Here’s how much £5,000 invested in NatWest shares 2 years ago is now worth
Until not too long ago, if you’d told me we’d see NatWest Group (LSE: NWG) shares more than double in just two years, I’d have laughed. But that’s what happened since around mid-February 2024. And it’s backed by a cracking set of 2025 results.
In fact, £5,000 of an investor’s ISA money put in the stock back then would have grown to around £13,500 today. And that’s the kind of tax-free gain that can make a huge difference for long-term investors.
Oh, and it’s without dividends — which are currently expected to yield 5.3% in 2026. So we can add an extra bit on for that too. The question is, what might the future hold for NatWest shareholders now? Let’s take a look.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
What the experts think
NatWest’s 2025 results were nicely ahead of expectations, with £16.4bn total income well ahead of the previous year. And earnings per share climbed 27% from 2024. That’s allowed the bank to schedule a new £750m share buyback, expected to complete in the first half of the current year.
It also means the board has upped its guidance for the new financial year. It now expects income of between £17.2bn and £17.6bn, and is targeting a Return on Tangible Equity of above 17%. That would be a very attractive return for a FTSE 100 high street bank. And we’re told it should exceed 18% by 2028.
Boosted by all this, analysts have been quick to start adjusting their targets for the NatWest share price — upwards, of course. Goldman Sachs, for example, has just raised the bar to 720p (from its previous 680p). And that would be another 14% on top of the rise we’ve already seen. It means £5,000 invested in NatWest shares today could soon grow to £5,700.
Thats not close to what we’ve already had, but it’s pretty good for a short-term target. And forecasts for the next few years show further profit gains. So, while I don’t expect another doubling in the next two years, NatWest’s bull run might still have quite some way to go.
What’s it worth?
Can it continue rising? It all comes down to valuation. And when a soaring share price pushes that up into the clouds, many stock market watchers will be bracing themselves for a downturn. But NatWest is still on a forward price-to-earnings (P/E) ratio of only around 8.5. And forecasts have that falling to 7.5 by 2028. This is at a time when we might expect brokers to raise these outlooks too. So we might even see valuations lowered a bit in the coming weeks and months.
I think NatWest shares still look cheap. And I fell long-term investors — especially those looking for a worthwhile income stream — should consider them.
Possibly the biggest risk I see is lowering Bank of England interest rates. And with annual inflation down to 3% — and not far above the target 2% — that could come sooner than we think. So bank margins could be squeezed, taking some of the shine off that rosy outlook. It’s a risk I might take.
The post Here’s how much £5,000 invested in NatWest shares 2 years ago is now worth appeared first on The Motley Fool UK.
Should you invest £1,000 in NatWest Group right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if NatWest Group made the list?
More reading
- My big long-term growth holding may also be turning into a 6%+ yielding passive income powerhouse!
- Up 200% with a P/E of 8.5 and 5.3% yield â are NatWest shares still a screaming buy?
- How much do we need in an ISA to aim for a £1,500 monthly passive income?
- What next for the NatWest share price after a stunning 2025 performance?
- NatWest’s shares just got better for passive income
Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
