By Elena Vardon

ING Groep 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.

Its 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.

Write to Elena Vardon at

(END) Dow Jones Newswires

06-17-24 0140ET