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

Big Cap China Banks – Two Positive Picks

Brazil Banks – Stick with Bradesco, Adding Small-Cap Banrisul to the Buy List

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 believe that Chinese banks should suffer less interest margin erosion going forward; policy rate reductions seem to be largely in the past, and deposit re-pricing should help going forward</li>
<li>Credit quality is perceived to be a challenge going forward; we look at headline NPL ratios and cost of risk, adding net write-off ratios to better screen for NPL risks</li>
<li>At first sight, all Chinese banks look like potential value plays; yet only Ping An Bank is our top pick, along with CCB in the mega-caps as our other buy</li>
</ul>


We believe that Chinese banks should suffer less interest margin erosion going forward; policy rate reductions seem to be largely in the past, and deposit re-pricing should help going forward
Credit quality is perceived to be a challenge going forward; we look at headline NPL ratios and cost of risk, adding net write-off ratios to better screen for NPL risks
At first sight, all Chinese banks look like potential value plays; yet only Ping An Bank is our top pick, along with CCB in the mega-caps as our other buy


China Banks – Interest Margin Headwinds Receding, Credit Quality Hurdles Remain

Ping An Bank Co Ltd A

China Banks – Interest Margin Headwinds Receding, Credit Quality Hurdles Remain