London, June 11, 2026, 14:03 BST
- NatWest was up about 1.3% in London trading, ahead of the FTSE 100 in delayed quotes from retail brokers.
- The move came as traders turned their attention back to UK bank earnings, with questions about how profits hold up if interest rates remain high or go higher.
- UK inflation numbers land June 17, followed by the Bank of England policy call the next day on June 18. Those are the next big tests.
NatWest Group Plc shares pushed higher Thursday, gaining 7.40p, or 1.26%, to trade at 593.40p/593.60p, according to delayed Hargreaves Lansdown prices. Investors bought back into UK financials, putting NatWest near the top of the UK bank movers as the FTSE 100 showed a 0.80% rise on the same feed. Rate expectations drove much of the action.
NatWest’s UK focus puts it right in the path of the Bank of England’s rate decisions, which is why investors pay such close attention. AJ Bell says about 90% of NatWest’s total income comes from the UK. That means UK rate moves feed more directly into its lending numbers compared with banks with more global business.
FTSE 100 lifts 0.6% as financials rebound, traders look to September BoE rate hike Thursday’s gains were not due to a fresh profit warning or takeover talk. The move followed a wider uptick in financial stocks. According to Reuters, the FTSE 100 added 0.6% to 10,316.05 at 0917 GMT, with financial shares the main support. Traders were betting on a 25-basis-point Bank of England rate rise in September. One basis point is equal to one-hundredth of a percentage point.
Banks can get a boost from higher rates, which often push up net interest income, the margin between what they earn on loans and pay out on deposits. That explains why even a small shift in rate outlook is enough to move NatWest shares with no new news from the bank itself. Trading Economics pointed to solid action in financial names, tracking gains in HSBC, Lloyds, Barclays and Standard Chartered, while NatWest was also up.
Bank of England keeps Bank Rate at 3.75%, warns on energy risk The Bank of England left its Bank Rate at 3.75% on April 30 in an 8–1 split. One official wanted a 25 basis point hike. The Bank cited “highly uncertain” global energy prices because of the Middle East conflict, warning policy might have to shift if inflation keeps moving into wages and prices. Bank of England
NatWest is already seeing rate-driven earnings this year. The bank posted total income of £4.2 billion for Q1, before notable items, and operating profit came in at £2.0 billion. Return on tangible equity was 18.2%. RoTE looks at profit against shareholder equity, minus things like goodwill.
NatWest posted attributable profit of £1.4 billion, with earnings per share at 17.9p, up 15.5% on the year. Customer assets and liabilities added £8.4 billion for the quarter. Net loans to customers, excluding central items, increased £7.2 billion. These numbers explain why the stock can swing sharply when investors shift their views on the UK rate curve.
NatWest’s first-quarter profit climbed 12%, Reuters reported after the May results. The bank also raised its income forecast, now guiding for income near the higher end of the £17.2 billion to £17.6 billion range. “We are confident we will achieve our guidance,” Chief Executive Paul Thwaite said, but he pointed to ongoing market uncertainty. Reuters
NatWest’s latest filing this week looked routine. The bank said deferred share awards vested on June 8 as part of its 2024 Employee Share Plan. Thwaite got 130,784 shares, with 69,223 kept after tax withholding. The filing also showed Thwaite, along with CFO Katie Murray and Retail CEO Solange Chamberlain, sold shares on June 8 at £5.9079 under previously disclosed trading plans from September 2025.
Valuation is both a draw and a sticking point. Hargreaves Lansdown put NatWest’s market cap at around £47.25 billion, with the stock trading on a price-to-earnings ratio of 8.62 and offering a 5.48% dividend yield. The price-to-earnings ratio looks at the share price versus yearly profit per share. A lower figure can mean a cheaper stock, or it might reflect worries about future earnings.
Inflation may lift rate hopes, but it could also hit borrowers. Reuters reported NatWest set aside £283 million for possible loan losses in the first quarter, with £140 million tied to fallout from the Iran war. That’s an impairment charge. More expensive energy could put more pressure on households or businesses; any boost from lending income might get eaten up by bad loans.
UK inflation numbers land June 17 from the Office for National Statistics, with the Bank of England rate call the next day. A stronger inflation reading could keep the NatWest rate trade going. A cooler one might pull support from Thursday’s share price bounce.
