The NatWest share price remained in a tight range in the past few days as investors wait for the upcoming quarterly results. It was trading at 537p on Wednesday, a few points below the year-to-date high of 562p. It remains 260% from its lowest point in 2023.
NatWest Bank to report quarterly results
NatWest Group, one of the biggest banks in the UK, will publish its third-quarter results on Friday. These numbers will follow those of Lloyds Bank and Barclays, two of its biggest competitors.
They also come at a time when the British economy is slowing, inflation is steady, and interest rates are still at an elevated level based on historical standards.
The most recent results showed that the bank, which owns popular companies like Coutts, NatWest Bank, Royal Bank of Scotland, and Ulster Bank, did well.
Its net interest income rose by 13% in the first half of the year to £6.1 billion as the net income jumped by 11.9% to £7.9 billion. Most importantly, its profit for the period jumped by 19.5% to £2.6 billion, with the high interest rates playing a role in this.
The company also benefited from it acquisitio of some assets of Sainsbury’s Bank. This buyout helped it to add 1.1 million customers in the first half of the year.
City analysts are upbeat about the upcoming results. The average estimate is that the company’s net interest income rose to £3.2 billion in the third quarter from £3.09 billion in 2.
NatWest’s total income is expected is expected to move from £4 billion in the second quarter to £4.09 billion. The profit for the period is expected to rise to £1.34 billion.
In the long-term, analyts are optimistic in its ability to keep growing it revenue and profits. The total income is expected to come in at £14.7 billion this year, followed by £16.27 billion in 2025, £17.6 billion in 2026, and £17.6 billion in the following year.
There are a few things that may impact the NatWest stock price. One of them is the fear that Rachel Reeves will announce a windfall tax to fill the budget deficit. Some analysts believe that such a tax would go a long way to narrowing the deficit over time. This, however, could hurt the shareholder returns.
NatWest share price technical analysis
The daily chart shows that the NWG share price peaked at 565p in August this year. It has then pulled back to the current 537p.
The NatWest stock price has remained above the 50-day and 100-day Exponential Moving Averages (EMA). It has also formed a symmetrical triangle pattern whose two lines are about to converge.
Therefore, the stock will likely have a strong bullish breakout in the coming days. If this happens, the next key resistance level to watch will be the year-to-date high of 565p, its highest point this year. A move above that level will point to more gains, potentially to the 600p.
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