NatWest profit soars by almost a quarter while staff bonuses swell

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “NatWest delivered a reassuring set of results after a tough week for the shares.

“Result beat expectations across the board, with profits coming in 10 per cent ahead.

“The standout was lending income, while tighter cost control and lower bad-loan charges gave profits an extra lift.

“The balance sheet also looks healthier, with capital ticking up (though there was a benefit from the smaller-than-hoped buyback announced earlier in the week).

“Looking ahead, management’s 2026 outlook looks cautious rather than ambitious, but that’s typical for NatWest and leaves room for upgrades as we move through the year.

“Investors should be pleased with these results, but there’ll still be a lingering question mark around the price being paid for the Evelyn Partners deal that sent shares tumbling earlier in the week.

“Buybacks are still on the cards, but at a reduced level for the time being.

“The push for lucrative non-interest income shouldn’t come as a surprise, and while the price may feel lofty, the strategic rationale looks solid.

“UK bank valuations aren’t as attractive as they have been over the past couple of years, with much of the low-hanging fruit around poor sentiment having been resolved.

“Still, for high-quality names like NatWest, there’s a reasonably attractive returns profile on offer.”