REG - Nat.Westminster Bk - NatWest Bank Plc Interim Results 2025
25/07/2025 08:15
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RNS Number : 5187S National Westminster Bank PLC 25 July 2025
NatWest Bank Group
Interim Results 2025
National Westminster Bank Plc
natwestgroup.com
Interim results for the period ended 30 June 2025
NatWest Bank Group (NWB Group) reported an attributable profit for the period
of £1,854 million and a Common Equity Tier 1 (CET1) ratio of 11.3% for NWB
Plc.
H1 2025 performance
- Total income increased by £497 million to £6,360 million compared to
H1 2024, principally due to deposit margin expansion, balance sheet growth and
higher structural hedge income.
- Operating expenses of £3,449 million were broadly stable compared to
H1 2024. The cost:income ratio has decreased to 54.2% compared to 59.0% in H1
2024.
- An impairment loss of £351 million, compared with a loss of £47
million in H1 2024, principally reflects an £81 million charge on acquisition
of balances from Sainsbury's Bank, Stage 3 charges within Commercial &
Institutional and post model adjustment releases of £57 million in the
period.
Robust balance sheet with strong capital and liquidity levels
- Net loans to customers increased by £4.2 billion to £336.2 billion
during the period, including personal loans and credit card balances acquired
from Sainsbury's Bank, which were £2.2 billion at 30 June 2025. Retail
Banking mortgage balances increased by £4.1 billion, Commercial &
Institutional balances increased £2.0 billion mainly within Commercial
Mid-market, reflecting increased lending to housebuilders and housing
associations, and Corporate & Institutions. This was partially offset by
Treasury reverse repo activity.
- Customer deposits increased by £1.6 billion to £319.9 billion during
the period, including savings balances acquired from Sainsbury's Bank, which
were £2.4 billion at 30 June 2025, and growth within Commercial &
Institutional, partially offset by outflows due to seasonal tax payments.
- The loan:deposit ratio decreased to 97% reflecting an increase in
customer lending of £4.2 billion and an increase in bank deposits of £5.7
billion in H1 2025.
- Total RWAs increased by £6.2 billion during the period to £130.7
billion reflecting lending growth, balances acquired from Sainsbury's Bank,
CRD IV models and the annual recalculation of operational risk RWAs, partially
offset by RWA management actions as we created capacity for growth.
- The CET1 ratio decreased by 10 basis points to 11.3% reflecting
the increase in RWAs, a foreseeable ordinary dividend of £1.4 billion and
other movements on reserves and regulatory adjustments of £0.4 billion,
partially offset by the NWB Plc attributable profit to ordinary shareholders
for the period of £1.6 billion.
Financial review
Financial performance summary
The following tables provide a segmental analysis of operating profit/(loss)
by the main income statement captions and a note of the key performance
metrics and ratios.
Private
Banking & Central Half year ended
Retail Wealth Commercial items 30 June 30 June
Banking Management & Institutional & other 2025 2024 Variance
£m £m £m £m £m £m £m %
Net interest income 2,490 353 1,862 (162) 4,543 3,941 602 15%
Non-interest income 202 174 687 754 1,817 1,922 (105) (5%)
Total income 2,692 527 2,549 592 6,360 5,863 497 8%
Operating expenses (1,222) (325) (1,213) (689) (3,449) (3,458) 9 nm
Profit before impairment losses 1,470 202 1,336 (97) 2,911 2,405 506 21%
Impairment losses (219) (1) (131) - (351) (47) (304) nm
Operating profit/(loss) 1,251 201 1,205 (97) 2,560 2,358 202 9%
Tax charge (706) (639) (67) 10%
Profit for the period 1,854 1,719 135 8%
Attributable to:
Ordinary shareholders 1,755 1,626
Paid-in equity holders 101 95
Non-controlling interests (2) (2)
Profit for the period 1,854 1,719
Half year ended
30 June 30 June
Key metrics and ratios 2025 2024
Cost:income ratio (%) (1) 54.2 59.0
Loan impairment rate (bps) (2) 21 3
As at
30 June 31 December
2025 2024
CET1 ratio (%) (3) 11.3 11.4
Leverage ratio (%) (4) 4.5 4.4
Risk-weighted assets (RWAs) (£bn) 130.7 124.5
Loan:deposit ratio (%) (5) 97 98
nm = not meaningful
(1) Cost:income ratio is total operating expenses divided by total
income.
(2) Loan impairment rate is the annualised loan impairment charge
divided by gross customer loans.
(3) CET1 ratio is CET1 capital divided by RWAs.
(4) Leverage ratio is Tier 1 capital divided by total exposure. This
is in accordance with the Leverage ratio (CRR) part of the PRA Rulebook.
(5) Loan:deposit ratio is total loans divided by total deposits.
Total income increased by £497 million, or 8%, to £6,360 million compared
with £5,863 million in H1 2024.
Net interest income increased by £602 million, or 15%, to £4,543 million,
compared with £3,941 million in H1 2024, as a result of deposit margin
expansion, balance sheet growth and higher structural hedge income.
Non-interest income decreased by £105 million, or 5%, to £1,817 million,
compared with £1,922 million in H1 2024, reflecting lower gains from economic
hedging activities and from property disposals. This was partially offset by
increased investment management fees as a result of higher Assets under
management and administration (AUMA), higher Commercial & Institutional
lending fees and higher income from Retail Banking card fees.
Operating expenses of £3,449 million were broadly stable compared to H1 2024.
An impairment loss of £351 million, compared with a loss of £47 million in
H1 2024, principally reflects an £81 million charge on acquisition of
balances from Sainsbury's Bank, Stage 3 charges within Commercial &
Institutional and post model adjustment releases of £57 million in the
period. The ECL provision increased by £0.2 billion to £3.0 billion and our
ECL coverage ratio has increased from 0.81% to 0.86%.
Financial review
Business performance summary
Retail Banking
Operating profit was £1,251 million, compared with £1,015 million in H1
2024.
- Net interest income increased by £398 million to £2,490 million,
reflecting balance sheet growth and deposit margin expansion, and the benefit
of balances acquired from Sainsbury's Bank adding £21 million of income. This
was partially offset by the impact of base rate cuts.
- Non-interest income decreased by £15 million to £202 million,
primarily reflecting lower income received from recharges to fellow NWH Group
subsidiaries, partially offset by higher income from card fees.
- Operating expenses increased by £34 million to £1,222 million,
reflecting the impact of one-off integration costs associated with the
balances acquired from Sainsbury's Bank, partially offset by lower severance
costs and a reduction in headcount.
- An impairment loss of £219 million in H1 2025, compared with a £106
million loss in H1 2024, was largely driven by the impact of balances acquired
from Sainsbury's Bank.
Net loans to customers increased by £6.7 billion to £202.2 billion including
personal loans and credit card balances acquired from Sainsbury's Bank.
Mortgages increased by £4.1 billion and underlying credit card balances also
increased.
Customer deposits increased by £1.9 billion to £160.4 billion including
savings balances acquired from Sainsbury's Bank, partially offset by seasonal
tax payments.
Private Banking & Wealth Management
Operating profit was £201 million, compared with £139 million in H1 2024.
- Net interest income increased by £68 million to £353 million,
reflecting balance growth across deposits and lending and deposit margin
expansion.
- Non-interest income increased by £16 million to £174 million
primarily driven by investment income due to higher AUMA.
- Operating expenses increased by £10 million to £325 million,
primarily reflecting higher investment costs and one-off items.
- An impairment loss of £1 million in H1 2025, compared with an
impairment release of £11 million in H1 2024 largely reflects higher good
book releases in the prior year, with Stage 3 charges remaining at low levels.
Net loans to customers increased by £0.4 billion to £18.6 billion, driven by
higher commercial loan balances, due to strong client engagement and
competitive pricing strategies.
Customer deposits decreased by £1.1 billion to £41.3 billion largely
reflecting seasonal tax payments and outflows of transitory balances.
Commercial & Institutional
Operating profit was £1,205 million, compared with £1,116 million in H1
2024.
- Net interest income increased by £309 million to £1,862 million,
primarily reflecting customer lending growth and deposit margin expansion.
- Non-interest income decreased by £35 million to £687 million
primarily reflecting hedging activities partially offset by higher lending
fees.
- Operating expenses increased by £10 million to £1,213 million,
primarily reflecting the impact of pay inflation which was partially offset by
lower depreciation charges.
- An impairment loss of £131 million in H1 2025 compared with a £44
million release in H1 2024 reflects lower good book releases and higher Stage
3 charges.
Net loans to customers increased by £2.0 billion to £88.4 billion,
principally due to growth in Corporate & Institutions and Commercial
Mid-market, partially offset by UK Government scheme repayments of £0.7
billion.
Customer deposits increased by £2.1 billion to £117.2 billion reflecting
growth within Corporate & Institutions.
Central items & other
Operating loss was £97 million, compared with profit £88 million in H1
2024.
- Total income decreased by £244 million to £592 million primarily
reflecting lower gains on interest and foreign exchange risk management
derivatives not in hedge accounting relationships.
- Operating expenses decreased by £63 million to £689 million
principally due to lower transformation costs and an HMRC tax credit.
Financial review
Capital and leverage ratios
Capital resources, RWAs and leverage for NWB Plc are set out below and have
been calculated in line with the PRA rulebook.
30 June 31 December
2025 2024
Capital adequacy ratios % %
CET1 (1) 11.3 11.4
Tier 1 14.0 13.9
Total 16.9 16.6
Capital £m £m
CET1 (1) 14,828 14,181
Tier 1 18,346 17,258
Total 22,104 20,629
Risk-weighted assets
Credit risk 112,096 107,922
Counterparty credit risk 630 606
Market risk 170 71
Operational risk 17,816 15,923
Total RWAs 130,712 124,522
Leverage
Tier 1 capital (£m) 18,346 17,258
Leverage exposure (£m) (2) 411,371 390,032
Leverage ratio (%) (1) 4.5 4.4
(1) The IFRS 9 transitional capital rules in respect of ECL provisions
no longer apply as of 1 January 2025. (The impact of the IFRS 9 transitional
adjustments at 31 December 2024 was £35 million. Excluding this adjustment at
31 December 2024, the CET1 ratio was 11.4% and the leverage ratio was 4.4%).
(2) Leverage exposure is broadly aligned to the accounting value of on
and off-balance sheet exposures albeit subject to specific adjustments for
derivatives, securities financing positions and off-balance sheet exposures.
- The CET1 ratio decreased by 10 basis points to 11.3%. The decrease in
the CET1 ratio was due to a £6.2 billion increase in RWAs partially offset by
a £0.6 billion increase in CET1 capital. The CET1 capital increase was
primarily driven by the NWB Plc attributable profit of £1.6 billion and other
movements on reserves and regulatory adjustments of £0.4 billion partially
offset by a foreseeable ordinary dividend of £1.4 billion.
- NWB Plc issued a £0.5 billion internal Tier 1 instrument in March
2025.
-
Total RWAs increased by £6.2 billion during the period mainly reflecting an
increase in credit risk RWAs of £4.2 billion primarily driven by lending
growth, balances acquired from Sainsbury's Bank and CRD IV models. These
increases were partially offset by reductions due to RWA management actions.
There was a further increase in operational risk RWAs of £1.9 billion
following the annual recalculation.
Condensed consolidated income statement
for the period ended 30 June 2025 (unaudited)
Half year ended
30 June 30 June
2025 2024
£m £m
Interest receivable 9,334 8,798
Interest payable (4,791) (4,857)
Net interest income 4,543 3,941
Fees and commissions receivable 1,180 1,117
Fees and commissions payable (289) (260)
Other operating income 926 1,065
Non-interest income 1,817 1,922
Total income 6,360 5,863
Staff costs (1,727) (1,746)
Premises and equipment (539) (526)
Other administrative expenses (653) (712)
Depreciation and amortisation (530) (474)
Operating expenses (3,449) (3,458)
Profit before impairment losses 2,911 2,405
Impairment losses (351) (47)
Operating profit before tax 2,560 2,358
Tax charge (706) (639)
Profit for the period 1,854 1,719
Attributable to:
Ordinary shareholders 1,755 1,626
Paid-in equity holders 101 95
Non-controlling interests (2) (2)
1,854 1,719
Condensed consolidated statement of comprehensive income
for the period ended 30 June 2025 (unaudited)
Half year ended
30 June 30 June
2025 2024
£m £m
Profit for the period 1,854 1,719
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of retirement benefit schemes 7 (63)
Tax (3) 17
4 (46)
Items that will be reclassified subsequently to profit or loss when specific
conditions are met:
FVOCI financial assets 56 26
Cash flow hedges (1) 17 233
Currency translation (4) (8)
Tax (21) (75)
48 176
Other comprehensive income after tax 52 130
Total comprehensive income for the period 1,906 1,849
Attributable to:
Ordinary shareholders 1,807 1,756
Paid-in equity holders 101 95
Non-controlling interests (2) (2)
1,906 1,849
(1) Refer to footnote 1 of the condensed consolidated statement of
changes in equity.
Condensed consolidated balance sheet
as at 30 June 2025 (unaudited)
30 June 31 December
2025 2024
£m £m
Assets
Cash and balances at central banks 32,079 35,095
Derivatives 2,307 2,874
Loans to banks - amortised cost 4,130 3,426
Loans to customers - amortised cost 336,200 332,013
Amounts due from holding companies and fellow subsidiaries 4,294 3,736
Other financial assets 48,251 39,571
Other assets 7,826 7,594
Total assets 435,087 424,309
Liabilities
Bank deposits 30,473 24,780
Customer deposits 319,901 318,290
Amounts due to holding companies and fellow subsidiaries 50,100 47,724
Derivatives 1,235 1,177
Other financial liabilities 5,423 4,999
Subordinated liabilities 122 122
Notes in circulation 968 935
Other liabilities 3,080 3,164
Total liabilities 411,302 401,191
Owners' equity 23,773 23,093
Non-controlling interests 12 25
Total equity 23,785 23,118
Total liabilities and equity 435,087 424,309
Condensed consolidated statement of changes in equity
for the period ended 30 June 2025 (unaudited)
Half year ended
30 June 30 June
2025 2024
£m £m
Called-up share capital - at beginning and end of period 1,678 1,678
Paid-in equity - at beginning of period 3,317 2,518
Redeemed (799) -
Issued 1,241 799
At end of period 3,759 3,317
Share premium account - at beginning and end of period 2,225 2,225
Merger reserve - at beginning of period 10 28
Amortisation 1 (19)
At end of period 11 9
FVOCI reserve - at beginning of period (63) (41)
Unrealised gains 57 23
Realised (gains)/losses (1) 3
Tax (16) (9)
At end of period (23) (24)
Cash flow hedging reserve - at beginning of period (308) (600)
Amount recognised in equity (1) (102) 253
Amount transferred from equity to earnings (2) 119 (20)
Tax (5) (66)
At end of period (296) (433)
Foreign exchange reserve - at beginning of period (123) (104)
Retranslation of net assets 14 (23)
Foreign currency (losses)/gains on hedges of net assets (18) 15
At end of period (127) (112)
Capital redemption reserve - at beginning and end of period 820 820
Retained earnings - at beginning of period 15,537 14,871
Profit attributable to ordinary shareholders and other equity owners 1,856 1,721
Paid-in equity dividends paid (101) (95)
Ordinary dividends paid (1,584) (880)
Redemption of paid-in equity 22 -
Remeasurement of the retirement benefit schemes
- gross 7 (63)
- tax (3) 17
Employee share schemes 9 -
Share-based remuneration (6) 5
Amortisation of merger reserve (1) 19
Purchase of non-controlling interest (10) -
At end of period 15,726 15,595
Owners' equity at end of period 23,773 23,075
For the notes to this table refer the following page.
Condensed consolidated statement of changes in equity
for the period ended 30 June 2025 continued (unaudited)
Half year ended
30 June 30 June
2025 2024
£m £m
Non-controlling interests - at beginning of period 25 35
Loss attributable to non-controlling interests (2) (2)
Purchase of non-controlling interest (11) -
At end of period 12 33
Total equity at end of period 23,785 23,108
Attributable to:
Ordinary shareholders 20,014 19,758
Paid-in equity holders 3,759 3,317
Non-controlling interests 12 33
23,785 23,108
(1) The change in the cash flow hedging reserve is driven by realised
accrued interest transferred to the income statement and a decrease in swap
rates in the year, where the portfolio of swaps are net pay fixed.
(2) The amount transferred from equity to the income statement is mostly
recorded within net interest income mainly within loans to banks and customers
- amortised cost, balances at central banks , bank deposits and customer
deposits.
Condensed consolidated cash flow statement
for the period ended 30 June 2025 (unaudited)
Half year ended
30 June 30 June
2025 2024
£m £m
Cash flows from operating activities
Operating profit before tax 2,560 2,358
Adjustments for non-cash and other items 977 1,071
Net cash flows from trading activities 3,537 3,429
Changes in operating assets and liabilities 4,890 (1,458)
Net cash flows from operating activities before tax 8,427 1,971
Income taxes paid (828) (767)
Net cash flows from operating activities 7,599 1,204
Net cash flows from investing activities (8,666) (529)
Net cash flows from financing activities (1,009) (433)
Effects of exchange rate changes on cash and cash equivalents 66 (220)
Net (decrease)/increase in cash and cash equivalents (2,010) 22
Cash and cash equivalents at beginning of period 39,130 52,001
Cash and cash equivalents at end of period 37,120 52,023
Notes
1. Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction
with NatWest Bank Plc's 2024 Annual Report and Accounts. The accounting
policies are the same as those applied in the consolidated financial
statements.
The directors have prepared the condensed consolidated financial statements on
a going concern basis after assessing the principal risks, forecasts,
projections and other relevant evidence over the twelve months from the date
they are approved and in accordance with IAS 34 'Interim Financial Reporting',
as adopted by the UK and as issued by the International Accounting Standards
Board (IASB), and the Disclosure Guidance and Transparency Rules sourcebook of
the UK's Financial Conduct Authority.
2. Net interest income
Half year ended
30 June 30 June
2025 2024
£m £m
Balances at central banks and loans to banks - amortised cost 769 900
Loans to customers - amortised cost 7,618 7,117
Amounts due from holding companies and fellow subsidiaries 38 51
Other financial assets 909 730
Interest receivable 9,334 8,798
Bank deposits 691 580
Customer deposits 2,807 2,734
Amounts due to holding companies and fellow subsidiaries 1,084 1,253
Other financial liabilities 204 285
Subordinated liabilities 5 5
Interest payable 4,791 4,857
Net interest income 4,543 3,941
3. Operating expenses
Half year ended
30 June 30 June
2025 2024
£m £m
Salaries and other staff costs 1,347 1,387
Temporary and contract costs 59 62
Social security costs 169 153
Pension costs 152 144
- defined benefit schemes 50 51
- defined contribution schemes 102 93
Staff costs 1,727 1,746
Premises and equipment 539 526
Depreciation and amortisation (1) 530 474
Other administrative expenses (2) 653 712
Administrative expenses 1,722 1,712
Operating expenses 3,449 3,458
(1) Includes depreciation on right of use assets of £39 million (30
June 2024 - £44 million).
(2) Includes redress and litigation costs. Further details are
provided in Note 8.
Notes
4. Segmental analysis
The business is organised into the following reportable segments: Retail
Banking, Private Banking & Wealth Management, Commercial &
Institutional and Central items & other.
Effective from Q2 2025, the reportable segment Private Banking was renamed
Private Banking & Wealth Management.
Analysis of operating profit/(loss) before tax
The following tables provide a segmental analysis of operating profit/(loss)
before tax by the main income statement captions.
Private
Banking &
Retail Wealth Commercial Central items
Banking Management & Institutional & other Total
Half year ended 30 June 2025 £m £m £m £m £m
Net interest income 2,490 353 1,862 (162) 4,543
Net fees and commissions 167 157 565 2 891
Other non-interest income 35 17 122 752 926
Total income 2,692 527 2,549 592 6,360
Depreciation and amortisation - - (53) (477) (530)
Other operating expenses (1,222) (325) (1,160) (212) (2,919)
Impairment losses (219) (1) (131) - (351)
Operating profit/(loss) 1,251 201 1,205 (97) 2,560
Half year ended 30 June 2024
Net interest income 2,092 285 1,553 11 3,941
Net fees and commissions 162 141 553 1 857
Other non-interest income 55 17 169 824 1,065
Total income 2,309 443 2,275 836 5,863
Depreciation and amortisation (1) - (61) (412) (474)
Other operating expenses (1,187) (315) (1,142) (340) (2,984)
Impairment (losses)/releases (106) 11 44 4 (47)
Operating profit 1,015 139 1,116 88 2,358
Total revenue (1)
Private
Banking &
Retail Wealth Commercial Central items
Banking Management & Institutional & other Total
Half year ended 30 June 2025 £m £m £m £m £m
External 4,523 618 3,368 2,931 11,440
Inter-segmental 147 801 (607) (341) -
Total 4,670 1,419 2,761 2,590 11,440
Half year ended 30 June 2024
External 3,918 618 3,528 2,916 10,980
Inter-segmental (40) 708 (766) 98 -
Total 3,878 1,326 2,762 3,014 10,980
(1) Total revenue comprises interest receivable, fees and commissions
receivable and other operating income.
Notes
4. Segmental analysis continued
Analysis of net fees and commissions
Private
Banking &
Retail Wealth Commercial Central items
Banking Management & Institutional & other Total
Half year ended 30 June 2025 £m £m £m £m £m
Fees and commissions receivable
- Payment services 143 20 283 - 446
- Credit and debit card fees 166 10 102 - 278
- Lending and financing 7 4 248 - 259
- Brokerage 16 5 - - 21
- Investment management, trustee and fiduciary services 1 124 - - 125
- Other 5 2 41 3 51
Total 338 165 674 3 1,180
Fees and commissions payable (171) (8) (109) (1) (289)
Net fees and commissions 167 157 565 2 891
Half year ended 30 June 2024
Fees and commissions receivable
- Payment services 133 19 264 - 416
- Credit and debit card fees 161 7 97 2 267
- Lending and financing 7 3 247 - 257
- Brokerage 13 4 - - 17
- Investment management, trustee and fiduciary services 1 112 - - 113
- Other 5 6 35 1 47
Total 320 151 643 3 1,117
Fees and commissions payable (158) (10) (90) (2) (260)
Net fees and commissions 162 141 553 1 857
Total assets and liabilities
Private
Banking &
Retail Wealth Commercial Central items
Banking Management & Institutional & other Total
30 June 2025 £m £m £m £m £m
Assets 206,336 19,355 94,341 115,055 435,087
Liabilities 161,925 41,601 130,510 77,266 411,302
31 December 2024
Assets 199,579 18,916 92,653 113,161 424,309
Liabilities 159,989 42,603 127,878 70,721 401,191
Notes
5. Tax
The actual tax charge differs from the expected tax charge computed by
applying the standard UK corporation tax rate of 25% (2024 - 25%), as analysed
below:
Half year ended
30 June 30 June
2025 2024
£m £m
Profit before tax 2,560 2,358
Expected tax charge (640) (590)
Items not allowed for tax:
- losses on disposals and write-downs (6) (9)
- UK bank levy (10) (10)
- regulatory and legal actions (1) (2)
- other disallowable items (13) (21)
Non-taxable items 10 2
Banking surcharge (72) (66)
Tax on paid-in equity dividends 33 26
Adjustments in respect of prior years (7) 31
Actual tax charge (706) (639)
At 30 June 2025, NWB Group has recognised a deferred tax asset of £634
million (31 December 2024 - £808 million) and a deferred tax liability of
£71 million (31 December 2024 - £83 million). These amounts include deferred
tax assets recognised in respect of trading losses of £196 million (31
December 2024 - £333 million). NWB Group has considered the carrying value of
these assets as at 30 June 2025 and concluded that they are recoverable.
Notes
6. Financial instruments - classification
The following tables analyse financial assets and liabilities in accordance
with the categories of financial instruments in IFRS 9.
Amortised Other
MFVTPL FVOCI cost assets Total
£m £m £m £m £m
Assets
Cash and balances at central banks 32,079 32,079
Derivatives (1) 2,307 2,307
Loans to banks - amortised cost (2) 4,130 4,130
Loans to customers - amortised cost (3) 336,200 336,200
Amounts due from holding companies and fellow subsidiaries - 3,756 538 4,294
Other financial assets 283 33,545 14,423 48,251
Other assets 7,826 7,826
30 June 2025 2,590 33,545 390,588 8,364 435,087
Cash and balances at central banks 35,095 35,095
Derivatives (1) 2,874 2,874
Loans to banks - amortised cost (2) 3,426 3,426
Loans to customers - amortised cost (3) 332,013 332,013
Amounts due from holding companies and fellow subsidiaries 78 3,128 530 3,736
Other financial assets 534 29,335 9,702 39,571
Other assets 7,594 7,594
31 December 2024 3,486 29,335 383,364 8,124 424,309
Held-for- Amortised Other
trading DFV cost liabilities Total
£m £m £m £m £m
Liabilities
Bank deposits 30,473 30,473
Customer deposits 319,901 319,901
Amounts due to holding companies and fellow subsidiaries 44 49,882 174 50,100
Derivatives (1) 1,235 1,235
Other financial liabilities 145 - 5,278 5,423
Subordinated liabilities 122 122
Notes in circulation 968 968
Other liabilities (4) 490 2,590 3,080
30 June 2025 1,424 - 407,114 2,764 411,302
Bank deposits 24,780 24,780
Customer deposits 318,290 318,290
Amounts due to holding companies and fellow subsidiaries 27 47,555 142 47,724
Derivatives (1) 1,177 1,177
Other financial liabilities 202 250 4,547 4,999
Subordinated liabilities 122 122
Notes in circulation 935 935
Other liabilities (4) 528 2,636 3,164
31 December 2024 1,406 250 396,757 2,778 401,191
(1) Includes net hedging derivative assets of £223 million (31 December 2024 -
£360 million) and net hedging derivative liabilities of £284 million (31
December 2024 - £255 million).
(2) Includes items in the course of collection from other banks of £8 million (31
December 2024 - £2 million).
(3) Includes finance lease receivables of £8,998 million (31 December 2024 -
£8,939 million).
(4) Includes lease liabilities of £442 million (31 December 2024 - £490
million), held at amortised cost.
Notes
6. Financial instruments - valuation
Disclosures relating to the control environment, valuation techniques and
related aspects pertaining to financial instruments measured at fair value are
included in the NatWest Bank Plc 2024 Annual Report and Accounts. Valuation,
sensitivity methodologies and inputs at 30 June 2025 are consistent with those
described in Note 10 to the financial statements in the NatWest Bank Plc 2024
Annual Report and Accounts.
Fair value hierarchy
The table below shows the assets and liabilities held by NWB Group split by
fair value hierarchy level. Level 1 are considered the most liquid
instruments, and level 3 the most illiquid, valued using expert judgment and
so carrying the most significant price uncertainty.
30 June 2025 31 December 2024
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£m £m £m £m £m £m £m £m
Assets
Derivatives
Interest rate - 2,033 3 2,036 - 2,539 7 2,546
Foreign exchange - 271 - 271 - 328 - 328
Amounts due from holding companies
and fellow subsidiaries - - - - - 78 - 78
Other financial assets
Loans - 103 195 298 - 286 261 547
Securities 19,671 13,856 3 33,530 18,012 11,307 3 29,322
Total financial assets held at fair value 19,671 16,263 201 36,135 18,012 14,538 271 32,821
As % of total fair value assets 54% 45% 1% 55% 44% 1%
Liabilities
Derivatives
Interest rate - 1,022 4 1,026 - 1,033 10 1,043
Foreign exchange - 196 - 196 - 124 - 124
Other - 13 - 13 - 10 - 10
Amounts due to holding companies
and fellow subsidiaries - 44 - 44 - 27 - 27
Other financial liabilities
Deposits - 145 - 145 - 452 - 452
Total financial liabilities held at fair value - 1,420 4 1,424 - 1,646 10 1,656
As % of total fair value liabilities - 100% 0% - 99% 1%
(1) Level 1 - Instruments valued using unadjusted quoted prices in active and
liquid markets, for identical financial instruments. Examples include
government bonds, listed equity shares and certain exchange-traded
derivatives.
Level 2 - Instruments valued using valuation techniques that have observable
inputs. Observable inputs are those that are readily available with limited
adjustments required. Examples include most government agency securities,
investment-grade corporate bonds, certain mortgage products - including
collateralised loan obligations (CLOs), most bank loans, repos and reverse
repos, state and municipal obligations, most notes issued, certain money
market securities, loan commitments and most over the counter (OTC)
derivatives.
Level 3 - Instruments valued using a valuation technique where at least one
input which could have a significant effect on the instrument's valuation, is
not based on observable market data. Examples include non-derivative
instruments which trade infrequently, certain syndicated and commercial
mortgage loans, private equity, and derivatives with unobservable model
inputs.
(2) Transfers between levels are deemed to have occurred at the beginning of the
quarter in which the instruments were transferred.
Notes
6. Financial instruments - valuation continued
Fair value of financial instruments measured at amortised cost on the balance
sheet
The following table shows the carrying value and fair value of financial
instruments carried at amortised cost on the balance sheet.
Items where fair
Carrying Fair Fair value hierarchy level value approximates
value value Level 1 Level 2 Level 3 carrying value
30 June 2025 £bn £bn £bn £bn £bn £bn
Financial assets
Cash and balances at central banks 32.1 32.1 - - - 32.1
Loans to banks 4.1 4.1 - 2.8 0.5 0.8
Loans to customers 336.2 331.3 - 27.0 304.3 -
Amounts due from holding companies
and fellow subsidiaries 3.8 3.8 - 2.6 1.2 -
Other financial assets
Securities 14.4 14.4 7.9 6.2 0.3 -
31 December 2024
Financial assets
Cash and balances at central banks 35.1 35.1 - - - 35.1
Loans to banks 3.4 3.4 - 1.4 0.5 1.5
Loans to customers 332.0 327.9 - 31.8 296.1 -
Amounts due from holding companies
and fellow subsidiaries 3.1 3.2 - 2.0 1.2 -
Other financial assets
Securities 9.7 9.7 2.7 6.7 0.3 -
30 June 2025
Financial liabilities
Bank deposits 30.5 30.4 - 27.1 0.1 3.2
Customer deposits 319.9 319.8 - 19.8 24.9 275.1
Amounts due to holding companies
and fellow subsidiaries 49.9 50.1 - 41.7 3.3 5.1
Other financial liabilities
Settlement balances
Debt securities in issue 5.3 5.3 - 0.7 4.3 0.3
Subordinated liabilities 0.1 0.2 - 0.2 -
Notes in circulation 1.0 1.0 - - - 1.0
31 December 2024
Financial liabilities
Bank deposits 24.8 24.6 - 21.5 - 3.1
Customer deposits 318.3 318.1 - 19.9 26.6 271.6
Amounts due to holding companies - -
and fellow subsidiaries 47.6 47.8 - 39.8 3.3 4.7
Other financial liabilities
Settlement balances - - - - - -
Debt securities in issue 4.5 4.5 - 0.7 3.8 -
Subordinated liabilities 0.1 0.2 - 0.2 - -
Notes in circulation 0.9 0.9 - - - 0.9
The assumptions and methodologies underlying the calculation of fair values of
financial instruments at the balance sheet date are as follows:
Short-term financial instruments
For certain short-term financial instruments: cash and balances at central
banks, items in the course of collection from other banks, settlement
balances, items in the course of transmission to other banks, customer demand
deposits and notes in circulation, carrying value is deemed a reasonable
approximation of fair value.
Loans to banks and customers
In estimating the fair value of net loans to customers and banks measured at
amortised cost, NWB Group's loans are segregated into appropriate portfolios
reflecting the characteristics of the constituent loans. Two principal methods
are used to estimate fair value; contractual cash flows and expected cash
flows.
Debt securities and subordinated liabilities
Most debt securities are valued using quoted prices in active markets or from
quoted prices of similar financial instruments in active markets. For the
remaining population, fair values are determined using market standard
valuation techniques, such as discounted cash flows.
Bank and customer deposits
Fair value of deposits are estimated using discounted cash flow valuation
techniques.
Notes
7. Loan impairment provisions
Economic loss drivers
Introduction
The portfolio segmentation and selection of economic loss drivers for IFRS 9
follows the approach used in stress testing. The stress models for each
portfolio segment (defined by product or asset class and where relevant,
industry sector and region) are based on a selected, small number of economic
variables that best explain the movements in portfolio loss rates. The process
to select economic loss drivers involves empirical analysis and expert
judgement.
The most significant economic loss drivers for material portfolios are shown
in the table below:
Portfolio Economic loss drivers
Personal mortgages Unemployment rate, sterling swap rate, house price index, real wage
Personal unsecured Unemployment rate, sterling swap rate, real wage
Corporates Stock price index, gross domestic product (GDP)
Commercial real estate Stock price index, commercial property price index, GDP
Economic scenarios
At 30 June 2025, the range of anticipated future economic conditions was
defined by a set of four internally developed scenarios and their respective
probabilities. In addition to the base case, they comprised upside, downside
and extreme downside scenarios.
For 30 June 2025, the four scenarios were deemed appropriate in capturing the
uncertainty in economic forecasts and the non-linearity in outcomes under
different scenarios. These four scenarios were developed to provide sufficient
coverage to current risks faced by the economy and consider varying outcomes
across the labour market, inflation, interest rate, asset price and economic
growth, around which there remains pronounced levels of uncertainty.
Since 31 December 2024, the near-term economic growth outlook has weakened.
This was mainly due to the weaker economic performance in the second half of
2024 and the drag from international trade policy related uncertainty.
Inflation has risen, with underlying price pressure remaining firm,
particularly on services inflation. As a result, inflation is assumed to
remain a little higher than 3% through most of 2025, taking longer to fall
back to the target level of 2%. The labour market has continued to cool. The
unemployment rate peak is now assumed to be modestly higher than at 31
December 2024, but it is still expected to remain low. The Bank of England is
expected to continue cutting interest rates in a 'gradual and careful' manner
with an assumed terminal rate in the base case of 3.5%. The housing market
continues to show signs of resilience, with prices still expected to grow
modestly.
High level narrative - potential developments, vulnerabilities and risks
Outperformance sustained - the economy continues to grow at a robust pace Upside
Growth
Steady growth - staying close to trend pace but with some near-term slowdown Base case
Stalling - lagged effect of higher inflation and cautious consumer amidst Downside
global trade policy and geopolitical uncertainty stalls the rebound
Extreme stress - extreme fall in GDP, with policy support to facilitate sharp Extreme downside
recovery
Sticky - strong growth and/or wage policies and/or interest rate cuts keep Upside
services inflation well above target
Inflation
Battle won - Beyond near-term volatility, downward drift in services inflation Base case
continues, ensuring 2% target is met on a sustained basis
Structural factors - sustained bouts of energy, food and goods price inflation Downside
on geopolitics/deglobalisation
Close to deflation - inflationary pressures diminish amidst pronounced Extreme downside
weakness in demand
Tighter, still - job growth rebounds strongly, pushing unemployment back down Upside
to 3.5%
Labour market
Cooling continues - gradual loosening prompts a gentle rise in unemployment Base case
(but remains low), job growth recovers
Job shedding - prolonged weakness in economy prompts redundancies, reduced Downside
hours, building slack
Depression - unemployment hits levels close to previous peaks amid severe Extreme downside
stress
Limited cuts - higher growth and inflation keeps the Monetary Policy Committee Upside
cautious
Rates
short-term
Steady - approximately one cut per quarter Base case
Mid-cycle quickening - sharp declines through 2025 to support recovery Downside
Sharp drop - drastic easing in policy to support a sharp deterioration in the Extreme downside
economy
Above consensus - 4% Upside
Rates long-term Middle - 3.5% Base case
Close to 2010s - 1-2%/2.5% Dow
nsi
de/
Ext
rem
e
dow
nsi
de
Notes
7. Loan impairment provisions continued
Main macroeconomic variables
The main macroeconomic variables for each of the four scenarios used for
expected credit loss (ECL) modelling are set out in the table below.
30 June 2025 31 December 2024
Extreme Weighted Extreme Weighted
Upside Base case Downside downside average Upside Base case Downside downside average
Five-year summary % % % % % % % % % %
GDP 2.1 1.3 0.6 (0.1) 1.2 2.0 1.3 0.5 (0.2) 1.1
Unemployment rate 3.8 4.6 5.4 7.1 4.9 3.6 4.3 5.0 6.7 4.6
House price index 5.7 3.4 0.5 (4.3) 2.5 5.8 3.5 0.8 (4.3) 2.7
Commercial real estate price 6.1 2.0 (0.3) (4.8) 1.8 5.4 1.2 (1.0) (5.7) 1.1
Consumer price index 2.4 2.2 3.7 1.7 2.5 2.4 2.2 3.5 1.6 2.4
Bank of England base rate 4.1 3.6 2.5 1.2 3.2 4.4 4.0 3.0 1.6 3.6
Stock price index 5.2 3.8 2.6 0.7 3.5 6.3 5.0 3.4 1.1 4.5
World GDP 3.7 3.0 2.3 1.4 2.8 3.8 3.2 2.5 1.6 3.0
Probability weight 21.7 45.0 20.7 12.6 23.2 45.0 19.1 12.7
(1) The five-year summary runs from 2025-2029 for 30 June 2025 and
from 2024-2028 for 31 December 2024.
(2) The table shows compound annual growth rate (CAGR) for GDP,
average levels for the unemployment rate and Bank of England base rate and Q4
to Q4 CAGR for other parameters.
Climate transition
Since 2023, NatWest Group explicitly includes assumptions about the changes in
transition policy, expressed as an additional implicit sectoral carbon price,
in the base case macroeconomic scenario.
In 2025, NatWest Group has individually assessed 50 active and potential
transition policies that have a significant impact on the cost of emissions
and converted them into equivalent sectoral carbon prices, calculated as the
cost per tonne of the emissions abated, as a result of each policy. This
approach enables NatWest Group to estimate an aggregate macroeconomic impact
of the transition policies, and as a result, ECL contribution.
NatWest Group and its customers have a dependency on timely and appropriate
government policies to provide the necessary impetus for technology
development and customer behaviour changes, to enable the UK's successful
transition to net zero. Policy delays and the risks outlined in the UK CCC
annual Progress Reports, if not adequately addressed in a timely manner, put
at risk the UK's net zero transition and in turn, that of NatWest Group and
its customers.
Probability weightings of scenarios
NWB Group's quantitative approach to IFRS 9 multiple economic scenarios
involves selecting a suitable set of discrete scenarios to characterise the
distribution of risks in the economic outlook and assigning appropriate
probability weights. This quantitative approach is used for 30 June 2025.
The approach involves comparing GDP paths for NWB Group's scenarios against a
set of 1,000 model runs, following which, a percentile in the distribution is
established that most closely corresponded to the scenario. The probability
weight for base case is set first based on judgement, while probability
weights for the alternate scenarios are assigned based on these percentiles
scores.
The weights were broadly comparable to those used at 31 December 2024 but with
slightly more downside skew. The assigned probability weights were judged to
be aligned with the subjective assessment of balance of the risks in the
economy as global trade policy uncertainty increased, and geopolitical risks
remained elevated. US trade policy remains a key area of uncertainty for the
economy. NWB Group is comfortable that the adjustments made to the base case
view reflect much of the adverse economic impacts from tariffs, while the
downside scenarios give good coverage to the potential for more significant
economic damage, including higher inflation and downturns in business
investment and consumer spending. Given the balance of risks that the economy
is exposed to, NWB Group judges it appropriate that downside-biased scenarios
have higher combined probability weights than the upside-biased scenario. It
presents good coverage to the range of outcomes assumed in the scenarios,
including the potential for a robust recovery on the upside and exceptionally
challenging outcomes on the downside. A 21.7% weighting was applied to the
upside scenario, a 45.0% weighting applied to the base case scenario, a 20.7%
weighting applied to the downside scenario and a 12.6% weighting applied to
the extreme downside scenario.
Notes
7. Loan impairment provisions continued
Annual figures
Extreme Weighted
Upside Base case Downside downside average
GDP - annual growth % % % % %
2025 1.4 1.1 1.0 (0.8) 0.9
2026 2.9 1.1 (0.2) (3.6) 0.6
2027 2.9 1.5 (0.4) 1.3 1.4
2028 1.8 1.4 0.9 1.4 1.4
2029 1.6 1.4 1.6 1.4 1.5
2030 1.5 1.4 1.5 1.4 1.4
Unemployment rate - annual average
2025 4.5 4.6 4.7 4.8 4.6
2026 3.7 4.7 5.4 7.0 4.9
2027 3.5 4.6 5.8 8.4 5.1
2028 3.5 4.5 5.6 7.9 4.9
2029 3.6 4.5 5.3 7.3 4.8
2030 3.6 4.4 5.1 6.7 4.7
House price index - four quarter change
2025 4.1 3.5 (0.3) (2.6) 2.1
2026 7.9 3.4 (2.2) (11.9) 1.4
2027 5.8 3.4 (2.7) (15.9) 0.8
2028 5.2 3.4 3.6 4.2 4.0
2029 5.6 3.4 4.3 6.5 4.4
2030 5.5 3.4 4.2 6.2 4.3
Commercial real estate price - four quarter change
2025 10.6 2.3 (2.0) (10.5) 1.6
2026 6.3 2.3 (6.5) (24.8) (1.5)
2027 5.7 2.6 2.2 4.1 3.4
2028 4.7 1.5 2.6 5.8 2.9
2029 3.3 1.6 2.5 5.5 2.6
2030 3.0 1.4 2.5 5.3 2.4
Consumer price index - four quarter change
2025 3.2 2.9 4.2 2.4 3.2
2026 2.7 2.2 5.8 0.7 2.9
2027 2.3 2.0 3.0 1.6 2.2
2028 2.0 2.0 2.8 2.0 2.2
2029 2.0 2.0 2.5 2.0 2.1
2030 2.0 2.0 2.5 2.0 2.1
Bank of England base rate - annual average
2025 4.32 4.21 4.07 3.58 4.12
2026 4.00 3.52 2.25 0.11 2.93
2027 4.00 3.50 2.00 0.30 2.89
2028 4.00 3.50 2.00 0.64 2.94
2029 4.00 3.50 2.00 1.47 3.04
2030 4.00 3.50 2.44 2.03 3.20
Stock price index - four quarter change
2025 9.7 6.1 (3.1) (19.3) 1.8
2026 5.7 3.3 (0.9) (9.5) 1.7
2027 4.0 3.3 5.8 14.0 4.9
2028 3.5 3.3 5.8 12.3 4.7
2029 3.1 3.3 5.8 11.0 4.5
2030 3.3 3.3 5.8 10.1 4.5
Notes
7. Loan impairment provisions continued
Worst points
30 June 2025 31 December 2024
Extreme Weighted Extreme Weighted
Downside downside average Downside downside average
% Quarter % Quarter % % Quarter % Quarter %
GDP - Q2 2027 (4.8) Q2 2026 - - Q1 2024 (4.1) Q4 2025 -
Unemployment rate - peak 5.8 Q2 2027 8.5 Q3 2027 5.1 5.6 Q4 2026 8.5 Q1 2027 4.9
House price index (5.0) Q4 2027 (28.0) Q1 2028 - (1.9) Q2 2027 (25.6) Q3 2027 -
Commercial real estate price (8.4) Q4 2026 (33.5) Q1 2027 - (10.5) Q2 2026 (35.0) Q3 2026 (1.8)
Consumer price index
- highest four quarter change 6.1 Q3 2026 3.2 Q2 2025 3.3 6.1 Q1 2026 3.5 Q1 2024 3.5
Bank of England base rate
- extreme level 2.0 Q1 2025 0.1 Q1 2025 2.9 2.0 Q1 2024 0.1 Q1 2024 2.9
Stock price index (6.6) Q2 2026 (32.1) Q2 2026 - (0.2) Q4 2025 (27.4) Q4 2025 -
(1) The figures show falls relative to the starting period for GDP,
house price index, commercial real estate price and stock price index. For
unemployment rate, it shows highest value through the scenario horizon. For
consumer price index, it shows highest annual percentage change. For Bank of
England base rate, it shows highest or lowest value through the horizon. The
calculations are performed over five years, with a starting point of Q4 2024
for 30 June 2025 scenarios and Q4 2023 for 31 December 2024 scenarios.
Governance and post model adjustments
The IFRS 9 PD, EAD and LGD models are subject to NWB Group's model risk policy
that stipulates periodic model monitoring, periodic re-validation and defines
approval procedures and authorities according to model materiality. Various
post model adjustments were applied where management judged they were
necessary to ensure an adequate level of overall ECL provision. All post model
adjustments were subject to review, challenge and approval through model or
provisioning committees.
Post model adjustments will remain a key focus area of NWB Group's ongoing ECL
adequacy assessment process. A holistic framework has been established
including reviewing a range of economic data, external benchmark information
and portfolio performance trends with a particular focus on segments of the
portfolio (both Personal and Non-Personal) that are likely to be more
susceptible to high inflation, high interest rates and supply chain
disruption.
ECL post model adjustments
The table below shows ECL post model adjustments.
Private
Banking &
Retail Banking Wealth Commercial &
Mortgages Other Management Institutional Total
30 June 2025 £m £m £m £m £m
Deferred model calibrations - - 1 12 13
Economic uncertainty 52 25 7 108 192
Other adjustments - - - 15 15
Total 52 25 8 135 220
Of which:
- Stage 1 38 10 4 57 109
- Stage 2 14 15 4 78 111
- Stage 3 - - - - -
31 December 2024
Deferred model calibrations - - 1 14 15
Economic uncertainty 83 19 8 137 247
Other adjustments - - - 15 15
Total 83 19 9 166 277
Of which:
- Stage 1 54 8 5 69 136
- Stage 2 24 11 4 96 135
- Stage 3 5 - - 1 6
Notes
7. Loan impairment provisions continued
Post model adjustments reduced since 31 December 2024, reflecting updates to
post model adjustment parameters.
- Retail Banking - As at 30 June 2025, the post model adjustments for
economic uncertainty decreased to £77 million (31 December 2024 - £102
million). This reduction primarily reflected a revision to the cost of living
post model adjustment, which reduced to £77 million (31 December 2024 - £97
million). This change was based on an updated review of back-testing default
outcomes for higher-risk segments, consistent with the reduction in rate shock
risk in the mortgage portfolio. Despite ongoing economic and geopolitical
uncertainty, the Retail Banking portfolios demonstrated resilience, supported
by a robust risk appetite. The cost of living post model adjustment continued
to address the risk in segments of the Retail Banking portfolio that were more
susceptible to affordability challenges. It focused on key affordability
factors, including lower-income customers in fuel poverty, over-indebted
borrowers, and customers vulnerable to higher mortgage rates.
- Commercial & Institutional - As at 30 June 2025, the post model
adjustment for economic uncertainty decreased to £108 million (31 December
2024 - £137 million). The inflation, supply chain and liquidity post model
adjustment of £93 million (31 December 2024 - £114 million) for lending
prior to 1 January 2024, remained the largest component of this adjustment.
Downgrades to risk profiles were applied to the sectors that were considered
most at risk from the current economic and geopolitical headwinds. The £21
million decrease reflected improved risk metrics along with reduced exposure
in the portfolio subject to the adjustment.
Measurement uncertainty and ECL sensitivity analysis
The recognition and measurement of ECL is complex and involves the use of
significant judgement and estimation, particularly in times of economic
volatility and uncertainty. This includes the formulation and incorporation of
multiple forward-looking economic conditions into ECL to meet the measurement
objective of IFRS 9. The ECL provision is sensitive to the model inputs and
economic assumptions underlying the estimate.
The impact arising from the base case, upside, downside and extreme downside
scenarios was simulated. In the simulations, NWB Group has assumed that the
economic macro variables associated with these scenarios replace the existing
base case economic assumptions, giving them a 100% probability weighting and
therefore serving as a single economic scenario.
These scenarios were applied to all modelled portfolios in the analysis below,
with the simulation impacting both PDs and LGDs. Post model adjustments
included in the ECL estimates that were modelled were sensitised in line with
the modelled ECL movements, but those that were judgemental in nature,
primarily those for deferred model calibrations and economic uncertainty, were
not (refer to the Governance and post model adjustments section) on the basis
these would be re-evaluated by management through ECL governance for any new
economic scenario outlook and not be subject to an automated calculation. As
expected, the scenarios create differing impacts on ECL by portfolio and the
impacts are deemed reasonable.
In this simulation, it is assumed that existing modelled relationships between
key economic variables and loss drivers hold, but in practice other factors
would also have an impact, for example, potential customer behaviour changes
and policy changes by lenders that might impact on the wider availability of
credit.
The focus of the simulations is on ECL provisioning requirements on performing
exposures in Stage 1 and Stage 2. The simulations are run on a stand-alone
basis and are independent of each other; the potential ECL impacts reflect the
simulated impact at 30 June 2025.
Scenario impacts on significant increase in credit risk (SICR) should be
considered when evaluating the ECL movements of Stage 1 and Stage 2. In all
scenarios the total exposure was the same but exposure by stage varied in each
scenario.
Stage 3 provisions are not subject to the same level of measurement
uncertainty - default is an observed event as at the balance sheet date. Stage
3 provisions therefore were not considered in this analysis.
NWB Group's core criterion to identify a SICR is founded on PD deterioration.
Under the simulations, PDs change and result in exposures moving between Stage
1 and Stage 2 contributing to the ECL impact.
Notes
7. Loan impairment provisions continued
Measurement uncertainty and ECL sensitivity analysis
Moderate Moderate Extreme
Base upside downside downside
30 June 2025 Actual scenario scenario scenario scenario
Stage 1 modelled loans (£m)
Retail Banking - mortgages 164,002 165,192 167,520 162,428 152,336
Retail Banking - unsecured 8,907 9,010 9,300 8,757 7,900
Non-Personal - property 20,472 20,553 20,599 20,470 18,552
Non-Personal - non-property 92,678 93,018 93,339 92,663 79,854
286,059 287,773 290,758 284,318 258,642
Stage 1 modelled ECL (£m)
Retail Banking - mortgages 47 48 48 46 39
Retail Banking - unsecured 195 200 193 196 180
Non-Personal - property 60 47 41 62 133
Non-Personal - non-property 137 121 114 140 214
439 416 396 444 566
Stage 2 modelled loans (£m)
Retail Banking - mortgages 19,570 18,380 16,052 21,144 31,236
Retail Banking - unsecured 2,866 2,763 2,473 3,016 3,873
Non-Personal - property 2,180 2,099 2,053 2,182 4,100
Non-Personal - non-property 10,123 9,783 9,462 10,138 22,947
34,739 33,025 30,040 36,480 62,156
Stage 2 modelled ECL (£m)
Retail Banking - mortgages 47 43 35 53 93
Retail Banking - unsecured 321 307 265 342 458
Non-Personal - property 42 37 33 43 96
Non-Personal - non-property 206 187 167 210 435
616 574 500 648 1,082
Stage 1 and Stage 2 modelled loans (£m)
Retail Banking - mortgages 183,572 183,572 183,572 183,572 183,572
Retail Banking - unsecured 11,773 11,773 11,773 11,773 11,773
Non-Personal - property 22,652 22,652 22,652 22,652 22,652
Non-Personal - non-property 102,801 102,801 102,801 102,801 102,801
320,798 320,798 320,798 320,798 320,798
Stage 1 and Stage 2 modelled ECL (£m)
Retail Banking - mortgages 94 91 83 99 132
Retail Banking - unsecured 516 507 458 538 638
Non-Personal - property 102 84 74 105 229
Non-Personal - non-property 343 308 281 350 649
1,055 990 896 1,092 1,648
Stage 1 and Stage 2 coverage (%)
Retail Banking - mortgages 0.05% 0.05% 0.05% 0.05% 0.07%
Retail Banking - unsecured 4.38% 4.31% 3.89% 4.57% 5.42%
Non-Personal - property 0.45% 0.37% 0.33% 0.46% 1.01%
Non-Personal - non-property 0.33% 0.30% 0.27% 0.34% 0.63%
0.33% 0.31% 0.28% 0.34% 0.51%
Reconciliation to Stage 1 and Stage 2 ECL (£m)
ECL on modelled exposures 1,055 990 896 1,092 1,648
ECL on non-modelled exposures 111 111 111 111 111
Total Stage 1 and Stage 2 ECL 1,166 1,101 1,007 1,203 1,759
Variance to actual total Stage 1 and Stage 2 ECL (65) (159) 37 593
Reconciliation to Stage 1 and Stage 2 flow exposure (£m)
Modelled loans 320,798 320,798 320,798 320,798 320,798
Non-modelled loans 21,047 21,047 21,047 21,047 21,047
Other asset classes 75,800 75,800 75,800 75,800 75,800
(1) Variations in future undrawn exposure values across the scenarios
are modelled. However, the exposure position reported is that used to
calculate modelled ECL as at 30 June 2025 and therefore does not include
variation in future undrawn exposure values.
(2) Reflects ECL for all modelled exposure in scope for IFRS 9. The
analysis excludes non-modelled portfolios and exposure relating to bonds and
cash.
(3) All simulations were run on a stand-alone basis and are
independent of each other, with the potential ECL impact reflecting the
simulated impact as at 30 June 2025. The simulations change the composition of
Stage 1 and Stage 2 exposure but total exposure was unchanged under each
scenario as the loan population was static.
(4) Refer to the Economic loss drivers section for details of economic
scenarios.
(5) Refer to the NatWest Bank Plc 2024 Annual Report and Accounts for
31 December 2024 comparatives.
Notes
7. Loan impairment provisions continued
Measurement uncertainty and ECL adequacy
- If the economics were as negative as observed in the extreme downside
(i.e. 100% probability weighting), total Stage 1 and Stage 2 ECL was simulated
to increase by £0.6 billion (approximately 51%). In this scenario, Stage 2
exposure increased significantly and was the key driver of the simulated ECL
rise. The movement in Stage 2 balances in the other simulations was less
significant.
- In the Non-Personal portfolio, there was a significant increase in ECL
under the extreme downside scenario. The Non-Personal property ECL increase
was mainly due to commercial real estate prices which showed negative growth
until 2026 and significant deterioration in the stock index. The non-property
increase was mainly due to GDP contraction and significant deterioration in
the stock index.
- Given the continued economic uncertainty, NatWest Group utilised a
framework of quantitative and qualitative measures to support the levels of
ECL coverage. This included economic data, credit performance insights and
problem debt trends. This was particularly important for consideration of post
model adjustments.
- As the effects of these economic risks evolve, there is a risk of
further credit deterioration. However, the income statement effect of this
should be mitigated by the forward-looking provisions retained on the balance
sheet at 30 June 2025.
- There are a number of key factors that could drive further downside to
impairments, through deteriorating economic and credit metrics and increased
stage migration as credit risk increases for more customers. Such factors
which could impact the IFRS 9 models, include an adverse deterioration in
unemployment, GDP and stock price index.
- The newly acquired Sainsbury's Bank portfolio (£2.2 billion in Stage
1 at 30 June 2025) with associated ECL of £0.1 billion was not included in
the modelled sensitivity analysis.
Loan exposure and impairment metrics
The table below shows gross loans and ECL, within the scope of the IFRS 9 ECL
framework.
30 June 31 December
2025 2024
£m £m
Loans - amortised cost
Stage 1 304,102 298,209
Stage 2 34,738 35,517
Stage 3 4,751 4,798
Inter-group (1) 3,759 3,130
Total 347,350 341,654
ECL provisions (2)
Stage 1 539 482
Stage 2 627 667
Stage 3 1,808 1,599
Inter-group 3 2
2,977 2,750
ECL provisions coverage (3)
Stage 1 (%) 0.18 0.16
Stage 2 (%) 1.80 1.88
Stage 3 (%) 38.06 33.33
Inter-group (%) 0.08 0.06
0.86 0.81
Half year ended
30 June 30 June
2025 2024
£m £m
Impairment losses
ECL (release)/charge (4)
Stage 1 (43) (303)
Stage 2 143 170
Stage 3 250 179
Third party 350 46
Inter-group 1 1
351 47
Amounts written-off 154 298
(1) NWB Group's intercompany assets were classified in Stage 1.
(2) Includes £4 million (31 December 2024 - £4 million) related to
assets classified as fair value through other comprehensive income (FVOCI).
(3) ECL provisions coverage is calculated as ECL provisions divided by
loans - amortised cost and FVOCI. It is calculated on loans and total ECL
provisions, including ECL for other (non-loan) assets and unutilised exposure.
Some segments with a high proportion of debt securities or unutilised exposure
may result in a not meaningful (nm) coverage ratio.
(4) Includes nil (30 June 2024 - £6 million) related to other
financial assets, of which nil (30 June 2024 - £5 million) related to assets
classified as FVOCI; and £10 million (30 June 2024 - £3 million) related to
contingent liabilities.
(5) The table shows gross loans only and excludes amounts that were
outside the scope of the ECL framework. Refer to the Financial instruments
within the scope of the IFRS 9 ECL framework section in the NatWest Bank Plc
2024 Annual Report and Accounts for further details. Other financial assets
within the scope of the IFRS 9 ECL framework were cash and balances at central
banks totaling £31.5 billion (31 December 2024 - £34.6 billion) and debt
securities of £47.8 billion (31 December 2024 - £39.1 billion).
Notes
7. Loan impairment provisions continued
- During H1 2025, overall ECL increased following Non-Personal Stage 3
charges and an increase in good book ECL in the Personal portfolio, driven by
the portfolio acquisition from Sainsbury's Bank.
- For the Non-Personal portfolio, the increase in ECL was from a small
number of individual Stage 3 charges in the Commercial & Institutional
portfolio. This was partially offset by post model adjustment releases in the
good book.
- In the Personal portfolio, default inflows were broadly stable in H1
2025. However, Stage 3 ECL and stock increased on all unsecured portfolios,
with reduced debt sale activity. There was a reduction of Stage 3 ECL on
mortgages related to an enhancement to the application of the definition of
default, resulting in a migration of loans from Stage 3 back to the good book.
- Judgemental ECL post model adjustments decreased to £220 million (31
December 2024 - £277 million) and represented 7% of total ECL (31 December
2024 - 10%). This reflected revisions to the Retail Banking cost of living
post model adjustment after regular back testing, and Non-Personal portfolio
improvements in underlying risk profile. Refer to the Governance and post
model adjustments section for further details.
Sector analysis
The table below shows ECL by stage, for the Personal portfolio and
Non-Personal portfolio including the three largest borrowing sector clusters
included in corporate and other.
Loans - amortised cost and FVOCI Off-balance sheet ECL provisions
Loan Contingent
Stage 1 Stage 2 Stage 3 Total commitments liabilities Stage 1 Stage 2 Stage 3 Total
30 June 2025 £m £m £m £m £m £m £m £m £m £m
Personal 192,909 22,582 2,696 218,187 41,333 38 330 371 934 1,635
Mortgages 179,838 19,704 1,720 201,262 12,644 - 56 48 197 301
Credit cards 5,373 1,633 179 7,185 22,366 - 117 171 125 413
Other personal 7,698 1,245 797 9,740 6,323 38 157 152 612 921
Non-Personal 111,193 12,156 2,055 125,404 59,067 2,636 209 256 874 1,339
Financial institutions 35,924 189 125 36,238 4,030 474 13 6 96 115
Sovereign 372 141 17 530 110 - 8 2 6 16
Corporate and other 74,897 11,826 1,913 88,636 54,927 2,162 188 248 772 1,208
Of which:
Mobility and logistics 12,403 2,182 109 14,694 7,801 361 22 34 36 92
Commercial real estate 12,899 731 239 13,869 4,817 77 51 15 73 139
Consumer Industries 9,247 2,202 352 11,801 8,831 392 26 57 169 252
Total 304,102 34,738 4,751 343,591 100,400 2,674 539 627 1,808 2,974
31 December 2024
Personal 185,937 22,254 2,909 211,100 34,954 41 248 371 864 1,483
Mortgages 175,823 19,214 2,052 197,089 11,799 - 73 56 228 357
Credit cards 4,136 1,652 147 5,935 16,655 - 66 159 98 323
Other personal 5,978 1,388 710 8,076 6,500 41 109 156 538 803
Non-Personal 112,272 13,263 1,889 127,424 58,756 2,935 234 296 735 1,265
Financial institutions 38,683 908 56 39,647 3,757 581 14 8 38 60
Sovereign 375 133 21 529 145 - 7 2 5 14
Corporate and other 73,214 12,222 1,812 87,248 54,854 2,354 213 286 692 1,191
Of which:
Mobility and logistics 11,840 2,275 111 14,226 7,173 451 23 34 42 99
Commercial real estate 12,138 871 243 13,252 4,794 65 54 18 78 150
Consumer Industries 9,407 2,557 382 12,346 8,810 439 37 75 159 271
Total 298,209 35,517 4,798 338,524 93,710 2,976 482 667 1,599 2,748
Notes
7. Loan impairment provisions continued
Flow statements
The flow statements that follow show the main ECL and related income statement
movements. They also show the changes in ECL as well as the changes in related
financial assets used in determining ECL. Due to differences in scope,
exposures may differ from those reported in other tables, principally in
relation to exposures in Stage 1 and Stage 2. These differences do not have a
material ECL effect. Other points to note:
- Financial assets include treasury liquidity portfolios, comprising
balances at central banks and debt securities, as well as loans. Both modelled
and non-modelled portfolios are included.
- Stage transfers (for example, exposures moving from Stage 1 into Stage
2) are a key feature of the ECL movements, with the net re-measurement cost of
transitioning to a worse stage being a primary driver of income statement
charges. Similarly, there is an ECL benefit for accounts improving stage.
- Changes in risk parameters shows the reassessment of the ECL within a
given stage, including any ECL overlays and residual income statement gains or
losses at the point of write-off or accounting write-down.
- Other (P&L only items) includes any subsequent changes in the
value of written-down assets (for example, fortuitous recoveries) along with
other direct write-off items such as direct recovery costs. Other (P&L
only items) affects the income statement but does not affect balance sheet ECL
movements.
- Amounts written-off represent the gross asset written-down against
accounts with ECL, including the net asset write-down for any debt sale
activity.
- There were some flows from Stage 1 into Stage 3 including transfers
due to unexpected default events.
- The effect of any change in post model adjustments during the year is
typically reported under changes in risk parameters, as are any effects
arising from changes to the underlying models. Refer to the section on
Governance and post model adjustments for further details.
- All movements are captured monthly and aggregated. Interest suspended
post default is included within Stage 3 ECL, with the movement in the value of
suspended interest during the year reported under currency translation and
other adjustments.
Stage 1 Stage 2 Stage 3 Total
Financial Financial Financial Financial
assets ECL assets ECL assets ECL assets ECL
NWB Group total £m £m £m £m £m £m £m £m
At 1 January 2025 368,461 482 37,181 667 4,758 1,599 410,400 2,748
Currency translation and other adjustments (933) (1) (22) (1) 61 78 (894) 76
Transfers from Stage 1 to Stage 2 (15,801) (91) 15,801 91 - - - -
Transfers from Stage 2 to Stage 1 13,256 187 (13,256) (187) - - - -
Transfers to Stage 3 (193) (2) (1,167) (112) 1,360 114 - -
Transfers from Stage 3 68 7 640 25 (708) (32) - -
Net re-measurement of ECL on stage transfer (128) 237 - 235 344
Changes in risk parameters (58) (12) - 149 79
Other changes in net exposure 16,495 143 (2,885) (81) (677) (120) 12,933 (58)
Other (P&L only items) - (1) - (14) (15)
Income statement (releases)/charges (43) 143 250 350
Amounts written-off - - - - (154) (154) (154) (154)
Unwinding of discount - - - (61) (61)
At 30 June 2025 381,353 539 36,292 627 4,640 1,808 422,285 2,974
Net carrying amount 380,814 35,665 2,832 419,311
At 1 January 2024 361,888 566 33,756 794 4,440 1,512 400,084 2,872
2024 movements (7,315) (100) (495) (128) 86 8 (7,724) (220)
At 30 June 2024 354,573 466 33,261 666 4,526 1,520 392,360 2,652
Net carrying amount 354,107 32,595 3,006 389,708
Notes
7. Loan impairment provisions continued
Flow statements
Stage 1 Stage 2 Stage 3 Total
Financial Financial Financial Financial
assets ECL assets ECL assets ECL assets ECL
Retail Banking - mortgages £m £m £m £m £m £m £m £m
At 1 January 2025 162,865 73 19,152 55 1,857 217 183,874 345
Currency translation and other adjustments - - - - 40 40 40 40
Transfers from Stage 1 to Stage 2 (7,934) (10) 7,934 10 - - - -
Transfers from Stage 2 to Stage 1 6,441 10 (6,441) (10) - - - -
Transfers to Stage 3 (6) - (390) (3) 396 3 - -
Transfers from Stage 3 14 - 535 8 (549) (8) - -
Net re-measurement of ECL on stage transfer (3) 2 4 3
Changes in risk parameters (12) (12) 26 2
Other changes in net exposure 4,615 (2) (1,203) (3) (214) (60) 3,198 (65)
Other (P&L only items) - - (7) (7)
Income statement (releases)/charges (17) (13) (37) (67)
Amounts written-off - - - - (8) (8) (8) (8)
Unwinding of discount - - (29) (29)
At 30 June 2025 165,995 56 19,587 47 1,522 185 187,104 288
Net carrying amount 165,939 19,540 1,337 186,816
At 1 January 2024 163,974 83 15,942 55 1,600 171 181,516 309
2024 movements (6,133) (37) 2,453 8 177 25 (3,503) (4)
At 30 June 2024 157,841 46 18,395 63 1,777 196 178,013 305
Net carrying amount 157,795 18,332 1,581 177,708
- ECL coverage for mortgages decreased during the first half of 2025,
primarily driven by the reduction in economic uncertainty post model
adjustments (supported by back-testing) and an enhancement to the application
of the definition of default. The latter resulted in a migration of loans from
Stage 3 back to the good book.
- PDs and Stage 3 inflows remained broadly stable, with the portfolio
showing continued resilience during times when a number of customers have had
affordability pressures.
- The net flows into Stage 2 from Stage 1 were offset by a similar level
of outflows from Stage 2 to Stage 1 and balance paydown in Stage 2, supporting
a stable Stage 2 exposure population during 2025 to date.
- The relatively small ECL cost for net re-measurement on transfer into
Stage 3 included the effect of risk targeted ECL adjustments, when previously
in the good book. Refer to the Governance and post model adjustments section
for further details.
- Write-off occurs once the repossessed property has been sold and there
is a residual shortfall balance remaining outstanding. This would typically be
within five years from default but can be longer.
Notes
7. Loan impairment provisions continued
Flow statements
Stage 1 Stage 2 Stage 3 Total
Financial Financial Financial Financial
assets ECL assets ECL assets ECL assets ECL
Retail Banking - credit cards £m £m £m £m £m £m £m £m
At 1 January 2025 3,876 66 1,716 159 134 98 5,726 323
Currency translation and other adjustments - - - - 2 2 2 2
Transfers from Stage 1 to Stage 2 (971) (22) 971 22 - - - -
Transfers from Stage 2 to Stage 1 590 50 (590) (50) - - - -
Transfers to Stage 3 (14) (1) (85) (30) 99 31 - -
Transfers from Stage 3 1 1 5 2 (6) (3) - -
Net re-measurement of ECL on stage transfer (34) 85 36 87
Changes in risk parameters 9 14 8 31
Other changes in net exposure 1,568 48 (320) (32) (6) (1) 1,242 15
Other (P&L only items) - - - -
Income statement (releases)/charges 23 67 43 133
Amounts written-off - - - - (43) (43) (43) (43)
Unwinding of discount - - (4) (4)
At 30 June 2025 5,050 117 1,697 170 180 124 6,927 411
Net carrying amount 4,933 1,527 56 6,516
At 1 January 2024 2,869 58 1,656 166 117 73 4,642 297
2024 movements 585 10 (147) (10) 22 15 460 15
At 30 June 2024 3,454 68 1,509 156 139 88 5,102 312
Net carrying amount 3,386 1,353 51 4,790
- Overall ECL for cards increased during 2025, driven primarily by the
acquisition of Sainsbury's Bank credit card balances into Stage 1 (around £1
billion at 30 June 2025) alongside continued organic portfolio growth,
reflecting strong customer demand, while sustaining robust risk appetite.
- While portfolio performance remained stable, a net flow into Stage 2
from Stage 1 was observed, with the typical maturation of lending after a
period of strong growth in recent years.
- Flow rates into Stage 3 were slightly higher in 2025 compared to 2024.
This was linked to recent growth and portfolio maturation, but in line with
expectations.
- Charge-off (analogous to partial write-off) typically occurs after 12
missed payments.
Notes
7. Loan impairment provisions continued
Flow statements
Stage 1 Stage 2 Stage 3 Total
Financial Financial Financial Financial
assets ECL assets ECL assets ECL assets ECL
Retail Banking - other personal unsecured £m £m £m £m £m £m £m £m
At 1 January 2025 4,542 106 1,236 156 688 529 6,466 791
Currency translation and other adjustments - - - - 14 13 14 13
Transfers from Stage 1 to Stage 2 (860) (39) 860 39 - - - -
Transfers from Stage 2 to Stage 1 623 66 (623) (66) - - - -
Transfers to Stage 3 (31) (1) (130) (50) 161 51 - -
Transfers from Stage 3 3 1 10 4 (13) (5) - -
Net re-measurement of ECL on stage transfer (42) 90 21 69
Changes in risk parameters (11) (5) 50 34
Other changes in net exposure 1,741 75 (152) (16) (39) (19) 1,550 40
Other (P&L only items) - - 10 10
Income statement (releases)/charges 22 69 62 153
Amounts written-off - - - - (24) (24) (24) (24)
Unwinding of discount - - (13) (13)
At 30 June 2025 6,018 155 1,201 152 787 603 8,006 910
Net carrying amount 5,863 1,049 184 7,096
At 1 January 2024 4,247 126 1,371 201 796 625 6,414 952
2024 movements 395 (4) (348) (32) (94) (92) (47) (128)
At 30 June 2024 4,642 122 1,023 169 702 533 6,367 824
Net carrying amount 4,520 854 169 5,543
- Total ECL increased, driven primarily by the acquisition of
Sainsbury's Bank loan balances into Stage 1 (around £1.2 billion at 30 June
2025) alongside continued organic loan book growth.
- Stable arrears performance was observed during 2025 to date, which is
reflected in the good book ECL, with coverage levels showing a modest
reduction since 31 December 2024.
- Flow rates into Stage 3 remained stable during the first half of 2025,
in line with broader portfolio trends on arrears, with overall Stage 3
balances increasing as a result of reduced debt sale activity.
- Write-off occurs once recovery activity with the customer has been
concluded or there are no further recoveries expected, but no later than six
years after default.
Notes
7. Loan impairment provisions continued
Flow statements
Stage 1 Stage 2 Stage 3 Total
Financial Financial Financial Financial
assets ECL assets ECL assets ECL assets ECL
Commercial & Institutional - corporate £m £m £m £m £m £m £m £m
At 1 January 2025 50,516 143 10,082 233 1,321 536 61,919 912
Currency translation and other adjustments (465) (1) (22) (1) 6 7 (481) 5
Inter-group transfers 92 - 28 1 - - 120 1
Transfers from Stage 1 to Stage 2 (4,295) (16) 4,295 16 - - - -
Transfers from Stage 2 to Stage 1 3,534 44 (3,534) (44) - - - -
Transfers to Stage 3 (68) - (413) (25) 481 25 - -
Transfers from Stage 3 26 4 53 9 (79) (13) - -
Net re-measurement of ECL on stage transfer (36) 44 125 133
Changes in risk parameters (29) (6) 38 3
Other changes in net exposure 1,624 13 (863) (28) (310) (33) 451 (48)
Other (P&L only items) - - (14) (14)
Income statement (releases)/charges (52) 10 116 74
Amounts written-off - - - - (70) (70) (70) (70)
Unwinding of discount - - (10) (10)
At 30 June 2025 50,964 122 9,626 199 1,349 605 61,939 926
Net carrying amount 50,842 9,427 744 61,013
At 1 January 2024 49,945 185 10,287 281 1,213 484 61,445 950
2024 movements 1,137 (42) (1,738) (64) (8) 9 (609) (97)
At 30 June 2024 51,082 143 8,549 217 1,205 493 60,836 853
Net carrying amount 50,939 8,332 712 59,983
- ECL increased in H1 2025 due to the impact of a small number of flows
into default. The charge on those cases is seen through net re-measurement of
ECL on stage transfer, reflecting the difference between good book ECL and
defaulted ECL.
- Performing ECL coverage decreased in line with ECL reductions in the
portfolio book as risk metrics improved, in particular from point-in-time
economics inputs, and reduced post model adjustments.
- Stage 2 exposure levels marginally reduced in the period as flows into
Stage 2 were more than offset through flows back to Stage 1, repayments, and
flows into Stage 3.
Stage 1 Stage 2 Stage 3 Total
Financial Financial Financial Financial
assets ECL assets ECL assets ECL assets ECL
Commercial & Institutional - property £m £m £m £m £m £m £m £m
At 1 January 2025 18,526 58 2,124 44 357 139 21,007 241
Currency translation and other adjustments 4 - - - - 6 4 6
Inter-group transfers (86) - (12) (1) - - (98) (1)
Transfers from Stage 1 to Stage 2 (954) (3) 954 3 - - - -
Transfers from Stage 2 to Stage 1 721 9 (721) (9) - - - -
Transfers to Stage 3 (1) - (68) (4) 69 4 - -
Transfers from Stage 3 15 2 12 2 (27) (4) - -
Net re-measurement of ECL on stage transfer (8) 12 8 12
Changes in risk parameters (8) (3) 6 (5)
Other changes in net exposure 1,126 5 (102) (2) (54) (6) 970 (3)
Other (P&L only items) - - - -
Income statement (releases)/charges (11) 7 8 4
Amounts written-off - - - - (8) (8) (8) (8)
Unwinding of discount - - (3) (3)
At 30 June 2025 19,351 55 2,187 42 337 142 21,875 239
Net carrying amount 19,296 2,145 195 21,636
At 1 January 2024 16,667 66 2,141 63 395 119 19,203 248
2024 movements 883 (18) (39) (19) (75) 12 769 (25)
At 30 June 2024 17,550 48 2,102 44 320 131 19,972 223
Net carrying amount 17,502 2,058 189 19,749
- ECL reduced marginally in the first half of 2025. Flows to Stage 3 and
associated charges were reduced from the first half of 2024.
- Exposure in Stage 2 increased as flows into Stage 2 were higher than
flows out and repayments, but remained at broadly stable levels of exposure
within a growing portfolio.
- Performing ECL reductions were driven by improved risk metrics and
reductions in post model adjustments.
Notes
7. Loan impairment provisions continued
Flow statements
Stage 1 Stage 2 Stage 3 Total
Financial Financial Financial Financial
assets ECL assets ECL assets ECL assets ECL
Commercial & Institutional - other £m £m £m £m £m £m £m £m
At 1 January 2025 5,347 10 1,367 8 72 43 6,786 61
Currency translation and other adjustments (21) - - - - 7 (21) 7
Inter-group transfers (6) - (16) - - - (22) -
Transfers from Stage 1 to Stage 2 (115) (1) 115 1 - - - -
Transfers from Stage 2 to Stage 1 782 2 (782) (2) - - - -
Transfers to Stage 3 (64) - (3) - 67 - - -
Transfers from Stage 3 - - 2 - (2) - - -
Net re-measurement of ECL on stage transfer (1) - 39 38
Changes in risk parameters (1) - 17 16
Other changes in net exposure 350 1 (117) - (4) (1) 229 -
Other (P&L only items) - - - -
Income statement (releases)/charges (1) - 55 54
Amounts written-off - - - - - - - -
Unwinding of discount - - - -
At 30 June 2025 6,273 10 566 7 133 105 6,972 122
Net carrying amount 6,263 559 28 6,850
At 1 January 2024 5,285 11 634 5 49 7 5,968 23
2024 movements 831 (2) (196) (1) 37 34 672 31
At 30 June 2024 6,116 9 438 4 86 41 6,640 54
Net carrying amount 6,107 434 45 6,586
- ECL increased, primarily driven by Stage 3 exposures that defaulted in
the first half of 2025.
- The portion of good book exposure in Stage 2 reduced with flows from
Stage 1 into Stage 2 more than offset by flows back to Stage 1.
Mortgage LTV distribution by stage
The table below shows gross mortgage lending and related ECL by LTV band for
the Retail Banking portfolio.
Mortgages ECL provisions ECL provisions coverage
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
30 June 2025 £m £m £m £m £m £m £m £m % % % %
≤50% 60,595 7,629 719 68,943 14 11 85 110 - 0.1 11.8 0.2
>50% and ≤70% 61,628 7,326 579 69,533 21 18 65 104 - 0.2 11.2 0.2
>70% and ≤80% 25,006 2,430 134 27,570 10 8 16 34 - 0.3 11.9 0.1
>80% and ≤90% 16,933 1,762 76 18,771 7 9 11 27 - 0.5 14.5 0.1
>90% and ≤100% 2,846 240 17 3,103 1 1 4 6 - 0.4 23.5 0.2
>100% 11 2 8 21 - - 4 4 - - 50.0 19.0
Total with LTVs 167,019 19,389 1,533 187,941 53 47 185 285 - 0.2 12.1 0.2
Other 368 1 - 369 3 - - 3 0.8 - - 0.8
Total 167,387 19,390 1,533 188,310 56 47 185 288 - 0.2 12.1 0.2
31 December 2024
≤50% 58,257 7,173 865 66,295 19 14 102 135 - 0.2 11.8 0.2
>50% and ≤70% 59,790 7,225 724 67,739 28 21 76 125 - 0.3 10.5 0.2
>70% and ≤80% 24,638 2,298 160 27,096 13 8 18 39 0.1 0.3 11.3 0.1
>80% and ≤90% 16,505 1,718 79 18,302 9 9 11 29 0.1 0.5 13.9 0.2
>90% and ≤100% 4,051 506 25 4,582 2 3 5 10 - 0.6 20.0 0.2
>100% 13 4 11 28 - - 5 5 - - 45.5 17.9
Total with LTVs 163,254 18,924 1,864 184,042 71 55 217 343 - 0.3 11.6 0.2
Other 190 1 1 192 2 - - 2 1.1 - - 1.0
Total 163,444 18,925 1,865 184,234 73 55 217 345 - 0.3 11.6 0.2
Notes
8. Provisions for liabilities and charges
Financial
Redress and other commitments and
litigation Property guarantees Other (1) Total
£m £m £m £m £m
At 1 January 2025 255 59 39 124 477
Expected credit losses impairment charge - - - 8 8
Currency translation and other movements 22 - - - 22
Charge to income statement 19 11 - 102 132
Release to income statement (8) (8) - (10) (26)
Provisions utilised (43) (5) - (44) (92)
At 30 June 2025 245 57 39 180 521
(1) Other materially comprises provisions relating to restructuring
costs and Bank of England levy.
Provisions are liabilities of uncertain timing or amount and are recognised
when there is a present obligation as a result of a past event, the outflow of
economic benefit is probable and the outflow can be estimated reliably. Any
difference between the final outcome and the amounts provided will affect the
reported results in the period when the matter is resolved.
9. Dividends
The Board of National Westminster Bank Plc has declared an interim dividend
for H1 2025 of £1,404 million to be paid to NWH Ltd in H2 2025 (H1 2024 -
£1,636 million).
10. Contingent liabilities and commitments
The amounts shown in the table below are intended only to provide an
indication of the volume of business outstanding at 30 June 2025. Although NWB
Group is exposed to credit risk in the event of non-performance of the
obligations undertaken by customers, the amounts shown do not, and are not
intended to, provide any indication of NWB Group's expectation of future
losses.
30 June 31 December
2025 2024
£m £m
Contingent liabilities and commitments
Guarantees 1,645 1,748
Other contingent liabilities 1,004 1,142
Standby facilities, credit lines and other commitments 100,377 93,758
Total 103,026 96,648
Commitments and contingent obligations are subject to NWB Group's normal
credit approval processes.
Indemnity deed
In April 2019, NWM Plc and NWB Plc entered into a cross indemnity agreement
for losses incurred within the entities in relation to business transferred to
or from the ring-fenced bank under the NatWest Group's structural
re-organisation. Under the agreement, NWM Plc is indemnified by NWB Plc
against losses relating to the NWB Plc transferring businesses and ringfenced
bank obligations and NWB Plc is indemnified by NWM Plc against losses relating
to NWM Plc transferring businesses and non-ring-fenced bank obligations with
effect from the relevant transfer date.
Notes
11. Litigation and regulatory matters
NWB Plc and its subsidiary and associated undertakings ('NWB Group') are party
to various legal proceedings and are involved in, or subject to, various
regulatory matters, including as the subject of investigations and other
regulatory and governmental action (Matters) in the United Kingdom (UK), the
United States (US), the European Union (EU) and other jurisdictions.
NWB Group recognises a provision for a liability in relation to these Matters
when it is probable that an outflow of economic benefits will be required to
settle an obligation resulting from past events, and a reliable estimate can
be made of the amount of the obligation.
In many of the Matters, it is not possible to determine whether any loss is
probable, or to estimate reliably the amount of any loss, either as a direct
consequence of the relevant proceedings and regulatory matters or as a result
of adverse impacts or restrictions on NWB Group's reputation, businesses and
operations. Numerous legal and factual issues may need to be resolved,
including through potentially lengthy discovery and document production
exercises and determination of important factual matters, and by addressing
novel or unsettled legal questions relevant to the proceedings in question,
before the probability of a liability, if any, arising can reasonably be
estimated in respect of any Matter. NWB Group cannot predict if, how, or when
such claims will be resolved or what the eventual settlement, damages, fine,
penalty or other relief, if any, may be, particularly for Matters that are at
an early stage in their development or where claimants seek substantial or
indeterminate damages.
There are situations where NWB Group may pursue an approach that in some
instances leads to a settlement agreement. This may occur in order to avoid
the expense, management distraction or reputational implications of continuing
to contest liability, or in order to take account of the risks inherent in
defending or contesting Matters, even for those for which NWB Group believes
it has credible defences and should prevail on the merits. The uncertainties
inherent in all Matters affect the amount and timing of any potential economic
outflows for both Matters with respect to which provisions have been
established and other contingent liabilities in respect of any such Matter.
It is not practicable to provide an aggregate estimate of potential liability
for our Matters as a class of contingent liabilities.
The future economic outflow in respect of any Matter may ultimately prove to
be substantially greater than, or less than, the aggregate provision, if any,
that NWB Group has recognised in respect of such Matter. Where a reliable
estimate of the economic outflow cannot be reasonably made, no provision has
been recognised. NWB Group expects that in future periods, additional
provisions and economic outflows relating to Matters that may or may not be
currently known by NWB Group will be necessary, in amounts that are expected
to be substantial in some instances. Refer to Note 8 for information on
material provisions.
Matters which are, or could be, material, either individually or in aggregate,
having regard to NWB Group, considered as a whole, in which NWB Group is
currently involved are set out below. We have provided information on the
procedural history of certain Matters, where we believe appropriate, to aid
the understanding of the Matter.
For a discussion of certain risks associated with NWB Group's litigation and
regulatory matters (including the Matters), refer to the Risk Factor relating
to legal, regulatory and governmental actions and investigations set out on
pages 186 to 187 of NatWest Bank Plc's 2024 Annual Report and Accounts.
Litigation
London Interbank Offered Rate (LIBOR) and other rates litigation
In August 2020, a complaint was filed in the United States District Court for
the Northern District of California by several United States retail borrowers
against the USD ICE LIBOR panel banks and their affiliates (including NatWest
Group plc, NWM Plc, NWMSI and NWB Plc), alleging (i) that the very process of
setting USD ICE LIBOR amounts to illegal price-fixing; and (ii) that banks in
the United States have illegally agreed to use LIBOR as a component of price
in variable retail loans. In September 2022, the district court dismissed the
complaint. In December 2024, the United States Court of Appeals for the Ninth
Circuit affirmed the district court's decision. In June 2025, the United
States Supreme Court denied the claimants' petition for review.
Offshoring VAT assessments
HMRC, as part of an industry-wide review, issued protective tax assessments in
2018 against NatWest Group plc totalling £143 million relating to unpaid VAT
in respect of the UK branches of two NatWest Group companies registered in
India for the period from 1 January 2014 until 31 December 2017 inclusive.
NatWest Group formally requested reconsideration by HMRC of their assessments,
and this process was completed in November 2020. HMRC upheld their original
decision and, as a result, NatWest Group plc lodged an appeal with the Tax
Tribunal and an application for judicial review with the High Court of Justice
of England and Wales, both in December 2020.
In order to lodge the appeal with the Tax Tribunal, NatWest Group plc was
required to pay amounts totalling £153 million (including statutory interest)
to HMRC in December 2020 and May 2022. The appeal and the application for
judicial review were previously stayed behind a separate case involving
another bank.
Notes
11. Litigation and regulatory matters continued
NatWest Group plc was informed in late 2024 that the other bank had settled
its case with HMRC by agreement. NatWest Group plc is currently considering
the appropriate next steps for the appeal and the application for judicial
review, in the expectation of progressing the appeal before the Tax Tribunal.
The amount of £153 million continues to be recognised as an asset that
NatWest Group plc expects to recover. Since 1 January 2018, NatWest Group plc
has paid VAT on intra-group supplies from the India-registered NatWest Group
companies.
Regulatory matters
NWB Group's financial condition can be affected by the actions of various
governmental and regulatory authorities in the UK, the US, the EU and
elsewhere. NWB Group and/or NatWest Group have engaged, and will continue to
engage, in discussions with relevant governmental and regulatory authorities,
including in the UK, the US, the EU and elsewhere, on an ongoing and regular
basis, and in response to informal and formal inquiries or investigations,
regarding operational, systems and control evaluations and issues including
those related to compliance with applicable laws and regulations, including
consumer protection, investment advice, business conduct,
competition/anti-trust, VAT recovery, anti-bribery, anti-money laundering and
sanctions regimes.
NWB Group expects government and regulatory intervention in financial services
to be high for the foreseeable future, including increased scrutiny from
competition and other regulators in the retail and SME business sectors.
Any matters discussed or identified during such discussions and inquiries may
result in, among other things, further inquiry or investigation, other action
being taken by governmental and regulatory authorities, increased costs being
incurred by NWB Group, remediation of systems and controls, public or private
censure, restriction of NWB Group's business activities and/or fines. Any of
the events or circumstances mentioned in this paragraph or below could have a
material adverse effect on NWB Group, its business, authorisations and
licences, reputation, results of operations or the price of securities issued
by it, or lead to material additional provisions being taken.
NWB Group is co-operating fully with the matters described below.
Investment advice review
In October 2019, the FCA notified NatWest Group of its intention to appoint a
Skilled Person under section 166 of the Financial Services and Markets Act
2000 to conduct a review of whether NatWest Group's past business review of
investment advice provided during 2010 to 2015 was subject to appropriate
governance and accountability and led to appropriate customer outcomes. The
Skilled Person's review has concluded and, after discussion with the FCA,
NatWest Group is undertaking additional review / remediation work.
Notes
12. Related party transactions
UK Government
In May 2025, the UK Government through His Majesty's Treasury (HMT) sold its
remaining shareholding in NatWest Group plc. Under UK listing rules the UK
Government and UK Government-controlled bodies remained related parties until
12 July 2025, 12 months after the UK Government shareholding in NatWest Group
plc fell below 20%.
NWB Group enters into transactions with many of these bodies. Transactions
include the payment of: taxes - principally UK corporation tax and value added
tax; national insurance contributions; local authority rates; regulatory fees
and levies; together with banking transactions such as loans and deposits
undertaken in the normal course of banker-customer relationships.
Bank of England facilities
NWB Group may participate in a number of schemes operated by the Bank of
England in the normal course of business.
Other related parties
(a) In their roles as providers of finance, NWB Group companies provide
development and other types of capital support to businesses. These
investments are made in the normal course of business.
(b) To further strategic partnerships, NWB Group may seek to invest in third
parties or allow third parties to hold a minority interest in a subsidiary of
NWB Group. We disclose as related parties for associates and joint ventures
and where equity interest are over 10%. Ongoing business transactions with
these entities are on normal commercial terms.
(c) NWB Group recharges the NatWest Group Pension Fund with the cost of
pension management services incurred by it.
(d) In accordance with IAS 24, transactions or balances between NWB Group
entities that have been eliminated on consolidation are not reported.
Full details of NWB Group's related party transactions for the year ended 31
December 2024 are included in the NatWest Bank Plc 2024 Annual Report and
Accounts.
NWB Group's financial assets and liabilities include amounts due from/to
holding companies and fellow subsidiaries as below:
30 June 2025 31 December 2024
Holding Fellow Holding Fellow
companies subsidiaries Total companies subsidiaries Total
£m £m £m £m £m £m
Assets
Loans to banks - amortised cost - 3,742 3,742 - 3,116 3,116
Loans to customers - amortised cost - 14 14 - 12 12
Other financial assets - - - 78 - 78
Other assets 119 419 538 121 409 530
Amounts due from holding companies and
fellow subsidiaries 119 4,175 4,294 199 3,537 3,736
Derivatives (1) 175 928 1,103 168 1,476 1,644
Liabilities
Bank deposits - 29,077 29,077 - 28,632 28,632
Customer deposits 9,438 1 9,439 8,638 1 8,639
Subordinated liabilities 4,079 - 4,079 3,648 - 3,648
MREL instruments issued to NatWest Holdings Ltd 7,287 - 7,287 6,636 - 6,636
Other financial liabilities 28 16 44 - 27 27
Other liabilities 21 153 174 - 142 142
Amounts due to holding companies and
fellow subsidiaries 20,853 29,247 50,100 18,922 28,802 47,724
Derivatives (1) 196 619 815 284 505 789
(1) Intercompany derivatives are included within derivative
classification on the balance sheet.
13. Post balance sheet events
There have been no significant events between 30 June 2025 and the date of
approval of this announcement which would require a change to, or additional
disclosure in, the announcement.
14. Date of approval
This announcement was approved by the Board of Directors on 24 July 2025.
Independent review report to National Westminster Bank Plc
Conclusion
We have been engaged by National Westminster Bank Plc (the 'Group') to review
the condensed consolidated financial statements in the interim results for the
six months ended 30 June 2025 which comprises of the condensed consolidated
income statement, the condensed consolidated statement of comprehensive
income, the condensed consolidated balance sheet, the condensed consolidated
statement of changes in equity, the condensed consolidated cash flow
statement, and related Notes 1 to 14 (together the 'condensed consolidated
financial statements'). We have read the other information contained in the
interim results and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed consolidated
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed consolidated financial statements in the interim
results for the six months ended 30 June 2025 are not prepared, in all
material respects, in accordance with International Accounting Standard 34
(IAS 34) Interim Financial Reporting, as adopted by the United Kingdom (UK)
and as issued by the International Accounting Standards Board (IASB), and the
Disclosure Guidance and Transparency Rules of the UK's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with UK adopted International Accounting Standards, and
International Financial Reporting Standards as issued by the IASB. The
condensed consolidated financial statements included in the interim results
have been prepared in accordance with IAS 34 Interim Financial Reporting, as
adopted by the UK and as issued by the IASB, and the Disclosure Guidance and
Transparency Rules of the UK's Financial Conduct Authority.
Conclusions relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the interim results in accordance
with the Disclosure Guidance and Transparency Rules of the UK's Financial
Conduct Authority.
In preparing the interim results, the directors are responsible for assessing
the Group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the interim results, we are responsible for expressing to the
Group a conclusion on the condensed consolidated financial statements in the
interim results. Our conclusion, including our Conclusions Relating to Going
Concern, are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the Group in accordance with guidance contained
in International Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity"
issued by the Financial Reporting Council. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Group,
for our work, for this report, or for the conclusions we have formed.
Ernst & Young LLP
London, United Kingdom
24 July 2025
NatWest Bank Plc Summary Risk Factors
Summary of Principal Risks and Uncertainties
Set out below is a summary of the principal risks and uncertainties for the
remaining six months of the financial year which could adversely affect NWB
Group. This summary should not be regarded as a complete and comprehensive
statement of all potential risks and uncertainties; a fuller description of
these and other risk factors is included on pages 173 to 190 of the NatWest
Bank Plc 2024 Annual Report and Accounts. Any of the risks identified may have
a material adverse effect on NatWest Group's business, operations, financial
condition or prospects.
Economic and political risk
- NWB Group, its customers and its counterparties face continued
economic and political risks and uncertainties in the UK and global markets,
including as a result of inflation and interest rates, supply chain
disruption, and geopolitical developments.
- Changes in interest rates will continue to affect NWB Group's business
and results.
- Fluctuations in currency exchange rates may adversely affect NWB
Group's results and financial condition.
Business change and execution risk
- The implementation and execution of NatWest Group's (of which NWB
Group forms part) strategy carries execution and operational risks and it may
not achieve its stated aims and targeted outcomes.
- Acquisitions, divestments, or other transactions by NatWest Group
(and/or NWB Group) may not be successful.
- The transfer of NatWest Group's Western European corporate portfolio
involves certain risks.
Financial resilience risk
- NWB Group may not achieve its ambitions or targets, meet its guidance,
or generate sustainable returns.
- NWB Group has significant exposure to counterparty and borrower risk
including credit losses, which may have an adverse effect on NWB Group.
- NWB Group operates in markets that are highly competitive, with
competitive pressures and technology disruption.
- NWB Group may not meet the prudential regulatory requirements for
liquidity and funding or may not be able to adequately access sources of
liquidity and funding, which could trigger the execution of certain management
actions or recovery options.
- NWB Group may not meet the prudential regulatory requirements for
regulatory capital and MREL, or manage its capital effectively, which could
trigger the execution of certain management actions or recovery options.
- NWB Group is reliant on NatWest Group for capital and funding support,
and is substantially reliant on NatWest Group plc's ability to issue
sufficient amounts of capital and external MREL securities and downstream the
proceeds to NWB Group. The inability to do so may adversely affect NWB Group.
- Any reduction in the credit rating and/or outlooks assigned to NatWest
Group plc, any of its subsidiaries (including NWB Plc or other NWB Group
subsidiaries) or any of their respective debt securities could adversely
affect the availability of funding for NWB Group, reduce NWB Group's liquidity
and funding position and increase the cost of funding.
- NWB Group may be adversely affected if NatWest Group fails to meet the
requirements of regulatory stress tests.
- NWB Group could incur losses or be required to maintain higher levels
of capital as a result of limitations or failure of various models.
- NWB Group's financial statements are sensitive to underlying
accounting policies, judgements, estimates and assumptions.
- Changes in accounting standards may materially impact NWB Group's
financial results.
- NatWest Group (including NWB Group) may become subject to the
application of UK statutory stabilisation or resolution powers which may
result in, for example, the write-down or conversion of NWB Group's eligible
liabilities.
- NatWest Group is subject to regulatory oversight in respect of
resolution, and NWB Group could be adversely affected should the BoE in the
future deem NatWest Group's preparations to be inadequate.
Operational and IT resilience risk
- Operational risks (including reliance on third party suppliers and
outsourcing of certain activities) are inherent in NWB Group's businesses.
- NWB Group is subject to sophisticated and frequent cyberattacks, and
compliance with cybersecurity and data protection regulations is becoming
increasingly complex.
- NWB Group's operations and strategy are highly dependent on the
accuracy and effective use of data.
- NWB Group's operations are highly dependent on its complex IT systems
and any IT failure could adversely affect NWB Group.
- NWB Group relies on attracting, retaining and developing diverse
senior management and skilled personnel, and is required to maintain good
employee relations.
- A failure in NWB Group's risk management framework could adversely
affect NWB Group, including its ability to achieve its strategic objectives.
- NWB Group's operations are subject to inherent reputational risk.
NatWest Bank Plc Summary Risk Factors
Summary of Principal Risks and Uncertainties continued
Legal and regulatory risk
- NWB Group's businesses are subject to substantial regulation and
oversight, which are constantly evolving and may adversely affect NWB Group.
- NWB Group is exposed to the risks of various litigation matters,
regulatory and governmental actions and investigations as well as remedial
undertakings, the outcomes of which are inherently difficult to predict, and
which could have an adverse effect on NWB Group.
- Changes in tax legislation (or application thereof) or failure to
generate future taxable profits may impact the recoverability of certain
deferred tax assets recognised by NWB Group.
Climate and sustainability-related risks
- NWB Group and its Value Chain face climate and sustainability-related
risks that may adversely affect NWB Group.
- NatWest Group's strategy relating to climate change, ambitions,
targets and transition plan entail significant execution and/or reputational
risks and are unlikely to be achieved without significant and timely
government policy, technology and customer behavioural changes.
- There are significant limitations related to accessing accurate,
reliable, verifiable, auditable, consistent and comparable climate and other
sustainability-related data that contribute to substantial uncertainties in
accurately modelling and reporting on climate and sustainability information,
as well as making appropriate important internal decisions.
- NWB Group is becoming subject to more extensive, and sophisticated
climate and other sustainability-related laws, regulation and oversight and
there is an increasing risk of regulatory enforcement, investigation and
litigation.
Statement of directors' responsibilities
We, the directors listed below, confirm that to the best of our knowledge:
- the condensed financial statements have been prepared in accordance
with UK adopted IAS 34 'Interim Financial Reporting';
- the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events during the
first six months and description of principal risks and uncertainties for the
remaining six months of the year); and
- the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
By order of the Board
Richard Haythornthwaite John-Paul Thwaite Katie Murray
Chair Chief Executive Officer Chief Financial Officer
24 July 2025
Board of directors
Chair Executive directors Non-executive directors
Richard Haythornthwaite John-Paul Thwaite Francesca Barnes
Katie Murray Karin Cook
Roisin Donnelly
Patrick Flynn
Geeta Gopalan
Yasmin Jetha
Stuart Lewis
Mark Rennison
Gillian Whitehead
Lena Wilson
Additional Information
Presentation of information
National Westminster Bank Plc (NWB Plc or NatWest Bank Plc) is a wholly-owned
subsidiary of NatWest Holdings Limited ('NWH Ltd' or 'the intermediate holding
company'). The term 'NatWest Bank Group' or 'NWB Group' or 'we' refers to NWB
Plc and its subsidiary and associated undertakings. The term 'NWH Group'
refers to NWH Ltd and its subsidiary and associated undertakings. NatWest
Group plc is 'the ultimate holding company'. The term 'NatWest Group' refers
to NatWest Group plc and its subsidiary and associated undertakings. Effective
from Q2 2025, the reportable segment Private Banking was renamed Private
Banking & Wealth Management. This does not change the financial results of
Private Banking & Wealth Management or the consolidated financial results
of NatWest Bank Group.
NWB Plc publishes its financial statements in pounds sterling ('£' or
'sterling'). The abbreviations '£m' and '£bn' represent millions and
thousands of millions of pounds sterling (GBP), respectively, and references
to 'pence' or 'p' represent pence where the amounts are denominated in
sterling. Reference to 'dollars' or '$' are to United States of America ('US')
dollars. The abbreviations '$m' and '$bn' represent millions and thousands of
millions of dollars, respectively. The abbreviation '€' represents the
'euro', and the abbreviations '€m' and '€bn' represent millions and
thousands of millions of euros, respectively.
Statutory accounts
Financial information contained in this document does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006 ("the
Act"). The statutory accounts for the year ended 31 December 2024 have been
filed with the Registrar of Companies. The report of the auditor on those
statutory accounts was unqualified, did not draw attention to any matters by
way of emphasis and did not contain a statement under section 498(2) or (3) of
the Act.
Contact
Claire Kane Investor Relations +44 (0) 20 7672 1758
Forward-looking statements
This document may include forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995, such as
statements with respect to NWB Group's financial condition, results of
operations and business, including its strategic priorities, financial,
investment and capital targets, and climate and sustainability related
targets, commitments and ambitions described herein. Statements that are not
historical facts, including statements about NWB Group's beliefs and
expectations, are forward-looking statements. Words such as 'expect',
'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend',
'will', 'plan', 'could', 'target', 'goal', 'objective', 'may', 'outlook',
'prospects' and similar expressions or variations on these expressions are
intended to identify forward-looking statements. In particular, this document
may include forward-looking statements relating, but not limited to: NWB
Group's economic and political risks, its regulatory capital position and
related requirements, its financial position, profitability and financial
performance (including financial, capital, cost savings and operational
targets), the implementation of NatWest Group's strategy, its climate and
sustainability related ambitions and targets, its access to adequate sources
of liquidity and funding, its ongoing compliance with the UK ring-fencing
regime and ensuring operational continuity in resolution, its impairment
losses and credit exposures under certain specified scenarios, substantial
regulation and oversight, ongoing legal, regulatory and governmental actions
and investigations. Forward-looking statements are subject to a number of
risks and uncertainties that might cause actual results and performance to
differ materially from any expected future results or performance expressed or
implied by the forward-looking statements. Factors that could cause or
contribute to differences in current expectations include, but are not limited
to, future growth initiatives (including acquisitions, joint ventures and
strategic partnerships), the outcome of legal, regulatory and governmental
actions and investigations, the level and extent of future impairments and
write-downs, legislative, political, fiscal and regulatory developments,
accounting standards, competitive conditions, technological developments,
interest and exchange rate fluctuations, and general economic and political
conditions, exposure to third party risk, operational risk, compliance and
conduct risk, cyber, data and IT risk, financial crime risk, key person risk,
credit rating risk, model risk, reputational risk, and the impact of climate
and sustainability related risks and the transitioning to a net zero economy.
These and other factors, risks and uncertainties that may impact any
forward-looking statement or the NWB Group's actual results are discussed in
the NWB Plc's 2024 Annual Report and Accounts, NWB Plc's Interim Results for
H1 2025, and its other public filings. The forward-looking statements
contained in this document speak only as of the date of this document and NWB
Plc does not assume or undertake any obligation or responsibility to update
any of the forward-looking statements contained in this document, whether as a
result of new information, future events or otherwise, except to the extent
legally required.
Legal Entity Identifier: 213800IBT39XQ9C4CP71
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