ABI HELPED BROKERAGE CLIENT TO RAMP UP EQUITY RESEARCH COVERAGE IN MENA
A leading brokerage house in Europe wanted to ramp up its Banking sector coverage in the MENA region
Scope Of Work
The client needed a ready to deploy team with deep expertise in Equity Research in Banking sector to ramp up its coverage.
The specific scope of the work included:
- Initiation on Banking Sector with 12 regional banks
- Deep-dive industry and company analysis
- In-depth sector mode and individual banking models from scratch
- Financial projections and valuation of the banks
- Write end to end initiation reports
- ABI deployed an experienced team of 3 analysts, each with robust experience in banking sector equity research
- ABI team carried out thorough MENA banking sector research and identified economic conditions, sector drivers, industry structure and key challenges
- The team modelled sector banking model for different countries
- The team then carried out in-depth analysis on each of the bank to understand business portfolio, market positioning, management strength, financial condition including NPA, Capital adequacy, and exposure to various sectors and loans/Deposits situation.
- ABI analysts then created in-depth models on each of the banks and quantified all the analysis by forecasting income statement and balance sheet of the banks.
- Post that, analysts carried out valuation of the stock using Discounted Cash Flows, Dividend Discount Model and Relative Valuation Model (P/BV and P/E)
- The analysts then wrote comprehensive report covering sector fundamentals and report on each of the companies with valuation and rating justification.
- Time-efficient as experienced analysts work on the assignment and client could quickly ramp up the coverage without adding extra capacity at its end.
- Continuous communication and discussion on interim deliverable meant that the entire team was aligned with the same objective as that of client
- ABI also delivered marketing presentation slides for the consideration of the research committee and investors
- The client also leverages our domain experts – as and when needed – on project basis thereby maintaining a lean and cost-effective structure
- Focus on data-security and well-defined access structure keeps the data and information security as the same level as is found in the internal team