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

Grupo Financiero Banorte SAB d / Equity Bottom-Up

Grupo Financiero Banorte SAB d (GFNORTEO MF)

<ul>
<li>Among EM funds, <a href="https://www.smartkarma.com/entities/grupo-financiero-banorte-o" target="_blank" data-smartkarma-citation="entities:24780:1" rel="noopener">Grupo Financiero Banorte-O (GFNORTEO MF)</a>  is one of the most widely held value stocks</li>
<li>The consensus on Banorte is positive, and we do not challenge this broadly held positive view on the stock, at least not yet</li>
<li>We would agree with management that there is potential to reverse past provisioning charges going forward, as credit quality seems more benign than expected</li>
<li>A very solid capital position, furthermore, adds to the potential for dividend pay-out recovery to at least 50% in 2022</li>
<li>Furthermore core profitability prospects remain sound, even though these have been eroded due to the pandemic effects</li>
<li>Risks to our positive view on Banorte include weaker than expected earnings in non-bank operations going forward, especially in insurance and pensions</li>
</ul>


Among EM funds, Grupo Financiero Banorte-O (GFNORTEO MF)  is one of the most widely held value stocks
The consensus on Banorte is positive, and we do not challenge this broadly held positive view on the stock, at least not yet
We would agree with management that there is potential to reverse past provisioning charges going forward, as credit quality seems more benign than expected
A very solid capital position, furthermore, adds to the potential for dividend pay-out recovery to at least 50% in 2022
Furthermore core profitability prospects remain sound, even though these have been eroded due to the pandemic effects
Risks to our positive view on Banorte include weaker than expected earnings in non-bank operations going forward, especially in insurance and pensions


Banorte (GFNORTEO MX): Don’t Fight the Positive Consensus Call