Aquis Weekly Movers: Watchstone Plans Share Buyback and Cash Return

Watchstone Group plans to return £850,000 to shareholders, equivalent to 1.85p/share, after gaining approval for the reduction of the share premium account by £1m. IntelliAM AI appointed James Gayton as vice president of sales. Phoenix Digital Assets director Jonathan Hives sold 250,000 shares. Coinsilium raised £5m from a placing and retail offer, but the share price slumped 60.6% to 6.5p. Wishbone Gold's drilling at the Red Setter Gold Dome project commenced, while The Smarter Web Company reported a loss of £720,000 in six months. Vaultz Capital added a further 20 Bitcoin and recently appointed director Sarah Gow bought shares. Ormonde Mining issued five million shares to AIM-quoted cybersecurity company Shearwater Group. Amazing AI chief executive Paul Mathieson bought shares, while NYCE International generated revenues of £104,000 in Q2 2025. Arbuthnot Banking reported a slump in pre-tax profit, but raised the interim dividend by 10% to 22p/share.

In a significant move to reinforce shareholder value and optimize capital efficiency, NatWest Group has announced a £750 million share buyback program, following its privatization in May 2025. This initiative, part of a broader capital return strategy, is aimed at maximizing shareholder returns and aligning with the bank's post-privatization focus on value creation [1].

The share buyback, coupled with a 58% increase in its interim dividend to 9.5p per share, underscores NatWest's commitment to disciplined capital allocation. The bank aims to reduce its share count, which, assuming current profitability trends continue, should lead to a measurable accretion in earnings per share (EPS) [1]. This dual approach of dividends and buybacks caters to different investor preferences, reinforcing the bank's commitment to long-term value creation.

NatWest's strong first-half 2025 results provide a solid foundation for this strategy. The bank reported a 28% year-on-year increase in EPS to 30.9p, while its Return on Tangible Equity (RoTE) reached 18.1%. Additionally, the bank improved its cost:income ratio by 6.7 percentage points to 48.8%, driven by AI-driven digitization and cost-cutting initiatives [1].

The buyback is supported by a robust capital position. NatWest's Common Equity Tier 1 (CET1) ratio stands at 13.6%, well within the targeted range of 13-14%, ensuring compliance with regulatory requirements and flexibility for future growth [1]. This strong capital position allows the bank to execute the buyback without compromising its ability to invest in high-return initiatives or maintain regulatory compliance.

For long-term investors, the buyback presents a compelling opportunity. The bank's strong RoTE of 18.1% and CET1 buffer of 13.6% indicate a robust capacity to generate returns while adhering to regulatory requirements. The buyback's focus on reducing share count and enhancing EPS aligns with value-investing principles, particularly in a sector where asset quality and capital efficiency are paramount [1].

The timing of the buyback in the second half of 2025 allows NatWest to capitalize on its strong first-half performance while maintaining flexibility for the remainder of the year. The bank has also upgraded its full-year guidance, expecting to deliver a return on tangible equity of more than 16.5% and income excluding notable items of more than £16 billion in 2025 [1].

NatWest's strategic use of technology to enhance productivity further supports its position. The bank's collaborations with OpenAI, AWS, and Accenture to enhance customer experience and operational efficiency demonstrate its commitment to innovation [1].

In conclusion, NatWest Group's £750 million share buyback is more than a one-off capital return—it is a strategic move to reinforce shareholder value and optimize capital efficiency in a post-government-ownership landscape. The buyback, combined with the bank's focus on digital transformation and operational efficiency, positions NatWest to deliver sustainable returns while maintaining a resilient balance sheet.

References:
[1] https://www.ainvest.com/news/natwest-strategic-share-buyback-post-privatization-playbook-shareholder-2507/