London—March 26, 2026, 18:31 GMT
NatWest Group ended Thursday near 537 pence, slipping from Wednesday’s 543 pence close after dipping to 532.6 pence in the session. The move comes as investors digested news of the bank offloading its Mentor HR advisory unit, set against wider pressure hitting UK stocks.
This move comes as NatWest doubles down on its core banking and wealth management focus, shedding nonessential business while British banks face a tougher environment. Markets are now factoring in almost three Bank of England rate hikes for this year. Yet, most economists in a Reuters poll see the central bank holding steady. That leaves bank investors juggling strategy as the macro backdrop shifts quickly.
NatWest on Wednesday announced plans to offload Mentor—its unit that delivers HR, employment law, health and safety, and environmental management advice—to Empowering People Group, which is backed by Limerston Capital. There’s no disclosure on financial details. The transaction is set to wrap up sometime in the third or early fourth quarter of 2026. NatWest also said it will keep offering clients access to Mentor via referrals.
Robert Begbie, who leads NatWest’s commercial and institutional arm, described the sale as “an important step” toward streamlining the group. The bank added it anticipates Mentor will continue serving NatWest clients following the deal’s close. NatWest Group
The sale comes as NatWest shakes up its business. Back in February, the bank announced a £2.7 billion acquisition of Evelyn Partners, debt included. That deal sends NatWest’s assets under management and administration up to £127 billion—more than double the previous total. Like its rivals HSBC and Lloyds, NatWest is leaning in on fee-generating wealth management as returns from lending soften. RBC Capital Markets analyst Benjamin Toms called the Evelyn move “transformational” for NatWest’s affluent segment. Reuters
On Thursday, a separate filing put out a fresh, company-focused flag for the market. Capital Group Companies trimmed its NatWest voting stake to 4.991397%, down from 5.005597%, nudging just under the UK’s 5% disclosure line after the move became effective March 24.
Macro pressures dominated. London’s FTSE 100 slipped 1.3% Thursday, with Brent crude breaking past $105 a barrel. The OECD slashed its UK growth outlook for 2026 to 0.7%—the steepest downgrade among major economies—and bumped up its inflation estimate to 4.0%, according to its interim update.
That sets up a tricky scenario. “The risk of hikes has increased” if the Middle East conflict persists, Santander CIB’s UK economist Gabriella Willis told Reuters. Even so, most economists in a Reuters poll still see the Bank of England keeping its benchmark rate parked at 3.75% through the end of the year. NatWest and the rest are caught between: growth is sagging, but there’s no obvious rates boost for the share price. Reuters
NatWest entered the week riding solid results. Back in February, it posted a 2025 pretax profit of £7.7 billion—beating the bank’s own analyst consensus of £7.5 billion—and rolled out a £750 million buyback planned for the first half of 2026. The lender also lifted its target for return on tangible equity, aiming now for above 18% by 2028, a metric closely watched by bank investors.
The next real test is just around the corner. NatWest posts first-quarter results on May 1, according to its investor calendar, and that release should give investors a clearer read than this week’s headlines on whether the bank’s push for simplification keeps outpacing the murky UK economic backdrop.
