NatWest Group plc is a leading financial institution that delivers a broad spectrum of banking and financial services to individual customers, businesses, ...
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$0.35 per share
Est. EPS $0.51 · Revenue $6.24B · 1 analysts
Est. EPS $0.47 · Revenue $6.30B · 1 analysts
Est. EPS $2.01 · Revenue $24.32B · 5 analysts
$0.35 per share
EPS £0.80 · Revenue £7.86B
EPS £0.72 · Revenue £7.38B
EPS £2.70 · Revenue £29.48B
EPS £0.40 · Revenue £7.55B
EPS £0.60 · Revenue £7.25B
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $29.5B | +3.2% | +6.5% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $5.8B | +21.4% | +12.1% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +56.3% | +9.8% | -1.3% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +26.1% | +20.6% | +6.1% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +19.8% | +17.7% | +5.3% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $5.8B | +734.3% | — |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +19.6% | +708.5% | — |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 168.6% | +0.6% | +1044.4% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 0.20x | -8.5% | -21.0% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $714.6B | +0.9% | -0.6% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 2.70 vs 1.76 | +53.3% | 0.80 vs 0.46 | +73.4% |
| Revenue Surprise | $29.5B vs $22.2B | +32.6% | $7.9B vs $5.9B | +33.4% |
Operator: Good afternoon, and welcome to NatWest Group's H1 2026 Results Fixed Income Presentation. Today's presentation will be hosted by CFO, Katie Murray; and Group Treasurer, Donal Quaid. After the presentation, we will take questions. Katie Murray: Good afternoon, everyone. Thank you for joining our H1 2026 fixed income results presentation. I'm joined today by Donal Quaid, our Treasurer; and Paul Pybus, our Head of Debt IR. I will take you through the headlines for the half year and the detail for the quarter. Donal will take you through the balance sheet, capital and liquidity, and then I'll go through the forward look and targets, and then we'll open up for questions. So turning to the headlines. Our results today show how we have created a bank with increasing momentum through our focus on sustainable growth and returns. By delivering growth across all 3 businesses, improving operating leverage and managing our capital and risk well. We have created the most efficient large U.K. bank with the lowest cost of risk, delivering the strongest levels of capital generation and highest returns. Our performance makes clear. We have the capability and capacity to grow at scale. The momentum we're seeing in customer growth, efficiency and returns gives us confidence for the future. We have created a business capable of delivering strong, compounding sustainable returns through the cycle. In February, we set out how we plan to deliver our 2028 targets by pursuing disciplined growth, leveraging simplification and actively managing our capital and risk. Our aim is to grow customer assets and liabilities at an annual rate of more than 4% to reduce our cost/income ratio to below 45% and to generate over 200 basis points of capital before distributions with a return on tangible equity of more than 18%. Our strategy is delivering excellent results as we make good progress against these 3 ambitions. So let me give you the financial headlines. We have deliberately built a scale business that benefits from structural U.K. growth drivers to deliver strong returns on a sustainable basis. Our return on tangible equity was industry-leading at 19.7%. Our acquisition of Evelyn Partners is now completed and boost our exposure to the fast-growing U.K. wealth market. Customer assets and liabilities grew 13.4%, including Evelyn Partners. We continue to drive operating leverage. Income growth of 8.9% is significantly ahead of 4.5% cost growth. And our cost-to-income ratio reduced 2.8 percentage points to 46%, getting close to our 2028 target. We also generated high levels of capital at 137 basis points, and our balance sheet remains strong with a CET1 ratio of 13.2% after the acquisition of Evelyn Partners. Given the strength of our performance and our confidence in the outlook, we are upgrading our 2026 returns guidance to more than 19%. I'll now take you through the performance of the second quarter. My comments for the second quarter use the first quarter as a …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
John-Paul Thwaite | Group Chief Executive Officer & Executive Director | GBP 3,895,225 | Male | 1971 | Active |
Katie Murray | Group Chief Financial Officer & Executive Director | GBP 2,632,166 | Female | 1969 | Active |
Margaret Jobling | Group Chief Marketing Officer | — | Female | — | Active |
Maria Kokkinou | Group Chief People Officer | — | Female | — | Active |
Peter John Norton | Group Director of Strategy, Economics & Corporate Development | — | Male | 1982 | Active |
Claire Kane | Director of Investor Relations | — | Female | — | Active |
James Holian | Chief Customer & Operations Officer | — | Male | — | Active |
Scott Marcar | Group Chief Information Officer | — | Male | — | Active |
Stephen Blackman | Principal Economist, Strategy & Corporate Development | — | Male | — | Active |
Will Luker | Group Chief Legal Officer & General Counsel | — | Male | — | Active |
NatWest Group continues to deliver impressive financial results, with the bank's return on tangible equity exceeding 20% last quarter. NWG's net interest margin is still expanding on the back of the mechanistic reinvestment of its deposits, offsetting tighter loan spreads. Despite fears that U.S. tariffs and the Middle East conflict would lead to a rise in loan losses, credit quality remains strong.
This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields 4.2%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8%.
NatWest Group NYSE: NWG reported higher second-quarter income and profit, supported by broad-based lending growth, higher non-interest income and continued operating leverage, while raising its 2026 return-on-tangible-equity guidance to more than 19%.
NatWest Group plc (NWG) Q2 2026 Earnings Call Transcript
The lender reported a 29% rise in pretax profit as it completed the acquisition of wealth manager Evelyn Partners.
