NatWest lifts outlook after Q1 earnings beat
May 1, 2026 at 07:10 UTC
Key Points
- NatWest (NWG.L) reports Q1 2026 profit of £1.43 billion, topping forecasts
- Earnings per share rise 15.5% year-on-year to 17.9 pence
- Customer deposits and net loans grow alongside improved efficiency
- Bank now expects full-year income at top end of £17.2-£17.6 billion
NatWest’s first-quarter results
NatWest Group PLC (NWG.L) delivered a stronger-than-expected performance in the first quarter of 2026, reporting profit of £1.43 billion. This exceeded analyst expectations of £1.32 billion and reflected solid momentum across the bank’s operations.
Earnings per share increased by 15.5% year-on-year to 17.9 pence, ahead of the forecast of 16.8 pence. The figures indicate that profit growth outpaced market assumptions at both the headline and per-share levels.
Income outlook and guidance
On the back of the first-quarter performance, NatWest upgraded its full-year income expectations. The bank now anticipates income at the top end of its guidance range of £17.2 billion to £17.6 billion, citing its stronger start to the year.
Management’s decision to steer investors toward the upper end of the range underlines the contribution of the first-quarter beat to the full-year outlook, while keeping guidance within the previously stated band.
Customer activity in deposits and lending
Customer deposits rose by £3.1 billion in the quarter, bringing the total to £444 billion. The increase in deposits was identified as a key factor supporting the earnings performance, reflecting healthy customer engagement.
Net loans to customers also increased, rising by £7.2 billion to £396.4 billion. The simultaneous growth in deposits and lending points to broad-based customer activity across NatWest’s business segments.
Efficiency and capital strength
NatWest’s cost-to-income ratio improved to 46.5%, better than the consensus estimate of 46.9%. The lower ratio indicates that income growth outpaced operating costs in the quarter, contributing to the profit beat.
The bank’s Common Equity Tier 1 ratio rose to 14.3%, matching and exceeding the consensus high of 14.3%. This level underscores what the bank described as enhanced capital strength alongside its operating performance.
Overall performance context
Taken together, the profit beat, higher earnings per share, and upgraded income outlook highlight a strong start to 2026 for NatWest. Growth in customer deposits and loans, improved efficiency, and a stronger capital position all supported the quarter’s results.
The combination of rising profitability, solid balance-sheet metrics and a more confident full-year income view positions NatWest to build on what it described as healthy customer activity across its business segments.
Key Takeaways
- NatWest’s Q1 2026 results show profit and EPS ahead of analyst expectations, supported by both higher income and cost discipline.
- Stronger guidance toward the top of the income range signals that first-quarter performance has materially influenced NatWest’s full-year outlook.
- Growth in customer deposits and net loans, alongside a higher CET1 ratio, underscores the bank’s ability to expand activity while maintaining capital strength.
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