NatWest lifts 2026 guidance following Evelyn deal and earnings beat

NatWest Group PLC on Friday raised its guidance for 2026 and said it will consider a new share buyback at its annual results, six months earlier than planned, after profit and income beat expectations in the second quarter.

Shares in the Edinburgh-based bank were up 4.4% to 713.60 pence on Friday morning in London.

Pretax profit in the three months to June 30 rose 29% to £2.29 billion from £1.77 billion a year prior, as total income improved 13% to £4.50 billion from £4.01 billion. Pretax profit topped the £2.04 billion company-compiled market consensus, while total income beat the £4.40 billion forecast.

"The consistency of our performance, coupled with the completion of our Evelyn Partners acquisition, has given us the confidence to strengthen our guidance for 2026," Chief Executive Paul Thwaite commented.

NatWest completed its acquisition of wealth manager Evelyn Partners at the start of July. The deal was done at an enterprise value of £2.7 billion. It brought in an additional £69 billion in assets under management and administration as of December 31, raising NatWest's total AuMA to £127 billion as of that date.

As of June 30, AuMA was £130.6 billion, NatWest said on Friday.

NatWest at the time said it was targeting £100 million in annual run-rate cost synergies from the integration of Evelyn Partners.

NatWest now expects annual total income excluding notable items to be around £17.9 billion in 2026, including around £275 million relating to Evelyn Partners. It previously expected total income at the top end of a £17.2 billion to £17.6 billion range.

NatWest lifted its interim dividend by 26% to 12.0p from 9.5p a year prior.

In addition, it "will consider share-buybacks from full year 2026, six months earlier than previously planned". It previously expected its next share buyback announcement to be at its half-year results in 2027.

In the half-year to June 30, total income was £8.86 billion, up 11% from £7.99 billion a year before. Within this, net interest income was up 13% to £6.89 billion from £6.12 billion. Pretax profit for the six months was £3.18 billion, up 19% from £2.68 billion.

Net interest margin was 2.48% in the half year and 2.49% in the second quarter, up from 2.28% and 2.47%, respectively, a year before.

Return on tangible equity was 19.7% in the first half and 21.0% in the second quarter, up from 18.1% and 18.2%, respectively, a year before.

The bank's common equity tier 1 ratio was 13.2% on June 30, down from 14.3% on March 31. NatWest said it continues to target a CET1 ratio around 13.0%.

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