NatWest Group (NWG) Q1 2026 earnings summary

Executive summary

• Achieved strong momentum and disciplined growth across all business segments, with return on tangible equity at 18.2% and EPS up 15.5% year-on-year to 17.9p.

• Customer loans grew 6.6% year-on-year and deposits rose 2.6%, with customer assets and liabilities up 5.2%.

• Leveraged technology and AI to deliver over £100 million in cost savings and accelerate product development.

• Maintained a resilient, well-diversified balance sheet and outperformed in Bank of England stress tests.

• Significant partnerships and acquisitions progressed, including Rightmove and Evelyn Partners.

Financial highlights

• Total income (excluding notable items) was £4.2 billion, up 6.9% year-on-year; reported income reached £4.36 billion, up 9.5%.

• Net interest margin increased by 2bps sequentially to 2.47%; net interest income (ex-notable items) up 12.2% year-on-year to £3.39 billion.

• Operating profit before impairment grew 11.6% sequentially to £2.3 billion; attributable profit up 14.4% to £1.43 billion.

• CET1 ratio at 14.3%, with capital generation of 65bps pre-distribution in Q1.

• Loan impairment charge was £283 million (26bps of loans), reflecting updated economic scenarios.

Outlook and guidance

• Full-year income now expected at the top end of £17.2–£17.6 billion range, excluding Evelyn Partners.

• Guidance for return on tangible equity remains above 17%; cost guidance for 2026 at £8.2 billion.

• Loan impairment rate expected below 25bps for 2026; capital generation pre-distributions around 200bps.

• 2028 targets: customer assets/liabilities CAGR >4%, cost:income ratio <45%, CET1 ratio ~13%, ROTE >18%.

• Management notes ongoing macroeconomic uncertainty and will refine forecasts as conditions evolve.