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Jupiter’s Guy de Blonay: How I am playing banks’ great restructuring
by Elsa Buchanan on Sep 17, 2013 at 07:03
His most successful holding has been UBS, after the bank saw a 50% share price rerating having announced it wanted to derive 80% of its revenue from private banking.
Geographically, he is favouring smaller banks in Switzerland. ‘Because they are shedding their investment banks, cash will be flowing out to shareholders,’ he said, adding payouts could reach up to CHF100 billion (£68 billion). ‘Those stocks will rise north of three times book.’
De Blonay’s Swiss exposure includes Banque Cantonale Vaudoise, which offers a 12% RoE, has a payout ratio of 85% and yields over 7%.
‘These Swiss banks are not investing abroad through acquisitions, and you feel very comfortable with their type of long book [lawyers and accountants etc].’
Looking forward, de Blonay says an improvement in asset quality will translate into a further boost to earnings to come from Europe, the US and the UK.
On the back of prime minister Shinzo Abe’s monetary policy, de Blonay also anticipates Japan will outperform, but it is a question of being able to ‘get in at the right time’.
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On the road
by Danielle Levy on Dec 04, 2013 at 11:37