Citi Predicts NatWest, HSBC to Beat Q3 Estimates

Citi analysts anticipate that NatWest and HSBC will exceed third-quarter earnings estimates. This outlook comes as investors await the upcoming UK bank results. European bank stocks, including NatWest and HSBC, are seen as trading at low valuations. Analysts project NatWest's profit before tax will reach 1.89 billion pounds, 10% above consensus estimates. HSBC's profit before tax is forecast at 7.67 billion dollars, which is 6% higher than current consensus figures. Both banks are expected to maintain strong net interest margins. HSBC's net interest margin is predicted to rise by 7 basis points quarter-on-quarter. NatWest's margin is expected to increase by 8 basis points. The positive forecasts align with a broader view that European bank stocks are undervalued. The investment firm Citi suggests "buying the dip" in European bank stocks. This recommendation is based on the sector's current low valuations and anticipated strong performance. NatWest shares recently fell 5% amidst broader declines in British bank stocks due to concerns about a potential windfall tax. This article is intended for informational purposes only. It does not constitute investment advice.