ING is targeting total income growth of between 4% and 5% per year in 2024 to 2027, the largest Dutch lender by assets said in a statement on Monday ahead of its capital markets day event.

The group, which has a market capitalization of €52.8 billion ($56.51 billion), said it is also aiming for fee income of €5 billion and a return on equity of 14% over the same period.

ING, whose operating arm ING Bank provides banking services in more than 40 countries, said it would continue focusing on expanding its retail business. It aims to have risk-weighted assets (RWA) in the sector of 50% to 55% by 2027. The group added it would prioritize local scale in retail banking and build wholesale banking as a separate pillar.

In the first quarter, ING saw an income increase from its retail banking unit, boosted by higher fee income for both daily banking and investment products.

The bank announced it aimed to deliver €1 billion of additional fee income by 2027, notably through growing its customer base.

ING said it expects the inflationary impact to exceed headline inflation due to delayed effects of collective labor agreements. Regulatory costs in 2025 are expected to be flat compared with 2024 and, as of 2026, to grow in line with deposit volumes. — Reuters