- NatWest’s pretax operating profit for Q2 is GBP 1.77 billion, surpassing the estimated GBP 1.65 billion.
- Commercial & Institutional operating profit at GBP 964 million exceeded the estimate of GBP 952.1 million.
- Retail Banking operating profit stands at GBP 735 million, above the projected GBP 721.8 million.
- Private Banking operating profit reached GBP 102 million, significantly higher than the estimated GBP 83.3 million.
- Net income is reported at GBP 1.24 billion, exceeding expectations of GBP 1.1 billion.
- Return on tangible equity is at +17.7%, outperforming the estimate of +16.1%.
- Customer deposits lag slightly behind with GBP 436.8 billion compared to the anticipated GBP 439.16 billion.
- The Common Equity Tier 1 ratio is 13.6%, marginally below the estimated 13.7%.
- Adjusted cost to income ratio improves to 49.1%, better than the expected 50.2%.
- Operating expenses are lower at GBP 2.04 billion compared to the estimate of GBP 2.1 billion.
- Total income recorded is GBP 4.01 billion, stopping the projected GBP 3.96 billion.
- Non-interest income was up to GBP 911 million against a forecast of GBP 864.7 million.
- Provision for loan losses is reported at GBP 193.0 million, better than the expected GBP 228.2 million.
- The company announced an upgraded income and returns guidance for 2025.
- NatWest plans to pay ordinary dividends of around 50% of attributable profit from 2025, alongside a GBP 750 million share buyback.
- The net interest margin is slightly below expectations at 2.28% compared to the estimated 2.31%.
- The bank is committed to climate and sustainable funding, having exceeded its target by providing GBP 110.3 billion by mid-2025.
- NatWest declared a 9.5 pence interim dividend per share for 2025 and announced a share buyback programme of GBP 750 million.
- Total distributions announced in the first half of 2025 amount to GBP 1.5 billion.
- Current investor ratings include 15 “buys”, 5 “holds”, and 1 “sell”.
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NatWest Group on Smartkarma
Analysts on Smartkarma, such as Behind the Money, are closely covering NatWest Group, formerly known as RBS. In a recent report titled “The end of the UK’s ‘bailout era’“, Behind the Money discusses NatWest’s transition from government ownership back to private ownership. This shift is seen as a positive development, signaling a new chapter for the company. The report highlights the impact of NatWest being owned by the UK government for 17 years, which affected public spending and placed a burden on taxpayers.
Behind the Money‘s analysis sheds light on NatWest’s history, including its aggressive expansion, risky acquisitions, and exposure to toxic assets. The UK government intervened with a £45.5 billion bailout, acquiring an 84% stake in the bank to prevent its collapse in 2008. The sentiment of the report leans bearish, indicating potential challenges ahead for NatWest Group despite its return to private ownership. This insightful research provides investors with valuable background and analysis on NatWest’s journey from government bailout to the present day.
A look at NatWest Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
Based on the Smartkarma Smart Scores, NatWest Group shows strong ratings across the board with scores of 4 in Value, Dividend, Growth, Resilience, and Momentum. This indicates a positive outlook for the banking and financial services company in the long term. A score of 4 across all key factors suggests that NatWest Group is well-positioned to continue providing value to investors, maintain its dividend payouts, achieve sustainable growth, show resilience in challenging times, and exhibit positive momentum.
NatWest Group plc, operating as a banking and financial services company, offers a wide range of services including personal and business banking, consumer loans, mortgages, credit cards, and insurance products to clients globally. With strong Smart Scores in various aspects, NatWest Group seems poised for future success in the financial industry, drawing attention from investors looking for a company with solid fundamentals and growth potential.
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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