NatWest Group plc (NWG) has published its Q3 2026 Interim Management Statement, reporting attributable profit of £1.5 billion and a Return on Tangible Equity (RoTE) of 21.6% for the quarter ended 30 September 2026. The UK-focused retail, commercial and private banking group also recorded a year-to-date RoTE of 20.2%, which chief executive Paul Thwaite described as "sector-leading". Total customer assets and liabilities surpassed £1 trillion for the first time, reaching £1,002.6 billion. Investors will be watching the group's reaffirmed full-year outlook and its expectation that RWAs will be around £210 billion on 1 January 2027 following the Basel 3.1 implementation.

Key Points

  • NatWest Group plc (NWG), a major UK retail, commercial and private banking group serving more than 20 million customers
  • Q3 2026 attributable profit of £1.5 billion with RoTE of 21.6% and earnings per share of 19.3 pence
  • CET1 ratio rose 30 basis points to 13.5%; cost:income ratio (excl. litigation and conduct) of 45.7% year to date, down 2.1 percentage points year on year
  • Investors should monitor the anticipated Bank of England base rate rise to 4% in Q4 2026 and Basel 3.1 RWA impacts from January 2027

NatWest Q3 2026 Income and Profitability: Total Income Rises 7.1% Year on Year to £4.64bn

Total income for Q3 2026 reached £4,640 million, up 7.1% compared with Q3 2025 and up 3.0% against Q2 2026. Net interest income grew 8.9% year on year to £3,559 million, supported by net interest margin expanding 13 basis points to 2.50% versus the prior-year quarter. Non-interest income reached £1,081 million, up 1.6% year on year. Operating profit before tax was £2,225 million. NatWest noted that excluding notable items, total income was £138 million higher than Q2 2026, reflecting the Evelyn Partners acquisition, deposit margin expansion and one additional day in the quarter.

Customer Assets and Liabilities Cross £1 Trillion as Lending and Deposits Grow Across All Three Divisions

NatWest's customer assets and liabilities reached £1,002.6 billion at 30 September 2026, an increase of £15.7 billion, or 1.6%, in the quarter. In Retail Banking, which serves more than 19 million customers, net loans grew by £1.4 billion and deposits by £3.1 billion, with the group exceeding its 2026 first-time buyer lending target of £10 billion. Commercial and Institutional net loans grew by £6.7 billion in the quarter. Private Banking and Wealth Management delivered £1.0 billion of AUM net inflows, equivalent to 3.4% of opening balances annualised, with total assets under management and administration reaching £132.4 billion following the Evelyn Partners integration.

NatWest CET1 Ratio Rises to 13.5% as RWA Management Actions Deliver £1.8bn of Benefits

Capital generation pre-distributions was 71 basis points in Q3 2026, supported by £1.8 billion of risk-weighted asset management actions. The Common Equity Tier 1 ratio increased by 30 basis points in the quarter to 13.5%, while the average Liquidity Coverage Ratio stood at 137%, providing £40.9 billion of headroom above the regulatory minimum. The loan impairment rate was 21 basis points year to date, although the Q3 net impairment charge of £277 million was £137 million higher than Q2 2026, primarily reflecting the non-repeat of prior-quarter releases and higher Stage 3 charges. NatWest retained post model adjustments of £0.3 billion, reflecting continued economic uncertainty.

NatWest Reaffirms Full-Year Outlook and Flags Basel 3.1 RWA Impact of Around £210bn from January 2027

The group reaffirmed the outlook provided at its H1 2026 results, with the addition that it now expects risk-weighted assets to be approximately £210 billion on 1 January 2027, incorporating the impact of Basel 3.1 implementation. NatWest also disclosed it now assumes the Bank of England base rate will rise by 25 basis points to 4% in Q4 2026, a factor relevant to net interest income forecasting. Gross cost savings of approximately £420 million have been achieved year to date. The announcement cautions that all guidance is subject to change based on interest rate movements, economic conditions and regulatory developments.