NatWest first-half profit jumps 20% to £4.3bn

NatWest has reported a robust rise in first-half profits, becoming the latest major UK lender to exceed expectations and fueling a debate over whether the banking sector should face higher taxation. The bank posted an operating pretax profit of 4.3 billion pounds for the six months ending June 2026, a 20 percent increase from the same period in 2025. This figure surpassed analyst forecasts, which had ranged from 4 billion to 4.1 billion pounds.

The performance was driven by an 11 percent year-on-year increase in total income, which reached 8.7 billion pounds, alongside disciplined cost control. The bank reduced its cost-to-income ratio by 2.8 percentage points, aided by roughly 250 million pounds in gross cost savings. NatWest also upgraded its full-year performance guidance, now expecting a return on tangible equity greater than 19 percent, up from a previous target of above 17 percent. The bank announced an interim dividend of 12 pence per share and stated it would consider share buybacks when it reports its full-year 2026 results in February.

Chief Executive Paul Thwaite linked part of the bank's success to its adoption of artificial intelligence and its expansion into wealth...