NatWest Group (NWG) Q4 2025 Fixed Income earnings summary

Executive summary

• Achieved 19.2% Return on Tangible Equity (ROTE) in FY 2025, with strong compounding growth across all business segments, over 20 million customers served, and 1 million new customers added.

• Customer loans reached GBP 393 billion (+5.6%), deposits GBP 442 billion (+2.4%), and assets under management and administration (AUMA) GBP 58.5 billion (+20%).

• Total income excluding notable items rose 12% year-over-year to GBP 16.4 billion, with net interest income up 13.5% and non-interest income up 1.3%.

• Operating profit before tax was GBP 7.7 billion, profit attributable to ordinary shareholders was GBP 5.5 billion, and operating profit before impairments increased 27.8% to GBP 8.4 billion.

• Earnings per share rose 27% to 68p, and dividends per share increased 51% to 32.5p year-over-year.

Financial highlights

• Cost/income ratio improved to 48.6%, with positive operational leverage and jaws of +10ppt.

• Tangible net asset value per share increased 17% to GBP 3.84 (384p).

• Net interest margin increased 21bps to 234bps, driven by deposit growth and margin expansion.

• Total operating expenses were up 1.4% to GBP 8.3 billion; impairment charge was GBP 671 million (16bps of loans).

• CET1 ratio stood at 14.0%, with capital generation of 252bps before distributions.

Outlook and guidance

• 2026 income (excluding notable items) expected at GBP 17.2–17.6 billion; operating expenses around GBP 8.2 billion.

• Loan impairment rate expected below 25bps in 2026, reflecting normalization and loan book growth.

• Capital generation before distributions targeted at 200bps; ROTE greater than 17%.

• 2028 targets: cost-income ratio below 45%, CET1 ratio around 13%, ROTE above 18%.

• Basel 3.1 implementation in 2027 expected to increase RWAs by GBP 10 billion.