NatWest can’t seem to keep itself out of the headlines.
With the dust barely settled on the Nigel Farage debanking furore, the government has already ramped up its efforts to sell the 36% stake overhanging from the 2008 financial crash.
Without a permanent chief executive following Alison Rose’s departure in the fallout of the Farage affair, UBS says all eyes will be on NatWest's net interest margins or NIM in next week’s finals following the material downgrades at the end of the third quarter.
The Swiss bank expects final quarter profits of £1.2bn, down 24% and £6.25bn for the full twelve months.
“NatWest is trading at an implied COE of 16%, above the European bank average, not pricing the potential for NIM expansion in 2025 and sustained dividends and share buybacks.
“Our 4Q23 profit forecasts are broadly in line with consensus at a pre-provision profit level.”
Buy with a price target of 250p is UBS’ investment view.