Morgan Stanley downgraded NatWest Group to Equal Weight from Overweight with a price target of 310 GBp, down from 320 GBp. The analyst says lower deposit balances and a mix shift towards term will result in lower net interest margin than consensus estimates for NatWest in Q3 and Q4. The firm also sees risk of a reduction of the structural hedge below the GBP 190B it has by year-end as a result of the deteriorating mix.
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