NatWest Group (NWG) investor relations material

Executive summary

• Achieved 19.2% Return on Tangible Equity (ROTE) in FY 2025, with strong compounding growth across all business segments, over 20 million customers served, and 1 million new customers added; customer loans up 5.6%, deposits up 2.4%, and AUMA up 20%.

• Total income excluding notable items rose 12% year-over-year to GBP 16.4 billion, with net interest income up 13.5% and non-interest income up 1.3%.

• Operating profit before tax was GBP 7.7 billion, profit attributable to ordinary shareholders was GBP 5.5 billion, and operating profit before impairments increased 27.8% to GBP 8.4 billion.

• EPS up 27% to 68p, dividends per share up 51% to 32.5p year-over-year.

• Tangible net asset value per share increased 17% to GBP 3.84 (384p).

Financial highlights

• Cost/income ratio improved to 48.6%, with positive jaws of 10ppt and operational leverage.

• Net interest margin increased 21bps to 234bps, driven by deposit growth and margin expansion.

• Total operating expenses were up 1.4% to GBP 8.3 billion; one-time integration costs of GBP 0.1 billion included.

• Loan impairment charge was GBP 671 million, or 16bps of loans; ECL coverage stable at 0.83%.

• CET1 ratio at 14%, capital generation of 252bps before distributions.

Outlook and guidance

• 2026 income (excluding notable items) expected between GBP 17.2–17.6 billion; operating expenses around GBP 8.2 billion.

• Loan impairment rate for 2026 guided to below 25bps, reflecting normalization and loan book growth.

• Capital generation before distributions targeted at 200bps; ROTE expected above 17%.

• CET1 ratio target set at around 13% reflecting regulatory changes and capital generation.

• Basel 3.1 implementation in 2027 expected to increase RWAs by GBP 10 billion.