NWG LN

NatWest Group Plc

Finance/Real Estate


Presented:08/22/2024
Price:£3.45
Cap:$43.94B
Current Price:£3.55
Cap:$45.23B

Presented

Date08/22/2024
Price£3.45
Market Cap$43.94B
Ent Value$64.00B
P/E Ratio7.21x
Book Value£3.95
Div Yield5.07%
Shares O/S8,292.01M
Ave Daily Vol28,965,428
Short IntN/A

Current

Price£3.55
Market Cap$45.23B
NatWest Group Plc engages in the provision of international banking and financial services. It operates through the following segments: Retail Banking, Private Banking, Commercial and Institutional, and Central Items and Other. The Retail Banking segment provides a comprehensive range of banking products and related financial services including current accounts, mortgages, personal unsecured lending, and personal deposits. The Private Banking segment focuses on the private banking and wealth management services to UK-connected high-net-worth individuals. The Commercial and Institutional segment includes expertise and tailored solutions needed by businesses, from entrepreneurs through to large corporate organizations. The Central Items and Other segment refer to the corporate functions, such as treasury, finance, risk management, compliance, legal, communications and human resources. The company was founded on March 25, 1968 and is headquartered in Edinburgh, the United Kingdom.

Publicly traded companies mentioned herein: Lloyds Banking Group PLC (LLOY LN), NatWest Group PLC (NWG LN)

Highlights

The presenter is long shares of NatWest Group PLC (NWG LN), which he considers the best combination of clean and cheap within the European bank sector. NWG is at the tail end of a 15-year cleanup and is emerging with strong earnings visibility, improving returns on tangible equity, an attractive capital return trajectory, and a path to MSD% tangible book value growth going forward. The stock currently trades at £3.45, which equates to ~1x TB and ~7x consensus 2025 EPS. Over the next year, he expects a 30% return including dividends. 

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Idea Discussion

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