Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

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>We reiterate our buy on CIMB; management continues to drive credit quality with cost of risk improvements, and we see potential for operating efficiency gains, combined with its attractive valuations </li>
<li>We downgrade Maybank to a neutral from buy, largely on the back of valuations and its middle-of-the-peer-group pre- and post-provision return trends, with its efficiency ratio requiring attention </li>
<li>We believe that AM Bank is a name to watch for its low valuations as well as its improving cost of risk trends and profitability returns</li>
</ul>


We reiterate our buy on CIMB; management continues to drive credit quality with cost of risk improvements, and we see potential for operating efficiency gains, combined with its attractive valuations 
We downgrade Maybank to a neutral from buy, largely on the back of valuations and its middle-of-the-peer-group pre- and post-provision return trends, with its efficiency ratio requiring attention 
We believe that AM Bank is a name to watch for its low valuations as well as its improving cost of risk trends and profitability returns


Malaysian Banks Screener; CIMB Improves Credit Quality Driving Post Provision Returns

<ul>
<li>Among bigger cap GEM banks, we pick five longs and two shorts as our conviction calls; we add country-based equity risk premia to our screening process</li>
<li>Our core buys are Bank Mandiri from Indonesia, Hana Financial from South Korea, CIMB Group from Malaysia, Bradesco from Brazil and CCB from China; four of these are value picks</li>
<li>Our sells are Kotak Mahindra Bank and ICICI Bank from India, both richly valued larger cap banks that have benefited from past economic and political tailwinds with headwinds now emerging</li>
</ul>


Among bigger cap GEM banks, we pick five longs and two shorts as our conviction calls; we add country-based equity risk premia to our screening process
Our core buys are Bank Mandiri from Indonesia, Hana Financial from South Korea, CIMB Group from Malaysia, Bradesco from Brazil and CCB from China; four of these are value picks
Our sells are Kotak Mahindra Bank and ICICI Bank from India, both richly valued larger cap banks that have benefited from past economic and political tailwinds with headwinds now emerging


GEM Banks; Focus on Value Attributes and Returns Recovery Potential

<ul>
<li>Of the six Malaysian banks screened, we keep value play CIMB, whose share price has positive momentum, and quality play Maybank on the buy list</li>
<li>Value pick CIMB has undemanding valuations whilst second from top in post-provision profitability; it has strong capital adequacy and its cost of risk is now more in line with peers</li>
<li>Quality pick Maybank also has relatively undemanding PE multiples and PBV ratio, as well as strong balance sheet credentials and improving returns</li>
</ul>


Of the six Malaysian banks screened, we keep value play CIMB, whose share price has positive momentum, and quality play Maybank on the buy list
Value pick CIMB has undemanding valuations whilst second from top in post-provision profitability; it has strong capital adequacy and its cost of risk is now more in line with peers
Quality pick Maybank also has relatively undemanding PE multiples and PBV ratio, as well as strong balance sheet credentials and improving returns


Malaysian Banks Screener; Stick with Value Pick CIMB and Maybank as the Quality Pick

<ul>
<li>Of the six Malaysian banks screened, we keep quality play Maybank on the buy list and switch our prior buy RHB for CIMB</li>
<li>CIMB is our value pick for its undemanding PE and PBV whilst second from top in post-provision profitability; its credit quality is improving, a positive trend we expect will continue</li>
<li>We maintain quality pick Maybank as a buy for its relatively undemanding valuations, and strong balance sheet credentials in terms of credit quality and capital adequacy</li>
</ul>


Of the six Malaysian banks screened, we keep quality play Maybank on the buy list and switch our prior buy RHB for CIMB
CIMB is our value pick for its undemanding PE and PBV whilst second from top in post-provision profitability; its credit quality is improving, a positive trend we expect will continue
We maintain quality pick Maybank as a buy for its relatively undemanding valuations, and strong balance sheet credentials in terms of credit quality and capital adequacy


Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick

<ul>
<li>Of the six Malaysian banks screened, we keep value play RHB Bank on the buy list and switch our prior CIMB for Maybank</li>
<li>RHB Bank is our top pick for its undemanding PE and PBV whilst being second from top in post-provision profitability; its high CET1 ratio has not held back its ROE</li>
<li>We drop CIMB from the buy list for its weaker credit quality and low NPL coverage; we upgrade quality pick Maybank to buy for its attractive valuations</li>
</ul>


Of the six Malaysian banks screened, we keep value play RHB Bank on the buy list and switch our prior CIMB for Maybank
RHB Bank is our top pick for its undemanding PE and PBV whilst being second from top in post-provision profitability; its high CET1 ratio has not held back its ROE
We drop CIMB from the buy list for its weaker credit quality and low NPL coverage; we upgrade quality pick Maybank to buy for its attractive valuations


Malaysian Banks Screener; RHB Bank and Maybank Are Buys

Malaysia

CIMB Group Holdings Berhad provides commercial banking and related financial services. The Company and its subsidiaries, operate as a regional universal bank offering a full range of financial products and services, covering corporate and investment banking, consumer banking, treasury, insurance and asset management.

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CIMB Group Holdings (CIMB MK)

Malaysian Banks Screener; CIMB Improves Credit Quality Driving Post Provision Returns

CIMB remains a buy for credit quality and potential efficiency gains, we downgrade Maybank to neutral on valuations and efficiency concerns; AM...

Victor Galliano

GEM Banks; Focus on Value Attributes and Returns Recovery Potential

Top picks for bigger cap GEM banks include Bank Mandiri, Hana Financial, CIMB Group, Bradesco, and CCB, while Kotak Mahindra Bank and ICICI Bank...

Victor Galliano

Malaysian Banks Screener; Stick with Value Pick CIMB and Maybank as the Quality Pick

Value play CIMB and quality play Maybank are top picks among Malaysian banks, both with strong financials and positive momentum in share price....

Victor Galliano

Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick

Maybank remains the quality buy, with its strong balance sheet; CIMB replaces RHB Bank as the new value pick given CIMB's improving credit quality...

Victor Galliano

Malaysian Banks Screener; RHB Bank and Maybank Are Buys

RHB Bank remains a buy for its strong profitability, core capital and attractive valuations; we drop CIMB due to weak credit quality, while we...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Malaysian Banks Screener; CIMB Improves Credit Quality Driving Post Provision Returns

CIMB remains a buy for credit quality and potential efficiency gains, we downgrade Maybank to neutral on valuations and efficiency concerns; AM...

Victor Galliano

GEM Banks; Focus on Value Attributes and Returns Recovery Potential

​Top picks for bigger cap GEM banks include Bank Mandiri, Hana Financial, CIMB Group, Bradesco, and CCB, while Kotak Mahindra Bank and ICICI Bank...

Victor Galliano

Malaysian Banks Screener; Stick with Value Pick CIMB and Maybank as the Quality Pick

​Value play CIMB and quality play Maybank are top picks among Malaysian banks, both with strong financials and positive momentum in share price....

Victor Galliano

Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick

​Maybank remains the quality buy, with its strong balance sheet; CIMB replaces RHB Bank as the new value pick given CIMB's improving credit quality...

Victor Galliano

Malaysian Banks Screener; RHB Bank and Maybank Are Buys

RHB Bank remains a buy for its strong profitability, core capital and attractive valuations; we drop CIMB due to weak credit quality, while we...

Victor Galliano

Top picks for bigger cap GEM banks include Bank Mandiri, Hana Financial, CIMB Group, Bradesco, and CCB, while Kotak Mahindra Bank and ICICI Bank...

Value play CIMB and quality play Maybank are top picks among Malaysian banks, both with strong financials and positive momentum in share price....

Maybank remains the quality buy, with its strong balance sheet; CIMB replaces RHB Bank as the new value pick given CIMB's improving credit quality...