NatWest Group (NYSE:NWG) Posts Earnings Results, Beats Estimates By $0.09 EPS

NatWest Group (NYSE:NWG) released its quarterly earnings results on Friday. The company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.45 by $0.09, Zacks reports. The firm had revenue of $6.06 billion during the quarter, compared to analyst estimates of $5.90 billion. NatWest Group had a return on equity of 13.30% and a net margin of 19.11%.

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

• 2026 guidance was upgraded: NatWest now expects income of around £17.9 billion, a return on tangible equity above 19%, and capital generation before distributions above 240 basis points.
• H1 performance showed strong operating leverage, with income up 8.9% versus 4.5% cost growth; the cost-income ratio improved to 46%, while Q2 operating profit rose 12.4% to £2.3 billion.
• Customer assets and liabilities excluding Evelyn Partners grew 5.2%, supported by broad-based lending growth and strong wealth inflows; the Evelyn acquisition added £71.7 billion of assets under management and administration.
• The company said credit quality remains strong, with a Q2 loan impairment rate of 13 basis points and expectations for the full-year rate to remain below 25 basis points.
• NatWest expects a flatter net interest margin trajectory in the second half as lending mix and mortgage pricing weigh on margins, although balance growth and structural-hedge income are expected to support higher net interest income.

NatWest Group Stock Up 2.2%

NWG stock opened at $18.94 on Friday. The stock has a market capitalization of $75.47 billion, a PE ratio of 9.42, a price-to-earnings-growth ratio of 0.98 and a beta of 0.92. NatWest Group has a 52 week low of $13.49 and a 52 week high of $19.35. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.15. The firm has a 50 day moving average of $17.16 and a 200 day moving average of $16.56.

NatWest Group News Summary

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

• Positive Sentiment: Profit and earnings beat expectations: NatWest reported second-quarter EPS of $0.54, exceeding the $0.47 consensus estimate. First-half attributable profit rose 22% to approximately £3 billion, while operating profit before tax increased 20.4% to £4.3 billion. NatWest earnings results
• Positive Sentiment: Guidance upgraded: Management raised its full-year outlook, supported by stronger revenue generation, improved efficiency and resilient credit quality. These factors helped offset continuing cost pressures. NatWest reports profit up 20%, brings forward buyback plans
• Positive Sentiment: Earlier capital returns: NatWest brought forward plans for further share buybacks, a shareholder-friendly move that could reduce the share count and support per-share earnings. The bank also completed its acquisition of wealth manager Evelyn Partners, expanding its wealth-management capabilities. NatWest raises guidance and brings forward share-buyback plans
• Neutral Sentiment: NatWest’s net margin was 19.11% and return on equity was 13.30%, indicating solid profitability. However, the stock’s valuation and outlook remain sensitive to interest rates, loan demand and the bank’s ability to control costs. NatWest Group Q2 2026 earnings call transcript
• Negative Sentiment: A valuation model cited by Yahoo Finance’s earnings preview indicated roughly 17% potential downside based on estimated fair value, which could limit gains if investors view the strong results as already reflected in the share price. NatWest earnings watch

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Corient Private Wealth LLC grew its holdings in shares of NatWest Group by 76.7% during the fourth quarter. Corient Private Wealth LLC now owns 138,930 shares of the company’s stock valued at $2,431,000 after buying an additional 60,288 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake in NatWest Group by 1.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 389,385 shares of the company’s stock worth $6,814,000 after acquiring an additional 5,685 shares during the last quarter. EP Wealth Advisors LLC acquired a new stake in NatWest Group during the 4th quarter worth about $261,000. NewEdge Advisors LLC lifted its position in NatWest Group by 12.5% during the 4th quarter. NewEdge Advisors LLC now owns 57,396 shares of the company’s stock worth $1,004,000 after acquiring an additional 6,395 shares during the period. Finally, OLD Mission Capital LLC purchased a new stake in NatWest Group during the 4th quarter valued at about $537,000. Hedge funds and other institutional investors own 1.27% of the company’s stock.

Analyst Ratings Changes

NWG has been the topic of a number of recent research reports. Keefe, Bruyette & Woods raised NatWest Group from a “hold” rating to a “moderate buy” rating in a research report on Friday, July 17th. Weiss Ratings downgraded shares of NatWest Group from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, May 4th. Berenberg Bank assumed coverage on shares of NatWest Group in a report on Wednesday, June 24th. They issued a “buy” rating on the stock. BNP Paribas Exane upgraded shares of NatWest Group from a “hold” rating to a “strong-buy” rating in a report on Monday, May 11th. Finally, Zacks Research downgraded shares of NatWest Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 13th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy”.

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.