Lloyds Banking Group PLC (LSE:LLOY) and NatWest Group PLC (LSE:NWG) were among the leading FTSE 100 fallers on Friday as investors reacted to expectations that Chancellor John Healey could raise taxes on banks in the 28 October budget. Lloyds fell 1.9% to 103.85p shortly after 8:30, while NatWest dropped 1.8% to 662.2p, with the sector facing the prospect of a higher surcharge on banking profits.
NatWest Group PLC (LSE:NWG) is among Citi's top picks, as healthy loan volumes and supportive interest rates underpin European bank earnings despite cooling deposit momentum. Citi maintained its 'overweight' stance on European banks, naming ABN AMRO and SocGen alongside NatWest as its top picks for the sector.
NatWest Group plc (NWG) Presents at Barclays 24th Annual Global Financial Services Conference Transcript
NatWest Group PLC (LSE:NWG) was named a top pick by Citi on Wednesday, even as the investment bank cautioned that the current European banking bull run is nearing its final leg. The shares dipped 0.23% to 688.6p as Citi maintained an 'overweight' rating on the wider sector, observing that recent earnings upgrades have now broadened to other market sectors too.
NatWest Group NYSE: NWG reported higher second-quarter income and profit, supported by broad-based lending growth, higher non-interest income and continued operating leverage, while raising its 2026 return-on-tangible-equity guidance to more than 19%.
NatWest Group plc (NWG) Q2 2026 Earnings Call Transcript
The lender reported a 29% rise in pretax profit as it completed the acquisition of wealth manager Evelyn Partners.
NatWest Group PLC (LSE:NWG) upgraded its full-year guidance and brought forward plans for further share buybacks after first-half profit climbed on higher income and improved efficiency. Attributable profit rose to £3 billion in the six months to June, while operating profit before tax increased 20.4% to £4.3 billion.
Citi has told investors that concerns over UK politics and Chinese regulation weighing on the country's banks should now begin to ease, allowing attention to return to what it calls impressive return trajectories. In its summer 2026 big-picture note on the sector, the bank said it remained constructive on UK bank fundamentals, citing net interest margin expansion and high-volume growth.
NatWest Group Plc earns a Buy rating, targeting a 26.9% upside to $22.54, driven by agentic AI integration and the Evelyn Partners acquisition. Agentic AI slashes software deployment from 6 weeks to 6 hours, enabling hyper-scaling of NWG's £127 billion AUMA wealth management platform and supporting a sub-45% C/I ratio. Wealth management fee income, expected to rise 20% post-Evelyn, supports >18% RoTE and justifies potential multiple expansion as NWG pivots from net interest income.
NatWest Group PLC (LSE:NWG) said it expects to lift fee income by about 20%, improve returns and increase its exposure to the UK wealth market after completing its £2.7 billion acquisition of Evelyn Partners. The FTSE 100 lender said the deal completed on 30 June, creating the UK's biggest private banking and wealth management business.
NatWest CEO Paul Thwaite said artificial intelligence (AI) is going to change the bank's workforce, though he didn't say whether it would reduce the size, Finextra reported Friday (June 19).