NatWest reported fourth-quarter income of £4.3bn (£4.2bn expected), up 13% year-on-year. Net interest margin rose from 2.19% to 2.45%.
Operating profit rose 30% to £1.9bn (£1.7bn expected), supported by strong top-line growth and slightly lower costs. Impairments were better than expected, and default levels remain low.
The group’s CET1 ratio, a key measure of financial strength, was 14.0% at the period end (13-14% target range).
2026 guidance points to total income of £17.2-17.6bn (£17.5bn expected). The group is now targeting a CET1 ratio of around 13.0%.
Earlier in the week, NatWest announced the £2.7bn acquisition of wealth management group Evelyn Partners, alongside a £750mn buyback.
The shares were broadly flat 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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