NatWest Group (LON: NWG), the UK bank behind NatWest, Royal Bank of Scotland and Coutts, saw its share price fall over 3% in early Friday trading after it reported third-quarter profit of £1,615m, down 3.5% from the second quarter. Impairments, money set aside for loans that may not be repaid, rose to £277m.
The FTSE 100 lender closed yesterday at 635.2p, about 12% below its highest close since June, 722.8p on the 3rd of August.
Operating profit before tax was £2,225m, down 2.6% on the second quarter, even though total income rose 3.0% to £4,640m. The £277m impairment charge compares with £140m in the second quarter, up 97.9%, and £153m a year earlier, up 81.0%.
The company said the rise mainly reflected the non-repeat of releases in the second quarter and higher Stage 3 charges, meaning loans classed as in default. Retail impairments doubled to £192m as credit card balances written since 2022 matured, while Commercial & Institutional rose to £80m from £43m.
Defaulted loans were broadly flat at £4.7bn. NatWest holds £315m of extra management provisions against economic uncertainty, and cites the Middle East conflict in its Commercial & Institutional buffer. Against a year earlier:
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Operating profit before tax | £2,225m | £2,183m |
| Profit for the period | £1,615m | £1,681m |
| Attributable profit | £1,532m | £1,598m |
| Impairments | £277m | £153m |
| Loan impairment rate | 24bps | 15bps |
| Net interest margin | 2.50% | 2.37% |
| Return on tangible equity | 21.6% | 22.3% |
Profit for the period fell 3.9% on the year, though pre-tax profit rose 1.9% and the net interest margin was wider.
The quarterly charge equals 24 basis points of loans, against 13 in the second quarter. The company’s own results summary framed it as contained:
Our loan portfolio remains resilient, with a loan impairment rate of 21 basis points for the year to date.
NatWest Group
That compares with 17 basis points a year earlier. The core capital ratio rose to 13.5% and the outlook was reaffirmed. No new buyback or dividend was announced; management presents at 9am.