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- Tunisia votes with Saied set for re-election
- Too hot by day, Dubai's floodlit beaches are packed at night
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- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- US trade chief defends tariff hikes when paired with investment
- EU court blocks French ban on vegetable 'steak' labelling
- Meta AI turns pictures into videos with sound
- US dockworkers return to ports after three-day strike
- DR Congo to begin mpox vaccination campaign Saturday in east
- Meta must limit data use for targeted ads: EU court
- Oil extends gains, jobs report lifts Wall Street
- US hiring soars past expectations in sign of resilient market
- As EU targets Chinese cars, European rivals sputter
- Top EU court finds against FIFA in key transfer market ruling
- Oil extends gains, Hong Kong stocks resume rally
- 'A man provides': Ukrainian miners send families away as Russia advances
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- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
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- What next for OpenAI after $157 billion bonanza?
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- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
NatWest shares slump as bank earnings spook market
Shares in British bank NatWest tumbled nine percent Friday following an earnings update that added to concerns that borrowers would be unable to repay loans owing to soaring interest rates.
The group said it was setting aside £242 million ($279 million) in bad debt provisions, as the bank posted a 20-percent jump in revenue as rates rise on loans including mortgages.
It caps a week in which UK rivals Barclays, HSBC and Lloyds have also increased provisions for the same reason.
"At a time of increased economic uncertainty, we are acutely aware of the challenges that people, families and businesses are facing up and down the country," said chief executive Alison Rose.
"Although we are not yet seeing signs of heightened financial distress, we are very conscious of the growing concerns of our customers and we are closely monitoring any changes to their finances or behaviours," she added in the earnings release, which also revealed a big drop in net profits owing to other exceptional costs.
Shares in NatWest were down nine percent at 225 pence following the update, a much bigger loss than any other company trading on London's benchmark FTSE 100 index.
"There are similar themes... to the rest of the sector," noted Richard Hunter, head of markets at Interactive Investor.
"The bank has felt the need to take a conservative approach to the possibility of bad debts, even though at present there is little sign of customer behaviour switching towards default."
M.Anderson--CPN