NatWest Group Reports Strong Q1 2026 Results, Raises Income Guidance, and Continues Share Buyback

summarizeSummary

NatWest Group plc announced strong financial performance for Q1 2026, with significant increases in profit and earnings per share, and raised its income guidance for the full year. The company also reported continued share repurchases.

check_boxKey Events

• Strong Q1 Financial Performance

  NatWest Group reported a 9.5% increase in total income to £4.4 billion and a 12.2% rise in operating profit before tax to £2.033 billion compared to Q1 2025. Profit attributable to ordinary shareholders grew by 14.4% to £1.432 billion, with basic earnings per share increasing to 17.9 pence.

• Raised Income Guidance

  The company now expects full-year income, excluding notable items, to be at the top end of its previously guided range of £17.2 - 17.6 billion, reaffirming other guidance from its full-year 2025 results.

• Strengthened Capital Position

  The Common Equity Tier 1 (CET1) ratio improved to 14.3% in Q1 2026, up from 14.0% in Q4 2025 and 13.8% in Q1 2025, reflecting strong capital generation.

• Increased Impairment Losses

  Impairment losses significantly increased to £283 million in Q1 2026, up 108.1% from Q4 2025 and 49.7% from Q1 2025, partly due to updates in economic scenarios and strategic credit card portfolio growth.

auto_awesomeAnalysis

NatWest Group plc delivered robust first-quarter results, showcasing strong growth in total income and operating profit, which increased by 9.5% and 12.2% respectively compared to Q1 2025. Profit attributable to ordinary shareholders rose by 14.4%, leading to a 15.5% increase in basic earnings per share. A key positive signal is the updated outlook, with the company now expecting income excluding notable items to be at the top end of its previously guided range of £17.2 - 17.6 billion, reaffirming other full-year guidance. This indicates management confidence in continued strong performance. The Common Equity Tier 1 (CET1) ratio strengthened to 14.3%, demonstrating solid capital resilience. While impairment losses saw a significant increase, the overall financial health and positive guidance are likely to be viewed favorably by investors. The ongoing share buyback program further signals a commitment to returning capital to shareholders. Investors should monitor future impairment trends but the current report suggests a strong operational footing.