NatWest: A Banking Phoenix Has Risen

Jan. 23, 2023 4:41 AM ETNatWest Group plc (NWG)BCDRF, BCLYF, BCS, HBCYF, HSBC, LLDTF, LLOBF, LYG, RBSPF, SAN


  • NatWest is a British Bank, which at one point was the largest in the world by assets. Since then, the business was bailed out and spent a decade restructuring itself.
  • We believe macro conditions will continue to weaken, but believe NatWest is positioned well due to a quality loan book and interest gains.
  • The business is now highly profitable and is benefiting from higher interest rates.
  • Relative to its European peers, NatWest is performing extremely well. Their net interest margin is market-leading, which bodes well in the medium term.
  • We see 11% upside in the stock, with the 4% dividend being maintainable.

NatWest bank, Bishopsgate, City of London

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Company description

NatWest Group plc (NYSE:NWG/OTCPK:RBSPF) provides banking and financial services to personal, corporate, commercial, and institutional customers internationally, with its primary market being the UK.

NatWest operates through the following segments:

  • Retail Banking - offers a range of traditional

NatWest business change (Tikr Terminal)


UK Consumer Confidence (Trading Economics)


10Y / 3M yield curve ((FRED))


NWG Financials (Tikr Terminal)


NatWest book (Q3 pack)


Interest rate sensitivity (Q3 Pack)


Peer group analysis (Tikr Terminal)


Peer group valuation (Tikr Terminal)

This article was written by

We intend to provide insightful research and new ideas, through deep bottom-up business analysis. We look to tell a story and identify the hallmarks of long-term quality. We are not swayed by the emotions of market sentiment and short-term desires.“Day to day, the stock market is a voting machine; in the long term it’s a weighing machine.”

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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