ING - ING: Still Too Cheap Despite Disappointing Results

2024-02-02 13:06:16 ET

Summary

• ING has underperformed since prior coverage, with weak Q4 2023 results and 2024 guidance driving a big chunk of that.
• Though net interest income will be weaker than anticipated, the bank should still post solid profitability even assuming modestly lower interest rates and more normal levels of provisioning.
• Relative to tangible book value, these shares are cheaper than when interest rates were zero, which continues to look puzzling given the bank's step-up in profitability.
• Catalysts for a re-rate are admittedly few, though capital returns potential remains compelling through 2025.

ING ( ING ) continues to frustrate. Shares of the Dutch lender are down around 6% since prior coverage , materially underperforming broader European financials following poor Q4 2023 results and guidance....

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