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

Italian Banks: Credit and Sovereign Bond Risks

European Banks: Dividends in a Time of Crisis

ECB Ruling on Dividends: Weaker Eurozone Banks in the Spotlight

Italian Banks: Dodging The "Low Grade" M&A Bullets, at Least for Now

Italian Banks: Legacy NPL Disposals Drive Returns Recovery

Unicredit (UCG IM) Capital Markets Day - When Its Pays Dividends to Play It Safe

Rotation into Value - More to Come from the Italian Banks, Especially Banco BPM (BAMI IM)

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>The ECB's SREP press release and briefing today served to highlight some positive points on capital, credit quality but also the challenges in governance and profitability</li>
<li>Part of the capital requirement will be composed of non-CET1 capital going forward which, along with the unchanged SREP capital requirement outcome,  signals the end of ECB's ratcheting of capital rules post-GFC </li>
<li>Credit quality is improving, with the stock of NPLs at Eurozone banks having nearly halved since 2014; we believe that there is more to come with Italian banks especially continuing their de-risking efforts effectively</li>
<li>Profitability remains challenged by negative interest rates; yet we highlight three of our preferred names among the Italian banks - <a href="https://www.smartkarma.com/entities/unicredit-spa" target="_blank" data-smartkarma-citation="entities:21234:1" rel="noopener">UniCredit SpA (UCG IM)</a>, along with <a href="https://www.smartkarma.com/entities/banco-bpm-spa" target="_blank" data-smartkarma-citation="entities:28121:1" rel="noopener">Banco BPM SpA (BAMI IM)</a> and <a href="https://www.smartkarma.com/entities/banca-popolare-dell-emilia-rom" target="_blank" data-smartkarma-citation="entities:21165:1" rel="noopener">Banca Popolare Dell'Emilia Rom (BPE IM)</a>
</li>
<li>These banks have put in place clear "self-help" plans, and are delivering on de-risking, non-core disposals and cost-cutting to offset market-driven headwinds to returns; in addition, they trade on attractive PBV ratios to their ROEs</li>
<li>Risks to our bullish thesis include worse than expected credit growth, worsening credit quality and political opposition to rationalization of branches and workforce</li>
</ul>


The ECB's SREP press release and briefing today served to highlight some positive points on capital, credit quality but also the challenges in governance and profitability
Part of the capital requirement will be composed of non-CET1 capital going forward which, along with the unchanged SREP capital requirement outcome,  signals the end of ECB's ratcheting of capital rules post-GFC 
Credit quality is improving, with the stock of NPLs at Eurozone banks having nearly halved since 2014; we believe that there is more to come with Italian banks especially continuing their de-risking efforts effectively
Profitability remains challenged by negative interest rates; yet we highlight three of our preferred names among the Italian banks - UniCredit SpA (UCG IM), along with Banco BPM SpA (BAMI IM) and Banca Popolare Dell'Emilia Rom (BPE IM)

These banks have put in place clear "self-help" plans, and are delivering on de-risking, non-core disposals and cost-cutting to offset market-driven headwinds to returns; in addition, they trade on attractive PBV ratios to their ROEs
Risks to our bullish thesis include worse than expected credit growth, worsening credit quality and political opposition to rationalization of branches and workforce


유럽 은행: ECB SREP - 수익성 어려움에도 불구하고 대차대조표 개선