Important Disclosure: The content provided does not consider your particular circumstances and does not constitute personal advice. Some of the products promoted are from our affiliate partners from whom we receive compensation.
If you require any personal advice, please seek such advice from an independently qualified financial advisor. While we aim to feature some of the best products available, this does not include all available products from across the market. Although the information provided is believed to be accurate at the date of publication, you should always check with the product provider to ensure that information provided is the most up to date.
Capital at Risk. All investments carry a varying degree of risk and it’s important you understand the nature of the risks involved. The value of your investments can go down as well as up and you may get back less than you put in.
Where we promote an affiliate partner that provides investment products, our promotion is limited to that of their listed stocks & shares investment platform. We do not promote or encourage any other products such as contract for difference, spread betting or forex. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.
Table of Contents
First Quarter Results, 26 April 2024
- Operating profit before tax to 31 March 2024 at £1.33bn (£1.82bn for same period last year)
- Q1 net interest income at £2.65bn, against £2.90bn year-on-year
- Net interest margin at 2.05%, up from 1.99% in Q4 2023 but down from 2.25% year-on-year
- Return on tangible equity at 14.2% compared with 19.8% in Q1 2023
- Net earnings per share of 10.5p compared with 13.2p a year earlier.
NatWest Group plc (stock ticker: NWG) is a UK banking organisation and financial services company serving more than 19 million customers, with operations covering retail, commercial and private banking markets.
The company spans several brands and has a large high street presence, including NatWest which serves personal and business customers in England and Wales. This division also supports corporates and institutions in the UK, western Europe, the US and Asia.
Other brands include Royal Bank of Scotland (RBS) with 3.3 million customers and Ulster Bank, which provides services to personal, small business, private and commercial customers in Northern Ireland. RBS International operates in the Channel Islands, Isle of Man, and Gibraltar.
The Coutts division provides private banking and wealth management, while Holt’s is the bank of the British Armed Forces.
Lombard is the UK’s largest provider of asset finance. FreeAgent provides software for UK small businesses, landlords and their accountants and bookkeepers.
Here’s what you need to know about buying and selling NatWest shares.
Tax treatment depends on one’s individual circumstances and may be subject to future change. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of tax advice.
Why own stocks and shares?
It’s worth asking yourself why you want to buy shares. Are you looking for capital growth, income from dividends, or a combination of both? Your investment objective will determine what type of shares you invest in, from high-growth technology shares to more ‘defensive’ companies with a reliable income dividend stream.
Most investors look for sound fundamentals, including a track record of consistent earnings growth, a strong market position, or products and services with growth potential. These should provide a solid platform for a share price increase.
That said, factors such as takeover rumours can drive up a company’s share price. Investors may also be attracted by recovery plays, with a depressed share price providing potential for a rebound.
NatWest 5-Year Share Price Performance
How to buy NatWest shares
There are several steps to take once you’ve satisfied yourself about the reasons for buying shares in a particular company.
Open an account
Whether you’re a seasoned share trader, or someone who is brand new to stock market-based investments, if you want to buy shares in NatWest, you’ll need to open an account with a regulated brokerage.
Stockbroking services for DIY investors come in a range of guises – from online investing platforms to investment trading apps that work off a smartphone or tablet.
Before opening an account:
- Keep your ultimate financial goals in mind
- Be prepared to ride out stock market ups and downs
- Aim to keep trading costs to a minimum
- Remember that share investing can prompt tax charges, for example, when selling stocks
Before buying shares, ask yourself:
- should I take professional financial advice?
- Am I comfortable with the level of risk?
- What’s my budget?
- Can I afford to lose money?
- Do I understand the company in which I’m looking to invest?
- Am I protected if my platform provider/advisor goes out of business?
Know where NatWest shares are traded
The stock market ticker for NatWest is NWG. The company is traded on the London Stock Exchange which is open Monday to Friday from 8am to 4.30pm. NatWest is a component of the FTSE 100 stock index of leading UK companies.
It should be possible to buy NatWest shares through all UK-based brokerage accounts.
Do your research
To find out more about NatWest, visit the company’s online investor relations page. When weighing up whether or not to buy shares in the company, it could be worth comparing NatWest’s valuation to that of comparable rival companies. One way to do this is to look at relative price-earnings, or P/E, ratios. Shares trading on a high P/E suggest high expectations of substantial future growth.
Another useful research tool is brokers’ 12-month share price forecasts, available via online investing platforms. There are a number of brokers who follow NatWest and their share price forecasts give an indication of the upside and downside potential of the share price over the coming year.
What is your investing strategy?
People tend to invest in one of two ways: either with a lump sum purchase, or via smaller, steadier amounts, over a period of time.
The latter benefits from a process known as ‘pound cost averaging’, an investing technique which helps investors pay less per share on average over time in falling stock markets. Rather than waiting to build up a lump sum, it also means an investor’s money can be put to use in the market straightaway.
On the downside, drip-feeding an investment may sacrifice investment growth if a stock’s price is rising and, depending on your broker/platform, you may also pay more in share trading fees.
Place an order
Once you’re ready to buy NatWest shares, log in to your investing account or trading app. Type in the NWG ticker along with the number of shares you want to buy, or the amount of money you’re prepared to invest.
Some brokers allow their customers to add a ‘stop loss’ once they have bought the shares, allowing them to limit any losses should a share price fall.
Review NatWest’s performance
Whether your share portfolio is crammed full of companies, or holds only a handful of stocks, it’s vital that you review how each component is performing on a regular basis: monthly, quarterly, or annually.
Doing this provides the opportunity to review performance and consider whether any adjustments to holdings are required, namely, to maintain the status quo, buy more shares, or sell existing stock.
How to sell shares
At some point, you might want to sell your holdings. To do this, log in to your platform, type in the NatWest ticker and select the number of shares or amount you want to sell.
Note that if you’ve made a substantial profit and your holding was not ring-fenced in some way, say via a tax-efficient vehicle such as an individual savings account, then you might be liable for capital gains tax (CGT). The CGT tax-free allowance for the tax year starting 6 April 2024-25 is £3,000.
How to invest in NatWest via a fund
Investing directly in shares can be an absorbing and, hopefully, profitable experience. It may also qualify you for shareholder perks specific to the company in question.
Investing directly in companies can, however, leave you vulnerable to stock market volatility and unforeseen swings in share prices.
That’s why financial experts recommend that most people invest in a diversified mix of asset classes and investment funds that hold ready-made portfolios of different company shares, often dozens or even hundreds at a time.
As a large UK multinational operation that’s part of the FTSE 100 index, NatWest is found in many UK equity, index tracker and exchange-traded funds.
