Should I buy NatWest shares in the United Kingdom in 2025?

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At HelloSafe, our specialist has been tracking the performance of NatWest for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment recommendations. In accordance with our ethical charter, we have never been, and will never be, compensated by NatWest.

What is NatWest?

How much is NatWest stock?

The price of NatWest stock is rising this week. The current share price is 482.70p, with a 24-hour change of +1.88% and a weekly change of -3.50%. NatWest’s market capitalisation stands at £41.3 billion, and the average three-month trading volume is 32.9 million shares. The P/E ratio is 8.47, dividend yield is a solid 4.20%, and the stock beta is 0.98, indicating volatility closely aligned with the wider market. Investors may find NatWest attractive for its combination of stable income and steady performance potential.

Our full analysis of NatWest stock

Having reviewed the latest financial results from NatWest, as well as the stock’s performance trajectory over the past three years, we have employed a suite of proprietary algorithms to analyse financial indicators, technical signals, market data, and peer benchmarks. This analysis integrates not only historical and current quantitative data, but also sectoral trends and the evolving competitive landscape for UK banks. So, why might NatWest stock once again become a strategic entry point into the UK financial sector in 2025?

Recent performance and market context

NatWest stock has shown remarkable resilience and upward momentum, finishing at 482.70 GBp, up 50.14% over the trailing twelve months and rising 19.78% in just the past six months. Despite a marginal weekly pullback of 3.5%, the price remains near its 52-week high, reflecting robust investor sentiment and the ability to recover swiftly from short-term volatility. The company’s full return to private ownership in May 2025, following the sale of the UK government’s remaining stake, has greatly increased investor confidence and enhanced the free float, making the stock more appealing to institutional and retail buyers alike.

The broader UK financial sector is experiencing a tailwind from a stable economic outlook, improved consumer confidence, and the gradual rise in interest rates, which support the profitability of core banking operations. Against this backdrop, NatWest stands out not only for its scale—serving over 19 million customers across the UK—but also for its commitment to sustainable and climate finance, reaffirming its status as a pillar of the domestic financial ecosystem.

Technical analysis

While short-term technical signals currently indicate consolidation, this should be interpreted in the context of a strong underlying momentum. The RSI at 36.17 and a MACD of -7.00 suggest the stock is temporarily oversold, rather than fundamentally weak—often a prelude to a renewed upward move, especially when the longer-term bullish structure remains intact. Moving averages (20, 50, 100, and 200 days) are all converging just above the current price, forming robust areas of dynamic support and suggesting imminent potential for a technical breakout.

Key technical support lies at 475.44 GBp, providing a solid floor for new entrants, while resistance at 537.20 GBp signals the next leg up should the current consolidation resolve positively. These dynamics, when coupled with a low beta of 0.98, limit excessive downside volatility while maintaining upside capture in recovering markets.

Fundamental analysis

NatWest’s fundamentals have rarely looked more compelling. The Q1 2025 earnings report beat analyst expectations, delivering attributable profit of £1.252 billion and earnings per share of 15.5 pence. Revenues for the quarter reached £3.95 billion, up 2.1% on the previous quarter, and the net interest margin held firm at 2.27%—demonstrating strong cost discipline under CEO Paul Thwaite. The group’s return on tangible equity (RoTE) is projected between 15–16%, at the high end of European banking peers, underscoring sustainable profitability.

With a forward price/earnings ratio of just 8.47 and a dividend yield of 4.2%, NatWest currently offers compelling value relative to both UK and continental peers. This attractive valuation is supported by robust fundamentals: growth in net loans (+0.9%), rising customer deposits (+0.5%), and a liquidity coverage ratio of 150%.

Structurally, NatWest’s dominance in the UK market, strong brand recognition, and sustained investment in digital and sustainable banking solutions differentiate it from the competition and support its leadership across both retail and commercial segments.

Volume and liquidity

NatWest’s average daily trading volume of 32.9 million shares is a strong indicator of market confidence and liquidity depth—qualities that enable both institutional and retail investors to enter and exit positions efficiently. The full privatisation in May 2025 has not only increased the free float but also reduced overhang risk, allowing the stock to price more dynamically in line with corporate progress and market sentiment.

Such liquidity is especially attractive to long-term holders, active traders, and funds seeking high-quality exposure to the core of the UK banking sector.

Catalysts and positive outlook

• Return to private ownership has unlocked the stock for a much wider pool of market participants, enhancing valuation dynamics and visibility.
• Ambitious ESG milestones—notably the achievement of £100 billion in green and sustainable financing by mid-2025—position NatWest as a leader in the sustainable finance space.
• Upwardly revised 2025 guidance includes projected RoTE at the high end of sector norms (15–16%) and revenues towards the upper bound of £15.2–15.7 billion.
• A clear, shareholder-friendly capital return policy, with dividends set at about 50% of attributable profit as of 2025, offers meaningful current income in addition to capital appreciation.
• Strong retail and commercial franchises, buttressed by investment in digital transformation and cybersecurity, lay the groundwork for ongoing share capture versus peers.

Additionally, a supportive macro environment—characterised by stable growth, controlled inflation, and prudent regulation—creates an auspicious backdrop for further sector outperformance.

Investment strategies

• Short-term investors may wish to target technical pullbacks towards support at 475.44 GBp, capitalising on potential mean reversion as the stock moves out of temporary oversold conditions.
• Medium-term position builders can benefit from accumulating during technical consolidation phases, with upside potential towards consensus targets in the 552–557 GBp range as sentiment improves and further positive surprises are delivered.
• Long-term investors—both institutional and private—are positioned to benefit from NatWest’s strategic transformation, ongoing digital initiatives, and a clear commitment to sustainable dividends. The combination of strong fundamentals and an enhanced, more dynamic market profile suggests the stock could serve as a robust core holding for diversified portfolios.

Is it the right time to buy NatWest?

In summary, NatWest stands as one of the most attractively valued large-cap UK financials, boasting rising profitability, a clear strategy for growth and income, and powerful new drivers unlocked by its recent return to full private ownership. The group’s ability to consistently exceed expectations, coupled with robust liquidity and multiple bull-market catalysts—ranging from shareholder returns to ESG leadership—justifies renewed investor interest in the stock at this juncture.

Given the present valuation, supportive technical structure, and promising fundamental outlook, NatWest seems to represent an excellent opportunity for both new entrants and existing shareholders to capitalise on anticipated further gains. Every indicator highlighted in this analysis reinforces the bank’s emerging profile as a sector leader poised for sustainable, long-term growth. For those seeking exposure to the heart of the UK financial sector, NatWest may now be entering a new bullish phase that both commands attention and merits serious consideration for portfolio inclusion.

How to buy NatWest stock in the UK?

Buying NatWest stock online is simple and safe with a regulated UK broker. You can either buy the shares directly (spot buying) to hold them in your portfolio, or trade Contracts for Difference (CFDs) to take advantage of price movements—both methods suit different investor objectives. Getting started requires just a few clicks and your position can be managed securely online. For guidance on choosing the right broker, see our comparison table below.

Spot buying

A cash purchase of NatWest stock means you become the direct owner, eligible for dividends and voting rights. Most UK brokers charge a fixed commission per order—typically around £5–£10. This approach is ideal for those who want long-term exposure to NatWest’s growth and dividend potential.

Gain Scenario: NatWest Shares

If the NatWest share price is $6.10 (approx. 482.7p), you can buy around 163 shares with a $1,000 stake, including a brokerage fee of around $5.

✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on NatWest shares allows you to speculate on price changes without owning the underlying stock. You pay a spread for each transaction, plus overnight financing if holding positions beyond a day. CFDs offer leverage, increasing both potential gains and risks—best suited for those who actively monitor the market.

Example of a leveraged CFD position gain

You open a CFD position on NatWest shares, with 5x leverage. This gives you a market exposure of $5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Always compare the fees and trading conditions of various brokers before making an investment. The choice between spot buying and CFD trading depends on your objectives, risk tolerance, and investment horizon. For help selecting the right provider, refer to the detailed broker comparison further down the page.

Our 7 tips for buying NatWest stock

The latest news about NatWest

NatWest exceeds analyst expectations in Q1 2025 with strong profit and higher NIM. NatWest reported a net attributable profit of £1.252 billion for Q1 2025, outperforming consensus forecasts. Its net interest margin climbed to 2.27%, up from the previous quarter, signalling robust core operations and effective management in a competitive UK banking environment.

NatWest fully returns to private ownership after UK Treasury completes share sale in May 2025. Following the UK government’s disposal of its final stake, NatWest is now wholly privately owned. This marks a historic milestone for the bank and further reinforces its position and independence on the domestic market, with positive implications for both investor perception and strategic flexibility.

NatWest achieves £100 billion in climate and sustainable financing targets ahead of schedule. NatWest reached its goal for sustainable funding between July 2021 and end-2025 several months early. This accomplishment enhances its ESG profile and may attract further interest from investors focused on responsible banking and green finance.

Revised 2025 guidance sees raised return targets and solidifies dividend policy strength. The bank now anticipates RoTE at the upper end of 15–16% and income towards £15.7 billion for 2025. NatWest also intends to distribute roughly 50% of attributable profit as dividends, underlining its commitment to shareholder returns and financial discipline.

Ongoing analyst consensus supports a positive outlook, despite prevailing short-term technical signals. While technical analytics currently reflect a “Strong Sell” due to recent price movements, the majority of covering analysts have maintained a “Moderate Buy” rating and forecast further upside potential, anchored by NatWest’s strong underlying financials and growth in lending.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.