Healing Transactions At Troubled European Banks: National Bank of Greece (ADR) (NBG)

One thing to keep in mind with Groupo Santander is its international diversification. It operates in the United Kingdom, Europe, Central America, and South America. While owning banks in Europe may not sound like such a great thing, it diversifies the bank away from one of the region’s weakest markets. Moreover, the exposure to Central and South America puts the bank in the heart of a growing region. So, this is not just a rebound play, but also one where growth could easily take center stage.

On to Italy

Italy, like Spain, is another large European Union member that would be hard to let fail. In this market, UniCredit (NASDAQOTH:UNCFF) has begun to streamline its operations to save money and simplify its business. It is bringing together UniCredit S.p.A. of UniCredit Audit S.C.p.A., UniCredit Logistics S.r.l., UniCredit Merchant S.p.A. and UniManagement S.C.r.l. That’s a mouthful of entities, but the outcome should be a more streamlined business. Like the other two companies above, it should be something of a cleansing transaction. Will it turn the Italian banking industry around, no. But it shows that things are moving in the right direction.

Only Aggressive Investors Need Apply

Getting involved in euro zone banks is not something that conservative investors should remotely consider. However, aggressive investors might find it an interesting way to play a European turnaround. None of the above companies should become core holding, but they might be appropriate for fun money

The article Healing Transactions At Troubled European Banks originally appeared on Fool.com and is written by Reuben Gregg Brewer.

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