Question-and-Answer SessionNow, the stock has done very well over the last few years relative to the U.K. market, relative to European banks as well, trading at 7.5x PE, 1.3x book for almost a 19% return on tangible equity on our numbers. So a very strong operating performance. Clearly, the fiscal backdrop adds an element of uncertainty there. But if we start there, the news flow around the budget has been volatile, to say the least. Can you give a sense of the economic environment that some of the corporat ...

Core Viewpoint - JPMorgan's senior analyst Kian Abouhossein has identified preferred European bank stocks as investors prepare for 2026 amidst macroeconomic uncertainty and varied M&A activity in the sector [1] Group 1: Analyst Insights - The analysis highlights the importance of selecting bank stocks that can withstand economic fluctuations and capitalize on potential growth opportunities [1] - Abouhossein's recommendations are based on a thorough evaluation of the banks' fundamentals and market positioning [1] Group 2: Market Context - The current macroeconomic environment presents challenges, including inflationary pressures and interest rate changes, which could impact bank performance [1] - M&A activity in the banking sector remains inconsistent, influencing investor sentiment and stock valuations [1]

NatWest Group (NYSE:NWG) Conference November 19, 2025 06:15 AM ET Company ParticipantsKatie Murray - CFOModeratorWith the AV guys in the room, and they just go through everything with me, so I'm just about to join that just now from a different device. Yeah, it's quite—yeah, it's just audio only, so we just keep up the slides through. Thank you. Yeah, the preview all looks good to me. Thank you. Okay, perfect. Yeah, yeah, yeah. With the AV guys in the room, and they just go through everything with—yeah, per ...

Group 1 - A selection of top-performing European bank stocks has recently broken out, with some experiencing returns exceeding 120% this year [2] - NatWest Group (NWG) is highlighted as a member of the global bank stocks group, showing constructive charts [1] - Atour Lifestyle Holdings (ATAT), a Chinese company, is also featured as part of the IBD 50, indicating strong performance and potential investment interest [1][4] Group 2 - The market is currently mixed but positive, with notable stocks like Eli Lilly and Deutsche Bank in focus for potential buy opportunities [4] - Palantir has been elevated to best stock lists, indicating strong market performance and investor interest [4] - The S&P 500 has achieved record gains in 2025, with a specific Chinese stock vaulting 250%, suggesting robust market conditions for certain sectors [4]

Core Viewpoint - The Bank of England is preparing to relax certain aspects of the UK's ring-fencing regulations while opposing significant reforms sought by banks, aiming to retain core protective measures during the review process by the government [1][2]. Group 1: Regulatory Changes - The ring-fencing regulations require banks to separate their retail operations from investment banking activities to protect depositors and taxpayers in times of crisis [1]. - The regulations apply to banks with retail deposits exceeding £35 billion (approximately $46.1 billion), including Lloyds Banking Group, NatWest, HSBC, Barclays, and Santander UK [1]. - Critics argue that these regulations hinder the UK's international competitiveness and that their removal could free up capital for lending [1]. Group 2: Bank Perspectives - Some banks have lobbied the UK Treasury, which has the final say on significant changes, to allow them to use a portion of the £35 billion from non-ring-fenced banks for investment banking activities [1]. - An anonymous source indicated that the Prudential Regulation Authority (PRA) opposes such proposals, viewing them as dismantling the ring-fencing framework [2]. - The PRA is more open to smaller changes, such as allowing shared back-office functions between entities and permitting certain activities within the ring-fenced entity [2]. Group 3: Future Outlook - The UK Chancellor, Rachel Reeves, has promised "meaningful" reforms to the ring-fencing regulations as part of efforts to reduce red tape and promote economic growth [1][3]. - The PRA plans to propose its reform plan in early 2026, with the current CEO, Sam Woods, having been involved in designing the existing regulations that took effect in 2019 [3]. - Barclays is noted as the only major UK bank supporting the current regulations, having established independent service departments for both its retail and investment banking operations [3].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: NatWest Group (NWG) - NatWest Group currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, NWG shares increased by 2.91%, outperforming the Zacks Banks - Foreign industry, which rose by 0.52% [5] - In a longer timeframe, NWG shares have appreciated by 12.3% over the past month, compared to the industry's 7.51% [5] - For the past quarter, NWG shares rose by 8.95%, and over the last year, they gained 64.96%, significantly outperforming the S&P 500's increases of 6.64% and 15.78%, respectively [6] Trading Volume - The average 20-day trading volume for NWG is 3,009,980 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, two earnings estimates for NWG have been revised upwards, with the consensus estimate increasing from $1.60 to $1.82 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9] Conclusion - Given the positive momentum indicators and earnings outlook, NWG is positioned as a strong buy candidate with a Momentum Score of B, making it a noteworthy option for investors seeking growth [11]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Summaries - **PennyMac Mortgage Investment Trust (PMT)**: This real estate investment trust focuses on residential mortgage loans and related assets, with a 10.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - **NatWest Group (NWG)**: A banking and financial services company offering a range of services including personal and business banking, with a 7.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - **Phibro Animal Health (PAHC)**: A global diversified animal health and mineral nutrition company providing products for food animals, with a 4.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - **Centene (CNC)**: A well-diversified healthcare company serving government-sponsored healthcare programs, with a 2.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - **ACNB (ACNB)**: A provider of banking and financial services to individuals and businesses, also seeing a 2.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4]

Group 1: Company Overview - NatWest Group plc (NYSE:NWG) is an Edinburgh-based financial institution providing a range of services, including mortgages, loans, and credit cards [2] - The company has a dividend yield of 4.16% as of October 29 [4] Group 2: Financial Performance - For the third quarter of 2025, NatWest reported a profit of £126 million, a significant increase from £30 million in the previous quarter and £20 million in the same period last year [3] - As of September 30, 2025, total assets were £189.3 billion and total liabilities were £182.4 billion, reflecting increases of £6.1 billion and £6.2 billion compared to December 31, 2024 [3] Group 3: Analyst Ratings - RBC Capital raised its price target for NatWest from 650 GBp to 725 GBp while maintaining a Sector Perform rating [2]

Core Insights - NatWest Group PLC has reported a 30% increase in third-quarter profit, driven by growth in loans and assets in its wealth management sector [2][6] - RBC Capital maintains a "Sector Perform" rating for NatWest, recommending investors to hold the stock [1][6] - The bank has upgraded its performance targets for the year, reflecting confidence in its future performance [2][6] Financial Metrics - NatWest's Return on Tangible Equity (RoTE) is 22%, and its Net Interest Margin (NIM) stands at 2.37% [3][6] - The Common Equity Tier 1 (CET1) ratio is at 14.2%, indicating strong capital reserves [3][6] - The current stock price is $15.59, with a market capitalization of approximately $31.52 billion [5][6] Strategic Initiatives - The bank's strategic structural hedging aims to secure margins through 2027, providing a safeguard against potential rate cuts by the Bank of England [4][6] - NatWest's valuation is appealing, with a price of 1.58 times its Tangible Net Asset Value (TNAV) and a yield of 4.5% [4][6] - The company is engaging in buybacks to support further returns to shareholders [4][6] Market Evaluation - Zacks Investment Research is assessing whether investors might be undervaluing NatWest, focusing on earnings estimates and revisions [5][6]

Core Insights - NatWest Group's third-quarter results exceeded sell-side estimates, continuing the positive trend from the first half of the year [1] - The bank is benefiting from its interest rate hedging program, which has contributed to its strong performance [1] Financial Performance - The third-quarter results align with the bank's performance in the first half of the year, indicating consistent growth [1] - The results reflect a long-term strategy focused on sustainable high-quality earnings, particularly in the dividend and income sectors [1]