Tuesday, June 2, 2015

Seeking Alpha: ING Has Been Executing To Plan And Reaping The Rewards

A lot of European banks have laid out detailed plans for improving their cost base, stimulating loan growth, and generally restructuring their operations in the direction of better long-term sustainable profitability. There's a reason, though, that ING's (NYSE:ING) shares are up almost 20% since my last article on the company ("ING Groep NV Looks Significantly Undervalued Today") and well ahead of Euro peers like Societe Generale (OTCPK:SCGLY), UniCredit (OTCPK:UNCFF), BNP Paribas (OTCQX:BNPQY), HSBC (NYSE:HSBC) and Santander (NYSE:SAN) - they're actually doing it!

In point of fact, ING shares have been even stronger than the nearly 20% gain from the ADRs would suggest, as currency moves have blunted the 45% move in the local shares. I mention that mostly as reminder that currency moves can give or take, and investors have to keep them in mind. At this point I am no longer as bullish on ING share. I think this is an excellent bank and I think the strategy that management has used to such good effect in Germany can be replicated elsewhere, but I just don't see the level of undervaluation that would make this an exciting buy as opposed to a solid long-term holding.

Follow this link for the full article:
ING Has Been Executing To Plan And Reaping The Rewards

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