI 59% 47% 4.2% 4.3% 71% 81% 3.0% 3.5% 12.3% 1.4% 14% 4.05% 4.19% 39% 38% 55% 54% 2.7% 2.6% 2.2% 2.2% 0.64% 0.67% 2.0% 2.4%
BDO 77% 57% 5.0% 6.5% 87% 78% 4.4% 5.1% 6.1% 4.0% 10% 3.81% 3.67% 39% 41% 72% 70% 3.3% 3.0% 1.3% 1.3% 1.13% 0.95% 0.6% 0.5%
Country average 65% 49% 4.6% 5.1% 85% 91% 4.0% 4.6% 9.7% 3.0% 13% 4.04% 4.09% 38% 39% 63% 62% 3.0% 2.9% 1.8% 1.8% 0.91% 0.84% 1.3% 1.5%
Pakistan
MCB 78% 61% 8.0% 7.0% 65% 88% 5.2% 6.2% 17.1% 3.0% 20% 7.85% 7.76% 16% 17% 29% 33% 2.3% 2.6% 5.5% 5.3% 1.58% 1.57% 4.1% 3.9%
UBL 76% 63% 5.5% 5.0% 114% 140% 6.3% 7.0% 8.2% 4.5% 13% 6.26% 6.19% 24% 26% 47% 46% 3.4% 3.4% 3.9% 4.1% 1.50% 1.57% 2.0% 2.1%
Country average 77% 62% 7.5% 6.6% 76% 99% 5.4% 6.4% 15.2% 3.3% 18% 7.51% 7.42% 17% 19% 33% 36% 2.5% 2.8% 5.2% 5.0% 1.56% 1.57% 3.6% 3.5%
Korea
Hana Financial 109% 64% 1.2% 1.2% 133% 127% 1.5% 1.5% 10.8% 3.7% 15% 1.82% 1.95% 31% 34% 69% 59% 1.6% 1.5% 0.7% 1.1% 0.85% 0.79% 0.3% 0.9%
Kookmin Financial 116% 75% 1.2% 1.2% 125% 131% 1.5% 1.6% 10.7% 3.2% 14% 2.50% 2.81% 23% 24% 64% 57% 1.9% 1.9% 1.1% 1.5% 1.32% 0.96% 0.6% 1.2%
KEB 113% 60% 1.1% 1.1% 151% 158% 1.7% 1.7% 11.7% 4.0% 16% 2.44% 2.78% 30% 23% 53% 52% 1.5% 1.5% 1.3% 1.4% 1.23% 0.76% 1.3% 1.4%
Shinhan Financial 111% 66% 1.2% 1.1% 179% 195% 2.1% 2.2% 11.8% 4.0% 16% 2.73% 2.93% 45% 42% 67% 66% 3.0% 3.0% 1.4% 1.6% 1.26% 1.06% 1.1% 1.7%
Busan Bank 114% 67% 1.2% 1.1% 127% 130% 1.6% 1.5% 10.3% 4.2% 15% 3.24% 3.29% 6% 5% 47% 45% 1.5% 1.4% 1.7% 1.7% 0.71% 0.63% 1.1% 1.2%
Daegu Bank 104% 65% 1.2% 1.3% 135% 145% 1.6% 1.8% 10.7% 3.3% 14% 3.21% 3.30% 10% 5% 52% 52% 1.6% 1.6% 1.5% 1.5% 0.75% 0.71% 0.9% 1.0%
IBK 228% 76% 1.3% 1.3% 138% 134% 1.8% 1.8% 8.5% 3.9% 12% 2.53% 2.64% 2% 2% 43% 41% 1.0% 1.0% 1.3% 1.5% 1.15% 0.90% 0.6% 0.9%
Woori Finance 111% 69% 1.7% 1.6% 99% 90% 1.6% 1.5% 10.1% 4.3% 14% 2.12% 2.28% 21% 18% 51% 52% 1.2% 1.3% 1.2% 1.2% 1.18% 1.03% 0.6% 0.7%
Country average 121% 69% 1.3% 1.3% 137% 140% 1.7% 1.7% 10.8% 3.8% 14% 2.43% 2.63% 27% 25% 60% 56% 1.9% 1.9% 1.2% 1.4% 1.16% 0.94% 0.8% 1.2%
Taiwan
Chang Hwa Bank 86% 70% 1.6% 1.7% 69% 64% 1.1% 1.1% 6.8% 2.6% 9% 0.94% 1.01% 34% 29% 59% 58% 0.8% 0.8% 0.5% 0.6% 0.00% 0.32% 0.5% 0.4%
Chinatrust Financial 70% 50% 0.9% 1.0% 123% 119% 1.1% 1.2% 10.8% 3.4% 15% 2.00% 2.18% 65% 55% 44% 53% 1.5% 1.5% 2.0% 1.4% 0.94% 1.02% 1.1% 1.1%
Fubon Financial 82% 41% 0.7% 0.9% 72% 75% 0.5% 0.6% 9.7% 1.8% 11% 1.07% 1.14% 84% 68% 21% 40% 0.9% 0.9% 3.3% 1.3% 0.43% 0.67% 6.9% 2.3%
Mega Holdings 89% 47% 1.4% 1.6% 85% 75% 1.2% 1.2% 9.6% 2.0% 12% 1.27% 1.30% 45% 42% 40% 40% 0.7% 0.7% 1.1% 1.0% 0.70% 0.82% 0.9% 0.9%
Taishin 84% 53% 1.0% 1.1% 228% 165% 2.4% 1.9% 9.5% 3.0% 13% 1.49% 1.64% 63% 35% 43% 56% 1.4% 1.1% 1.8% 0.9% 0.62% 0.68% 1.7% 0.3%
Yuanta 96% 59% 1.4% 1.3% 149% 157% 2.0% 2.0% 8.4% 1.9% 11% 1.67% 1.97% 71% 70% 55% 49% 2.2% 2.2% 1.8% 2.3% 0.33% 0.50% 3.1% 4.0%
E.Sun Financial 75% 57% 0.8% 0.8% 83% 87% 0.7% 0.7% 7.6% 4.1% 12% 0.96% 1.01% 41% 39% 65% 61% 1.0% 1.0% 0.5% 0.6% 0.37% 0.45% 0.5% 0.5%
First Financial 74% 59% 1.5% 1.5% 56% 55% 0.8% 0.8% 6.9% 3.5% 10% 0.96% 1.04% 37% 33% 58% 55% 0.8% 0.8% 0.6% 0.7% 0.31% 0.38% 0.6% 0.6%
SinoPac Holdings 78% 61% 1.2% 1.2% 72% 72% 0.9% 0.9% 8.9% 3.2% 12% 1.08% 1.27% 39% 43% 70% 56% 1.1% 1.1% 0.5% 0.9% 0.47% 0.56% (0.0%) 0.8%
Country average 81% 53% 1.1% 1.2% 109% 103% 1.2% 1.2% 9.1% 2.7% 12% 1.40% 1.54% 60% 51% 46% 50% 1.3% 1.2% 1.7% 1.2% 0.53% 0.66% 2.3% 1.5%
Source: Company data, Morgan Stanley Research. E = Morgan Stanley Research estimates. *India data is FY10e & FY11e (March 31 yr end NA = Not available.
3

4. MORGAN STANLEY RESEARCH
December 14, 2009
Asia Pacific Banks
Morgan Stanley is currently acting as financial advisor to 1) Funds managed by Morgan Stanley beneficially own
Industrial and Commercial Bank of China Limited ("ICBC ") in approximately 2.7% of a class of voting securities in E.Sun
relation to its proposed acquisition ("Transaction") of The Bank Financial Holding Company Limited (E.Sun) and another class
of East Asia (Canada) from The Bank of East Asia, Limited of securities with the entitlement to convert into voting
(“BEA”). securities in E.Sun
The proposed Transaction is subject to (i) regulatory approvals, This report was prepared solely upon information generally
(ii) completion of the sale of 75% interests in ICEA Finance available to the public. No representation is made that it is
Holdings Limited from ICBC to BEA and (iii) other customary accurate or complete. This report is not a recommendation or
closing conditions. This report and the information provided an offer to buy or sell the securities mentioned.
herein is not intended to (i) provide voting advice, (ii) serve as
an endorsement of the proposed transaction, or (iii) result in the Please refer to the notes at the end of the report.
procurement, withholding or revocation of a proxy or any other
action by a security holder. Funds managed by Morgan Stanley, together with other
investors, beneficially own approximately 4% of a class of
ICBC has agreed to pay fees to Morgan Stanley for its financial securities in Chinatrust Financial Holdings, and have the right
advice in connection with the Transaction. to appoint a nominee to the board of directors of Chinatrust
Financial Holdings.
Please refer to the notes at the end of the report.
The proposed transaction is subject to the consent of the
Morgan Stanley & Co. Limited, an affiliate of Morgan Stanley, is shareholders of Taishin FHC and KGI Securities, regulatory
acting as financial adviser to the Royal Bank of Scotland Group approvals and other customary closing conditions. This report
plc. in relation to its potential sale of selected businesses in and the information provided herein is not intended to (i)
Asia to Australia and New Zealand Banking Group Limited as provide voting advice, (ii) serve as an endorsement of the
announced on 4 August 2009 and to MCB Bank Limited as proposed transaction, or (iii) result in the procurement,
announced on 12 August 2009. withholding or revocation of a proxy or any other action by a
security holder.
The proposed transaction is to be conditional, among other
things, upon regulatory approvals. Taishin FHC has agreed to pay fees to Morgan Stanley for its
financial advice.
In accordance with its general policy, Morgan Stanley currently
expresses no rating or price target on Australia and New HDFC may be deemed to be controlled by or under common
Zealand Banking Group Limited and MCB Bank Limited. This control with Citigroup due to ownership, board or other
report and the information herein are not intended to serve as relationship, and Citigroup may be deemed to control Morgan
an endorsement or otherwise of the proposed transaction. Stanley Smith Barney LLC due to ownership, board
membership, or other relationships. Morgan Stanley Smith
This report was prepared solely upon information generally Barney LLC is a joint venture between Morgan Stanley and
available to the public. No representation is made that it is Citigroup.
accurate and complete. This report is not a recommendation
or an offer to buy or sell the securities mentioned. Please refer
to the notes at the end of this report.
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