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

Banamex Update and Mexican Banks’ January Data – First Look at Early 1Q 2024 Trends

EM & Japan Neobanks – Stick with Rakuten Bank (5838 JP), but Time to Take Profits on Nubank (NU US)

Banorte (GFNORTEO MM) – Triple Jeopardy in Play for 2024?

EM Neobanks – Positive on Banco PAN, Cautious on Nubank & KakaoBank Is One to Watch

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>Management’s successful execution to 4Q23 has driven its LTM ROE of 18%+ and ROA of 2.6%; in Brazil, the focus is to grow secured lending and further penetrate high-income retail</li>
<li>In Mexico, management aims to leverage off the deposit base and build its credit business, as well as establishing itself in Colombia; challenges include containing capital consumption and credit delinquency</li>
<li>In Mexico especially, the competitive climate in digital banking is intensifying which puts pressure on customer acquisition costs, costs to serve, and it could drive up credit delinquency risks</li>
</ul>


Management’s successful execution to 4Q23 has driven its LTM ROE of 18%+ and ROA of 2.6%; in Brazil, the focus is to grow secured lending and further penetrate high-income retail
In Mexico, management aims to leverage off the deposit base and build its credit business, as well as establishing itself in Colombia; challenges include containing capital consumption and credit delinquency
In Mexico especially, the competitive climate in digital banking is intensifying which puts pressure on customer acquisition costs, costs to serve, and it could drive up credit delinquency risks


Grupo Financiero Banorte SAB d (GFNORTEO MF)

NU Holdings

Nubank (NU US): The Challenges for 2024