NatWest

NWG

Market cap $66.2B

Diamond Hill International Strategy returned 3.87% (net of fees) and the MSCI ACWI ex USA Index returned 5.05%. Sumitomo Densetsu, a Japanese electrical contractor, benefited from a takeover bid by Daiwa House, whose tender offer at a premium price drove the stock higher. Stock selection in information technology and industrials contributed, along with our overweight to communication services.

NatWest Group PLC (LSE:NWG) shares rose 4% to 603.88p after UBS upgraded its earnings forecasts following better-than-expected fourth quarter and stronger capital generation. The Swiss bank said fourth-quarter pre-tax profit excluding notable items and litigation and conduct charges was 7% above consensus, with net interest income 3% ahead and operating costs in line, while impairments were 30% better than expected at 13 basis points of loans.

NatWest Group plc (NWG) Q4 2025 Earnings Call Transcript

NatWest Group delivered strong Q4 and FY25 results, with revenue and earnings easily clearing sell-side consensus. NWG's structural hedge continues to boost net interest income, with management guiding for growing hedge income through 2030. The £2.7 billion Evelyn Partners acquisition will more than double NatWest's AUMA while also diversifying its revenue away from net interest income.

British bank NatWest softened its fossil fuel lending policy on Friday as it released full-year results, prompting activist ShareAction to call on investors to oppose re-election of the company's chair at its forthcoming annual meeting.

NatWest guided for further income growth and profitability this year as it reported fourth-quarter results that beat expectations.

NatWest Group PLC told investors that 2025 profit and income rose sharply, allowing it to hike shareholder returns again and tee up a fresh £750 million share buyback for the first half of 2026, as the UK lender raised its medium-term ambitions and set out new financial targets. The bank reported total income of £16.4 billion, up 12% year-on-year, helped by deposit margin expansion, stronger structural hedge income and lending growth.

NatWest said its annual profit rose 24% on Friday, slightly ahead of forecasts, and the lender set out more ambitious performance targets.

NatWest Group PLC's £2.7bn deal to buy Evelyn Partners may have spooked the market, but analysts at UBS think the share sell-off looks like an overreaction, and, as such they've kept a 'Buy' rating with a 780p price target, implying almost 29% upside from 605p. On Monday, the UK bank confirmed the acquisition of Evelyn Partners for £2.7bn - that's 15.1x FY25 adj EBITDA of £179m, for 130bps, UBS said - framing the purchase as a meaningful but manageable capital deployment.

NatWest Group plc (NWG) M&A Call Transcript