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

HSBC (HSBA LN): Signs of Progress, Within a Mixed Set of 3Q20 Results

Banorte (GFNORTEO MM): Prepared for the Next Wave…of NPLs

HSBC’s AT1 Curve: Where Is the Cross-Currency Value?

Banorte Ranks Attractively Based on Mexican Banks’ July Data

Banorte (GFNORTEO MM): Constructive Citi and BBVA Read-Across for 3Q 2020

Mexican Banks: Confronting the Credit Quality Challenge

Gravity Works As WeWork Doesn't; Now Plan B

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

Grupo Financiero Banorte SAB d / Equity Bottom-Up

Grupo Financiero Banorte SAB d (GFNORTEO MF)

<ul>
<li>CNBV’s August banks data this week is positive at the sector level</li>
<li>Credit quality trends in particular are constructive at the sector level, and credit spreads stable even if loan growth has slowed</li>
<li>
<a href="https://www.smartkarma.com/entities/grupo-financiero-banorte-o" target="_blank" data-smartkarma-citation="entities:24780:1" rel="noopener">Grupo Financiero Banorte-O (GFNORTEO MF)</a>  is also looking positive with a notable downturn in cost of risk in August, steady loan growth, well controlled opex and a healthy credit spread trend</li>
<li>Banorte also bucks the sector trend with a slight improvement in the adjusted credit card NPL ratio to August</li>
<li>Names to watch are <a href="https://www.smartkarma.com/entities/banco-del-bajio-sa" target="_blank" data-smartkarma-citation="entities:28382:1" rel="noopener">Banco del Bajio SA (BBAJIOO MM)</a> and <a href="https://www.smartkarma.com/entities/regional-sab-de-cv" target="_blank" data-smartkarma-citation="entities:27996:1" rel="noopener">Regional SAB de CV (RA MM)</a>, even though the trends to August suggest that the cost of risk could continue to pressure returns</li>
<li>Investor sentiment towards Mexico – and Banorte – seems to be improving, and Banorte’s valuations look attractive, in our view</li>
<li>Risks to our positive view on Banorte include a further worsening of credit quality, an erosion of credit spreads and a spike in opex</li>
</ul>


CNBV’s August banks data this week is positive at the sector level
Credit quality trends in particular are constructive at the sector level, and credit spreads stable even if loan growth has slowed

Grupo Financiero Banorte-O (GFNORTEO MF)  is also looking positive with a notable downturn in cost of risk in August, steady loan growth, well controlled opex and a healthy credit spread trend
Banorte also bucks the sector trend with a slight improvement in the adjusted credit card NPL ratio to August
Names to watch are Banco del Bajio SA (BBAJIOO MM) and Regional SAB de CV (RA MM), even though the trends to August suggest that the cost of risk could continue to pressure returns
Investor sentiment towards Mexico – and Banorte – seems to be improving, and Banorte’s valuations look attractive, in our view
Risks to our positive view on Banorte include a further worsening of credit quality, an erosion of credit spreads and a spike in opex


Mexican Banks Data for August Is Positive for Banorte (GFNORTEO MM)