NatWest Shares Jump 4% on UBS Forecast Upgrade and Citigroup Target Hike
NatWest Group shares rose 4% to 603.88p after UBS upgraded its forecasts following Q4 pre-tax profit 7% above consensus, net interest income 3% ahead and loan impairments at 13 basis points. Citigroup’s price target hike added another 4.3% gain during thin holiday trading with bond yields steady.
1. UBS Lifts Earnings Forecasts
UBS raised its Q4 forecasts for NatWest Group after pre-tax profit excluding notable items came in 7% above consensus, net interest income exceeded estimates by 3%, and loan impairments fell to 13 basis points. The upgrade emphasized stronger capital generation and cost management, driving the stock to 603.88p.
2. Citigroup Raises Price Target
Citigroup increased its price target on NatWest Group, contributing to a 4.3% intraday share gain. Analysts cited improving net interest margins and robust retail deposit growth as drivers for the target hike.
3. Deutsche Bank Flags Revenue Caution
Deutsche Bank issued a cautious revenue guide for 2026, warning of potential headwinds from market volatility and regulatory costs. The warning tempered enthusiasm despite recent positive revisions from other banks.
4. Market Context and Trading Conditions
Trading volumes were muted due to holidays in both the US and China, while steady bond yields and benign inflation reinforced expectations of Fed rate cuts. The supportive backdrop for financial shares helped sustain NatWest’s rally.