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

Mexican Banks’ December Data Adds to Positive Trend on Credit Quality, but Lending Spread Eroding

Banorte – Potential M&A Raises Questions on Dividend Prospects

BBVA – Mexico Is the Motor for Further Capital Distribution

Mexican Banks’ November Data Looking Positive on Credit Quality, Lending Spread Stable

Banorte (GFNORTEO MM): Contrarian Move to Underweight - Sound 3Q21 but Much Is Discounted

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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

Grupo Financiero Banorte SAB d / Equity Bottom-Up

Grupo Financiero Banorte SAB d (GFNORTEO MF)

<ul>
<li>Banorte delivered a mixed bag of quarterly results, with eroded interest margins and accelerating opex growth; insurance recovered slightly in 4Q, but pandemic claims still weighed on full year results</li>
<li>The bank balance sheet, with a core capital ratio of 15%+ and the NPL ratio at 1%, is reassuring but we believe that the cost of credit is unsustainably low</li>
<li>Recovering insurance earnings will add to 2022 group returns, but will not, we believe, offset the far larger Banorte bank, challenged by opex growth and a higher cost of risk</li>
</ul>


Banorte delivered a mixed bag of quarterly results, with eroded interest margins and accelerating opex growth; insurance recovered slightly in 4Q, but pandemic claims still weighed on full year results
The bank balance sheet, with a core capital ratio of 15%+ and the NPL ratio at 1%, is reassuring but we believe that the cost of credit is unsustainably low
Recovering insurance earnings will add to 2022 group returns, but will not, we believe, offset the far larger Banorte bank, challenged by opex growth and a higher cost of risk


Banorte (GFNORTEO MM): 4Q21 Reveals Sound Asset Quality, but Returns Recovery Challenged in 2022