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

Itausa (ITSA4 BZ) – Too Narrow a NAV Discount, and the Dividend Yield Is No Longer Compelling

XP (XP US) – Less Demanding Valuations, but the Overhang Still Weighs

Itausa (ITSA4 BZ) – Historically Wide, and Potentially Understated, NAV Discount

Brazil Banking Data to January-End in Twelve Charts – Consumer NPLs Reflect Higher Benchmark Rates

Brazil Banks: Our Picks on Asset Sensitivity and Credit Quality Are Itaú Unibanco & Banco Do Brasil

Brazil Banking Data Trends to December in Twelve Charts – Consumer Credit Quality Less Concerning

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 consumer credit quality trends to February deteriorated further relative to the previous month, despite corporate credit quality improving marginally</li>
<li>System loan growth was 16.6% for the twelve months to February which was slightly faster than the YoY rate for January (16.4%), totally due to the stronger consumer loan growth</li>
<li>The BCB is in the latter stages of its benchmark rate hiking cycle, which impacts credit quality, especially in consumer categories; still, Brazilian banks should benefit from higher loan spreads</li>
</ul>


Brazil’s consumer credit quality trends to February deteriorated further relative to the previous month, despite corporate credit quality improving marginally
System loan growth was 16.6% for the twelve months to February which was slightly faster than the YoY rate for January (16.4%), totally due to the stronger consumer loan growth
The BCB is in the latter stages of its benchmark rate hiking cycle, which impacts credit quality, especially in consumer categories; still, Brazilian banks should benefit from higher loan spreads


Brazil Banking Data to February in 12 Charts – Consumer NPLs Worsened Further Pushed by Higher Rates

Banco do Brasil

Brazil Banking Data to February in 12 Charts – Consumer NPLs Worsened Further Pushed by Higher Rates