London, Feb 16, 2026, 07:58 GMT — Premarket
Key points:
- NatWest starts a new share buyback programme on Monday, after flagging it earlier this month.
- Shares last closed at 580.2 pence, down 2.5% on Friday.
- Investors are weighing capital returns against the bank’s wealth push and fresh ESG scrutiny.
NatWest Group Plc begins a new share buyback on Monday, putting its share price in the spotlight ahead of the London session.
NatWest shares closed at 580.2 pence on Friday, down 2.5% on the day, leaving the stock nursing a late-week pullback into Monday’s open. (Hargreaves Lansdown)
The buyback matters now because it is one of the few near-term levers management controls, at a time when investors have been quick to mark down UK bank stocks on deal risk, targets and anything that looks like a policy U-turn.
It also lands as traders look for signs that capital returns can keep pace with NatWest’s spending on growth, including its push deeper into wealth management, where margins are steadier but competition is already packed.
In a regulatory notice dated Monday, the bank said the programme is for up to £750 million and will run until no later than Jan. 15, 2027, with a short extension possible in some circumstances. NatWest said UBS will run the buyback under “non-discretionary” instructions, meaning the broker makes trading decisions independently within set limits, and the bank intends to cancel the shares it repurchases. (Research Tree)
The new programme follows the completion of NatWest’s previous buyback, which it said finished after purchases on Feb. 13. NatWest said that programme repurchased 131.2 million shares for cancellation for total consideration of £750 million, at a volume-weighted average price of 571.45 pence per share. (TradingView)
On Friday, NatWest reported a 24% jump in annual pretax profit and lifted its profitability target, setting a goal for return on tangible equity — a key measure of profit against the bank’s hard capital — of more than 18% in 2028. “We are raising our ambition and sharpening our strategic focus,” Chief Executive Paul Thwaite said. (Reuters)
That update came against a wider backdrop of UK lenders polishing targets and strategy, with peers such as Barclays and Lloyds also talking up returns as the sector tries to defend earnings power as interest rates ease. (Reuters)
Still, a buyback does not fix everything. Investors remain alert to execution risk around NatWest’s wealth expansion, and the shares can still be pushed around by rate expectations, credit worries or any sign that the bank’s costs drift higher.
NatWest also drew fresh attention on Friday after it softened parts of its fossil fuel lending policy, a move that prompted criticism from ShareAction ahead of the bank’s annual meeting later in April. “NatWest has long positioned itself as a climate leader, so stepping back…is a serious concern,” ShareAction senior campaign manager Kelly Shields said, while NatWest sustainability head Kirsty Britz said the policy reflects the “complexity” of the transition. (Reuters)
In the week ahead, traders will watch early buyback activity and any follow-on disclosures, as well as the run-in to NatWest’s late-April annual meeting and the stock’s March 19 ex-dividend date for the final payout flagged with its results.
