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

Brazil Bank Sector Trends to June in Ten Charts

Brazil Bank Sector Trends to July in Ten Charts

Brazil Banking Data Trends to August in Ten Charts

Brazil Bank Sector Trends to April in Ten Charts

Brazil Bank Sector Trends to March in Ten Charts

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

<ul>
<li>Brazil’s credit quality trends to May remain broadly positive</li>
<li>Loan growth on a YoY basis is steady in the mid-teens</li>
<li>Compared to April, consumer credit quality seems controlled and arrears (15-90 days delay) data is an encouraging signal for medium-term NPLs</li>
<li>Credit quality of corporates shows that risks are increasing in micro-enterprises and SMEs whereas large corporate NPLs are well contained</li>
<li>NPLs are rising fastest in the case of public sector banks, yet these are well covered by provisions as in the banking system generally</li>
<li>Credit spreads trended lower in May for individual borrowers</li>
<li>We continue to see value in the sector and find <a href="https://www.smartkarma.com/entities/banco-do-brasil-sa" target="_blank" data-smartkarma-citation="entities:24564:1" rel="noopener">Banco Do Brasil Sa (BBAS3 BZ)</a> attractive</li>
<li>Risks to positive view on these big cap Brazil banks include worse than expected credit quality, weak opex control and erosion of credit spreads</li>
</ul>


Brazil’s credit quality trends to May remain broadly positive
Loan growth on a YoY basis is steady in the mid-teens
Compared to April, consumer credit quality seems controlled and arrears (15-90 days delay) data is an encouraging signal for medium-term NPLs
Credit quality of corporates shows that risks are increasing in micro-enterprises and SMEs whereas large corporate NPLs are well contained
NPLs are rising fastest in the case of public sector banks, yet these are well covered by provisions as in the banking system generally
Credit spreads trended lower in May for individual borrowers
We continue to see value in the sector and find Banco Do Brasil Sa (BBAS3 BZ) attractive
Risks to positive view on these big cap Brazil banks include worse than expected credit quality, weak opex control and erosion of credit spreads


Brazil Bank Sector Trends to May in Ten Charts

Banco do Brasil

Brazil Bank Sector Trends to May in Ten Charts