EM Digital Banks
Report by Galliano's Financials Research
Victor Galliano turns bullish on KakaoBank, for its increasingly secure competitive positioning in Korea, its attractive digital efficiency ratio, its low customer acquisition cost and for its high activity rate. He switches his Buy rating from Banco Pan to Inter as the latter has improved operationally, it is sound on capital and attractive on valuations. While Nubank is executing well, Victor remains cautious on the stock as he continues to see potential capital constraints as a key risk, along with its stretched valuations.