NWG

NatWest Group plc (NWG) Presents at Barclays 24th Annual Global Financial Services Conference Transcript

JP Morgan has reiterated its 'overweight' rating on European banks, arguing the sector remains in what it calls a "perfect environment" for growth despite early signs of the interest rate cycle turning. Analyst Kian Abouhossein said the sector benefits from a "sweet spot" of European Central Bank rates between 2% and 3%, alongside lending momentum supported partly by artificial intelligence capital expenditure.

NatWest Group PLC (LSE:NWG) was named a top pick by Citi on Wednesday, even as the investment bank cautioned that the current European banking bull run is nearing its final leg. The shares dipped 0.23% to 688.6p as Citi maintained an 'overweight' rating on the wider sector, observing that recent earnings upgrades have now broadened to other market sectors too.

NatWest Group continues to deliver impressive financial results, with the bank's return on tangible equity exceeding 20% last quarter. NWG's net interest margin is still expanding on the back of the mechanistic reinvestment of its deposits, offsetting tighter loan spreads. Despite fears that U.S. tariffs and the Middle East conflict would lead to a rise in loan losses, credit quality remains strong.

NatWest Group plc (NWG) Q2 2026 Earnings Call Transcript

The lender reported a 29% rise in pretax profit as it completed the acquisition of wealth manager Evelyn Partners.

NatWest Group PLC (LSE:NWG) upgraded its full-year guidance and brought forward plans for further share buybacks after first-half profit climbed on higher income and improved efficiency. Attributable profit rose to £3 billion in the six months to June, while operating profit before tax increased 20.4% to £4.3 billion.

NatWest reported a better than ​expected first-half operating ‌profit before tax of £4.3 billion ($5.8 billion)on Friday, as ​stronger revenue ​generation and resilient credit quality ⁠helped offset cost ​pressures.

The FTSE 100 Index was little changed this week as investors assessed the escalating UK-Iran crisis, the ongoing US earnings season, and a series of key UK economic releases. Market participants digested the latest jobs, inflation, and retail sales data for July, all of which could influence the Bank of England's next policy decision.

Citi has told investors that concerns over UK politics and Chinese regulation weighing on the country's banks should now begin to ease, allowing attention to return to what it calls impressive return trajectories. In its summer 2026 big-picture note on the sector, the bank said it remained constructive on UK bank fundamentals, citing net interest margin expansion and high-volume growth.