NatWest Group results should show benefit from robust mortgage market

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IAG and NatWest are the big beasties reporting on Friday, except one is expected to be more of a “wee sleekit, cow’rin, tim’rous beastie” with “more panic in its breastie” than the other

International Consolidated Airlines SA and NatWest Group are the big guns issuing updates on Friday and there’s little doubt which will sound the more optimistic.

Banking giant NatWest is also issuing second-quarter results and the expectation is for an adjusted profit before tax of some £935mln and CET1 – a measure of balance street strength – of 18.1%.

The government recently indicated it would sell off another chunk of shares in the nationalised bank, which could either mean things are going well or the government is cashing in while it can.

Given the strength of the housing market and the relatively low level (so far) of loan defaults, it is probably more a case of the former.

Half-year results from British Airways owner IAG are unlikely to make for great reading as coronavirus travel restrictions continue to be a millstone around the neck of the travel industry.

However, investors will likely be hoping the easing of restrictions, albeit slightly, will lift the firm’s fortunes across the rest of the year, so the outlook statement will therefore be crucial as well as the group’s ongoing cost management.

With this in mind, analysts at UBS are predicting the focus to be on forward bookings and the impact of the UK’s traffic light system, as well as on the current rate of cash burn.

Significant announcements expected

Trading announcements: (), Kerry Group PLC

Finals: () 

Interims: (), () SA, (), (), (), (), () PLC, (), () PLC

Economic data: US personal incomes, US inflation expectations

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