NatWest Stock Hits 52-Week High on Profit Beat and Accelerated Buyback Plans

Shares of NatWest Group (NWG) surged to a 52-week high on Friday after the British lender reported first-half profits that surpassed analyst expectations and announced an accelerated timeline for its share buyback program.

Earnings Beat and Capital Returns

NatWest announced a first-half 2026 operating profit before tax of £4.3 billion, a 20% increase from the £3.6 billion reported in the same period a year earlier. This figure comfortably beat the consensus analyst forecast of approximately £4 billion. The bank's strong performance was reflected across several key metrics:

• Attributable profit: £3.0 billion
• Return on Tangible Equity (RoTE): 19.7%
• Earnings per share (EPS): 38.1 pence, a 23.3% year-over-year increase.

Investors also reacted positively to the bank's enhanced capital return plans. NatWest declared an interim dividend of 12 pence per share and, in a sign of confidence, brought forward its next share buyback announcement by six months. The program will now be unveiled alongside its full-year 2026 results.

Market Reaction and Analyst Views

Ad

The combination of a decisive earnings beat and shareholder-friendly capital returns propelled NatWest's stock up by as much as 4.0% in London trading, reaching an intraday high of 711.6 pence. The move confirmed a positive sentiment that was already building among analysts.

Following the results, UBS reiterated its Buy rating and a GBP 7.70 price target on the stock. The investment bank noted that NatWest's second-quarter pre-tax profit, excluding notable items, was 7% above the market consensus. This followed an upgrade earlier in the month from Keefe, Bruyette & Woods, which had moved the stock from "hold" to "moderate buy."

Divisional Performance

The group's robust results were driven by its core retail and commercial banking divisions. This strength successfully overshadowed a weaker performance in its investment banking unit, NatWest Markets, which saw its first-half profit decline to £77 million from £89 million a year prior, primarily due to lower fixed income revenues.