London, Jan 28, 2026, 08:20 GMT — Regular session
- NatWest shares dipped 0.5% in early London trading following a solid rally across UK bank stocks
- A Reuters report indicated the lender might boost its key profitability target in upcoming results
- Investors remain focused on buybacks alongside policy cues from the Fed and Bank of England
NatWest Group Plc (NWG.L) shares slipped 0.45% to 664.6 pence by 0820 GMT, easing back from Tuesday’s 667.6 pence close. The move comes amid renewed chatter on bank guidance heading into earnings season.
The move follows a strong sector rally on Tuesday that lifted London’s bank index to its highest point since May 2008. Investors are also eyeing the U.S. Federal Reserve’s policy decision due Wednesday, along with expectations that the Bank of England will keep rates steady at its February meeting.
Reuters reported Monday that NatWest plans to raise its 2027 return on tangible equity (ROTE) target to as high as 17%, up from 15%, ahead of its upcoming annual earnings report. Sources indicated HSBC and Barclays might follow suit with higher targets. “UK banks have benefited from earnings resilience lasting longer than initially expected,” Peter Rothwell, KPMG UK’s head of banking, told Reuters. Shore Capital analyst Gary Greenwood cautioned the government will likely pressure lenders to “grow their loan books faster,” potentially leading to more aggressive pricing on new loans. Reuters
NatWest has been cutting down its share count. On Jan. 27, the bank repurchased 796,761 ordinary shares at an average price of 665.48 pence, with plans to cancel them as part of its ongoing buyback programme.
That capital return comes as political pressure mounts to boost lending. Britain’s top five banks, NatWest among them, pledged a total of 11 billion pounds ($15 billion) in lending capacity to support businesses looking to invest and grow overseas, the government announced Monday. UK Export Finance will back up to 80% of qualifying loans.
Bank bulls highlight a favorable market environment for the sector. The FTSE 350 banking index has climbed roughly 6% year-to-date, beating its euro zone counterparts, Reuters reported Tuesday.
NatWest’s ADR (NWG) on the New York exchange hit $18.30, gaining roughly 2.2% from its previous close, market data shows.
Still, a higher target isn’t without risks. If rate cuts come sooner than anticipated or loan growth squeezes margins, that optimistic guidance could quickly seem overblown.
NatWest’s annual results drop on Feb. 13 at 0700 GMT, with a management presentation scheduled two hours later at 0900 GMT, per the bank’s investor calendar.
