LONDON, March 12, 2026, 15:15 GMT
NatWest shares slipped 3.4% to 568 pence as of 1511 GMT on Thursday, deepening losses for the stock, which had been above 590p just two days back. That price leaves the lender sitting about 20% under its 705.4p peak from the past year.
This retreat stands out. NatWest was one of the UK’s standout bank trades—buoyed by fatter profit goals, a new buyback, and a ramp-up in wealth management. Despite Thursday’s slide, shares remain up roughly 36% over the last year. So the question now: how much of that bullishness sticks as conditions get tougher?
NatWest wasn’t the only name taking a hit on Thursday. The FTSE 100 slipped 0.4% during the morning session, oil bouncing back up toward $100 a barrel and traders dialing back expectations for rate cuts from the Bank of England. “The longer the disruption goes on, the greater the impact on energy prices and in turn global inflation,” said AJ Bell’s Danni Hewson. Reuters
The shift in the macro backdrop isn’t doing NatWest, a largely UK-focused lender, any favors. According to a RICS survey, new buyer enquiries across Britain’s housing market just slumped to their lowest since December. Rising oil and energy costs are raising the odds mortgage rates remain elevated, Tarrant Parsons, head of market research and analytics at the group, said.
Competition is on the move as well. On Wednesday, Revolut announced it had secured approval to operate as a British bank, with current accounts set to roll out within days—a direct push into NatWest’s turf, right up against Barclays and Lloyds. “The full licence will sharpen pressure on both traditional banks and the cohort of challenger banks,” said Elliot Reader, a director in Houlihan Lokey’s fintech group. Reuters
NatWest took a different tack. Last month, the bank posted a 24% jump in 2025 pretax profit, hitting 7.7 billion pounds, and set its sights even higher for returns, pushing the 2028 return on tangible equity target past 18%. That’s profit measured against shareholder capital. NatWest also rolled out a 750 million pound buyback. “Raising our ambition and sharpening our strategic focus,” CEO Paul Thwaite said. Reuters
Wealth is central to that strategy. NatWest is moving further into fee-driven wealth management, echoing recent pushes from HSBC and Lloyds as they hunt for revenue streams beyond straightforward lending. The bank’s planned £2.7 billion acquisition of Evelyn Partners would lift assets under management and administration to £127 billion—more than double the current figure—and, according to NatWest, deliver around £100 million in yearly cost savings.
From the outset, investors showed caution. Shares in NatWest dropped 4.5% on the day it announced the Evelyn acquisition. RBC Capital Markets’ Benjamin Toms described the transaction as “transformational”; Jefferies, by contrast, flagged that the price tag might drag earnings per share below a no-deal scenario until 2028. Reuters
A support level remains in place for now. NatWest’s planned final dividend of 23 pence per share goes ex-dividend on March 19—buyers after that date miss out on the payout.
The risk is right there: should oil prices remain elevated, housing cool further, and Evelyn’s integration drag on, shares could find it tough clawing back losses posted since February’s peak.
