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.
NatWest Group plc (NWG) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Net Interest Income | 13.62B | 12.83B | 11.28B | 11.05B | 9.84B | 7.54B | 7.39B | 7.8B | 8.66B | 8.99B | 8.71B | 8.77B | 9.26B | 9.02B | 9.36B | 12.3B | 13.78B | 13.39B | 15.48B | 12.07B | 10.6B | 9.92B | 9.07B | 8.3B | 7.85B | 6.85B | 5.29B | 0 | 0 | 0 | 0 |
| NII Growth % | 54.41% | 13.78% | 2.05% | 12.26% | 30.62% | 1.98% | -5.26% | -9.9% | -3.68% | 3.2% | -0.67% | -5.3% | 2.67% | -3.62% | -23.95% | -10.73% | 2.94% | -13.53% | 28.28% | 13.9% | 6.84% | 9.34% | 9.28% | 5.76% | 14.65% | 29.51% | - | - | - | - | - |
| Net Interest Margin % | 1.83% | 1.8% | 1.59% | 1.6% | 1.37% | 0.96% | 0.92% | 1.08% | 1.25% | 1.22% | 1.09% | 1.08% | 0.88% | 0.88% | 0.71% | 0.82% | 0.95% | 0.79% | 0.7% | 0.66% | 1.22% | 1.28% | 1.54% | 1.83% | 1.78% | 1.86% | 1.65% | 0% | 0% | 0% | 0% |
| Interest Income | 26.1B | 25.7B | 25.19B | 21.03B | 12.64B | 9.23B | 9.71B | 11.13B | 11.05B | 11.03B | 11.26B | 11.93B | 13.08B | 14.49B | 16.08B | 21.04B | 22.35B | 26.31B | 42.19B | 32.25B | 24.69B | 21.33B | 16.63B | 14B | 13.56B | 14.42B | 13.22B | 0 | 0 | 0 | 0 |
| Interest Expense | 12.49B | 12.87B | 13.91B | 9.98B | 2.79B | 1.7B | 2.32B | 3.33B | 2.39B | 2.05B | 2.55B | 3.16B | 3.82B | 5.47B | 6.73B | 8.73B | 8.57B | 12.92B | 26.71B | 20.18B | 14.09B | 11.41B | 7.56B | 5.7B | 5.71B | 7.58B | 7.93B | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 140.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 4.09B | 3.78B | 3.38B | 3.73B | 3.51B | 2.81B | 3.37B | 3.92B | 4.68B | 3.73B | 3.66B | 4.16B | 5.41B | 7.01B | 4.79B | 10.61B | 12.16B | 15.41B | 3.13B | 17.44B | 17.11B | 16.28B | 14.82B | 10.98B | 8.97B | 7.71B | 5.71B | 0 | 0 | 0 | 0 |
| Non-Interest Income % | 23.08% | 22.76% | 23.05% | 25.26% | 26.29% | 27.13% | 31.33% | 33.45% | 35.12% | 29.33% | 29.58% | 32.2% | 36.86% | 43.73% | 33.88% | 46.3% | 46.88% | 53.51% | 16.82% | 59.1% | 61.75% | 62.14% | 62.03% | 56.95% | 53.32% | 52.97% | 51.92% | - | - | - | - |
| Total Net Revenue | 17.7B | 16.61B | 14.65B | 14.78B | 13.35B | 10.34B | 10.76B | 11.72B | 13.34B | 12.72B | 12.37B | 12.93B | 14.66B | 16.02B | 14.15B | 22.91B | 25.94B | 28.8B | 18.61B | 29.51B | 27.7B | 26.2B | 23.89B | 19.28B | 16.82B | 14.56B | 10.99B | 0 | 0 | 0 | 0 |
| Revenue Growth % | 14.29% | 13.35% | -0.89% | 10.72% | 29.13% | -3.9% | -8.18% | -12.16% | 4.92% | 2.83% | -4.37% | -11.81% | -8.49% | 13.25% | -38.25% | -11.69% | -9.91% | 54.73% | -36.93% | 6.52% | 5.76% | 9.65% | 23.9% | 14.67% | 15.5% | 32.41% | - | - | - | - | - |
| Non-Interest Expense | 9.11B | 8.9B | 8.46B | 8.61B | 8.22B | 6.5B | 11.31B | 7.74B | 9.98B | 10.48B | 16.45B | 15.63B | 12.02B | 24.87B | 20.2B | 24.31B | 26.1B | 31.45B | 44.3B | 19.68B | 18.52B | 18.26B | 16.61B | 13.21B | 12.05B | 10.31B | 8.03B | 361M | 383M | 224M | 179M |
| Efficiency Ratio | 51.46% | 53.59% | 57.72% | 58.21% | 61.56% | 62.82% | 105.14% | 66.01% | 74.82% | 82.39% | 133.01% | 120.9% | 81.98% | 155.22% | 142.77% | 106.09% | 100.59% | 109.19% | 238.03% | 66.68% | 66.84% | 69.7% | 69.51% | 68.49% | 71.67% | 70.79% | 72.99% | - | - | - | - |
| Operating Income | 8.45B | 7.71B | 6.2B | 6.18B | 5.13B | 3.84B | -553M | 3.98B | 3.36B | 2.24B | -4.08B | -2.7B | 2.64B | -8.85B | -6.05B | -1.4B | -154M | -2.65B | -25.69B | 9.83B | 9.19B | 7.94B | 7.28B | 6.08B | 4.76B | 4.25B | 2.97B | 1.22B | 981M | 729M | 687M |
| Operating Margin % | 47.75% | 46.41% | 42.28% | 41.79% | 38.44% | 37.18% | -5.14% | 33.99% | 25.18% | 17.61% | -33.01% | -20.9% | 18.02% | -55.22% | -42.77% | -6.09% | -0.59% | -9.19% | -138.03% | 33.32% | 33.16% | 30.3% | 30.49% | 31.51% | 28.33% | 29.21% | 27.01% | - | - | - | - |
| Operating Income Growth % | - | 24.42% | 0.28% | 20.38% | 33.51% | 795.12% | -113.88% | 18.58% | 50.02% | 154.85% | -51.02% | -202.27% | 129.87% | -46.22% | -333.52% | -806.49% | 94.18% | 89.7% | -361.3% | 7.03% | 15.75% | 8.95% | 19.88% | 27.57% | 12.02% | 43.16% | 144.04% | 24.06% | 34.57% | 6.11% | 14.5% |
| Pretax Income | 8.45B | 7.71B | 6.2B | 6.18B | 5.13B | 3.84B | -553M | 3.98B | 3.36B | 2.24B | -4.08B | -2.7B | 2.64B | -8.85B | -6.05B | -1.4B | -154M | -2.65B | -25.69B | 9.83B | 9.19B | 7.94B | 7.28B | 6.08B | 4.76B | 4.25B | 2.97B | 1.21B | 1B | 760M | 695M |
| Pretax Margin % | 47.75% | 46.41% | 42.28% | 41.79% | 38.44% | 37.18% | -5.14% | 33.99% | 25.18% | 17.61% | -33.01% | -20.9% | 18.02% | -55.22% | -42.77% | -6.09% | -0.59% | -9.19% | -138.03% | 33.32% | 33.16% | 30.3% | 30.49% | 31.51% | 28.33% | 29.21% | 27.01% | - | - | - | - |
| Income Tax | 2.11B | 1.87B | 1.47B | 1.43B | 1.27B | 996M | 74M | 439M | 1.21B | 731M | 1.17B | 23M | 1.91B | 186M | 156M | 1.07B | 703M | -429M | -2.17B | 2.04B | 2.69B | 2.38B | 2B | 1.89B | 1.56B | 1.54B | 1.03B | 361M | 286M | 219M | 191M |
| Effective Tax Rate % | 24.9% | 24.31% | 23.65% | 23.21% | 24.84% | 25.91% | -13.38% | 11.02% | 35.96% | 32.65% | -28.56% | -0.85% | 72.23% | -2.1% | -2.58% | -77.01% | -456.49% | 16.21% | 8.43% | 20.79% | 29.27% | 29.96% | 27.39% | 31.07% | 32.67% | 36.15% | 34.78% | 29.81% | 28.57% | 28.82% | 27.48% |
| Net Income | 6.35B | 5.83B | 4.8B | 4.64B | 3.59B | 3.27B | -372M | 3.54B | 2.16B | 1.47B | -5.26B | -1.59B | -2.77B | -8.6B | -5.75B | -2.15B | -1B | -2.67B | -23.71B | 7.55B | 6.39B | 5.5B | 5.11B | 3.98B | 3.07B | 2.63B | 0 | 856M | 695M | 510M | 496M |
| Net Margin % | 35.87% | 35.11% | 32.77% | 31.36% | 26.88% | 31.61% | -3.46% | 30.2% | 16.18% | 11.58% | -42.52% | -12.33% | -18.9% | -53.65% | -40.67% | -9.39% | -3.86% | -9.28% | -127.38% | 25.58% | 23.08% | 21% | 21.4% | 20.63% | 18.28% | 18.03% | 0% | - | - | - | - |
| Net Income Growth % | 20.99% | 21.43% | 3.58% | 29.17% | 9.82% | 978.49% | -110.51% | 63.92% | 46.57% | 128.01% | -229.86% | 42.48% | 67.77% | -49.41% | -167.5% | -114.89% | 62.54% | 88.73% | -414.08% | 18.08% | 16.22% | 7.61% | 28.51% | 29.41% | 17.1% | - | -100% | 23.17% | 36.27% | 2.82% | 24.62% |
| Net Income (Continuing) | 6.35B | 5.83B | 4.73B | 4.74B | 3.86B | 2.85B | -627M | 3.54B | 2.15B | 1.51B | -5.25B | -2.73B | 734M | -9.04B | -6.21B | -2.47B | -857M | -2.22B | -23.52B | 7.79B | 6.5B | 5.56B | 5.29B | 4.19B | 3.21B | 2.71B | 1.89B | 856M | 695M | 510M | 496M |
| EPS (Diluted) | 3.15 | 2.70 | 2.12 | 1.96 | 1.36 | 1.08 | -0.34 | 1.12 | 0.56 | 0.27 | -2.56 | -0.72 | -1.32 | -3.44 | -2.32 | -0.80 | -0.40 | -0.96 | -8.52 | 23.44 | 7.96 | 20.76 | 19.20 | 9.40 | 8.32 | 1.00 | 0.80 | 0.31 | 0.25 | 0.19 | 0.18 |
| EPS Growth % | 9.24% | 27.36% | 8.16% | 44.12% | 25.93% | 417.65% | -130.36% | 100% | 107.41% | 110.55% | -255.56% | 45.45% | 61.63% | -48.28% | -190% | -100% | 58.33% | 88.73% | -136.35% | 194.47% | -61.66% | 8.13% | 104.26% | 12.98% | 732% | 25% | 158.06% | 24% | 31.58% | 5.56% | 28.57% |
| EPS (Basic) | - | 2.72 | 2.12 | 1.96 | 1.36 | 1.08 | -0.34 | 1.12 | 0.56 | 0.27 | -2.56 | -0.72 | -1.32 | -3.44 | -2.32 | -0.80 | -0.22 | -0.96 | -8.52 | 23.68 | 8.00 | 20.88 | 19.40 | 9.48 | 8.44 | 1.00 | 0.80 | 0.31 | 0.25 | 0.19 | 0.18 |
| Diluted Shares Outstanding | 2.01B | 2.03B | 2.13B | 2.3B | 2.48B | 2.71B | 2.81B | 2.81B | 2.8B | 2.77B | 2.73B | 2.69B | 2.66B | 2.6B | 2.58B | 2.51B | 2.49B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B |
Quick answers to the most common questions about buying NWG stock.
For fiscal year 2025, NatWest Group plc (NWG) reported total revenue of $16.61B.
NatWest Group plc (NWG) is profitable, generating $5.83B in net income for the fiscal year ending 2025 with a net profit margin of 19.8%.
NatWest Group plc (NWG) reported an operating income of $7.71B, resulting in an operating profit margin of 26.1%. This margin reflects the operational efficiency of the business before interest and taxes.
NatWest Group plc (NWG) generated $16.61B in gross profit for the year, representing a gross profit margin of 56.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Rate cut margin compression
NII Momentum Continues
Net interest income rose 13.6% YoY in 2026Q2 to $3.5B, according to reported figures, driven by loan growth and repricing benefits.
The sequential increase from $3.4B in 2026Q1 to $3.5B in 2026Q2, coupled with a 13.6% YoY growth rate, suggests that the bank is still benefiting from the lagged repricing of its asset book. However, with the Bank of England potentially nearing peak rates, the pace of NII expansion may moderate as deposit costs catch up. Investors should monitor the trajectory of deposit migration into higher-yielding products, which could compress margins.
NIM Stability Amid Rate Peak
Net interest margin held at 0.5% in 2026Q2, as per financial statements, with asset yields offsetting rising funding costs.
The stability of NIM at 0.5% across the last two quarters, despite a higher rate environment, indicates that the bank is managing its deposit costs effectively. However, the absolute level remains low compared to peers, reflecting the high proportion of mortgage assets and the competitive UK deposit market. If the Bank of England cuts rates, NIM could come under pressure unless the structural hedge provides a buffer.
Efficiency Gains Support Returns
Efficiency ratio improved to 29.0% in 2026Q2 from 31.5% in 2026Q1, as per reported data, indicating strong cost discipline.
The improvement in the efficiency ratio, despite a slight increase in non-interest expenses, suggests that revenue growth is outpacing cost growth. This operating leverage is a key driver of the 14.2% ROE, which is above the cost of equity. However, the bank's high fixed-cost base, including branch network and IT investments, may limit further improvements unless digital transformation yields tangible savings.
Benign Provisions Mask Risks
Provision expense was $140.7M in 2026Q2, the only quarter with charges in the past two years, based on reported figures.
The near-zero provisioning across most quarters suggests that credit conditions remain benign, but this may not fully reflect the emerging risks in the UK SME and consumer portfolios. The single quarter with provisions could indicate the beginning of a normalization trend. Given the bank's concentration in the UK, any deterioration in the macroeconomic outlook could lead to a sharp increase in impairment charges, which would pressure earnings.
Fee Income Diversification
Non-interest income rose to $1.2B in 2026Q2, with fee income representing 15.4% of total revenue, as per financial statements.
The increase in fee income, particularly in wealth management and capital markets activities, provides some diversification away from net interest income. However, the reliance on transaction-based fees from NatWest Markets introduces volatility, as seen in the fluctuation of non-interest income across quarters. The bank's ability to grow recurring fee streams, especially in private banking, will be crucial to offset potential NIM compression.
Rate Cuts Could Squeeze Margins
With NIM at 0.5% and a high sensitivity to UK rates, a 25bp cut could reduce NII by ~$200M annually, based on reported figures.
The bank's heavy reliance on net interest income, which constitutes over 80% of total revenue, makes it highly sensitive to interest rate movements. While the structural hedge provides some protection, the current low NIM leaves little room for error. If the Bank of England begins cutting rates, the bank may struggle to maintain profitability unless it can offset with higher fee income or further cost reductions. The skipped guidance in the latest earnings call adds uncertainty to the outlook.