REG - Nat.Westminster Bk - National Westminster Bank Plc 2024 Annual Results
14/02/2025 09:15
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RNS Number : 1145X National Westminster Bank PLC 14 February 2025
National Westminster Bank Plc
2024 Annual Results
Financial review
Contents Page
Presentation of information 2
Description of business 2
Performance overview 3
Financial statements 4
Notes to the financial statements 11
Statement of directors' responsibilities 22
Forward-looking statements 23
Presentation of information
National Westminster Bank Plc ('NWB Plc') is a wholly owned subsidiary of
NatWest Holdings Limited ('NWH Ltd' or 'the intermediate holding company').
The term 'NWB Group' or 'we' refers to NWB Plc and its subsidiary and
associated undertakings. The term 'NWH Group' refers to NWH Ltd and its
subsidiary and associated undertakings. NatWest Group plc is 'the ultimate
holding company'. The term 'NatWest Group' refers to NatWest Group plc and its
subsidiaries.
NWB Plc publishes its financial statements in pounds sterling ('£' or
'sterling'). The abbreviations '£m' and '£bn' represent millions and
thousands of millions of pounds sterling ('GBP'), respectively, and references
to 'pence' represent pence where amounts are denominated in sterling.
Reference to 'dollars' or '$' are to United States of America ('US') dollars.
The abbreviations '$m' and '$bn' represent millions and thousands of millions
of dollars, respectively. The abbreviation '€' represents the 'euro', and
the abbreviations '€m' and '€bn' represent millions and thousands of
millions of euros, respectively.
Description of business
National Westminster Bank Plc ('NWB Plc', which wholly owns Coutts &
Company) is a principal entity under NatWest Holdings Limited ('NWH Ltd'),
together with The Royal Bank of Scotland plc ('RBS plc'). The term 'NWB Group'
refers to NWB Plc and its subsidiary and associated undertakings.
Principal activities and operating segments
NWB Group serves customers across the UK with a range of retail and commercial
banking products and services. A wide range of personal products are offered
including current accounts, credit cards, personal loans, mortgages and wealth
management services. NWB Plc is the main provider of shared services for
NatWest Group.
The reportable operating segments are as follows:
Retail Banking - serves personal customers in the UK and includes Ulster Bank
customers in Northern Ireland.
Private Banking - serves UK-connected, high net worth individuals and their
business interests.
Commercial & Institutional - consists of customer businesses reported
under Business Banking, Commercial Mid-market and Corporate &
Institutions, supporting our customers across the full non-personal customer
lifecycle, both domestically and internationally.
Central items & other - includes corporate functions such as treasury,
finance, risk management, compliance, legal, communications and human
resources. NWB Plc is the main service provider of shared services and
treasury activities for NatWest Group. The services are mainly provided to NWH
Group, however, in certain instances where permitted, services are also
provided to the wider NatWest Group including the non ring-fenced business.
Financial review continued
Performance overview
Strong financial performance
NWB Group profit for the year was £3,425 million compared with £3,509
million in 2023.
Total income decreased by £113 million to £11,973 million, primarily
reflecting a gain on redemption of own debt in 2023 and a decrease on gains
from economic hedging derivatives. This was partially offset by increased net
interest income, lending and financing fees and investment income.
Operating expenses increased by £170 million to £6,963 million, reflecting
higher staff costs as a result of planned restructuring costs and higher
depreciation and amortisation costs, mainly due to continued investment in
technology. This was offset in part by a reduction in conduct and managed
services costs.
Net impairment losses of £347 million reduced year on year reflecting good
book releases, post model adjustment releases and the IFRS 9 multiple economic
scenario (MES) updates partially offset by an increase in Stage 3 charges.
Total impairment provisions decreased by £0.1 billion to £2.7 billion in the
year. Expected credit loss (ECL) coverage ratio decreased from 0.88% to 0.81%.
Robust balance sheet with strong capital levels
Total assets increased by £8.8 billion to £424.3 billion. This was primarily
driven by an increase in loans to customers and a £7.6 billion increase in
other financial assets, driven by liquidity risk management activities,
principally net bond activity. This was partially offset by a reduction in
cash and balances at central banks.
Loans to customers increased by £13.5 billion to £332.0 billion primarily
driven by an increase in reverse repo activities, growth in the Retail Banking
business as a result of the acquisition of a Metro Bank mortgage portfolio,
and commercial term loan facilities.
Customer deposits increased by £4.5 billion to £318.3 billion driven by
growth in savings balances combined with a deposit mix shift as customers move
toward interest bearing accounts. This was partially offset by a reduction in
repo balances as a result of market conditions.
The Common Equity Tier 1 (CET1) ratio decreased 20 basis points to 11.4% due
to a £2.8 billion increase in risk-weighted assets (RWAs) partially offset by
a £0.1 billion increase in CET1 capital. The CET1 capital increase was
primarily driven by attributable profit, partially offset by interim and
foreseeable dividends.
Total RWAs increased by £2.8 billion to £124.5 billion mainly reflecting:
- an increase in credit risk RWAs of £1.2 billion, primarily driven by
a £0.9 billion Metro Bank mortgage portfolio acquisition, increased lending
and an uplift in internal ratings based (IRB) temporary model adjustment in
Retail Banking and an increase driven by drawdowns and new facilities within
Commercial & Institutional. These increases were partially offset by
active RWA management and improved risk metrics.
- an increase in operational risk RWAs of £1.6 billion following the
annual recalculation
Financial review continued
Summary consolidated income statement for the year ended 31 December 2024
Retail Private Commercial & Central items
Banking Banking Institutional & other 2024 2023 Variance
£m £m £m £m £m £m £m %
Net interest income 4,472 619 3,342 (225) 8,208 8,023 185 2
Non-interest income 412 319 1,446 1,588 3,765 4,063 (298) (7)
Total income 4,884 938 4,788 1,363 11,973 12,086 (113) (1)
Operating expenses (2,445) (700) (2,346) (1,472) (6,963) (6,793) (170) 3
Profit/(loss) before impairment losses/releases 2,439 238 2,442 (109) 5,010 5,293 (283) (5)
Impairment (losses)/releases (250) 11 (117) 9 (347) (504) 157 (31)
Operating profit/(loss) before tax 2,189 249 2,325 (100) 4,663 4,789 (126) (3)
Tax charge (1,238) (1,280) 42 (3)
Profit for the year 3,425 3,509 (84) (2)
Key metrics and ratios 2024 2023
Cost:income ratio (1) 58.2% 56.2%
Loan impairment rate (2) 10bps 15bps
CET1 ratio (3) 11.4% 11.6%
Leverage ratio (4) 4.4% 4.5%
Risk-weighted assets (RWAs) £124.5bn £121.7bn
Loan:deposit ratio (5) 98% 97%
(1) Cost:income ratio is total operating expenses divided by total
income.
(2) Loan impairment rate is the loan impairment charge divided by
gross customer loans.
(3) CET1 ratio is CET1 capital divided by RWAs.
(4) Leverage ratio is Tier 1 capital divided by total exposure.
(5) Loan:deposit ratio is total loans divided by total deposits.
NWB Group reported a profit of £3,425 million compared with £3,509 million
in 2023. This was driven by increased operating expenses of £170 million and
a £113 million decrease in total income, partially offset by a decrease in
net impairment losses of £157 million.
Total income decreased by £113 million, or 1%, to £11,973 million, primarily
reflecting a decrease in non-interest income.
Net interest income increased by £185 million, or 2%, to £8,208 million
primarily reflecting lending growth, the higher rate environment and an
increase in net bond activity. This was partially offset by increased interest
payable on customer deposits, due to balance growth combined with a mix shift
from non-interest bearing to interest bearing products.
Non-interest income decreased by £298 million, or 7%, to £3,765 million,
primarily driven by other operating income, partially offset by an increase in
net fees and commissions.
Net fees and commissions increased by £65 million, or 4%, to £1,734 million,
driven by increased commercial lending and financing fees, and higher Assets
Under Management and Administration (AUMA) balances driving an increase in
investment income.
Other operating income reduced by £363 million, or 15%, to £2,031 million
primarily reflecting:
- £234 million decrease primarily due to a gain on redemption of own
debt in 2023;
- £184 million decrease on gains from economic hedging derivatives,
combined with a £44 million decrease on gains from hedge ineffectiveness;
- £64 million lower intercompany income due from fellow NatWest
subsidiaries, partially offset by;
- £101 million increase due to gains on the sale of assets, primarily
due to a loss on disposal of property during 2023.
Operating expenses increased by £170 million, or 3%, to £6,963 million
reflecting:
- an increase in staff costs of £192 million primarily as a result of
planned restructuring costs, including the closure of operations in Poland and
staff share scheme awards, partially offset by a reduction in temporary staff
costs;
- an increase in depreciation and amortisation costs of £110 million
mainly due to continued investment in technology;
- an increase in premises and equipment costs of £60 million due to an
increase in technology contract costs and property provisions, partially
offset by lower utility costs and a smaller property footprint, partially
offset by;
- a decrease in other administrative costs of £192 million, primarily
driven by a reduction in conduct costs, managed services costs and a lower
profit share arrangement with fellow NatWest Group subsidiaries, partially
offset by the new Bank of England Levy.
Net impairment losses of £347 million reduced year on year reflecting good
book releases, post model adjustment releases and the MES update. Total
impairment provisions decreased by £0.1 billion to £2.7 billion in the year.
ECL coverage ratio decreased from 0.88% to 0.81%.
Financial review continued
Summary consolidated balance sheet as at 31 December 2024
2024 2023 Variance
£m £m £m %
Assets
Cash and balances at central banks 35,095 48,259 (13,164) (27)
Derivatives 2,874 3,184 (310) (10)
Loans to banks - amortised cost 3,426 3,355 71 2
Loans to customers - amortised cost 332,013 318,466 13,547 4
Amounts due from holding companies and fellow subsidiaries 3,736 2,311 1,425 62
Other financial assets 39,571 31,944 7,627 24
Other assets 7,594 7,949 (355) (4)
Total assets 424,309 415,468 8,841 2
Liabilities
Bank deposits 24,780 18,052 6,728 37
Customer deposits 318,290 313,752 4,538 1
Amounts due to holding companies and fellow subsidiaries 47,724 47,252 472 1
Derivatives 1,177 1,718 (541) (31)
Other financial liabilities 4,999 9,011 (4,012) (45)
Subordinated liabilities 122 122 - -
Notes in circulation 935 806 129 16
Other liabilities 3,164 3,325 (161) (5)
Total liabilities 401,191 394,038 7,153 2
Total equity 23,118 21,430 1,688 8
Total liabilities and equity 424,309 415,468 8,841 2
Total assets increased by £8.8 billion to £424.3 billion as at 31 December
2024.
Cash and balances at central banks decreased by £13.2 billion to £35.1
billion, primarily reflecting outflows as a result of net bond activity as
part of liquidity risk management.
Loans to banks - amortised cost remained broadly stable at £3.4 billion,
primarily reflecting increases in reverse repos offset by the reclassification
of the cash ratio deposit to cash and balances at central banks.
Loans to customers - amortised cost increased by £13.5 billion to £332.0
billion, driven by a £6.2 billion increase in reverse repos, an increase in
commercial term loan facilities and a £3.6 billion increase in Retail Banking
mortgage portfolios, mainly driven by the £2.2 billion acquisition of a Metro
Bank mortgage portfolio.
Amounts due from holding companies and fellow subsidiaries increased by £1.4
billion to £3.7 billion primarily due to balances with fellow subsidiaries of
NWH Group.
Other financial assets increased by £7.6 billion to £39.6 billion, primarily
reflecting £38.1 billion of bond purchases, partially offset by bond
disposals and maturities of £31.5 billion.
Bank deposits increased by £6.7 billion to £24.8 billion, driven primarily
by an increase in repo balances.
Customer deposits increased by £4.5 billion to £318.3 billion, primarily due
to a growth in savings balances including a mix shift as customers move to
interest bearing products, partially offset by a £9.6 billion reduction in
repo balances.
Derivative liabilities decreased by £0.5 billion to £1.2 billion, driven by
favourable rate movements on interest rate swaps.
Other financial liabilities decreased by £4.0 billion to £5.0 billion,
mainly driven by lower short-term funding, due to the current market
environment, and bond maturities.
Total equity increased by £1.7 billion to £23.1 billion. The increase mainly
reflects profit for the year of £3.4 billion, a £0.8 billion increase in
paid-in equity and a £0.3 billion reduction in cash flow hedging reserves,
partially offset by £2.5 billion of ordinary dividends paid to NatWest Group
plc.
Consolidated income statement
For the year ended 31 December 2024
2024 2023
£m £m
Interest receivable 18,100 14,764
Interest payable (9,892) (6,741)
Net interest income 8,208 8,023
Fees and commissions receivable 2,276 2,177
Fees and commissions payable (542) (508)
Other operating income 2,031 2,394
Non-interest income 3,765 4,063
Total income 11,973 12,086
Staff costs (3,301) (3,109)
Premises and equipment (1,099) (1,039)
Other administrative expenses (1,576) (1,768)
Depreciation and amortisation (987) (877)
Operating expenses (6,963) (6,793)
Profit before impairment losses 5,010 5,293
Impairment losses (347) (504)
Operating profit before tax 4,663 4,789
Tax charge (1,238) (1,280)
Profit for the year 3,425 3,509
Attributable to:
Ordinary shareholders 3,237 3,368
Paid-in equity holders 194 142
Non-controlling interests (6) (1)
3,425 3,509
Consolidated statement of comprehensive income
For the year ended 31 December 2024
2024 2023
£m £m
Profit for the year 3,425 3,509
Items that do not qualify for reclassification
Remeasurement of retirement benefit schemes (150) (147)
Tax 39 40
(111) (107)
Items that do qualify for reclassification
FVOCI financial assets (28) 43
Cash flow hedges (1) 405 (290)
Currency translation (18) (17)
Tax (107) 73
252 (191)
Other comprehensive income/(loss) after tax 141 (298)
Total comprehensive income for the year 3,566 3,211
Attributable to:
Ordinary shareholders 3,377 3,070
Paid-in equity holders 194 142
Non-controlling interests (5) (1)
3,566 3,211
(1) Refer to footnotes 2 and 3 of the Consolidated statement in
changes in equity.
Balance sheet
As at 31 December 2024
NWB Group NWB Plc
2024 2023 2024 2023
£m £m £m £m
Assets
Cash and balances at central banks 35,095 48,259 35,083 48,238
Derivatives 2,874 3,184 2,892 3,213
Loans to banks - amortised cost 3,426 3,355 3,148 3,043
Loans to customers - amortised cost 332,013 318,466 297,548 284,314
Amounts due from holding companies and fellow subsidiaries 3,736 2,311 36,383 33,499
Securities subject to repurchase agreements 8,984 6,469 8,984 6,469
Other financial assets excluding securities subject to repurchase agreements 30,587 25,475 29,814 24,623
Other financial assets 39,571 31,944 38,798 31,092
Investment in group undertakings - - 2,520 2,615
Other assets 7,594 7,949 5,503 5,735
Total assets 424,309 415,468 421,875 411,749
Liabilities
Bank deposits 24,780 18,052 24,778 18,052
Customer deposits 318,290 313,752 275,972 276,202
Amounts due to holding companies and fellow subsidiaries 47,724 47,252 90,925 84,174
Derivatives 1,177 1,718 1,323 2,014
Other financial liabilities 4,999 9,011 3,824 8,147
Subordinated liabilities 122 122 119 119
Notes in circulation 935 806 935 806
Other liabilities 3,164 3,325 2,390 2,534
Total liabilities 401,191 394,038 400,266 392,048
Owners' equity 23,093 21,395 21,609 19,701
Non-controlling interests 25 35 - -
Total equity 23,118 21,430 21,609 19,701
Total liabilities and equity 424,309 415,468 421,875 411,749
Owners' equity of NWB Plc as at 31 December 2024 includes the profit for the
year of £3,613 million (2023 - £3,625).
Statement of changes in equity
For the year ended 31 December 2024
NWB Group NWB Plc
2024 2023 2024 2023
£m £m £m £m
Called-up share capital - at 1 January and 31 December 1,678 1,678 1,678 1,678
Paid-in equity - at 1 January 2,518 2,518 2,518 2,518
Issued 799 - 799 -
At 31 December 3,317 2,518 3,317 2,518
Share premium account - at 1 January and 31 December 2,225 2,225 2,225 2,225
Merger reserve - at 1 January 28 77 - (2)
Amortisation (18) (49) - 2
At 31 December 10 28 - -
FVOCI reserve - at 1 January (41) (76) (52) (76)
Unrealised losses (46) - (52) (11)
Realised losses 18 43 32 43
Tax 6 (8) 6 (8)
At 31 December (63) (41) (66) (52)
Cash flow hedging reserve - at 1 January (600) (391) (601) (393)
Amount recognised in equity (2) 119 (180) 125 (180)
Amount transferred from equity to earnings (3) 286 (110) 283 (109)
Tax (113) 81 (114) 81
At 31 December (308) (600) (307) (601)
Foreign exchange reserve - at 1 January (104) (87) (18) (18)
Retranslation of net assets (44) (31) (28) (12)
Foreign currency gains on hedges of net assets 25 14 16 12
At 31 December (123) (104) (30) (18)
Capital redemption reserve - at 1 January and 31 December 820 820 820 820
Retained earnings - at 1 January 14,871 13,302 13,131 11,491
Profit attributable to ordinary shareholders and other equity owners 3,431 3,510 3,613 3,625
Paid-in equity dividends paid (194) (142) (194) (142)
Ordinary dividends paid (2,516) (1,738) (2,516) (1,738)
Remeasurement of the retirement benefit schemes
- gross (150) (147) (139) (139)
- tax 39 40 39 39
Shares issued under employee share schemes
- gross 16 - 16 -
- tax 6 - 6 -
Share-based payments
- gross (5) 10 (5) 10
- tax 21 (13) 21 (13)
Amortisation of merger reserve 18 49 - (2)
At 31 December 15,537 14,871 13,972 13,131
For the notes to this table refer to the following page.
Statement of changes in equity for the year ended 31 December 2024 continued
NWB Group NWB Plc
2024 2023 2024 2023
£m £m £m £m
Owners' equity at 31 December 23,093 21,395 21,609 19,701
Non-controlling interests - at 1 January 35 10 - -
Currency translation adjustments and other movements 1 - - -
Loss attributable to non-controlling interests (6) (1) - -
Dividends paid (5) (5) - -
Acquisition of subsidiary - 31 - -
At 31 December 25 35 - -
Total equity at 31 December 23,118 21,430 21,609 19,701
Attributable to:
Ordinary shareholders 19,776 18,877 18,292 17,183
Paid-in equity holders 3,317 2,518 3,317 2,518
Non-controlling interests 25 35 - -
23,118 21,430 21,609 19,701
(1) The total distributable reserves for NWB Plc is £13,569 million
(2023 - £12,460 million). Refer to Note 22 to the financial statements of the
NatWest Bank Plc 2024 Annual Report and Accounts for additional information.
(2) The change in the cash flow hedging reserve is driven by realised
accrued interest transferred into the income statement and a decrease in swap
rates compared to previous periods.
(3) As referred to in Note 12 to the financial statements of the
NatWest Bank Plc 2024 Annual Report and Accounts, 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 and customer deposits.
Cash flow statement
For the year ended 31 December 2024
NWB Group NWB Plc
2024 2023 2024 2023
£m £m £m £m
Cash flows from operating activities
Operating profit before tax 4,663 4,789 4,680 4,705
Adjustments for:
Non-cash and other items 2,174 1,329 1,424 396
Changes in operating assets and liabilities (5,981) (10,132) (7,007) (8,999)
Income taxes paid (1,186) (780) (993) (484)
Net cash flows from operating activities (1,2) (330) (4,794) (1,896) (4,382)
Cash flows from investing activities
Sale and maturity of other financial assets 34,959 18,254 33,860 17,887
Purchase of other financial assets (42,561) (35,090) (41,551) (34,249)
Income received on other financial assets 798 450 768 435
Net movement in business interests and intangible assets (2,883) (724) (2,861) (1,188)
Dividends received from subsidiaries - - 553 617
Sale of property, plant and equipment 183 92 101 34
Purchase of property, plant and equipment (452) (787) (252) (544)
Net cash flows from investing activities (9,956) (17,805) (9,382) (17,008)
Cash flows from financing activities
Issue of paid-in equity 799 - 799 -
Issue of subordinated liabilities 600 1,263 600 1,263
Redemption of subordinated liabilities (579) (539) (579) (539)
Interest paid on subordinated liabilities (184) (145) (159) (120)
Issue of MRELs 1,187 441 927 441
Maturity and redemption of MRELs (1,190) (157) (930) (107)
Interest paid on MRELs (247) (293) (215) (261)
Dividends paid (2,715) (1,885) (2,710) (1,880)
Net cash flows from financing activities (2,329) (1,315) (2,267) (1,203)
Effects of exchange rate changes on cash and cash equivalents (256) (403) (259) (397)
Net decrease in cash and cash equivalents (12,871) (24,317) (13,804) (22,990)
Cash and cash equivalents at 1 January 52,001 76,318 52,482 75,472
Cash and cash equivalents at 31 December 30 39,130 52,001 38,678 52,482
(1) NWB Group includes interest received of £17,968 million (2023 -
£14,320 million) and interest paid of £9,807 million (2023 - £6,043
million), and NWB Plc includes interest received of £17,094 million (2023 -
£13,338 million) and interest paid of £9,581 million (2023 - £6,259
million).
(2) The total cash outflow for leases for NWB Group was £78 million
(2023 - £100 million) and for NWB Plc £66 million (2023 - £89 million).
This included payment of principal for NWB Group of £63 million (2023 - £84
million) and NWB Plc of £58 million (2022 - £76 million). These amounts are
included in the operating activities in cash flow statement.
Notes to the financial statements
1 Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction
with NatWest Bank Plc 2024 Annual Report and Accounts. The critical and
material accounting policies are the same as those applied in the consolidated
financial statements.
The directors have prepared the condensed consolidated financial statements on
a going concern basis after assessing the principal risks, forecasts,
projections and other relevant evidence over the twelve months from the date
they are approved.
2 Operating expenses
2024 2023
£m £m
Wages, salaries and other staff costs 2,598 2,407
Temporary and contract costs 125 163
Social security costs 306 289
Pension costs 272 250
- defined benefit schemes 80 89
- defined contribution schemes 192 161
Staff costs 3,301 3,109
Premises and equipment 1,099 1,039
Depreciation and amortisation (1) 987 877
Other administrative expenses (2) 1,576 1,768
Administrative expenses 3,662 3,684
6,963 6,793
(1) Includes depreciation on right of use assets of £84 million (2023
- £86 million).
(2) Includes redress and litigation costs. Further details are
provided in Note 21 to the financial statements of the NatWest Bank Plc 2024
Annual Reports and Accounts.
Notes to the financial statements continued
3 Segmental analysis
Reportable operating segments
NWB Plc is organised into the following reportable segments: Retail Banking,
Private Banking, Commercial & Institutional and Central items & other.
Retail Banking serves personal customers in the UK and includes Ulster Bank
customers in Northern Ireland.
Private Banking serves UK-connected high-net-worth individuals and their
business interests.
Commercial & Institutional consists of customer businesses reported under
Business Banking, Commercial Mid-market and Corporate & Institutions,
supporting our customers across the full non-personal customer lifecycle, both
domestically and internationally.
Central items & other includes corporate functions such as treasury,
finance, risk management, compliance, legal, communications and human
resources. NWB Plc is the main service provider of shared services and
treasury activities for NatWest Group. The services are mainly provided to NWH
Group, however, in certain instances where permitted, services are also
provided to the wider NatWest Group including the non ring-fenced business.
Retail Private Commercial & Central items
Banking Banking Institutional & other Total
2024 £m £m £m £m £m
Net interest income 4,472 619 3,342 (225) 8,208
Net fees and commissions 313 285 1,132 4 1,734
Other operating income 99 34 314 1,584 2,031
Total income 4,884 938 4,788 1,363 11,973
Depreciation and amortisation (1) (1) (117) (868) (987)
Other operating expenses (2,444) (699) (2,229) (604) (5,976)
Impairment (losses)/releases (250) 11 (117) 9 (347)
Operating profit/(loss) 2,189 249 2,325 (100) 4,663
2023
Net interest income 4,595 709 2,955 (236) 8,023
Net fees and commissions 327 245 1,096 1 1,669
Other operating income 109 31 314 1,940 2,394
Total income 5,031 985 4,365 1,705 12,086
Depreciation and amortisation - - (124) (753) (877)
Other operating expenses (2,311) (615) (2,191) (799) (5,916)
Impairment (losses)/releases (410) (13) (82) 1 (504)
Operating profit 2,310 357 1,968 154 4,789
Total revenue (1)
Retail Private Commercial & Central items
Banking Banking Institutional & other Total
2024 £m £m £m £m £m
External 8,215 1,256 7,037 5,899 22,407
Inter-segment (2) 100 1,529 (1,369) (260) -
Total 8,315 2,785 5,668 5,639 22,407
2023
External 6,565 1,156 6,440 5,174 19,335
Inter-segment (2) (187) 998 (1,558) 747 -
Total 6,378 2,154 4,882 5,921 19,335
Total income
Retail Private Commercial & Central items
Banking Banking Institutional & other Total
2024 £m £m £m £m £m
External 4,725 6 4,477 2,765 11,973
Inter-segment (2) 159 932 311 (1,402) -
Total 4,884 938 4,788 1,363 11,973
2023
External 4,172 324 4,652 2,938 12,086
Inter-segment (2) 859 661 (287) (1,233) -
Total 5,031 985 4,365 1,705 12,086
(1) Total revenue comprises interest receivable, fees and
commissions receivable and other operating income.
(2) Revenue and income from transactions between segments of the
group are now reported as inter-segment in both the current and comparative
information.
Notes to the financial statements continued
3 Segmental analysis continued
Analysis of net fees and commissions
Retail Private Commercial & Central items
Banking Banking Institutional & other Total
2024 £m £m £m £m £m
Fees and commissions receivable
- Payment services 261 37 538 - 836
- Credit and debit card fees 327 13 199 4 543
- Lending and financing 16 5 512 - 533
- Brokerage 27 9 - - 36
- Investment management, trustee and fiduciary services 2 230 1 - 233
- Underwriting fees - - - - -
- Other 8 11 70 6 95
Total 641 305 1,320 10 2,276
Fees and commissions payable (328) (20) (188) (6) (542)
Net fees and commissions 313 285 1,132 4 1,734
2023
Fees and commissions receivable
- Payment services 263 32 518 - 813
- Credit and debit card fees 323 13 197 - 533
- Lending and financing 12 5 489 - 506
- Brokerage 27 6 - - 33
- Investment management, trustee and fiduciary services 2 205 - - 207
- Underwriting fees - - 1 - 1
- Other 4 5 60 15 84
Total 631 266 1,265 15 2,177
Fees and commissions payable (304) (21) (169) (14) (508)
Net fees and commissions 327 245 1,096 1 1,669
Retail Private Commercial & Central items
Banking Banking Institutional & other Total
2024 £m £m £m £m £m
Assets 199,579 18,916 92,653 113,161 424,309
Liabilities 159,989 42,603 127,878 70,721 401,191
2023
Assets 194,488 19,284 89,783 111,913 415,468
Liabilities 154,083 37,816 123,084 79,055 394,038
Notes to the financial statements continued
4 Tax
2024 2023
£m £m
Current tax
Charge for the year (1,078) (1,108)
Under provision in respect of prior years (117) (63)
(1,195) (1,171)
Deferred tax
Charge for the year (255) (220)
Increase in the carrying value of deferred tax assets in respect of UK losses 203 137
Over/(under) provision in respect of prior years 9 (26)
Tax charge for the year (1,238) (1,280)
Current tax for the year ended 31 December 2024 is based on rates of 25% for
the standard rate of UK corporation tax and 3% for the UK banking surcharge.
The actual tax charge differs from the expected tax charge, computed by
applying the standard rate of UK corporation tax of 25% (2023 - 23.5%), as
follows:
2024 2023
£m £m
Expected tax charge (1,166) (1,125)
Losses and temporary differences in period where no deferred tax asset (2) (1)
recognised
Foreign profits and losses taxed at other rates (5) (8)
Items not allowed for tax:
- losses on disposals and write-downs (2) -
- UK bank levy (20) (19)
- regulatory and legal actions (16) -
- other disallowable items (36) (32)
Non-taxable items 3 15
Taxable foreign exchange movements - (1)
Increase in the carrying value of deferred tax assets in respect of:
- UK losses (2) 203 137
Banking surcharge (131) (190)
Tax on paid in equity dividends 42 33
Adjustments in respect of prior years (1) (2) (108) (89)
Actual tax charge (1,238) (1,280)
(1) Prior year tax adjustments incorporate refinements to tax
computations made on submission and agreement with the tax authorities and
adjustments to provisions in respect of uncertain tax positions.
(2) Includes a net £61 million benefit from UK group relief and loss
relief claims at higher tax rates (refer to the Deferred Tax section of the
NatWest Bank Plc 2024 Annual Report and Accounts for details of the recent
changes in UK tax rates).
Judgement: Tax contingencies
NWB Group's corporate income tax charge and its provisions for corporate
income taxes necessarily involve a significant degree of estimation and
judgement. The tax treatment of some transactions is uncertain and tax
computations are yet to be agreed with the relevant tax authorities. NWB Group
recognises anticipated tax liabilities based on all available evidence and,
where appropriate, in the light of external advice. Any difference between the
final outcome and the amounts provided will affect current and deferred income
tax assets and charges in the period when the matter is resolved.
For accounting policy information refer to Accounting policies 2.1 and 3.7 in
the NatWest Bank Plc 2024 Annual Report and Accounts.
Notes to the financial statements continued
5 Loan impairment provisions
Loan exposure and impairment metrics
The table below summarises loans and related credit impairment measures within
the scope of ECL framework.
NWB Group NWB Plc
31 December 31 December 31 December 31 December
2024 2023 2024 2023
£m £m £m £m
Loans - amortised cost
Stage 1 298,209 288,772 268,368 258,188
Stage 2 35,517 31,727 31,101 28,008
Stage 3 4,798 4,405 4,112 4,003
Inter-group (1) 3,130 1,809 34,942 32,200
Total 341,654 326,713 338,523 322,400
ECL provisions (2)
Stage 1 482 566 442 521
Stage 2 667 794 624 746
Stage 3 1,599 1,512 1,482 1,416
Inter-group 2 1 39 41
2,750 2,873 2,587 2,724
ECL provision coverage (3)
Stage 1 (%) 0.16 0.20 0.16 0.20
Stage 2 (%) 1.88 2.50 2.01 2.66
Stage 3 (%) 33.33 34.32 36.04 35.37
Inter-group (%) 0.07 0.06 0.11 0.13
0.81 0.88 0.84 0.92
Impairment (releases)/losses
ECL (release)/charge (4)
Stage 1 (355) (319) (335) (302)
Stage 2 325 529 316 516
Stage 3 376 297 356 276
Third party 346 507 337 490
Inter-group 1 (3) (3) (7)
347 504 334 483
Amounts written-off 549 235 536 218
(1) NWB Group's intercompany assets are classified in Stage 1.
(2) Includes £4 million (2023 - £8 million) related to assets
classified as FVOCI.
(3) ECL provisions coverage is calculated as ECL provisions divided by
loans - amortised cost and FVOCI. It is calculated on loans and total ECL
provisions, including ECL for other (non-loan) assets and unutilised exposure.
Some segments with a high proportion of debt securities or unutilised exposure
may result in a not meaningful coverage ratio.
(4) Includes a £10 million release (2023 - £10 million charge)
related to other financial assets, of which a £4 million release (2023 - £6
million charge) related to assets classified as FVOCI, and includes a £3
million release (2023 - £2 million release) related to contingent
liabilities.
(5) The table shows gross loans only and excludes amounts that are
outside the scope of the ECL framework. Refer to Financial instruments within
the scope of the IFRS 9 ECL framework in the NatWest Bank Plc Annual report
and Accounts for further details. Other financial assets within the scope of
the IFRS 9 ECL framework were cash and balances at central banks totalling
£34.6 billion (2023 - £47.8 billion) and debt securities of £39.1 billion
(2023 - £31.5 billion).
Notes to the financial statements continued
5 Loan impairment provisions continued
Credit risk enhancement and mitigation
For information on credit risk enhancement and mitigation held as security,
refer to Risk and capital management - credit risk enhancement and mitigation
section of the NatWest Bank Plc 2024 Annual Report and Accounts.
Critical accounting policy: Loan impairment provisions
Accounting policy 2.3 sets out how the expected loss approach is applied. At
31 December 2024, impairment provisions amounted to £2,750 million (2023 -
£2,873 million). A loan is impaired when there is objective evidence that the
cash flows will not occur in the manner expected when the loan was advanced.
Such evidence includes changes in the credit rating of a borrower, the failure
to make payments in accordance with the loan agreement, significant reduction
in the value of any security, breach of limits or covenants, and observable
data about relevant macroeconomic measures.
The impairment loss is the difference between the carrying value of the loan
and the present value of estimated future cash flows at the loan's original
effective interest rate.
The measurement of credit impairment under the IFRS expected loss model
depends on management's assessment of any potential deterioration in the
creditworthiness of the borrower, its modelling of expected performance and
the application of economic forecasts. All three elements require judgements
that are potentially significant to the estimate of impairment losses. For
further information and sensitivity analysis, refer to Risk and capital
management - measurement uncertainty and ECL sensitivity analysis section.
IFRS 9 ECL model design principles
Refer to Credit risk - IFRS 9 ECL model design principles section of the
NatWest Bank Plc 2024 Annual Report and Accounts for further details.
Approach for multiple economic scenarios (MES)
The base scenario plays a greater part in the calculation of ECL than the
approach to MES. Refer to Credit risk - economic loss drivers - probability
weightings of scenarios section of the NatWest Bank Plc 2024 Annual Report and
Accounts for further details.
Notes to the financial statements continued
6 Provisions for liabilities and charges
NWB Group
Provisions for liabilities and charges Financial commitments and guarantees Total
Redress and other litigation
Property Other (1)
£m £m £m £m £m
At 1 January 2024 247 64 56 89 456
Expected credit losses impairment release - - (17) - (17)
Currency translation and other movements 1 - - - 1
Charge to income statement 117 36 - 256 409
Release to income statement (23) (27) - (42) (92)
Provisions utilised (87) (14) - (179) (280)
At 31 December 2024 255 59 39 124 477
NWB Plc
Provisions for liabilities and charges Financial commitments and guarantees Total
Redress and other litigation
Property Other (1)
£m £m £m £m £m
At 1 January 2024 241 63 54 66 424
Expected credit losses impairment release - - (16) - (16)
Currency translation and other movements 2 - - - 2
Charge to income statement 112 35 - 234 381
Release to income statement (21) (27) - (39) (87)
Provisions utilised (85) (14) - (162) (261)
At 31 December 2024 249 57 38 99 443
(1) Other materially comprises provisions relating to restructuring
costs.
Provisions are liabilities of uncertain timing or amount and are recognised
when there is a present obligation as a result of a past event, the outflow of
economic benefit is probable and the outflow can be estimated reliably. Any
difference between the final outcome and the amounts provided will affect the
reported results in the period when the matter is resolved.
For accounting policy information refer to Accounting policy Note 3.12 in the
NatWest Bank Plc 2024 Annual Report and Accounts.
Notes to the financial statements continued
7 Memorandum items
Contingent liabilities and commitments
The amounts shown in the table below are intended only to provide an
indication of the volume of business outstanding at 31 December 2024. Although
NWB Group is exposed to credit risk in the event of non-performance of the
obligations undertaken by customers, the amounts shown do not, and are not
intended to, provide any indication of NWB Group's expectation of future
losses.
NWB Group NWB Plc
2024 2023 2024 2023
£m £m £m £m
Contingent liabilities and commitments
Guarantees 1,748 1,359 1,729 1,339
Other contingent liabilities 1,142 1,173 1,097 1,127
Standby facilities, credit lines and other commitments 93,758 85,304 82,965 75,333
Total 96,648 87,836 85,791 77,799
Trustee and other fiduciary activities
In its capacity as trustee or other fiduciary role, NWB Group may hold or
place assets on behalf of individuals, trusts, companies, pension schemes and
others. The assets and their income are not included in NWB Group's financial
statements. NWB Group earned fee income of £231 million (2023 - £205
million) from these activities.
The Financial Services Compensation Scheme
The Financial Services Compensation Scheme (FSCS), the UK's statutory fund of
last resort for customers of authorised financial services firms, pays
compensation if a firm is unable to meet its obligations. The FSCS funds
compensation for customers by raising management expenses levies and
compensation levies on the industry. In relation to protected deposits, each
deposit-taking institution contributes towards these levies in proportion to
their share of total protected deposits on 31 December of the year preceding
the scheme year (which runs from 1 April to 31 March), subject to annual
maxima set by the Prudential Regulation Authority. In addition, the FSCS has
the power to raise levies on a firm that has ceased to participate in the
scheme and is in the process of ceasing to be authorised for the costs that it
would have been liable to pay had the FSCS made a levy in the financial year
it ceased to be a participant in the scheme.
Litigation and regulatory matters
NWB Plc and its subsidiary and associated undertakings ('NWB Group') are party
to various legal proceedings and are involved in, or subject to, various
regulatory matters, including as the subject of investigations and other
regulatory and governmental action (Matters) in the United Kingdom (UK), the
United States (US), the European Union (EU) and other jurisdictions.
NWB Group recognises a provision for a liability in relation to these Matters
when it is probable that an outflow of economic benefits will be required to
settle an obligation resulting from past events, and a reliable estimate can
be made of the amount of the obligation.
In many of the Matters, it is not possible to determine whether any loss is
probable, or to estimate reliably the amount of any loss, either as a direct
consequence of the relevant proceedings and regulatory matters or as a result
of adverse impacts or restrictions on NWB Group's reputation, businesses and
operations. Numerous legal and factual issues may need to be resolved,
including through potentially lengthy discovery and document production
exercises and determination of important factual matters, and by addressing
novel or unsettled legal questions relevant to the proceedings in question,
before the probability of a liability, if any, arising can reasonably be
estimated in respect of any Matter. NWB Group cannot predict if, how, or when
such claims will be resolved or what the eventual settlement, damages, fine,
penalty or other relief, if any, may be, particularly for Matters that are at
an early stage in their development or where claimants seek substantial or
indeterminate damages.
There are situations where NWB Group may pursue an approach that in some
instances leads to a settlement agreement. This may occur in order to avoid
the expense, management distraction or reputational implications of continuing
to contest liability, or in order to take account of the risks inherent in
defending or contesting Matters, even for those for which NWB Group believes
it has credible defences and should prevail on the merits. The uncertainties
inherent in all Matters affect the amount and timing of any potential economic
outflows for both Matters with respect to which provisions have been
established and other contingent liabilities in respect of any such Matter.
It is not practicable to provide an aggregate estimate of potential liability
for our Matters as a class of contingent liabilities.
The future economic outflow in respect of any Matter may ultimately prove to
be substantially greater than, or less than, the aggregate provision, if any,
that NWB Group has recognised in respect of such Matter. Where a reliable
estimate of the economic outflow cannot be reasonably made, no provision has
been recognised. NWB Group expects that in future periods, additional
provisions and economic outflows relating to Matters that may or may not be
currently known by NWB Group will be necessary, in amounts that are expected
to be substantial in some instances. Refer to Note 21 of the NatWest Bank Plc
2024 Annual Report and Accounts for information on material provisions.
Matters which are, or could be, material, either individually or in aggregate,
having regard to NWB Group, considered as a whole, in which NWB Group is
currently involved are set out below. We have provided information on the
procedural history of certain Matters, where we believe appropriate, to aid
the understanding of the Matter.
For a discussion of certain risks associated with NWB Group's litigation and
regulatory matters (including the Matters), see the Risk Factor relating to
legal, regulatory and governmental actions and investigations set out on page
186 of the NatWest Bank Plc 2024 Annual Report and Accounts.
Notes to the financial statements continued
7 Memorandum items continued
Litigation
London Interbank Offered Rate (LIBOR) and other rates litigation
In August 2020, a complaint was filed in the United States District Court for
the Northern District of California by several United States retail borrowers
against the USD ICE LIBOR panel banks and their affiliates (including NatWest
Group plc, NatWest Markets Plc, NatWest Markets Securities Inc. and NWB Plc),
alleging (i) that the very process of setting USD ICE LIBOR amounts to illegal
price-fixing; and (ii) that banks in the United States have illegally agreed
to use LIBOR as a component of price in variable retail loans. In September
2022, the district court dismissed the complaint. In December 2024, the United
States Court of Appeals for the Ninth Circuit affirmed the district court's
decision.
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 have both been stayed
pending further discussion with HMRC in relation to a separate case involving
another bank. The amount of £153 million continues to be recognised as an
asset that NatWest Group plc expects to recover. Since 1 January 2018, NatWest
Group plc has paid VAT on intra-group supplies from the India-registered
NatWest Group companies.
Regulatory matters
NWB Group's financial condition can be affected by the actions of various
governmental and regulatory authorities in the UK, the US, the EU and
elsewhere. NWB Group and/or NatWest Group have engaged, and will continue to
engage, in discussions with relevant governmental and regulatory authorities,
including in the UK, the US, the EU and elsewhere, on an ongoing and regular
basis, and in response to informal and formal inquiries or investigations,
regarding operational, systems and control evaluations and issues including
those related to compliance with applicable laws and regulations, including
consumer protection, investment advice, business conduct,
competition/anti-trust, VAT recovery, anti-bribery, anti-money laundering and
sanctions regimes.
NWB Group expects government and regulatory intervention in financial services
to be high for the foreseeable future, including increased scrutiny from
competition and other regulators in the retail and SME business sectors.
Any matters discussed or identified during such discussions and inquiries may
result in, among other things, further inquiry or investigation, other action
being taken by governmental and regulatory authorities, increased costs being
incurred by NWB Group, remediation of systems and controls, public or private
censure, restriction of NWB Group's business activities and/or fines. Any of
the events or circumstances mentioned in this paragraph or below could have a
material adverse effect on NWB Group, its business, authorisations and
licences, reputation, results of operations or the price of securities issued
by it, or lead to material additional provisions being taken.
NWB Group is co-operating fully with the matters described below.
Investment advice review
In October 2019, the FCA notified NatWest Group of its intention to appoint a
Skilled Person under section 166 of the Financial Services and Markets Act
2000 to conduct a review of whether NatWest Group's past business review of
investment advice provided during 2010 to 2015 was subject to appropriate
governance and accountability and led to appropriate customer outcomes. The
Skilled Person's review has concluded and, after discussion with the FCA,
NatWest Group is undertaking additional review / remediation work.
Notes to the financial statements continued
8 Related parties
UK Government
The UK Government's shareholding in NatWest Group plc is managed by UK
Government Investments Limited, a company wholly owned by the UK Government.
At 31 December 2024 HM Treasury's holding in NatWest Group plc's ordinary
shares was 9.99% (31 December 2023 - 37.97%). As a result, the UK Government
through HM Treasury is no longer the controlling shareholder of NatWest Group
plc as per UK listing rules. The UK Government and UK Government-controlled
bodies remain related parties of the NatWest Group.
NWB Group enters into transactions with many of these bodies. Transactions
include the payment of: taxes, principally UK corporation tax Note 4 and value
added tax; national insurance contributions; local authority rates; and
regulatory fees and levies; together with banking transactions such as loans
and deposits undertaken in the normal course of banker-customer relationships.
Bank of England facilities
NWB Group may participate in a number of schemes operated by the Bank of
England in the normal course of business.
In March 2024 Bank of England Levy replaced the Cash Ratio Deposit scheme.
Members of NatWest Group that are UK authorised institutions are required to
pay the levy having eligible liabilities greater than £600 million. They also
have access to Bank of England reserve accounts: sterling current accounts
that earn interest at the Bank of England Base rate.
NWB Plc guarantees certain liabilities of NWH Group to the Bank of England.
Other related party
(a) In accordance with IAS 24, transactions or balances between NWB Group
entities that have been eliminated on consolidation are not reported.
(b) The primary financial statements include transactions and balances
with its subsidiaries which have been further disclosed in the relevant parent
company notes.
Associates, joint ventures and equity investments
In their roles as providers of finance, NWB Group companies provide
development and other types of capital support to businesses. These
investments are made in the normal course of business. To further strategic
partnerships, NWB Group may seek to invest in third parties or allow third
parties to hold a minority interest in a subsidiary of NatWest Group. We
disclose as related parties for associates and joint ventures and where equity
interest are over 10%. Ongoing business transactions with these entities are
on normal commercial terms.
At 31 December 2024 NWB Group held investment in associates and joint ventures
amounting to £1 million (2023 - £4 million). For the year ended 31 December
2024 NWB Group's share of losses of associates was £2 million (2023 - £3
million). At 31 December 2024 there were £1 million balances within customer
deposits (2023 - £2 million) relating to associates and joint ventures.
Post employment benefits
NatWest Group recharges NatWest Group Pension Fund with the cost of pension
management services incurred by it.
Holding companies and fellow subsidiaries
Transactions NWB Group enters with its holding companies and fellow
subsidiaries also meet the definition of related party transactions. The table
below discloses transactions between NWB Group and subsidiaries of NatWest
Group.
2024 2023
Holding Fellow Total Holding Fellow Total
company subsidiaries company subsidiaries
£m £m £m £m £m £m
Interest receivable 2 95 97 - 133 133
Interest payable (713) (1,768) (2,481) (674) (1,588) (2,262)
Fees and commissions receivable - 74 74 - 62 62
Fees and commissions payable - (78) (78) - (71) (71)
Other operating income (1) 37 1,441 1,478 11 1,532 1,543
Other administration expenses (2) - (128) (128) - (156) (156)
Impairment (losses)/releases (1) - (1) 3 - 3
(675) (364) (1,039) (660) (88) (748)
(1) Includes internal service recharges of £1,478 million (2023 -
£1,542 million).
(2) Other operating expense relates to a new profit share arrangement
with a fellow NatWest Group subsidiary that commenced in 2024. The profit
share arrangement was introduced during the year to reward NWM Group on an
arm's length basis for its contribution to the performance of the NatWest
Group Commercial & Institutional business segment, 2024 being the first
full year with the Commercial & Institutional segment in place.
Notes to the financial statements continued
9 Date of approval
The annual results for the year ended 31 December 2024 were approved by the
board of directors on 13 February 2025.
10 Post balance sheet events
There have been no significant events between 31 December 2024 and the date of
approval of these accounts which would require a change to or additional
disclosure in the accounts.
Statement of directors' responsibilities
This statement should be read in conjunction with the responsibilities of the
auditor set out in their report on pages 87 to 97 of the NatWest Bank Plc 2024
Annual Report and Accounts.
The directors are responsible for the preparation of the Annual Report and
Accounts. The directors are required to prepare Group financial statements,
and as permitted by the Companies Act 2006 have elected to prepare company
financial statements, for each financial year in accordance with UK adopted
International Accounting Standards. They are responsible for preparing
financial statements that present fairly the financial position, financial
performance and cash flows of NWB Group and NWB Plc. In preparing those
financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable, relevant and
reliable; and
- state whether applicable accounting standards have been followed,
subject to any material departures disclosed and explained in the financial
statements;
- prepare the financial statements on a going concern basis unless it is
inappropriate to presume that the company and Group will continue in business.
The directors are responsible for keeping proper accounting records which
disclose with reasonable accuracy at any time the financial position of NWB
Group and to enable them to ensure that the Annual Report and Accounts
complies with the Companies Act 2006. They are also responsible for
safeguarding the assets of NWB Plc and NWB Group and hence for taking
reasonable steps for the prevention and detection of fraud and other
irregularities.
Under applicable law and regulations, the directors are also responsible for
preparing a Strategic report and Directors' report, that comply with that law
and those regulations. The directors are responsible for the maintenance and
integrity of the corporate and financial information included on the company's
website.
The directors confirm that to the best of their knowledge:
- the financial statements, prepared in accordance with UK adopted
International Accounting Standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Bank and the
undertakings included in the consolidation taken as a whole; and
- the Strategic report and Directors' report (incorporating the Financial
review) includes a fair review of the development and performance of the
business and the position of the Bank and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
By order of the Board
Richard Haythornthwaite John-Paul Thwaite Katie Murray
Chair Chief Executive Officer Chief Financial Officer
13 February 2025
Board of directors
Chair Executive directors Non-executive directors
Richard Haythornthwaite John-Paul Thwaite Francesca Barnes
Katie Murray Ian Cormack
Roisin Donnelly
Patrick Flynn
Geeta Gopalan
Yasmin Jetha
Stuart Lewis
Mark Rennison
Mark Seligman
Gillian Whitehead
Lena Wilson
Forward-looking statements
Cautionary statement regarding forward-looking statements
This document may include forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995, such as
statements with respect to NWB Group's financial condition, results of
operations and business, including its strategic priorities, financial,
investment and capital targets, and climate and sustainability related
targets, commitments and ambitions described herein. Statements that are not
historical facts, including statements about NWB Group's beliefs and
expectations, are forward-looking statements. Words such as 'expect',
'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend',
'will', 'plan', 'could', 'target', 'goal', 'objective', 'may', 'outlook',
'prospects' and similar expressions or variations on these expressions are
intended to identify forward-looking statements. In particular, this document
may include forward-looking statements relating, but not limited to: NWB
Group's economic and political risks, its regulatory capital position and
related requirements, its financial position, profitability and financial
performance (including financial, capital, cost savings and operational
targets), the implementation of NatWest Group's strategy, its climate and
sustainability related ambitions and targets, its access to adequate sources
of liquidity and funding, its ongoing compliance with the UK ring-fencing
regime and ensuring operational continuity in resolution, its impairment
losses and credit exposures under certain specified scenarios, substantial
regulation and oversight, ongoing legal, regulatory and governmental actions
and investigations. Forward-looking statements are subject to a number of
risks and uncertainties that might cause actual results and performance to
differ materially from any expected future results or performance expressed or
implied by the forward-looking statements. Factors that could cause or
contribute to differences in current expectations include, but are not limited
to, future growth initiatives (including acquisitions, joint ventures and
strategic partnerships), the outcome of legal, regulatory and governmental
actions and investigations, the level and extent of future impairments and
write-downs, legislative, political, fiscal and regulatory developments,
accounting standards, competitive conditions, technological developments,
interest and exchange rate fluctuations, and general economic and political
conditions, exposure to third party risk, operational risk, compliance and
conduct risk, cyber, data and IT risk, financial crime risk, key person risk,
credit rating risk, model risk, reputational risk, and the impact of climate
related risks and the transitioning to a net zero economy. These and other
factors, risks and uncertainties that may impact any forward-looking statement
or the NWB Group's actual results are discussed in the NWB Plc's 2024 Annual
Report and Accounts. The forward-looking statements contained in this document
speak only as of the date of this document and NWB Plc does not assume or
undertake any obligation or responsibility to update any of the
forward-looking statements contained in this document, whether as a result of
new information, future events or otherwise, except to the extent legally
required.
Legal Entity Identifier: 213800IBT39XQ9C4CP7
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