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

European & UK Banks; Screening for Investment Opportunities

European Bank Screens 4Q20 – Our Picks in the Rotation to Value

Debt Capital Surplus (Shortfall) And Trading Opportunities in European Banks

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.

Thematic (Sector/Industry)

Switzerland Banks / Thematic (Sector/Industry)

<ul>
<li>We screen thirty European banks, for their dividend yield relative to their dividend pay-out ratios on 2022 consensus estimates, to assess how well is their prospective dividend is covered by forecast profitability</li>
<li>We also screen for attractive valuations, for healthy credit quality metrics and the potential for banks to deliver better returns going forward</li>
<li>In the case of those banks that have built up their provisioning buffers, cost of risk should recede over the coming quarters</li>
<li>We highlight <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc-57298707-4faa-42d6-a353-ab1f6ee92fd4" target="_blank" data-smartkarma-citation="entities:28330:1" rel="noopener">HSBC Holdings PLC (HSBC US)</a> , <a href="https://www.smartkarma.com/entities/banco-bilbao-vizcaya-argentari" target="_blank" data-smartkarma-citation="entities:21251:1" rel="noopener">Banco Bilbao Vizcaya Argentari (BBVA SM)</a>  and <a href="https://www.smartkarma.com/entities/unicredit-spa" target="_blank" data-smartkarma-citation="entities:21234:1" rel="noopener">UniCredit SpA (UCG IM)</a>, as well as <a href="https://www.smartkarma.com/entities/abn-amro-group-nv" target="_blank" data-smartkarma-citation="entities:24858:1" rel="noopener">ABN AMRO Group NV (ABN NA)</a>, <a href="https://www.smartkarma.com/entities/credit-agricole-sa" target="_blank" data-smartkarma-citation="entities:21373:1" rel="noopener">Credit Agricole Sa (ACA FP)</a>, <a href="https://www.smartkarma.com/entities/danske-bank-a-s" target="_blank" data-smartkarma-citation="entities:22336:1" rel="noopener">Danske Bank A/S (DANSKE DC)</a> and, as a recovery and contrarian play, <a href="https://www.smartkarma.com/entities/credit-suisse-group-ag-f4b24f0c-c294-40b3-b491-759f0cb277e9" target="_blank" data-smartkarma-citation="entities:27915:1" rel="noopener">Credit Suisse Group AG (CSGN SW)</a>
</li>
<li>Risks to our positive view on our highlighted banks include worse than expected credit quality, as well as weaker than expected revenue generation and higher than expected opex</li>
</ul>


We screen thirty European banks, for their dividend yield relative to their dividend pay-out ratios on 2022 consensus estimates, to assess how well is their prospective dividend is covered by forecast profitability
We also screen for attractive valuations, for healthy credit quality metrics and the potential for banks to deliver better returns going forward
In the case of those banks that have built up their provisioning buffers, cost of risk should recede over the coming quarters
We highlight HSBC Holdings PLC (HSBC US) , Banco Bilbao Vizcaya Argentari (BBVA SM)  and UniCredit SpA (UCG IM), as well as ABN AMRO Group NV (ABN NA), Credit Agricole Sa (ACA FP), Danske Bank A/S (DANSKE DC) and, as a recovery and contrarian play, Credit Suisse Group AG (CSGN SW)

Risks to our positive view on our highlighted banks include worse than expected credit quality, as well as weaker than expected revenue generation and higher than expected opex


European Banks Value Screens – Focus on Dividend Yields and Healthy Dividend Coverage Metrics