![\"NatWest](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/05\/natwestbranches.jpeg\")
\t\tNatwest is primed to benefit from a ring-fencing shakeup.\t<\/p>\n\t\t\tFriday 01 May 2026 7:19 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tFriday 01 May 2026 8:34 am\n\t<\/p>\n
\t\tNatwest is primed to benefit from a ring-fencing shakeup.\t<\/p>\n
Natwest breezed past profit expectations in the first quarter of the 2026 and is predicting a greater bump to its bottom line on the back of higher-than-expected interest rates.<\/a><\/p>\n The FTSE 100 giant<\/a> booked a \u00a32bn pre-tax profit in the first three months of the year, up from \u00a31.8bn in the same period last year and beating analyst consensus of a flat growth.<\/p>\n It came as total income swelled \u00a34.4bn, marking a near a 10 per cent increase on the previous year.<\/p>\n A key driver of this was a 20 basis point annual gain to the bank\u2019s net interest margin, which serves as a crucial indicator of its profitability from lending. The margin ballooned to 2.47 per cent in the quarter.<\/p>\n Despite this, shares in the bank slipped nearly four per cent on open to 563p.<\/p>\n Retail banking also grew with the banking adding another \u00a33.3bn in mortgage balances, whilst commercial and institutional balanced increased \u00a33.8bn, including a 25 per cent surge in start-up customers on the prior year.<\/p>\n Natwest is also tipped for a boost as interest rates look to stay higher for longer. On Thursday, the Bank of England held rates at 3.75 per cent but signalled hikes could be on the horizon<\/a> as the outbreak of war in the Middle East continues to fan the flames of inflation.<\/p>\n As a result, Natwest increased its income target for the year, expecting to pocket the top end of its \u00a317.2bn to \u00a317.6bn range.<\/p>\n On Tuesday, the bank\u2019s annual general meeting was interrupted by a gaggle of climate protesters rallying against the group\u2019s green policy.<\/a><\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tFTSE 100 banks are facing \u00a32.5bn of headwinds \u2013 HSBC and Barclays are in the firing line<\/a><\/p>\n \tNatwest wealth picks up pace<\/p>\n The group\u2019s wealth division \u2013 which includes the prestigious private bank Coutts \u2013 performed as one of the highest-returning segments the quarter.<\/p>\n Return on equity \u2013 a sign of profitability \u2013 jumped to 21.1 per cent, a climb from 17.1 per cent the previous year.<\/p>\n Meanwhile, total income hit \u00a3291m, up nearly 10 per cent year-on-year after higher income from deposits and growth in investment fees.<\/p>\n Earlier this year, Coutts \u2013 the private bank used by the King \u2013 tripled its minimum deposit to \u00a33m, from \u00a31m. <\/p>\n