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NatWest Group PLC NWG

Morningstar Rating
GBX 314.80 −5.70 (1.78%)
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Company Report

NatWest: Acquiring Unsecured Loan Portfolio From Sainsbury

Natwest purchased Sainsbury's' retail banking assets and liabilities in a deal that follows a similar transaction between Barclays and Tesco in February this year. The deal is small relative to Natwest's total balance sheet, but it does help the bank increase its exposure in credit cards (GBP 1.1 billion, up 19%) and unsecured personal loans (GBP 1.4 billion, up 15%) where it is lagging peers Barclays and Lloyds. Natwest will receive GBP 125 million at the completion of the deal targeted for the first quarter of 2025. Similar to Tesco, Sainsbury has opted to retain its commission fee businesses including insurance, travel money and ATMs as these businesses are typically less capital intensive.

Price vs Fair Value

NWG is trading at a 396% premium.
Price
GBX 320.50
Fair Value
GBX 564.00
Uncertainty
Medium
1-Star Price
GBX 975.00
5-Star Price
GBX 114.00
Economic Moat
Zmzw
Capital Allocation
Xgff

Bulls Say, Bears Say

Bulls

NatWest operates a strong retail and commercial banking franchise in the U.K.

Bears

NatWest's net interest margin has likely peaked.

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News

Trading Information

Previous Close Price
GBX 320.50
Day Range
GBX 314.20322.60
52-Week Range
GBX 168.00329.80
Bid/Ask
GBX 295.00 / GBX 320.00
Market Cap
GBX 2.62 Tril
Volume/Avg
134.6 Mil / 35.2 Mil

Key Statistics

Price/Earnings (Normalized)
5.80
Price/Sales
2.00
Dividend Yield (Trailing)
5.30%
Dividend Yield (Forward)
5.30%
Total Yield
14.37%

Company Profile

NatWest Group derives around 90% of its total income from the United Kingdom. The bank operates a retail, commercial, and private bank in the U.K., offering clients lending and payment services as well as asset management services.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
61,800

Competitors

Valuation

Metric
NWG
LYG
BCS
Price/Earnings (Normalized)
5.807.485.90
Price/Book Value
0.820.740.55
Price/Sales
2.001.911.33
Price/Cash Flow
4.253.361.63
Price/Earnings
NWG
LYG
BCS

Financial Strength

Metric
NWG
LYG
BCS
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
NWG
LYG
BCS
Return on Assets (Normalized)
1.99%0.87%0.42%
Return on Equity (Normalized)
42.62%16.66%11.47%
Return on Invested Capital (Normalized)
Return on Assets
NWG
LYG
BCS
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