National Westminster Bank Plc Writing Assignment

NATIONAL WESTMINSTER BANK PLC
Student’s Name
Institutional Affiliation
Date
Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc4249241 \h 3NatWest’s Competitors PAGEREF _Toc4249242 \h 5Analytical Review of Accounting Ratios PAGEREF _Toc4249243 \h 5Analytical Review PAGEREF _Toc4249244 \h 5Accounting Ratios PAGEREF _Toc4249245 \h 6Profitability ratio PAGEREF _Toc4249246 \h 6Risk Ratio PAGEREF _Toc4249247 \h 7Capital Ratio PAGEREF _Toc4249248 \h 7Efficiency Ratio PAGEREF _Toc4249249 \h 8Conclusion PAGEREF _Toc4249250 \h 8
Introduction
National West Bank PLC (NatWest) is the leading banking institution in the United Kingdom. The bank operates in the banking and financial service sector. NatWest was created in 1968 from a merger of three companies, namely National Provincial Bank, District Bank, and the Westminster (Ashby, J. 2017). Ever since, NatWest has expanded its operations through mergers and acquisitions to become one of the powerful banking institutions in the UK, competing with other rivals in the banking and service industry.
NatWest is currently headquartered in Edinburgh in Scotland, with the main geographical areas of operation in Wales and England. There are currently no expansion plans, except for community development plans that aim at pushing the bank close to its customers in the region as reported in the company’s 2018 annual report. Natwest is the brain behind the MoneySense program that targets young people between the age of five and eighteen years. According to the information from the bank’s website, the program aims at teaching young people on how to monitor development and investment in funding programs. Once young people have developed money management skills, they can then be incorporated in the national development programs or bank with the company in the future. The bank is targeting one million young people in the next two years.
NatWest’s main operating segments include personal and business banking, commercial and private services, and capital resolutions. Currently, the company is serving over fourteen million customers in Wales and England. Other operations that the company has ventured into include private banking investments in the UK and its environs, central banking business, and personal banking investments. Corporate and Institutional Banking services include loans and other services that are extended to the company’s customers and business industries within the UK. NatWest’s banking practices serve the UK and other well-connected and wealthy individuals in the region. Currently, NatWest is affiliated as a branch to the Royal Bank of Scotland (RBS). This has helped the company to expand its operations in the region to tackle competition in the service industry.
According to the information on the company’s website, NatWest has been involved in different programs that have enabled the company to maximize its services and extend how it reaches out to its clients. For instance, in 2016, the company came up with a new program of funding the IT sector and manufacturing sectors in Western Europe. NatWest Bank has maximized financial lending services to investors in Wales and Scotland where its major operations are centered. Additionally, to enable the bank to serve its customers efficiently, it has come up with the online banking options where clients can log in to process banking services and interact with the bank’s management team.
NatWest’s Competitors
NatWest’s competitors are present at the local and the international level. In this technological era where a lot of online financial lenders are emerging, NatWest is facing a stiff competition that impacts its success and operations. The banking industry, for instance, has been growing in the recent past, attracting investors from different regions. The table below summarizes NatWest’s competitors in terms of financial performance.
Table SEQ Table \* ARABIC 1. NatWest's Competitor Comparison
CYBG

Pryce Warner International Group

Metro Bank

Compared to NatWest, CYBG generates $1.3B in revenue annually.

Compared to NatWest, Price Warner generates $1.12B in revenue annually.

This is considered the third competitor of NatWest Bank. It generates an annual revenue of $396.4 million compared to NatWest PLC, which generates $101.4 million annually.

Analytical Review of Accounting Ratios
Analytical Review
This section analyzes the performance of NatWest PLC about its three competitors. CYBG is one of the oldest rivals of NatWest, incorporated in 1838. CYBG operates in a similar line of operation as NatWest and has the highest number of employees both at local and international level. According to Bloomberg (2019), the company employed 6, 817 employees, as of the end of 2017 compared to NatWest PLC which has a total of three thousand employees as of the end of the year 2018. The other primary difference is in the acquisition where NatWest PLC was acquired by the Royal Bank of Scotland (RBS) in March 2000.
Metro Bank PLC is another rival of NatWest Bank in the United Kingdom. The bank started in 2010 and has had a significant performance in the country within a short period. According to Bloomberg, Metro Bank PLC operates by offering a range of financial services to clients in the United Kingdom. The primary areas of operation include mortgages, personal finance, and debit and credit cards. Compared to NatWest Inc., Metro Bank PLC had employed a total of 2, 831 employees in the UK as the end of the year 2018. This figure is expected to rise slightly even as the bank considers expanding its operations in the UK.
Pryce Warner International Group is an internationa...