Second-quarter underlying income rose 11% to £4.4bn (£4.4bn expected). Net interest margin rose from 2.28% to 2.49% (2.51% expected).
Operating profit rose 29% to £2.3bn (£2.0bn expected), supported by strong income growth, good cost discipline and lower-than-expected impairments. Default levels remain low, and the loan book continues to perform well.
The group’s CET1 ratio, a key measure of financial strength, was 13.2% at the period end, broadly in line with its target of around 13%.
2026 guidance now points to total underlying income of around £17.9bn, including around £275mn from the recently completed Evelyn Partners acquisition. NatWest also raised its return target to more than 19% (19% expected) and plans to consider its next share buyback alongside full-year results, six months earlier than expected.
The shares rose 1.9% in early trading.
Our view
HL view to follow.
NatWest key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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