What happened
NatWest Group plc (NYSE: NWG) grew loans and deposits in the third quarter of 2026, according to its interim management statement. Net loans to customers excluding central items rose £8.1 billion to £414.3 billion. Customer deposits excluding central items rose £5.8 billion to £453.4 billion.
Attributable profit was £1.5 billion and return on tangible equity was 21.6%. Chief Executive Paul Thwaite called it another strong performance.
NatWest also issued $1.0 billion of Senior Callable Fixed Rate Notes on Oct. 13 at a 5.908% coupon. The notes settled on Oct. 16.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Attributable profit, Q3 2026 | £1.5 billion | SEC 6-K | |
| Return on Tangible Equity, Q3 2026 (vs. Q3 2025) | 21.6% | from 22.3%, -0.7 percentage points | SEC 6-K |
| Impairment losses, Q3 2026 (vs. Q3 2025) | £277 million | from £153 million, +81.0% | SEC 6-K |
| CET1 ratio at Sept. 30, 2026 (change vs. June 30) | 13.5% | +30 basis points | SEC 6-K |
| Net loans to customers excl. central items (change vs. June 30) | £414.3 billion | +2.0% | SEC 6-K |
| Senior Callable Fixed Rate Notes issued Oct. 13, 2026 | $1.0 billion | SEC 6-K |
Read more: NatWest Group (NWG) company research
Why it matters
Lending grew faster than deposits, yet funding held steady. Loans rose 2.0% from the end of June and deposits rose 1.3%. The loan to deposit ratio stayed at 90%.
Deposits grew in both main customer groups. Retail balances rose £3.1 billion on savings, including ISAs, fixed-term balances and NatWest Boxed. Commercial Institutional deposits rose £3.0 billion.
Net interest income rose 1.8% from Q2 to £3.56 billion. Net interest margin edged up to 2.50% from 2.49%, despite a charge of around £35 million after a review of customer repayment behaviour.
Credit is the weak spot. The impairment charge rose to £277 million from £140 million in Q2. The bank ties this to the non-repeat of Q2 releases and higher Stage 3 charges. Operating profit before tax slipped 2.6% from Q2 to £2.23 billion.
Capital still built. The CET1 ratio rose 30 basis points to 13.5%.
OptimistFi has argued that NatWest's earnings depend on sticky deposits and controlled credit losses. Deposit growth and a firmer margin support the first point. The jump in impairments tests the second.
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What's next
NatWest reaffirmed the outlook from its first-half 2026 results. It expects risk-weighted assets of around £210 billion on Jan. 1, 2027, including the impact of Basel 3.1. It assumes the Bank of England base rate rises 25 basis points to 4% in the fourth quarter.
The next test is the Q4 2026 report. An impairment charge that falls back toward the Q2 level, with deposits still growing, would strengthen the case. A further rise in the charge would weaken it.
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Sources
- NatWest Group Q3 2026 Interim Management Statement (SEC Form 6-K) — Form 6-K furnishing the company's Q3 2026 announcement, including the $1.0 billion Senior Callable Fixed Rate Notes issuance.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
