ING Groep added to JPMorgan preferred banking stocks list

JPMorgan has added ING Groep to its list of preferred banking stocks in a recent sector report. The American investment bank highlighted ING due to its attractive price-to-earnings ratio of 8.8 and a projected return on equity of 19 percent by 2028.

Analysts noted that ING is achieving strong results through a strategy of profitable growth, particularly within the retail markets in the Netherlands and Germany. JPMorgan suggests that investors have not yet priced in the expected rise in interest income from the replication portfolio, stable deposits, and the bank's ability to adjust interest rates. Consequently, the net interest margin is projected to rise from 107 basis points in the second quarter of this year to 129 basis points by 2028.

While JPMorgan maintains an 'Overweight' rating on ING, it issued a 'Neutral' rating for ABN AMRO. Although both Dutch banks are expected to see earnings per share growth of 18 to 20 percent between 2025 and 2028, analysts prefer ING because its potential for interest income growth remains underestimated compared to ABN AMRO.