Natwest hikes targets after profit jumps 20% to £4.3bn
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IN SHORT
Natwest reported a 20% jump in pre-tax profit to £4.3 billion for the first half of 2026, leading the bank to hike its income targets for the second quarter in a row. The bank also increased its interim dividend by 26% to 12p per share. Meanwhile, Rolls-Royce and BAE Systems have both lifted their profit forecasts, attributing the upgrades to a surge in global defense spending. Rolls-Royce anticipates underlying operating profit between £4.7 billion and £4.9 billion, with BAE Systems expecting earnings growth of 10% to 12%.
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bank reporting increased profit and upgraded targets
Rolls-Royce
company lifting profit forecasts due to defense spending
BAE Systems
company raising profit forecasts amid defense spending surge
Key facts
Natwest reported a 20% increase in pre-tax profit for the first half of 2026.
Natwest's pre-tax profit reached £4.3 billion in the first half of 2026.
Natwest hiked its income targets for the second consecutive quarter.
Natwest increased its interim dividend by 26% to 12p per share.
Rolls-Royce and BAE Systems have raised their profit forecasts.
Increased global defense spending is cited as a reason for profit forecast increases.
Rolls-Royce expects underlying operating profit of £4.7 billion to £4.9 billion.
BAE Systems anticipates earnings growth of 10% to 12%.
Government commitments and demand for military equipment are driving BAE Systems' growth.
Natwest has announced a significant increase in its pre-tax profit for the first half of 2026, reaching £4.3 billion, a 20% rise compared to the previous period. This performance has prompted the bank to upgrade its income targets for the second consecutive quarter. In addition to the profit growth, Natwest has also raised its interim dividend by 26%, setting it at 12p per share.
In parallel, the defense sector is also experiencing a profit surge, with Rolls-Royce and BAE Systems both revising their profit forecasts upwards. This optimism is fueled by a notable increase in global defense spending. Rolls-Royce now expects its underlying operating profit to fall within the range of £4.7 billion to £4.9 billion. BAE Systems, on the other hand, anticipates earnings growth of 10% to 12%, a development directly linked to government commitments and sustained demand for military equipment.
↳ Why This Matters
Natwest has announced a significant increase in its pre-tax profit for the first half of 2026, reaching £4.3 billion, a 20% rise compared to the previous period. This performance has prompted the bank to upgrade its income targets for the second consecutive quarter. In addition to the profit growth, Natwest has also raised its interim dividend by 26%, setting it at 12p per share.
Frequently asked questions
Natwest reported a pre-tax profit of £4.3bn for the first six months of 2026.
Total income swelled 11% to £8.7bn in the first half of 2026.
The bank is now pencilling in a total income of £17.9bn for 2026.
Natwest hiked its interim dividend by 26% to 12p per share.
What Happens Next
01Natwest will continue to integrate Evelyn Partners' assets.
02The banking sector may face further calls for taxation following strong earnings reports.
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