RBC Revises NatWest Group Estimates After Q2 Earnings; Sector Perform Maintained

07:16 AM EDT, 08/04/2026 (MT Newswires) -- RBC Capital Markets on Monday revised its estimates for NatWest Group (NWG.L) amid a model update following the UK-based banking group's second-quarter financial results. "NWG had a strong momentum. The balance sheet continues to grow faster than expected and the structural hedge should continue to be a tailwind out to 2030. Significant growth in deposits could provide an additional positive catalyst not yet fully reflected in consensus," RBC said. "The Evelyn transaction could be transformational for those prepared to take a medium term view." Changes to the research firm's 2026 forecasts included a 2% and 3% increase in adjusted EPS and adjusted profit before tax, respectively. For 2027 and 2028, the adjusted EPS estimates were nudged lower, while the projections for adjusted profit before tax were raised. "Over FY26-FY28E we model GBP12.5bn of shareholder returns (GBP9.8bn dividends; GBP2.8bn buybacks) equating to a 3yr average dividend yield of 5.9% (total return yield 7.6%). We are now assuming that NWG announces a buyback of GBP500m with FY26 results, with the bank allowing its CET1 ratio to fall to 12.7% (pro forma for Basel)," analysts added. The sector perform rating on the stock and price target of 7.25 pounds sterling were both retained.