London, Jan 20, 2026, 09:14 GMT — Regular session
NatWest Group Plc (NWG.L) saw its shares dip 0.5% to 643.0 pence by 0914 GMT in early London trading Tuesday. The stock fluctuated between 641.0 and 651.2 pence as the FTSE 100 dropped 1.3%, dragging UK banks lower amid rising gilt yields. (Investing.com UK)
This move is significant since NatWest now serves as a key indicator of investor confidence in UK banks’ ability to profit amid a prolonged high-rate environment—and how swiftly that confidence can evaporate when markets shift to risk-off mode.
Shareholders remain focused on capital returns. At NatWest, the issue isn’t growth but how quickly management chooses to deploy surplus capital.
Late Monday, NatWest disclosed it repurchased 826,992 ordinary shares on Jan. 19, paying a volume-weighted average price of 643.14 pence each. This move is part of its ongoing buyback programme. The bank confirmed it plans to cancel the shares. (Investegate)
NatWest also rolled out new survey data showing mid-sized companies poised for a stronger finish to 2025, even as smaller businesses continue grappling with cost pressures. Chief Economist Sebastian Burnside noted that business owners are “heading into 2026 with greater certainty.” Andy Gray, head of commercial banking, described mid-market firms as “a powerful engine” driving the UK economy. (Natwestgroup)
Buybacks may provide some cushion on weaker days, but they won’t shield shares from a wider bank selloff triggered by shifts in bond yields or investor moves away from financial stocks.
The main risk lies in the rate trajectory. Should the Bank of England cut rates more quickly than anticipated, net interest margins—the difference between what banks earn on loans and pay on deposits—could shrink. At the same time, a slowing economy may drive up loan losses.
Traders are eyeing NatWest’s annual results set for Feb. 13, with the report dropping at 7 a.m. GMT. A management presentation follows two hours later at 9 a.m. GMT. (Natwestgroup)
