[6-K] NatWest Group plc American Current Report (Foreign Issuer)
InterDigital, Inc. (IDCC) – Form 4 insider filing
Director Derek K. Aberle reported an automatic acquisition of 2.7318 restricted stock units on 07/23/2025. The RSUs represent dividend-equivalent credits that accrue whenever InterDigital pays a cash dividend on its common stock, and no cash consideration was exchanged (transaction code “A”). After the credit, Aberle directly owns 7,230.7318 common shares. No derivative securities were involved and there were no disposals of shares.
The transaction is part of routine compensation mechanics and is immaterial to the company’s float or insider-sentiment assessment. Investors generally view such small, non-cash adjustments as neutral, with no implication for near-term stock performance or corporate strategy.
InterDigital, Inc. (IDCC) – Comunicazione interna Modulo 4
Il direttore Derek K. Aberle ha segnalato un acquisto automatico di 2,7318 unità azionarie vincolate il 23/07/2025. Le RSU rappresentano crediti equivalenti ai dividendi che si accumulano ogni volta che InterDigital distribuisce un dividendo in contanti sulle sue azioni ordinarie, senza alcun corrispettivo in denaro (codice transazione “A”). Dopo questa attribuzione, Aberle possiede direttamente 7.230,7318 azioni ordinarie. Non sono stati coinvolti strumenti derivati e non ci sono state cessioni di azioni.
La transazione fa parte delle normali dinamiche di compensazione ed è irrilevante per la quantità di azioni in circolazione o per la valutazione del sentiment degli insider. Gli investitori generalmente considerano tali piccole variazioni non monetarie come neutre, senza impatti sul rendimento azionario a breve termine o sulla strategia aziendale.
InterDigital, Inc. (IDCC) – Presentación interna Formulario 4
El director Derek K. Aberle informó una adquisición automática de 2,7318 unidades restringidas de acciones el 23/07/2025. Las RSU representan créditos equivalentes a dividendos que se acumulan cada vez que InterDigital paga un dividendo en efectivo sobre sus acciones ordinarias, sin intercambio de efectivo (código de transacción “A”). Tras este crédito, Aberle posee directamente 7.230,7318 acciones ordinarias. No se involucraron valores derivados y no hubo disposiciones de acciones.
La transacción forma parte de la mecánica rutinaria de compensación y es insignificante para el capital flotante de la empresa o la evaluación del sentimiento de los insiders. Los inversores generalmente ven estos pequeños ajustes no monetarios como neutrales, sin implicaciones para el desempeño a corto plazo de las acciones ni para la estrategia corporativa.
InterDigital, Inc. (IDCC) – 내부자 신고서 Form 4
이사 Derek K. Aberle가 2025년 7월 23일에 2.7318 제한 주식 단위 자동 취득을 보고했습니다. RSU는 InterDigital이 보통주에 대해 현금 배당을 지급할 때마다 발생하는 배당금 상당 크레딧을 나타내며, 현금 거래는 없었습니다(거래 코드 “A”). 이 크레딧 이후 Aberle는 직접 7,230.7318 보통주를 보유하고 있습니다. 파생 증권은 포함되지 않았으며, 주식 처분도 없었습니다.
이 거래는 일상적인 보상 절차의 일부이며 회사의 유통 주식 수나 내부자 심리 평가에 중요하지 않은 거래입니다. 투자자들은 일반적으로 이러한 소규모 비현금 조정을 중립적으로 보고, 단기 주가 성과나 기업 전략에 영향을 미치지 않는다고 판단합니다.
InterDigital, Inc. (IDCC) – Déclaration d’initié Formulaire 4
Le directeur Derek K. Aberle a déclaré une acquisition automatique de 2,7318 unités d’actions restreintes le 23/07/2025. Les RSU représentent des crédits équivalents aux dividendes accumulés chaque fois qu’InterDigital verse un dividende en espèces sur ses actions ordinaires, sans contrepartie en espèces (code de transaction « A »). Après ce crédit, Aberle détient directement 7 230,7318 actions ordinaires. Aucune valeur dérivée n’a été impliquée et il n’y a eu aucune cession d’actions.
Cette transaction fait partie des mécanismes de rémunération habituels et est inéressante pour la capitalisation flottante de la société ou l’évaluation du sentiment des initiés. Les investisseurs considèrent généralement ces petits ajustements non monétaires comme neutres, sans impact sur la performance à court terme des actions ni sur la stratégie d’entreprise.
InterDigital, Inc. (IDCC) – Insider-Meldung Formular 4
Direktor Derek K. Aberle meldete am 23.07.2025 den automatischen Erwerb von 2,7318 Restricted Stock Units. Die RSUs stellen Dividendenäquivalenzgutschriften dar, die bei jeder Bardividendenzahlung von InterDigital auf Stammaktien anfallen, ohne dass eine Barzahlung erfolgte (Transaktionscode „A“). Nach dieser Gutschrift besitzt Aberle direkt 7.230,7318 Stammaktien. Es waren keine Derivate involviert und es gab keine Veräußerungen von Aktien.
Die Transaktion ist Teil der routinemäßigen Vergütungsmechanismen und unwesentlich für den Streubesitz oder die Insider-Stimmung. Anleger betrachten solche kleinen, nicht barwirksamen Anpassungen in der Regel als neutral, ohne Auswirkungen auf die kurzfristige Kursentwicklung oder Unternehmensstrategie.
- None.
- None.
Insights
TL;DR: Fractional RSU credit; routine, non-material; neutral impact.
The filing adds 2.73 RSUs worth roughly the dividend amount to Aberle’s stake, pushing total holdings to 7.23k shares. Because the credit arises automatically from dividend equivalents on unvested awards and involves no open-market purchase or sale, it does not alter insider ownership meaningfully nor signal a directional view on IDCC’s valuation. I classify the event as not impactful for investors monitoring insider activity.
InterDigital, Inc. (IDCC) – Comunicazione interna Modulo 4
Il direttore Derek K. Aberle ha segnalato un acquisto automatico di 2,7318 unità azionarie vincolate il 23/07/2025. Le RSU rappresentano crediti equivalenti ai dividendi che si accumulano ogni volta che InterDigital distribuisce un dividendo in contanti sulle sue azioni ordinarie, senza alcun corrispettivo in denaro (codice transazione “A”). Dopo questa attribuzione, Aberle possiede direttamente 7.230,7318 azioni ordinarie. Non sono stati coinvolti strumenti derivati e non ci sono state cessioni di azioni.
La transazione fa parte delle normali dinamiche di compensazione ed è irrilevante per la quantità di azioni in circolazione o per la valutazione del sentiment degli insider. Gli investitori generalmente considerano tali piccole variazioni non monetarie come neutre, senza impatti sul rendimento azionario a breve termine o sulla strategia aziendale.
InterDigital, Inc. (IDCC) – Presentación interna Formulario 4
El director Derek K. Aberle informó una adquisición automática de 2,7318 unidades restringidas de acciones el 23/07/2025. Las RSU representan créditos equivalentes a dividendos que se acumulan cada vez que InterDigital paga un dividendo en efectivo sobre sus acciones ordinarias, sin intercambio de efectivo (código de transacción “A”). Tras este crédito, Aberle posee directamente 7.230,7318 acciones ordinarias. No se involucraron valores derivados y no hubo disposiciones de acciones.
La transacción forma parte de la mecánica rutinaria de compensación y es insignificante para el capital flotante de la empresa o la evaluación del sentimiento de los insiders. Los inversores generalmente ven estos pequeños ajustes no monetarios como neutrales, sin implicaciones para el desempeño a corto plazo de las acciones ni para la estrategia corporativa.
InterDigital, Inc. (IDCC) – 내부자 신고서 Form 4
이사 Derek K. Aberle가 2025년 7월 23일에 2.7318 제한 주식 단위 자동 취득을 보고했습니다. RSU는 InterDigital이 보통주에 대해 현금 배당을 지급할 때마다 발생하는 배당금 상당 크레딧을 나타내며, 현금 거래는 없었습니다(거래 코드 “A”). 이 크레딧 이후 Aberle는 직접 7,230.7318 보통주를 보유하고 있습니다. 파생 증권은 포함되지 않았으며, 주식 처분도 없었습니다.
이 거래는 일상적인 보상 절차의 일부이며 회사의 유통 주식 수나 내부자 심리 평가에 중요하지 않은 거래입니다. 투자자들은 일반적으로 이러한 소규모 비현금 조정을 중립적으로 보고, 단기 주가 성과나 기업 전략에 영향을 미치지 않는다고 판단합니다.
InterDigital, Inc. (IDCC) – Déclaration d’initié Formulaire 4
Le directeur Derek K. Aberle a déclaré une acquisition automatique de 2,7318 unités d’actions restreintes le 23/07/2025. Les RSU représentent des crédits équivalents aux dividendes accumulés chaque fois qu’InterDigital verse un dividende en espèces sur ses actions ordinaires, sans contrepartie en espèces (code de transaction « A »). Après ce crédit, Aberle détient directement 7 230,7318 actions ordinaires. Aucune valeur dérivée n’a été impliquée et il n’y a eu aucune cession d’actions.
Cette transaction fait partie des mécanismes de rémunération habituels et est inéressante pour la capitalisation flottante de la société ou l’évaluation du sentiment des initiés. Les investisseurs considèrent généralement ces petits ajustements non monétaires comme neutres, sans impact sur la performance à court terme des actions ni sur la stratégie d’entreprise.
InterDigital, Inc. (IDCC) – Insider-Meldung Formular 4
Direktor Derek K. Aberle meldete am 23.07.2025 den automatischen Erwerb von 2,7318 Restricted Stock Units. Die RSUs stellen Dividendenäquivalenzgutschriften dar, die bei jeder Bardividendenzahlung von InterDigital auf Stammaktien anfallen, ohne dass eine Barzahlung erfolgte (Transaktionscode „A“). Nach dieser Gutschrift besitzt Aberle direkt 7.230,7318 Stammaktien. Es waren keine Derivate involviert und es gab keine Veräußerungen von Aktien.
Die Transaktion ist Teil der routinemäßigen Vergütungsmechanismen und unwesentlich für den Streubesitz oder die Insider-Stimmung. Anleger betrachten solche kleinen, nicht barwirksamen Anpassungen in der Regel als neutral, ohne Auswirkungen auf die kurzfristige Kursentwicklung oder Unternehmensstrategie.
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Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
25 July 2025
Commission file number: 001-10306
Form
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 X Form 40-F
This report on Form 6-K, except for any information contained on any websites linked or documents referred to in this report, shall be deemed incorporated by reference into the company’s Registration Statement on Form F-3 (File No. 333-284008) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
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Forward-looking statements
Cautionary statement regarding forward-looking statements
Certain sections in this document contain ‘forward-looking statements’ as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements with respect to NatWest Group’s financial condition, results of operations and business, including its strategic priorities, financial, investment and capital targets, and ESG targets, commitments and ambitions described herein. Statements that are not historical facts, including statements about NatWest Group’s beliefs and expectations, are forward-looking statements. Words such as ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘commit’, ‘believe’, ‘should’, ‘intend’, ‘will’, ‘plan’, ‘could’, ‘probability’, ‘risk’, ‘target’, ‘goal’, ‘objective’, ‘may’, ‘endeavour’, ‘outlook’, ‘optimistic’, ‘prospects’ and similar expressions or variations on these expressions are intended to identify forward-looking statements. In particular, this document includes forward-looking targets and guidance relating to financial performance measures, such as income growth, operating expense, RoTE, ROE, discretionary capital distribution targets, impairment loss rates, balance sheet reduction (including the reduction of RWAs), CET1 ratio (and key drivers of the CET1 ratio including timing, impact and details), Pillar 2 and other regulatory buffer requirements and MREL and non-financial performance measures, such as NatWest Group’s initial area of focus, climate and sustainability-related performance ambitions, targets and metrics, including in relation to initiatives to transition to a net zero economy, Climate and Sustainable Funding and Financing (CSFF) and financed emissions.
Limitations inherent to forward-looking statements
These statements are based on current plans, expectations, estimates, targets and projections, and are subject to significant inherent risks, uncertainties and other factors, both external and relating to NatWest Group’s strategy or operations, which may result in NatWest Group being unable to achieve the current plans, expectations, estimates, targets, projections and other anticipated outcomes expressed or implied by such forward-looking statements. In addition, certain of these disclosures are dependent on choices relying on key model characteristics and assumptions and are subject to various limitations, including assumptions and estimates made by management. By their nature, certain of these disclosures are only estimates and, as a result, actual future results, gains or losses could differ materially from those that have been estimated. Accordingly, undue reliance should not be placed on these statements. The forward-looking statements contained in this document speak only as of the date we make them and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein, whether to reflect any change in our expectations with regard thereto, any change in events, conditions or circumstances on which any such statement is based, or otherwise, except to the extent legally required.
Important factors that could affect the actual outcome of the forward-looking statements
We caution you that a large number of important factors could adversely affect our results or our ability to implement our strategy, cause us to fail to meet our targets, predictions, expectations and other anticipated outcomes or affect the accuracy of forward-looking statements described in this document. These factors include, but are not limited to, those set forth in the risk factors and the other uncertainties described in the NatWest Group plc 2024 Annual Report on Form 20-F, NatWest Group’s Interim Management Statement for Q1 and H1 2025 on Form 6-K, and its other filings with the US Securities and Exchange Commission. The principal risks and uncertainties that could adversely affect NatWest Group’s future results, its financial condition and/or prospects and cause them to be materially different from what is forecast or expected, include, but are not limited to: economic and political risk (including in respect of: political and economic risks and uncertainty in the UK and global markets, including as a result of inflation and interest rates, supply chain disruption, and geopolitical developments); and changes in interest rates and foreign currency exchange rates); business change and execution risk (including in respect of the implementation of NatWest Group’s strategy; future acquisitions and divestments, and the transfer of its Western European corporate portfolio); financial resilience risk (including in respect of: NatWest Group’s ability to meet targets and to make discretionary capital distributions; the competitive environment; counterparty and borrower risk; liquidity and funding risks; prudential regulatory requirements for capital and MREL; reductions in the credit ratings; the requirements of regulatory stress tests; model risk; sensitivity to accounting policies, judgments, estimates and assumptions (and the economic, climate, competitive and other forward looking information affecting those judgments, estimates and assumptions); changes in applicable accounting standards; the value or effectiveness of credit protection; the adequacy of NatWest Group’s future assessments by the Prudential Regulation Authority and the Bank of England; and the application of UK statutory stabilisation or resolution powers); climate and sustainability risk (including in respect of: risks relating to climate change and sustainability-related risks; both the execution and reputational risk relating to NatWest Group’s climate change-related strategy, ambitions, targets and transition plan; climate and sustainability-related data and model risk; increasing levels of climate, environmental, human rights and sustainability-related regulation and oversight; and increasing; climate, environmental and sustainability-related litigation, enforcement proceedings investigations and conduct risk); operational and IT resilience risk (including in respect of: operational risks (including reliance on third party suppliers); cyberattacks; the accuracy and effective use of data; complex IT systems; attracting, retaining and developing diverse senior management and skilled personnel; NatWest Group’s risk management framework; and reputational risk); and legal, regulatory and conduct risk (including in respect of: the impact of substantial regulation and oversight; the outcome of legal, regulatory and governmental actions, investigations and remedial undertakings; and changes in tax legislation or failure to generate future taxable profits).
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NatWest Group – Form 6-K Interim Results 2025 | 1 |
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Forward-looking statements continued
Climate and sustainability-related disclosures
Climate and sustainability-related disclosures in this document are not measures within the scope of International Financial Reporting Standards (IFRS), use a greater number and level of judgments, assumptions and estimates, including with respect to the classification of climate and sustainable funding and financing activities, than our reporting of historical financial information in accordance with IFRS. These judgments, assumptions and estimates are highly likely to change materially over time, and, when coupled with the longer time frames used in these disclosures, make any assessment of materiality inherently uncertain. In addition, our climate risk analysis, our ambition to be net zero across our financed emissions, assets under management and operational value chain by 2050 and the implementation of our climate transition plan remain under development, and the data underlying our analysis and strategy remain subject to evolution over time. The process we have adopted to define, gather and report data on our performance on climate and sustainability-related measures is not subject to the formal processes adopted for financial reporting in accordance with IFRS and there are currently limited industry standards or globally recognised established practices for measuring and defining climate and sustainability-related metrics. As a result, we expect that certain climate and sustainability-related disclosures made in this document are likely to be amended, updated, recalculated or restated in the future. Refer to the cautionary statement in the section entitled ‘Climate and sustainability-related and other forward-looking statements and metrics’ of the NatWest Group 2024 Sustainability Report.
Cautionary statement regarding alternative performance measures
NatWest Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and IFRS. This document may contain a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-GAAP financial measures in accordance with the Securities and Exchange Commission (SEC) regulations (together, APM). APMs are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. APMs provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. Any APMs included in this document, are not measures within the scope of IFRS or GAAP, are based on a number of assumptions that are subject to uncertainties and change, and are not a substitute for IFRS or GAAP measures and a reconciliation to the closest IFRS or GAAP measure is presented where appropriate.
The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or a solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.
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NatWest Group – Form 6-K Interim Results 2025 | 2 |
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Introduction
Presentation of information
Unless otherwise specified herein, ‘Parent company’ refers to NatWest Group plc and ‘NatWest Group’, ‘Group’ or ‘we’ refers to NatWest Group plc and its subsidiaries. The term ‘NWH Group’ refers to NatWest Holdings Limited (‘NWH Limited’) and its subsidiary and associated undertakings. The term ‘NWM Group’ refers to NatWest Markets Plc (‘NWM Plc’) and its subsidiary and associated undertakings. The term NWM N.V. Group refers to NatWest Markets N.V. and its subsidiary and associated undertakings. The term ‘NWMSI’ refers to NatWest Markets Securities, Inc. The term ‘RBS plc’ refers to The Royal Bank of Scotland plc. The term ‘NWB Plc’ refers to National Westminster Bank Plc. The term RBSI Ltd refers to The Royal Bank of Scotland International Limited. Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group.
NatWest Group publishes its financial statements in pounds sterling (‘£’ or ‘sterling’). The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of pounds sterling, respectively, and references to ‘pence’ or ‘p’ represent pence where the amounts are denominated in pounds sterling (‘GBP’). Reference to ‘dollars’ or ‘$’ are to United States of America (‘US’) dollars. The abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of dollars, respectively. The abbreviation ‘€’ represents the ‘euro’, and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of euros, respectively.
To aid readability, this document contains references to EU legislative and regulatory provisions in effect in the UK before 1 January 2021 that have now been implemented in UK domestic law. These references should be read and construed as including references to the applicable UK implementation measures with effect from 1 January 2021.
Any information contained on websites linked or reports referenced in this interim results report for the period ended 30 June 2025 on Form 6-K is for information only and will not be deemed to be incorporated by reference herein.
Non-IFRS financial information
NatWest Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). This document contains a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-GAAP financial measures in accordance with the Securities and Exchange Commission (SEC) regulations. These measures are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison.
The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include a calculation of metrics that are used throughout the banking industry.
These non-IFRS measures are not a substitute for IFRS measures and a reconciliation to the closest IFRS measure is presented where appropriate. For details of the basis of preparation and reconciliation where appropriate refer to appendix ‘Non-IFRS financial measures’ on page 118.
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NatWest Group – Form 6-K Interim Results 2025 | 3 |
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Inside this report
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Business performance summary | |
H1 2025 performance summary | 6 |
Performance key metrics and ratios | 8 |
Chief Financial Officer’s review | 10 |
Retail Banking | 12 |
Private Banking & Wealth Management | 14 |
Commercial & Institutional | 16 |
Central items & other | 18 |
Segment performance | 19 |
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Risk and capital management | |
Credit risk | 24 |
Economic loss drivers | 24 |
Governance and post model adjustments | 30 |
Measurement uncertainty and ECL sensitivity analysis | 32 |
Measurement uncertainty and ECL adequacy | 35 |
Credit risk – Banking activities | 36 |
Financial instruments within the scope of the IFRS 9 ECL framework | 36 |
Segment analysis – portfolio summary | 37 |
Segmental loans and impairment metrics | 39 |
Sector analysis – portfolio summary | 40 |
Non-Personal forbearance | 45 |
Personal portfolio | 47 |
Commercial real estate | 49 |
Flow statements | 50 |
Stage 2 decomposition by a significant increase in credit risk trigger | 57 |
Asset quality | 59 |
Credit risk – Trading activities | 63 |
Capital, liquidity and funding risk | 66 |
Non-traded market risk | 77 |
Traded market risk | 81 |
Pension risk | 81 |
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Financial statements and notes | |
Condensed consolidated income statement | 82 |
Condensed consolidated statement of comprehensive income | 83 |
Condensed consolidated balance sheet | 84 |
Condensed consolidated statement of changes in equity | 85 |
Condensed consolidated cash flow statement | 87 |
Presentation of condensed consolidated financial statements | 88 |
Net interest income | 88 |
Non-interest income | 89 |
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NatWest Group – Form 6-K Interim Results 2025 | 4 |
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Financial statements and notes continued | |
Operating expenses | 90 |
Segmental analysis | 91 |
Tax | 94 |
Financial instruments – classification | 95 |
Financial instruments – valuation | 97 |
Trading assets and liabilities | 103 |
Loan impairment provisions | 104 |
Provisions for liabilities and charges | 105 |
Dividends | 105 |
Contingent liabilities and commitments | 105 |
Litigation and regulatory matters | 106 |
Related party transactions | 112 |
Post balance sheet events | 113 |
Date of approval | 113 |
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Additional information | |
NatWest Group plc summary risk factors | 114 |
Statement of directors’ responsibilities | 116 |
Other financial data | 117 |
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Appendix | |
Non-IFRS financial measures | 118 |
Performance measures not defined under IFRS | 124 |
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NatWest Group – Form 6-K Interim Results 2025 | 5 |
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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, return on equity of 12.2%, a Return on Tangible Equity (RoTE) of 18.1%, a cost:income ratio of 50.3% compared with 56.9% in H1 2024 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 at H1 2025 of L407.1 billion up by L6.8 billion compared to Q4 2024 and net loans to customers excluding central items up by L11.6 billion, including L2.2 billion of balances acquired from Sainsbury's Bank as we added scale to our unsecured business. Customer deposits excluding central items increased by L4.5 billion, including L2.4 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 6.6 percentage point improvement in our cost:income ratio compared to H1 2024 and 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 L2.9 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. NAV per share in H1 2025 increased by 20 pence to 444 pence. TNAV per share in H1 2025 increased by 22 pence to 351 pence. |
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NatWest Group – Form 6-K Interim Results 2025 | 6 |
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H1 2025 performance summary continued
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 L16.0 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 Risk Factors in the NatWest Group plc 2024 Annual Report on Form 20-F issued on 21 February 2025 and the Summary Risk Factors in this announcement. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 7 |
Table of Contents
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 8 |
Table of Contents
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 the NatWest Group website. |
(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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 9 |
Table of Contents
Chief Financial Officer’s review
We delivered a strong performance in the first half of 2025, with operating profit of £3,585 million, return on equity of 12.2% 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 at H1 2025 of £407.1 billion up £6.8 billion compared to Q4 2024 and net loans to customers excluding central items up by £11.6 billion. Customer deposits at H1 2025 of £436.8 billion were up £3.3 billion compared to Q4 2024. Customer deposits excluding central items increased by £4.5 billion, contributing to growth in total income, up by 11.9% on H1 2024 and 0.6% on Q1 2025 and total income excluding notable items, up by 13.7% on H1 2024 and 1.5% on Q1 2025. Cost:income ratio was 50.3% in H1 2025 compared with 56.9% in H1 2024. 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, return on equity of 12.2% pence and a RoTE of 18.1%. Q2 2025 return on equity was 11.9% and Q2 2025 RoTE was 17.7%. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 10 |
Table of Contents
Chief Financial Officer’s review continued
Robust balance sheet with strong capital and liquidity levels
| - | Net loans to customers at H1 2025 of £407.1 billion increased by £6.8 billion compared to Q4 2024 and increased by £8.3 billion compared to Q1 2025. 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 the NatWest Group website. |
| - | Customer deposits at H1 2025 of £436.8 billion increased by £3.3 billion compared to Q4 2024 and increased by £2.2 billion compared to Q1 2025. 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. |
| - | NAV per share increased by 20 pence in Q2 2025 to 444 pence. TNAV per share increased by 4 pence in the quarter to 351 pence primarily reflecting the profit for the period. |
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 11 |
Table of Contents
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. |
| - | Operating expenses of £1,423 million were £47 million, or 3.2%, lower than H1 2024. 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 12 |
Table of Contents
Business performance summary continued
Retail Banking continued
H1 2025 performance
| - | 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. |
| - | Operating expenses of £742 million were £61 million, or 9.0%, higher than Q1 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 13 |
Table of Contents
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 14 |
Table of Contents
Business performance summary continued
Private Banking & Wealth Management continued
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. |
| - | Operating expenses of £359 million were £3 million, or 0.8%, higher than H1 2024. 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. |
| - | Operating expenses of £172 million were £15 million, or 8.0%, lower than Q1 2025. 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 15 |
Table of Contents
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 16 |
Table of Contents
Business performance summary continued
Commercial & Institutional continued
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. |
| - | Operating expenses of £2,151 million were £1 million higher than H1 2024. 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. |
| - | Operating expenses of £1,107 million were £63 million, or 6.0%, higher than Q1 2025. 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 17 |
Table of Contents
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. |
| - | Operating expenses of £85 million were £4 million, or 4.9%, higher than H1 2024. 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. |
| - | Operating expenses of £18 million were £49 million, or 73%, lower than Q1 2025. 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 18 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 19 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 20 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 21 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 22 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 23 |
Table of Contents
Risk and capital management
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
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 24 |
Table of Contents
Risk and capital management continued
Credit risk continued
Economic loss drivers
| | |
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 | 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 | 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 |
Rates | Above consensus – 4% | Upside |
| Middle – 3.5% | Base case |
| Close to 2010s – 1-2%/2.5% | Downside/ Extreme downside |
| |
NatWest Group – Form 6-K Interim Results 2025 | 25 |
Table of Contents
Risk and capital management continued
Credit risk continued
Economic loss drivers
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 26 |
Table of Contents
Risk and capital management continued
Credit risk continued
Economic loss drivers
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 27 |
Table of Contents
Risk and capital management continued
Credit risk continued
Economic loss drivers
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 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 28 |
Table of Contents
Risk and capital management continued
Credit risk continued
Economic loss drivers
Annual figures
| | | | | | | | | | |
| | | | | | | | Extreme | | Weighted |
| | Upside | | Base case | | Downside | | downside | | average |
Consumer price index - four quarter change | | % | | % | | % | | % | | % |
2025 |
| 3.2 | | 2.9 | | 4.2 | | 2.4 | | 3.2 |
2026 | | 2.7 | | 2.2 | | 5.8 | | 0.7 | | 2.9 |
2027 | | 2.3 | | 2.0 | | 3.0 | | 1.6 | | 2.2 |
2028 | | 2.0 | | 2.0 | | 2.8 | | 2.0 | | 2.2 |
2029 | | 2.0 | | 2.0 | | 2.5 | | 2.0 | | 2.1 |
2030 | | 2.0 | | 2.0 | | 2.5 | | 2.0 | | 2.1 |
| | | | | | | | | | |
Bank of England base rate - annual average | | | | | | | | | | |
2025 |
| 4.32 | | 4.21 | | 4.07 | | 3.58 | | 4.12 |
2026 | | 4.00 | | 3.52 | | 2.25 | | 0.11 | | 2.93 |
2027 | | 4.00 | | 3.50 | | 2.00 | | 0.30 | | 2.89 |
2028 | | 4.00 | | 3.50 | | 2.00 | | 0.64 | | 2.94 |
2029 | | 4.00 | | 3.50 | | 2.00 | | 1.47 | | 3.04 |
2030 | | 4.00 | | 3.50 | | 2.44 | | 2.03 | | 3.20 |
| | | | | | | | | | |
Stock price index - four quarter change | | | | | | | | | | |
2025 |
| 9.7 | | 6.1 | | (3.1) | | (19.3) | | 1.8 |
2026 | | 5.7 | | 3.3 | | (0.9) | | (9.5) | | 1.7 |
2027 | | 4.0 | | 3.3 | | 5.8 | | 14.0 | | 4.9 |
2028 | | 3.5 | | 3.3 | | 5.8 | | 12.3 | | 4.7 |
2029 | | 3.1 | | 3.3 | | 5.8 | | 11.0 | | 4.5 |
2030 | | 3.3 | | 3.3 | | 5.8 | | 10.1 | | 4.5 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 29 |
Table of Contents
Risk and capital management continued
Credit risk continued
Economic loss drivers
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
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.
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NatWest Group – Form 6-K Interim Results 2025 | 30 |
Table of Contents
Risk and capital management continued
Credit risk continued
Governance and post model adjustments
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 31 |
Table of Contents
Risk and capital management continued
Credit risk continued
Measurement uncertainty and ECL sensitivity analysis
The recognition and measurement of ECL is complex and involves the use of significant judgement and estimation, particularly in times of economic volatility and uncertainty. This includes the formulation and incorporation of multiple forward-looking economic conditions into ECL to meet the measurement objective of IFRS 9. The ECL provision is sensitive to the model inputs and economic assumptions underlying the estimate.
The impact arising from the base case, upside, downside and extreme downside scenarios was simulated.
In the simulations, 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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 32 |
Table of Contents
Risk and capital management continued
Credit risk continued
Measurement uncertainty and ECL sensitivity analysis
| | | | | | | | | | |
|
|
|
|
|
| Moderate |
| Moderate |
| Extreme |
| | | | Base | | upside | | downside | | downside |
30 June 2025 | | Actual | | scenario | | scenario | | scenario | | scenario |
Stage 1 modelled loans (£m) |
|
|
|
|
|
|
|
|
|
|
Retail Banking - mortgages |
| 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 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 33 |
Table of Contents
Risk and capital management continued
Credit risk continued
Measurement uncertainty and ECL sensitivity analysis
| | | | | | | | | | |
|
|
|
|
|
| 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 plc 2024 Annual Report on Form 20-F for 31 December 2024 comparatives. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 34 |
Table of Contents
Risk and capital management continued
Credit risk continued
Measurement uncertainty and ECL adequacy
| - | If the economics were as negative as observed in the extreme downside (i.e. 100% probability weighting), total Stage 1 and Stage 2 ECL was simulated to increase by £0.7 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 35 |
Table of Contents
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
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 36 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Segment analysis – portfolio summary
The table below shows gross loans and ECL, by segment and stage, within the scope of the IFRS 9 ECL framework.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Of which: | ||||||||||||
| | | | | | | | | | | | Personal | | Non-Personal | ||||||||||
| | | | Private | | | | | | | | | | Private | | | | | | Private | | | | |
| | | | Banking & | | | | Central | | | | | | Banking & | | | | Central | | Banking & | | | | Central |
| | Retail | | Wealth | | Commercial | | items | | | | Retail | | Wealth | | Commercial | | items | | Wealth | | Commercial | | items |
| | Banking | | Management | | & Institutional | | & other | | Total | | Banking | | Management | | & Institutional | | & other | | Management | | & Institutional | | & other |
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 37 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Segment analysis – portfolio summary
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 38 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Segmental loans and impairment metrics
| - | 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 39 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Sector analysis – portfolio summary
The table below shows financial assets and off-balance sheet exposures gross of ECL and related ECL provisions, impairment and past due by sector, asset quality and geographical region.
| | | | | | | | | | | | | | | | | | |
|
| Personal |
| Non-Personal |
| | ||||||||||||
| | | | Credit | | Other | | | | Corporate | | 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 43.
| |
NatWest Group – Form 6-K Interim Results 2025 | 40 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Sector analysis – portfolio summary
| | | | | | | | | | | | | | | | | | |
| | 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 43.
| |
NatWest Group – Form 6-K Interim Results 2025 | 41 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Sector analysis – portfolio summary
| | | | | | | | | | | | | | | | | | |
|
| 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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 42 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Sector analysis – portfolio summary
| | | | | | | | | | | | | | | | | | |
|
| 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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 43 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Sector analysis – portfolio summary
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 44 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Non-Personal forbearance
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 |
| - | 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 45 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Non-Personal forbearance
| - | 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 46 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Personal portfolio
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 |
Mortgage forbearance |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 47 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Personal portfolio
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 48 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Commercial real estate (CRE)
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 49 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Flow statements
The flow statements that follow show the main ECL and related income statement movements. They also show the changes in ECL as well as the changes in related financial assets used in determining ECL. Due to differences in scope, exposures may differ from those reported in other tables, principally in relation to exposures in Stage 1 and Stage 2. These differences do not have a material ECL effect. Other points to note:
| - | Financial assets include treasury liquidity portfolios, comprising balances at central banks and debt securities, as well as loans. Both modelled and non-modelled portfolios are included. |
| - | Stage transfers (for example, exposures moving from Stage 1 into Stage 2) are a key feature of the ECL movements, with the net re-measurement cost of transitioning to a worse stage being a primary driver of income statement charges. Similarly, there is an ECL benefit for accounts improving stage. |
| - | Changes in risk parameters shows the reassessment of the ECL within a given stage, including any ECL overlays and residual income statement gains or losses at the point of write-off or accounting write-down. |
| - | Other (P&L only items) includes any subsequent changes in the value of written-down assets (for example, fortuitous recoveries) along with other direct write-off items such as direct recovery costs. Other (P&L only items) affects the income statement but does not affect balance sheet ECL movements. |
| - | Amounts written-off represent the gross asset written-down against accounts with ECL, including the net asset write-down for any debt sale activity. |
| - | There were some flows from Stage 1 into Stage 3 including transfers due to unexpected default events 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 |
| |
| |
NatWest Group – Form 6-K Interim Results 2025 | 50 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Flow statements
| | | | | | | | | | | | | | | | |
|
| Stage 1 |
| Stage 2 |
| Stage 3 |
| Total | ||||||||
| | Financial | | | | Financial | | | | Financial | | | | Financial | | |
| | assets | | ECL | | assets | | ECL | | assets | | ECL | | assets | | ECL |
Retail Banking - mortgages | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2025 |
| 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 51 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Flow statements
| | | | | | | | | | | | | | | | |
|
| Stage 1 |
| Stage 2 |
| Stage 3 |
| Total | ||||||||
| | Financial | | | | Financial | | | | Financial | | | | Financial | | |
| | assets | | ECL | | assets | | ECL | | assets | | ECL | | assets | | ECL |
Retail Banking - credit cards | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2025 |
| 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 52 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Flow statements
| | | | | | | | | | | | | | | | |
|
| Stage 1 |
| Stage 2 |
| Stage 3 |
| Total | ||||||||
| | Financial | | | | Financial | | | | Financial | | | | Financial | | |
| | assets | | ECL | | assets | | ECL | | assets | | ECL | | assets | | ECL |
Retail Banking - other personal unsecured | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2025 |
| 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 53 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Flow statements
| | | | | | | | | | | | | | | | |
|
| Stage 1 |
| Stage 2 |
| Stage 3 |
| Total | ||||||||
| | Financial | | | | Financial | | | | Financial | | | | Financial | | |
| | assets | | ECL | | assets | | ECL | | assets | | ECL | | assets | | ECL |
Commercial & Institutional - corporate | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2025 |
| 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 54 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Flow statements
| | | | | | | | | | | | | | | | |
|
| 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 55 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Flow statements
| | | | | | | | | | | | | | | | |
|
| Stage 1 | | Stage 2 | | Stage 3 | | Total | ||||||||
| | Financial | | | | Financial | | | | Financial | | | | Financial | | |
|
| assets |
| ECL |
| assets |
| ECL |
| assets |
| ECL |
| assets |
| ECL |
Commercial & Institutional - other | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2025 |
| 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 56 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 57 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 58 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Asset quality
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 |
| 0.0 |
| 0.2 |
| — |
| 0.0 |
AQ5-AQ8 |
| 77,908 |
| 11,465 |
| — |
| 89,373 |
| 35 |
| 29 |
| — |
| 64 |
| 0.0 |
| 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 |
| 0.0 |
| 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 |
| 0.0 |
| 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 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 59 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Asset quality
| | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 L0.4 billion migration of loans from Stage 3/AQ10 back to the good book. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 60 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Asset quality
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 | |
| |
NatWest Group – Form 6-K Interim Results 2025 | 61 |
Table of Contents
Risk and capital management continued
Credit risk – Banking activities continued
Asset quality
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 62 |
Table of Contents
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
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 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 63 |
Table of Contents
Risk and capital management continued
Credit risk – Trading activities continued
Derivatives
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 64 |
Table of Contents
Risk and capital management continued
Credit risk – Trading activities continued
Debt securities
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 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 65 |
Table of Contents
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%) | | RWAs £190.1bn (2024 - £183.2bn) | | UK leverage ratio 5.0% (2024 - 5.0%) |
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. | | 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. | | 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%) | | Liquidity portfolio £216.6bn (2024 - £222.3bn) | | LCR spot 147% (2024 - 150%) | LCR average 150% (2024 - 151%) | | NSFR spot 134% (2024 - 137%) | NSFR average 136% (2024 - 137%) |
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. | | 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. | | 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. | | 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. | ||
| |
NatWest Group – Form 6-K Interim Results 2025 | 66 |
Table of Contents
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 | % |
| |
NatWest Group – Form 6-K Interim Results 2025 | 67 |
Table of Contents
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%). |
| |
NatWest Group – Form 6-K Interim Results 2025 | 68 |
Table of Contents
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 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 69 |
Table of Contents
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 66. |
| - | 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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 70 |
Table of Contents
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital resources
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 71 |
Table of Contents
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). |
| |
NatWest Group – Form 6-K Interim Results 2025 | 72 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 73 |
Table of Contents
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 74 |
Table of Contents
Risk and capital management continued
Capital, liquidity and funding risk continued
Funding sources
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 75 |
Table of Contents
Risk and capital management continued
Capital, liquidity and funding risk continued
Liquidity portfolio
The table below shows the composition of the liquidity portfolio with primary liquidity aligned to high-quality liquid assets on a regulatory LCR basis. Secondary liquidity comprises of assets which are eligible as collateral for local central bank liquidity facilities and do not form part of the LCR eligible high-quality liquid assets. High-quality liquid assets cover both Pillar 1 and Pillar 2 risks.
| | | | | | | | | | | | |
| | Liquidity value | ||||||||||
| | 30 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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 76 |
Table of Contents
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%)
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 77 |
Table of Contents
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 78 |
Table of Contents
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) |
| |
NatWest Group – Form 6-K Interim Results 2025 | 79 |
Table of Contents
Risk and capital management continued
Non-traded market risk continued
Foreign exchange risk
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. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 80 |
Table of Contents
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%)
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.
| |
NatWest Group – Form 6-K Interim Results 2025 | 81 |
Table of Contents
Condensed consolidated income statement
for the period ended 30 June 2025 (unaudited)
| | | | | |
| | Half year ended | | ||
| | 30 June | | 30 June | |
|
| 2025 |
| 2024 | |
|
| £m |
| £m |
|
Interest receivable |
| |
| |
|
Interest payable |
| ( |
| ( |
|
Net interest income |
| |
| |
|
Fees and commissions receivable |
| |
| |
|
Fees and commissions payable |
| ( |
| ( |
|
Trading income |
| |
| |
|
Other operating income |
| |
| |
|
Non-interest income |
| |
| |
|
Total income |
| |
| |
|
Staff costs |
| ( |
| ( |
|
Premises and equipment |
| ( |
| ( |
|
Other administrative expenses |
| ( |
| ( |
|
Depreciation and amortisation |
| ( |
| ( |
|
Operating expenses |
| ( |
| ( |
|
Profit before impairment losses |
| |
| |
|
Impairment losses |
| ( |
| ( |
|
Operating profit before tax |
| |
| |
|
Tax charge |
| ( |
| ( |
|
Profit from continuing operations |
| |
| |
|
Profit from discontinued operations, net of tax | | — | | | |
Profit for the period | | | | | |
| | | | | |
Attributable to: | | | | | |
Ordinary shareholders |
| |
| |
|
Paid-in equity holders | | | | | |
Non-controlling interests |
| |
| |
|
| | |
| | |
| | | | | |
| | | | | |
Earnings per ordinary share - continuing operations | | | | ||
Earnings per ordinary share - discontinued operations | | — | | | |
Total earnings per share attributable to ordinary shareholders - basic | | | | ||
Earnings per ordinary share - fully diluted continuing operations | | | | ||
Earnings per ordinary share - fully diluted discontinued operations |
| — | | | |
Total earnings per share attributable to ordinary shareholders - fully diluted | | | | ||
| |
NatWest Group – Form 6-K Interim Results 2025 | 82 |
Table of Contents
Condensed consolidated statement of comprehensive income
for the period ended 30 June 2025 (unaudited)
| | | | |
| | Half year ended | ||
| | 30 June | | 30 June |
|
| 2025 |
| 2024 |
|
| £m |
| £m |
Profit for the period |
| |
| |
Items that will not be reclassified subsequently to profit or loss: | | | | |
Remeasurement of retirement benefit schemes | | | | ( |
Changes in fair value of financial liabilities designated at fair value through profit or loss (FVTPL) due to changes in credit risk | | ( | | ( |
Fair value through other comprehensive income (FVOCI) financial assets | | | | ( |
Tax |
| ( |
| |
|
| |
| ( |
Items that will be reclassified subsequently to profit or loss when specific conditions are met: | | | | |
FVOCI financial assets |
| |
| |
Cash flow hedges (1) |
| |
| |
Currency translation |
| ( |
| ( |
Tax |
| ( |
| ( |
|
| |
| |
Other comprehensive income/(losses) after tax |
| |
| ( |
Total comprehensive income for the period |
| |
| |
| | | | |
Attributable to: | | | | |
Ordinary shareholders |
| |
| |
Paid-in equity holders |
| |
| |
Non-controlling interests |
| |
| |
|
| |
| |
| (1) |
| |
NatWest Group – Form 6-K Interim Results 2025 | 83 |
Table of Contents
Condensed consolidated balance sheet
as at 30 June 2025 (unaudited)
| | | | |
| | 30 June | | 31 December |
|
| 2025 |
| 2024 |
|
| £m |
| £m |
Assets | | | | |
Cash and balances at central banks |
| |
| |
Trading assets | | | | |
Derivatives | | | | |
Settlement balances |
| |
| |
Loans to banks - amortised cost |
| |
| |
Loans to customers - amortised cost |
| |
| |
Other financial assets |
| |
| |
Intangible assets |
| |
| |
Other assets |
| |
| |
Total assets |
| |
| |
| | | | |
Liabilities | | | | |
Bank deposits | | | | |
Customer deposits | | | | |
Settlement balances |
| |
| |
Trading liabilities |
| |
| |
Derivatives | | | | |
Other financial liabilities | | | | |
Subordinated liabilities |
| |
| |
Notes in circulation | | | | |
Other liabilities |
| |
| |
Total liabilities |
| |
| |
| | | | |
Equity | | | | |
Ordinary shareholders' interests | | | | |
Other owners' interests |
| |
| |
Owners’ equity | | | | |
Non-controlling interests |
| |
| |
Total equity |
| |
| |
| | | | |
Total liabilities and equity |
| |
| |
| |
NatWest Group – Form 6-K Interim Results 2025 | 84 |
Table of Contents
Condensed consolidated statement of changes in equity
for the period ended 30 June 2025 (unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
|
| Share |
| |
| Other |
| |
| Other reserves |
| Total |
| Non |
| | ||||||
| | capital and | | Paid-in | | statutory | | Retained | | Fair | | Cash flow | | Foreign | | | | owners’ | | controlling | | Total |
| | share premium | | equity | | reserves (1) | | earnings | | value |
| hedging (2,3) |
| exchange |
| Merger | | equity | | interests | | equity |
| | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2025 | | | | | | | | | | ( | | ( | | | | | | | | | | |
Profit attributable to ordinary shareholders and other equity owners | | | | | | | | | | | | | | | | | | | | | | |
- continuing operations | | — | | — | | — | | | | — | | — | | — | | — | | | | | | |
- discontinued operations | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
| | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | |
Realised losses in period on FVOCI equity shares | | — | | — | | — | | ( | | | | — | | — | | — | | — | | — | | — |
Remeasurement of retirement benefit schemes | | — | | — | | — | | | | — | | — | | — | | — | | | | — | | |
Changes in fair value of credit in financial liabilities designated at FVTPL due to own credit risk | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Unrealised gains | | — | | — | | — | | — | | | | — | | — | | — | | | | — | | |
Amounts recognised in equity | | — | | — | | — | | — | | — | | | | — | | — | | | | — | | |
Retranslation of net assets | | — | | — | | — | | — | | — | | — | | ( | | — | | ( | | — | | ( |
Losses on hedges of net assets | | — | | — | | — | | — | | — | | — | | ( | | — | | ( | | — | | ( |
Amount transferred from equity to earnings (3) | | — | | — | | — | | — | | ( | | | | — | | — | | | | — | | |
Tax | | — | | — | | — | | ( | | ( | | ( | | | | — | | ( | | — | | ( |
Total comprehensive income/(losses) | | — | | — | | — | | | | | | | | ( | | — | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Transactions with owners | | | | | | | | | | | | | | | | | | | | | | |
Ordinary share dividends paid | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Paid in equity dividends | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Securities issued (4) | | — | | | | — | | — | | — | | — | | — | | — | | | | — | | |
Purchase of non-controlling interest | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | ( | | ( |
Shares repurchased during the period | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Employee share schemes | | — | | — | | — | | | | — | | — | | — | | — | | | | — | | |
Shares vested under employee share schemes | | — | | — | | | | — | | — | | — | | — | | — | | | | — | | |
Share-based remuneration | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
At 30 June 2025 | | | | | | | | | | ( | | ( | | | | | | | | | | |
For the notes to this table, refer to the following page.
| |
NatWest Group – Form 6-K Interim Results 2025 | 85 |
Table of Contents
Condensed consolidated statement of changes in equity
for the period ended 30 June 2025 (unaudited) continued
| | | | | | | | | | | | | | | | | | | | | | |
|
| Share |
| |
| Other |
| |
| Other reserves |
| Total |
| Non |
| | ||||||
| | capital and | | Paid-in | | statutory | | Retained | | Fair |
| Cash flow |
| Foreign |
| | | owners’ |
| controlling |
| Total |
| | share premium | | equity | | reserves (1) | | earnings | | value | | hedging (2,3) | | exchange | | Merger | | equity | | interests | | equity |
| | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2024 |
| | | | | | | | | ( | | ( | | | | | | | | | | |
Profit attributable to ordinary shareholders and other equity owners | | | | | | | | | | | | | | | | | | | | | | |
- continuing operations | | — | | — | | — | | | | — | | — | | — | | — | | | | | | |
- discontinued operations | | — | | — | | — | | | | — | | — | | — | | — | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | |
Realised gains in period on FVOCI equity shares | | — | | — | | — | | | | ( | | — | | — | | — | | — | | — | | — |
Remeasurement of retirement benefit schemes | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Changes in fair value of credit in financial liabilities designated at FVTPL due to own credit risk | | — | | — | | — | | ( | | | | — | | — | | — | | ( | | — | | ( |
Unrealised gains | | — | | — | | — | | — | | | | — | | — | | — | | | | — | | |
Amounts recognised in equity | | — | | — | | — | | — | | — | | ( | | — | | — | | ( | | — | | ( |
Retranslation of net assets | | — | | — | | — | | — | | — | | — | | ( | | — | | ( | | — | | ( |
Gains on hedges of net assets | | — | | — | | — | | — | | — | | — | | | | — | | | | — | | |
Amount transferred from equity to earnings (3) | | — | | — | | — | | — | | | | | | ( | | — | | | | — | | |
Tax | | — | | — | | — | | | | — | | ( | | ( | | — | | ( | | — | | ( |
Total comprehensive income/(losses) | | — | | — | | — | | | | | | | | ( | | — | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Transactions with owners | | | | | | | | | | | | | | | | | | | | | | |
Ordinary share dividends paid | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Paid in equity dividends | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Securities issued (4) | | — | | | | — | | — | | — | | — | | — | | — | | | | — | | |
Purchase of non-controlling interest | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Shares repurchased during the period (5,6) | | ( | | — | | | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Employee share schemes | | — | | — | | — | | ( | | — | | — | | — | | — | | ( | | — | | ( |
Shares vested under employee share schemes | | — | | — | | | | — | | — | | — | | — | | — | | | | — | | |
Share-based remuneration | | — | | — | | — | | | | — | | — | | — | | — | | | | — | | |
Own shares acquired | | — | | — | | ( | | — | | — | | — | | — | | — | | ( | | — | | ( |
At 30 June 2024 | | | | | | | | | | ( | | ( | | | | | | | | | | |
| (1) |
| (2) |
| (3) |
| (4) |
| (5) |
| (6) |
| |
NatWest Group – Form 6-K Interim Results 2025 | 86 |
Table of Contents
Condensed consolidated cash flow statement
for the period ended 30 June 2025 (unaudited)
| | | | |
| | Half year ended | ||
| | 30 June |
| 30 June |
|
| 2025 |
| 2024 |
|
| £m |
| £m |
Cash flows from operating activities | | | | |
Operating profit before tax from continuing operations | | | | |
Operating profit before tax from discontinued operations | | — | | |
Adjustments for non-cash and other items | | | | |
Net cash flows from trading activities | | | | |
Changes in operating assets and liabilities | | | | |
Net cash flows from operating activities before tax | | | | |
Income taxes paid | | ( | | ( |
Net cash flows from operating activities | | | | |
Net cash flows from investing activities | | ( | | ( |
Net cash flows from financing activities | | | | ( |
Effects of exchange rate changes on cash and cash equivalents | | | | ( |
Net (decrease)/increase in cash and cash equivalents | | ( | | |
Cash and cash equivalents at beginning of period | | | | |
Cash and cash equivalents at end of period | | | | |
| |
NatWest Group – Form 6-K Interim Results 2025 | 87 |
Table of Contents
Notes
1. Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction with the NatWest Group plc 2024 Annual Report on Form 20-F. The accounting policies are the same as those applied in the consolidated financial statements.
The directors have prepared the condensed consolidated financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date they are approved and in accordance with IAS 34 Interim Financial Reporting, as adopted by the UK and as issued by the International Accounting Standards Board (IASB), and the Disclosure Guidance and Transparency Rules sourcebook of the UK’s Financial Conduct Authority.
2. Net interest income
| | | | |
| | Half year ended | ||
| | 30 June |
| 30 June |
|
| 2025 |
| 2024 |
Continuing operations |
| £m |
| £m |
Balances at central banks and loans to banks - amortised cost | | | | |
Loans to customers - amortised cost |
| |
| |
Other financial assets |
| |
| |
Interest receivable |
| |
| |
| | | | |
Bank deposits |
| |
| |
Customer deposits |
| |
| |
Other financial liabilities |
| |
| |
Subordinated liabilities |
| |
| |
Interest payable |
| |
| |
| | | | |
Net interest income |
| |
| |
| |
NatWest Group – Form 6-K Interim Results 2025 | 88 |
Table of Contents
Notes continued
3. Non-interest income
| | | | |
| | Half year ended | ||
| | 30 June |
| 30 June |
|
| 2025 |
| 2024 |
Continuing operations | | £m | | £m |
Net fees and commissions (1) | | | | |
| | | | |
Foreign exchange |
| |
| |
Interest rate (2) |
| |
| |
Credit |
| |
| ( |
Changes in fair value of own debt and derivative liabilities attributable to own credit risk - debt securities in issue | | | | ( |
Equities, commodities and other |
| |
| |
Income from trading activities |
| |
| |
| | | | |
Rental income on operating lease assets and investment property | | | | |
Changes in fair value of financial assets and liabilities designated at FVTPL (3) | | ( | | ( |
Changes in fair value of other financial assets and liabilities designated at FVTPL | | | | |
Hedge ineffectiveness |
| ( |
| |
Share of profit of associated entities |
| |
| |
Other income |
| |
| |
Other operating income | | | | |
| | | | |
Non-interest income | | | | |
| (1) | Refer to Note 5 for further analysis. |
| (2) | Includes fair value changes on derivatives not designated in a hedge accounting relationship, and gains and losses from structural hedges. |
| (3) | Includes related derivatives. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 89 |
Table of Contents
Notes continued
4. Operating expenses
| | | | |
| | Half year ended | ||
| | 30 June | | 30 June |
|
| 2025 |
| 2024 |
Continuing operations | | £m | | £m |
Salaries |
| |
| |
Bonus awards | | | | |
Temporary and contract costs | | | | |
Social security costs |
| |
| |
Pension costs | | | | |
- defined benefit schemes |
| |
| |
- defined contribution schemes |
| |
| |
Other |
| |
| |
Staff costs |
| |
| |
| | | | |
Premises and equipment |
| |
| |
Depreciation and amortisation (1) |
| |
| |
Other administrative expenses |
| |
| |
Administrative expenses |
| |
| |
Operating expenses | | | | |
| (1) | Includes depreciation on right of use assets of £ |
| |
NatWest Group – Form 6-K Interim Results 2025 | 90 |
Table of Contents
Notes continued
5. Segmental analysis
The business is organised into the following reportable segments: Retail Banking, Private Banking & Wealth Management, Commercial & Institutional and Central items & other.
Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management.
Analysis of operating profit/(loss) before tax
The following tables provide a segmental analysis of operating profit/(loss) before tax by the main income statement captions.
| | | | | | | | | | |
|
| |
| Private Banking & |
| |
| |
| |
| | Retail | | Wealth | | Commercial & | | Central items & | | |
| | Banking | | Management | | Institutional | | other | | Total |
Half year ended 30 June 2025 | | £m | | £m | | £m | | £m | | £m |
Continuing operations | | | | | | | | | | |
Net interest income | | | | | | | | ( | | |
Net fees and commissions | | | | | | | | | | |
Other non-interest income | | ( | | | | | | | | |
Total income | | | | | | | | | | |
Depreciation and amortisation | | — | | — | | ( | | ( | | ( |
Other operating expenses | | ( | | ( | | ( | | | | ( |
Impairment losses | | ( | | ( | | ( | | ( | | ( |
Operating profit/(loss) | | | | | | | | ( | | |
| | | | | | | | | | |
Half year ended 30 June 2024 | | | | | | | | | | |
Continuing operations | | | | | | | | | | |
Net interest income |
| |
| |
| |
| |
| |
Net fees and commissions |
| |
| |
| |
| — |
| |
Other non-interest income |
| |
| |
| |
| |
| |
Total income |
| |
| |
| |
| |
| |
Depreciation and amortisation |
| ( |
| — |
| ( |
| ( |
| ( |
Other operating expenses |
| ( |
| ( |
| ( |
| |
| ( |
Impairment (losses)/releases |
| ( |
| |
| |
| |
| ( |
Operating profit |
| |
| |
| |
| |
| |
| |
NatWest Group – Form 6-K Interim Results 2025 | 91 |
Table of Contents
Notes continued
5. Segmental analysis continued
Total revenue (1)
| | | | | | | | | | |
| | | | Private Banking & | | | | | | |
| | Retail | | Wealth | | Commercial & | | Central items & | | |
| | Banking | | Management | | Institutional | | other | | Total |
Half year ended 30 June 2025 |
| £m |
| £m |
| £m |
| £m |
| £m |
Continuing operations | | | | | | | | | | |
External |
| |
| |
| |
| |
| |
Inter-segmental |
| |
| |
| ( |
| |
| — |
Total |
| |
| |
| |
| |
| |
| | | | | | | | | | |
Half year ended 30 June 2024 |
|
|
|
|
|
|
|
|
|
|
Continuing operations | | | | | | | | | | |
External |
| |
| |
| |
| |
| |
Inter-segmental |
| |
| |
| ( |
| |
| — |
Total |
| |
| |
| |
| |
| |
| (1) | Total revenue comprises interest receivable, fees and commissions receivable, income from trading activities and other operating income. |
Total assets and liabilities
| | | | | | | | | | |
| | | | Private Banking & | | | | | |
|
| | Retail | | Wealth | | Commercial & | | Central items & | | |
| | Banking | | Management | | Institutional | | other | | Total |
30 June 2025 |
| £m |
| £m |
| £m |
| £m |
| £m |
Assets |
| |
| |
| |
| |
| |
Liabilities |
| |
| |
| |
| |
| |
| | | | | | | | | | |
31 December 2024 |
|
|
|
|
|
|
|
|
|
|
Assets |
| |
| |
| |
| |
| |
Liabilities |
| |
| |
| |
| |
| |
| |
NatWest Group – Form 6-K Interim Results 2025 | 92 |
Table of Contents
Notes continued
5. Segmental analysis continued
Analysis of net fees and commissions
| | | | | | | | | | |
| | | | Private Banking | | | | | | |
| | Retail | | & Wealth | | Commercial | | Central items | | |
| | Banking | | Management | | & Institutional | | & other | | Total |
Half year ended 30 June 2025 | | £m | | £m | | £m | | £m | | £m |
Continuing operations | | | | | | | | | | |
Fees and commissions receivable |
|
|
|
|
|
|
|
|
|
|
- Payment services | | | | | | | | — | | |
- Credit and debit card fees |
| |
| |
| |
| — |
| |
- Lending and financing |
| |
| |
| |
| — |
| |
- Brokerage |
| |
| |
| |
| — |
| |
- Investment management, trustee and fiduciary services | | | | | | | | | | |
- Underwriting fees |
| — |
| — |
| |
| — | | |
- Other |
| |
| |
| |
| ( |
| |
Total |
| |
| |
| |
| |
| |
Fees and commissions payable |
| ( |
| ( |
| ( |
| |
| ( |
Net fees and commissions |
| |
| |
| |
| |
| |
| | | | | | | | | | |
Half year ended 30 June 2024 | | | | | | | | | | |
Continuing operations | | | | | | | | | | |
Fees and commissions receivable |
|
|
|
|
|
|
|
|
|
|
- Payment services | | | | | | | | — | | |
- Credit and debit card fees |
| |
| |
| |
| |
| |
- Lending and financing |
| |
| |
| |
| — |
| |
- Brokerage |
| |
| |
| |
| — |
| |
- Investment management, trustee and fiduciary services |
| | | | | | | | | |
- Underwriting fees |
| — |
| — |
| |
| — | | |
- Other |
| |
| |
| |
| ( |
| |
Total |
| |
| |
| |
| ( |
| |
Fees and commissions payable |
| ( |
| ( |
| ( |
| |
| ( |
Net fees and commissions |
| |
| |
| |
| — |
| |
| |
NatWest Group – Form 6-K Interim Results 2025 | 93 |
Table of Contents
Notes continued
6. Tax
The actual tax charge differs from the expected tax charge computed by applying the standard UK corporation tax rate of
| | | | |
| | Half year ended | ||
| | 30 June |
| 30 June |
|
| 2025 | | 2024 |
Continuing operations | | £m | | £m |
Profit before tax | | | | |
| | | | |
Expected tax charge |
| ( | | ( |
Losses and temporary differences in period where no deferred tax assets recognised |
| ( | | ( |
Foreign profits taxed at other rates |
| | | |
Items not allowed for tax: | | | | |
- losses on disposals and write-downs |
| | | ( |
- UK bank levy |
| ( | | ( |
- regulatory and legal actions |
| ( | | ( |
- other disallowable items |
| ( | | ( |
Non-taxable items: | | | | |
- RPI-related uplift on index-linked gilts | | | | |
- other non-taxable items | | | | |
Taxable foreign exchange movements |
| ( | | |
Unrecognised losses bought forward and utilised |
| | | |
Net increase in the carrying value of deferred tax assets in respect of UK losses | | | | — |
Banking surcharge |
| ( | | ( |
Pillar 2 top-up tax | | — | | ( |
Tax on paid-in equity dividends | | | | |
Adjustments in respect of prior years | | | | |
Actual tax charge |
| ( | | ( |
At 30 June 2025, NatWest Group has recognised a deferred tax asset of £
| |
NatWest Group – Form 6-K Interim Results 2025 | 94 |
Table of Contents
Notes continued
7. Financial instruments - classification
The following tables analyse financial assets and liabilities in accordance with the categories of financial instruments in IFRS 9.
| | | | | | | | | | | | |
| | | | | | | | Amortised | | Other |
| |
| | MFVTPL | | DFV | | FVOCI | | cost | | assets |
| Total |
Assets |
| £m |
| £m |
| £m |
| £m |
| £m |
| £m |
Cash and balances at central banks |
| — |
| — | | — |
| |
| — | | |
Trading assets | | | | — | | — | | — | | — | | |
Derivatives (1) | | | | — | | — | | — | | — | | |
Settlement balances |
| — | | — | | — | | | | — | | |
Loans to banks - amortised cost (2) |
| — |
| — | | — |
| |
| — | | |
Loans to customers - amortised cost (3) |
| — |
| — | | — |
| |
| — | | |
Other financial assets |
| | | | | |
| |
| — | | |
Intangible assets |
| — | | — | | — | | — |
| | | |
Other assets | | — | | — | | — | | — | | | | |
30 June 2025 |
| |
| | | |
| |
| |
| |
| | | | | | | | | | | | |
Cash and balances at central banks | | — | | — | | — | | | | — | | |
Trading assets | | | | — | | — | | — | | — | | |
Derivatives (1) | | | | — | | — | | — | | — | | |
Settlement balances | | — | | — | | — | | | | — | | |
Loans to banks - amortised cost (2) | | — | | — | | — | | | | — | | |
Loans to customers - amortised cost (3) | | — | | — | | — | | | | — | | |
Other financial assets | | | | | | | | | | — | | |
Intangible assets | | — | | — | | — | | — | | | | |
Other assets | | — | | — | | — | | — | | | | |
31 December 2024 |
| |
| | | |
| |
| |
| |
For the notes to this table refer to the following page.
| |
NatWest Group – Form 6-K Interim Results 2025 | 95 |
Table of Contents
Notes continued
7. Financial instruments - classification continued
| | | | | | | | | | |
| | | | | | Amortised | | Other | | |
|
| Held-for-trading |
| DFV |
| cost |
| liabilities |
| Total |
Liabilities |
| £m | | £m | | £m | | £m | | £m |
Bank deposits (4) |
| — |
| — | | |
| — |
| |
Customer deposits |
| — |
| — | | |
| — |
| |
Settlement balances |
| — |
| — | | |
| — |
| |
Trading liabilities | | | | — | | — | | — | | |
Derivatives (1) |
| |
| — | | — |
| — |
| |
Other financial liabilities (5) |
| — |
| | | |
| — |
| |
Subordinated liabilities |
| — |
| | | |
| — |
| |
Notes in circulation | | — | | — | | | | — | | |
Other liabilities (6) |
| — |
| — | | |
| |
| |
30 June 2025 |
| |
| | | |
| |
| |
| | | | | | | | | | |
Bank deposits (4) |
| — |
| — | | |
| — |
| |
Customer deposits |
| — |
| — | | |
| — |
| |
Settlement balances |
| — |
| — | | |
| — |
| |
Trading liabilities |
| |
| — | | — |
| — |
| |
Derivatives (1) |
| |
| — | | — |
| — |
| |
Other financial liabilities (5) |
| — |
| | | |
| — |
| |
Subordinated liabilities |
| — |
| | | |
| — |
| |
Notes in circulation | | — | | — | | | | — | | |
Other liabilities (6) |
| — |
| — | | |
| |
| |
31 December 2024 |
| |
| | | |
| |
| |
| (1) | Includes net hedging derivative assets of £ |
| (2) | Includes items in the course of collection from other banks of £ |
| (3) | Includes finance lease receivables of £ |
| (4) | Includes items in the course of transmission to other banks of £ |
| (5) | The carrying amount of other customer accounts designated at fair value through profit or loss is the same as the principal amount for both periods. |
| (6) | Includes lease liabilities of £ |
| |
NatWest Group – Form 6-K Interim Results 2025 | 96 |
Table of Contents
Notes continued
8. Financial instruments - valuation
Disclosures relating to the control environment, valuation techniques and related aspects pertaining to financial instruments measured at fair value are included in the NatWest Group plc 2024 Annual Report on Form 20-F. Valuation, sensitivity methodologies and inputs at 30 June 2025 are consistent with those described in Note 10 to the financial statements in the NatWest Group plc 2024 Annual Report on Form 20-F.
Fair value hierarchy
The table below shows the assets and liabilities held by NatWest Group split by fair value hierarchy level. Level 1 are considered the most liquid instruments, and level 3 the most illiquid, valued using expert judgment and hence carry the most significant price uncertainty.
| | | | | | | | | | | | | | | | |
| | 30 June 2025 | | 31 December 2024 | ||||||||||||
|
| Level 1 |
| Level 2 |
| Level 3 | | Total |
| Level 1 |
| Level 2 |
| Level 3 | | Total |
| | £m | | £m | | £m | | £m | | £m | | £m | | £m | | £m |
Assets |
|
| |
| | | |
|
|
|
|
|
| | |
|
Trading assets |
| | | | | | | |
|
|
|
|
| | |
|
Loans |
| — | | | | | | |
| — |
| |
| | | |
Securities |
| | | | | — | | |
| |
| |
| — | | |
Derivatives |
| | | | | | | | | | | | | | | |
Interest rate | | — | | | | | | | | — | | | | | | |
Foreign exchange | | — | | | | | | | | — | | | | | | |
Other | | — | | | | | | | | — | | | | | | |
Other financial assets |
| | | | | | | | | | | | | | | |
Loans |
| — | | | | | | |
| — |
| |
| | | |
Securities |
| | | | | | | |
| |
| |
| | | |
Total financial assets held at fair value |
| | | | | | | |
| |
| |
| | | |
As a % of total fair value assets | | | | | — | | | | | — | ||||||
| | | | | | | | | | | | | | | | |
Liabilities |
| | | | | | | |
|
|
|
|
| | |
|
Trading liabilities |
| | | | | | | |
|
|
|
|
| | |
|
Deposits | | — | | | | — | | |
| — |
| |
| — | | |
Debt securities in issue |
| — | | | | — | | |
| — |
| |
| — | | |
Short positions |
| | | | | | | |
| |
| |
| | | |
Derivatives |
| | | | | | | | | | | | | | | |
Interest rate | | — | | | | | | | | — | | | | | | |
Foreign exchange | | — | | | | | | | | — | | | | | | |
Other | | — | | | | | | | | — | | | | | | |
Other financial liabilities |
| | | | | | | | | | | | | | | |
Debt securities in issue |
| — | | | | | | |
| — |
| |
| | | |
Other deposits |
| — | | | | | | |
| — |
| |
| | | |
Subordinated liabilities |
| — | | | | — | | |
| — |
| |
| — | | |
Total financial liabilities held at fair value | | | | | | | | | | | | | | | | |
As a % of total fair value liabilities |
| | | | — | | | | | — | ||||||
| (1) | Level 1 - Instruments valued using unadjusted quoted prices in active and liquid markets, for identical financial instruments. Examples include government bonds, listed equity shares and certain exchange-traded derivatives. |
Level 2 - Instruments valued using valuation techniques that have observable inputs. Observable inputs are those that are readily available with limited adjustments required. Examples include most government agency securities, investment-grade corporate bonds, certain mortgage products - including CLOs, most bank loans, repos and reverse repos, state and municipal obligations, most notes issued, certain money market securities, loan commitments and most OTC derivatives.
Level 3 - Instruments valued using a valuation technique where at least one input which could have a significant effect on the instrument’s valuation, is not based on observable market data. Examples include non-derivative instruments which trade infrequently, certain syndicated and commercial mortgage loans, private equity, and derivatives with unobservable model inputs.
| (2) | Transfers between levels are deemed to have occurred at the beginning of the quarter in which the instrument was transferred. |
| (3) | For an analysis of debt securities held at mandatory fair value through profit or loss by issuer as well as ratings and derivatives, by type and contract, refer to Risk and capital management – Credit risk. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 97 |
Table of Contents
Notes continued
8. Financial instruments – valuation continued
Valuation adjustments
When valuing financial instruments in the trading book, adjustments are made to mid-market valuations to cover bid-offer spread, funding and credit risk. These adjustments are presented in the table below. For further information refer to the descriptions of valuation adjustments within ‘Financial instruments – valuation’ on page 220 of the NatWest Group plc 2024 Annual Report on Form 20-F.
| | | | |
| | 30 June | | 31 December |
| | 2025 | | 2024 |
|
| £m |
| £m |
Funding - FVA |
| |
| |
Credit - CVA |
| |
| |
Bid - Offer |
| |
| |
Product and deal specific |
| |
| |
Total |
| |
| |
| - | Valuation reserves comprising credit valuation adjustments (CVA), funding valuation adjustment (FVA), bid-offer and product and deal specific reserves, decreased to £ |
| - | The decrease in product and deal specific was driven by the amortisation of deferred trade inception profits partially offset by new trading activity. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 98 |
Table of Contents
Notes continued
8. Financial instruments – valuation continued
Level 3 sensitivities
The table below shows the favourable and unfavourable range of fair value of the level 3 assets and liabilities.
| | | | | | | | | | | | |
| | 30 June 2025 | | 31 December 2024 | ||||||||
| | Level 3 | | Favourable | | Unfavourable | | Level 3 | | Favourable | | Unfavourable |
|
| £m |
| £m |
| £m |
| £m |
| £m |
| £m |
Assets | | | | | | | | | | | | |
Trading assets | | | | | | | | | | | | |
Loans |
| |
| — |
| — |
| |
| — |
| — |
Securities |
| — |
| — |
| — |
| — |
| — |
| — |
Derivatives |
| | | | | | | | | | | |
Interest rate |
| |
| |
| ( |
| |
| |
| ( |
Foreign exchange |
| |
| |
| ( |
| |
| — |
| — |
Other |
| |
| — |
| — |
| |
| — |
| — |
Other financial assets |
| |
| |
| |
| |
| |
| |
Loans |
| |
| |
| ( |
| |
| — |
| ( |
Securities |
| |
| |
| ( |
| |
| |
| ( |
Total financial assets held at fair value |
| |
| |
| ( |
| |
| |
| ( |
|
| |
| |
| |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Trading liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
| — |
| — |
| — |
| — |
| — |
| — |
Short positions |
| |
| — |
| — |
| |
| — |
| — |
Derivatives |
| | | | | | | | | | | |
Interest rate |
| |
| |
| ( |
| |
| |
| ( |
Foreign exchange |
| |
| — |
| — |
| |
| — |
| — |
Other |
| |
| — |
| — |
| |
| |
| ( |
Other financial liabilities | | | | | | | | | | | | |
Debt securities in issue |
| |
| — |
| — |
| |
| — |
| — |
Other deposits |
| |
| |
| ( |
| |
| |
| ( |
Total financial liabilities held at fair value |
| |
| |
| ( | | |
| |
| ( |
Alternative assumptions
Reasonably plausible alternative assumptions of unobservable inputs are determined based on a specified target level of certainty of
| |
NatWest Group – Form 6-K Interim Results 2025 | 99 |
Table of Contents
Notes continued
8. Financial instruments – valuation continued
Movement in level 3 assets and liabilities
The following table shows the movement in level 3 assets and liabilities.
| | | | | | | | | | | | | | | | |
| | | | Other | | Other | | | | | | Other | | Other | | |
| | Derivatives | | trading | | financial | | Total | | Derivatives | | trading | | financial | | Total |
| | assets | | assets (2) | | assets (3) | | assets | | liabilities | | liabilities (2) | | liabilities | | liabilities |
|
| £m |
| £m |
| £m |
| £m |
| £m |
| £m |
| £m |
| £m |
At 1 January 2025 |
| |
| |
| |
| |
| |
| |
| |
| |
Amounts recorded in the income statement (1) |
| ( |
| |
| ( |
| ( |
| ( |
| — |
| |
| ( |
Amount recorded in the statement of comprehensive income |
| — |
| — |
| |
| |
| — |
| — |
| — |
| — |
Level 3 transfers in |
| |
| — |
| — |
| |
| |
| — |
| |
| |
Level 3 transfers out |
| ( |
| — |
| ( |
| ( |
| ( |
| — |
| — |
| ( |
Purchases/originations | | | | | | | | | | | | — | | — | | |
Settlements/other decreases |
| ( |
| ( |
| — |
| ( |
| ( |
| — |
| — |
| ( |
Sales |
| ( |
| ( |
| ( |
| ( |
| ( |
| — |
| — |
| ( |
Foreign exchange and other adjustments |
| |
| |
| |
| |
| |
| — |
| |
| |
At 30 June 2025 |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | |
Amounts recorded in the income statement in respect of balances held at period end - unrealised |
| |
| |
| ( |
| |
| ( |
| — |
| — |
| ( |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
At 1 January 2024 |
| |
| |
| |
| |
| |
| |
| |
| |
Amounts recorded in the income statement (1) |
| ( |
| |
| |
| ( |
| ( |
| — |
| — |
| ( |
Amount recorded in the statement of comprehensive income |
| — |
| — |
| ( |
| ( |
| — |
| — |
| — |
| — |
Level 3 transfers in |
| |
| — |
| — |
| |
| |
| — |
| |
| |
Level 3 transfers out |
| ( |
| ( |
| ( |
| ( |
| ( |
| ( |
| — |
| ( |
Purchases/originations | | | | | | | | | | | | | | — | | |
Settlements/other decreases |
| ( |
| ( |
| — |
| ( |
| ( |
| — |
| — |
| ( |
Sales |
| ( |
| — |
| ( |
| ( |
| ( |
| ( |
| — |
| ( |
Foreign exchange and other adjustments |
| — |
| |
| ( |
| ( |
| ( |
| — |
| — |
| ( |
At 30 June 2024 |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | |
Amounts recorded in the income statement in respect of balances held at period end - unrealised |
| |
| — |
| |
| |
| |
| — |
| — |
| |
| (1) | There were £ |
| (2) | Other trading assets and other trading liabilities comprise assets and liabilities held at fair value in trading portfolios. |
| (3) | Other financial assets comprise fair value through other comprehensive income, designated as at fair value through profit or loss and other fair value through profit or loss. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 100 |
Table of Contents
Notes continued
8. Financial instruments – valuation continued
Fair value of financial instruments measured at amortised cost on the balance sheet
The following table shows the carrying value and fair value of financial instruments carried at amortised cost on the balance sheet.
| | | | | | | | | | | | |
|
| |
| |
| |
| |
| | | Items where |
| | Carrying | | | | Fair value hierarchy level | | approximates | ||||
| | value | | Fair value | | Level 1 | | Level 2 | | Level 3 | | carrying value |
30 June 2025 | | £bn | | £bn | | £bn | | £bn | | £bn | | £bn |
Financial assets |
| |
| |
| |
| |
| | | |
Cash and balances at central banks |
| | | | | — | | — | | — | | |
Settlement balances | | | | | | — | | — | | — | | |
Loans to banks |
| | | | | — | | | | | | |
Loans to customers | | | | | | — | | | | | | — |
Other financial assets - securities |
| | | | | | | | | | | — |
| | | | | | | | | | | | |
31 December 2024 | | | | | | | | | | | | |
Financial assets |
| | | | | | | | | | | |
Cash and balances at central banks |
| | | | | — | | — | | — | | |
Settlement balances |
| | | | | — | | — | | — | | |
Loans to banks | | | | | | — | | | | | | |
Loans to customers |
| | | | | — | | | | | | — |
Other financial assets - securities | | | | | | | | | | | | — |
| | | | | | | | | | | | |
30 June 2025 |
| | | | | | | | | | | |
Financial liabilities |
| | | | | | | | | | | |
Bank deposits |
| |
| |
| — |
| |
| | | |
Customer deposits |
| |
| |
| — |
| |
| | | |
Settlement balances |
| |
| |
| — |
| — |
| — | | |
Other financial liabilities | | | | | | | | | | | | |
- debt securities in issue | | | | | | — | | | | | | — |
Subordinated liabilities |
| |
| |
| — |
| | | — | | — |
Notes in circulation | | | | | | — | | — | | — | | |
| | | | | | | | | | | | |
31 December 2024 | | | | | | | | | | | | |
Financial liabilities |
| |
| |
| |
| |
| | | |
Bank deposits | | |
| |
| — |
| |
| | | |
Customer deposits |
| |
| |
| — |
| |
| | | |
Settlement balances |
| |
| |
| — |
| — |
| — | | |
Other financial liabilities |
| | | | | | | | | | | |
- debt securities in issue | | |
| | | — | | | | | | — |
Subordinated liabilities | | | | | | — | | | | — | | — |
Notes in circulation |
| | | | | — | | — | | — | | |
| |
NatWest Group – Form 6-K Interim Results 2025 | 101 |
Table of Contents
Notes continued
8. Financial instruments – valuation continued
The assumptions and methodologies underlying the calculation of fair values of financial instruments at the balance sheet date are as follows:
Short-term financial instruments
For certain short-term financial instruments: cash and balances at central banks, items in the course of collection from other banks, settlement balances, items in the course of transmission to other banks, customer demand deposits and notes in circulation, carrying value is deemed a reasonable approximation of fair value.
Loans to banks and customers
In estimating the fair value of net loans to customers and banks measured at amortised cost, NatWest Group’s loans are segregated into appropriate portfolios reflecting the characteristics of the constituent loans. Two principal methods are used to estimate fair value: contractual cash flows and expected cash flows.
Debt securities and subordinated liabilities
Most debt securities are valued using quoted prices in active markets or from quoted prices of similar financial instruments in active markets. For the remaining population, fair values are determined using market standard valuation techniques, such as discounted cash flows.
Bank and customer deposits
Fair value of deposits is estimated using discounted cash flow valuation techniques.
| |
NatWest Group – Form 6-K Interim Results 2025 | 102 |
Table of Contents
Notes continued
9. Trading assets and liabilities
Trading assets and liabilities comprise assets and liabilities held at fair value in trading portfolios.
| | | | |
| | 30 June | | 31 December |
| | 2025 | | 2024 |
Assets |
| £m |
| £m |
Loans |
|
|
|
|
Reverse repos |
| |
| |
Collateral given |
| |
| |
Other loans |
| |
| |
Total loans |
| |
| |
Securities |
| |
|
|
Central and local government |
| |
|
|
- UK |
| |
| |
- US |
| |
| |
- Other |
| |
| |
Financial institutions and Corporate |
| |
| |
Total securities |
| |
| |
Total |
| |
| |
| | | | |
Liabilities |
| |
|
|
Deposits |
| |
|
|
Repos |
| |
| |
Collateral received |
| |
| |
Other deposits |
| |
| |
Total deposits |
| |
| |
Debt securities in issue |
| |
| |
Short positions |
| |
| |
Central and local government | | | | |
- UK | | | | |
- US | | | | |
- Other | | | | |
Financial institutions and Corporate | | | | |
Total short positions | | | | |
Total |
| |
| |
| |
NatWest Group – Form 6-K Interim Results 2025 | 103 |
Table of Contents
Notes continued
10. Loan impairment provisions
Loan exposure and impairment metrics
The table below summarises loans and related credit impairment measures on an IFRS 9 basis.
| | | | |
|
| 30 June | | 31 December |
| | 2025 | | 2024 |
| | £m | | £m |
Loans - amortised cost and FVOCI (1,2) |
| | |
|
Stage 1 |
| | | |
Stage 2 |
| | | |
Stage 3 |
| | | |
Of which: individual | | | | |
Of which: collective |
| | | |
| | | | |
ECL provisions (3) |
| | | |
Stage 1 |
| | | |
Stage 2 |
| | | |
Stage 3 |
| | | |
Of which: individual | | | | |
Of which: collective | | | | |
|
| | | |
ECL provisions coverage (4) |
| | | |
Stage 1 (%) | | | | |
Stage 2 (%) | | | | |
Stage 3 (%) | | | | |
|
| | | |
| | | | |
| | Half year ended | ||
| | 30 June | | 30 June |
| | 2025 | | 2024 |
| | £m | | £m |
Impairment losses |
| | | |
ECL charge/(release) (5) | | | | |
Stage 1 | | ( | | ( |
Stage 2 | | | | |
Stage 3 | | | | |
Of which: individual | | | | |
Of which: collective | | | | |
|
| | | |
Amounts written off |
| | | |
Of which: individual | | | | |
Of which: collective |
| | | |
| (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 £ |
| (2) | Fair value through other comprehensive income (FVOCI). Includes loans to customers and banks. |
| (3) | Includes £ |
| (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 £ |
| |
NatWest Group – Form 6-K Interim Results 2025 | 104 |
Table of Contents
Notes continued
11. Provisions for liabilities and charges
| | | | | | | | | | | | |
|
| |
| |
| |
| Financial |
|
|
|
|
| | Customer | | Litigation and | | | | commitments | | | | |
| | redress | | other regulatory | | Property | | and guarantees | | Other (1) | | Total |
| | £m | | £m | | £m | | £m | | £m | | £m |
At 1 January 2025 |
| |
| |
| |
| |
| |
| |
Expected credit losses impairment charge |
| | | | | | | | | | | |
Currency translation and other movements |
| |
| ( |
| |
| |
| |
| ( |
Charge to income statement |
| |
| |
| |
| |
| |
| |
Release to income statement |
| ( |
| |
| ( |
| |
| ( |
| ( |
Provisions utilised |
| ( |
| ( |
| ( |
| |
| ( |
| ( |
At 30 June 2025 |
| |
| |
| |
| |
| |
| |
| (1) | Other materially comprises of provisions relating to restructuring costs and Bank of England levy. The charge for the year includes restructuring costs of £ |
Provisions are liabilities of uncertain timing or amount and are recognised when there is a present obligation as a result of a past event, the outflow of economic benefit is probable and the outflow can be estimated reliably. Any difference between the final outcome and the amounts provided will affect the reported results in the period when the matter is resolved.
12. Dividends
The 2024 final dividend was approved by shareholders at the Annual General Meeting on 23 April 2025 and the payment made on 29 April 2025 to shareholders on the register at the close of business on 15 March 2025.
NatWest Group plc announces an interim dividend for 2025 of £
13. Contingent liabilities and commitments
The amounts shown in the table below are intended only to provide an indication of the volume of business outstanding at 30 June 2025. Although NatWest Group is exposed to credit risk in the event of a customer’s failure to meet its obligations, the amounts shown do not, and are not intended to, provide any indication of NatWest Group’s expectation of future losses.
| | | | |
| | 30 June | | 31 December |
| | 2025 | | 2024 |
|
| £m |
| £m |
Contingent liabilities and commitments | | | | |
Guarantees | | |
| |
Other contingent liabilities | | |
| |
Standby facilities, credit lines and other commitments | | |
| |
Total | | |
| |
Commitments and contingent obligations are subject to NatWest Group’s normal credit approval processes.
| |
NatWest Group – Form 6-K Interim Results 2025 | 105 |
Table of Contents
Notes continued
14. Litigation and regulatory matters
NatWest Group plc and certain members of NatWest Group are party to various legal proceedings and are involved in, or subject to, various regulatory matters, including as the subject of investigations and other regulatory and governmental action (Matters) in the United Kingdom (UK), the United States (US), the European Union (EU) and other jurisdictions.
NatWest Group recognises a provision for a liability in relation to these Matters when it is probable that an outflow of economic benefits will be required to settle an obligation resulting from past events, and a reliable estimate can be made of the amount of the obligation.
In many of the Matters, it is not possible to determine whether any loss is probable, or to estimate reliably the amount of any loss, either as a direct consequence of the relevant proceedings and regulatory matters or as a result of adverse impacts or restrictions on NatWest Group’s reputation, businesses and operations. Numerous legal and factual issues may need to be resolved, including through potentially lengthy discovery and document production exercises and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before the probability of a liability, if any, arising can reasonably be estimated in respect of any Matter. NatWest Group cannot predict if, how, or when such claims will be resolved or what the eventual settlement, damages, fine, penalty or other relief, if any, may be, particularly for Matters that are at an early stage in their development or where claimants seek substantial or indeterminate damages.
There are situations where NatWest Group may pursue an approach that in some instances leads to a settlement agreement. This may occur in order to avoid the expense, management distraction or reputational implications of continuing to contest liability, or in order to take account of the risks inherent in defending or contesting Matters, even for those for which NatWest Group believes it has credible defences and should prevail on the merits. The uncertainties inherent in all Matters affect the amount and timing of any potential economic outflows both for Matters with respect to which provisions have been established and other contingent liabilities in respect of any such Matter.
It is not practicable to provide an aggregate estimate of potential liability for our Matters as a class of contingent liabilities.
The future economic outflow in respect of any Matter may ultimately prove to be substantially greater than, or less than, the aggregate provision, if any, that NatWest Group has recognised in respect of such Matter. Where a reliable estimate of the economic outflow cannot be reasonably made, no provision has been recognised. NatWest Group expects that in future periods, additional provisions and economic outflows relating to Matters that may or may not be currently known by NatWest Group will be necessary, in amounts that are expected to be substantial in some instances. Refer to Note 13 for information on material provisions.
Matters which are, or could be, material, either individually or in aggregate, having regard to NatWest Group, considered as a whole, in which NatWest Group is currently involved are set out below. We have provided information on the procedural history of certain Matters, where we believe appropriate, to aid the understanding of the Matter.
For a discussion of certain risks associated with NatWest Group’s litigation and regulatory matters (including the Matters), refer to the Risk Factor relating to legal, regulatory and governmental actions and investigations set out on page 300 of the NatWest Group plc 2024 Annual Report on Form 20-F.
Litigation
London Interbank Offered Rate (LIBOR) and other rates litigation
NatWest Group plc and certain other members of NatWest Group, including NWM Plc, are defendants in a number of claims pending in the United States District Court for the Southern District of New York (SDNY) with respect to the setting of USD LIBOR. The complainants allege that certain members of NatWest Group and other panel banks violated various federal laws, including the US commodities and antitrust laws, and state statutory and common law, as well as contracts, by manipulating LIBOR and prices of LIBOR-based derivatives in various markets through various means.
The co-ordinated proceeding in the SDNY relating to USD LIBOR now includes
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14. Litigation and regulatory matters continued
Litigation
The non-class claims filed in the SDNY include claims that the Federal Deposit Insurance Corporation (FDIC) is asserting on behalf of certain failed US banks. In July 2017, the FDIC, on behalf of
In June 2025, NatWest Group companies reached an agreement to settle the FDIC’s claims, both those pending in the SDNY and those pending in the High Court of Justice in England and Wales. The settlement amount has been paid and was covered in full by an existing provision.
In addition to the USD LIBOR cases described above, there is a class action relating to derivatives allegedly tied to JPY LIBOR and Euroyen TIBOR, which was dismissed by the SDNY in relation to NWM Plc and other NatWest Group companies in September 2021. That dismissal is now the subject of an appeal to the United States Court of Appeals for the Second Circuit (US Court of Appeals).
In August 2020, a complaint was filed in the United States District Court for the Northern District of California by several United States retail borrowers against the USD ICE LIBOR panel banks and their affiliates (including NatWest Group plc, NWM Plc, NWMSI and NWB Plc), alleging (i) that the very process of setting USD ICE LIBOR amounts to illegal price-fixing; and (ii) that banks in the United States have illegally agreed to use LIBOR as a component of price in variable retail loans. In September 2022, the district court dismissed the complaint. In December 2024, the United States Court of Appeals for the Ninth Circuit affirmed the district court’s decision. In June 2025, the United States Supreme Court denied the claimants’ petition for review.
NWM Plc is also named as a defendant in a motion to certify a class action relating to LIBOR in the Tel Aviv District Court in Israel. NWM Plc filed a motion for cancellation of service outside the jurisdiction, which was granted in July 2020. The claimants appealed that decision and in November 2020 the appeal was refused and the claim dismissed by the Appellate Court. In January 2025, Israel’s Supreme Court dismissed the appeals in respect of the dismissal of the substantive case against banks that had a presence in Israel.
Subject to any limitation argument, the Supreme Court noted that further legal clarification of the matter could be sought, so there is potential for future LIBOR claims in Israel.
Foreign exchange litigation
NatWest Group plc, NWM Plc and/or NWMSI are defendants in several cases relating to NWM Plc’s foreign exchange (FX) business.
In May 2019, a cartel class action was filed in the Federal Court of Australia against NWM Plc and
In May 2025, NWM Plc executed an agreement to settle the claim in the Federal Court of Australia, subject to court approval of that settlement. The settlement amount is covered in full by an existing provision.
In July and December 2019,
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14. Litigation and regulatory matters continued
Litigation
In its amended judgment in November 2023, the Court of Appeal allowed the appeal and decided that the claims should proceed on an opt-out basis. Separately, the court determined which of the
The appeal was heard in April 2025 and judgment is awaited.
The applicants sought the court’s permission to amend their motions to certify the class actions. NWM Plc filed a motion challenging the permission granted by the court for the applicants to serve the consolidated motion outside the Israeli jurisdiction. That NWM Plc motion remains pending. In February 2024, NWM Plc executed an agreement to settle the claim, subject to court approval. The settlement amount is covered in full by an existing provision.
In December 2021, a summons was served in the Netherlands against NatWest Group plc, NWM Plc and NWM N.V. by Stichting FX Claims on behalf of a number of parties, seeking declarations from the court concerning liability for anti-competitive FX market conduct described in decisions of the European Commission (EC) of 16 May 2019, along with unspecified damages. The claimant amended its claim to also refer to a 2 December 2021 decision by the EC, which described anti-competitive FX market conduct. NatWest Group plc, NWM Plc and other defendants contested the jurisdiction of the Dutch court. In March 2023, the district court in Amsterdam accepted that it has jurisdiction to hear claims against NWM N.V. but refused jurisdiction to hear any claims against the other defendant banks (including NatWest Group plc and NWM Plc) brought on behalf of the parties represented by the claimant that are domiciled outside of the Netherlands. The claimant is appealing that decision. The defendant banks have brought cross-appeals which seek a ruling that the Dutch court has no jurisdiction to hear any claims against the defendant banks domiciled outside of the Netherlands, irrespective of whether the claim has been brought on behalf of a party represented by the claimant that is domiciled within or outside of the Netherlands. The Amsterdam Court of Appeal has stayed these appeal proceedings until the Court of Justice of the European Union has answered preliminary questions that have been referred to it in another matter.
In September 2023, a second summons was served by Stichting FX Claims on NatWest Group plc, NWM Plc and NWM N.V., on behalf of a new group of parties. The claimant seeks declarations from the district court in Amsterdam concerning liability for anti-competitive FX market conduct described in the above referenced decisions of the EC of 16 May 2019 and 2 December 2021, along with unspecified damages. NatWest Group plc, NWM Plc and other defendants are contesting the Dutch court's jurisdiction. The district court has stayed the proceedings pending judgment in the above-mentioned appeals.
In January 2025, a third summons was served by Stichting FX Claims on NatWest Group plc, NWM Plc and NWM N.V., on behalf of another new group of parties. The claimant seeks similar declarations from the district court in Amsterdam to those being sought in the above-mentioned claims, along with unspecified damages.
NatWest Group plc, NWM Plc and other defendants are contesting the Dutch court's jurisdiction. The district court has stayed the proceedings pending judgment in the above-mentioned appeals.
Certain other foreign exchange transaction related claims have been or may be threatened. NatWest Group cannot predict whether all or any of these claims will be pursued.
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14. Litigation and regulatory matters continued
Litigation
Swaps antitrust litigation
NWM Plc and other members of NatWest Group, including NatWest Group plc, as well as a number of other interest rate swap dealers, are defendants in several cases pending in the SDNY alleging violations of the US antitrust laws in the market for interest rate swaps.
In June 2021, a class action antitrust complaint was filed against a number of credit default swap dealers in New Mexico federal court on behalf of persons who, from 2005 onwards, settled credit default swaps in the United States by reference to the ISDA credit default swap auction protocol. The complaint alleges that the defendants conspired to manipulate that benchmark through various means in violation of the antitrust laws and the Commodity Exchange Act. The defendants filed a motion to dismiss the complaint and, in June 2023, such motion was denied as regards to NWMSI and other financial institutions, but granted as regards to NWM Plc on the ground that the court lacks jurisdiction over that entity.
In January 2024, the SDNY issued an order barring the plaintiffs in the New Mexico case from pursuing claims based on conduct occurring before 30 June 2014 on the ground that such claims were extinguished by a 2015 settlement agreement that resolved a prior class action relating to credit default swaps.
In May 2025, the SDNY’s decision was affirmed by the US Court of Appeals.
The case in the New Mexico federal court (which was stayed pending the appeal of the SDNY's decision) will now re - commence but as limited by the decision of the US Court of Appeals.
Odd lot corporate bond trading antitrust litigation
In July 2024, the US Court of Appeals vacated the SDNY's October 2021 dismissal of the class action antitrust complaint alleging that, from August 2006 onwards, various securities dealers, including NWMSI, conspired artificially to widen spreads for odd lots of corporate bonds bought or sold in the United States secondary market and to boycott electronic trading platforms that would have allegedly promoted pricing competition in the market for such bonds. The appellate court held that the district judge who made the decision should not have been presiding over the case because a member of the judge’s family had owned stock in one of the defendants while the motion was pending. The defendants are now seeking dismissal by a different district court judge.
Spoofing litigation
In December 2021,
Madoff
NWM N.V. was named as a defendant in
The claims were previously dismissed, but as a result of an August 2021 decision by the US Court of Appeals, they are now proceeding in the discovery phase in the bankruptcy court, where they have been consolidated into
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14. Litigation and regulatory matters continued
Litigation
Offshoring VAT assessments
HMRC, as part of an industry - wide review, issued protective tax assessments in 2018 against NatWest Group plc totalling £
In order to lodge the appeal with the Tax Tribunal, NatWest Group plc was required to pay amounts totalling £
NatWest Group plc was informed in late 2024 that the other bank had settled its case with HMRC by agreement. NatWest Group plc is currently considering the appropriate next steps for the appeal and the application for judicial review, in the expectation of progressing the appeal before the Tax Tribunal.
The amount of £
US Anti-Terrorism Act litigation
NWM N.V. and certain other financial institutions are defendants in several actions filed by a number of US nationals (or their estates, survivors, or heirs), most of whom are, or were, US military personnel who were killed or injured in attacks in Iraq between 2003 and 2011. NWM Plc is also a defendant in some of these cases.
According to the plaintiffs’ allegations, the defendants are liable for damages arising from the attacks because they allegedly conspired with and/or aided and abetted Iran and certain Iranian banks to assist Iran in transferring money to Hezbollah and the Iraqi terror cells that committed the attacks, in violation of the US Anti-Terrorism Act, by agreeing to engage in ‘stripping’ of transactions initiated by the Iranian banks so that the Iranian nexus to the transactions would not be detected.
The first of these actions, alleging conspiracy claims but not aiding and abetting claims, was filed in the United States District Court for the Eastern District of New York in November 2014. In September 2019, the district court dismissed the case, finding that the claims were deficient for several reasons, including lack of sufficient allegations as to the alleged conspiracy and causation. In January 2023, the US Court of Appeals affirmed the district court’s dismissal of this case. The plaintiffs have now filed a motion in the district court to re-open the case to assert aiding and abetting claims that they previously did not assert, which the defendants are opposing. Another action, filed in the SDNY in 2017, which asserted both conspiracy and aiding and abetting claims, was dismissed by the SDNY in March 2019 on similar grounds as the first case, but remains subject to appeal to the US Court of Appeals.
Other follow-on actions that are substantially similar to those described above are pending in the same courts.
1MDB litigation
A Malaysian court claim was served in Switzerland in November 2022 by 1MDB, a sovereign wealth fund, in which Coutts & Co Ltd was named, along with
Coutts & Co Ltd (a subsidiary of RBS Netherlands Holdings B.V., which in turn is a subsidiary of NWM Plc) is a company registered in Switzerland and is in wind-down following the announced sale of its business assets in 2015.
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14. Litigation and regulatory matters continued
Regulatory matters (including investigations and customer redress programmes)
NatWest Group’s businesses and financial condition can be affected by the actions of various governmental and regulatory authorities in the UK, the US, the EU and elsewhere. NatWest Group has engaged, and will continue to engage, in discussions with relevant governmental and regulatory authorities, including in the UK, the US, the EU and elsewhere, on an ongoing and regular basis, and in response to informal and formal inquiries or investigations, regarding operational, systems and control evaluations and issues including those related to compliance with applicable laws and regulations, including consumer protection, investment advice, business conduct, competition/anti-trust, VAT recovery, anti-bribery, anti-money laundering and sanctions regimes. NatWest Group expects government and regulatory intervention in financial services to be high for the foreseeable future, including increased scrutiny from competition and other regulators in the retail and SME business sectors.
Any matters discussed or identified during such discussions and inquiries may result in, among other things, further inquiry or investigation, other action being taken by governmental and regulatory authorities, increased costs being incurred by NatWest Group, remediation of systems and controls, public or private censure, restriction of NatWest Group’s business activities and/or fines. Any of the events or circumstances mentioned in this paragraph or below could have a material adverse effect on NatWest Group, its business, authorisations and licences, reputation, results of operations or the price of securities issued by it, or lead to material additional provisions being taken.
NatWest Group is co-operating fully with the matters described below.
US investigations relating to fixed-income securities
In December 2021, NWM Plc pled guilty in the United States District Court for the District of Connecticut to
The DOJ and USAO CT paused the monitorship in May 2025 and, following a review, have determined that a monitorship was no longer necessary as a result of NWM’s notable progress in strengthening its compliance programme, certain of NWM’s remedial improvements, internal controls, and the status of implementation of Monitor recommendations, and that reporting by NWM to the DOJ and USAO CT on its continued compliance programme progress provided an appropriate degree of oversight. This agreement is subject to documentation and court approval. If approved, NWM’s obligations under the plea agreement and probation would be extended until December 2026. Should DOJ, USAO CT, and NWM be unable to agree on the documentation or the court declines to approve the amendment, the parties would need to agree on, and/or revert to the court with an alternative plan, as applicable.
In the event that NWM Plc does not meet its obligations to the DOJ, this may lead to adverse consequences such as increased costs, findings that NWM Plc violated its probation term, and possible re-sentencing, amongst other consequences. Other material adverse collateral consequences may occur as a result of this matter, as further described in the Risk Factor relating to legal, regulatory and governmental actions and investigations set out on page 300 of the NatWest Group plc 2024 Annual Report on Form 20-F.
RBSI Ltd reliance regime and referral to enforcement
In January 2023, the Jersey Financial Services Commission (JFSC) notified RBSI Ltd that it had been referred to its Enforcement Division in relation to RBSI Ltd’s operation of the reliance regime. The reliance regime is specific to certain Crown Dependencies and enables RBSI Ltd to rely on regulated third parties for specific due diligence information. In July 2025, the JFSC confirmed the investigation had concluded, having determined it reasonable to take no further action.
Investment advice review
In October 2019, the FCA notified NatWest Group of its intention to appoint a Skilled Person under section 166 of the Financial Services and Markets Act 2000 to conduct a review of whether NatWest Group’s past business review of investment advice provided during 2010 to 2015 was subject to appropriate governance and accountability and led to appropriate customer outcomes. The Skilled Person’s review has concluded and, after discussion with the FCA, NatWest Group is undertaking additional review / remediation work.
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Notes continued
14. Litigation and regulatory matters continued
Review and investigation of treatment of tracker mortgage customers in Ulster Bank Ireland DAC
In December 2015, correspondence was received from the Central Bank of Ireland setting out an industry examination framework in respect of the sale of tracker mortgages from approximately 2001 until the end of 2015.
The redress and compensation process has now largely concluded, although a small number of cases remain outstanding relating to uncontactable customers.
UBIDAC customers have lodged tracker mortgage complaints with the Financial Services and Pensions Ombudsman (FSPO). UBIDAC challenged
Notification is awaited from FSPO whether it intends to hold oral hearings in the
Other customer remediation in Ulster Bank Ireland DAC
UBIDAC identified other legacy issues leading to the establishment of remediation requirements, and progress is ongoing to conclude activities.
15. Related party transactions
UK Government
In May 2025, the UK Government through His Majesty’s Treasury (HMT) sold its remaining shareholding in NatWest Group plc. Under UK listing rules the UK Government and UK Government-controlled bodies remained related parties until 12 July 2025,
NatWest Group enters into transactions with many of these bodies. Transactions include the payment of: taxes – principally UK corporation tax and value added tax; national insurance contributions; local authority rates; regulatory fees and levies; together with banking transactions such as loans and deposits undertaken in the normal course of banker-customer relationships.
Bank of England facilities
NatWest Group may participate in a number of schemes operated by the Bank of England in the normal course of business.
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15. Related party transactions continued
Other related parties
(a) In their roles as providers of finance, NatWest Group companies provide development and other types of capital support to businesses. These investments are made in the normal course of business.
(b) To further strategic partnerships, NatWest Group may seek to invest in third parties or allow third parties to hold a minority interest in a subsidiary of NatWest Group. We disclose as related parties for associates and joint ventures and where equity interests are over 10%. Ongoing business transactions with these entities are on normal commercial terms.
(c) NatWest Group recharges the NatWest Group Pension Fund with the cost of pension management services incurred by it.
(d) In accordance with IAS 24, transactions or balances between NatWest Group entities that have been eliminated on consolidation are not reported.
Full details of NatWest Group’s related party transactions for the year ended 31 December 2024 are included in the NatWest Group plc 2024 Annual Report on Form 20 - F.
16. Post balance sheet events
On 2 July 2025 NatWest Group plc gave notice to holders of the $
There have been no other significant events between 30 June 2025 and the date of approval of this announcement which would require a change to, or additional disclosure, in the announcement.
17. Date of approval
This announcement was approved by the Board of Directors on 24 July 2025.
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NatWest Group plc Summary Risk Factors
Summary of Principal Risks and Uncertainties
Set out below is a summary of the principal risks and uncertainties for the remaining six months of the financial year which could adversely affect NatWest Group.
This summary should not be regarded as a complete and comprehensive statement of all potential risks and uncertainties; a fuller description of these and other risk factors is included on pages 408 to 426 of the NatWest Group plc 2024 Annual Report and Accounts and pages 283 to 304 of the NatWest Group plc 2024 Annual Report on Form 20-F. Any of the risks identified may have a material adverse effect on NatWest Group’s business, operations, financial condition or prospects.
Economic and political risk
| - | NatWest Group, its customers and its counterparties face continued economic and political risks and uncertainties in the UK and global markets, including as a result of inflation and interest rates, supply chain disruption, and geopolitical developments. |
| - | Changes in interest rates will continue to affect NatWest Group’s business and results. |
| - | Fluctuations in currency exchange rates may adversely affect NatWest Group’s results and financial condition. |
Business change and execution risk
| - | The implementation and execution of NatWest Group’s strategy carries execution and operational risks and it may not achieve its stated aims and targeted outcomes. |
| - | Acquisitions, divestments, or other transactions by NatWest Group may not be successful. |
| - | The transfer of NatWest Group’s Western European corporate portfolio involves certain risks. |
Financial resilience risk
| - | NatWest Group may not achieve its ambitions or targets, meet its guidance, or be in a position to continue to make discretionary capital distributions (including dividends to shareholders). |
| - | NatWest Group operates in markets that are highly competitive, with competitive pressures and technology disruption. |
| - | NatWest Group has significant exposure to counterparty and borrower risk including credit losses, which may have an adverse effect on NatWest Group. |
| - | NatWest Group may not meet the prudential regulatory requirements for liquidity and funding or may not be able to adequately access sources of liquidity and funding, which could trigger the execution of certain management actions or recovery options. |
| - | NatWest Group may not meet the prudential regulatory requirements for regulatory capital and MREL, or manage its capital effectively, which could trigger the execution of certain management actions or recovery options. |
| - | Any reduction in the credit rating and/or outlooks assigned to NatWest Group plc, any of its subsidiaries or any of their respective debt securities could adversely affect the availability of funding for NatWest Group, reduce NatWest Group’s liquidity and funding position and increase the cost of funding. |
| - | NatWest Group may be adversely affected if it fails to meet the requirements of regulatory stress tests. |
| - | NatWest Group could incur losses or be required to maintain higher levels of capital as a result of limitations or failure of various models. |
| - | NatWest Group’s financial statements are sensitive to underlying accounting policies, judgements, estimates and assumptions. |
| - | Changes in accounting standards may materially impact NatWest Group’s financial results. |
| - | The value or effectiveness of any credit protection that NatWest Group has purchased depends on the value of the underlying assets and the financial condition of the insurers and counterparties. |
| - | NatWest Group is subject to regulatory oversight in respect of resolution, and NatWest Group could be adversely affected should the BoE in the future deem NatWest Group’s preparations to be inadequate. |
| - | NatWest Group may become subject to the application of UK statutory stabilisation or resolution powers which may result in, for example, the cancellation, transfer or dilution of ordinary shares, or the write-down or conversion of certain other of NatWest Group’s securities. |
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NatWest Group plc summary risk factors continued
Summary of Principal Risks and Uncertainties continued
Operational and IT resilience risk
| - | Operational risks (including reliance on third party suppliers and outsourcing of certain activities) are inherent in NatWest Group’s businesses. |
| - | NatWest Group is subject to sophisticated and frequent cyberattacks, and compliance with cybersecurity and data protection regulations is becoming increasingly complex. |
| - | NatWest Group’s operations and strategy are highly dependent on the accuracy and effective use of data. |
| - | NatWest Group’s operations are highly dependent on its complex IT systems and any IT failure could adversely affect NatWest Group. |
| - | NatWest Group relies on attracting, retaining and developing diverse senior management and skilled personnel, and is required to maintain good employee relations. |
| - | A failure in NatWest Group’s risk management framework could adversely affect NatWest Group, including its ability to achieve its strategic objectives. |
| - | NatWest Group’s operations are subject to inherent reputational risk. |
Legal and regulatory risk
| - | NatWest Group’s businesses are subject to substantial regulation and oversight, which are constantly evolving and may adversely affect NatWest Group. |
| - | NatWest Group is exposed to the risks of various litigation matters, regulatory and governmental actions and investigations as well as remedial undertakings, the outcomes of which are inherently difficult to predict, and which could have an adverse effect on NatWest Group. |
| - | Changes in tax legislation (or application thereof) or failure to generate future taxable profits may impact the recoverability of certain deferred tax assets recognised by NatWest Group. |
Climate and sustainability-related risks
| - | NatWest Group and its Value Chain face climate and sustainability-related risks that may adversely affect NatWest Group. |
| - | NatWest Group’s strategy relating to climate change, ambitions, targets and transition plan entail significant execution and/or reputational risks and are unlikely to be achieved without significant and timely government policy, technology and customer behavioural changes. |
| - | There are significant limitations related to accessing accurate, reliable, verifiable, auditable, consistent and comparable climate and other sustainability-related data that contribute to substantial uncertainties in accurately modelling and reporting on climate and sustainability information, as well as making appropriate important internal decisions. |
| - | NatWest Group is becoming subject to more extensive, and sophisticated climate and other sustainability-related laws, regulation and oversight and there is an increasing risk of regulatory enforcement, investigation and litigation. |
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Statement of directors’ responsibilities
We, the directors listed below, confirm that to the best of our knowledge:
| - | the condensed financial statements have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’, as adopted by the UK and as issued by the International Accounting Standards Board (IASB); |
| - | the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and |
| - | the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties’ transactions and changes therein). |
By order of the Board
Richard Haythornthwaite | John-Paul Thwaite | Katie Murray |
Chair | Group Chief Executive Officer | Group Chief Financial Officer |
24 July 2025
Board of directors
Chair | Executive directors | Non-executive directors |
Richard Haythornthwaite | John-Paul Thwaite Katie Murray | Roisin Donnelly Patrick Flynn Geeta Gopalan Yasmin Jetha Stuart Lewis Gillian Whitehead Lena Wilson |
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Additional information
Other financial data
The following table shows NatWest Group’s issued and fully paid share capital, owners’ equity and indebtedness on a consolidated basis in accordance with IFRS as at 30 June 2025.
| | |
|
| As at |
| | 30 June |
| | 2025 |
| | £m |
Share capital - allotted, called up and fully paid | | |
Ordinary shares of £1.0769 | | 8,972 |
Retained earnings and other reserves |
| 32,986 |
Owners’ equity |
| 41,958 |
| | |
NatWest Group indebtedness |
| |
Trading liabilities - debt securities in issue |
| 251 |
Other financial liabilities – debt securities in issue |
| 63,957 |
Subordinated liabilities |
| 6,006 |
Total indebtedness |
| 70,214 |
Total capitalisation and indebtedness |
| 112,172 |
Under IFRS, certain preference shares are classified as debt and are included in subordinated liabilities in the table above.
The information contained in the table above has not changed materially since 30 June 2025.
Share information
| | | | | | |
|
| 30 June |
| 31 March |
| 31 December |
| | 2025 | | 2025 | | 2024 |
Ordinary share price (pence) |
| 511 |
| 451 |
| 402 |
Number of ordinary shares in issue (millions) |
| 8,331 |
| 8,331 |
| 8,331 |
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Non-IFRS financial measures
NatWest Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). This document contains a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-GAAP financial measures in accordance with the Securities and Exchange Commission (SEC) regulations. These measures are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison.
The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include a calculation of metrics that are used throughout the banking industry.
These non-IFRS measures are not a substitute for IFRS measures and a reconciliation to the closest IFRS measure is presented where appropriate.
Measure | Description |
Cost:income ratio (excl. litigation and conduct) Refer to table 2. Cost:income ratio (excl. litigation and conduct) on page 120. | The cost:income ratio (excl. litigation and conduct) is calculated as other operating expenses (operating expenses less litigation and conduct costs) divided by total income. Litigation and conduct costs are excluded as they are one-off in nature, difficult to forecast for Outlook purposes and distort period-on-period comparisons. |
Customer deposits excluding central items Refer to Segment performance on pages 19-23 for components of calculation. | Customer deposits excluding central items is calculated as total NatWest Group customer deposits excluding Central items & other customer deposits. Central items & other includes Treasury repo activity and Ulster Bank RoI. The exclusion of Central items & other removes the volatility relating to Treasury repo activity and the reduction of deposits as part of our withdrawal from the Republic of Ireland. These items may distort period-on-period comparisons and their removal gives the user of the financial statements a better understanding of the movements in customer deposits. |
Funded assets Refer to Condensed consolidated balance sheet on page 84 for components of calculation. | Funded assets is calculated as total assets less derivative assets. This measure allows review of balance sheet trends exclusive of the volatility associated with derivative fair values. |
Loan:deposit ratio (excl. repos and reverse repos) Refer to table 5. Loan:deposit ratio (excl. repos and reverse repos) on page 122. | Loan:deposit ratio (excl. repos and reverse repos) is calculated as net customer loans held at amortised cost excluding reverse repos divided by total customer deposits excluding repos. This metric is used to assess liquidity. The removal of repos and reverse repos reduces volatility and presents the ratio on a basis that is comparable to UK peers. The nearest ratio using IFRS measures is: loan:deposit ratio - this is calculated as net loans to customers held at amortised cost divided by customer deposits. |
NatWest Group Return on Tangible Equity Refer to table 7. NatWest Group Return on Tangible Equity on page 122. | NatWest Group Return on Tangible Equity comprises annualised profit or loss for the period attributable to ordinary shareholders divided by average tangible equity. Average tangible equity is average total equity excluding average non-controlling interests, average other owners’ equity and average intangible assets. This measure shows the return NatWest Group generates on tangible equity deployed. It is used to determine relative performance of banks and used widely across the sector, although different banks may calculate the rate differently. The nearest ratio using IFRS measures is: return on equity - this comprises profit attributable to ordinary shareholders divided by average total equity. |
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Non-IFRS financial measures continued
Measure | Description |
Net interest margin and average interest earning assets Refer to Segment performance on pages 19-23 for components of calculation. | Net interest margin is net interest income, as a percentage of average interest earning assets (IEA). Average IEA are daily average IEA of the banking business of NatWest Group and primarily consists of cash and balances at central banks, loans to banks, loans to customers and other financial assets. It excludes trading balances and assets in treasury repurchase agreements that have not been derecognised. Average IEA shows the average asset base generating interest over the period. |
Net loans to customers excluding central items Refer to Segment performance on pages 19-23 for components of calculation. | Net loans to customers excluding central items is calculated as total NatWest Group net loans to customers excluding Central items & other net loans to customers. Central items & other includes Treasury reverse repo activity and Ulster Bank RoI. The exclusion of Central items & other removes the volatility relating to Treasury reverse repo activity and the reduction of loans to customers as part of our withdrawal from the Republic of Ireland. This allows for better period-on-period comparisons and gives the user of the financial statements a better understanding of the movements in net loans to customers. |
Operating expenses excluding litigation and conduct Refer to table 4. Operating expenses excluding litigation and conduct on page 121. | The management analysis of operating expenses shows litigation and conduct costs separately. These amounts are included within staff costs and other administrative expenses in the statutory analysis. Other operating expenses excludes litigation and conduct costs, which are more volatile and may distort period-on-period comparisons. |
Segmental return on equity Refer to table 8. Segmental return on equity on page 123. | Segment return on equity comprises segmental operating profit or loss, adjusted for paid-in equity and tax, divided by average notional equity. Average RWAe is defined as average segmental RWAs incorporating the effect of capital deductions. This is multiplied by an allocated equity factor for each segment to calculate the average notional equity. This measure shows the return generated by operating segments on equity deployed. |
Tangible net asset value (TNAV) per ordinary share Refer to table 3. Tangible net asset value (TNAV) per ordinary share on page 121. | TNAV per ordinary share is calculated as tangible equity divided by the number of ordinary shares in issue. This is a measure used by external analysts in valuing the bank and allows for comparison with other per ordinary share metrics including the share price. The nearest ratio using IFRS measures is: net asset value (NAV) per ordinary share - this comprises ordinary shareholders’ interests divided by the number of ordinary shares in issue. |
Total combined assets and liabilities (CAL) – Private Banking & Wealth Management Refer to table 6. Total combined assets and liabilities (CAL) – Private Banking & Wealth Management on page 122. | CAL refers to customer deposits, net loans to customers (amortised cost) and AUMA. To avoid double counting, investment cash is deducted as it is reported within customer deposits and AUMA. The components of CAL are key drivers of income and provide a measure of growth and strength of the business on a comparable basis. |
Total income excluding notable items Refer to table 1. Total income excluding notable items on page 120. | Total income excluding notable items is calculated as total income less notable items. The exclusion of notable items aims to remove the impact of one-offs and other items which may distort period-on-period comparisons. |
| |
NatWest Group – Form 6-K Interim Results 2025 | 119 |
Table of Contents
Non-IFRS financial measures continued
1. Total income excluding notable items
| | | | | | | | | | |
|
| 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 | | 7,985 |
| 7,134 | | 4,005 |
| 3,980 |
| 3,659 |
Less notable items: | | | | | | | | | | |
Commercial & Institutional | | | | | | | | | | |
Own credit adjustments (OCA) | | 3 |
| (7) | | (3) |
| 6 |
| (2) |
Central items & other | | | | | | | | | | |
Share of associate profits/(losses) for Business Growth Fund |
| 14 |
| 11 |
| (1) |
| 15 |
| 4 |
Interest and FX management derivatives not in hedge accounting relationships |
| 6 |
| 126 |
| (1) |
| 7 |
| 67 |
| | 23 |
| 130 | | (5) |
| 28 |
| 69 |
Total income excluding notable items |
| 7,962 |
| 7,004 |
| 4,010 |
| 3,952 |
| 3,590 |
2. Cost:income ratio (excl. litigation and conduct)
| | | | | | | | | | |
| | 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 |
| |
| |
| |
| |
| |
Operating expenses |
| 4,018 |
| 4,057 |
| 2,039 |
| 1,979 |
| 2,005 |
Less litigation and conduct costs |
| (118) |
| (101) |
| (74) |
| (44) |
| (77) |
Other operating expenses |
| 3,900 |
| 3,956 |
| 1,965 |
| 1,935 |
| 1,928 |
| | | | | | | | | | |
Total income |
| 7,985 |
| 7,134 |
| 4,005 |
| 3,980 |
| 3,659 |
| | | | | | | | | | |
Cost:income ratio |
| 50.3% |
| 56.9% |
| 50.9% |
| 49.7% |
| 54.8% |
Cost:income ratio (excl. litigation and conduct) |
| 48.8% |
| 55.5% |
| 49.1% |
| 48.6% |
| 52.7% |
| |
NatWest Group – Form 6-K Interim Results 2025 | 120 |
Table of Contents
Non-IFRS financial measures continued
3. Tangible net asset value (TNAV) per ordinary share
| | | | | | |
| | As at | ||||
| | 30 June | | 31 March | | 31 December |
| | 2025 | | 2025 | | 2024 |
Ordinary shareholders' interests (£m) |
| 35,929 |
| 35,562 |
| 34,070 |
Less intangible assets (£m) |
| (7,513) |
| (7,537) |
| (7,588) |
Tangible equity (£m) |
| 28,416 |
| 28,025 |
| 26,482 |
| | | | | | |
Ordinary shares in issue (millions) (1) |
| 8,088 |
| 8,067 |
| 8,043 |
| | | | | | |
NAV per ordinary share (pence) |
| 444p |
| 441p |
| 424p |
TNAV per ordinary share (pence) |
| 351p |
| 347p |
| 329p |
(1)The number of ordinary shares in issue excludes own shares held.
4. Operating expenses excluding litigation and conduct
| | | | | | | | | | |
| | 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 |
Other operating expenses |
| | | | | | | | | |
Staff expenses |
| 2,099 |
| 2,112 |
| 1,044 |
| 1,055 |
| 1,064 |
Premises and equipment | | 587 | | 579 | | 293 | | 294 | | 286 |
Other administrative expenses | | 657 | | 757 | | 337 | | 320 | | 343 |
Depreciation and amortisation | | 557 | | 508 | | 291 | | 266 | | 235 |
Total other operating expenses | | 3,900 | | 3,956 | | 1,965 | | 1,935 | | 1,928 |
| | | | | | | | | | |
Litigation and conduct costs | | | | | | | | | | |
Staff expenses | | 30 | | 35 | | 16 | | 14 | | 21 |
Other administrative expenses | | 88 | | 66 | | 58 | | 30 | | 56 |
Total litigation and conduct costs | | 118 | | 101 | | 74 | | 44 | | 77 |
|
| |
| |
| |
| |
| |
Total operating expenses |
| 4,018 |
| 4,057 |
| 2,039 |
| 1,979 |
| 2,005 |
Total operating expenses excluding litigation and conduct |
| 3,900 |
| 3,956 |
| 1,965 |
| 1,935 |
| 1,928 |
| |
NatWest Group – Form 6-K Interim Results 2025 | 121 |
Table of Contents
Non-IFRS financial measures continued
5. Loan:deposit ratio (excl. repos and reverse repos)
| | | | | | |
| | As at | ||||
| | 30 June | | 31 March | | 31 December |
| | 2025 | | 2025 | | 2024 |
| | £m | | £m | | £m |
Loans to customers - amortised cost |
| 407,135 |
| 398,806 |
| 400,326 |
Less reverse repos |
| (30,400) |
| (30,258) |
| (34,846) |
Loans to customers - amortised cost (excl. reverse repos) |
| 376,735 |
| 368,548 |
| 365,480 |
Customer deposits |
| 436,756 |
| 434,617 |
| 433,490 |
Less repos |
| (988) |
| (1,070) |
| (1,363) |
Customer deposits (excl. repos) |
| 435,768 |
| 433,547 |
| 432,127 |
Loan:deposit ratio (%) |
| 93% |
| 92% | | 92% |
Loan:deposit ratio (excl. repos and reverse repos) (%) |
| 86% |
| 85% | | 85% |
6. Total combined assets and liabilities (CAL) – Private Banking & Wealth Management
| | | | | | |
| | 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 and administration (AUMA) |
| 51.8 |
| 48.5 |
| 48.9 |
Less investment cash included in both customer deposits and AUMA |
| (1.3) |
| (1.2) |
| (1.1) |
Total combined assets and liabilities (CAL) |
| 110.4 |
| 106.9 |
| 108.4 |
7. NatWest Group Return on Tangible Equity
| | | | | | | | | | |
| | Half year ended and as at | | Quarter ended and as at | ||||||
|
| 30 June |
| 30 June |
| 30 June |
| 31 March |
| 30 June |
| | 2025 | | 2024 | | 2025 | | 2025 | | 2024 |
| | £m | | £m | | £m | | £m | | £m |
Profit attributable to ordinary shareholders |
| 2,488 |
| 2,099 |
| 1,236 |
| 1,252 |
| 1,181 |
Annualised profit attributable to ordinary shareholders |
| 4,976 |
| 4,198 |
| 4,944 |
| 5,008 |
| 4,724 |
| | | | | | | | | | |
Average total equity |
| 40,817 |
| 37,535 |
| 41,474 |
| 40,354 |
| 37,659 |
Adjustment for average other owners' equity and intangible assets |
| (13,336) |
| (11,909) |
| (13,529) |
| (13,228) |
| (12,080) |
Adjusted total tangible equity |
| 27,481 |
| 25,626 |
| 27,945 |
| 27,126 |
| 25,579 |
Return on equity | | 12.2% | | 11.2% | | 11.9% | | 12.4% | | 12.5% |
Return on Tangible Equity |
| 18.1% | | 16.4% | | 17.7% | | 18.5% | | 18.5% |
| |
NatWest Group – Form 6-K Interim Results 2025 | 122 |
Table of Contents
Non-IFRS financial measures continued
8. Segmental return on equity
| | | | | | | | | | | | |
| | Half year ended 30 June 2025 | | Half year ended 30 June 2024 | ||||||||
| | | | Private Banking | | | | | | Private Banking | | |
|
| Retail |
| & Wealth |
| Commercial |
| Retail | | & Wealth | | Commercial |
| | Banking | | Management | | & Institutional |
| Banking | | Management | | & Institutional |
Operating profit (£m) |
| 1,485 | | 179 | | 1,984 | | 1,098 | | 99 | | 1,707 |
Paid-in equity cost allocation (£m) |
| (49) | | (8) | | (129) | | (34) | | (8) | | (83) |
Adjustment for tax (£m) |
| (402) | | (48) | | (464) | | (298) | | (25) | | (406) |
Adjusted attributable profit (£m) |
| 1,034 | | 123 | | 1,391 | | 766 | | 66 | | 1,218 |
Annualised adjusted attributable profit (£m) |
| 2,068 | | 246 | | 2,783 | | 1,532 | | 131 | | 2,436 |
Average RWAe (£bn) |
| 67.9 | | 11.2 | | 107.5 | | 62.2 | | 11.1 | | 109.0 |
Equity factor |
| 12.8% | | 11.1% | | 13.9% | | 13.4% | | 11.2% | | 13.8% |
Average notional equity (£bn) |
| 8.7 | | 1.2 | | 14.9 | | 8.3 | | 1.2 | | 15.0 |
Return on equity (%) |
| 23.8% | | 19.8% | | 18.6% | | 18.4% | | 10.5% | | 16.2% |
| | | | | | | | | | | | | | | | | | |
| | Quarter ended 30 June 2025 | | Quarter ended 31 March 2025 | | Quarter ended 30 June 2024 | ||||||||||||
| | | | Private Banking | | | | | | Private Banking | | | | | | Private Banking | | |
|
| Retail |
| & Wealth |
| Commercial |
| Retail | | & Wealth | | Commercial | | Retail | | & Wealth | | Commercial |
| | Banking | | Management | | & Institutional |
| Banking | | Management | | & Institutional | | Banking | | Management | | & Institutional |
Operating profit (£m) |
| 735 | | 102 | | 964 | | 750 | | 77 | | 1,020 | | 609 | | 66 | | 938 |
Paid-in equity cost allocation (£m) |
| (26) | | (4) | | (66) | | (23) | | (4) | | (63) | | (18) | | (4) | | (43) |
Adjustment for tax (£m) |
| (199) | | (27) | | (225) | | (204) | | (20) | | (239) | | (165) | | (17) | | (224) |
Adjusted attributable profit (£m) |
| 510 | | 71 | | 673 | | 523 | | 53 | | 718 | | 426 | | 45 | | 671 |
Annualised adjusted attributable profit (£m) |
| 2,042 | | 282 | | 2,694 | | 2,092 | | 212 | | 2,872 | | 1,702 | | 179 | | 2,685 |
Average RWAe (£bn) |
| 68.9 | | 11.3 | | 108.3 | | 66.9 | | 11.1 | | 106.8 | | 62.7 | | 11.1 | | 109.0 |
Equity factor |
| 12.8% | | 11.1% | | 13.9% | | 12.8% | | 11.1% | | 13.9% | | 13.4% | | 11.2% | | 13.8% |
Average notional equity (£bn) |
| 8.8 | | 1.3 | | 15.1 | | 8.6 | | 1.2 | | 14.8 | | 8.4 | | 1.2 | | 15.0 |
Return on equity (%) |
| 23.2% | | 22.5% | | 17.9% | | 24.5% | | 17.1% | | 19.3% | | 20.3% | | 14.4% | | 17.8% |
| |
NatWest Group – Form 6-K Interim Results 2025 | 123 |
Table of Contents
Performance measures not defined under IFRS
The table below summarises other performance measures used by NatWest Group, not defined under IFRS, and therefore a reconciliation to the nearest IFRS measure is not applicable.
Measure | Description |
AUMA | AUMA comprises both assets under management (AUM) and assets under administration (AUA) serviced through the Private Banking & Wealth Management segment. AUM comprise assets where the investment management is undertaken by Private Banking & Wealth Management on behalf of Private Banking & Wealth Management, Retail Banking and Commercial & Institutional customers. AUA comprise i) third party assets held on an execution-only basis in custody by Private Banking & Wealth Management, Retail Banking and Commercial & Institutional for their customers, for which the execution services are supported by Private Banking & Wealth Management ii) AUA of Cushon, acquired on 1 June 2023, which are supported by Private Banking & Wealth Management and held and managed by third parties. This measure is tracked and reported as the amount of funds that we manage or administer, and directly impacts the level of investment income that we receive. |
AUMA income | AUMA income includes investment income which reflects an ongoing fee as percentage of assets and transactional income related to investment services comprised of one-off fees for advice services, trading and exchange services, protection and alternative investing services. AUMA is a core driver of non-interest income, especially with respect to ongoing investment income and this measure provides a means of reporting the income earned on AUMA. |
AUMA net flows | AUMA net flows represents assets under management (AUM net flows) and assets under administration (AUA net flows). AUMA net flows is reported and tracked to monitor the business performance of new business inflows and management of existing client withdrawals across Private Banking & Wealth Management, Retail Banking and Commercial & Institutional. |
Capital generation pre-distributions | Capital generation pre-distributions refers to the change in the CET1 ratio in the period, before distributions to ordinary shareholders. It reflects the capital generated through business activities and all other movements, including attributable profit for the period, impacts from acquisitions and disposals, and risk-weighted asset (RWA) changes, prior to the deduction of ordinary shareholder distributions such as ordinary dividends and share buybacks. It is used to show the capital generated in the period that is available for deployment in the business and distribution to shareholders. |
Climate and sustainable funding and financing | The climate and sustainable funding and financing metric is used by NatWest Group to measure the level of support it provides customers, through lending products and underwriting activities, to help in their transition towards a net zero, climate resilient and sustainable economy. 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 residential properties between 1 January 2023 and the end of 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. |
Loan impairment rate | Loan impairment rate is the annualised loan impairment charge divided by gross customer loans. This measure is used to assess the credit quality of the loan book. |
Third party rates | Third party customer asset rate is calculated as annualised interest receivable on third-party loans to customers as a percentage of third-party loans to customers. This excludes assets of disposal groups, intragroup items, loans to banks and liquid asset portfolios. Third party customer funding rate reflects interest payable or receivable on third-party customer deposits, including interest bearing and non- interest bearing customer deposits. Intragroup items, bank deposits, debt securities in issue and subordinated liabilities are excluded for customer funding rate calculation. |
Wholesale funding | Wholesale funding comprises deposits by banks (excluding repos), debt securities in issue and subordinated liabilities. Funding risk is the risk of not maintaining a diversified, stable and cost-effective funding base. The disclosure of wholesale funding highlights the extent of our diversification and how we mitigate funding risk. |
Legal Entity Identifier: 2138005O9XJIJN4JPN90
| |
NatWest Group – Form 6-K Interim Results 2025 | 124 |
Table of Contents
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 authorised.
NatWest Group plc
Registrant
| |
/s/ Katie Murray | |
Group Chief Financial Officer | |
25 July 2025 | |
FAQ
What insider transaction did IDCC file on Form 4?
Did the director pay anything for the newly acquired shares?
What is Aberle’s total IDCC share ownership after the transaction?
Does this Form 4 suggest bullish or bearish insider sentiment for IDCC?
