NatWest Group reported a 20% increase in operating pre-tax profit for the first half of 2026, reaching £4.3 billion by the end of June. This growth surpassed analysts’ expectations, which had forecast profits closer to £4.1 billion, and reflects a combination of increased income, cost reductions, and strategic investments in technology, particularly artificial intelligence (AI).

The banking group saw an 11% rise in income year-on-year, driven by growth across its retail, commercial, and wealth management sectors. Customer lending and deposits also increased during the period. Additionally, NatWest improved its cost efficiency, reducing its cost-to-income ratio by 2.8 percentage points. The bank attributed this improvement to structural simplification and ongoing investment in technology platforms aimed at enhancing productivity and delivering faster, simpler customer experiences. Approximately £250 million in gross cost savings contributed to the overall financial performance.

NatWest’s recent acquisition of wealth management firm Evelyn Partners is considered a key factor supporting the firm’s expansion, with executives expressing optimism about the future benefits from this integration. CEO Paul Thwaite highlighted the role of NatWest’s deep regional presence and longstanding customer relationships in supporting growth across the UK.

AI adoption has been central to NatWest’s strategic focus, with the bank embedding the technology both internally and in customer-facing roles. Thwaite emphasized AI’s transformative impact on how people live and work, especially within financial services. He noted that the true value of AI lies not only in the technology itself but in its ability to enhance relationships, increase productivity, and build trust. The bank has deployed AI tools to its workforce of approximately 60,000 employees, aiming to leverage these technologies to improve customer service and operational efficiency.

NatWest’s strong half-year results follow a broader trend among UK high street banks, with peers such as Barclays and Lloyds also reporting better-than-expected profit growth in early 2026. The group anticipates that its ongoing investments and cost management efforts will support an improved financial performance throughout the full year.