NatWest Group (NWG) Q4 2025 earnings summary

Executive summary

• Achieved 19.2% ROTE in 2025 with strong organic growth, improved operational leverage, and over 20 million customers served, returning to private ownership in May.

• Total income excluding notable items reached GBP 16.4 billion, exceeding guidance, with positive operating leverage and a cost-income ratio of 48.6%.

• Completed Sainsbury's Bank transaction and announced acquisition of Evelyn Partners, scaling private banking and wealth management.

• Distributed GBP 4.1 billion to shareholders, including GBP 1.5 billion in buybacks and GBP 2.6 billion in dividends.

• EPS grew 27% to GBP 0.68; dividends per share up 51% to GBP 0.325; TNAV per share up 17% to GBP 3.84.

Financial highlights

• FY'25 total income (excl. notable items) up 12% year-over-year to GBP 16.4 billion; net interest income up 13.5% to GBP 12.8 billion.

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

• Customer loans grew 5.6% to GBP 393 billion; customer deposits up 2.4% to GBP 442 billion; AUMA up 20% to GBP 58.5 billion.

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

• Dividend per share increased 51% year-over-year; ordinary dividend payout ratio at 48%.

Outlook and guidance

• 2026 guidance: income excluding notable items GBP 17.2–17.6 billion, operating expenses around GBP 8.2 billion, loan impairment rate below 25bps, ROTE greater than 17%, capital generation around 200bps.

• CET1 ratio target set at ~13%, with ordinary dividend payout ratio ~50% and buybacks considered as appropriate.

• 2028 targets: customer assets & liabilities CAGR >4%, cost-income ratio <45%, ROTE >18%, capital generation >200bps.