Analyst Note| Niklas Kammer, CFA |
No-moat NatWest Group reported third-quarter operating profit before tax of GBP 1.07 billion, comfortably ahead of consensus estimates collected by NatWest itself of GBP 0.68 billion. However, this beat was partially driven by one-offs in noninterest income. Loan-loss reversals of GBP 242 million versus an expected loss of GBP 40 million by analysts collectively also helped. We plan to update our model shortly but don’t expect a material change to our GBX 230 per-share fair value estimate. Our no moat rating is unchanged.