| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 4.5x | 17.8x | Top tier | |
Growth | 26 | 6.5% | 7.1% | Bottom tier | |
Quality | 83 | — | — | Top tier | |
Safety | 10 | — | — | Bottom tier | |
Capital Return | 60 | 2.05% | 2.12% | Around median | |
Momentum | 84 | 36.0% | 2.9% | Top tier | |
Sentiment | 77 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
NatWest Group plc operates as a British banking group organized across three businesses: retail banking, private banking and wealth management, and commercial and institutional banking. The group generates income from lending and interest margins on its deposit base, alongside non-interest income and asset management; in Q2 FY2026, total customer loans recorded quarterly growth of £9.7 billion, deposits grew by £2.8 billion, and assets under management and administration reached £130.6 billion after adding £71.7 billion from Evelyn Partners and deducting £4 billion following the sale of Cushion in May 2026.
In Q2 FY2026, income excluding notable items rose 5.4% to £4.4 billion, while total operating expenses increased 1.8% to £2.1 billion, reducing the cost-to-income ratio by one percentage point to 45.5%. Operating profit reached £2.3 billion, up 12.4%, profit attributable to ordinary shareholders reached £1.6 billion, and return on tangible equity was 21%, while impairment charges amounted to £140 million, or 13 basis points of loans.
The annual financial statements demonstrate the breadth of NatWest's earnings base; FY2025 revenue rose to $30.2 billion from $29.3 billion in FY2024, net income increased to $5.8 billion from $4.8 billion, and earnings per share rose to 0.674 from 0.531. At the H1 FY2026 level, customer-related assets and liabilities grew 13.4% after including Evelyn Partners, the Common Equity Tier 1 capital ratio was 13.2%, the average liquidity coverage ratio was 140%, and the loan-to-deposit ratio was 90%.
The analyst consensus is “Buy,” with an average price target of $18.2 and identical high and low targets at the same level, compared with a 52-week range of $13.56 to $19.42. The consensus target is approximately 6.3% below the 52-week range high, reflecting a valuation that does not assume a full return to the top of the range despite the elevated return on tangible equity and improved FY2026 guidance; conversely, the narrow target range and its proximity to the historical high are factors that limit the clarity of the re-rating potential.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Income excluding notable items rose 5.4% to £4.4 billion, supported by growth in customer-related assets and liabilities, wider margins, and a 15% increase in non-interest income. By contrast, total operating expenses grew only 1.8% to £2.1 billion, reducing the cost-to-income ratio to 45.5%. This resulted in operating profit growth of 12.4% to £2.3 billion, profit attributable to ordinary shareholders of £1.6 billion, and a return on tangible equity of 21%.
NatWest's acquisition of Evelyn Partners was completed by the H1 FY2026 results and increased the group's exposure to the UK wealth management market. The transaction added £71.7 billion to assets under management and administration, which reached £130.6 billion at the end of Q2 FY2026. At the same time, the group ended the period with a Common Equity Tier 1 capital ratio of 13.2% after the acquisition, and the transaction also partly contributed to the decline in primary liquidity during the first half.
Management raised its return on tangible equity forecast to above 19% for FY2026. It also expects income of approximately £17.9 billion excluding notable items and other operating expenses of approximately £8.5 billion. It further expects to generate more than 240 basis points of capital before distributions and the impact of Evelyn Partners, while the expected loan impairment rate remains below 25 basis points.
Automated analysis for informational purposes only — not investment advice.
Impairment charges amounted to £140 million in Q2 FY2026, equivalent to 13 basis points of loans. Management said it had not observed signs of new stress across its three businesses and maintained its forecast for a loan impairment rate below 25 basis points for FY2026. However, the bank retained a £284 million adjustment for economic uncertainty within total post-model adjustments of £316 million.
Customer deposits amounted to approximately £448 billion across the three businesses, and deposits represented more than 80% of the group's funding, while the loan-to-deposit ratio remained at 90% in H1 FY2026. The average liquidity coverage ratio reached 140%, and primary liquidity amounted to £152 billion within a total liquidity portfolio of £224.6 billion. NatWest Group issued the equivalent of £2.7 billion in benchmark funding instruments during the first half, alongside the equivalent of £3.7 billion from NatWest Markets.
Management expects Basel 3.1 to be implemented on 1 January 2027 and assumes an increase of approximately €10 billion in risk-weighted assets. The Common Equity Tier 1 capital ratio was 13.2% at the end of H1 FY2026, and the group targets operating at approximately 13%. Although the leverage proposals could reduce NatWest's minimum requirement by approximately 40 basis points to 3.9% if adopted, management explained that this would not provide an immediate benefit because the risk-weighted assets framework is the binding constraint.
