British equities finished the week on a subdued note, with the FTSE 100 slipping 0.27% on Friday as investors digested corporate earnings and fresh deal activity.
NatWest Group (NWG.L) emerged as the standout performer on the blue-chip index, closing 3.22% higher after reporting growth in both attributable profit and total income for the six months ended June 30.
RBC Capital Markets noted that the bank did not announce a share buyback, which was in line with prior commentary, adding that management indicated buyback consideration would begin after the Evelyn transaction from FY26 results.
International Consolidated Airlines Group (IAG.L) moved in the opposite direction, closing down 1.53% after posting a lower profit for the first half of the year.
The airline holding company reported a year-over-year increase in total revenue but warned that capacity for full-year 2026 is expected to remain flat compared with the previous year.
RBC Capital Markets said it does not expect the second-quarter beat to translate into a full-year 2026 consensus upgrade, with the bank’s own estimate of EUR4.31 billion for EBIT pre-exceptionals sitting below the consensus figure of EUR4.52 billion.
RBC added that capacity guidance has been trimmed and that consensus is forecasting a roughly 13% operating margin for 2026, which sits within IAG’s guided range of 12% to 15%.
HSBC (HSBA.L) fell 0.69% by the session’s close after its HSBC Bank Australia subsidiary agreed to sell a portfolio of Australian home loans and personal loans with a total book value of AU$36 billion to Virgo BidCo, owned by funds managed by affiliates of Blackstone.
Completion of that transaction is expected to take place in the first half of 2027, adding a degree of near-term uncertainty around the disposal’s financial impact.
On the economic front, data from Nationwide Building Society showed that UK house prices grew at an annual rate of 1.8% in July, slowing from 2.2% recorded in June.
Nationwide Chief Economist Robert Gardner said: “Market activity and house prices have remained soft in recent months, in part reflecting the uncertain economic backdrop.”
Gardner added: “Geopolitical tensions remain high, with the conflict between Iran and the US again exerting upward pressure on energy prices and market interest rates in recent weeks.”
He also noted that financial market expectations for the future path of Bank Rate have been volatile, reflecting shifting views about the inflationary implications of events at home and abroad.
Geopolitical risk continued to weigh on sentiment globally, with concerns growing that the US-Iran conflict could escalate further after the latest round of attacks killed three Iranian soldiers.
The US Senate separately rejected a resolution that sought to limit President Donald Trump’s authority over military action against Iran, adding further uncertainty to the international outlook.