NatWest Group (NYSE:NWG) Posts Earnings Results, Beats Expectations By $0.04 EPS

NatWest Group (NYSE:NWG) released its quarterly earnings data on Friday. The company reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.04, Zacks reports. The firm had revenue of $5.59 billion for the quarter, compared to analyst estimates of $5.80 billion. NatWest Group had a net margin of 18.59% and a return on equity of 13.05%.

Here are the key takeaways from NatWest Group’s conference call:

• Upgraded guidance and strong Q1 results: Income rose 6.9% to £4.2bn, EPS increased 15.5% to £0.179 and ROTE was 18.2%, and management now expects 2026 income at the top end of the £17.2–£17.6bn range (ex Evelyn Partners).
• Broad-based balance-sheet growth: Customer lending grew 6.6% YoY to £400bn, deposits rose 2.6% to £445bn, AUM increased 16.9% to £57bn, and client assets & liabilities exceeded £900bn, in line with the 2028 CAL target.
• Productivity and cost progress driven by tech: The group delivered over £100m of Q1 cost savings, lowered its cost/income ratio to 46.5%, and says over 40% of its code is now written by AI, enabling much faster product delivery.
• Macro-driven provisioning and impairment: Management now assumes Bank Rate at 3.75% for 2026 with higher inflation, and took an additional £140m provisioning charge in Q1 (impairment 26bps including scenario adjustments), reflecting prudence that may weigh on near-term profits.
• Strong capital and strategic M&A: CET1 was 14.3% with 65bps capital generation in Q1 and an expectation of ~200bps pre-distribution this year, while the Evelyn Partners acquisition is progressing toward a Q2 close (subject to regulatory approval).

NatWest Group Stock Down 3.2%

Shares of NYSE:NWG opened at $15.41 on Friday. NatWest Group has a one year low of $12.76 and a one year high of $19.35. The company has a 50 day moving average of $15.75 and a 200-day moving average of $16.33. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.04 and a quick ratio of 1.04. The stock has a market cap of $61.48 billion, a price-to-earnings ratio of 8.19, a P/E/G ratio of 0.86 and a beta of 0.95.

NatWest Group Dividend Announcement

The business also recently disclosed a dividend, which will be paid on Tuesday, May 5th. Shareholders of record on Friday, March 20th will be given a $0.621 dividend. This represents a yield of 895.0%. The ex-dividend date is Friday, March 20th. NatWest Group’s dividend payout ratio (DPR) is presently 64.36%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Sivia Capital Partners LLC boosted its stake in NatWest Group by 105.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 39,803 shares of the company’s stock worth $563,000 after acquiring an additional 20,412 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in NatWest Group by 115.0% in the second quarter. EverSource Wealth Advisors LLC now owns 12,290 shares of the company’s stock valued at $174,000 after buying an additional 6,575 shares in the last quarter. Diversify Advisory Services LLC bought a new position in NatWest Group in the second quarter valued at approximately $167,000. Fiduciary Trust Co bought a new position in NatWest Group in the third quarter valued at approximately $150,000. Finally, Advisory Services Network LLC bought a new position in NatWest Group in the third quarter valued at approximately $90,000. Institutional investors own 1.27% of the company’s stock.

Analysts Set New Price Targets

NWG has been the subject of a number of recent research reports. Keefe, Bruyette & Woods lowered shares of NatWest Group from a “moderate buy” rating to a “hold” rating in a research note on Monday, April 20th. BNP Paribas Exane upgraded shares of NatWest Group from a “strong sell” rating to a “hold” rating in a research note on Friday, February 27th. Barclays reiterated an “equal weight” rating on shares of NatWest Group in a research note on Wednesday, January 7th. Weiss Ratings reiterated a “buy (b)” rating on shares of NatWest Group in a research note on Tuesday, April 21st. Finally, Zacks Research lowered shares of NatWest Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. One research analyst has rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, NatWest Group has an average rating of “Hold”.

Key NatWest Group News

Here are the key news stories impacting NatWest Group this week:

• Positive Sentiment: Profit and EPS beat — NatWest reported first‑quarter profit up ~12% year‑on‑year and posted an EPS beat (reported $0.48 vs. ~$0.44 consensus), showing underlying profitability and helping support valuation multiples. NatWest posts first quarter profit rise of 12%
• Positive Sentiment: Guidance upgraded — Management raised 2026 income guidance (saying income could reach the top end of its range) on loan growth and benefits from the structural hedge, which frames a constructive medium‑term revenue outlook. U.K. Bank NatWest Expects Income at Top End of Range
• Neutral Sentiment: Conference materials available — Management commentary, the earnings slide deck and the call recording are posted for investors wanting detail on drivers (loan volumes, cost control, and AI/productivity initiatives). Useful for modelling but not an immediate catalyst. Listen to Conference Call / View Slide Deck
• Negative Sentiment: Total income shortfall — Reported total income (c. £4.2bn) was ~2% below Street expectations, driven by a ~7% shortfall in non‑interest income, a material reason some analysts marked down near‑term upside. NatWest falls as income outlook raised but not as much as City analysts predicted
• Negative Sentiment: One‑off Iran war provision — The bank took a provision related to the Iran war, which dents headline earnings and adds uncertainty over potential future charges. That helped temper investor enthusiasm despite the profit beat. NatWest’s first-quarter profit rises 12%, takes Iran war provision

About NatWest Group

NatWest Group plc is a major UK-based banking and financial services group headquartered in Edinburgh, Scotland. The company traces its roots to the Royal Bank of Scotland, founded in 1727, and adopted the NatWest Group name in 2020 as part of a strategic refocus on its NatWest brand. NatWest Group is listed on the London Stock Exchange and also has American depositary shares trading on the New York Stock Exchange under the symbol NWG.

The group provides a broad range of banking services across retail, private, commercial, corporate and institutional segments.