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European financial system in the world of huge clouds of dark in some corners of these days a big role. Hi from Ireland's green valleys of the sun-drenched plains of Iberia, the nobles of ancient monuments in Greece, through the Echo stories. The bad news, bad enough to punish bank stocks in these areas, we believe, unnecessarily tarnished the righteous.We believe that market winners and losers, with an eye to European investors a chance to discriminate between the apparent lack of finance.
Spain, Switzerland and United Kingdom: We focused on examples of three countries. We note with some surprise that the banks in these countries face strong headwinds - geographic diversification of banks, UBS of Switzerland and its reputation in Great Britain's Royal Scotland (RBS) bank rescue package from the official damage, lack of popular in Spain and progress because of the collapse - the less risky or less attractive prices in comparison with peers, to their fair value are exempt. We believe that the crisis in Europe, in order to tie in the market anticipates the book value of any discrimination between the companies to close. In our opinion, the market throwing the baby with the bath water, to create opportunities for long-term investors is an example.
Banco Popular in Spain, the Spanish bank is a pure play. With similar discounts, the companies prefer a BBVA or Santander to gain exposure to Latin America will buy. BBVA Bancomer in Mexico's largest bank by assets, the group and well above average for the euro area have increased profitability. For example, 2010, Mexico BBVA unit of 2.3% ROA, and 1% by the entire group, in the first nine months compared with approximately breakeven on the results of several European banks. Also the owner of Santander, big banks, wildly Brazil and Chile, high performance profitable, is maintained during the crisis, although a slower growth and lower profits in the UK in the top exposed, a Spanish over the severe austerity room The company's rescue plan, but leads to a long recession, we believe that the Bank of any of his two cousins ??have varied in a tough road ahead. In the first nine months were up to the third quarter of 2010 Banco Popular only his two cousins, more diverse, with huge losses in Spain, about half of the offers, and we believe that the return to find another apartment.
Credit (CS) Suisse and UBS business, we were surprised to see so closely that Credit Suisse is certainly the most attractive of the two. UBS took excessive risks before the crisis, and unless the cancellation is kept to a minimum, the bank now is the price for their surplus. The private banking cash cow for the first time since the crisis in the third quarter net new assets in order to win, and only a hair's width. We are not surprised to see that this number is negative again. In comparison, Credit Suisse at a steady pace since the first quarter of 2008 has been gaining market share and attract net new assets, and suffered outflows in just three quarters. In addition, we believe that the investment bank Credit Suisse for the better and more regulation, less risk averse environment, with new face, because it's their strategy before the crisis is positioned at a starting point. In contrast, an integrated "one bank" that was acquired by Credit Suisse in 2005 to implement similar strategies at UBS.