NatWest vs Truist
NatWest and Truist: this page compares their business models, financial performance, and market context to help readers understand differences and similarities. The comparison is designed to be clear and accessible, focusing on fundamentals rather than speculation. Educational content, not financial advice.
NatWest and Truist: this page compares their business models, financial performance, and market context to help readers understand differences and similarities. The comparison is designed to be clear ...
Why It's Moving
NatWest's Stellar Dividend Hike Fuels Investor Optimism Amid Wealth Management Push
- Dividend leaped 51% to 32.5p after earnings per share hit 68p, beating forecasts and enhancing appeal for income-focused investors amid steady payout growth.
- Acquired Evelyn Partners for £2.7bn, doubling assets under management to £128bn and setting up significant fee income growth to counterbalance suspended buybacks.
- Ongoing £750m share buyback continued with 841,455 shares repurchased on February 9, underscoring capital return strategy even as broader integration risks linger.
Truist Financial Sparks Optimism with Steady Dividend Hike and Valuation Buzz Amid Banking Sector Strength.
- Dividend declaration signals board's faith in profitability, maintaining the $0.52 quarterly payout amid positive Q4 reactions to broad loan growth and client wins.
- Stock surged 6.2% over the past week to around $54, with valuation models pegging it as undervalued by 17.8%, drawing investor focus on balance sheet strength.
- Recent analyst notes point to surging dealmaking fees offsetting softer loan trends, positioning Truist favorably in a transforming banking landscape.
NatWest's Stellar Dividend Hike Fuels Investor Optimism Amid Wealth Management Push
- Dividend leaped 51% to 32.5p after earnings per share hit 68p, beating forecasts and enhancing appeal for income-focused investors amid steady payout growth.
- Acquired Evelyn Partners for £2.7bn, doubling assets under management to £128bn and setting up significant fee income growth to counterbalance suspended buybacks.
- Ongoing £750m share buyback continued with 841,455 shares repurchased on February 9, underscoring capital return strategy even as broader integration risks linger.
Truist Financial Sparks Optimism with Steady Dividend Hike and Valuation Buzz Amid Banking Sector Strength.
- Dividend declaration signals board's faith in profitability, maintaining the $0.52 quarterly payout amid positive Q4 reactions to broad loan growth and client wins.
- Stock surged 6.2% over the past week to around $54, with valuation models pegging it as undervalued by 17.8%, drawing investor focus on balance sheet strength.
- Recent analyst notes point to surging dealmaking fees offsetting softer loan trends, positioning Truist favorably in a transforming banking landscape.
Investment Analysis
NatWest
NWG
Pros
- NatWest posted a strong Q3 2025 pre-tax operating profit of £2.1 billion, a 30% increase year-on-year, reflecting effective restructuring in a competitive market.
- The bank holds a Narrow Economic Moat rating for its robust retail and commercial banking franchise supported by a large deposit base and low-risk growth strategy.
- NatWest expects income excluding notable items around £16.3 billion in 2025 with a projected return on tangible equity over 18%, indicating solid profitability.
Considerations
- NatWest’s stock is currently considered overvalued relative to its fair value estimate of £5.50, limiting upside potential in the near term.
- Net interest margins, a key profit driver, are expected to peak by 2027, suggesting future earnings growth may moderate thereafter.
- The current price-to-earnings ratio is higher than its 3- and 5-year averages, indicating possible valuation risk compared with historical norms.
Truist
TFC
Pros
- Truist Financial Corporation has a substantial market capitalization around $56 billion, indicating a large-scale banking footprint with significant resources.
- The company increased its holdings in NatWest by 45.2% in Q2 2025, reflecting institutional confidence in NatWest’s prospects and possible synergy potential.
- Truist maintains a price-to-earnings ratio above NatWest’s, suggesting market expectations for stronger earnings growth or premium valuation.
Considerations
- Truist’s stock price is more volatile and priced higher relative to NatWest, potentially implying greater market risk or overvaluation.
- The company’s exposure to the US banking market may subject it to regulatory and economic uncertainties compared to NatWest’s UK-focused operations.
- Truist’s competitive position faces challenges in balancing growth with risk management amid evolving interest rate and credit environments.
Related Market Insights
Santander's £2.65bn TSB Deal: The UK Banking Shake-Up That Changes Everything
Santander's £2.65 billion acquisition of TSB creates the UK's third-largest retail bank, reshaping competitive dynamics and potentially triggering further consolidation across the sector.
Aimee Silverwood | Financial Analyst
July 25, 2025
Related Market Insights
Santander's £2.65bn TSB Deal: The UK Banking Shake-Up That Changes Everything
Santander's £2.65 billion acquisition of TSB creates the UK's third-largest retail bank, reshaping competitive dynamics and potentially triggering further consolidation across the sector.
Aimee Silverwood | Financial Analyst
July 25, 2025
NatWest (NWG) Next Earnings Date
NatWest Group (NWG) reported its Q4 2025 earnings on February 13, 2026, prior to market open. The next earnings release, covering Q1 2026, is scheduled for approximately May 1, 2026, consistent with the company's quarterly reporting pattern and multiple analyst projections. Investors should monitor official announcements for any adjustments to this timeline.
Truist (TFC) Next Earnings Date
Truist Financial Corporation (TFC) is scheduled to report its Q1 2026 earnings on Friday, April 17, 2026, covering the quarter ended March 31, 2026. This date aligns with the company's official schedule for its earnings conference call at 8 a.m. ET. Subsequent releases are set for Q2 on July 17, 2026, and Q3 on October 16, 2026.
NatWest (NWG) Next Earnings Date
NatWest Group (NWG) reported its Q4 2025 earnings on February 13, 2026, prior to market open. The next earnings release, covering Q1 2026, is scheduled for approximately May 1, 2026, consistent with the company's quarterly reporting pattern and multiple analyst projections. Investors should monitor official announcements for any adjustments to this timeline.
Truist (TFC) Next Earnings Date
Truist Financial Corporation (TFC) is scheduled to report its Q1 2026 earnings on Friday, April 17, 2026, covering the quarter ended March 31, 2026. This date aligns with the company's official schedule for its earnings conference call at 8 a.m. ET. Subsequent releases are set for Q2 on July 17, 2026, and Q3 on October 16, 2026.
Which Baskets Do They Appear In?
UK Banking Consolidation
Santander's £2.65 billion acquisition of TSB is reshaping the UK banking sector. This collection features companies positioned to benefit from this major consolidation, including direct competitors, potential M&A targets, and the investment banks facilitating these industry-changing deals.
Published: July 2, 2025
Explore BasketWhich Baskets Do They Appear In?
UK Banking Consolidation
Santander's £2.65 billion acquisition of TSB is reshaping the UK banking sector. This collection features companies positioned to benefit from this major consolidation, including direct competitors, potential M&A targets, and the investment banks facilitating these industry-changing deals.
Published: July 2, 2025
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