Ariel Global Fund on NatWest Group plc
Thesis
Ariel bought NatWest for improving earnings drivers independent of the broader interest-rate cycle. The structural hedge supports net interest income by reinvesting maturing assets at higher yields. Lending growth is stronger than peers, and management has upgraded return targets. Acquiring Evelyn Partners expands capital-light wealth management, which could lift revenue diversification and the durability of bank earnings.
“stronger and more durable earnings growth than the share price assumes.”
Key risks
- Net interest income is still exposed to the rate environment
- Sustaining above-peer loan growth may prove difficult
- Execution of Evelyn Partners integration and wealth management expansion