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

GEM Bank Credit Quality and Value Screens; the 4Q20 Story so Far

Brazil Banks - Market Concerns Overdone, with the Banco Do Brasil (BBAS3 BZ) Strengths Under-Rated

Banco Do Brasil (BBAS3 BZ): CEO Resignation, near Term Downside, but How Much Is Already Discounted?

Brazil Banks YE 2020 Snapshot: Itau (ITUB4 BZ) Well Positioned to Confront Tougher Credit Quality

EM Banks: Screening for Value and Resilience

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>
<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> screens reasonably well relative to its peers on credit quality, even if its problem loan (D-H) coverage is relatively low</li>
<li>It has the lowest level of renegotiations as a share of total loans among the big-cap listed banks</li>
<li>More importantly, Banco do Brasil surprised positively in the quarter on capital adequacy</li>
<li>At YE 2020, Banco do Brasil ranks as the strongest of the big-cap listed banks by core capital (CET1) ratio, a total reversal from its weakest position in YE 2019</li>
<li>Despite <a href="https://www.smartkarma.com/entities/itau-unibanco-holding-sa-9d47d196-e503-471b-a84e-ca4401033062" target="_blank" data-smartkarma-citation="entities:24550:1" rel="noopener">Itau Unibanco Holding Sa (ITUB4 BZ)</a> screening best on problem loan (D-H) level and coverage, Banco do Brasil is now strong on capital, and also compelling on its attractive valuation</li>
<li>Risks to our positive view on Banco do Brasil include worse than expected delinquency trends going forward, putting downward pressure on earnings through higher credit costs</li>
</ul>



Banco Do Brasil Sa (BBAS3 BZ) screens reasonably well relative to its peers on credit quality, even if its problem loan (D-H) coverage is relatively low
It has the lowest level of renegotiations as a share of total loans among the big-cap listed banks
More importantly, Banco do Brasil surprised positively in the quarter on capital adequacy
At YE 2020, Banco do Brasil ranks as the strongest of the big-cap listed banks by core capital (CET1) ratio, a total reversal from its weakest position in YE 2019
Despite Itau Unibanco Holding Sa (ITUB4 BZ) screening best on problem loan (D-H) level and coverage, Banco do Brasil is now strong on capital, and also compelling on its attractive valuation
Risks to our positive view on Banco do Brasil include worse than expected delinquency trends going forward, putting downward pressure on earnings through higher credit costs


Brazil Banks YE2020 Snapshot II: Banco Do Brasil (BBAS3 BZ) Fair Credit Quality, Positive on Capital