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>Hana Financial remains our buy pick among Korean banks; it is delivering consistently improved returns on assets, and it is the most attractively valued of the bigger caps</li>
<li>Hana continues to trade at a large PBV discount to KB Financial; this currently stands at 26% which is below the three-year mean in terms of historical PBV discount</li>
<li>Hana has delivered four straight quarters of improving pre-provision and post-provision returns to 4Q 2025, supported by Hana’s interest margin having held up better than peers</li>
</ul>


Hana Financial remains our buy pick among Korean banks; it is delivering consistently improved returns on assets, and it is the most attractively valued of the bigger caps
Hana continues to trade at a large PBV discount to KB Financial; this currently stands at 26% which is below the three-year mean in terms of historical PBV discount
Hana has delivered four straight quarters of improving pre-provision and post-provision returns to 4Q 2025, supported by Hana’s interest margin having held up better than peers


Korean Banks; Stay the Course with Hana Financial (086790 KS)

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>As the April-June quarter earnings season winds down, positive surprises outnumber disappointments. Consensus earnings estimates keep getting upgraded in Asia and the US. Asian EPS upgrade has lately outpaced US's.</li>
<li>Over the last month, consensus 2026 EPS estimate of Asia-ex-Japan has been upgraded 4.4%, driven by Korea (12.8%), Taiwan (5.8%), Thailand (5.5%). 105 of 162 market-sectors have seen EPS upgrades.</li>
<li>The encouraging signs are: breadth across a wide range of sectors and not driven by AI capex only. Sectors not directly linked to AI exuberance are among top earnings gainers.</li>
</ul>


As the April-June quarter earnings season winds down, positive surprises outnumber disappointments. Consensus earnings estimates keep getting upgraded in Asia and the US. Asian EPS upgrade has lately outpaced US's.
Over the last month, consensus 2026 EPS estimate of Asia-ex-Japan has been upgraded 4.4%, driven by Korea (12.8%), Taiwan (5.8%), Thailand (5.5%). 105 of 162 market-sectors have seen EPS upgrades.
The encouraging signs are: breadth across a wide range of sectors and not driven by AI capex only. Sectors not directly linked to AI exuberance are among top earnings gainers.


Asian Equities: A Stupendous Earnings Quarter; Asia Matching US in Upgrades

<ul>
<li>Hana Financial remains our buy pick among Korean banks; it is close to the top our scorecard, it remains attractively valued and its returns are improving</li>
<li>Hana is trading at a large PBV discount to KB Financial; this currently stands at a 30%+ discount which is over one standard deviation from the historical PBV discount mean</li>
<li>Furthermore, we see that this relatively dovish phase of monetary policy, Hana appears to have more limited downside risk than its peers in terms of further interest spread erosion</li>
</ul>


Hana Financial remains our buy pick among Korean banks; it is close to the top our scorecard, it remains attractively valued and its returns are improving
Hana is trading at a large PBV discount to KB Financial; this currently stands at a 30%+ discount which is over one standard deviation from the historical PBV discount mean
Furthermore, we see that this relatively dovish phase of monetary policy, Hana appears to have more limited downside risk than its peers in terms of further interest spread erosion


Korean Banks; Stick with Hana (086790 KS) On the Buy List

<ul>
<li>The spike in energy and fertilizer prices is igniting concerns about durably higher inflation expectations among policymakers. The inflation surges in India, Philippines, Thailand and Korea are particularly noticeable.</li>
<li>Real policy rates are negative in Korea, Taiwan, Thailand and Philippines. India could be headed there if inflation rises further. Korea, Indonesia and Philippines are already on a tightening path.</li>
<li>Indian real rates are positive for now, but a deficient monsoon-induced food inflation spike could drive rate hikes later this year. So could Malaysia and Thailand in late 2026.</li>
</ul>


The spike in energy and fertilizer prices is igniting concerns about durably higher inflation expectations among policymakers. The inflation surges in India, Philippines, Thailand and Korea are particularly noticeable.
Real policy rates are negative in Korea, Taiwan, Thailand and Philippines. India could be headed there if inflation rises further. Korea, Indonesia and Philippines are already on a tightening path.
Indian real rates are positive for now, but a deficient monsoon-induced food inflation spike could drive rate hikes later this year. So could Malaysia and Thailand in late 2026.


Asia: Which Economies Are Most Likely to Tighten Monetary Policy?

<ul>
<li>Asian earnings estimates are being revised up stupendously. Over past 6 months, 2026 consensus EPS is up 16%. 63 market-sectors out of 159 saw upgrades, vs 30 few months ago.</li>
<li>While the main drivers are Korean and Taiwanese tech, the spill-over from tech into consumption sentiment and investment propensity are visible. Korean retail, financials, Taiwanese financials have had significant upgrades.</li>
<li>The pedestrian upgrade to China's EPS and the downgrade to Hong Kong's are surprising. Our preferences remain on Korean tech, industrials, defense, financials, Taiwanese tech, Chinese basic materials, HK financials.</li>
</ul>


Asian earnings estimates are being revised up stupendously. Over past 6 months, 2026 consensus EPS is up 16%. 63 market-sectors out of 159 saw upgrades, vs 30 few months ago.
While the main drivers are Korean and Taiwanese tech, the spill-over from tech into consumption sentiment and investment propensity are visible. Korean retail, financials, Taiwanese financials have had significant upgrades.
The pedestrian upgrade to China's EPS and the downgrade to Hong Kong's are surprising. Our preferences remain on Korean tech, industrials, defense, financials, Taiwanese tech, Chinese basic materials, HK financials.


Asian Equities: The Earnings Juggernaut Is Rolling on and Getting Broad-Based

South Korea

Hana Financial Group Inc., in accordance with Financial Holding Companies Act, was established on December 1, 2005, through stock transfer with the former shareholders of its subsidiaries in order to provide management services and financing to associated companies.

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Hana Financial (086790 KS)

Korean Banks; Stay the Course with Hana Financial (086790 KS)

Hana Fin stands out as the top buy pick among Korean banks, offering consistently improved returns on assets and attractive valuations compared to...

Victor Galliano

Asian Equities: A Stupendous Earnings Quarter; Asia Matching US in Upgrades

Positive earnings surprises continue as consensus EPS est are upgraded in Asia & the US, with Asian EPS upgrades surpassing those in US. Various...

Manishi Raychaudhuri

Korean Banks; Stick with Hana (086790 KS) On the Buy List

Hana Financial is our buy among Korean banks on attractive valuations - big PBV discount to KB Financial - and improving returns. Hana has limited...

Victor Galliano

Asia: Which Economies Are Most Likely to Tighten Monetary Policy?

Rising energy & fertilizer prices fuel inflation worries, with sharp surges in India, PH, TH & KR. After KR, PH & ID, India could hike rates if...

Manishi Raychaudhuri

Asian Equities: The Earnings Juggernaut Is Rolling on and Getting Broad-Based

Asian EPS est are soaring driven by KR & TW tech. CN had modest upgrade over past 6 months & HK was downgraded. Spill-over from tech into...

Manishi Raychaudhuri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korean Banks; Stay the Course with Hana Financial (086790 KS)

​Hana Fin stands out as the top buy pick among Korean banks, offering consistently improved returns on assets and attractive valuations compared to...

Victor Galliano

Asian Equities: A Stupendous Earnings Quarter; Asia Matching US in Upgrades

​Positive earnings surprises continue as consensus EPS est are upgraded in Asia & the US, with Asian EPS upgrades surpassing those in US. Various...

Manishi Raychaudhuri

Korean Banks; Stick with Hana (086790 KS) On the Buy List

​Hana Financial is our buy among Korean banks on attractive valuations - big PBV discount to KB Financial - and improving returns. Hana has limited...

Victor Galliano

Asia: Which Economies Are Most Likely to Tighten Monetary Policy?

​Rising energy & fertilizer prices fuel inflation worries, with sharp surges in India, PH, TH & KR. After KR, PH & ID, India could hike rates if...

Manishi Raychaudhuri

Asian Equities: The Earnings Juggernaut Is Rolling on and Getting Broad-Based

​Asian EPS est are soaring driven by KR & TW tech. CN had modest upgrade over past 6 months & HK was downgraded. Spill-over from tech into...

Manishi Raychaudhuri

Hana Fin stands out as the top buy pick among Korean banks, offering consistently improved returns on assets and attractive valuations compared to...

Positive earnings surprises continue as consensus EPS est are upgraded in Asia & the US, with Asian EPS upgrades surpassing those in US. Various...

Hana Financial is our buy among Korean banks on attractive valuations - big PBV discount to KB Financial - and improving returns. Hana has limited...

Rising energy & fertilizer prices fuel inflation worries, with sharp surges in India, PH, TH & KR. After KR, PH & ID, India could hike rates if...

Asian EPS est are soaring driven by KR & TW tech. CN had modest upgrade over past 6 months & HK was downgraded. Spill-over from tech into...