Analysts at Goldman Sachs reiterated their ‘buy’ recommendation for shares of Natwest, telling clients the lender was the “key beneficiary” from higher policy rates in the UK.
Evidence from second quarter results revealed that UK deposit beats were still low, despite higher policy rates due to the large amount of deposits trapped within ring-fences.
That, they said, was the main reason that drove net interest income beats and guidance for higher returns.
“We believe Natwest is the key beneficiary of higher UK policy rates and we reiterate our Buy rating ([on Conviction List]).”
