London, Feb 13, 2026, 10:40 GMT — Regular session.
NatWest Group slipped 0.9% to 589.4 pence as of 1020 GMT, pulling back from earlier highs despite hiking its long-term profit goals with fresh annual results. The stock swung from 585.4 pence to as much as 609.0 pence during initial trading. (Shareprices)
It’s a pivotal moment for UK bank investors, still trying to define what “good” actually means as the simple stretch of the rate cycle winds down. Returns are facing tougher questions, as is the balance between capital handed back to shareholders and capital put to work elsewhere.
NatWest is pushing further into fee income, with a particular focus on wealth, just as lending margins look set to ease off. That shifts the spotlight to execution, not simply the headline profit number.
NatWest posted a pretax profit of 7.7 billion pounds for 2025, a 24% increase and just edging out the 7.5 billion pounds analyst consensus the bank had gathered. The lender also bumped its return-on-tangible-equity target, now aiming for above 18% by 2028, and is planning a 750 million pound share buyback in the first half of 2026. “We’re raising our ambition and sharpening our strategic focus,” chief executive Paul Thwaite said. (Reuters)
NatWest’s annual report showed income climbing to 16.4 billion pounds and return on tangible equity reaching 19.2% for 2025. The board put forward a final dividend of 23.0 pence per share, pushing the year’s total up to 32.5 pence. CET1 ratio landed at 14.0%.
The bank snapped up 880,853 shares on Feb. 12, paying a volume-weighted average price of 607.78 pence, according to a filing—this buyback falls under its existing repurchase programme. That volume-weighted price reflects the average paid, factoring in the size of each trade. (SEC)
Some analysts say the selloff following NatWest’s wealth ambitions might have gone too far. UBS stuck with its 780 pence price target, calling “the additional weakness at NatWest” “overdone.” Shore Capital, on the other hand, kept a cautious stance, pointing to deal economics that “rely heavily on synergy delivery”. (Interactive Investor)
Still, investors can spot several pitfalls ahead. Wealth growth needs to hit its mark, while those promised cost and revenue synergies must materialize on time. Lower rates might eat into lending margins quicker than fee income can pick up the slack. A weaker UK economy? That could put credit quality under pressure, especially after such a run of low defaults.
Looking ahead, investors are waiting to hear further details on the bank’s wealth strategy and capital return plans during the upcoming results presentations. The calendar’s already marked: NatWest’s Q1 2026 numbers land on May 1, with half-year results set for July 31. (Natwestgroup)
