Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Victor Galliano is an experienced equity banks analyst, having covered Latin America banks and non-bank financials for over 12 years, as well as more recently covering the Italian banks. He has worked in sell side equity research for 30 years in a career spanning Barclays, HSBC, BBVA LatInvest, Barings and NatWest.
Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.
The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Financials & FinTech research

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Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>Brazil’s consumer credit quality trends to April deteriorated further, and within corporates, SME credit quality trends also worsened</li>
<li>System loan growth was +16.8% for the twelve months to April which slightly accelerated from the YoY rate for March (+16.5%), due largely to the strong consumer loan growth (+21.9%)</li>
<li>The BCB’s latest consensus estimates point to further benchmark rate rises this year of another 50bps to 13.75%; this impacts credit quality, yet Brazilian banks benefit from higher loan spreads</li>
</ul>


Brazil’s consumer credit quality trends to April deteriorated further, and within corporates, SME credit quality trends also worsened
System loan growth was +16.8% for the twelve months to April which slightly accelerated from the YoY rate for March (+16.5%), due largely to the strong consumer loan growth (+21.9%)
The BCB’s latest consensus estimates point to further benchmark rate rises this year of another 50bps to 13.75%; this impacts credit quality, yet Brazilian banks benefit from higher loan spreads


April Brazil Bank Data in Twelve Charts; Consumer and SME NPLs Worsened, Higher Credit Spreads

Banco do Brasil

April Brazil Bank Data in Twelve Charts; Consumer and SME NPLs Worsened, Higher Credit Spreads