The Client

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 Solution

  • 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.

Engagement Benefits:

  • 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