NatWest Group (LSE:NWG) reported a strong start to 2026, with total income excluding notable items reaching £4.2 billion and operating profit rising to £2.0 billion, both ahead of the same period last year. Attributable profit came in at £1.4 billion, while earnings per share increased 15.5% to 17.9 pence. Return on Tangible Equity stood at 18.2%, reflecting robust capital generation and contributing to a higher tangible net asset value per share.
Balance Sheet Growth and Operational Improvements
The bank recorded broad-based expansion across its balance sheet, with net loans increasing by £7.2 billion and customer deposits rising by £3.1 billion. Growth was driven by mortgage lending and stronger commercial balances, partially offset by weaker market-driven valuations in asset management. Management highlighted over £100 million in additional cost savings and an improved cost-to-income ratio, alongside active management of risk-weighted assets. The CET1 capital ratio strengthened to 14.3%, and the bank upgraded its income guidance to the top end of its previous range, signalling confidence despite ongoing macroeconomic uncertainty.
Outlook and Market Considerations
NatWest’s outlook is supported by strong profitability, improved guidance, and ongoing capital returns, combined with an attractive valuation profile. However, these positives are partly offset by volatile cash flow trends, including in the most recent financial year, and softer short-term technical momentum.
More about NatWest Group
NatWest Group is one of the UK’s leading banking and financial services providers, serving around 20 million customers. Its operations span retail banking, private banking and wealth management, and commercial and institutional banking. The group offers a wide range of services including lending, deposits, and advisory solutions, with an increasing focus on digital banking and AI-driven capabilities within its core UK market.
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