U.K. Bank NatWest Expects Income at Top End of Range

By Elena Vardon

NatWest expects revenue for the year to come in at the top end of its guided range after reporting a strong start to 2026.

The British high-street bank now expects total income excluding notable items for the year at the upper end of the 17.2 billion to 17.6 billion pounds ($23.40 billion-$23.94 billion) range, based on its updated expectations on interest rates and economic conditions.

Estimates taken from the latest consensus compiled by the company--which tends to issue conservative guidance and nudge it up as the quarters go by--pencil in a higher 17.97 billion-pound result for the period.

The London-listed lender upgraded its outlook after total income for the first quarter climbed 9.5% to 4.36 billion pounds for the three months ended March 31, a touch ahead of estimates of 4.305 billion pounds for the quarter. This was driven by continued growth in loan volumes and support from its structural hedge, a mechanism that locks in higher yields from previous years that mitigates the impact of interest rate cuts by the Bank of England.

Net interest income--the difference between what banks earn on loans and what they pay out on client deposits--contributed 3.39 billion pounds, it said, compared with consensus expectations of 3.41 billion pounds. Group net interest margin for the quarter improved to 2.47%, as expected.

Pretax profit for the period rose 12% to 2.03 billion pounds, topping expectations of a 1.94 billion-pound result, as top line growth outpaced slightly higher costs.

"We have started the year with positive momentum, underpinned by healthy customer activity," Chief Executive Paul Thwaite said. The bank confirmed the rest of its targets for the year.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

May 01, 2026 02:47 ET (06:47 GMT)