The Hits Keep Coming For ING

Dutch multinational bank ING Groep (ING) had already been testing investors’ patience for a while, as the bank has struggled to meet cost targets and offset widely-known rate pressures across its business. While fourth quarter results do hint at stabilization in the business, the subsequent announcement that the CEO Ralph Hamers was leaving for greener pastures at UBS (UBS) was yet another challenge that the company, the stock, and the shareholders really didn’t need.

There’s only so many times you can make a “just be patient, it’ll get better” call on a name, and ING is arguably past that point. With the shares lagging the broader European bank sector over the last couple of years, this has been a bad call. What’s more, this recent market correction has brought many banks down to more interesting valuations, so investors have plenty of choices now. ING still looks undervalued, but it’s likely going to take beat-and-raise quarters before sentiment shifts, and nothing about the macro environment suggests that’s particularly likely.

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The Hits Keep Coming For ING