NatWest Bank Plc Interim Results 2026

Total income increased by £937 million, or 15%, to £7,297 million compared with £6,360 million in H1 2025.

Net interest income increased by £687 million, or 15%, to £5,230 million, as a result of deposit margin expansion and customer lending growth, partially offset by lower mortgage margins.

Non-interest income increased by £250 million, or 14%, to £2,067 million driven by gains from economic hedging activities, fees reflecting the accelerated recognition of back book insurance income, investment management fees as a result of assets under management and administration (AUMA) growth, and income from NatWest Group subsidiaries due to the higher cost of services being recharged.
Operating expenses increased by £135 million, or 4%, to £3,584 million. This reflects investment in staff and technology, severance spend, as we front load our transformation plans, and transaction costs for the acquisition of Evelyn Partners. These investments support our continued progress towards becoming a simpler, more agile and technology-driven bank, using our capabilities to support growth, productivity and trust. Operating expenses were also impacted by higher profit share arrangements with fellow NatWest Group subsidiaries.

Net impairment losses of £423 million, compared with losses of £351 million in H1 2025, were principally due to good book charges driven by MES updates and PMA in Commercial & Institutional. Stage 3 charges were broadly stable. The ECL provision remained stable at £3.0 billion and our ECL coverage ratio has decreased from 0.84% to 0.82%.

Financial review

Business performance summary

Retail Banking

Operating profit was £1,474 million, compared with £1,251 million in H1 2025. 

·     Net interest income increased by £190 million to £2,680 million, reflecting deposit margin expansion from higher hedge income and growth in lending balances partially offset by lower margins.

·     Non-interest income increased by £44 million to £246 million, primarily reflecting the benefit from an annual insurance profit share and the accelerated recognition of back book insurance income.

·     Operating expenses decreased by £30 million to £1,192 million primarily due to the non-repeat of property exit costs, partially offset by the annual wage award increase, higher Bank of England levy, and the impact of the NatWest Boxed transfer from Central items & other.

·     An impairment loss of £260 million in H1 2026, compared with a £219 million loss in H1 2025, largely due to higher Stage 3 charges driven by growth and seasoning of the unsecured portfolio.

Total assets increased by £7.6 billion to £216.5 billion in H1 2026 driven by an increase in net loans to customers, primarily due to £7.8 billion higher mortgage balances.

Total liabilities decreased by £0.6 billion to £166.8 billion in H1 2026. Customer deposits were broadly stable, down £0.5 billion, as targeted growth in ISA balances and growth in current account balances was offset by lower instant access saving balances.

Private Banking & Wealth Management

Operating profit was £213 million, compared with £201 million in H1 2025. We completed the transformational acquisition of Evelyn Partners on 30 June 2026 creating the UK's leading Private Bank and Wealth Manager.

·     Net interest income increased by £40 million to £393 million reflecting deposit margin expansion from hedge income benefit.

·     Non-interest income increased by £28 million to £202 million primarily reflecting increased investment income driven by AUMA growth.

·     Operating expenses increased by £51 million to £376 million, primarily reflecting higher investment spend, property costs, severance costs and salary costs.

·     An impairment loss of £6 million in H1 2026, compared with a loss of £1 million in H1 2025 largely reflects higher good book releases in the prior year, with Stage 3 charges remaining at low levels.

Total assets increased by £3.6 billion to £23.2 billion in H1 2026, primarily driven by goodwill and intangible assets recognised on the acquisition of Evelyn Partners. Net loans to customers increased by £0.1 billion driven by an increase in personal lending.

Total liabilities decreased by £0.8 billion to £42.1 billion in H1 2026, driven by a reduction in current and savings account balances largely reflecting the impact of seasonal client tax outflows.

Commercial & Institutional

Operating profit was £1,521 million, compared with £1,205 million in H1 2025.

·     Net interest income increased by £303 million to £2,165 million, primarily reflecting higher deposit income as a result of higher customer balances, hedge income, and lending growth.

·     Non-interest income remained stable at £686 million.

·     Operating expenses decreased by £41 million to £1,172 million, primarily reflecting continuous business simplification, partially offset by increased inflation, continued investment in the business and higher restructuring costs.

·     An impairment loss of £158 million in H1 2026 compared with a £131 million loss in H1 2025 reflecting higher good book charges, partially offset by lower Stage 3 charges. 

Total assets increased by £5.4 billion to £104.6 billion in H1 2026 driven by an increase in net loans to customers, principally due to growth in Corporate & Institutions and Commercial Mid-market, partially offset by UK Government scheme repayments of £0.6 billion.

Total liabilities increased by £2.9 billion to £131.2 billion in H1 2026 driven by an increase in customer deposits largely reflecting growth within Corporate & Institutions and Business Banking.

Central items & other

Operating profit was £82 million, compared with an operating loss of £97 million in H1 2025.

·     Total income increased by £333 million to £925 million primarily reflecting foreign exchange recycling gains and higher gains on interest and foreign exchange risk management derivatives not in hedge accounting relationships.

·     Operating expenses increased by £155 million to £844 million driven by investment and transformation costs, £28 million of Evelyn Partners transaction costs, higher Bank of England levy and the impact of an HMRC tax credit in the prior year, partially offset by the impact of the NatWest Boxed transfer to Retail Banking.

Financial review

Capital and leverage ratios

Capital resources, RWAs and leverage for NWB Plc are set out below and have been calculated in line with the PRA rulebook.

(1)     NWB Plc prudential metrics are presented on an individual CRR consolidation basis.

(2)     Leverage exposure is broadly aligned to the accounting value of on and off-balance sheet exposures albeit subject to specific adjustments for derivatives, securities financing positions and off-balance sheet exposures.

(3)     LCR and NSFR disclosures are reported at the UK DoLSub level and will be published in the NatWest Holdings Pillar 3 Report in August 2026. Under the UK DoLSub waiver, liquidity is managed on a consolidated sub-group basis across NWB Plc, RBS plc and Coutts & Co.