REG - NatWest Group plc - NatWest Group plc Annual Results 2025
13/02/2026 07:00
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RNS Number : 9275S NatWest Group plc 13 February 2026
Inside this report
Business performance summary
2 2025 performance summary
3 Group Chief Executive's review
7 Performance key metrics and ratios
9 Chief Financial Officer's review
11 Retail Banking
12 Private Banking & Wealth Management
13 Commercial & Institutional
14 Central items & other
15 Segment performance
Risk and capital management
20 Capital, liquidity and funding risk
22 Credit risk
22 Main macroeconomic variables
23 ECL post model adjustments
24 Segment analysis - portfolio summary
26 Analysis of ECL provisions
Financial statements and notes
27 Condensed consolidated income statement
28 Condensed consolidated statement of
comprehensive income
29 Condensed consolidated balance sheet
30 Condensed consolidated statement of
changes in equity
32 Condensed consolidated cash flow
statement
Financial statements and notes continued
33 Presentation of condensed consolidated
financial statements
33 Tax
34 Litigation and regulatory matters
36 Related party transactions
36 Dividends
36 Post balance sheet events
Additional information
37 Statement of directors' responsibilities
38 Presentation of information
38 Statutory accounts
38 Contacts
38 Forward-looking statements
Appendix
40 Non-IFRS financial measures
46 Performance measures not defined
under IFRS
2025 performance summary
Chief Executive, Paul Thwaite, commented:
"2025 was another strong year for NatWest Group, rooted in the support we
provide to people, families and businesses in every nation and region of the
UK. We delivered broad-based growth across our three customer businesses, and
our positive impact is clear to see; whether making home ownership a reality
for more people, helping more customers to save and invest or supporting more
businesses to scale and grow.
Our performance reflects the progress we have made against our strategic
priorities. Income of £16.4 billion and a Return on Tangible Equity of 19.2%
are significantly up on last year, and ahead of guidance, whilst dividends
per share increased by 51% compared to 2024.
It is clear our strategy is working, and we are delivering consistently. We
are raising our ambition and sharpening our strategic focus, with stretching
new targets in place. We must now make the most of the investment we've made
to become even more productive, build deeper customer relationships and ensure
we are the bank of choice in the areas we want to grow.
Across NatWest Group, we are determined to succeed with our customers as a
trusted partner to them and the UK, whilst delivering for our shareholders."
Growth in all of our customer businesses
We have delivered a strong financial performance in 2025 with income and
balance sheet growth across all of our businesses. We have added around one
million new customers in the year, both organically and through the
Sainsbury's Bank transaction, demonstrating our broad-based support for our
customers.
· Total income excluding notable items((1)) was up £1.8 billion to
£16.4 billion in the year supported by deposit margin expansion, as a result
of higher customer balances and strong hedge income, increased customer
lending, strong AUMA growth and an increase in FX trading revenue.
Attributable profit was £5.5 billion with earnings per share of 68.0 pence,
up 27% on the prior year, and a Return on Tangible Equity (RoTE) of 19.2%.
· We are growing in ways that build and strengthen customer
relationships and improve the sustainability of our earnings. Net loans to
customers excluding central items were up by £20.7 billion in the year as we
grew our Retail Banking mortgage book and increased Commercial &
Institutional balances. Customer deposits excluding central items increased by
£10.4 billion with growth across each of the businesses, particularly in
Retail Banking savings.
· We continue to maintain a strong loan:deposit ratio, up 3 points in
the year to 88%, and liquidity position, with an average Liquidity Coverage
Ratio (LCR) of 147%.
· Assets under management and administration (AUMA) grew by 19.6% to
£58.5 billion, assisted by strong client net inflows including more than
50,000 new to invest clients.
Simplification continues to drive efficiency
We continued to make good progress on becoming a simpler, more agile and
technology driven bank by delivering efficiencies from our investment
programmes and digitising more to deliver faster, simpler, and safer customer
journeys. We have accelerated AI and data transformation with partnerships
with Open AI, AWS and Accenture. Our stable cost base has resulted in a
cost:income ratio (excl. litigation and conduct) improvement of 4.8%, to
48.6%, when compared with 2024 and an FTE reduction of c.0.5k in the year.
Active balance sheet management creates capacity for growth
We continued to actively manage our balance sheet and risk, delivering £10.9
billion benefits from RWA management actions as we created capacity for
growth.
Capital generation pre-distributions was 252 basis points in the year as we
increased our capital velocity.
Our Common Equity Tier 1 (CET1) ratio of 14.0% was up c.40 basis points in the
year. TNAV per share increased by 55 pence in the year to 384 pence.
A final dividend of 23.0 pence per share is proposed, bringing the total for
the year to 32.5 pence, up 51% compared to 2024.
(1) Refer to the Non-IFRS financial measures appendix for details of
notable items.
Group Chief Executive's review
Accelerating from a position of strength
NatWest Group delivered another strong year in 2025, rooted in our support for
people, families and businesses in every nation and region of the UK.
We increased our customer base by around a million customers, grew our profit
before tax to £7.7 billion, and delivered a return on tangible equity (RoTE)
of 19.2%, while strong capital generation and distributions came from
increased profitability and disciplined balance sheet and risk management.
What matters most, however, is what sits behind these results: the trust our
customers place in us every day; the commitment of our colleagues; and our
responsibility to create sustainable value for our shareholders.
2025 also marked a symbolic milestone as we returned to full private
ownership, offering an opportunity to reflect on how far the bank has come.
Looking ahead, we have renewed confidence in what we can achieve for NatWest
Group, our shareholders, and as a trusted partner to our customers and the
wider UK economy.
I'm proud to have led this bank over the past two years. In this time, we've
moved decisively: we've sharpened our customer focus; simplified the
organisation; accelerated our technology strategy; and invested with intent in
our future. These choices are now translating into robust performance and
clear momentum across NatWest Group.
We start 2026 from a position of strength. That strength gives us the
confidence to raise our ambition and accelerate our progress - so we can go
further to win together with our customers, colleagues, shareholders and the
communities we are proud to serve across the UK.
Succeeding with our customers
Disciplined growth
All three of our customer businesses - Retail Banking, Private Banking &
Wealth Management, and Corporate & Institutional - delivered broad-based
growth in 2025, with more customers choosing to bank with us. We now serve
over 20 million people, families and businesses across the UK - acting as a
trusted partner to help meet their ambitions.
We supported more customers to manage their money with confidence, with
deposit growth in all three business segments totalling £10.4 billion across
NatWest Group in 2025. And, with saving and investing increasingly part of the
national conversation, more than 50,000 customers invested with us for the
first time, benefiting from the expert advice of our wealth management teams
and ease of our digital offer. This helped us to grow assets under management
and administration by 20%.
We also supported customers through key life events, such as helping more than
200,000 new customers to buy or remortgage a home in 2025 - up 18% on 2024 -
and empowered more families to build healthy financial habits through our
youth proposition, Rooster Money, which now serves 15 times more customers
than when we acquired it in 2021.
Our success reflects our ability to anticipate and respond to changing
customer needs, with the right services and innovative propositions. For
personal customers, our Family-Backed Mortgage addresses the real challenge of
affordability for many people and allows family members to help first-time
buyers while preserving independent ownership. This contributed to our
increased support for first-time buyers, helping over 50,000 customers get
onto the housing ladder in 2025.
Strong organic growth was complemented by the successful integration of around
one million Sainsbury's Bank customers and the £2.3 billion Metro Bank
mortgage portfolio - demonstrating our integration capability and, most
importantly, creating the opportunity to deepen relationships with new
customers.
As the UK's biggest bank for business, we support 1.5 million companies, from
sole-traders to multinational corporates. With a leading share of UK
start-ups, and the largest presence in the mid-market sector, we're uniquely
positioned to partner businesses at every stage of their growth.
We helped more of our business customers to scale and grow, with lending
across Commercial & Institutional up around 10% in 2025, compared with
2024. By supporting UK businesses, we're also helping to deliver key economic
priorities for the UK. In 2025, we were the leading lender to UK
infrastructure, and we expanded our support to social housing and sustainable
finance - helping to strengthen communities and underpin long-term growth.
In an increasingly volatile market, we've helped more businesses manage their
risk effectively by making it easier to access our foreign exchange (FX) and
international payment services through faster onboarding and a simpler digital
experience, with over 130 currencies now supported. Improvements in our offer
meant around 700 mid-market businesses used the service for the first time in
2025.
We also helped more high-potential firms to grow with access to our innovative
intellectual property-backed lending. Around 50% of the completed IP-backed
loans were with customers new to NatWest Group, demonstrating the opportunity
open to us when we pair our expertise with a distinctive customer proposition.
A Simpler Bank
Today, NatWest Group is a simpler bank. It is less complex, with transformed
capabilities and the right building blocks to scale and adapt efficiently as
customer expectations evolve.
The technology foundations across our estate have effectively been rebuilt and
this investment has increased our agility and strengthened resilience. We have
decommissioned legacy platforms and advanced our data transformation at pace.
In Private Banking & Wealth Management, we have migrated our engineering
operations from Switzerland to the UK and India, creating the capacity to
scale. For our Commercial & Institutional customers, the re-platforming of
Bankline (our digital channel for mid-market and corporate customers) has
created a more connected experience and allows us to provide more services
digitally in one place. Building a single trusted view of our customers, is
enabling us to offer a more personalised service, faster decision-making and
more intelligent risk management across the bank.
To drive delivery across the bank, we have rapidly scaled our in-house
engineering team and opened a new hub in Bengaluru, India. We are now
innovating faster and have almost halved the time it takes to deploy new
features, compared with 2024 - making banking quicker, easier and safer for
customers.
Strategic partnerships with global technology leaders, including AWS, OpenAI
and Google, have helped us to accelerate and scale our technology strategy,
and in turn, increase productivity. In addition, our newly established AI
Research Office is at the forefront of cutting-edge research, leading
responsible innovation and building further AI capabilities for the bank. Our
investment in our FinTech Growth Programme has also significantly strengthened
our innovation pipeline. These initiatives give us early access to new and
emerging technologies.
By providing all colleagues with AI tools to support their daily work, we have
freed up capacity to better meet customers' immediate needs and understand
their future requirements.
A trusted partner for UK growth
2025 was a year of macroeconomic uncertainty, with international and domestic
events affecting customers in different ways. Despite the volatility, we
remained cautiously optimistic about the outlook with several factors
reinforcing this measured optimism: the UK economy has continued to grow;
unemployment remains low by historical standards; inflation is moving in
broadly the right direction; and, on aggregate, households and businesses
continue to hold relatively robust savings buffers.
This economic resilience was reflected in the healthy levels of customer
activity during 2025. Housing market activity remained robust, with mortgage
volume growth across the sector supported by temporary changes to stamp duty
thresholds in the first half of the year. Retail sales volumes returned to
positive
year-over-year growth after a challenging few years and discretionary spending
picked up in areas such as travel and hospitality. Businesses continued to
invest for the future, and UK exports increased despite headwinds. Taken
together, these are encouraging signals that the underlying conditions for
growth remain
in place.
We strongly believe in the UK's long-term potential. The UK Government has
positioned the financial services sector as central to its growth strategy and
to the UK's strength on the global stage. The UK has world-class universities
and innovation clusters, leading scientific research, deep capital markets and
highly skilled people - the potential of which can be unlocked through an
internationally competitive banking sector.
Strong economies need strong banks. But our role goes well beyond lending: it
demands our deep expertise; our convening power across sectors and regions;
and our ability to connect capital with opportunity. I have seen the impact we
can deliver for our customers and communities across the UK. For example,
start-ups participating in our free Accelerator community grow their turnover
35% more on average than peers; and the expertise of our colleagues is
building financial confidence at scale - our NatWest Thrive and Financial
Foundations programmes reached more than one million people in 2025, providing
financial education in the places where people live, learn and work.
In March 2025, we brought together our first Mid-Market Growth Council to
provide a unified voice and to advocate for the often- overlooked mid-sized
business sector, helping to unlock their significant growth potential.
Our research found that just 1% growth in this segment could add £35 billion
to the UK economy, with £24 billion of that outside the south-east of
England.
Our commitment to sustainable growth is rooted in our purpose, with the aim of
delivering positive impact through our core activity as a bank. By turning our
customers' possibilities into progress we can help build better, more
resilient businesses, and support people and families to manage their money,
save and invest for the future.
The conditions for growth will be built further by a stable and proportionate
regulatory and policy environment. The UK Government's focus on balanced
regulation which promotes competition and growth, as well as managing risk and
consumer protection, is a welcome step forward. We have already seen tangible
change in targeted areas. For example, the adjustment to mortgage rules
enabled us to lend more to first-time buyers, and we have committed to grow
our support in 2026, with a further £10 billion of lending.
As we look ahead to 2026, further regulatory review could unlock additional
customer benefits and UK growth opportunities; for example, the ongoing Advice
Guidance Boundary Review should help to make financial advice more accessible,
and the Prudential Regulation Authority's review of its rules on ring-fencing
has the potential to create greater capital capacity for the banking sector to
support growth.
Raising our ambition
Our progress has been significant, and it is clear our strategy is working for
both our customers and our shareholders. But success today does not guarantee
success tomorrow.
Our sector is evolving at pace, with customer expectations increasing,
technology redefining what 'best in class' looks like, and competition more
intense than ever. Against this backdrop, we are sharpening our strategic
focus around disciplined growth, leveraging simplification, and active balance
sheet and risk management to drive sustainable value creation.
It is our consistent delivery and the inherent strengths of this bank that
give us confidence we can go further and faster in this next phase. Our
conviction stems from the enduring strength of our customer relationships and
is built on our key differentiators. Deep community roots, expert colleagues,
and a UK-wide relationship manager network mean we are connected to our
customers in their communities. These strengths, underpinned by leading
technology and the scale of our customer insight, give us real competitive
advantage.
Customer growth comes from being first choice in the moments that matter:
helping families with everyday banking and home ownership; supporting affluent
and high-net worth customers to manage and grow their wealth; and backing
high-growth businesses, whether they are start-ups or those with global
ambitions.
Our recently announced acquisition of Evelyn Partners will create the UK's
leading private bank and wealth management business. Not only does this build
scale and strength in our third customer business, but it will transform the
services our customers across NatWest Group can expect from us. Evelyn
Partners brings leading investment capabilities, a quality direct-to-customer
investment platform in Bestinvest - and the biggest in-house team of financial
planners in the UK, as well as a strong regional footprint - helping us to
better support and serve customers through each stage of their financial
lives.
We're also building and deepening our customer relationships with more
personalised, relevant experiences, propositions and partnerships. For
example, our specialist Venture Banking support has been carefully designed to
help boost the UK's innovation economy and our newly announced strategic
partnership with Rightmove will help ensure we're there at the right time, as
a trusted partner when customers are making key financial decisions.
Leveraging Simplification
The next phase of our simplification sees us move from 'build' to 'benefits',
leveraging the investment we've made in our infrastructure and capabilities to
deliver customer growth and even greater productivity.
In a highly competitive environment, future strength will be decided by how
seamlessly a bank operates in service of its customers. Harnessed correctly,
technological advancement and AI can be a game-changing accelerant, reducing
complexity and removing bureaucracy to help make decisions faster, deepen
relationships and deliver transformed customer experiences.
Trust, however, remains the keystone of banking. As technology accelerates, we
are focused on keeping customers safe, protecting them from new and emerging
risks, and leading in the responsible and ethical use of data and AI.
To realise our ambition, it's essential we drive active balance sheet and risk
management. We are bringing more dynamism to how we manage pricing, capital
and risk, ensuring we remain resilient through cycles - a safe, secure and
dependable partner for customers, while sustaining attractive returns.
Customer success
We want to be known not only for the quality of our service and the strength
of our technology platforms, but also for the depth of our relationships and
expertise of our people. As trusted partners, we are empowering our front-line
colleagues to use their insights to make the right decisions for customers and
orientating the whole organisation around our customers' needs: measuring all
colleagues' success by the quality of our customers' experiences.
The stretching targets we have set for growth, productivity and returns
reflect our belief that in pursuing these priorities we will create
sustainable shareholder value. For customers, the prize is a bank that feels
effortless, with connected, intelligent and personalised services available
whenever and however they choose.
Looking ahead
Our progress and strengthened position are thanks to the hard work and
dedication of our colleagues across the UK and internationally.
While we have momentum across NatWest Group, there is no room for complacency.
Banking moves quickly, and customer expectations move faster still.
We've built the foundations and capabilities to both anticipate change and
respond at pace. All this is done in service of our customers, deepening trust
and relationships. We can further accelerate our growth potential using the
full strength of NatWest Group - using the expertise and connections across
our three businesses to build even stronger customer relationships, deliver
sustainable returns and make a meaningful contribution to the UK economy.
Outlook((1))
Based on our current macroeconomic assumptions,
In 2026((2)) we expect:
· Total income excluding notable items in the range of £17.2-17.6
billion.
· Operating expenses, excluding litigation and conduct costs,
around £8.2 billion.
· Loan impairment rate below 25 basis points.
· Return on Tangible Equity greater than 17%.
· Capital generation pre-distributions around 200 basis points.
In 2028 we expect:
· Customer assets and liabilities((3)) to grow at a compound annual
rate of greater than 4% from the end 2025 to end 2028.
· Cost:income ratio, excluding litigation and conduct costs, below
45%.
· Return on Tangible Equity greater than 18%.
· Capital generation pre-distributions of greater than 200 basis
points.
Capital:
· We now target a CET1 ratio of around 13.0%.
· We continue to expect to pay ordinary dividends of around 50% of
attributable profit and will consider buybacks as appropriate.
· We expect Basel 3.1 to increase RWAs by around £10 billion on 1
January 2027.
(1) The guidance, targets, expectations, and trends discussed in this
section represent NatWest Group plc management's current expectations and are
subject to change, including as a result of the factors described in the
NatWest Group plc Risk Factors section in the 2025 Annual Report and Accounts
and Form 20-F. These statements constitute forward-looking statements. Refer
to Forward-looking statements in this announcement.
(2) Excludes the impact of the Evelyn Partners acquisition.
(3) Customer assets and liabilities (CAL) includes customer deposits,
gross loans to customers and AUMA across three businesses Retail Banking,
Private Banking & Wealth Management, and Commercial & Institutional.
Investment cash is deducted as it is reported within customer deposits and
AUMA.
Business performance summary
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
Summary consolidated income statement £m £m Variance £m £m Variance £m Variance
Net interest income 12,829 11,275 13.8% 3,441 3,268 5.3% 2,968 15.9%
Non-interest income 3,812 3,428 11.2% 883 1,064 (17.0%) 857 3.0%
Total income 16,641 14,703 13.2% 4,324 4,332 (0.2%) 3,825 13.0%
Litigation and conduct costs (167) (295) (43.4%) (37) (12) nm (153) (75.8%)
Other operating expenses (8,095) (7,854) 3.1% (2,211) (1,984) 11.4% (2,114) 4.6%
Operating expenses (8,262) (8,149) 1.4% (2,248) (1,996) 12.6% (2,267) (0.8%)
Profit before impairment losses 8,379 6,554 27.8% 2,076 2,336 (11.1%) 1,558 33.2%
Impairment losses (671) (359) 86.9% (136) (153) (11.1%) (66) 106.1%
Operating profit before tax 7,708 6,195 24.4% 1,940 2,183 (11.1%) 1,492 30.0%
Tax charge (1,874) (1,465) 27.9% (462) (502) (8.0%) (233) 98.3%
Profit from continuing operations 5,834 4,730 23.3% 1,478 1,681 (12.1%) 1,259 17.4%
Profit from discontinued operations, net of tax - 81 (100.0%) - - - 69 (100.0%)
Profit for the period 5,834 4,811 21.3% 1,478 1,681 (12.1%) 1,328 11.3%
Performance key metrics and ratios
Notable items within total income (1) £241m £55m nm £52m £166m (68.7%) (£47m) nm
Total income excluding notable items (1) £16,400m £14,648m 12.0% £4,272m £4,166m 2.5% £3,872m 10.3%
Net interest margin (1) 2.34% 2.13% 21bps 2.45% 2.37% 8bps 2.19% 26bps
Average interest earning assets (1) £547bn £529bn 3.4% £557bn £548bn 1.6% £539bn 3.3%
Cost:income ratio (excl. litigation and conduct) (1) 48.6% 53.4% (4.8%) 51.1% 45.8% 5.3% 55.3% (4.2%)
Loan impairment rate (1) 16bps 9bps 7bps 13bps 15bps (2bps) 7bps 6bps
Profit attributable to ordinary shareholders £5,479m £4,519m 21.2% £1,393m £1,598m (12.8%) £1,248m 11.6%
Total earnings per share attributable to ordinary shareholders - basic 68.0p 53.5p 14.5p 17.4p 19.8p (2.4p) 15.3p 2.1p
Return on Tangible Equity (RoTE) (1) 19.2% 17.5% 1.7% 18.3% 22.3% (4.0%) 19.0% (0.7%)
Climate and transition finance (2) £19,026m na na £11,451m £7,569m 51.3% na na
nm = not meaningful, na = not applicable.
For the footnotes to this table refer to the following page.
Business performance summary continued
As at
31 December 30 September 31 December
2025 2025 2024
Balance sheet £bn £bn Variance £bn Variance
Total assets 714.6 725.6 (1.5%) 708.0 0.9%
Loans to customers - amortised cost 418.9 415.3 0.9% 400.3 4.6%
Loans to customers excluding central items (1,3) 389.2 384.5 1.2% 368.5 5.6%
Loans to customers and banks - amortised cost and FVOCI 429.9 427.3 0.6% 410.2 4.8%
Total impairment provisions (4) 3.6 3.7 (2.7%) 3.4 5.9%
Expected credit loss (ECL) coverage ratio 0.83% 0.87% (4bps) 0.83% -
Assets under management and administration (AUMA) (1) 58.5 56.0 4.5% 48.9 19.6%
Customer deposits 443.0 435.5 1.7% 433.5 2.2%
Customer deposits excluding central items (1,3) 441.7 434.7 1.6% 431.3 2.4%
Customer assets and liabilities (CAL) (1) 891.7 877.6 1.6% 850.9 4.8%
Liquidity and funding
Average Liquidity Coverage Ratio (LCR) (5) 147% 148% (1%) 151% (4%)
Liquidity portfolio 238 239 (0.4%) 222 7.2%
Average Net Stable Funding Ratio (NSFR) (5) 135% 135% - 137% (2%)
Loan:deposit ratio (excl. repos and reverse repos) (1) 88% 88% - 85% 3%
Total wholesale funding 88 93 (5.4%) 86 2.3%
Short-term wholesale funding 28 37 (24.3%) 33 (15.2%)
Capital and leverage
Common Equity Tier 1 (CET1) ratio (6) 14.0% 14.2% (20bps) 13.6% 40bps
Total capital ratio (5) 19.3% 20.2% (90bps) 19.7% (40bps)
Pro forma CET1 ratio (excl. foreseeable items) (7) 15.4% 15.1% 30bps 14.3% 110bps
Risk-weighted assets (RWAs) 193.3 189.1 2.2% 183.2 5.5%
UK leverage ratio 4.8% 5.0% (0.2%) 5.0% (0.2%)
Tangible net asset value (TNAV) per ordinary share (1,8) 384p 362p 22p 329p 55p
Number of ordinary shares in issue (millions) (8) 7,995 8,031 (0.4%) 8,043 (0.6%)
(1) Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
(2) Climate and transition finance represents only a relatively small
proportion of our overall financing and facilitation activities. For further
details refer to the NatWest Group plc 2025 Climate Transition Plan Report.
(3) Central items includes treasury repo activity.
(4) Includes £0.1 billion relating to off-balance sheet exposures (30
September 2025 - £0.1 billion; 31 December 2024 - £0.1 billion).
(5) Reported on an average basis in line with supervisory guidelines.
The LCR is calculated as the average of the preceding 12 months. The NSFR is
calculated as the average of the preceding four quarters.
(6) Refer to the Capital, liquidity and funding risk section for
details of the basis of preparation.
(7) The pro forma CET1 ratio at 31 December 2025 excludes foreseeable
items of £2,758 million: £1,837 million for ordinary dividends and £921
million foreseeable charges (30 September 2025 excludes foreseeable items of
£1,721 million: £1,275 million for ordinary dividends and £446 million
foreseeable charges; 31 December 2024 excludes foreseeable items of £1,249
million for ordinary dividends).
(8) The number of ordinary shares in issue excludes own shares held.
Chief Financial Officer's review
We delivered a strong performance in 2025 with total income excluding notable
items of £16.4 billion exceeding our strengthened Q3 2025 guidance. We
remained focussed on cost discipline, achieving our cost target of around
£8.1 billion with further progress made on simplification, resulting in a
cost:income ratio (excl. litigation and conduct) of 48.6% for 2025 compared
with 53.4% in the prior year. As a result, we achieved a RoTE of 19.2%.
The balance sheet has continued to grow over 2025, with lending growth of
£20.7 billion excluding central items and growth of £10.4 billion in
customer deposits excluding central items. Our liquidity position remains
robust with an average LCR of 147%.
Our CET1 ratio for 2025 was 14.0% as we actively managed the balance sheet,
delivering RWA management actions of £10.9 billion over the year which
created continued capacity for growth. RWAs ended the year within our guided
range at £193.3 billion. A final dividend of 23.0 pence per share is
proposed, bringing the total for the year to 32.5 pence, up 51% compared to
2024, and we intend to commence a share buyback programme of £750 million in
the first half of 2026, taking total distributions deducted from capital in
the year to £4.1 billion.
Strong 2025 financial performance across growth and simplification
We are growing in ways that build and strengthen customer relationships and
improve the sustainability of our earnings
· Total income of £16.6 billion increased by 13.2% compared with
2024. Total income excluding notable items was £1.8 billion higher than 2024
reflecting deposit margin expansion, as a result of higher customer balances
and strong hedge income, increased customer lending, strong AUMA growth and an
increase in FX trading revenue. Full year 2025 net interest margin (NIM)
increased by 21 basis points in the year to 2.34% and Q4 2025 NIM of 2.45% was
8 basis points higher in the quarter. We would expect total structural hedge
income to increase by around £1.5 billion in 2026 compared with 2025 and by a
further £1 billion in 2027.((1))
· We continued to support our customers as net loans to customers
excluding central items increased by £20.7 billion in the year. Retail
Banking mortgage balances increased by £5.1 billion and Commercial &
Institutional balances were up by £12.3 billion due to growth in Corporate
& Institutions and Commercial Mid-market. In the quarter, net loans to
customers excluding central items increased by £4.7 billion principally
driven by growth in Corporate & Institutions and broad-based growth across
Commercial Mid-market.
· Customer deposits excluding central items increased £10.4 billion
during 2025 to £441.7 billion primarily reflecting £7.8 billion growth in
Retail Banking, across Savings and Current accounts, and Commercial &
Institutional increased by £2.3 billion largely due to higher balances within
Corporate & Institutions and Business Banking. Customer deposits excluding
central items increased £7.0 billion in Q4 2025 primarily due to growth in
savings balances across Retail Banking and Private Banking & Wealth
Management. Total business term balances increased to 17% in Q4 2025 compared
to 16% of the book at the end of 2024.
· AUMA of £58.5 billion increased by £9.6 billion in 2025,
reflecting AUM net flows of £3.1 billion, AUA net flows of £0.9 billion,
Cushon net flows of £0.6 billion and positive market movements of £5.0
billion.
We continued to make good progress on becoming a simpler, more agile and
technology driven bank by delivering efficiencies from our investment
programmes, digitising more to deliver faster, simpler, and safer customer
journeys and accelerating AI and data transformation
· Total operating expenses were £113 million higher than 2024. Other
operating expenses were £241 million, or 3.1%, higher and in line with our
guidance, which included c.£0.1 billion for integration costs following the
acquisition of balances from Sainsbury's Bank. In the year we recognised
higher costs of transformation, investment in our people resulted in increased
reward through pay and bonus while we also combatted other inflationary
pressures. Partially offsetting this we have continued to drive underlying
cost savings (delivered through branch transformation and digitisation),
further cost reductions as a result of the phased withdrawal from the Republic
of Ireland, lower restructuring costs and reduced Bank levies. In the quarter,
a £227 million increase, compared with Q3 2025, largely reflects higher
property exit costs, other seasonal costs and the annual Bank levy.
We continue to proactively manage risk
· A net impairment charge of £671 million, or 16 basis points of
gross customer loans, included a charge on the acquisition of balances from
Sainsbury's Bank, higher Stage 3 charges and lower good book releases than the
prior year.
· Compared with 2024, our ECL provision increased £0.2 billion to
£3.6 billion and our ECL coverage ratio remained stable at 0.83%. We retain
post model adjustments of £296 million and remain comfortable with the strong
credit performance of our diversified prime loan book.
(1) The guidance, targets, expectations, and trends discussed in this
section represent NatWest Group plc management's current expectations and are
subject to change, including as a result of the factors described in the
NatWest Group plc Risk Factors section in the 2025 Annual Report and Accounts
and Form 20-F. These statements constitute forward-looking statements. Refer
to Forward-looking statements in this announcement.
Chief Financial Officer's review continued
Active balance sheet management supporting robust liquidity levels
· RWAs increased by £10.1 billion during 2025 to £193.3 billion
principally reflecting franchise lending growth of £10.9 billion, operational
risk of £3.8 billion, including an acceleration of c.£1.6 billion from Q1
2026 to align with market practice, £1.3 billion in relation to the balances
acquired from Sainsbury's Bank and an increase of £7.3 billion relating to
CRD IV models partially offset by a further £10.9 billion benefit from RWA
management actions as we continued to actively manage our balance sheet and
create capacity for lending growth.
· The average LCR of 147%, representing £50.5 billion headroom above
100% minimum requirement, decreased by 4 percentage points during the year,
primarily driven by increased lending partially offset by deposit growth. Our
primary liquidity decreased by £3.8 billion to £157.3 billion, of which
£81.1 billion, or 52% was cash and balances at central banks. Total wholesale
funding increased by £2.7 billion in the year to £88.3 billion.
Shareholder return supported strong capital generation
· An attributable profit of £5,479 million, with 27% growth in our
earnings per share to 68.0 pence and RoTE of 19.2%. Q4 2025 RoTE was 18.3%.
· The CET1 ratio of 14.0% increased c.40 basis points in 2025 and
included capital generation pre-distributions of 252 basis points, comprising
c.300 basis points of profit and c.40 basis points of other capital movements
partially offset by the increase in RWAs, c.90 basis points. In Q4 2025 CET1
reduced by c.20 basis points as capital generation of 52 basis points was more
than offset by the proposed share buybacks, c.40 basis points, and ordinary
dividend accrual, c.30 basis points.
· TNAV per share increased by 22 pence in the quarter to 384 pence
primarily reflecting the attributable profit for the period.
Business performance summary
Retail Banking
Year ended Quarter ended or as at
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Total income 6,495 5,650 1,699 1,662 1,501
Operating expenses (2,937) (2,937) (799) (715) (808)
of which: Other operating expenses (2,922) (2,827) (799) (712) (714)
Impairment losses (437) (282) (114) (97) (16)
Operating profit 3,121 2,431 786 850 677
Return on equity (1) 24.7% 19.9% 24.6% 26.4% 21.4%
Net interest margin (1) 2.63% 2.36% 2.70% 2.64% 2.47%
Cost:income ratio (excl. litigation
and conduct) (1) 45.0% 50.0% 47.0% 42.8% 47.6%
Loan impairment rate (1) 20bps 13bps 21bps 18bps 3bps
£bn £bn £bn
Net loans to customers (amortised cost) 216.1 216.0 208.4
Customer deposits 202.6 195.8 194.8
Customer assets and liabilities (CAL) (1) 420.5 413.7 404.9
RWAs 68.5 69.1 65.5
(1) Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
(2) Climate and transition finance represents only a relatively small
proportion of our overall financing and facilitation activities.
In 2025, Retail Banking delivered an operating profit of £3.1 billion and a
return on equity of 24.7%, with positive income and net interest margin
momentum. We support 19 million customers, including 2.4 million youth
customers, along with 529,000 customers within our Premier segment where we
have an NPS of 44. We helped more customers achieve their home ownership goals
with around 30% of 2025 gross mortgage lending supporting first-time buyers
and around £300 million of lending through our Family-Backed Mortgage
proposition. We continue to simplify the business and improve customer and
colleague experiences. New AI capabilities enabled quicker responses to
customer complaints, saving around 90,000 hours per annum through automated
summarisation and AI-generated complaint responses.
Retail Banking provided £2.6 billion of climate and transition finance((2))
in 2025 from lending on properties with an EPC rating of A or B.
Full year 2025 performance
· Total income was £845 million, or 15.0%, higher than 2024
reflecting strong deposit growth and margin expansion as a result of increased
hedge income, lending growth and the impact of balances acquired from
Sainsbury's Bank.
· Net interest margin was 27 basis points higher than 2024 largely
reflecting the factors noted above.
· Non-interest income of £431 million was £14 million, or 3.4%,
higher than 2024 including the impact of balances acquired from Sainsbury's
Bank.
· Other operating expenses were £95 million, or 3.4%, higher than
2024 reflecting costs associated with balances acquired from Sainsbury's Bank,
partially offset by a 4.2% reduction in headcount.
· An impairment charge of £437 million, compared with a £282
million charge in 2024, largely driven by charges associated with balances
acquired from Sainsbury's Bank along with increased charges driven by growth
in our unsecured book. The rate of Stage 3 default flow remains broadly
stable.
· Net loans to customers increased by £7.7 billion, or 3.7%, in 2025
driven by £5.1 billion, or 2.6%, higher mortgage balances. Cards balances
increased by £1.4 billion, or 20.0%, and personal advances increased by £1.3
billion, or 16.0%, supported by balances acquired from Sainsbury's Bank.
· Customer deposits increased by £7.8 billion, or 4.0%, in 2025
reflecting growth in savings and current account balances, supported by
balances acquired from Sainsbury's Bank.
· RWAs increased by £3.0 billion, or 4.6%, in 2025 primarily due to
book movements including the impact of unsecured balances acquired from
Sainsbury's Bank.
Q4 2025 performance
· Total income was £37 million, or 2.2%, higher than Q3 2025 largely
reflecting deposit margin expansion as a result of increased hedge income.
· Net interest margin was 6 basis points higher than Q3 2025 largely
reflecting the factors noted above.
· Other operating expenses were £87 million, or 12.2%, higher than
Q3 2025 reflecting the inclusion of the annual Bank Levy, higher property exit
costs and higher investment spend, partially offset by a 0.9% reduction in
headcount.
· An impairment charge of £114 million, compared with a £97 million
charge in Q3 2025, largely reflecting the non-repeat of Q3 2025 credit card
good book model release. Stage 3 default driven charge remains broadly stable
in line with portfolio growth and the modest ECL uplift from the Q4 2025 MES
economic scenario update was more than offset by mortgage securitisation
benefit.
· Net loans to customers increased £0.1 billion in the quarter.
Mortgage balances are flat in the quarter driven by underlying balance growth
of £2.1 billion, offset by a mortgage securitisation impact of £2.1 billion.
· Customer deposits increased by £6.8 billion, or 3.5%, in the
quarter reflecting £6.4 billion higher savings balances and £0.4 billion
higher current account balances.
· RWAs decreased by £0.6 billion, or 0.9%, in the quarter due to RWA
management activity including mortgage securitisation impact offset by
operational risk increases and book movements.
Business performance summary continued
Private Banking & Wealth Management
Year ended Quarter ended or as at
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Total income 1,131 969 308 284 272
of which: AUMA income (1) 300 270 81 75 72
Operating expenses (727) (716) (195) (173) (194)
of which: Other operating expenses (725) (713) (195) (172) (192)
Impairment (losses)/releases (10) 11 (6) (3) (3)
Operating profit 394 264 107 108 75
Return on equity (1) 21.7% 14.2% 23.6% 23.4% 16.3%
Net interest margin (1) 2.63% 2.40% 2.72% 2.66% 2.72%
Cost:income ratio (excl. litigation
and conduct) (1) 64.1% 73.6% 63.3% 60.6% 70.6%
Loan impairment rate (1) 5bps (6bps) 13bps 6bps 7bps
AUMA net flows (£bn) (1) 4.6 3.2 1.3 1.2 1.0
£bn £bn £bn
Net loans to customers (amortised cost) 18.9 18.8 18.2
Customer deposits 42.7 40.6 42.4
Assets under management (AUM) (1) 43.7 41.9 37.0
Assets under administration (AUA) (1) 14.8 14.1 11.9
Total assets under management and administration (AUMA) (1) 58.5 56.0 48.9
Customer assets and liabilities (CAL) (1,2) 119.0 114.3 108.5
RWAs 11.4 11.4 11.0
(1) Refer to the Non-IFRS financial measures appendix for details of
basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
(2) CAL refers to customer deposits, gross loans to customers -
amortised cost and AUMA. To avoid double counting, investment cash is deducted
as it is reported within customer deposits and AUMA.
(3) Climate and transition finance represents only a relatively small
proportion of our overall financing and facilitation activities.
In 2025, Private Banking & Wealth Management delivered an operating profit
of £394 million and return on equity of 21.7%. As part of our strategy to
deepen focus on high net worth and ultra-high net worth segments, we refreshed
our visual identity and enhanced our investment insight, including a new
Coutts website which delivers a faster and more responsive experience. AI
tooling has reduced call summarisation time by more than 70% and we have
continued to see strong customer engagement across our propositions, resulting
in an increase in CAL of 9.7% in the year with growth in deposits, lending and
AUMA.
Private Banking provided £0.2 billion of climate and transition finance((3))
in 2025, principally in relation to mortgages on residential properties with
an EPC rating of A or B and wholesale transactions.
Full year 2025 performance
· Total income was £162 million, or 16.7%, higher than 2024
primarily reflecting deposit margin expansion as a result of strong hedge
income, balance growth across deposits and AUMA, and higher transactional fees
including some non-repeatable adjustments.
· Net interest margin was 23 basis points higher than 2024 largely
reflecting the factors noted above.
· Non-interest income of £374 million was £50 million, or 15.4%,
higher than 2024 principally due to higher AUMA balances and higher
transactional fees including some non-repeatable adjustments.
· Other operating expenses were £12 million, or 1.7%, higher
reflecting continuing investment in the business and higher pay awards to
support our colleagues, partly offset by lower severance costs.
· An impairment charge of £10 million, compared with an £11 million
release in 2024, largely reflecting the non-repeat of 2024 good book releases,
and an increase in Stage 3 charges relating to existing exposures.
· Net loans to customers increased £0.7 billion, or 3.8%, in 2025
largely driven by higher personal lending balances and higher commercial
lending balances.
· Customer deposits increased by £0.3 billion, or 0.7%, in 2025
reflecting growth in current account and savings balances, with progress
driven by both deeper engagement with existing customers and new customer
acquisition
· AUMA of £58.5 billion increased by £9.6 billion in 2025,
reflecting AUM net flows of £3.1 billion, AUA net flows of £0.9 billion,
Cushon net flows of £0.6 billion and positive market movements of £5.0
billion. AUM net flows as a percentage of opening balances are 8.4%
Q4 2025 performance
· Total income was £24 million, or 8.5%, higher than Q3 2025
primarily reflecting deposit margin expansion as a result of strong hedge
income, balance growth across deposits and AUMA, and some non-repeatable
adjustments in transactional fees.
· Net interest margin was 6 basis points higher than Q3 2025 largely
reflecting deposit margin expansion.
· Other operating expenses were £23 million, or 13.4%, higher than
Q3 2025 reflecting the inclusion of the annual Bank Levy.
· An impairment charge of £6 million, compared with a £3 million
charge in Q3 2025, reflecting an increase in Stage 3 charges relating to
existing exposures. New charges on inflows to default remain low.
· Net loans to customers increased by £0.1 billion, or 0.5%, in Q4
2025 driven by higher personal lending balances.
· Customer deposits increased by £2.1 billion, or 5.2%, in Q4 2025
reflecting growth in savings and current account balances, supported by new
customer acquisition
· AUMA increased £2.5 billion in Q4 2025 driven by AUM net flows of
£0.9 billion, AUA net flows of £0.3 billion, Cushon net flows of £0.2
billion, and positive market movements of £1.1 billion. AUM net flows as a
percentage of opening balances are 8.6% on an annualised basis.
Business performance summary continued
Commercial & Institutional
Year ended Quarter ended or as at
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Net interest income 6,149 5,339 1,644 1,550 1,404
Non-interest income 2,660 2,618 668 658 682
Total income 8,809 7,957 2,312 2,208 2,086
Operating expenses (4,520) (4,274) (1,254) (1,115) (1,179)
of which: Other operating expenses (4,347) (4,118) (1,225) (1,060) (1,134)
Impairment losses (225) (98) (19) (52) (46)
Operating profit 4,064 3,585 1,039 1,041 861
Return on equity (1) 19.1% 17.2% 19.4% 19.7% 16.6%
Net interest margin (1) 2.37% 2.16% 2.45% 2.36% 2.21%
Cost:income ratio (excl. litigation
and conduct) (1) 49.3% 51.8% 53.0% 48.0% 54.4%
Loan impairment rate (1) 14bps 7bps 5bps 14bps 13bps
£bn £bn £bn
Net loans to customers
(amortised cost) 154.2 149.7 141.9
Customer deposits (2) 196.4 198.3 194.1
Funded assets (1) 331.4 348.2 321.6
Customer assets and liabilities (CAL) (1) 352.2 349.6 337.5
RWAs 111.9 107.0 104.7
(1) Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
(2) Client transfers from Commercial Mid-market to Corporate &
Institutions in Q1 2025 of £4.9 billion. Balance at the end of 31 December
2025 was £2.7 billion (31 December 2024 - £3.3 billion).
(3) Social finance represents only a relatively small proportion of
our overall financing activities.
(4) Climate and transition finance represents only a relatively small
proportion of our overall financing and facilitation activities.
During 2025, Commercial & Institutional continued to support customers
with an increase in lending of 8.7% and delivered a strong performance in
income and operating profit supporting a return on equity of 19.1%, an
increase from 17.2% in 2024. We worked with our customers to unlock growth for
key structural and policy priorities in the UK, particularly social housing
and infrastructure investment. In 2025, we committed over £4.6 billion of
lending into the UK social housing sector, surpassing our upgraded target of
£7.5 billion by the end of 2026, with total commitments of £8.7
billion.((3)) We prioritised the use of generative AI through AI-driven
transcription and summarisation of complaints and complex business banking
calls, increasing our relationship managers' capacity to focus on personalised
AI-guided interactions.
Commercial & Institutional provided £16.2 billion of climate and
transition finance((4)) in 2025 to support customers investing in the
transition to net zero.
Full year 2025 performance
· Total income was £852 million, or 10.7%, higher than 2024
principally reflecting deposit margin expansion as a result of higher customer
balances and strong hedge income, increased FX trading revenues and lending
growth across Corporate & Institutions and Commercial Mid-market.
· Net interest margin was 21 basis points higher than 2024 largely
reflecting deposit margin expansion.
· Non-interest income was £42 million, or 1.6%, higher than 2024
principally driven by customer activity in markets trading and a dividend
received on restructuring of a strategic investment in Corporate &
Institutions.
· Other operating expenses were £229 million, or 5.6%, higher than
2024 reflecting the impact of inflationary increases in staff costs and
continued business investment spend, partially offset by a 3.9 % reduction in
headcount.
· An impairment charge of £225 million in 2025, compared with a £98
million charge in 2024, reflecting lower good book releases. Stage 3 charge
remains broadly stable.
· Net loans to customers increased by £12.3 billion, or 8.7%, in
2025 principally due to growth in Corporate & Institutions and Commercial
Mid-market, partly offset by UK Government scheme repayments of £1.6 billion.
· Customer deposits increased by £2.3 billion, or 1.2%, in 2025
reflecting growth within Corporate & Institutions and Business Banking.
Excluding client transfers, deposit balances in all customer groups grew in
the year. ((2))
· RWAs increased by £7.2 billion, or 6.9%, compared with 2024
primarily due to CRD IV, other regulatory increases and increased operational
risk, with book growth offset by continued RWA management activity.
Q4 2025 performance
· Total income was £104 million, or 4.7%, higher than Q3 2025
principally reflecting deposit margin expansion from hedge income and a
dividend received on restructuring of a strategic investment in Corporate
& Institutions.
· Net interest margin was 9 basis points higher than Q3 2025 largely
reflecting deposit structural hedge benefits.
· Other operating expenses were £165 million, or 15.6%, higher than
Q3 2025 reflecting the annual Bank Levy and continued business investment
spend.
· An impairment charge of £19 million in Q4 2025 compared with a
£52 million charge in Q3 2025 reflecting lower Stage 3 charges.
· Net loans to customers increased by £4.5 billion, or 3.0%, in Q4
2025 principally due to broad based growth particularly within Housing and
Asset Finance sectors in Commercial Mid-market and from Funds lending,
Infrastructure and Project Finance growth within Corporate & Institutions,
partly offset by UK Government scheme repayments of £0.3 billion.
· Customer deposits decreased by £1.9 billion, or 1.0%, in Q4 2025
reflecting expected lower balances in Corporate & Institutions and lower
balances in Commercial Mid-market, partly offset by higher Business Banking
balances.
· RWAs increased by £4.9 billion, or 4.6%, compared with Q3 2025
primarily due to an increase for CRD IV models, operational risk increases and
book movements, partly offset by continued RWA management activity.
Business performance summary continued
Central items & other
Year ended Quarter ended or as at
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Continuing operations
Total income 206 127 5 178 (34)
Operating expenses (78) (222) - 7 (86)
of which: Other operating
expenses (101) (196) 8 (40) (74)
Impairment releases/(losses) 1 10 3 (1) (1)
Operating profit/(loss) 129 (85) 8 184 (121)
£bn £bn £bn
Net loans to customers
(amortised cost) 29.7 30.8 31.8
Customer deposits 1.3 0.8 2.2
RWAs 1.5 1.6 2.0
Full year 2025 performance
· Total income was £79 million higher than 2024 primarily reflecting
higher gains on interest and FX risk management derivatives not in accounting
hedge relationships, higher Business Growth Fund profits and lower foreign
exchange recycling losses.
· Other operating expenses were £95 million lower than 2024
primarily due to lower costs in relation to our withdrawal from our operations
in the Republic of Ireland.
· Net loans to customers decreased by £2.1 billion in 2025 driven by
reverse repo activity in Treasury
· Customer deposits decreased by £0.9 billion compared with 2024
reflecting repo activity in Treasury.
Q4 2025 performance
· Total income was £173 million lower than Q3 2025 primarily
reflecting lower gains on interest and FX risk management derivatives not in
accounting hedge relationships, lower Business Growth Fund profits and a loss
on reclassification to disposal groups.
· Other operating expenses were £48 million lower than Q3 2025
primarily due to indirect cost allocation phasing across the year and the
non-repeat of Q3 2025 Bank of England levy.
· Net loans to customers decreased by £1.1 billion in Q4 2025 driven
by reverse repo activity in Treasury
· Customer deposits increased by £0.5 billion in Q4 2025 reflecting
repo activity in Treasury.
Segment performance
Year ended 31 December 2025
Private Banking
Retail & Wealth Commercial Central items Total NatWest
Banking Management & Institutional & other Group
£m £m £m £m £m
Continuing operations
Income statement
Net interest income 6,064 757 6,149 (141) 12,829
Own credit adjustments - - 1 - 1
Other non-interest income 431 374 2,659 347 3,811
Total income 6,495 1,131 8,809 206 16,641
Direct expenses (835) (250) (1,633) (5,377) (8,095)
Indirect expenses (2,087) (475) (2,714) 5,276 -
Other operating expenses (2,922) (725) (4,347) (101) (8,095)
Litigation and conduct costs (15) (2) (173) 23 (167)
Operating expenses (2,937) (727) (4,520) (78) (8,262)
Operating profit before impairment losses/releases 3,558 404 4,289 128 8,379
Impairment (losses)/releases (437) (10) (225) 1 (671)
Operating profit 3,121 394 4,064 129 7,708
Income excluding notable items (1) 6,495 1,131 8,757 17 16,400
Additional information
Return on Tangible Equity (1) na na na na 19.2%
Return on equity (1) 24.7% 21.7% 19.1% nm na
Cost:income ratio (excl. litigation and conduct) (1) 45.0% 64.1% 49.3% nm 48.6%
Total assets (£bn) 240.3 30.5 391.9 51.9 714.6
Funded assets (£bn) (1) 240.3 30.5 331.4 51.6 653.8
Net loans to customers - amortised cost (£bn) 216.1 18.9 154.2 29.7 418.9
Loan impairment rate (1) 20bps 5bps 14bps nm 16bps
Impairment provisions (£bn) (1.8) (0.1) (1.7) - (3.6)
Impairment provisions - Stage 3 (£bn) (1.1) (0.1) (1.0) - (2.2)
Customer deposits (£bn) 202.6 42.7 196.4 1.3 443.0
Risk-weighted assets (RWAs) (£bn) 68.5 11.4 111.9 1.5 193.3
RWA equivalent (RWAe) (£bn) 69.7 11.4 112.9 1.7 195.7
Customer assets and liabilities (CAL) (£bn) (1) 420.5 119.0 352.2 na 891.7
Employee numbers (FTEs - thousands) 11.5 2.1 12.3 32.8 58.7
Third party customer asset rate (1) 4.36% 4.72% 5.94% nm nm
Third party customer funding rate (1) (1.74%) (2.68%) (1.55%) nm nm
Average interest earning assets (£bn) (1) 230.9 28.8 259.4 na 547.4
Net interest margin (1) 2.63% 2.63% 2.37% na 2.34%
nm = not meaningful, na = not applicable.
(1) Refer to the Non-IFRS financial measures appendix for details of the basis of
preparation and reconciliation of non-IFRS financial measures and performance
metrics.
Segment performance continued
Year ended 31 December 2024
Private Banking
Retail & Wealth Commercial Central items Total NatWest
Banking Management & Institutional & other Group
£m £m £m £m £m
Continuing operations
Income statement
Net interest income 5,233 645 5,339 58 11,275
Own credit adjustments - - (9) - (9)
Other non-interest income 417 324 2,627 69 3,437
Total income 5,650 969 7,957 127 14,703
Direct expenses (777) (255) (1,537) (5,285) (7,854)
Indirect expenses (2,050) (458) (2,581) 5,089 -
Other operating expenses (2,827) (713) (4,118) (196) (7,854)
Litigation and conduct costs (110) (3) (156) (26) (295)
Operating expenses (2,937) (716) (4,274) (222) (8,149)
Operating profit/(loss) before impairment losses/releases 2,713 253 3,683 (95) 6,554
Impairment (losses)/releases (282) 11 (98) 10 (359)
Operating profit/(loss) 2,431 264 3,585 (85) 6,195
Income excluding notable items (1) 5,650 969 7,966 63 14,648
Additional information
Return on Tangible Equity (1) na na na na 17.5%
Return on equity (1) 19.9% 14.2% 17.2% nm na
Cost:income ratio (excl. litigation and conduct) (1) 50.0% 73.6% 51.8% nm 53.4%
Total assets (£bn) 232.8 28.6 398.7 47.9 708.0
Funded assets (£bn) (1) 232.8 28.6 321.6 46.6 629.6
Net loans to customers - amortised cost (£bn) 208.4 18.2 141.9 31.8 400.3
Loan impairment rate (1) 13bps (6bps) 7bps nm 9bps
Impairment provisions (£bn) (1.8) (0.1) (1.5) - (3.4)
Impairment provisions - Stage 3 (£bn) (1.1) - (0.9) - (2.0)
Customer deposits (£bn) 194.8 42.4 194.1 2.2 433.5
Risk-weighted assets (RWAs) (£bn) 65.5 11.0 104.7 2.0 183.2
RWA equivalent (RWAe) (£bn) 66.5 11.0 105.9 2.5 185.9
Customer assets and liabilities (CAL) (£bn) (1) 404.9 108.5 337.5 na 850.9
Employee numbers (FTEs - thousands) 12.0 2.1 12.8 32.3 59.2
Third party customer asset rate (1) 4.02% 5.05% 6.64% nm nm
Third party customer funding rate (1) (2.05%) (3.13%) (1.90%) nm nm
Average interest earning assets (£bn) (1) 222.0 26.9 246.8 na 529.3
Net interest margin (1) 2.36% 2.40% 2.16% na 2.13%
nm = not meaningful, na = not applicable.
(1) Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
Segment performance continued
Quarter ended 31 December 2025
Private Banking
Retail & Wealth Commercial Central items Total NatWest
Banking Management & Institutional & other Group
£m £m £m £m £m
Continuing operations
Income statement
Net interest income 1,593 202 1,644 2 3,441
Own credit adjustments - - (2) - (2)
Other non-interest income 106 106 670 3 885
Total income 1,699 308 2,312 5 4,324
Direct expenses (231) (67) (441) (1,472) (2,211)
Indirect expenses (568) (128) (784) 1,480 -
Other operating expenses (799) (195) (1,225) 8 (2,211)
Litigation and conduct costs - - (29) (8) (37)
Operating expenses (799) (195) (1,254) - (2,248)
Operating profit before impairment losses/releases 900 113 1,058 5 2,076
Impairment (losses)/releases (114) (6) (19) 3 (136)
Operating profit 786 107 1,039 8 1,940
Income excluding notable items (1) 1,699 308 2,263 2 4,272
Additional information
Return on Tangible Equity (1) na na na na 18.3%
Return on equity (1) 24.6% 23.6% 19.4% nm na
Cost:income ratio (excl. litigation and conduct) (1) 47.0% 63.3% 53.0% nm 51.1%
Total assets (£bn) 240.3 30.5 391.9 51.9 714.6
Funded assets (£bn) (1) 240.3 30.5 331.4 51.6 653.8
Net loans to customers - amortised cost (£bn) 216.1 18.9 154.2 29.7 418.9
Loan impairment rate (1) 21bps 13bps 5bps nm 13bps
Impairment provisions (£bn) (1.8) (0.1) (1.7) - (3.6)
Impairment provisions - Stage 3 (£bn) (1.1) (0.1) (1.0) - (2.2)
Customer deposits (£bn) 202.6 42.7 196.4 1.3 443.0
Risk-weighted assets (RWAs) (£bn) 68.5 11.4 111.9 1.5 193.3
RWA equivalent (RWAe) (£bn) 69.7 11.4 112.9 1.7 195.7
Customer assets and liabilities (CAL) (£bn) (1) 420.5 119.0 352.2 na 891.7
Employee numbers (FTEs - thousands) 11.5 2.1 12.3 32.8 58.7
Third party customer asset rate (1) 4.42% 4.66% 5.69% nm nm
Third party customer funding rate (1) (1.63%) (2.47%) (1.41%) nm nm
Average interest earning assets (£bn) (1) 234.1 29.5 266.4 na 557.2
Net interest margin (1) 2.70% 2.72% 2.45% na 2.45%
nm = not meaningful, na = not applicable.
(1) Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
Segment performance continued
Quarter ended 30 September 2025
Private Banking
Retail & Wealth Commercial Central items Total NatWest
Banking Management & Institutional & other Group
£m £m £m £m £m
Continuing operations
Income statement
Net interest income 1,549 192 1,550 (23) 3,268
Own credit adjustments - - - - -
Other non-interest income 113 92 658 201 1,064
Total income 1,662 284 2,208 178 4,332
Direct expenses (208) (61) (410) (1,305) (1,984)
Indirect expenses (504) (111) (650) 1,265 -
Other operating expenses (712) (172) (1,060) (40) (1,984)
Litigation and conduct costs (3) (1) (55) 47 (12)
Operating expenses (715) (173) (1,115) 7 (1,996)
Operating profit before impairment losses 947 111 1,093 185 2,336
Impairment losses (97) (3) (52) (1) (153)
Operating profit 850 108 1,041 184 2,183
Income excluding notable items (1) 1,662 284 2,208 12 4,166
Additional information
Return on Tangible Equity (1) na na na na 22.3%
Return on equity (1) 26.4% 23.4% 19.7% nm na
Cost:income ratio (excl. litigation and conduct) (1) 42.8% 60.6% 48.0% nm 45.8%
Total assets (£bn) 240.6 29.1 408.9 47.0 725.6
Funded assets (£bn) (1) 240.6 29.1 348.2 46.6 664.5
Net loans to customers - amortised cost (£bn) 216.0 18.8 149.7 30.8 415.3
Loan impairment rate (1) 18bps 6bps 14bps nm 15bps
Impairment provisions (£bn) (1.9) (0.1) (1.7) - (3.7)
Impairment provisions - Stage 3 (£bn) (1.2) - (1.1) - (2.3)
Customer deposits (£bn) 195.8 40.6 198.3 0.8 435.5
Risk-weighted assets (RWAs) (£bn) 69.1 11.4 107.0 1.6 189.1
RWA equivalent (RWAe) (£bn) 69.9 11.4 108.0 1.9 191.2
Customer assets and liabilities (CAL) (£bn) (1) 413.7 114.3 349.6 na 877.6
Employee numbers (FTEs - thousands) 11.6 2.1 12.6 32.8 59.1
Third party customer asset rate (1) 4.40% 4.66% 5.88% nm nm
Third party customer funding rate (1) (1.69%) (2.61%) (1.49%) nm nm
Average interest earning assets (£bn) (1) 233.0 28.6 260.5 na 548.1
Net interest margin (1) 2.64% 2.66% 2.36% na 2.37%
nm = not meaningful, na = not applicable.
(1) Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
Segment performance continued
Quarter ended 31 December 2024
Private Banking
Retail & Wealth Commercial Central items Total NatWest
Banking Management & Institutional & other Group
£m £m £m £m £m
Continuing operations
Income statement
Net interest income 1,408 190 1,404 (34) 2,968
Own credit adjustments - - (4) - (4)
Other non-interest income 93 82 686 - 861
Total income 1,501 272 2,086 (34) 3,825
Direct expenses (191) (65) (417) (1,441) (2,114)
Indirect expenses (523) (127) (717) 1,367 -
Other operating expenses (714) (192) (1,134) (74) (2,114)
Litigation and conduct costs (94) (2) (45) (12) (153)
Operating expenses (808) (194) (1,179) (86) (2,267)
Operating profit/(loss) before impairment losses 693 78 907 (120) 1,558
Impairment losses (16) (3) (46) (1) (66)
Operating profit/(loss) 677 75 861 (121) 1,492
Income excluding notable items (1) 1,501 272 2,090 9 3,872
Additional information
Return on Tangible Equity (1) na na na na 19.0%
Return on equity (1) 21.4% 16.3% 16.6% nm na
Cost:income ratio (excl. litigation and conduct) (1) 47.6% 70.6% 54.4% nm 55.3%
Total assets (£bn) 232.8 28.6 398.7 47.9 708.0
Funded assets (£bn) (1) 232.8 28.6 321.6 46.6 629.6
Net loans to customers - amortised cost (£bn) 208.4 18.2 141.9 31.8 400.3
Loan impairment rate (1) 3bps 7bps 13bps nm 7bps
Impairment provisions (£bn) (1.8) (0.1) (1.5) - (3.4)
Impairment provisions - Stage 3 (£bn) (1.1) - (0.9) - (2.0)
Customer deposits (£bn) 194.8 42.4 194.1 2.2 433.5
Risk-weighted assets (RWAs) (£bn) 65.5 11.0 104.7 2.0 183.2
RWA equivalent (RWAe) (£bn) 66.5 11.0 105.9 2.5 185.9
Customer assets and liabilities (CAL) (£bn) (1) 404.9 108.5 337.5 na 850.9
Employee numbers (FTEs - thousands) 12.0 2.1 12.8 32.3 59.2
Third party customer asset rate (1) 4.21% 5.22% 6.36% nm nm
Third party customer funding rate (1) (1.97%) (3.06%) (1.83%) nm nm
Average interest earning assets (£bn) (1) 226.3 27.8 252.2 na 538.8
Net interest margin (1) 2.47% 2.72% 2.21% na 2.19%
nm - not meaningful, na - not applicable
(1) Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial measures and
performance metrics.
Risk and capital management
Capital, liquidity and funding risk
Capital and leverage ratios
The tables below show key prudential metrics calculated in accordance with
current PRA rules.
31 December 30 September 31 December
2025 2025 2024
Capital adequacy ratios (1) % % %
CET1 14.0 14.2 13.6
Tier 1 16.4 17.2 16.5
Total 19.3 20.2 19.7
Capital £m £m £m
Tangible equity 30,736 29,093 26,482
Expected loss less impairment (89) (35) (27)
Prudential valuation adjustment (167) (172) (230)
Deferred tax assets (804) (834) (1,084)
Own credit adjustments 42 34 28
Pension fund assets (187) (163) (147)
Cash flow hedging reserve 752 886 1,443
Foreseeable ordinary dividends (1,837) (1,275) (1,249)
Adjustment for trust assets (2) (365) (365) (365)
Foreseeable charges (3) (921) (446) -
Adjustments under IFRS 9 transitional arrangements - - 33
Other adjustments for regulatory purposes (94) 46 44
Total regulatory adjustments (3,670) (2,324) (1,554)
CET1 capital 27,066 26,769 24,928
Additional AT1 capital 4,555 5,771 5,259
Tier 1 capital 31,621 32,540 30,187
Tier 2 capital 5,754 5,752 5,918
Total regulatory capital 37,375 38,292 36,105
Risk-weighted assets
Credit risk 155,610 151,945 148,078
Counterparty credit risk 7,609 7,397 7,103
Market risk 4,474 5,825 6,219
Operational risk 25,595 23,959 21,821
Total RWAs 193,288 189,126 183,221
(1) The IFRS 9 transitional capital rules in respect of ECL provisions
ceased to apply as of 1 January 2025. (The impact of the IFRS 9 transitional
adjustments at 31 December 2024 was £33 million for CET1 capital, £33
million for total capital and £3 million RWAs. Excluding this adjustment at
31 December 2024, the CET1 ratio was 13.6%, Tier 1 capital ratio was 16.5% and
the Total capital ratio was 19.7%).
(2) Prudent deduction in respect of agreement with the pension fund.
(3) For December 2025, the foreseeable charge relates to share
buybacks (£750 million relating to FY 2025, £171 million relating to H1
2025).
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital and leverage ratios continued
31 December 30 September 31 December
2025 2025 2024
Leverage £m £m £m
Cash and balances at central banks 85,182 84,686 92,994
Trading assets 46,537 56,856 48,917
Derivatives 60,789 61,119 78,406
Financial assets 505,609 494,874 469,599
Other assets 16,436 28,100 18,069
Total assets 714,553 725,635 707,985
Derivatives
- netting and variation margin (58,769) (58,580) (76,101)
- potential future exposures 18,155 17,690 16,692
Securities financing transactions gross up 2,593 1,841 2,460
Other off balance sheet items 70,909 63,394 59,498
Regulatory deductions and other adjustments (9,699) (18,124) (11,014)
Claims on central banks (81,616) (81,179) (89,299)
Exclusion of bounce back loans (1,172) (1,457) (2,422)
UK leverage exposure 654,954 649,220 607,799
UK leverage ratio (%) (1) 4.8 5.0 5.0
(1) The UK leverage exposure and Tier 1 capital are calculated in
accordance with current PRA rules. The IFRS 9 transitional capital rules in
respect of ECL ceased to apply on 1 January 2025. Excluding the IFRS 9
transitional adjustment, the UK leverage ratio as at 31 December 2024 was
5.0%.
Capital generation pre-distributions
31 December 31 December
2025 2024
£m £m
CET1 27,066 24,928
CET1 capital pre-distributions (1) 31,171 28,920
RWAs 193,288 183,221
% %
CET1 ratio - opening at 1 January 13.61 13.36
CET1 pre-distributions - closing 16.13 15.78
Capital generation pre-distributions (1) 2.52 2.43
(1) The calculation of capital generation pre-distributions uses CET1
capital pre-distributions. Distributions include ordinary dividends paid,
foreseeable ordinary dividends and share buybacks.
Risk and capital management continued
Credit risk
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.
2025 2024
Extreme Weighted Extreme Weighted
Upside Base case Downside downside average Upside Base case Downside downside average
Five-year summary % % % % % % % % % %
GDP 2.1 1.4 0.5 0.1 1.2 2.0 1.3 0.5 (0.2) 1.1
Unemployment rate 4.3 5.1 5.6 7.0 5.3 3.6 4.3 5.0 6.7 4.6
House price index 5.7 3.3 0.6 (3.8) 2.6 5.8 3.5 0.8 (4.3) 2.7
Commercial real estate price 6.1 2.2 (0.3) (5.0) 1.9 5.4 1.2 (1.0) (5.7) 1.1
Consumer price index 2.6 2.4 2.4 1.8 2.3 2.4 2.2 3.5 1.6 2.4
Bank of England base rate 4.0 3.5 2.6 1.4 3.2 4.4 4.0 3.0 1.6 3.6
Stock price index 6.2 4.8 2.8 1.1 4.3 6.3 5.0 3.4 1.1 4.5
World GDP 3.7 3.1 2.5 2.2 3.0 3.8 3.2 2.5 1.6 3.0
Probability weight 22.4 45.0 19.5 13.1 23.2 45.0 19.1 12.7
(1) The five year summary runs from 2025-29 for 31 December 2025 and
from 2024-28 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.
Risk and capital management continued
Credit risk continued
ECL post model adjustments
The table below shows ECL post model adjustments.
Retail Banking Private Banking Commercial
Mortgages Other & Wealth Management & Institutional Total
2025 £m £m £m £m £m
Deferred model calibrations - - 1 14 15
Economic uncertainty 44 42 11 149 246
Other adjustments - 19 - 16 35
Total 44 61 12 179 296
Of which:
- Stage 1 33 38 4 73 148
- Stage 2 11 20 8 106 145
- Stage 3 - 3 - - 3
2024
Deferred model calibrations - - 1 18 19
Economic uncertainty 90 22 8 179 299
Other adjustments - - - 18 18
Total 90 22 9 215 336
Of which:
- Stage 1 58 9 5 94 166
- Stage 2 26 13 4 119 162
- Stage 3 6 - - 2 8
Post model adjustments reduced since 31 December 2024, reflecting the removal
of COVID-19 post model adjustments combined with updates to parameters.
· Retail Banking - As at 31 December 2025, the post model
adjustment for economic uncertainty decreased to £86 million (2024 - £112
million). This reduction was driven by a revision to the cost of
living post model adjustment, standing at £86 million (2024 - £105
million), and was the sole remaining economic uncertainty post model
adjustment. This change was based on a review of back-testing. 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
over-indebted borrowers, poor credit card affordability status and lower
income customers in fuel poverty.
· A £19 million post model adjustment was recognised as a
judgemental measure while additional loss data is accumulated on the recently
migrated Sainsbury's Bank lending portfolio.
· Commercial & Institutional - As at 31 December 2025, the post
model adjustment for economic uncertainty decreased to £149 million (2024 -
£179 million). The reduction was driven by the retirement of COVID-19 post
model adjustments which were associated with government scheme lending (2024 -
£29 million). The continued economic uncertainty post model adjustments
reflected downgrades to risk profile that were applied to the sectors that
were considered most at risk from the current economic and geopolitical
headwinds.
· The remaining £30 million (2024 - £36 million) of post model
adjustments were for deferred model calibrations relating to refinance risk
and to mitigate the effect of operational timing delays in the identification
and flagging of a significant increase in credit risk.
Risk and capital management continued
Credit risk - Banking activities
Segment analysis - portfolio summary
The table below shows gross loans and ECL, by segment and stage, within the
scope of the IFRS 9 ECL framework.
Of which:
Personal Non-personal
Private Private Private
Banking Central Banking Central Banking Central
Retail & Wealth Commercial items Retail & Wealth Commercial items & Wealth Commercial items
Banking Management & Institutional & other Total Banking Management & Institutional & other Management & Institutional & other
2025 £m £m £m £m £m £m £m £m £m £m £m £m
Loans - amortised cost and FVOCI (1,2)
Stage 1 196,325 17,552 138,769 34,005 386,651 196,325 14,140 2,355 84 3,412 136,414 33,921
Stage 2 19,113 1,115 18,289 65 38,582 19,113 337 32 18 778 18,257 47
Stage 3 2,231 348 2,102 2 4,683 2,231 260 44 2 88 2,058 -
Of which: individual - 276 1,180 - 1,456 - 188 5 - 88 1,175 -
Of which: collective 2,231 72 922 2 3,227 2,231 72 39 2 - 883 -
Total 217,669 19,015 159,160 34,072 429,916 217,669 14,737 2,431 104 4,278 156,729 33,968
ECL provisions (3)
Stage 1 335 13 256 10 614 335 3 1 3 10 255 7
Stage 2 424 13 357 2 796 424 1 - 1 12 357 1
Stage 3 1,075 50 1,048 2 2,175 1,075 24 11 2 26 1,037 -
Of which: individual - 50 548 - 598 - 24 5 - 26 543 -
Of which: collective 1,075 - 500 2 1,577 1,075 - 6 2 - 494 -
Total 1,834 76 1,661 14 3,585 1,834 28 12 6 48 1,649 8
ECL provisions coverage (4)
Stage 1 (%) 0.17 0.07 0.18 0.03 0.16 0.17 0.02 0.04 3.57 0.29 0.19 0.02
Stage 2 (%) 2.22 1.17 1.95 3.08 2.06 2.22 0.30 - 5.56 1.54 1.96 2.13
Stage 3 (%) 48.18 14.37 49.86 100.00 46.44 48.18 9.23 25.00 100.00 29.55 50.39 -
Total 0.84 0.40 1.04 0.04 0.83 0.84 0.19 0.49 5.77 1.12 1.05 0.02
Impairment releases/losses
ECL (release)/charge (5) 437 10 225 (1) 671 437 5 1 7 5 224 (8)
Stage 1 (67) (9) (124) (4) (204) (67) (1) (1) 4 (8) (123) (8)
Stage 2 295 9 116 1 421 295 2 1 1 7 115 -
Stage 3 209 10 233 2 454 209 4 1 2 6 232 -
Of which: individual - 10 178 - 188 - 4 - - 6 178 -
Of which: collective 209 - 55 2 266 209 - 1 2 - 54 -
Total 437 10 225 (1) 671 437 5 1 7 5 224 (8)
Amounts written-off 373 1 205 - 579 373 1 6 - - 199 -
Of which: individual - 1 136 - 137 - 1 - - - 136 -
Of which: collective 373 - 69 - 442 373 - 6 - - 63 -
For the notes to this table refer to the following page.
Risk and capital management continued
Credit risk - Banking activities continued
Segment analysis - portfolio summary continued
Of which:
Personal Non-Personal
Private Private Private
Banking Central Banking Central Banking Central
Retail & Wealth Commercial items Retail & Wealth Commercial items & Wealth Commercial items
Banking Management & Institutional & other Total Banking Management & Institutional & other Management & Institutional & other
2024 £m £m £m £m £m £m £m £m £m £m £m £m
Loans - amortised cost and FVOCI (1,2)
Stage 1 182,366 17,155 128,988 35,312 363,821 182,366 13,726 2,226 - 3,429 126,762 35,312
Stage 2 24,242 844 15,339 49 40,474 24,242 352 42 - 492 15,297 49
Stage 3 3,268 322 2,340 - 5,930 3,268 251 52 - 71 2,288 -
Of which: individual - 233 1,052 - 1,285 - 162 5 - 71 1,047 -
Of which: collective 3,268 89 1,288 - 4,645 3,268 89 47 - - 1,241 -
Total 209,876 18,321 146,667 35,361 410,225 209,876 14,329 2,320 - 3,992 144,347 35,361
ECL provisions (3)
Stage 1 279 16 289 14 598 279 2 3 - 14 286 14
Stage 2 428 12 346 1 787 428 1 - - 11 346 1
Stage 3 1,063 36 941 - 2,040 1,063 21 15 - 15 926 -
Of which: individual - 36 415 - 451 - 21 7 - 15 408 -
Of which: collective 1,063 - 526 - 1,589 1,063 - 8 - - 518 -
Total 1,770 64 1,576 15 3,425 1,770 24 18 - 40 1,558 15
ECL provisions coverage (4)
Stage 1 (%) 0.15 0.09 0.22 0.04 0.16 0.15 0.01 0.13 - 0.41 0.23 0.04
Stage 2 (%) 1.77 1.42 2.26 2.04 1.94 1.77 0.28 - - 2.24 2.26 2.04
Stage 3 (%) 32.53 11.18 40.21 - 34.40 32.53 8.37 28.85 - 21.13 40.47 -
Total 0.84 0.35 1.07 0.04 0.83 0.84 0.17 0.78 - 1.00 1.08 0.04
Impairment releases/losses
ECL (release)/charge (5) 282 (11) 98 (10) 359 282 1 1 - (12) 97 (10)
Stage 1 (208) (11) (205) (14) (438) (208) (2) (1) - (9) (204) (14)
Stage 2 278 (1) 79 4 360 278 2 1 - (3) 78 4
Stage 3 212 1 224 - 437 212 1 1 - - 223 -
Of which: individual - 1 191 - 192 - 1 (1) - - 192 -
Of which: collective 212 - 33 - 245 212 - 2 - - 31 -
Total 282 (11) 98 (10) 359 282 1 1 - (12) 97 (10)
Amounts written-off 430 1 223 - 654 430 1 2 - - 221 -
Of which: individual - 1 143 - 144 - 1 - - - 143 -
Of which: collective 430 - 80 - 510 430 - 2 - - 78 -
nm = not meaningful
(1) The table shows gross loans only and excludes amounts that were
outside the scope of the ECL framework. Other financial assets within the
scope of the IFRS 9 ECL framework were cash and balances at central banks
totalling £84.1 billion (2024 - £91.8 billion) and debt securities of £78.4
billion (2024 - £62.4 billion).
(2) Fair value through other comprehensive income (FVOCI). Includes
loans to customers and banks.
(3) Includes £6 million (2024 - £4 million) related to assets
classified as FVOCI and £0.1 billion (2024 - £0.1 billion) related to
off-balance sheet exposures.
(4) 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.
(5) Includes a £6 million release (2024 - £12 million release)
related to other financial assets, of which £1 million charge (2024 - £4
million release) related to assets classified as FVOCI and includes a £3
million charge (2024 - £5 million release) related to contingent liabilities.
Risk and capital management continued
Credit risk - Banking activities continued
Analysis of ECL provisions
The table below shows gross loans and ECL provision analysis.
31 December 30 September 30 June 31 December
2025 2025 2025 2024
£m £m £m £m
Total loans 429,916 427,310 417,891 410,225
Personal 234,941 234,862 232,912 226,525
Non-personal 194,975 192,448 184,979 183,700
Value of loans in Stage 2 38,582 40,986 40,193 40,474
Personal 19,500 25,890 24,849 24,636
Non-personal 19,082 15,096 15,344 15,838
ECL provisions in Stage 2 796 755 741 787
Personal 426 415 426 429
Non-personal 370 340 315 358
ECL provision coverage in Stage 2 2.06% 1.84% 1.84% 1.94%
Personal 2.18% 1.60% 1.71% 1.74%
Non-personal 1.94% 2.25% 2.05% 2.26%
Condensed consolidated income statement
for the period ended 31 December 2025
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Interest receivable 25,698 25,187 6,543 6,482 6,453
Interest payable (12,869) (13,912) (3,102) (3,214) (3,485)
Net interest income 12,829 11,275 3,441 3,268 2,968
Fees and commissions receivable 3,247 3,175 835 804 797
Fees and commissions payable (733) (708) (181) (184) (179)
Trading income 1,112 825 138 399 218
Other operating income 186 136 91 45 21
Non-interest income 3,812 3,428 883 1,064 857
Total income 16,641 14,703 4,324 4,332 3,825
Staff costs (4,174) (4,061) (981) (1,064) (949)
Premises and equipment (1,291) (1,211) (385) (319) (348)
Other administrative expenses (1,643) (1,819) (583) (315) (666)
Depreciation and amortisation (1,154) (1,058) (299) (298) (304)
Operating expenses (8,262) (8,149) (2,248) (1,996) (2,267)
Profit before impairment losses 8,379 6,554 2,076 2,336 1,558
Impairment losses (671) (359) (136) (153) (66)
Operating profit before tax 7,708 6,195 1,940 2,183 1,492
Tax charge (1,874) (1,465) (462) (502) (233)
Profit from continuing operations 5,834 4,730 1,478 1,681 1,259
Profit from discontinued operations, net of tax - 81 - - 69
Profit for the period 5,834 4,811 1,478 1,681 1,328
Attributable to:
Ordinary shareholders 5,479 4,519 1,393 1,598 1,248
Paid-in equity holders 352 283 84 82 81
Non-controlling interests 3 9 1 1 (1)
5,834 4,811 1,478 1,681 1,328
Earnings per ordinary share - continuing operations 68.0p 52.5p 17.4p 19.8p 14.5p
Earnings per ordinary share - discontinued operations - 1.0p - - 0.8p
Total earnings per share attributable to ordinary shareholders - basic 68.0p 53.5p 17.4p 19.8p 15.3p
Earnings per ordinary share - diluted continuing operations 67.4p 52.1p 17.2p 19.6p 14.4p
Earnings per ordinary share - diluted discontinued operations - 1.0p - - 0.8p
Total earnings per share attributable to ordinary shareholders - diluted 67.4p 53.1p 17.2p 19.6p 15.2p
Condensed consolidated statement of comprehensive income
for the period ended 31 December 2025
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Profit for the period 5,834 4,811 1,478 1,681 1,328
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of retirement benefit schemes 31 (166) 11 11 (74)
Changes in fair value of financial liabilities designated at fair value
through profit or loss (FVTPL) due to changes
in credit risk (17) (33) (6) (10) (8)
FVOCI financial assets 40 6 (14) 5 (10)
Tax (16) 59 (6) (8) 20
38 (134) (15) (2) (72)
Items that will be reclassified subsequently to profit or loss when specific
conditions are met:
FVOCI financial assets 142 (25) 66 13 (46)
Cash flow hedges (1) 968 622 190 120 (110)
Currency translation (13) 5 5 77 124
Tax (297) (178) (73) (32) 43
800 424 188 178 11
Other comprehensive income/(losses) after tax 838 290 173 176 (61)
Total comprehensive income for the period 6,672 5,101 1,651 1,857 1,267
Attributable to:
Ordinary shareholders 6,317 4,809 1,566 1,774 1,187
Paid-in equity holders 352 283 84 82 81
Non-controlling interests 3 9 1 1 (1)
6,672 5,101 1,651 1,857 1,267
(1) Refer to footnote 4 and 5 of the consolidated statement of changes in equity.
Condensed consolidated balance sheet
as at 31 December 2025
31 December 30 September 31 December
2025 2025 2024
£m £m £m
Assets
Cash and balances at central banks 85,182 84,686 92,994
Trading assets 46,537 56,856 48,917
Derivatives 60,789 61,119 78,406
Settlement balances 645 12,331 2,085
Loans to banks - amortised cost 6,958 8,005 6,030
Loans to customers - amortised cost 418,881 415,274 400,326
Other financial assets 79,770 71,595 63,243
Intangible assets 7,292 7,477 7,588
Other assets 8,499 8,292 8,396
Total assets 714,553 725,635 707,985
Liabilities
Bank deposits 44,092 44,962 31,452
Customer deposits 442,998 435,490 433,490
Settlement balances 942 9,271 1,729
Trading liabilities 49,022 58,402 54,714
Derivatives 53,974 54,114 72,082
Other financial liabilities 67,599 67,634 61,087
Subordinated liabilities 6,123 6,136 6,136
Notes in circulation 3,164 3,340 3,316
Other liabilities 4,026 3,905 4,601
Total liabilities 671,940 683,254 668,607
Equity
Ordinary shareholders' interests 38,028 36,570 34,070
Other owners' interests 4,571 5,792 5,280
Owners' equity 42,599 42,362 39,350
Non-controlling interests 14 19 28
Total equity 42,613 42,381 39,378
Total liabilities and equity 714,553 725,635 707,985
Condensed consolidated statement of changes in equity
for the period ended 31 December 2025
Share Other Other reserves Total Non
capital and Paid-in statutory Retained Cash flow Foreign owners' controlling Total
share premium equity reserves (3) earnings Fair value hedging (4,5) exchange Merger equity interests equity
£m £m £m £m £m £m £m £m £m £m £m
At 1 January 2025 10,133 5,280 2,350 11,426 (103) (1,443) 826 10,881 39,350 28 39,378
Profit attributable to ordinary shareholders
and other equity owners 5,831 5,831 3 5,834
Other comprehensive income
Realised gains in period on FVOCI equity shares 25 (25) - -
Remeasurement of retirement benefit schemes 31 31 31
Changes in fair value of credit in financial liabilities
designated at FVTPL due to own credit risk (17) (17) (17)
Unrealised gains 174 174 174
Amounts recognised in equity 69 69 69
Retranslation of net assets 51 51 51
Gains on hedges of net assets (92) (92) (92)
Reclassification of OCI to P&L 8 899 28 935 935
Tax (15) (41) (277) 20 (313) (313)
Total comprehensive income/(loss) 5,855 116 691 7 - 6,669 3 6,672
Transactions with owners
Ordinary share dividends paid (2,018) (2,018) (6) (2,024)
Redemption of paid-in equity (1,957) (22) (1,979) - (1,979)
Paid-in equity dividends paid (352) (352) (352)
Shares repurchased during the period (1,6) (112) 112 (579) (579) (579)
Securities issued in the year (2) - 1,248 - 1,248 1,248
Purchase of non-controlling interest (10) (10) (11) (21)
Employee share schemes 88 88 88
Shares vested under employee share schemes 151 151 151
Share-based payments 31 31 31
Own shares acquired - - -
At 31 December 2025 10,021 4,571 2,613 14,419 13 (752) 833 10,881 42,599 14 42,613
For the notes to this table refer to the following page.
Condensed consolidated statement of changes in equity for the period ended 31
December 2025 continued
Share Other Other reserves Total Non
capital and Paid-in statutory Retained Cash flow Foreign owners' controlling Total
share premium equity reserves (3) earnings Fair value hedging (4,5) exchange Merger equity interests equity
£m £m £m £m £m £m £m £m £m £m £m
At 1 January 2024 10,844 3,890 2,004 10,645 (49) (1,899) 841 10,881 37,157 31 37,188
Profit/(loss) attributable to ordinary shareholders
and other equity owners
- continuing operations 4,721 4,721 9 4,730
- discontinued operations 81 81 81
Other comprehensive income
Realised gains in period on FVOCI equity shares 54 (54) - -
Remeasurement of retirement benefit schemes (166) (166) (166)
Changes in fair value of credit in financial liabilities
designated at FVTPL due to own credit risk (33) (33) (33)
Unrealised gains (40) (40) (40)
Amounts recognised in equity (872) (872) (872)
Retranslation of net assets (194) (194) (194)
Gains on hedges of net assets 122 122 122
Amount transferred from equity to earnings 21 1,494 77 1,592 1,592
Tax 48 19 (166) (20) (119) (119)
Total comprehensive income/(loss) 4,705 (54) 456 (15) - 5,092 9 5,101
Transactions with owners
Ordinary share dividends paid (1,505) (1,505) (12) (1,517)
Paid-in equity dividends (283) (283) (283)
Shares repurchased during the period (1,6) (711) 711 (2,176) (2,176) (2,176)
Securities issued in the year (2) 1,390 1,390 1,390
Employee share schemes 17 17 17
Shares vested under employees share schemes 175 175 175
Share-based payments 23 23 23
Own shares acquired (540) (540) (540)
At 31 December 2024 10,133 5,280 2,350 11,426 (103) (1,443) 826 10,881 39,350 28 39,378
(1) As part of the On Market Share Buyback Programmes NatWest Group
plc repurchased and cancelled 105.5 million shares (2024 - 173.3 million, 2023
- 460.3 million, of which 2.3 million were settled in January 2024) of which
1.4 million shares were settled in January 2026. The total consideration for
these shares excluding fees was £586.3 million (2024 - £450.9 million, 2023
- £1,151.7 million of which 4.9 million shares were settled in January 2024)
of which 9 million was settled in January 2026. The nominal value of the share
cancellations was transferred to the capital redemption reserve.
(2) The issuance above is after netting of issuance fees of £2.8
million (2024 - £2.4 million), and the associated tax credit of £0.7 million
(2024 - £0.7 million).
(3) Other statutory reserves consist of Capital redemption reserves of
£3,330 million (2024 - £3,218 million, 2023 - £2,507 million) and Own
shares held reserves of £717 million (2024 - £868 million, 2023 - £503
million).
(4) The change in the cash flow hedging reserve is driven by realised
accrued interest transferred into the income statement and a decrease in swap
rates in the year, where the portfolio of swaps are net receive fixed from an
interest rate risk perspective.
(5) As referred in Note 13, 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.
(6) In June 2024, there was an agreement to buy 392.4 million ordinary
shares of the Company from His Majesty's Treasury (HM Treasury) at 316.2 pence
per share for total consideration of £1.2 billion. NatWest Group cancelled
222.4 million of the purchased ordinary shares, amounting to £706.9 million
excluding fees and held the remaining 170.0 million shares as Own Shares Held,
amounting to £540.2 million excluding fees. The nominal value of the share
cancellation was transferred to the capital redemption reserve. There were no
repurchases in 2025.
Condensed consolidated cash flow statement
for the period ended 31 December 2025
Year ended
31 December 31 December
2025 2024
£m £m
Cash flows from operating activities
Operating profit before tax from continuing operations 7,708 6,195
Operating profit before tax from discontinued operations - 81
Adjustments for non-cash and other items 184 4,365
Net cash flows from trading activities 7,892 10,641
Changes in operating assets and liabilities 972 (7,267)
Net cash flows from operating activities before tax 8,864 3,374
Income taxes paid (1,792) (1,602)
Net cash flows from operating activities 7,072 1,772
Net cash flows from investing activities (13,765) (12,699)
Net cash flows from financing activities (3,494) (1,886)
Effects of exchange rate changes on cash and cash equivalents 775 (1,166)
Net decrease in cash and cash equivalents (9,412) (13,979)
Cash and cash equivalents at beginning of period 104,845 118,824
Cash and cash equivalents at end of period 95,433 104,845
Notes
1. Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction
with NatWest Group plc 2025 Annual Report and Accounts. The critical and
material 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.
2. Tax
Analysis of the tax charge for the year
The tax charge comprises current and deferred tax in respect of profits and
losses recognised or originating in the income statement. Tax on items
originating outside the income statement is charged to other comprehensive
income or direct to equity (as appropriate) and is therefore not reflected in
the table below. Current tax is tax payable or recoverable in respect of the
taxable profit or loss for the year and any adjustments to tax payable in
prior years.
2025 2024 2023
Continuing operations £m £m £m
Current tax
Charge for the year (1,511) (1,415) (1,373)
Over/(under) provision in respect of prior years 110 (145) (123)
(1,401) (1,560) (1,496)
Deferred tax
Charge for the year (548) (343) (281)
Net increase in the carrying value of deferred tax assets in respect of losses 119 428 385
(Under)/over provision in respect of prior years (44) 10 (42)
Tax charge for the year (1,874) (1,465) (1,434)
Judgement: tax contingencies
NatWest Group's corporate income tax charge and its provisions for corporate
income taxes necessarily involve a degree of estimation and judgement. The tax
treatment of some transactions is uncertain and tax computations are yet to be
agreed with the relevant tax authorities. Any difference between the final
outcome and the amounts provided will affect current and deferred income tax
charges in the period when the matter is resolved. NatWest Group recognises
anticipated tax liabilities based on all available evidence and, where
appropriate, in the light of external advice.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable in respect of
temporary differences where the carrying amount of an asset or liability
differs for accounting and tax purposes. Deferred tax liabilities reflect the
expected amount of tax payable in the future on these temporary differences.
Deferred tax assets reflect the expected amount of tax recoverable in the
future on these differences. The net deferred tax asset recognised by the
NatWest Group is shown below. The reduction of deferred tax asset is primarily
attributable to reduced cash flow hedge liabilities, and is taken in other
comprehensive income as part of the movements in cash flow reserves.
Analysis of deferred tax
2025 2024
£m £m
Deferred tax asset 1,252 1,876
Deferred tax liability (104) (99)
Net deferred tax asset 1,148 1,777
Notes continued
3. Litigation and regulatory matters
NatWest Group plc and certain members of NatWest 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. Note 25 in the NatWest
Group plc 2025 Annual Report and Accounts, issued on 13 February 2026 and
available at natwestgroup.com (Note 25) discusses the Matters in which NatWest
Group is currently involved and material developments. Other than the Matters
discussed in Note 25, no member of NatWest Group is or has been involved in
governmental, legal, or regulatory proceedings (including those which are
pending or threatened) that are expected to be material, individually or in
aggregate. Recent developments in the Matters identified in Note 25 that have
occurred since the Q3 2025 Interim Management Statement was issued on 24
October 2025 include, but are not limited to, those set out below.
Litigation
London Interbank Offered Rate (LIBOR) and other rates litigation
NatWest Group plc and certain other members of NatWest Group, including NWM
Plc, are defendants in a number of claims pending in the United States
District Court for the Southern District of New York (SDNY) with respect to
the setting of USD LIBOR. The complainants allege that certain members of
NatWest Group and other panel banks violated various federal laws, including
the US commodities and antitrust laws, and state statutory and common law, as
well as contracts, by manipulating LIBOR and prices of LIBOR-based derivatives
in various markets through various means.
The co-ordinated proceeding in the SDNY relating to USD LIBOR now includes one
remaining class action, which is on behalf of persons who purchased
LIBOR-linked instruments from defendants and bonds issued by defendants, as
well as two non-class actions.
On 25 September 2025, the SDNY granted summary judgment to the defendants on
the issue of liability and dismissed all claims in both the class action and
the non-class actions. The decision is being appealed in the United States
Court of Appeals for the Second Circuit (US Court of Appeals).
Two other IBOR-related class actions involving NWM Plc, concerning alleged
manipulation of Euribor and Pound Sterling LIBOR, were previously dismissed by
the SDNY for various reasons.
On 22 August 2025, the US Court of Appeal reversed the SDNY's decision in the
Euribor case, reinstating claims against NWM Plc. That case has therefore
returned to the SDNY for further proceedings.
On 15 September 2025, the US Court of Appeals affirmed the SDNY's dismissal of
the Pound Sterling LIBOR case.
Foreign exchange litigation
NatWest Group plc, NWM Plc and/or NWMSI are defendants in several cases
relating to NWM Plc's foreign exchange (FX) business.
In July and December 2019, two separate applications seeking opt-out
collective proceedings orders were filed in the UK Competition Appeal Tribunal
(CAT) against NatWest Group plc, NWM Plc and other banks.
Both applications were brought on behalf of persons who, between 18 December
2007 and 31 January 2013, entered into a relevant FX spot or outright forward
transaction in the European Economic Area with a relevant financial
institution or on an electronic communications network.
In March 2022, the CAT declined to certify either application as collective
proceedings on an opt-out basis. This decision was appealed by the
applicants and was the subject of an application for judicial review. The CAT,
in its judgment, allowed the applicants three months in which to reformulate
their claims as opt-in claims.
In its amended judgment in November 2023, the Court of Appeal allowed the
appeal and decided that the claims should proceed on an opt-out basis.
Separately, the court determined which of the two competing applicants can
proceed as class representative and dismissed the application for judicial
review of the CAT's decision. The other applicant has discontinued its claim
and withdrawn from the proceedings. The banks sought permission to appeal the
Court of Appeal decision directly to the UK Supreme Court, which was granted
in April 2024. The appeal was heard in April 2025.
In December 2025, the UK Supreme Court reinstated the CAT's decision to refuse
the application for a collective proceedings order on an opt-out basis.
Swaps antitrust litigation
NWM Plc and other members of NatWest Group, including NatWest Group plc, as
well as a number of other interest rate swap dealers, are defendants in
several cases pending in the SDNY alleging violations of the US antitrust laws
in the market for interest rate swaps. Three swap execution facilities
(TeraExchange, Javelin, and trueEx) allege that they would have successfully
established exchange-like trading of interest rate swaps if the defendants had
not unlawfully conspired to prevent that from happening through boycotts and
other means. Discovery is complete though expert discovery is ongoing.
In June 2021, a class action antitrust complaint was filed against a number of
credit default swap dealers in New Mexico federal court on behalf of persons
who, from 2005 onwards, settled credit default swaps in the United States by
reference to the ISDA credit default swap auction protocol.
Notes continued
3. Litigation and regulatory matters continued
The complaint alleges that the defendants conspired to manipulate that
benchmark through various means in violation of the antitrust laws and the
Commodity Exchange Act.
In May 2025, the US Court of Appeals affirmed a January 2024 decision by the
SDNY which barred the plaintiffs in the New Mexico case from pursuing claims
based on conduct occurring before 30 June 2014 on the ground that such claims
were extinguished by a 2015 settlement agreement that resolved a prior class
action relating to credit default swaps.
The case in New Mexico (which had been stayed pending the appeal of the SDNY's
decision) has now resumed. The defendants have filed a motion to dismiss,
which is pending.
Odd lot corporate bond trading antitrust litigation
On 2 September 2025, the SDNY dismissed the class action antitrust complaint
alleging that, from August 2006 onwards, various securities dealers, including
NWMSI, conspired artificially to widen spreads for odd lots of corporate bonds
bought or sold in the United States secondary market and to boycott electronic
trading platforms that would have allegedly promoted pricing competition in
the market for such bonds. The plaintiffs did not appeal the SDNY's decision
and the case is now closed.
1MDB litigation
A Malaysian court claim was served in Switzerland in November 2022 by 1MDB, a
sovereign wealth fund, in which Coutts & Co Ltd was named, along with six
others, as a defendant in respect of losses allegedly incurred by 1MDB. It is
claimed that Coutts & Co Ltd is liable as a constructive trustee for
having dishonestly assisted the directors of 1MDB in the breach of their
fiduciary duties by failing (amongst other alleged claims) to undertake due
diligence in relation to a customer of Coutts & Co Ltd, through which
funds totalling c.US$1 billion were received and paid out between 2009 and
2011. 1MDB sought the return of that amount plus interest. Coutts & Co Ltd
filed an application in January 2023 challenging the validity of service and
the Malaysian court's jurisdiction to hear the claim, and a hearing took place
in February 2024.
In March 2024, the court granted that application. 1MDB appealed that decision
and a prior decision by the court not to allow them to discontinue their
claim. Both appeals were scheduled to be heard in November 2025 but did not
progress as 1MDB withdrew their appeal and discontinued the claim.
Coutts & Co Ltd (a subsidiary of RBS Netherlands Holdings B.V., which in
turn is a subsidiary of NWM Plc) is a company registered in Switzerland and is
in wind-down following the announced sale of its business assets in 2015.
Oracle Securities Litigation
On 14 January 2026, a class action complaint was filed in New York state court
against Oracle Corporation and the underwriters of a September 2025 bond
offering by Oracle, including NWMSI. The complaint alleges that the offering
documents for the bonds were materially misleading because they failed to
disclose that, at the time of the bond offering, Oracle was already planning
to further increase its debt to fund its Artificial Intelligence
infrastructure expansion.
The complaint seeks damages under the U.S. Securities Act of 1933 (the
'Securities Act'), as amended, on behalf of those who purchased Oracle's
bonds. In connection with the bond offering, Oracle agreed to indemnify the
underwriters against certain potential liabilities, including disclosure-based
liability under the Securities Act.
Tandanor Litigation in Argentina
In October 2012, a claim was filed in the District Court of Buenos Aires by
'Argentina Talleres Navales Dársena Norte Sociedad Anónima Comercial,
Industrial y Naviera' ("Tandanor") (a naval repair business) against what is
now the Representative Office of The Royal Bank of Scotland NV, Argentine
Branch (in liquidation) (the "Representative Office") and eleven private
individuals. (The Representative Office inherited the claim from Banco
Holandés Unido, Argentine Branch.) The claim, which was unquantified,
sought damages for alleged fraudulent conduct during Tandanor's privatisation,
which concluded in 1993. The Representative Office's participation in the
privatisation was 2.9%. The Argentine Ministry of Defence joined Tandanor as a
plaintiff in 2014.
The claim was dismissed on limitation grounds in 2018, and the plaintiffs were
unsuccessful in subsequent appeals. In November 2024, however, the Argentine
Supreme Court set the appealed judgments aside and, in June 2025, the
Argentine Federal Court of Appeal returned the case to the Argentine Federal
District Court for further consideration. In December 2025, the plaintiffs
filed an update quantifying damages at USD1.1bn. The Representative Office
continues to defend the claim and has requested a hearing.
Regulatory matters
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, which is
expected to conclude in H1 2026.
4. 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%.
NatWest 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
NatWest Group may participate in a number of schemes operated by the Bank of
England in the normal course of business.
In March 2024 Bank of England Levy replaced the Cash Ratio Deposit scheme.
Members of NatWest Group that are UK authorised institutions having eligible
liabilities greater than £600 million are required to pay the levy. They also
have access to Bank of England reserve accounts: sterling current accounts
that earn interest at the Bank of England Base rate.
NatWest Group provides guarantees for certain subsidiaries, liabilities to the
Bank of England.
Other related parties
(a) In their roles as providers of finance, NatWest 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, NatWest Group may seek to invest in
third parties or allow third parties to hold a minority interest in a
subsidiary of NatWest Group. We disclose as related parties for associates and
joint ventures and where equity interests are over 10%. Ongoing business
transactions with these entities are on normal commercial terms.
(c) NatWest 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 NatWest Group
entities that have been eliminated on consolidation are not reported.
Full details of NatWest Group's related party transactions for the year ended
31 December 2025 are included in NatWest Group plc 2025 Annual Report and
Accounts.
5. Dividends
The company has announced that the directors have recommended a final dividend
of £1.8 billion, or 23.0 pence per ordinary share (2024 - £1.2 billion, or
15.5 pence per ordinary share) subject to shareholder approval at the Annual
General Meeting on 28 April 2026. If approved, payment will be made on 5 May
2026 to shareholders on the register at the close of business on 20 March
2026. The ex-dividend date will be 19 March 2026.
6. Post balance sheet events
On 9 February 2026, NatWest Group plc announced that it had reached an
agreement to acquire Evelyn Partners for an enterprise value of £2.7 billion.
Evelyn Partners is a leading integrated wealth management and financial
planning firm with approximately £69 billion of assets under management and
administration. The transaction is expected to complete in the summer of 2026,
subject to regulatory approval.
As part of the ongoing on-market share buyback programme, NatWest Group plc
has repurchased and cancelled a further 23.99 million shares since December
2025 for a total consideration (excluding fees) of £156.76 million.
Other than as disclosed in this document, there have been no significant
events between 31 December 2025 and the date of approval of this announcement
which would require a change to, or additional disclosure, in the
announcement.
Statement of directors' responsibilities
The responsibility statement below has been prepared in connection with
NatWest Group's full Annual Report and Accounts for the year ended 31 December
2025.
We, the directors listed below, confirm that to the best of our knowledge:
· The financial statements, prepared in accordance with UK-adopted
International Accounting Standards and International Financial Reporting
Standards as issued by the International Accounting Standards Board, give a
true and fair view of the assets, liabilities, financial position and profit
or loss of the company and the undertakings included in the consolidation
taken as a whole; and
· The Strategic report and Directors' report (incorporating the
Business review) include a fair review of the development and performance of
the business and the position of the company and the undertakings included in
the consolidation taken as a whole, together with a description of the
principal risks and uncertainties that they face.
By order of the Board
Richard Haythornthwaite John-Paul Thwaite Katie Murray
Chair Group Chief Executive Officer Group Chief Financial Officer
12 February 2026
Board of directors
Chair Executive directors Non-executive directors
Richard Haythornthwaite John-Paul Thwaite Joshua Critchley
Katie Murray Roisin Donnelly
Patrick Flynn
Geeta Gopalan
Yasmin Jetha
Stuart Lewis
Gillian Whitehead
Lena Wilson
Presentation of information
'Parent company' refers to NatWest Group plc and 'NatWest Group', 'Group' or
'we' refers to NatWest Group plc and its subsidiaries. The term 'NWH Group'
refers to NatWest Holdings Limited (NWH) and its subsidiary and associated
undertakings. The term 'NWM Group' refers to NatWest Markets Plc (NWM Plc) and
its subsidiary and associated undertakings. The term 'NWM N.V.' refers to
NatWest Markets N.V. The term 'NWMSI' refers to NatWest Markets Securities,
Inc. The term 'RBS plc' refers to The Royal Bank of Scotland plc. The term
'NWB Plc' refers to National Westminster Bank Plc. 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
Group.
NatWest Group publishes its financial statements in pounds sterling ('£' or
'sterling'). The abbreviations '£m' and '£bn' represent millions and
thousands of millions of pounds sterling, respectively, and references to
'pence' or 'p' represent pence where the amounts are denominated in pounds
sterling ('GBP'). 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 and those for the year ended 31 December
2025 will be filed with the Registrar of Companies following the Annual
General Meeting. 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.
Contacts
Analyst enquiries: Claire Kane, Investor Relations +44 (0) 20 7672 1758
Media enquiries: NatWest Group Press Office +44 (0) 7557 316 540
Management presentation Fixed income presentation
Date: 13 February 2026 13 February 2026
Time: 9am UK time 1.30pm UK time
Zoom ID: 925 7859 6754 991 2189 5911
Available on natwestgroup.com/results (http://www.rbs.com/results)
· Announcement and slides.
· NatWest Group plc 2025 Annual Report and Accounts.
· A financial supplement containing income statement, balance sheet
and segment performance for the four quarters ended 31 December 2025.
· NatWest Group and NWH Group Pillar 3 Report.
Forward-looking statements
Cautionary statement regarding forward-looking statements
Certain sections in this document contain 'forward-looking statements' as that
term is defined in the United States Private Securities Litigation Reform Act
of 1995, such as statements with respect to NatWest 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 NatWest
Group's beliefs and expectations, are forward-looking statements. Words such
as 'expect', 'estimate', 'project', 'anticipate', 'commit', 'believe',
'should', 'intend', 'will', 'plan', 'could', 'probability', 'risk', 'target',
'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic', 'prospects'
and similar expressions or variations on these expressions are intended to
identify forward-looking statements. In particular, this document includes
forward-looking targets and guidance relating to financial performance
measures, such as income growth, operating expense, RoTE, ROE, discretionary
capital distribution targets, impairment loss rates, capital generation
pre-distributions, customer assets and liabilities growth rate, cost income
ratio, balance sheet reduction (including the reduction of RWAs), CET1 ratio
(and key drivers of the CET1 ratio including timing, impact and details),
Pillar 2 and other regulatory buffer requirements and MREL and non-financial
performance measures, such as NatWest Group's initial area of focus, climate
and sustainability-related ambitions, targets and metrics, including in
relation to financed emissions and initiatives to transition to a net zero
economy, such as our climate and transition finance activities.
Limitations inherent to forward-looking statements
These statements are based on current plans, expectations, estimates, targets
and projections, and are subject to significant inherent risks, uncertainties
and other factors, both external and relating to NatWest Group's strategy or
operations, which may result in NatWest Group being unable to achieve the
current plans, expectations, estimates, targets, projections and other
anticipated outcomes expressed or implied by such forward-looking statements.
In addition, certain of these disclosures are dependent on choices relying on
key model characteristics and assumptions and are subject to various
limitations, including assumptions and estimates made by management. By their
nature, certain of these disclosures are only estimates and, as a result,
actual future results, gains or losses could differ materially from those that
have been estimated. Accordingly, undue reliance should not be placed on these
statements. The forward-looking statements contained in this document speak
only as of the date we make them and we expressly disclaim any obligation or
undertaking to update or revise any forward-looking statements contained
herein, whether to reflect any change in our expectations with regard thereto,
any change in events, conditions or circumstances on which any such statement
is based, or otherwise, except to the extent legally required.
Forward-looking statements continued
Important factors that could affect the actual outcome of the forward-looking
statements
We caution you that a large number of important factors could adversely affect
our results or our ability to implement our strategy, cause us to fail to meet
our targets, predictions, expectations and other anticipated outcomes or
affect the accuracy of forward-looking statements described in this document.
These factors include, but are not limited to, those set forth in the risk
factors and the other uncertainties described in NatWest Group plc's 2025
Annual Report and Accounts on Form 20-F, and its other filings with the US
Securities and Exchange Commission. The principal risks and uncertainties that
could adversely affect NatWest Group's future results, its financial condition
and/or prospects and cause them to be materially different from what is
forecast or expected, include, but are not limited to: economic and political
risk (including in respect of: political and economic risks and uncertainty in
the UK and global markets, including as a result of inflation and interest
rates, supply chain disruption, protectionist policies, and geopolitical
developments); and changes in interest rates and foreign currency exchange
rates; business change and execution risk (including in respect of the
implementation of NatWest Group's strategy; future acquisitions and
divestments, the competitive environment; and the transfer of its EU corporate
portfolio); financial resilience risk (including in respect of: NatWest
Group's ability to meet targets and to make discretionary capital
distributions; counterparty and borrower risk; liquidity and funding risks;
prudential regulatory requirements for capital; reductions in the credit
ratings; model risk; sensitivity to accounting policies, judgments, estimates
and assumptions (and the economic, climate, competitive and other
forward-looking information affecting those judgments, estimates and
assumptions); changes in applicable accounting standards; the value or
effectiveness of credit protection; the requirements of regulatory stress
tests and the adequacy of NatWest Group's future assessments by the Prudential
Regulation Authority and the Bank of England; and the application of UK
statutory stabilisation or resolution powers); operational and IT resilience
risk (including in respect of: operational risks (including reliance on third
party suppliers); cyberattacks; the accuracy and effective use of data;
artificial intelligence; complex IT systems; attracting, retaining and
developing diverse senior management and skilled personnel; NatWest Group's
risk management framework; and reputational risk); legal, regulatory and
conduct risk (including in respect of: the impact of substantial regulation
and oversight; the outcome of legal, regulatory and governmental actions,
investigations and remedial undertakings; and changes in tax legislation or
failure to generate future taxable profits); and climate and
sustainability-related risks (including in respect of: risks relating to
climate change and sustainability-related risks; both the execution and
reputational risk relating to NatWest Group's climate change-related strategy,
ambitions, targets and transition plan; climate and sustainability-related
data and model risk; increasing levels of climate, environmental, human rights
and sustainability-related regulation and oversight; and increasing; climate,
environmental and sustainability-related litigation, enforcement proceedings
investigations and conduct risk).
Cautionary statement regarding alternative performance measures
NatWest Group prepares its financial statements in accordance with UK-adopted
International Accounting Standards (IAS) and IFRS. This document may contain a
number of non-IFRS measures, or alternative performance measures, defined
under the European Securities and Markets Authority (ESMA) guidance, or
non-Generally Accepted Accounting Principles (GAAP) financial measures in
accordance with the SEC regulations (together, APM). APMs are adjusted for
notable and other defined items which management believes are not
representative of the underlying performance of the business and which distort
period-on-period comparison. APMs provide users of the financial statements
with a consistent basis for comparing business performance between financial
periods and information on elements of performance that are one-off in nature.
Any APMs included in this document, are not measures within the scope of IFRS
or GAAP, are based on a number of assumptions that are subject to
uncertainties and change and are not a substitute for IFRS or GAAP measures
and a reconciliation to the closest IFRS or GAAP measure is presented where
appropriate.
The information, statements and opinions contained in this document do not
constitute a public offer under any applicable legislation or an offer to sell
or a solicitation of an offer to buy any securities or financial instruments
or any advice or recommendation with respect to such securities or other
financial instruments.
Caution on climate and sustainability-related metrics
The processes we have adopted to define, collect and report data on our
climate and sustainability related performance, as well as the associated
metrics and disclosures in this document, are not subject to the same formal
processes adopted for financial reporting in accordance with established
reporting standards. They involve a higher degree of judgement, assumptions
and estimates, including in relation to the classification of climate and
sustainability related (including social, sustainability, sustainability
linked, green, climate and transition) funding, financing and facilitation
activities, than is required for our reporting of historical financial
information prepared in accordance with established reporting standards. As a
result, climate and sustainability-related disclosures may be amended, updated
or restated over time. However, NatWest Group does not undertake to restate
prior disclosures except where required by applicable law or regulation, even
if subsequently available data or methodologies differ from those used at the
time of the original disclosure.
For completeness in relation to uncertainties and limitations, refer to the
section on 'Financed Emissions data limitations' on page 42 of NatWest Group
plc 2025 Climate Transition Plan Report ('CTPR') and the section on 'Caution
about climate metrics and data required for climate reporting' on page 70 - 72
of the CTPR. Also refer to the 'Climate and sustainability-related risk
factors' on pages 420-422 and the 'Additional cautionary statement regarding
climate and sustainability-related data, metrics and forward-looking
statements' on pages 429-431 of the NatWest Group plc 2025 Annual Report and
Accounts.
Caution about sustainability-related funding, financing and facilitation
Sustainability‑related (including social, sustainability,
sustainability-linked, green, climate, transition) funding, financing and
facilitation currently represents only a relatively small proportion of
NatWest Group's overall funding, financing and facilitation activities.
Accordingly, disclosures relating to sustainability-related funding, financing
and facilitation should be read in the context of NatWest Group's broader
balance sheet, risk profile and funding, financing and facilitation
activities, and should not be interpreted as indicative of NatWest Group's
overall funding, financing or facilitation strategy.
Non-IFRS financial measures
NatWest Group prepares its financial statements in accordance with UK-adopted
International Accounting Standards (IAS), and International Financial
Reporting Standards (IFRS), as issued by the International Accounting
Standards Board (IASB). This document contains a number of non-IFRS measures,
also known as alternative performance measures, defined under the European
Securities and Markets Authority (ESMA) guidance or non-GAAP financial
measures in accordance with the Securities and Exchange Commission (SEC)
regulations. These measures are adjusted for notable and other defined items
which management believes are not representative of the underlying performance
of the business and which distort period-on-period comparison.
The non-IFRS measures provide users of the financial statements with a
consistent basis for comparing business performance between financial periods
and information on elements of performance that are one-off in nature. The
non-IFRS measures also include the basis of calculation for metrics that are
used throughout the banking industry.
These non-IFRS measures are not a substitute for IFRS measures and a
reconciliation to the closest IFRS measure is presented where appropriate.
Measure Description
Cost:income ratio (excl. litigation and conduct) The cost:income ratio (excl. litigation and conduct) is calculated as other
operating expenses (operating expenses less litigation and conduct costs)
Refer to table 2. Cost:income ratio (excl. litigation and conduct) on page 42. divided by total income. Litigation and conduct costs are excluded as they are
one-off in nature, difficult to forecast for Outlook purposes and distort
period-on-period comparisons.
Customer deposits excluding central items Customer deposits excluding central items is calculated as total NatWest Group
customer deposits excluding Central items & other customer deposits.
Refer to Segment performance on pages 15-19 for components of calculation. Central items & other includes Treasury repo activity. The exclusion of
Central items & other removes the volatility relating to Treasury repo
activity and the reduction of deposits as part of our withdrawal from the
Republic of Ireland.
These items may distort period-on-period comparisons and their removal gives
the user of the financial statements a better understanding of the movements
in customer deposits.
Funded assets Funded assets is calculated as total assets less derivative assets. This
measure allows review of balance sheet trends excluding the volatility
Refer to Condensed consolidated balance sheet on page 29 for components of associated with derivative fair values.
calculation.
Loan:deposit ratio (excl. repos and reverse repos) Loan:deposit ratio (excl. repos and reverse repos) is calculated as net loans
to customers - amortised cost excluding reverse repos divided by total
Refer to table 5. Loan:deposit ratio (excl. repos and reverse repos) on page customer deposits excluding repos. This metric is used to assess liquidity.
44.
The removal of repos and reverse repos reduces volatility and presents the
ratio on a basis that is comparable to UK peers. The nearest ratio using IFRS
measures is loan:deposit ratio, calculated as net loans to customers -
amortised cost divided by customer deposits.
NatWest Group Return on Tangible Equity NatWest Group Return on Tangible Equity comprises annualised profit or loss
for the period attributable to ordinary shareholders divided by average
Refer to table 7. NatWest Group Return on Tangible Equity on page 44. tangible equity. Average tangible equity is average total equity excluding
average non-controlling interests, average other owners' equity and average
intangible assets. This measure shows the return NatWest Group generates on
tangible equity deployed. It is used to determine relative performance of
banks and used widely across the sector, although different banks may
calculate the rate differently. The nearest ratio using IFRS measures is
return on equity, calculated as profit attributable to ordinary shareholders
divided by average total equity.
Non-IFRS financial measures continued
Measure Description
Net interest margin and average interest earning assets Net interest margin is net interest income as a percentage of average interest
earning assets (IEA).
Refer to Segment performance on pages 15-19 for components of calculation.
Average IEA are average IEA of the banking business of NatWest Group and
primarily consists of cash and balances at central banks, loans to banks -
amortised cost, loans to customers - amortised cost and other financial
assets. It excludes trading balances and assets in treasury repurchase
agreements that have not been derecognised. Average IEA shows the average
asset base generating interest over the period.
Net loans to customers excluding central items Net loans to customers excluding central items is calculated as total NatWest
Group net loans to customers excluding Central items & other net loans to
Refer to Segment performance on pages 15-19 for components of calculation. customers. Central items & other includes Treasury reverse repo activity.
The exclusion of Central items & other removes the volatility relating to
Treasury reverse repo activity and the reduction of loans to customers as part
of our withdrawal from the Republic of Ireland.
This allows for better period-on-period comparisons and gives the user of the
financial statements a better understanding of the movements in net loans to
customers.
Operating expenses excluding litigation and conduct The management analysis of operating expenses shows litigation and conduct
costs separately. These amounts are included within staff costs and other
Refer to table 4. Operating expenses excluding litigation and conduct on page administrative expenses in the statutory analysis. Other operating expenses
43. excludes litigation and conduct costs, which are more volatile and may distort
period-on-period comparisons.
Segment return on equity Segment return on equity comprises segmental operating profit or loss,
adjusted for paid-in equity and tax, divided by average notional equity.
Refer to table 8. Segment return on equity on page 45. Average RWAe is defined as average segmental RWAs incorporating the effect of
capital deductions. This is multiplied by an allocated equity factor for each
segment to calculate the average notional equity. This measure shows the
return generated by operating segments on equity deployed.
Tangible net asset value (TNAV) per ordinary share TNAV per ordinary share is calculated as tangible equity divided by the number
of ordinary shares in issue. This is a measure used by external analysts in
Refer to table 3. Tangible net asset value (TNAV) per ordinary share on page valuing the bank and allows for comparison with other per ordinary share
43. metrics including the share price. The nearest ratio using IFRS measures is:
net asset value (NAV) per ordinary share - this comprises ordinary
shareholders' interests divided by the number of ordinary shares in issue.
Total customer assets and liabilities (CAL) CAL comprises customers deposits and gross loans to customers (amortised
cost), across the Retail Banking, Private Banking & Wealth Management and
Refer to table 6. Total customer assets and liabilities (CAL) on page 44. Commercial & Institutional segments. For the Private Banking & Wealth
Management segment, CAL also includes AUMA, with an adjustment to deduct
investment cash to avoid double counting, as investment cash is recognised
within both customer deposits and AUMA.
The components of CAL are key drivers of income and provide a measure of
growth and strength of the business on a comparable basis.
Total income excluding notable items Total income excluding notable items is calculated as total income less
notable items. The exclusion of notable items aims to remove the impact of
Refer to table 1. Total income excluding notable items on page 42. one-offs and other items which may distort period-on-period comparisons.
Non-IFRS financial measures continued
1. Total income excluding notable items
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Continuing operations
Total income 16,641 14,703 4,324 4,332 3,825
Less notable items:
Commercial & Institutional
Own credit adjustments (OCA) 1 (9) (2) - (4)
Dividend received on restructuring of a strategic investment 51 - 51 - -
Central items & other
Share of gains/(losses) of associate - Business Growth Fund 70 21 15 41 (1)
Interest and foreign exchange management derivatives not in hedge 185 150 17 162 19
accounting relationships
Foreign exchange recycling (losses)/gains (27) (76) 10 (37) (30)
Loss on reclassification to disposal groups under IFRS 5 (39) - (39) - -
Tax interest on prior periods - (31) - - (31)
241 55 52 166 (47)
Total income excluding notable items 16,400 14,648 4,272 4,166 3,872
2. Cost:income ratio (excl. litigation and conduct)
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Continuing operations
Operating expenses 8,262 8,149 2,248 1,996 2,267
Less litigation and conduct costs (167) (295) (37) (12) (153)
Other operating expenses 8,095 7,854 2,211 1,984 2,114
Total income 16,641 14,703 4,324 4,332 3,825
Cost:income ratio 49.6% 55.4% 52.0% 46.1% 59.3%
Cost:income ratio (excl. litigation and conduct) 48.6% 53.4% 51.1% 45.8% 55.3%
Non-IFRS financial measures continued
3. Tangible net asset value (TNAV) per ordinary share
As at
31 December 30 September 31 December
2025 2025 2024
Ordinary shareholders' interests (£m) 38,028 36,570 34,070
Less intangible assets (£m) (7,292) (7,477) (7,588)
Tangible equity (£m) 30,736 29,093 26,482
Ordinary shares in issue (millions) (1) 7,995 8,031 8,043
NAV per ordinary share (pence) 476p 455p 424p
TNAV per ordinary share (pence) 384p 362p 329p
(1) The number of ordinary shares in issue excludes own shares held.
4. Operating expenses excluding litigation and conduct
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Other operating expenses
Staff expenses 4,110 3,997 966 1,045 938
Premises and equipment 1,285 1,211 383 318 348
Other administrative expenses 1,546 1,588 563 323 524
Depreciation and amortisation 1,154 1,058 299 298 304
Total other operating expenses 8,095 7,854 2,211 1,984 2,114
Litigation and conduct costs
Staff expenses 64 64 15 19 11
Premises and equipment 6 - 2 1 -
Other administrative expenses 97 231 20 (8) 142
Total litigation and conduct costs 167 295 37 12 153
Total operating expenses 8,262 8,149 2,248 1,996 2,267
Operating expenses excluding litigation and conduct 8,095 7,854 2,211 1,984 2,114
Non-IFRS financial measures continued
5. Loan:deposit ratio (excl. repos and reverse repos)
As at
31 December 30 September 31 December
2025 2025 2024
£m £m £m
Loans to customers - amortised cost 418,881 415,274 400,326
Less reverse repos (32,817) (33,604) (34,846)
Loans to customers - amortised cost (excl. reverse repos) 386,064 381,670 365,480
Customer deposits 442,998 435,490 433,490
Less repos (1,796) (1,412) (1,363)
Customer deposits (excl. repos) 441,202 434,078 432,127
Loan:deposit ratio (%) 95% 95% 92%
Loan:deposit ratio (excl. repos and reverse repos) (%) 88% 88% 85%
6. Total customer assets and liabilities (CAL)
As at
31 December 2025 30 September 2025 31 December 2024
Private Banking Private Banking Private Banking
Retail & Wealth Commercial Retail & Wealth Commercial Retail & Wealth Commercial
Banking Management & Institutional Total Banking Management & Institutional Total Banking Management & Institutional Total
£bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn
Gross loans and advances to customers 217.9 19.0 155.8 392.7 217.9 18.9 151.3 388.1 210.1 18.3 143.4 371.8
Customer deposits 202.6 42.7 196.4 441.7 195.8 40.6 198.3 434.7 194.8 42.4 194.1 431.3
Assets under management and
administration (AUMA) - 58.5 - 58.5 - 56.0 - 56.0 - 48.9 - 48.9
Less investment cash included in both customer
deposits and AUMA - (1.2) - (1.2) - (1.2) - (1.2) - (1.1) - (1.1)
CAL 420.5 119.0 352.2 891.7 413.7 114.3 349.6 877.6 404.9 108.5 337.5 850.9
7. NatWest Group Return on Tangible Equity
Year ended Quarter ended
31 December 31 December 31 December 30 September 31 December
2025 2024 2025 2025 2024
£m £m £m £m £m
Profit attributable to ordinary shareholders 5,479 4,519 1,393 1,598 1,248
Annualised profit attributable to ordinary shareholders 5,572 6,392 4,992
Average total equity 41,506 38,018 42,877 41,667 38,915
Adjustment for average other owners' equity and intangible assets (12,952) (12,226) (12,431) (12,954) (12,703)
Adjusted total tangible equity 28,554 25,792 30,446 28,713 26,212
Return on equity 13.2% 11.9% 13.0% 15.3% 12.8%
Return on Tangible Equity 19.2% 17.5% 18.3% 22.3% 19.0%
Non-IFRS financial measures continued
8. Segment return on equity
Year ended 31 December 2025 Year ended 31 December 2024
Private Banking Private Banking
Retail & Wealth Commercial Retail & Wealth Commercial
Banking Management & Institutional Banking Management & Institutional
Operating profit (£m) 3,121 394 4,064 2,431 264 3,585
Paid-in equity cost allocation (£m) (99) (17) (237) (79) (18) (183)
Adjustment for tax (£m) (846) (106) (957) (659) (69) (851)
Adjusted attributable profit (£m) 2,176 271 2,870 1,693 177 2,551
Average RWAe (£bn) 68.9 11.3 108.1 63.4 11.1 107.0
Equity factor 12.8% 11.1% 13.9% 13.4% 11.2% 13.8%
Average notional equity (£bn) 8.8 1.3 15.0 8.5 1.2 14.8
Return on equity 24.7% 21.7% 19.1% 19.9% 14.2% 17.2%
Quarter ended 31 December 2025 Quarter ended 30 September 2025 Quarter ended 31 December 2024
Private Banking Private Banking Private Banking
Retail & Wealth Commercial Retail & Wealth Commercial & Retail & Wealth Commercial
Banking Management & Institutional Banking Management Institutional Banking Management & Institutional
Operating profit (£m) 786 107 1,039 850 108 1,041 677 75 861
Paid-in equity cost allocation (£m) (24) (4) (56) (26) (5) (52) (23) (5) (53)
Adjustment for tax (£m) (213) (29) (246) (231) (29) (247) (183) (20) (202)
Adjusted attributable profit (£m) 549 74 737 593 74 742 471 50 606
Annualised adjusted attributable profit (£m) 2,195 297 2,949 2,373 297 2,967 1,884 202 2,424
Average RWAe (£bn) 69.7 11.3 109.3 70.2 11.4 108.2 65.6 11.0 106.0
Equity factor 12.8% 11.1% 13.9% 12.8% 11.1% 13.9% 13.4% 11.2% 13.8%
Average notional equity (£bn) 8.9 1.3 15.2 9.0 1.3 15.0 8.8 1.2 14.6
Return on equity 24.6% 23.6% 19.4% 26.4% 23.4% 19.7% 21.4% 16.3% 16.6%
Performance measures not defined under IFRS
The table below summarises other performance measures used by NatWest Group,
not defined under IFRS, and therefore a reconciliation to the nearest IFRS
measure is not applicable.
Measure Description
AUMA AUMA comprises client assets under management (AUM) and client assets under
administration (AUA) serviced through the Private Banking & Wealth
Management segment and not recognised on NatWest Group's balance sheet. AUM
comprise assets where the investment management is undertaken by Private
Banking & Wealth Management on behalf of customers of the Private Banking
& Wealth Management, Retail Banking and Commercial & Institutional
segments. AUA comprise i) third party assets held on an execution-only basis
in custody by Private Banking & Wealth Management, Retail Banking and
Commercial & Institutional for their customers, for which the execution
services are supported by Private Banking & Wealth Management ii) AUA of
Cushon, acquired on 1 June 2023, which are supported by Private Banking &
Wealth Management and held and managed by third parties. This measure is
tracked and reported as the amount of funds that we manage or administer, and
directly impacts the level of investment income that we receive.
AUMA income AUMA income includes investment income which reflects an ongoing fee as
percentage of assets and transactional income related to investment services
comprised of one-off fees for advice services, trading and exchange services,
protection and alternative investing services. AUMA is a core driver of
non-interest income, especially with respect to ongoing investment income and
this measure provides a means of reporting the income earned on AUMA.
AUMA net flows AUMA net flows represents assets under management (AUM net flows) and assets
under administration (AUA net flows). AUMA net flows is reported and tracked
to monitor the business performance of new business inflows and management of
existing client withdrawals across Private Banking & Wealth Management,
Retail Banking and Commercial & Institutional.
Capital generation pre-distributions Capital generation pre-distributions refers to the change in the CET1 ratio in
the period, before distributions to ordinary shareholders. It reflects the
capital generated through business activities and all other movements,
including attributable profit for the period, impacts from acquisitions and
disposals, and risk-weighted asset (RWA) changes, prior to the deduction of
ordinary shareholder distributions such as ordinary dividends and share
buybacks. It is used to show the capital generated in the period that is
available for deployment in the business and distribution to shareholders.
Climate and transition finance The climate and transition finance target enables NatWest Group to quantify the level of financing and facilitation provided by NatWest Group that could support customers in achieving their climate and/or transition ambitions, through lending and
underwriting activities. The climate and transition framework, available on natwestgroup.com, underpins the target to provide £200 billion in climate and transition finance between 1 July 2025 and the end of 2030.
Loan impairment rate Loan impairment rate is the annualised loan impairment charge divided by gross customer loans. This measure is used to assess the credit quality of the loan book.
Third party rates Third party customer asset rate is calculated as annualised interest receivable on third-party loans to customers as a percentage of third-party loans to customers. This excludes assets of disposal groups, intragroup items, loans to banks and liquid asset
portfolios. Third party customer funding rate reflects interest payable or receivable on third-party customer deposits, including interest bearing and non- interest bearing customer deposits. Intragroup items, bank deposits, debt securities in issue and
subordinated liabilities are excluded for customer funding rate calculation.
Wholesale funding Wholesale funding comprises deposits by banks (excluding repos), debt securities in issue and subordinated liabilities. Funding risk is the risk of not maintaining a diversified, stable and cost-effective funding base. The disclosure of wholesale funding
highlights the extent of our diversification and how we mitigate funding risk.
Legal Entity Identifier: 2138005O9XJIJN4JPN90
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