NatWest Group Plc is scaling back in US and European government bond markets, with people familiar saying the bank intends to stop primary dealing in those regions. They requested anonymity because the plans are private.
A spokesperson said the bank is "simplifying" how its markets business is structured and is "proposing to withdraw" from taking part as a primary dealer in the US and Europe. "The US and Europe remain important markets for NatWest, and these changes will allow us to focus resources on areas where we can deliver the greatest value for customers and support future growth," the spokesperson said.
One of the people added that NatWest will continue as a primary dealer in the UK and is steering the broader markets unit toward financing, advisory and hedging. As part of the shift, up to 10 roles are being cut.
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According to filings, second-quarter total income at NatWest Markets came to £436 million ($575 million), up 18% year on year. The bank said in July that choppy markets and lower client activity hurt fixed income during the period, which in turn dragged on the unit's overall income. Fixed income delivered £32 million in Q2, roughly 28% lower year over year, while currencies produced £157 million in the quarter, nearly five times the fixed income haul.
Filings show the markets unit had about 1,600 employees in December 2025, around 70% fewer than in 2019, when it employed roughly 5,000. The franchise has been in retreat since the Royal Bank of Scotland era: RBS reported operating profits of £3.7 billion for its global banking and markets business in 2007, before the UK government bailout the following year. In 2020, RBS rebranded to NatWest and pared back the markets division, with then CEO Alison Rose stating that risk-weighted assets at NatWest Markets were set to drop by nearly half to about £20 billion.
European government bonds have been on edge lately. Concerns over France's large budget deficit and uncertainty around next year's presidential election pushed investors out of French debt and into German paper, nearly doubling the spread between 10 year French and German yields in two months to a 15 year peak above 159 basis points last week. One person familiar with NatWest's plans said the move is not tied to the recent volatility.
For your money, the signal is straightforward: NatWest is concentrating where it thinks customer demand and returns are steadier, keeping its UK dealer role and leaning into financing, advisory and hedging, while trimming a small number of jobs.
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