5 Best European Bank Stocks to Buy According to Hedge Funds

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In this piece we will look at the 5 Best European Bank Stocks to Buy According to Hedge Funds. Please visit 8 Best European Bank Stocks to Buy According to Hedge Funds if you’d like to see an extended list and how we came up with the list of Best European Bank Stocks to Buy According to Hedge Funds.

​5. NatWest Group plc (NYSE:NWG)

Number of Hedge Fund Holders: 20

NatWest Group plc (NYSE:NWG) is one of the Best European Bank Stocks to Buy According to Hedge Funds. On May 11, NatWest Group plc (NYSE:NWG) was upgraded at BNP Paribas by analyst Guy Stebbings from Neutral to Outperform. The analyst has set a price target of $18.2 on the stock.

5 Best European Bank Stocks to Buy According to Hedge Funds

​The rating comes after the company reported fiscal Q1 2026 results on May 1. The bank reported a 12% year-over-year increase in first-quarter profits before tax. The operating profit reached 2 billion pounds and came in ahead of the analyst consensus of 1.9 billion pounds. Management highlighted that results were driven by growth in lending income.

​The results show that NatWest Group, like its peer Lloyds Banking Group plc (NYSE:LYG) has shown continued profitability despite geopolitical concerns from the Iran war. The bank also upgraded its full-year income guidance and expects the income to be near the top of its 17.2 billion to 17.6 billion pound range, signaling confidence in its near-term performance despite a more uncertain backdrop.

​Reuters reported that the outlook was notably cautious. NatWest sharply revised down its UK economic forecasts and is now expecting GDP growth of just 0.4% for the year, compared to its earlier estimate of 1%, and house price growth of only 0.7% versus a prior forecast of 3.4%. These downgrades reflect rising inflation fears linked to oil price volatility and the ongoing Middle East conflict. The bank also took a 283 million pound impairment charge, with 140 million pounds directly tied to the economic impact of the Iran war.

​NatWest Group plc (NYSE:NWG) provides banking and financial services in the United Kingdom and internationally.

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