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NatWest Group PLC ADR NWG

Morningstar Rating
$8.01 +0.12 (1.52%)
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Company Report

NatWest Earnings: Deposits and NIM Stabilizing

NatWest reported first-quarter profits before tax of GBP 1.33 billion, 5% ahead of consensus estimates collected by the bank before the release. Performance in the quarter was good, with net interest margins stable across business units. Deposits have stabilized as retail and private banking deposits' growth of GBP 2.1 billion more than offset commercial and institutional outflows of GBP 1.2 billion. The mix between non-interest-bearing and interest-bearing deposits still showed a marginally unfavorable development toward the latter, but migration is slowing. A loan loss rate of 10 basis points in the quarter also stood out positively, reflecting a still-benign level of defaults despite higher interest rates weakening interest coverage ratios for corporates and households. Operating expenses were 3% ahead of the same period a year ago, driven by the Bank of England levies and inflation driving up staff costs. Excluding the higher levies, NatWest retained its 2024 cost guidance to align with 2023 levels.

Price vs Fair Value

NWG is trading at a 230% premium.
Price
$8.01
Fair Value
$7.70
Uncertainty
Medium
1-Star Price
$5.43
5-Star Price
$3.87
Economic Moat
Zwq
Capital Allocation
Zjt

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
$7.89
Day Range
$7.928.02
52-Week Range
$4.308.48
Bid/Ask
$7.17 / $8.40
Market Cap
$34.93 Bil
Volume/Avg
1.4 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
5.68
Price/Sales
1.96
Dividend Yield (Trailing)
5.43%
Dividend Yield (Forward)
5.43%
Total Yield
14.16%

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
61,600

Competitors

Valuation

Metric
NWG
LYG
BCS
Price/Earnings (Normalized)
5.687.325.97
Price/Book Value
0.800.730.55
Price/Sales
1.961.871.35
Price/Cash Flow
4.203.291.65
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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Economic Moat
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MFG
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LYG
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DB
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