NatWest Group: Strong Q3 Earnings And An Improved Outlook (Rating Upgrade)

Mark Dockray profile picture
Mark Dockray
1.56K Followers
(10min)

Summary

  • NatWest Group plc has been a strong performer this year, returning around 80% including dividends.
  • Third-quarter results were strong, with the bank beating consensus on most key lines.
  • Structural hedge income remains a major tailwind over the next couple of years.
  • With management's medium-term profitability target looking increasingly conservative, I move the stock back to “Buy” from “Hold”.

Sun shines on stone bricks wall at one of National Westminster Bank branches

Lubo Ivanko

Shares of U.K. bank NatWest Group plc (NYSE:NWG) have been a strong performer this year, comfortably outpacing close peer Lloyds Banking Group (LYG) and the wider European financials space (EUFN) with an ~80% return.

I last covered NatWest

This article was written by

Mark Dockray profile picture
1.56K Followers
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NYG, LYG either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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