NatWest Group (NWG) GS - European Financials Conference 2024 summary

Macroeconomic and policy environment

• UK macro outlook is more positive than expected, with GDP growth, low unemployment, and falling inflation supporting business and consumer sentiment.

• No material policy changes expected from the general election; retail share offer postponed until after the election.

• State ownership reduced to 22% through a recent buyback, with plans to fully divest by fiscal year 2025/26.

• Progress in reducing state stake from 38% to 22% in five and a half months; trajectory remains on track.

Strategic priorities and business performance

• Focused on disciplined growth, simplification, and risk management across retail, commercial, and private franchises.

• Strong Q1 performance with 14% return on equity and healthy P&L lines.

• Growth targeted in underweight product segments, especially unsecured credit and further mortgage expansion.

• Simplification initiatives include platform consolidation, digitization, and organizational streamlining.

• Enhanced balance sheet and risk management as surplus capital declines.

Culture and organizational development

• High employee engagement and a culture oriented around customer focus and collaboration.

• Emphasis on commerciality and experimentation to drive growth and empower staff.

• Recent hires mean many employees are not tied to legacy issues, supporting a forward-looking culture.