Deutsche Bank vs NatWest
This page compares Deutsche Bank AG and NATWEST GROUP PLC, examining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.
This page compares Deutsche Bank AG and NATWEST GROUP PLC, examining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial a...
Why It's Moving
Deutsche Bank Accelerates Shareholder Value with Bold 2028 Targets and Rate Cut Optimism
- Raised RoTE target to >13% by 2028 with €5B incremental revenues expected, including €2B from German market leverage amid fiscal stimulus[2].
- Confirmed 2025 forecasts on track: €32B revenues, RoTE >10%, cost/income <65%, affirming transformation success[2].
- Slashed prime lending rate to 6.75% effective Dec 11 and reiterated base case for Fed's 25bp December cut followed by extended pause[1][3].
NatWest rallies as chairman buys shares and bank prepares to retire $1.5bn AT1 notes — small but confidence-boosting moves ahead of year‑end
- Chairman share purchase: NatWest chairman Rick Haythornthwaite bought 23,869 ordinary shares at £6.2820 each on 5 December, a public insider purchase that investors often read as management signalling confidence in the stock. [3]
- Planned AT1 redemption: NatWest filed to redeem all $1.5bn of its 6.0% perpetual AT1 notes on 29 December 2025, which the bank expects will lift its Common Equity Tier 1 (CET1) ratio by roughly 5 basis points — a small but positive capital improvement ahead of year‑end. [2]
- Market context and technical action: The stock recently hit a 52‑week high earlier this month, reflecting positive sentiment that these governance and capital actions may be reinforcing; analyst views remain mixed but the combination of insider buying and the AT1 call can temper investor concern over capital structure. [1]
Deutsche Bank Accelerates Shareholder Value with Bold 2028 Targets and Rate Cut Optimism
- Raised RoTE target to >13% by 2028 with €5B incremental revenues expected, including €2B from German market leverage amid fiscal stimulus[2].
- Confirmed 2025 forecasts on track: €32B revenues, RoTE >10%, cost/income <65%, affirming transformation success[2].
- Slashed prime lending rate to 6.75% effective Dec 11 and reiterated base case for Fed's 25bp December cut followed by extended pause[1][3].
NatWest rallies as chairman buys shares and bank prepares to retire $1.5bn AT1 notes — small but confidence-boosting moves ahead of year‑end
- Chairman share purchase: NatWest chairman Rick Haythornthwaite bought 23,869 ordinary shares at £6.2820 each on 5 December, a public insider purchase that investors often read as management signalling confidence in the stock. [3]
- Planned AT1 redemption: NatWest filed to redeem all $1.5bn of its 6.0% perpetual AT1 notes on 29 December 2025, which the bank expects will lift its Common Equity Tier 1 (CET1) ratio by roughly 5 basis points — a small but positive capital improvement ahead of year‑end. [2]
- Market context and technical action: The stock recently hit a 52‑week high earlier this month, reflecting positive sentiment that these governance and capital actions may be reinforcing; analyst views remain mixed but the combination of insider buying and the AT1 call can temper investor concern over capital structure. [1]
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 BasketEuropean Financial Consolidation
BNP Paribas's acquisition of AXA Investment Managers could trigger a wave of mergers in European finance. These carefully selected stocks represent potential buyers and targets in banking, insurance, and asset management as the industry reshapes for the future.
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
Explore BasketEuropean Financial Consolidation
BNP Paribas's acquisition of AXA Investment Managers could trigger a wave of mergers in European finance. These carefully selected stocks represent potential buyers and targets in banking, insurance, and asset management as the industry reshapes for the future.
Published: July 2, 2025
Explore BasketInvestment Analysis
Pros
- Deutsche Bank more than doubled its profit before tax to €5.3 billion in the first half of 2025, reflecting strong profitability improvement.
- The bank delivered a post-tax return on tangible equity (RoTE) above 10%, showcasing the strength of its underlying business model.
- Consistent revenue growth of 6% year over year for the first half of 2025, with adjusted costs remaining flat, indicating operational efficiency.
Considerations
- Deutsche Bank’s stock price is forecasted to decline by around 3.58% by the end of 2025, suggesting near-term valuation pressure.
- Leverage ratio remains relatively low at 4.7%, which could constrain capital deployment compared to some peers.
- The bank faces a medium level of price volatility and a sentiment environment marked by fear, potentially impacting investor confidence.
NatWest
NWG
Pros
- NatWest has a strong retail banking franchise in the UK with a diversified portfolio including personal, business, and commercial banking.
- The group has been focused on digital transformation and cost efficiencies, improving operational resilience and customer experience.
- NatWest benefits from moderate economic growth prospects in its core UK market, supporting loan growth and asset quality.
Considerations
- Exposure to UK economic and political uncertainties, including Brexit residual impacts and interest rate fluctuations, may affect performance.
- The bank is subject to regulatory and legal challenges in a highly competitive UK banking sector with margin pressures.
- Relatively high impairment charges risk stemming from consumer and corporate credit quality in a cautious macroeconomic environment.
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