NatWest is expected to report an increase in operating pretax profit to £1.36 billion in its forthcoming Q3 results, up from £1.09 billion last year, according to predictions. Total income for the quarter is forecasted at £3.585 billion, with net interest income contributing £2.80 billion, indicating a stronger non-interest income performance.
The bank's annual income guidance stands at £14.8 billion, following a reduction in Net Interest Margin (NIM) guidance to below 3.20% during the half-year results. For Q3, NIM is estimated at 3.07%.
Impairment losses are projected to rise to £275 million, an increase from £247 million in Q3 2022 and £153 million in Q2 2023. This key measure of financial strength, the CET1 ratio, is predicted to climb to 13.8%, up from 13.5% in the previous quarter and falling within the bank's target range of 13-14%.
Despite these promising indicators, no updates on capital returns or comments on the outlook for 2024 are expected in the upcoming release. Furthermore, consensus estimates suggest that no buyback or dividend will be announced for the quarter.
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