NatWest Shares Slump 3.6% Following Q1 Income Miss and Conservative Outlook

NatWest Group PLC shares declined by 3.6% to 564p after reporting Q1 total income of £4.2 billion, missing market consensus by 2%. Despite the income miss, the bank achieved double-digit earnings growth, bolstered by revenue gains from deposit hedge repricing. However, financial pressure mounted as credit charges surged by 50% year-on-year, leading to higher provisioning. While management raised its forward-looking income guidance, the updated outlook failed to meet the more aggressive targets set by City analysts. This combination of rising credit costs and conservative guidance overshadowed the underlying growth in core earnings. Investors remain focused on the bank's ability to manage asset quality amid shifting dynamics in the UK banking sector.