NatWest Group (NYSE:NWG) Announces Earnings Results

NatWest Group (NYSE:NWG) released its earnings results on Friday. The company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.09, Zacks reports. The firm had revenue of $5.74 billion during the quarter, compared to analyst estimates 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 2.0%

NYSE NWG traded down $0.33 during trading hours on Friday, reaching $16.00. 6,179,556 shares of the company’s stock were exchanged, compared to its average volume of 3,362,762. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market capitalization of $64.06 billion, a price-to-earnings ratio of 9.30, a price-to-earnings-growth ratio of 0.59 and a beta of 0.96. The company’s 50-day moving average is $17.45 and its two-hundred day moving average is $15.76. NatWest Group has a one year low of $10.40 and a one year high of $19.35.

Trending Headlines about NatWest Group

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

• Positive Sentiment: Q4/FY25 beat and stronger profitability — NatWest reported $0.46 EPS vs. $0.37 consensus and revenue of $5.74B vs. $5.59B, with a healthy net margin and ROE; management guided for further income and profitability improvement. NatWest earnings and call transcript
• Positive Sentiment: Shareholder returns stepped up — Management announced a £750m share buyback for H1 2026 and signaled higher medium-term payout ambition, which supports income-focused investors. Proactive Investors: shareholder returns
• Positive Sentiment: Acquisition expands fee income and assets under management — The £2.7bn Evelyn Partners deal should more than double AUMA, diversifying revenue away from net interest income and supporting longer-term fee growth. Seeking Alpha: upgrade/dip worth buying
• Positive Sentiment: Analyst upgrade — Zacks moved NWG from Hold to Strong Buy, reflecting the better-than-expected results and outlook. Zacks Research upgrade
• Neutral Sentiment: Investor materials and guidance detail — Management provided slide deck and call materials outlining structural hedge benefits and guidance to grow hedge income through 2030; useful for modeling but not an immediate catalyst. Earnings presentation
• Negative Sentiment: Policy change on fossil-fuel lending triggered investor pushback — NatWest softened its fossil-fuel lending rules alongside results; activist group ShareAction called for opposing the chair’s re-election, creating ESG/governance risks that likely pressured the stock despite the beat. Reuters: fossil-fuel lending rules softened

Analyst Upgrades and Downgrades

A number of brokerages recently commented on NWG. Barclays reaffirmed an “equal weight” rating on shares of NatWest Group in a research note on Wednesday, January 7th. Zacks Research upgraded NatWest Group from a “hold” rating to a “strong-buy” rating in a report on Tuesday. Weiss Ratings reaffirmed a “buy (b)” rating on shares of NatWest Group in a research note on Thursday, January 22nd. Finally, The Goldman Sachs Group reiterated a “neutral” rating on shares of NatWest Group in a research report on Thursday, December 4th. One investment 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 given a Sell rating to the company. Based on data from MarketBeat.com, NatWest Group has an average rating of “Moderate Buy”.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in NWG. Larson Financial Group LLC raised its holdings in shares of NatWest Group by 427.7% during the third quarter. Larson Financial Group LLC now owns 1,831 shares of the company’s stock worth $26,000 after acquiring an additional 1,484 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in NatWest Group by 209.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,482 shares of the company’s stock worth $43,000 after purchasing an additional 1,679 shares in the last quarter. CIBC Private Wealth Group LLC raised its stake in shares of NatWest Group by 75.6% in the 4th quarter. CIBC Private Wealth Group LLC now owns 4,094 shares of the company’s stock valued at $72,000 after purchasing an additional 1,762 shares during the period. Brown Brothers Harriman & Co. lifted its holdings in shares of NatWest Group by 64.7% in the third quarter. Brown Brothers Harriman & Co. now owns 4,267 shares of the company’s stock valued at $60,000 after purchasing an additional 1,676 shares in the last quarter. Finally, Geneos Wealth Management Inc. lifted its holdings in shares of NatWest Group by 35.2% in the first quarter. Geneos Wealth Management Inc. now owns 4,594 shares of the company’s stock valued at $55,000 after purchasing an additional 1,195 shares in the last quarter. Institutional investors and hedge funds own 1.27% of the company’s stock.

NatWest Group Company Profile

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.