NatWest's accelerating net interest income, up 13.6% YoY to $3.5B in 2026Q2, and improved efficiency ratio of 29.0% underscore strong operational momentum. However, the bank's thin 0.5% NIM and high sensitivity to UK rate cuts pose a margin compression risk, with a potential $200M annual NII reduction per 25bp cut.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth is robust with NII up 13.6% YoY to $3.5B in 2026Q2, while the efficiency ratio improved to 29.0%, but NIM remains thin at 0.5% and fee income is only 15.4% of total revenue.
Analysts have raised price targets for NWG, signaling a potential upside of more than 56%. This reflects strong market confidence and a favorable outlook for the stock.
NWG has shown solid return on equity and positive net margins, with recent results indicating strong revenue and earnings growth. Management is guiding for continued growth in net interest income, underscoring the company’s solid financial health.
NWG is a leading dividend payer, offering a competitive yield that places it in the top 25% of dividend-paying stocks. The company has a history of dividend growth and maintains a sustainable payout ratio.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 30, 2026 | $0.52+2.0% vs $0.51 | $6.2B+0.6% vs $6.2B |
Q3 2026 Jul 31, 2026 | $0.54+20.0% vs $0.45 | $6.1B+2.8% vs $5.9B |
Q2 2026 May 1, 2026 | $0.48+9.1% vs $0.44 | $5.9B+2.4% vs $5.8B |
Q1 2026 Feb 13, 2026 | $0.46+21.1% vs $0.38 | $5.9B+3.6% vs $5.7B |
The FTSE 100 Index has pulled back over the past few days, falling from this month's high of 10,891 to its current level of 10,670. The retreat continued this week as top companies like Barclays released their earnings and crude oil prices jumped.
NatWest faces union backlash after asking staff to spend at least two days a week in office
Shares in Lloyds and NatWest fell Friday as investors reacted to reports of a possible increase in the U.K. bank-profit surcharge. The bank surcharge is reportedly expected to rise to 8% from 3% in Finance Minister John Healey's budget later this month.
Lloyds Banking Group PLC (LSE:LLOY) and NatWest Group PLC (LSE:NWG) were among the leading FTSE 100 fallers on Friday as investors reacted to expectations that Chancellor John Healey could raise taxes on banks in the 28 October budget. Lloyds fell 1.9% to 103.85p shortly after 8:30, while NatWest dropped 1.8% to 662.2p, with the sector facing the prospect of a higher surcharge on banking profits.
Benchmark NWG against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for NatWest Group plc (NWG)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $15.60 | $31.02B | 3.74 | 13.35% | 34.52% | 14.85% | 10.01% | |
| $87.06 | $299.2B | 10.85 | 5.38% | 35.7% | 13.94% | 3.79% | |
| $22.33 | $75.29B | 6.96 | -6.28% | 26.21% | 10.76% | 3.83% | |
| $5.09 | $73.88B | 9.43 | 157.3% | 9.67% | 12.79% | 3.43% | |
| $34.84 | $65.47B | 9.43 | 6.86% | 22.07% | 9.31% | — | |
| $31.82 | $90.75B | 12.05 | 2.26% | 16.52% | 13.15% | — |
NatWest Group plc (NWG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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NatWest Group plc (NWG) stock FAQ — growth, dividends, profitability & financials explained
NatWest Group plc (NWG) grew revenue by 13.0% over the trailing twelve months, compared with the twelve months before.
Yes. NatWest Group plc (NWG) earned $6.27B in net income over the trailing twelve months (a 34.5% net margin).
Yes. NatWest Group plc (NWG) pays a dividend that yields 10.01% at the current price, a high yield.
NatWest Group plc (NWG) had a return on equity (ROE) of 14.9% over the trailing twelve months. That is in line with the market's typical 10-15%.
NatWest Group plc (NWG) has a net interest margin (NIM) of 1.8%. NIM has been under pressure due to interest rate environment.
NatWest Group plc (NWG) has an efficiency ratio of 53.6%. This is excellent, indicating strong cost control.
