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NatWest Group (NWG) Achieves Strong 2025 Performance and Record 19.2% Return on Tangible Equity

NatWest Group (NYSE:NWG) is one of the most undervalued stocks under $30 to buy. On February 13, NatWest Group delivered a standout performance in 2025, with total income rising 12% to £16.4 billion and EPS jumping 27%. The bank added 1 million new customers, leading to growth in loans, deposits, and wealth management assets. This momentum allowed the group to return £4.1 billion to shareholders through dividends and buybacks, achieving a RoTE of 19.2%.

A major highlight of the report was the acquisition of Evolent Partners, which is set to transform the bank’s wealth management profile by adding £69 billion in assets. To support its evolving business model, NatWest lowered its CET1 capital target to ~13% and updated its long-term financial goals. By 2028, the group aims to achieve a cost-to-income ratio below 45% and an RoTE greater than 18%. These targets are supported by an expected increase in structural hedge yields, which are projected to contribute billions in additional income over the next 2 years.

For 2026, NatWest Group (NYSE:NWG) expects continued growth with a total income guidance of up to £17.6 billion. While the group anticipates a slight normalization in loan impairments, management noted that there are currently no signs of consumer stress. The bank remains focused on self-help initiatives, particularly investing in AI and digital simplification to improve efficiency.

NatWest Group (NYSE:NWG), together with its subsidiaries, provides banking and financial products and services in the UK and internationally. It operates through the Retail Banking, Private Banking, and Commercial & Institutional segments.

While we acknowledge the potential of NWG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NWG and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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