NatWest H1 2026: 12p Dividend and Evelyn Partners Deal

NatWest Group's detailed half-year accounts provide investors with two main takeaways: underlying divisional performance improved, while the acquisition of Evelyn Partners will materially reshape the business from the second half.

The bank also declared a 12.0p interim dividend and continued repurchasing shares. However, credit indicators were mixed, with more loans moving into Stage 2 and write-offs increasing.

The original company announcement contains the full set of interim disclosures.

NatWest's key H1 2026 figures

Metric	H1 2026	Comparison
Profit attributable to ordinary shareholders and other equity owners	£3,184 million	£2,674 million in H1 2025
Retail Banking operating profit	£1,729 million	£1,485 million in H1 2025
Private Banking and Wealth Management operating profit	£212 million	£179 million in H1 2025
Commercial and Institutional operating profit	£2,284 million	£1,984 million in H1 2025
Interim dividend	12.0p per share	£955 million total
Loans to customers	£435,908 million	£418,881 million at 31 December 2025
Customer deposits	£448,605 million	£442,998 million at 31 December 2025
Expected credit loss provisions	£3,562 million	£3,585 million at 31 December 2025

Profit attributable to ordinary shareholders and other equity owners increased by £510 million compared with the first half of 2025. That gives NatWest a solid earnings base as it begins integrating Evelyn Partners.

Profit increased across all three main divisions

The encouraging part of the filing is that growth was not confined to one corner of the bank.

Retail Banking total income increased from £3,134 million to £3,438 million. Net interest income, which is broadly the difference between interest earned and interest paid, rose from £2,922 million to £3,165 million.

Retail operating profit consequently increased to £1,729 million, despite impairment losses rising from £226 million to £280 million.

Private Banking and Wealth Management delivered total income of £595 million, up from £539 million. Operating profit increased from £179 million to £212 million, helped by higher net interest income and fees.

Commercial and Institutional remained the largest contributor. Total income rose from £4,289 million to £4,629 million, while operating profit increased from £1,984 million to £2,284 million.

Investors can compare these figures with the earlier NatWest Q1 2026 results and income guidance update.

Evelyn Partners changes the shape of NatWest

NatWest completed its acquisition of Evelyn Partners on 30 June 2026, paying total consideration of £2,207 million. That consisted of £2,187 million in cash and £20 million relating to share-based awards for pre-acquisition services.

Evelyn Partners provides investment management, financial planning and professional advisory services. NatWest's stated aim is to increase the proportion of earnings coming from capital-light, fee-based activities, rather than relying as heavily on traditional lending income.

This is strategically attractive. Fee income can provide diversification when movements in interest rates put pressure on banking margins.

However, the accounting also shows how much NatWest is paying for expected future benefits.

The acquired business had provisional net identifiable assets of £484 million. NatWest recognised £1,260 million of identifiable intangible assets and £1,723 million of goodwill.

Goodwill represents value that cannot be separately identified on the balance sheet, including expected revenue synergies, the acquired workforce and future growth opportunities. It is not automatically a problem, but it raises the importance of successful execution.

The valuations remain provisional and may be adjusted during a measurement period of up to 12 months. NatWest said the valuation of customer relationships and investment management contracts is sensitive to assumptions including client retention, fee margins, assets under management, discount rates and EBITDA margins.

Evelyn Partners contributed nothing to NatWest's H1 income statement because the transaction completed on the final day of the reporting period. NatWest did, however, recognise £28 million of acquisition-related operating expenses.

Management's illustrative figures suggest that, had the acquisition completed on 1 January 2026, NatWest would have reported total income of £9,139 million and profit after tax of £3,162 million. These are pro forma figures rather than forecasts.

Lending grew, but credit signals were mixed

Loans to customers increased by £17,027 million during the first half, reaching £435,908 million. Customer deposits rose by £5,607 million to £448,605 million.

The expected credit loss charge was £423 million, compared with £382 million in H1 2025. Expected credit losses are provisions recognised for possible future borrower defaults.

Stage 2 loans increased from £38,582 million at the end of 2025 to £44,915 million. Stage 2 covers loans where credit risk has increased significantly since the loan was first recognised, although the borrower is not necessarily in default.

Stage 3 loans, which are considered credit-impaired, were broadly stable at £4,691 million compared with £4,683 million.

Total expected credit loss provisions decreased slightly to £3,562 million from £3,585 million, while overall provision coverage fell from 0.83% to 0.80%. Amounts written off increased from £192 million in H1 2025 to £487 million.

These figures do not point to a sharp deterioration in Stage 3 exposures, but the increase in Stage 2 loans and write-offs deserves attention. Credit quality remains one of the clearest risks for any bank investor.

Dividends and buybacks continue

NatWest announced an interim dividend of £955 million, equivalent to 12.0p per ordinary share. It will be paid on 18 September 2026 to shareholders on the register at the close of business on 14 August. The shares will trade ex-dividend on 13 August.

During the period, NatWest repurchased and cancelled 78.5 million shares for £474.3 million, excluding fees. Since 30 June, it has repurchased another 9.02 million shares for £59.64 million.

Buybacks reduce the number of shares in circulation. All else being equal, that increases each remaining shareholder's proportionate ownership of the company.

The combination of dividends and buybacks remains supportive for shareholders, although future distributions will continue to depend on earnings, capital requirements and regulatory constraints.

Legal and execution risks remain

NatWest continues to face a lengthy list of litigation and regulatory matters. The group said it is not practicable to provide an aggregate estimate of potential liability where outcomes cannot be reliably measured.

Disclosed cases include claims relating to foreign exchange, interest rate swaps, historical spoofing conduct and other banking activities. NatWest is defending several of these matters, and their eventual financial impact is not disclosed.

The Evelyn Partners deal adds a second layer of execution risk. The strategic logic is clear, but investors will need evidence that NatWest can retain clients, achieve expected revenue benefits and manage integration costs without undermining returns.

What investors should watch next

The main positive is broad-based profit growth across Retail Banking, Private Banking and Wealth Management, and Commercial and Institutional. Lending and deposits also increased, while the 12.0p interim dividend and continuing buyback provide visible shareholder returns.

The main concerns are the rise in Stage 2 loans, higher write-offs and the substantial goodwill attached to Evelyn Partners.

For NatWest Group shareholders, the next results should be more revealing because they will include Evelyn Partners' first meaningful contribution. The numbers to watch will be fee income, integration expenses, client retention and credit quality across the existing loan book.