NatWest Group Reports Robust Q2 Earnings with Strong Growth and Upgraded Guidance

NatWest Group reported a 13.7% increase in income to GBP 8 billion and a 28% rise in earnings per share to 31p in Q2. Customer lending increased by 3.2% and deposits rose by 1%. The bank upgraded its 2025 guidance, projecting income to exceed GBP 16 billion and a return on tangible equity above 16.5%. An interim dividend of 9.5p was announced, marking a 58% increase, alongside a new share buyback program worth GBP 750 million.

NatWest Group Plc (LSE:NWG) has reported a robust performance for the second quarter of 2025, with a significant increase in income and earnings per share, and has subsequently upgraded its full-year guidance. The bank's management announced that income rose by 13.7% to GBP 8 billion, while earnings per share increased by 28% to 31p [1]. Additionally, the bank reported a 3.2% increase in customer lending and a 1% rise in deposits.

In response to these strong results, NatWest Group has revised its 2025 guidance upward. The bank now expects income to exceed GBP 16 billion and a return on tangible equity above 16.5% [1]. This positive outlook was supported by improved non-interest income, tight cost control, and a better outlook for loan impairments.

The bank's management also announced an interim dividend of 9.5p per share, marking a 58% increase from the previous year, and a new share buyback program worth GBP 750 million [1]. This program is expected to commence in the second half of 2025 and will run until February 13, 2026, with a potential extension to March 13, 2026 [4].

Paul Thwaite, the Chief Executive of NatWest Group, commented on the bank's performance, stating that the strong results reflect the bank's consistent support for its customers and its delivery for shareholders. He also noted that the bank's return to full private ownership has positioned it well to support economic growth across the UK and create sustainable value for all stakeholders [2].

The shares of NatWest Group are currently trading above the broker's fair value target, with a resilient loan book, tight cost control, and improving guidance keeping the bank firmly in the spotlight [1]. Despite the cautious outlook on long-term sustainability, the bank's strong capital generation is expected to keep returns to shareholders attractive for now.

References:
[1] https://www.proactiveinvestors.com.au/companies/news/1075554/natwest-upgrades-guidance-again-as-profits-beat-expectations-but-broker-stays-cautious-1075554.html
[2] https://www.natwestgroup.com/news-and-insights/latest-stories/financial-reporting/2025/jul/H1-2025-NatWest-Group-Results.html
[3] https://www.theguardian.com/business/2025/jul/25/natwest-investors-weeks-after-full-privatisation
[4] https://www.rttnews.com/3557858/natwest-group-commences-gbp-750-mln-share-buyback-program.aspx