Should I buy NatWest stock in 2025?

Why trust HelloSafe?

At HelloSafe, our expert has been monitoring the performance of NatWest for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, remunerated by NatWest.

What is NatWest?

How much is NatWest stock?

The price of NatWest stock is rising this week. As of today, NatWest shares are trading at £4.82, showing a 1.80% gain over the past 24 hours and an impressive 8.42% increase for the week. The bank's current market capitalisation stands at £38.44 billion, with an average three-month trading volume of 6,078,067 shares. Investors will note a price-to-earnings (P/E) ratio of 8.55, a dividend yield of 4.51%, and a stock beta reflecting moderate market sensitivity. This strong performance and attractive valuation reflect both steady investor confidence and opportunities for those considering UK banking sector exposure.

Our full analysis on NatWest stock

Having examined NatWest Group’s recent financial results in detail, alongside its notable share price trajectory over the past three years, our advanced analytics combine proprietary quantitative models with sector-wide benchmarking. This approach synthesises signals from financial ratios, technical momentum, macroeconomic data, and competitive positioning. So, why might NatWest stock once again become a strategic entry point into the United Kingdom’s banking sector in 2025?

Recent Performance and Market Context

NatWest has emerged as a clear standout among UK banks, delivering both robust absolute returns and sector outperformance. Over the past 12 months, the stock has rallied approximately 68%, propelled by a decisive uplift in earnings, capital strength, and dividend visibility. In 2025 alone, shares have surged nearly 28% year-to-date, comfortably exceeding both the FTSE 100 and key industry benchmarks.

Noteworthy positive events underpinning this price performance include NatWest’s return to full private ownership—after the government stake fell below 2% for the first time since the global financial crisis—and the successful acquisition of Sainsbury’s Bank’s retail assets, integrating over one million new customer accounts. These achievements are complemented by the group decisively meeting its £100bn sustainable finance commitment ahead of schedule and announcing ambitious collaborations on digital transformation projects with global technology leaders.

From a macro perspective, the UK banking sector enjoys tailwinds from stabilising interest rates, a gradual economic rebound, and the steady normalization of consumer and business lending. NatWest, with its focus on domestic credit and corporate services, appears particularly sensitive to this supportive backdrop—an environment conducive to sustained income and expanding profitability.

Technical Analysis

On technical grounds, NatWest exhibits a compelling bullish structure at multiple timeframes. The stock currently trades at £4.82, within striking distance of its 52-week high (£4.88), and remains comfortably above all major moving averages:

Price strength above these levels typically signals healthy upward momentum and an active bullish trend.

A review of widely adopted indicators underscores the positive outlook:

Moreover, a ‘Golden Cross’ pattern—where the 50-day EMA sits firmly above the 200-day EMA—reinforces structural strength in the medium term. Key supports are identified at £4.66 and £4.62, with strong buying interest repeatedly witnessed on dips near these levels. Meanwhile, the resistance at the recent high (£4.88) presents a potential breakout trigger, supported by elevated volume. The preponderance of bullish signals—14 out of 22 tracked technical factors—suggests that periods of consolidation could be interpreted as attractive entry points on any technical mildness.

Fundamental Analysis

NatWest’s fundamental profile has materially strengthened, as evidenced by Q1 2025 results that substantially beat consensus:

• Attributable profit surged by 36% year-over-year to £1.25bn.
• EPS increased from 10.5p to 15.5p.
• Return on Tangible Equity (RoTE) climbed to 18.5%, a level rarely achieved by major UK peers.
• Net Interest Margin (NIM) expanded to 2.27%, a 22-basis-point improvement—a critical indicator of lending profitability.

Shareholder reward remains front-and-centre, with the board committing to ordinary dividends at 50% of attributable profits and a forecast yield of c. 4.2%—one of the highest among UK-listed banks. Operationally, cost discipline is evident: operating expenses have declined 3.6% year-on-year, helping unlock further margin.

Valuation remains notably attractive. The stock trades at a P/E of 8.5x and a forward P/E closer to 8.0x—well below the historic UK sector average of 10-11x. The price-to-book ratio, at 0.95, reflects a substantial discount to book value, while the PEG and price-to-sales metrics reinforce a deep-value proposition for investors.

Further, the successful Sainsbury’s Bank integration extends NatWest’s reach into retail banking, while a renewed digital and ESG focus underpins long-term structural competitiveness. The tangible net asset value per share has risen to 347p, demonstrating both underlying franchise solidity and prudent capital stewardship.

Volume and Liquidity

A liquid market is often both a cause and effect of institutional confidence. With an average daily volume exceeding 6 million shares over the past three months and robust recent trading activity, NatWest displays pronounced liquidity. This active float encourages dynamic price discovery and facilitates significant turnover without undue volatility. Such liquidity is fundamental for both value investors and shorter-term traders, reducing execution risk and underpinning price sustainability during upward movements.

Catalysts and Positive Outlook

Several forward-looking catalysts substantiate the case for further upside:

• Return to Full Private Ownership: The symbolic end of state shareholding removes a major market overhang, broadening institutional and retail investor engagement.
• Sainsbury’s Bank Acquisition: Expected to be immediately accretive, both in terms of EPS and customer diversification, while creating cross-sell potential.
• Digital and AI Transformation: Partnerships with OpenAI and broader fintech deployments aim to accelerate efficiency, customer retention, and cost savings.
• ESG and Sustainable Finance: Having surpassed its targeted £100bn in sustainable lending, NatWest is recognised as an ESG leader in the UK banking space—crucial for engaging international investors.
• Dividend and Buyback Potential: Management’s intent to pay 50% of profits as dividends, coupled with ongoing share buybacks, should enhance both total return and share price support.
• Favourable Macro Context: With UK base rates stabilising and GDP growth returning, interest margins and credit volumes have strong prospects for expansion.

Investment Strategies

The current setup offers various entry narratives across investor timeframes:

• Short-Term:
• Recent consolidation near £4.80, along with strong support zones at £4.66 and £4.62, suggest potential for tactical bounce trades into resistance at £4.88 and beyond.
• Momentum remains supportive, with technical indicators flagging the possibility of a bullish breakout if volume persists.
• Medium-Term:
• Solid Q1 delivery and the forthcoming integration of Sainsbury’s Bank point to EPS and RoTE upgrades, supporting re-rating potential as these themes crystallise through 2025.
• Trading above major moving averages, combined with improved cost/income ratios, highlights favourable positioning for investors seeking multi-month returns, especially ahead of dividend record dates.
• Long-Term:
• For buy-and-hold profiles, the transition to full private ownership, deep retail and corporate franchise, and sustained capital generation make NatWest a candidate for compounding returns.
• Attractive dividend yield and ongoing buybacks provide a significant income cushion and capital return/flexibility over several years.
• The group’s tangible net asset value and low P/B multiple parallel historic entry points that preceded periods of significant revaluation.

Is it the Right Time to Buy NatWest?

In summary, NatWest exhibits a confluence of strengths: strong and improving profitability, sector-beating returns, resilient capital and liquidity, and an ambitious but credible transformation strategy. Its valuation metrics—underpinned by both P/E and P/B ratios—make a persuasive case for renewed investor interest, especially as technical momentum and liquidity combine to reinforce positive sentiment.

Importantly, the removal of the government overhang, the strategically-sound Sainsbury’s Bank acquisition, and visible progress in ESG and digital innovation provide a suite of upward catalysts for both sentiment and earnings. While vigilance regarding loan impairments and the macro backdrop remains prudent, the current evidence points to a new phase of franchise strength and market potential.

For investors with a bullish view on the UK economic cycle, an eye for attractive value, and a preference for dividend-rich positions, NatWest appears to represent an excellent opportunity at this juncture. Its foundation for structural growth, upside re-rating, and robust yields are not only sustainable but supported by a balance of technical and fundamental conviction.

For those seeking exposure to a revitalised pillar of the UK banking sector, NatWest’s current positioning and positive trajectory suggest it deserves serious consideration as a strategic addition in 2025 and beyond.

How to buy NatWest stock in United Kingdom?

Buying NatWest Group stock online is now a simple and secure process for UK retail investors thanks to regulated, user-friendly brokers. You can choose between two main methods: spot (or cash) buying, where you directly own real shares, or trading via Contracts for Difference (CFDs), a derivative that tracks the price of NatWest shares. Each approach has its own advantages, costs, and risk profile. Below, we explain how each method works, with clear examples, to help you decide which suits your goals best. For help in choosing the right platform, see our comparative broker table further down the page.

Spot Buying

When you buy NatWest stock "for cash," you’re purchasing real shares listed on the London Stock Exchange (ticker: NWG), and you become a partial owner of the company. This straightforward method is ideal for long-term investors seeking dividends and potential growth in share value. Most UK brokers charge a fixed commission per order—typically around £5 to £10—plus government stamp duty (0.5% on UK shares).

Key Example

Example: Let’s say NatWest shares are trading at £4.82 each. With a £1,000 stake, and a £5 broker fee, your £995 would buy approximately 206 shares (£995 ÷ £4.82 ≈ 206).
✔️ Gain scenario: If the share price rises by 10% to £5.30, your shares are now worth £1,092 (206 × £5.30).
Result: That’s a gross gain of about £97, or +9.7% on your investment (excluding stamp duty and taxes).

Trading via CFD

CFDs (Contracts for Difference) are a popular way to trade NatWest shares without owning them physically. With CFDs, you speculate on price movements and can use leverage to amplify your exposure. This means you can make larger bets with a smaller initial investment, but risks (and costs) are higher. CFD trading typically involves paying the spread (difference between buy/sell price) and daily overnight financing fees if you hold your position open.

Key Example

Example: Suppose you open a CFD position on NatWest with a £1,000 margin and 5x leverage. This gives you market exposure of £5,000.
✔️ Gain scenario: If NatWest’s shares rise by 8%, your position grows by 8% × 5 = 40%.
Result: You make a £400 gain on your £1,000 margin (excluding the impact of spreads and overnight fees). Remember, losses are magnified as well.

Final Advice

Before investing, it’s essential to compare the fees, features, and conditions of different brokers. Costs can vary and directly affect your returns, particularly for frequent traders or leveraged positions. Choosing between buying shares outright and trading CFDs depends on your objectives: whether you favour long-term ownership and dividend income, or short-term trading flexibility and leveraged potential. To find the platform that fits your needs, refer to our expert broker comparison further down this page.

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Is EightCap reliable?

Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.

Why choose EightCap?

EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.

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At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.

Who is EightCap for?

Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.

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Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).

Who is eToro for?

eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

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The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.

Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).

Who is eToro for?

eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is it easy to withdraw your money from eToro?

Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.

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Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.

Who is AvaTrade for?

AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.

Is it easy to withdraw money from AvaTrade?

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Our 7 tips for buying NatWest stock

The latest news about NatWest

NatWest exceeds Q1 2025 expectations with 36% profit surge and raises full-year guidance. In its latest earnings report, NatWest achieved a quarterly attributable profit of £1,252 million—up 36.4% compared to the previous year—and delivered earnings per share of 15.5 pence, beating market forecasts. Return on tangible equity rose to 18.5%, and both net interest income and total income saw double-digit year-on-year increases. The group now anticipates annual returns and income to reach the upper ends of previous ranges, further underlining robust operational momentum and confidence in the UK banking market.

The UK government’s stake in NatWest drops below 2%, marking full return to private ownership. This week, NatWest crossed a major milestone as the Treasury's ownership fell below 2%, signalling the effective completion of its journey from the state rescue of 2008 back to full private status. The removal of this government overhang is strongly positive for equity sentiment, removing a persistent source of uncertainty and returning full strategic autonomy to management. The development is widely viewed by analysts as a catalyst for potential shareholder value creation and improved liquidity in the UK market.

Acquisition of Sainsbury’s Bank assets successfully finalised, expanding NatWest’s UK retail footprint. As of May 1, 2025, NatWest completed its acquisition of Sainsbury’s Bank’s retail banking assets and liabilities, adding approximately £2.5 billion in assets, £2.7 billion in deposits, and around one million new customer accounts. This transaction strengthens NatWest’s position among UK high street banks and demonstrates its willingness and ability to invest in domestic growth, further consolidating its presence in the highly competitive UK retail banking space.

NatWest completes £100 billion climate and sustainable funding goal ahead of schedule. The group has reached its £100 billion target for climate and sustainable finance between July 2021 and the end of 2025, underscoring its leadership in environmental, social, and governance initiatives within the UK financial services sector. This accomplishment not only aligns with the growing demand from UK corporates and consumers for sustainable products but also puts NatWest at the forefront of regulatory trends and investor preferences regarding responsible banking.

NatWest’s shares show sustained outperformance and strong technical signals with a 67% annual gain. NatWest shares closed this week at £4.82—an increase of more than 8% in the past week and 67% over the last year, outperforming sector peers. The stock trades above all major moving averages and the majority of technical indicators support a bullish outlook, underscoring continued investor confidence. The dividend yield remains attractive, and trading volumes suggest ongoing institutional interest, reinforcing the bank’s position as a key constituent in the UK equity landscape.

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.