London, Jan 19, 2026, 09:00 GMT — Regular session
- NatWest NWG.L slipped 1.2% to 644.8 pence during early London trading
- European stocks dropped following Donald Trump’s threat to impose new tariffs on Britain and other countries
- NatWest’s annual results, due Feb. 13, are in investors’ sights.
NatWest Group shares dropped in early London trading Monday, tracking the wider market decline. By 0900 GMT, the stock had slipped 1.2% to 644.8 pence, down from Friday’s close of 652.8 pence.
The drop comes as investors prepare for fresh trade tensions that might drag on growth and credit demand. Trump announced plans to slap an extra 10% tariff on imports from Britain and several European countries starting Feb. 1. That rate would jump to 25% on June 1 if no agreement is struck.
UK shares kicked off the day in the red, the FTSE 100 slipping 0.1% at 0829 GMT, while sterling edged 0.07% higher against the dollar to $1.33, per Investing.com data. NatWest tracked the index closely during the opening hour.
Company-specific catalysts were tougher to identify. The Financial Times reported that creditors such as NatWest and Lloyds Banking Group are poised to seize control of rural broadband firm Gigaclear, following a failed sale attempt. It’s another indication of stress in the UK’s heavily leveraged fibre “altnet” sector. Financial Times
The greater market concern is how widely the tariff dispute might extend beyond just trade. George Saravelos, Deutsche Bank’s global head of FX research, told Reuters in a note that “weaponisation of capital rather than trade flows would be by far the most disruptive to markets.” Reuters
NatWest’s situation hinges on its ties to UK households and small businesses. Changes in confidence tend to hit its loan demand and default rates fast.
Rates introduce a new challenge. When policy rates fall, net interest margin—the difference between earnings on loans and payments on deposits—can get squeezed, especially if lending yields decline quicker than funding costs.
Moves like Monday’s can reverse quickly. If Washington eases up or Europe holds back on retaliation, bank stocks may stabilize. Lenders offering steady payouts tend to attract buyers once the initial turmoil fades.
The downside looks rougher: a drawn-out standoff that drags down business investment, curbs credit expansion, and forces banks to boost their bad loan provisions.
NatWest plans to publish its full-year results at 0700 GMT on Friday, Feb. 13, followed by a management presentation at 0900 GMT. Investors will be looking closely for updates on margins, costs, and credit trends.
