NatWest Group Plunges 5.55% Amid Windfall Tax Fears

On August 29, 2025, NatWest Group's stock experienced a significant drop of 5.55% in pre-market trading, reflecting a notable decline in investor sentiment.

The recent sell-off in NatWest Group's stock can be attributed to broader market trends and specific pressures faced by the banking sector. The FTSE 100 index has been under pressure, with banks experiencing a sell-off following calls for a windfall tax to raise billions of pounds. This tax proposal, aimed at the Bank of England's payouts, has raised concerns among investors about the potential impact on bank profits and dividends.

Additionally, a leading centre-left think tank in the UK has advocated for a levy on the £22 billion payouts from the Bank of England. This proposal has added to the uncertainty and pressure on UK banks, including NatWest Group, as investors weigh the potential financial implications of such a tax.