BofA financials weekly, 22 June 2026

研报英文原文证据摘录

BofA financials weekly, 22 June 2026

gement

Shinsei, by significantly expanding lending to local governments, improvement in loan AOCI: Accumulated other comprehensive income

yields had been limited, but improvement began to emerge in the FY3/26 4Q results. BoJ: Bank of Japan

Insurance, and other nonbanks (Natsumu Tsujino) BRK: Berkshire Hathaway

CET1: Common equity tier 1

We visited European investors for 3 days last week. Most were long-only and broadly

CMBS: Commercial mortgage backed securities

aligned with our views, although many were bullish on JPX and securities. More details

C&I: commercial and industrial

are on page 3. It was notable that while many investors focus on dividends and

DI: Diffusion index

buybacks, some hedge funds remain strictly focused on P/E. We recommended using

ESR: Economic solvency ratio

IFRS adjusted profit for the three P&C insurers (Exhibit 51), under which Sompo HD has

EV: Embedded value

the lowest P/E.

FICC: Fixed income currencies and commodities

The decline in long and ultra-long JGB yields following the BoJ’s rate hikes has been FSA: Financial Services Agency

reassuring for life insurers. However, yields spiked sharply on Friday, suggesting FVTPL: Fair value through profit of loss

complacency is unwarranted. A sustained rise in ultra-long yields would increase market

MOCE: Margin over current estimate

instability and weigh on ESR. If yields stabilize at a relatively high level, competition on

MPM: Monetary Policy Meeting

guaranteed rates should ease, and for life insurers with positive new money inflows,

MTP: Medium-term plan

spreads can improve without rotating JGB portfolios.

MVA: Market value adjustment

T&D’s share price volatility likely reflects profit-taking after a strong run-up around the NAV: Net asset value