Natwest stock price is due to report its earnings for the first quarter of 2021 on Friday 30 July. The bank had announced last week that it was exiting Ireland by selling its assets to Permanent TSB in a deal that would see PTSB buy up 7.6 billion euros of performing loans.
Under this deal, PTSB would take over 25 out of 88 branches of Ulster Bank while Natwest takes up 20% equity in PTSB’s enlarged share capital.
This sale boosts the bank’s capital position, and analysts predict an accelerated share buyback announcement as early as Friday’s earnings call. The bank appears well-positioned to benefit from easing of the final restrictions on capital and earnings distribution to shareholders by the Bank of England.
As per the earnings report, traders and investors would be watching for growth in card issuances and usage. What are the potential Natwest stock price scenarios?
Technical Levels to Watch
A positive earnings report could allow Natwest to break above the 200.55 psychological support (also the site of 30 June/7 July lows). This breakout opens the pathway towards 210.00, with 214.50 serving as an additional resistance target to the north.
On the flip side, a breakdown of 195.00 (18 May, 8 July and 26 July lows) allows the bears to push towards 187.30. An extensive decline brings 180.30 into the picture, with additional support coming from 173.65 and 167.75.