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published in Blogs
Feb 21, 2022

NatWest (NWG, $6.39) posts profits in 2021, rebounding from the loss a year ago

NatWest earned a pretax profit of 4 billion pounds ($5.45 billion) for the 2021 calendar year, a bounce back from a -351 million pound loss in 2020.

British banks have benefited from a rebound in consumer spending, smaller than expected loan defaults and a solid housing market since the initial phase of the COVID-19 pandemic.

NatWest also announced a dividend of 7.5 pence per share and a 750 million pound share repurchase.

However, analysts are concerned that inflation at near 30-year highs poses a risk to household incomes and threatens the recovery.

β€œWe are acutely aware of the challenges that many people, families and businesses continue to face up and down the country and are working alongside our customers to provide the support they need,” said NatWest Chief Executive Alison Rose.

The bank lowered its annual cost-cutting target to 3% from 4% for each of the next two years, owing to inflation pressures and reinvestment. Nevertheless, it achieved its 4% cost-cutting target for 2021.

Related Ticker: NWG

NWG's RSI Oscillator peaks and leaves overbought zone

The 10-day RSI Oscillator for NWG moved out of overbought territory on March 06, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 instances where the indicator moved out of the overbought zone. In of the 34 cases the stock moved lower in the days that followed. This puts the odds of a move down at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where NWG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for NWG turned negative on March 26, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 39 similar instances when the indicator turned negative. In of the 39 cases the stock turned lower in the days that followed. This puts the odds of success at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where NWG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

NWG broke above its upper Bollinger Band on February 25, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on March 17, 2025. You may want to consider a long position or call options on NWG as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NWG advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 314 cases where NWG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock better than average.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NWG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.626) is normal, around the industry mean (1.032). P/E Ratio (5.443) is within average values for comparable stocks, (17.155). Projected Growth (PEG Ratio) (0.501) is also within normal values, averaging (2.366). Dividend Yield (0.064) settles around the average of (0.059) among similar stocks. P/S Ratio (1.660) is also within normal values, averaging (2.926).

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

Notable companies

The most notable companies in this group are US Bancorp (NYSE:USB), PNC Financial Services Group (NYSE:PNC), Itau Unibanco Banco Holding SA (NYSE:ITUB), Deutsche Bank Aktiengesellschaft (NYSE:DB), Banco Bradesco SA (NYSE:BBD), Huntington Bancshares (NASDAQ:HBAN), Regions Financial Corp (NYSE:RF), KeyCorp (NYSE:KEY), Veritex Holdings (NASDAQ:VBTX).

Industry description

Regional banks have a smaller reach than major banks, and cater mostly to one region of a country, such as a state or within a group of states. They offer services often similar – albeit with some limitations/smaller scale – compared to major banks. Taking deposits, making loans, mortgages, leases, credit cards , fund management, insurance and investment banking. SunTrust Banks, State Street Corp., M&T Bank Corp. are some examples of U.S. regional banks.

Market Cap

The average market capitalization across the Regional Banks Industry is 5.92B. The market cap for tickers in the group ranges from 22.65 to 133.96B. HDB holds the highest valuation in this group at 133.96B. The lowest valued company is VLYPP at 22.65.

High and low price notable news

The average weekly price growth across all stocks in the Regional Banks Industry was -1%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was 8%. SYANY experienced the highest price growth at 45%, while BQCNF experienced the biggest fall at -25%.

Volume

The average weekly volume growth across all stocks in the Regional Banks Industry was 34%. For the same stocks of the Industry, the average monthly volume growth was -51% and the average quarterly volume growth was 61%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 50
P/E Growth Rating: 39
Price Growth Rating: 51
SMR Rating: 39
Profit Risk Rating: 59
Seasonality Score: -11 (-100 ... +100)
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General Information

a major bank

Industry RegionalBanks

Profile
Fundamentals
Details
Industry
Major Banks
Address
Gogarburn
Phone
+44 1315568555
Employees
63600
Web
https://www.natwestgroup.com