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FINANCIALS: NatWest Results Positive, Guidance Upgrades, Spread Supportive

FINANCIALS

NatWest (NWG: A3/BBB+/A) 2Q24 headlines look positive with a net income and loan loss beat, improvements to guidance on loan losses, income and returns for FY24, and CET1 ratio is 13.6%, fully 50bp higher than consensus. Spreads had only been small outperformers on the way into these results so could tighten further today, in our view.

  • “*NATWEST 2Q NET INCOME GBP1.18B, EST. GBP846.6M
  • *NATWEST SEES FY LOAN-LOSS RATE BELOW 0.15%, SAW BELOW 0.2%
  • *NATWEST SEES FY ROTE ABOVE +14%, SAW ABOUT +12%, EST. +13.5%
  • *NATWEST 2Q NET INTEREST INCOME GBP2.76B, EST. GBP2.62B
  • *METRO BANK SALE OF £2.5B RESIDENTIAL MORTGAGE TO NATWEST GROUP
  • *NATWEST SEES FY INCOME EX-ITEMS GBP14B [consensus: 13.8bn]” - BBG

Conf call is 0900 (London time) at: https://natwest-events.zoom.us/webinar/register/WN_nzF_gk4OSf2DnkGv7uFG8Q#/registration

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