NatWest Group Plc: H1 2026 Interim Results Summary
Business Context and Reporting Period
This Form 6-K reports the unaudited condensed consolidated financial results for NatWest Group Plc for the six-month period ended 30 June 2026. The results were approved by the Board on 30 July 2026. A significant strategic development during the period was the acquisition of Evelyn Partners Group Limited on 30 June 2026 for a total consideration of £2.2 billion, aimed at accelerating the Group's strategy to increase capital-light, fee-based income streams.
Key Financial Metrics
| Metric (£m) | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Total Income | 8,862 | 7,985 | +11.0% |
| Operating Profit Before Tax | 4,318 | 3,585 | +20.4% |
| Profit for the Period | 3,180 | 2,675 | +18.9% |
| Profit Attributable to Ordinary Shareholders | 3,035 | 2,488 | +22.0% |
| Basic EPS (pence) | 38.1p | 30.9p | +23.3% |
| Net Interest Income | 6,890 | 6,120 | +12.6% |
| Non-Interest Income | 1,972 | 1,865 | +5.7% |
| Operating Expenses | (4,121) | (4,018) | +2.6% |
| Impairment Losses | (423) | (382) | +10.7% |
| Net Cash from Operating Activities | 5,198 | 5,117 | +1.6% |
| Total Assets | 745,367 | 714,553 | +4.3% |
| Customer Deposits | 448,605 | 442,998 | +1.3% |
| Loans to Customers | 435,908 | 418,881 | +4.1% |
Material Changes and Drivers
- Profit Growth: Operating profit increased by £733 million (20.4%) driven by higher net interest income and non-interest income, partially offset by increased operating expenses and impairment losses.
- Net Interest Income: Rose to £6.89 billion, primarily due to higher interest rates and growth in loans to customers (£435.9 billion vs £418.9 billion).
- Non-Interest Income: Increased to £1.97 billion. Notable items included £133 million in foreign exchange recycling gains and £386 million in trading income (down from £575 million in H1 2025).
- Costs: Operating expenses rose slightly to £4.12 billion. Staff costs remained stable at £2.13 billion. Acquisition-related costs of £28 million were recognized in operating expenses.
- Impairments: Impairment losses increased to £423 million, reflecting a higher ECL charge, particularly in Stage 2 and Stage 3 loans.
- Acquisition Impact: The acquisition of Evelyn Partners on the last day of the period contributed no revenue to the income statement but added £1.723 billion in goodwill and £1.26 billion in identifiable intangible assets to the balance sheet.
Guidance, Outlook, and Risks
Dividends and Capital Return: The Group announced an interim dividend of 12.0 pence per ordinary share (£955 million total), payable in September 2026. Additionally, the Group repurchased and cancelled 78.5 million shares during the period for £474.3 million, with a further 9.02 million shares repurchased post-period.
Outlook and Risks: Management highlighted several principal risks for the remainder of the year, including economic and political uncertainties, interest rate fluctuations, and the execution of the Evelyn Partners integration. The Group faces ongoing legal and regulatory matters, including:
- LIBOR Litigation: Summary judgment was granted to defendants in the USD LIBOR class action in September 2025, currently under appeal.
- FX Litigation: The UK Supreme Court reinstated the refusal of opt-out collective proceedings in December 2025; the applicant is seeking to file a revised application.
- Regulatory Investigations: Ongoing matters include the US spoofing investigation (monitorship paused in May 2025) and the FCA investment advice review (expected completion July 2026).
- Climate and Sustainability: Risks related to the transition to a net-zero economy and data limitations in climate reporting.
Key Facts for Investor Verification
- Evelyn Partners Integration: Verify the timeline and financial impact of integrating Evelyn Partners, as the purchase price allocation remains provisional for up to 12 months.
- Legal Provisions: Review the adequacy of provisions for ongoing litigation (LIBOR, FX, Swaps) and regulatory fines, as outcomes remain uncertain and could be substantial.
- Cost:Income Ratio: The cost:income ratio excluding litigation and conduct improved to 46.0% (from 48.8% in H1 2025); verify the sustainability of cost control measures.
- Impairment Trends: Monitor the loan impairment rate and ECL coverage ratios, particularly given the increase in Stage 2 and Stage 3 provisions.
- Capital Position: Confirm the Group's ability to maintain regulatory capital ratios (CET1) and MREL requirements while continuing significant capital distributions (dividends and buybacks).