Table of Contents
Summary: Reasons for an Underweight outlook and three
turning points 3
1. The basics of investing in bank stocks: earnings and
regulations 5
2. Stricter capital adequacy rules: Japanese banks to compete
with global peers 8
3. Valuation and risk factors: changes in relative P/E
15
4. Gap between desirability and feasibility: what the banks'
management can do 17
5. Valuation and earnings models
20
Mitsubishi UFJ 22
Sumitomo Mitsui FG 26
Mizuho FG 30
Resona HD 35
Sumitomo Trust 39
Chuo Mitsui 43