NatWest Group plc

Q2 FY26Banks

NatWest Group plc Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹16

Market cap₹65.1K Cr

P/E8.6

Published29 May 2026

What the Q2 FY26 call signalled

2 of 3 strong

RevenueRank 3

MarginRank 2

CapexYes

Not discussed on this call: fundraise, order book.

The short version

- Confident in annual income growth from 2026 to 2028, supported by disciplined growth across lending, deposits, and Assets Under Management and Advice (AUMAs). - NatWest Group expects annual income growth from 2026 through 2028, supported by disciplined growth across lending, deposits, and assets under management (AUM), bolstered by the upcoming Evelyn Partners acquisition.

From NatWest Group plc's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 3

Confident in annual income growth from 2026 to 2028, supported by disciplined growth across lending, deposits, and Assets Under Management and Advice (AUMAs).
Evelyn Partners acquisition expected to boost revenue and accelerate growth in retail investments and premier investment segments.
Lending growth is broad-based, including mortgages, Commercial & Industrial (C&I), and unsecured retail, with a strong pipeline supporting sustainable growth.
Deposit volumes growing well, especially in commercial banking, supported by product innovation and digitization.
Deposit margin expansion expected to continue in coming quarters despite market competition.
Structural hedge and higher-for-longer interest rate environment provide an income tailwind through 2030.
Management expresses increasing confidence in income and returns for 2026 and 2028, seeing the current outlook as supportive of growth.

Profitability & Margins

NatWest Group expects annual income growth from 2026 through 2028, supported by disciplined growth across lending, deposits, and assets under management (AUM), bolstered by the upcoming Evelyn Partners acquisition.
Management is confident in the income growth trajectory due to a "higher for longer" interest rate environment and a strengthened structural hedge, supporting income through 2030.
The 2026 income guidance was upgraded to the top end of GBP 17.2 billion to GBP 17.6 billion, excluding Evelyn Partners, reflecting improved momentum and no expected rate cuts this year.
Operating profit increased 11.6% in Q1 2026, with expectations of continued robust net interest income and strong earnings per share growth (15.5% YoY in Q1).
Management aims to maintain a return on tangible equity (ROTE) above 17% and anticipates strong capital generation and disciplined cost management, targeting around GBP 8.2 billion operating costs in 2026.
Overall, NatWest is confident in income, earnings, and returns growth beyond the near term amid economic uncertainties.

See what NatWest Group plc said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

The company is making strategic investments, including the acquisition of Evelyn Partners, which is progressing well.
There are front-loaded investments and restructuring costs accounted for in Q1, reflecting active capital allocation towards growth and transformation.
Operating costs related to Evelyn include day 1 transaction costs, ongoing operating costs post-consolidation, cost-to-achieve expenses (GBP 150 million total cost with GBP 100 million cost synergies), and ongoing amortization of intangibles from acquisition.
Investment in digital capabilities is evident, such as mortgage system enhancements allowing rapid repricing to respond to market changes.
The company remains focused on cost management and expects to maintain its full-year 2026 cost guidance (~GBP 8.2 billion), balancing investment with operational efficiency.

Fundraising & Capital Structure

There is no explicit mention of current or planned new fundraising through debt or equity in the provided pages.
The discussion focuses mainly on risk appetite, business model, loan and deposit growth, and acquisitions (specifically Evelyn Partners).
Evelyn Partners acquisition is progressing well, but no new equity or debt fundraising related to this is detailed.
Capital considerations mentioned relate to transaction and operating costs of Evelyn, and capital impact in terms of 130 basis points, but this is not new external fundraising.
The company emphasizes strong capital generation, high ROTEs, and resilience under stress tests, indicating no urgent need for additional fundraising currently.
Overall, management feels well-positioned financially without signaling plans for new debt or equity issuance.

See what NatWest Group plc said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided pages from the PDF do not contain specific details regarding the current or expected order book or pending orders. The discussion primarily revolves around: - Risk appetite and business model balance (Page 17). - Deposit margins and income guidance with focus on deposit growth and margin expansion (Pages 14, 13). - Loan book composition and stress test resilience (Page 17). - Cost management and investment in operations (Page 13). - Commercial and retail banking spreads and margins (Pages 12, 10). - Income guidance and hedge strategies (Pages 8, 7, 6). No explicit figures or commentary about order books or pending orders are provided in these extracts. If you need information on order books or pending orders, please specify other pages or sections.

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Frequently Asked Questions

What were NatWest Group plc Q2 FY26 results?

What is NatWest Group plc share price analysis?

NatWest Group plc currently shows a below-average growth signal. The stock trades at a P/E of 8.6 with a market cap of $65,117. Investors should review the full earnings analysis for detailed insights.

Is NatWest Group plc planning capital expenditure?

- The company is making strategic investments, including the acquisition of Evelyn Partners, which is progressing well.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.