- NatWest’s pretax operating profit for the 1Q was GBP 1.33 billion, which is higher than the estimated GBP 1.28 billion.
- Commercial & Institutional operating profit was GBP 769 million, falling short of the estimated GBP 792.1 million.
- Retail Banking operating profit was GBP 489 million, slightly less than the estimated GBP 504.3 million.
- Net income was GBP 918 million, beating the estimate of GBP 851.9 million.
- Return on tangible equity stood at +14.2%, surpassing the estimate of +13.2%.
- Common equity Tier 1 ratio was 13.5%, almost meeting the estimated 13.6%.
- Operating expenses were higher than expected at GBP 2.05 billion, compared to the estimated GBP 1.99 billion.
- Total income was GBP 3.48 billion, beating the estimate of GBP 3.42 billion.
- Retail Banking total income matched the estimate at GBP 1.33 billion.
- Private Banking total income was GBP 208 million, slightly more than the estimate of GBP 207.6 million.
- Commercial & Institutional total income was GBP 1.86 billion, which is lower than the estimated GBP 1.89 billion.
- Net interest income was GBP 2.65 billion – a beat to the estimated GBP 2.56 billion.
- Commercial & Institutional net interest income was at GBP 1.25 billion, higher than the estimate of GBP 1.24 billion.
- Non-interest income was GBP 824 million, lower compared to the estimated GBP 866.1 million.
- NatWest have provided GBP 68.5 billion for their climate and sustainable funding target of GBP 100 billion, which is to be completed by end of 2025.
- They aim to become simpler, more productive and easier to deal with.
- NatWest noted improved customer confidence and activity, along with low impairments.
- The bank aims to generate returns to support customers, invest in the business, and provide attractive distributions to shareholders.
- Current opinion on NatWest’s shares is: 13 buys, 7 holds, 1 sell.
A look at NatWest Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.2 |
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 is positioned favorably for the long-term. With strong scores in Dividend, Growth, and Momentum, the company shows promise for investors seeking stable returns and potential for growth. While Resilience lags behind, the overall outlook remains positive due to high ratings in key areas.
NatWest Group plc, a leading banking and financial services company, offers a wide range of services to individuals and businesses globally. With a focus on value, dividends, growth, and momentum, NatWest Group presents an attractive investment opportunity for those looking to benefit from a well-rounded financial entity with a proven track record in the industry.
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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