NatWest Group PLC (LSE:NWG) is not shouting for attention, but the numbers are doing it for them.
Deutsche Bank has reaffirmed its 'buy' rating following better-than-expected first-quarter results, highlighting strong revenue and deposit trends.
Analysts maintained a 600p price target, well above the 482p closing price, pointing to continued upside for investors willing to look past macro noise, while UBS also reiterated its support and raised its price target to 540p.
Revenues first three months of the year came in 3% ahead of consensus, with an 8% beat on non-interest income and a modest 1% beat on net interest income.
A shift in revenue mix, partly due to corporate centre activity, means the outperformance was broad-based. Costs were 5% lower than expected, helping deliver a 14% pre-provision beat.
Although impairments were 12% higher than forecast, pre-tax profit still came in 14% ahead of consensus.
The group’s common equity tier 1 capital ratio stood at 13.8%, 10 basis points better than expected, adding to the positive tone.
For a bank long seen as constrained by political baggage, NatWest is beginning to show real momentum. Analysts see more to come.
The shares were down 1.3% at 475.8p on Tuesday.