NatWest to sell HR consultancy unit Mentor in streamlining push, Sky News reports | Reuters Skip to main content Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv NatWest Group logo is seen in this illustration taken January 7, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab March 25 (Reuters) - NatWest (NWG.L), opens new tabis selling its human resources advisory business Mentor to private equity-backed Empowering People Group, Sky ...

Key Takeaways STRA, MG, SIG and NWG made a value screen built around low price-to-cash-flow ratios.Higher oil above $100 and the Fed's steady 3.5%-3.75% rate range pressured stocks broadly.The screen also used P/E, P/B, P/S, PEG, price and trading-volume filters to avoid value traps.A sharp downtrend was witnessed in the U.S. stock market yesterday, with the Dow Jones Industrial Average tumbling 768.11 points, or 1.63%, to 46,225.15. The S&P 500 declined 91.39 points, or 1.36%, to 6,624.70, while the Nasdaq ...

Investors interested in Banks - Foreign stocks are likely familiar with NatWest Group (NWG) and HDFC Bank (HDB) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highl ...

Group 1 - Blue Owl Capital (OWL.US) experienced a decline of 5.09% last Friday and continued to drop by 1.42% in pre-market trading, reaching $9.75 [1] - NatWest (NWG.US) also saw a decrease of 1.4% last Friday, with a further decline of 3.22% in pre-market trading, now priced at $15.02 [1] - Century Capital Partners, a real estate lending institution based in London, entered bankruptcy management in February this year, with reports indicating that Blue Owl Capital provided funding for the riskiest layer of financing for this company [1] Group 2 - NatWest Group is identified as a senior creditor of Century Capital Partners, indicating potential exposure to the company's financial troubles [1] - The total market capitalization of NatWest is reported at $61.799 billion, with a total share capital of 3.982 billion shares [1] - The stock has a 52-week high of $19.355 and a low of $10.213, reflecting significant volatility in its trading performance [1]

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8] - The article suggests that investors may regret not owning shares in a specific AI company that is positioned to capitalize on this technological wave [9]

Core Viewpoint - Investors in the Banks - Foreign sector should consider NatWest Group (NWG) and Sumitomo Mitsui (SMFG) for potential value opportunities, with NWG currently presenting a better value proposition [1]. Group 1: Zacks Rank and Value Scores - NWG has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while SMFG has a Zacks Rank of 4 (Sell), suggesting a less favorable analyst outlook [3]. - The Zacks Rank is complemented by the Style Scores system, which identifies undervalued companies through various metrics [2]. Group 2: Valuation Metrics - NWG's forward P/E ratio is 8.53, significantly lower than SMFG's forward P/E of 15.16, indicating that NWG may be undervalued [5]. - NWG has a PEG ratio of 0.56, while SMFG's PEG ratio is 0.87, further suggesting that NWG offers better value considering expected earnings growth [5]. - NWG's P/B ratio is 1.18 compared to SMFG's P/B of 1.4, reinforcing the notion that NWG is more attractively priced relative to its book value [6]. Group 3: Overall Value Grades - NWG has a Value grade of B, while SMFG has a Value grade of D, indicating that NWG is viewed more favorably by value investors [6].

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8] - The article suggests that investors may regret not owning shares in a specific AI company that is positioned to capitalize on this technological wave [9]

Core Viewpoint - NatWest Group plc (NYSE:NWG) is identified as a high-growth financial stock with a positive outlook following strong financial performance and strategic acquisitions [1][3]. Financial Performance - For FY25, NatWest reported total income of GBP 16.4 billion and a pretax profit of GBP 7.7 billion, with a net interest margin of 2.34% and a Common Equity Tier 1 ratio of 14% [3]. - The company achieved a Return on Tangible Equity of 19.2%, surpassing both the previous year and guidance, while dividends per share increased by 51% compared to 2024 [3]. - Management anticipates total income for FY26 to be between GBP 17.2 billion and GBP 17.6 billion, with operating expenses expected around GBP 8.2 billion [3]. Analyst Ratings and Price Target - Citi analyst Andrew Coombs raised the price target for NatWest Group to 840 GBp from 810 GBp, maintaining a Buy rating, reflecting positive adjustments due to the acquisition of Evelyn Partners [2][7]. Business Segments - NatWest Group provides a range of banking and financial products and services through its Retail Banking, Private Banking, and Commercial & Institutional segments, both in the UK and internationally [4].

Core Viewpoint - The increasing risk of flood damage in the UK is pressuring banks to reassess their mortgage portfolios and lending practices, as more properties are being built in flood-prone areas, leading to potential financial implications for both banks and homeowners [1][3][6]. Group 1: Flood Risk and Mortgage Implications - There are currently 6.3 million properties in England at risk of flooding, with 11% of new homes built between 2022 and 2024 located in areas facing medium to high flood risks, an increase from 8% in the previous decade [3]. - Banks like Barclays and NatWest are identifying high-risk areas within their mortgage portfolios, with Barclays reporting 2.6% of its UK mortgage book in high flood risk areas and NatWest indicating 3.4% of its home loans at high risk [7][8]. - Lloyds Banking Group states that one in six properties on its books is at risk of flooding, emphasizing the need for physical inspections and careful assessment of collateral [9]. Group 2: Regulatory and Market Dynamics - The UK's Prudential Regulation Authority has introduced stricter rules requiring banks to incorporate flood risk into credit assessments, prompting banks to reevaluate their lending decisions [12]. - There is a noted asymmetry between banks and insurers in managing flood risks, with insurers able to adjust premiums annually while banks are locked into long-term loans, creating significant risks for banks [2][13]. - The Flood Re reinsurance plan, designed to help homeowners access affordable insurance, is set to expire in 2039, raising concerns about the future availability of insurance in flood-prone areas [15][17]. Group 3: Climate Change and Urban Development - Climate change is exacerbating flooding risks, with urban landscapes contributing to drainage issues, as evidenced by severe flooding events in regions like Cornwall [5]. - The ongoing development of properties in flood-prone areas poses a threat to real estate dynamics in Britain, potentially leading to decreased property values and increased financial strain on homeowners [6]. - Banks are conducting scenario analyses to understand the long-term impacts of flooding on their mortgage portfolios, particularly if Flood Re is not extended beyond its current expiration [17][18].

Climate and Sustainability Goals - NatWest Group aims to achieve net zero across its financed emissions, assets under management, and operational value chain by 2050, in line with the UK's legal obligations [18]. - The company targets to halve the climate impact of its financing activity by 2030, using 2019 as a baseline [18]. - NatWest Group plans to provide £200 billion of transition and climate finance between July 1, 2025, and the end of 2030 [18]. - NatWest Group's climate and sustainability-related targets are based on current plans and are subject to significant uncertainties [19]. - The company faces significant uncertainties related to climate change, macroeconomic conditions, and regulatory changes, which may impact its strategic objectives [41]. - Data availability and accuracy issues limit the quality of climate and sustainability-related disclosures, affecting their reliability [27]. - The reliance on proxies or aggregated sector-level data may lead to inconsistencies in climate-related reporting due to varying methodologies [27]. - There is currently no globally accepted standard for classifying 'green' or 'sustainable' activities, which complicates reporting efforts [27]. - The risk factors related to climate and sustainability are detailed in the annual report, highlighting the uncertainties the company faces in these areas [21]. - NatWest Group enhanced its climate risk modeling capabilities in 2025, integrating climate risk into capital adequacy and risk management processes [207]. - Challenges in quantitative climate scenario analysis include the immaturity of modeling techniques and limitations in climate-related risk data [208]. - Significant uncertainty exists regarding climate evolution and responses from governments, businesses, and investors, impacting economic systems and asset valuations [208]. - Outputs of climate-related risk modeling are inherently more uncertain than those from traditional financial planning cycles based on historical data [208]. Financial Performance - Total income for 2025 was £16.6 billion, a 13.2% increase compared to 2024, with total income excluding notable items at £16.4 billion, exceeding guidance [45][46]. - Net interest margin (NIM) increased by 21 basis points to 2.34% in 2025, with expectations for total structural hedge income to rise by approximately £1.5 billion in 2026 [46]. - Customer deposits grew by £9.5 billion to £443.0 billion, with Retail Banking contributing £7.8 billion of this increase [47]. - Assets under management (AUMA) rose by £9.6 billion to £58.5 billion, driven by positive market movements of £5.0 billion and net flows of £3.1 billion [48]. - Total operating expenses increased by £113 million, with other operating expenses up by 3.1% due to higher transformation costs and inflationary pressures [49]. - A net impairment charge of £671 million was recorded, representing 16 basis points of gross customer loans, influenced by the acquisition of balances from Sainsbury's Bank [50]. - The CET1 ratio improved to 14.0%, an increase of approximately 40 basis points, supported by capital generation pre-distributions of 252 basis points [57]. - A final dividend of 23.0 pence per share is proposed, totaling 32.5 pence for the year, a 51% increase compared to 2024 [56]. - Risk-weighted assets (RWAs) increased by £10.1 billion to £193.3 billion, primarily due to franchise lending growth [54]. - The average Liquidity Coverage Ratio (LCR) was 147%, with £50.5 billion headroom above the 100% minimum requirement [55]. - Total income increased by 13.2% to £16,641 million compared to 2024, driven by deposit margin expansion and strong customer lending growth [66]. - Net interest income rose by £1,554 million, or 13.8%, benefiting from customer lending growth and deposit margin expansion [67]. - Other operating income increased by £50 million, reflecting higher Business Growth Fund gains and a dividend received on restructuring of a strategic investment [68]. - Net fees and commissions grew by £47 million to £2,514 million, largely due to higher AUMA investment fee income and transactional fees [69]. - Operating profit before tax was £7,708 million, an increase of 24.4% compared to 2024 [77]. - Profit from continuing operations reached £5,834 million, up 23.3% from the previous year [77]. - Total assets increased by £6.6 billion, or 1%, to £714.6 billion, primarily driven by growth in loans to customers [83]. - Total loans to customers rose by £18.6 billion to £418.9 billion, with significant growth in both Commercial & Institutional and Retail Banking [83]. - Total equity increased by £3.2 billion, or 8%, to £42.6 billion, driven by higher profit for the year [83]. - The effective tax rate rose to 24.3% from 23.7% in 2024, with a tax charge of £1,874 million for the year [72]. - NatWest Group reported a total income of £16.641 billion for 2025, an increase of £845 million or 15.0% compared to 2024 [91]. - The net interest income for 2025 was £12.829 billion, reflecting a £6.064 billion contribution from Retail Banking, which was a 15.9% increase from 2024 [91]. - Operating profit for Retail Banking reached £3.121 billion in 2025, up £690 million or 28.4% from the previous year [91]. - Customer deposits increased by £7.8 billion or 4.0% in 2025, totaling £443.0 billion, driven by growth in savings and current account balances [94]. - Net loans to customers rose by £7.7 billion or 3.7% in 2025, with mortgage balances increasing by £5.1 billion or 2.6% [94]. - The return on equity for Retail Banking improved to 24.7% in 2025, up from 19.9% in 2024 [91]. - The cost:income ratio for NatWest Group was 48.6% in 2025, a decrease from 53.4% in 2024, indicating improved efficiency [91]. - Impairment losses increased to £437 million in 2025, compared to £282 million in 2024, largely due to growth in unsecured lending [94]. - Risk-weighted assets (RWAs) increased by £3.0 billion or 4.6% in 2025, primarily due to movements in unsecured balances [94]. - NatWest Group supported 19 million customers in 2025, including 2.4 million youth customers, and achieved a Net Promoter Score (NPS) of 44 in its Premier segment [94]. - Private Banking & Wealth Management reported an operating profit of £394 million, with a return on equity of 21.7%, up from 14.2% in 2024 [100]. - Total income increased by £162 million, or 16.7%, primarily due to deposit margin expansion and higher transactional fees [103]. - Net loans to customers rose by £0.7 billion, or 3.8%, driven by higher personal and commercial lending balances [103]. - Assets under management (AUMA) increased by £9.6 billion, or 19.6%, with AUM net flows of £3.1 billion, representing 8.4% of opening balances [103]. - Commercial & Institutional achieved a total income of £8.8 billion, an increase of £852 million, or 10.7%, supported by lending growth and higher customer balances [104]. - The return on equity for Commercial & Institutional improved to 19.1%, up from 17.2% in 2024 [106]. - Customer deposits in Commercial & Institutional increased by £2.3 billion, or 1.2%, reflecting growth across various customer segments [110]. Risk Management - The company emphasizes the importance of forward-looking statements regarding its financial condition and strategic priorities, which are subject to inherent risks and uncertainties [11]. - Key risks affecting NatWest Group's future results include economic and political risks, changes in interest rates, and operational resilience risks [13]. - The implementation of NatWest Group's strategy carries execution risks, and the success of acquisitions or divestments is not guaranteed [43]. - The financial statements are prepared in accordance with UK-adopted International Accounting Standards and may include non-IFRS measures for better performance comparison [15]. - NatWest Group operates an enterprise-wide risk management framework (EWRMF) to ensure effective governance and decision-making across the organization [126]. - The framework aligns risk management with strategic priorities, focusing on customer understanding and resource management [127]. - Risk appetite defines the levels of tolerance for various risks, providing a structured approach to risk-taking within agreed boundaries [128]. - The Chief Risk Officer oversees risk management activities and advises the Board on the risk profile and control performance [129]. - The organization employs a three lines of defence model to articulate accountabilities and responsibilities for managing risk [144]. - The first line of defence includes customer-facing businesses and support functions, responsible for managing direct risks [145]. - The second line of defence, comprising the Risk function, provides oversight and ensures compliance with the risk management framework [147]. - The third line of defence, the Internal Audit function, offers independent assurance on the effectiveness of the risk management framework [150]. - Risk appetite statements are established for all principal risks, detailing the extent and type of activities that can be undertaken [156]. - The Board reviews and updates risk appetite statements annually to align with business and financial planning processes [159]. - NatWest Group's risk appetite is reviewed annually by the Board, ensuring alignment with strategy [160]. - The risk management framework includes regular assessments of the overall risk profile, incorporating market developments and trends [163]. - Stress testing is a key component of capital management, used to evaluate the impact of changes in risk factors on financial strength [174]. - The Internal Capital Adequacy Assessment Process (ICAAP) is conducted annually to evaluate the amount and distribution of capital required to cover material risks [180]. - NatWest Group maintains a liquidity risk management framework, including daily reviews of liquidity and funding risks at significant legal entity levels [185]. - Non-traded market risk exposures are reported quarterly to the PRA, detailing interest rate exposure and other characteristics [194]. - The recovery plan outlines how NatWest Group would respond to financial stress events, ensuring critical services are maintained [189]. - Regular independent testing of controls ensures they function as intended, providing real-time insights into control effectiveness [168]. - The risk and control performance assessment (RCPA) is used for annual self-assessment across business areas, evaluating the strength of the control environment [169]. - Reverse stress testing identifies scenarios that could render NatWest Group's business model unviable, enhancing risk management strategies [177]. - NatWest Group conducts macroeconomic stress tests periodically as part of its bank-wide capital planning process, with a planning horizon of five years [204]. - The cross-risk capital planning process is conducted at least once a year, combining market risk stress test results with other risks for presentation to the Board [205]. - Vulnerability-based stress testing analyzes portfolios for key vulnerabilities, reporting results to senior management without subjecting them to limits [206].