NatWest Group plc (NYSE:NWG) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.
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On December 4, Goldman Sachs downgraded NatWest Group plc (NYSE:NWG) to Neutral from Buy. It lifted the price target to 685 GBp from 665 GBp. The change came as part of the firm’s 2026 outlook for European banks. Goldman said it remains constructive on the sector. Investor attention is moving away from rates and credit. Growth and efficiency are now taking center stage. Capital deployment still matters most for creating shareholder value.
NatWest Group plc (NYSE:NWG)’s shares tell their own story. The stock is up more than 77% since the start of 2025. The bank’s October 24 Q3 2025 results explain why. The company’s profit before tax jumped 30.4% year over year to £2.18 billion, and total income rose 15.7% to £4.33 billion. These are strong numbers by any measure.
There is a clear risk. Falling UK interest rates could pressure earnings; however, NatWest has been preparing for this for some time. Management shifted focus toward fee-based businesses rather than relying only on interest income. That decision is starting to show results. In Q3 2025, non-interest income climbed 25.9% to £0.91 billion. Net interest income grew 12.7% to £3.09 billion, a slower but still solid pace. Net interest income reflects the gap between what banks earn on loans and what they pay on deposits.
NatWest Group plc (NYSE:NWG) has also leaned into structural hedges. These tools are complex but effective. They help protect lending margins when central banks cut rates. Many banks use similar hedges, but NatWest appears to have gone further. Its position extends into 2027, longer than most peers. That gives it more time to benefit from today’s rate environment. If this plays out as planned, the bank could deliver industry-leading margins. Returns on tangible equity may continue to improve.
NatWest Group plc (NYSE:NWG) serves more than 20 million customers. Its operations span retail, commercial, and private banking across the UK.
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