Helgi Library

We put tons of useful data and interesting reports under a single roof to save you hours of searching and disappointment at poor results.

[Helgi Library @HelgiLibrary]

Amazing numbers on Chinese real estate developers in an article by @FT prepared by Barclays:

- more than half of China’s top developers followed Evergrande into default after Beijing moved in 2020 to restrict new borrowing

- at least 60 China property issuers with more than $140bn in outstanding dollar bonds have defaulted since the beginning of 2020, Barclays calculates

- liabilities across the sector stood at 87% of assets at the end of June, compared with asset-to-liabilities ratios of 69% for the Chinese state-owned builders and 41% for the Hong Kong peer group.

With so little equity on the balance sheet, a further 20% decline in the book value of property and plant inventories on average would be enough to cause wipeout, Barclays calculates.

Chinese property is beyond repair. How can creditors delay its collapse? https://t.co/VdXHgbivWs via @ft

[Helgi Library @HelgiLibrary]

A PR award of 2023?

[Barchart @Barchart]

Tesla $TSLA Cybertruck beats a Porsche 911 while towing a 911 🫡👀

[Helgi Library @HelgiLibrary]

Over the past two decades years, global egg consumption has witnessed impressive growth. According to @FAOstatistics , total egg consumption has grown from 49.5 mil tonnes in 2000 to 81.8 mil tonnes in 2021.

China contributed heavily to that consuming over 38% of total (or 31.3 mil tonnes), followed by India and USA. These three countries were also also the largest global producers.

Chinese were also the biggest egg consumers per capita with 22 kg of eggs eaten per person on average in 2021, followed by Mexico and Japan.

Humans have consumed eggs for millions of years. The most widely consumed eggs are those of fowl, especially chickens. People in Southeast Asia began harvesting chicken eggs for food by 1500 BCE.

Bird eggs are a common food and one of the most versatile ingredients used in cooking. Egg yolks and whole eggs store significant amounts of protein and choline. A 50-gram medium/large chicken egg provides approximately 70 kilocalories of food energy and 6 grams of protein

Eggs (boiled) supply several vitamins and minerals as significant amounts of the Daily Value (DV), including (per 100g) vitamin A (19% DV), riboflavin (42% DV), pantothenic acid (28% DV), vitamin B12 (46% DV), choline (60% DV), phosphorus (25% DV), zinc (11% DV) and vitamin D (15% DV).

The largest bird eggs, from ostriches, tend to be used only as special luxury food. Gull eggs are considered a delicacy in England, as well as in some Scandinavian countries, particularly in Norway. In some African countries, guineafowl eggs often are seen in marketplaces, especially in the spring of each year.

More data can be found at:

https://t.co/WfU17eKjXG

https://t.co/bteY3DkNhK

https://t.co/VgffA10ov4

[Helgi Library @HelgiLibrary]

Trinity Bank - Takeaways from 3Q2023 Results

@trinitybankcz decreased its net profit 51.2% to CZK 155 mil in 3Q2023 and generated ROE of 11.6%.

Revenues decreased 28.8% yoy and cost rose 31.8%, so cost to income increased to 48.6%

Asset quality appears good with cost of risk at 0.19% and provisions "eatening" only 4.4% of operating profit

The hefty fall in revenues and profits is partly a result of the record profitability seen last year and there are some further silver linings when looking at 3Q2023 results:

- interest margin has stabilised and interest income has been growing last three quarters

- operating costs are flattish when compared to previous quarters

- asset quality seems to be good based on the low provisions created

- inflow of new clients continues based on the solid deposit growth

Interest margin and deposit inflow are the main areas to watch for in the short-term as the main profit drivers while fee generation in the longer-term is a key to confirm Bank's ability to keep and service its army of new clients attracted by high interest rates.

More details at https://t.co/F6EkIw2Qx4

[Helgi Library @HelgiLibrary]

Fio banka - Takeaways from 3Q2023 Results

@Fio_banka rose its net profit 34.4% to CZK 1.71 bil in 3Q2023 and generated ROE of 42.1%.

Revenues increased 32% yoy driven by higher interest margin and cost rose 19.7% due mainly to personnel. Cost to income decreased to impressive 15.5%

Provision write-back of CZK 73 mil further supported Bank's bottom lines, so we assume asset quality further improved last quarter

Another record quarterly results announced in the 3Q2023, both in absolute as well as relative terms. With the lowest cost of funding on the market, Fio banka is one of the winners from the higher interest rate environment.

More details at https://t.co/OsqPzX1Rht

[Helgi Library @HelgiLibrary]

Max banka - Takeaways from 3Q2023 Results

@MaxBanka achieved a third consequtive quarterly profit of CZK 87.9 mil in 3Q2023 and generated ROE of 12.5%.

Revenues increased 76.2% yoy amid five-fold increase in deposits, though cost of funding starts biting. Costs have been cut further 15.1%, so cost to income decreased to 69.5%

Another provision write-back of CZK 36 mil and zero effective tax rate again supported Bank's bottom line in the third quarter.

With 100% of deposits placed with the Central Bank and all the revenues coming from interest income, Max banka is heavily exposed to interbank-rate development, something to watch closely in the coming quarters.

More details at https://t.co/cegHZblNA5

[Helgi Library @HelgiLibrary]

Banka Creditas - Takeaways from 3Q2023 Results

@bankacreditas decreased its net profit 72.1% to CZK 405 mil in 3Q2023 and generated ROE of 20.6%.
Revenues decreased 1.5% yoy as interest margin peaked while costs rose 37% due partly to fast expansion, so cost to income increased to 67%

Operating profit fell 37.5%, so Bank'sbottom line has been supported by CZK 95 mil provision write-back and contribution from subsidiaries

The 3Q23 numbers suggest peaking interest margin amid further slowdown in loan and deposit growth, cost pressure and a good asset quality, though we have to wait for full-year results to see the details.

More details at https://t.co/4Wq3jheWSr

[Helgi Library @HelgiLibrary]

An essential takeaway is the need for a balanced approach.

While ESG metrics can provide valuable insights into a company’s broader societal impact, they should be seen as a supplement, not a replacement, to traditional financial metrics.

Investors should be wary of overemphasizing ESG at the expense of established measures that have stood the test of time.

We studied 235 stocks–and found that ESG metrics don’t just make a portfolio less profitable, but also less likely to achieve its stated ESG aims https://t.co/1wN0st1JMT

[Helgi Library @HelgiLibrary]

In a historic turn, China’s rise as an economic superpower is reversing. The biggest global story of the past half century may be over, writes Ruchir Sharma at @FT

In 2022, China’s share of the world economy shrank a bit. This year it will shrink more significantly, to 17%. That two-year drop of 1.4% is the largest since the 1960s.

China’s decline could reorder the world. Since the 1990s, the country’s share of global GDP grew mainly at the expense of Europe and Japan, which have seen their shares hold more or less steady over the past two years. The gap left by China has been filled mainly by the US and by other emerging nations.

The ongoing baby bust in China has already lowered its share of the world working age population from a peak of 24% to 19%, and it is expected to fall to 10% over the next 35 years. With a shrinking share of the world’s workers, a smaller share of growth is almost certain.

Further, over the past decade, China’s government has grown more meddlesome, and its debts are historically high for a developing country. These forces are slowing growth in productivity, measured as output per worker.

This combination — fewer workers, and anaemic growth in output per worker — will make it difficult in the extreme for China to start winning back share in the global economy.

China’s rise is reversing https://t.co/dbaAZ9fbM4 via @ft

[Helgi Library @HelgiLibrary]

PPF Banka - Takeaways from 3Q2023 Results

@PPFbanka rose its net profit 37.1% to CZK 1.02 bil in 3Q2023 and generated ROE of 21.4%.

The results were driven by an absence of revaluation losses and provision write-backs when compared to last year

Revenues increased 24.1% yoy and cost rose 4.46%, so  cost to income decreased to impressive 21.6%

Provision write-back of CZK 43.8 mil further boosted bottom line, so we assume asset quality  remains good with NPLs at aroud 1.1-1.2%

A quarter heavily affected by one-offs, though stabilisation of interest margin, solid fee growth and good cost control are positives to point out

More details at https://t.co/zDUoC25PMr

[Helgi Library @HelgiLibrary]

Air Bank - Takeaways from 3Q2023 Results

@Air_Bank decreased its net profit 24.3% to CZK 551 mil in 3Q2023 and generated ROE of 15.5%.

Revenues decreased 8.2% yoy amid lower interest margin while cost rose 16.6%, so cost to income increased to 42.9%

Cost of risk increased to 0.9% of loans, so provisions has eaten a fifth of operating profit last quarter.

We need to wait for full year results to see the big picture, especially, details of Bank's loan portfolio to see the progress  in utilization of Bank's clients.

More details at https://t.co/uaKKXby4ZZ

[Adam Tooze @adam_tooze]

A surge in gang-related killings has catapulted Sweden to top of Europe's murder league & launched national moral panic https://t.co/lWkbOgftU3
For perspective, it remains at < 1/10th of the gun murder rate in the US.
https://t.co/X6yqkgOtwB

[Israel ישראל @Israel]

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#BelieveIsraeliWomen #MeToo_UNless_UR_a_Jew

[Holger Zschaepitz @Schuldensuehner]

One of my favorite charts from Bloomberg Economics: In nominal dollar terms #China’s GDP is shrinking – making the economy a tough sell to foreign investors.

[Helgi Library @HelgiLibrary]

Not just WeWork…

[Evan Tindell @evantindell]

Holy shitballs - the FT has tracked all of Softbank's IPO returns. And guess what... they are terrible

[Helgi Library @HelgiLibrary]

China ranked the highest in potato consumption with 66.4 Mt followed by India and USA, according to @FAO Total potato consumption reached 259.2 Mt in 2021 in the World according to @FAOstatistics This is 0.4% more than in the previous year and 8.1% more than 10 years ago.

The importance of the potato as a food source and culinary ingredient varies by region and is still changing. It remains an essential crop in Europe, especially Northern and Eastern Europe, where per capita production is still the highest in the world (with average Belarussian consuming more than 155 kg a year) as seen below:

https://t.co/OVHAnq74bx

The most rapid expansion in production during the 21st century was in southern and eastern Asia, with China and India leading the world production of 376 Mt:

https://t.co/8nevvI6CSU

Potato consumption growth amounted to 1.47 % since 1961. The top ranked country, China, accounted for a quarter of the global consumption, the top 3 countries represent a 46% share while the ten largest countries some 63% in 2021:

https://t.co/Gggyk4qxSG

The potato was originally believed to have been domesticated by Native Americans in the area of present-day southern Peru and extreme northwestern Bolivia approximately 7,000–10,000 years ago.

Potatoes were introduced to Europe from the Americas by the Spanish in the second half of the 16th century. Today they are a staple food in many parts of the world and an integral part of much of the world's food supply.

[Helgi Library @HelgiLibrary]

UniCredit Bank Czecho-Slovakia - Takeaways from 3Q2023 Results

@UniCredit_CZSK announced strong 3Q2023 results with net profit rising 31% to CZK 2.76 bil and ROE at 14.4%.

Revenues increased 17.1% yoy thanks mainly to strong interest income while cost fell 7.1%. Cost to income therefore decreased to impressive 36.2%

Asset quality seems to be good with no provisions created last quarter, so we assume bad loans stayed at around 1.8% of total loans.

Good momentum unlike other banks reporting 3Q2023 results so far. Similar to other banks, however, weak demand for loans and reduction in interest rates will make the next year more challenging.

In addition, with more than 30% of assets (and 42% of deposits) placed at Central Bank, however, UniCredit Czecho-Slovakia is heavily exposed to the interbank interest rate environment, something to watch for in the coming quarters.

More details at:

https://t.co/3ghAsiY2Y6

[Helgi Library @HelgiLibrary]

Raiffeisenbank Czech Republic - Takeaways from 3Q2023 Results

@RaiffeisenCZ decreased its net profit 35.2% to CZK 1.59 bil in 3Q2023 and generated ROE of 11.7%.

Operating profit fell 2.9% as revenues decreased 9.3% yoy and cost fell 2.9%. Cost to income increased to 49.0%

Cost of risk fell back to annualized 0.29%, a third of the level seen in the previous quarter.

The third quarter suggests a further stabilisation of interest margin, ongoing good cost control and stable asset quality. Good, but not good enough to fight off weak external environment.

More details at https://t.co/Om8URGl8IZ