Britain's NatWest Bank reported slightly stronger than expected 1999 profits and a near doubling of its share buy-back programme yesterday as it put up the final barricade in its defence against two hostile takeover bids.
But it was not the knockout counter-blow NatWest may have hoped for, and its chances of surviving independently remain in the balance, analysts said.
NatWest said in its `Day 39' defence document, its last in the timetable governing the bids by Bank of Scotland and Royal Bank of Scotland, that its estimated 1999 profits rose 7.6 per cent to £2.305 billion sterling, above average expectations for a profit of around £2.28 billion.
It was near the top end of forecasts ranging from £2.214 billion to £2.350 billion. Estimated earnings per share rose 8.4 per cent to 98.9 pence from 91.2 pence the previous year, which was well above forecasts of around 88 pence.
NatWest's shares closed up 48p or 4.1 per cent at 1,228p, 5.8 per cent below the implied bids from the Scottish banks.
Analysts said the bigger buybacks were positive, but were unlikely to boost NatWest's survival chances significantly because previous UK bank buy-backs had generally failed to reignite flagging share prices.
They were also reluctant to applaud the 1999 results without a more detailed breakdown of the figures, which will not be available until next month. NatWest has discarded its chief executive and pledged to sell off non-core assets and return its surplus capital since Bank of Scotland launched its hostile bid in September.
