NatWest Group (NWG): Q1 2026 Earnings Show Strong Profitability and Confidence in Full-Year Guidance
Key Takeaways
- Operating profit rose to £2.0 billion in Q1 2026, up from the prior year period.
- Basic earnings per share (EPS) increased 15.5% year-over-year to 17.9 pence.
- Return on tangible equity (RoTE) stood at a strong 18.2%.
- Total income excluding notable items reached £4.2 billion.
- Group reaffirmed full-year guidance, pointing to the top end of its £17.2-17.6 billion income range excluding notable items.
- Common Equity Tier 1 (CET1) capital ratio improved to 14.3%, up about 30 basis points from Q4 2025.
Earnings Context and Why It Matters
As one of the U.K.'s largest banks, NatWest Group (NWG) serves millions of retail, commercial, and institutional customers. Its Q1 2026 earnings offer a clear view of performance in a stabilizing interest rate environment and competitive lending landscape. Investors like me pay close attention to these results for insights into net interest margin (NIM) trends—the spread between interest income and expenses—and deposit growth, which are critical indicators of strength amid higher rates. After a strong 2025 with record profits, these figures help assess whether growth in customer assets and cost management can hold up, impacting dividends and initiatives like wealth management expansion.
Reported Results
NatWest Group (NWG) posted total income excluding notable items of £4.2 billion for the first quarter ended March 31, 2026, holding steady with prior periods thanks to stable net interest income and rising fees. Operating profit reached £2.0 billion, driven by better cost control—including over £100 million in quarterly savings—and a cost:income ratio (excluding litigation and conduct) of 46.5%, improved by 2.1 percentage points from a year ago.
Profit attributable to ordinary shareholders came in at £1.4 billion, lifting basic EPS to 17.9 pence, up 15.5% from 15.5 pence in Q1 2025. RoTE was 18.2%, highlighting effective capital deployment. Other highlights included customer loans rising £7.2 billion (excluding central items), deposits growing £3.1 billion, and assets under management and administration (AUMA) seeing £0.9 billion in net inflows despite market challenges. The CET1 ratio rose to 14.3%, bolstering options for capital returns.
These results demonstrated resilience against analyst expectations, such as around £4.31 billion in total income, especially on the profitability front, even if income edged below some forecasts.
Market Reaction and Investor Sentiment
In early London trading after the May 1 release, NWG shares rose, as investors welcomed the profit beat, solid RoTE, and lifted full-year guidance. Overall sentiment feels positive, supported by the strong capital position and customer momentum, though some wariness persists around possible NIM pressure from rate shifts. Trading volume picked up as analysts revised their models based on this encouraging update.
One thing that stands out to me is how the capital generation of 65 basis points pre-distributions this quarter reinforces the bank's ability to support dividends and buybacks while maintaining regulatory buffers.
Discovering Opportunities with Tickeron’s AI Screener
In my own analysis of NWG and similar names, I rely on Tickeron’s AI Screener, an AI-powered tool for stock and ETF discovery. It lets me filter thousands of assets using technical patterns, fundamentals, trends, volatility, and AI signals—customizing by industry, market cap, indicators, price patterns, and more. This streamlines finding trade ideas, breakouts, and opportunities far quicker than manual scans, making it a key part of my research process.
Forward Outlook and Key Factors to Monitor
From what I see, management’s confidence shines through with full-year 2026 total income excluding notable items now eyed at the upper end of the £17.2-17.6 billion range, reflecting momentum in retail banking, commercial lending, and wealth management.
Key areas to watch include net interest income, as deposit repricing and loan expansion play out against Bank of England rate uncertainties. Customer growth remains a bright spot, with 24,000 new startups added, aligning with targets for over 4% annual customer asset and liability (CAL) growth by 2028.
Cost savings efforts are on track for efficiency gains, while impairment charges merit vigilance amid economic risks. AUMA inflows in Private Banking & Wealth Management may pick up with market recovery. I also checked comparable banks using Tickeron’s AI Screener to gauge sector positioning.
U.K. banking competition and regulations will influence progress, with half-year results in July providing more detail.
Disclaimer
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NWG's RSI Indicator leaves overbought zone
The 10-day RSI Oscillator for NWG moved out of overbought territory on April 16, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 instances where the indicator moved out of the overbought zone. In of the 42 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for NWG turned negative on April 23, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
NWG moved below its 50-day moving average on May 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NWG crossed bearishly below the 50-day moving average on May 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NWG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where NWG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 18, 2026. You may want to consider a long position or call options on NWG as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 327 cases where NWG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.070) is normal, around the industry mean (1.165). P/E Ratio (8.405) is within average values for comparable stocks, (17.089). Projected Growth (PEG Ratio) (2.379) is also within normal values, averaging (3.326). Dividend Yield (0.056) settles around the average of (0.035) among similar stocks. P/S Ratio (2.800) is also within normal values, averaging (3.566).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. NWG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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