Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  NatWest Group plc    NWG   GB00B7T77214

NATWEST GROUP PLC

(NWG)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

UK finance sector devises battle plan to tackle COVID debt pile

share with twitter share with LinkedIn share with facebook
07/16/2020 | 02:59am EDT
FILE PHOTO: The sun rises behind the Canary Wharf financial district in London

More than 200 of Britain's top financial experts have joined forces to design initiatives to help small businesses restructure and repay as much as 35 billion pounds in "unsustainable" COVID-19 relief debt.

TheCityUK Recapitalisation Group on Thursday proposed the launch of a UK Recovery Corporation (UKRC) to oversee a massive pile of government-guaranteed loans issued since lockdown, offering more manageable terms to borrowers and preventing a wave of bankruptcies borne by the taxpayer.

"COVID-19 is a 100-year storm which has caused untold economic damage. The government's support schemes have been the essential sandbags holding back the flood, protecting businesses and saving jobs," said Adrian Montague, chairman of TheCityUK Leadership Council.

"However, with tough trading conditions forecast to remain, paying back these loans will be challenging for many small and medium-sized businesses (SMEs)."

Businesses currently need to start repaying government COVID-19 loans in March.

But analysis by financial services firm EY - which led the work for the Recapitalisation Group - suggests some firms could run into trouble as early as autumn, when the government furlough scheme tapers off and rent deferrals end, putting up to 3 million jobs at risk and 780,000 SMEs in danger of insolvency.

The report urged immediate action by government including legislating to enable UKRC to act effectively.

A spokeswoman for the Treasury said the report was a useful contribution and the department would continue to engage with the sector on supporting businesses.

Under the proposals, the government would be the principal investor in UKRC initially but debt could later be sold off in portfolios or securitised and bought by private investors.

Companies supported by the UKRC could either access a 'Business Repayment Plan' to convert state-backed loans under 250,000 pounds into means-tested tax liabilities.

Firms with larger debts of up to 1 million pounds would be able to access the 'Business Recovery Capital' initiative to convert crisis loans into preference shares or long-term subordinated debt, repayable over a longer period of 8-10 years.

Both products would ensure SMEs do not give up any equity.

The final option is the creation of a new growth capital fund, Growth Shares for Business (GSB), which would provide capital to rebuild cash reserves or spur recovery.

Miles Celic, chief executive of TheCityUK, told reporters banks were mindful of the potential reputational risks involved in pursuing bad debts from struggling firms but said a proposed independent review system should help ensure fair outcomes.

Several lenders including state-backed Royal Bank of Scotland were criticised by politicians for mistreating struggling small businesses after the 2007-09 financial crisis.

EY's UK Financial Services Managing Partner Omar Ali said the recovery corporation could help collect debts over the longer term, adding it was ultimately up to the government to decide the viability criteria for the various schemes.

(Reporting by Sinead Cruise and Iain Withers; Editing by Nick Macfie)

By Sinead Cruise and Iain Withers
Stocks mentioned in the article
ChangeLast1st jan.
BANCO DE SABADELL, S.A. 4.69% 0.3664 End-of-day quote.-64.77%
BANCO SANTANDER, S.A. 5.71% 2.002 End-of-day quote.-46.33%
BARCLAYS PLC -0.23% 111.5 Delayed Quote.-37.79%
HSBC HOLDINGS PLC 3.21% 357.1 Delayed Quote.-41.54%
LLOYDS BANKING GROUP PLC 0.80% 29.69 Delayed Quote.-52.87%
METRO BANK PLC 1.62% 106.7 Delayed Quote.-49.08%
NATWEST GROUP PLC 0.00% 119.35 Delayed Quote.-50.33%
VIRGIN MONEY UK PLC 0.70% 97.44 Delayed Quote.-48.68%
share with twitter share with LinkedIn share with facebook
Latest news on NATWEST GROUP PLC
09:38aNATWEST : to Cut 550 Roles, to Close a London Office -Reuters
DJ
08/07COVID bank loan demand should ease in coming months, says Bank of England
RE
08/07Emergency lending to Scottish businesses falls short, UK data shows
RE
08/06Bank of England says banks able to support coronavirus-hit Britain
RE
08/06Bank of England says banks able to support coronavirus-hit Britain
RE
08/05Britain's banks brace for $22 billion loan losses as outlook darkens
RE
07/31UK watchdog says bank customers may need longer-term crisis support
RE
07/31NATWEST : Swiss court convicts banker for turning blind eye to 1MDB funds
RE
07/31REPEAT & CORRECT : NatWest Swung to 2Q Pretax Loss After Higher-Than-Expected Im..
DJ
07/31NATWEST : Ireland's Ulster Bank extends majority of COVID-19 loan breaks
RE
More news
Financials
Sales 2020 11 127 M 14 481 M 14 481 M
Net income 2020 -1 023 M -1 331 M -1 331 M
Net Debt 2020 - - -
P/E ratio 2020 -13,5x
Yield 2020 3,17%
Capitalization 14 452 M 18 904 M 18 809 M
Capi. / Sales 2020 1,30x
Capi. / Sales 2021 1,32x
Nbr of Employees 62 700
Free-Float 37,9%
Chart NATWEST GROUP PLC
Duration : Period :
NatWest Group plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends NATWEST GROUP PLC
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 140,15 GBX
Last Close Price 119,35 GBX
Spread / Highest target 92,7%
Spread / Average Target 17,4%
Spread / Lowest Target -30,3%
EPS Revisions
Managers
NameTitle
Alison Marie Rose-Slade Chief Executive Officer & Director
Howard John Davies Chairman
Katie Murray Chief Financial Officer & Executive Director
Robert Andrew Joseph Gillespie Independent Non-Executive Director
Morten Nicolai Friis Independent Non-Executive Director
Sector and Competitors