Analyst Ratings January 27, 2026

Jefferies Starts ING Coverage With Hold, EUR27 Price Target Citing Digital Competition and Limited Catalysts

Analyst flags rising digital challengers and management changes even as earnings and buybacks beat expectations

By Nina Shah ING
Jefferies Starts ING Coverage With Hold, EUR27 Price Target Citing Digital Competition and Limited Catalysts
ING

Jefferies has begun coverage of ING with a Hold rating and a EUR27.00 price target, noting intensifying competition from digital-only banks and a reduced strategic edge from ING's capital position. The bank recently reported quarterly results above forecasts and is progressing a €1.1 billion buyback program, repurchasing nearly 19.2 million shares to date.

Key Points

  • Jefferies begins coverage of ING with a Hold rating and a EUR27.00 price target; ING trades at a P/E of 14.9, which analysis views as relatively low versus near-term earnings growth potential.
  • Analyst flags rapid scaling of digital-only competitors that are pressuring deposit pricing, client acquisition costs, and fee momentum, particularly in fragmented or digitally immature markets - impacting the banking and fintech sectors.
  • ING reported third-quarter 2025 EPS of $0.70 and revenue of $6.88 billion, both above forecasts, and continues its €1.1 billion share buyback program, having repurchased roughly 19.18 million shares to date.

Jefferies has initiated coverage on ING with a Hold rating and set a price objective of EUR27.00. The research house highlighted that ING currently trades at a price-to-earnings multiple of 14.9, a level described by platform analysis as relatively modest when weighed against the bank's near-term earnings growth prospects.

The brokerage's assessment emphasizes mounting competitive pressure from digital-only entrants across several important markets. Jefferies said the threat is most acute in markets that are fragmented or have lagged in digital development, where new players have been able to scale quickly and chip away at ING's previous lead in digital services.

According to Jefferies, the rise of these challengers is starting to affect core revenue drivers at ING. The firm identified pressure points including deposit pricing, rising client acquisition costs, and a slowdown in fee momentum as new entrants attract customers and reshape pricing dynamics.

On capital, Jefferies noted that ING's balance sheet remains solid, but it no longer provides the same strategic advantage it once did. The analyst argued that ING's capital strength is less of a differentiator now, particularly when compared with banks that display clearer and more predictable paths for excess capital generation.

Several factors underpinned Jefferies' decision to issue a Hold rating. The firm pointed to a relatively limited set of catalysts, ING's ongoing exit from Russia, and an imminent management change with the chief financial officer scheduled to step down in April. Jefferies also highlighted that the stock trades roughly in line with peers at 1.5x price-to-tangible-book value, with an estimated 15% return on tangible equity by 2028.


Separate company disclosures show that ING Group NV ADR recently outperformed expectations for the third quarter of 2025. Reported earnings per share were $0.70, above the consensus of $0.65, while revenue came in at $6.88 billion versus an anticipated $6.51 billion. Those results translate to a 7.69% surprise on EPS and a 5.68% beat on revenue.

ING also reiterated its €1.1 billion share buyback program. During the week of January 5-9, 2026, the bank repurchased 1,463,534 shares at an average price of €24.30 per share. Cumulatively, ING has bought back 19,184,772 shares, representing approximately 39.69% of the maximum total value of the program.

These operational and capital actions underscore management's continued focus on shareholder returns even as external competitive and structural challenges shape the firm’s outlook.

Risks

  • Rising competition from digital-only entrants that could erode ING’s digital advantage and weaken margins, affecting the broader banking and fintech sectors.
  • Management transition risk as the CFO is due to step down in April, which could create near-term strategic or executional uncertainty for ING and impact investor confidence in the financial sector.
  • Ongoing exit from Russia, a process cited by Jefferies as a factor contributing to fewer near-term catalysts and potential operational or strategic disruption for the bank.

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