London, Jan 31, 2026, 08:37 GMT — The market has closed.
- NatWest shares ended Friday on an upswing, nearing their January highs.
- The bank revealed additional share buybacks and provided an updated count of its voting rights.
- Focus shifts to the UK rates decision on Feb. 5 and NatWest’s annual results due Feb. 13.
Shares of NatWest Group Plc climbed 1.8% on Friday, closing at £6.65. That puts them roughly 1.3% shy of their 52-week peak of £6.74, reached on Jan. 6. Trading volume came in at 14.3 million shares, trailing the 50-day average of 17.7 million. (MarketWatch)
The FTSE 100 rose 0.5%, marking its seventh consecutive month of gains, boosted by another solid day for UK banks. “The weaker pound is obviously beneficial for the multinationals,” noted Fiona Cincotta, senior market analyst at City Index, as investors digested Donald Trump’s choice of Kevin Warsh to head the Federal Reserve. (Reuters)
NatWest’s late-January rally keeps it center stage as February approaches, a month when rate cues and bank earnings often shift the sector fast. Traders are on alert for any developments that could alter the outlook on margins, expenses, and capital returns.
NatWest revealed on Friday it repurchased 787,709 ordinary shares at a volume-weighted average price of 663.60 pence under its ongoing share buyback programme. The bank intends to cancel these shares. Once settled, it will hold 218,748,847 shares in treasury, with 7,989,466,999 shares outstanding excluding treasury stock. Merrill Lynch International handled the transactions on the London Stock Exchange. A buyback involves a company buying back its own shares, usually to return cash to shareholders and reduce the number of shares trading. (Investegate)
A U.S. filing revealed the bank repurchased an additional 808,436 shares on Jan. 29, paying an average of 659.73 pence per share, with prices between 653.40 pence and 665.40 pence. The bank also stated it plans to cancel these shares. (SEC)
NatWest released a Total Voting Rights update on Friday, reporting 7,991,063,144 ordinary shares in issue excluding treasury stock, each carrying four votes. It added that total voting rights, factoring in preference shares, reached 31,966,185,136. This figure is key for investors tracking when they must disclose changes in their holdings. (TradingView)
Friday saw gains across the sector. Lloyds Banking Group surged 3.3%, reaching a fresh 52-week peak, while Barclays rose 1.4%, according to market data. (MarketWatch)
UBS analyst Jason Napier told Proactive Investors that investors are “mostly holding banks for earnings per share growth rather than a large re-rating.” He flagged delivery on earnings and capital returns as the main test ahead, especially as valuations climb. (Proactiveinvestors NA)
Rates remain the key driver. On Thursday, the Bank of England handed out over 100 billion pounds in its weekly short-term repo operation, hitting that level for the first time since the scheme began in 2022, Reuters reported. A repo is a secured short-term loan, and the uptick suggests banks are increasingly relying on this tool as the BoE scales back its previous bond-buying efforts. (Reuters)
Feb. 5 is the key date ahead, when the BoE will release its Monetary Policy Summary and minutes, along with the quarterly Monetary Policy Report, at noon. This matters for lenders since it influences expectations around the Bank Rate and, consequently, the “net interest margin”—the spread between what banks earn on loans versus what they pay on deposits. (Bank of England)
Buybacks and a solid rally in bank shares won’t shield stocks if interest rates shift sharply against lenders, tightening margins. Rising credit losses from a slowing economy add to the risk. Mortgage price competition is another factor—and it can hit quickly.
NatWest is set to publish its Annual Results at 7am GMT on Friday, Feb. 13. A management presentation follows at 9am, with a fixed income call scheduled for 1.30pm. Investors want clarity on 2026 outlook and if the bank will continue favoring buybacks or pivot toward boosting dividends. (Natwestgroup)
