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[6-K] NatWest Group plc American Current Report (Foreign Issuer)

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NatWest Group H1 2025 highlights: total income £7.99 bn (+11.9% YoY) with net interest income £6.12 bn (+13.2%). Net interest margin expanded 21 bps to 2.28%. Operating profit before tax reached £3.59 bn (+18.4%); attributable profit £2.49 bn, delivering EPS 30.9 p (+28%) and RoTE 18.1% (vs 16.4%).

Cost-income ratio fell to 48.8% (-6.7 ppt) as digital efficiency offset inflation. Impairments rose to £382 m (loan-loss rate 19 bps). CET1 ratio slipped 20 bps QoQ to 13.6% after accrual of a 9.5 p interim dividend (+58%) and announcement of a £750 m buyback, keeping capital within the 13-14% target. TNAV increased 22 p to 351 p; LCR remains strong at 147%.

Loans (ex-central) grew £11.6 bn and deposits £4.5 bn, aided by the Sainsbury’s Bank deal that added 1.1 m customers. Segment ROE: Retail 23.8%, Commercial & Institutional 18.6%, Private Banking & WM 19.8%.

  • Shareholder distributions announced YTD total £1.5 bn.
  • 2025 guidance upgraded: income >£16 bn, RoTE >16.5%, costs ~£8.1 bn, impairment <20 bps, RWAs £190–195 bn.

Principali risultati del Gruppo NatWest nel primo semestre 2025: ricavi totali pari a £7,99 mld (+11,9% su base annua) con un margine di interesse netto di £6,12 mld (+13,2%). Il margine di interesse netto è cresciuto di 21 punti base raggiungendo il 2,28%. L’utile operativo ante imposte ha raggiunto £3,59 mld (+18,4%); l’utile attribuibile è stato di £2,49 mld, con un EPS di 30,9 p (+28%) e un RoTE del 18,1% (rispetto al 16,4%).

Il rapporto costi/ricavi è sceso al 48,8% (-6,7 punti percentuali) grazie all’efficienza digitale che ha compensato l’inflazione. Le rettifiche sono aumentate a £382 mln (tasso di perdita sui prestiti 19 punti base). Il CET1 ratio è leggermente sceso di 20 punti base trimestre su trimestre al 13,6% a seguito dell’accantonamento per un dividendo intermedio di 9,5 p (+58%) e dell’annuncio di un buyback da £750 mln, mantenendo il capitale entro l’obiettivo del 13-14%. Il TNAV è aumentato di 22 p raggiungendo 351 p; il LCR rimane solido al 147%.

I prestiti (escluso il settore centrale) sono cresciuti di £11,6 mld e i depositi di £4,5 mld, supportati dall’accordo con Sainsbury’s Bank che ha aggiunto 1,1 milioni di clienti. ROE per segmento: Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Le distribuzioni agli azionisti annunciate da inizio anno ammontano a £1,5 mld.
  • Previsioni per il 2025 aggiornate: ricavi >£16 mld, RoTE >16,5%, costi circa £8,1 mld, rettifiche <20 punti base, RWAs tra £190 e £195 mld.

Aspectos destacados del Grupo NatWest en el primer semestre de 2025: ingresos totales de £7,99 mil millones (+11,9% interanual) con ingresos netos por intereses de £6,12 mil millones (+13,2%). El margen de interés neto se amplió 21 puntos básicos hasta 2,28%. El beneficio operativo antes de impuestos alcanzó £3,59 mil millones (+18,4%); beneficio atribuible de £2,49 mil millones, con un BPA de 30,9 p (+28%) y un RoTE del 18,1% (frente al 16,4%).

La ratio coste-ingresos cayó al 48,8% (-6,7 puntos porcentuales) ya que la eficiencia digital compensó la inflación. Las provisiones aumentaron a £382 millones (tasa de pérdidas crediticias de 19 puntos básicos). La ratio CET1 bajó 20 puntos básicos trimestre a trimestre hasta el 13,6% tras la provisión de un dividendo intermedio de 9,5 p (+58%) y el anuncio de una recompra de acciones por £750 millones, manteniendo el capital dentro del objetivo del 13-14%. El TNAV aumentó 22 p hasta 351 p; el LCR sigue siendo sólido en 147%.

Los préstamos (excluyendo el sector central) crecieron £11,6 mil millones y los depósitos £4,5 mil millones, impulsados por el acuerdo con Sainsbury’s Bank que añadió 1,1 millones de clientes. ROE por segmento: Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Las distribuciones a accionistas anunciadas en lo que va de año suman £1,5 mil millones.
  • Previsiones para 2025 mejoradas: ingresos >£16 mil millones, RoTE >16,5%, costes ~£8,1 mil millones, provisiones <20 puntos básicos, RWAs entre £190 y £195 mil millones.

NatWest 그룹 2025년 상반기 주요 실적: 총 수익 £79.9억 (+11.9% 전년 대비) 중 순이자수익 £61.2억 (+13.2%). 순이자마진은 21bp 확대되어 2.28%를 기록. 법인세 차감 전 영업이익은 £35.9억 (+18.4%), 귀속이익 £24.9억으로 주당순이익(EPS) 30.9펜스 (+28%), 자기자본수익률(RoTE) 18.1% (전분기 16.4%) 달성.

비용대비수익률은 디지털 효율성으로 인플레이션을 상쇄하며 48.8%로 6.7%포인트 하락. 대손충당금은 £3.82억으로 증가(대출손실률 19bp). CET1 비율은 중간배당 9.5펜스(+58%) 및 £7.5억 자사주 매입 발표 후 분기 대비 20bp 하락한 13.6%로, 목표 범위인 13-14% 내 유지. 순자산가치는 22펜스 상승한 351펜스; 유동성커버리지비율(LCR)은 147%로 견고함 유지.

중앙 제외 대출금은 £116억, 예금은 £45억 증가했으며, Sainsbury’s Bank 인수로 110만 고객 추가. 세그먼트별 자기자본이익률: 소매 23.8%, 상업 및 기관 18.6%, 프라이빗뱅킹 및 자산관리 19.8%.

  • 올해 누적 주주 배당금 총 £15억 발표.
  • 2025년 가이던스 상향: 수익 >£160억, RoTE >16.5%, 비용 약 £81억, 대손충당금 <20bp, 위험가중자산(RWA) £190-195억.

Points forts du groupe NatWest au premier semestre 2025 : revenus totaux de 7,99 milliards de £ (+11,9% en glissement annuel) avec un produit net d’intérêts de 6,12 milliards de £ (+13,2%). La marge nette d’intérêt s’est élargie de 21 points de base pour atteindre 2,28%. Le bénéfice d’exploitation avant impôts a atteint 3,59 milliards de £ (+18,4%) ; bénéfice attribuable de 2,49 milliards de £, avec un BPA de 30,9 p (+28%) et un RoTE de 18,1% (contre 16,4%).

Le ratio coûts/revenus a chuté à 48,8% (-6,7 points) grâce à l’efficacité digitale qui a compensé l’inflation. Les dépréciations ont augmenté à 382 millions de £ (taux de pertes sur prêts de 19 points de base). Le ratio CET1 a diminué de 20 points de base trimestre sur trimestre pour s’établir à 13,6% après la provision d’un dividende intérimaire de 9,5 p (+58%) et l’annonce d’un rachat d’actions de 750 millions de £, maintenant le capital dans la fourchette cible de 13-14%. La valeur nette tangible par action (TNAV) a augmenté de 22 p à 351 p ; le ratio de couverture de liquidité (LCR) reste solide à 147%.

Les prêts (hors secteur central) ont augmenté de 11,6 milliards de £ et les dépôts de 4,5 milliards de £, aidés par l’accord avec Sainsbury’s Bank qui a ajouté 1,1 million de clients. ROE par segment : Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Les distributions aux actionnaires annoncées depuis le début de l’année s’élèvent à 1,5 milliard de £.
  • Prévisions 2025 révisées à la hausse : revenus >16 milliards de £, RoTE >16,5%, coûts ~8,1 milliards de £, dépréciations <20 points de base, actifs pondérés en fonction des risques (RWA) entre 190 et 195 milliards de £.

NatWest Group Halbjahresergebnisse 2025: Gesamtertrag £7,99 Mrd (+11,9% im Jahresvergleich) mit Nettozinsertrag von £6,12 Mrd (+13,2%). Die Nettozinsmarge stieg um 21 Basispunkte auf 2,28%. Das Betriebsergebnis vor Steuern erreichte £3,59 Mrd (+18,4%); der auf die Aktionäre entfallende Gewinn betrug £2,49 Mrd, was ein Ergebnis je Aktie (EPS) von 30,9 Pence (+28%) und eine Eigenkapitalrendite (RoTE) von 18,1% (vorher 16,4%) bedeutet.

Die Cost-Income-Ratio sank auf 48,8% (-6,7 Prozentpunkte), da digitale Effizienz die Inflation ausglich. Wertberichtigungen stiegen auf £382 Mio (Kreditausfallquote 19 Basispunkte). Die CET1-Quote fiel im Quartalsvergleich um 20 Basispunkte auf 13,6% nach Rückstellung einer Zwischendividende von 9,5 Pence (+58%) und Ankündigung eines Aktienrückkaufs von £750 Mio, wodurch das Kapital im Zielbereich von 13-14% blieb. Der Tangible Net Asset Value (TNAV) stieg um 22 Pence auf 351 Pence; die Liquidity Coverage Ratio (LCR) bleibt mit 147% robust.

Kredite (ohne Zentralbereich) wuchsen um £11,6 Mrd, Einlagen um £4,5 Mrd, unterstützt durch den Sainsbury’s Bank-Deal, der 1,1 Mio Kunden hinzufügte. Segment-ROE: Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Seit Jahresbeginn angekündigte Ausschüttungen an Aktionäre belaufen sich auf £1,5 Mrd.
  • 2025er Prognose angehoben: Erträge >£16 Mrd, RoTE >16,5%, Kosten ca. £8,1 Mrd, Wertberichtigungen <20 Basispunkte, risikogewichtete Aktiva (RWA) £190–195 Mrd.
Positive
  • Attributable profit £2.49 bn and EPS up 28% YoY.
  • Cost-income ratio improved to 48.8%, evidencing successful simplification.
  • NIM expanded 21 bps to 2.28% despite base-rate cuts.
  • Capital returns: 9.5 p dividend (+58%) and £750 m buyback.
  • 2025 guidance raised for income (>£16 bn) and RoTE (>16.5%).
Negative
  • Impairment charge rose to £382 m vs £48 m prior year.
  • CET1 ratio dipped 20 bps QoQ to 13.6%.
  • Loan-loss rate climbed to 19 bps from 3 bps YoY.

Insights

TL;DR: Earnings beat, efficiency gains and larger capital returns support bullish equity view.

Double-digit revenue growth and a 6.7 ppt drop in cost-income drove EPS up 28%. With CET1 still at 13.6%, management can fund a 9.5 p dividend and £750 m buyback while upgrading 2025 targets. NIM resilience (+21 bps YoY) shows pricing power despite rate cuts. Balance-sheet expansion is disciplined, with loan growth focused on higher-yield unsecured and commercial books. Guidance implies >16.5% RoTE and healthy payout, underpinning valuation upside.

TL;DR: Rising impairments and CET1 drift warrant monitoring, but buffers remain adequate.

Impairment charge jumped to £382 m (19 bps) from £48 m YoY, reflecting macro uncertainty and Sainsbury’s portfolio. Stage 2 exposures increased and post-model adjustments, though lower, still represent 7.4% of ECL. CET1 fell 20 bps QoQ; further buybacks could pressure capital if credit costs accelerate. Liquidity (LCR 147%) and conservative RWAs provide cushion, yet investors should track asset-quality trends into H2.

Principali risultati del Gruppo NatWest nel primo semestre 2025: ricavi totali pari a £7,99 mld (+11,9% su base annua) con un margine di interesse netto di £6,12 mld (+13,2%). Il margine di interesse netto è cresciuto di 21 punti base raggiungendo il 2,28%. L’utile operativo ante imposte ha raggiunto £3,59 mld (+18,4%); l’utile attribuibile è stato di £2,49 mld, con un EPS di 30,9 p (+28%) e un RoTE del 18,1% (rispetto al 16,4%).

Il rapporto costi/ricavi è sceso al 48,8% (-6,7 punti percentuali) grazie all’efficienza digitale che ha compensato l’inflazione. Le rettifiche sono aumentate a £382 mln (tasso di perdita sui prestiti 19 punti base). Il CET1 ratio è leggermente sceso di 20 punti base trimestre su trimestre al 13,6% a seguito dell’accantonamento per un dividendo intermedio di 9,5 p (+58%) e dell’annuncio di un buyback da £750 mln, mantenendo il capitale entro l’obiettivo del 13-14%. Il TNAV è aumentato di 22 p raggiungendo 351 p; il LCR rimane solido al 147%.

I prestiti (escluso il settore centrale) sono cresciuti di £11,6 mld e i depositi di £4,5 mld, supportati dall’accordo con Sainsbury’s Bank che ha aggiunto 1,1 milioni di clienti. ROE per segmento: Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Le distribuzioni agli azionisti annunciate da inizio anno ammontano a £1,5 mld.
  • Previsioni per il 2025 aggiornate: ricavi >£16 mld, RoTE >16,5%, costi circa £8,1 mld, rettifiche <20 punti base, RWAs tra £190 e £195 mld.

Aspectos destacados del Grupo NatWest en el primer semestre de 2025: ingresos totales de £7,99 mil millones (+11,9% interanual) con ingresos netos por intereses de £6,12 mil millones (+13,2%). El margen de interés neto se amplió 21 puntos básicos hasta 2,28%. El beneficio operativo antes de impuestos alcanzó £3,59 mil millones (+18,4%); beneficio atribuible de £2,49 mil millones, con un BPA de 30,9 p (+28%) y un RoTE del 18,1% (frente al 16,4%).

La ratio coste-ingresos cayó al 48,8% (-6,7 puntos porcentuales) ya que la eficiencia digital compensó la inflación. Las provisiones aumentaron a £382 millones (tasa de pérdidas crediticias de 19 puntos básicos). La ratio CET1 bajó 20 puntos básicos trimestre a trimestre hasta el 13,6% tras la provisión de un dividendo intermedio de 9,5 p (+58%) y el anuncio de una recompra de acciones por £750 millones, manteniendo el capital dentro del objetivo del 13-14%. El TNAV aumentó 22 p hasta 351 p; el LCR sigue siendo sólido en 147%.

Los préstamos (excluyendo el sector central) crecieron £11,6 mil millones y los depósitos £4,5 mil millones, impulsados por el acuerdo con Sainsbury’s Bank que añadió 1,1 millones de clientes. ROE por segmento: Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Las distribuciones a accionistas anunciadas en lo que va de año suman £1,5 mil millones.
  • Previsiones para 2025 mejoradas: ingresos >£16 mil millones, RoTE >16,5%, costes ~£8,1 mil millones, provisiones <20 puntos básicos, RWAs entre £190 y £195 mil millones.

NatWest 그룹 2025년 상반기 주요 실적: 총 수익 £79.9억 (+11.9% 전년 대비) 중 순이자수익 £61.2억 (+13.2%). 순이자마진은 21bp 확대되어 2.28%를 기록. 법인세 차감 전 영업이익은 £35.9억 (+18.4%), 귀속이익 £24.9억으로 주당순이익(EPS) 30.9펜스 (+28%), 자기자본수익률(RoTE) 18.1% (전분기 16.4%) 달성.

비용대비수익률은 디지털 효율성으로 인플레이션을 상쇄하며 48.8%로 6.7%포인트 하락. 대손충당금은 £3.82억으로 증가(대출손실률 19bp). CET1 비율은 중간배당 9.5펜스(+58%) 및 £7.5억 자사주 매입 발표 후 분기 대비 20bp 하락한 13.6%로, 목표 범위인 13-14% 내 유지. 순자산가치는 22펜스 상승한 351펜스; 유동성커버리지비율(LCR)은 147%로 견고함 유지.

중앙 제외 대출금은 £116억, 예금은 £45억 증가했으며, Sainsbury’s Bank 인수로 110만 고객 추가. 세그먼트별 자기자본이익률: 소매 23.8%, 상업 및 기관 18.6%, 프라이빗뱅킹 및 자산관리 19.8%.

  • 올해 누적 주주 배당금 총 £15억 발표.
  • 2025년 가이던스 상향: 수익 >£160억, RoTE >16.5%, 비용 약 £81억, 대손충당금 <20bp, 위험가중자산(RWA) £190-195억.

Points forts du groupe NatWest au premier semestre 2025 : revenus totaux de 7,99 milliards de £ (+11,9% en glissement annuel) avec un produit net d’intérêts de 6,12 milliards de £ (+13,2%). La marge nette d’intérêt s’est élargie de 21 points de base pour atteindre 2,28%. Le bénéfice d’exploitation avant impôts a atteint 3,59 milliards de £ (+18,4%) ; bénéfice attribuable de 2,49 milliards de £, avec un BPA de 30,9 p (+28%) et un RoTE de 18,1% (contre 16,4%).

Le ratio coûts/revenus a chuté à 48,8% (-6,7 points) grâce à l’efficacité digitale qui a compensé l’inflation. Les dépréciations ont augmenté à 382 millions de £ (taux de pertes sur prêts de 19 points de base). Le ratio CET1 a diminué de 20 points de base trimestre sur trimestre pour s’établir à 13,6% après la provision d’un dividende intérimaire de 9,5 p (+58%) et l’annonce d’un rachat d’actions de 750 millions de £, maintenant le capital dans la fourchette cible de 13-14%. La valeur nette tangible par action (TNAV) a augmenté de 22 p à 351 p ; le ratio de couverture de liquidité (LCR) reste solide à 147%.

Les prêts (hors secteur central) ont augmenté de 11,6 milliards de £ et les dépôts de 4,5 milliards de £, aidés par l’accord avec Sainsbury’s Bank qui a ajouté 1,1 million de clients. ROE par segment : Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Les distributions aux actionnaires annoncées depuis le début de l’année s’élèvent à 1,5 milliard de £.
  • Prévisions 2025 révisées à la hausse : revenus >16 milliards de £, RoTE >16,5%, coûts ~8,1 milliards de £, dépréciations <20 points de base, actifs pondérés en fonction des risques (RWA) entre 190 et 195 milliards de £.

NatWest Group Halbjahresergebnisse 2025: Gesamtertrag £7,99 Mrd (+11,9% im Jahresvergleich) mit Nettozinsertrag von £6,12 Mrd (+13,2%). Die Nettozinsmarge stieg um 21 Basispunkte auf 2,28%. Das Betriebsergebnis vor Steuern erreichte £3,59 Mrd (+18,4%); der auf die Aktionäre entfallende Gewinn betrug £2,49 Mrd, was ein Ergebnis je Aktie (EPS) von 30,9 Pence (+28%) und eine Eigenkapitalrendite (RoTE) von 18,1% (vorher 16,4%) bedeutet.

Die Cost-Income-Ratio sank auf 48,8% (-6,7 Prozentpunkte), da digitale Effizienz die Inflation ausglich. Wertberichtigungen stiegen auf £382 Mio (Kreditausfallquote 19 Basispunkte). Die CET1-Quote fiel im Quartalsvergleich um 20 Basispunkte auf 13,6% nach Rückstellung einer Zwischendividende von 9,5 Pence (+58%) und Ankündigung eines Aktienrückkaufs von £750 Mio, wodurch das Kapital im Zielbereich von 13-14% blieb. Der Tangible Net Asset Value (TNAV) stieg um 22 Pence auf 351 Pence; die Liquidity Coverage Ratio (LCR) bleibt mit 147% robust.

Kredite (ohne Zentralbereich) wuchsen um £11,6 Mrd, Einlagen um £4,5 Mrd, unterstützt durch den Sainsbury’s Bank-Deal, der 1,1 Mio Kunden hinzufügte. Segment-ROE: Retail 23,8%, Commercial & Institutional 18,6%, Private Banking & WM 19,8%.

  • Seit Jahresbeginn angekündigte Ausschüttungen an Aktionäre belaufen sich auf £1,5 Mrd.
  • 2025er Prognose angehoben: Erträge >£16 Mrd, RoTE >16,5%, Kosten ca. £8,1 Mrd, Wertberichtigungen <20 Basispunkte, risikogewichtete Aktiva (RWA) £190–195 Mrd.
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
July, 2025
 
Commission File Number 001-10306
 
NatWest Group plc
 
250 Bishopsgate,
London, EC2M 4AA
United Kingdom
(Address of principal executive offices)
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
 
Form 20-F
 
Form 40-F
 
 
 
 
 
The following information was issued as Company announcements in London, England and is furnished pursuant to General Instruction B to the General Instructions to Form 6-K:
 
 
 
 
Inside this report
 
 
Business performance summary
 
2
H1 2025 performance summary
3
Performance key metrics and ratios
5
Chief Financial Officer's review
7
Retail Banking
8
Private Banking & Wealth Management
9
Commercial & Institutional
10
Central items & other
11
Segment performance
 
 
Risk and capital management
 
16
Credit risk
16
Economic loss drivers
20
Governance and post model adjustments
22
Measurement uncertainty and ECLsensitivity analysis
24
Measurement uncertainty and ECLadequacy
25
Credit risk - Banking activities
25
Financial instruments within the scope of theIFRS 9 ECL framework
26
Segment analysis - portfolio summary
28
Segmental loans and impairment metrics
29
Sector analysis - portfolio summary
34
Non-Personal forbearance
36
Personal portfolio
39
Commercial real estate
40
Flow statements
 
 
Risk and capital management continued
 
47
Stage 2 decomposition by a significantincrease in credit risk trigger
49
Asset quality
53
Credit risk - Trading activities
56
Capital, liquidity and funding risk
67
Non-traded market risk
71
Traded market risk
71
Pension risk
 
 
Financial statements and notes
 
72
Condensed consolidated income statement 
73
Condensed consolidated statement ofcomprehensive income
74
Condensed consolidated balance sheet
75
Condensed consolidated statement ofchanges in equity
77
Condensed consolidated cash flow statement
78
Presentation of condensed consolidatedfinancial statements
78
Net interest income
79
Non-interest income
80
Operating expenses
81
Segmental analysis
84
Tax
85
Financial instruments - classification
87
Financial instruments - valuation

 
Financial statements and notes continued
 
92
Trading assets and liabilities
93
Loan impairment provisions
94
Provisions for liabilities and charges
94
Dividends
94
Contingent liabilities and commitments
95
Litigation and regulatory matters
101
Related party transactions
101
Post balance sheet events
101
Date of approval
102
Auditor's independent review report to NatWest Group plcGroup plc
 
Additional information
 
103
NatWest Group plc summary risk factors 
105
Statement of directors' responsibilities
106
Presentation of information
106
Statutory accounts
106
Forward-looking statements
107
Share information and contacts
108
Appendix
108
Non-IFRS financial measures
113
Performance measures not definedunder IFRS
 
 
 
 
H1 2025 performance summary
 
Chief Executive, Paul Thwaite, commented:
 
"NatWest Group's strong performance in the first half of the year reflects our consistent support for our customers and, in turn, delivery for our shareholders. We have today upgraded our income and returns guidance for 2025, as well as announcing a 9.5p interim dividend and a £750 million share buyback.
 
The role we play as a trusted partner to over 20 million customers is fundamental to our strategy and we continue to focus on helping them achieve their ambitions, with lending, deposits and assets under management once again increasing in H1 2025. With positive momentum in our business, we are ambitious for the future and see clear opportunities for further disciplined growth. This is complemented by our focus on bank-wide simplification, as we quietly revolutionise how we operate, enhancing our tech and AI capabilities in order to better meet and anticipate the evolving needs of our customers.
 
Having returned to full private ownership in Q2 2025, NatWest Group is well placed to step up and play its part in supporting economic growth across the UK and, in doing so, to create sustainable value for all our stakeholders."
 
 
H1 2025 performance
 
We have delivered a strong H1 2025 performance with continued balance sheet growth, an attributable profit of £2.5 billion, with earnings per share of 30.9 pence, up 28% on prior year, a Return on Tangible Equity (RoTE) of 18.1% and a cost:income ratio (excl. litigation and conduct) of 48.8%, compared with 55.5% in the prior year.
 
This drove strong capital generation pre-distributions of 101 basis points which allows us to announce an interim dividend of 9.5 pence per share, 58% higher than the prior year, and we intend to commence a share buyback programme of £750 million in the second half of 2025.
 
-
We continue to be disciplined in our approach to growth, deploying capital where returns are attractive. We are pleased to have added 1.1 million new customers in the first half of 2025, both organically and through the Sainsbury's Bank transaction which completed on 1 May 2025. In the first half of 2025 we delivered broad-based balance sheet growth, with net loans to customers excluding central items up by £11.6 billion, including £2.2 billion of balances acquired from Sainsbury's Bank as we added scale to our unsecured business. Customer deposits excluding central items increased by £4.5 billion, including £2.4 billion of balances acquired from Sainsbury's Bank.
 
-
We are making good progress on becoming a simpler bank, delivering efficiencies from our investment programmes as seen in the 6.7 percentage point improvement in our cost:income (excl. litigation and conduct) ratio, compared with the prior year. We are digitising more customer journeys and deploying AI to improve our productivity and customer experience which is reflected in our improved NPS scores across all three businesses. We announced new collaborations with OpenAI, AWS and Accenture to accelerate our data simplification and enable greater personalisation for our customers.
 
-
We continue to actively manage our balance sheet and risk, delivering £2.9 billion of RWA management actions as we created capacity for growth. Our Common Equity Tier 1 (CET1) ratio of 13.6% was in line with Q4 2024 and c.20 basis points lower than Q1 2025. TNAV per share in H1 2025 increased by 22 pence to 351 pence.
 
 
Outlook(1)
 
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 have strengthened our guidance and in 2025 we expect:
 
-
to achieve a Return on Tangible Equity of greater than 16.5%.
 
-
income excluding notable items to be greater than £16.0 billion.
 
-
Group operating costs, excluding litigation and conduct costs, to be around £8.1 billion including £0.1 billion of one-time integration costs.
 
-
our loan impairment rate to be below 20 basis points.
 
-
RWAs to be in the range of £190-195 billion at the end of 2025, dependent on final CRD IV model outcomes.
 
In 2027 we continue to expect:
 
-
to achieve a Return on Tangible Equity for the Group of greater than 15%.
 
Capital:
 
-
we continue to target a CET1 ratio in the range of 13-14%.
 
-
we expect to pay ordinary dividends of around 50% of attributable profit from 2025 and will consider buybacks as appropriate.
 
  
(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 this announcement. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement.
 
 
 
Business performance summary
 
 
 
Half year ended
 
Quarter ended
 
30 June
30 June
 
 
30 June
31 March
 
30 June
 
 
2025
2024
Variance
 
2025
2025
Variance
2024
Variance
Summary consolidated income statement
£m
£m
%
 
£m
£m
%
£m
%
Net interest income
6,120
5,408
13.2%
 
3,094
3,026
2.2%
2,757
12.2%
Non-interest income
1,865
1,726
8.1%
 
911
954
(4.5%)
902
1.0%
Total income
7,985
7,134
11.9%
 
4,005
3,980
0.6%
3,659
9.5%
Litigation and conduct costs
(118)
(101)
16.8%
 
(74)
(44)
68.2%
(77)
(3.9%)
Other operating expenses
(3,900)
(3,956)
(1.4%)
 
(1,965)
(1,935)
1.6%
(1,928)
1.9%
Operating expenses
(4,018)
(4,057)
(1.0%)
 
(2,039)
(1,979)
3.0%
(2,005)
1.7%
Profit before impairment losses/releases
3,967
3,077
28.9%
 
1,966
2,001
(1.7%)
1,654
18.9%
Impairment (losses)/releases
(382)
(48)
nm
 
(193)
(189)
2.1%
45
nm
Operating profit before tax
3,585
3,029
18.4%
 
1,773
1,812
(2.2%)
1,699
4.4%
Tax charge
(910)
(801)
13.6%
 
(439)
(471)
(6.8%)
(462)
(5.0%)
Profit from continuing operations
2,675
2,228
20.1%
 
1,334
1,341
(0.5%)
1,237
7.8%
Profit from discontinued operations, net of tax
-
11
nm
 
-
-
nm
15
nm
Profit for the period
2,675
2,239
19.5%
 
1,334
1,341
(0.5%)
1,252
6.5%
 
 
 
 
 
 
 
 
 
 
Performance key metrics and ratios
 
 
 
 
Notable items within total income (1)
£23m
£130m
nm
 
(£5m)
£28m
nm
£69m
nm
Total income excluding notable items (1)
£7,962m
£7,004m
13.7%
 
£4,010m
£3,952m
1.5%
£3,590m
11.7%
Net interest margin (1)
2.28%
2.07%
21bps
 
2.28%
2.27%
1bp
2.10%
18bps
Average interest earning assets (1)
£542bn
£524bn
3.4%
 
£543bn
£542bn
0.2%
£528bn
2.8%
Cost:income ratio (excl. litigation and conduct) (1)
48.8%
55.5%
(6.7%)
 
49.1%
48.6%
0.5%
52.7%
(3.6%)
Loan impairment rate (1)
19bps
3bps
16bps
 
19bps
19bps
-
(5bps)
24bps
Profit attributable to ordinary shareholders
£2,488m
£2,099m
18.5%
 
£1,236m
£1,252m
(1.3%)
£1,181m
4.7%
Total earnings per share attributable to ordinary shareholders - basic 
30.9p
24.2p
6.7p
 
15.3p
15.5p
(0.2p)
13.7p
1.6p
Return on Tangible Equity (RoTE) (1)
18.1%
16.4%
1.7%
 
17.7%
18.5%
(0.8%)
18.5%
(0.8%)
Climate and sustainable funding and financing (2)
£16.9bn
£16.3bn
3.7%
 
£9.1bn
£7.8bn
16.7%
£9.7bn
(6.2%)
 
 
nm = not meaningful.
 
For the footnotes to this table refer to the following page
 
 
Business performance summary continued
 
 
 
 
 
As at
 
30 June
31 March
 
31 December
 
 
2025
2025
Variance
2024
Variance
Balance sheet
 
 
 
 
£bn
£bn
%
£bn
%
Total assets
 
 
 
 
730.8
710.0
2.9%
708.0
3.2%
Loans to customers - amortised cost
 
 
 
 
407.1
398.8
2.1%
400.3
1.7%
Loans to customers excluding central items (1,3)
 
 
 
 
380.1
371.9
2.2%
368.5
3.1%
Loans to customers and banks - amortised cost and FVOCI 
 
 
 
 
417.9
409.5
2.1%
410.2
1.9%
Total impairment provisions (4)
 
 
 
 
3.7
3.5
5.7%
3.4
8.8%
Expected credit loss (ECL) coverage ratio 
 
 
 
 
0.87%
0.86%
1bp
0.83%
4bps
Assets under management and administration (AUMA) (1)
 
 
 
 
51.8
48.5
6.8%
48.9
5.9%
Customer deposits
 
 
 
 
436.8
434.6
0.5%
433.5
0.8%
Customer deposits excluding central items (1,3)
 
 
 
 
435.8
433.4
0.6%
431.3
1.0%
Liquidity and funding
 
 
 
 
 
 
 
 
 
Liquidity Coverage Ratio (LCR)
 
 
 
 
147%
150%
(3.0%)
150%
(3.0%)
Liquidity portfolio
 
 
 
 
217
222
(2.3%)
222
(2.3%)
Net Stable Funding Ratio (NSFR)
 
 
 
 
134%
136%
(2.0%)
137%
(3.0%)
Loan:deposit ratio (excl. repos and reverse repos) (1)
 
 
 
 
86%
85%
1%
85%
1%
Total wholesale funding
 
 
 
 
91
87
4.6%
86
5.8%
Short-term wholesale funding
 
 
 
 
35
33
6.1%
33
6.1%
Capital and leverage
 
 
 
 
 
 
 
 
 
Common Equity Tier 1 (CET1) ratio (5)
 
 
 
 
13.6%
13.8%
(20bps)
13.6%
-
Total capital ratio (5)
 
 
 
 
19.7%
20.6%
(90bps)
19.7%
-
Pro forma CET1 ratio (excl. foreseeable items) (6)
 
 
 
 
14.6%
14.8%
(20bps)
14.3%
30bps
Risk-weighted assets (RWAs)
 
 
 
 
190.1
187.0
1.7%
183.2
3.8%
UK leverage ratio
 
 
 
 
5.0%
5.2%
(0.2%)
5.0%
-
Tangible net asset value (TNAV) per ordinary share (1,7)
 
 
 
 
351p
347p
4p
329p
22p
Number of ordinary shares in issue (millions) (7)
 
 
 
 
8,088
8,067
0.3%
8,043
0.6%
 
 
  (1)
Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.
  (2)
NatWest Group used its climate and sustainable funding and financing inclusion (CSFFI) criteria to determine the assets, activities and companies that are eligible to be included within its target to provide £100 billion in climate and sustainable funding and financing between 1 July 2021 and the end of 2025. This included both provision of committed (on and off-balance sheet) funding and financing, including provision of services for underwriting issuances and private placements. The climate and sustainable funding and financing framework which underpinned our £100 billion target has been retired and replaced with our climate and transition finance framework, available on natwestgroup.com.
  (3)
Central items includes Treasury repo activity.
  (4)
Includes £0.1 billion relating to off-balance sheet exposures (31 March 2025 - £0.1 billion; 31 December 2024 - £0.1 billion).
  (5)
Refer to the Capital, liquidity and funding risk section for details of the basis of preparation.
  (6)
The pro forma CET1 ratio at 30 June 2025 excludes foreseeable items of £1,994 million: £1,244 million for ordinary dividends and £750 million foreseeable charges (31 March 2025 excludes foreseeable items of £1,875 million for ordinary dividends; 31 December 2024 excludes foreseeable items of £1,249 million for ordinary dividends).
  (7)
The number of ordinary shares in issue excludes own shares held.
 
       

Chief Financial Officer's review
 
We delivered a strong performance in the first half of 2025, with operating profit of £3,585 million and a RoTE of 18.1%.
 
In the first half of 2025 we supported our customers and delivered broad-based balance sheet growth, with net loans to customers excluding central items up by £11.6 billion and customer deposits excluding central items increasing by £4.5 billion, contributing to growth in total income excluding notable items, up by 13.7% on H1 2024 and 1.5% on Q1 2025. Cost:income ratio (excl. litigation and conduct) was 48.8% in H1 2025 compared with 55.5% in H1 2024 as we continued to simplify the business.
 
Our CET1 ratio remains within our targeted range at 13.6% and we announce an interim dividend of 9.5 pence per share and intend to commence a share buyback programme of £750 million in the second half of 2025, bringing total distributions announced in H1 2025 to £1.5 billion. We continued to actively manage the balance sheet, delivering RWA management actions of £2.9 billion in H1 2025 which created capacity for growth.
 
 
 
Strong H1 and Q2 2025 performance
 
-
Total income increased by 0.6% in Q2 2025 compared with Q1 2025 and was 11.9% higher in H1 2025 than H1 2024. Total income excluding notable items was £58 million higher in Q2 2025 than Q1 2025 due to disciplined balance sheet growth, deposit margin expansion and the benefit of one additional day in the quarter. As a result, Q2 2025 NIM of 2.28% was 1 basis point higher than Q1 2025. H1 2025 total income excluding notable items was 13.7% higher than H1 2024 as balance growth, higher structural hedge income and increased trading income were partly offset by the impact of base rate cuts and changes in the mix of our customer deposits.
 
-
Q2 2025 total operating expenses were £60 million higher than Q1 2025 and H1 2025 was £39 million lower than H1 2024. In Q2 2025, other operating expenses were £30 million higher than Q1 2025 primarily reflecting property exit costs as a  result of transformation and digitisation, a £19 million increase in one-time integration costs following the acquisition of balances from Sainsbury's Bank and pay inflation and increased National Insurance charges. H1 2025 other operating expenses were £56 million lower than the prior year as we continue to make good progress on becoming a simpler bank, including ongoing digitisation of Retail Banking, costs relating to the strategic exit from Poland in H1 2024, contract efficiencies through the use of strategic partners, and our withdrawal from the Republic of Ireland. Headcount reduced by around 1,400 FTE compared with H1 2024 and was broadly stable compared with H2 2024.
 
-
A net impairment charge of £193 million, or 19 basis points of gross customer loans, in Q2 2025 included an £81 million charge on the acquisition of balances from Sainsbury's Bank and post model adjustment releases of £64 million. Compared with Q1 2025, our ECL provision increased by £0.1 billion to £3.7 billion and our ECL coverage ratio has increased from 0.86% to 0.87%.
 
-
We have reviewed and updated our macro-economic assumptions, with limited changes compared with our previous assumptions, and we retain post model adjustments of £0.2 billion related to economic uncertainty, or 6.4% of total impairment provisions. We remain comfortable with the strong credit performance of our diversified prime loan book.
 
-
As a result, we are pleased to report an attributable profit for H1 2025 of £2,488 million, with earnings per share of 30.9 pence and a RoTE of 18.1%. Q2 2025 RoTE was 17.7%.
 
 
Robust balance sheet with strong capital and liquidity levels
 
-
We continued to support our customers with net loans to customers excluding central items growth of £11.6 billion in the first half of 2025 and £8.2 billion in Q2 2025, which included £2.2 billion of balances acquired from Sainsbury's Bank. The remaining £6.0 billion growth in Q2 2025 was disciplined and well balanced across our portfolio, including an increase in Commercial Mid-market, reflecting higher lending to housebuilders and housing associations, and Corporate & Institutions, largely in funds lending. Retail Banking mortgage balances increased by £1.4 billion in Q2 2025.
 
-
Between 1 July 2021 and the 30 June 2025 we provided £110.3 billion in climate and sustainable funding and financing and during Q1 2025 we exceeded our target to provide £100 billion between 1 July 2021 and the end of 2025. To reflect our progress, we have announced a new target to provide £200 billion in climate and transition finance between 1 July 2025 and the end of 2030. As part of this we will continue to monitor progress against 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 £9.6 billion lent up to 30 June 2025. The climate and sustainable funding and financing framework which underpinned our previous £100 billion target has been retired and replaced with our climate and transition finance framework, available on natwestgroup.com.
 
-
Customer deposits excluding central items increased £4.5 billion in H1 2025 and £2.4 billion in Q2 2025, which included £2.4 billion of balances acquired from Sainsbury's Bank and growth within Corporate & Institutions partially offset by lower current account balances in Retail Banking. Term balances remained broadly stable for the second quarter at 17% of the book, up from 16% at Q1 2025.
 
-
The LCR of 147%, representing £51.7 billion headroom above 100% minimum requirement, decreased by 3 percentage points compared with Q1 2025 primarily due to increased lending (including balances acquired from Sainsbury's Bank) partially offset by issuances. Our primary liquidity at Q2 2025 was £160.6 billion and £86.6 billion, or 54%, of which was cash and balances at central banks. Total wholesale funding increased by £3.5 billion in the quarter to £90.8 billion.
 
-
TNAV per share increased by 4 pence in the quarter to 351 pence primarily reflecting the profit for the period.
 
 
Chief Financial Officer's review continued
 
Shareholder return supported strong capital generation
 
-
The CET1 ratio of 13.6% was c.20 basis points lower than Q1 2025 principally reflecting the increase in RWAs, c.20 basis points, the ordinary dividend accrual, c.30 basis points, and share buybacks, c.40 basis points, partially offset by the attributable profit for the quarter, c.70 basis points.
 
-
RWAs increased by £6.9 billion in the first half of 2025 to £190.1 billion and £3.1 billion in Q2 2025 largely reflecting lending growth, an increase for CRD IV models and £1.6 billion in relation to the balances acquired from Sainsbury's Bank partially offset by another strong quarter of RWA management actions, £1.7 billion, as we continued to actively manage the balance sheet creating capacity for growth.
 
 
Business performance summary
 
Retail Banking
 
 
 
Half year ended
 
Quarter ended
 
30 June
30 June
 
30 June
31 March
30 June
 
2025
2024
 
2025
2025
2024
 
£m
£m
 
£m
£m
£m
Total income
3,134
2,690
 
1,594
1,540
1,365
Operating expenses
(1,423)
(1,470)
 
(742)
(681)
(697)
   of which: Other operating expenses
(1,411)
(1,457)
 
(734)
(677)
(690)
Impairment losses
(226)
(122)
 
(117)
(109)
(59)
Operating profit
1,485
1,098
 
735
750
609
 
 
 
 
 
 
 
Return on equity (1)
23.8%
18.4%
 
23.2%
24.5%
20.3%
Net interest margin (1)
2.58%
2.26%
 
2.59%
2.58%
2.31%
Cost:income ratio
 
 
 
 
 
 
   (excl. litigation and conduct) (1)
45.0%
54.2%
 
46.0%
44.0%
50.5%
Loan impairment rate (1)
21bps
12bps
 
22bps
21bps
12bps
 
 
 
 
 
 
 
 
 
 
 
As at
 
 
 
 
30 June
31 March
31 December
 
 
 
 
2025
2025
2024
 
 
 
 
£bn
£bn
£bn
Net loans to customers (amortised cost)
 
 
 
214.3
210.4
208.4
Customer deposits
 
 
 
196.6
195.7
194.8
RWAs
 
69.4
66.8
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 H1 2025, Retail Banking delivered a return on equity of 23.8% and an operating profit of £1,485 million, with continued positive income and net interest margin momentum. We have supported sectors that are vital to the health and success of the UK economy, including the housing market, with increased net mortgage lending in H1 2025 of £3.4 billion. We welcomed an additional 1 million customers from balances acquired from Sainsbury's Bank in the quarter and have continued to improve our customer proposition, including the launch of our family-backed mortgages.
 
Retail Banking provided £2.1 billion of climate and sustainable funding and financing in H1 2025 from lending on properties with an EPC rating of A or B.
 
 
H1 2025 performance
 
-
Total income was £444 million, or 16.5%, higher than H1 2024 reflecting deposit balance growth and deposit margin expansion, coupled with the benefit of balances acquired from Sainsbury's Bank adding £21 million of income, partly offset by the impact of base rate cuts and the mix shift from non-interest bearing to interest bearing balances.
 
-
Net interest margin was 32 basis points higher than H1 2024 largely reflecting the factors noted above.
 
-
Other operating expenses were £46 million, or 3.2%, lower than H1 2024 reflecting lower severance and property exit costs and a 6.3% reduction in headcount. This was partially offset by the impact of costs associated with the acquisition of balances from Sainsbury's Bank and timing of FCA regulatory fees.
 
-
An impairment charge of £226 million, compared with a £122 million charge in H1 2024, largely driven by the impact of balances acquired from Sainsbury's Bank.
 
-
Net loans to customers increased by £5.9 billion, or 2.8%, in H1 2025 driven by £3.4 billion higher mortgage balances. Personal advances increased by £1.4 billion, or 17.3% and credit card balances increased £1.3 billion, or 18.6% in H1 2025, reflecting the impact of balances acquired from Sainsbury's Bank and underlying credit card growth.
 
-
Customer deposits increased by £1.8 billion, or 0.9%, in H1 2025, driven by overall personal market growth, and £2.4 billion of savings balances acquired from Sainsbury's Bank, partly offset by seasonal tax payments.
 
-
RWAs increased by £3.9 billion, or 6.0%, in H1 2025 primarily due to the impact of balances acquired from Sainsbury's Bank, the annual update to operational risk, model updates and book movements.
 
 
 
Q2 2025 performance
 
-
Total income was £54 million or 3.5% higher than Q1 2025 reflecting the impact of balances acquired from Sainsbury's Bank, deposit margin expansion, and the impact of one additional day in the quarter.
 
-
Net interest margin was 1 basis point higher than Q1 2025 largely reflecting the factors noted above, offset by the flow through impact of new mortgage lending in Q1 2025, ahead of the increase in Stamp Duty Land Tax on 1 April 2025.
 
-
Other operating expenses were £57 million, or 8.4%, higher than Q1 2025 reflecting the impact of costs associated with the acquisition of balances from Sainsbury's Bank, FCA regulatory fees, pay award and National Insurance increase, and higher property exit costs, partly offset by the non-repeat of the Q1 2025 Bank of England levy.
 
-
An impairment charge of £117 million, compared with a £109 million charge in Q1 2025, including £81 million impact of balances acquired from Sainsbury's Bank offset by modelling related releases.
 
-
Net loans to customers increased by £3.9 billion, or 1.9%, in Q2 2025. Personal advances increased £1.3 billion, or 15.9%, including £1.2 billion of balances acquired from Sainsbury's Bank, whilst credit cards increased £1.3 billion or 18.6%, including £1.0 billion of balances acquired from Sainsbury's Bank. Mortgages increased by £1.4 billion in the quarter.
 
-
Customer deposits increased by £0.9 billion, or 0.5%, in Q2 2025 reflecting £2.4 billion of savings balances acquired from Sainsbury's Bank, partly offset by lower current account balances.
 
-
RWAs increased by £2.6 billion, or 3.9%, in Q2 2025 primarily due to the impact of balances acquired from Sainsbury's Bank, model updates and book movements.
 
Business performance summary continued
 
Private Banking & Wealth Management(1)
 
Half year ended
 
Quarter ended
 
30 June
30 June
 
30 June
31 March
30 June
 
2025
2024
 
2025
2025
2024
 
£m
£m
 
£m
£m
£m
Total income
539
444
 
274
265
236
   of which: AUMA income (2)
144
130
 
72
72
68
Operating expenses
(359)
(356)
 
(172)
(187)
(175)
   of which: Other operating expenses
(358)
(355)
 
(171)
(187)
(175)
Impairment (losses)/releases
(1)
11
 
-
(1)
5
Operating profit
179
99
 
102
77
66
 
 
 
 
 
 
 
Return on equity (2)
19.8%
10.5%
 
22.5%
17.1%
14.4%
Net interest margin (2)
2.57%
2.18%
 
2.56%
2.59%
2.30%
Cost:income ratio 
 
 
 
 
 
 
   (excl. litigation and conduct) (2)
66.4%
80.0%
 
62.4%
70.6%
74.2%
Loan impairment rate (2)
1bp
(12bps)
 
-
2bps
(11bps)
AUMA net flows (£bn) (2)
2.1
1.3
 
1.3
0.8
1.0
 
 
 
 
 
 
 
 
 
 
 
As at
 
 
 
 
30 June
31 March
31 December
 
 
 
 
2025
2025
2024
 
 
 
 
£bn
£bn
£bn
Net loans to customers (amortised cost)
 
 
 
18.6
18.4
18.2
Customer deposits
 
 
 
41.3
41.2
42.4
Assets under management (AUM) (2)
 
39.0
36.7
37.0
Assets under administration (AUA) (2)
 
12.8
11.8
11.9
Total assets under management and administration (AUMA) (2)
 
51.8
48.5
48.9
Total combined assets and liabilities (CAL) (2,3)
 
110.4
106.9
108.4
RWAs
 
11.5
11.3
11.0
 
(1)     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.
 
(2)     Refer to the Non-IFRS financial measures appendix for details of basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.
 
(3)     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 H1 2025, Private Banking & Wealth Management continued to deliver a strong performance with an operating profit of £179 million, return on equity of 19.8% and cost:income ratio of 66.4%. We have seen growth across AUMAs, lending and deposits in the quarter. In response to client demand, we have introduced digital auto-renewal functionality for fixed-term deposits within the Coutts app, enabling clients optionality and convenience.
 
Private Banking & Wealth Management provided £0.2 billion of climate and sustainable funding and financing in H1 2025, principally in relation to mortgages on residential properties with an EPC rating of A or B and wholesale transactions.
 
 
H1 2025 performance
 
-
Total income was £95 million, or 21.4%, higher than H1 2024 primarily reflecting balance growth across deposits, lending and AUMA, and deposit margin expansion.
 
-
Net interest margin was 39 basis points higher than H1 2024 largely reflecting deposit margin expansion and growth across lending and deposits.
 
-
Other operating expenses were £3 million, or 0.8%, higher than H1 2024 primarily reflecting higher investment costs and one off items.
 
-
An impairment charge of £1 million in H1 2025, compared with an £11 million release in H1 2024, largely reflecting the non-repeat of good book releases in the prior year, with Stage 3 charges remaining at low levels.
 
-
CAL was £2 billion, or 1.8%, higher in H1 2025, supported by growth in AUMA and lending balances, partly offset by lower deposit balances.
 
-
Net loans to customers were £0.4 billion, or 2.2%, higher in H1 2025 driven by higher commercial loan balances, due to strong client engagement and competitive pricing strategies.
 
-
Customer deposits decreased by £1.1 billion, or 2.6%, in H1 2025 largely reflecting seasonal tax payments and outflows of transitory balances.
 
-
AUMA balances increased by £2.9 billion in H1 2025 primarily driven by AUM net inflows of £1.5 billion, AUA net inflows of £0.2 billion, and Cushon net inflows of £0.3 billion supported by positive market movements of £0.8 billion. AUM net flows as a percentage of opening balances are 8.1% on an annualised basis.
 
Q2 2025 performance
 
-
Total income was £9 million, or 3.4%, higher than Q1 2025 primarily reflecting an additional day in the quarter and the impact of higher fee income.
 
-
Net interest margin was 3 basis points lower than Q1 2025 largely reflecting changes in product mix.
 
-
Other operating expenses were £16 million, or 8.6%, lower than Q1 2025 primarily reflecting the non-repeat of the Q1 2025 Bank of England levy and lower severance costs.
 
-
CAL was £3.5 billion, or 3.3%, higher than Q1 2025 due to increases in AUMA, deposits and lending balances.
 
-
Net loans to customers were £0.2 billion, or 1.1%, higher than Q1 2025 driven by an increase in commercial loans.
 
-
Customer deposits were £0.1 billion, or 0.2%, higher than Q1 2025 as a strong performance on instant access was partially offset by a decrease in current accounts.
 
-
AUMA balances increased by £3.3 billion in the quarter primarily driven by AUM net inflows of £0.7 billion, AUA net inflows of £0.4 billion and Cushon net inflows of £0.1 billion, along with positive market movements of £2.0 billion. AUM net flows as a percentage of opening balances are 7.6% on an annualised basis.
 
Business performance summary continued
 
Commercial & Institutional
 
Half year ended
 
Quarter ended
 
30 June
30 June
 
30 June
31 March
30 June
 
2025
2024
 
2025
2025
2024
 
£m
£m
 
£m
£m
£m
Net interest income
2,955
2,543
 
1,496
1,459
1,297
Non-interest income
1,334
1,257
 
651
683
644
Total income
4,289
3,800
 
2,147
2,142
1,941
 
 
 
 
 
 
 
Operating expenses
(2,151)
(2,150)
 
(1,107)
(1,044)
(1,099)
   of which: Other operating expenses
(2,062)
(2,073)
 
(1,047)
(1,015)
(1,053)
Impairment (losses)/releases
(154)
57
 
(76)
(78)
96
Operating profit
1,984
1,707
 
964
1,020
938
 
 
 
 
 
 
 
Return on equity (1)
18.6%
16.2%
 
17.9%
19.3%
17.8%
Net interest margin (1)
2.33%
2.10%
 
2.35%
2.32%
2.12%
Cost:income ratio 
 
 
 
 
 
 
   (excl. litigation and conduct) (1)
48.1%
54.6%
 
48.8%
47.4%
54.3%
Loan impairment rate (1)
21bps
(8bps)
 
20bps
22bps
(28bps)
 
 
 
 
 
 
 
 
 
 
 
As at
 
 
 
 
30 June
31 March
31 December
 
 
 
 
2025
2025
2024
 
 
 
 
£bn
£bn
£bn
Net loans to customers (amortised cost)
 
 
 
147.2
143.1
141.9
Customer deposits
 
197.9
196.5
194.1
Funded assets (1)
 
343.1
336.1
321.6
RWAs
 
 
 
107.8
107.3
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 H1 2025, Commercial & Institutional continued to deliver a strong performance in income and operating profit, supporting a return on equity of 18.6%, an increase from 16.2% in H1 2024. We saw another quarter of higher demand for FX risk management against a backdrop of volatile markets, supporting income. We have supported sectors that are vital to the health and success of the UK economy, including continued support for Housing Associations, as we made strong progress on our commitment to provide £7.5 billion by the end of 2026 with £2.7 billion in H1 2025 and £6.8 billion delivered to date, and through our digital led Business Banking proposition grew gross new lending by 63% in H1 2025 compared to H1 2024. We have improved customer experience through our Bankline transformation, resulting in a significant take up of connected products.   
 
Commercial & Institutional provided £14.6 billion of climate and sustainable funding and financing in H1 2025 to support customers investing in the transition to net zero.
 
 
 
H1 2025 performance
 
-
Total income was £489 million, or 12.9%, higher than H1 2024 primarily reflecting strong customer activity across markets supporting higher trading income, customer lending growth and deposit margin expansion.
 
-
Net interest margin was 23 basis points higher than H1 2024 primarily reflecting deposit margin expansion.
 
-
Other operating expenses were £11 million, or 0.5%, lower than H1 2024 reflecting lower staff and non-staff costs.
 
-
An impairment charge of £154 million in H1 2025, compared with a £57 million release in H1 2024 reflecting lower good book releases and higher Stage 3 charges.
 
-
Net loans to customers increased by £5.3 billion, or 3.7%, in H1 2025 principally due to growth within Corporate & Institutions and Commercial Mid-market, partly offset by UK Government scheme repayments of £0.8 billion.
 
-
Customer deposits increased by £3.8 billion, or 2.0%, in H1 2025 largely reflecting growth within Corporate & Institutions(1).
 
-
RWAs increased by £3.1 billion, or 3.0%, in H1 2025 primarily driven by the annual update to operational risk, an increase in credit risk from book growth and an increase for CRD IV models, partly offset by lower market risk and continued RWA management activity.
 
Q2 2025 performance
 
-
Total income was £5 million, or 0.2%, higher than Q1 2025 primarily due to currency trading income and lending growth, deposit margin expansion, as well as the impact of an additional day in the quarter, partly offset by lower debt capital markets and fixed income trading income.
 
-
Net interest margin was 3 basis points higher than Q1 2025 primarily reflecting deposit margin expansion, partly offset by asset mix impacts.
 
-
Other operating expenses were £32 million, or 3.2%, higher than Q1 2025 primarily reflecting the impact of FCA fees and inflationary increases in staff costs, partly offset by the non-repeat of the Q1 2025 Bank of England levy.
 
-
An impairment charge of £76 million in Q2 2025 compared with a £78 million charge in Q1 2025 reflecting a reduction in post model adjustments, partly offset by an increase in Stage 3 charges.
 
-
Net loans to customers increased by £4.1 billion, or 2.9%, in Q2 2025 principally due to growth within Commercial Mid-market and Corporate & Institutions, partly offset by UK Government scheme repayments of £0.4 billion.
 
-
Customer deposits increased by £1.4 billion, or 0.7%, in Q2 2025 largely reflecting growth within Corporate & Institutions.
 
-
RWAs increased by £0.5 billion, or 0.5%, in Q2 2025 primarily driven by book growth and an increase for CRD IV models, partly offset by lower market risk and continued RWA management activity.
 
 
(1)     In addition, client transfers from Commercial Mid-market to Corporate & Institutions were undertaken with a value of £5.9 billion at the end of Q2 2025 with an equivalent value of £3.3 billion at Q4 2024.
 
 
 
Business performance summary continued
 
Central items & other
 
Half year ended
 
Quarter ended
 
30 June
30 June
 
30 June
31 March
30 June
 
2025
2024
 
2025
2025
2024
 
£m
£m
 
£m
£m
£m
Continuing operations
 
 
 
 
 
 
Total income
23
200
 
(10)
33
117
Operating expenses 
(85)
(81)
 
(18)
(67)
(34)
   of which: Other operating expenses
(69)
(71)
 
(13)
(56)
(10)
Impairment (losses)/releases
(1)
6
 
-
(1)
3
Operating (loss)/profit
(63)
125
 
(28)
(35)
86
 
 
 
 
 
 
As at
 
 
 
 
 
30 June
31 March
31 December
 
 
 
 
2025
2025
2024
 
 
 
 
£bn
£bn
£bn
Net loans to customers (amortised cost)
 
 
27.0
26.9
31.8
Customer deposits
 
 
 
1.0
1.2
2.2
RWAs
 
 
 
1.4
1.6
2.0
 
 
 
H1 2025 performance
-
Total income was £177 million lower than H1 2024 primarily reflecting lower gains on interest and FX risk management derivatives not in accounting hedge relationships.
 
-
Other operating expenses were £2 million, or 2.8%, lower than H1 2024.
 
-
Net loans to customers decreased by £4.8 billion, or 15%, in H1 2025 driven by reverse repo activity in Treasury.
 
-
Customer deposits of £1.0 billion decreased by £1.2 billion in H1 2025 primarily reflecting repo activity in Treasury.
 
Q2 2025 performance
 
-
Total income was £43 million lower than Q1 2025 primarily driven by lower Business Growth Fund profits and lower gains on interest and FX risk management derivatives not in accounting hedge relationships.
 
-
Other operating expenses were £43 million, or 77%, lower than Q1 2025 primarily due to one-off items including an HMRC tax credit and a VAT release.
 
-
Net loans to customers increased by £0.1 billion in Q2 2025 driven by reverse repo activity in Treasury.
 
-
Customer deposits decreased by £0.2 billion in Q2 2025 reflecting repo activity in Treasury.
 
 
 
 
Segment performance
 
Half year ended 30 June 2025
 
 
Private Banking
 
 
 
 
Retail
& Wealth
Commercial
Central items
Total NatWest
 
Banking
Management (2)
& Institutional
& other
Group
 
£m
£m
£m
£m
£m
Continuing operations
 
Income statement 
 
Net interest income
2,922
363
2,955
(120)
6,120
Own credit adjustments
-
-
3
-
3
Other non-interest income
212
176
1,331
143
1,862
Total income 
3,134
539
4,289
23
7,985
Direct expenses
(396)
(122)
(782)
(2,600)
(3,900)
Indirect expenses
(1,015)
(236)
(1,280)
2,531
-
Other operating expenses
(1,411)
(358)
(2,062)
(69)
(3,900)
Litigation and conduct costs
(12)
(1)
(89)
(16)
(118)
Operating expenses
(1,423)
(359)
(2,151)
(85)
(4,018)
Operating profit/(loss) before impairment losses
1,711
180
2,138
(62)
3,967
Impairment losses
(226)
(1)
(154)
(1)
(382)
Operating profit/(loss)
1,485
179
1,984
(63)
3,585
 
 
 
 
 
 
Income excluding notable items (1)
3,134
539
4,286
3
7,962
 
 
 
 
 
 
Additional information
 
Return on Tangible Equity (1)
na
na
na
na
18.1%
Return on equity (1)
23.8%
19.8%
18.6%
nm
na
Cost:income ratio (excl. litigation and conduct) (1)
45.0%
66.4%
48.1%
nm
48.8%
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)
21bps
1bp
21bps
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)
4.31%
4.78%
6.12%
nm
nm
Third party customer funding rate (1)
(1.83%)
(2.82%)
(1.65%)
nm
nm
Average interest earning assets (£bn) (1)
228.2
28.4
255.4
na
542.4
Net interest margin (1)
2.58%
2.57%
2.33%
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.
(2)     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.
 
Segment performance continued
 
Half year ended 30 June 2024
 
 
Private Banking
 
 
 
 
Retail
& Wealth
Commercial
Central items
Total NatWest
 
Banking
Management (2)
& Institutional
& other
Group
 
£m
£m
£m
£m
£m
Continuing operations
 
 
 
 
 
Income statement 
 
Net interest income
2,475
285
2,543
105
5,408
Own credit adjustments
-
-
(7)
-
(7)
Other non-interest income
215
159
1,264
95
1,733
Total income 
2,690
444
3,800
200
7,134
Direct expenses
(381)
(126)
(764)
(2,685)
(3,956)
Indirect expenses
(1,076)
(229)
(1,309)
2,614
-
Other operating expenses
(1,457)
(355)
(2,073)
(71)
(3,956)
Litigation and conduct costs
(13)
(1)
(77)
(10)
(101)
Operating expenses
(1,470)
(356)
(2,150)
(81)
(4,057)
Operating profit before impairment losses/releases 
1,220
88
1,650
119
3,077
Impairment (losses)/releases
(122)
11
57
6
(48)
Operating profit
1,098
99
1,707
125
3,029
 
 
Income excluding notable items (1)
2,690
444
3,807
63
7,004
 
 
Additional information
 
 
 
 
 
Return on Tangible Equity (1)
na
na
na
na
16.4%
Return on equity (1)
18.4%
10.5%
16.2%
nm
na
Cost:income ratio (excl. litigation and conduct) (1)
54.2%
80.0%
54.6%
nm
55.5%
Total assets (£bn)
226.5
27.2
381.9
54.7
690.3
Funded assets (£bn) (1)
226.5
27.2
315.5
53.6
622.8
Net loans to customers - amortised cost (£bn)
203.3
18.1
133.9
24.0
379.3
Loan impairment rate (1)
12bps
(12bps)
(8bps)
nm
3bps
Impairment provisions (£bn)
(1.7)
(0.1)
(1.5)
-
(3.3)
Impairment provisions - Stage 3 (£bn)
(1.0)
-
(0.9)
(0.1)
(2.0)
Customer deposits (£bn)
191.5
39.5
194.2
7.8
433.0
Risk-weighted assets (RWAs) (£bn)
62.3
11.0
104.9
2.6
180.8
RWA equivalent (RWAe) (£bn)
63.1
11.0
106.7
3.1
183.9
Employee numbers (FTEs - thousands)
12.6
2.2
12.8
33.0
60.6
Third party customer asset rate (1)
3.88%
4.99%
6.77%
nm
nm
Third party customer funding rate (1)
(2.08%)
(3.14%)
(1.93%)
nm
nm
Average interest earning assets (£bn) (1)
220.1
26.3
244.0
na
524.4
Net interest margin (1)
2.26%
2.18%
2.10%
na
2.07%
 
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.
(2)     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.
 
 
Segment performance continued
 
Quarter ended 30 June 2025
 
 
Private Banking
 
 
 
 
Retail
& Wealth
Commercial
Central items
Total NatWest
 
Banking
Management (2)
& 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
 
 
 
 
 
 
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.
 
(2)     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.
 
 
Segment performance continued
 
Quarter ended 31 March 2025
 
Private Banking
 
 
 
 
Retail
& Wealth
Commercial
Central items
Total NatWest
 
Banking
Management (2)
& Institutional
& other
Group
 
£m
£m
£m
£m
£m
Continuing operations
 
Income statement 
 
Net interest income
1,438
181
1,459
(52)
3,026
Own credit adjustments
-
-
6
-
6
Other non-interest income
102
84
677
85
948
Total income 
1,540
265
2,142
33
3,980
Direct expenses
(166)
(59)
(379)
(1,331)
(1,935)
Indirect expenses
(511)
(128)
(636)
1,275
-
Other operating expenses
(677)
(187)
(1,015)
(56)
(1,935)
Litigation and conduct costs
(4)
-
(29)
(11)
(44)
Operating expenses
(681)
(187)
(1,044)
(67)
(1,979)
Operating profit/(loss) before impairment losses
859
78
1,098
(34)
2,001
Impairment losses
(109)
(1)
(78)
(1)
(189)
Operating profit/(loss)
750
77
1,020
(35)
1,812
 
 
Income excluding notable items (1)
1,540
265
2,136
11
3,952
 
 
Additional information
 
 
 
 
 
Return on Tangible Equity (1)
na
na
na
na
18.5%
Return on equity (1)
24.5%
17.1%
19.3%
nm
na
Cost:income ratio (excl. litigation and conduct) (1)
44.0%
70.6%
47.4%
nm
48.6%
Total assets (£bn)
234.3
28.9
397.9
48.9
710.0
Funded assets (£bn) (1)
234.3
28.9
336.1
47.9
647.2
Net loans to customers - amortised cost (£bn)
210.4
18.4
143.1
26.9
398.8
Loan impairment rate (1)
21bps
2bps
22bps
nm
19bps
Impairment provisions (£bn)
(1.9)
(0.1)
(1.5)
-
(3.5)
Impairment provisions - Stage 3 (£bn)
(1.1)
-
(1.0)
-
(2.1)
Customer deposits (£bn)
195.7
41.2
196.5
1.2
434.6
Risk-weighted assets (RWAs) (£bn)
66.8
11.3
107.3
1.6
187.0
RWA equivalent (RWAe) (£bn)
67.6
11.3
108.5
2.1
189.5
Employee numbers (FTEs - thousands)
11.9
2.2
12.8
32.5
59.4
Third party customer asset rate (1)
4.29%
4.83%
6.24%
nm
nm
Third party customer funding rate (1)
(1.87%)
(2.90%)
(1.71%)
nm
nm
Average interest earning assets (£bn) (1)
226.5
28.4
255.2
na
541.6
Net interest margin (1)
2.58%
2.59%
2.32%
na
2.27%
 
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.
(2)     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.
 
Segment performance continued
 
Quarter ended 30 June 2024
 
Private Banking
 
 
 
 
Retail
& Wealth
Commercial
Central items
Total NatWest
 
Banking
Management (2)
& Institutional
& other
Group
 
£m
£m
£m
£m
£m
Continuing operations
 
 
 
 
 
Income statement 
 
Net interest income
1,259
151
1,297
50
2,757
Own credit adjustments
-
-
(2)
-
(2)
Other non-interest income
106
85
646
67
904
Total income 
1,365
236
1,941
117
3,659
Direct expenses
(192)
(65)
(380)
(1,291)
(1,928)
Indirect expenses
(498)
(110)
(673)
1,281
-
Other operating expenses
(690)
(175)
(1,053)
(10)
(1,928)
Litigation and conduct costs
(7)
-
(46)
(24)
(77)
Operating expenses
(697)
(175)
(1,099)
(34)
(2,005)
Operating profit before impairment losses/releases 
668
61
842
83
1,654
Impairment (losses)/releases
(59)
5
96
3
45
Operating profit
609
66
938
86
1,699
 
 
Income excluding notable items (1)
1,365
236
1,943
46
3,590
 
 
Additional information
 
 
 
 
 
Return on Tangible Equity (1)
na
na
na
na
18.5%
Return on equity (1)
20.3%
14.4%
17.8%
nm
na
Cost:income ratio (excl. litigation and conduct) (1)
50.5%
74.2%
54.3%
nm
52.7%
Total assets (£bn)
226.5
27.2
381.9
54.7
690.3
Funded assets (£bn) (1)
226.5
27.2
315.5
53.6
622.8
Net loans to customers - amortised cost (£bn)
203.3
18.1
133.9
24.0
379.3
Loan impairment rate (1)
12bps
(11bps)
(28bps)
nm
(5bps)
Impairment provisions (£bn)
(1.7)
(0.1)
(1.5)
-
(3.3)
Impairment provisions - Stage 3 (£bn)
(1.0)
-
(0.9)
(0.1)
(2.0)
Customer deposits (£bn)
191.5
39.5
194.2
7.8
433.0
Risk-weighted assets (RWAs) (£bn)
62.3
11.0
104.9
2.6
180.8
RWA equivalent (RWAe) (£bn)
63.1
11.0
106.7
3.1
183.9
Employee numbers (FTEs - thousands)
12.6
2.2
12.8
33.0
60.6
Third party customer asset rate (1)
3.97%
5.01%
6.73%
nm
nm
Third party customer funding rate (1)
(2.10%)
(3.15%)
(1.93%)
nm
nm
Average interest earning assets (£bn) (1)
219.6
26.5
246.0
na
527.6
Net interest margin (1)
2.31%
2.30%
2.12%
na
2.10%
 
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.
 
(2)       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.
 

Risk and capital management
Certain disclosures in the Risk and capital management section are within the scope of EY's review report and are marked as 'reviewed' in the section header.
 
Credit risk
Credit risk is the risk that customers, counterparties or issuers fail to meet a contractual obligation to settle outstanding amounts.
 
Economic loss drivers (reviewed)
Introduction
 
The portfolio segmentation and selection of economic loss drivers for IFRS 9 follows the approach used in stress testing. The stress models for each portfolio segment (defined by product or asset class and where relevant, industry sector and region) are based on a selected, small number of economic variables that best explain the movements in portfolio loss rates. The process to select economic loss drivers involves empirical analysis and expert judgement.
 
The most significant economic loss drivers for material portfolios are shown in the table below:
Portfolio
Economic loss drivers
Personal mortgages
Unemployment rate, sterling swap rate, house price index, real wage
Personal unsecured
Unemployment rate, sterling swap rate, real wage
Corporates
Stock price index, gross domestic product (GDP)
Commercial real estate
Stock price index, commercial property price index, GDP
 
Economic scenarios
At 30 June 2025, the range of anticipated future economic conditions was defined by a set of four internally developed scenarios and their respective probabilities. In addition to the base case, they comprised upside, downside and extreme downside scenarios.
 
For 30 June 2025, the four scenarios were deemed appropriate in capturing the uncertainty in economic forecasts and the non-linearity in outcomes under different scenarios. These four scenarios were developed to provide sufficient coverage to current risks faced by the economy and consider varying outcomes across the labour market, inflation, interest rate, asset price and economic growth, around which there remains pronounced levels of uncertainty.
 
Since 31 December 2024, the near-term economic growth outlook has weakened. This was mainly due to the weaker economic performance in the second half of 2024 and the drag from international trade policy related uncertainty. Inflation has risen, with underlying price pressure remaining firm, particularly on services inflation. As a result, inflation is assumed to remain a little higher than 3% through most of 2025, taking longer to fall back to the target level of 2%. The labour market has continued to cool. The unemployment rate peak is now assumed to be modestly higher than at 31 December 2024, but it is still expected to remain low. The Bank of England is expected to continue cutting interest rates in a 'gradual and careful' manner with an assumed terminal rate in the base case of 3.5%. The housing market continues to show signs of resilience, with prices still expected to grow modestly.
 
 
High level narrative - potential developments, vulnerabilities and risks
 
 
 
 
 
Growth
 
Outperformance sustained - the economy continues to grow at a robust pace
 
Upside
 
Steady growth - staying close to trend pace but with some near-term slowdown
 
Base case
 
Stalling - lagged effect of higher inflation and cautious consumer amidst global trade policy and geopolitical uncertainty stalls the rebound
 
Downside
 
Extreme stress - extreme fall in GDP, with policy support to facilitate sharp recovery
 
Extreme downside
 
 
 
 
 
Inflation
 
Sticky - strong growth and/or wage policies and/or interest rate cuts keep services inflation well above target
 
Upside
 
Battle won - Beyond near-term volatility, downward drift in services inflation continues, ensuring 2% target is met on a sustained basis
 
Base case
 
Structural factors - sustained bouts of energy, food and goods price inflation on geopolitics/deglobalisation
 
Downside
 
Close to deflation - inflationary pressures diminish amidst pronounced weakness in demand
 
Extreme downside
 
 
 
 
Labour market
 
Tighter, still - job growth rebounds strongly, pushing unemployment back down to 3.5%
 
Upside
 
Cooling continues - gradual loosening prompts a gentle rise in unemployment (but remains low), job growth recovers
 
Base case
 
Job shedding - prolonged weakness in economy prompts redundancies, reduced hours, building slack
 
Downside
 
Depression - unemployment hits levels close to previous peaks amid severe stress
 
Extreme downside
 
 
 
Rates
short-term
Limited cuts - higher growth and inflation keeps the Monetary Policy Committee cautious
 
Upside
 
Steady - approximately one cut per quarter
 
Base case
 
Mid-cycle quickening - sharp declines through 2025 to support recovery
 
Downside
 
Sharp drop - drastic easing in policy to support a sharp deterioration in the economy
 
Extreme downside
 
 
Above consensus - 4%
 
Upside
 
Rates long-term
      Middle 3.5%
 
Base case
 
      Close to 2010s 1-2%/2.5%
 
Downside/Extreme downside
 
 
 
 
 
 
 
 
 
Risk and capital management continued
 
Credit risk continued
Economic loss drivers (reviewed)
Main macroeconomic variables 
The main macroeconomic variables for each of the four scenarios used for expected credit loss (ECL) modelling are set out in the table below.
 
 
30 June 2025
 
31 December 2024
 
 
Extreme
Weighted
 
 
Extreme
Weighted
 
Upside
Base case
Downside
downside
average
 
Upside
Base case
Downside
downside
average
Five-year summary
%
%
%
%
%
 
%
%
%
%
%
GDP
2.1
1.3
0.6
(0.1)
1.2
 
2.0
1.3
0.5
(0.2)
1.1
Unemployment rate
3.8
4.6
5.4
7.1
4.9
 
3.6
4.3
5.0
6.7
4.6
House price index
5.7
3.4
0.5
(4.3)
2.5
 
5.8
3.5
0.8
(4.3)
2.7
Commercial real estate price
6.1
2.0
(0.3)
(4.8)
1.8
 
5.4
1.2
(1.0)
(5.7)
1.1
Consumer price index
2.4
2.2
3.7
1.7
2.5
 
2.4
2.2
3.5
1.6
2.4
Bank of England base rate
4.1
3.6
2.5
1.2
3.2
 
4.4
4.0
3.0
1.6
3.6
Stock price index
5.2
3.8
2.6
0.7
3.5
 
6.3
5.0
3.4
1.1
4.5
World GDP
3.7
3.0
2.3
1.4
2.8
 
3.8
3.2
2.5
1.6
3.0
Probability weight
21.7
45.0
20.7
12.6
 
 
23.2
45.0
19.1
12.7
 
 
 
(1)       The five-year summary runs from 2025-2029 for 30 June 2025 and from 2024-2028 for 31 December 2024.
 
(2)       The table shows compound annual growth rate (CAGR) for GDP, average levels for the unemployment rate and Bank of England base rate and Q4 to Q4 CAGR for other parameters.
 
 
 
Risk and capital management continued
 
Credit risk continued
 
Economic loss drivers (reviewed)
 
Climate transition
Since 2023, NatWest Group explicitly includes assumptions about the changes in transition policy, expressed as an additional implicit sectoral carbon price, in the base case macroeconomic scenario. At 30 June 2025, this resulted in climate transition policy contributing £9 million to the total ECL, comparable with a contribution of £8 million at the end of 2024.
 
In 2025, NatWest Group has individually assessed 50 active and potential transition policies that have a significant impact on the cost of emissions and converted them into equivalent sectoral carbon prices, calculated as the cost per tonne of the emissions abated, as a result of each policy. This approach enables NatWest Group to estimate an aggregate macroeconomic impact of the transition policies, and as a result, ECL contribution.
 
NatWest Group and its customers have a dependency on timely and appropriate government policies to provide the necessary impetus for technology development and customer behaviour changes, to enable the UK's successful transition to net zero. Policy delays and the risks outlined in the UK CCC annual Progress Reports, if not adequately addressed in a timely manner, put at risk the UK's net zero transition and in turn, that of NatWest Group and its customers.
 
 
Probability weightings of scenarios
 
NatWest Group's quantitative approach to IFRS 9 multiple economic scenarios involves selecting a suitable set of discrete scenarios to characterise the distribution of risks in the economic outlook and assigning appropriate probability weights. This quantitative approach is used for 30 June 2025.
 
The approach involves comparing GDP paths for NatWest Group's scenarios against a set of 1,000 model runs, following which, a percentile in the distribution is established that most closely corresponded to the scenario. The probability weight for base case is set first based on judgement, while probability weights for the alternate scenarios are assigned based on these percentiles scores.
 
The weights were broadly comparable to those used at 31 December 2024 but with slightly more downside skew. The assigned probability weights were judged to be aligned with the subjective assessment of balance of the risks in the economy as global trade policy uncertainty increased, and geopolitical risks remained elevated. US trade policy remains a key area of uncertainty for the economy. NatWest Group is comfortable that the adjustments made to the base case view reflect much of the adverse economic impacts from tariffs, while the downside scenarios give good coverage to the potential for more significant economic damage, including higher inflation and downturns in business investment and consumer spending. Given the balance of risks that the economy is exposed to, NatWest Group judges it appropriate that downside-biased scenarios have higher combined probability weights than the upside-biased scenario. It presents good coverage to the range of outcomes assumed in the scenarios, including the potential for a robust recovery on the upside and exceptionally challenging outcomes on the downside. A 21.7% weighting was applied to the upside scenario, a 45.0% weighting applied to the base case scenario, a 20.7% weighting applied to the downside scenario and a 12.6% weighting applied to the extreme downside scenario.
 
 
 
Risk and capital management continued
 
Credit risk continued
 
Economic loss drivers (reviewed)
 
Annual figures
 
 
 
 
 
 
 
 
Extreme
Weighted
 
Upside
Base case
Downside
downside
average
GDP - annual growth
%
%
%
%
%
2025
1.4
1.1
1.0
(0.8)
0.9
2026
2.9
1.1
(0.2)
(3.6)
0.6
2027
2.9
1.5
(0.4)
1.3
1.4
2028
1.8
1.4
0.9
1.4
1.4
2029
1.6
1.4
1.6
1.4
1.5
2030
1.5
1.4
1.5
1.4
1.4
 
 
Unemployment rate
 
 - annual average
 
 
 
 
 
2025
4.5
4.6
4.7
4.8
4.6
2026
3.7
4.7
5.4
7.0
4.9
2027
3.5
4.6
5.8
8.4
5.1
2028
3.5
4.5
5.6
7.9
4.9
2029
3.6
4.5
5.3
7.3
4.8
2030
3.6
4.4
5.1
6.7
4.7
 
 
House price index
 
 - four quarter change 
 
 
 
 
 
2025
4.1
3.5
(0.3)
(2.6)
2.1
2026
7.9
3.4
(2.2)
(11.9)
1.4
2027
5.8
3.4
(2.7)
(15.9)
0.8
2028
5.2
3.4
3.6
4.2
4.0
2029
5.6
3.4
4.3
6.5
4.4
2030
5.5
3.4
4.2
6.2
4.3
 
 
Commercial real estate price
 
 - four quarter change 
 
 
 
 
 
2025
10.6
2.3
(2.0)
(10.5)
1.6
2026
6.3
2.3
(6.5)
(24.8)
(1.5)
2027
5.7
2.6
2.2
4.1
3.4
2028
4.7
1.5
2.6
5.8
2.9
2029
3.3
1.6
2.5
5.5
2.6
2030
3.0
1.4
2.5
5.3
2.4
 
 
 
 
 
Extreme
Weighted
Consumer price index
Upside
Base case
Downside
downside
average
 - four quarter change
%
%
%
%
%
2025
3.2
2.9
4.2
2.4
3.2
2026
2.7
2.2
5.8
0.7
2.9
2027
2.3
2.0
3.0
1.6
2.2
2028
2.0
2.0
2.8
2.0
2.2
2029
2.0
2.0
2.5
2.0
2.1
2030
2.0
2.0
2.5
2.0
2.1
 
 
Bank of England base rate
 
 - annual average
 
 
 
 
 
2025
4.32
4.21
4.07
3.58
4.12
2026
4.00
3.52
2.25
0.11
2.93
2027
4.00
3.50
2.00
0.30
2.89
2028
4.00
3.50
2.00
0.64
2.94
2029
4.00
3.50
2.00
1.47
3.04
2030
4.00
3.50
2.44
2.03
3.20
 
 
Stock price index
 
 - four quarter change
 
 
 
 
 
2025
9.7
6.1
(3.1)
(19.3)
1.8
2026
5.7
3.3
(0.9)
(9.5)
1.7
2027
4.0
3.3
5.8
14.0
4.9
2028
3.5
3.3
5.8
12.3
4.7
2029
3.1
3.3
5.8
11.0
4.5
2030
3.3
3.3
5.8
10.1
4.5
 

 
Risk and capital management continued
 
Credit risk continued

 
Economic loss drivers (reviewed)
 
Worst points
 
 
 
Extreme
 
Weighted
 
Downside
 
downside
 
average
30 June 2025
%
Quarter
%
Quarter
%
GDP
-
Q2 2027
(4.8)
Q2 2026
-
Unemployment rate - peak
5.8
Q2 2027
8.5
Q3 2027
5.1
House price index
(5.0)
Q4 2027
(28.0)
Q1 2028
-
Commercial real estate price
(8.4)
Q4 2026
(33.5)
Q1 2027
-
Consumer price index
 
 
 
 
 
   - highest four quarter change
6.1
Q3 2026
3.2
Q2 2025
3.3
Bank of England base rate
 
 
 
 
 
   - extreme level
2.0
Q1 2025
0.1
Q1 2025
2.9
Stock price index
(6.6)
Q2 2026
(32.1)
Q2 2026
-
 
 
31 December 2024
 
 
 
 
 
GDP
-
Q1 2024
(4.1)
Q4 2025
-
Unemployment rate - peak
5.6
Q4 2026
8.5
Q1 2027
4.9
House price index
(1.9)
Q2 2027
(25.6)
Q3 2027
-
Commercial real estate price
(10.5)
Q2 2026
(35.0)
Q3 2026
(1.8)
Consumer price index
 
 
 
 
 
   - highest four quarter change
6.1
Q1 2026
3.5
Q1 2024
3.5
Bank of England base rate
 
 
 
 
 
   - extreme level
2.0
Q1 2024
0.1
Q1 2024
2.9
Stock price index
(0.2)
Q4 2025
(27.4)
Q4 2025
-
 
(1)     The figures show falls relative to the starting period for GDP, house price index, commercial real estate price and stock price index. For unemployment rate, it shows highest value through the scenario horizon. For consumer price index, it shows highest annual percentage change. For Bank of England base rate, it shows highest or lowest value through the horizon. The calculations are performed over five years, with a starting point of Q4 2024 for 30 June 2025 scenarios and Q4 2023 for 31 December 2024 scenarios.
 
 
Governance and post model adjustments (reviewed)
 
The IFRS 9 PD, EAD and LGD models are subject to NatWest Group's model risk policy that stipulates periodic model monitoring, periodic re-validation and defines approval procedures and authorities according to model materiality. Various post model adjustments were applied where management judged they were necessary to ensure an adequate level of overall ECL provision. All post model adjustments were subject to review, challenge and approval through model or provisioning committees.
 
Post model adjustments will remain a key focus area of NatWest Group's ongoing ECL adequacy assessment process. A holistic framework has been established including reviewing a range of economic data, external benchmark information and portfolio performance trends with a particular focus on segments of the portfolio (both Personal and Non-Personal) that are likely to be more susceptible to high inflation, high interest rates and supply chain disruption.
 
 
Risk and capital management continued
 
 
 
Credit risk continued
 
Governance and post model adjustments (reviewed)
 
ECL post model adjustments
 
The table below shows ECL post model adjustments.
 
Retail Banking
Private Banking & 
Commercial &
 
 
Mortgages
Other
Wealth Management
Institutional
Total
30 June 2025
£m
£m
£m
£m
£m
Deferred model calibrations
-
-
1
16
17
Economic uncertainty
55
30
7
142
234
Other adjustments
-
-
-
18
18
Total
55
30
8
176
269
Of which:
 
 
 
 
 
 Stage 1
40
12
4
76
132
 Stage 2
15
18
4
100
137
 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 June 2025, the post model adjustments for economic uncertainty decreased to £85 million (31 December 2024 - £112 million). This reduction primarily reflected a revision to the cost of living post model adjustment, which reduced to £85 million (31 December 2024 - £105 million). This change was based on an updated review of back-testing default outcomes for higher-risk segments, consistent with the reduction in rate shock risk in the mortgage portfolio. Despite ongoing economic and geopolitical uncertainty, the Retail Banking portfolios demonstrated resilience, supported by a robust risk appetite. The cost of living post model adjustment continued to address the risk in segments of the Retail Banking portfolio that were more susceptible to affordability challenges. It focused on key affordability factors, including lower-income customers in fuel poverty, over-indebted borrowers, and customers vulnerable to higher mortgage rates.
 
-
Commercial & Institutional - As at 30 June 2025, the post model adjustment for economic uncertainty decreased to £142 million (31 December 2024 - £179 million). The inflation, supply chain and liquidity post model adjustment of £122 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. The £27 million decrease reflected improved risk metrics along with reduced exposure in the portfolio subject to the adjustment.
 
Risk and capital management continued
 
Credit risk continued
 
Measurement uncertainty and ECL sensitivity analysis (reviewed)
 
The recognition and measurement of ECL is complex and involves the use of significant judgement and estimation, particularly in times of economic volatility and uncertainty. This includes the formulation and incorporation of multiple forward-looking economic conditions into ECL to meet the measurement objective of IFRS 9. The ECL provision is sensitive to the model inputs and economic assumptions underlying the estimate.
 
The impact arising from the base case, upside, downside and extreme downside scenarios was simulated.
 
In the simulations, NatWest Group has assumed that the economic macro variables associated with these scenarios replace the existing base case economic assumptions, giving them a 100% probability weighting and therefore serving as a single economic scenario.
 
These scenarios were applied to all modelled portfolios in the analysis below, with the simulation impacting both PDs and LGDs. Post model adjustments included in the ECL estimates that were modelled were sensitised in line with the modelled ECL movements, but those that were judgemental in nature, primarily those for deferred model calibrations and economic uncertainty, were not (refer to the Governance and post model adjustments section) on the basis these would be re-evaluated by management through ECL governance for any new economic scenario outlook and not be subject to an automated calculation. As expected, the scenarios create differing impacts on ECL by portfolio and the impacts are deemed reasonable.
 
In this simulation, it is assumed that existing modelled relationships between key economic variables and loss drivers hold, but in practice other factors would also have an impact, for example, potential customer behaviour changes and policy changes by lenders that might impact on the wider availability of credit.
 
The focus of the simulations is on ECL provisioning requirements on performing exposures in Stage 1 and Stage 2. The simulations are run on a stand-alone basis and are independent of each other; the potential ECL impacts reflect the simulated impact at 30 June 2025.
 
Scenario impacts on significant increase in credit risk (SICR) should be considered when evaluating the ECL movements of Stage 1 and Stage 2. In all scenarios the total exposure was the same but exposure by stage varied in each scenario.
 
Stage 3 provisions are not subject to the same level of measurement uncertainty - default is an observed event as at the balance sheet date. Stage 3 provisions therefore were not considered in this analysis.
 
NatWest Group's core criterion to identify a SICR is founded on PD deterioration. Under the simulations, PDs change and result in exposures moving between Stage 1 and Stage 2 contributing to the ECL impact.
 
 
 
Risk and capital management continued
 
Credit risk continued
 
Measurement uncertainty and ECL sensitivity analysis (reviewed)
 
 
 
Moderate
Moderate
Extreme
 
 
Base
upside
 downside
downside
30 June 2025
Actual
scenario
scenario
scenario
scenario
Stage 1 modelled loans (£m)
 
 
 
 
 
Retail Banking - mortgages
171,904
173,172
175,663
170,228
159,515
Retail Banking - unsecured
10,677
10,796
11,132
10,502
9,508
Non-Personal - property
29,450
29,539
29,587
29,444
27,053
Non-Personal - non-property
138,575
138,975
139,344
138,554
121,078
 
350,606
352,482
355,726
348,728
317,154
Stage 1 modelled ECL (£m)
 
 
 
 
 
Retail Banking - mortgages
50
50
50
48
41
Retail Banking - unsecured
227
231
224
227
210
Non-Personal - property
76
61
52
78
169
Non-Personal - non-property
192
170
160
195
311
 
545
512
486
548
731
Stage 1 coverage
 
 
 
 
 
Retail Banking - mortgages
0.03%
0.03%
0.03%
0.03%
0.03%
Retail Banking - unsecured
2.13%
2.14%
2.01%
2.16%
2.21%
Non-Personal - property
0.26%
0.21%
0.18%
0.26%
0.62%
Non-Personal - non-property
0.14%
0.12%
0.11%
0.14%
0.26%
 
0.16%
0.15%
0.14%
0.16%
0.23%
Stage 2 modelled loans (£m)
 
 
 
 
 
Retail Banking - mortgages
21,320
20,052
17,561
22,996
33,709
Retail Banking - unsecured
3,381
3,262
2,926
3,556
4,550
Non-Personal - property
3,206
3,117
3,069
3,212
5,603
Non-Personal - non-property
12,199
11,799
11,430
12,220
29,696
 
40,106
38,230
34,986
41,984
73,558
Stage 2 modelled ECL (£m)
 
 
 
 
 
Retail Banking - mortgages
51
46
38
57
99
Retail Banking - unsecured
374
358
310
398
530
Non-Personal - property
59
51
46
60
131
Non-Personal - non-property
246
223
199
251
519
 
730
678
593
766
1,279
Stage 2 coverage
 
 
 
 
 
Retail Banking - mortgages
0.24%
0.23%
0.22%
0.25%
0.29%
Retail Banking - unsecured
11.06%
10.97%
10.59%
11.19%
11.65%
Non-Personal - property
1.84%
1.64%
1.50%
1.87%
2.34%
Non-Personal - non-property
2.02%
1.89%
1.74%
2.05%
1.75%
 
1.82%
1.77%
1.69%
1.82%
1.74%
Stage 1 and Stage 2 modelled loans (£m)
 
 
 
 
 
Retail Banking - mortgages
193,224
193,224
193,224
193,224
193,224
Retail Banking - unsecured
14,058
14,058
14,058
14,058
14,058
Non-Personal - property
32,656
32,656
32,656
32,656
32,656
Non-Personal - non-property
150,774
150,774
150,774
150,774
150,774
 
390,712
390,712
390,712
390,712
390,712
 
 
 
 
Moderate
Moderate
Extreme
 
 
Base
upside
 downside
downside
30 June 2025
Actual
scenario
scenario
scenario
scenario
Stage 1 and Stage 2 modelled ECL (£m)
 
 
 
 
 
Retail Banking - mortgages
101
96
88
105
140
Retail Banking - unsecured
601
589
534
625
740
Non-Personal - property
135
112
98
138
300
Non-Personal - non-property
438
393
359
446
830
 
1,275
1,190
1,079
1,314
2,010
Stage 1 and Stage 2 coverage
 
 
 
 
 
Retail Banking - mortgages
0.05%
0.05%
0.05%
0.05%
0.07%
Retail Banking - unsecured
4.28%
4.19%
3.80%
4.45%
5.26%
Non-Personal - property
0.41%
0.34%
0.30%
0.42%
0.92%
Non-Personal - non-property
0.29%
0.26%
0.24%
0.30%
0.55%
 
0.33%
0.30%
0.28%
0.34%
0.51%
Reconciliation to Stage 1 and 
 
 
 
 
 
   Stage 2 ECL (£m)
 
 
 
 
 
ECL on modelled exposures
1,275
1,190
1,079
1,314
2,010
ECL on non-modelled exposures
114
115
115
115
115
Total Stage 1 and Stage 2 ECL (£m)
1,389
1,305
1,194
1,429
2,125
Variance to actual total Stage 1 and
 
 
 
 
 
   Stage 2 ECL (£m)
-
(84)
(195)
40
736
Reconciliation to Stage 1 and 
 
 
 
 
 
   Stage 2 flow exposures (£m)
 
 
 
 
 
Modelled loans
390,712
390,712
390,712
390,712
390,712
Non-modelled loans
23,392
23,392
23,392
23,392
23,392
Other asset classes
154,647
154,647
154,647
154,647
154,647
 
 
(1)     Variations in future undrawn exposure values across the scenarios are modelled. However, the exposure position reported is that used to calculate modelled ECL as at 30 June 2025 and therefore does not include variation in future undrawn exposure values.
 
(2)     Reflects ECL for all modelled exposure in scope for IFRS 9. The analysis excludes non-modelled portfolios and exposure relating to bonds and cash.
 
(3)     All simulations were run on a stand-alone basis and are independent of each other, with the potential ECL impact reflecting the simulated impact as at 30 June 2025. The simulations change the composition of Stage 1 and Stage 2 exposure but total exposure was unchanged under each scenario as the loan population was static.
 
(4)     Refer to the Economic loss drivers section for details of economic scenarios.
 
(5)     Refer to the NatWest Group 2024 Annual Report and Accounts for 31 December 2024 comparatives.
 
 

Risk and capital management continued
 
Credit risk continued
 

Measurement uncertainty and ECL adequacy (reviewed)
 
-
If the economics were as negative as observed in the extreme downside (i.e. 100% probability weighting), total Stage 1 and Stage 2 ECL was simulated to increase by £0.7 billion (approximately 53%). In this scenario, Stage 2 exposure increased significantly and was the key driver of the simulated ECL rise. The movement in Stage 2 balances in the other simulations was less significant.
 
-
In the Non-Personal portfolio, there was a significant increase in ECL under the extreme downside scenario. The Non-Personal property ECL increase was mainly due to commercial real estate prices which showed negative growth until 2026 and significant deterioration in the stock index. The non-property increase was mainly due to GDP contraction and significant deterioration in the stock index.
 
-
Given the continued economic uncertainty, NatWest Group utilised a framework of quantitative and qualitative measures to support the levels of ECL coverage. This included economic data, credit performance insights and problem debt trends. This was particularly important for consideration of post model adjustments.
 
-
As the effects of these economic risks evolve, there is a risk of further credit deterioration. However, the income statement effect of this should be mitigated by the forward-looking provisions retained on the balance sheet at 30 June 2025.
 
-
There are a number of key factors that could drive further downside to impairments, through deteriorating economic and credit metrics and increased stage migration as credit risk increases for more customers. Such factors which could impact the IFRS 9 models, include an adverse deterioration in unemployment, GDP and stock price index.
 
-
The newly acquired Sainsbury's Bank portfolio (£2.2 billion in Stage 1 at 30 June 2025) with associated ECL of £0.1 billion was not included in the modelled sensitivity analysis.
 
 

Movement in ECL provision
 
The table below shows the main ECL provision movements during H1 2025.
 
 
 
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
(27)
Changes in risk metrics and exposure: Stage 3
404
Judgemental changes: changes in post model adjustments for Stage 1,
 
   Stage 2 and Stage 3
(67)
Write-offs and other
(176)
At 30 June 2025
3,650
 
-
During H1 2025, overall ECL increased following Non-Personal Stage 3 charges and an increase in good book ECL in the Personal portfolio, driven by the portfolio acquisition from Sainsbury's Bank.
 
-
For the Non-Personal portfolio, ECL increased 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 portfolio, default inflows were broadly stable in H1 2025. However, Stage 3 ECL and stock increased on all unsecured portfolios, with reduced debt sale activity. There was a reduction of Stage 3 ECL on mortgages related to an enhancement to the application of the definition of default, resulting in a £0.4 billion migration of loans from Stage 3 back to the good book.
 
-
Judgemental ECL post model adjustments decreased to £269 million (31 December 2024 - £336 million) and represented 7.4% 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. Refer to the Governance and post model adjustments section for further details.
 

 
Risk and capital management continued
 
Credit risk - Banking activities
 
Introduction
 
This section details the credit risk profile of NatWest Group's banking activities.
 
Financial instruments within the scope of the IFRS 9 ECL framework (reviewed)
 
Refer to Note 7 to the consolidated financial statements for balance sheet analysis of financial assets that are classified as amortised cost or fair value through other comprehensive income (FVOCI), the starting point for IFRS 9 ECL framework assessment.
 
30 June 2025
 
31 December 2024
 
Gross
ECL
Net
 
Gross
ECL
Net
 
£bn
£bn
£bn
 
£bn
£bn
£bn
Balance sheet total gross amortised cost and FVOCI
588.2
 
 
 
567.2
 
 
In scope of IFRS 9 ECL framework
578.2
 
 
 
564.4
 
 
% in scope
98%
 
 
 
100%
 
 
Loans to customers - in scope - amortised cost
411.2
3.6
407.6
 
404.2
3.4
400.8
Loans to customers - in scope - FVOCI
0.1
-
0.1
 
-
-
-
Loans to banks - in scope - amortised cost
6.6
-
6.6
 
6.0
-
6.0
Total loans - in scope
417.9
3.6
414.3
 
410.2
3.4
406.8
  Stage 1
371.9
0.6
371.3
 
363.8
0.6
363.2
  Stage 2
40.2
0.7
39.5
 
40.5
0.8
39.7
  Stage 3
5.8
2.3
3.5
 
5.9
2.0
3.9
Other financial assets - in scope - amortised cost
117.5
-
117.5
 
116.4
-
116.4
Other financial assets - in scope - FVOCI
42.8
-
42.8
 
37.8
-
37.8
Total other financial assets - in scope
160.3
-
160.3
 
154.2
-
154.2
  Stage 1
159.5
-
159.5
 
153.4
-
153.4
  Stage 2
0.8
-
0.8
 
0.8
-
0.8
Out of scope of IFRS 9 ECL framework
10.0
na
10.0
 
2.8
na
2.8
Loans to customers - out of scope - amortised cost
(0.5)
na
(0.5)
 
(0.5)
na
(0.5)
Loans to banks - out of scope - amortised cost
0.8
na
0.8
 
0.1
na
0.1
Other financial assets - out of scope - amortised cost
9.4
na
9.4
 
3.2
na
3.2
Other financial assets - out of scope - FVOCI
0.3
na
0.3
 
-
na
-
 
na = not applicable
 
 
 
The assets outside the scope of the IFRS 9 ECL framework were as follows:
 
-
Settlement balances, items in the course of collection, cash balances and other non-credit risk assets of £10.0 billion (31 December 2024 - £3.3 billion). These were assessed as having no ECL unless there was evidence that they were defaulted.
 
-
Equity shares of £0.3 billion (31 December 2024 - £0.2 billion) as not within the IFRS 9 ECL framework by definition. 
 
-
Fair value adjustments on loans hedged by interest rate swaps, where the underlying loan was within the IFRS 9 ECL scope of £(0.4) billion (31 December 2024 - £(0.5) billion).
 
 
Contingent liabilities and commitments
Total contingent liabilities (including financial guarantees) and commitments within IFRS 9 ECL scope of £146.4 billion (31 December 2024 - £140.0 billion) comprised Stage 1 £135.7 billion (31 December 2024 - £129.8 billion); Stage 2 £9.9 billion (31 December 2024 - £9.4 billion); and Stage 3 £0.8 billion (31 December 2024 - £0.8 billion).
 
The ECL relating to off-balance sheet exposures was £0.1 billion (31 December 2024 - £0.1 billion). The total ECL in the remainder of the Credit risk section of £3.7 billion (31 December 2024 - £3.4 billion) included ECL for both on and off-balance sheet exposures.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Segment analysis - portfolio summary (reviewed)
 
The table below shows gross loans and ECL, by segment and stage, within the scope of the IFRS 9 ECL framework.
 
 
 
 
 
 
 
 
 
Of which:
 
 
 
 
 
 
 
Personal
 
Non-Personal
 
 
Private
 
 
 
 
 
Private
 
 
 
Private
 
 
 
 
Banking &
 
Central
 
 
 
Banking &
 
Central
 
Banking &
 
Central
 
Retail
Wealth 
Commercial
items
 
 
Retail
Wealth 
Commercial
items
 
Wealth 
Commercial
 items
 
Banking
Management
& Institutional
& other
Total
 
Banking
Management
& Institutional
& other
 
Management
& Institutional
& other
30 June 2025
£m
£m
£m
£m
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Loans - amortised cost and FVOCI (1,2)
 
Stage 1
188,562
17,514
134,858
30,941
371,875
 
188,562
13,991
2,225
-
 
3,523
132,633
30,941
Stage 2
24,437
843
14,857
56
40,193
 
24,437
362
41
9
 
481
14,816
47
Stage 3
3,006
318
2,496
3
5,823
 
3,006
233
43
3
 
85
2,453
-
Of which: individual
-
243
1,279
-
1,522
 
-
158
5
-
 
85
1,274
-
Of which: collective
3,006
75
1,217
3
4,301
 
3,006
75
38
3
 
-
1,179
-
Total 
216,005
18,675
152,211
31,000
417,891
 
216,005
14,586
2,309
12
 
4,089
149,902
30,988
ECL provisions (3)
 
Stage 1
360
15
258
15
648
 
360
3
2
-
 
12
256
15
Stage 2 
425
9
306
1
741
 
425
1
-
-
 
8
306
1
Stage 3
1,128
42
1,090
1
2,261
 
1,128
22
16
-
 
20
1,074
1
Of which: individual
-
42
569
-
611
 
-
22
5
-
 
20
564
-
Of which: collective
1,128
-
521
1
1,650
 
1,128
-
11
-
 
-
510
1
Total 
1,913
66
1,654
17
3,650
 
1,913
26
18
-
 
40
1,636
17
ECL provisions coverage (4)
 
Stage 1 (%)
0.19
0.09
0.19
0.05
0.17
 
0.19
0.02
0.09
-
 
0.34
0.19
0.05
Stage 2 (%)
1.74
1.07
2.06
1.79
1.84
 
1.74
0.28
-
-
 
1.66
2.07
2.13
Stage 3 (%)
37.52
13.21
43.67
33.33
38.83
 
37.52
9.44
37.21
-
 
23.53
43.78
-
Total 
0.89
0.35
1.09
0.05
0.87
 
0.89
0.18
0.78
-
 
0.98
1.09
0.05
Impairment (releases)/losses
 
ECL charge/(release) (5)
226
1
154
1
382
 
226
3
-
-
 
(2)
154
1
Stage 1
18
(5)
(80)
-
(67)
 
18
-
(1)
-
 
(5)
(79)
-
Stage 2
139
3
23
-
165
 
139
1
-
-
 
2
23
-
Stage 3
69
3
211
1
284
 
69
2
1
-
 
1
210
1
Of which: individual
-
3
191
-
194
 
-
2
-
-
 
1
191
-
Of which: collective
69
-
20
1
90
 
69
-
1
-
 
-
19
1
Total
     226 
             1 
           154 
          1 
      382 
 
      226 
              3 
             -   
        -   
 
            (2)
           154 
          1 
Amounts written-off 
94
1
97
-
192
 
94
1
-
-
 
-
97
-
Of which: individual
-
1
60
-
61
 
-
1
-
-
 
-
60
-
Of which: collective
94
-
37
-
131
 
94
-
-
-
 
-
37
-
For the notes to this table refer to the following page.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Segment analysis - portfolio summary (reviewed)
 
 
Of which:
 
Personal
 
Non-Personal
 
Private
 
 
 
 
 
Private
 
 
 
Private
 
 
 
Banking &
 
Central
 
 
 
Banking &
 
Central
 
Banking &
 
Central
 
Retail
Wealth 
Commercial
items
 
 
Retail
Wealth 
Commercial
items
 
Wealth 
Commercial
items
 
Banking
Management
& Institutional
& other
Total
 
Banking
Management
& Institutional
& other
 
Management
& Institutional
& other
31 December 2024
£m
£m
£m
£m
£m
 
£m
£m
£m
£m
 
£m
£m
£m
Loans - amortised cost and FVOCI (1,2)
 
Stage 1
182,366
17,155
128,988
35,312
363,821
 
182,366
13,726
2,226
-
 
3,429
126,762
35,312
Stage 2
24,242
844
15,339
49
40,474
 
24,242
352
42
-
 
492
15,297
49
Stage 3
3,268
322
2,340
-
5,930
 
3,268
251
52
-
 
71
2,288
-
Of which: individual
-
233
1,052
-
1,285
 
-
162
5
-
 
71
1,047
 
Of which: collective
3,268
89
1,288
-
4,645
 
3,268
89
47
-
 
-
1,241
-
Total 
209,876
18,321
146,667
35,361
410,225
 
209,876
14,329
2,320
-
 
3,992
144,347
35,361
ECL provisions (3)
 
Stage 1
279
16
289
14
598
 
279
2
3
-
 
14
286
14
Stage 2 
428
12
346
1
787
 
428
1
-
-
 
11
346
1
Stage 3
1,063
36
941
-
2,040
 
1,063
21
15
-
 
15
926
-
Of which: individual
-
36
415
-
451
 
-
21
7
-
 
15
408
-
Of which: collective
1,063
-
526
-
1,589
 
1,063
-
8
-
 
-
518
-
Total 
1,770
64
1,576
15
3,425
 
1,770
24
18
-
 
40
1,558
15
ECL provisions coverage (4)
 
Stage 1 (%)
0.15
0.09
0.22
0.04
0.16
 
0.15
0.01
0.13
-
 
0.41
0.23
0.04
Stage 2 (%)
1.77
1.42
2.26
2.04
1.94
 
1.77
0.28
-
-
 
2.24
2.26
2.04
Stage 3 (%)
32.53
11.18
40.21
-
34.40
 
32.53
8.37
28.85
-
 
21.13
40.47
-
Total 
0.84
0.35
1.07
0.04
0.83
 
0.84
0.17
0.78
-
 
1.00
1.08
0.04
Half year ended 30 June 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment (releases)/losses
 
ECL (release)/charge (5)
122
(11)
(57)
(6)
48
 
122
1
-
-
 
(12)
(57)
(6)
Stage 1
(166)
(9)
(182)
(7)
(364)
 
(166)
(1)
-
-
 
(8)
(182)
(7)
Stage 2
178
(3)
14
1
190
 
178
1
-
-
 
(4)
14
1
Stage 3
110
1
111
-
222
 
110
1
-
-
 
-
111
-
Of which: individual
-
1
79
-
80
 
-
1
-
-
 
-
79
-
Of which: collective
110
-
32
-
142
 
110
-
-
-
 
-
32
-
Total
122
(11)
(57)
(6)
48
 
122
1
-
-
 
(12)
(57)
(6)
Amounts written-off
270
-
99
-
369
 
270
-
1
-
 
-
98
-
Of which: individual
-
-
64
-
64
 
-
-
1
-
 
-
63
-
Of which: collective
270
-
35
-
305
 
270
-
-
-
 
-
35
-
 
(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 £89.5 billion (31 December 2024 - £91.8 billion) and debt securities of £70.8 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 divided by loans - amortised cost and FVOCI. It is calculated on loans and total ECL provisions, including ECL for other (non-loan) assets and unutilised exposure. Some segments with a high proportion of debt securities or unutilised exposure may result in a not meaningful (nm) coverage ratio.
(5)       Includes a £1 million release (30 June 2024 - £6 million release) related to other financial assets, of which £0 million release (30 June 2024 - £5 million release) related to assets classified as FVOCI and includes a £10 million charge (30 June 2024 - £4 million release) related to contingent liabilities.
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Segmental loans and impairment metrics (reviewed)
 
-
Retail Banking - Asset quality and arrears rates remained stable and within expectations for the first half of 2025. The overall increase in good book and total ECL coverage was driven by the acquisition of the Sainsbury's Bank portfolio which, in conjunction with continued organic growth on cards and personal loan portfolios, increased the unsecured portfolio mix. The ECL coverage levels on the Sainsbury's Bank portfolio reflected its strong book quality. Good book coverage on the existing Retail Banking book decreased, reflecting stable portfolio arrears and default trends, as well as resilience to affordability risk concerns. This resilience was notably supported by the reduction in the cost of living post model adjustment on mortgages, supported by reduced default outcomes in at-risk segments. The ECL increases from the latest economic update were minimal. The reduction in Stage 3 ratios 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. Flow rates into Stage 3 remained consistent with 31 December 2024.
 
-
Commercial & Institutional - ECL coverage increased in the first half of the year reflecting a small number of individual charges in Stage 3. Despite the increase in Stage 3 charges compared to the first half of 2024, loan balances flowing into Stage 3 were marginally lower. Stage 3 charges were partially offset through good book releases from improved portfolio risk metrics and a reduction in post model adjustments. Increased loan balances combined with reducing good ECL drove reduced coverage in both Stage 1 and Stage 2. Write-offs were broadly consistent with the first half of 2024.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Sector analysis - portfolio summary (reviewed)
 
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
Financial
 
 
 
 
 
Mortgages (1)
cards
personal
Total
 
and other
institutions
Sovereign
Total
 
Total
30 June 2025
£m
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Loans by geography
213,336
8,137
11,439
232,912
 
112,911
70,884
1,184
184,979
 
417,891
  - UK
213,323
8,137
11,439
232,899
 
98,210
46,126
491
144,827
 
377,726
  - Other Europe
13
-
-
13
 
6,584
12,010
364
18,958
 
18,971
  - RoW
-
-
-
-
 
8,117
12,748
329
21,194
 
21,194
Loans by stage 
213,336
8,137
11,439
232,912
 
112,911
70,884
1,184
184,979
 
417,891
  - Stage 1
189,743
6,011
9,024
204,778
 
95,737
70,335
1,025
167,097
 
371,875
  - Stage 2
21,477
1,917
1,455
24,849
 
14,780
422
142
15,344
 
40,193
  - Stage 3
2,116
209
960
3,285
 
2,394
127
17
2,538
 
5,823
  - Of which: individual
138
-
25
163
 
1,222
120
17
1,359
 
1,522
  - Of which: collective
1,978
209
935
3,122
 
1,172
7
-
1,179
 
4,301
Loans - past due analysis (2)
213,336
8,137
11,439
232,912
 
112,911
70,884
1,184
184,979
 
417,891
  - Not past due
210,041
7,872
10,438
228,351
 
109,838
69,858
1,167
180,863
 
409,214
  - Past due 1-30 days
1,559
61
78
1,698
 
1,802
1,007
-
2,809
 
4,507
  - Past due 31-90 days
620
65
117
802
 
390
9
-
399
 
1,201
  - Past due 90-180 days
368
52
108
528
 
98
-
-
98
 
626
  - Past due >180 days
748
87
698
1,533
 
783
10
17
810
 
2,343
Loans - Stage 2
21,477
1,917
1,455
24,849
 
14,780
422
142
15,344
 
40,193
  - Not past due
20,093
1,836
1,331
23,260
 
13,906
410
142
14,458
 
37,718
  - Past due 1-30 days
1,082
36
42
1,160
 
540
3
-
543
 
1,703
  - Past due 31-90 days
302
45
82
429
 
334
9
-
343
 
772
Weighted average life 
 
 
 
 
 
 
 
 
 
 
 
   - ECL measurement (years)
8
4
5
5
 
6
4
nm
6
 
6
Weighted average 12 months PDs
 
 
 
 
 
 
 
 
 
 
 
  - IFRS 9 (%)
0.52
3.35
4.75
0.77
 
1.19
0.18
6.13
0.82
 
0.80
  - Basel (%)
0.68
3.77
3.33
0.88
 
1.08
0.16
6.13
0.75
 
0.82
ECL provisions by geography
386
472
1,099
1,957
 
1,527
144
22
1,693
 
3,650
  - UK
386
472
1,099
1,957
 
1,361
90
13
1,464
 
3,421
  - Other Europe
-
-
-
-
 
106
10
-
116
 
116
  - RoW
-
-
-
-
 
60
44
9
113
 
113
ECL provisions by stage 
386
472
1,099
1,957
 
1,527
144
22
1,693
 
3,650
  - Stage 1
59
128
178
365
 
232
37
14
283
 
648
  - Stage 2
51
197
178
426
 
305
8
2
315
 
741
  - Stage 3
276
147
743
1,166
 
990
99
6
1,095
 
2,261
  - Of which: individual
12
-
15
27
 
482
96
6
584
 
611
  - Of which: collective
264
147
728
1,139
 
508
3
-
511
 
1,650
 
For the notes to this table refer to page 32.
 
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Sector analysis - portfolio summary (reviewed)
 
Personal
 
Non-Personal
 
 
 
 
Credit
Other
 
 
Corporate
Financial
 
 
 
 
 
Mortgages (1)
cards
personal
Total
 
and other
institutions
Sovereign
Total
 
Total
30 June 2025
£m
£m
£m
£m
 
£m
£m
£m
£m
 
£m
ECL provisions coverage (%)
0.18
5.80
9.61
0.84
 
1.35
0.20
1.86
0.92
 
0.87
  - Stage 1 (%)
0.03
2.13
1.97
0.18
 
0.24
0.05
1.37
0.17
 
0.17
  - Stage 2 (%)
0.24
10.28
12.23
1.71
 
2.06
1.90
1.41
2.05
 
1.84
  - Stage 3 (%)
13.04
70.33
77.40
35.49
 
41.35
77.95
35.29
43.14
 
38.83
ECL (release)/charge
(86)
143
172
229
 
101
52
-
153
 
382
  - UK
(86)
143
172
229
 
97
51
-
148
 
377
  - Other Europe
-
-
-
-
 
3
2
-
5
 
5
  - RoW
-
-
-
-
 
1
(1)
-
-
 
-
Amounts written-off 
13
52
30
95
 
97
-
-
97
 
192
Loans by residual maturity
213,336
8,137
11,439
232,912
 
112,911
70,884
1,184
184,979
 
417,891
 - ≤1 year 
2,151
2,594
2,920
7,665
 
32,591
52,260
344
85,195
 
92,860
 - >1 and ≤5 year
8,453
5,543
6,873
20,869
 
49,964
13,956
497
64,417
 
85,286
 - >5 and ≤15 year
42,661
-
1,642
44,303
 
22,203
4,532
309
27,044
 
71,347
 - >15 year
160,071
-
4
160,075
 
8,153
136
34
8,323
 
168,398
Other financial assets by asset quality (3)
-
-
-
-
 
4,584
25,530
130,211
160,325
 
160,325
  - AQ1-AQ4
-
-
-
-
 
4,582
25,400
130,211
160,193
 
160,193
  - AQ5-AQ8
-
-
-
-
 
2
130
-
132
 
132
Off-balance sheet
14,489
25,919
7,739
48,147
 
76,535
21,510
192
98,237
 
146,384
  - Loan commitments
14,489
25,919
7,701
48,109
 
73,735
20,157
192
94,084
 
142,193
  - Contingent liabilities
-
-
38
38
 
2,800
1,353
-
4,153
 
4,191
Off-balance sheet by asset quality (3)
14,489
25,919
7,739
48,147
 
76,535
21,510
192
98,237
 
146,384
  - AQ1-AQ4
13,642
516
6,296
20,454
 
48,124
19,608
121
67,853
 
88,307
  - AQ5-AQ8
836
25,021
1,391
27,248
 
28,030
1,858
16
29,904
 
57,152
  - AQ9 
1
13
23
37
 
26
-
55
81
 
118
  - AQ10
10
369
29
408
 
355
44
-
399
 
807
 
For the notes to this table refer to page 32.
 
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Sector analysis - portfolio summary (reviewed)
 
Personal
 
Non-Personal
 
 
 
 
Credit
Other
 
 
Corporate
Financial
 
 
 
 
 
Mortgages (1)
cards
personal
Total
 
  and 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 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 (2)
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 90-180 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
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
 
For the notes to this table refer to the following page.
 
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Sector analysis - portfolio summary (reviewed)
 
Personal
 
Non-Personal
 
 
 
 
Credit
Other
 
 
Corporate
Financial
 
 
 
 
 
Mortgages (1)
cards
personal
Total
 
  and other 
institutions
Sovereign
Total
 
Total
31 December 2024
£m
£m
£m
£m
 
£m
£m
£m
£m
 
£m
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
 
Half year ended 30 June 2024
 
 
 
 
 
 
 
 
 
 
ECL (release)/charge (4)
(19)
51
91
123
 
(95)
19
1
(75)
 
48
  - UK
(19)
51
91
123
 
(82)
(4)
-
(86)
 
37
  - Other Europe
-
-
-
-
 
(7)
(6)
-
(13)
 
(13)
  - RoW
-
-
-
-
 
(6)
29
1.0
24
 
24
Amounts written-off (4)
9
38
224
271
 
98
-
-
98
 
369
 
31 December 2024
 
 
 
 
 
 
 
 
 
 
 
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 (3)
-
-
-
-
 
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
  - Contingent liabilities
-
-
41
41
 
3,024
1,584
-
4,608
 
4,649
Off-balance sheet by asset quality (3)
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
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 personal products are reported in the UK, reflecting the country of lending origination and includes crown dependencies.
 
(2)       AQ bandings are based on Basel PDs and mapping 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
 
£0.4 billion (31 December 2024 - £0.3 billion) of AQ10 Personal balances primarily relate to loan commitments, the drawdown of which is effectively prohibited.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Sector analysis - portfolio summary (reviewed)
 
The table below shows ECL by stage, for the Personal portfolio and Non-Personal portfolio, including the three largest borrowing sector clusters included in corporate and other.
 
Loans - amortised cost and FVOCI
 
Off-balance sheet 
 
ECL provisions
 
 
 
Loan
Contingent
 
 
 
Stage 1
Stage 2
Stage 3
Total
 
commitments
liabilities
 
Stage 1
Stage 2
Stage 3
Total
30 June 2025
£m
£m
£m
£m
 
£m
£m
 
£m
£m
£m
£m
Personal
204,778
24,849
3,285
232,912
 
48,109
38
 
365
426
1,166
1,957
Mortgages (1)
189,743
21,477
2,116
213,336
 
14,489
-
 
59
51
276
386
Credit cards
6,011
1,917
209
8,137
 
25,919
-
 
128
197
147
472
Other personal
9,024
1,455
960
11,439
 
7,701
38
 
178
178
743
1,099
Non-Personal
167,097
15,344
2,538
184,979
 
94,084
4,153
 
283
315
1,095
1,693
Financial institutions (2)
70,335
422
127
70,884
 
20,157
1,353
 
37
8
99
144
Sovereigns
1,025
142
17
1,184
 
192
-
 
14
2
6
22
Corporate and other
95,737
14,780
2,394
112,911
 
73,735
2,800
 
232
305
990
1,527
Of which:
 
        Commercial real estate
16,855
1,274
368
18,497
 
6,637
161
 
64
26
135
225
        Mobility and logistics
13,990
2,280
121
16,391
 
10,036
499
 
25
35
39
99
        Consumer industries
12,882
2,592
445
15,919
 
10,891
517
 
32
71
202
305
Total
371,875
40,193
5,823
417,891
 
142,193
4,191
 
648
741
2,261
3,650
 
 
 
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
31 December 2024 
£m
£m
£m
£m
 
£m
£m
 
£m
£m
£m
£m
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
Sovereigns
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 June 2025, £140.1 billion, 65.7%, of the total residential mortgages portfolio had Energy Performance Certificate (EPC) data available (31 December 2024 - £139.1 billion, 66.3%). Of which, 47.7% 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
 
Credit risk - Banking activities continued
 
Non-Personal forbearance (reviewed)
 
The table below shows Non-Personal forbearance, Heightened Monitoring and Risk of Credit Loss by sector. This table shows current exposure but reflects risk transfers where there is a guarantee by another customer.
 
 
Corporate and
Financial 
 
 
 
other
institutions
Sovereign
Total
30 June 2025
£m
£m
£m
£m
Forbearance (flow)
2,287
66
14
2,367
Forbearance (stock)
4,267
117
14
4,398
Heightened Monitoring and Risk of Credit Loss
5,812
88
1
5,901
 
31 December 2024
 
 
 
 
Forbearance (flow)
3,359
119
18
3,496
Forbearance (stock)
4,556
106
18
4,680
Heightened Monitoring and Risk of Credit Loss
5,931
150
1
6,082
 
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
-
Loans by geography and sector - In line with NatWest Group's strategic focus, exposures continued to be mainly in the UK.
 
-
Loans by stage - The increase in Stage 1, reflected the growth in Personal lending on both mortgages and unsecured lending, alongside the acquisition of the Sainsbury's Bank portfolio. Stage 2 balances remained stable compared to 31 December 2024. Similarly, Stage 3 balances remained stable overall, with a modest increase in Non-Personal Stage 3 balance, due to a small number of defaults, spread across different sectors. This was largely offset by the reduction seen in Personal mortgages, due to an enhancement to the application of the definition of default used on mortgages, resulting in a migration of loans back to the good book.
 
-
Loans - Past due analysis - Within the Personal portfolio, arrears balances increased during H1 2025, however, this was in line with expectations following periods of balance growth. Arrears inflow rates remained stable. In Non-Personal, the total level of past due loans was broadly stable since 31 December 2024, but with some offsetting movements in early arrears by sector. Stage 2 loans past due reduced, in line with overall Stage 2 reductions.
 
-
Weighted average 12 months PDs - Both IFRS 9 and Basel PDs remained broadly stable during the year. In Non-Personal, some reductions were observed in IFRS 9 PDs in the corporate portfolio due to economic and portfolio improvements. PDs in sovereigns increased due to new lending, which is fully backed by government guarantees.
 
-
ECL provisions by stage and ECL provisions coverage - Overall provisions coverage increased since 31 December 2024, following a small number of individual Stage 3 charges in Non-Personal and an increase in good book ECL coverage in the Personal portfolio. This was driven by the portfolio acquisition from Sainsbury's Bank which increased the unsecured mix of the Personal portfolio. Reductions in judgemental post model adjustments mitigated the effect of some of these ECL increases.
 
-
ECL charge - The H1 2025 impairment charge of £382 million, primarily reflected a small number of individual charges in the Commercial & Institutional portfolio alongside the initial ECL cost from the portfolio acquisition from Sainsbury's Bank within Personal. This was partially offset by post model adjustment releases in the good book and the ECL release on Personal, with the migration of assets back to the good book from Stage 3, following an enhancement to the application of the definition of default used on mortgages.
 
-
Loans by residual maturity - In mortgages, as expected, the vast majority of exposures were greater than five years. In unsecured lending, cards and other, exposures were concentrated in less than five years. In Non-Personal, most loans mature in less than five years.
 
-
Other financial assets by asset quality - Consisting almost entirely of balances at central banks and debt securities held in the course of treasury related management activities, these assets were mainly within the AQ1-AQ4 bands.  
 
-
Off-balance sheet exposures by asset quality - In Personal, undrawn exposures were reflective of available credit lines in credit cards and current accounts. Additionally, the mortgage portfolio had undrawn exposures, where a formal offer had been made to a customer but had not yet drawn down; the value increased in line with the pipeline of offers. The off-balance sheet commitments for credit cards increased due to the Sainsbury's Bank portfolio acquisition. In Non-Personal, off-balance sheet exposure consisted primarily of undrawn loan commitments to customers along with contingent liabilities. The AQ band split of off-balance sheet exposures broadly mirrored the drawn loans portfolio for non-defaulted exposures.
 
-
Non-Personal problem debt - Exposures in the Problem Debt Management framework reduced during H1 2025 due to some corporate customers moving out of the framework. There was no change in the reasons for customers moving into the Problem Debt Management framework, with trading issues and cash/liquidity being the main drivers.
 
-
Non-Personal forbearance - Exposures classified as forborne reduced marginally across multiple sectors, leading to lower stock values in corporates. A portion of forbearance flows related to cases in Customer Lending Services subject to repeated forbearance. 
 
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Personal portfolio (reviewed)
 
Disclosures in the Personal portfolio section include drawn exposure (gross of provisions).
 
30 June 2025
 
31 December 2024
 
 
Private
 
 
 
 
 
Private
 
 
 
 
 
Banking
 
 
 
 
 
Banking
 
 
 
 
Retail
& Wealth
Commercial
Central items
 
 
Retail
& Wealth
Commercial
Central items
 
 
Banking
Management
& Institutional
& other
Total
 
Banking
Management
& Institutional
& other
Total
Personal lending
£m
£m
£m
£m
£m
 
£m
£m
£m
£m
£m
Mortgages
198,260
12,871
2,160
13
213,304
 
194,865
12,826
2,161
-
209,852
Of which:
 
 
 
 
 
 
 
 
 
 
 
  Owner occupied
179,036
11,475
1,466
12
191,989
 
176,137
11,348
1,457
-
188,942
  Buy-to-let
19,224
1,396
694
1
21,315
 
18,728
1,478
704
-
20,910
  Interest only 
21,919
11,371
424
-
33,714
 
22,186
11,276
437
-
33,899
  Mixed (1)
10,333
33
4
-
10,370
 
10,384
40
8
-
10,432
  ECL provisions (2)
363
13
10
-
386
 
440
12
10
-
462
Other personal lending (3)
17,774
1,479
233
-
19,486
 
15,045
1,301
242
-
16,588
ECL provisions (2)
1,551
13
3
-
1,567
 
1,330
12
3
-
1,345
Total personal lending
216,034
14,350
2,393
13
232,790
 
209,910
14,127
2,403
-
226,440
Mortgage LTV ratios
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
56%
59%
57%
49%
56%
 
56%
59%
56%
-
56%
       Stage 1
56%
59%
56%
-
56%
 
56%
59%
55%
-
56%
       Stage 2
55%
58%
57%
34%
55%
 
55%
61%
56%
-
55%
       Stage 3
50%
62%
65%
91%
51%
 
50%
64%
74%
-
51%
  Buy-to-let
53%
60%
55%
35%
54%
 
53%
60%
52%
-
53%
       Stage 1
54%
60%
54%
-
54%
 
54%
60%
51%
-
54%
       Stage 2
52%
57%
54%
35%
52%
 
52%
57%
55%
-
52%
       Stage 3
52%
57%
66%
35%
54%
 
52%
56%
59%
-
53%
Gross new mortgage lending 
15,991
745
125
-
16,861
 
26,440
1,395
257
-
28,092
   Of which:
 
 
 
 
 
 
 
 
 
 
 
 Owner occupied 
14,834
701
90
-
15,625
 
25,300
1,266
183
-
26,749
  - LTV > 90%
818
-
-
-
818
 
888
-
-
-
888
 Weighted average LTV (4)
71%
66%
61%
-
71%
 
70%
63%
71%
-
70%
 Buy-to-let
1,157
44
35
-
1,236
 
1,140
129
74
-
1,343
 Weighted average LTV (4)
62%
62%
61%
-
62%
 
61%
62%
56%
-
61%
 Interest only 
1,182
677
19
-
1,878
 
1,575
1,238
42
-
2,855
 Mixed (1)
520
-
1
-
521
 
1,150
-
1
-
1,151
 
For the notes to this table refer to the following page.
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Personal portfolio (reviewed) continued
 
 
 
30 June 2025
 
31 December 2024
 
 
Private
 
 
 
 
 
Private
 
 
 
 
 
Banking
 
 
 
 
 
Banking
 
 
 
 
Retail
& Wealth
Commercial
Central items
 
 
Retail
& Wealth
Commercial
Central items
 
 
Banking
Management
& Institutional
& other
Total
 
Banking
Management
& Institutional
& other
Total
Mortgage forbearance
£m
£m
£m
£m
£m
 
£m
£m
£m
£m
£m
Forbearance flow (5)
196
12
1
-
209
 
473
8
6
-
487
Forbearance stock
1,764
14
12
1
1,791
 
1,680
20
15
-
1,715
  Current
1,270
3
4
-
1,277
 
1,214
9
10
-
1,233
  1-3 months in arrears
159
11
1
-
171
 
146
9
-
-
155
  > 3 months in arrears
335
-
7
1
343
 
320
2
5
-
327
 
(1)     Includes accounts which have an interest only sub-account and a capital and interest sub-account to provide a more comprehensive view of interest only exposures.
(2)     Retail Banking excludes a non-material amount of lending and provisions held on relatively small legacy portfolios.
(3)     Comprises unsecured lending except for Private Banking & Wealth Management, which includes both secured and unsecured lending. It excludes loans that are commercial in nature.
(4)     New mortgage lending LTV reflects the LTV at the time of lending.
(5)     Forbearance flows only include an account once per year, although some accounts may be subject to multiple forbearance deals. Forbearance deals post default are excluded from these flows.
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Personal portfolio (reviewed)
 
Mortgage LTV distribution by stage
 
The table below shows gross mortgage lending and related ECL by LTV band for the Retail Banking portfolio.
 
Mortgages
 
ECL provisions
 
ECL provisions coverage 
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
30 June 2025
£m
£m
£m
£m
 
£m
£m
£m
£m
 
%
%
%
%
≤50%
66,045
8,771
965
75,781
 
16
13
126
155
 
-
0.1
13.1
0.2
>50% and ≤70%
63,404
7,796
684
71,884
 
21
19
86
126
 
-
0.2
12.6
0.2
>70% and ≤80%
25,372
2,496
145
28,013
 
10
9
19
38
 
-
0.4
13.1
0.1
>80% and ≤90%
17,133
1,806
80
19,019
 
7
9
13
29
 
-
0.5
16.3
0.2
>90% and ≤100%
2,873
243
19
3,135
 
1
1
4
6
 
-
0.4
21.1
0.2
>100%
11
2
9
22
 
-
-
5
5
 
-
-
55.6
22.7
Total with LTVs
174,838
21,114
1,902
197,854
 
55
51
253
359
 
-
0.2
13.3
0.2
Other
404
1
1
406
 
3
-
1
4
 
0.7
-
100.0
1.0
Total
175,242
21,115
1,903
198,260
 
58
51
254
363
 
-
0.2
13.3
0.2
 
31 December 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
≤50%
64,040
8,344
1,159
73,543
 
21
16
153
190
 
-
0.2
13.2
0.3
>50% and ≤70%
61,739
7,741
855
70,335
 
29
23
104
156
 
-
0.3
12.2
0.2
>70% and ≤80%
25,022
2,361
173
27,556
 
13
9
22
44
 
0.1
0.4
12.7
0.2
>80% and ≤90%
16,718
1,769
85
18,572
 
9
9
13
31
 
0.1
0.5
15.3
0.2
>90% and ≤100%
4,076
512
26
4,614
 
2
3
5
10
 
-
0.6
19.2
0.2
>100%
14
4
13
31
 
-
-
6
6
 
-
-
46.2
19.4
Total with LTVs
171,609
20,731
2,311
194,651
 
74
60
303
437
 
-
0.3
13.1
0.2
Other
212
1
1
214
 
2
-
1
3
 
0.9
-
100.0
1.4
Total
171,821
20,732
2,312
194,865
 
76
60
304
440
 
-
0.3
13.1
0.2
 
 
-
Mortgage balances increased during H1 2025 with continued strong new business in excess of redemptions. Unsecured balances increased, primarily driven by the acquisition of personal loans and credit cards from Sainsbury's Bank, as well as underlying credit card growth.
 
-
In line with wider market trends, new business in the mortgage portfolio was accelerated in Q1 2025, ahead of stamp duty changes introduced on 1 April 2025. LTV for new business did therefore increase with a lower proportion of remortgage new business. Overall portfolio LTV remained stable, with house price growth reflected in the Office for National Statistics house price indices and a reduction in redemptions compared to 2024. 
 
-
Portfolios and new business were closely monitored against agreed operating limits. These included loan-to-value ratios, buy-to-let concentrations, new-build concentrations and credit quality. Lending criteria, affordability calculations and assumptions for new lending were adjusted during the year, to maintain credit quality in line with appetite and to ensure customers are assessed fairly as economic conditions change.
  
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Commercial real estate (CRE) (reviewed)
 
CRE LTV distribution by stage
 
The table below shows CRE gross loans and related ECL by LTV band.
 
Gross loans
 
ECL provisions
 
ECL provisions coverage
 
Stage 1
Stage 2
Stage 3
 
Total
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
30 June 2025
£m
£m
£m
 
£m
 
£m
£m
£m
£m
 
%
%
%
%
≤50%
7,393
200
51
 
7,644
 
25
4
8
37
 
0.3
2.0
15.7
0.5
>50% and ≤60%
4,166
165
40
 
4,371
 
19
4
4
27
 
0.5
2.4
10.0
0.6
>60% and ≤70%
689
76
23
 
788
 
3
2
7
12
 
0.4
2.6
30.4
1.5
>70% and ≤100%
298
122
51
 
471
 
1
4
17
22
 
0.3
3.3
33.3
4.7
>100%
122
8
113
 
243
 
1
-
57
58
 
0.8
-
50.4
23.9
Total with LTVs
12,668
571
278
 
13,517
 
49
14
93
156
 
0.4
2.5
33.5
1.2
Total portfolio
 
 
 
 
 
 
 
 
 
 
 
  average LTV
46%
59%
105%
 
48%
 
 
 
 
 
 
Other investment (1)
2,169
335
37
 
2,541
 
5
5
15
25
 
0.2
1.5
40.5
1.0
Investment
14,837
906
315
 
16,058
 
54
19
108
181
 
0.4
2.1
34.3
1.1
Development and
 
 
 
 
 
 
 
 
 
 
 
   other (2)
2,018
368
53
 
2,439
 
10
7
27
44
 
0.5
1.9
50.9
1.8
Total
16,855
1,274
368
 
18,497
 
64
26
135
225
 
0.4
2.0
36.7
1.2
 
31 December 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
≤50%
7,334
380
48
 
7,762
 
28
6
7
41
 
0.4
1.6
14.6
0.5
>50% and ≤60%
3,829
169
53
 
4,051
 
19
5
9
33
 
0.5
3.0
17.0
0.8
>60% and ≤70%
584
198
34
 
816
 
3
5
8
16
 
0.5
2.5
23.5
2.0
>70% and ≤100%
312
83
79
 
474
 
2
4
21
27
 
0.6
4.8
26.6
5.7
>100%
139
8
119
 
266
 
1
-
56
57
 
0.7
-
47.1
21.4
Total with LTVs
12,198
838
333
 
13,369
 
53
20
101
174
 
0.4
2.4
30.3
1.3
Total portfolio
 
 
 
 
 
 
 
 
 
 
 
  average LTV
46%
51%
102%
 
48%
 
 
 
 
 
 
Other investment (1)
2,132
348
41
 
2,521
 
6
6
15
27
 
0.3
1.7
36.6
1.1
Investment
14,330
1,186
374
 
15,890
 
59
26
116
201
 
0.4
2.2
31.0
1.3
Development and
 
 
 
 
 
 
 
 
 
 
 
   other (2)
1,861
331
59
 
2,251
 
11
4
30
45
 
0.6
1.2
50.8
2.0
Total
16,191
1,517
433
 
18,141
 
70
30
146
246
 
0.4
2.0
33.7
1.4
 
(1)     Relates mainly to business banking and unsecured corporate lending.
(2)     Related to the development of commercial residential properties, along with CRE activities that are not strictly investment or development. LTV is not a meaningful measure for this type of lending activity.
 
 
 
-
Overall - The majority of the CRE portfolio was located and managed in the UK. Business appetite and strategy was aligned across NatWest Group.
  
-
2025 trends - There was strong growth in the residential sector, with other CRE sectors remaining broadly flat. LTV profile remained stable.
 
-
Credit quality - Credit quality improved, with fewer exposures in the Problem Debt Management framework, and the average portfolio probability of default holding steady.
 
-
Risk appetite - Lending appetite is subject to regular review.
 

 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Flow statements (reviewed)
 
The flow statements that follow show the main ECL and related income statement movements. They also show the changes in ECL as well as the changes in related financial assets used in determining ECL. Due to differences in scope, exposures may differ from those reported in other tables, principally in relation to exposures in Stage 1 and Stage 2. These differences do not have a material ECL effect. Other points to note:
 
-
Financial assets include treasury liquidity portfolios, comprising balances at central banks and debt securities, as well as loans. Both modelled and non-modelled portfolios are included.
 
-
Stage transfers (for example, exposures moving from Stage 1 into Stage 2) are a key feature of the ECL movements, with the net re-measurement cost of transitioning to a worse stage being a primary driver of income statement charges. Similarly, there is an ECL benefit for accounts improving stage.
 
-
Changes in risk parameters shows the reassessment of the ECL within a given stage, including any ECL overlays and residual income statement gains or losses at the point of write-off or accounting write-down.
 
-
Other (P&L only items) includes any subsequent changes in the value of written-down assets (for example, fortuitous recoveries) along with other direct write-off items such as direct recovery costs. Other (P&L only items) affects the income statement but does not affect balance sheet ECL movements. 
 
-
Amounts written-off represent the gross asset written-down against accounts with ECL, including the net asset write-down for any debt sale activity.
 
-
There were some flows from Stage 1 into Stage 3 including transfers due to unexpected default events with a post model adjustment in place for Commercial & Institutional to account for this risk.
 
-
The effect of any change in post model adjustments during the year is typically reported under changes in risk parameters, as are any effects arising from changes to the underlying models. Refer to the section on Governance and post model adjustments for further details.
 
-
All movements are captured monthly and aggregated. Interest suspended post default is included within Stage 3 ECL, with the movement in the value of suspended interest during the year reported under currency translation and other adjustments.
 
 
 
 
Stage 1
 
Stage 2
 
Stage 3
 
Total
 
Financial
 
 
Financial
 
 
Financial
 
 
Financial
 
 
assets
ECL
 
assets
ECL
 
assets
ECL
 
assets
ECL
NatWest Group total
£m
£m
 
£m
£m
 
£m
£m
 
£m
£m
At 1 January 2025
515,556
598
 
42,165
787
 
5,901
2,040
 
563,622
3,425
Currency translation and other adjustments
(2,318)
-
 
(28)
-
 
87
94
 
(2,259)
94
Transfers from Stage 1 to Stage 2
(18,664)
(104)
 
18,664
104
 
-
-
 
-
-
Transfers from Stage 2 to Stage 1
15,135
215
 
(15,135)
(215)
 
-
-
 
-
-
Transfers to Stage 3
(282)
(3)
 
(1,342)
(131)
 
1,624
134
 
-
-
Transfers from Stage 3
80
9
 
744
30
 
(824)
(39)
 
-
-
   Net re-measurement of ECL on stage transfer
 
(148)
 
277
 
274
 
403
   Changes in risk parameters
 
(73)
 
(14)
 
148
 
61
   Other changes in net exposure
17,488
154
 
(3,312)
(97)
 
(857)
(121)
 
13,319
(64)
   Other (P&L only items)
 
-
 
(1)
 
(17)
 
(18)
Income statement (releases)/charges
 
(67)
 
165
 
284
 
382
Transfers to disposal groups and fair value
-
-
 
-
-
 
-
-
 
-
-
Amounts written-off
-
-
 
-
-
 
(192)
(192)
 
(192)
(192)
Unwinding of discount
 
-
 
-
 
(77)
 
(77)
At 30 June 2025
526,995
648
 
41,756
741
 
5,739
2,261
 
574,490
3,650
Net carrying amount
526,347
 
 
41,015
 
 
3,478
 
 
570,840
 
At 1 January 2024
504,345
709
 
40,294
976
 
5,621
1,960
 
550,260
3,645
2024 movements
(6,334)
(124)
 
(1,643)
(174)
 
90
(4)
 
(7,887)
(302)
At 30 June 2024
498,011
585
 
38,651
802
 
5,711
1,956
 
542,373
3,343
Net carrying amount
497,426
 
 
37,849
 
 
3,755
 
 
539,030
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Flow statements (reviewed)
 
 
 
 
Stage 1
 
Stage 2
 
Stage 3
 
Total
 
Financial
 
 
Financial
 
 
Financial
 
 
Financial
 
 
assets
ECL
 
assets
ECL
 
assets
ECL
 
assets
ECL
Retail Banking - mortgages
£m
£m
 
£m
£m
 
£m
£m
 
£m
£m
At 1 January 2025
171,333
76
 
20,992
60
 
2,303
305
 
194,628
441
Currency translation and other adjustments
-
-
 
-
-
 
52
51
 
52
51
Transfers from Stage 1 to Stage 2
(8,422)
(11)
 
8,422
11
 
-
-
 
-
-
Transfers from Stage 2 to Stage 1
6,890
11
 
(6,890)
(11)
 
-
-
 
-
-
Transfers to Stage 3
(8)
-
 
(453)
(4)
 
461
4
 
-
-
Transfers from Stage 3
16
-
 
625
10
 
(641)
(10)
 
-
-
   Net re-measurement of ECL on stage transfer
 
(2)
 
-
 
4
 
2
   Changes in risk parameters
 
(13)
 
(12)
 
30
 
5
   Other changes in net exposure
4,092
(3)
 
(1,359)
(3)
 
(271)
(80)
 
2,462
(86)
   Other (P&L only items)
 
-
 
-
 
(10)
 
(10)
Income statement (releases)/charges
 
(18)
 
(15)
 
(56)
 
(89)
Amounts written-off
-
-
 
-
-
 
(13)
(13)
 
(13)
(13)
Unwinding of discount
 
-
 
-
 
(37)
 
(37)
At 30 June 2025
173,901
58
 
21,337
51
 
1,891
254
 
197,129
363
Net carrying amount
173,843
 
 
21,286
 
 
1,637
 
 
196,766
 
At 1 January 2024
174,038
87
 
17,827
60
 
2,068
250
 
193,933
397
2024 movements
(7,045)
(38)
 
2,490
8
 
173
30
 
(4,382)
-
At 30 June 2024
166,993
49
 
20,317
68
 
2,241
280
 
189,551
397
Net carrying amount
166,944
 
 
20,249
 
 
1,961
 
 
189,154
 
 
 
-
ECL coverage for mortgages decreased during the first half of 2025, primarily driven by the reduction in economic uncertainty post model adjustments (supported by back-testing) and an enhancement to the application of the definition of default. The latter resulted in a £0.4 billion migration of loans from Stage 3 back to the good book.
 
-
PDs and Stage 3 inflows remained broadly stable, with the portfolio showing continued resilience during times when a number of customers have had affordability pressures.
 
-
The net flows into Stage 2 from Stage 1 were offset by a similar level of outflows from Stage 2 to Stage 1 and balance paydown in Stage 2, supporting a stable Stage 2 exposure population during 2025 to date.
 
-
The relatively small ECL cost for net re-measurement on transfer into Stage 3 included the effect of risk targeted ECL adjustments, when previously in the good book. Refer to the Governance and post model adjustments section for further details.
 
-
Write-off occurs once the repossessed property has been sold and there is a residual shortfall balance remaining outstanding. This would typically be within five years from default but can be longer.
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Flow statements (reviewed)
 
 
 
Stage 1
 
Stage 2
 
Stage 3
 
Total
 
Financial
 
 
Financial
 
 
Financial
 
 
Financial
 
 
assets
ECL
 
assets
ECL
 
assets
ECL
 
assets
ECL
Retail Banking - credit cards
£m
£m
 
£m
£m
 
£m
£m
 
£m
£m
At 1 January 2025
4,523
76
 
2,034
186
 
162
117
 
6,719
379
Currency translation and other adjustments
-
-
 
-
-
 
3
3
 
3
3
Transfers from Stage 1 to Stage 2
(1,110)
(24)
 
1,110
24
 
-
-
 
-
-
Transfers from Stage 2 to Stage 1
675
55
 
(675)
(55)
 
-
-
 
-
-
Transfers to Stage 3
(16)
(1)
 
(99)
(35)
 
115
36
 
-
-
Transfers from Stage 3
2
1
 
5
2
 
(7)
(3)
 
-
-
   Net re-measurement of ECL on stage transfer
 
(37)
 
95
 
42
 
100
   Changes in risk parameters
 
9
 
17
 
9
 
35
   Other changes in net exposure
1,594
47
 
(381)
(37)
 
(10)
(1)
 
1,203
9
   Other (P&L only items)
 
-
 
-
 
(1)
 
(1)
Income statement (releases)/charges
 
19
 
75
 
49
 
143
Amounts written-off
-
-
 
-
-
 
(52)
(52)
 
(52)
(52)
Unwinding of discount
 
-
 
-
 
(5)
 
(5)
At 30 June 2025
5,668
126
 
1,994
197
 
211
146
 
7,873
469
Net carrying amount
5,542
 
 
1,797
 
 
65
 
 
7,404
 
At 1 January 2024
3,475
70
 
2,046
204
 
146
89
 
5,667
363
2024 movements
648
11
 
(224)
(16)
 
23
16
 
447
11
At 30 June 2024
4,123
81
 
1,822
188
 
169
105
 
6,114
374
Net carrying amount
4,042
 
 
1,634
 
 
64
 
 
5,740
 
 
 
-
Overall ECL for cards increased during 2025, driven primarily by the acquisition of Sainsbury's Bank credit card balances into Stage 1 (around £1 billion at 30 June 2025) alongside continued organic portfolio growth, reflecting strong customer demand, while sustaining robust risk appetite.
 
-
While portfolio performance remained stable, a net flow into Stage 2 from Stage 1 was observed, with the typical maturation of lending after a period of strong growth in recent years.
 
-
Flow rates into Stage 3 were slightly higher in 2025 compared to 2024. This was linked to recent growth and portfolio maturation, but in line with expectations.
 
-
Charge-off (analogous to partial write-off) typically occurs after 12 missed payments.
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Flow statements (reviewed)
 
 
 
Stage 1
 
Stage 2
 
Stage 3
 
Total
 
Financial
 
 
Financial
 
 
Financial
 
 
Financial
 
 
assets
ECL
 
assets
ECL
 
assets
ECL
 
assets
ECL
Retail Banking - other personal unsecured
£m
£m
 
£m
£m
 
£m
£m
 
£m
£m
At 1 January 2025
5,605
127
 
1,465
182
 
833
641
 
7,903
950
Currency translation and other adjustments
-
-
 
-
-
 
15
17
 
15
17
Transfers from Stage 1 to Stage 2
(998)
(44)
 
998
44
 
-
-
 
-
-
Transfers from Stage 2 to Stage 1
731
75
 
(731)
(75)
 
-
-
 
-
-
Transfers to Stage 3
(38)
(1)
 
(152)
(58)
 
190
59
 
-
-
Transfers from Stage 3
4
1
 
11
5
 
(15)
(6)
 
-
-
   Net re-measurement of ECL on stage transfer
 
(49)
 
104
 
26
 
81
   Changes in risk parameters
 
(13)
 
(7)
 
60
 
40
   Other changes in net exposure
1,808
80
 
(179)
(18)
 
(49)
(24)
 
1,580
38
   Other (P&L only items)
 
-
 
-
 
12
 
12
Income statement (releases)/charges
 
18
 
79
 
74
 
171
Amounts written-off
-
-
 
-
-
 
(29)
(29)
 
(29)
(29)
Unwinding of discount
 
-
 
-
 
(17)
 
(17)
At 30 June 2025
7,112
176
 
1,412
177
 
945
727
 
9,469
1,080
Net carrying amount
6,936
 
 
1,235
 
 
218
 
 
8,389
 
At 1 January 2024
5,240
149
 
1,657
238
 
963
758
 
7,860
1,145
2024 movements
477
(4)
 
(432)
(38)
 
(118)
(117)
 
(73)
(159)
At 30 June 2024
5,717
145
 
1,225
200
 
845
641
 
7,787
986
Net carrying amount
5,572
 
 
1,025
 
 
204
 
 
6,801
 
 
 
-
Total ECL increased, driven primarily by the acquisition of Sainsbury's Bank loan balances into Stage 1 (around £1.2 billion at 30 June 2025) alongside continued organic loan book growth.
 
-
Stable arrears performance was observed during 2025 to date, which is reflected in the good book ECL, with coverage levels showing a modest reduction since 31 December 2024.
 
-
Flow rates into Stage 3 remained stable during the first half of 2025, in line with broader portfolio trends on arrears, with overall Stage 3 balances increasing as a result of reduced debt sale activity.
 
-
Write-off occurs once recovery activity with the customer has been concluded or there are no further recoveries expected, but no later than six years after default.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Flow statements (reviewed)
 
Stage 1
 
Stage 2
 
Stage 3
 
Total
 
Financial
 
 
Financial
 
 
Financial
 
 
Financial
 
 
assets
ECL
 
assets
ECL
 
assets
ECL
 
assets
ECL
Commercial & Institutional - corporate
£m
£m
 
£m
£m
 
£m
£m
 
£m
£m
At 1 January 2025
62,575
175
 
11,450
273
 
1,562
659
 
75,587
1,107
Currency translation and other adjustments
(574)
 
 
(22)
 
 
9
2
 
(587)
2
Inter-group transfers
84
 
 
27
1
 
-
-
 
111
1
Transfers from Stage 1 to Stage 2
(5,494)
(19)
 
5,494
19
 
-
-
 
-
-
Transfers from Stage 2 to Stage 1
4,080
51
 
(4,080)
(51)
 
-
-
 
-
-
Transfers to Stage 3
(146)
(1)
 
(457)
(28)
 
603
29
 
-
-
Transfers from Stage 3
31
4
 
58
11
 
(89)
(15)
 
-
-
   Net re-measurement of ECL on stage transfer
 
(42)
 
54
 
152
 
164
   Changes in risk parameters
 
(33)
 
(7)
 
20
 
(20)
   Other changes in net exposure
1,840
14
 
(990)
(33)
 
(326)
2
 
524
(17)
   Other (P&L only items)
 
-
 
-
 
(17)
 
(17)
Income statement (releases)/charges
 
(61)
 
14
 
157
 
110
Amounts written-off
-
 
 
(86)
(86)
 
(86)
(86)
Unwinding of discount
 
 
 
(13)
 
(13)
At 30 June 2025
62,396
149
 
11,480
239
 
1,673
750
 
75,549
1,138
Net carrying amount
62,247
 
 
11,241
 
 
923
 
 
74,411
 
At 1 January 2024
61,402
226
 
12,275
344
 
1,454
602
 
75,131
1,172
2024 movements
1,914
(52)
 
(2,180)
(81)
 
6
9
 
(260)
(124)
At 30 June 2024
63,316
174
 
10,095
263
 
1,460
611
 
74,871
1,048
Net carrying amount
63,142
 
 
9,832
 
 
849
 
 
73,823
 
 
 
 
-
ECL increased in H1 2025 due to the impact of a small number of flows into default. The charge on those cases is seen through net re-measurement of ECL on stage transfer, reflecting the difference between good book ECL and defaulted ECL.
 
-
Performing ECL coverage decreased in line with ECL reductions in the portfolio book as risk metrics improved, in particular from point-in-time economics inputs, and reduced post model adjustments.
 
-
Stage 2 exposure levels were stable in the period as flows into Stage 2 were broadly offset through flows back to Stage 1, repayments, and flows into Stage 3.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Flow statements (reviewed)
 
 
 
Stage 1
 
Stage 2
 
Stage 3
 
Total
 
Financial
 
 
Financial
 
 
Financial
 
 
Financial
 
 
assets
ECL
 
assets
ECL
 
assets
ECL
 
assets
ECL
Commercial & Institutional - property
£m
£m
 
£m
£m
 
£m
£m
 
£m
£m
At 1 January 2025
27,468
77
 
2,980
61
 
590
225
 
31,038
363
Currency translation and other adjustments
5
-
 
-
-
 
8
13
 
13
13
Inter-group transfers
(79)
-
 
(11)
(1)
 
-
-
 
(90)
(1)
Transfers from Stage 1 to Stage 2
(1,429)
(4)
 
1,429
4
 
-
-
 
-
-
Transfers from Stage 2 to Stage 1
928
12
 
(928)
(12)
 
-
-
 
-
-
Transfers to Stage 3
(3)
-
 
(83)
(4)
 
86
4
 
-
-
Transfers from Stage 3
16
2
 
16
2
 
(32)
(4)
 
-
-
   Net re-measurement of ECL on stage transfer
 
(10)
 
17
 
9
 
16
   Changes in risk parameters
 
(12)
 
(5)
 
7
 
(10)
   Other changes in net exposure
1,425
6
 
(190)
(4)
 
(136)
(17)
 
1,099
(15)
   Other (P&L only items)
 
-
 
-
 
-
 
-
Income statement (releases)/charges
 
(16)
 
8
 
(1)
 
(9)
Amounts written-off
-
-
 
-
-
 
(10)
(10)
 
(10)
(10)
Unwinding of discount
 
-
 
-
 
(5)
 
(5)
At 30 June 2025
28,331
71
 
3,213
58
 
506
222
 
32,050
351
Net carrying amount
28,260
 
 
3,155
 
 
284
 
 
31,699
 
At 1 January 2024
26,040
94
 
3,155
89
 
606
195
 
29,801
378
2024 movements
486
(26)
 
(180)
(27)
 
(43)
32
 
263
(21)
At 30 June 2024
26,526
68
 
2,975
62
 
563
227
 
30,064
357
Net carrying amount
26,458
 
 
2,913
 
 
336
 
 
29,707
 
 
 
 
-
ECL reduced marginally across all stages in the first half of 2025. Flows to Stage 3 and associated charges were notably reduced from the first half of 2024 and more than offset by a reduction on other existing Stage 3 exposures.
 
-
Exposures in Stage 2 increased as flows into Stage 2 were higher than flows out and repayments, but remained at broadly 10% of total good book exposure.
 
-
Performing ECL reductions were driven by improved risk metrics and reductions in post model adjustments. 
 
 
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Flow statements (reviewed)
 
 
 
Stage 1
 
Stage 2
 
Stage 3
 
Total
 
Financial
 
 
Financial
 
 
Financial
 
 
Financial
 
 
assets
ECL
 
assets
ECL
 
assets
ECL
 
assets
ECL
Commercial & Institutional - other
£m
£m
 
£m
£m
 
£m
£m
 
£m
£m
At 1 January 2025
93,724
37
 
1,739
12
 
123
57
 
95,586
106
Currency translation and other adjustments
(1,287)
-
 
(8)
-
 
-
8
 
(1,295)
8
Inter-group transfers
(5)
-
 
(16)
-
 
-
-
 
(21)
-
Transfers from Stage 1 to Stage 2
(541)
(1)
 
541
1
 
-
-
 
-
-
Transfers from Stage 2 to Stage 1
1,266
5
 
(1,266)
(5)
 
-
-
 
-
-
Transfers to Stage 3
(64)
-
 
(18)
(1)
 
82
1
 
-
-
Transfers from Stage 3
3
-
 
4
1
 
(7)
(1)
 
-
-
   Net re-measurement of ECL on stage transfer
 
(3)
 
2
 
38
 
37
   Changes in risk parameters
 
(6)
 
-
 
17
 
11
   Other changes in net exposure
(25)
6
 
(96)
(1)
 
(16)
-
 
(137)
5
   Other (P&L only items)
 
-
 
-
 
-
 
-
Income statement (releases)/charges
 
(3)
 
1
 
55
 
53
Amounts written-off
-
-
 
-
-
 
(1)
(1)
 
(1)
(1)
Unwinding of discount
 
-
 
-
 
(1)
 
(1)
At 30 June 2025
93,071
38
 
880
9
 
181
118
 
94,132
165
Net carrying amount
93,033
 
 
871
 
 
63
 
 
93,967
 
At 1 January 2024
88,860
36
 
1,599
14
 
101
22
 
90,560
72
2024 movements
889
(3)
 
(628)
(5)
 
34
32
 
295
24
At 30 June 2024
89,749
33
 
971
9
 
135
54
 
90,855
96
Net carrying amount
89,716
 
 
962
 
 
81
 
 
90,759
 
 
 
 
-
ECL increased, primarily driven by Stage 3 exposures that defaulted in the first half of 2025.
 
-
The portion of good book exposure in Stage 2 reduced with flows from Stage 1 into Stage 2 more than offset by flows back to Stage 1. 
 
-
Despite the increase in Stage 3 exposure, combined Stage 2 and Stage 3 exposure reduced and continued to be less than 2% of the total assets.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Stage 2 decomposition by a significant increase in credit risk trigger
 
The tables that follow show decomposition for the Personal and Non-Personal portfolios.
 
Mortgages
 
Credit cards
 
Other
 
Total
30 June 2025
£m
%
 
£m
%
 
£m
%
 
£m
%
Personal trigger (1)
 
 
 
 
 
 
 
PD movement
14,701
68.3
 
1,412
73.7
 
771
53.0
 
16,884
67.9
PD persistence
4,076
19.0
 
372
19.4
 
279
19.2
 
4,727
19.0
Adverse credit bureau recorded with credit reference agency
956
4.5
 
81
4.2
 
124
8.5
 
1,161
4.7
Forbearance support provided
227
1.1
 
2
0.1
 
10
0.7
 
239
1.0
Customers in collections
169
0.8
 
12
0.6
 
21
1.4
 
202
0.8
Collective SICR and other reasons (2)
1,217
5.7
 
38
2.0
 
236
16.2
 
1,491
6.0
Days past due >30
131
0.6
 
-
-
 
14
1.0
 
145
0.6
 
21,477
100.0
 
1,917
100.0
 
1,455
100.0
 
24,849
100.0
 
31 December 2024
 
 
 
 
 
 
 
Personal trigger (1)
 
PD movement
14,480
68.8
 
1,425
72.9
 
809
49.9
 
16,714
67.8
PD persistence
3,951
18.8
 
414
21.2
 
388
23.9
 
4,753
19.3
Adverse credit bureau recorded with credit reference agency
936
4.4
 
71
3.6
 
119
7.3
 
1,126
4.6
Forbearance support provided
189
0.9
 
1
0.1
 
9
0.6
 
199
0.8
Customers in collections
169
0.8
 
3
0.2
 
2
0.1
 
174
0.7
Collective SICR and other reasons (2)
1,248
5.9
 
39
2.0
 
290
17.9
 
1,577
6.4
Days past due >30
88
0.4
 
-
-
 
5
0.3
 
93
0.4
 
21,061
100.0
 
1,953
100.0
 
1,622
100.0
 
24,636
100.0
 
 
For the notes to the table refer to the following page.
 
-
The level of PD driven deterioration remained consistent with 31 December 2024, reflecting stability in portfolio PDs and underlying portfolio arrears trends.
 
-
Higher risk mortgage customers who utilised the new Mortgage Charter measures continued to be collectively migrated into Stage 2 and were captured in the collective SICR and other reasons category.
 
-
Accounts that were less than 30 days past due continued to represent the vast majority of the Stage 2 population.
 
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Stage 2 decomposition by a significant increase in credit risk trigger
 
Corporate and other (3)
 
Financial institutions
 
Sovereign
 
Total
30 June 2025
£m
%
 
£m
%
 
£m
%
 
£m
%
Non-Personal trigger (1)
 
 
 
 
 
 
 
PD movement
11,814
80.0
 
284
67.3
 
141
99.3
 
12,239
79.9
PD persistence
226
1.5
 
3
0.7
 
-
-
 
229
1.5
Heightened Monitoring and Risk of Credit Loss
1,761
11.9
 
11
2.6
 
-
-
 
1,772
11.5
Forbearance support provided
345
2.3
 
-
-
 
-
-
 
345
2.2
Customers in collections
33
0.2
 
-
-
 
-
-
 
33
0.2
Collective SICR and other reasons (2)
380
2.6
 
124
29.4
 
1
0.7
 
505
3.3
Days past due >30
221
1.5
 
-
-
 
-
-
 
221
1.4
 
14,780
100.0
 
422
100.0
 
142
100.0
 
15,344
100.0
 
31 December 2024
 
 
 
 
 
 
 
Non-Personal trigger (1)
 
PD movement
11,800
81.6
 
971
78.2
 
-
-
 
12,771
80.6
PD persistence
310
2.1
 
2
0.2
 
-
-
 
312
2.0
Heightened Monitoring and Risk of Credit Loss
1,599
11.1
 
83
6.7
 
132
99.2
 
1,814
11.5
Forbearance support provided
229
1.6
 
-
-
 
-
-
 
229
1.4
Customers in collections
34
0.2
 
-
-
 
-
-
 
34
0.2
Collective SICR and other reasons (2)
396
2.7
 
172
13.9
 
1
0.8
 
569
3.6
Days past due >30
96
0.7
 
13
1.0
 
-
-
 
109
0.7
 
14,464
100.0
 
1,241
100.0
 
133
100.0
 
15,838
100.0
 
(1)     The table is prepared on a hierarchical basis from top to bottom, for example, accounts with PD deterioration may also trigger backstop(s) but are only reported under PD deterioration.
(2)     Includes cases where a PD assessment cannot be made and accounts where the PD has deteriorated beyond a prescribed backstop threshold aligned to risk management practices.
 
-
Stage 2 loans were broadly stable compared to 31 December 2024. PD movement continued to capture the vast majority of loans in Stage 2, with values marginally reduced, reflective of improved PDs from point-in-time economic metrics.
 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Asset quality (reviewed)
 
The table below shows asset quality bands of gross loans and ECL, by stage, for the Personal portfolio.
 
Gross loans
 
ECL provisions
 
ECL provisions coverage
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
30 June 2025
£m
£m
£m
£m
 
£m
£m
£m
£m
 
%
%
%
%
Mortgages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
111,678
8,954
-
120,632
 
24
15
-
39
 
-
0.2
-
-
AQ5-AQ8
77,908
11,465
-
89,373
 
35
29
-
64
 
-
0.3
-
0.1
AQ9 
157
1,058
-
1,215
 
-
7
-
7
 
-
0.7
-
0.6
AQ10 
-
-
2,116
2,116
 
-
-
276
276
 
-
-
13.0
13.0
 
189,743
21,477
2,116
213,336
 
59
51
276
386
 
-
0.2
13.0
0.2
Credit cards
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
130
-
-
130
 
1
-
-
1
 
0.8
-
-
0.8
AQ5-AQ8
5,858
1,817
-
7,675
 
126
178
-
304
 
2.2
9.8
-
4.0
AQ9 
23
100
-
123
 
1
19
-
20
 
4.4
19.0
-
16.3
AQ10 
-
-
209
209
 
-
-
147
147
 
-
-
70.3
70.3
 
6,011
1,917
209
8,137
 
128
197
147
472
 
2.1
10.3
70.3
5.8
Other personal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
751
104
-
855
 
6
11
-
17
 
0.8
10.6
-
2.0
AQ5-AQ8
8,214
1,209
-
9,423
 
167
131
-
298
 
2.0
10.8
-
3.2
AQ9 
59
142
-
201
 
5
36
-
41
 
8.5
25.4
-
20.4
AQ10 
-
-
960
960
 
-
-
743
743
 
-
-
77.4
77.4
 
9,024
1,455
960
11,439
 
178
178
743
1,099
 
2.0
12.2
77.4
9.6
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
112,559
9,058
-
121,617
 
31
26
-
57
 
-
0.3
-
0.1
AQ5-AQ8
91,980
14,491
-
106,471
 
328
338
-
666
 
0.4
2.3
-
0.6
AQ9 
239
1,300
-
1,539
 
6
62
-
68
 
2.5
4.8
-
4.4
AQ10 
-
-
3,285
3,285
 
-
-
1,166
1,166
 
-
-
35.5
35.5
 
204,778
24,849
3,285
232,912
 
365
426
1,166
1,957
 
0.2
1.7
35.5
0.8

 
 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Asset quality (reviewed)
 
Gross loans
 
ECL provisions
 
ECL provisions coverage
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
31 December 2024
£m
£m
£m
£m
 
£m
£m
£m
£m
 
%
%
%
%
Mortgages
 
AQ1-AQ4
104,793
8,416
-
113,209
 
29
16
-
45
 
-
0.2
-
-
AQ5-AQ8
81,263
11,683
-
92,946
 
48
38
-
86
 
0.1
0.3
-
0.1
AQ9 
194
962
-
1,156
 
-
6
-
6
 
-
0.6
-
0.5
AQ10 
-
-
2,535
2,535
 
-
-
325
325
 
-
-
12.8
12.8
 
186,250
21,061
2,535
209,846
 
77
60
325
462
 
-
0.3
12.8
0.2
Credit cards
 
AQ1-AQ4
128
-
-
128
 
1
-
-
1
 
0.8
-
-
0.8
AQ5-AQ8
4,650
1,866
-
6,516
 
75
169
-
244
 
1.6
9.1
-
3.7
AQ9 
23
87
-
110
 
1
17
-
18
 
4.4
19.5
-
16.4
AQ10 
-
-
176
176
 
-
-
118
118
 
-
-
67.1
67.1
 
4,801
1,953
176
6,930
 
77
186
118
381
 
1.6
9.5
67.1
5.5
Other personal
 
AQ1-AQ4
691
127
-
818
 
6
14
-
20
 
0.9
11.0
-
2.4
AQ5-AQ8
6,521
1,359
-
7,880
 
120
134
-
254
 
1.8
9.9
-
3.2
AQ9 
55
136
-
191
 
4
35
-
39
 
7.3
25.7
-
20.4
AQ10 
-
-
860
860
 
-
-
656
656
 
-
-
76.3
76.3
 
7,267
1,622
860
9,749
 
130
183
656
969
 
1.8
11.3
76.3
9.9
Total
 
AQ1-AQ4
105,612
8,543
-
114,155
 
36
30
-
66
 
-
0.4
-
0.1
AQ5-AQ8
92,434
14,908
-
107,342
 
243
341
-
584
 
0.3
2.3
-
0.5
AQ9 
272
1,185
-
1,457
 
5
58
-
63
 
1.8
4.9
-
4.3
AQ10 
-
-
3,571
3,571
 
-
-
1,099
1,099
 
-
-
30.8
30.8
 
198,318
24,636
3,571
226,525
 
284
429
1,099
1,812
 
0.1
1.7
30.8
0.8
 
-
The portfolios acquired from Sainsbury's Bank, increased exposure to AQ5-AQ8 within the credit cards and other personal segments. 
 
-
Stage 3 inflows remained broadly stable. The reduction in Stage3/AQ10 ratio was influenced at a total level 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/AQ10 back to the good book.
 

 
Risk and capital management continued
 
Credit risk - Banking activities continued
 
Asset quality (reviewed)
 
The table below shows asset quality bands of gross loans and ECL, by stage, for the Non-Personal portfolio.
 
Gross loans
 
ECL provisions
 
ECL provisions coverage
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
30 June 2025
£m
£m
£m
£m
 
£m
£m
£m
£m
 
%
%
%
%
Corporate and other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
40,896
2,555
-
43,451
 
28
18
-
46
 
0.1
0.7
-
0.1
AQ5-AQ8
54,804
11,982
-
66,786
 
204
268
-
472
 
0.4
2.2
-
0.7
AQ9 
37
243
-
280
 
-
19
-
19
 
-
7.8
-
6.8
AQ10 
-
-
2,394
2,394
 
-
-
990
990
 
-
-
41.4
41.4
 
95,737
14,780
2,394
112,911
 
232
305
990
1,527
 
0.2
2.1
41.4
1.4
Financial institutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
64,735
260
-
64,995
 
20
3
-
23
 
-
1.2
-
-
AQ5-AQ8
5,599
161
-
5,760
 
17
5
-
22
 
0.3
3.1
-
0.4
AQ9 
1
1
-
2
 
-
-
-
-
 
-
-
-
-
AQ10 
-
-
127
127
 
-
-
99
99
 
-
-
78.0
78.0
 
70,335
422
127
70,884
 
37
8
99
144
 
0.1
1.9
78.0
0.2
Sovereign
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
894
1
-
895
 
14
1
-
15
 
1.6
100.0
-
1.7
AQ5-AQ8
131
-
-
131
 
-
-
-
-
 
-
-
-
-
AQ 9
-
141
-
141
 
-
1
-
1
 
-
0.7
-
0.7
AQ10 
-
-
17
17
 
-
-
6
6
 
-
-
35.3
35.3
 
1,025
142
17
1,184
 
14
2
6
22
 
1.4
1.4
35.3
1.9
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AQ1-AQ4
106,525
2,816
-
109,341
 
62
22
-
84
 
0.1
0.8
-
0.1
AQ5-AQ8
60,534
12,143
-
72,677
 
221
273
-
494
 
0.4
2.3
-
0.7
AQ9 
38
385
-
423
 
-
20
-
20
 
-
5.2
-
4.7
AQ10 
-
-
2,538
2,538
 
-
-
1,095
1,095
 
-
-
43.1
43.1
 
167,097
15,344
2,538
184,979
 
283
315
1,095
1,693
 
0.2
2.1
43.1
0.9
 
 

Risk and capital management continued
 
Credit risk - Banking activities continued
 
Asset quality (reviewed)
 
Gross loans
 
ECL provisions
 
ECL provisions coverage
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
31 December 2024
£m
£m
£m
£m
 
£m
£m
£m
£m
 
%
%
%
%
Corporate and other
 
AQ1-AQ4
41,509
2,409
-
43,918
 
32
19
-
51
 
0.1
0.8
-
0.1
AQ5-AQ8
53,448
11,783
-
65,231
 
232
306
-
538
 
0.4
2.6
-
0.8
AQ9 
34
272
-
306
 
-
19
-
19
 
-
7.0
-
6.2
AQ10 
-
-
2,279
2,279
 
-
-
896
896
 
-
-
39.3
39.3
 
94,991
14,464
2,279
111,734
 
264
344
896
1,504
 
0.3
2.4
39.3
1.4
Financial institutions
 
AQ1-AQ4
64,845
233
-
65,078
 
21
2
-
23
 
-
0.9
-
-
AQ5-AQ8
4,176
996
-
5,172
 
17
9
-
26
 
0.4
0.9
-
0.5
AQ9 
-
12
-
12
 
-
1
-
1
 
-
8.3
-
8.3
AQ10 
-
-
59
59
 
-
-
40
40
 
-
-
67.8
67.8
 
69,021
1,241
59
70,321
 
38
12
40
90
 
0.1
1.0
67.8
0.1
Sovereign
 
AQ1-AQ4
1,364
1
-
1,365
 
12
1
-
13
 
0.9
100.0
-
1.0
AQ5-AQ8
127
-
-
127
 
-
-
-
-
 
-
-
-
-
AQ9 
-
132
-
132
 
-
1
-
1
 
-
0.8
-
0.8
AQ10 
-
-
21
21
 
-
-
5
5
 
-
-
23.8
23.8
 
1,491
133
21
1,645
 
12
2
5
19
 
0.8
1.5
23.8
1.2
Total
 
AQ1-AQ4
107,718
2,643
-
110,361
 
65
22
-
87
 
0.1
0.8
-
0.1
AQ5-AQ8
57,751
12,779
-
70,530
 
249
315
-
564
 
0.4
2.5
-
0.8
AQ9 
34
416
-
450
 
-
21
-
21
 
-
5.1
-
4.7
AQ10 
-
-
2,359
2,359
 
-
-
941
941
 
-
-
39.9
39.9
 
165,503
15,838
2,359
183,700
 
314
358
941
1,613
 
0.2
2.3
39.9
0.9
 
-
Asset quality was broadly stable since 31 December 2024. The majority of exposure for corporates and other continued to be in the AQ5 to AQ8 band, which also accounted for the largest increase in the period.
 
-
As expected, exposures in higher AQ bands attracted higher coverage ratios.
 
 
 
Risk and capital management continued
 
Credit risk - Trading activities
 
This section details the credit risk profile of NatWest Group's trading activities.
 
Securities financing transactions and collateral (reviewed)
 
The table below shows securities financing transactions in Commercial & Institutional and Central items & other. Balance sheet captions include balances held at all classifications under IFRS.
 
 Reverse repos 
 
 Repos 
 
 
 Of which: 
 Outside netting 
 
 
 Of which: 
 Outside netting 
 
 Total 
 can be offset 
 arrangements 
 
 Total 
 can be offset 
 arrangements 
30 June 2025
 £m 
 £m 
 £m 
 
 £m 
 £m 
 £m 
Gross
95,498
94,568
930
 
86,696
83,992
2,704
IFRS offset
(33,802)
(33,802)
-
 
(33,802)
(33,802)
-
Carrying value
61,696
60,766
930
 
52,894
50,190
2,704
Master netting arrangements
(517)
(517)
-
 
(517)
(517)
-
Securities collateral
(59,424)
(59,424)
-
 
(49,673)
(49,673)
-
Potential for offset not recognised under IFRS
(59,941)
(59,941)
-
 
(50,190)
(50,190)
-
Net
1,755
825
930
 
2,704
-
2,704
 
 
 
 
 
31 December 2024
 
 
 
 
 
 
 
Gross
87,901
87,861
40
 
68,024
67,321
703
IFRS offset
(23,883)
(23,883)
-
 
(23,883)
(23,883)
-
Carrying value
64,018
63,978
40
 
44,141
43,438
703
Master netting arrangements
(1,549)
(1,549)
-
 
(1,549)
(1,549)
-
Securities collateral
(62,217)
(62,217)
-
 
(41,889)
(41,889)
-
Potential for offset not recognised under IFRS
(63,766)
(63,766)
-
 
(43,438)
(43,438)
-
Net
252
212
40
 
703
-
703
 
 
 
Risk and capital management continued
 
Credit risk - Trading activities continued
 
Derivatives (reviewed)
 
The table below shows derivatives by type of contract. The master netting agreements and collateral shown do not result in a net presentation on the balance sheet under IFRS. A significant proportion of the derivatives relate to trading activities in Commercial & Institutional. The table also includes hedging derivatives in Central items & other.
 
 
 
30 June 2025
 
31 December 2024
 
Notional
 
 
 
 
 
 
 
 
GBP
USD
EUR
Other
Total
Assets
Liabilities
 
Notional
Assets
Liabilities
 
£bn
£bn
£bn
£bn
£bn
£m
£m
 
£bn
£m
£m
Gross exposure
 
90,087
84,878
 
 
97,152
93,109
IFRS offset
 
(17,077)
(18,895)
 
 
(18,746)
(21,027)
Carrying value
4,137
3,397
5,907
1,165
14,606
73,010
65,983
 
13,628
78,406
72,082
Of which:
 
 
 
Interest rate (1)
3,793
1,824
5,183
208
11,008
35,028
28,317
 
10,333
37,499
31,532
Exchange rate
341
1,569
717
957
3,584
37,897
37,496
 
3,279
40,797
40,306
Credit
1
4
7
-
12
85
170
 
14
110
244
Equity and commodity
2
-
-
-
2
-
-
 
2
-
-
Carrying value
4,137
3,397
5,907
1,165
14,606
73,010
65,983
 
13,628
78,406
72,082
Counterparty mark-to-market netting
 
(57,011)
(57,011)
 
(61,883)
(61,883)
Cash collateral
 
(9,041)
(4,723)
 
(10,005)
(5,801)
Securities collateral
 
(3,814)
(1,274)
 
 
(4,072)
(896)
Net exposure
 
3,144
2,975
 
 
2,446
3,502
Banks (2)
 
175
348
 
214
345
Other financial institutions (3)
 
1,839
1,286
 
1,429
1,456
Corporate (4)
 
1,071
1,318
 
769
1,669
Government (5)
 
59
23
 
 
34
32
Net exposure
 
3,144
2,975
 
 
2,446
3,502
UK
 
1,494
1,710
 
1,061
1,774
Europe
 
994
873
 
875
978
US
 
555
330
 
443
604
RoW
 
101
62
 
 
67
146
Net exposure
 
3,144
2,975
 
 
2,446
3,502
 
 
 
Asset quality of uncollateralised derivative assets
 
 
AQ1-AQ4
 
2,500
 
 
2,049
 
AQ5-AQ8
 
641
 
 
394
 
AQ9-AQ10
 
3
 
 
3
 
Net exposure
 
3,144
 
 
2,446
 
 
(1)       The notional amount of interest rate derivatives included £7,725 billion (31 December 2024 - £7,321 billion) in respect of contracts cleared through central clearing counterparties.
(2)       Transactions with certain counterparties with whom NatWest Group has netting arrangements but collateral is not posted on a daily basis; certain transactions with specific terms that may not fall within netting and collateral arrangements; derivative positions in certain jurisdictions where the collateral agreements are not deemed to be legally enforceable.
(3)       Includes transactions with securitisation vehicles and funds where collateral posting is contingent on NatWest Group's external rating.
(4)       Mainly large corporates with whom NatWest Group may have netting arrangements in place, but operational capability does not support collateral posting.
(5)       Sovereigns and supranational entities with no collateral arrangements, collateral arrangements that are not considered enforceable, or one-way collateral agreements in their favour.
 
 
 
Risk and capital management continued
 
Credit risk - Trading activities continued
 
Debt securities (reviewed)
 
The table below shows debt securities held at mandatory fair value through profit or loss by issuer as well as ratings based on the lowest of Standard & Poor's, Moody's and Fitch. Refer to Note 9 Trading assets and liabilities for details on short positions.
 
Central and local government
 
 
UK
US
Other
Financial institutions
Corporate
Total
30 June 2025
£m
£m
£m
£m
£m
£m
AAA
-
-
2,610
1,572
-
4,182
AA to AA+
-
6,832
562
393
2
7,789
A to AA-
3,961
-
2,618
955
95
7,629
BBB- to A-
-
-
916
411
549
1,876
Non-investment grade
-
-
-
65
132
197
Total
3,961
6,832
6,706
3,396
778
21,673
 
31 December 2024
 
 
 
 
 
 
AAA
-
-
1,335
1,368
-
2,703
AA to AA+
-
3,734
74
569
2
4,379
A to AA-
2,077
-
1,266
381
519
4,243
BBB- to A-
-
-
831
562
885
2,278
Non-investment grade
-
-
-
108
167
275
Total
2,077
3,734
3,506
2,988
1,573
13,878
 
 
 
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
13.6%
(2024 - 13.6%)
The CET1 ratio remained static due to a £0.9 billion increase in CET1 capital offset by a £6.9 billion increase in RWAs. The CET1 capital increase was mainly driven by an attributable profit to ordinary shareholders in the period of £2.5 billion and other movements on reserves and regulatory adjustments of £0.4 billion partially offset by a share buyback of £0.8 billion and a foreseeable ordinary dividend accrual of £1.2 billion.      
 
   
RWAs
£190.1bn
(2024 - £183.2bn)
Total RWAs increased by £6.9 billion to £190.1 billion during H1 2025 reflecting: −           an increase in credit risk RWA's of £4.6 billion, primarily driven by lending growth, balances acquired from Sainsbury's Bank and CRD IV model updates. These increases were partially offset by reductions due to active RWA management, movements in risk metrics and the impact of foreign exchange. −           an increase in operational risk RWAs of £2.2 billion following the annual recalculation. −           an increase in counterparty credit risk RWAs of £0.5 billion driven by an increase in over-the-counter transaction under the IMM approach. −           a decrease in market risk RWAs of £0.4 billion, driven by the IRC, reflecting changes in government bond positions.  
 
   
UK leverage ratio
5.0%
(2024 - 5.0%)
The leverage ratio remained static due to a £1.6 billion increase in Tier 1 capital offset by a £27.8 billion increase in leverage exposure. The key drivers in the leverage exposure were an increase in trading assets, other financial assets and other off balance sheet items.  
MREL ratio
32.4%
(2024 - 33.0%)
 
The Minimum Requirements of own funds and Eligible Liabilities (MREL) ratio decreased by 60 basis points driven by a £6.9 billion increase in RWAs partially offset by a £1.2 billion increase in MREL.
MREL increased to £61.7 billion driven by a £0.9 billion increase in CET1 capital, issuance of a £0.7 billion Additional Tier 1 instrument and a €1.0 billion subordinated debt Tier 2 instrument, and redemption of a £1.0 billion subordinated debt Tier 2 instrument. There was a £0.2 billion decrease in senior unsecured debt driven by new issuances totalling £3.3 billion, offset by the redemption of a €1.5 billion debt instrument, a $1.5 billion debt instrument no longer being MREL eligible, and foreign exchange movements.
 
 
 
 
Liquidity portfolio
£216.6bn
(2024 - £222.3bn)
 
The liquidity portfolio decreased by £5.7 billion to £216.6 billion compared with Q4 2024. Primary liquidity decreased by £0.5 billion to £160.6 billion, driven by increased lending (including balances acquired from Sainsbury's Bank) partially offset by issuances. Secondary liquidity decreased by £5.2 billion due to reduced pre-positioned collateral at the Bank of England.
 
 
 
 
LCR spot
147%
(2024 - 150%)
 
The spot Liquidity Coverage Ratio (LCR) decreased by 3% to 147%, during H1 2025, driven by increased lending (including balances acquired from Sainsbury's Bank) partially offset by issuances.
 
LCR average
150%
(2024 - 151%)
 
 
 
 
NSFR spot
134%
(2024 - 137%)
 
The spot Net Stable Funding Ratio (NSFR) decreased 3% to 134% driven by increased lending (including balances acquired from Sainsbury's Bank), partially offset by increased issuances.
 
NSFR average
136%
(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
1.8%
 
2.4%
 
3.2%
 
Minimum Capital Requirements
6.3%
 
8.4%
 
11.2%
 
Capital conservation buffer
2.5%
 
2.5%
 
2.5%
 
Countercyclical capital buffer (1) 
1.7%
 
1.7%
 
1.7%
 
MDA threshold (2)
10.5%
 
 
n/a
 
 
n/a
 
Overall capital requirement
10.5%
 
12.6%
 
15.4%
 
Capital ratios at 30 June 2025
13.6%
 
16.7%
 
19.7%
 
Headroom (3,4)
3.1%
 
4.1%
 
4.3%
 
 
 
 
 
 
 
 
(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 table below sets out the key capital and leverage metrics in accordance with current PRA rules.
 
30 June
31 December
 
2025
2024
Capital adequacy ratios (1)
%
%
CET1
13.6
13.6
Tier 1
16.7
16.5
Total
19.7
19.7
 
 
 
RWAs
£m
£m
Credit risk
152,785
148,078
Counterparty credit risk
7,626
7,103
Market risk
5,777
6,219
Operational risk
23,959
21,821
Total RWAs
190,147
183,221
 
 
 
Capital
£m
£m
CET1
25,799
24,928
Tier1
31,804
30,187
Total
37,531
36,105
 
 
 
Leverage ratios (2)
£m
£m
Tier 1 capital
31,804
30,187
UK leverage exposure
635,551
607,799
UK leverage ratio (%)
5.0%
5.0%
UK average Tier 1 capital 
31,795
29,923
UK average leverage exposure
629,158
600,354
UK average leverage ratio (%)
5.1%
5.0%
 
(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)       The UK leverage exposure and Tier 1 capital are calculated in accordance with current PRA rules. The IFRS 9 transitional capital rules in respect of ECL 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 and leverage ratios continued
 
30 June
31 December
 
2025
2024
Leverage
£m
£m
Cash and balances at central banks
90,706
92,994
Trading assets
56,706
48,917
Derivatives
73,010
78,406
Financial assets
486,305
469,599
Other assets
24,051
18,069
Total assets
730,778
707,985
Derivatives
 
 
   - netting and variation margin
(69,191)
(76,101)
   - potential future exposures
16,831
16,692
Securities financing transactions gross up
1,510
2,460
Other off balance sheet items
62,497
59,498
Regulatory deductions and other adjustments
(17,869)
(11,014)
Claims on central banks
(87,228)
(89,299)
Exclusion of bounce back loans
(1,777)
(2,422)
UK leverage exposure 
635,551
607,799
UK leverage ratio (%)
5.0
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 half year ended 30 June 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
2,488
-
-
2,488
Share buyback
(750)
-
-
(750)
Foreseeable ordinary dividends 
(1,244)
-
-
(1,244)
Foreign exchange reserve
(82)
-
-
(82)
FVOCI reserve
95
-
-
95
Own credit
(4)
-
-
(4)
Share based remuneration and shares vested under employee share schemes
142
-
-
142
Goodwill and intangibles deduction
80
-
-
80
Deferred tax assets
149
-
-
149
Prudential valuation adjustments
20
-
-
20
New issues of capital instruments
-
746
823
1,569
Redemption of capital instruments
-
-
(1,000)
(1,000)
Foreign exchange movements
-
-
(54)
(54)
Adjustment under IFRS 9 transitional arrangements
(33)
-
-
(33)
Expected loss less impairment
27
-
-
27
Other movements
(17)
-
40
23
At 30 June 2025
25,799
6,005
5,727
37,531
 
-
For CET1 movements refer to the key points on page 56.
 
-
The AT1 movement reflects the £0.7 billion 7.500% Reset Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes issued in March 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 and foreign exchange movements 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.
 
-
Within other movements for Tier 2 capital, there was an increase as a result of excess IRB provisions over expected losses in the period.
 
Capital generation pre-distributions
 
30 June
31 December
 
2025
2024
 
£
£
CET1 
25,799
24,928
CET1 capital pre-distributions (1)
27,793
28,920
RWAs 
190,147
183,221
 
 
 
 
 % 
 % 
CET1 ratio - opening
13.61
13.36
CET1 pre-distributions - closing
14.62
15.78
Capital generation pre-distributions (1)
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
 
Capital resources (reviewed)
 
NatWest Group's regulatory capital is assessed against minimum requirements that are set out under the UK CRR to determine the strength of its capital base. This note shows a reconciliation of shareholders' equity to regulatory capital.
 
30 June
31 December
 
2025
2024
 
£m
£m
Shareholders' equity (excluding non-controlling interests)
 
 
Shareholders' equity
 41,958
 39,350
Other equity instruments
(6,029)
(5,280)
 
 35,929
 34,070
Regulatory adjustments and deductions
 
 
Own credit
 24
 28
Defined benefit pension fund adjustment
(157)
(147)
Cash flow hedging reserve 
 971
 1,443
Deferred tax assets
(935)
(1,084)
Prudential valuation adjustments
(210)
(230)
Goodwill and other intangible assets
(7,464)
(7,544)
Expected loss less impairment
-
(27)
Foreseeable ordinary dividends
(1,244)
(1,249)
Adjustment for trust assets (1)
(365)
(365)
Foreseeable charges (2)
(750)
-
Adjustment under IFRS 9 transitional arrangements 
-
 33
 
(10,130)
(9,142)
CET1 capital
 25,799
 24,928
Additional Tier 1 (AT1) capital
 
 
Qualifying instruments and related share premium
 6,005
 5,259
AT1 capital
 6,005
 5,259
Tier 1 capital
 31,804
 30,187
Qualifying Tier 2 capital
 
 
Qualifying instruments and related share premium
 5,687
 5,918
Other regulatory adjustments
 40
-
Tier 2 capital
 5,727
 5,918
Total regulatory capital
 37,531
 36,105
 
(1)       Prudent deduction in respect of agreement with the pension fund to establish legal structure to remove dividend linked contribution.
 
(2)       For June 2025, the foreseeable charge of £750 million relates to a share buyback.
 
 
 
Risk and capital management continued
 
Capital, liquidity and funding risk continued
 
Minimum requirements of own funds and eligible liabilities (MREL)
 
The following table illustrates the components of MREL in NatWest Group and operating subsidiaries.
 
 
30 June 2025
 
31 December 2024
 
 
Balance
Regulatory
MREL
 
 
Balance
Regulatory
MREL
 
Par value (1)
sheet value
value
Value (2)
 
Par value (1)
sheet value
value
Value (2)
 
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
CET1 capital (3)
25.8
25.8
25.8
25.8
 
24.9
24.9
24.9
24.9
Tier 1 capital: end-point CRR compliant AT1
 
 
 
 
 
 
 
 
 
   of which: NatWest Group plc (holdco)
6.0
6.0
6.0
6.0
 
5.3
5.3
5.3
5.3
   of which: NatWest Group plc operating  subsidiaries (opcos)
-
-
-
-
 
-
-
-
-
 
6.0
6.0
6.0
6.0
 
5.3
5.3
5.3
5.3
Tier 1 capital: end-point CRR non-compliant
 
 
 
   of which: holdco
-
-
-
-
 
-
-
-
-
   of which: opcos
0.1
0.1
-
-
 
0.1
0.1
-
-
 
0.1
0.1
-
-
 
0.1
0.1
-
-
Tier 2 capital: end-point CRR compliant
 
 
 
   of which: holdco
5.7
5.6
5.7
5.7
 
5.9
5.7
5.9
5.9
   of which: opcos
-
-
-
-
 
-
-
-
-
 
5.7
5.6
5.7
5.7
 
5.9
5.7
5.9
5.9
Tier 2 capital: end-point CRR non-compliant
 
 
 
   of which: holdco
-
-
-
-
 
-
-
-
-
   of which: opcos
0.2
0.3
-
-
 
0.2
0.3
-
-
 
0.2
0.3
-
-
 
0.2
0.3
-
-
Senior unsecured debt securities 
 
 
 
   of which: holdco
25.3
25.2
-
24.2
 
24.4
24.0
-
24.4
   of which: opcos 
36.9
36.9
-
-
 
33.7
33.6
-
-
 
62.2
62.1
-
24.2
 
58.1
57.6
-
24.4
Tier 2 capital
 
 
 
   Other regulatory adjustments
-
-
-
-
 
-
-
-
-
 
 
 
 
Total
100.0
99.9
37.5
61.7
 
94.5
93.9
36.1
60.5
RWAs
 
190.1
 
183.2
UK leverage exposure
 
635.6
 
607.8
MREL as a ratio of RWAs
 
32.4%
 
33.0%
MREL as a ratio of UK leverage exposure
 
9.7%
 
9.9%
 
(1)
Par value reflects the nominal value of securities issued.
(2)
MREL value reflects NatWest Group's interpretation of the Bank of England's approach to setting a MREL, published in December 2021 (Updating June 2018). Liabilities excluded from MREL include instruments with less than one year remaining to maturity, structured debt, operating company senior debt, and other instruments that do not meet the MREL criteria. The MREL calculation includes Tier 1 and Tier 2 securities before the application of any regulatory caps or adjustments.
(3)
Shareholders' equity was £42 billion (2024 - £39.4 billion).
 
 
 
 
Risk and capital management continued
 
Capital, liquidity and funding risk continued
 
Minimum requirements of own funds and eligible liabilities (MREL) continued
 
The following table illustrates the components of the stock of outstanding issuance in NatWest Group plc and its operating subsidiaries including external and internal issuances.
 
 
 
NatWest
 
 
 
NatWest
NWM
RBS
 
NatWest
Holdings
NWB
RBS
NWM
Markets
Securities
International
 
Group plc
Limited
Plc
plc
Plc
N.V.
Inc. (6)
Limited (7)
 
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
Additional Tier 1
Externally issued
              6.0 
                 -   
              0.1 
               -   
               -   
                 -   
               -   
                 -   
Additional Tier 1
Internally issued
               -   
                4.4 
              3.8 
              0.5 
              2.1 
                0.2 
               -   
                0.3 
 
 
              6.0 
                4.4 
              3.9 
              0.5 
              2.1 
                0.2 
               -   
                0.3 
Tier 2
Externally issued
              5.6 
                 -   
               -   
               -   
               -   
                0.2 
               -   
                 -   
Tier 2
Internally issued
               -   
                4.9 
              4.1 
              0.5 
              1.0 
                0.1 
              0.3 
                 -   
 
              5.6 
                4.9 
              4.1 
              0.5 
              1.0 
                0.3 
              0.3 
                 -   
Senior unsecured
Externally issued
            25.2 
                 -   
               -   
               -   
               -   
                 -   
               -   
                 -   
Senior unsecured
Internally issued
               -   
              13.0 
              7.3 
              1.0 
              4.6 
                 -   
               -   
                0.3 
 
            25.2 
              13.0 
              7.3 
              1.0 
              4.6 
                 -   
               -   
                0.3 
Total outstanding issuance
            36.8 
              22.3 
            15.3 
              2.0 
              7.7 
                0.5 
              0.3 
                0.6 
 
(1)     For AT1 and Tier 2, the balances are the IFRS balance sheet carrying amounts, which may differ from the amount which the instrument contributes to regulatory capital. Regulatory balances exclude, for example, issuance costs and fair value movements, while dated capital is required to be amortised on a straight-line basis over the final five years of maturity.
(2)     Balance sheet amounts reported for AT1 and Tier 2 instruments are before grandfathering restrictions imposed by CRR.
(3)     Internal issuance for NWB Plc and RBS plc represents AT1, Tier 2 or Senior unsecured issuance to NWH Ltd and for NWM N.V. and NWM SI to NWM Plc.
(4)     The balances are the IFRS balance sheet carrying amounts for Senior unsecured debt category and it does not include CP, CD and short term/medium notes issued from NatWest Group operating subsidiaries.
(5)     The above table does not include CET1 balance.
(6)     NWM Securities Inc is regulated under US broker dealer rules.
(7)     RBSI Ltd - the Resolution Regime is under development in Jersey.
 
 
Risk and capital management continued
 
Capital, liquidity and funding risk continued
 
Risk-weighted assets
 
The table below analyses the movement in RWAs during the period, 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
(0.7)
-
-
-
(0.7)
Business movement
2.2
0.3
(0.4)
2.2
4.3
Risk parameter changes
(0.5)
-
-
-
(0.5)
Model updates
2.0
0.2
-
-
2.2
Acquisitions and disposals
1.6
-
-
-
1.6
At 30 June 2025
152.7
7.6
5.8
24.0
190.1
 
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
-
-
(0.7)
-
(0.7)
Business movement
1.5
0.5
2.9
(0.6)
4.3
Risk parameter changes 
0.1
-
(0.6)
-
(0.5)
Model updates
0.7
-
1.5
-
2.2
Acquisitions and disposals
1.6
-
-
-
1.6
At 30 June 2025
69.4
11.5
107.8
1.4
190.1
Credit risk
60.2
9.9
81.4
1.2
152.7
Counterparty credit risk
0.3
-
7.3
-
7.6
Market risk
0.2
-
5.6
-
5.8
Operational risk
8.7
1.6
13.5
0.2
24.0
Total RWAs
69.4
11.5
107.8
1.4
190.1
 
 
Total RWAs increased by £6.9 billion to £190.1 billion during the period mainly reflecting:
 
-
A reduction in risk-weighted assets from foreign exchange movement of £0.7 billion due to sterling appreciation versus the US dollar and depreciation versus the Euro.
 
-
An increase in business movements totalling £4.3 billion, driven by the annual recalculation of operational risk, an increase in credit risk due to lending growth partially offset by reductions due to active RWA management. A decrease in market risk was partially offset by an increase in counterparty credit risk.
 
-
A reduction in risk parameters of £0.5 billion primarily driven by movements in risk metrics within Commercial & Institutional and Retail Banking.
 
-
An increase in model updates of £2.2 billion, driven by CRD IV model updates within Commercial & Institutional and Retail Banking.
 
-
An increase in acquisitions and disposals of £1.6 billion driven by balances acquired from Sainsbury's Bank.
 

 
Risk and capital management continued
 
Capital, liquidity and funding risk continued
 
Funding sources (reviewed)
 
The table below shows the carrying values of the principal funding sources based on contractual maturity. Balance sheet captions include balances held at all classifications under IFRS 9.
 
30 June 2025
 
31 December 2024
 
Short-term
Long-term
 
 
Short-term
Long-term
 
 
less than
more than
 
 
less than
more than
 
 
1 year
1 year
Total
 
1 year
1 year
Total
 
£m
£m
£m
 
£m
£m
£m
Bank deposits
 
 
 
 
 
   Repos
17,996
-
17,996
 
11,967
-
11,967
   Other bank deposits (1)
10,495
9,657
20,152
 
9,708
9,777
19,485
 
28,491
9,657
38,148
 
21,675
9,777
31,452
Customer deposits
 
 
 
 
 
 
 
   Repos
988
-
988
 
1,363
-
1,363
   Non-bank financial institutions
53,457
10
53,467
 
48,761
241
49,002
   Personal
231,226
2,991
234,217
 
231,483
2,451
233,934
   Corporate
148,038
46
148,084
 
149,086
105
149,191
 
433,709
3,047
436,756
 
430,693
2,797
433,490
Trading liabilities (2)
 
 
 
 
 
 
 
   Repos (3)
33,014
897
33,911
 
29,752
810
30,562
   Derivative collateral
11,597
-
11,597
 
12,509
-
12,509
   Other bank customer deposits
591
280
871
 
627
268
895
   Debt securities in issue - Medium term notes
9
242
251
 
20
237
257
 
45,211
1,419
46,630
 
42,908
1,315
44,223
Other financial liabilities
 
 
 
 
 
 
 
   Customer deposits
854
1,129
1,983
 
471
1,341
1,812
   Debt securities in issue:
 
 
 
 
 
 
 
      Commercial paper and certificates of deposit
11,093
298
11,391
 
10,889
377
11,266
      Medium term notes
13,401
37,153
50,554
 
11,118
34,967
46,085
      Covered bonds
-
749
749
 
-
749
749
      Securitisation
-
1,263
1,263
 
295
880
1,175
 
25,348
40,592
65,940
 
22,773
38,314
61,087
Subordinated liabilities
48
5,958
6,006
 
1,051
5,085
6,136
Total funding
532,807
60,673
593,480
 
519,100
57,288
576,388
   Of which: available in resolution (4)
 
 
29,778
 
 
 
29,742
 
(1)       Includes £12.0 billion (31 December 2024 - £12.0 billion) relating to Term Funding Scheme with additional incentives for small and medium-sized enterprises (SME) participation.
(2)       Excludes short positions of £12.2 billion (31 December 2024 - £10.5 billion).
(3)       Comprises central & other bank repos of £9.6 billion (31 December 2024 - £7.2 billion), other financial institution repos of £20.8 billion (31 December 2024 - £20.4 billion) and other corporate repos of £3.5 billion (31 December 2024 - £3.0 billion).
(4)       Eligible liabilities (as defined in the Banking Act 2009 as amended from time to time) that meet the eligibility criteria set out in the regulations, rules, policies, guidelines, or statements of the Bank of England including the Statement of Policy published by the Bank of England in December 2021 (updating June 2018). The balance consists of £24.2 billion (31 December 2024 - £24.0 billion) under debt securities in issue (senior MREL) and £5.6 billion (31 December 2024 - £5.7 billion) under subordinated liabilities.
 
 
 
Risk and capital management continued
 
Capital, liquidity and funding risk continued
 
Liquidity portfolio (reviewed)
 
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 June 2025
 
31 December 2024
 
NatWest
NWH
UK DoL
 
NatWest
NWH
UK DoL
 
Group (1)
Group (2)
Sub
 
Group (1)
Group (2)
Sub 
 
£m
£m
£m
 
£m
£m
£m
Cash and balances at central banks 
 86,589
 55,027
 54,353
 
 88,617
 58,313
 57,523
High-quality government/MDB/PSE and GSE bonds (3)
 61,527
 44,580
 44,580
 
 58,818
 43,275
 43,275
Extremely high quality covered bonds
 4,494
 4,494
 4,494
 
 4,341
 4,340
 4,340
LCR level 1 assets
 152,610
 104,101
 103,427
 
 151,776
 105,928
 105,138
LCR level 2 Eligible Assets (4)
 7,985
 6,880
 6,880
 
 9,271
 7,957
 7,957
Primary liquidity (HQLA) (5)
 160,595
 110,981
 110,307
 
 161,047
 113,885
 113,095
Secondary liquidity
 55,997
 55,969
 55,969
 
 61,230
 61,200
 61,200
Total liquidity value
 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 The 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.
 
 
Risk and capital management continued
 
Non-traded market risk
 
Non-traded market risk is the risk to the value of assets or liabilities outside the trading book, or the risk to income, that arises from changes in market prices such as interest rates, foreign exchange rates and equity prices, or from changes in managed rates.
 
Key developments
 
-
In the UK, the base rate reduced from 4.75% at 31 December 2024 to 4.25% at 30 June 2025.
 
-
At 30 June 2025, longer-term interest rates continued to reflect expectations of future cuts to the UK base rate. The five-year sterling swap rate decreased to 3.65% at the end of June 2025 from 4.05% at the end of December 2024. The ten-year sterling swap rate also decreased, to 3.98% from 4.07% over the same period.
 
-
The structural hedge notional decreased by £1 billion to £193 billion from £194 billion, reflecting relatively stable deposits in the first half of the year.
 
-
The one-year positive sensitivity of net interest earnings to an upward 25-basis-point parallel shift in all yield curves reduced slightly, to £158 million at 30 June 2025 from £162 million at 31 December 2024. The adverse sensitivity to a downward 25-basis-point parallel shift was also broadly stable at £176 million at 30 June 2025 compared to £183 million at 31 December 2024.  
 
-
Sterling strengthened against the US dollar and weakened against the euro over the period. Against the dollar, sterling was 1.37 at 30 June 2025 compared to 1.25 at 31 December 2024. Against the euro, it was 1.17 at 30 June 2025 compared to 1.20 at 31 December 2024. Structural foreign currency exposures (excluding Additional Tier 1 economic hedges) of £2.3 billion at 30 June 2025, in sterling-equivalent nominal terms, were stable compared to 31 December 2024.
 
 
Non-traded internal VaR (1-day 99%) (reviewed)
 
The following table shows one-day internal banking book Value-at-Risk (VaR) at a 99% confidence level, split by risk type.
 
Half year ended
 
30 June 2025
 
30 June 2024
 
31 December 2024
 
 
 
 
Period
 
 
 
 
Period
 
 
 
 
Period
 
Average
Maximum
Minimum
end
 
Average
Maximum
Minimum
end
 
Average
Maximum
Minimum
end
 
£m
£m
£m
£m
 
£m
£m
£m
£m
 
£m
£m
£m
£m
Interest rate
 4.7
 6.3
 2.7
 2.8
 
24.1
28.2
17.6
17.6
 
10.3
17.4
4.0
4.0
Credit spread
 49.1
 53.8
 41.4
 48.8
 
55.6
60.2
50.7
50.7
 
48.0
50.0
45.3
48.4
Structural foreign 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   exchange rate
 6.4
 7.1
 6.0
 7.1
 
9.2
12.3
7.1
12.3
 
6.7
8.0
5.1
6.3
Equity
 7.1
 7.8
 6.1
 7.8
 
9.3
10.3
8.2
8.2
 
7.8
8.1
7.6
7.7
Pipeline risk (1)
 3.8
 5.9
 0.6
 3.1
 
5.9
12.7
3.4
12.7
 
11.2
17.3
5.3
6.1
Diversification (2)
(21.8)
 
 
(19.2)
 
(41.1)
 
 
(39.7)
 
(29.7)
 
 
(23.4)
Total
 49.3
 51.8
 42.6
 50.4
 
63.0
73.8
52.9
61.8
 
54.3
57.8
49.1
49.1
 
(1)       Pipeline risk is the risk of loss arising from Personal customers owning an option to draw down a loan - typically a mortgage - at a committed rate, where interest rate changes may result in greater or fewer customers than anticipated taking up the committed offer.
(2)       NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.
 
 
 
-
Total non-traded VaR increased slightly after April 2025 due to global tariff-related volatility. However, on an average basis, it was overall lower in H1 2025 than in 2024.
 
-
Average interest rate VaR decreased in H1 2025, reflecting action taken to manage down interest rate repricing mismatches across customer products.
 
-
Average pipeline VaR also decreased. This reflected changes in the assumptions applied to customer behaviour through the fixed-rate mortgage application process, which more closely aligned NatWest Group's estimates of future customer completions to pipeline hedging activity.
 

 
Risk and capital management continued
 
Non-traded market risk continued
 
Structural hedging
 
NatWest Group has a significant pool of stable, non and low interest-bearing liabilities, principally comprising current accounts and instant access savings, as well as its equity and reserves. A proportion of these balances are hedged, either by investing directly in longer-term fixed-rate assets (such as fixed-rate mortgages) or by using interest rate swaps, which are generally booked as cash flow hedges of floating-rate assets, in order to provide a consistent and predictable revenue stream.
 
After hedging the net interest rate exposure, NatWest Group allocates income to equity or products in structural hedges by reference to the relevant interest rate swap curve. Over time, this approach has provided a basis for stable income attribution for management purposes, to products and interest rate returns. The programme aims to track a time series of medium-term swap rates, but the yield will be affected by changes in NatWest Group's equity capital.
 
The table below shows hedge income, total yield, incremental income and the period-end and average notional balances allocated to equity and products in respect of the structural hedges managed by NatWest Group. Hedge income represents the fixed leg of the hedge. Incremental income represents the difference between hedge income and short-term cash rates. For example, the sterling overnight index average (SONIA) is used to estimate incremental income from sterling structural hedges.
 
Half year ended
 
30 June 2025
 
30 June 2024
 
31 December 2024
 
 
 
Period
 
 
 
 
 
Period
 
 
 
 
 
Period
 
 
 
Incremental
Hedge
-end
Average
Total
 
Incremental
Hedge
-end
Average
Total
 
Incremental
Hedge
-end
Average
Total
 
income
income
notional
notional
yield
 
income
income
notional
notional
yield
 
income
income
notional
notional
yield
 
£m
£m
£bn
£bn
%
 
£m
£m
£bn
£bn
%
 
£m
£m
£bn
£bn
%
Equity 
(262)
216
22
22
2.01
 
(364)
218
22
22
1.95
 
(330)
222
22
22
1.99
Product
(1,831)
1,900
172
171
2.24
 
(3,184)
1,392
175
176
1.58
 
(2,622)
1,647
172
172
1.90
Total
(2,093)
2,116
194
193
2.21
 
(3,548)
1,610
197
198
1.62
 
(2,952)
1,869
194
194
1.91
 
 
Equity structural hedges refer to income allocated primarily to equity and reserves. At 30 June 2025, the equity structural hedge notional was allocated between NWH Group and NWM Group in a ratio of approximately 79%/21% respectively.
 
Product structural hedges refer to income allocated to customer products, mainly current accounts and customer deposits in Commercial & Institutional, Retail Banking and Private Banking & Wealth Management.
 
At 30 June 2025, approximately 95% by notional of total structural hedges were sterling-denominated.
 
 
Risk and capital management continued
 
Non-traded market risk continued
 
Sensitivity of net interest earnings
 
Net interest earnings are sensitive to changes in the level of interest rates, mainly because maturing structural hedges are replaced at higher or lower rates and changes to coupons on managed-margin products do not always match changes in market rates of interest or central bank policy rates.
 
Earnings sensitivity is derived from a market-implied forward rate curve, which will incorporate expected changes in central bank policy rates such as the Bank of England base rate. A simple scenario is shown that projects forward earnings based on the 30 June 2025 balance sheet, which is assumed to remain constant. An earnings projection is derived from the market-implied curve, which is then subject to interest rate shocks. The difference between the market-implied projection and the shock gives an indication of underlying sensitivity to interest rate movements.
 
Reported sensitivities should not be considered a forecast of future performance in these rate scenarios. Actions that could reduce interest earnings sensitivity include changes in pricing strategies on customer loans and deposits as well as hedging. Management action may also be taken to stabilise total income also taking into account non-interest income.
 
The table below shows the sensitivity of net interest earnings - for both structural hedges and managed-margin products - on a one, two and three-year forward-looking basis to an upward or downward interest rate shift of 25 basis points.
 
+25 basis points upward shift
 
-25 basis points downward shift
 
Year 1 
Year 2 
Year 3
 
Year 1 
Year 2 
Year 3
30 June 2025
£m
£m
£m
 
£m
£m
£m
Structural hedges
 40
 125
 213
 
(40)
(125)
(213)
Managed margin
 118
 101
 116
 
(136)
(97)
(98)
Total
 158
 226
 329
 
(176)
(222)
(311)
 
 
 
 
 
 
 
 
31 December 2024
 
 
 
 
 
 
 
Structural hedges
41
125
212
 
(41)
(125)
(212)
Managed margin
121
116
124
 
(142)
(120)
(125)
Total
162
241
336
 
(183)
(245)
(337)
 
(1)
Earnings sensitivity considers only the main drivers, namely structural hedging and managed margin products.
 
 
The following table presents the one-year sensitivity to upward and downward 25-basis-point and 100-basis-point shifts in the yield curve, analysed by currency.
 
Shifts in yield curve
 
30 June 2025
 
31 December 2024
 
+25 basis 
-25 basis 
+100 basis
-100 basis
 
+25 basis 
-25 basis 
+100 basis
-100 basis
 
points
points
points
points
 
points
points
points
points
 
£m
£m
£m
£m
 
£m
£m
£m
£m
Euro
14
(12)
56
(53)
 
11
(7)
38
(43)
Sterling
130
(149)
501
(615)
 
131
(155)
531
(646)
US dollar
12
(12)
46
(51)
 
15
(16)
63
(71)
Other
2
(3)
11
(9)
 
5
(5)
19
(17)
Total
158
(176)
614
(728)
 
162
(183)
651
(777)
 
 
 
 
Risk and capital management continued
 
Non-traded market risk continued
 
Foreign exchange risk (reviewed)
 
The table below shows structural foreign currency exposures.
 
 
 
Structural foreign
 
Residual
 
Net investments in
Net investment
currency exposures
Economic
structural foreign
 
foreign operations
hedges
pre-economic hedges
hedges (1)
currency exposures
30 June 2025
£m
£m
£m
£m
£m
US dollar
1,716
(401)
1,315
(1,315)
-
Euro
4,321
(2,515)
1,806
-
1,806
Other non-sterling
867
(375)
492
-
492
Total
6,904
(3,291)
3,613
(1,315)
2,298
 
 
 
 
 
 
31 December 2024
 
 
 
 
 
US dollar
1,826
(598)
1,228
(1,228)
-
Euro
4,162
(2,351)
1,811
-
1,811
Other non-sterling
874
(372)
502
-
502
Total
6,862
(3,321)
3,541
(1,228)
2,313
 
(1)       Economic hedges of US dollar net investments in foreign operations represent US dollar equity securities that do not qualify as net investment hedges for accounting purposes. They provide an offset to structural foreign exchange exposures to the extent that there are net assets in overseas operations available.
 
-
Changes in foreign currency exchange rates affect equity in proportion to structural foreign currency exposure. For example, a 5% strengthening or weakening in foreign currencies against sterling would result in a gain or loss of £0.2 billion in equity, respectively.
 
 
Risk and capital management continued
 
Traded market risk
 
Traded market risk is the risk arising from changes in fair value on positions, assets, liabilities or commitments in trading portfolios as a result of fluctuations in market prices.
 
Traded VaR (1-day 99%) (reviewed)
 
The table below shows one-day internal value-at-risk (VaR) for NatWest Group's trading portfolios, split by exposure type.
 
Half year ended
 
30 June 2025
 
30 June 2024
 
31 December 2024
 
 
 
 
Period
 
 
 
 
Period
 
 
 
 
Period
 
Average
Maximum
Minimum
end
 
Average
Maximum
Minimum
end
 
Average
Maximum
Minimum
end
 
£m
£m
£m
£m
 
£m
£m
£m
£m
 
£m
£m
£m
£m
Interest rate
 3.6
 5.4
 2.2
 4.1
 
6.7
12.0
3.6
6.6
 
 6.5
 12.1
 3.0
 3.8
Credit spread
 5.3
 7.2
 4.0
 4.6
 
8.1
10.1
6.7
7.6
 
 7.3
 9.6
 5.6
 5.6
Currency
 1.5
 4.0
-
 0.8
 
2.1
6.7
0.8
1.9
 
 1.9
 5.8
 0.5
 1.3
Equity
-
 0.1
-
 0.1
 
0.1
0.1
0.1
0.1
 
 0.1
 0.3
-
-
Diversification (1)
(3.9)
 
 
(4.0)
 
(6.8)
 
 
(5.5)
 
(5.8)
 
(5.4)
Total
 6.5
 9.7
 4.3
 5.6
 
10.2
16.2
7.0
10.7
 
 10.0
 16.1
 5.3
 5.3
 
(1)       NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.
 
-
Both interest rate VaR and credit spread VaR decreased on an average basis.
-
This reflects the period of higher market volatility in H2 2022 rolling out of the VaR calculation window.
 
 
 
Pension risk
 
On 12 June 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.
 
 
 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
 
NatWest Group plc
(Registrant)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Date:
25 July 2025
 
 
By:
/s/ Mark Stevens
 
 
 
 
 
 
 
 
 
 
 
 
Name:
Mark Stevens
 
 
 
 
 
Title:
Assistant Secretary
 

FAQ

What was NatWest Group's H1 2025 attributable profit?

NatWest reported £2.49 billion attributable profit for H1 2025.

How much is the interim dividend for NWG in 2025?

The board declared a 9.5 p per share interim dividend, 58% higher than last year.

What size share buyback did NatWest announce?

Management intends to begin a £750 million on-market share buyback in H2 2025.

What is NatWest Group's current CET1 capital ratio?

The CET1 ratio stood at 13.6% as of 30 June 2025, within the 13-14% target band.

How did NatWest's net interest margin change year-on-year?

NIM improved by 21 basis points to 2.28% compared with 2.07% in H1 2024.

What guidance has NatWest given for full-year 2025 RoTE?

The bank now expects a Return on Tangible Equity above 16.5% in 2025.
Natwest Group Plc

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