NatWest Group (NWG) stays above capital hurdles in 2025 BoE stress test

Rhea-AI Filing Summary

NatWest Group plc reported the Bank of England’s 2025 stress test results, which assess whether the bank could withstand a severe but plausible economic downturn starting from its 31 December 2024 balance sheet. In the modelled scenario, the Group’s low point Common Equity Tier 1 (CET1) ratio would have been 11.1% compared with an actual 13.6% at December 2024, and its low point Tier 1 leverage ratio would have been 4.7% compared with an actual 5.0% at December 2024.

Both stressed ratios remained significantly above the Bank of England’s stress minimum requirements, meaning no strategic management actions would have been required to preserve capital. NatWest’s Chief Financial Officer, Katie Murray, said the exercise underlines the strength of the Group’s balance sheet and its ability to keep generating value and distributions for shareholders while continuing to support customers and the wider economy even under severe stress.

Insights

Bank capital and regulation analyst

BoE stress test shows NatWest staying well above capital and leverage hurdles.

The Bank of England’s 2025 stress test models a severe downturn and tracks how NatWest Group’s capital would behave relative to regulatory minima. In this scenario, the low point Common Equity Tier 1 (CET1) ratio is 11.1% versus an actual 13.6% at December 2024, and the low point Tier 1 leverage ratio is 4.7% versus an actual 5.0% at the same date.

Both stressed ratios remain “significantly ahead” of the stress minimum requirement, and the results indicate that no strategic management actions would have been required to protect capital. That suggests the starting capital position and the bank’s risk profile provide a sizeable buffer under the severe-but-plausible scenario used by the Bank of England.

The CFO highlights that capital strength has improved since the 2022/23 stress test and links this to the Group’s capacity to sustain shareholder distributions while supporting customers and the broader economy. Future regulatory disclosures and stress test rounds will show whether NatWest maintains or further strengthens these buffers as economic and regulatory conditions evolve.

FAQ

What did the 2025 Bank of England stress test show for NatWest Group (NWG)?

The test showed that NatWest Group would maintain capital and leverage ratios significantly above the Bank of England’s stress minimum requirements under a severe but plausible scenario.

What was NatWest Group’s stressed CET1 ratio in the 2025 BoE stress test?

Under the 2025 stress scenario, NatWest Group’s low point CET1 ratio would have been 11.1%, compared with an actual 13.6% at December 2024.

How did NatWest Group’s Tier 1 leverage ratio perform in the stress test?

The Group’s low point Tier 1 leverage ratio in the scenario was 4.7%, versus an actual 5.0% at December 2024, remaining well above the stress minimum requirement.

Did NatWest Group need strategic management actions to pass the 2025 stress test?

No. The results indicate that both the stressed CET1 and Tier 1 leverage ratios stayed sufficiently above the stress minimum requirement, so no strategic management actions would have been required.

How did NatWest’s management interpret the 2025 stress test results?

CFO Katie Murray said the exercise highlights the strength of NatWest Group’s balance sheet, supporting sustainable value creation, strong shareholder distributions and the ability to support customers and the wider economy even in a severe stress scenario.

What starting point did the Bank of England use for NatWest’s 2025 stress test scenario?

The scenario began from NatWest Group’s balance sheet as at 31 December 2024, and then assessed capital and leverage ratios through a severe but plausible stress.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 12/02/2025 - 08:23 AM Learn about SEC filing dates

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

December, 2025

Commission File Number 001-10306

NatWest Group plc

250 Bishopsgate,

London, EC2M 4AA

United Kingdom

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

The following information was issued as Company announcements in London, England and is furnished pursuant to General Instruction B to the General Instructions to Form 6-K:

NatWest Group plc

2 December 2025

NatWest Group plc

2025 Bank of England stress test results

2 December 2025

NatWest Group ("the Group") notes the announcement made today by the Bank of England ("BoE") regarding the results of its 2025 stress test. The test explores whether the Group has sufficient capital to withstand a severe but plausible scenario starting with the Group's balance sheet as at 31st December 2024, and compares the theoretical Common Equity Tier 1 ("CET1") ratio and Tier 1 leverage ratio positions of the Group before and after the impact of strategic management actions.

Under this scenario, the Group's low point CET1 ratio would have been 11.1% (December 2024 actual: 13.6%), and the Group's low point Tier 1 leverage ratio would have been 4.7% (December 2024 actual: 5.0%), both significantly ahead of the stress minimum requirement, and sufficient to ensure that no strategic management actions would be required.

Commenting on the results, Katie Murray, Chief Financial Officer, said:

"This exercise has highlighted again the strength of NatWest Group's balance sheet, delivering sustainable value creation and strong distributions for shareholders.

The results also reflect the continued strengthening of our balance sheet since the 2022/23 Stress Test, underpinning our ability to support our customers and the broader economy, including under a severe stress scenario."

For further information, please contact:

Investor Relations

+44 (0) 20 7672 1758

Media Relations

+44 (0) 131 523 4205

Forward-looking statements

This announcement may include forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, such as statements with respect to NatWest Group's financial condition, results of operations and business, including its strategic priorities, financial, investment and capital targets, and climate and sustainability related targets, commitments and ambitions described herein. Statements that are not historical facts, including statements about NatWest Group's beliefs and expectations, are forward-looking statements. Words, such as 'expect', 'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'will', 'plan', 'could', 'target', 'goal', 'objective', 'may', 'outlook', 'prospects' and similar expressions or variations on these expressions are intended to identify forward-looking statements. In particular, this announcement may include forward-looking statements relating, but not limited to: NatWest Group's outlook, guidance and targets (including in relation to RoTE, total income, other operating expenses, loan impairment rate, CET1 ratio, RWA levels, payment of dividends and participation in directed buybacks), its financial position, profitability and financial performance, the implementation of its strategy, its access to adequate sources of liquidity and funding, its regulatory capital position and related requirements, its impairment losses and credit exposures under certain specified scenarios, substantial regulation and oversight, ongoing legal, regulatory and governmental actions and investigations. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, future growth initiatives (including acquisitions, joint ventures and strategic partnerships), the outcome of legal, regulatory and governmental actions and investigations, the level and extent of future impairments and write-downs, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations, general economic and political conditions and uncertainties, exposure to third party risk, operational risk, conduct risk, cyber, data and IT risk, financial crime risk, key person risk and credit rating risk and the impact of climate and sustainability related risks and the transitioning to a net zero economy. These and other factors, risks and uncertainties that may impact any forward-looking statement or NatWest Group plc's actual results are discussed in NatWest Group plc's 2024 Annual Report and Accounts on Form 20-F, NatWest Group's Interim Management Statement for Q1, H1 and Q3 2025 on Form 6-K, and its other public filings. The forward-looking statements contained in this announcement speak only as of the date of this announcement and NatWest Group plc does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise, except to the extent legally required.

Legal Entity Identifier: 2138005O9XJIJN4JPN90

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			NatWest Group plc (Registrant)
Date:	02 December 2025			By:	/s/ Mark Stevens
				Name:	Mark Stevens
				Title:	Assistant Secretary