RBSpF - NatWest: Medium-Term Earnings Set To Remain Elevated
2025-02-14 22:29:30 ET
Summary
- NatWest reported a reasonable set of fourth quarter figures, with revenue and net income both beating consensus, while operating costs were a little softer than expected.
- The outlook for the bank's earnings has been improving, supported by 'higher for longer' interest rates and the knock-on implication for structural hedge income.
- These shares now trade for ~1.3x tangible book value. Although this looks rich, medium-term earnings can support a premium multiple, while capital return potential also remains compelling.
NatWest Group ( NWG ) produced another set of reasonable figures covering its fourth quarter. While financials were arguably a little so-so versus consensus, the market has been playing catch-up here recently, with the outlook for the bank's earnings improving throughout last year....
NatWest: Medium-Term Earnings Set To Remain Elevated