By How Much Have Foreign Bank Stocks Fallen?

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 |  Includes: AIBYY, ANZBY, BBD, BBV, BCH, BCS, BFR, BMA, BNPQY, BSAC, CIB, CRZBY, CS, DB, DBSDY, DNSKY, EBKDY, FBP, HBOOY, HDB, HSBC, HSNGY, IBN, ING, IRE, ITCB, ITU, KB, LYG, MFG, MTU, NABZY, NBGGY, RBS, SAN, SCGLY, SHG, SWDBY, UBB, UBS, UOVEY, WBK, WF
by: David Hunkar

A few a days ago I read an interesting post titled “50 SPX Stocks Down > 50%” in “The Big Picture” site.That article inspired this post where I analyze the performance of 43 foreign banks since the October 2007 peak.

I followed these rules for this study:
a. Take the highest intra-day high reached in October 2007 as the peak.
b. If a stock reached higher price before or after October ignore it.
c. Include bank stocks listed in the OTC market as sponsored ADRs.

I selected October 2007 because after hitting highs both the US and foreign markets started going down due to the unfolding credit crunch.Just like some of the US bank stocks, some of the foreign banks listed in the chart below are down more than 50%.

Foreign Bank Stock Returns Chart:
All-Foreign-Bank-Stock-Returns

Please click on the above thumbnail to enlarge chart.

Table:

S.No. Company Ticker Country Change (%) since Oct-07 Peak
1 Barclays Bank BCS UK -53.09%
2 HSBC Bank HBC UK -20.91%
3 Royal Bank of Scotland RBS UK -62.00%
4 Llyods Group plc LYG UK -53.03%
5 HBOS plc HBOOY UK -71.76%
6 Bank of Ireland IRE Ireland -59.09%
7 Allied Irish Banks AIB Ireland -51.60%
8 Deutsche Bank DB Germany -37.59%
9 Commerzbank CRZBY Germany -35.11%
10 UBS UBS Switzerland -62.27%
11 Credit Suisse Group CS Switzerland -33.63%
12 Banco Bilbao Vizcaya Argentaria BBV Spain -33.32%
13 Santander Central Hispano STD Spain -21.93%
14 The Netherlands ING Spain -31.94%
15 Kookmin Bank KB South Korea -41.56%
16 Shinhan Financial SHG South Korea -38.34%
17 Woori Finance WF South Korea -46.66%
18 Mitsubishi UFJ Financial MTU Japan -25.61%
19 Mizuho Financial MFG Japan -30.42%
20 ICICI Bank IBN India -55.37%
21 HDFC Bank HDB India -34.90%
22 National Bank of Greece NBG Greece -37.34%
23 Bancolombia S.A. CIB Colombia -14.62%
24 Banco de Chile BCH Chile -17.48%
25 Banco Santander Chile SAN Chile -23.75%
26 Corpbanca BCA Chile -30.88%
27 Banco Bradesco BBD Brazil -17.03%
28 Banco Itau ITU Brazil -16.59%
29 Unibanco UBB Brazil -25.39%
30 Westpac Banking WBK Australia -30.66%
31 National Australia Bank NABZY Australia -37.08%
32 Australia and New Zealand Group ANZBY Australia -46.83%
33 Banco Macro BMA Argentina -37.24%
34 BBVA Banco Frances BFR Argentina -42.40%
35 BNP Paribas BNPQY France -23.19%
36 Societe Generale SCGLY France -46.84%
37 DBS DBSDY Singapore -20.13%
38 United Overseas Bank UOVEY Singapore -15.65%
39 Erste Group Bank EBKDY Austria -28.21%
40 Hang Seng Bank HSNGY Hong Kong -3.85%
41 Swedbank SWDBY Sweden -50.53%
42 Danske Bank DNSKY Denmark -36.53%
43 First Bancorp FBP Puerto Rico -9.31%
Click to enlarge

Note: Please note that the data used for calculation is thought to be accurate but not guaranteed. Do your own research before making any investment decisions.

Analysis:

  1. Out of the five British banks, HBOOY is the worst loser since its main business is in mortgage. Surprising to see HSBC down only about 21%.
  2. The Irish economy has cooled for many months now. So both IRE and AIB are down over 50%.
  3. Brazil,Singapore bank stocks have held up well.
  4. France’s SCGLY was cut almost in half because of the losses made by a rogue trader.
  5. Only two stocks are down in the single digit range.
  6. Even South Korean and Australian banks are not immune to this global slowdown. The decoupling theory does not seem to be true anymore.

The above study has confirmed my thoughts that the British banks are worst hit among the European banks. Some of the emerging market banks seem to provide shelter for investors fleeing financials in developed markets. Overall the above list can be used as a starting point to dig into some of these beaten up stocks. Or this list can be used to track these bank stocks.