NatWest Plc shares rose sharply today, gaining 4.0% after the bank published its H1 2026 interim results before the London market opened. The report showed operating profit before tax of £4.3 billion for the first half, an increase of 20% from £3.6 billion a year earlier, and above the roughly £4 billion analysts had forecast.
The group recorded attributable profit of £3.0 billion for H1 2026. Return on Tangible Equity stood at 19.7% and earnings per share were 38.1 pence, a 23.3% increase compared with the prior year period. Management announced an interim dividend of 12 pence per share.
In addition to the dividend, NatWest said it would accelerate the timing of its next share buyback announcement by six months. The bank will now reveal that buyback alongside its full-year 2026 results, a move that increases near-term clarity on capital returns and resonated with income-focused investors.
Analyst commentary provided further support for the share price move. UBS reiterated a Buy rating and maintained a price target of GBP 7.70, highlighting that second-quarter pre-tax profit excluding notable items was about 7% above consensus, and rose to roughly 10% above consensus when litigation and conduct items were included. Earlier in the month, Keefe, Bruyette & Woods had upgraded the stock from hold to moderate buy, adding to a constructive analyst backdrop around the print.
On the group-level revenue mix, NatWest Markets reported H1 2026 profit after tax of £77 million, down from £89 million in the prior-year period. Total income at the markets arm was £792 million. That result reflected weaker fixed income revenues, partly offset by gains in foreign exchange and capital markets.
Despite the softer investment banking contribution, the bank's retail and commercial divisions delivered stronger performance that outweighed the markets drag. The broader market environment was supportive: US equities traded higher with the S&P 500 up 0.5% and the Nasdaq advancing 1.1%, contributing to a risk-on tone that helped lift financial stocks globally.
Taken together - an earnings beat, firmer capital return timing and favorable analyst re-ratings - NatWest shares climbed to an intraday 52-week high of 711.6 pence, a level not seen in the past year, indicating that investors have materially adjusted expectations for the bank’s full-year 2026 trajectory.
Market reaction snapshot
- Share price: up 4.0% on the day following the H1 report.
- Operating profit before tax: £4.3 billion, +20% year-on-year.
- Attributable profit: £3.0 billion; RoTE: 19.7%; EPS: 38.1 pence, +23.3% year-on-year.
- Interim dividend: 12 pence per share; share buyback announcement moved forward by six months.