ING vs KBC

Long ING, Short KBC

Like this spread from a chart perspective and fundamentally

ing

KBC is fully valued and has limited upcoming catalysts

ING has been unjustly hit on Russian exposure. However they have limited ruble exposure as most loans are in USD and EUR and the loan book is high quality corporate

ING Results 11th Feb to be a positive catalyst

Most of the restructuring is done which many will see as the end of the road for positive self help catalysts. The IPO of NN Group was the final major step in the restructuring plan

However importantly due to the restructuring and disposals they have now payed back the last tranche of state aid. This opens up the resuming of dividend payments in 2015

We expect to see good earnings growth and potential dividend resumption as positive catalysts at the upcoming numbers

Looking for 10% on the spread (0.25 on the CIX)