Price AnalysisStocks

NatWest Share Has Gained: Should You Buy this Bank Stock?

  • NatWest’s share price has recorded a massive bullish breakout.
  • The rally emerged after a special dividend and impressive results.
  • Rumor suggests the company is eying Quilter.

NatWest (LON: NWG) has presented impressive performance over the last few weeks. The share has climbed to the 265p highs, the highest mark since 11 February 2022. Moreover, it has gained over 37% from May 2022 lowest zone, meaning NatWest has outshined its peers such as Lloyds and Barclays.

Lucrative NatWest Times

Formerly Royal Bank of Scotland, NatWest is a leading British bank capped above 38 billion pounds. The central bank runs some renowned brands in the United Kingdom, including Drummonds, Child & Co, Coutts, and Ulster Bank.

Meanwhile, NWG maintained its bullish strength as market players digested the latest half-year outcomes. The company made 1.8 billion pounds in profit, whereas ROTE (return on tangible equity) stood at 13.1%. Moreover, NatWest slashed costs, placing the cost-to-income ratio at 58.3%.

Also, the firm confirmed its net lending surged by 9.3 billion pounds to 361.6 billion pounds, whereas customer deposits surged to more than 476.2 billion during that timeframe. NWG share price surged after NatWest declared a special dividend following its impressive results.

The Bank of England has contributed to NatWest’s attractive performance as BOE has been increasing interest rates. Financial experts expect the bank to execute another rate increase on Thursday. Unlike its peer Barclays, NatWest lacks a massive investment bank, helping it pad its performance in 2022.

Also, NWG rose due to the rumor of the firm considering securing Quilter while building its wealth management sector. Such an acquisition will value around 1.7 billion pounds. Experts trust the buy will help NatWest diversify its operation as Quilter boasts more than 118 billion pounds in AUM (asset under management).

NWG Share Prediction

According to the daily chart, NWG share was printing a climbing triangle setup before the earnings announcement. The triangle’s upper side stood at 232p. This pattern confirms a bullish signal in the price analysis.

The stock has deviated beneath 25 and 50-day MAs, whereas the MACD moved beyond the neutral level. Thus, the share will likely keep surging, with bulls targeting the 300p crucial resistance. Meanwhile, ‘extremely’ near-term tendencies will see the share retesting the 240p support.

Editorial credit: Simon Vayro / shutterstock.com

Related Articles

EconomyStocksUncategorized

Deutsche Bank Chairman Advises Against EU’s Overdependence on Overseas Financiers

Christian Sewing, the principal director of Deutsche Bank, issued a warning on...

EconomyPrice Analysis

ECB Policymakers Consider a Mild Rate Increase

Preliminary conversations indicate a shortage of enthusiasm for a subsequent hike of...

EconomyPrice AnalysisStocks

US Stock Futures Surge As Decreasing Inflation Energizes Bulls

On Wednesday, the Dow Jones Industrial Average DJIA, +0.18%, increased 55 points,...

EconomyPrice AnalysisStocks

Barclays Lowers Its Projection for 2023, Predicts the Worst Expansion in Four Decades

Barclays issued a warning stating 2023 is expected to be among the...