Itau Corpbanca: Deep Value Play With Potential For Higher Dividend

Jan. 29, 2023 9:40 AM ETItaú Corpbanca (ITCB)BCH, BSAC, ITUB
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  • The Chilean bank, Itau Corpbanca, is going through a turnaround with improved profitability.
  • The P/B multiple and dividend are both much lower than seen during the better years for the bank that are potentially coming back.
  • Majority owned by Brazilian Itau Unibanco, Itau Corpbanca has both financial support and a motive to pay a large dividend.
  • The stock has been forming a stage one bottom for the past one and a half years.

Santiago de Chilen finanssialue

Alexis Gonzalez/E+ via Getty Images

A recent piece of news led me to look at Chilean stocks and especially banks. According to Bloomberg, investors have pulled out $50 billion out of Chile due to the political turmoil. The country is facing

Highlights selected by the company.

Highlights selected by the company. (Q3 investor presentation.)

Overview of Chilean economy.

Overview of Chilean economy. (Bank of Chile.)

Inflation in Chile.

Inflation in Chile. (

Approximate P/B and ROE by Ycharts.

Approximate P/B and ROE by Ycharts. (Ycharts.)

Quarterly ROE and ROA.

Quarterly ROE and ROA. (Finbox.)

ITCB stock chart.

ITCB stock chart. (Tradingview.)

This article was written by

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My name is Antti Leinonen and I'm a private full-time investor from Finland. I focus on investment ideas about companies that pay a (healthy) dividend while you wait for capital appreciation. I like to see a good company that pays a dividend. The shares of the company are for a temporary reason undervalued compared to its fundamentals, peers, historical levels and/or the market. Technically and fundamentally there needs to be potential and high odds for capital appreciation by foreseeable catalysts. These elements provide a simple filter to invest in companies that reward shareholders in two ways. I often cover HVAC related stocks since that's the industry in which I was professionally involved with before turning into full-time investor.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ITCB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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