NatWest Group (NYSE:NWG) Announces Earnings Results, Beats Estimates By $0.08 EPS

NatWest Group (NYSE:NWG) announced its quarterly earnings data on Friday. The company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.08, Zacks reports. The company had revenue of $5.74 billion for the quarter, compared to analysts’ expectations of $5.59 billion. NatWest Group had a net margin of 18.18% and a return on equity of 12.77%.

Here are the key takeaways from NatWest Group’s conference call:

• Delivered a strong FY2025: income (ex-notables) up 12% to £16.4bn, operating profit £7.7bn, attributable profit £5.5bn, EPS +27%, cost‑income ratio down to 48.6% and total shareholder distributions of £4.1bn.
• 2026 guidance and 2028 targets show clear growth and return ambitions — 2026: income (ex-notables) £17.2–17.6bn, opex ~£8.2bn, impairment <25bps, ~200bps capital generation and ROTE >17%; 2028 targets include CAL growth >4% p.a., cost‑income <45% and ROTE >18%.
• Announced acquisition of Evelyn Partners (adds ~£69bn AUMA) to scale private banking/wealth to ~20% of the group, with management expecting material revenue synergies (~£700m+), ~£100m run‑rate cost synergies and accretion to returns by year three (day‑one CET1 impact ≈130bps).
• Management expects a material hedge income tailwind from its product and equity structural hedges — roughly +£1.5bn in 2026 vs 2025 and further uplift into 2027–2030 — supporting margin expansion under stated reinvestment assumptions.
• Regulatory/RWA headwinds remain — implementation of Basel 3.1 is expected to increase RWAs by ~£10bn from Jan 2027, raising nominal CET1 requirements and creating potential pressure on capital/distribution flexibility despite planned capital generation.

NatWest Group Stock Down 1.6%

Shares of NYSE:NWG opened at $16.07 on Friday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $64.33 billion, a P/E ratio of 8.98, a P/E/G ratio of 0.57 and a beta of 0.96. NatWest Group has a 52-week low of $10.40 and a 52-week high of $19.35. The stock’s fifty day simple moving average is $17.44 and its 200-day simple moving average is $15.79.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Barclays reiterated an “equal weight” rating on shares of NatWest Group in a report on Wednesday, January 7th. Zacks Research raised shares of NatWest Group from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 10th. The Goldman Sachs Group reissued a “neutral” rating on shares of NatWest Group in a research note on Thursday, December 4th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of NatWest Group in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, NatWest Group has an average rating of “Moderate Buy”.

More NatWest Group News

Here are the key news stories impacting NatWest Group this week:

• Positive Sentiment: Q4 beat — NatWest reported $0.46 EPS vs. $0.37 expected and revenue of $5.74B vs. $5.59B consensus, with robust net margin and ROE that underline the current earnings strength. Read More.
• Positive Sentiment: Profit and targets raised — Annual profit rose ~24% and management lifted medium‑term performance targets while guiding for further income and profitability growth, supporting higher future cash flow expectations. Read More.
• Positive Sentiment: Shareholder returns boosted — NatWest announced a fresh £750m share buyback for H1 2026 and signalled increased payouts, which directly supports returns to investors. Read More.
• Positive Sentiment: Structural hedge and acquisition add durability — Management says the bank’s structural hedge will keep boosting net interest income through 2030, and the £2.7bn Evelyn Partners deal will more than double AUMA and diversify fee income away from NII. These reduce earnings cyclicality. Read More.
• Positive Sentiment: Analyst upgrade — Zacks moved NWG from Hold to Strong Buy, reflecting uplift in the brokerage view after the print and guidance. Read More.
• Neutral Sentiment: Investor materials available — Management hosted the earnings call and published an analyst slide deck and presentation, useful for digging into guidance and hedge assumptions. Read More. / Read More.
• Negative Sentiment: ESG backlash — NatWest softened its fossil‑fuel lending restrictions alongside results, prompting activist ShareAction to urge investors to oppose the chair’s re‑election; this creates reputational and governance risk that can pressure the share price, especially with sustainable investors. Read More.

Institutional Trading of NatWest Group

Hedge funds and other institutional investors have recently bought and sold shares of the company. Parkside Financial Bank & Trust lifted its stake in shares of NatWest Group by 35.5% during the 4th quarter. Parkside Financial Bank & Trust now owns 4,440 shares of the company’s stock worth $78,000 after purchasing an additional 1,163 shares during the period. Marshall Wace LLP purchased a new position in NatWest Group during the fourth quarter worth about $561,000. AlTi Global Inc. acquired a new stake in NatWest Group in the 4th quarter worth about $178,000. Commerce Bank grew its holdings in NatWest Group by 43.7% in the 4th quarter. Commerce Bank now owns 22,541 shares of the company’s stock valued at $394,000 after buying an additional 6,860 shares during the period. Finally, Smartleaf Asset Management LLC increased its stake in shares of NatWest Group by 14.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 42,462 shares of the company’s stock valued at $747,000 after acquiring an additional 5,392 shares during the last quarter. 1.27% of the stock is owned by hedge funds and other institutional investors.

About NatWest Group

NatWest Group plc is a major UK-based banking and financial services group headquartered in Edinburgh, Scotland. The company traces its roots to the Royal Bank of Scotland, founded in 1727, and adopted the NatWest Group name in 2020 as part of a strategic refocus on its NatWest brand. NatWest Group is listed on the London Stock Exchange and also has American depositary shares trading on the New York Stock Exchange under the symbol NWG.

The group provides a broad range of banking services across retail, private, commercial, corporate and institutional segments.