Citi Lifts NatWest Group Target to 840 GBp on Evelyn Partners Acquisition
Citi raised its price target on NatWest Group to 840 GBp from 810 GBp and maintained a Buy rating, highlighting the $3.7 billion Evelyn Partners acquisition in its upgraded estimates. NatWest reported FY25 total income of GBP 16.4 billion, pretax profit of GBP 7.7 billion and RoTE of 19.2%, with FY26 income forecast at GBP 17.2–17.6 billion.
1. Analyst Rating and Price Target Increase
On February 16, Citi analyst Andrew Coombs raised the price target on NatWest Group to 840 GBp from 810 GBp and maintained a Buy rating. The upgrade reflects Citi’s increased earnings estimates following NatWest’s acquisition of Evelyn Partners, which is expected to enhance the bank’s wealth management revenue.
2. FY25 Financial Performance
NatWest delivered FY25 total income of GBP 16.4 billion and pretax profit of GBP 7.7 billion, with a net interest margin of 2.34% and a Common Equity Tier 1 ratio of 14%. Return on Tangible Equity reached 19.2%, while dividends per share rose 51% year-over-year, underscoring robust profitability and capital strength.
3. FY26 Guidance and Strategic Outlook
Management expects FY26 total income excluding notable items to range between GBP 17.2 billion and GBP 17.6 billion, with operating expenses (excluding litigation and conduct costs) around GBP 8.2 billion. The bank forecasts a loan impairment rate below 25 basis points and aims to sustain a Return on Tangible Equity above 17% as it builds productivity and deepens customer relationships.