NatWest Group (NWG) Investor Update summary

Business Overview and Growth Priorities

• Client assets and liabilities grew 16% since 2021 to £107bn, with AUMA up 36% to £49bn, driven by strong inflows and market movements.

• Strategic focus on high and ultra-high-net-worth clients, aiming to increase those with over £3m by 20% and treble referrals from Commercial & Institutional by 2027.

• Plans to grow AUMA from 45% to 50% of total client assets and liabilities, and expand investment services to retail clients.

• Cost-income ratio targeted to fall from 74% in 2024 to mid-60s by 2027, with ROE expected to exceed 20%.

• Organic growth prioritized, with a high bar for inorganic opportunities and a focus on leveraging digital and group synergies.

Service Model and Client Proposition

• Over 250 advisors and 150 specialists provide tailored services for diverse client groups, including entrepreneurs and international clients.

• Enhanced digital experience and personalized service, with a 24-hour client call service and award-winning app.

• Dedicated teams for entrepreneurs and executives, leveraging group expertise and data to improve client onboarding and support.

• Expanded investment proposition to attract clients with less than £3m and deepen existing relationships.

• Example client journeys highlight comprehensive support, from estate planning to property acquisition and business exit strategies.

Investment Proposition and Digital Transformation

• Centralized investment process under a single CIO, offering six core discretionary portfolios and a range of funds.

• Discretionary balanced strategy outperformed benchmarks over multiple timeframes; AUMA grew 11% annually since 2021.

• Enhanced app functionality, including investment reporting and secure messaging, to improve client engagement and operational efficiency.

• Digital wealth manager service launched for retail clients, offering online advice for a one-off fee, with strong early interest.

• AI and data analytics leveraged for personalized content, workflow automation, and improved productivity.