NatWest Launches Share Buyback After 24% Profit Surge, Cuts 32 Branches

London, 16 February 2026 – NatWest Group PLC (NWG.L) commenced a share‑buyback programme on 15 February 2026, following the release of its full‑year financial results that exceeded analyst expectations. The bank reported a pretax profit of £7.7 billion for 2025, a 24 % increase year‑on‑year, and a net profit of £5.479 billion (approximately €6.295 million), marking a 21.2 % rise in earnings.

The buyback, announced at the same time as the quarterly earnings release, is part of the group’s strategy to return value to shareholders while maintaining adequate capital for future growth. Details of the buyback amount and schedule have not yet been disclosed, but the move follows a broader trend among UK banks to reinforce balance sheets in a volatile economic environment.

Earnings Performance

NatWest’s 2025 results surpassed consensus forecasts, contributing to a stronger earnings outlook for the upcoming year. The bank highlighted that its wealth‑management segment, which has been a focus of recent investment, is expected to generate significant returns as the UK market for high‑net‑worth services expands.

Branch Network Reductions

Concurrent with the announcement, NatWest confirmed the closure of 32 bank branches across the United Kingdom in 2026. The closures include locations in the North East, Essex, and other regions where digital banking uptake has led to reduced footfall. The branch shutdowns are part of a broader restructuring effort to align physical assets with shifting customer behaviour and to reduce operating costs.

Fossil Fuel Lending Policy Update

In a related development, NatWest softened its fossil‑fuel lending guidelines, signalling a more flexible approach to financing within the sector. The policy change coincided with the release of the bank’s full‑year results and reflects a balancing act between environmental considerations and commercial risk management.

Market Reaction

Following the announcement, NatWest’s share price on the London Stock Exchange closed at £580.20 on 12 February 2026, within a range that has seen the stock trade between a 52‑week low of £380.60 (6 April 2025) and a high of £705.40 (3 February 2026). The price‑earnings ratio remains at 9, indicating a valuation that is considered modest relative to peer banks.

Summary

NatWest Group PLC’s 2025 performance, coupled with the initiation of a share buyback and the planned closure of 32 branches, underscores the bank’s focus on profitability, shareholder returns, and operational efficiency. The company continues to adapt its strategy in response to market dynamics and regulatory shifts, positioning itself for sustained growth in the UK financial sector.