NatWest Group PLC

NWG: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 381.00	Dtr	Vcdb

NatWest Earnings: Good Quarter, but Net Interest Margin Outlook Remains Complex

Niklas Kammer

May 2, 2023

No-moat NatWest reported an overall good first quarter. Return on tangible equity of 19.8% can hardly be seen in a different light. Yet, flat net interest income quarter over quarter and uncertainty around deposit volumes and increasing pass-through rates while base rates are likely to continue to increase for the remainder of the year dampened enthusiasm on NatWest’s outlook. We maintain our fair value estimate of GBX 300 per share.

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