NatWest Group (NWG) investor relations material

Macroeconomic environment and customer behavior

• Customers remain resilient and thoughtful, with a preference for longer-term ISAs and careful cash management.

• Commercial clients show strong balance sheets and continued investment despite macro challenges.

• GDP growth has been slightly better than expected in recent months.

Growth targets and mortgage trends

• Targeting over 4% annual growth in customer assets and liabilities from 2025 to 2028, with Q1 lending up 4% and AUM up 10%.

• Mortgage customers are locking in rates early, with over 60% already paying above 4%.

• Shift toward two-year mortgage products and strong mortgage book performance.

• Investments in mortgage systems and digital innovation, including ChatGPT integration and faster settlements, are delivering operational benefits.

Commercial and institutional banking

• Focus on fast-growing mid-market segment and innovative lending, with a 25% increase in startups supported.

• Consistent growth above nominal GDP, supported by digital investments and embedded relationship managers.

• Recent ring-fencing reforms will reduce friction and are seen as a net positive, effective from 2028.