NatWest Group plc reported first‑quarter 2026 results that showed a 12% year‑on‑year increase in pretax profit, rising to £2.03 billion from £1.81 billion in the same period a year earlier. Earnings per share of 17.9 pence beat the consensus estimate of 16.8 pence, reflecting disciplined cost management and a favourable mix of revenue streams.
Total income grew 9.5% to £4.36 billion, but income excluding notable items fell 2% below consensus at £4.22 billion versus the expected £4.30 billion. Net interest income of £3.39 billion was slightly below the £3.41 billion forecast, and non‑interest income contributed to the revenue miss, falling 7% below analyst expectations.
The bank delivered over £100 million in additional cost savings in the quarter, and its cost‑to‑income ratio improved to 46.5% from 48.6% in Q1 2025. The improvement was driven by ongoing restructuring and increased investment in technology, including the accelerated use of AI to streamline operations.
Management highlighted the role of AI‑driven productivity gains and the recent acquisition of Evelyn Partners to strengthen its wealth management arm. CEO Paul Thwaite said, "NatWest Group's strong performance in the first quarter of 2026 reflects our consistent delivery for customers and shareholders. We have started the year with positive momentum, underpinned by healthy customer activity growing all of our three businesses, expanding our capabilities to meet more of our customers' needs and further improving productivity as we use AI at scale across the bank."
NatWest reaffirmed its full‑year guidance, expecting income excluding notable items at the top end of its £17.2‑£17.6 billion range, with an outlook of £17.7 billion—slightly below the market expectation of £17.96 billion. Investors focused on the revenue miss and lower‑than‑expected non‑interest income, leading to a muted market reaction.
The results underscore the bank’s resilient capital position, with a Common Equity Tier 1 ratio of 14.3%, and its strategic focus on cost discipline and AI integration, positioning it to navigate a weaker macro environment.
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