31 July 2023
If you are covering NatWest’s financial results, please find below a comment from Will Howlett, equity research analyst at Quilter Cheviot:
“NatWest has capped off a tumultuous week with somewhat mixed results as looks to move ahead from the furore around Nigel Farage. Revenue trends were softer in the quarter and net interest margins will again be in focus as it has guided down on this source of profit.
“However, this should be seen in the context of unchanged revenue guidance, which given the economic picture in the UK is a real positive. Deposits have also stabilised after disappointment in this area in Q1, even if the bank is paying up to retain these. NatWest has also declared a £500m share buyback which should reassure. Meanwhile, it has also seen lower than expected loan losses, helping it to deliver a rise in profits.
“Very little has been said about who will permanently succeed Dame Alison Rose. We would not expect any significant change in strategy as the search is carried out. Some of the bigger decisions, such as withdrawing from Ireland and repositioning of NatWest Markets have already been executed. What recent events have highlighted is the constraints that banks have to operate under to try to keep all stakeholders happy.”
