NatWest Group (NWG) investor relations material

Strategic performance and sustainability

• Achieved close to 20% RoTE, with sector-leading returns and strong capital generation, maintaining a cost-income ratio reduction of about 21% over five years.

• Entering the eighth consecutive year of growth, with RoTE above 17% for four years and the most efficient cost-income ratio among large UK banks.

• Confident in sustaining performance through 2027–2028, supported by a resilient business model and upgraded medium-term targets.

• Income growth is expected to continue, with TNAV per share also set to rise due to strong organic capital generation.

Growth drivers and market positioning

• Growth is driven by both underlying demand and market share gains across retail, commercial, and wealth management franchises.

• Retail business is expanding in mortgages, unsecured lending, and savings, with nearly 20 million customers providing scale.

• Commercial and institutional business is dominant in the UK, increasing share in startups, SMEs, and key products.

• Private banking and wealth management is experiencing record organic growth, further boosted by acquisitions.

Corporate lending and structural trends

• Corporate lending growth outpaces the system, with Bank of England data showing 9% YoY growth; large corporates growing above this rate.

• Growth is attributed to both modest corporate releveraging and significant structural trends like infrastructure, defense, and transition finance.

• These structural drivers are expected to provide sustained lending demand, not just episodic growth.