NatWest share price outlook after Lloyds weak earnings

The share price of NatWest (LON: NWG) has significantly increased recently as London’s stability has been restored. The shares increased to their greatest level since February 23rd, reaching a high of 247p. From this month’s lowest point, it has increased by more than 15%.

NatWest earnings ahead

The Royal Bank of Scotland was originally known as NatWest, a major British bank (RBS). It conducts business under its name and through various companies, including Drummonds, Ulster, and Coutts. Because it serves as the Royal Family’s bank, Coutts is well known.

The share price will be closely watched when NatWest releases its quarterly results on Friday. Since interest rates remained high last quarter, analysts anticipate that these figures will demonstrate that the company’s business performed effectively.

There are worries that the bank will face difficulties similar to those of Lloyds. According to Lloyds Bank’s report released on Thursday, higher provisions for bad debt caused a 26% decline in profit. Pre-tax earnings fell from 2 billion pounds in the same quarter in 2021 to 1.5 billion pounds in 2018.

Lloyds’s net interest income increased by 19% to £3.4 billion. This number shows the difference between interest paid on savings and interest gained on loans. To safeguard itself against poor loans, the bank set aside 668 million pounds.

Because of the way they both function, NatWest and Lloyds Bank frequently have a strong relationship. NatWest and Lloyds are national banks that do not have a significant international presence, in contrast to other banks like Barclays, Standard Chartered, and HSBC. They also concentrate mostly on retail and corporate banking.

As a result, the share price of NatWest marginally declined because experts anticipate that the bank would also publish greater provisions on Friday.

NatWest share price forecast

NatWest share price

According to the hourly chart, the NWG share price has been significantly positive during the last few days. The stock was able to move above the 25-day and 50-day moving averages. Additionally, it has surpassed the 50-period and 25-period moving averages.

The price of NatWest shares has crossed the critical support barrier at 238p, which was high on October 4. Additionally, a rising wedge pattern, indicated in black, has developed. As a result, the stock will likely break out in the negative after earnings.

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