NatWest Group (NWG) AI Stock Analysis

Compare

560 Followers

Top Page

NatWest Group

(NYSE:NWG)

Rating:82Outperform

Price Target:

$18.00

▲(28.94% Upside)

NatWest Group's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock's high score. The technical analysis supports a bullish outlook, while the valuation indicates the stock is attractively priced. The absence of notable corporate events does not detract from the overall positive assessment.

NatWest Group (NWG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$54.69B

Dividend Yield4.62%

Average Volume (3M)3.53M

Price to Earnings (P/E)9.0

Beta (1Y)0.99

Revenue Growth10.03%

EPS Growth29.51%

CountryUS

Employees59,400

SectorFinancial

Sector Strength78

IndustryBanks - Diversified

Share Statistics

EPS (TTM)0.41

Shares Outstanding4,037,028,800

10 Day Avg. Volume3,368,843

30 Day Avg. Volume3,525,672

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.00

Enterprise Value/Revenue2.14

Enterprise Value/Gross Profit3.60

Enterprise Value/Ebitda7.08

Forecast

1Y Price Target

$18.00

Price Target Upside28.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

NatWest Group Business Overview & Revenue Model

Company DescriptionNatWest Group (NWG) is a leading banking and financial services organization based in the United Kingdom. It operates primarily in the retail and commercial banking sectors, offering a wide range of core products and services, including personal banking, business banking, corporate banking, and wealth management. NWG serves millions of customers through its various brands, including NatWest, Royal Bank of Scotland, and Ulster Bank, providing services such as loans, mortgages, accounts, insurance, and investment solutions.

How the Company Makes MoneyNatWest Group generates revenue through several key streams, primarily from interest income and non-interest income. Interest income is earned from loans and advances to customers, including personal loans, mortgages, and business loans, where the bank charges interest on the borrowed amounts. Non-interest income is derived from fees and commissions from various banking services, such as account maintenance fees, transaction fees, investment management fees, and insurance premiums. The bank also benefits from treasury operations and foreign exchange services. Additionally, partnerships with fintech companies and other financial institutions enhance its service offerings and customer reach, contributing to its overall earnings.

NatWest Group Key Performance Indicators (KPIs)

Any

Operating Profit by Segment

Operating Profit by Segment
Highlights the profitability of each business unit, indicating which segments are driving earnings and where there might be challenges or opportunities for growth.

Chart InsightsNatWest Group's Retail Banking and Commercial & Institutional segments have shown resilience, with consistent operating profit growth. Retail Banking remains a strong performer, while Commercial Banking has stagnated since mid-2022. The earnings call highlights a successful acquisition of Sainsbury's Bank, boosting customer accounts and lending, which could enhance future profitability. However, potential regulatory impacts and economic uncertainties pose risks. The bank's updated 2025 guidance reflects optimism, expecting income and returns at the upper end of their ranges, despite anticipated higher operating expenses.

Data provided by:

Main Street Data

NatWest Group Earnings Call Summary

Earnings Call Date:Jul 25, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 24, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong financial performance with significant income growth and a strategic exit from government ownership. The bank demonstrated robust customer growth and increased shareholder returns through dividends and buybacks. However, there were challenges related to competitive deposit pressures and ongoing cost management. The sentiment is positive overall, as highlights outweigh the lowlights, with a focus on future growth and strategic initiatives.

Q2-2025 Updates

Positive Updates

Government Ownership Exit

NatWest Group is now privately owned for the first time in 17 years, attracting new investors and driving growth.

Strong Financial Performance

Income grew 13.7% to GBP 8 billion, costs reduced by 1.4% to GBP 3.9 billion, with operating profit at GBP 3.6 billion and attributable profit at GBP 2.5 billion.

Increased Dividend and Share Buyback

Announced an interim dividend of 9.5p, up 58%, and a new share buyback of GBP 750 million, bringing total distributions to GBP 1.5 billion.

Customer Growth and Expansion

Attracted over 100,000 new customers through organic growth and completed the Sainsbury's transaction, adding 1 million customers.

Mortgage and Lending Growth

Retail Banking lending grew by 3%, with a 4% increase in mortgage application share and a 2% growth in Commercial & Institutional lending.

Climate and Sustainable Finance

Announced a new target to deliver GBP 200 billion of climate and transition finance by 2030.

Technological Advancements

Strategic collaboration with AWS and Accenture to modernize data capabilities and enhance customer engagement.

Negative Updates

Deposit Challenges

Faced competitive pressures during the ISA season, with some loss of current accounts.

Continued Cost Management Efforts

Operating expenses are expected to be around GBP 8.1 billion, with further business transformation and integration costs anticipated.

Regulatory and Economic Uncertainty

Acknowledgement of potential impacts from prudential reviews and macroeconomic challenges, including rate cuts and regulatory changes.

Company Guidance

During the recent earnings call for NatWest Group, the company shared several key metrics highlighting strong financial performance in the first half of 2025. Customer lending increased by 3.2% to GBP 384 billion, while customer deposits rose by 1% to GBP 436 billion. Assets under management and administration grew by 5.9% to GBP 52 billion. The group's income surged by 13.7% to GBP 8 billion, and costs decreased by 1.4% to GBP 3.9 billion, resulting in an operating profit of GBP 3.6 billion and an attributable profit of GBP 2.5 billion. Return on tangible equity reached 18.1%, and earnings per share climbed 28% to 31p. The bank declared an interim dividend of 9.5p, up 58%, and TNAV per share grew by 16% to 351p, with a stable CET1 ratio of 13.6%. The company announced a GBP 750 million share buyback, bringing total shareholder distributions to around GBP 1.5 billion for the first half. NatWest also upgraded its 2025 guidance, expecting income to exceed GBP 16 billion and return on tangible equity to be above 16.5%.

NatWest Group Financial Statement Overview

Summary

NatWest Group exhibits a solid financial foundation with a strong equity position and improving cash flow. Despite some volatility in profitability and cash management, the company's consistent revenue and equity growth provide a robust base for future performance.

Income Statement

Positive

NatWest Group's income statement reveals moderate financial health with a solid gross profit margin, but the net profit margin has shown fluctuations due to varying net income over the years. The revenue growth rate is relatively stable, indicating consistent business operations. However, the absence of recent EBIT and EBITDA data limits a comprehensive profitability assessment.

Balance Sheet

Positive

The balance sheet demonstrates strong equity with a favorable equity ratio and zero total debt in the latest period, reducing financial risk. The return on equity is robust, indicating effective use of equity in generating profits. The consistent increase in stockholders' equity highlights a stable financial position, but the high total liabilities warrant attention.

Cash Flow

Positive

Cash flow analysis shows improvements, with positive free cash flow in the latest year after previous deficits, indicating better cash management. The operating cash flow to net income ratio suggests that cash earnings are catching up with accounting earnings, yet historical fluctuations in cash flows present potential volatility concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.52B	28.57B	14.17B	12.98B	11.75B	7.69B
Gross Profit	15.20B	14.65B	14.17B	12.98B	11.75B	10.80B
EBITDA	7.73B	7.25B	7.12B	6.00B	4.77B	361.00M
Net Income	5.17B	4.80B	4.64B	3.59B	3.27B	-372.00M
Balance Sheet
Total Assets	710.03B	707.99B	692.67B	720.05B	781.99B	799.49B
Cash, Cash Equivalents and Short-Term Investments	99.05B	93.05B	104.52B	145.06B	177.76B	124.49B
Total Debt	68.91B	65.92B	38.16B	39.93B	40.20B	9.96B
Total Liabilities	668.42B	668.61B	655.49B	683.56B	740.19B	755.67B
Stockholders Equity	41.59B	39.35B	37.16B	36.49B	41.80B	43.86B
Cash Flow
Free Cash Flow	0.00	694.00M	-14.92B	-44.24B	52.79B	28.72B
Operating Cash Flow	0.00	1.77B	-13.37B	-43.60B	53.69B	29.09B
Investing Cash Flow	0.00	-12.70B	-14.69B	19.06B	3.06B	7.55B
Financing Cash Flow	0.00	-1.89B	-23.52B	-10.65B	-2.60B	90.00M

NatWest Group Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price13.96

Price Trends

50DMA

13.91

Positive

100DMA

13.49

Positive

200DMA

11.94

Positive

Market Momentum

MACD

0.25

Positive

RSI

41.64

Neutral

STOCH

14.07

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWG, the sentiment is Neutral. The current price of 13.96 is below the 20-day moving average (MA) of 14.65, above the 50-day MA of 13.91, and above the 200-day MA of 11.94, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NWG.

NatWest Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWG	82 Outperform	$54.69B	8.95	13.80%	4.62%	10.03%	29.51%
HSBC	81 Outperform	$218.15B	12.78	10.69%	5.09%	-2.96%	-13.66%
BCS	78 Outperform	$67.21B	9.01	9.83%	2.21%	16.06%	64.31%
BBVA	75 Outperform	$104.06B	9.20	18.32%	4.32%	7.86%	17.13%
ING	75 Outperform	$70.89B	10.99	12.08%	4.89%	1.13%	-1.14%
SAN	74 Outperform	$141.66B	9.89	12.85%	2.44%	-14.74%	17.03%
Sector *	68 Neutral	$17.89B	11.95	10.28%	3.72%	9.74%	1.61%

* Financial Sector Average

Performance Comparison

NWG

NatWest Group

13.96

5.61

67.19%

BBVA

Banco Bilbao

18.13

8.50

88.27%

BCS

Barclays

19.63

8.20

71.74%

HSBC

HSBC Holdings

64.47

23.47

57.24%

ING

ING Groep

23.83

7.01

41.68%

SAN

Banco Santander SA

9.53

4.86

104.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025