FTSE 100 Edges Higher as Pound Slips; NatWest Earnings Beat Expectations
British stocks opened slightly higher on Monday, while the pound weakened modestly against the U.S. dollar. Investors focused on earnings from NatWest Group, as major European indices traded mixed.
As of 08:03 GMT, the FTSE 100 rose 0.3%. Meanwhile, the pound dipped 0.02% against the dollar, with GBP/USD trading at 1.3616.
Across Europe, Germany’s DAX was flat, while France’s CAC 40 declined 0.3%.
NatWest Reports Strong Profit Growth and Raises Targets
NatWest Group reported a 24% rise in annual profit for 2025, beating market expectations and unveiling more ambitious medium-term targets.
The UK lender posted a pretax operating profit of £7.7 billion, up from £6.2 billion in 2024 and above the £7.5 billion consensus forecast.
In its strategic update, NatWest increased its return on tangible equity (RoTE) target to above 18% by 2028, compared with its previous guidance of over 15% by 2027. CEO Paul Thwaite said the bank is strengthening its strategic focus and setting more demanding financial goals.
The upbeat results placed NatWest shares in the spotlight, supporting sentiment in the UK banking sector.
UK Defense Plans and Support for Ukraine
In political developments, Prime Minister Keir Starmer is expected to propose a joint defense procurement initiative with Western allies during the Munich Security Conference. The plan aims to reduce rearmament costs through coordinated weapons purchasing and deeper cooperation among partner nations.
At the same time, the UK and its allies have pledged up to $35 billion in additional military aid to Ukraine. The funding is intended to strengthen Ukraine’s air defenses following renewed Russian strikes targeting energy infrastructure and civilian sites.
UK Defense Secretary John Healey announced the commitments after a coordination meeting in Brussels, as European nations continue to support Ukraine amid the ongoing conflict.
Officials emphasized that stronger collective action is necessary to maintain pressure and pursue stability in the region.
Overall, UK markets remain influenced by corporate earnings, currency movements, and broader geopolitical developments.
