$NWG

NatWest Group reported a 20% rise in H1 2026 profit to £4.3bn, exceeding estimates. The bank raised its full-year income target to £17.9bn, driven by growth in net interest income and the Evelyn Partners acquisition. Dividends increased by 26%, and a share buyback is under consideration. The CET1 ratio stood at 13.2%, with a low and stable cost of risk.

NatWest has received approval from the US Federal Reserve to establish a representative office in Stamford, Connecticut, following changes to UK ring-fencing rules. The office will support existing and prospective US customers but cannot conduct banking activities. Analyst Gary Greenwood notes this marks a shift from NatWest's post-2008 focus on the UK market, potentially indicating international expansion.

The UK's Financial Conduct Authority (FCA) will review the access to cash regime in late 2026, assessing its impact on 14 major banks and building societies. The 12 banks affected include Barclays, NatWest, Lloyds, Santander, and HSBC. The review aims to evaluate the effectiveness of the rules, which took effect in September 2024, in maintaining reasonable cash access services for consumers and businesses.

NatWest Group launched a UK digital-only savings brand, First Active, on 7 Aug 2026. The instant-access account advertises 4.5% AER, made up of a 3% variable base plus a 1.5% bonus for 12 months, then reverts to the standard variable rate. Withdrawals are capped at £10,000 per transaction and £20,000 per rolling 24 hours. FSCS protection is up to £120,000 per banking licence, shared with NatWest and Ulster Bank.

NatWest said its Growth Tracker showed business activity rising in 10 of 12 UK regions in July, up from three in June. The bank attributed the improvement to easing cost pressures, slower price rises, and better business confidence. London led with a Business Activity Index of 55.3, while Scotland (47.3) and Yorkshire & Humber (49.1) declined.

NatWest (NWG) is shifting toward share buybacks to support its yield. The UK bank says it targets about 50% of annual ordinary earnings as dividends and has more than tripled dividend per share from 2021 to 2025 as profits rose with higher interest rates and business streamlining. Its interim dividend payout increased 25%.

NatWest International plans to cut 32 back-office jobs in Gibraltar, according to Unite the Union. The bank says customer-facing roles and local banking services will not be affected, and the changes aim to simplify operations by centralizing some functions. Staff were informed earlier this week, with redeployment options limited, Unite says.

City AM reports that UK financial services firms are tightening transgender-related single-sex bathroom rules after an Equality and Human Rights Commission code of practice on a Supreme Court ruling on sex. Admiral, Coventry Building Society, and Santander updated HR policies to restrict single-sex facilities to biological sex and/or add gender-neutral options. NatWest, Standard Chartered, and Prudential were cited by Sex Matters; some did not comment.

NatWest launched First Active, a digital savings arm, offering easy-access accounts paying 4.5% interest, made up of a 3% base rate plus a 1.5% bonus for 12 months. NatWest says FSCS protection applies up to £120,000 per provider. The article compares rates with Chase, Post Office, Cynergy Bank, Cahoot and Lemfi.

NatWest said its specialist agriculture team is extending drought-related financial support to eligible UK customers, including loan repayment holidays, interest rate reductions, fee-free emergency lending, overdraft support and working capital facilities. It also offers funding for resilience investments such as water storage and reservoirs. NatWest expects enquiries to rise later in the season as dry weather pressures cashflow.