NatWest profit rises 20%, lifts outlook and buyback plans

NatWest Group raised its full-year profitability target and moved up its capital return timetable after first-half operating profit before tax climbed about 20% to £4.3 billion for the six months ended 30 June 2026, from about £3.6 billion a year earlier. Return on tangible equity reached 18.1% and NatWest now expects more than 16.5% for full-year 2026, up from previous guidance of more than 16.0%.

NatWest will consider share buybacks from full-year 2026, six months earlier than planned, after completing a £2.5 billion buyback in the first half and setting out plans to return up to £1.0 billion in dividends for the full year. CET1 capital stood at 14.2% at the end of June, while tangible net asset value per share rose to 381.2 pence.

NatWest is still benefiting from stable revenue generation, cost discipline and restrained credit losses, a combination that has kept British banks generating strong earnings even as the interest-rate backdrop cools. Lower rates can squeeze net interest margins, consumer loan demand can soften and regulators are still watching lending standards closely.

NatWest's results landed in a week when Lloyds Banking Group and Barclays also showed resilient profitability. NatWest's scale, broad retail deposit base and positions in mortgages and corporate banking remain advantages, but they are being tested by deposit competition, digital challengers and weaker consumer behaviour as borrowing costs stay elevated.

NatWest has also stayed in focus after it helped fund London-based consumer credit lender Amplifi Capital with up to £250 million in the years before that lender collapsed.