NatWest Group (NYSE:NWG) Issues Earnings Results

NatWest Group (NYSE:NWG) posted its earnings results on Friday. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.51 by $0.01, Zacks reports. NatWest Group had a net margin of 20.10% and a return on equity of 14.01%. The business had revenue of $6.08 billion for the quarter, compared to the consensus estimate of $6.18 billion.

Here are the key takeaways from NatWest Group’s conference call:

• Broad-based growth continued: customer assets and liabilities rose 14.2% year over year, with lending up 7.7%, mortgage share increasing to 12.7%, and Commercial & Institutional lending particularly strong in infrastructure, renewables, housing and technology.
• Third-quarter income excluding notable items increased 3.1% to £4.6 billion, while costs rose 2.8%; the cost-income ratio improved to 45.1% and return on tangible equity reached 21.6%. Management maintained its 2026 income guidance of approximately £17.9 billion.
• Evelyn Partners integration is reportedly on track, with assets under management and administration more than doubling to £132.4 billion and £1 billion of net inflows since completion. Management also expects structural-hedge income to be more than £1 billion higher in 2027 than in 2026.
• Management expects broadly stable net interest margin in 2027, as structural-hedge benefits are offset by mortgage repricing, lending mix, deposit competition and increased wholesale funding. Average interest-earning assets are expected to grow more closely in line with lending as surplus liquidity is replaced with additional funding.
• Credit performance remains strong, with the nine-month impairment rate at 21 basis points and full-year guidance below 25 basis points. Capital generation reached 208 basis points in the quarter, the CET1 ratio was 13.5% after dividend accrual, and the bank plans to announce its next buyback with full-year results in February.

NatWest Group Stock Down 9.0%

NYSE:NWG opened at $15.46 on Friday. The company’s 50-day simple moving average is $17.96 and its 200-day simple moving average is $17.08. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.04 and a current ratio of 1.03. NatWest Group has a fifty-two week low of $13.76 and a fifty-two week high of $19.42. The stock has a market capitalization of $61.41 billion, a P/E ratio of 7.73, a P/E/G ratio of 0.70 and a beta of 0.94.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on NWG shares. Keefe, Bruyette & Woods upgraded shares of NatWest Group from a “hold” rating to a “moderate buy” rating in a research note on Friday, July 17th. Weiss Ratings downgraded shares of NatWest Group from a “buy (b+)” rating to a “buy (b)” rating in a research note on Friday, October 23rd. Barclays raised NatWest Group from an “equal weight” rating to an “overweight” rating in a research report on Tuesday, October 13th. Wall Street Zen downgraded NatWest Group from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Finally, Morgan Stanley raised NatWest Group from an “equal weight” rating to an “overweight” rating in a research report on Wednesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy”.

NatWest Group Company Profile

NatWest Group plc is a United Kingdom-based banking and financial services company. Through brands including NatWest, Royal Bank of Scotland, Ulster Bank and Coutts, it provides current accounts, savings products, mortgages, personal loans, credit cards, insurance and other financial services to individuals and households.

The group also serves small and medium-sized businesses, larger companies and institutional clients. Its commercial and institutional banking activities include lending, transaction banking, cash management, payments, trade finance, capital markets services and risk-management solutions.