NatWest Q3 2026: Revenue Beats Expectations, EPS Misses Expectations
As seen on the 24/7 Wall St. homepage on October 30, 2026.
EPS missed expectations on one-time items (litigation, Evelyn Partners intangibles amortisation and a customer repayment review) while revenue cleared consensus. The Evelyn deal lifted Private Banking and Wealth income 57.4%, and management held its full-year targets.
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NatWest Group posted Q3 2026 revenue of $6.22 billion, beating expectations, while GAAP diluted EPS of $0.26 missed expectations. That was the sharpest earnings shortfall in the past eight reported quarters.
The gap between the revenue beat and the EPS miss traces directly to a cluster of one-time charges, including £47 million in litigation and conduct costs, purchased-intangibles amortisation tied to the Evelyn Partners acquisition, a charge from a review of customer repayment behaviour, and notable items within total income.
The acquisition of Evelyn Partners was the single most consequential growth driver in the quarter, with its first full period of consolidation lifting Private Banking and Wealth Management income 57.4% year over year. CEO Paul Thwaite described the group's return on tangible equity as 20.2% for the year to date, and said the strategy is delivering sector-leading growth and returns.
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Management reaffirmed the full-year targets set at the H1 2026 results, now assuming the Bank of England base rate will rise 25 basis points to 4% in Q4 2026. The CET1 ratio strengthened to 13.5% during the quarter, and the CET1 element of the Pillar 2A capital requirement is expected to fall effective 1 January 2027, a capital tailwind heading into year-end.
The key risk to monitor is whether the one-time charges recur, with the customer repayment review and ongoing US litigation in credit default swaps and spoofing class actions still live. Trading income also fell to $187.57 million from a year earlier, a drag that management has not provided explicit guidance on reversing.