NatWest Group (NYSE:NWG) Announces Earnings Results

Key Points

• Q1 earnings beat: NatWest reported EPS of $0.48 versus a $0.44 consensus and first‑quarter profit rose around 12% year‑on‑year, although reported total income/revenue was slightly below Street expectations.
• Upgraded guidance and strong operational progress: Management now expects 2026 income at the top end of its £17.2–£17.6bn range while customer lending (+6.6% YoY), deposits (+2.6%), >£100m of Q1 cost savings and a 46.5% cost/income ratio were highlighted, with over 40% of code reportedly written by AI to speed product delivery.
• Provisions temper near‑term outlook but capital remains solid: The bank took an additional £140m of Q1 provisioning (including a one‑off Iran war provision) that could weigh on near‑term profits, yet CET1 capital stood at 14.3% and the Evelyn Partners acquisition is progressing toward a Q2 close.

NatWest Group (NYSE:NWG - Get Free Report) issued its quarterly earnings results on Friday. The company reported $0.48 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.04, Zacks reports. NatWest Group had a net margin of 18.59% and a return on equity of 13.05%. The company had revenue of $5.59 billion during the quarter, compared to the consensus estimate of $5.80 billion.

Here are the key takeaways from NatWest Group's conference call:

• Upgraded guidance and strong Q1 results: Income rose 6.9% to £4.2bn, EPS increased 15.5% to £0.179 and ROTE was 18.2%, and management now expects 2026 income at the top end of the £17.2–£17.6bn range (ex Evelyn Partners).
• Broad-based balance-sheet growth: Customer lending grew 6.6% YoY to £400bn, deposits rose 2.6% to £445bn, AUM increased 16.9% to £57bn, and client assets & liabilities exceeded £900bn, in line with the 2028 CAL target.
• Productivity and cost progress driven by tech: The group delivered over £100m of Q1 cost savings, lowered its cost/income ratio to 46.5%, and says over 40% of its code is now written by AI, enabling much faster product delivery.
• Macro-driven provisioning and impairment: Management now assumes Bank Rate at 3.75% for 2026 with higher inflation, and took an additional £140m provisioning charge in Q1 (impairment 26bps including scenario adjustments), reflecting prudence that may weigh on near-term profits.
• Strong capital and strategic M&A: CET1 was 14.3% with 65bps capital generation in Q1 and an expectation of ~200bps pre-distribution this year, while the Evelyn Partners acquisition is progressing toward a Q2 close (subject to regulatory approval).

NatWest Group Trading Down 3.2%

Shares of NWG stock opened at $15.41 on Friday. NatWest Group has a 12 month low of $12.76 and a 12 month high of $19.35. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.14. The business's 50 day moving average is $15.75 and its two-hundred day moving average is $16.33. The company has a market cap of $61.48 billion, a PE ratio of 8.19, a price-to-earnings-growth ratio of 0.86 and a beta of 0.95.

NatWest Group Announces Dividend

The business also recently declared a dividend, which will be paid on Tuesday, May 5th. Shareholders of record on Friday, March 20th will be issued a dividend of $0.621 per share. This represents a yield of 895.0%. The ex-dividend date is Friday, March 20th. NatWest Group's dividend payout ratio (DPR) is 64.36%.

Key Stories Impacting NatWest Group

Here are the key news stories impacting NatWest Group this week:

• Positive Sentiment: Profit and EPS beat — NatWest reported first‑quarter profit up ~12% year‑on‑year and posted an EPS beat (reported $0.48 vs. ~$0.44 consensus), showing underlying profitability and helping support valuation multiples. NatWest posts first quarter profit rise of 12%
• Positive Sentiment: Guidance upgraded — Management raised 2026 income guidance (saying income could reach the top end of its range) on loan growth and benefits from the structural hedge, which frames a constructive medium‑term revenue outlook. U.K. Bank NatWest Expects Income at Top End of Range
• Neutral Sentiment: Conference materials available — Management commentary, the earnings slide deck and the call recording are posted for investors wanting detail on drivers (loan volumes, cost control, and AI/productivity initiatives). Useful for modelling but not an immediate catalyst. Listen to Conference Call / View Slide Deck
• Negative Sentiment: Total income shortfall — Reported total income (c. £4.2bn) was ~2% below Street expectations, driven by a ~7% shortfall in non‑interest income, a material reason some analysts marked down near‑term upside. NatWest falls as income outlook raised but not as much as City analysts predicted
• Negative Sentiment: One‑off Iran war provision — The bank took a provision related to the Iran war, which dents headline earnings and adds uncertainty over potential future charges. That helped temper investor enthusiasm despite the profit beat. NatWest's first-quarter profit rises 12%, takes Iran war provision

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on NWG shares. Barclays reissued an "equal weight" rating on shares of NatWest Group in a report on Wednesday, January 7th. BNP Paribas Exane raised shares of NatWest Group from a "strong sell" rating to a "hold" rating in a research note on Friday, February 27th. Zacks Research lowered shares of NatWest Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Weiss Ratings reissued a "buy (b)" rating on shares of NatWest Group in a research report on Tuesday, April 21st. Finally, Keefe, Bruyette & Woods lowered shares of NatWest Group from a "moderate buy" rating to a "hold" rating in a research report on Monday, April 20th. One research analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold".

Institutional Investors Weigh In On NatWest Group

Several hedge funds and other institutional investors have recently modified their holdings of NWG. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of NatWest Group in the third quarter worth $16,650,000. Morgan Stanley lifted its position in NatWest Group by 10.0% in the fourth quarter. Morgan Stanley now owns 11,061,146 shares of the company's stock worth $193,570,000 after purchasing an additional 1,009,044 shares during the period. Citadel Advisors LLC lifted its position in NatWest Group by 150.7% in the third quarter. Citadel Advisors LLC now owns 1,612,872 shares of the company's stock worth $22,822,000 after purchasing an additional 969,546 shares during the period. Millennium Management LLC lifted its position in NatWest Group by 42.4% in the third quarter. Millennium Management LLC now owns 3,166,315 shares of the company's stock worth $44,803,000 after purchasing an additional 942,059 shares during the period. Finally, Qube Research & Technologies Ltd lifted its position in NatWest Group by 318.3% in the second quarter. Qube Research & Technologies Ltd now owns 970,769 shares of the company's stock worth $13,736,000 after purchasing an additional 738,671 shares during the period. Institutional investors and hedge funds own 1.27% of the company's stock.

NatWest Group Company Profile

NatWest Group plc is a major UK-based banking and financial services group headquartered in Edinburgh, Scotland. The company traces its roots to the Royal Bank of Scotland, founded in 1727, and adopted the NatWest Group name in 2020 as part of a strategic refocus on its NatWest brand. NatWest Group is listed on the London Stock Exchange and also has American depositary shares trading on the New York Stock Exchange under the symbol NWG.

The group provides a broad range of banking services across retail, private, commercial, corporate and institutional segments.

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