London, January 9, 2026, 11:38 GMT — Regular session
NatWest Group Plc (NWG.L) shares eased on Friday, down 0.3% at 642.4 pence, as investors weighed the pace of the bank’s buyback and a recent broker downgrade. The stock opened at 644.6p and has traded between 640.2p and 647.2p.
The drift matters because NatWest’s rally has turned capital returns into the main debate. Buybacks and dividends can lift earnings per share by shrinking the share count, but they hinge on how much surplus capital the bank can generate and keep.
The next big marker is close. NatWest is due to publish its 2025 annual results on Feb. 13, when it has said it will set guidance for 2026 and new targets for 2028.
In a filing on Thursday, NatWest said it bought back 799,553 shares on Jan. 8 at a volume-weighted average price of 640.21 pence, with prices ranging from 625.0p to 643.2p. It said the shares will be cancelled and that, after settlement, it would hold about 220.1 million shares in treasury, with roughly 8.00 billion in issue excluding treasury stock.
Barclays cut NatWest to “equalweight” from “overweight” on Wednesday and kept its price target at 700p, saying it would “pause for breath” after what it called a strong run since late-2023 lows. In the same sector note, it lifted its target on Lloyds to 120p from 100p.
NatWest closed up 1.9% on Thursday at £6.44, a day after sliding 4.3%, and it is still about 4% below its 52-week high of £6.74 hit on Jan. 6. The broader FTSE 100 was up around 0.4% on Friday morning, with investors also braced for U.S. payrolls data later in the day.
But the buyback is not a free lunch. Faster-than-expected rate cuts could squeeze lending margins, and a weaker economy would raise the risk of loan losses eating into capital that might otherwise go to payouts.
For now, traders will watch whether the shares hold above this week’s 640p lows, and they will look to Feb. 13 for any reset to guidance, targets and the pace of cash returns.
