NatWest Group Plc ADR (NWG)

Natwest Group PLC (NWG) dropped by 12.99% from $5.08 to $4.42 in the trading on Friday October 27, 2023. The reason why NWG stock down today include

• Third-quarter financial results. NatWest reported pre-tax profit of £1.33 billion ($1.61 billion) coming in roughly in-line with analyst estimates. Its net interest margin was 2.94%, 19 basis points lower than in the second quarter, it was mainly because of customers switching balances from non-interest bearing current accounts to interest-bearing savings accounts.
• Lower margin forecast: NatWest expects its net interest margin - a key measure of lending profitability - to come in just above 3% for the year, instead of a previously more optimistic 3.15% forecast as the wider banking industry grapples with a tough economic outlook, a higher risk of loan defaults in a cost of living crisis, and margin pressure from fiercer competition for savings and mortgage products.
• Potential breaches: Natwest faced regulatory scrutiny over potential breaches in its debanking of former Brexit party leader Nigel Farage. An initial review conducted by law firm Travers Smith had found serious failings, including in how the closure decision was reached, how the bank communicated with Farage and how it treated his confidential information.