NatWest Group projects dividend hikes while navigating interest‑rate and credit‑risk pressures

NatWest Group reported a 51% increase in its total 2025 dividend to 32.5p per share, with profit attributable to ordinary shareholders rising to £5.479 billion from £4.519 billion in 2024. Return on tangible equity climbed to 19.2% and the CET1 ratio to 14.0%. Total income reached £16.4 billion, up 12% year‑on‑year, and the bank set 2026 income guidance of £17.2‑£17.6 billion. Analysts forecast further dividend growth to 29p in 2025, 32.7p in 2026 and 36.5p in 2027, implying a forward yield near 7‑8% by 2027. A £750 million on‑market share buy‑back is scheduled to start in the first half of 2026.

The bank highlighted continued exposure to interest‑rate and credit‑quality risks, noting that a faster‑than‑expected fall in UK rates could compress RoTE and tighten dividend headroom. For the first quarter of 2026 NatWest reported group revenue of about £3.5 billion and net profit of roughly £1.1 billion, a 15% increase year‑on‑year, with the CET1 ratio holding around 14.5%. The share price hovered near £3.40, giving the company a market capitalisation of about £30 billion.