On valuation grounds, though, the broker prefers Lloyds (46p) and Barclays (176p)
() has appeal to income investors after its announcement of £2.9bn of dividends and buybacks today, according to Shore Capital.
On valuation grounds, though, the broker prefers Lloyds (46p) and Barclays (176p) as NatWest is close to its fair value estimate of 210p.
For this year, to end December 2021, Shore expects statutory profits of £2.69bn with a dividend of 11.5p including a 6p special.
Taking account of the second-quarter numbers and the impact of the proposed share buyback, Shore thinks NatWest’s consensus EPS will move up further to at least 20p though it notes returns on equity are still below Lloyds and Barclays.
Shares in NatWest eased 2.3% to 200.2p.