FTSE 100 today: Index rises as Shell, NatWest wrap busy earnings week By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 02 2025
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Should l Buy NWG?
Source: Investing.com
British Stock Market Performance: British stocks opened higher with the FTSE 100 gaining 0.8% and the British pound rising against the dollar, following positive earnings reports from major firms like Shell and Standard Chartered.
Corporate Earnings Highlights: Shell reported a significant increase in Q1 earnings and announced a $3.5 billion buyback; Standard Chartered's profit rose by 10%, while NatWest returned to profitability, contrasting with RBC's downgrade of Watches of Switzerland due to demand concerns.
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Analyst Views on NWG
About NWG
NatWest Group plc is a United Kingdom-based banking company. The Company serves customers in England and Wales, supporting them with their personal, private, and business banking needs. It also offers businesses specialist sector knowledge in areas such as sustainable energy, commercial property and technology, as well as access to specialist entrepreneurial support. Its segments include Retail Banking, Private Banking, Commercial & Institutional, and Central items & other. The Retail Banking segment serves personal customers in the United Kingdom, including Ulster Bank customers in Northern Ireland. The Private Banking segment serves United Kingdom-connected high-net-worth individuals and their business interests. The Commercial & Institutional segment consists of customer businesses reported under business banking, commercial mid-market and corporate & institutions, supporting its customers across the full non-personal customer lifecycle, both domestically and internationally.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Unemployment Risks: The UK saw nearly a 1 percentage point increase in unemployment last year, and with soaring energy costs dampening business investment and hiring, the environment creates a high risk of a rapid economic slide.
- Non-Linear Economic Shifts: The current economic environment makes non-linear shifts more likely, where growth declines faster than traditional models predict, particularly as ongoing conflicts create deep uncertainty for domestic firms.
- Investor Confidence Eroded: With falling investment, reduced consumer spending, and rising unemployment, investor confidence in UK-centric assets is challenged, indicating a more severe economic outlook ahead.
See More
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- Improved Market Sentiment: The positive response from investors towards financial stocks suggests a recovery in market sentiment, which may lead to increased capital inflows into the sector, thereby boosting the overall stock market.
- Increased Trading Volume: As financial stocks rise, trading volume has also increased, indicating a potentially optimistic outlook from investors regarding future market trends, further enhancing market activity.
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See More
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See More
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- Asset Management Growth: With Evelyn Partners managing £69 billion in assets, the merger is expected to increase total assets under management to £127 billion, significantly enhancing NatWest's market reach and client asset management capabilities.
- Synergies and Cost Savings: The acquisition is projected to generate annual run-rate cost synergies of £100 million, approximately 10% of combined PBWM costs, with implementation costs around £150 million, demonstrating the financial viability of the deal.
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See More
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See More
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- Financial Metrics Insight: Evelyn Partners generated a full-year EBITDA of £179 million for 2025, valuing the transaction at a 9.7x EV/EBITDA multiple, indicating strong profitability and market positioning.
- Asset Management Integration: The merger will combine Evelyn Partners' £69 billion AUMA with NatWest's £59 billion, resulting in a total AUMA of £127 billion and total customer assets and liabilities of £188 billion, which is expected to create significant shareholder value.
See More
