London, May 16, 2026, 17:06 BST
- NatWest shares finished Friday at 561.2p, off 1.6% for the session and roughly 3.2% lower than they were last Friday.
- The bank said late Friday it picked up 3.67 million shares this week and wants to cancel them.
- UK gilt yields, the pound, and pressure on British banks are in the spotlight Monday after Barclays and Lloyds both dropped over 2% Friday.
NatWest Group heads into the next London trading day weaker after shares dropped Friday. The stock was hit amid a broader UK selloff, though the bank continued its buybacks.
London Stock Exchange is closed Saturday, as usual on weekends, not for any extra holiday. The next official holiday is the Spring Bank Holiday on May 25. Monday will be open, so markets can catch up after moves in politics, oil and bonds over the weekend.
NatWest closed Friday at 561.2p, off 9.2p, or 1.61%. The week before it finished at 579.8p, so the stock dropped about 3.2% for the week. Shares moved from a Monday high of 590.8p to a low of 552.2p on Tuesday, before giving up more ground late in the week.
NatWest wasn’t the only story. The FTSE 100 fell 1.71% to 10,195.37 on Friday, hitting its lowest close since the end of March. Miners and utilities were down too. A weaker index can hit NatWest since passive and benchmark-tracking flows could leave the UK blue-chips as a group.
UK banks dropped Friday as investors pulled out of sterling, bonds and equities, citing domestic political jitters and worries about global inflation. Barclays and Lloyds each fell over 2%, according to Reuters. Yields on 10-year gilts climbed nearly 12 basis points to about 5.11%.
Jefferies economist Mohit Kumar said, “Market’s fear is that Burnham would be more left leaning,” as talk swirls about Greater Manchester Mayor Andy Burnham possibly going for Labour’s leadership. Kumar also said investors were worried about “further increase in deficits.” Reuters
NatWest bought back 3,671,004 ordinary shares from UBS over May 12 to May 15, picking them up on LSE, CHIX and BATE exchanges. Prices paid were between 553.0p and 566.0p. The bank said the shares, which are headed for cancellation, will lower the total share count after settlement. The move is detailed .
NatWest kept up the strong earnings pace in the first quarter, posting operating profit before tax of 2.0 billion pounds, up from 1.8 billion pounds last year, and pushed its 2026 income outlook to the top end of its 17.2 billion to 17.6 billion pound range. Chief Executive Paul Thwaite said the bank is “confident” it will hit guidance, but pointed to market uncertainty. Reuters
NatWest posted stronger profit, but there were warnings. The bank lowered its UK GDP growth outlook for this year to 0.4%, down from 1.0%, and took a 283 million pound impairment. That charge is set aside for possible loan losses. Higher interest rates help NatWest’s lending income, but they also risk adding strain to borrowers and can weigh on the stock.
NatWest reported its first-quarter return on tangible equity at 18.2%, according to the bank’s own statement. Attributable profit came in at 1.4 billion pounds. Earnings per share increased 15.5% year over year to 17.9p.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, wrote after the numbers that NatWest is “one of the best-placed UK banks” for sector tailwinds. He pointed to the structural hedge as a key source of income — it’s a bond portfolio that moves to new rates over time. Britzman also warned about “a growing risk of slower economic growth.” HL
NatWest’s near-term outlook is cautious. If gilt yields pull back and the FTSE stabilizes, the stock could stay around 555p and try to move back toward 570p, its Thursday close. More bond selling would put Friday’s 554.6p low and Tuesday’s 552.2p low in focus.
But the risk isn’t one-way. UK banks could recover fast if Westminster news stays quiet or oil prices fall, helped by the buybacks in play. On the flip side, if yields go higher, mortgages slow or credit-loss concerns build, the capital-return trade could lose momentum. In that setup, NatWest might end up trading as a macro bellwether for the UK, not just on its own earnings numbers.
