FTSE 100 movers: NatWest rallies on results; Rightmove retreats

(Sharecast News) - London's FTSE 100 was down 0.4% at 9,106.70 in afternoon trade on Friday. NatWest was the top performer on the index as it lifted its guidance for the year and announced a £750m share buyback. In the six months to 30 June, operating pre-tax profit rose 18% to £3.6bn, beating the £3.46bn average forecast by analysts.

The bank, reporting first results since its return to private ownership, lifted its dividend by 58% to 9.5p a share.

It now expects to achieve a return on tangible equity of 16.5%, from previous guidance of up to 16%. It also forecast annual income to be above £16bn, up from earlier guidance of £15.2bn - £15.7bn.

Lloyds, which issued results on Thursday, was also in the black.

Russ Mould, investment director at AJ Bell, said: "Unlike its peer Lloyds, which beat expectations but failed to lift guidance, NatWest has ticked both these boxes while announcing second-quarter numbers.

"A significant increase in the dividend and a further £750 million buyback gave shareholders further reason for cheer.

"Having returned to full private ownership the stabilisers are off for the group and management may now push hard on the pedals, with further acquisitions potentially on the horizon after the recent capture of Sainsbury's Bank - which has delivered a meaningful bump in customer numbers.

"The market will be wary of NatWest becoming too aggressive on this front given its history and the danger of unpicking progress in returning the bank into a profitable and cash generative operation.

"NatWest has focused on growing parts of the business less dependent on interest rates, including its wealth management arm, and to simplify the company's structure. It has also benefited from the Bank of England cutting rates more slowly than anticipated.

"The strong returns could come under scrutiny; with speculation the government is considering a raid on the banking sector to bolster strained public finances."

Property portal Rightmove fell as it posted a jump in first-half profit and revenue but warned of slower growth in the second half.

FTSE 100 - Risers

NATWEST GROUP (NWG) 513.60p 2.39% Ashtead Group (AHT) 5,134.00p 2.03% Entain (ENT) 999.00p 1.61% Smurfit Westrock (DI) (SWR) 3,605.00p 1.58% Lloyds Banking Group (LLOY) 78.90p 1.10% Mondi (MNDI) 1,189.50p 1.02% CRH (CDI) (CRH) 7,174.00p 0.90% The Sage Group (SGE) 1,257.50p 0.76% Beazley (BEZ) 894.50p 0.56% Scottish Mortgage Inv Trust (SMT) 1,077.50p 0.56%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 90.32p -2.88% Rightmove (RMV) 773.80p -2.67% London Stock Exchange Group (LSEG) 10,005.00p -2.34% St James's Place (STJ) 1,156.00p -2.20% Informa (INF) 863.60p -2.20% 3i Group (III) 4,175.00p -2.09% Schroders (SDR) 398.80p -1.87% Melrose Industries (MRO) 510.40p -1.85% Land Securities Group (LAND) 580.00p -1.61% Airtel Africa (AAF) 193.40p -1.53%