NatWest Group shares rose on Friday after delivering strong H1 2025 results with profit for the period increasing 19.5% to £2.7 billion.

There’s a lot to like in today’s results.

Earnings per share rose 28% to 30.9 pence compared to the prior year, whilst Return on Tangible Equity hit 18.1%.

The bank has upgraded its 2025 income guidance, now expecting income excluding notable items to exceed £16.0 billion.

Cost management improved significantly, with the cost-to-income ratio (excluding litigation and conduct costs) falling to 48.8% from 55.5% in the previous year – a 6.7 percentage point improvement.

The interim dividend increased substantially to 9.5 pence per share, representing a 58% rise on the prior year. NatWest also announced plans for a £750 million share buyback programme to commence in H2 2025.

Investors will be encouraged by NatWest’s plans to boost shareholder returns in the future. The bank targets paying ordinary dividends of around 50% of attributable profit from 2025, with additional buybacks to be considered as appropriate.

For 2025, NatWest expects Return on Tangible Equity to exceed 16.5%, maintaining its trajectory of improved profitability and shareholder value creation.

NatWest shares rose a modest 1% on Friday, but the gains must be appreciated in the context of a general retreat for FTSE 100 shares on the session. If NatWest had released these results during one of the more positive trading sessions this week, the market reaction would likely have been stronger.

“NatWest has given investors reason to cheer heading into the weekend with a broad-based beat this morning,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“It’s a similar story to Lloyds yesterday, with better impairments doing most of the work to bring profits in a good clip above expectations. Unlike Lloyds, NatWest has taken the opportunity to raise its guidance, though this simply aligns management to where consensus is already sitting.

“The overarching story here is a positive one. Borrowers are looking strong, loans and deposits are growing, and costs are under control. That’s providing a strong base for the bank’s secret weapon, the structural hedge, to sit on top of. The hedge is expected to bring home an additional £1 billion of income this year alone, as 0% products are being reinvested at yields of around 3.7%. This is a multi-year tailwind that’s helping underpin a positive outlook for NatWest.”

Close Brothers Group has agreed to sell its execution services and securities business, Winterflood Securities, to Marex Group for approximately £103.9 million in cash.

The deal is expected to be completed in early 2026, subject to regulatory approval.

Close Brothers has been actively evaluating its portfolios to maximise returns and streamline its portfolio, and believes now is the right time to divest Winterflood.

The sale of Winterfloods will allow Close Brothers to focus on its core lending activities.

“Following a comprehensive strategic review, the Board is pleased to announce the sale of Winterflood to Marex,” said Mike Morgan, Close Brothers Group Chief Executive.

“This transaction marks another important step in simplifying the group to focus on our core specialist lending business, following the sale of CBAM in February 2025. We see Marex as an excellent steward for the business going forward, we thank the Winterflood team for their hard work and commitment over the years, and wish them every success in their next chapter with Marex.” 

GenIP has reported a robust first half of 2025, with cash balances rising to $1,077k from $972,000 at the end of 2024, driven by record new orders and disciplined cost management.

The artificial intelligence analytics services provider secured $488,000 in new orders during the six-month period, including significant contract wins in Asia and Saudi Arabia.

GenIP is focused on helping research organisations accelerate the commercialisation of their technological discoveries.

Since its AIM listing in October 2024, GenIP has received total orders worth $981,000, with an outstanding order book of $813,000 providing revenue visibility for the second half of the year.

The company recognises revenue as services are delivered, which explains the rising order book and cash balance, but fairly steady revenues.

Half-year revenue is expected to reach approximately $128,000, marginally ahead of the previous year’s full-year total of $123,000. The company noted that it expected revenues to pick up in the second half of the year as orders are delivered.

The firm said Invention Evaluator services generated the majority of first-half revenue and orders, whilst its Vortechs division is expected to contribute more significantly in the second half.

“We are extremely encouraged by the strong commercial traction we’ve achieved in such a short period since our IPO,” said Melissa Cruz, CEO of GenIP.

“The size and quality of our order book reflect the value our services bring to clients worldwide. We’re seeing increasing demand for our solutions as institutions seek faster, data-driven ways to unlock the value of their innovations. With a strong balance sheet and a growing pipeline of opportunities, we are well positioned to deliver accelerated growth in the second half of the year and beyond.”

IG has become the first platform globally to offer daily options on Tesla shares, introducing zero days to expiry (0DTE) contracts that provide traders with unprecedented flexibility for short-term positioning.

The innovative product, exclusive to IG and unavailable on any global exchange, including those in the United States, allows traders to trade the daily volatility in Tesla shares. The contracts settle at the US market close, enabling intraday risk management in a way that isn’t available anywhere else.

The launch addresses growing demand in the derivatives market, where daily options have gained significant traction. In the US, 0DTE index options now represent over 50% of total daily options volume, yet no provider has previously offered this structure for individual equities.

IG’s UK client base has demonstrated strong appetite for options trading, with activity increasing 27% year-on-year alongside a 9% rise in active options traders. The figures reflect broader market interest in sophisticated trading instruments that offer precise risk management capabilities.

Elliot Harris, Head of Options at IG, said: “We’re proud to be the first in the world to offer daily expiring Tesla options, giving our clients unmatched flexibility and speed. These contracts are a powerful new tool for short-term traders looking to capitalise on Tesla’s intraday price swings, which in recent times have been pretty dramatic.

“This is one of the fastest-growing areas in global trading, and we want to be at the forefront – driving innovation and giving our clients the tools they’re asking for. Daily Tesla options are just the beginning. We’re here to push boundaries and lead the way in delivering smarter, faster trading solutions.”

Available through spread betting and contracts for difference (CFDs) on IG’s platform and mobile application, the daily Tesla options will trade Monday through Thursday. Friday trading remains unavailable due to existing weekly options contracts on that day.

IG confirmed plans to extend daily options to additional major US equities in the near term, building on this pioneering launch in the individual stock options market.

The FTSE 100 soared to another intraday record high on Thursday as investors reacted to reports the US and EU were nearing a trade deal, and strong corporate results gave investors plenty of reason for cheer.

London’s leading index was 0.8% higher at 9,137 at the time of writing and was on the track for yet another all-time closing high.

Hot on the heels of a Japan-US trade deal, the EU appears to be the next in line for an agreement that would significantly alleviate investors’ concerns about 1 August tariff deadlines.

“European shares marched higher on Thursday as the positive sentiment generated by the trade deal agreed between the US and Japan continued to permeate the markets,” said AJ Bell investment director Russ Mould.

“The continued momentum came despite a mixed start to the big tech earnings season across the Atlantic as Alphabet and Tesla posted their numbers after hours, with some well-received corporate results helping support UK stocks as the FTSE 100 sailed through the 9,100 barrier.”

The corporate results mentioned by Mould were indeed very well-received.

Reckitt Benckiser soars

Reckitt Benckiser shares soared 9% on an upgrade to like for like sales growth guidance for their ‘Core Reckitt’ portfolio to ‘over 4%’ from ‘3% – 4%’. It’s the first piece of materially positive news Reckitt’s investors have had for some time.

“Kris Licht has donned his marigolds and got out the mop and bucket in an attempt to clean up the mess at consumer goods giant Reckitt. First-half results have got the market believing in his recovery plan,” Russ Mould said.

“Having recently announced the sale of its Essential Home portfolio, the company has now issued an eye-catching upgrade to revenue guidance for its core brands.

“The merits of focusing on its ‘Powerbrands’ is evident in the numbers with them delivering meaningful growth at a strong margin while the Essential Home component is finding life harder going.”

Howden Joinery

Howden Joinery was the FTSE 100’s top riser after reporting sales growth of 3.2% which represented an acceleration from the growth rate reported in the early stages of 2025.

“Howdens performed well in the first half, gaining further market share. The ongoing investment in our strategic initiatives is strengthening our competitive position, and our current trading performance gives us confidence in achieving our full year plans,” said Andrew Livingston, Howden’s CEO.

“We are well prepared for the second half, which includes our seasonally important peak trading period. This includes Howdens’ best-ever line-up for kitchens, available for 2025 in more colours, styles, and finishes to suit all budgets.”

Howdens shares were 9.8% higher at the time of writing.

BT shares rose 5% after the company reported improving Q1 results, punctuated by rising customer numbers.

Lloyds shares were little changed after reporting robust half-year results against the backdrop of a looming Supreme Court ruling on motor financing. The banking group enjoyed the impact of higher interest rates, with net interest margins increasing 10bps to 3.04%. Profit beat expectations but the nagging doubt of motor finance redress kept shares in check on Thursday.

“Lloyds’ 2Q 15% pre-tax profit beat on strong revenue momentum, deposit flow and provision reversals, could (together with reiterated guidance) drive modest consensus upgrades,” said Tomasz Noetzel, Senior Equity Analyst at Bloomberg Intelligence.

“However, narrowing the gap between consensus’ 12% ROTE in 2025 and the bank’s 13.5% view remains subject to a Supreme Court ruling on the UK motor loan probe due end-July and regulatory redress decisions. Lloyds didn’t set aside additional provisions for these loans in 1H, with consensus projecting £1 billion this year.”

Tekcapital has announced that its portfolio company Guident Corp has secured a new business agreement with Coastal Waste & Recycling Inc, a leading waste and recycling services provider operating across Florida, Georgia and South Carolina.

Today’s announcement strengthens Guident’s preparations for its NASDAQ IPO with another use case and additional customer.

The agreement will see Guident deploy its WatchBot™ solution across Coastal Waste & Recycling’s operations, providing autonomous patrols, AI-driven inspections and real-time safety alerts.

The WatchBot™ platform will handle thermal inspections, truck damage detection, PPE compliance monitoring and tank cage checks at Coastal Waste & Recycling facilities. The company expects the AI technology to deliver significant improvements in operational safety, risk mitigation and cost efficiency.

“This partnership exemplifies the remarkable teamwork between our organizations and demonstrates our shared commitment to safety and operational excellence. By combining our expertise with Coastal’s dedication to innovation, we’re setting a new benchmark for technology-driven safety in the waste and recycling industry,” said Harald Braun, Chairman & CEO of Guident.

“The collaboration between Guident and Coastal Waste & Recycling highlights the companies’ mutual focus on leveraging next-generation technology to drive meaningful improvements in workplace safety, operational efficiency, and overall business performance.”

Today’s Coastal Waste & Recycling deal adds to a growing list of deployments, which include a pilot autonomous shuttle service in West Palm Beach, covered by NBC News this week.

Tekcapital announced earlier this year that Guident had filed confidentially for a NASDAQ listing. Investors are eagerly awaiting further updates.

Lloyds shares were broadly flat on Thursday after the group reported profits that beat expectations but kept guidance unchanged.

Lloyds shares are up 40% year-to-date, and investors would have required an overwhelmingly strong set of half-year results to have the confidence to push shares higher.

The first half’s financial performance was steady, as opposed to a blowout, with Lloyds posting a statutory profit after tax of £2.5 billion, up from £2.4 billion in the same period last year.

The banking giant achieved a respectable return on tangible equity of 14.1%, underpinned by net income growth of 6% year-on-year.

“Lloyds is trotting along nicely as profits gallop past expectations. The reaction might be a little muted, though, given the lack of guidance upgrade off the back of a good set of numbers,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Impairments continue to be the fuel sustaining these profit beats as default rates remain low and borrowers continue to show resilience.

“Lloyds offers a blend of strong underlying performance and potential upside for those willing to take on some risk. It’s an important period, not just because of today’s results, but also because the Supreme Court is expected to make a judgment on the motor finance case soon.”

The looming motor financing decision may have contributed to Lloyds’ shares’ tepid reaction to otherwise strong results, with Lloyds shares down marginally at the time of writing.  

The group’s underlying net interest income rose 5% to £6.7 billion, driven by an improved banking net interest margin of 3.04% – up 10 basis points year-on-year. This was supported by higher average interest-earning banking assets of £458 billion.

However, profitability faced headwinds from rising costs and credit provisions. Operating costs increased 4% to £4.9 billion, reflecting inflationary pressures and strategic investments, though these were partially offset by cost savings measures. The group also recorded an underlying impairment charge of £442 million, up from £100 million in the same period a year ago.

Strong underlying performance provided Lloyds with the opportunity to hike the dividend and investors will be pleased to see the interim dividend increasing 15%.

Analysts point to the macroenvironment as the next big driver of Lloyds’ share price performance with the UK economy starting to show signs of stress.

“Our experts suggest that future results are strongly linked to the British economy, so if the British economy does well, Lloyds should do well,” said Max Harper, Analyst at Third Bridge.

“The Bank of England’s current stable interest rate policy is unlikely to significantly impact Lloyds’ dynamic hedging strategy, the primary risk for the bank is stagflation. A combination of a slowing economy and persistently high inflation would create a double-edged sword effect, simultaneously reducing appetite for new lending while interest rate hikes aimed at curbing inflation could turn the bank’s hedge into a source of financial loss.”