Ariel International Fund on NatWest Group plc
Thesis
Ariel initiated NatWest for earnings growth not solely dependent on interest-rate direction. Its structural hedge supports net interest income as maturing assets are reinvested at higher yields. Loan growth has outpaced peers, and management has raised its return targets. The Evelyn Partners acquisition expands capital-light wealth management and gives the bank a more diversified earnings base.
“stronger and more durable earnings growth than the share price assumes.”
Key risks
- Sensitivity to interest-rate changes despite the structural hedge
- Execution and integration risk from the Evelyn Partners acquisition
- Potential slowdown in loan growth relative to peers