< The 2015 Latin America Research Team

Total appearances: 7

Team debut: 2001UBS advances from runner-up to third place — and posts its first top-three finish on this lineup since 2005. Under the direction of London-based Philip Finch, its three-person squad reports on 22 Latin American banks. The analysts recommend that investors overweight Mexico’s banks, “which are undergoing a cyclical upturn in credit demand,” says Finch, adding that “higher policy rates expected in the coming months should underpin sector earnings and returns over the next few years.” They are also positive on lenders in Peru, where economic expansion appears to be accelerating and the tight industry structure “supports rational pricing behavior and margins,” the team leader notes. On the Brazilian space the group is neutral. “Although the macro outlook has become increasingly uncertain, Brazilian banks have been undergoing considerably positive earnings momentum, underpinned by higher net interest margins,” he explains. “In contrast, we are more cautious in Colombia, where macro growth has been slowing, while higher statutory taxes are undermining sector profitability.” Finch debuted on this roster last year. Since joining UBS in 1997, he has served in a variety of roles leading to his current responsibilities for global banks strategy and Latin America financials coverage. Previously, he worked as an equity analyst tracking banking and property stocks in Thailand and graduated from the U.K.’s Manchester Business School with a master of science degree in business studies. “Besides his deep knowledge of the region,” observes one fan, “Philip’s keen view of the global scenario provides timely insights into what might be developing in the near future.”