Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The government did sell shares in BP when they were also available on the open market. I don't remember what the pricing difference was between offer and market price but I don't think it was much.
Just spoken to mystic meg and the man down the pub. HM Gov will sell at massive discount with no strings. Existing holders to get higher allotment (not hill farm) from over subscription. Not sure how that will work...
I bought 1677 RBS shares on 9th August 2007 for £10K
Not long after they went TU and we had a few script issues/ consolidations and reorganizations, etc. I made lots of other purchases over the years and all the shares have been lumped together into one place. How can I find out how many new NWG shares this is equal to now?
So 1677 RBS shares = ? NWG shares?
Forgot to say - The RBS shares are ordinary shares of 25p
Thanks for the info.
All shares go ex-dividend on Thursdays. The NWG share goes ex-dividend on Thu 14 March. The record date is Friday 15 March. Anyone buying the shares on 14 March will NOT receive the dividend and the price will often be lower to reflect this.
Anyone wishing to receive the dividend will have to buy or own the shares on Wed 13 March.
Do you have to hold your shares up to the time of the dividend payout or do you lose the dividend by selling now? Thanks in advance
What will the impending gov sale do to the share price if they're selling at a discount? Surely they have to pitch the SP near the market price? Im panning to exit this stock as soon as the current rise ends. Too much of a dividend trap.
Whilst it's nice to see the SP 'surging' toward 25p in real money (ie stripping out the share consolidations, capital returns and the absolute fortune spent on share buy-backs etc), and good luck to any newbies benefitting, it sort of sticks in the throat that so many plaudits seem to be heading the way of the Group these days.
Much of the improvements are seen are down to staff etc and are less to do with the shambolic leadership in evidence over recent years.
Analysts go into great detail about the breakdown in performance but the greatest factor is the sheer cyclicality inherent in banking driving virtually every key driver.
15 years on from the Financial crash, after stripping out inflation, the SP likely to be discounted in the HMG disposal, should more rightly be viewed as a penny share.
It might be worth a punt on that basis for Sid or anyone else, but for existing shareholders, the nightmare never ends.
Natwest key facts
• Forward price/book ratio (next 12 months): 0.52
• Ten year average forward price/book ratio: 0.62
• Prospective dividend yield (next 12 months): 7.3%
• Ten year average prospective dividend yield: 4.1%
***All ratios are sourced from Refinitiv.
Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn't be looked at on their own - it's important to understand the big picture.
HL Views…
Nat West's record 2023 was marked by performance peaking early on.
But as we moved through the year headwinds started to become more pronounced. It's clear that we won't be going back to the levels of profit seen in early parts of 2023. That doesn't mean Nat West needs to be put on the sidelines and fourth quarter results were broadly better than expected.
As a traditional lender, loan default rates are an important risk to watch for. Impairment charges (money put aside in anticipation of more people defaulting on loan payments) were better than expected as customers continued to show remarkable resilience in the face of higher inflation and interest rates. We think it's reasonable to expect low default rates to continue over 2024.
Deposits make up the other side of the equation and we continue to see retail customers in search of better rates from longer-term savings accounts. That's been an ongoing headwind over the past year. But crucially for NatWest, the pace of deposit switching was significantly slower in the fourth quarter than in the prior. Perhaps a sign that the peak in switching has come and gone. That'd be good news for margins - something for investors to monitor.
Costs are a challenge, and a key focus for the new CEO.
We've been pleased to see continued progress on reducing the cost to income ratio (2023 51.8%) - medium-term targets look for sub 50% but we don't expect that to come anytime soon.
Investors will be a little unhappy to see a lack of specific guidance on margins and an income forecast that was lower than expected. But we think management have been overly cautious with their £13-£13.5bn income guide.
There are other positive developments too.
Mortgage pricing is currently a pain point, as more profitable business written over the pandemic is replaced. But that headwind should ease over 2024.
There's also the benefit from the structural hedge - think of this like a bond portfolio that's set to roll on to better rates over the coming years. Nat West is rolling off some of the lowest rates in the sector, and should be one of the biggest beneficiaries.
The UK banking sector is unloved, but with strong balance sheets and some easing headwinds on the horizon we see potential. Given recent turbulence at the executive level, NatWest's valuation gap to its closest peer, Lloyds, has expanded.
We now see it as having one of the better potential upsides in the sector. Though nothing is guaranteed, and a new leadership team adds risk.
Excerpt from HL - 01/03/2024z
Net interest income was down, offset somewhat by a gain from the smaller non-interest income line (fees). Operating profit fell 11.9% to £1.3bn.
Net interest margin (NIM, a measure of profitability in borrowing/ lending) fell quarter-on-quarter, to 2.86%, slightly higher than markets were expecting. No NIM guidance was provided for 2024.
Retail customer deposits increased £3.5bn quarter-on-quarter, as a dip in current account levels across the client base was more than offset by a rise in longer-term savings balances. The pace of shift from current to term accounts slowed over the quarter.
Arrears remained broadly stable and in line with pre-pandemic levels.
An impairment charge of £126mn was taken over the quarter in expectations for future defaults. The CET1 ratio, a key measure of financial resilience, was 13.4% (target range 13-14%).
Paul Thwaite was confirmed as permanent CEO and the group announced a final dividend of 11.5p, as well as an on-market buyback of up to £300mn over 2024.
The shares rose 2.9% in early trading.
My guess is you will be allowed to buy a limited quantity each person, such as max 300 shares.
Will you want to sell your entire shares to buy 300 NWG shares?
Well amongst the confusion the SP continues to show upwards momentum.
I’m interested too. Even if it’s the Government selling directly surely people will just sell any existing holding and buy the equivalent discounted shares? Hence the share price will drop regardless of any time limits they have to hold for?
Does anyone know how this "massively discounted" offer will not tank the sp?
Could there be caveat in place such as not allowed to sell for 3 yr?
Scurrilous rags brazenly reporting that Hunt will flog 20% of bank worth 3-4bill at min 10% discount. Bank will then buy 5% a year for next 3 years. Target audience are PIs with 300bill held in cash ISAs and other savings accounts. M&C Scratchy doing advertising campaign, Computashare registrar doing admin, H Lowdown and Ding Dong marketing to PIs. Find out more next Wednesday (budget).
I may have misunderstood the recent buyback information in the finals but it appears they are adding shares
21/2- 8,748,719,627
22/2-8,749,168,000
23/2- 8,749,360,984
26/2-8,749,653,883
27/2- 8,749,837,016
28/2-8,750,027,033
Dividend history and percentages here:
https://www.dividenddata.co.uk/dividend-history.py?epic=NWG
2nd post is correction.
IP3LY,
Thanks the information.
So, total divi for 23/24, 17 p. At todays p, that's a return of 7.4%.
The return on just the last 11.5p divi , at todays sp ,is 4.8%.
An excellent return.
IP3LY,
Thanks the information.
So, total divi for 23/24, 17 p. At todays p, that's a return of c13%.
The return on just the lat 11.5p divi , at todays sp ,is 4.8%.
I am always wary if the truism, 'if it look too good to be true, it is'
where are the dark clouds on the horizon?.
@testpack3 - interim dividend was 5.5p which went XD on 23rd Aug 2023 and was paid on 15th Sept 2023.
Upcoming FINAL dividend was was declared on 16th Feb 2024, and due to go XD on 14th March.
It will be 11.5p per share with payment date for this is 29th April 2024.
GLA & ATB
Inflationbuster.' Plonker', another uneducated trench digger on here. I didn't say 'please' because there was zero chance he would do it. capiche. I can see this board is as helpful as rats on the table at a school birthday party, and about same brain size. Byeeee.
@testpack3, How about look yourself plonker.
Lmao