ING Groep to Grow Mid-Term Income, Return on Equity
The group guided for its total income to grow at a compound annual growth rate of between 4% and 5% in the 2024 to 2027 period
ING Groep INGA -1.47%decrease; red down pointing triangle expects to grow its income and for its return on equity to rise in the mid-term, the Dutch lender said as it laid out its financial targets to 2027.
The bank guided for a return on equity—a profitability measure calculated by dividing a company’s net income by its shareholders’ equity—of 14% for the period, beating analyst expectations of 13.6% taken from a company-compiled consensus. This is above its previous target to reach a return of 12% by 2025.
The group guided for its total income to grow at a compound annual growth rate of between 4% and 5% in the 2024 to 2027 period, which compares with 3% growth it targeted for the 2021 to 2025 period. It also expects to make 5 billion euros ($5.35 billion) in fee income by 2027, it said Monday ahead of its capital markets day.
It forecasts a cost income ratio in the 52% to 54% range by 2027 while consensus stands at 53.6%, it added.
ING also reiterated its common equity tier 1 ratio target of around 12.5% by the end of 2025.
“We increase capital allocation to our retail business while focusing on growth combined with improving capital efficiency in wholesale banking”, the lender said.