Highlights

  • Jefferies maintains a Buy rating on NatWest Group with a price target of GBP 6.30.
  • Attributable profit for Q3 2025 stood at GBP 1.6 billion, with Return on Tangible Equity (RoTE) at 22.3%.
  • Total income in Q3 2025 rose GBP 0.2 billion to GBP 4.2 billion quarter-on-quarter.
  • Assets under management and administration (AUMA) surged 8.1% to GBP 56 billion.

NatWest Group plc (LSE:NWG) has received a Buy rating from Jefferies, with the brokerage setting a target price of GBP 6.30. Recently, the company released its results for the third quarter of 2025.

The latest quarterly report highlights growth across all customer-facing businesses and a clear improvement in profitability and efficiency metrics.

Q3 Performance and Profitability

For the quarter ended 30 September 2025, total income (excluding notable items) rose to GBP 4.2 billion, up GBP 0.2 billion from the previous quarter. This performance drove an attributable profit of GBP 1.6 billion, translating into an impressive Return on Tangible Equity (RoTE) of 22.3%.

Net loans to customers increased by GBP 4.4 billion, reflecting demand across both retail and commercial portfolios. Customer deposits remained largely stable, with a marginal GBP 1.1 billion decrease, while the loan-to-deposit ratio improved by two percentage points to 88%.

NatWest also maintained a liquidity position, with an average Liquidity Coverage Ratio (LCR) of 148%.

Efficiency Through Simplification

The bank’s ongoing simplification and digital transformation initiatives continue to deliver tangible results. NatWest reported a 5% year-to-date improvement in its cost-to-income ratio, now at 47.8%, compared to 52.8% a year ago.

This improvement has been driven by efficiency gains from technology investments and a more agile operating model. Headcount reduced by around 600 employees year-on-year.

Capital Structure

The bank achieved a Common Equity Tier 1 (CET1) ratio of 14.2%, up approximately 60 basis points from both Q4 2024 and Q2 2025.

Total capital generation pre-distributions reached 101 basis points for the quarter, while Tangible Net Asset Value (TNAV) per share increased by 11 pence to 362 pence.

In addition, Assets under Management and Administration (AUMA) rose 8.1% to GBP 56 billion, driven by net inflows from clients and favorable market movements.

Outlook

Looking ahead, NatWest expects income excluding notable items to reach approximately GBP 16.3 billion for full-year 2025 and anticipates a Return on Tangible Equity exceeding 18%. The bank will issue updated 2026 guidance and new 2028 targets with its full-year results in February 2026.