London, June 23, 2026, 09:28 BST
NatWest Group shares dropped 1.18% to 655.2 pence after opening in London, off from Monday’s close at 663 pence, while the FTSE 100 fell 0.91%. Lloyds lost 1.10% and Barclays was down 0.74%. British banks in general saw selling, not just NatWest.
Banks pared Monday’s 3.95% jump after shares in NatWest, Barclays and Lloyds all gave up ground, having risen more than 3% apiece as lenders powered the FTSE 100 higher. Some investors had been reassured by signs of a fast power handover following Prime Minister Keir Starmer’s resignation announcement. “That timetable at least minimises the uncertainty for investors,” Chris Beauchamp, chief market analyst at IG Group, said. Reuters
STOXX 600 slipped 0.89% at the open Tuesday. Markets moved to price in 50 basis points of Fed tightening by year-end and traders reconsidered debt-driven bets on artificial intelligence. A tougher mood hit relief trades.
Brent crude dropped to $76.95 a barrel as concerns faded over supply disruptions in the Strait of Hormuz. Asian shares had already seen steep declines. Sterling dipped 0.1% after Starmer’s announcement. Weaker oil prices could help ease inflation, but risk-off trade continued, dragging European stocks lower.
NatWest’s earnings are still holding up despite share price moves. The bank posted first-quarter income, excluding one-offs, of £4.2 billion and operating profit at £2 billion. Return on tangible equity came in at 18.2%. NatWest said it now expects full-year income at the top of its £17.2 billion to £17.6 billion forecast. “We are confident we will achieve our guidance,” Chief Executive Paul Thwaite said. NatWest Group Investors
NatWest’s first-quarter pretax operating profit rose 12%, but the bank also flagged concerns. It took a £283 million impairment charge for expected loan losses, with £140 million of that tied to weaker economic forecasts after the Iran conflict. NatWest lowered its 2026 UK growth estimate to 0.4% from 1% and slashed its projection for house-price growth.
Bank of England kept rates at 3.75% last week, with two out of nine officials backing a hike. High interest rates are a mixed bag for lenders. They can lift net interest margin—what banks make on loans minus what’s paid to depositors—but if rates stay high for too long, borrowing slows and bad loans can rise.
Group Chief Information Officer Scott Marcar sold 251,868 NatWest shares at £6.3449 apiece on June 19, according to a regulatory filing out Monday. The shares traded on the London Stock Exchange. The filing didn’t specify why Marcar sold the stock.
Risks still stand out. Political support might not last if the Labour leadership race brings back worries about spending or taxes. Slower UK growth could mean NatWest needs to set aside more for bad loans. The bank is also taking on deal risk with its £2.7 billion buy of wealth manager Evelyn Partners, its largest deal since the 2008 rescue. NatWest is running a £750 million buyback too.
NatWest lost ground on Tuesday but is still up around 2.7% from where it finished on Friday. The bank’s half-year earnings are due out July 31. That’s when investors will be watching NatWest’s income guidance, loan-loss projections, and what’s happening with the Evelyn deal.
