$NWG · NatWest Group plc
NatWest Group reported Q3 2026 attributable profit of £1,532M (19.3p EPS) on total income of £4,640M, up 7.1% YoY. Net interest margin improved to 2.50%. Impairment losses jumped to £277M from £140M in Q2. The CET1 ratio rose to 13.5%, and the full-year outlook was reaffirmed with RWAs expected around £210B on 1 January 2027 including Basel 3.1.
- Q3 attributable profit £1,532M vs £1,603M QoQ (-4.4%) and £1,598M YoY (-4.1%)
- Net interest income £3,559M, up 1.8% QoQ and 8.9% YoY; NIM rose 1bp QoQ to 2.50%
- Impairment losses surged to £277M from £140M QoQ (+97.9%) and £153M YoY (+81.0%)
- CET1 ratio improved 30bps QoQ to 13.5%; capital generation pre-distributions was 71bps
- CAL reached £1,002.6B, up £15.7B in the quarter; full-year RoTE outlook reaffirmed at 20.2% YTD basis
Extended-hours trading shows NWG at $15.69, down 7.71% vs the $17.00 regular close. The sharp after-hours selloff likely reflects the near-doubling of impairment losses QoQ (£277M vs £140M) and a 4.4% sequential profit decline, overshadowing the reaffirmed outlook and strong NIM.
The near-doubling of impairment losses quarter-over-quarter signals potential credit-cycle turning, even as NatWest maintains sector-leading returns and reaffirms its full-year outlook.
NatWest's 20.2% YTD RoTE and 2.50% NIM remain sector-leading among UK banks. The impairment spike mirrors early-cycle caution seen across European lenders, though NatWest's 24bps loan impairment rate remains below historical norms. The Evelyn Partners integration adds wealth-management diversification versus pure-play UK retail banks.
Impairment losses nearly doubled QoQ to £277M (24bps loan impairment rate vs 13bps in Q2), driven by higher Stage 3 charges and non-repeat of prior releases. Management retained £0.3B in post-model adjustments citing continued economic uncertainty. The Bank of England base rate is assumed to rise 25bps to 4% in Q4 2026, introducing rate-path sensitivity.