Uday Cheruvu of PM Capital spoke exclusively with Livewire about global opportunities in retail banks

Uday Cheruvu of PM Capital spoke exclusively with Livewire about global opportunities in retail banks. When looking at financials our view is that the retail banks have to exist for economies to exist. So you ask, which is the best retail bank? The best retail banks are those that mostly have simple loans such as home loans and credit cards loans. They also have a high deposit base giving them stable and lower cost funding. Put these factors together and PM Capital came up with Wells Fargo. It has low credit cost, a high deposit base and the highest net interest margins of any retail bank. Ultimately, it will be a beneficiary of the financial crisis. When it comes to Aussie banks, however, they are in a different stage of the cycle. Hear why Uday thinks Aussie bank earnings face greater risk.