Banks' CET1 Question, Financialization

J.P. Morgan APAC Financials daily note discussing banks' CET1 (Common Equity Tier 1) question and financialization. The week's key theme in APAC financials was CET1 drag from bond-portfolio valuation losses amid higher yields, with European spillover continuing, starting with HSBC's roughly -5% move last Friday; among Singapore banks DBS fell almost 5% yesterday after a warning on CET1, breaking below its 50dma, and DBS has the highest FVTPL as a percentage of bonds in ASEAN (31%) and bonds as a percentage of assets at 27%. On HSBC/STAN: HSBC is forecast to deliver a $1bn 3Q buyback based on a 13.9% CET1 assumption (vs BBG 14.1%, guidance 14-14.5%), while STAN's CET1 is forecast to decline QoQ to 13.7% but remain within its 13-14% target;