NatWest Group plc Q2 2026 Earnings Recap

NatWest’s shares rose 3.2% following results that showed better-than-expected income growth, driven by broad-based customer asset and liability expansion and strengthened margins, which underpinned an upgraded 2026 returns guidance.

Key Takeaways

• Income, excluding notable items, rose 5.4% in Q2 to £4.4 billion, supported by 15% growth in noninterest income (£124 million).
• Customer assets and liabilities grew 13.4% year-on-year, led by £9.7 billion broad-based loan growth and £2.8 billion deposit increase; assets under management rose notably due to the Evelyn Partners acquisition.
• Return on tangible equity improved to 21% in Q2, with full year guidance upgraded to above 19%.
• Operating leverage improved as income growth (8.9%) outpaced cost increase (4.5%), pushing the cost-to-income ratio down 2.8 percentage points to 46%.
• Credit quality remained strong with an impairment charge of £140 million (13bps), and unchanged guidance for a loan impairment rate below 25 basis points in 2026.