Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Victor Galliano is an experienced equity banks analyst, having covered Latin America banks and non-bank financials for over 12 years, as well as more recently covering the Italian banks. He has worked in sell side equity research for 30 years in a career spanning Barclays, HSBC, BBVA LatInvest, Barings and NatWest.
Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.
The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Financials & FinTech research

Chile in the Spotlight - Banking on an Inflation Boost

Bradesco (BBDC4 BZ) PBV Discount to Itaú Unibanco (ITUB4 BZ) Set to Narrow

Brazil's Big Three Listed Banks - Margins, Spreads and Lower Benchmark Rates in Charts

Falabella - Quality Retailer, with Leading Consumer Finance Operations in Its Core Countries

EM Cross-Border Capital Inflows Collapse: Investor Turn ‘Risk-Off’

Ripley Corp's Banking Business Dominates the Group's Market Valuation

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/itau-corpbanca" target="_blank" data-smartkarma-citation="entities:27602:1">Itau CorpBanca (ITAUCORP CI)</a> is starting to deliver on its turnaround</li>
<li>The challenge, in both Chile and Colombia, is that Itaú Corpbanca is in the tricky middle</li>
<li>It is neither one of the big banks, nor a specialist lender, so it needs first class execution to deliver improved returns</li>
<li>Core capital is tight, especially once Colombian bank minorities are bought out, which also limits the dividend outlook</li>
<li>Capital IQ's consensus ROE forecasts for 2020 point to 10% plus; our more conservative estimates indicate a 2020 ROE of c8%</li>
<li>On a PBV ratio of under 1x, Itaú Corpbanca screens as good value but needs to produce much improved returns to avoid falling into the value trap</li>
</ul>



Itau CorpBanca (ITAUCORP CI) is starting to deliver on its turnaround
The challenge, in both Chile and Colombia, is that Itaú Corpbanca is in the tricky middle
It is neither one of the big banks, nor a specialist lender, so it needs first class execution to deliver improved returns
Core capital is tight, especially once Colombian bank minorities are bought out, which also limits the dividend outlook
Capital IQ's consensus ROE forecasts for 2020 point to 10% plus; our more conservative estimates indicate a 2020 ROE of c8%
On a PBV ratio of under 1x, Itaú Corpbanca screens as good value but needs to produce much improved returns to avoid falling into the value trap


Itau CorpBanca

Itaú Corpbanca - Stuck in the Middle