-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
NatWest delivered robust Q1 2026 results with attributable profit of GBP1,432M (+14.4% Y/Y), beating consensus expectations of GBP1,337M, while maintaining RoTE at 18.2%. Total income of GBP4,358M grew 9.5% Y/Y despite declining 0.8% Q/Q due to seasonal factors, with NIM expanding 20 bps to 2.47% supported by deposit repricing dynamics. The bank demonstrated disciplined cost management with cost-to-income ratio improving 210 bps Y/Y to 46.5%, leveraging operational efficiency and AI deployment. Management upgraded 2026 income guidance to the top end of the GBP17.2-17.6B range, though this requires sustained momentum through year-end. Credit quality remained controlled with impairment losses of GBP283M (26-bp loan impairment rate) reflecting economic uncertainty, while CET1 ratio strengthened 30 bps to 14.3% from robust capital generation. We view the upgraded guidance as achievable but not locked in given macro uncertainty, supported by continued structural hedge income growth and strong lending momentum.