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

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

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 Price Performance

NWG opened at $18.94 on Friday. NatWest Group has a 1 year low of $13.49 and a 1 year high of $19.35. The company’s 50 day simple moving average is $17.16 and its 200 day simple moving average is $16.56. The stock has a market capitalization of $75.47 billion, a PE ratio of 10.07, a P/E/G ratio of 0.96 and a beta of 0.92. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.04 and a current ratio of 1.04.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Keefe, Bruyette & Woods raised NatWest Group from a “hold” rating to a “moderate buy” rating in a research note on Friday, July 17th. Wall Street Zen raised NatWest Group from a “hold” rating to a “buy” rating in a research note on Saturday. BNP Paribas Exane upgraded shares of NatWest Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 11th. Zacks Research downgraded NatWest Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 13th. Finally, Berenberg Bank initiated coverage on NatWest Group in a report on Wednesday, June 24th. They issued a “buy” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy”.

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 Trading of NatWest Group

Several institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC increased its holdings in shares of NatWest Group by 47.0% during the 1st quarter. AQR Capital Management LLC now owns 281,646 shares of the company’s stock worth $3,357,000 after buying an additional 90,057 shares during the last quarter. NewEdge Advisors LLC grew its position in NatWest Group by 14,445.1% during the first quarter. NewEdge Advisors LLC now owns 14,836 shares of the company’s stock valued at $177,000 after acquiring an additional 14,734 shares during the period. Goldman Sachs Group Inc. increased its stake in NatWest Group by 7.6% during the first quarter. Goldman Sachs Group Inc. now owns 6,474,908 shares of the company’s stock worth $77,181,000 after acquiring an additional 455,538 shares during the last quarter. Jane Street Group LLC purchased a new position in shares of NatWest Group in the 1st quarter worth about $2,282,000. Finally, Focus Partners Wealth lifted its stake in shares of NatWest Group by 70.6% in the 1st quarter. Focus Partners Wealth now owns 24,251 shares of the company’s stock valued at $290,000 after purchasing an additional 10,034 shares in the last quarter. 1.27% of the stock is owned by hedge funds and other institutional investors.

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.