UK's NatWest Q3 income rises on lending growth

Overview

• UK banking group's Q3 total income rose 7.1% yr/yr, driven by lending and deposit growth

• Net interest income grew 8.9% yr/yr; operating profit before tax up 1.9%

• CET1 capital ratio improved to 13.5% in Q3 2026

Outlook

• NatWest reaffirms its H1 2026 outlook, now expects RWAs around £210 bln on 1 Jan 2027

• Company assumes Bank of England base rate will rise by 25 bps to 4% in Q4 2026

Result Drivers

• LENDING AND DEPOSIT GROWTH - Co said growth in net loans and customer deposits across Retail, Private Banking & Wealth Management, and Commercial & Institutional segments drove results

• ACQUISITION IMPACT - Co said Evelyn Partners acquisition contributed to higher income and assets under management in Private Banking & Wealth Management

• COST MANAGEMENT - Co said disciplined cost management and simplification efforts lowered cost:income ratio and supported profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for NatWest Group PLC is GBp817.50, about 28.7% above its October 29 closing price of GBp635.20

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 29 - UK's Lloyds Q3 profit nearly doubles on lending growth

• Oct 29 - Lloyds shares drop on muted third quarter results as higher taxes loom

• Oct 28 - UBS Q3 net profit rises 8% yr/yr

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)