NatWest Group (NWG) Q4 2025 earnings summary

Executive summary

• Achieved strong FY2025 results with income up 12% to £16.4bn, operating profit of £7.7bn, and ROTE at 19.2%.

• Returned to private ownership, completed Sainsbury's Bank transaction, and announced Evelyn Partners acquisition.

• Distributed £4.1bn to shareholders, including £1.5bn buybacks and £2.6bn dividends, with a payout ratio near 50%.

• EPS rose 27% year-over-year to £0.68, up 149% since FY'21; dividends per share up 51% to £0.325, up 210% since FY'21.

• Set 2028 targets: >4% CAGR in customer assets/liabilities, cost-income ratio <45%, and ROTE >18%.

Financial highlights

• Lending grew 5.6% to £393bn; deposits up 2.4% to £442bn; AUMA up 20% to £58.5bn.

• Net interest margin increased 21bps to 2.34%; cost-income ratio improved by 4.8ppt to 48.6%.

• Operating profit before impairments rose 27.8% to £8.4bn; attributable profit up 21.2% to £5.5bn.

• CET1 ratio at 14% with 252bps capital generation before distributions.

• EPS up 27% to £0.68; TNAV per share up 17% to £3.84, up 41% since FY'21.

Outlook and guidance

• FY2026 income (excl. notable items) expected at £17.2–£17.6bn; operating expenses ~£8.2bn.

• Loan impairment rate to remain below 25bps; capital generation before distributions ~200bps.

• ROTE guidance for 2026 >17%; 2028 target ROTE >18%.

• CET1 target reduced to ~13% from 13–14%; ordinary dividend payout ratio ~50%.

• Basel 3.1 expected to increase RWAs by ~£10bn in 2027.