Future Of British Business

NatWest Shares Crater as Lower Margin Signals Rate Boom End

  • Lender’s shares fall as much as 18% on third-quarter results
  • Bank says customers on the lookout for better savings rates
WATCH: NatWest lowered its margin guidance as customers shift into fixed-term accounts to take advantage of better rates. Tom Metcalf reports.Source: Bloomberg
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NatWest Group Plc’s shares plummeted after it cut its margin guidance, the latest UK lender to warn higher interest rates are stirring competition for deposits.

The bank reported a net interest margin of 2.94%, compared with 2.99% a year ago, and said the full-year figure was set to be above 3%, down from its previous expectations.