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Natwest share price rockets to 10-year high as investors eye bumper 2025 growth

2025-08-28 09:10:14 By

The share price of Natwest has soared to its highest point since February 2015 in early trading today, as investors show confidence in the bank's growth prospects for 2025.

The UK lender's stock has surged by 95 per cent over the past year, marking it as one of the FTSE 100's top performers, with no signs of momentum waning, as reported by City AM.

Last month, RBC analyst Benjamin Toms noted the bank's "attractive net interest income (NII) momentum" heading into 2025.

NII is the differential between the interest banks earn on loans and other assets and what they pay out on deposits, with higher rates typically bolstering this income by allowing banks to charge more for lending.

"The domestic banks have large structural hedges, and based on current rate expectations, we think the hedge roll benefit will more than offset the impact of rate cuts," Bank of America analysts stated.

They also suggested that "Additional upside may come from higher loan growth, particularly in commercial, given the government’s growth agenda."

"Natwest should be best-placed to take advantage of any UK growth" among UK banks, they continued, forecasting an annual four per cent increase in the bank's loan book.

The analysts underscored Natwest's leverage to UK economic expansion, especially in the corporate and commercial sectors, due to its status as Britain's largest commercial bank. Furthermore, last summer saw Natwest expand its market presence by acquiring Sainsbury’s Bank and the residential mortgage portfolio from Metro Bank.

Very Supportive

Professional Services

Pensions industry hopes Bell appointment could 'revive' auto-enrolment debate

2025-08-28 09:10:14

Industry leaders are hopeful that the appointment of Torsten Bell as pensions minister could reignite discussions about increasing the contribution rate for auto-enrolment pensions. Bell assumed the pensions brief on Wednesday following a mini-reshuffle triggered by Tulip Siddiq’s resignation as City minister, as reported by City AM. Emma Reynolds, his predecessor, has taken over Siddiq’s former role. Bell previously served as chief executive of the Resolution Foundation, a left-leaning think tank that has advocated for higher auto-enrolment contributions to fund domestic investment and enhance financial security for retirees. Auto-enrolment pensions were launched in 2012 to counteract the decline in workplace savings. The policy is widely regarded as successful. According to government data, UK employees saved £114.6bn towards their pensions in the decade following its introduction in 2012, a real terms increase of £32.9bn. At present, the minimum contribution for these pensions is divided, with employers contributing at least three per cent and the employee the remaining five per cent. However, in Ending Stagnation, a book co-authored by Bell during his tenure at the Resolution Foundation, he argued for an increase in contributions. "The next phase in its development should be a levelling up of the minimum contributions by both employers and employees to six percentage points (from three and five per cent respectively), representing a 50 per cent increase in total," he wrote. "A capped amount of these savings should be made available for everyday contingencies – tackling precarity for individuals as we underpin higher investment for the economy as a whole." stated an advocate for increased auto-enrolment rates in the pensions industry. This view supports that such changes will secure more adequate savings for future pensioners. "In the next five years, the majority of defined contribution pension savers will enter retirement with less income than they expect or need, and this will worsen to a peak in the early 2040s," warned Andy Briggs, chief executive of Phoenix Group, in his remarks to City AM. Briggs highlighted that increasing auto-enrolment contributions is critical, branding it the "single biggest lever" the government could utilise to rectify the impending pension shortfall. Despite pledges that pension adequacy would be reviewed during the second phase of its pension review, the Financial Times reported that Chancellor Rachel Reeves had postponed said review indefinitely. The cause for the postponement, as noted by media sources, was concern over imposing additional burdens on businesses following the Budget's pressures. Briggs optimistically noted that alterations could be executed "as economic conditions allow" and recommended a develop "roadmap" to guide businesses and households preparatively. Moreover, Lisa Picardo, Chief Business Officer UK at PensionBee, expressed hope that Bell's appointment might "revive necessary discussions" regarding auto-enrolment contributions. Zoe Alexander, director of policy & advocacy at the Pensions and Lifetime Savings Association, expressed her optimism about the appointment, stating it could lead to "progress on both phases of the Pensions Review". The initial phase of the pensions review has been centred around consolidating the UK’s fragmented pensions industry and encouraging schemes to invest in the domestic economy. The deadline for firms to respond to phase 1 was on Thursday. A Government spokesperson said: "Creating wealth and driving growth is at the heart of our Plan for Change. We are determined to ensure that tomorrow’s pensioners are supported, which is why the Government announced the landmark two-stage Pensions Review days after coming into office and why the Pension Schemes Bill was in the King’s Speech." They added: "Automatic Enrolment has turned millions of people into pension savers with around 9-in-10 eligible employees saving for their retirement."

Professional Services

IG Group boosts share buyback programme to £200m following Freetrade acquisition

2025-08-28 09:10:14

IG Group, the FTSE 250 firm, has announced plans to spend an additional £50m on share buybacks following its acquisition of trading app Freetrade. The company's six-month results up to 30 November revealed an extension of its previous share buyback programme from £150m to £200m, as reported by City AM. IG Group CEO Breon Corcoran stated: "It is pleasing to show how we can both invest in accretive growth and return capital at attractive equivalent rates of return on our buyback, all whilst safeguarding our robust balance sheet." The results showed a revenue increase of 11 per cent to £522.5m over the six months, with adjusted profit before tax rising 30 per cent from £205.7m to £266.8m. Despite IG Group's strong growth, analysts had mixed reactions to the results. Jefferies had predicted trading revenue would total £453m, but it only grew to £451.7m, although the analysts had forecast an adjusted profit before tax of only £242m. RBC, on the other hand, predicted a 12 per cent growth in revenue and a 40 per cent growth in earnings per share, compared to actual growth of 43 per cent. Corcoran added: "First half performance reflected more supportive market conditions, but we have work to do to grow active customers which will be necessary to deliver sustainably stronger growth," Last week, IG Group acquired stock trading app Freetrade for £160m, with the firm set to move to IG Group in mid-2025. The direct-to-consumer trading platform, which burst onto the scene in 2018, provides investors with commission-free options for shares, ETFs, and gilts. The announcement of its sale received mixed responses from investors, some of whom were vexed by a sale price that didn't match up to recent fundraising valuations. "CEO Breon Corcoran has re-energised the investment case for IG Group setting out the opportunity and identifying areas of improvement," remarked RBC analyst Ben Bathurst. On the positive side, IG Group's stock has seen a notable surge, climbing 25 per cent over the past half-year.

Professional Services

West Midlands Lloyds and Halifax branches to close

2025-08-28 09:10:14

A host of Lloyds and Halifax branches across Birmingham and the West Midlands have been tabled for closure over the coming months. The group is among 136 which the banking group has confirmed will be shut down. The first to close will be Lloyds and Halifax branches in High Street, Bromsgrove, at the end of May. They will be followed by Halifax, in Erdington's High Street in September, and Lloyds in Vicar Street, Kidderminster, just a few weeks later. Lloyds branches in Foleshill Road, Coventry, and High Street, Shipston-on-Stour, will both close in the first half of November and finally Halifax in Bearwood Road, Smethwick, will cease trading in March next year. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Across the wider region there are branches in Staffordshire, Shropshire and the East Midlands also earmarked for closure. In total, 61 Lloyds, 61 Halifax and 14 Bank of Scotland branches will shut their doors for good between May and March 2026. The closures come weeks after Lloyds Banking Group said it would allow customers of Lloyds, Halifax and Bank of Scotland to use stores across any of its brands for in-person banking. The group has blamed the move on customers shifting away from banking in person to using mobile services but stressed it would offer affected workers roles elsewhere in the company. A statement said: "Over 20 million customers are using our apps for on-demand access to their money and customers have more choice and flexibility than ever for their day-to-day banking. "Alongside our apps, customers can also use telephone banking, visit a community banker or use any Halifax, Lloyds or Bank of Scotland branch, giving access to many more branches. "Customers can also do their everyday banking at over 11,000 branches of the Post Office or in a banking hub." The announcement means that more than 1,700 bank branches have shut or announced their intention to close since February 2022 when a voluntary agreement saw the major banking groups commit to assessing the impact of every closure. This has included both Lloyds and Halifax branches in Birmingham city centre and elsewhere across the region. It works out at an average of around 50 closures announced per month, with around 289 branches expected to shut this year.

Professional Services

Saga anticipates higher profits and strong travel growth, plans to refinance £325m debt

2025-08-28 09:10:14

Saga, the over-50s financial services and travel provider, has announced that it anticipates reporting an underlying profit before tax higher than previous forecasts. In a recent trading update, the company predicted that the underlying profit before tax for the last six months of 2024 would be slightly higher than the previous year, as reported by City AM. Saga's travel division is expected to report an underlying profit before tax "in the high single-digit millions", compared to the £1.5m reported in the prior year, indicating revenue growth of 15 per cent and passenger growth of nine per cent. Over the past six months, Ocean Cruise achieved a load factor of 91 per cent, three per cent ahead of the previous year, while River Cruise reported a load factor of 89 per cent, with combined ticket prices and onboard revenue per passenger amounting to £327, a total increase of 15 per cent from last year. "We continued to generate strong demand for both our cruise and travel businesses," stated Saga CEO Mike Hazell. Last month, Saga announced a 20-year partnership with Belgian insurance giant Ageas for motor and home insurance, which will see Saga’s price-comparison website, pricing, claims and customer service activities taken over by the insurer. However, earlier this week, City broker Peel Hunt downgraded Saga’s stock rating, noting that the firm faced "a refinancing hurdle" this year. The funds from the partnership with Ageas will be utilised by the firm to refinance £325m of outstanding debt by spring this year. Following the deal, Peel Hunt reduced its price target for the stock to 120p. Since the beginning of 2025, Saga’s shares have declined by over nine per cent. Looking forward, Saga reported that both Ocean Cruise and River Cruise's booked load factors are surpassing last year's figures. The company's River Cruise division is scheduled to launch a new ship, the Spirit of the Moselle, in July 2025, which will boost capacity. Currently, the booked revenue for travel stands at £126m, marking a 10 per cent increase compared to the same period last year, with 39,000 passengers booked in, an 11 per cent rise from the previous year.

Professional Services

Bank of London appoints former Credit Suisse UK boss Christopher Horne as new CEO

2025-08-28 09:10:14

The Bank of London, a fintech 'unicorn' facing challenges, has today appointed the former UK head of Credit Suisse, Christopher Horne, as its new CEO. This move comes as the bank seeks to recover from a series of setbacks and the abrupt departure of its founder last year, as reported by City AM. The digital clearing bank announced that Horne, who previously led the unsuccessful Swiss lender's UK subsidiaries, would assume the role of CEO pending approval from the City regulator. "This is a unique opportunity to redefine what a bank can be — resilient, innovative, and aligned with the evolving needs of our clients and stakeholders," said Horne in a statement. "Together with the talented team at [Bank of London], I look forward to building a future that inspires trust and delivers lasting value." The Bank of London stated that Horne's appointment "highlights the bank’s commitment to innovation, governance, and long-term growth", adding that he would steer the company "into its next phase of growth and transformation". This recruitment marks the latest in a series of remedial actions taken by the firm after it was thrown into chaos last year following the exit of founder Anthony Watson. Days after Watson’s departure, City AM disclosed that the company had been served with a winding-up petition from HMRC over an unpaid tax bill, which it later settled. Shortly thereafter, investor Mangrove Capital spearheaded a £42m capital injection into the bank. Mangrove has since spearheaded a turnaround effort, appointing several new members to its board. High-profile figures including Peter Mandelson and Carlyle Group CEO, Harvey Schwarz, exited the board in October. Catherine Brown, chair of the firm’s UK Board, commented on Horne’s appointment today, stating it "reflects our commitment to building a leadership team that embodies excellence and vision". She added: "His wealth of experience will be instrumental in driving operational excellence and positioning the bank as a leader in the financial services sector."

Professional Services

Bank of England's Carolyn Wilkins highlights market discipline amid UK bond turmoil

2025-08-28 09:10:14

The recent upheaval in the UK's bond market is a clear indication that the "dragons of market discipline are alive and well," according to a statement made today by Carolyn Wilkins, an external member of the Bank of England's financial policy committee (FPC). Speaking at Fitch Ratings, she acknowledged the recent instability in the gilt market, as reported by City AM. "Recently we’ve seen orderly movements in global yields as one would expect given news that markets consider relevant to the global outlook." She further noted, "There have been spikes in yields in a number of individual countries in recent years, including the UK, that indicate the dragons of market discipline are alive and well," The UK government bonds experienced a significant sell-off, largely driven by the anticipation that US interest rates would remain high for a longer period due to persistent inflation. The yield on the 10-year gilt reached 4.93 per cent, its highest level since the financial crisis. Gilt yields are closely linked to movements in the US Treasury market. Although yields have almost entirely recovered following soft economic data, the FPC remains concerned about the high levels of public debt, both in the UK and globally. "The FPC that I sit on is of the view that global sovereign debt risks are material," Wilkins stated, adding that global public debt is likely to approach 100 per cent of GDP by the end of the decade. Concerns are intensifying among market participants about the sustainability of public debt externally, which could affect the internal cost of debt servicing for the UK government, as well as for households and businesses, an expert emphasized. In recent times, a slew of commentators have sounded the alarm on the rising debt in advanced economies. Significantly, the Congressional Budget Office in the United States highlighted an alarming trend on Friday, stating that US government debt is likely to exceed its post-World War II record, a projection that's yet to account for the impact of the tax cuts introduced by Donald Trump. "The fiscal situation is daunting, the debt trajectory is unsustainable," remarked Phillip Swagel, director of the CBO, after the office published its report.

Professional Services

Jobs saved as Horizon Works Marketing assets acquired

2025-08-28 09:10:14

Jobs have been saved at an established North East marketing agency following its administration. Horizon Works Marketing, which had operated from a base in Cramlington, called in administrators following challenges stemming from the Covid pandemic. The firm's founder says it is now looking positively to 2025 after a new company has been established to continue trading under the Horizon Works name, with 10 jobs secured in the process. Insolvency experts at KBL Advisory were appointed to Horizon Works late last year. Founder and managing director Samantha Vassallo acquired the assets of Horizonworks Marketing Limited and has established Horizon Works Limited. The business, which is now based out of the Blyth Workspace building at the Port of Blyth, was originally set up in 2010 and has established a specialism in business to business marketing services for innovation and technology-led manufacturing and engineering businesses. Its team of marketers, writers, designers, digital experts and PR and communications specialists provide a range of services including strategy creation, marketing campaigns, SEO, brand development, media relations and digital development. In the 15 years since its inception, Horizon Works has carried out work for a variety of clients across the automotive, process, engineering, energy and technology sectors - many of them North East-based and others further afield. It is also an affiliate partner of several sector-based groups such as the Engineering and Manufacturing Network, a Fit for Defence partner of Make UK Defence, and is a member of the North East Automotive Alliance (NEAA), NOF and the Entrepreneurs’ Forum. Samantha Vassallo, managing director of Horizon Works, said: "The restructure was necessary due to legacy financial pressure resulting from the Covid-19 pandemic. All jobs have been safeguarded and the specialist team that Horizon Works has built up over 15 years remains in place.

Professional Services

Bank of England to slash rates much faster than markets expect, Goldman Sachs says

2025-08-28 09:10:14

Goldman Sachs has posited that markets are significantly underestimating the likelihood of the Bank of England accelerating interest rate cuts. Traders currently foresee only two reductions this year, with an additional cut expected in 2026, which would bring the benchmark Bank Rate down to 4.0 percent from its present 4.75 percent, as reported by City AM. Despite concerns over persistent inflationary pressures within the UK economy and predictions of a headline rate surge to above three percent by spring, recent figures indicate private sector pay growth soared to 6.0 percent in the three months leading up to November, surpassing forecasts. The US investment bank acknowledged the "uncomfortably high" price pressures but noted "several indications" that the medium-term inflation outlook is easing. Citing factors such as a significant downturn in growth, a likely deceleration in household real disposable income, and the potential impact of escalating trade tensions, analysts including Sven Jari Stehn anticipate a modest 0.9 percent economic expansion for the UK in 2025, lagging behind the consensus estimate of 1.3 percent. Analysts also highlighted "notable signs of underlying cooling" in the labour market from various business surveys and recent unemployment data, suggesting this could help moderate wage increases. "We are sceptical that Bank Rate can stay above four per cent persistently – as priced by financial markets – without materially weakening the economy and thus inflation," they said. Goldman Sachs predicts a drop in interest rates to 3.25 per cent by mid-2026. "While it is possible that the BoE will slow the pace of cuts if underlying inflation fails to make progress, we believe that a step-up to a sequential pace of cuts in response to weaker demand is actually more likely," they argued. Investors are anticipating another rate cut from the Bank in February due to growing concerns about the economic outlook.

Professional Services

Rathbones outflows slow as Investec merger moves forward

2025-08-28 09:10:14

Rathbones has successfully stemmed the tide of outflows that ensued following its merger with Investec’s wealth division. In a trading update released today, the wealth management firm revealed that investors withdrew £200m from its platform in the last quarter of the year, a decrease from £600m in the previous quarter, as reported by City AM. Despite witnessing "particularly strong discretionary inflows", the asset manager noted that a temporary surge in withdrawals around the Autumn Budget resulted in net negative outflows. The company's discretionary and managed propositions saw an increase in inflows to £400m, up from £100m between July and September 2024. However, as the transition into Rathbones continued, cash kept flowing out from the Investec Wealth & Investment business (IW&I), with outflows rising from £300m in the previous quarter to £400m. In 2023, Investec announced that its wealth and management division would merge with Rathbones in an £839m deal. "The integration of IW&I continues to proceed well, and we have made substantial progress in the integration process, in line with our expectations," the firm stated today. "The client consent process is well-progressed with very encouraging responses, and we continue to anticipate completing the client migration onto a single operating platform during the first half of 2025." Over the past year, investors have withdrawn over £1bn from IW&I, offsetting the £415m that flowed into Rathbones’ investment management arm and £606m into its asset management arm. At the close of the year, the firm reported funds under management standing at £109.2bn, an increase from £108.8bn at the end of September and £105.3bn at the end of 2023. However, this was slightly below the anticipated £110bn closing funds under management projected by analysts. The company's share price has struggled to make significant gains in recent months, trading down four per cent from a year ago. "Rathbones’ shares have weakened like others in the sector in recent months, reflecting the generally weak sentiment towards asset-gathering stocks given the uncertainty that has prevailed," commented analysts at Peel Hunt. The firm outlined its priorities for 2025, stating: "Our priorities for 2025 include completing the migration of IW&I clients whilst adding marketing and distribution capability to support organic growth opportunities, both directly and in tandem with third-party IFAs."

Professional Services

First North West deal for European investor Crossbay as it acquires Greater Manchester warehouses

2025-08-28 09:10:14

A £1.26bn European logistics investor has made its first North West acquisition. Crossbay, the pan-European urban logistics platform of private equity real estate manager MARK, bought an industrial investment on Irlam Business Park near Manchester for more than £11m from Buccleuch Property. The two warehouses, totalling 83,923 sq ft, sit between Junction 11 of the M60 and Junction 20 of the M6 in Irlam. They are let to two tenants with an average unexpired lease term of more than 11 years. In December, MARK announced its Crossbay II fund had secured €660m (£556m) in total fund commitments, representing a 20% increase in fund size compared to its predecessor. Including debt financing, Crossbay II has a total investment capacity of over €1.5bn (£1.26bn). Crossbay plans to grow in the UK, and its Irlam deal follows two recent industrial acquisitions in Yorkshire Knight Frank advised Crossbay on the acquisition, while Zaman Roberts advised Buccleuch Property. Craig Barton from Knight Frank said: “These two modern units let to quality tenants, within the prime industrial location of Irlam, west of Manchester provide high specification accommodation with superb motorway access. With continued robust occupational dynamics across the NW, we anticipate strong underlying performance. “This was an important acquisition for Crossbay and a sign of their belief in the strength of the North West logistics market. They are keen to expand further and we would be interested to hear of any further opportunities.” Adam Roberts from Zaman Roberts said: "Having advised Buccleuch Property on the purchase in 2016, our client successfully executed their business plan and we are now pleased to have completed the sale to Crossbay.”