Lloyds Banking Group vs NatWest
This page compares Lloyds Banking Group and NatWest, examining business models, financial performance, and market context. It presents neutral, accessible analysis to help understanding without promotion. Readers can consider strategy, operations, and market positioning to form an informed view. Educational content, not financial advice.
This page compares Lloyds Banking Group and NatWest, examining business models, financial performance, and market context. It presents neutral, accessible analysis to help understanding without promot...
Why It's Moving
Lloyds Banking Group Hits 52-Week High as AI Push and Analyst Upgrades Fuel Momentum
- 52-Week High Breakthrough: Shares reached a new peak on January 20, crossing critical 100p level after years of stagnation, driven by institutional buying and positive sector dynamics.
- Analyst Upgrades Boost Confidence: Barclays raised target to 120p and Jefferies to 119p this month, citing expiring 2022 hedges that now lock in benefits from lower 3.75% rates versus prior 1.5%.
- AI Academy Launch Signals Innovation: On January 26, Lloyds unveiled an AI Academy for full workforce AI literacy by 2026, positioning the bank to harness technology for efficiency and growth.
NatWest Powers Ahead as Analysts Hike Targets and Buybacks Signal Confidence
- Deutsche Bank raised its price target to GBX 730 with a 'buy' rating, joined by Citi at GBX 765 ('buy') and JPMorgan at GBX 750 ('overweight'), reflecting strong faith in NatWest's growth trajectory.
- Ongoing buyback programme saw repurchases of over 2.4 million shares across January 19-22 at average prices around GBX 650, with plans to cancel them to enhance shareholder value.
- Consensus leans 'Moderate Buy' with an average target of GBX 693, as shares trade near GBX 653, supported by recent insider buying and attractive valuation metrics like a PE of 10.
Lloyds Banking Group Hits 52-Week High as AI Push and Analyst Upgrades Fuel Momentum
- 52-Week High Breakthrough: Shares reached a new peak on January 20, crossing critical 100p level after years of stagnation, driven by institutional buying and positive sector dynamics.
- Analyst Upgrades Boost Confidence: Barclays raised target to 120p and Jefferies to 119p this month, citing expiring 2022 hedges that now lock in benefits from lower 3.75% rates versus prior 1.5%.
- AI Academy Launch Signals Innovation: On January 26, Lloyds unveiled an AI Academy for full workforce AI literacy by 2026, positioning the bank to harness technology for efficiency and growth.
NatWest Powers Ahead as Analysts Hike Targets and Buybacks Signal Confidence
- Deutsche Bank raised its price target to GBX 730 with a 'buy' rating, joined by Citi at GBX 765 ('buy') and JPMorgan at GBX 750 ('overweight'), reflecting strong faith in NatWest's growth trajectory.
- Ongoing buyback programme saw repurchases of over 2.4 million shares across January 19-22 at average prices around GBX 650, with plans to cancel them to enhance shareholder value.
- Consensus leans 'Moderate Buy' with an average target of GBX 693, as shares trade near GBX 653, supported by recent insider buying and attractive valuation metrics like a PE of 10.
Investment Analysis
Pros
- Lloyds has lifted its 2025 profitability guidance due to lower expected loan losses and higher net interest income, projecting a return on tangible equity of about 14%.
- Mortgage volume growth and an expanding net interest margin support underlying performance, benefiting from a structural hedge amid elevated UK inflation.
- The share price has hit a 10-year high in 2025, supported by multiple analyst upgrades and insider buying signalling renewed confidence.
Considerations
- An £800 million provision for a UK motor finance investigation creates a significant financial headwind and regulatory uncertainty.
- Despite positive momentum, analyses note a high price-to-earnings ratio suggesting the stock may be overvalued, posing downside risk if earnings falter.
- Trading volumes have been below average recently, which may reflect reduced investor interest or confidence at this time.
NatWest
NWG
Pros
- NatWest exhibits higher profitability ratios compared to Lloyds, including stronger returns on equity and net margins.
- The group benefits from a diversified UK-focused banking franchise with strategic initiatives aimed at improving efficiency and customer engagement.
- Its market capitalization and financial metrics indicate a solid competitive position relative to Lloyds in the UK banking sector.
Considerations
- NatWest faces ongoing challenges from UK economic conditions, including heightened regulatory scrutiny and exposure to interest rate fluctuations.
- The bank's stock performance and volatility metrics suggest higher risk levels compared to Lloyds, potentially impacting shareholder returns.
- Execution risks remain as NatWest continues to invest heavily in digital transformation and capital allocation, which may pressure near-term profitability.
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
Europe's Banking Merger Wave: The Consolidation Play That Could Reshape Finance
Explore Europe's banking merger wave. Invest in financial consolidation with Nemo's Neme, featuring Deutsche Bank, UBS, & ING. Start with fractional shares from $1.
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
Europe's Banking Merger Wave: The Consolidation Play That Could Reshape Finance
Explore Europe's banking merger wave. Invest in financial consolidation with Nemo's Neme, featuring Deutsche Bank, UBS, & ING. Start with fractional shares from $1.
Aimee Silverwood | Financial Analyst
July 25, 2025
Lloyds Banking Group (LYG) Next Earnings Date
Lloyds Banking Group's next earnings date is scheduled for February 19, 2026, covering the Q4 2025 period. This follows the pattern of prior-year releases in late February for full-year results. The earnings call will provide insights into financial performance and outlook.
NatWest (NWG) Next Earnings Date
NatWest Group's next earnings release is estimated for Friday, February 13, 2026, covering the Q4 2025 period. This date aligns with the company's historical pattern of mid-February reporting for year-end results, following the Q3 2025 earnings on October 24, 2025. Note that the date remains unconfirmed by the company, with some estimates citing February 12.
Lloyds Banking Group (LYG) Next Earnings Date
Lloyds Banking Group's next earnings date is scheduled for February 19, 2026, covering the Q4 2025 period. This follows the pattern of prior-year releases in late February for full-year results. The earnings call will provide insights into financial performance and outlook.
NatWest (NWG) Next Earnings Date
NatWest Group's next earnings release is estimated for Friday, February 13, 2026, covering the Q4 2025 period. This date aligns with the company's historical pattern of mid-February reporting for year-end results, following the Q3 2025 earnings on October 24, 2025. Note that the date remains unconfirmed by the company, with some estimates citing February 12.
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 BasketBuy LYG or NWG in Nemo
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Lloyds Banking Group vs Manulife
Lloyds Banking Group vs Manulife
Lloyds Banking Group vs Truist
Lloyds Banking Group vs Truist
Lloyds Banking Group vs MetLife
Lloyds Banking Group vs MetLife