Goldman Sachs downgraded NatWest Group plc (NYSE:NWG) to Neutral from Buy on December 4, with a price target increase to 685 GBp from 665 GBp. The firm’s 2026 outlook for European banks focuses on growth and efficiency rather than rates and credit. NatWest’s shares have surged over 77% since the beginning of 2025, driven by strong Q3 2025 results. The bank’s strategy of shifting towards fee-based businesses has paid off, with non-interest income rising by 25.9%. NatWest’s structural hedges position it well for potential interest rate cuts, leading to industry-leading margins and improving returns on tangible equity.

Read more at Yahoo Finance: Goldman Sachs Sees New Drivers for European Banks, Adjusts NatWest (NWG) Stance