NatWest reported a 29 percent increase in second-quarter profits to £2.3 billion, marking a strong financial performance driven by its wealth and retail divisions. This surge contributed to a 20 percent rise in pre-tax profit to £4.3 billion for the first half of 2026. The bank also saw a 12.6 percent increase in net interest income to £6.9 billion, reflecting the impact of higher interest rates sustained over a longer period.

Following the robust results, NatWest raised its full-year profit forecasts and announced plans to consider advancing share buybacks. The lender boosted its dividend by 26 percent to 12p per share, with a total shareholder payout of £955 million. NatWest’s shares closed 3.2 percent higher at 705.8p, reaching their highest level since the 2008 financial crisis, when the bank — then known as Royal Bank of Scotland — was rescued by the government. The bank now reports a return on capital approaching 20 percent, the highest among its UK peers.

Paul Thwaite, NatWest’s chief executive, used the announcement as an opportunity to caution against calls for a windfall tax on the banking sector’s increased profits. He told Prime Minister Andy Burnham that “Britain needs strong banks” and argued that imposing extra levies could lead to higher loan costs for customers. Thwaite emphasized the importance of consistent government policy and regulatory frameworks to allow businesses to plan effectively and to build overall economic confidence.

“It’s important to see continuity in the direction of travel in policy and regulation,” Thwaite said, adding that confidence is essential for growth and that all stakeholders, including the bank, must contribute.

The calls for a windfall tax have gained traction amid widespread scrutiny of the banking sector, including from rivals such as Lloyds and Barclays, both of which also reported substantial profit increases this week. Supporters of the levy argue that banks have benefited disproportionately from elevated interest rates, while opponents caution that such a tax could have unintended financial consequences for customers and the broader economy.

Analysts note that NatWest’s performance continues to reflect a successful transition since the government sold its remaining stake in the bank last year. Russ Mould, investment director at the brokerage AJ Bell, characterized the current period as favorable for NatWest, which has surpassed market expectations multiple times since full privatization.

As the bank navigates this period of strong financial results, it remains focused on balancing shareholder returns with its stated commitment to support economic growth amid calls for clearer and stable government policies.