Natwest Share Discussion Threads

[smithie6] 31/10/2023 16:15

Polar fox

Good post/info
..I agree.

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NAT West has excess deposited cash....it can imo happily reduce the % it pays.

(Bit surprised then that it paid £200 to people to open an account)

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To pay ~5% to depositors when that same money deposited by NAT West with the Govt. (Gilts) to get about the same 5% is madness imo since the bank needs to make a cut on the deal to pay its running costs.

[careful] 31/10/2023 15:38

Gilt yields have fallen again today.
They are the main controlling factor.

Anyone who bagged 6% is very smart, just a blip.
Coventry building society have reduced rates on 2 year bonds from 5.9% to 5.5%.
All in line with gilt prices.

[polar fox] 31/10/2023 15:35

I notice that FR cash ISA rates are being cut back on Moneyfacts, perhaps because the view has strengthened that the MPC will not change BR on Thursday.

Until yesterday, NatWest was at 5.65% for both one and two years, the latter being the best rate available. Not any more - the one year is now at 5.26% and the two year is even lower at 5.01%; i.e. the bank doesn't want to know and has effectively stepped back for the time being.

I'm not impressed with their decision-making. First, they offer too much at 5.90% on the 2-yr in July, above the rest of the market, then they were at a (too high) 5.65% until yesterday and now they're basically running for the hills.

NWG needs new, competent management at the top, urgently, not some time in 2024, after mid-year at the earliest by the look of it.

[smithie6] 31/10/2023 15:32

...be careful if considering to use AJ Bell ltd...

Super slow

They have sent me an image showing that my transfer in of money (<£2k) was received last Friday at midday.

It is now almost the end of Tuesday & the money is still not in my account !! (& yesterday Monday was a working day not a bank holiday)

:-((((

[thecomposer] 31/10/2023 15:05

Always great to note the “Director Purchases” RNS here today afternoon, nice, and GLA!

Over the last three years on average, NatWest’s EPS has increased by 70% per year. But its share price has only increased by an average 11% per year over that period.

The bank looks significantly undervalued to its peers on the key metric of the price-to-earnings (P/E) ratio.

NatWest’s is just 3.5, while Barclays’ is 3.6, Lloyds’ is 3.9, HSBC Holdings’ is 5.9, and Standard Chartered’s is 10.8. This gives a UK bank peer group average of 6.05.

It looks even more undervalued against the European bank peer group P/E average of 7.7.

To gauge the level of undervaluation, I use the discounted cash flow (DCF) method, using several analysts’ DCF valuations as well as my own.

The core assessments for NatWest are now between around 72% and 78% undervalued. The lowest of these would give a fair value per share of about £6.50 per share, compared to £1.82 now.

In 2022, NatWest paid a Special Dividend of 16.8p, which gives a yield of 17% based on the current share price. Crucially though, even if this Special Dividend is not included in the calculation, the yield is still 7.4%.

So, a £10,000 investment would make another £7,400 in passive income over 10 years if the yield and the share price stayed the same (which is not guaranteed). This is over and above share price gains or losses and tax obligations incurred.

NatWest increased its 2023 interim payment by 57% — from 3.5p to 5.5p. If this was applied to this year’s final dividend, then the total would be 21.2p. This would give an 11.6% yield, with no Special Dividend included, based on the current share price.

[tradejunkie2] 31/10/2023 13:03

First trade kitty cats.

Buy £25,000 @ 177.75.

[mount elgon] 31/10/2023 11:30

Mortgage market shrinking V Flight of savers money.
Future profits/NIM impact.
Gravy train slowing down imho.

[maxk] 31/10/2023 11:10

Dunno smurfs, that chart is pretty nasty. Someything we are not seeing?

[smurfy2001] 31/10/2023 09:45

Down 42% this year! Is this now the best bargain in the FTSE 100?

Shares in ‘Big Four’ FTSE 100 bank NatWest (LSE: NWG) have dropped 42% from their 2 February high this year. I already hold the stock but am considering buying more now for three main reasons.

- Core business looks solid
- Undervalued to its peers
- Big passive income generator

[clocktower] 30/10/2023 17:08

Cheap as chips now. I guess even staff options taken this year will be above the current price.

[careful] 30/10/2023 16:12

And think of all of those new customers switching from LLoy to avoid banking at the same bank as Farage.

Just topped up, a rare opportunity.

HMG will not want their own shares to fall too much. One day they will sell them.

[action] 30/10/2023 15:50

Better for us of it goes to 150p. Sale of century. Don't complain bag the bargain.

[smurfy2001] 30/10/2023 14:30

NatWest scoops 127,917 customers in 3 months with £200 switch deal

[tradejunkie2] 30/10/2023 14:07

blueball, stick a ball up your ass.

[smurfy2001] 30/10/2023 14:00

Why are bank NIMs under pressure, whilst waiting for fixed rate mortgages to reset to higher rate?

==

NS&I raked in £7.7BILLION in September from 6.2% fixed rate bond

hxxps://www.msn.com/en-gb/money/other/ns-i-raked-in-7-7billion-in-september-from-6-2-fixed-rate-bond/ar-AA1j5w3o

[blueball] 30/10/2023 13:54

Struggling to hold above 180p.

[maxk] 30/10/2023 11:59

No dea who's who, but those are good looking wimmin :-)

[nick100] 30/10/2023 11:56

Their pay award should reflect if the price of the shares goes down by a certain percentage their pay packet goes down. They have to remember they are there to make money for the shareholders and have woke policy which does nothing for shareholder value.

[smithie6] 30/10/2023 11:46

Quiz question.

Without using the internet have a guess in which country she was born

a) Czech Republic
B) Bulgaria
C) Poland
d) UK

[smurfy2001] 30/10/2023 11:17

I see they accelerated the buyback 6.2m shares bought last time.