NatWest Group: A Double Beat To Start The Year

2025-05-07 23:13:40 ET

Summary

• Shares of British bank NatWest Group have continued their outstanding run, with the ADSs now up around 30% so far in 2025.
• First quarter results were excellent, with the bank beating on both revenue and earnings, with the latter mapping to an incredibly strong high-teens return on tangible equity.
• NatWest shares trade for roughly 1.4x tangible net asset value. Given the strength of its earnings, this remains justified.

For all the uncertainty out there, 2025 is still shaping up to be a good year for NatWest Group (NWG) . On the business front, first quarter results could hardly have gone better, with the bank cruising past consensus on the way to an exceptional 18.5% return on tangible equity. As for the stock, well, things have gone just as well. Aided by a weaker U.S. dollar, NatWest's ADSs have returned another ~20% since my last update in February, bringing their year-to-date return up to the 30% mark....

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