NatWest Group H1 2026 Operating Performance
NatWest Group plc announced first‑half 2026 operating profit before tax of £4.3 billion, surpassing analyst expectations of roughly £4.0 billion and representing a 20% increase over the £3.6 billion recorded a year earlier.
The bank declared an interim dividend of 12 pence per share and indicated that it will now consider a share‑buyback with the full‑year 2026 results, advancing the original timeline by six months.
Financial Metrics
- Return on tangible equity (ROTE) for the half‑year was 19.7%, exceeding the target of above 19% for the year.
- Capital generation before distributions amounted to 137 basis points, measured without the impact of the Evelyn Partners acquisition.
- Earnings per share (EPS) rose 23.3% year‑over‑year to 38.1 pence.
- The bank projects a loan impairment rate below 25 basis points for the full year.
2026 Outlook (Including Evelyn Partners Acquisition)
- Total income (excluding notable items) is expected to be around £17.9 billion.
- Operating expenses (excluding litigation and conduct costs) are forecast at approximately £8.5 billion.
- Both income and expense figures incorporate an estimated £275‑£300 million impact from the Evelyn Partners deal.
- The bank maintains a CET1 ratio target of about 13.0% and aims to distribute dividends equal to roughly 50% of attributable profit.
2028 Strategic Targets
- Customer assets and liabilities are targeted to grow over 4% annually.
- Cost‑to‑income ratio is to stay below 45%.
- ROTE is targeted at above 18%.
- Capital generation before distributions is aimed at more than 200 basis points.
The market reacted positively, with NatWest shares gaining 2.54% following the release. This comprehensive performance update underscores NatWest’s stronger‑than‑expected profitability, accelerated capital return plans, and forward‑looking guidance that incorporates the strategic Evelyn Partners acquisition.