NatWest Group (LSE:NWG) has reported attributable profit of £1.5 billion for the third quarter of 2026, with return on tangible equity of 21.6%, as broad-based growth across its retail, private banking and commercial franchises offset a sharper rise in loan impairments.
The London-listed bank's operating profit came in at £2,225 million for the quarter, down 2.6% from £2,285 million in the second quarter but up 1.9% from £2,183 million a year earlier.
Total income rose 3.0% quarter-on-quarter and 7.1% year-on-year to £4,640 million, with the increase excluding notable items reflecting the acquisition of Evelyn Partners, deposit margin expansion and an extra day in the quarter. For the nine months to 30 September, NatWest reported attributable profit to ordinary shareholders of £4,567 million, up 11.8% on the same period last year, with earnings per share of 57.4p against 50.7p previously.
Net impairment losses jumped to £277 million in the quarter, equivalent to a loan impairment rate of 24 basis points, nearly double the £140 million charge in the second quarter, which NatWest attributed to the non-repeat of prior-quarter releases and higher Stage 3 charges.
Private Banking & Wealth Management delivered the standout move, with operating profit climbing to £156 million from £118 million in the second quarter, in its first full quarter following the completion of the Evelyn Partners acquisition on 30 June.
That division's total income rose 47.0% quarter-on-quarter to £447 million, with the Evelyn Partners deal driving a 128% increase in non-interest income, while assets under management and administration reached £132.4 billion after £1.0 billion of net inflows in the quarter.
Retail Banking delivered operating profit of £851 million and an improved cost:income ratio of 39.7%, down from 42.8% a year earlier, with net loans to customers up £1.4 billion in the quarter, mostly in mortgages, and customer deposits up £3.1 billion.
Commercial & Institutional generated operating profit of £1,285 million, with net loans to customers growing £6.7 billion in the quarter, primarily across Corporate & Institutions and Commercial Mid-market.
Read more about Natwest
- 31/07/26NatWest lifts 2026 guidance after strong first half
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Group customer assets and liabilities reached £1,002.6 billion, up £15.7 billion, or 1.6%, in the quarter and £110.9 billion since the start of the year.
The cost:income ratio, excluding litigation and conduct costs, stood at 45.7% year-to-date, 2.1 percentage points lower than the prior year, aided by around £420 million of gross cost savings.
"NatWest Group has delivered another strong performance in the third quarter of 2026, underpinned by the activity of more than 20 million customers," said chief executive Paul Thwaite, adding that the group's strategy is "consistently delivering sector-leading growth and returns, with a Return on Tangible Equity of 20.2% for the year to date".
NatWest reaffirmed the outlook given at its first-half 2026 results, with one enhancement: it now expects risk-weighted assets of around £210 billion on 1 January 2027, including the impact of Basel 3.1.
