In key news on UK stocks, NatWest Group (GB:NWG) will exit Poland by the end of 2025, impacting around 1,600 jobs in the country, Reuters reported. This is part of the bank’s move to revamp its operations as it consolidates its overall financial crime operations into the two remaining centers in Britain and India. Of the planned layoffs of the entire Polish workforce, 45% will be permanently eliminated, while the remaining 55% will be relocated to the UK and India.
Following the news, NatWest shares gained 0.74% in yesterday’s trading session. Year-to-date, the stock has gained over 40%.
NatWest is among the top four banks in the UK, catering to 19 million customers worldwide.
NatWest’s Decision to Exit Poland
Natwest’s decision to exit Poland came after a broader evaluation of the bank’s operations in the country, which included financial crime, technology, finance, and risk departments. The job cuts will occur in two phases: approximately 33% of the workforce will leave within three months, with the remaining positions scheduled to be eliminated by the end of next year.
A company spokesperson stated that the completion of a particular financial crime project has resulted in no remaining work for the employees.
The decision aligns with NatWest’s CEO Paul Thwaite’s objective to restructure and streamline the bank’s operations. Since assuming the role permanently in February 2024, Thwaite has prioritized simplifying the group through management changes and eliminating unnecessary complexity.
In its Q1 2024 results, Natwest reported a total income of £3.47 billion, surpassing estimates of £3.43 billion. Additionally, the bank confirmed its full-year outlook.
Are NatWest Shares a Buy?
According to TipRanks, the NWG stock has a Moderate Buy consensus rating based on seven Buys and four Holds. The NatWest share price forecast is 340p, which is 8.7% higher than the current level.
