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

Mexican Banks Continue to Address NPL Issues in May

Mexican Banks ROE Recovery Continues into June

Mexican Banks’ July Data Show Strong Balance Sheets, and Continuing Improvements in Returns

Banorte (GFNORTEO MX): Don’t Fight the Positive Consensus Call

Santander Mexico (BSMXB MM) – Opportunistic Cash Offer for Minorities

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

Grupo Financiero Banorte SAB d / Equity Bottom-Up

Grupo Financiero Banorte SAB d (GFNORTEO MF)

<ul>
<li>The politics in Mexico is not a major concern, and the macro-economic outlook remains constructive</li>
<li>We continue to recommend <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> , seeing it as a core holding in EM portfolios</li>
<li>
<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> is also attractive, as a mid-cap holding and it has potential for a further re-rating</li>
<li>
<a href="https://www.smartkarma.com/entities/banco-santander-mexico-s-a" target="_blank" data-smartkarma-citation="entities:27672:1" rel="noopener">Banco Santander Mexico-B (BSMXB MM)</a> shares are trading at an 6% premium to the share offer from the parent (MXN24.45 cum dividend); even factoring in the dividend yield, the potential for further SanMex share price upside seems limited</li>
<li>Risks to our positive view on Banorte, BanBajio include worse than expected credit quality and softer than expected loan demand impacting volumes and spreads; risks to our cautious view on SanMex shares include an enhanced offer by Santander or an increased dividend attributable to current shareholders</li>
</ul>


The politics in Mexico is not a major concern, and the macro-economic outlook remains constructive
We continue to recommend Grupo Financiero Banorte-O (GFNORTEO MF) , seeing it as a core holding in EM portfolios

Banco del Bajio SA (BBAJIOO MM) is also attractive, as a mid-cap holding and it has potential for a further re-rating

Banco Santander Mexico-B (BSMXB MM) shares are trading at an 6% premium to the share offer from the parent (MXN24.45 cum dividend); even factoring in the dividend yield, the potential for further SanMex share price upside seems limited
Risks to our positive view on Banorte, BanBajio include worse than expected credit quality and softer than expected loan demand impacting volumes and spreads; risks to our cautious view on SanMex shares include an enhanced offer by Santander or an increased dividend attributable to current shareholders


Mexican Banks: Stay the Course with Our Two Key Positive Picks, Cautious on SanMex