ING Group Raises 2027 ROE Target Above 16% as Revenue, AI Drive Growth

ING raised its 2027 return on tangible equity target to above 16% , up from 14%, supported by expected revenue above €26 billion and costs of approximately €13 billion. Revenue growth is being driven by stronger lending, deposits and fee income: ING has added about €100 billion in deposits, annualized lending growth is roughly 8%, and fees are expected to exceed the previous €5 billion target. AI and capital discipline are central to the strategy , with ING using agentic AI in mortgages and chatbots while shifting capital toward retail banking; management remains focused on organic growth and selective bolt-on acquisitions.

ING Group NYSE: ING CEO Steven van Rijswijk said the bank’s improved profitability outlook is being supported by stronger revenue growth, operating scalability and capital discipline, while management remains focused on organic expansion and targeted bolt-on acquisitions. Speaking at an investor event, van Rijswijk said ING has raised its 2027 return on tangible equity target to more than 16%, from the 14% target presented at its 2024 Capital Markets Day. The updated outlook includes revenue above €26 billion by 2027 and projected costs of about €13 billion, roughly €300 million below prior guidance.

Van Rijswijk said ING’s updated targets reflect stronger-than-expected commercial activity. The bank expects an additional €1 billion of revenue compared with its earlier plan, driven by lending and deposit activity. ING has added roughly €100 billion of deposits over the past two and a half years, while year-to-date lending growth annualized at about 8%, he said. Fee income has also developed faster than expected. ING had previously targeted approximately €5 billion of fees by 2027, but van Rijswijk said the bank has already reached that level this year. It now expects an additional €300 million to €500 million in fee growth by 2027.

Despite increased customer and business activity, ING expects to keep expenses under control through shared operational hubs and technology investments. Van Rijswijk cited centralized know-your-customer processes, contact centers, operational processing and the company’s cloud environment as tools that support scalability. Capital management is the third major driver of the higher return outlook, according to the CEO. ING began using significant risk transfers last year after updating models to meet European Central Bank requirements. The bank completed about 12 basis points of risk transfers last year and expects 15 to 20 basis points this year, having completed 4 basis points year to date. ING is also shifting its risk-weighted asset mix toward retail businesses. Van Rijswijk said retail represented 56% of the mix and wholesale banking 44%, exceeding the 55%-45% balance it had targeted for the end of 2027.

Mortgage lending has been a key contributor to retail growth. ING has about €380 billion in mortgages and is among Europe’s largest mortgage lenders, van Rijswijk said. He attributed growth both to housing shortages in several European countries and to ING’s digital mortgage capabilities. In some markets, ING can process straightforward mortgage applications within 30 minutes, he said. In the Netherlands, the bank is using agentic artificial intelligence for more complex applications, reducing processing time from seven days to five days. The bank is concentrating mortgage growth in markets where returns are attractive, including the Netherlands, Germany, Italy and Australia.