London, Feb 6, 2026, 08:01 GMT — Regular session.
- NatWest shares nudged up early Friday following a 6% slide the day before.
- After the Bank of England’s split vote, traders are reassessing their bets on UK rate cuts.
- NatWest is set to release its annual results next week, with investors eager for updated guidance.
NatWest Group Plc shares (NWG.L) climbed roughly 0.7% to 654.6 pence in early London trading on Friday, recovering a small part of Thursday’s steep drop. Investing.com
The shift follows a Bank of England pivot that pressured bank shares on Thursday. NatWest, Lloyds, and HSBC all dropped as traders factored in an accelerated timeline for rate cuts. Reuters
This is crucial now since UK banks’ earnings hinge closely on interest rates. When rates drop, net interest margin — the difference between what banks earn on loans and what they pay on deposits — can get squeezed, despite providing relief to borrowers.
The BoE kept the Bank Rate steady at 3.75%, narrowly avoiding a hike in a 5-4 vote—tighter than many had predicted. Governor Andrew Bailey noted that “the risks from inflation persistence” had “continued to reduce,” and signaled: “I therefore see scope for some further easing of policy.” Reuters
The central bank’s policy summary indicated the Bank Rate is “likely to be reduced further,” though it emphasized that how much and when hinges on the inflation outlook. The next rate decision comes on March 19. Bank of England
NatWest pushed ahead with share buybacks. A U.S. regulatory filing from Feb. 5 revealed the bank repurchased 805,465 ordinary shares on the London Stock Exchange, at a volume-weighted average price of 664.69 pence. The filing also confirmed NatWest’s plan to cancel these shares. SEC
NatWest ended Thursday at 650 pence, slipping 6.02% after dipping to 6.50 pounds earlier in the session. The stock closed just below that mark a day after hitting a 52-week high, according to MarketWatch data. MarketWatch
Company news isn’t just focused on rates. NatWest announced on Wednesday it plans to deliver a £10 billion funding boost to the UK social housing sector by 2028, having already hit a previous lending target ahead of time. Reuters
NatWest’s annual results are set for release at 7 a.m. GMT on Friday, Feb. 13. The bank will follow up with a management presentation at 9 a.m. NatWest Investors
The rebound case remains fragile. Should investors push rate-cut expectations further ahead, the sector may suffer another blow over concerns about reduced lending income. Any hint of weaker credit demand or increasing defaults would only deepen the losses.
