NatWest Group PLC to finish off banking week with impairments in focus

PLC (), which changed its name from Royal Bank of Scotland earlier this year, will close off the week of FTSE 100 banking results as usual, with various trends set by its rivals.

NatWest took charges for loan impairments of almost £2.9bn in the second quarter, following impairments of £802mln in the first.

So, despite a strong performance from investment banking, this led to a £770mln loss for the first half of the year, with chief executive Alison Rose warning that the total charge for the year might be £3.5-4.5bn.

However, the most noticeable pattern elsewhere in the third quarter has been much lower new provisions for bad loans, which has allowed some to return to profitability.

While low interest rates continue to put pressure on income, all of the high street banks have been able to top-up their capital reserves.

While similar issues are certain to be in focus for NatWest, analysts at UBS said they expect attention to be paid to potential actions around Ulster Bank and NatWest Markets.

Also, the analysts pondered, investors will also wonder if any value should be attached to excess capital “in a market in which Brexit, COVID-19 and regulatory uncertainty are so pronounced”.

Glencore eyeing China

() will be laying out its production report on Friday, having in August said it won’t be paying dividends during 2020 and cutting full-year production guidance for nickel and coal.

“The outlook remains uncertain in the short term,” boss Ivan Glasenberg said in the last statement from the company.

Some analysts have come out as extremely bullish for the mining sector of late, with those at JPMorgan Cazenove especially bullish about a potential recovery driven by China, which could be driven by its new five-year plan.

Significant announcements expected on Friday October 30:

Trading updates: Glencore PLC (), NatWest Group PLC (Q3) (LON:NWB), (), AIB Group PLC (LON:AIBG)

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AGMs: Ferro-Alloy Resources PLC (), . (), (), PLC ()

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