I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'. Analyst's Disclosure: I/we have a beneficial long position in the shares of NYG, LYG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own o ...

Financial Data and Key Metrics Changes - The company upgraded its full-year income and returns guidance, expecting total income, excluding notable items, to be around GBP 14.4 billion, with a return on tangible equity greater than 15% [2][15] - For the first nine months, customer lending grew by GBP 8.1 billion to GBP 367 billion, while customer deposits increased by GBP 8.3 billion to GBP 427 billion [2][3] - Operating profit for the first nine months was GBP 4.7 billion, with attributable profit of GBP 3.3 billion and a return on tangible equity of 17% [5] Business Line Data and Key Metrics Changes - In Commercial & Institutional, lending to mid-market customers grew by GBP 1.5 billion, while corporate lending increased by GBP 3.2 billion [10] - The private bank's assets under management rose by GBP 5.7 billion to GBP 46.5 billion, including GBP 2.2 billion of net new inflows [4] - The existing mortgage book returned to growth, with balances up by GBP 3.8 billion, supported by new lending and the acquisition of a GBP 2.3 billion mortgage portfolio from Metro Bank [9] Market Data and Key Metrics Changes - The group net interest margin increased by 8 basis points to 218 basis points, driven by margin expansion across deposits and funding [8] - Non-interest income grew by 5.1% to GBP 3.8 billion in Q3, with contributions from strong lending and payment fees [7][57] - The company reported a net impairment charge of GBP 245 million for Q3, reflecting a cost of risk of 25 basis points [12] Company Strategy and Development Direction - The company is focused on disciplined growth, bank-wide simplification, and active balance sheet and risk management [2] - The strategic priority includes supporting customers while managing risks effectively, which is reflected in the strong financial performance [2][16] - The company aims to reach a target of GBP 100 billion in climate and sustainable funding by 2025, having already provided GBP 85.4 billion since July 2021 [3] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and ability to deliver strong shareholder returns, despite expected base rate cuts [16] - The company anticipates further base rate cuts in Q4, reaching 4.75% by year-end, with additional cuts expected in 2025 [8] - Management highlighted the resilience of customers and the strong performance of the loan portfolio, maintaining a low cost of risk [30] Other Important Information - The government has reduced its shareholding from 38% to under 16%, with plans to exit fully by 2025-2026 [5] - The company expects to incur higher operating expenses in Q4 due to severance and property costs, alongside a higher bank levy charge [12] Q&A Session Summary Question: On margins and NatWest Markets - Inquiry about the impact of deposit spreads and the timing of base rate cuts on future margins [17] - Management noted that market conditions have been supportive for NatWest Markets, which has seen a significant increase in capital markets activity [20] Question: Revenue guidance for Q4 - Question regarding the expected decline in revenues sequentially into Q4 and the normalization of other income [24] - Management explained that Q4 income is expected to be lower due to seasonality and anticipated base rate cuts, but overall guidance has been upgraded [26] Question: Cost of risk and Sainsbury's transaction - Inquiry about the cost of risk trends and the potential contribution of the Sainsbury's transaction to P&L [29] - Management confirmed a low cost of risk and indicated that the Sainsbury's acquisition is expected to be RoTE accretive upon completion [31] Question: RWA guidance and loan growth - Questions about RWA guidance for 2025 and confidence in loan growth prospects [35] - Management expressed confidence in mid-single digit loan growth, supported by strong performance in Q3 [36] Question: Deposit repricing lag and customer behavior - Inquiry about the impact of deposit repricing lag in Q3 and customer behavior regarding term deposits [48] - Management acknowledged the lag effects and noted that many customers are renewing into fixed-term accounts [51]

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For October 2024 Commission File Number: 001-10306 NatWest Group plc Gogarburn, PO Box 1000 Edinburgh EH12 1HQ ________________________________________________ (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F __X__ For ...

NatWest Group plc (NYSE: NWG ) is expected to report its earnings related to Q3 2024 next Friday, which are expected to be resilient and maintain the positive trend of previous quarters.Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.Analyst’s Disclo ...

NatWest Group (NWG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. The power ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Investors might want to bet on NatWest Group (NWG) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a cha ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

Lubo Ivanko I did wonder whether NatWest stock (NYSE:NWG) had run its course when I I last covered the bank back in May. It wasrit that a then-valuation of 1.1x tangible book value was expensive as such, but with the bank guiding for a circa 12-13% return on tangible equity ("ROTE"), theses shares were as close to fair value as they had been for a long time, and this ultimately drove my downgrade to 'Hold'. That call was clearly premature. Not only have these shares continued their excellent run, outperform ...

NatWest Group PLC (NYSE:NWG) Q2 2024 Results Conference Call July 26, 2024 4:00 AM ET Company Participants Paul Thwaite - Chief Executive Officer Katie Murray - Chief Financial Officer Conference Call Participants Raul Sinha - JPMorgan Alvaro Serrano - Morgan Stanley Andrew Coombs - Citi Jason Napier - UBS Aman Rakkar - Barclays Benjamin Toms - RBC Chris Cant - Autonomous Guy Stebbings - BNP Paribas Edward Firth - KBW Operator Good morning, and welcome to the NatWest Group H1 Results 2024 Management Present ...