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

China Banks Screener; PingAn Bank Is Our Top Pick, Followed by CCB

Postal Savings Bank of China – Excess Provisioning

PSBC: Subpar Trends but Risk May Be Subsiding

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

Postal Savings Bank of China C / Equity Bottom-Up

<ul>
<li>Our Chinese bank screens are based on valuations, prospective returns, credit quality and capital adequacy</li>
<li>Among the deep value Chinese banks, we highlight <a href="https://www.smartkarma.com/entities/postal-savings-bank-of-china" target="_blank" data-smartkarma-citation="entities:22848:1" rel="noopener">Postal Savings Bank of China (1658 HK)</a>  (PSBC) for its recovering returns and potential for further returns expansion</li>
<li>We believe that PSBC’s extremely high NPL coverage (400%+) could anchor its cost of risk going forward</li>
<li>We also like <a href="https://www.smartkarma.com/entities/china-construction-bank-h" target="_blank" data-smartkarma-citation="entities:45:1" rel="noopener">China Construction Bank H (939 HK)</a> (CCB) for its attractive valuations relative to returns, and its premium core capital ratio; CCB’s NPL coverage is a healthy 200%+</li>
<li>Risks to our positive view on PSBC and CCB include worsening fundamental trends such as weaker than expected margins, higher than expected NPLs resulting in an increase in cost of risk, and higher than expected opex</li>
</ul>


Our Chinese bank screens are based on valuations, prospective returns, credit quality and capital adequacy
Among the deep value Chinese banks, we highlight Postal Savings Bank of China (1658 HK)  (PSBC) for its recovering returns and potential for further returns expansion
We believe that PSBC’s extremely high NPL coverage (400%+) could anchor its cost of risk going forward
We also like China Construction Bank H (939 HK) (CCB) for its attractive valuations relative to returns, and its premium core capital ratio; CCB’s NPL coverage is a healthy 200%+
Risks to our positive view on PSBC and CCB include worsening fundamental trends such as weaker than expected margins, higher than expected NPLs resulting in an increase in cost of risk, and higher than expected opex


China Banks – 1Q21 Screens Highlight PSBC & CCB Positively