Stock Market Update – Natwest Group Stock Price Prediction 2025

Natwest Group Stock Price Prediction 2025:- ​NatWest Group is a major UK-based bank headquartered in Edinburgh, serving over 19 million customers across retail, commercial, and private banking sectors. In 2024, the bank reported a strong financial performance with an operating profit before tax of £6.2 billion and a return on tangible equity of 17.5%. Looking ahead to 2025, NatWest aims for a return on tangible equity between 15% and 16%, with projected income ranging from £15.2 billion to £15.7 billion. The UK government is expected to sell its remaining stake in the bank by June 2025, marking a return to full private ownership. Natwest Group Stock Price on LON as of 23 April 2025 is 460.10 GBX.

Natwest Group PLC: Current Market Overview

• Open: 456.40
• High: 460.70
• Low: 452.90
• Mkt cap: 3.72KCr
• P/E ratio: 8.83
• Div yield: 4.67%
• 52-wk high: 485.51
• 52-wk low: 278.60

Natwest Group Stock Price Chart

Natwest Group Stock Price Prediction 2025 (Prediction)

Key Factors Affecting Natwest Group Stock Price Growth

Here are five key factors that could influence NatWest Group’s stock price growth by 2025:

1. Government Stake Divestment: The UK government plans to sell its remaining stake in NatWest by June 2025, marking the end of a 16-year period of public ownership. This move is expected to enhance investor confidence and allow the bank greater strategic freedom.

2. Strong Financial Performance: In 2024, NatWest reported a pre-tax profit of £6.2 billion, surpassing analyst expectations. The bank also achieved a 3.5% increase in total loans and reduced impairments, indicating robust operational health. ​

3. Enhanced Capital Returns: NatWest has increased its dividend payout ratio from 40% to 50% starting in 2025, aiming to deliver a dividend yield between 6% and 7%. This move underscores the bank’s commitment to returning value to shareholders.

4. Strategic Acquisitions: The bank’s acquisitions, such as Sainsbury’s Bank and Metro Bank’s mortgage portfolio, are expected to bolster its retail banking presence and diversify revenue streams.

5. Positive Market Sentiment: Analysts have set an average 12-month price target of GBX 526.67 for NatWest’s stock, indicating a potential upside of approximately 15%. This reflects growing investor optimism about the bank’s future prospects.

Risks and Challenges for Natwest Group Stock Price

​Here are five key risks and challenges that could impact NatWest Group’s stock price by 2025:​

1. Pressure on Net Interest Margins: With the Bank of England expected to continue reducing its base rate in 2025, NatWest’s net interest margins may face compression, potentially affecting profitability. ​

2. Economic Uncertainty and Loan Defaults: Indicators suggest a possible recession, which could lead to increased loan defaults and reduced profits for banks like NatWest. ​

3. Regulatory and Governance Risks: As the UK government plans to sell its remaining stake in NatWest, concerns arise about potential shifts in governance and strategic direction, which may affect investor confidence. ​

4. Executive Compensation Scrutiny: Proposals for significant increases in executive pay have drawn shareholder attention, potentially leading to reputational risks and investor dissatisfaction.

5. Market Volatility and Valuation Concerns: Despite recent stock performance, high valuations and market volatility could pose risks, especially if economic conditions deteriorate.

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