Natwest Share Discussion Threads

[skinny] 26/7/2024 08:36

Near 9 year high @368.80p.

[scemer] 26/7/2024 08:26

Wad didn't you average Down it's impossible to hit £15

[wad collector] 26/7/2024 07:36

Fantastic, that would be a third of what I paid for mine 15 yrs ago! Another 30 yrs and I might be back in the blue :-)

[polar fox] 26/7/2024 07:12

The market clearly agrees with my line of thinking above.

Eventually, this will be £5.

[smurfy2001] 26/7/2024 07:09

That's a huge rise in my portfolio. Damn!

[skinny] 26/7/2024 06:57

.




Strong H1 2024 and Q2 performance

- H1 2024 attributable profit of £2,099 million and a return on tangible equity (RoTE) of 16.4%.

- Q2 2024 total income excluding notable items(1) of £3,590 million was £176 million, or 5.2%, higher than Q1 2024 primarily reflecting increased deposit income whilst H1 2024 was £379 million lower than H1 2023 due to lower average deposit balances and mix changes and lending margin pressure.

- Net interest margin (NIM) of 2.10% was 5 basis points higher than Q1 2024 primarily due to improved deposit margins.

- Q2 2024 other operating expenses were £100 million lower than Q1 2024, or £21 million lower excluding costs in relation to bank levies of £87 million and the potential retail share offering. H1 2024 other operating expenses were £149 million higher than H1 2023, or £42 million, 1.1%, higher excluding costs in relation to the potential retail share offering of £24 million and additional bank levies of £83 million.

- Net impairment charge of £48 million in H1 2024, or 3 basis points of gross customer loans. Levels of default remain stable and at low levels across the portfolio.




Robust balance sheet with strong capital and liquidity levels

- Net loans to customers excluding central items decreased by £1.7 billion in the quarter and decreased £0.3 billion in the first half as growth in Commercial & Institutional was offset by UK Government scheme repayments and lower mortgage balances as customer redemptions offset new lending.

- Up to 30 June 2024 we have provided £78.3 billion against our target to provide £100 billion climate and sustainable funding and financing between 1 July 2021 and the end of 2025.

- Customer deposits excluding central items were up by £6.1 billion in the first half of the year and increased £5.2 billion in Q2 2024. Term balances remained consistent in the quarter at 17% of our book and up from 16% at the end of 2023.

- The loan:deposit ratio (LDR) (excl. repos and reverse repos) was 83% at Q2 2024, with customer deposits exceeding net loans to customers by around £72 billion.

- The liquidity coverage ratio (LCR) of 151%, representing £54.5 billion headroom above 100% minimum requirement was unchanged compared with Q1 2024.

- TNAV per share increased by 12 pence in H1 2024 to 304 pence primarily reflecting the profit for the period, partially offset by the 2023 final ordinary dividend of 11.5 pence.



(1) Refer to the Non-IFRS financial measures appendix for details of notable items.







H1 2024 performance summary continued

Shareholder return supported by strong capital generation

- We are pleased to announce an interim dividend of 6 pence per share which, including the £1.2 billion directed buyback completed in May, brings total distributions announced to £1.7 billion for H1 2024.

- Common Equity Tier 1 (CET1) ratio of 13.6% was 10 basis points higher than Q1 2024 reflecting the attributable profit and reduction in RWAs, partially offset by capital distributions.

- During Q2 2024 we agreed to acquire the outstanding credit card, unsecured personal loans and savings balances of Sainsbury's Bank, subject to court and regulatory approvals. On completion we expect this acquisition to add around one million customer accounts to our Retail Banking business.

- RWAs of £180.8 billion reduced by £5.5 billion in Q2 2024 largely reflecting RWA management of £3.9 billion.

[polar fox] 26/7/2024 06:55

A veritable blizzard of RNSs, pity that ADVFN has failed to print Part 1, the most important. I think the whole package of news should be better received than yesterday's effort from LLOY.
The 6p interim is bang in line with my personal expectation, given that total shares in issue is 7% down on a year ago.

I'm a whole lot happier to have the group run by the Thwaites, rather than last year's lot.

[smurfy2001] 26/7/2024 06:40

0.5p increase (9%) over last interim.

[skinny] 26/7/2024 06:08

NatWest Group plc announces an interim dividend for 2024 of £500 million or 6 pence per ordinary share. The interim dividend will be paid on 13 September 2024 to shareholders on the register at close of business on 9 August 2024. The ex-dividend date will be 8 August 2024.

[smurfy2001] 25/7/2024 22:00

NatWest steals 83k new customers away from other banks with its £200 switching bonus

NatWest reeled in 83,131 new bank account customers in first 3 months of 2024

The banking giant gained 60,497 more customers than it lost
Between February and April 2023 NatWest was paying a £200 switching bonus

[polar fox] 25/7/2024 16:30

Interesting end to the day. The share price began the auction at the high of the day - 339.90 -
and closed at 338.10, down 1.80. Obviously some prudent profit-taking ahead of tomorrow.
Meantime, LLOY reached 60.80, before closing at 60.64.

Sentiment definitely continues bullish towards the big boys.

[polar fox] 25/7/2024 13:51

After that sharp drop this morning, LLOY has finally got past 60p - quite a turnaround and very bullish. This probably augurs well for NWG tomorrow, that is, traders should be better prepared and therefore less inclined to overreact to the downside.

[delphiman] 25/7/2024 10:38

Well, Lloyds have recovered and are in profit now after there results so perhaps its n ot a bad report, we have to factor the FTSE is down 62 points right now and that will affect NWG and Lloyds is in the blue so it would seam like Lloyds results are good and tomorrow should be a blue blue day for us to :)

[polar fox] 25/7/2024 06:41

So a 15% increase in the LLOY interim, but the word 'down' occurs a few times. The share price reaction will be interesting.
We'll see how things compare tomorrow.

[polar fox] 24/7/2024 20:13

From today's RNS:

The Company announces that following the purchase of these shares, the share buyback programme announced on 19 February 2024 has completed. Since the commencement of this buyback programme, the Company has repurchased for cancellation 104,485,015 Ordinary Shares at a volume weighted average price of 287.1225 pence per Ordinary Share for a total consideration of £299,999,997.21.
unquote
It probably won't take long for the next buyback to be announced.

Look out for the LLOY half-yearly RNS tomorrow. The LLOY share price very nearly got to 60p today - the last time it traded at 60p was early in 2020, just a few weeks before the first lockdown in March'20. So the two SPs are similarly placed, hitting new multi-year highs. Let's hope the two interims don't disappoint.

[delphiman] 24/7/2024 16:20

hxxps://deal.ig.com/web-platform/#/tearoff/news/20240724-nL8N3JG143

[smurfy2001] 22/7/2024 19:27

Latest consensus (Average) suggests NatWest will pay a dividend of 17.1p.

[skinny] 22/7/2024 10:24

8+ year high @338.50p

[gcom2] 22/7/2024 10:21

almost doubled off the Liz Trust lows nowhow sentiment changes

[polar fox] 21/7/2024 07:19

It seems that Reeves is going to give public sector workers above-inflation pay rises and is promising a decision this month. The overall context is reported by the BBC thus:

Pay rises for teachers and some NHS staff could cost an extra £3bn if above-inflation salary boosts go ahead, the Institute for Fiscal Studies (IFS) has warned.

The BBC understands both pay review bodies have recommended rises of 5.5%, as first reported in the Times, external.

The paper says this is significantly higher than the 3% the government has budgeted for.

IFS director Paul Johnson said the money would need to be found through borrowing, increased taxes or spending cuts, as there is "no fourth option".

A teachers' union said a 5.5% pay award would be a "step in the right direction", but said strike action would "seem inevitable" if the recommendation was ignored.

The independent pay review bodies represent 514,000 teachers and 1.36 million NHS workers.

Speaking to BBC Radio 4's Today programme, Mr Johnson said he was not "terribly surprised" by the figure reported by the Times, as it was "roughly what pay is rising by across the economy".

If the 5.5% figure was replicated across the entire public sector, beyond the reported recommendations for teachers and the NHS, that would equate to £10bn of extra funding required, he added.
unquote

£10bn of extra funding. And the public finances, IMO, are in a similar position to a single mum, with two children, hopelessly trying to eke out an existence on nothing but Universal Credit.

So I got to thinking about HMT's sales of its NatWest holding. Currently, each 1% reduction is around 80m or so shares, producing about a quarter of a billion. Even with the share price at current multi-year highs, it would take 11-12 such 1% reductions to fund just the extra £3bn. That certainly puts the remaining holding into perspective, as well as all the pre-election BS from Hunt, regarding the holding and its disposal.

Good luck to the new chancellor, when Budget-time comes around in the autumn - she is going to need it. Will the answer be 'magical thinking', based largely on overly optimistic growth forecasts?

[smurfy2001] 19/7/2024 11:17

NatWest Group will release H1 Results at 7am on Friday 26th July. There will be a management presentation at 9am and a Fixed Income presentation at 1:30pm.