
- NatWest reported a higher-than-expected pretax operating profit of GBP 1.81 billion, surpassing the estimate of GBP 1.56 billion.
- The bank’s retail banking operating profit was GBP 750 million, exceeding the anticipated GBP 656.5 million.
- Net income for the quarter stood at GBP 1.25 billion, above the predicted GBP 1.06 billion.
- Return on tangible equity was 18.5%, compared to the estimate of 15.9%.
- Customer deposits reached GBP 434.6 billion, slightly higher than the forecasted GBP 433.91 billion.
- The Common Equity Tier 1 ratio was 13.8%, ahead of the 13.6% estimate.
- The adjusted cost to income ratio improved to 48.6%, better than the estimated 53.2%.
- Operating expenses were lower than expected, at GBP 1.98 billion against an estimate of GBP 2.09 billion.
- Total income was GBP 3.98 billion, surpassing the forecast of GBP 3.82 billion.
- Retail Banking’s total income was GBP 1.54 billion, exceeding the anticipated GBP 1.5 billion.
- Private Banking total income reached GBP 265 million, above the expected GBP 259.3 million.
- Net interest income was GBP 3.03 billion, surpassing the estimate of GBP 2.98 billion.
- Commercial & Institutional net interest income stood at GBP 1.46 billion, higher than the forecasted GBP 1.4 billion.
- Non-interest income was GBP 954 million, outpacing the expected GBP 847.1 million.
- The provision for loan losses was GBP 189.0 million, which was above the estimate of GBP 172.3 million.
- The net interest margin was slightly above expectations at 2.27%, compared to the estimated 2.25%.
- NatWest plans to pay ordinary dividends of around 50% of attributable profit from 2025 and will consider share buybacks as appropriate.
- The bank achieved its goal of providing Β£100 billion in climate and sustainable funding and financing between July 2021 and the end of 2025.
- It remains committed to its full-year cost guidance.
- The stock has 16 buy recommendations, 5 holds, and 1 sell according to analysts.
“`
A look at NatWest Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to the Smartkarma Smart Scores, NatWest Group has a positive long-term outlook. With high scores in Dividend, Growth, and Momentum, the company is positioned well for future success. The strong momentum indicates a favorable market perception and potential for continued growth.
NatWest Group plc, a banking and financial services company, offers a range of services including personal and business banking, consumer loans, mortgages, credit cards, and insurance. With its solid performance in key areas like Dividend and Growth, NatWest Group appears to be a reliable investment choice with promising prospects ahead.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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