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Pin to quick picksNatwest Grp Share News (NWG)

Share Price Information for Natwest Grp (NWG)

London Stock Exchange
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Share Price: 189.30
Bid: 188.15
Ask: 188.30
Change: -0.30 (-0.16%)
Spread: 0.15 (0.08%)
Open: 188.95
High: 190.05
Low: 184.75
Yest. Close: 189.60
NWG Live PriceLast checked at -

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Credit Suisse sees room for capital returns at NatWest Group

Thu, 24th Sep 2020 13:00

(Sharecast News) - Credit Suisse reiterated its 'neutral' stance on shares of NatWest Group following a meeting the day before with the lender's finance chief.

Foremost, they believed consensus estimates for £4.2bn of impairment charges, versus NatWest's own forecast for £3.5-4.5bn were "reasonable" and that the bank's "strong" capital position gave it a "good opportunity" to return capital even should it register a loss for all of 2020.

NatWest Group's common equity tier one ratio had improved to 17.2% over the course of 2020 - against a long-term target for 13-14%.

Hence, said the Swiss broker, even after a full-year loss on the back of impairments, "we do not think the 40% payout intention is a hard target [...] Especially at low prices we think buybacks are a sensible part of the capital return mix."

Admittedly, Brexit and interest rates in the UK had proved an additional headwind for lenders in the country, but trading on just 0.4 times' its tangible book value, the stock's valuation should find support - and then there was the yield potential to consider.

And while the macroeconomic environment was slowing progress towards the stated goal of reaching a return on tangible equity of 9-11%, it still had opportunities to grow its retail market share and fee income and digitalisation could help cement annual cost reductions of between 3-4%.

On the subject of negative interest rates in the UK, Credit Suisse said that it would be "difficult" to completely offset their impact.

Finally, the Swiss broker said that the lender scored "reasonably well" on Environmental, Social and Governance criteria and that the transition to cleaner energy constituted a real opportunity for the lender and the sector more broadly.



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UK banking industry to support customers who depend on cash long term

Today 10:28

Europe close: Stocks down amid inflation worries, Travel and Leisure hardest hit

(Sharecast News) - European shares fell back on Tuesday, tracking continued selling on Wall Street amid concern over rising US inflation and what some analysts said was fairly indiscriminate selling.

11 May 21 17:17

LONDON MARKET CLOSE: Stocks plunge as global inflation fears return

LONDON MARKET CLOSE: Stocks plunge as global inflation fears return

11 May 21 17:00

UK govt offloads NatWest shares at a loss to taxpayer

(Sharecast News) - The British government has reduced its stake in NatWest Bank at a hefty loss to the taxpayer.

11 May 21 09:38

UPDATE 2-UK shares drop the most in 7 months on inflation woes; THG shines

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Softbank leads $1 bln investment in Britain's THG, shares surge* NatWest slips as Britain lowers stake with $1.5 bln share sale* FTSE 100...

11 May 21 09:34

TOP NEWS: UK government rakes in GBP1.1 billion from NatWest stake cut

TOP NEWS: UK government rakes in GBP1.1 billion from NatWest stake cut

11 May 21 08:53

LONDON MARKET OPEN: FTSE 100 drop 2% on inflation nerves; THG up 16%

LONDON MARKET OPEN: FTSE 100 drop 2% on inflation nerves; THG up 16%

11 May 21 08:49

LONDON BRIEFING: UK cuts NatWest stake; THG and IAG raise funds

LONDON BRIEFING: UK cuts NatWest stake; THG and IAG raise funds

11 May 21 08:18

LONDON MARKET PRE-OPEN: UK state sells GBP1.1 billion NatWest stake

LONDON MARKET PRE-OPEN: UK state sells GBP1.1 billion NatWest stake

11 May 21 07:47

UPDATE 1-UK government lowers NatWest stake with $1.5 bln share sale

(Adds detail)LONDON, May 11 (Reuters) - The British government has completed the sale of 1.1 billion pounds ($1.55 billion) in shares of NatWest, lowering its stake in the lender it bailed out over a decade ago to below 55%.UK Government Investmen...

11 May 21 07:31

UPDATE 2-Britain lowers NatWest stake with $1.5 billion share sale

(Adds loss realised and context)LONDON, May 11 (Reuters) - The British government has completed the sale of 1.1 billion pounds ($1.55 billion) in shares of NatWest, lowering its stake to below 55% in the lender it bailed out over a decade ago.UK G...

11 May 21 07:31

TOP NEWS: UK government to trim stake in NatWest below 55%

TOP NEWS: UK government to trim stake in NatWest below 55%

10 May 21 17:35

UPDATE 1-UK government kicks off NatWest share sale

(Adds UK government confirmation, details)LONDON, May 10 (Reuters) - The British government kicked off the sale of a further stake in taxpayer-backed NatWest Group , announcing on Monday it plans to sell a 5% stake in the lender.The Treasury said ...

10 May 21 17:16

UPDATE 2-UK government kicks off NatWest share sale

(Adds background on NatWest)By Iain WithersLONDON, May 10 (Reuters) - The British government kicked off the sale of a further stake in taxpayer-backed NatWest Group , edging it a step closer to private ownership more than a decade since its rescue...

10 May 21 17:16

UK government kicks off sale of 5% stake in NatWest

LONDON, May 10 (Reuters) - The British government kicked off the sale of a further stake in taxpayer-backed NatWest Group , announcing on Monday it plans to sell a 5% stake in the lender.The Treasury said it plans to sell around 580 million shares...

10 May 21 16:49

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