NatWest Group PLC (NWG.L): 2Q26 PBT Beat But With Weaker NIM, FY26 Guidance Increased For Evelyn, Earlier Buyback Restart

Research evidence excerpt

NatWest Group PLC (NWG.L): 2Q26 PBT Beat But With Weaker NIM, FY26 Guidance Increased For Evelyn, Earlier Buyback Restart

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31 Jul 2026 02:59:34 ET │ 11 pages

NatWest Group PLC (NWG.L)

2Q26 PBT Beat But With Weaker NIM, FY26 Guidance Increased For

Evelyn, Earlier Buyback Restart

CITI'S TAKE Buy

Price (30 Jul 26 16:30) £6.84 2Q26 underlying PBT (ex litigation, but including other 'notable items') of

Target price £8.20 £2.3bn is 12% ahead of company-compiled consensus. Revenues are 3%

ahead, with NII 1% light but non-NII 14% ahead, while opex is in-line and Expected share price return 19.9%

impairments 40% better. Group NIM was +2bps qoq but -2bps below Expected dividend yield 5.4%

consensus. CET1 ratio of 13.2% is -110bps qoq post Evelyn completion but Expected total return 25.3%

10bps ahead of consensus, and TBVPS of 359p is -10% qoq and 1% below Market Cap £54,466M

consensus. 2026 guidance has been increased, but seemingly only for the US$73,345M

the Evelyn acquisition, rather than any underlying improvement, with

Natwest now guiding to £17.9bn of revenues. We continue to think this

will be surpassed. Importantly buybacks will now restart earlier, from

FY26, which is as we expected (see here) but earlier than consensus and Andrew Coombs, CFAAC

should be well received. We have a Buy rating and Natwest is one of our +44-20-7986-4053

top-picks. andrew.coombs@citi.com

Canberk Benning

2026 Targets Updated For Evelyn — NatWest has updated FY26 guidance, but +44-20-7986-1046

seemingly only for the additional Evelyn contribution, rather than any underlying canberk.benning@citi.com

improvement. Consequently the revenue guidance is for slightly less than we and

Saifur Rahmanconsensus assumes, albeit we expect this is conservative. Updated targets are