NatWestTruist

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 ...

Why It's Moving

NatWest

NatWest Group Shares Rise After Q3 Earnings Beat and Positive Capital Position

  • Q3 2025 EPS came in at 0.5276, exceeding analyst estimates by 24.35%, while revenue surpassed expectations at $5.55 billion, reinforcing investor confidence.
  • NatWest will redeem $1.5 billion of 6.0% perpetual AT1 capital notes on December 29, 2025, improving its Common Equity Tier 1 (CET1) ratio by approximately 5 basis points, strengthening its capital base.
  • The 2025 Bank of England stress test confirmed NatWest’s CET1 and leverage ratios are well above minimum stress requirements, underscoring balance sheet resilience and capacity to sustain shareholder payouts and customer support under severe economic conditions.
Sentiment:
🐃Bullish
Truist

Truist Shares Rise on Solid Q3 Earnings Beat and Strategic Rate Cuts Boosting Loan Growth Prospects

  • Q3 earnings per share came in at $1.04, beating consensus estimates by $0.05 and reflecting a 1.9% year-over-year revenue increase to $5.24 billion, signaling healthy core business momentum.
  • The company decreased its prime lending rate twice since September—from 7.50% down to 7.00% by end of October—aiming to stimulate loan demand in a competitive credit market environment.
  • CEO Bill Rogers scheduled a keynote at the Goldman Sachs 2025 Financial Services Conference, emphasizing Truist's commitment to strategic growth and investor engagement amid a dynamic macroeconomic backdrop.
Sentiment:
🐃Bullish

Which Baskets Do They Appear In?

UK Banking Consolidation

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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Investment Analysis

NatWest

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

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.

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