NatWest shares rose strongly thanks to strong results … here’s what the market said

NatWest Group's (LSE:NWG) quarterly results were roundly cheered on Friday, with the banking share finishing the session at 361.9p, up just over 7% for the day.

Generally speaking, analysts praised the impressive earnings, improved margins, and strategic deal making.

Now, here, we curate the most engaging and insightful comments from some of the City of London’s talking heads.

“A Beat and Raise”

Gary Greenwood, analyst at Shore Capital, pointed out that despite Natwest’s impressive results, the shares might see a moderate reaction due to their strong performance earlier in the year.

"The beat and raise should not come as a huge surprise to the market given the strong year-to-date performance, but it is still a positive signal,” Greenwood said.

He added: "NatWest shares are up 54% YTD, outperforming the FTSE All-Share Index by 48%. At yesterday’s closing price of 338p, we view the shares as at the low end of a fair value range."

“Highly Reassuring”

Richard Hunter, Head of Markets at Interactive Investor, highlighted the beat on Q2 pre-tax profit and what he described as an impressive improvement in Net Interest Margin.

"NatWest has echoed the theme from Lloyds Banking with a creditable half-yearly performance boosted by a strong second quarter." Hunter said.

He added: "Overall, this is a highly reassuring update which has received a very warm welcome in opening exchanges."

“Smashing Expectations”

Matt Britzman, senior equity analyst at Hargreaves Lansdown, praised NatWest's strong performance, describing it as ‘a knockout set of results’, and also highlighted the broader economic context.

"The UK economic outlook is improving, and borrowers are holding firm in the face of higher interest rates,” Britzman

“NatWest is also seeing some improvement from margins on the deposit side and has managed to grow its net interest margin quarter-on-quarter."

Consensus Narrative

Clearly, analysts in the banking sector were bullish about Natwest’s results.

The view, broadly, is that the lender delivered robust results, with significant beats on key metrics, and was further supported by an optimistic full-year outlook.

The strategic acquisitions and improved margins are seen as strong positives, positioning NatWest well in a competitive banking sector.