NatWest shares plunge after bank downgrades profit outlook

Competition for savers' cash is putting pressure on its finances, says group

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NatWest has downgraded its profitability outlook and warned that competition for savers' cash is putting pressure on its finances, sending its shares plunging.

Investors were spooked by a predicted drop in the bank's net interest margin (NIM), which accounts for the difference between what is charged for mortgages and paid on savings and is a key measure of banks' profitability.