NatWest stock weighs profit growth against higher impairments

Published on 10/30/2026 at 11:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

NatWest stock is in focus after third-quarter operating profit rose to GBP 2.225 billion. The bank reaffirmed its 2026 outlook.

NatWest reports resilient third-quarter growth

Operating profit increased year on year while higher impairment charges weighed on attributable profit.
Customer assets and liabilities passed GBP 1 trillion as lending, deposits and wealth inflows expanded.
Management reaffirmed its 2026 outlook and raised its January 2027 risk-weighted asset expectation.

NatWest, GB00BM8PJY71, Illustration mit AI erstellt.

NatWest Group reported a resilient third quarter on Friday, October 30, 2026, as stronger income and customer growth offset higher impairment charges. The bank said operating profit reached GBP 2.225 billion, up from GBP 2.183 billion a year earlier, while attributable profit to ordinary shareholders fell to GBP 1.532 billion from GBP 1.598 billion.

NatWest's official Q3 results statement showed total income of GBP 4.640 billion, up 7.1% from GBP 4.332 billion. Net interest income increased 8.9% to GBP 3.559 billion, while the net interest margin widened to 2.50% from 2.37%.

The quarter also brought a higher credit charge. The net impairment charge was GBP 277 million, compared with GBP 140 million in the third quarter of 2025, as the bank cited the non-repeat of prior releases and higher Stage 3 charges. NatWest said credit performance across the portfolio remained resilient, with the year-to-date loan impairment rate at 21 basis points.

Customer growth supports the franchise

Customer assets and liabilities rose to GBP 1,002.6 billion, an increase of GBP 15.7 billion, or 1.6%, during the quarter. Retail Banking contributed mortgage growth of GBP 1.2 billion and deposit growth of GBP 3.1 billion. NatWest also said it had exceeded its 2026 first-time buyer lending target, with more than GBP 10 billion in lending.

Private Banking and Wealth Management recorded GBP 1.0 billion in net assets under management inflows during the quarter. The integration of Evelyn Partners continued, while Commercial and Institutional net customer loans increased by GBP 6.7 billion and customer deposits rose by GBP 3.0 billion.

Cost control remained a central support for returns. The year-to-date cost-to-income ratio, excluding litigation and conduct costs, was 45.7%, 2.1 percentage points below the prior-year level. NatWest also reported GBP 1.8 billion of benefits from risk-weighted asset management actions.

Capital and outlook remain central

Return on tangible equity was 21.6% in the quarter, compared with 22.3% a year earlier. The common equity tier one ratio improved by 30 basis points to 13.5%, while capital generation before distributions was 71 basis points. The loan-to-deposit ratio remained at 90%, and the average liquidity coverage ratio was 137%.

NatWest reaffirmed the outlook from its first-half results, including expected 2026 total income excluding notable items of around GBP 17.9 billion and return on tangible equity above 19%, according to Hargreaves Lansdown. The group now expects risk-weighted assets of around GBP 210 billion on January 1, 2027, including the impact of Basel 3.1.

NatWest stock traded at 7.02 euros on Lang & Schwarz at 11:02 CET on Friday, October 30, 2026.