NatWest Profit Dips Despite Gains in Wealth Management

Profit before impairments reached £2.502 billion for the three months ending in September, supported by a 3 per cent rise in total income. The lender maintained a cost/income ratio of 45.1 per cent, and the return on tangible equity climbed to 21.6 per cent. Despite these metrics, the market response remained muted, with shares extending a recent decline. Chris Beauchamp, chief market analyst at IG, noted that the combination of falling profits and increased impairment charges has left investors hesitant after a period of sector-wide rallies.

The private banking and wealth management arm, which includes Coutts and Evelyn Partners, emerged as a relative bright spot. Operating profit for the division surged to £156 million from £108 million in the third quarter of 2025. The group recorded £1 billion in net asset inflows, bringing total assets under management to £118 billion. However, customer deposits saw a slight contraction of £300 million, a dip the bank attributed to seasonal tax outflows and shifts toward investment products. Amid these financial pressures, NatWest continues to push digital integration, reporting a 66 per cent increase in internal AI usage and high net promoter scores for its Coutts mobile platform.