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 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]
Truist slashes prime rate to 6.75%, signaling easier borrowing amid Fed's easing path.
- Prime rate drops from 7.00% to 6.75%, the fourth cut in 2025, reflecting broader monetary easing to bolster economic activity.
- Follows Fed's policy shift, potentially boosting Truist's loan growth in consumer, small business, and commercial segments.
- Reinforces Truist's position as a top-10 U.S. bank with leading market share in high-growth regions.
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]
Truist slashes prime rate to 6.75%, signaling easier borrowing amid Fed's easing path.
- Prime rate drops from 7.00% to 6.75%, the fourth cut in 2025, reflecting broader monetary easing to bolster economic activity.
- Follows Fed's policy shift, potentially boosting Truist's loan growth in consumer, small business, and commercial segments.
- Reinforces Truist's position as a top-10 U.S. bank with leading market share in high-growth regions.
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
Explore BasketInvestment 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.
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