NatWest Group today said its annual profits swelled by nearly a quarter to £7.7 billion in 2025.
The banking giant also disclosed an improved £6.6 million remuneration package for chief executive Paul Thwaite.
The FTSE 100 index is on firmer footing after yesterday’s selling, which was sparked by Wall Street tech weakness.
FTSE 100 Live Friday
- NatWest 2025 profit surges
- CEO gets £6.6m pay deal
- Retail footfall encouragement
Market update: NatWest weakens despite strong results, property firms fall
09:40 , Graeme EvansNatWest shares are set for a weekly drop of 10% after forecast-beating results failed to offset the negative reaction to Monday’s £2.7 billion Evelyn Partners deal.
The lender fell another 2.8p in this morning’s session to trade at the lowest level since November at 592.4p. They had been 694p earlier this month.
Highlights in today’s results included a fourth quarter profit well ahead of City hopes at £1.9 billion and a 51% hike in the total dividend for the year to 32.5p.
Robust guidance for 2026 was led by income in the range of £17.2-17.6 billion, up from 2025’s £16.4 billion. Return on Tangible Equity, which is a key industry measure, is set to be greater than 17% this year and 18% in 2028.
Richard Hunter, head of markets at Interactive Investor, described the numbers as sparkling as the lender continued the “relentless recovery” from its historic woes.
He added: “As far as investors are concerned, NatWest is in a sweet spot. The government shackles have gone, the group has prodigious amounts of cash and acquisitions to boost growth further are playing out.”
However, this week’s share price performance has been dented by the impact of the wealth management acquisition on City share buyback expectations.
Meanwhile, the FTSE 100 index steadied after yesterday afternoon’s US-inspired selling to stand 9.77 points higher at 10,412.21.
A week that featured fresh investor concerns over the disruptive impact of AI ended with LexisNexis owner Relx at the top of the FTSE 100 risers board.
The shares continued their recovery following annual results by adding 4% or 87p to 2139p, while financial data firm Experian put back 3% or 64p to 2472p.
Property firms were squeezed at the bottom of the FTSE 100 as Barratt Redrow slipped 9p to 384p, British Land fell 8.4p to 397.6p and Land Securities lost 12p to 642.5p.
FTSE 100 opens higher, NatWest shares steady
08:08 , Graeme EvansNatWest shares are broadly flat at 593p following the release of annual results.
Hargreaves Lansdown analyst Matt Britzman said: “NatWest delivered a reassuring set of results after a tough week for the shares.
“The results beat expectations across the board, with profits coming in 10% ahead.”
He said management’s 2026 outlook looks cautious rather than ambitious, “but that’s typical for NatWest and leaves room for upgrades as we move through the year”.
Shares have fallen sharply this week after NatWest’s £2.7 billion acquisition of Evelyn Partners was accompanied by a plan to pause share buybacks.
The FTSE 100 recovered after yesterday’s weakness to stand 34.05 points higher at 10,436.49.
Analytics and decision tools business Relx lifted 64p to 2116p and Rolls-Royce added 23p to 1249p at the top of the risers board.
Property firms came under pressure as Barratt Redrow lost 3% or 10.5p to 382.5p and British Land fell 10.4p to 395.6p.
Hopeful signs despite decline in retail footfall - BRC
07:59 , Graeme EvansShopper footfall rallied in January compared with the disappointing Christmas but remained down on a year earlier, British Retail Consortium (BRC) figures show.
The number of shopper visits across the UK fell 0.6% compared with last January, but this was an improvement on the 2.9% decline seen in December.
BRC chief executive Helen Dickinson said: “An uptick in consumer confidence and possible signs of a footfall recovery offer some cautious optimism for some spring-like green shoots.”
Special report: Is London’s property market in crisis?
07:52 , Graeme EvansBy every metric last year was a dismal one for the property market in the capital.
Average sale prices flatlined, according to Rightmove, and while some value-for-money locations did see growth, most central areas endured price falls.
London sellers are now the most likely in the country to get back less than they paid for their homes, according to Hamptons analysis of Land Registry sales prices.
NatWest unveils new targets, sharpens strategic focus
07:46 , Graeme EvansNatWest guidance for this year includes total income in the range of £17.2-17.6 billion.
This follows an increase of £1.8 billion to £16.4 billion in 2025, which was supported by deposit margin expansion as a result of higher customer balances and the impact of hedging against interest rate volatility.
Return on Tangible Equity, which is a key industry measure, is set to be greater than 17% this year and greater than 18% in 2028.
The figure rose significantly over last year and finished ahead of guidance at 19.2%. The City had expected a figure of 18.5%.
The bank continues to expect dividends of around 50% of attributable profit, alongside buybacks where appropriate.
Chief executive Paul Thwaite said: “Our progress has been significant, and it is clear our strategy is working for both our customers and our shareholders. But success today does not guarantee success tomorrow.
“Our sector is evolving at pace, with customer expectations increasing, technology redefining what 'best in class' looks like, and competition more intense than ever.
“Against this backdrop, we are sharpening our strategic focus around disciplined growth, leveraging simplification, and active balance sheet and risk management to drive sustainable value creation.”
NatWest boss gets £6.6m for 2025, bonus pool up 10.8%
07:30 , Graeme EvansNatWest chief executive Paul Thwaite has seen his remuneration package increase to £6.57 million after the lender delivered a strong performance in 2025.
The total, which is up from 2024’s £4.9 million, includes an annual bonus of £1.5 million. The award is split between cash and shares and is based on 85.18% of the maximum opportunity.
The full vesting of long-term incentives contributed £2.5 million to his overall figure. Thwaite’s base salary is due to increase by 3.25% to £1.22 million from April.
Meanwhile, the remuneration committee has agreed a 2025 bonus pool of £495 million, which is 10.8% higher than 2024’s level. The annual report also disclosed that 89 individuals received more than one million euros in the year.
NatWest boss hails strong year, dividend up 51%
07:14 , Graeme EvansNatWest boss Paul Thwaite today hailed “another strong year” for the lender after annual results showed a 24.4% rise in operating profit before tax to £7.7 billion.
All three of NatWest’s businesses of retail banking, private banking and wealth management and corporate and institutional delivered growth.
Fourth quarter profits of £1.9 billion fell 11% on the previous three months but still came in above City forecasts for a figure of £1.7 billion.
NatWest said it plans to pay a dividend of 23p a share, lifting the total for the year by 51% to 32.5p.
Thwaite said: “It is clear our strategy is working, and we are delivering consistently. We are raising our ambition and sharpening our strategic focus, with stretching new targets in place.”
Index steadies after US-led reverse, gold below $5000
06:59 , Graeme EvansUS markets last night closed sharply lower as fears over AI-led valuations returned.
The S&P 500 index lost 1.6% and the Nasdaq Composite shed 2%, while the Dow Jones Industrial Average finished 1.3% lower.
The selling continued in Asia trading hours as the Nikkei 225 fell 1.2%.
The FTSE 100 index peaked at 10,535.76 yesterday but eventually closed down 0.7% or 69.67 points at 10,402.44. It is seen opening slightly higher this morning.
Gold has steadied after yesterday’s sharp loss to stand at $4952 an ounce, while Brent Crude is steady at $67.46 a barrel.
