NatWest Group (NYSE:NWG) Announces Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• NatWest beat earnings expectations: Second-quarter EPS was $0.54, ahead of the $0.47 consensus, while first-half attributable profit rose 22% to about £3 billion.
• Management upgraded 2026 guidance to approximately £17.9 billion in income, return on tangible equity above 19%, and capital generation before distributions above 240 basis points. The bank also brought forward additional share buybacks.
• Operating performance remained strong, with income growth outpacing costs and credit quality holding up, though net interest margins are expected to flatten in the second half due to lending mix and mortgage-pricing pressures.

NatWest Group (NYSE:NWG - Get Free Report) posted its quarterly earnings results on Friday. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.47 by $0.07, Zacks reports. NatWest Group had a net margin of 19.11% and a return on equity of 13.30%.

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

• 2026 guidance was upgraded: NatWest now expects income of around £17.9 billion, a return on tangible equity above 19%, and capital generation before distributions above 240 basis points.
• H1 performance showed strong operating leverage, with income up 8.9% versus 4.5% cost growth; the cost-income ratio improved to 46%, while Q2 operating profit rose 12.4% to £2.3 billion.
• Customer assets and liabilities excluding Evelyn Partners grew 5.2%, supported by broad-based lending growth and strong wealth inflows; the Evelyn acquisition added £71.7 billion of assets under management and administration.
• The company said credit quality remains strong, with a Q2 loan impairment rate of 13 basis points and expectations for the full-year rate to remain below 25 basis points.
• NatWest expects a flatter net interest margin trajectory in the second half as lending mix and mortgage pricing weigh on margins, although balance growth and structural-hedge income are expected to support higher net interest income.

NatWest Group Stock Up 2.2%

Shares of NYSE NWG traded up $0.41 during trading on Friday, reaching $18.94. 5,716,246 shares of the stock were exchanged, compared to its average volume of 4,149,969. The business's 50-day moving average price is $17.10 and its 200 day moving average price is $16.55. NatWest Group has a twelve month low of $13.49 and a twelve 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 0.15. The company has a market capitalization of $75.47 billion, a price-to-earnings ratio of 10.07, a price-to-earnings-growth ratio of 0.91 and a beta of 0.92.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. BNP Paribas Exane raised shares of NatWest Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 11th. Keefe, Bruyette & Woods raised shares of NatWest Group from a "hold" rating to a "moderate buy" rating in a research report on Friday, July 17th. Berenberg Bank initiated coverage on NatWest Group in a report on Wednesday, June 24th. They issued a "buy" rating for the company. Zacks Research lowered NatWest Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Finally, Wall Street Zen cut NatWest Group from a "buy" rating to a "hold" rating in a research note on Saturday, June 27th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, NatWest Group currently has an average rating of "Moderate Buy".

NatWest Group News Summary

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

• Positive Sentiment: Profit and earnings beat expectations: NatWest reported second-quarter EPS of $0.54, exceeding the $0.47 consensus estimate. First-half attributable profit rose 22% to approximately £3 billion, while operating profit before tax increased 20.4% to £4.3 billion. NatWest earnings results
• Positive Sentiment: Guidance upgraded: Management raised its full-year outlook, supported by stronger revenue generation, improved efficiency and resilient credit quality. These factors helped offset continuing cost pressures. NatWest reports profit up 20%, brings forward buyback plans
• Positive Sentiment: Earlier capital returns: NatWest brought forward plans for further share buybacks, a shareholder-friendly move that could reduce the share count and support per-share earnings. The bank also completed its acquisition of wealth manager Evelyn Partners, expanding its wealth-management capabilities. NatWest raises guidance and brings forward share-buyback plans
• Neutral Sentiment: NatWest’s net margin was 19.11% and return on equity was 13.30%, indicating solid profitability. However, the stock’s valuation and outlook remain sensitive to interest rates, loan demand and the bank’s ability to control costs. NatWest Group Q2 2026 earnings call transcript
• Negative Sentiment: A valuation model cited by Yahoo Finance’s earnings preview indicated roughly 17% potential downside based on estimated fair value, which could limit gains if investors view the strong results as already reflected in the share price. NatWest earnings watch

Institutional Investors Weigh In On NatWest Group

A number of large investors have recently added to or reduced their stakes in the company. Morgan Stanley lifted its holdings in NatWest Group by 10.0% in the 4th quarter. Morgan Stanley now owns 11,061,146 shares of the company's stock worth $193,570,000 after buying an additional 1,009,044 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of NatWest Group by 7.6% during the first quarter. Goldman Sachs Group Inc. now owns 6,474,908 shares of the company's stock valued at $77,181,000 after acquiring an additional 455,538 shares in the last quarter. Bank of America Corp DE increased its position in shares of NatWest Group by 0.4% during the third quarter. Bank of America Corp DE now owns 5,575,156 shares of the company's stock worth $78,888,000 after acquiring an additional 20,246 shares during the last quarter. Northern Trust Corp increased its position in shares of NatWest Group by 13.2% during the third quarter. Northern Trust Corp now owns 4,422,518 shares of the company's stock worth $62,579,000 after acquiring an additional 515,620 shares during the last quarter. Finally, Raymond James Financial Inc. lifted its stake in shares of NatWest Group by 20.0% in the second quarter. Raymond James Financial Inc. now owns 3,881,083 shares of the company's stock worth $54,917,000 after acquiring an additional 647,828 shares in the last quarter. 1.27% of the stock is owned by institutional investors and hedge funds.

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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