NatWest falls 4%, Standard Chartered jumps 8%, Royal Dutch Shell initiates Q1 dividend

Summary

  • Shares of NatWest fell a little more than 4 per cent on Thursday.
  • On the other hand, Standard Chartered jumped close to 8 per cent. 

It has been an eventful session for the London equities on Thursday, 29 April, with a bunch of heavyweight companies announcing the first quarter result for the financial year 2021. The benchmark FTSE 100 largely traded in a range bound manner, steered by the fluctuation in the share prices of blue-chip shares. The benchmark FTSE 100 pared the gains in the late afternoon deals but was still trading 0.44 per cent higher at 6,994.18.

 

NatWest Group Plc (LON: NWG)

Shares of NatWest Group crashed more than 4 per cent in the trade today after the Edinburgh-headquartered banking and insurance services major reported a year-on-year drop of £203 million, or 8 per cent, in the net income across the UK and RBSI retail and commercial businesses in the Q1 FY21 as compared to the income realised in the Q1 FY20.

 

  • According to the data available with the London Stock Exchange, the stock of NatWest shed 4.25 per cent to an intraday bottom of GBX 194.85 from the previous close of GBX 203.50.

 

  • Lower consumer spending and a subdued business activity in the January-March quarter substantially affected the net earnings.
  • The bank released a sum of £102 million, initially reserved for impairment, following the no default scenario mostly with commercial affiliates.
  • In the reporting quarter, NatWest recognised a profit before tax of £946 million, while the profit attributable to shareholders stood at £620 million.

 

Standard Chartered Plc (LON: STAN)

On the contrary, the shares of Standard Chartered rallied sharply after the London-based investment banking and financial services giant said the expected recovery to remain “volatile and uneven”. Further, the bank has reported a drop of 9 per cent in the quarterly income to $3.9 billion.

  • The stock of Standard Chartered advanced 7.98 per cent to GBX 533.20 from the previous close of GBX 493.80 apiece.

 

  • The bank has realised an 18 per cent growth in the profit before tax to $1.4 billion in the January-March quarter of 2021.
  • Surprisingly, the earnings per share (EPS) jumped by 8.1 cents or 32 per cent to 33.5 cents at the end of 31 March 2021.
  • The credit impairment allocation reduced by $936 million Y-o-Y and $354 million QoQ as the bank parked a sum of $20 million in Q1 2021.

 

Royal Dutch Shell Plc (LON: RDSA)

Shares of Royal Dutch Shell, the heavyweight oil and gas corporation, partially slipped in the late trades after registering a rise of nearly 3 per cent in the mid-morning deals. Investors seemingly gathered to accumulate the shares after the Netherlands-headquartered company announced an interim dividend for Q1 2021.

 

  • Following the development, the stock of Royal Dutch Shell rose 2.85 per cent to an intraday high of GBX 1,421.55 from the previous close of GBX 1,382.20 per share.

  • For the first quarter of 2021, the income attributable to shareholders stood at $5.7 billion following the net gain of $1.4 billion in sale of assets.
  • The corporation has decided to distribute an interim dividend of $0.1735 per share to all the shareholders of Class A and B.
  • Cash dividends for Class A and Class B shares will be paid in euros and pound sterling, respectively, however the shareholders can decide to receive either of the dividends in US dollars or pounds/euros.

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