REG - NatWest Group plc - NatWest Group plc Q3 Results 2025
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RNS Number : 6578E NatWest Group plc 24 October 2025
Inside this report
Business performance summary
2 Q3 2025 performance summary
3 Performance key metrics and ratios
5 Chief Financial Officer's review
6 Retail Banking
7 Private Banking & Wealth Management
8 Commercial & Institutional
9 Central items & other
10 Segment performance
Risk and capital management
15 Credit risk
15 Segment analysis - portfolio summary
16 Segment analysis - loans
16 Movement in ECL provision
17 ECL post model adjustments
18 Sector analysis - portfolio summary
23 Capital, liquidity and funding risk
29 Pension risk
Financial statements and notes
30 Condensed consolidated income statement
31 Condensed consolidated statement of comprehensive income
32 Condensed consolidated balance sheet
33 Condensed consolidated statement of changes in equity
35 Presentation of condensed consolidated financial statements
35 Litigation and regulatory matters
36 Post balance sheet events
Additional information
37 Presentation of information
37 Statutory accounts
37 Contacts
37 Forward-looking statements
38 Non-IFRS financial measures
43 Performance measures not defined under IFRS
Q3 2025 performance summary
Chief Executive, Paul Thwaite, commented:
"NatWest Group delivered another strong performance in the third quarter of
2025, underpinned by healthy levels of customer activity and the continued
support we provide to them. This is driving positive momentum across our three
businesses, with continued lending growth and deposits remaining stable.
With our strategic focus on growth, NatWest Group's impact can be felt right
across the economy, as we help people get on the housing ladder, save and
invest for the future and grow their businesses - from innovative start-ups
and vital mid-market firms to the largest multinationals responsible for
critical infrastructure projects. We are also becoming a much simpler bank,
with tight control of costs supporting our digital transformation that is
enabling us to anticipate and meet the changing needs of customers at pace.
As a result of our consistent delivery and capital generation, we have
upgraded our income and returns guidance for 2025 and are well placed to
support our customers, invest for the future and deliver returns to our
shareholders."
Growth in all of our customer businesses
We have delivered a strong financial performance in the quarter, with income
and lending growth across all of our businesses demonstrating our broad-based
support for our customers.
- Total income excluding notable items was up £0.2 billion to £4.2
billion in the quarter, driving an attributable profit of £1.6 billion and a
Return on Tangible Equity (RoTE) of 22.3%.
- In the third quarter net loans to customers excluding central items
were up by £4.4 billion as we met customer needs while deploying capital
where returns were attractive.
- Deposits remained broadly stable across each of the businesses, with a
small overall decrease in the quarter of £1.1 billion in customer deposits
excluding central items. We continue to maintain a strong loan:deposit ratio
(excl. repos and reverse repos) up 2% in the quarter to 88%, and a strong
liquidity position with an average Liquidity Coverage Ratio (LCR) of 148%.
- Assets under management and administration (AUMA) grew strongly in the
quarter, up by 8.1% to £56.0 billion assisted by strong client net inflows.
Simplification continues to drive efficiency
We continued to make good progress on becoming a simpler bank, delivering
efficiencies from our investment programmes and driving efficiency in the
business which resulted in a 5% improvement in our year to date cost:income
(excl. litigation and conduct) ratio of 47.8%, compared with 52.8% in the same
period of 2024.
We are pleased with progress towards our objective of simplifying the way we
operate, becoming a more agile and technology driven bank.
Active balance sheet management creates capacity for growth
We continued to actively manage our balance sheet and risk, delivering a £2.2
billion benefit from RWA management actions as we created capacity for growth.
Capital generation pre-distributions was 101 basis points in the quarter.
Our Common Equity Tier 1 (CET1) ratio of 14.2% was up c.60 basis points
compared with Q4 2024 and c.60 basis points higher than Q2 2025. TNAV per
share in Q3 2025 increased by 11 pence to 362 pence.
Outlook((1))
We will introduce guidance for 2026 and new targets for 2028 with our Full
Year 2025 results on 13 February 2026.
The following statements are based on our current expectations for interest
rates and economic conditions. We will monitor and react to market conditions
and refine our internal forecasts as the economic position evolves.
We now expect income excluding notable items to be around £16.3 billion for
2025 and to achieve a Return on Tangible Equity of greater than 18.0%.
Except for this strengthened guidance, we reaffirm the outlook provided in our
H1 2025 Interim Results.
(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 in the 2024 Annual Report and Accounts and Form
20-F and the Summary Risk Factors in the NatWest Group plc 2025 Interim
Results announcement. These statements constitute forward-looking statements.
Refer to Forward-looking statements in this announcement.
Business performance summary
Nine months ended Quarter ended
30 September 30 September 30 September 30 June 30 September
2025 2024 2025 2025 2024
Summary consolidated income statement £m £m Variance £m £m Variance £m Variance
Net interest income 9,388 8,307 13.0% 3,268 3,094 5.6% 2,899 12.7%
Non-interest income 2,929 2,571 13.9% 1,064 911 16.8% 845 25.9%
Total income 12,317 10,878 13.2% 4,332 4,005 8.2% 3,744 15.7%
Litigation and conduct costs (130) (142) (8.5%) (12) (74) (83.8%) (41) (70.7%)
Other operating expenses (5,884) (5,740) 2.5% (1,984) (1,965) 1.0% (1,784) 11.2%
Operating expenses (6,014) (5,882) 2.2% (1,996) (2,039) (2.1%) (1,825) 9.4%
Profit before impairment losses 6,303 4,996 26.2% 2,336 1,966 18.8% 1,919 21.7%
Impairment losses (535) (293) 82.6% (153) (193) (20.7%) (245) (37.6%)
Operating profit before tax 5,768 4,703 22.6% 2,183 1,773 23.1% 1,674 30.4%
Tax charge (1,412) (1,232) 14.6% (502) (439) 14.4% (431) 16.5%
Profit from continuing operations 4,356 3,471 25.5% 1,681 1,334 26.0% 1,243 35.2%
Profit from discontinued operations, net of tax - 12 (100.0%) - - - 1 (100.0%)
Profit for the period 4,356 3,483 25.1% 1,681 1,334 26.0% 1,244 35.1%
Performance key metrics and ratios
Notable items within total income (1) £189m £102m 85.3% £166m (£5m) nm (£28m) nm
Total income excluding notable items (1) £12,128m £10,776m 12.5% £4,166m £4,010m 3.9% £3,772m 10.4%
Net interest margin (1) 2.31% 2.11% 20bps 2.37% 2.28% 9bps 2.18% 19bps
Average interest earning assets (1) £544bn £526bn 3.4% £548bn £543bn 0.9% £530bn 3.4%
Cost:income ratio (excl. litigation and conduct) (1) 47.8% 52.8% (5.0%) 45.8% 49.1% (3.3%) 47.6% (1.8%)
Loan impairment rate (1) 17bps 10bps 7bps 15bps 19bps (4bps) 25bps (10bps)
Profit attributable to ordinary shareholders £4,086m £3,271m 24.9% £1,598m £1,236m 29.3% £1,172m 36.3%
Total earnings per share attributable to ordinary shareholders - basic 50.7p 38.3p 12.4p 19.8p 15.3p 4.5p 14.1p 5.7p
Return on Tangible Equity (RoTE) (1) 19.5% 17.0% 2.5% 22.3% 17.7% 4.6% 18.3% 4.0%
Climate and transition finance (2) £7,569m na na £7,569m na na 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
30 September 30 June 31 December
2025 2025 2024
Balance sheet £bn £bn Variance £bn Variance
Total assets 725.6 730.8 (0.7%) 708.0 2.5%
Loans to customers - amortised cost 415.3 407.1 2.0% 400.3 3.7%
Loans to customers excluding central items (1,3) 384.5 380.1 1.2% 368.5 4.3%
Loans to customers and banks - amortised cost and FVOCI 427.3 417.9 2.2% 410.2 4.2%
Total impairment provisions (4) 3.7 3.7 - 3.4 8.8%
Expected credit loss (ECL) coverage ratio 0.87% 0.87% - 0.83% 4bps
Assets under management and administration (AUMA) (1) 56.0 51.8 8.1% 48.9 14.5%
Customer deposits 435.5 436.8 (0.3%) 433.5 0.5%
Customer deposits excluding central items (1,3) 434.7 435.8 (0.3%) 431.3 0.8%
Liquidity and funding
Average Liquidity Coverage Ratio (LCR) (5) 148% 150% (2.0%) 151% (3.0%)
Liquidity portfolio 239 217 10.1% 222 7.7%
Average Net Stable Funding Ratio (NSFR) (5) 135% 136% (1.0%) 137% (2.0%)
Loan:deposit ratio (excl. repos and reverse repos) (1) 88% 86% 2% 85% 3%
Total wholesale funding 93 91 2.2% 86 8.1%
Short-term wholesale funding 37 35 5.7% 33 12.1%
Capital and leverage
Common Equity Tier 1 (CET1) ratio (6) 14.2% 13.6% 60bps 13.6% 60bps
Total capital ratio (6) 20.2% 19.7% 50bps 19.7% 50bps
Pro forma CET1 ratio (excl. foreseeable items) (7) 15.1% 14.6% 50bps 14.3% 80bps
Risk-weighted assets (RWAs) 189.1 190.1 (0.5%) 183.2 3.2%
UK leverage ratio 5.0% 5.0% - 5.0% -
Tangible net asset value (TNAV) per ordinary share (1,8) 362p 351p 11p 329p 33p
Number of ordinary shares in issue (millions) (8) 8,031 8,088 (0.7%) 8,043 (0.1%)
(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) NatWest Group uses its climate and transition finance framework to
determine the assets, activities, acquisition targets and companies that are
eligible to be included within its target to provide £200 billion in climate
and transition finance between 1 July 2025 and the end of 2030. This included
both provision of committed (on and off-balance sheet) financing and
facilitation. The climate and transition finance framework is available on
natwestgroup.com.
(3) Central items includes Treasury repo activity.
(4) Includes £0.1 billion relating to off-balance sheet exposures (30
June 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 30 September 2025 excludes foreseeable
items of £1,721 million: £1,275 million for ordinary dividends and £446
million foreseeable charges (30 June 2025 excludes foreseeable items of
£1,994 million: £1,244 million for ordinary dividends and £750 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 another strong performance in the third quarter with total income
excluding notable items up by 3.9% on Q2 2025 and 10.4% on Q3 2024. We made
further progress on simplification and as a result our cost:income ratio
(excl. litigation and conduct) was 47.8% in the year to date compared with
52.8% in the prior year. As a result, we achieved RoTE of 22.3%, including
more than 2 percentage points from one-off items in the quarter.
The balance sheet continues to grow, with another quarter of strong lending
growth of £4.4 billion excluding central items while customer deposits
excluding central items remained broadly stable with a small decrease overall
of £1.1 billion in the quarter. Liquidity position remains robust with an
average LCR of 148%.
Our CET1 ratio came in just above the top end of our target range at 14.2% as
we actively managed the balance sheet, delivering RWA management actions of
£2.2 billion in Q3 2025 which created continued capacity for growth.
Strong Q3 2025 performance across growth and simplification
- Total income increased by 8.2% in Q3 2025 compared with Q2 2025 and
was 15.7% higher than Q3 2024. Total income excluding notable items was £156
million higher than Q2 2025 reflecting deposit margin expansion alongside the
benefit of one additional day in the quarter. As a result, NIM increased by 9
basis points in the quarter to 2.37%.
- Total operating expenses were £43 million lower than Q2 2025 and
£171 million higher than Q3 2024. Other operating expenses were £19 million
higher than Q2 2025 primarily reflecting integration costs following the
acquisition of balances from Sainsbury's Bank and higher restructuring costs
as we continue to develop core skills for the future, including increasing the
number of software engineering roles. Our focus remains on driving cost
savings to create capacity for further investment to accelerate our bank-wide
simplification. Headcount reduced by around 600 FTE compared with Q3 2024 and
was 100 FTE lower than Q2 2025.
We continue to proactively manage risk
- The net impairment charge of £153 million, or 15 basis points of
gross customer loans, was £40 million lower than Q2 2025 as Stage 3 charges
were lower in Commercial & Institutional and the prior quarter included an
£81 million charge on the acquisition of balances from Sainsbury's Bank,
offset by lower post model adjustment releases.
- Compared with Q2 2025, our ECL provision and our ECL coverage ratio
remained stable at £3.7 billion and 0.87% respectively. We retain post model
adjustments of £265 million and remain comfortable with the strong credit
performance of our diversified prime loan book.
Our lending aligns to our climate ambitions
- During Q3 2025 we provided £7.6 billion in climate and transition
finance against our target to provide £200 billion between 1 July 2025 and
the end of 2030, which is underpinned by our climate and transition finance
framework. We also achieved our aim to provide £10 billion in lending for EPC
A and B rated residential properties between 1 January 2023 and the end of
2025, with £10.8 billion lending up to 30 September 2025.
Active balance sheet management supporting robust liquidity levels
- We continued to support our customers as net loans to customers
excluding central items increased £4.4 billion in Q3 2025. Retail Banking
mortgage balances increased by £1.7 billion and Commercial &
Institutional balances were up by £2.5 billion, largely within Corporate
& Institutions and Commercial Mid-market.
- Customer deposits excluding central items reduced £1.1 billion in the
quarter to £434.7 billion primarily reflecting a reduction in savings
balances in Retail Banking and Private Banking & Wealth Management.
Commercial & Institutional increased by £0.4 billion largely due to
higher balances within Commercial Mid-market and Business Banking. Total
business term balances reduced to 16% of the book, down from 17% at Q2 2025.
- We continue to actively manage our balance sheet as RWAs decreased by
£1.0 billion in the quarter to £189.1 billion, including a further £2.2
billion benefit from RWA management actions as we created capacity for lending
growth.
- The average LCR of 148% (spot LCR: 141%) representing £51.6 billion
headroom above 100% minimum requirement, decreased by 2 percentage points
compared with Q2 2025 primarily due to higher lending. Our primary liquidity
at Q3 2025 was £159 billion, of which £80.5 billion, or 51% was cash and
balances at central banks. Total wholesale funding increased by £2.1 billion
in the quarter to £92.9 billion.
Shareholder return supported by strong capital generation
- An attributable profit of £1,598 million and RoTE of 22.3% included
more than 2 percentage points from one-off items in the quarter, including a
£147 million gain from the release of a funding valuation adjustment applied
to a portfolio of derivatives.
- The CET1 ratio of 14.2% was c.60 basis points higher than Q2 2025
principally reflecting the attributable profit for the quarter, c.85 basis
points, and the reduction in RWAs, c.10 basis points, partially offset by the
foreseeable ordinary dividend, c.40 basis points.
- TNAV per share increased by 11 pence in the quarter to 362 pence
primarily reflecting the profit for the period partially offset by the interim
dividend payment.
Business performance summary
Retail Banking
Quarter ended
30 September 30 June 30 September
2025 2025 2024
£m £m £m
Total income 1,662 1,594 1,459
Operating expenses (715) (742) (659)
of which: Other operating expenses (712) (734) (656)
Impairment losses (97) (117) (144)
Operating profit 850 735 656
Return on equity (1) 26.4% 23.2% 21.4%
Net interest margin (1) 2.64% 2.59% 2.43%
Cost:income ratio (excl. litigation and conduct) (1) 42.8% 46.0% 45.0%
Loan impairment rate (1) 18bps 22bps 28bps
As at
30 September 30 June 31 December
2025 2025 2024
£bn £bn £bn
Net loans to customers (amortised cost) 216.0 214.3 208.4
Customer deposits 195.8 196.6 194.8
RWAs 69.1 69.4 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.
During Q3 2025, Retail Banking delivered a return on equity of 26.4% and an
operating profit of £850 million, with continued positive income and net
interest margin momentum. We have increased net mortgage lending by £1.7
billion and, as we widen our customer proposition, we have announced our
partnership with Landbay to support more buy-to-let property investors. In
addition, we have continued to progress the integration of our recently
acquired Sainsbury's customers, with credit card customers now able to view
their credit card, link their Sainsbury's Nectar card and view their Nectar
points from credit card spending in our app.
Retail Banking provided £1.2 billion of climate and transition financing in
Q3 2025 from lending on EPC A and B rated residential properties.
Q3 2025 performance
- Total income was £68 million, or 4.3%, higher than Q2 2025 reflecting
deposit margin expansion, full quarter impact of balances acquired from
Sainsbury's Bank and the benefit of one additional day in the quarter. Q3 2025
total income was £203 million, or 13.9%, higher than Q3 2024 reflecting
deposit margin expansion, lending growth and the impact of balances acquired
from Sainsbury's Bank.
- Net interest margin was 5 basis points higher than Q2 2025 largely
reflecting deposit margin expansion and full quarter impact of balances
acquired from Sainsbury's Bank.
- Other operating expenses were £22 million, or 3.0%, lower than Q2
2025 reflecting non-repeat of Q2 2025 FCA regulatory fees and property exit
costs. Other operating expenses were £56 million, or 8.5%, higher than Q3
2024 reflecting higher investment spend, partly offset by a 4.9% reduction in
headcount.
- An impairment charge of £97 million, compared with a £117 million
charge in Q2 2025, largely driven by good book model releases. Stage 3 default
driven charge remains stable.
- Net loans to customers increased by £1.7 billion, or 0.8%, in Q3 2025
driven by higher mortgage balances of £1.7 billion, or 0.9%, higher cards
balances of £0.1 billion, or 1.2%, partly offset by lower personal advances
of £0.1 billion, or 1.1%.
- Customer deposits decreased by £0.8 billion, or 0.4%, in Q3 2025
reflecting lower savings balances of £1.4 billion, partly offset by increased
current account balances of £0.6 billion.
- RWAs decreased by £0.3 billion, or 0.4%, in Q3 2025 primarily due to
RWA management actions, largely offset by book movements.
Business performance summary continued
Private Banking & Wealth Management
Quarter ended
30 September 30 June 30 September
2025 2025 2024
£m £m £m
Total income 284 274 253
of which: AUMA income (1) 75 72 68
Operating expenses (173) (172) (166)
of which: Other operating expenses (172) (171) (166)
Impairment (losses)/releases (3) - 3
Operating profit 108 102 90
Return on equity (1) 23.4% 22.5% 19.7%
Net interest margin (1) 2.66% 2.56% 2.50%
Cost:income ratio (excl. litigation and conduct) (1) 60.6% 62.4% 65.6%
Loan impairment rate (1) 6bps - (7bps)
AUMA net flows (£bn) (1) 1.2 1.3 0.9
As at
30 September 30 June 31 December
2025 2025 2024
£bn £bn £bn
Net loans to customers (amortised cost) 18.8 18.6 18.2
Customer deposits 40.6 41.3 42.4
Assets under management (AUM) (1) 41.9 39.0 37.0
Assets under administration (AUA) (1) 14.1 12.8 11.9
Assets under management and administration (AUMA) (1) 56.0 51.8 48.9
Total combined assets and liabilities (CAL) (1,2) 114.2 110.4 108.4
RWAs 11.4 11.5 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, net loans to customers and AUMA.
To avoid double counting, investment cash is deducted as it is reported within
customer deposits and AUMA.
During Q3 2025, Private Banking & Wealth Management continued to deliver a
strong performance with an operating profit of £108 million, return on equity
of 23.4% and cost:income ratio (excl. litigation and conduct) of 60.6%. We
have continued to progress our simplification agenda, including the rollout of
a new workflow tool for investment advice, which has reduced the time to
deliver simple investment advice. Our digital experience also continues to
improve, with mobile NPS rising to 54, reflecting the ongoing enhancements to
our mobile app.
Private Banking & Wealth Management provided £0.1 billion of climate and
transition financing in Q3 2025, principally in relation to mortgages on
residential properties with an EPC rating of A or B and wholesale
transactions.
Q3 2025 performance
- Total income was £10 million, or 3.6%, higher than Q2 2025 primarily
reflecting balance growth across lending and AUMA and deposit margin
expansion. Q3 2025 total income was £31 million, or 12.3%, higher than Q3
2024 primarily reflecting balance growth across deposits, lending and AUMA,
and deposit margin expansion.
- Net interest margin was 10 basis points higher than Q2 2025 largely
reflecting deposit margin expansion.
- Other operating expenses were £1 million, or 0.6%, higher than Q2
2025 primarily reflecting timing of non-staff costs. Other operating expenses
were £6 million, or 3.6%, higher than Q3 2024 primarily reflecting higher
back office costs, partly offset by a 4.5% reduction in headcount.
- An impairment charge of £3 million in Q3 2025, compared with no
impairment charge in Q2 2025. Stage 3 charges remain at low levels.
- CAL increased by £3.8 billion, or 3.4%, in Q3 2025, supported by
growth in AUMA and lending balances.
- Net loans to customers increased by £0.2 billion, or 1.1%, in Q3 2025
driven by higher personal lending balances.
- Customer deposits decreased by £0.7 billion, or 1.7%, in Q3 2025
driven by seasonal tax outflows and continued flows to AUMAs.
- AUMA balances increased by £4.2 billion, in Q3 2025, driven by
positive market movements of £3.0 billion, AUM net inflows of £0.6 billion,
AUA net inflows of £0.4 billion and Cushon net inflows of £0.2 billion. AUM
net flows as a percentage of opening balances are 6.2% on an annualised basis.
Business performance summary continued
Commercial & Institutional
Quarter ended
30 September 30 June 30 September
2025 2025 2024
£m £m £m
Net interest income 1,550 1,496 1,392
Non-interest income 658 651 679
Total income 2,208 2,147 2,071
Operating expenses (1,115) (1,107) (945)
of which: Other operating expenses (1,060) (1,047) (911)
Impairment losses (52) (76) (109)
Operating profit 1,041 964 1,017
Return on equity (1) 19.7% 17.9% 19.9%
Net interest margin (1) 2.36% 2.35% 2.24%
Cost:income ratio (excl. litigation and conduct) (1) 48.0% 48.8% 44.0%
Loan impairment rate (1) 14bps 20bps 31bps
As at
30 September 30 June 31 December
2025 2025 2024
£bn £bn £bn
Net loans to customers (amortised cost) 149.7 147.2 141.9
Customer deposits 198.3 197.9 194.1
Funded assets (1) 348.2 343.1 321.6
RWAs 107.0 107.8 104.7
(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.
During Q3 2025, Commercial & Institutional continued to deliver a strong
performance in income and operating profit, supporting a return on equity of
19.7%, an increase from 17.9% in Q2 2025. We have supported sectors that are
vital to the health and success of the UK economy including continued support
for UK Infrastructure and Housing Associations, reaching £7.4 billion of
lending to Social Housing against our target of £7.5 billion. We saw another
quarter of continued strong demand for FX risk management against a backdrop
of volatile markets, supporting income. We have improved customer experience
through our Bankline transformation and modernised digital platforms, driving
deeper customer engagement.
Commercial & Institutional provided £6.3 billion of climate and
transition funding in Q3 2025 to support customers investing in the transition
to net zero.
Q3 2025 performance
- Total income was £61 million, or 2.8%, higher than Q2 2025 primarily
reflecting deposit margin expansion, lending growth as well as the impact of
an additional day in the quarter. Q3 2025 total income was £137 million, or
6.6%, higher than Q3 2024 primarily reflecting deposit margin expansion and
customer lending growth.
- Net interest margin was 1 basis point higher than Q2 2025 reflecting
deposit margin expansion.
- Other operating expenses were £13 million, or 1.2%, higher than Q2
2025 largely reflecting increased investment spend partially offset by
non-repeat of Q2 2025 FCA regulatory fees and one-off VAT recovery in the
quarter. Other operating expenses were £149 million, or 16.4%, higher than Q3
2024 reflecting inflationary increases on staff costs and increased investment
spend.
- An impairment charge of £52 million in Q3 2025 compared with a £76
million charge in Q2 2025 reflecting lower levels of Stage 3 impairments.
- Net loans to customers increased by £2.5 billion, or 1.7%, in Q3 2025
principally due to Funds lending and Large Corporate growth within Corporate
& Institutions and Regional and Commercial Real Estate growth within
Commercial Mid-market, partly offset by UK Government scheme repayments of
£0.5 billion.
- Customer deposits increased by £0.4 billion, or 0.2%, in Q3 2025
largely reflecting higher balances within Commercial Mid-market and Business
Banking.
- RWAs decreased by £0.8 billion, or 0.7%, in Q3 2025 primarily
reflecting continued RWA management actions, partially offset by book
movements and currency impacts.
Business performance summary continued
Central items & other
Quarter ended
30 September 30 June 30 September
2025 2025 2024
£m £m £m
Continuing operations
Total income 178 (10) (39)
Operating expenses 7 (18) (55)
of which: Other operating expenses (40) (13) (51)
Impairment (losses)/releases (1) - 5
Operating profit/(loss) 184 (28) (89)
As at
30 September 30 June 31 December
2025 2025 2024
£bn £bn £bn
Net loans to customers (amortised cost) 30.8 27.0 31.8
Customer deposits 0.8 1.0 2.2
RWAs 1.6 1.4 2.0
Q3 2025 performance
- Total income was £188 million higher than Q2 2025 primarily
reflecting higher gains on interest and FX risk management derivatives not in
accounting hedge relationships and Business Growth Fund profits partially
offset with foreign exchange recycling losses.
- Other operating expenses were £27 million higher than Q2 2025
primarily due to one-off items including an HMRC tax credit in Q2 2025, timing
of spend, as well as higher staff restructuring costs in the quarter as we
pivot support towards developing critical core skills for the future.
- Net loans to customers increased by £3.8 billion in Q3 2025 driven by
reverse repo activity in Treasury.
- Customer deposits decreased by £0.2 billion in Q3 2025 reflecting
repo activity in Treasury.
Segment performance
Nine months 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 4,471 555 4,505 (143) 9,388
Own credit adjustments - - 3 - 3
Other non-interest income 325 268 1,989 344 2,926
Total income 4,796 823 6,497 201 12,317
Direct expenses (604) (183) (1,192) (3,905) (5,884)
Indirect expenses (1,519) (347) (1,930) 3,796 -
Other operating expenses (2,123) (530) (3,122) (109) (5,884)
Litigation and conduct costs (15) (2) (144) 31 (130)
Operating expenses (2,138) (532) (3,266) (78) (6,014)
Operating profit before impairment losses 2,658 291 3,231 123 6,303
Impairment losses (323) (4) (206) (2) (535)
Operating profit 2,335 287 3,025 121 5,768
Total income excluding notable items (1) 4,796 823 6,494 15 12,128
Additional information
Return on Tangible Equity (1) na na na na 19.5%
Return on equity (1) 24.7% 21.0% 19.0% nm na
Cost:income ratio (excl. litigation and conduct) (1) 44.3% 64.4% 48.1% nm 47.8%
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) 20bps 3bps 18bps nm 17bps
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
Employee numbers (FTEs - thousands) 11.6 2.1 12.6 32.8 59.1
Third party customer asset rate (1) 4.34% 4.74% 6.04% nm nm
Third party customer funding rate (1) (1.78%) (2.75%) (1.60%) nm nm
Average interest earning assets (£bn) (1) 229.8 28.5 257.1 na 544.3
Net interest margin (1) 2.60% 2.60% 2.34% na 2.31%
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
Nine months ended 30 September 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 3,825 455 3,935 92 8,307
Own credit adjustments - - (5) - (5)
Other non-interest income 324 242 1,941 69 2,576
Total income 4,149 697 5,871 161 10,878
Direct expenses (586) (190) (1,120) (3,844) (5,740)
Indirect expenses (1,527) (331) (1,864) 3,722 -
Other operating expenses (2,113) (521) (2,984) (122) (5,740)
Litigation and conduct costs (16) (1) (111) (14) (142)
Operating expenses (2,129) (522) (3,095) (136) (5,882)
Operating profit before impairment losses/releases 2,020 175 2,776 25 4,996
Impairment (losses)/releases (266) 14 (52) 11 (293)
Operating profit 1,754 189 2,724 36 4,703
Total income excluding notable items (1) 4,149 697 5,876 54 10,776
Additional information
Return on Tangible Equity (1) na na na na 17.0%
Return on equity (1) 19.4% 13.6% 17.4% nm na
Cost:income ratio (excl. litigation and conduct) (1) 50.9% 74.7% 50.8% nm 52.8%
Total assets (£bn) 231.1 27.3 398.7 54.8 711.9
Funded assets (£bn) (1) 231.1 27.3 331.1 53.7 643.2
Net loans to customers - amortised cost (£bn) 207.4 18.2 138.1 23.0 386.7
Loan impairment rate (1) 17bps (10bps) 5bps nm 10bps
Impairment provisions (£bn) (1.9) (0.1) (1.6) - (3.6)
Impairment provisions - Stage 3 (£bn) (1.1) - (1.0) - (2.1)
Customer deposits (£bn) 192.0 39.7 195.7 3.7 431.1
Risk-weighted assets (RWAs) (£bn) 64.8 11.0 104.0 1.9 181.7
RWA equivalent (RWAe) (£bn) 65.3 11.0 105.3 2.4 184.0
Employee numbers (FTEs - thousands) 12.2 2.2 12.8 32.5 59.7
Third party customer asset rate (1) 3.95% 4.99% 6.74% nm nm
Third party customer funding rate (1) (2.08%) (3.15%) (1.92%) nm nm
Average interest earning assets (£bn) (1) 220.5 26.6 244.9 na 526.2
Net interest margin (1) 2.32% 2.29% 2.15% na 2.11%
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
Total 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
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 30 June 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 1,484 182 1,496 (68) 3,094
Own credit adjustments - - (3) - (3)
Other non-interest income 110 92 654 58 914
Total income 1,594 274 2,147 (10) 4,005
Direct expenses (230) (63) (403) (1,269) (1,965)
Indirect expenses (504) (108) (644) 1,256 -
Other operating expenses (734) (171) (1,047) (13) (1,965)
Litigation and conduct costs (8) (1) (60) (5) (74)
Operating expenses (742) (172) (1,107) (18) (2,039)
Operating profit/(loss) before impairment losses 852 102 1,040 (28) 1,966
Impairment losses (117) - (76) - (193)
Operating profit/(loss) 735 102 964 (28) 1,773
Total income excluding notable items (1) 1,594 274 2,150 (8) 4,010
Additional information
Return on Tangible Equity (1) na na na na 17.7%
Return on equity (1) 23.2% 22.5% 17.9% nm na
Cost:income ratio (excl. litigation and conduct) (1) 46.0% 62.4% 48.8% nm 49.1%
Total assets (£bn) 238.6 29.1 414.9 48.2 730.8
Funded assets (£bn) (1) 238.6 29.1 343.1 47.0 657.8
Net loans to customers - amortised cost (£bn) 214.3 18.6 147.2 27.0 407.1
Loan impairment rate (1) 22bps - 20bps nm 19bps
Impairment provisions (£bn) (1.9) (0.1) (1.7) - (3.7)
Impairment provisions - Stage 3 (£bn) (1.1) - (1.1) - (2.2)
Customer deposits (£bn) 196.6 41.3 197.9 1.0 436.8
Risk-weighted assets (RWAs) (£bn) 69.4 11.5 107.8 1.4 190.1
RWA equivalent (RWAe) (£bn) 70.0 11.5 108.8 2.0 192.3
Employee numbers (FTEs - thousands) 11.8 2.1 12.8 32.5 59.2
Third party customer asset rate (1) 4.32% 4.74% 6.00% nm nm
Third party customer funding rate (1) (1.79%) (2.74%) (1.60%) nm nm
Average interest earning assets (£bn) (1) 230.0 28.5 255.6 na 543.2
Net interest margin (1) 2.59% 2.56% 2.35% na 2.28%
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 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 1,350 170 1,392 (13) 2,899
Own credit adjustments - - 2 - 2
Other non-interest income 109 83 677 (26) 843
Total income 1,459 253 2,071 (39) 3,744
Direct expenses (205) (64) (356) (1,159) (1,784)
Indirect expenses (451) (102) (555) 1,108 -
Other operating expenses (656) (166) (911) (51) (1,784)
Litigation and conduct costs (3) - (34) (4) (41)
Operating expenses (659) (166) (945) (55) (1,825)
Operating profit/(loss) before impairment losses/releases 800 87 1,126 (94) 1,919
Impairment (losses)/releases (144) 3 (109) 5 (245)
Operating profit /(loss) 656 90 1,017 (89) 1,674
Total income excluding notable items (1) 1,459 253 2,069 (9) 3,772
Additional information
Return on Tangible Equity (1) na na na na 18.3%
Return on equity (1) 21.4% 19.7% 19.9% nm na
Cost:income ratio (excl. litigation and conduct) (1) 45.0% 65.6% 44.0% nm 47.6%
Total assets (£bn) 231.1 27.3 398.7 54.8 711.9
Funded assets (£bn) (1) 231.1 27.3 331.1 53.7 643.2
Net loans to customers - amortised cost (£bn) 207.4 18.2 138.1 23.0 386.7
Loan impairment rate (1) 28bps (7bps) 31bps nm 25bps
Impairment provisions (£bn) (1.9) (0.1) (1.6) - (3.6)
Impairment provisions - Stage 3 (£bn) (1.1) - (1.0) - (2.1)
Customer deposits (£bn) 192.0 39.7 195.7 3.7 431.1
Risk-weighted assets (RWAs) (£bn) 64.8 11.0 104.0 1.9 181.7
RWA equivalent (RWAe) (£bn) 65.3 11.0 105.3 2.4 184.0
Employee numbers (FTEs - thousands) 12.2 2.2 12.8 32.5 59.7
Third party customer asset rate (1) 4.09% 5.01% 6.67% nm nm
Third party customer funding rate (1) (2.10%) (3.16%) (1.91%) nm nm
Average interest earning assets (£bn) (1) 221.4 27.0 246.8 na 529.8
Net interest margin (1) 2.43% 2.50% 2.24% na 2.18%
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
Credit risk
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.
30 September 2025 31 December 2024
Private Banking Private Banking
Retail & Wealth Commercial Central items Retail & Wealth Commercial Central items
Banking Management & Institutional & other Total Banking Management & Institutional & other Total
£m £m £m £m £m £m £m £m £m £m
Loans - amortised cost and FVOCI (1,2)
Stage 1 189,140 17,619 138,333 35,504 380,596 182,366 17,155 128,988 35,312 363,821
Stage 2 25,529 891 14,510 56 40,986 24,242 844 15,339 49 40,474
Stage 3 3,068 372 2,286 2 5,728 3,268 322 2,340 - 5,930
Of which: individual - 272 1,290 - 1,562 - 233 1,052 - 1,285
Of which: collective 3,068 100 996 2 4,166 3,268 89 1,288 - 4,645
Total 217,737 18,882 155,129 35,562 427,310 209,876 18,321 146,667 35,361 410,225
ECL provisions (3)
Stage 1 346 14 263 14 637 279 16 289 14 598
Stage 2 413 10 331 1 755 428 12 346 1 787
Stage 3 1,179 45 1,100 1 2,325 1,063 36 941 - 2,040
Of which: individual - 45 599 - 644 - 36 415 - 451
Of which: collective 1,179 - 501 1 1,681 1,063 - 526 - 1,589
Total 1,938 69 1,694 16 3,717 1,770 64 1,576 15 3,425
ECL provisions coverage (4)
Stage 1 (%) 0.18 0.08 0.19 0.04 0.17 0.15 0.09 0.22 0.04 0.16
Stage 2 (%) 1.62 1.12 2.28 1.79 1.84 1.77 1.42 2.26 2.04 1.94
Stage 3 (%) 38.43 12.10 48.12 50.00 40.59 32.53 11.18 40.21 - 34.40
Total 0.89 0.37 1.09 0.04 0.87 0.84 0.35 1.07 0.04 0.83
(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 £83.5 billion (31 December 2024 - £91.8 billion) and debt
securities of £70.7 billion (31 December 2024 - £62.4 billion).
(2) Fair value through other comprehensive income (FVOCI). Includes
loans to customers and banks.
(3) Includes £4 million (31 December 2024 - £4 million) related to
assets classified as FVOCI and £0.1 billion (31 December 2024 - £0.1
billion) related to off-balance sheet exposures.
(4) ECL provisions coverage is calculated as ECL provisions, including
ECL for other non-loan assets and unutilised exposure, divided by loans -
amortised cost and FVOCI. Some segments with a high proportion of debt
securities or unutilised exposure may result in a not meaningful (nm) coverage
ratio.
Risk and capital management continued
Credit risk continued
Segment analysis - loans
· Retail Banking - Asset quality and arrears rates remained stable and
within expectations during the year. The overall 2025 increase in good book
and total ECL coverage was largely driven by the acquisition of the
Sainsbury's Bank portfolio earlier this year which, in conjunction with
continued organic growth on cards and personal loan portfolios, increased the
unsecured portfolio mix. Good book coverage for Retail Banking remained
stable, reflecting portfolio arrears trends and no change to economic
scenarios The good book ECL on credit cards reduced due to a decrease in
exposure at default on inaccessible limits. The reduction in the proportion of
Stage 3 loans this year was influenced by both the acquisition of the
Sainsbury's Bank portfolio on unsecured and an enhancement to the application
of the definition of default used on mortgages. The latter resulted in a £0.4
billion migration of loans from Stage 3 back to the good book.
Commercial & Institutional - Increased coverage in the portfolio primarily
reflected the impact of defaulted charges in the first half of the year,
driven by a small number of individual charges. Underlying default rates and
total number of defaults remained subdued, reflecting overall stable portfolio
performance. Performing book ECL reduced in the year, in line with economic
improvements and reductions in post model adjustments, even as total
performing book exposure increased.
Movement in ECL provision
The table below shows the main ECL provision movements during the year.
ECL provision
£m
At 1 January 2025 3,425
Acquisitions 81
Changes in economic forecasts 10
Changes in risk metrics and exposure: Stage 1 and Stage 2 (20)
Changes in risk metrics and exposure: Stage 3 564
Judgemental changes: changes in post model adjustments for Stage 1,
Stage 2 and Stage 3 (71)
Write-offs and other (272)
At 30 September 2025 3,717
- For the nine months to 30 September 2025, overall ECL increased
following Non-Personal Stage 3 charges and an increase in good book ECL in the
Personal portfolio, driven by the Sainsbury's Bank portfolio acquisition.
- For the Non-Personal portfolio, ECL increased this year from Stage 3
charges, driven by a small number of individual charges in the Commercial
& Institutional portfolio. This was partially offset by post model
adjustment releases in the good book.
- In the Personal portfolios, default inflows were broadly stable for
the nine months to 30 September 2025. However, Stage 3 ECL increased
year-to-date on all unsecured portfolios, with reduced debt sale activity. In
2025, there was a reduction of Stage 3 ECL on mortgages related to an
enhancement to the application of the definition of default, resulting in a
£0.4 billion migration of loans from Stage 3 to the good book.
- Judgemental ECL post model adjustments decreased this year to £265
million (31 December 2024 - £336 million) representing 7.1% of total ECL (31
December 2024 - 9.8%). This reflected revisions to the Retail Banking cost of
living post model adjustment after regular back-testing, and Non-Personal
portfolio improvements in underlying risk profile.
Risk and capital management continued
Credit risk continued
ECL post model adjustments
The table below shows ECL post model adjustments.
Private Banking
Retail Banking & Wealth Commercial
Mortgages Other Management & Institutional Total
30 September 2025 £m £m £m £m £m
Deferred model
calibrations - - 1 13 14
Economic uncertainty 55 31 8 139 233
Other adjustments - - - 18 18
Total 55 31 9 170 265
Of which:
- Stage 1 40 13 4 73 130
- Stage 2 15 18 5 97 135
- Stage 3 - - - - -
31 December 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 updates to
post model adjustment parameters.
- Retail Banking - As at 30 September 2025, the post model adjustment
for economic uncertainty decreased to £86 million (31 December 2024 - £112
million). This reduction was driven by a revision to the cost of living post
model adjustment, which now stands at £86 million (31 December 2024 - £105
million), and is 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 lower income
customers in fuel poverty, over-indebted borrowers, and customers vulnerable
to higher mortgage rates.
- Commercial & Institutional - As at 30 September 2025, the post
model adjustment for economic uncertainty decreased to £139 million (31
December 2024 - £179 million). The inflation, supply chain and liquidity post
model adjustment of £123 million (31 December 2024 - £150 million) for
lending prior to 1 January 2024, remained the largest component of this
adjustment. Downgrades to risk profiles were applied to the sectors that were
considered most at risk from the current economic and geopolitical headwinds,
with the level of downgrade reviewed to ensure the latest risks were
appropriately captured. The £27 million decrease reflected improved risk
metrics along with reduced exposure in the portfolio subject to the
adjustment, through either repayment or default.
Risk and capital management continued
Credit risk continued
Sector analysis - portfolio summary
The table below shows financial assets and off-balance sheet exposures gross
of ECL and related ECL provisions, impairment and past due by sector, asset
quality and geographical region.
Personal Non-Personal
Credit Other Corporate and Financial
Mortgages (1) cards personal Total other institutions Sovereign Total Total
30 September 2025 £m £m £m £m £m £m £m £m £m
Loans by geography 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310
- UK 215,128 8,275 11,447 234,850 99,727 48,581 491 148,799 383,649
- Other Europe 12 - - 12 6,694 13,989 369 21,052 21,064
- RoW - - - - 8,603 13,530 464 22,597 22,597
Loans by asset quality (2) 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310
- AQ1-AQ4 118,453 124 887 119,464 44,200 70,744 913 115,857 235,321
- AQ5-AQ8 93,366 7,796 9,353 110,515 68,382 5,217 129 73,728 184,243
- AQ9 1,163 130 204 1,497 251 3 265 519 2,016
- AQ10 2,158 225 1,003 3,386 2,191 136 17 2,344 5,730
Loans by stage 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310
- Stage 1 190,571 6,046 8,966 205,583 98,545 75,427 1,041 175,013 380,596
- Stage 2 22,408 2,004 1,478 25,890 14,293 537 266 15,096 40,986
- Stage 3 2,161 225 1,003 3,389 2,186 136 17 2,339 5,728
- Of which: individual 154 1 26 181 1,241 123 17 1,381 1,562
- Of which: collective 2,007 224 977 3,208 945 13 - 958 4,166
Loans - past due analysis 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310
- Not past due 211,764 7,987 10,421 230,172 111,908 75,826 1,307 189,041 419,213
- Past due 1-30 days 1,614 64 76 1,754 1,869 150 - 2,019 3,773
- Past due 31-90 days 581 74 108 763 380 9 17 406 1,169
- Past due 91-180 days 409 55 104 568 105 65 - 170 738
- Past due >180 days 772 95 738 1,605 762 50 - 812 2,417
Loans - Stage 2 22,408 2,004 1,478 25,890 14,293 537 266 15,096 40,986
- Not past due 20,992 1,915 1,368 24,275 13,449 532 266 14,247 38,522
- Past due 1-30 days 1,142 37 39 1,218 579 3 - 582 1,800
- Past due 31-90 days 274 52 71 397 265 2 - 267 664
Weighted average life
- ECL measurement (years) 9 4 6 5 7 4 nm 7 6
Weighted average 12 months PDs
- IFRS 9 (%) 0.44 3.46 4.68 0.70 1.13 0.16 9.34 0.80 0.75
- Basel (%) 0.66 3.87 3.35 0.87 1.06 0.15 9.34 0.75 0.82
ECL provisions by geography 377 469 1,134 1,980 1,564 149 24 1,737 3,717
- UK 376 469 1,134 1,979 1,389 99 12 1,500 3,479
- Other Europe 1 - - 1 115 9 - 124 125
- RoW - - - - 60 41 12 113 113
For the notes to this table refer to page 21.
Risk and capital management continued
Credit risk continued
Sector analysis - portfolio summary continued
Personal Non-Personal
Credit Other Corporate and Financial
Mortgages (1) cards personal Total other institutions Sovereign Total Total
30 September 2025 £m £m £m £m £m £m £m £m £m
ECL provisions by stage 377 469 1,134 1,980 1,564 149 24 1,737 3,717
- Stage 1 55 121 175 351 235 38 13 286 637
- Stage 2 46 185 184 415 326 9 5 340 755
- Stage 3 276 163 775 1,214 1,003 102 6 1,111 2,325
- Of which: individual 14 1 13 28 511 99 6 616 644
- Of which: collective 262 162 762 1,186 492 3 - 495 1,681
ECL provisions coverage (%) 0.18 5.67 9.91 0.84 1.36 0.20 1.81 0.90 0.87
- Stage 1 (%) 0.03 2.00 1.95 0.17 0.24 0.05 1.25 0.16 0.17
- Stage 2 (%) 0.21 9.23 12.45 1.60 2.28 1.68 1.88 2.25 1.84
- Stage 3 (%) 12.77 72.44 77.27 35.82 45.88 75.00 35.29 47.50 40.59
Loans by residual maturity 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310
- ≤1 year 2,115 2,515 2,969 7,599 32,738 55,837 362 88,937 96,536
- >1 and ≤5 year 8,555 5,760 6,800 21,115 50,610 15,618 516 66,744 87,859
- >5 and ≤15 year 42,899 - 1,674 44,573 23,154 4,510 288 27,952 72,525
- >15 year 161,571 - 4 161,575 8,522 135 158 8,815 170,390
Other financial assets by asset quality (2) - - - - 4,440 25,091 124,670 154,201 154,201
- AQ1-AQ4 - - - - 4,386 24,996 124,670 154,052 154,052
- AQ5-AQ8 - - - - 54 95 - 149 149
Off-balance sheet 15,073 23,265 7,666 46,004 76,836 21,560 491 98,887 144,891
- Loan commitments 15,073 23,265 7,629 45,967 73,984 20,073 491 94,548 140,515
- Financial guarantees - - 37 37 2,852 1,487 - 4,339 4,376
Off-balance sheet by asset quality (2) 15,073 23,265 7,666 46,004 76,836 21,560 491 98,887 144,891
- AQ1-AQ4 14,212 471 6,222 20,905 48,850 19,679 100 68,629 89,534
- AQ5-AQ8 850 22,701 1,401 24,952 27,599 1,837 15 29,451 54,403
- AQ9 - 12 14 26 17 - 376 393 419
- AQ10 11 81 29 121 370 44 - 414 535
For the notes to this table refer to page 21.
Risk and capital management continued
Credit risk continued
Sector analysis - portfolio summary continued
Personal Non-Personal
Credit Other Corporate and Financial
Mortgages (1) cards personal Total other institutions Sovereign Total Total
31 December 2024 £m £m £m £m £m £m £m £m £m
Loans by geography 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225
- UK 209,846 6,930 9,749 226,525 97,409 43,412 562 141,383 367,908
- Other Europe - - - - 6,311 14,747 766 21,824 21,824
- RoW - - - - 8,014 12,162 317 20,493 20,493
Loans by asset quality (2) 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225
- AQ1-AQ4 113,209 128 818 114,155 43,918 65,078 1,365 110,361 224,516
- AQ5-AQ8 92,946 6,516 7,880 107,342 65,231 5,172 127 70,530 177,872
- AQ9 1,156 110 191 1,457 306 12 132 450 1,907
- AQ10 2,535 176 860 3,571 2,279 59 21 2,359 5,930
Loans by stage 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225
- Stage 1 186,250 4,801 7,267 198,318 94,991 69,021 1,491 165,503 363,821
- Stage 2 21,061 1,953 1,622 24,636 14,464 1,241 133 15,838 40,474
- Stage 3 2,535 176 860 3,571 2,279 59 21 2,359 5,930
- Of which: individual 141 - 26 167 1,046 51 21 1,118 1,285
- Of which: collective 2,394 176 834 3,404 1,233 8 - 1,241 4,645
Loans - past due analysis 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225
- Not past due 206,739 6,721 8,865 222,325 107,855 70,055 1,627 179,537 401,862
- Past due 1-30 days 1,404 50 70 1,524 2,530 211 - 2,741 4,265
- Past due 31-90 days 580 51 99 730 398 2 18 418 1,148
- Past due 91-180 days 408 41 96 545 139 49 - 188 733
- Past due >180 days 715 67 619 1,401 812 4 - 816 2,217
Loans - Stage 2 21,061 1,953 1,622 24,636 14,464 1,241 133 15,838 40,474
- Not past due 19,939 1,889 1,521 23,349 13,485 1,228 133 14,846 38,195
- Past due 1-30 days 853 31 37 921 640 11 - 651 1,572
- Past due 31-90 days 269 33 64 366 339 2 - 341 707
Weighted average life
- ECL measurement (years) 8 4 6 6 6 2 nm 6 6
Weighted average 12 months PDs
- IFRS 9 (%) 0.51 3.23 4.59 0.76 1.24 0.16 5.51 0.86 0.80
- Basel (%) 0.68 3.65 3.18 0.87 1.11 0.15 4.16 0.76 0.82
ECL provisions by geography 462 381 969 1,812 1,504 90 19 1,613 3,425
- UK 462 381 969 1,812 1,335 37 12 1,384 3,196
- Other Europe - - - - 109 9 - 118 118
- RoW - - - - 60 44 7 111 111
For the notes to this table refer to the following page.
Risk and capital management continued
Credit risk continued
Sector analysis - portfolio summary continued
Personal Non-Personal
Credit Other Corporate and Financial
Mortgages (1) cards personal Total other institutions Sovereign Total Total
31 December 2024 £m £m £m £m £m £m £m £m £m
ECL provisions by stage 462 381 969 1,812 1,504 90 19 1,613 3,425
- Stage 1 77 77 130 284 264 38 12 314 598
- Stage 2 60 186 183 429 344 12 2 358 787
- Stage 3 325 118 656 1,099 896 40 5 941 2,040
- Of which: individual 11 - 17 28 382 36 5 423 451
- Of which: collective 314 118 639 1,071 514 4 - 518 1,589
ECL provisions coverage (%) 0.22 5.50 9.94 0.80 1.35 0.13 1.16 0.88 0.83
- Stage 1 (%) 0.04 1.60 1.79 0.14 0.28 0.06 0.80 0.19 0.16
- Stage 2 (%) 0.28 9.52 11.28 1.74 2.38 0.97 1.50 2.26 1.94
- Stage 3 (%) 12.82 67.05 76.28 30.78 39.32 67.80 23.81 39.89 34.40
Loans by residual maturity 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225
- ≤1 year 3,367 3,903 3,186 10,456 34,929 54,971 822 90,722 101,178
- >1 and ≤5 year 11,651 3,027 5,551 20,229 48,075 10,967 488 59,530 79,759
- >5 and ≤15 year 45,454 - 1,006 46,460 20,623 4,270 298 25,191 71,651
- >15 year 149,374 - 6 149,380 8,107 113 37 8,257 157,637
Other financial assets by asset quality (2) - - - - 3,644 31,102 119,502 154,248 154,248
- AQ1-AQ4 - - - - 3,639 30,743 119,502 153,884 153,884
- AQ5-AQ8 - - - - 5 359 - 364 364
Off-balance sheet 13,806 20,135 7,947 41,888 75,964 21,925 239 98,128 140,016
- Loan commitments 13,806 20,135 7,906 41,847 72,940 20,341 239 93,520 135,367
- Financial guarantees - - 41 41 3,024 1,584 - 4,608 4,649
Off-balance sheet by asset quality (2) 13,806 20,135 7,947 41,888 75,964 21,925 239 98,128 140,016
- AQ1-AQ4 12,951 510 6,568 20,029 47,896 20,063 155 68,114 88,143
- AQ5-AQ8 839 19,276 1,336 21,451 27,657 1,813 21 29,491 50,942
- AQ9 1 12 17 30 19 - 63.0 82 112
- AQ10 15 337 26 378 392 49 - 441 819
(1) Includes a portion of Private Banking & Wealth Management
lending secured against residential real estate, in line with ECL calculation
methodology. Private Banking & Wealth Management and RBS International
mortgages are reported in UK, reflecting the country of lending origination
and includes crown dependencies.
(2) AQ bandings are based on Basel PDs and mapping is as follows:
Internal asset quality band Probability of default range Indicative S&P rating Internal asset quality band Probability of default range Indicative S&P rating
AQ1 0% - 0.034% AAA to AA AQ6 1.076% - 2.153% BB- to B+
AQ2 0.034% - 0.048% AA to AA- AQ7 2.153% - 6.089% B+ to B
AQ3 0.048% - 0.095% A+ to A AQ8 6.089% - 17.222% B- to CCC+
AQ4 0.095% - 0.381% BBB+ to BBB- AQ9 17.222% - 100% CCC to C
AQ5 0.381% - 1.076% BB+ to BB AQ10 100% D
Risk and capital management continued
Credit risk continued
Sector analysis - portfolio summary continued
The table below shows ECL by stage, for the Personal portfolio and
Non-Personal portfolio, including the three largest borrowing sector clusters
included in Corporate and other.
Loans - amortised cost and FVOCI Off-balance sheet ECL provisions
Loan Contingent
Stage 1 Stage 2 Stage 3 Total commitments liabilities Stage 1 Stage 2 Stage 3 Total
30 September 2025 £m £m £m £m £m £m £m £m £m £m
Personal 205,583 25,890 3,389 234,862 45,967 37 351 415 1,214 1,980
Mortgages (1) 190,571 22,408 2,161 215,140 15,073 - 55 46 276 377
Credit cards 6,046 2,004 225 8,275 23,265 - 121 185 163 469
Other personal 8,966 1,478 1,003 11,447 7,629 37 175 184 775 1,134
Non-Personal 175,013 15,096 2,339 192,448 94,548 4,339 286 340 1,111 1,737
Financial institutions (2) 75,427 537 136 76,100 20,073 1,487 38 9 102 149
Sovereign 1,041 266 17 1,324 491 - 13 5 6 24
Corporate and other 98,545 14,293 2,186 115,024 73,984 2,852 235 326 1,003 1,564
Of which:
Commercial real estate 17,277 1,372 344 18,993 6,590 160 61 26 135 222
Mobility and logistics 14,997 1,989 105 17,091 9,808 498 26 34 43 103
Consumer industries 12,755 2,686 414 15,855 11,330 534 34 72 208 314
Total 380,596 40,986 5,728 427,310 140,515 4,376 637 755 2,325 3,717
31 December 2024
Personal 198,318 24,636 3,571 226,525 41,847 41 284 429 1,099 1,812
Mortgages (1) 186,250 21,061 2,535 209,846 13,806 - 77 60 325 462
Credit cards 4,801 1,953 176 6,930 20,135 - 77 186 118 381
Other personal 7,267 1,622 860 9,749 7,906 41 130 183 656 969
Non-Personal 165,503 15,838 2,359 183,700 93,520 4,608 314 358 941 1,613
Financial institutions (2) 69,021 1,241 59 70,321 20,341 1,584 38 12 40 90
Sovereign 1,491 133 21 1,645 239 - 12 2 5 19
Corporate and other 94,991 14,464 2,279 111,734 72,940 3,024 264 344 896 1,504
Of which:
Commercial real estate 16,191 1,517 433 18,141 6,661 143 70 30 146 246
Mobility and logistics 13,363 2,384 148 15,895 9,367 595 26 35 67 128
Consumer industries 13,312 3,015 444 16,771 10,706 595 45 90 188 323
Total 363,821 40,474 5,930 410,225 135,367 4,649 598 787 2,040 3,425
(1) As at 30 September 2025, £141.8 billion, 65.9%, of the total
residential mortgages portfolio had Energy Performance Certificate (EPC) data
available (31 December 2024 - £139.1 billion, 66.3%). Of which, 48.3% were
rated as EPC A to C (31 December 2024 - 46.3%).
(2) Includes transactions, such as securitisations, where the
underlying risk may be in other sectors.
Risk and capital management continued
Capital, liquidity and funding risk
Introduction
NatWest Group takes a comprehensive approach to the management of capital,
liquidity and funding, underpinned by frameworks, risk appetite and policies,
to manage and mitigate capital, liquidity and funding risks. The framework
ensures the tools and capability are in place to facilitate the management and
mitigation of risk ensuring that NatWest Group operates within its regulatory
requirements and risk appetite.
Key developments since 31 December 2024
CET1 ratio The CET1 ratio increased by 60 basis points to 14.2% due to a £1.8 billion
increase in CET1 capital offset by a £5.9 billion increase in RWAs.
14.2%
The CET1 capital increase was mainly driven by an attributable profit to
(2024 - 13.6%) ordinary shareholders of £3.3 billion (net of ordinary interim dividend paid)
and other movements on reserves and regulatory adjustments of £0.5 billion
partially offset by a share buyback of £0.8 billion and a foreseeable
ordinary dividend accrual of £1.3 billion.
RWAs Total RWAs increased by £5.9 billion to £189.1 billion reflecting:
£189.1bn - an increase in credit risk RWAs of £3.8 billion, primarily driven
by lending growth, balances acquired from Sainsbury's Bank and CRD IV model
(2024 - £183.2bn) updates. These increases were partially offset by, reductions as a result of
RWA management actions, movements in risk metrics and the impact of foreign
exchange movements.
- an increase in operational risk RWAs of £2.2 billion following
the annual recalculation.
- an increase in counterparty credit risk RWAs of £0.3 billion
driven by an increase in securities financing transactions and
over-the-counter transactions under the IMM approach.
- a decrease in market risk RWAs of £0.4 billion, driven by the
IRC, reflecting changes in government bond positions and RNIV.
UK leverage ratio The leverage ratio remained stable at 5.0% due to a £2.4 billion increase in
Tier 1 capital offset by a £41.4 billion increase in leverage exposure. The
5.0% key drivers in the leverage exposure were an increase in other financial
assets, trading assets, net settlement balances and other off balance sheet
(2024 - 5.0%) items.
MREL ratio The Minimum Requirements of own funds and Eligible Liabilities (MREL) ratio
increased by 30 basis points driven by a £2.5 billion increase in MREL
33.3% partially offset by a £5.9 billion increase in RWAs.
(2024 - 33.0%) MREL increased to £62.9 billion driven by a £1.8 billion increase in CET1
capital, a £0.5 billion increase in Additional Tier 1 capital, a £0.2
billion decrease in Tier 2 capital, and a £0.3 billion increase in senior
unsecured debt. Additional Tier 1 and Tier 2 capital movements were driven by
issuance and redemptions in the period. The senior unsecured debt movement was
driven by issuance and redemptions totalling £2.1 billion partially offset by
a $1.5 billion debt instrument no longer being MREL eligible and foreign
exchange movements of £0.7 billion.
Liquidity portfolio The liquidity portfolio increased by £16.8 billion to £239.1 billion
compared with Q4 2024. Primary liquidity decreased by £2.0 billion to £159.0
£239.1bn billion, driven by higher lending (including balances acquired from
Sainsbury's Bank), partially offset by increased issuance. Secondary liquidity
(2024 - £222.3bn) increased by £18.8 billion due to increase in pre-positioned collateral at
the Bank of England.
LCR average The average Liquidity Coverage Ratio (LCR) decreased by 3 percentage points to
148%, during 2025, driven by increased lending.
148%
(2024 - 151%)
NSFR average The average Net Stable Funding Ratio (NSFR) decreased by 2 basis points to
135% during 2025 driven by increased lending.
135%
(2024 - 137%)
Risk and capital management continued
Capital, liquidity and funding risk continued
Maximum Distributable Amount (MDA) and Minimum Capital Requirements
NatWest Group is subject to minimum capital requirements relative to RWAs. The
table below summarises the minimum capital requirements (the sum of Pillar 1
and Pillar 2A), and the additional capital buffers which are held in excess of
the regulatory minimum requirements and are usable in stress.
Where the CET1 ratio falls below the sum of the minimum capital and the
combined buffer requirement, there is a subsequent automatic restriction on
the amount available to service discretionary payments (including AT1
coupons), known as the MDA. Note that different capital requirements apply to
individual legal entities or sub-groups and that the table shown does not
reflect any incremental PRA buffer requirements, which are not disclosable.
The current capital position provides significant headroom above both NatWest
Group's minimum requirements and its MDA threshold requirements.
Type CET1 Total Tier 1 Total capital
Pillar 1 requirements 4.5% 6.0% 8.0%
Pillar 2A requirements 1.6% 2.1% 2.9%
Minimum Capital Requirements 6.1% 8.1% 10.9%
Capital conservation buffer 2.5% 2.5% 2.5%
Countercyclical capital buffer (1) 1.7% 1.7% 1.7%
MDA threshold (2) 10.3% n/a n/a
Overall capital requirement 10.3% 12.3% 15.1%
Capital ratios at 30 September 2025 14.2% 17.2% 20.2%
Headroom (3,4) 3.9% 4.9% 5.1%
(1) The UK countercyclical buffer (CCyB) rate is currently being
maintained at 2%. This may vary in either direction in the future subject to
how risks develop. Foreign exposures may be subject to different CCyB rates
depending on the rate set in those jurisdictions.
(2) Pillar 2A requirements for NatWest Group are set as a variable
amount with the exception of some fixed add-ons.
(3) The headroom does not reflect excess distributable capital and may
vary over time.
(4) Headroom as at 31 December 2024 was CET1 3.1%, Total Tier 1 3.9%
and Total Capital 4.3%.
Leverage ratios
The table below summarises the minimum ratios of capital to leverage exposure
under the binding PRA UK leverage framework applicable for NatWest Group.
Type CET1 Total Tier 1
Minimum ratio 2.44% 3.25%
Countercyclical leverage ratio buffer (1) 0.6% 0.6%
Total 3.04% 3.85%
(1) The countercyclical leverage ratio buffer is set at 35% of
NatWest Group's CCyB.
Liquidity and funding ratios
The table below summarises the minimum requirements for key liquidity and
funding metrics under the PRA framework.
Type
Liquidity Coverage Ratio (LCR) 100%
Net Stable Funding Ratio (NSFR) 100%
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital and leverage ratios
The tables below show key prudential metrics calculated in accordance with
current PRA rules.
30 September 30 June 31 December
2025 2025 2024
Capital adequacy ratios (1) % % %
CET1 14.2 13.6 13.6
Tier 1 17.2 16.7 16.5
Total 20.2 19.7 19.7
Capital £m £m £m
Tangible equity 29,093 28,416 26,482
Expected loss less impairment (35) - (27)
Prudential valuation adjustment (172) (210) (230)
Deferred tax assets (834) (935) (1,084)
Own credit adjustments 34 24 28
Pension fund assets (163) (157) (147)
Cash flow hedging reserve 886 971 1,443
Foreseeable ordinary dividends (1,275) (1,244) (1,249)
Adjustment for trust assets (2) (365) (365) (365)
Foreseeable charges (3) (446) (750) -
Adjustments under IFRS 9 transitional arrangements - - 33
Other adjustments for regulatory purposes 46 49 44
Total regulatory adjustments (2,324) (2,617) (1,554)
CET1 capital 26,769 25,799 24,928
Additional AT1 capital 5,771 6,005 5,259
Tier 1 capital 32,540 31,804 30,187
Tier 2 capital 5,752 5,727 5,918
Total regulatory capital 38,292 37,531 36,105
Risk-weighted assets
Credit risk 151,945 152,785 148,078
Counterparty credit risk 7,397 7,626 7,103
Market risk 5,825 5,777 6,219
Operational risk 23,959 23,959 21,821
Total RWAs 189,126 190,147 183,221
(1) The IFRS 9 transitional capital rules in respect of ECL provisions
no longer apply as of 1 January 2025. (The impact of the IFRS 9 transitional
adjustments at 31 December 2024 was £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 to
establish legal structure to remove dividend linked contribution.
(3) For September 2025, the foreseeable charge of £446 million
relates to a share buyback.
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital and leverage ratios continued
30 September 30 June 31 December
2025 2025 2024
Leverage £m £m £m
Cash and balances at central banks 84,686 90,706 92,994
Trading assets 56,856 56,706 48,917
Derivatives 61,119 73,010 78,406
Financial assets 494,874 486,305 469,599
Other assets 28,100 24,051 18,069
Total assets 725,635 730,778 707,985
Derivatives
- netting and variation margin (58,580) (69,191) (76,101)
- potential future exposures 17,690 16,831 16,692
Securities financing transactions gross up 1,841 1,510 2,460
Other off balance sheet items 63,394 62,497 59,498
Regulatory deductions and other adjustments (18,124) (17,869) (11,014)
Claims on central banks (81,179) (87,228) (89,299)
Exclusion of bounce back loans (1,457) (1,777) (2,422)
UK leverage exposure 649,220 635,551 607,799
UK leverage ratio (%) (1) 5.0 5.0 5.0
(1) The UK leverage exposure and transitional Tier 1 capital are
calculated in accordance with current PRA rules. The IFRS 9 transitional
capital rules in respect of ECL no longer apply as of 1 January 2025.
(Excluding the IFRS 9 transitional adjustment, the UK leverage ratio at 31
December 2024 was 5.0%).
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital flow statement
The table below analyses the movement in CET1, AT1 and Tier 2 capital for the
nine months ended 30 September 2025.
CET1 AT1 Tier 2 Total
£m £m £m £m
At 31 December 2024 24,928 5,259 5,918 36,105
Attributable profit for the period 4,086 - - 4,086
Ordinary interim dividend paid (768) - - (768)
Share buyback (750) - - (750)
Foreseeable ordinary dividends (1,275) - - (1,275)
Foreign exchange reserve 2 - - 2
FVOCI reserve 81 - - 81
Own credit 6 - - 6
Share based remuneration and shares vested under employee share schemes 190 - - 190
Goodwill and intangibles deduction 113 - - 113
Deferred tax assets 250 - - 250
Prudential valuation adjustments 58 - - 58
New issues of capital instruments - 1,244 823 2,067
Redemption of capital instruments (109) (732) (1,000) (1,841)
Foreign exchange movements - - 11 11
Adjustment under IFRS 9 transitional arrangements (33) - - (33)
Expected loss less impairment (8) - - (8)
Other movements (2) - - (2)
At 30 September 2025 26,769 5,771 5,752 38,292
- For CET1 movements refer to the key points on page 23.
- The AT1 movement reflects the £0.7 billion 7.500% Reset Perpetual
Subordinated Contingent Convertible Additional Tier 1 Capital Notes issued in
March 2025 and the £0.5 billion 7.625% Reset Perpetual Subordinated
Contingent Convertible Additional Tier 1 Capital Notes issued in September
2025 offset by the redemption of $1.15 billion 8.000% Perpetual Subordinated
Contingent Convertible Additional Tier 1 Capital Notes in August 2025.
- Tier 2 movements of £0.2 billion include a decrease of £1.0 billion
due to the redemption of 3.622% Fixed to Fixed Rate Reset Tier 2 Notes due
2030 in May 2025 partially offset by an increase of £0.8 billion for a €1.0
billion 3.723% Fixed to Fixed Rate Reset Tier 2 Notes 2035 issued in February
2025 and foreign exchange movements.
Capital generation pre-distributions
30 September 30 June 31 December
2025 2025 2024
£m £m £m
CET1 26,769 25,799 24,928
CET1 capital pre-distributions (1) 29,562 27,793 28,920
RWAs 189,126 190,147 183,221
% % %
CET1 ratio - opening at 1 January 13.61 13.61 13.36
CET1 pre-distributions - closing 15.63 14.62 15.78
Capital generation pre-distributions (1) 2.02 1.01 2.43
(1) The calculation of capital generation pre-distributions uses CET1
capital pre-distributions. Distributions includes ordinary dividends paid,
foreseeable ordinary dividends and share buybacks.
Risk and capital management continued
Capital, liquidity and funding risk continued
Risk-weighted assets
The table below analyses the movement in RWAs for the nine months ended 30
September 2025, by key drivers.
Counterparty Operational
Credit risk credit risk Market risk risk Total
£bn £bn £bn £bn £bn
At 31 December 2024 148.1 7.1 6.2 21.8 183.2
Foreign exchange movement (0.3) - - - (0.3)
Business movement 1.0 0.2 (0.4) 2.2 3.0
Risk parameter changes (0.9) - - - (0.9)
Model updates 2.4 0.1 - - 2.5
Acquisitions 1.6 - - - 1.6
At 30 September 2025 151.9 7.4 5.8 24.0 189.1
The table below analyses segmental RWAs.
Private Banking Total
Retail & Wealth Commercial Central items NatWest
Banking Management & Institutional & other Group
Total RWAs £bn £bn £bn £bn £bn
At 31 December 2024 65.5 11.0 104.7 2.0 183.2
Foreign exchange movement - - (0.3) - (0.3)
Business movement 0.8 0.4 2.2 (0.4) 3.0
Risk parameter changes 0.2 - (1.1) - (0.9)
Model updates 1.0 - 1.5 - 2.5
Acquisitions 1.6 - - - 1.6
At 30 September 2025 69.1 11.4 107.0 1.6 189.1
Credit risk 60.0 9.8 80.7 1.4 151.9
Counterparty credit risk 0.2 - 7.2 - 7.4
Market risk 0.2 - 5.6 - 5.8
Operational risk 8.7 1.6 13.5 0.2 24.0
Total RWAs 69.1 11.4 107.0 1.6 189.1
Total RWAs increased by £5.9 billion to £189.1 billion during the period
mainly reflecting:
- A reduction in risk-weighted assets from foreign exchange
movements of £0.3 billion due to sterling appreciation versus the US dollar
and euro.
- An increase in business movements of £3.0 billion, driven by the
annual recalculation of operational risk, an increase in credit risk due to
lending growth partially offset by reductions as a result of RWA management
actions. Further increase seen in counterparty credit risk driven by
securities financing and OTC transactions partially offset by a decrease in
market risk driven by IRC and RNIV.
- A reduction in risk parameters of £0.9 billion primarily driven
by movements in risk metrics within Commercial & Institutional and Retail
Banking.
- An increase in model updates of £2.5 billion primarily driven by
CRD IV model updates within Commercial & Institutional and Retail Banking.
- An increase in acquisitions of £1.6 billion driven by balances
acquired from Sainsbury's Bank.
Risk and capital management continued
Capital, liquidity and funding risk continued
Liquidity portfolio
The table below shows the composition of the liquidity portfolio with primary
liquidity aligned to high-quality liquid assets on a regulatory LCR basis.
Secondary liquidity comprises of assets which are eligible as collateral for
local central bank liquidity facilities and do not form part of the LCR
eligible high-quality liquid assets. High-quality liquid assets cover both
Pillar 1 and Pillar 2 risks.
Liquidity value
30 September 2025 30 June 2025 31 December 2024
NatWest NWH UK DoL NatWest NWH UK DoL NatWest NWH UK DoL
Group (1) Group (2) Sub Group (1) Group (2) Sub Group (1) Group (2) Sub
£m £m £m £m £m £m £m £m £m
Cash and balances at central banks 80,489 51,277 50,666 86,589 55,027 54,353 88,617 58,313 57,523
High quality government/MDB/PSE and GSE bonds (3) 65,588 47,194 47,194 61,527 44,580 44,580 58,818 43,275 43,275
Extremely high quality covered bonds 4,613 4,613 4,613 4,494 4,494 4,494 4,341 4,340 4,340
LCR level 1 assets 150,690 103,084 102,473 152,610 104,101 103,427 151,776 105,928 105,138
LCR level 2 Eligible Assets (4) 8,332 7,397 7,397 7,985 6,880 6,880 9,271 7,957 7,957
Primary liquidity (HQLA) (5) 159,022 110,481 109,870 160,595 110,981 110,307 161,047 113,885 113,095
Secondary liquidity 80,051 80,023 80,023 55,997 55,969 55,969 61,230 61,200 61,200
Total liquidity value 239,073 190,504 189,893 216,592 166,950 166,276 222,277 175,085 174,295
(1) NatWest Group includes the UK Domestic Liquidity Sub-Group (UK
DoLSub), NatWest Markets Plc and other significant operating subsidiaries that
hold liquidity portfolios. These include RBSI Ltd and NWM N.V. who hold
managed portfolios that comply with local regulations that may differ from PRA
rules.
(2) NWH Group comprises UK DoLSub and NatWest Bank Europe GmbH who
hold managed portfolios that comply with local regulations that may differ
from PRA rules.
(3) Multilateral development bank abbreviated to MDB, public sector
entities abbreviated to PSE and government sponsored entities abbreviated to
GSE.
(4) Includes Level 2A and Level 2B.
(5) High-quality liquid assets abbreviated to HQLA.
Pension risk
On 8 August 2025, the Trustee of the Main section of the NatWest Group Pension
Fund entered into a buy-in transaction with a third-party insurer for some of
its liabilities. This is an insurance policy that gives the Fund protection
against demographic and investment risks, so improves the security of member
benefits. The transaction did not affect the 2025 statement of comprehensive
income because the net pension asset was limited to zero due to the impact of
the asset ceiling.
Condensed consolidated income statement
for the period ended 30 September 2025 (unaudited)
Nine months ended Quarter ended
30 September 30 September 30 September 30 June 30 September
2025 2024 2025 2025 2024
£m £m £m £m £m
Interest receivable 19,155 18,734 6,482 6,358 6,444
Interest payable (9,767) (10,427) (3,214) (3,264) (3,545)
Net interest income 9,388 8,307 3,268 3,094 2,899
Fees and commissions receivable 2,412 2,378 804 806 811
Fees and commissions payable (552) (529) (184) (179) (181)
Trading income 974 607 399 291 257
Other operating income 95 115 45 (7) (42)
Non-interest income 2,929 2,571 1,064 911 845
Total income 12,317 10,878 4,332 4,005 3,744
Staff costs (3,193) (3,112) (1,064) (1,060) (965)
Premises and equipment (906) (863) (319) (293) (284)
Other administrative expenses (1,060) (1,153) (315) (395) (330)
Depreciation and amortisation (855) (754) (298) (291) (246)
Operating expenses (6,014) (5,882) (1,996) (2,039) (1,825)
Profit before impairment losses 6,303 4,996 2,336 1,966 1,919
Impairment losses (535) (293) (153) (193) (245)
Operating profit before tax 5,768 4,703 2,183 1,773 1,674
Tax charge (1,412) (1,232) (502) (439) (431)
Profit from continuing operations 4,356 3,471 1,681 1,334 1,243
Profit from discontinued operations, net of tax - 12 - - 1
Profit for the period 4,356 3,483 1,681 1,334 1,244
Attributable to:
Ordinary shareholders 4,086 3,271 1,598 1,236 1,172
Paid-in equity holders 268 202 82 96 73
Non-controlling interests 2 10 1 2 (1)
4,356 3,483 1,681 1,334 1,244
Earnings per ordinary share - continuing operations 50.7p 38.2p 19.8p 15.3p 14.1p
Earnings per ordinary share - discontinued operations - 0.1p - - -
Total earnings per share attributable to ordinary shareholders - basic 50.7p 38.3p 19.8p 15.3p 14.1p
Earnings per ordinary share - fully diluted continuing operations 50.2p 37.9p 19.6p 15.1p 14.0p
Earnings per ordinary share - fully diluted discontinued operations - 0.1p - - -
Total earnings per share attributable to ordinary shareholders - fully diluted 50.2p 38.0p 19.6p 15.1p 14.0p
Condensed consolidated statement of comprehensive income
for the period ended 30 September 2025 (unaudited)
Nine months ended Quarter ended
30 September 30 September 30 September 30 June 30 September
2025 2024 2025 2025 2024
£m £m £m £m £m
Profit for the period 4,356 3,483 1,681 1,334 1,244
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of retirement benefit schemes 20 (92) 11 3 (32)
Changes in fair value of financial liabilities designated at fair value
through profit or loss (FVTPL)
due to changes in credit risk (11) (25) (10) (5) 1
FVOCI financial assets 54 16 5 35 49
Tax (10) 39 (8) (4) (5)
53 (62) (2) 29 13
Items that will be reclassified subsequently to profit or loss when specific
conditions are met:
FVOCI financial assets 76 21 13 29 (20)
Cash flow hedges (1) 778 732 120 475 611
Currency translation (18) (119) 77 (65) (77)
Tax (224) (221) (32) (130) (164)
612 413 178 309 350
Other comprehensive income after tax 665 351 176 338 363
Total comprehensive income for the period 5,021 3,834 1,857 1,672 1,607
Attributable to:
Ordinary shareholders 4,751 3,622 1,774 1,574 1,535
Paid-in equity holders 268 202 82 96 73
Non-controlling interests 2 10 1 2 (1)
5,021 3,834 1,857 1,672 1,607
(1) Refer to footnote 4 of the condensed consolidated statement of changes in
equity.
Condensed consolidated balance sheet
as at 30 September 2025 (unaudited)
30 September 31 December
2025 2024
£m £m
Assets
Cash and balances at central banks 84,686 92,994
Trading assets 56,856 48,917
Derivatives 61,119 78,406
Settlement balances 12,331 2,085
Loans to banks - amortised cost 8,005 6,030
Loans to customers - amortised cost 415,274 400,326
Other financial assets 71,595 63,243
Intangible assets 7,477 7,588
Other assets 8,292 8,396
Total assets 725,635 707,985
Liabilities
Bank deposits 44,962 31,452
Customer deposits 435,490 433,490
Settlement balances 9,271 1,729
Trading liabilities 58,402 54,714
Derivatives 54,114 72,082
Other financial liabilities 67,634 61,087
Subordinated liabilities 6,136 6,136
Notes in circulation 3,340 3,316
Other liabilities 3,905 4,601
Total liabilities 683,254 668,607
Equity
Ordinary shareholders' interests 36,570 34,070
Other owners' interests 5,792 5,280
Owners' equity 42,362 39,350
Non-controlling interests 19 28
Total equity 42,381 39,378
Total liabilities and equity 725,635 707,985
Condensed consolidated statement of changes in equity
for the period ended 30 September 2025 (unaudited)
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 (6) 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
- continuing operations 4,354 4,354 2 4,356
- discontinued operations - -
Other comprehensive income
Realised gains in period on FVOCI equity shares 25 (25) - -
Remeasurement of retirement benefit schemes 20 20 20
Changes in fair value of credit in financial liabilities
designated at FVTPL due to own credit risk (11) (11) (11)
Unrealised gains 129 129 129
Amounts recognised in equity 17 17 17
Retranslation of net assets 43 43 43
Losses on hedges of net assets (90) (90) (90)
Amount transferred from equity to earnings (6) 1 761 29 791 791
Tax (9) (24) (221) 20 (234) (234)
Total comprehensive income - - - 4,379 81 557 2 - 5,019 2 5,021
Transactions with owners
Ordinary share dividends paid (2,018) (2,018) - (2,018)
Redemption of paid-in equity (736) (109) (845) (845)
Paid-in equity dividends (268) (268) (268)
Securities issued (2) 1,248 1,248 1,248
Purchase of non-controlling interest (10) (10) (11) (21)
Shares repurchased during the period (1,7) (62) 62 (304) (304) (304)
Employee share schemes 76 76 76
Shares vested under employee share schemes 124 124 124
Share-based remuneration (10) (10) (10)
At 30 September 2025 10,071 5,792 2,536 13,162 (22) (886) 828 10,881 42,362 19 42,381
For the notes to this table, refer to the following page.
Condensed consolidated statement of changes in equity for the period ended 30
September 2025 (unaudited) 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 attributable to ordinary shareholders
and other equity owners
- continuing operations 3,461 3,461 10 3,471
- discontinued operations 12 12 - 12
Other comprehensive income
Realised gains in period on FVOCI equity shares 54 (54) - -
Remeasurement of retirement benefit schemes (92) (92) (92)
Changes in fair value of credit in financial liabilities
designated at FVTPL due to own credit risk (25) (25) (25)
Unrealised gains 24 24 24
Amounts recognised in equity (442) (442) (442)
Retranslation of net assets (283) (283) (283)
Gains on hedges of net assets 122 122 122
Amount transferred from equity to earnings 13 1,174 42 1,229 1,229
Tax 25 9 (198) (18) (182) (182)
Total comprehensive income/(loss) - - - 3,435 (8) 534 (137) - 3,824 10 3,834
Transactions with owners
Ordinary share dividends paid (1,505) (1,505) - (1,505)
Paid-in equity dividends (202) (202) (202)
Securities issued (2) 800 800 800
Shares repurchased during the period (1,7) (428) 428 (1,171) (1,171) (1,171)
Shares vested under employee share schemes 142 (7) 135 135
Own shares acquired (540) (540) (540)
At 30 September 2024 10,416 4,690 2,034 11,195 (57) (1,365) 704 10,881 38,498 41 38,539
(1) As part of the On Market Share Buyback Programmes NatWest Group plc
repurchased and cancelled 58.9 million shares (September 2024 - 173.3 million
shares), of which one million shares were settled in October 2025. The total
consideration of these shares excluding fees was £308.3 million (September
2024 - £450.9 million), of which £5.1 million were settled in October 2025.
Included in the retained earnings reserve movement is 2.3 million shares which
were repurchased and cancelled in December 2023, settled in January 2024 for a
total consideration of £4.9 million. 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
(September 2024 - £2.4 million), and the associated tax credit of £0.7
million (September 2024 - £0.7 million).
(3) Other statutory reserves consist of Capital redemption reserves of £3,280
million (September 2024 - £2,935 million) and Own shares held reserves of
(£744) million (September 2024 - (£901) million).
(4) The change in the cash flow hedging reserve is driven by realised accrued
interest transferred into the income statement and an increase in swap rates
in the medium term tenors in the year, where the portfolio of swaps are net
receive fixed from an interest rate risk perspective.
(5) 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) Includes £29 million FX recycled to profit or loss upon redemption of paid-in
equity and capital repatriation.
(7) 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.
Notes
1. Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction
with NatWest Group plc's 2024 Annual Report and Accounts. The accounting
policies are the same as those applied in the consolidated financial
statements.
The directors have prepared the condensed consolidated financial statements on
a going concern basis after assessing the principal risks, forecasts,
projections and other relevant evidence over the twelve months from the date
they are approved.
2. Litigation and regulatory matters
NatWest Group plc's Interim Results 2025, issued on 25 July 2025, included
disclosures about NatWest Group's litigation and regulatory matters in Note
14. Set out below are the material developments in those matters (which have
been previously disclosed) since publication of the Interim Results 2025.
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 several 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
remains subject to appeal 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. However, 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 will therefore return 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
NWM Plc, NWMSI and/or NatWest Group plc are defendants in several cases
relating to NWM Plc's foreign exchange (FX) business.
In May 2025, NWM Plc executed an agreement to settle the claim in the Federal
Court of Australia, which the court approved in August 2025. The settlement
amount is covered in full by an existing provision.
Odd lot corporate bond trading antitrust litigation
In July 2024, the US Court of Appeals vacated the SDNY's October 2021
dismissal of 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 appellate court held that the district judge who made the decision should
not have been presiding over the case because a member of the judge's family
had owned stock in one of the defendants while the motion was pending.
On 2 September 2025, a different judge in the SDNY again dismissed the
complaint in this action on the ground that the plaintiffs have failed to
plead antitrust conspiracy. The plaintiffs did not appeal the decision within
the time required for an appeal.
Offshoring VAT assessments
HMRC, as part of an industry-wide review, issued protective tax assessments in
2018 against NatWest Group plc totalling £143 million relating to unpaid VAT
in respect of the UK branches of two NatWest Group companies registered in
India for the period from 1 January 2014 until 31 December 2017 inclusive.
NatWest Group formally requested reconsideration by HMRC of their assessments,
and this process was completed in November 2020. HMRC upheld their original
decision and, as a result, NatWest Group plc lodged an appeal with the Tax
Tribunal and an application for judicial review with the High Court of Justice
of England and Wales, both in December 2020.
In order to lodge the appeal with the Tax Tribunal, NatWest Group plc was
required to pay amounts totalling £153 million (including statutory interest)
to HMRC in December 2020 and May 2022. The appeal and the application for
judicial review were previously stayed behind a separate case involving
another bank.
NatWest Group plc was informed in late 2024 that the other bank had settled
its case with HMRC by agreement. NatWest Group plc is progressing its appeal
before the Tax Tribunal in its own name. NatWest Group plc will also continue
to review next steps relevant to the judicial review.
The amount of £153 million continues to be recognised as an asset that
NatWest Group plc expects to recover. Since 1 January 2018, NatWest Group plc
has paid VAT on intra-group supplies from India-registered NatWest Group
companies.
Notes continued
2. Litigation and regulatory matters continued
US Anti-Terrorism Act litigation
NWM N.V. and certain other financial institutions are defendants in several
actions filed by a number of US nationals (or their estates, survivors, or
heirs), most of whom are, or were, US military personnel who were killed or
injured in attacks in Iraq between 2003 and 2011.
NWM Plc is also a defendant in some of these cases.
According to the plaintiffs' allegations, the defendants are liable for
damages arising from the attacks because they allegedly conspired with and/or
aided and abetted Iran and certain Iranian banks to assist Iran in
transferring money to Hezbollah and the Iraqi terror cells that committed the
attacks, in violation of the US Anti-Terrorism Act, by agreeing to engage in
'stripping' of transactions initiated by the Iranian banks so that the Iranian
nexus to the transactions would not be detected.
The first of these actions, alleging conspiracy claims but not aiding and
abetting claims, was filed in the United States District Court for the Eastern
District of New York in November 2014. In September 2019, the district court
dismissed the case, finding that the claims were deficient for several
reasons, including lack of sufficient allegations as to the alleged conspiracy
and causation. In January 2023, the US Court of Appeals affirmed the district
court's dismissal of this case.
On 30 September 2025, the district court denied a motion by the plaintiffs to
re-open the case to assert aiding and abetting claims that they previously did
not assert. Another action, filed in the SDNY in 2017, which asserted both
conspiracy and aiding and abetting claims, was dismissed by the SDNY in March
2019 on similar grounds as the first case, but remains subject to appeal to
the US Court of Appeals.
Other follow-on actions that are substantially similar to those described
above are pending in the same courts.
Regulatory matters
US investigations relating to fixed-income securities
In December 2021, NWM Plc pled guilty in the United States District Court for
the District of Connecticut to one count of wire fraud and one count of
securities fraud in connection with historical spoofing conduct by former
employees in US Treasuries markets between January 2008 and May 2014 and,
separately, during approximately three months in 2018. The 2018 trading
occurred during the term of a non-prosecution agreement (NPA) between NWMSI
and the United States Attorney's Office for the District of Connecticut (USAO
CT), under which non-prosecution conditioned on NWMSI and affiliated companies
not engaging in criminal conduct during the term of the NPA. The relevant
trading in 2018 was conducted by two NWM traders in Singapore and breached
that NPA. The plea agreement reached with the US Department of Justice (DOJ)
and the USAO CT resolved both the spoofing conduct and the breach of the NPA.
The DOJ and USAO CT paused the monitorship in May 2025 and, following a
review, determined that a monitorship was no longer necessary as a result of
NWM's notable progress in strengthening its compliance programme, certain of
NWM's remedial improvements, internal controls, and the status of
implementation of Monitor recommendations, and that reporting by NWM to the
DOJ and USAO CT on its continued compliance programme progress provided an
appropriate degree of oversight. The court approved the amended plea agreement
and extended NWM's obligations under the plea agreement and probation until
December 2026.
In the event that NWM Plc does not meet its obligations to the DOJ, this may
lead to adverse consequences such as increased costs, findings that NWM Plc
violated its probation term, and possible re-sentencing, amongst other
consequences. Other material adverse collateral consequences may occur as a
result of this matter, as further described in the Risk Factor relating to
legal, regulatory and governmental actions and investigations set out on pages
422-423 of the NatWest Group Annual Results and Accounts 2024.
Review and investigation of treatment of tracker mortgage customers in Ulster
Bank Ireland DAC
In December 2015, correspondence was received from the Central Bank of Ireland
setting out an industry examination framework in respect of the sale of
tracker mortgages from approximately 2001 until the end of 2015.
The redress and compensation process has now largely concluded, although a
small number of cases remain outstanding relating to uncontactable customers.
Ulydien (formerly UBIDAC) customers have lodged tracker mortgage complaints
with the Financial Services and Pensions Ombudsman (FSPO). UBIDAC challenged
three FSPO adjudications in the Irish High Court. In June 2023, the High Court
found in favour of the FSPO in all matters. UBIDAC appealed that decision to
the Court of Appeal. In September 2024, the Court of Appeal allowed UBIDAC's
appeal and set aside certain findings of the FSPO. The Court of Appeal
directed one aspect of the FSPO decisions to be remitted to the FSPO for its
consideration following an oral hearing.
Decisions are awaited from the FSPO in respect of these cases.
3. Post balance sheet events
As part of the ongoing on-market share buyback programme, NatWest Group plc
has repurchased and cancelled a further 12.2 million shares since 30 September
2025 for a total consideration (excluding fees) of £65.99 million.
There have been no significant events between 30 September 2025 and the date
of approval of this announcement which would require a change to, or
additional disclosure, in the announcement.
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 Limited') 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 RBSH N.V.
refers to RBS Holdings N.V. The term NWM N.V. Group refers to NatWest Markets
N.V. and its subsidiary and associated undertakings. 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. The term RBSI Ltd refers to The Royal Bank of Scotland International
Limited. 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. 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
Date: 24 October 2025
Time: 9am BST
Zoom ID: 919 8718 5486
Available on natwestgroup.com/results
- Q3 2025 Interim Management Statement and background slides.
- A financial supplement containing income statement, balance sheet and
segment performance for four quarters ended 30 September 2025.
- NatWest Group Pillar 3 at 30 September 2025.
Forward-looking statements
This document may include forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995, such as
statements with respect to 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', 'target', 'goal', 'objective', 'may', 'outlook',
'prospects' and similar expressions or variations on these expressions are
intended to identify forward-looking statements. In particular, this document
may include forward-looking statements relating , but not limited to: NatWest
Group's outlook, guidance and targets (including in relation to RoTE, total
income, other operating expenses, loan impairment rate, CET1 ratio, RWA
levels, payment of dividends and participation in directed buybacks), its
financial position, profitability and financial performance, the
implementation of its strategy, its access to adequate sources of liquidity
and funding, its regulatory capital position and related requirements, its
impairment losses and credit exposures under certain specified scenarios,
substantial regulation and oversight, ongoing legal, regulatory and
governmental actions and investigations. Forward-looking statements are
subject to a number of risks and uncertainties that might cause actual results
and performance to differ materially from any expected future results or
performance expressed or implied by the forward-looking statements. Factors
that could cause or contribute to differences in current expectations include,
but are not limited to, future growth initiatives (including acquisitions,
joint ventures and strategic partnerships), the outcome of legal, regulatory
and governmental actions and investigations, the level and extent of future
impairments and write-downs, legislative, political, fiscal and regulatory
developments, accounting standards, competitive conditions, technological
developments, interest and exchange rate fluctuations, general economic and
political conditions and uncertainties, exposure to third party risk,
operational risk, conduct risk, cyber, data and IT risk, financial crime risk,
key person risk and credit rating risk and the impact of climate and
sustainability related risks and the transitioning to a net zero economy.
These and other factors, risks and uncertainties that may impact any
forward-looking statement or NatWest Group plc's actual results are discussed
in NatWest Group plc's 2024 Annual Report and Accounts on Form 20-F, NatWest
Group's Interim Management Statement for Q1, H1 and Q3 2025 on Form 6-K, and
its other public filings. The forward-looking statements contained in this
document speak only as of the date of this document and NatWest Group plc does
not assume or undertake any obligation or responsibility to update any of the
forward-looking statements contained in this document, whether as a result of
new information, future events or otherwise, except to the extent legally
required.
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). This document contains a number of non-IFRS measures, or
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 a calculation of 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 40. 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 10-14 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 exclusive of the volatility
Refer to Condensed consolidated balance sheet on page 32 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.
41.
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. This is 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 42. 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 - this comprises 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 10-14 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 10-14 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
41. 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 42. 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
40. 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 combined assets and liabilities (CAL) - Private Banking & Wealth CAL refers to customer deposits, net loans to customers - amortised cost and
Management AUMA. To avoid double counting, investment cash is deducted as it is reported
within customer deposits and AUMA.
Refer to table 6. Total combined assets and liabilities (CAL) - Private
Banking & Wealth Management on page 41. 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 40. one-offs and other items which may distort period-on-period comparisons.
Non-IFRS financial measures continued
1. Total income excluding notable items
Nine months ended Quarter ended
30 September 30 September 30 September 30 June 30 September
2025 2024 2025 2025 2024
£m £m £m £m £m
Continuing operations
Total income 12,317 10,878 4,332 4,005 3,744
Less notable items:
Commercial & Institutional
Own credit adjustments (OCA) 3 (5) - (3) 2
Central items & other
Share of associate profits/(losses) for Business Growth Fund 55 22 41 (1) 11
Interest and foreign exchange management derivatives not in hedge 168 131 162 (1) 5
accounting relationships
Foreign exchange recycling losses (37) (46) (37) - (46)
189 102 166 (5) (28)
Total income excluding notable items 12,128 10,776 4,166 4,010 3,772
2. Cost:income ratio (excl. litigation and conduct)
Nine months ended Quarter ended
30 September 30 September 30 September 30 June 30 September
2025 2024 2025 2025 2024
£m £m £m £m £m
Continuing operations
Operating expenses 6,014 5,882 1,996 2,039 1,825
Less litigation and conduct costs (130) (142) (12) (74) (41)
Other operating expenses 5,884 5,740 1,984 1,965 1,784
Total income 12,317 10,878 4,332 4,005 3,744
Cost:income ratio 48.8% 54.1% 46.1% 50.9% 48.7%
Cost:income ratio (excl. litigation and conduct) 47.8% 52.8% 45.8% 49.1% 47.6%
3. Tangible net asset value (TNAV) per ordinary share
As at
30 September 30 June 31 December
2025 2025 2024
Ordinary shareholders' interests (£m) 36,570 35,929 34,070
Less intangible assets (£m) (7,477) (7,513) (7,588)
Tangible equity (£m) 29,093 28,416 26,482
Ordinary shares in issue (millions) (1) 8,031 8,088 8,043
NAV per ordinary share (pence) 455p 444p 424p
TNAV per ordinary share (pence) 362p 351p 329p
(1) The number of ordinary shares in issue excludes own shares held.
Non-IFRS financial measures continued
4. Operating expenses excluding litigation and conduct
Nine months ended Quarter ended
30 September 30 September 30 September 30 June 30 September
2025 2024 2025 2025 2024
£m £m £m £m £m
Other operating expenses
Staff expenses 3,144 3,060 1,045 1,044 947
Premises and equipment 902 863 318 293 284
Other administrative expenses 983 1,063 323 337 307
Depreciation and amortisation 855 754 298 291 246
Total other operating expenses 5,884 5,740 1,984 1,965 1,784
Litigation and conduct costs
Staff expenses 49 52 19 16 18
Premises and equipment 4 - 1 - -
Other administrative expenses 77 90 (8) 58 23
Total litigation and conduct costs 130 142 12 74 41
Total operating expenses 6,014 5,882 1,996 2,039 1,825
Operating expenses excluding litigation and conduct 5,884 5,740 1,984 1,965 1,784
5. Loan:deposit ratio (excl. repos and reverse repos)
As at
30 September 30 June 31 December
2025 2025 2024
£m £m £m
Loans to customers - amortised cost 415,274 407,135 400,326
Less reverse repos (33,604) (30,400) (34,846)
Loans to customers - amortised cost (excl. reverse repos) 381,670 376,735 365,480
Customer deposits 435,490 436,756 433,490
Less repos (1,412) (988) (1,363)
Customer deposits (excl. repos) 434,078 435,768 432,127
Loan:deposit ratio (%) 95% 93% 92%
Loan:deposit ratio (excl. repos and reverse repos) (%) 88% 86% 85%
6. Total combined assets and liabilities (CAL) - Private Banking & Wealth Management
As at
30 September 30 June 31 December
2025 2025 2024
£bn £bn £bn
Net loans to customers (amortised cost) 18.8 18.6 18.2
Customer deposits 40.6 41.3 42.4
Assets under management and administration (AUMA) 56.0 51.8 48.9
Less investment cash included in both customer deposits and AUMA (1.2) (1.3) (1.1)
Total combined assets and liabilities (CAL) 114.2 110.4 108.4
Non-IFRS financial measures continued
7. NatWest Group Return on Tangible Equity
Nine months ended and as at Quarter ended and as at
30 September 30 September 30 September 30 June 30 September
2025 2024 2025 2025 2024
£m £m £m £m £m
Profit attributable to ordinary shareholders 4,086 3,271 1,598 1,236 1,172
Annualised profit attributable to ordinary shareholders 5,448 4,361 6,392 4,944 4,688
Average total equity 41,043 37,707 41,667 41,474 37,960
Adjustment for average other owners' equity and intangible assets (13,175) (12,040) (12,954) (13,529) (12,375)
Adjusted total tangible equity 27,868 25,667 28,713 27,945 25,585
Return on equity 13.3% 11.6% 15.3% 11.9% 12.3%
Return on Tangible Equity 19.5% 17.0% 22.3% 17.7% 18.3%
8. Segment return on equity
Nine months ended 30 September 2025 Nine months ended 30 September 2024
Private Banking Private Banking
Retail & Wealth Commercial Retail & Wealth Commercial
Banking Management & Institutional Banking Management & Institutional
Operating profit (£m) 2,335 287 3,025 1,754 189 2,724
Paid-in equity cost allocation (£m) (75) (13) (181) (56) (13) (130)
Adjustment for tax (£m) (633) (77) (711) (475) (49) (649)
Adjusted attributable profit (£m) 1,627 197 2,133 1,223 127 1,946
Annualised adjusted attributable profit (£m) 2,170 263 2,844 1,630 169 2,594
Average RWAe (£bn) 68.7 11.3 107.8 62.7 11.1 108.0
Equity factor 12.8% 11.1% 13.9% 13.4% 11.2% 13.8%
Average notional equity (£bn) 8.8 1.3 15.0 8.4 1.2 14.9
Return on equity (%) 24.7% 21.0% 19.0% 19.4% 13.6% 17.4%
Quarter ended 30 September 2025 Quarter ended 30 June 2025 Quarter ended 30 September 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) 850 108 1,041 735 102 964 656 90 1,017
Paid-in equity cost allocation (£m) (26) (5) (52) (26) (4) (66) (22) (5) (47)
Adjustment for tax (£m) (231) (29) (247) (199) (27) (225) (178) (24) (243)
Adjusted attributable profit (£m) 593 74 742 510 71 673 456 61 728
Annualised adjusted attributable profit (£m) 2,373 297 2,967 2,042 282 2,694 1,826 245 2,910
Average RWAe (£bn) 70.2 11.4 108.2 68.9 11.3 108.3 63.8 11.1 106.0
Equity factor 12.8% 11.1% 13.9% 12.8% 11.1% 13.9% 13.4% 11.2% 13.8%
Average notional equity (£bn) 9.0 1.3 15.0 8.8 1.3 15.1 8.5 1.2 14.6
Return on equity (%) 26.4% 23.4% 19.7% 23.2% 22.5% 17.9% 21.4% 19.7% 19.9%
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 both assets under management (AUM) and assets under administration (AUA) serviced through the Private Banking & Wealth Management segment. AUM comprise assets where the investment management is undertaken by Private Banking & Wealth
Management on behalf of Private Banking & Wealth Management, Retail Banking and Commercial & Institutional customers. 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 finance 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.
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