NatWest Group (NWG) Q4 2024 earnings summary

Executive summary

• Delivered strong 2024 financial performance with attributable profit of £4.5bn, ROTE of 17.5%, and EPS up 12% to 54p, exceeding or meeting upgraded guidance and advancing strategic priorities of disciplined growth, simplification, and active balance sheet/risk management.

• Customer lending grew 3.5% to £372bn, deposits rose 2.9% to £431bn, and assets under management increased 20% to £48.9bn.

• Added 500,000 new customers, bringing total to over 19 million, and delivered £4.0bn in total shareholder distributions.

• Government shareholding reduced from 38% to below 10% via £2.2bn in directed buybacks, paving way for likely return to private ownership in 2025.

• Dividend payout ratio set to rise from 40% to 50% in 2025.

Financial highlights

• Income rose to £14.6bn (up 2.2% year-over-year), operating profit reached £6.2bn, and attributable profit was £4.5bn.

• Return on tangible equity (ROTE) was 17.5%; EPS up 12% to 54p; total dividend per share up 26% to 21.5p.

• CET1 ratio at 13.6%, with tangible net asset value per share up 13% to 329p.

• Operating expenses were £7.9bn, up 1.1% excluding bank levies and retail share offer costs.

• Loan impairment charge for 2024 was £359m (9bps of loans), with Q4 charge at £66m (7bps).

Outlook and guidance

• 2025 income expected at £15.2bn–£15.7bn, with product hedge income to rise by £1bn.

• Operating expenses guided at ~£8.1bn including £0.1bn one-time integration costs; staff costs to rise with 3.3% wage increase.

• Loan impairment rate expected below 20bps; ROTE targeted at 15–16%.

• RWAs projected at £190–£195bn by end-2025; CET1 ratio target remains 13–14%.

• Dividend payout ratio to increase to ~50% from 2025; buybacks remain a tool for surplus capital.