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 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.
Truist Delivers Q4 Earnings Beat as Loan Growth and Fee Surge Signal Banking Resilience
- Solid commercial and consumer loan demand boosted net interest income by an estimated 3.2%, underscoring strength in core banking amid Fed rate cuts.
- Fee income soared with investment banking up 23.6% YoY and lending fees rising 11.6%, fueled by capital market volatility and deal activity.
- Management projects 1.5-2.5% revenue growth for 2026 with minimal expense hikes, reinforcing confidence in sustained profitability.
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.
Truist Delivers Q4 Earnings Beat as Loan Growth and Fee Surge Signal Banking Resilience
- Solid commercial and consumer loan demand boosted net interest income by an estimated 3.2%, underscoring strength in core banking amid Fed rate cuts.
- Fee income soared with investment banking up 23.6% YoY and lending fees rising 11.6%, fueled by capital market volatility and deal activity.
- Management projects 1.5-2.5% revenue growth for 2026 with minimal expense hikes, reinforcing confidence in sustained profitability.
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'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.
Truist (TFC) Next Earnings Date
Truist Financial (TFC) reported its Q4 2025 earnings on January 21, 2026, covering the quarter ended December 2025. The next earnings release, for Q1 2026, is scheduled for April 17, 2026. This follows the company's confirmed pattern of mid-April reporting for the first quarter.
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.
Truist (TFC) Next Earnings Date
Truist Financial (TFC) reported its Q4 2025 earnings on January 21, 2026, covering the quarter ended December 2025. The next earnings release, for Q1 2026, is scheduled for April 17, 2026. This follows the company's confirmed pattern of mid-April reporting for the first quarter.
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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