NatWest Group (NYSE: NWG) lifts profit, dividend and sets bold 2026–28 targets
Filing Impact
Filing Sentiment
Form Type
6-K
NatWest Group reported a strong 2025, with total income of
Net interest margin increased to
The board proposes a total dividend of 32.5p per share, up 51% on 2024, and plans a
Positive
- Strong profit growth and returns: 2025 operating profit before tax rose 24.4% to £7.7bn, profit attributable to ordinary shareholders increased 21.2% to £5.5bn, and Return on Tangible Equity improved to 19.2% from 17.5%.
- Robust capital generation and shareholder payouts: CET1 ratio increased to 14.0% with capital generation pre-distributions of 252bps, supporting a 51% higher total dividend of 32.5p per share and a planned £750m share buyback in H1 2026.
Negative
- None.
Insights
NatWest delivers stronger profits, higher returns and larger capital returns while maintaining solid capital and liquidity.
NatWest Group posted operating profit before tax of
Credit quality remains sound, though impairment losses rose to
Capital generation pre-distributions of 252 basis points supported a total dividend of 32.5p per share and planned
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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
February, 2026
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.
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Form 20-F ☒
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Form 40-F ☐
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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:
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Inside this report
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Business performance summary
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2
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2025 performance summary
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3
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Group Chief Executive's
review
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7
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Performance key metrics and
ratios
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9
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Chief Financial Officer's
review
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11
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Retail Banking
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12
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Private Banking & Wealth
Management
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13
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Commercial &
Institutional
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14
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Central items & other
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15
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Segment performance
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Risk and capital management
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20
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Capital, liquidity and funding
risk
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22
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Credit risk
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22
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Main macroeconomic
variables
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23
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ECL post model adjustments
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24
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Segment analysis - portfolio
summary
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26
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Analysis of ECL provisions
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Financial statements and notes
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27
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Condensed consolidated income statement
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28
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Condensed consolidated statement of comprehensive
income
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29
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Condensed consolidated balance sheet
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30
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Condensed consolidated statement of changes in
equity
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32
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Condensed consolidated cash flow statement
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Financial statements and notes continued
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33
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Presentation of condensed consolidated financial
statements
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33
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Tax
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34
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Litigation and regulatory matters
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36
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Related party transactions
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36
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Dividends
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36
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Post balance sheet events
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Additional information
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37
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Statement of directors' responsibilities
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38
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Presentation of information
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38
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Statutory accounts
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38
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Contacts
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38
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Forward-looking statements
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Appendix
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40
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Non-IFRS financial measures
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46
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Performance measures not defined under
IFRS
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2025 performance summary
Chief Executive, Paul Thwaite, commented:
"2025 was another strong year for NatWest Group, rooted in the
support we provide to people, families and businesses in every
nation and region of the UK. We delivered broad-based growth across
our three customer businesses, and our positive impact is clear to
see; whether making home ownership a reality for more
people, helping more customers to save and invest or supporting
more businesses to scale and grow.
Our performance reflects the progress we have made against our
strategic priorities. Income of £16.4 billion and a Return on
Tangible Equity of 19.2% are significantly up on last year, and
ahead of guidance, whilst dividends
per share increased by 51% compared to 2024.
It is clear our strategy is working, and we are delivering
consistently. We are raising our ambition and sharpening
our strategic focus, with stretching new targets in place. We must
now make the most of the investment we've made to become even more
productive, build deeper customer relationships and ensure we are
the bank of choice in the areas we want to
grow.
Across NatWest Group, we are determined to succeed with our
customers as a trusted partner to them and the UK, whilst
delivering for our shareholders."
Growth in all of our customer businesses
We have delivered a strong financial performance in 2025 with
income and balance sheet growth across all of our businesses. We
have added around one million new customers in the year, both
organically and through the Sainsbury's Bank transaction,
demonstrating our broad-based support for our
customers.
●
Total income excluding notable
items(1) was
up £1.8 billion to £16.4 billion in the year supported by
deposit margin expansion, as a result of higher customer balances
and strong hedge income, increased customer lending, strong AUMA
growth and an increase in FX trading revenue. Attributable profit
was £5.5 billion with earnings per share of 68.0 pence, up 27%
on the prior year, and a Return on Tangible Equity (RoTE) of
19.2%.
●
We
are growing in ways that build and strengthen customer
relationships and improve the sustainability of our earnings. Net
loans to customers excluding central items were up by £20.7
billion in the year as we grew our Retail Banking mortgage book and
increased Commercial & Institutional balances. Customer
deposits excluding central items increased by £10.4 billion
with growth across each of the businesses, particularly in Retail
Banking savings.
●
We
continue to maintain a strong loan:deposit ratio, up 3 points in
the year to 88%, and liquidity position, with an average Liquidity
Coverage Ratio (LCR) of 147%.
●
Assets
under management and administration (AUMA) grew by 19.6% to
£58.5 billion, assisted by strong client net inflows including
more than 50,000 new to invest clients.
Simplification continues to drive efficiency
We continued to make good progress on becoming a simpler, more
agile and technology driven bank by delivering efficiencies from
our investment programmes and digitising more to deliver faster,
simpler, and safer customer journeys. We have accelerated AI and
data transformation with partnerships with Open AI, AWS and
Accenture. Our stable cost base has resulted in a cost:income ratio
(excl. litigation and conduct) improvement of 4.8%, to 48.6%, when
compared with 2024 and an FTE reduction of c.0.5k in the
year.
Active balance sheet management creates capacity for
growth
We continued to actively manage our balance sheet and risk,
delivering £10.9 billion benefits from RWA management actions
as we created capacity for growth.
Capital generation pre-distributions was 252 basis points in the
year as we increased our capital velocity.
Our Common Equity Tier 1 (CET1) ratio of 14.0% was up c.40 basis
points in the year. TNAV per share increased by 55 pence in the
year to 384 pence.
A final dividend of 23.0 pence per share is proposed, bringing the
total for the year to 32.5 pence, up 51% compared to
2024.
(1) Refer
to the Non-IFRS financial measures appendix for details of notable
items.
Group Chief Executive's review
Accelerating from a position of
strength
NatWest Group delivered another strong year in 2025, rooted in our
support for people, families and businesses in every nation and
region of the UK.
We increased our customer base by around a million customers, grew
our profit before tax to £7.7 billion, and delivered a return
on tangible equity (RoTE) of 19.2%, while strong capital generation
and distributions came from increased profitability and disciplined
balance sheet and risk management. What matters most, however, is
what sits behind these results: the trust our customers place in us
every day; the commitment of our colleagues; and our responsibility
to create sustainable value for our shareholders.
2025 also marked a symbolic milestone as we returned to full
private ownership, offering an opportunity to reflect on how far
the bank has come. Looking ahead, we have renewed confidence in
what we can achieve for NatWest Group, our shareholders, and as a
trusted partner to our customers and the wider UK
economy.
I'm proud to have led this bank over the past two years. In this
time, we've moved decisively: we've sharpened our customer focus;
simplified the organisation; accelerated our technology strategy;
and invested with intent in our future. These choices are now
translating into robust performance and clear momentum across
NatWest Group.
We start 2026 from a position of strength. That strength gives us
the confidence to raise our ambition and accelerate our progress -
so we can go further to win together with our customers,
colleagues, shareholders and the communities we are proud to serve
across the UK.
Succeeding with our
customers
Disciplined growth
All three of our customer businesses - Retail Banking, Private
Banking & Wealth Management, and Corporate & Institutional
- delivered broad-based growth in 2025, with more customers
choosing to bank with us. We now serve over 20 million people,
families and businesses across the UK - acting as a trusted partner
to help meet their ambitions.
We supported more customers to manage their money with confidence,
with deposit growth in all three business segments totalling
£10.4 billion across NatWest Group in 2025. And, with saving
and investing increasingly part of the national conversation, more
than 50,000 customers invested with us for the first time,
benefiting from the expert advice of our wealth management teams
and ease of our digital offer. This helped us to grow assets under
management and administration by 20%.
We also supported customers through key life events, such as
helping more than 200,000 new customers to buy or remortgage a home
in 2025 - up 18% on 2024 - and empowered more families to build
healthy financial habits through our youth proposition, Rooster
Money, which now serves 15 times more customers than when we
acquired it in 2021.
Our success reflects our ability to anticipate and respond to
changing customer needs, with the right services and innovative
propositions. For personal customers, our Family-Backed Mortgage
addresses the real challenge of affordability for many people and
allows family members to help first-time buyers while preserving
independent ownership. This contributed to our increased support
for first-time buyers, helping over 50,000 customers get onto the
housing ladder in 2025.
Strong organic growth was complemented by the successful
integration of around one million Sainsbury's Bank customers and
the £2.3 billion Metro Bank mortgage portfolio - demonstrating
our integration capability and, most importantly, creating the
opportunity to deepen relationships with new
customers.
As the UK's biggest bank for business, we support 1.5 million
companies, from sole-traders to multinational corporates. With a
leading share of UK start-ups, and the largest presence in the
mid-market sector, we're uniquely positioned to partner businesses
at every stage of their growth.
We helped more of our business customers to scale and grow, with
lending across Commercial & Institutional up around 10% in
2025, compared with 2024. By supporting UK businesses, we're also
helping to deliver key economic priorities for the UK. In 2025, we
were the leading lender to UK infrastructure, and we expanded our
support to social housing and sustainable finance - helping to
strengthen communities and underpin long-term growth.
In an increasingly volatile market, we've helped more businesses
manage their risk effectively by making it easier to access our
foreign exchange (FX) and international payment services through
faster onboarding and a simpler digital experience, with over 130
currencies now supported. Improvements in our offer meant around
700 mid-market businesses used the service for the first time in
2025.
We also helped more high-potential firms to grow with access to our
innovative intellectual property-backed lending. Around 50% of the
completed IP-backed loans were with customers new to NatWest Group,
demonstrating the opportunity open to us when we pair our expertise
with a distinctive customer proposition.
A Simpler Bank
Today, NatWest Group is a simpler bank. It is less complex, with
transformed capabilities and the right building blocks to scale and
adapt efficiently as customer expectations evolve.
The technology foundations across our estate have effectively been
rebuilt and this investment has increased our agility and
strengthened resilience. We have decommissioned legacy platforms
and advanced our data transformation at pace. In Private Banking
& Wealth Management, we have migrated our engineering
operations from Switzerland to the UK and India, creating the
capacity to scale. For our Commercial & Institutional
customers, the re-platforming of Bankline (our digital channel for
mid-market and corporate customers) has created a more connected
experience and allows us to provide more services digitally in one
place. Building a single trusted view of our customers, is enabling
us to offer a more personalised service, faster decision-making and
more intelligent risk management across the bank.
To drive delivery across the bank, we have rapidly scaled our
in-house engineering team and opened a new hub in Bengaluru, India.
We are now innovating faster and have almost halved the time it
takes to deploy new features, compared with 2024 - making banking
quicker, easier and safer for customers.
Strategic partnerships with global technology leaders, including
AWS, OpenAI and Google, have helped us to accelerate and scale our
technology strategy, and in turn, increase productivity. In
addition, our newly established AI Research Office is at the
forefront of cutting-edge research, leading responsible innovation
and building further AI capabilities for the bank. Our investment
in our FinTech Growth Programme has also significantly strengthened
our innovation pipeline. These initiatives give us early access to
new and emerging technologies.
By providing all colleagues with AI tools to support their daily
work, we have freed up capacity to better meet customers' immediate
needs and understand their future requirements.
A trusted partner for UK
growth
2025 was a year of macroeconomic uncertainty, with international
and domestic events affecting customers in different ways. Despite
the volatility, we remained cautiously optimistic about the outlook
with several factors reinforcing this measured optimism: the UK
economy has continued to grow; unemployment remains low by
historical standards; inflation is moving in broadly the right
direction; and, on aggregate, households and businesses continue to
hold relatively robust savings buffers.
This economic resilience was reflected in the healthy levels of
customer activity during 2025. Housing market activity remained
robust, with mortgage volume growth across the sector supported by
temporary changes to stamp duty thresholds in the first half of the
year. Retail sales volumes returned to positive
year-over-year growth after a challenging few years and
discretionary spending picked up in areas such as travel and
hospitality. Businesses continued to invest for the future, and UK
exports increased despite headwinds. Taken together, these are
encouraging signals that the underlying conditions for growth
remain
in place.
We strongly believe in the UK's long-term potential. The UK
Government has positioned the financial services sector as central
to its growth strategy and to the UK's strength on the global
stage. The UK has world-class universities and innovation clusters,
leading scientific research, deep capital markets and highly
skilled people - the potential of which can be unlocked through an
internationally competitive banking sector.
Strong economies need strong banks. But our role goes well beyond
lending: it demands our deep expertise; our convening power across
sectors and regions; and our ability to connect capital with
opportunity. I have seen the impact we can deliver for our
customers and communities across the UK. For example, start-ups
participating in our free Accelerator community grow their turnover
35% more on average than peers; and the expertise of our colleagues
is building financial confidence at scale - our NatWest Thrive and
Financial Foundations programmes reached more than one million
people in 2025, providing financial education in the places where
people live, learn and work.
In
March 2025, we brought together our first Mid-Market Growth Council
to provide a unified voice and to advocate for the often-
overlooked mid-sized business sector, helping to unlock their
significant growth potential.
Our
research found that just 1% growth in this segment could add
£35 billion to the UK economy, with £24 billion of that
outside the south-east of England.
Our
commitment to sustainable growth is rooted in our purpose, with the
aim of delivering positive impact through our core activity as a
bank. By turning our customers' possibilities into progress we can
help build better, more resilient businesses, and support people
and families to manage their money, save and invest for the
future.
The
conditions for growth will be built further by a stable and
proportionate regulatory and policy environment. The UK
Government's focus on balanced regulation which promotes
competition and growth, as well as managing risk and consumer
protection, is a welcome step forward. We have already seen
tangible change in targeted areas. For example, the adjustment to
mortgage rules enabled us to lend more to first-time buyers, and we
have committed to grow our support in 2026, with a further £10
billion of lending.
As we look ahead to 2026, further regulatory review could unlock
additional customer benefits and UK growth opportunities; for
example, the ongoing Advice Guidance Boundary Review should help to
make financial advice more accessible, and the Prudential
Regulation Authority's review of its rules on ring-fencing has the
potential to create greater capital capacity for the banking sector
to support growth.
Raising our
ambition
Our progress has been significant, and it is clear our strategy is
working for both our customers and our shareholders. But success
today does not guarantee success tomorrow.
Our sector is evolving at pace, with customer expectations
increasing, technology redefining what 'best in class' looks like,
and competition more intense than ever. Against this backdrop, we
are sharpening our strategic focus around disciplined growth,
leveraging simplification, and active balance sheet and risk
management to drive sustainable value creation.
It is our consistent delivery and the inherent strengths of this
bank that give us confidence we can go further and faster in this
next phase. Our conviction stems from the enduring strength of our
customer relationships and is built on our key differentiators.
Deep community roots, expert colleagues, and a UK-wide relationship
manager network mean we are connected to our customers in their
communities. These strengths, underpinned by leading technology and
the scale of our customer insight, give us real competitive
advantage.
Customer growth comes from being first choice in the moments that
matter: helping families with everyday banking and home ownership;
supporting affluent and high-net worth customers to manage and grow
their wealth; and backing high-growth businesses, whether they are
start-ups or those with global ambitions.
Our recently announced acquisition of Evelyn Partners will create
the UK's leading private bank and wealth management business. Not
only does this build scale and strength in our third customer
business, but it will transform the services our customers across
NatWest Group can expect from us. Evelyn Partners brings leading
investment capabilities, a quality direct-to-customer investment
platform in Bestinvest - and the biggest in-house team of financial
planners in the UK, as well as a strong regional footprint -
helping us to better support and serve customers through each stage
of their financial lives.
We're also building and deepening our customer relationships with
more personalised, relevant experiences, propositions and
partnerships. For example, our specialist Venture Banking support
has been carefully designed to help boost the UK's innovation
economy and our newly announced strategic partnership with
Rightmove will help ensure we're there at the right time, as a
trusted partner when customers are making key financial
decisions.
Leveraging Simplification
The next phase of our simplification sees us move from 'build' to
'benefits', leveraging the investment we've made in our
infrastructure and capabilities to deliver customer growth and even
greater productivity.
In a highly competitive environment, future strength will be
decided by how seamlessly a bank operates in service of its
customers. Harnessed correctly, technological advancement and AI
can be a game-changing accelerant, reducing complexity and removing
bureaucracy to help make decisions faster, deepen relationships and
deliver transformed customer experiences.
Trust, however, remains the keystone of banking. As technology
accelerates, we are focused on keeping customers safe, protecting
them from new and emerging risks, and leading in the responsible
and ethical use of data and AI.
To realise our ambition, it's essential we drive active balance
sheet and risk management. We are bringing more dynamism to how we
manage pricing, capital and risk, ensuring we remain resilient
through cycles - a safe, secure and dependable partner for
customers, while sustaining attractive returns.
Customer success
We want to be known not only for the quality of our service and the
strength of our technology platforms, but also for the depth of our
relationships and expertise of our people. As trusted partners, we
are empowering our front-line colleagues to use their insights to
make the right decisions for customers and orientating the whole
organisation around our customers' needs: measuring all colleagues'
success by the quality of our customers' experiences.
The stretching targets we have set for growth, productivity and
returns reflect our belief that in pursuing these priorities we
will create sustainable shareholder value. For customers, the prize
is a bank that feels effortless, with connected, intelligent and
personalised services available whenever and however they
choose.
Looking ahead
Our progress and strengthened position are thanks to the hard work
and dedication of our colleagues across the UK and
internationally.
While we have momentum across NatWest Group, there is no room for
complacency. Banking moves quickly, and customer expectations move
faster still.
We've built the foundations and capabilities to both anticipate
change and respond at pace. All this is done in service of our
customers, deepening trust and relationships. We can further
accelerate our growth potential using the full strength of NatWest
Group - using the expertise and connections across our three
businesses to build even stronger customer relationships, deliver
sustainable returns and make a meaningful contribution to the UK
economy.
Outlook(1)
Based on our current macroeconomic assumptions,
In 2026(2) we
expect:
●
Total
income excluding notable items in the range of £17.2-17.6
billion.
●
Operating
expenses, excluding litigation and conduct costs, around £8.2
billion.
●
Loan
impairment rate below 25 basis points.
●
Return
on Tangible Equity greater than 17%.
●
Capital
generation pre-distributions around 200 basis points.
In 2028 we expect:
●
Customer assets and liabilities(3) to
grow at a compound annual rate of greater than 4% from the end 2025
to end 2028.
●
Cost:income
ratio, excluding litigation and conduct costs, below
45%.
●
Return
on Tangible Equity greater than 18%.
●
Capital
generation pre-distributions of greater than 200 basis
points.
Capital:
●
We
now target a CET1 ratio of around 13.0%.
●
We
continue to expect to pay ordinary dividends of around 50% of
attributable profit and will consider buybacks as
appropriate.
●
We
expect Basel 3.1 to increase RWAs by around £10 billion on 1
January 2027.
(1)
The guidance, targets, expectations, and trends discussed in
this section represent NatWest Group plc management's current
expectations and are subject to change, including as a result of
the factors described in the NatWest Group plc Risk Factors section
in the 2025 Annual Report and Accounts and Form 20-F. These
statements constitute forward-looking statements. Refer to
Forward-looking statements in this announcement.
(2)
Excludes the impact of the Evelyn Partners
acquisition.
(3)
Customer assets and liabilities (CAL) includes customer
deposits, gross loans to customers and AUMA across three businesses
Retail Banking, Private Banking & Wealth Management, and
Commercial & Institutional. Investment cash is deducted as it
is reported within customer deposits and AUMA.
Business performance summary
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Year ended
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Quarter ended
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31 December
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31 December
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31 December
|
30 September
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31 December
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2025
|
2024
|
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|
2025
|
2025
|
|
2024
|
|
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Summary consolidated income statement
|
£m
|
£m
|
Variance
|
|
£m
|
£m
|
Variance
|
£m
|
Variance
|
|
Net interest income
|
12,829
|
11,275
|
13.8%
|
|
3,441
|
3,268
|
5.3%
|
2,968
|
15.9%
|
|
Non-interest income
|
3,812
|
3,428
|
11.2%
|
|
883
|
1,064
|
(17.0%)
|
857
|
3.0%
|
|
Total income
|
16,641
|
14,703
|
13.2%
|
|
4,324
|
4,332
|
(0.2%)
|
3,825
|
13.0%
|
|
Litigation and conduct costs
|
(167)
|
(295)
|
(43.4%)
|
|
(37)
|
(12)
|
nm
|
(153)
|
(75.8%)
|
|
Other operating expenses
|
(8,095)
|
(7,854)
|
3.1%
|
|
(2,211)
|
(1,984)
|
11.4%
|
(2,114)
|
4.6%
|
|
Operating expenses
|
(8,262)
|
(8,149)
|
1.4%
|
|
(2,248)
|
(1,996)
|
12.6%
|
(2,267)
|
(0.8%)
|
|
Profit before impairment losses
|
8,379
|
6,554
|
27.8%
|
|
2,076
|
2,336
|
(11.1%)
|
1,558
|
33.2%
|
|
Impairment losses
|
(671)
|
(359)
|
86.9%
|
|
(136)
|
(153)
|
(11.1%)
|
(66)
|
106.1%
|
|
Operating profit before tax
|
7,708
|
6,195
|
24.4%
|
|
1,940
|
2,183
|
(11.1%)
|
1,492
|
30.0%
|
|
Tax charge
|
(1,874)
|
(1,465)
|
27.9%
|
|
(462)
|
(502)
|
(8.0%)
|
(233)
|
98.3%
|
|
Profit from continuing operations
|
5,834
|
4,730
|
23.3%
|
|
1,478
|
1,681
|
(12.1%)
|
1,259
|
17.4%
|
|
Profit from discontinued operations, net of tax
|
-
|
81
|
(100.0%)
|
|
-
|
-
|
-
|
69
|
(100.0%)
|
|
Profit for the period
|
5,834
|
4,811
|
21.3%
|
|
1,478
|
1,681
|
(12.1%)
|
1,328
|
11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance key metrics and ratios
|
|
|
|
|
|
|
|
||
|
Notable items within total income (1)
|
£241m
|
£55m
|
nm
|
|
£52m
|
£166m
|
(68.7%)
|
(£47m)
|
nm
|
|
Total income excluding notable items (1)
|
£16,400m
|
£14,648m
|
12.0%
|
|
£4,272m
|
£4,166m
|
2.5%
|
£3,872m
|
10.3%
|
|
Net interest margin (1)
|
2.34%
|
2.13%
|
21bps
|
|
2.45%
|
2.37%
|
8bps
|
2.19%
|
26bps
|
|
Average interest earning assets (1)
|
£547bn
|
£529bn
|
3.4%
|
|
£557bn
|
£548bn
|
1.6%
|
£539bn
|
3.3%
|
|
Cost:income ratio (excl. litigation and conduct) (1)
|
48.6%
|
53.4%
|
(4.8%)
|
|
51.1%
|
45.8%
|
5.3%
|
55.3%
|
(4.2%)
|
|
Loan impairment rate (1)
|
16bps
|
9bps
|
7bps
|
|
13bps
|
15bps
|
(2bps)
|
7bps
|
6bps
|
|
Profit attributable to ordinary shareholders
|
£5,479m
|
£4,519m
|
21.2%
|
|
£1,393m
|
£1,598m
|
(12.8%)
|
£1,248m
|
11.6%
|
|
Total earnings per share attributable to ordinary shareholders -
basic
|
68.0p
|
53.5p
|
14.5p
|
|
17.4p
|
19.8p
|
(2.4p)
|
15.3p
|
2.1p
|
|
Return on Tangible Equity (RoTE) (1)
|
19.2%
|
17.5%
|
1.7%
|
|
18.3%
|
22.3%
|
(4.0%)
|
19.0%
|
(0.7%)
|
|
Climate and transition finance (2)
|
£19,026m
|
na
|
na
|
|
£11,451m
|
£7,569m
|
51.3%
|
na
|
na
|
nm = not meaningful, na = not applicable.
For the footnotes to this table refer to the following
page.
Business performance summary continued
|
|
|
|
|
|
As at
|
||||
|
|
31 December
|
30 September
|
|
31 December
|
|
||||
|
|
2025
|
2025
|
|
2024
|
|
||||
|
Balance sheet
|
|
|
|
|
£bn
|
£bn
|
Variance
|
£bn
|
Variance
|
|
Total assets
|
|
|
|
|
714.6
|
725.6
|
(1.5%)
|
708.0
|
0.9%
|
|
Loans to customers - amortised cost
|
|
|
|
|
418.9
|
415.3
|
0.9%
|
400.3
|
4.6%
|
|
Loans to customers excluding central items (1,3)
|
|
|
|
|
389.2
|
384.5
|
1.2%
|
368.5
|
5.6%
|
|
Loans to customers and banks - amortised cost and
FVOCI
|
|
|
|
|
429.9
|
427.3
|
0.6%
|
410.2
|
4.8%
|
|
Total impairment provisions (4)
|
|
|
|
|
3.6
|
3.7
|
(2.7%)
|
3.4
|
5.9%
|
|
Expected credit loss (ECL) coverage ratio
|
|
|
|
|
0.83%
|
0.87%
|
(4bps)
|
0.83%
|
-
|
|
Assets under management and administration
(AUMA) (1)
|
|
|
|
|
58.5
|
56.0
|
4.5%
|
48.9
|
19.6%
|
|
Customer deposits
|
|
|
|
|
443.0
|
435.5
|
1.7%
|
433.5
|
2.2%
|
|
Customer deposits excluding central items (1,3)
|
|
|
|
|
441.7
|
434.7
|
1.6%
|
431.3
|
2.4%
|
|
Customer assets and liabilities (CAL) (1)
|
|
|
|
|
891.7
|
877.6
|
1.6%
|
850.9
|
4.8%
|
|
Liquidity and funding
|
|
|
|
|
|
|
|
|
|
|
Average Liquidity Coverage Ratio (LCR) (5)
|
|
|
|
|
147%
|
148%
|
(1%)
|
151%
|
(4%)
|
|
Liquidity portfolio
|
|
|
|
|
238
|
239
|
(0.4%)
|
222
|
7.2%
|
|
Average Net Stable Funding Ratio (NSFR) (5)
|
|
|
|
|
135%
|
135%
|
-
|
137%
|
(2%)
|
|
Loan:deposit ratio (excl. repos and reverse
repos) (1)
|
|
|
|
|
88%
|
88%
|
-
|
85%
|
3%
|
|
Total wholesale funding
|
|
|
|
|
88
|
93
|
(5.4%)
|
86
|
2.3%
|
|
Short-term wholesale funding
|
|
|
|
|
28
|
37
|
(24.3%)
|
33
|
(15.2%)
|
|
Capital and leverage
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 (CET1) ratio (6)
|
|
|
|
|
14.0%
|
14.2%
|
(20bps)
|
13.6%
|
40bps
|
|
Total capital ratio (5)
|
|
|
|
|
19.3%
|
20.2%
|
(90bps)
|
19.7%
|
(40bps)
|
|
Pro forma CET1 ratio (excl. foreseeable items) (7)
|
|
|
|
|
15.4%
|
15.1%
|
30bps
|
14.3%
|
110bps
|
|
Risk-weighted assets (RWAs)
|
|
|
|
|
193.3
|
189.1
|
2.2%
|
183.2
|
5.5%
|
|
UK leverage ratio
|
|
|
|
|
4.8%
|
5.0%
|
(0.2%)
|
5.0%
|
(0.2%)
|
|
Tangible net asset value (TNAV) per ordinary
share (1,8)
|
|
|
|
|
384p
|
362p
|
22p
|
329p
|
55p
|
|
Number of ordinary shares in issue (millions) (8)
|
|
|
|
|
7,995
|
8,031
|
(0.4%)
|
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) Climate
and transition finance represents only a relatively small
proportion of our overall financing and facilitation activities.
For further details refer to the NatWest Group plc 2025 Climate
Transition Plan Report.
(3) Central
items includes treasury repo activity.
(4) Includes
£0.1 billion relating to off-balance sheet exposures (30
September 2025 - £0.1 billion; 31 December 2024 - £0.1
billion).
(5) Reported
on an average basis in line with supervisory guidelines. The LCR is
calculated as the average of the preceding 12 months. The NSFR is
calculated as the average of the preceding four
quarters.
(6) Refer
to the Capital, liquidity and funding risk section for details of
the basis of preparation.
(7) The
pro forma CET1 ratio at 31 December 2025 excludes foreseeable items
of £2,758 million: £1,837 million for ordinary dividends
and £921 million foreseeable charges (30 September 2025
excludes foreseeable items of £1,721 million: £1,275
million for ordinary dividends and £446 million foreseeable
charges; 31 December 2024 excludes foreseeable items of £1,249
million for ordinary dividends).
(8)
The number of ordinary shares in issue excludes own shares
held.
Chief Financial Officer's review
We delivered a strong performance in 2025 with total income
excluding notable items of £16.4 billion exceeding our
strengthened Q3 2025 guidance. We remained focussed on cost
discipline, achieving our cost target of around £8.1 billion
with further progress made on simplification, resulting in a
cost:income ratio (excl. litigation and conduct) of 48.6% for 2025
compared with 53.4% in the prior year. As a result, we achieved a
RoTE of 19.2%.
The balance sheet has continued to grow over 2025, with lending
growth of £20.7 billion excluding central items and growth of
£10.4 billion in customer deposits excluding central items.
Our liquidity position remains robust with an average LCR of
147%.
Our CET1 ratio for 2025 was 14.0% as we actively managed the
balance sheet, delivering RWA management actions of £10.9
billion over the year which created continued capacity for growth.
RWAs ended the year within our guided range at £193.3 billion.
A final dividend of 23.0 pence per share is proposed, bringing the
total for the year to 32.5 pence, up 51% compared to 2024, and we
intend to commence a share buyback programme of £750 million
in the first half of 2026, taking total distributions deducted from
capital in the year to £4.1 billion.
Strong 2025 financial performance across growth and
simplification
We are growing in ways that build and strengthen customer
relationships and improve the sustainability of our
earnings
●
Total income of £16.6 billion increased by
13.2% compared with 2024. Total income excluding notable items was
£1.8 billion higher than 2024 reflecting deposit margin
expansion, as a result of higher customer balances and strong hedge
income, increased customer lending, strong AUMA growth and an
increase in FX trading revenue. Full year 2025 net interest margin
(NIM) increased by 21 basis points in the year to 2.34% and Q4 2025
NIM of 2.45% was 8 basis points higher in the quarter. We would
expect total structural hedge income to increase by around
£1.5 billion in 2026 compared with 2025 and by a further
£1 billion in 2027.(1)
●
We continued to support our customers as net loans
to customers excluding central items increased by £20.7
billion in the year. Retail Banking mortgage balances increased by
£5.1 billion and Commercial & Institutional balances were
up by £12.3 billion due to growth in Corporate &
Institutions and Commercial Mid-market. In the quarter, net loans
to customers excluding central items increased by £4.7 billion
principally driven by growth in Corporate & Institutions and
broad-based growth across Commercial
Mid-market.
●
Customer
deposits excluding central items increased £10.4 billion
during 2025 to £441.7 billion primarily reflecting £7.8
billion growth in Retail Banking, across Savings and Current
accounts, and Commercial & Institutional increased by £2.3
billion largely due to higher balances within Corporate &
Institutions and Business Banking. Customer deposits excluding
central items increased £7.0 billion in Q4 2025 primarily due
to growth in savings balances across Retail Banking and Private
Banking & Wealth Management. Total business term balances
increased to 17% in Q4 2025 compared to 16% of the book at the end
of 2024.
●
AUMA
of £58.5 billion increased by £9.6 billion in 2025,
reflecting AUM net flows of £3.1 billion, AUA net flows of
£0.9 billion, Cushon net flows of £0.6 billion and
positive market movements of £5.0 billion.
We
continued to make good progress on becoming a simpler, more agile
and technology driven bank by delivering efficiencies from our
investment programmes, digitising more to deliver faster, simpler,
and safer customer journeys and accelerating AI and data
transformation
●
Total
operating expenses were £113 million higher than 2024. Other
operating expenses were £241 million, or 3.1%, higher and in
line with our guidance, which included c.£0.1 billion for
integration costs following the acquisition of balances from
Sainsbury's Bank. In the year we recognised higher costs of
transformation, investment in our people resulted in increased
reward through pay and bonus while we also combatted other
inflationary pressures. Partially offsetting this we have continued
to drive underlying cost savings (delivered through branch
transformation and digitisation), further cost reductions as a
result of the phased withdrawal from the Republic of Ireland, lower
restructuring costs and reduced Bank levies. In the quarter, a
£227 million increase, compared with Q3 2025, largely reflects
higher property exit costs, other seasonal costs and the annual
Bank levy.
We continue to proactively manage risk
●
A
net impairment charge of £671 million, or 16 basis points of
gross customer loans, included a charge on the acquisition of
balances from Sainsbury's Bank, higher Stage 3 charges and lower
good book releases than the prior year.
●
Compared
with 2024, our ECL provision increased £0.2 billion to
£3.6 billion and our ECL coverage ratio remained stable at
0.83%. We retain post model adjustments of £296 million and
remain comfortable with the strong credit performance of our
diversified prime loan book.
(1)
The guidance, targets, expectations, and trends discussed in
this section represent NatWest Group plc management's current
expectations and are subject to change, including as a result of
the factors described in the NatWest Group plc Risk Factors section
in the 2025 Annual Report and Accounts and Form 20-F. These
statements constitute forward-looking statements. Refer to
Forward-looking statements in this announcement.
Chief Financial Officer's review continued
Active balance sheet management supporting robust liquidity
levels
●
RWAs
increased by £10.1 billion during 2025 to £193.3 billion
principally reflecting franchise lending growth of £10.9
billion, operational risk of £3.8 billion, including an
acceleration of c.£1.6 billion from Q1 2026 to align with
market practice, £1.3 billion in relation to the balances
acquired from Sainsbury's Bank and an increase of £7.3 billion
relating to CRD IV models partially offset by a further £10.9
billion benefit from RWA management actions as we continued to
actively manage our balance sheet and create capacity for lending
growth.
●
The
average LCR of 147%, representing £50.5 billion headroom above
100% minimum requirement, decreased by 4 percentage points during
the year, primarily driven by increased lending partially offset by
deposit growth. Our primary liquidity decreased by £3.8
billion to £157.3 billion, of which £81.1 billion, or 52%
was cash and balances at central banks. Total wholesale funding
increased by £2.7 billion in the year to £88.3
billion.
Shareholder return supported strong capital generation
●
An
attributable profit of £5,479 million, with 27% growth in our
earnings per share to 68.0 pence and RoTE of 19.2%. Q4 2025 RoTE
was 18.3%.
●
The
CET1 ratio of 14.0% increased c.40 basis points in 2025 and
included capital generation pre-distributions of 252 basis points,
comprising c.300 basis points of profit and c.40 basis points of
other capital movements partially offset by the increase in RWAs,
c.90 basis points. In Q4 2025 CET1 reduced by c.20 basis points as
capital generation of 52 basis points was more than offset by the
proposed share buybacks, c.40 basis points, and ordinary dividend
accrual, c.30 basis points.
●
TNAV
per share increased by 22 pence in the quarter to 384 pence
primarily reflecting the attributable profit for the
period.
Business performance summary
Retail Banking
|
|
Year ended
|
|
Quarter ended or as at
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Total income
|
6,495
|
5,650
|
|
1,699
|
1,662
|
1,501
|
|
Operating expenses
|
(2,937)
|
(2,937)
|
|
(799)
|
(715)
|
(808)
|
|
of which: Other operating
expenses
|
(2,922)
|
(2,827)
|
|
(799)
|
(712)
|
(714)
|
|
Impairment losses
|
(437)
|
(282)
|
|
(114)
|
(97)
|
(16)
|
|
Operating profit
|
3,121
|
2,431
|
|
786
|
850
|
677
|
|
|
|
|
|
|
|
|
|
Return on equity (1)
|
24.7%
|
19.9%
|
|
24.6%
|
26.4%
|
21.4%
|
|
Net interest margin (1)
|
2.63%
|
2.36%
|
|
2.70%
|
2.64%
|
2.47%
|
|
Cost:income ratio (excl. litigation
|
|
|
|
|
|
|
|
and conduct) (1)
|
45.0%
|
50.0%
|
|
47.0%
|
42.8%
|
47.6%
|
|
Loan impairment rate (1)
|
20bps
|
13bps
|
|
21bps
|
18bps
|
3bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
|
Net loans to customers (amortised cost)
|
|
216.1
|
216.0
|
208.4
|
||
|
Customer deposits
|
|
|
|
202.6
|
195.8
|
194.8
|
|
Customer assets and liabilities (CAL) (1)
|
|
420.5
|
413.7
|
404.9
|
||
|
RWAs
|
|
|
|
68.5
|
69.1
|
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.
(2)
Climate and transition finance represents only a relatively
small proportion of our overall financing and facilitation
activities.
In 2025, Retail Banking delivered an operating profit of £3.1
billion and a return on equity of 24.7%, with positive income and
net interest margin momentum. We support 19 million customers,
including 2.4 million youth customers, along with 529,000 customers
within our Premier segment where we have an NPS of 44. We helped
more customers achieve their home ownership goals with around 30%
of 2025 gross mortgage lending supporting first-time buyers and
around £300 million of lending through our Family-Backed
Mortgage proposition. We continue to simplify the business and
improve customer and colleague experiences. New AI capabilities
enabled quicker responses to customer complaints, saving around
90,000 hours per annum through automated summarisation and
AI-generated complaint responses.
Retail Banking provided £2.6 billion of climate and transition
finance(2) in
2025 from lending on properties with an EPC rating of A or
B.
Full year 2025 performance
Total
income was £845 million, or 15.0%, higher than 2024 reflecting
strong deposit growth and margin expansion as a result of increased
hedge income, lending growth and the impact of balances acquired
from Sainsbury's Bank.
● Net
interest margin was 27 basis points higher than 2024 largely
reflecting the factors noted above.
● Non-interest
income of £431 million was £14 million, or 3.4%, higher
than 2024 including the impact of balances acquired from
Sainsbury's Bank.
● Other
operating expenses were £95 million, or 3.4%, higher than 2024
reflecting costs associated with balances acquired from Sainsbury's
Bank, partially offset by a 4.2% reduction in
headcount.
● An
impairment charge of £437 million, compared with a £282
million charge in 2024, largely driven by charges associated with
balances acquired from Sainsbury's Bank along with increased
charges driven by growth in our unsecured book. The rate of Stage 3
default flow remains broadly stable.
● Net
loans to customers increased by £7.7 billion, or 3.7%, in 2025
driven by £5.1 billion, or 2.6%, higher mortgage balances.
Cards balances increased by £1.4 billion, or 20.0%, and
personal advances increased by £1.3 billion, or 16.0%,
supported by balances acquired from Sainsbury's
Bank.
● Customer
deposits increased by £7.8 billion, or 4.0%, in 2025
reflecting growth in savings and current account balances,
supported by balances acquired from Sainsbury's
Bank.
● RWAs
increased by £3.0 billion, or 4.6%, in 2025 primarily due to
book movements including the impact of unsecured balances acquired
from Sainsbury's Bank.
Q4 2025 performance
● Total
income was £37 million, or 2.2%, higher than Q3 2025 largely
reflecting deposit margin expansion as a result of increased hedge
income.
● Net
interest margin was 6 basis points higher than Q3 2025 largely
reflecting the factors noted above.
● Other
operating expenses were £87 million, or 12.2%, higher than Q3
2025 reflecting the inclusion of the annual Bank Levy, higher
property exit costs and higher investment spend, partially offset
by a 0.9% reduction in headcount.
● An
impairment charge of £114 million, compared with a £97
million charge in Q3 2025, largely reflecting the non-repeat of Q3
2025 credit card good book model release. Stage 3 default driven
charge remains broadly stable in line with portfolio growth and the
modest ECL uplift from the Q4 2025 MES economic scenario update was
more than offset by mortgage securitisation
benefit.
● Net
loans to customers increased £0.1 billion in the quarter.
Mortgage balances are flat in the quarter driven by underlying
balance growth of £2.1 billion, offset by a mortgage
securitisation impact of £2.1 billion.
● Customer
deposits increased by £6.8 billion, or 3.5%, in the quarter
reflecting £6.4 billion higher savings balances and £0.4
billion higher current account balances.
● RWAs
decreased by £0.6 billion, or 0.9%, in the quarter due to RWA
management activity including mortgage securitisation impact offset
by operational risk increases and book
movements.
Business performance summary continued
Private Banking & Wealth Management
|
|
Year ended
|
|
Quarter ended or as at
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Total income
|
1,131
|
969
|
|
308
|
284
|
272
|
|
of which:
AUMA income (1)
|
300
|
270
|
|
81
|
75
|
72
|
|
Operating expenses
|
(727)
|
(716)
|
|
(195)
|
(173)
|
(194)
|
|
of which: Other operating
expenses
|
(725)
|
(713)
|
|
(195)
|
(172)
|
(192)
|
|
Impairment (losses)/releases
|
(10)
|
11
|
|
(6)
|
(3)
|
(3)
|
|
Operating profit
|
394
|
264
|
|
107
|
108
|
75
|
|
|
|
|
|
|
|
|
|
Return on equity (1)
|
21.7%
|
14.2%
|
|
23.6%
|
23.4%
|
16.3%
|
|
Net interest margin (1)
|
2.63%
|
2.40%
|
|
2.72%
|
2.66%
|
2.72%
|
|
Cost:income ratio (excl. litigation
|
|
|
|
|
|
|
|
and conduct) (1)
|
64.1%
|
73.6%
|
|
63.3%
|
60.6%
|
70.6%
|
|
Loan impairment rate (1)
|
5bps
|
(6bps)
|
|
13bps
|
6bps
|
7bps
|
|
AUMA net flows (£bn) (1)
|
4.6
|
3.2
|
|
1.3
|
1.2
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
|
Net loans to customers (amortised cost)
|
|
18.9
|
18.8
|
18.2
|
||
|
Customer deposits
|
|
|
|
42.7
|
40.6
|
42.4
|
|
Assets under management (AUM) (1)
|
|
|
|
43.7
|
41.9
|
37.0
|
|
Assets under administration (AUA) (1)
|
|
|
|
14.8
|
14.1
|
11.9
|
|
Total assets under management and administration
(AUMA) (1)
|
|
58.5
|
56.0
|
48.9
|
||
|
Customer assets and liabilities (CAL) (1,2)
|
|
119.0
|
114.3
|
108.5
|
||
|
RWAs
|
|
|
|
11.4
|
11.4
|
11.0
|
(1) Refer
to the Non-IFRS financial measures appendix for details of basis of
preparation and reconciliation of non-IFRS financial measures and
performance metrics.
(2) CAL
refers to customer deposits, gross loans to customers - amortised
cost and AUMA. To avoid double counting, investment cash is
deducted as it is reported within customer deposits and
AUMA.
(3) Climate
and transition finance represents only a relatively small
proportion of our overall financing and facilitation
activities.
In 2025, Private Banking & Wealth Management delivered an
operating profit of £394 million and return on equity of
21.7%. As part of our strategy to deepen focus on high net worth
and ultra-high net worth segments, we refreshed our visual identity
and enhanced our investment insight, including a new Coutts website
which delivers a faster and more responsive experience. AI tooling
has reduced call summarisation time by more than 70% and we have
continued to see strong customer engagement across our
propositions, resulting in an increase in CAL of 9.7% in the year
with growth in deposits, lending and AUMA.
Private Banking provided £0.2 billion of climate and
transition finance(3) in
2025, principally in relation to mortgages on residential
properties with an EPC rating of A or B and wholesale
transactions.
Full year 2025 performance
●
Total
income was £162 million, or 16.7%, higher than 2024 primarily
reflecting deposit margin expansion as a result of strong hedge
income, balance growth across deposits and AUMA, and higher
transactional fees including some non-repeatable
adjustments.
●
Net
interest margin was 23 basis points higher than 2024 largely
reflecting the factors noted above.
●
Non-interest
income of £374 million was £50 million, or 15.4%, higher
than 2024 principally due to higher AUMA balances and higher
transactional fees including some non-repeatable
adjustments.
●
Other
operating expenses were £12 million, or 1.7%, higher
reflecting continuing investment in the business and higher pay
awards to support our colleagues, partly offset by lower severance
costs.
●
An
impairment charge of £10 million, compared with an £11
million release in 2024, largely reflecting the non-repeat of 2024
good book releases, and an increase in Stage 3 charges relating to
existing exposures.
●
Net
loans to customers increased £0.7 billion, or 3.8%, in 2025
largely driven by higher personal lending balances and higher
commercial lending balances.
●
Customer
deposits increased by £0.3 billion, or 0.7%, in 2025
reflecting growth in current account and savings balances, with
progress driven by both deeper engagement with existing customers
and new customer acquisition
●
AUMA
of £58.5 billion increased by £9.6 billion in 2025,
reflecting AUM net flows of £3.1 billion, AUA net flows of
£0.9 billion, Cushon net flows of £0.6 billion and
positive market movements of £5.0 billion. AUM net flows as a
percentage of opening balances are 8.4%
Q4 2025 performance
●
Total
income was £24 million, or 8.5%, higher than Q3 2025 primarily
reflecting deposit margin expansion as a result of strong hedge
income, balance growth across deposits and AUMA, and some
non-repeatable adjustments in transactional
fees.
●
Net
interest margin was 6 basis points higher than Q3 2025 largely
reflecting deposit margin expansion.
●
Other
operating expenses were £23 million, or 13.4%, higher than Q3
2025 reflecting the inclusion of the annual Bank
Levy.
●
An
impairment charge of £6 million, compared with a £3
million charge in Q3 2025, reflecting an increase in Stage 3
charges relating to existing exposures. New charges on inflows to
default remain low.
●
Net
loans to customers increased by £0.1 billion, or 0.5%, in Q4
2025 driven by higher personal lending
balances.
●
Customer
deposits increased by £2.1 billion, or 5.2%, in Q4 2025
reflecting growth in savings and current account balances,
supported by new customer acquisition
●
AUMA
increased £2.5 billion in Q4 2025 driven by AUM net flows of
£0.9 billion, AUA net flows of £0.3 billion, Cushon net
flows of £0.2 billion, and positive market movements of
£1.1 billion. AUM net flows as a percentage of opening
balances are 8.6% on an annualised basis.
Business performance summary continued
Commercial & Institutional
|
|
Year ended
|
|
Quarter ended or as at
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Net interest income
|
6,149
|
5,339
|
|
1,644
|
1,550
|
1,404
|
|
Non-interest income
|
2,660
|
2,618
|
|
668
|
658
|
682
|
|
Total income
|
8,809
|
7,957
|
|
2,312
|
2,208
|
2,086
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(4,520)
|
(4,274)
|
|
(1,254)
|
(1,115)
|
(1,179)
|
|
of which: Other operating
expenses
|
(4,347)
|
(4,118)
|
|
(1,225)
|
(1,060)
|
(1,134)
|
|
Impairment losses
|
(225)
|
(98)
|
|
(19)
|
(52)
|
(46)
|
|
Operating profit
|
4,064
|
3,585
|
|
1,039
|
1,041
|
861
|
|
Return on equity (1)
|
19.1%
|
17.2%
|
|
19.4%
|
19.7%
|
16.6%
|
|
Net interest margin (1)
|
2.37%
|
2.16%
|
|
2.45%
|
2.36%
|
2.21%
|
|
Cost:income ratio (excl. litigation
|
|
|
|
|
|
|
|
and conduct) (1)
|
49.3%
|
51.8%
|
|
53.0%
|
48.0%
|
54.4%
|
|
Loan impairment rate (1)
|
14bps
|
7bps
|
|
5bps
|
14bps
|
13bps
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
|
|
Net loans to customers
|
|
|
|
|
||
|
(amortised
cost)
|
|
|
154.2
|
149.7
|
141.9
|
|
|
Customer deposits (2)
|
|
|
196.4
|
198.3
|
194.1
|
|
|
Funded assets (1)
|
|
|
331.4
|
348.2
|
321.6
|
|
|
Customer assets and liabilities (CAL) (1)
|
|
|
352.2
|
349.6
|
337.5
|
|
|
RWAs
|
|
|
111.9
|
107.0
|
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.
(2)
Client transfers from Commercial Mid-market to Corporate &
Institutions in Q1 2025 of £4.9 billion. Balance at the end of
31 December 2025 was £2.7 billion (31 December 2024 -
£3.3 billion).
(3)
Social finance represents only a relatively small proportion of our
overall financing activities.
(4)
Climate and transition finance represents only a relatively small
proportion of our overall financing and facilitation
activities.
During 2025, Commercial & Institutional continued to support
customers with an increase in lending of 8.7% and delivered a
strong performance in income and operating profit supporting a
return on equity of 19.1%, an increase from 17.2% in 2024. We
worked with our customers to unlock growth for key structural and
policy priorities in the UK, particularly social housing and
infrastructure investment. In 2025, we committed over £4.6
billion of lending into the UK social housing sector, surpassing
our upgraded target of £7.5 billion by the end of 2026, with
total commitments of £8.7 billion.(3) We
prioritised the use of generative AI through AI-driven
transcription and summarisation of complaints and complex business
banking calls, increasing our relationship managers' capacity to
focus on personalised AI-guided interactions.
Commercial & Institutional provided £16.2 billion of
climate and transition finance(4) in
2025 to support customers investing in the transition to net
zero.
Full year 2025 performance
●
Total
income was £852 million, or 10.7%, higher than 2024
principally reflecting deposit margin expansion as a result of
higher customer balances and strong hedge income, increased FX
trading revenues and lending growth across Corporate &
Institutions and Commercial Mid-market.
●
Net
interest margin was 21 basis points higher than 2024 largely
reflecting deposit margin expansion.
●
Non-interest
income was £42 million, or 1.6%, higher than 2024 principally
driven by customer activity in markets trading and a dividend
received on restructuring of a strategic investment in Corporate
& Institutions.
●
Other
operating expenses were £229 million, or 5.6%, higher than
2024 reflecting the impact of inflationary increases in staff costs
and continued business investment spend, partially offset by a 3.9
% reduction in headcount.
●
An
impairment charge of £225 million in 2025, compared with a
£98 million charge in 2024, reflecting lower good book
releases. Stage 3 charge remains broadly
stable.
●
Net
loans to customers increased by £12.3 billion, or 8.7%, in
2025 principally due to growth in Corporate & Institutions and
Commercial Mid-market, partly offset by UK Government scheme
repayments of £1.6 billion.
●
Customer
deposits increased by £2.3 billion, or 1.2%, in 2025
reflecting growth within Corporate & Institutions and Business
Banking. Excluding client transfers, deposit balances in all
customer groups grew in the year. (2)
●
RWAs
increased by £7.2 billion, or 6.9%, compared with 2024
primarily due to CRD IV, other regulatory increases and increased
operational risk, with book growth offset by continued RWA
management activity.
Q4 2025 performance
●
Total
income was £104 million, or 4.7%, higher than Q3 2025
principally reflecting deposit margin expansion from hedge income
and a dividend received on restructuring of a strategic investment
in Corporate &
Institutions.
●
Net
interest margin was 9 basis points higher than Q3 2025 largely
reflecting deposit structural hedge benefits.
●
Other
operating expenses were £165 million, or 15.6%, higher than Q3
2025 reflecting the annual Bank Levy and continued business
investment spend.
●
An
impairment charge of £19 million in Q4 2025 compared with a
£52 million charge in Q3 2025 reflecting lower Stage 3
charges.
●
Net
loans to customers increased by £4.5 billion, or 3.0%, in Q4
2025 principally due to broad based growth particularly within
Housing and Asset Finance sectors in Commercial Mid-market and from
Funds lending, Infrastructure and Project Finance growth within
Corporate & Institutions, partly offset by UK Government scheme
repayments of £0.3 billion.
●
Customer
deposits decreased by £1.9 billion, or 1.0%, in Q4 2025
reflecting expected lower balances in Corporate & Institutions
and lower balances in Commercial Mid-market, partly offset by
higher Business Banking balances.
●
RWAs
increased by £4.9 billion, or 4.6%, compared with Q3 2025
primarily due to an increase for CRD IV models, operational risk
increases and book movements, partly offset by continued RWA
management activity.
Business performance summary continued
Central items & other
|
|
Year ended
|
|
Quarter ended or as at
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
|
|
|
||
|
Total income
|
206
|
127
|
|
5
|
178
|
(34)
|
|
Operating expenses
|
(78)
|
(222)
|
|
-
|
7
|
(86)
|
|
of which: Other
operating
|
|
|
|
|
|
|
|
expenses
|
(101)
|
(196)
|
|
8
|
(40)
|
(74)
|
|
Impairment releases/(losses)
|
1
|
10
|
|
3
|
(1)
|
(1)
|
|
Operating profit/(loss)
|
129
|
(85)
|
|
8
|
184
|
(121)
|
|
|
|
|
||||
|
|
£bn
|
£bn
|
£bn
|
|||
|
Net loans to customers
|
|
|
|
|||
|
(amortised
cost)
|
|
29.7
|
30.8
|
31.8
|
||
|
Customer deposits
|
|
1.3
|
0.8
|
2.2
|
||
|
RWAs
|
|
1.5
|
1.6
|
2.0
|
||
Full year 2025 performance
●
Total income was
£79 million higher than 2024 primarily reflecting higher gains
on interest and FX risk management derivatives not in accounting
hedge relationships, higher Business Growth Fund profits and lower
foreign exchange recycling losses.
●
Other operating
expenses were £95 million lower than 2024 primarily due to
lower costs in relation to our withdrawal from our operations in
the Republic of Ireland.
●
Net loans to customers
decreased by £2.1 billion in 2025 driven by reverse repo
activity in Treasury
●
Customer deposits
decreased by £0.9 billion compared with 2024 reflecting repo
activity in Treasury.
Q4 2025 performance
●
Total income was
£173 million lower than Q3 2025 primarily reflecting lower
gains on interest and FX risk management derivatives not in
accounting hedge relationships, lower Business Growth Fund profits
and a loss on reclassification to disposal
groups.
●
Other operating
expenses were £48 million lower than Q3 2025 primarily due to
indirect cost allocation phasing across the year and the non-repeat
of Q3 2025 Bank of England levy.
●
Net loans to customers
decreased by £1.1 billion in Q4 2025 driven by reverse repo
activity in Treasury
●
Customer deposits
increased by £0.5 billion in Q4 2025 reflecting repo activity
in Treasury.
Segment performance
|
|
Year ended 31 December 2025
|
||||
|
|
|
Private Banking
|
|
|
|
|
|
Retail
|
& Wealth
|
Commercial
|
Central items
|
Total NatWest
|
|
|
Banking
|
Management
|
& Institutional
|
&
other
|
Group
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
||||
|
Income statement
|
|
||||
|
Net interest income
|
6,064
|
757
|
6,149
|
(141)
|
12,829
|
|
Own credit adjustments
|
-
|
-
|
1
|
-
|
1
|
|
Other non-interest income
|
431
|
374
|
2,659
|
347
|
3,811
|
|
Total income
|
6,495
|
1,131
|
8,809
|
206
|
16,641
|
|
Direct expenses
|
(835)
|
(250)
|
(1,633)
|
(5,377)
|
(8,095)
|
|
Indirect expenses
|
(2,087)
|
(475)
|
(2,714)
|
5,276
|
-
|
|
Other operating expenses
|
(2,922)
|
(725)
|
(4,347)
|
(101)
|
(8,095)
|
|
Litigation and conduct costs
|
(15)
|
(2)
|
(173)
|
23
|
(167)
|
|
Operating expenses
|
(2,937)
|
(727)
|
(4,520)
|
(78)
|
(8,262)
|
|
Operating profit before impairment losses/releases
|
3,558
|
404
|
4,289
|
128
|
8,379
|
|
Impairment (losses)/releases
|
(437)
|
(10)
|
(225)
|
1
|
(671)
|
|
Operating profit
|
3,121
|
394
|
4,064
|
129
|
7,708
|
|
|
|
|
|
|
|
|
Income excluding notable items (1)
|
6,495
|
1,131
|
8,757
|
17
|
16,400
|
|
|
|
|
|
|
|
|
Additional information
|
|
||||
|
Return on Tangible Equity (1)
|
na
|
na
|
na
|
na
|
19.2%
|
|
Return on equity (1)
|
24.7%
|
21.7%
|
19.1%
|
nm
|
na
|
|
Cost:income ratio (excl. litigation and conduct) (1)
|
45.0%
|
64.1%
|
49.3%
|
nm
|
48.6%
|
|
Total assets (£bn)
|
240.3
|
30.5
|
391.9
|
51.9
|
714.6
|
|
Funded assets (£bn) (1)
|
240.3
|
30.5
|
331.4
|
51.6
|
653.8
|
|
Net loans to customers - amortised cost (£bn)
|
216.1
|
18.9
|
154.2
|
29.7
|
418.9
|
|
Loan impairment rate (1)
|
20bps
|
5bps
|
14bps
|
nm
|
16bps
|
|
Impairment provisions (£bn)
|
(1.8)
|
(0.1)
|
(1.7)
|
-
|
(3.6)
|
|
Impairment provisions - Stage 3 (£bn)
|
(1.1)
|
(0.1)
|
(1.0)
|
-
|
(2.2)
|
|
Customer deposits (£bn)
|
202.6
|
42.7
|
196.4
|
1.3
|
443.0
|
|
Risk-weighted assets (RWAs) (£bn)
|
68.5
|
11.4
|
111.9
|
1.5
|
193.3
|
|
RWA equivalent (RWAe) (£bn)
|
69.7
|
11.4
|
112.9
|
1.7
|
195.7
|
|
Customer assets and liabilities (CAL) (£bn) (1)
|
420.5
|
119.0
|
352.2
|
na
|
891.7
|
|
Employee numbers (FTEs - thousands)
|
11.5
|
2.1
|
12.3
|
32.8
|
58.7
|
|
Third party customer asset rate (1)
|
4.36%
|
4.72%
|
5.94%
|
nm
|
nm
|
|
Third party customer funding rate (1)
|
(1.74%)
|
(2.68%)
|
(1.55%)
|
nm
|
nm
|
|
Average interest earning assets (£bn) (1)
|
230.9
|
28.8
|
259.4
|
na
|
547.4
|
|
Net interest margin (1)
|
2.63%
|
2.63%
|
2.37%
|
na
|
2.34%
|
nm = not meaningful, na = not applicable.
|
(1)
|
Refer
to the Non-IFRS financial measures appendix for details of the
basis of preparation and reconciliation of non-IFRS financial
measures and performance metrics.
|
Segment performance continued
|
|
Year ended 31 December 2024
|
||||
|
|
Private Banking
|
|
|
|
|
|
|
Retail
|
& Wealth
|
Commercial
|
Central items
|
Total NatWest
|
|
|
Banking
|
Management
|
& Institutional
|
&
other
|
Group
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
|
|
|
|
|
Income statement
|
|
||||
|
Net interest income
|
5,233
|
645
|
5,339
|
58
|
11,275
|
|
Own credit adjustments
|
-
|
-
|
(9)
|
-
|
(9)
|
|
Other non-interest income
|
417
|
324
|
2,627
|
69
|
3,437
|
|
Total income
|
5,650
|
969
|
7,957
|
127
|
14,703
|
|
Direct expenses
|
(777)
|
(255)
|
(1,537)
|
(5,285)
|
(7,854)
|
|
Indirect expenses
|
(2,050)
|
(458)
|
(2,581)
|
5,089
|
-
|
|
Other operating expenses
|
(2,827)
|
(713)
|
(4,118)
|
(196)
|
(7,854)
|
|
Litigation and conduct costs
|
(110)
|
(3)
|
(156)
|
(26)
|
(295)
|
|
Operating expenses
|
(2,937)
|
(716)
|
(4,274)
|
(222)
|
(8,149)
|
|
Operating profit/(loss) before impairment
losses/releases
|
2,713
|
253
|
3,683
|
(95)
|
6,554
|
|
Impairment (losses)/releases
|
(282)
|
11
|
(98)
|
10
|
(359)
|
|
Operating profit/(loss)
|
2,431
|
264
|
3,585
|
(85)
|
6,195
|
|
|
|
|
|
|
|
|
Income excluding notable items (1)
|
5,650
|
969
|
7,966
|
63
|
14,648
|
|
|
|
|
|
|
|
|
Additional information
|
|
||||
|
Return on Tangible Equity (1)
|
na
|
na
|
na
|
na
|
17.5%
|
|
Return on equity (1)
|
19.9%
|
14.2%
|
17.2%
|
nm
|
na
|
|
Cost:income ratio (excl. litigation and conduct) (1)
|
50.0%
|
73.6%
|
51.8%
|
nm
|
53.4%
|
|
Total assets (£bn)
|
232.8
|
28.6
|
398.7
|
47.9
|
708.0
|
|
Funded assets (£bn) (1)
|
232.8
|
28.6
|
321.6
|
46.6
|
629.6
|
|
Net loans to customers - amortised cost (£bn)
|
208.4
|
18.2
|
141.9
|
31.8
|
400.3
|
|
Loan impairment rate (1)
|
13bps
|
(6bps)
|
7bps
|
nm
|
9bps
|
|
Impairment provisions (£bn)
|
(1.8)
|
(0.1)
|
(1.5)
|
-
|
(3.4)
|
|
Impairment provisions - Stage 3 (£bn)
|
(1.1)
|
-
|
(0.9)
|
-
|
(2.0)
|
|
Customer deposits (£bn)
|
194.8
|
42.4
|
194.1
|
2.2
|
433.5
|
|
Risk-weighted assets (RWAs) (£bn)
|
65.5
|
11.0
|
104.7
|
2.0
|
183.2
|
|
RWA equivalent (RWAe) (£bn)
|
66.5
|
11.0
|
105.9
|
2.5
|
185.9
|
|
Customer assets and liabilities (CAL) (£bn) (1)
|
404.9
|
108.5
|
337.5
|
na
|
850.9
|
|
Employee numbers (FTEs - thousands)
|
12.0
|
2.1
|
12.8
|
32.3
|
59.2
|
|
Third party customer asset rate (1)
|
4.02%
|
5.05%
|
6.64%
|
nm
|
nm
|
|
Third party customer funding rate (1)
|
(2.05%)
|
(3.13%)
|
(1.90%)
|
nm
|
nm
|
|
Average interest earning assets (£bn) (1)
|
222.0
|
26.9
|
246.8
|
na
|
529.3
|
|
Net interest margin (1)
|
2.36%
|
2.40%
|
2.16%
|
na
|
2.13%
|
nm = not meaningful, na = not applicable.
(1)
Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial
measures and performance metrics.
Segment performance continued
|
|
Quarter ended 31 December 2025
|
||||
|
|
|
Private Banking
|
|
|
|
|
|
Retail
|
& Wealth
|
Commercial
|
Central items
|
Total NatWest
|
|
|
Banking
|
Management
|
& Institutional
|
&
other
|
Group
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
|
|
|
|
|
Income statement
|
|
||||
|
Net interest income
|
1,593
|
202
|
1,644
|
2
|
3,441
|
|
Own credit adjustments
|
-
|
-
|
(2)
|
-
|
(2)
|
|
Other non-interest income
|
106
|
106
|
670
|
3
|
885
|
|
Total income
|
1,699
|
308
|
2,312
|
5
|
4,324
|
|
Direct expenses
|
(231)
|
(67)
|
(441)
|
(1,472)
|
(2,211)
|
|
Indirect expenses
|
(568)
|
(128)
|
(784)
|
1,480
|
-
|
|
Other operating expenses
|
(799)
|
(195)
|
(1,225)
|
8
|
(2,211)
|
|
Litigation and conduct costs
|
-
|
-
|
(29)
|
(8)
|
(37)
|
|
Operating expenses
|
(799)
|
(195)
|
(1,254)
|
-
|
(2,248)
|
|
Operating profit before impairment losses/releases
|
900
|
113
|
1,058
|
5
|
2,076
|
|
Impairment (losses)/releases
|
(114)
|
(6)
|
(19)
|
3
|
(136)
|
|
Operating profit
|
786
|
107
|
1,039
|
8
|
1,940
|
|
|
|
|
|
|
|
|
Income excluding notable items (1)
|
1,699
|
308
|
2,263
|
2
|
4,272
|
|
|
|
|
|
|
|
|
Additional information
|
|
||||
|
Return on Tangible Equity (1)
|
na
|
na
|
na
|
na
|
18.3%
|
|
Return on equity (1)
|
24.6%
|
23.6%
|
19.4%
|
nm
|
na
|
|
Cost:income ratio (excl. litigation and conduct) (1)
|
47.0%
|
63.3%
|
53.0%
|
nm
|
51.1%
|
|
Total assets (£bn)
|
240.3
|
30.5
|
391.9
|
51.9
|
714.6
|
|
Funded assets (£bn) (1)
|
240.3
|
30.5
|
331.4
|
51.6
|
653.8
|
|
Net loans to customers - amortised cost (£bn)
|
216.1
|
18.9
|
154.2
|
29.7
|
418.9
|
|
Loan impairment rate (1)
|
21bps
|
13bps
|
5bps
|
nm
|
13bps
|
|
Impairment provisions (£bn)
|
(1.8)
|
(0.1)
|
(1.7)
|
-
|
(3.6)
|
|
Impairment provisions - Stage 3 (£bn)
|
(1.1)
|
(0.1)
|
(1.0)
|
-
|
(2.2)
|
|
Customer deposits (£bn)
|
202.6
|
42.7
|
196.4
|
1.3
|
443.0
|
|
Risk-weighted assets (RWAs) (£bn)
|
68.5
|
11.4
|
111.9
|
1.5
|
193.3
|
|
RWA equivalent (RWAe) (£bn)
|
69.7
|
11.4
|
112.9
|
1.7
|
195.7
|
|
Customer assets and liabilities (CAL) (£bn) (1)
|
420.5
|
119.0
|
352.2
|
na
|
891.7
|
|
Employee numbers (FTEs - thousands)
|
11.5
|
2.1
|
12.3
|
32.8
|
58.7
|
|
Third party customer asset rate (1)
|
4.42%
|
4.66%
|
5.69%
|
nm
|
nm
|
|
Third party customer funding rate (1)
|
(1.63%)
|
(2.47%)
|
(1.41%)
|
nm
|
nm
|
|
Average interest earning assets (£bn) (1)
|
234.1
|
29.5
|
266.4
|
na
|
557.2
|
|
Net interest margin (1)
|
2.70%
|
2.72%
|
2.45%
|
na
|
2.45%
|
nm
= not meaningful, na = not applicable.
(1)
Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial
measures and performance metrics.
Segment performance continued
|
|
Quarter ended 30 September 2025
|
||||
|
|
Private Banking
|
|
|
|
|
|
|
Retail
|
& Wealth
|
Commercial
|
Central items
|
Total NatWest
|
|
|
Banking
|
Management
|
& Institutional
|
&
other
|
Group
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
||||
|
Income statement
|
|
||||
|
Net interest income
|
1,549
|
192
|
1,550
|
(23)
|
3,268
|
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
|
Other non-interest income
|
113
|
92
|
658
|
201
|
1,064
|
|
Total income
|
1,662
|
284
|
2,208
|
178
|
4,332
|
|
Direct expenses
|
(208)
|
(61)
|
(410)
|
(1,305)
|
(1,984)
|
|
Indirect expenses
|
(504)
|
(111)
|
(650)
|
1,265
|
-
|
|
Other operating expenses
|
(712)
|
(172)
|
(1,060)
|
(40)
|
(1,984)
|
|
Litigation and conduct costs
|
(3)
|
(1)
|
(55)
|
47
|
(12)
|
|
Operating expenses
|
(715)
|
(173)
|
(1,115)
|
7
|
(1,996)
|
|
Operating profit before impairment losses
|
947
|
111
|
1,093
|
185
|
2,336
|
|
Impairment losses
|
(97)
|
(3)
|
(52)
|
(1)
|
(153)
|
|
Operating profit
|
850
|
108
|
1,041
|
184
|
2,183
|
|
|
|
||||
|
Income excluding notable items (1)
|
1,662
|
284
|
2,208
|
12
|
4,166
|
|
|
|
||||
|
Additional information
|
|
|
|
|
|
|
Return on Tangible Equity (1)
|
na
|
na
|
na
|
na
|
22.3%
|
|
Return on equity (1)
|
26.4%
|
23.4%
|
19.7%
|
nm
|
na
|
|
Cost:income ratio (excl. litigation and conduct) (1)
|
42.8%
|
60.6%
|
48.0%
|
nm
|
45.8%
|
|
Total assets (£bn)
|
240.6
|
29.1
|
408.9
|
47.0
|
725.6
|
|
Funded assets (£bn) (1)
|
240.6
|
29.1
|
348.2
|
46.6
|
664.5
|
|
Net loans to customers - amortised cost (£bn)
|
216.0
|
18.8
|
149.7
|
30.8
|
415.3
|
|
Loan impairment rate (1)
|
18bps
|
6bps
|
14bps
|
nm
|
15bps
|
|
Impairment provisions (£bn)
|
(1.9)
|
(0.1)
|
(1.7)
|
-
|
(3.7)
|
|
Impairment provisions - Stage 3 (£bn)
|
(1.2)
|
-
|
(1.1)
|
-
|
(2.3)
|
|
Customer deposits (£bn)
|
195.8
|
40.6
|
198.3
|
0.8
|
435.5
|
|
Risk-weighted assets (RWAs) (£bn)
|
69.1
|
11.4
|
107.0
|
1.6
|
189.1
|
|
RWA equivalent (RWAe) (£bn)
|
69.9
|
11.4
|
108.0
|
1.9
|
191.2
|
|
Customer assets and liabilities (CAL) (£bn) (1)
|
413.7
|
114.3
|
349.6
|
na
|
877.6
|
|
Employee numbers (FTEs - thousands)
|
11.6
|
2.1
|
12.6
|
32.8
|
59.1
|
|
Third party customer asset rate (1)
|
4.40%
|
4.66%
|
5.88%
|
nm
|
nm
|
|
Third party customer funding rate (1)
|
(1.69%)
|
(2.61%)
|
(1.49%)
|
nm
|
nm
|
|
Average interest earning assets (£bn) (1)
|
233.0
|
28.6
|
260.5
|
na
|
548.1
|
|
Net interest margin (1)
|
2.64%
|
2.66%
|
2.36%
|
na
|
2.37%
|
nm = not meaningful, na = not applicable.
(1)
Refer to the Non-IFRS financial measures appendix for details of
the basis of preparation and reconciliation of non-IFRS financial
measures and performance metrics.
Segment performance continued
|
|
Quarter ended 31 December 2024
|
||||
|
|
Private Banking
|
|
|
|
|
|
|
Retail
|
& Wealth
|
Commercial
|
Central items
|
Total NatWest
|
|
|
Banking
|
Management
|
& Institutional
|
&
other
|
Group
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
|
|
|
|
|
Income statement
|
|
||||
|
Net interest income
|
1,408
|
190
|
1,404
|
(34)
|
2,968
|
|
Own credit adjustments
|
-
|
-
|
(4)
|
-
|
(4)
|
|
Other non-interest income
|
93
|
82
|
686
|
-
|
861
|
|
Total income
|
1,501
|
272
|
2,086
|
(34)
|
3,825
|
|
Direct expenses
|
(191)
|
(65)
|
(417)
|
(1,441)
|
(2,114)
|
|
Indirect expenses
|
(523)
|
(127)
|
(717)
|
1,367
|
-
|
|
Other operating expenses
|
(714)
|
(192)
|
(1,134)
|
(74)
|
(2,114)
|
|
Litigation and conduct costs
|
(94)
|
(2)
|
(45)
|
(12)
|
(153)
|
|
Operating expenses
|
(808)
|
(194)
|
(1,179)
|
(86)
|
(2,267)
|
|
Operating profit/(loss) before impairment losses
|
693
|
78
|
907
|
(120)
|
1,558
|
|
Impairment losses
|
(16)
|
(3)
|
(46)
|
(1)
|
(66)
|
|
Operating profit/(loss)
|
677
|
75
|
861
|
(121)
|
1,492
|
|
|
|
||||
|
Income excluding notable items (1)
|
1,501
|
272
|
2,090
|
9
|
3,872
|
|
|
|
||||
|
Additional information
|
|
|
|
|
|
|
Return on Tangible Equity (1)
|
na
|
na
|
na
|
na
|
19.0%
|
|
Return on equity (1)
|
21.4%
|
16.3%
|
16.6%
|
nm
|
na
|
|
Cost:income ratio (excl. litigation and conduct) (1)
|
47.6%
|
70.6%
|
54.4%
|
nm
|
55.3%
|
|
Total assets (£bn)
|
232.8
|
28.6
|
398.7
|
47.9
|
708.0
|
|
Funded assets (£bn) (1)
|
232.8
|
28.6
|
321.6
|
46.6
|
629.6
|
|
Net loans to customers - amortised cost (£bn)
|
208.4
|
18.2
|
141.9
|
31.8
|
400.3
|
|
Loan impairment rate (1)
|
3bps
|
7bps
|
13bps
|
nm
|
7bps
|
|
Impairment provisions (£bn)
|
(1.8)
|
(0.1)
|
(1.5)
|
-
|
(3.4)
|
|
Impairment provisions - Stage 3 (£bn)
|
(1.1)
|
-
|
(0.9)
|
-
|
(2.0)
|
|
Customer deposits (£bn)
|
194.8
|
42.4
|
194.1
|
2.2
|
433.5
|
|
Risk-weighted assets (RWAs) (£bn)
|
65.5
|
11.0
|
104.7
|
2.0
|
183.2
|
|
RWA equivalent (RWAe) (£bn)
|
66.5
|
11.0
|
105.9
|
2.5
|
185.9
|
|
Customer assets and liabilities (CAL) (£bn) (1)
|
404.9
|
108.5
|
337.5
|
na
|
850.9
|
|
Employee numbers (FTEs - thousands)
|
12.0
|
2.1
|
12.8
|
32.3
|
59.2
|
|
Third party customer asset rate (1)
|
4.21%
|
5.22%
|
6.36%
|
nm
|
nm
|
|
Third party customer funding rate (1)
|
(1.97%)
|
(3.06%)
|
(1.83%)
|
nm
|
nm
|
|
Average interest earning assets (£bn) (1)
|
226.3
|
27.8
|
252.2
|
na
|
538.8
|
|
Net interest margin (1)
|
2.47%
|
2.72%
|
2.21%
|
na
|
2.19%
|
nm - not meaningful, na - not applicable
(1) Refer
to the Non-IFRS financial measures appendix for details of the
basis of preparation and reconciliation of non-IFRS financial
measures and performance metrics.
Risk and capital management
Capital, liquidity and funding risk
Capital and leverage ratios
The tables below show key prudential metrics calculated in
accordance with current PRA rules.
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2025
|
2024
|
|
Capital adequacy
ratios (1)
|
%
|
%
|
%
|
|
CET1
|
14.0
|
14.2
|
13.6
|
|
Tier 1
|
16.4
|
17.2
|
16.5
|
|
Total
|
19.3
|
20.2
|
19.7
|
|
|
|
|
|
|
Capital
|
£m
|
£m
|
£m
|
|
Tangible equity
|
30,736
|
29,093
|
26,482
|
|
|
|
|
|
|
Expected loss less impairment
|
(89)
|
(35)
|
(27)
|
|
Prudential valuation adjustment
|
(167)
|
(172)
|
(230)
|
|
Deferred tax assets
|
(804)
|
(834)
|
(1,084)
|
|
Own credit adjustments
|
42
|
34
|
28
|
|
Pension fund assets
|
(187)
|
(163)
|
(147)
|
|
Cash flow hedging reserve
|
752
|
886
|
1,443
|
|
Foreseeable ordinary dividends
|
(1,837)
|
(1,275)
|
(1,249)
|
|
Adjustment for trust assets (2)
|
(365)
|
(365)
|
(365)
|
|
Foreseeable charges (3)
|
(921)
|
(446)
|
-
|
|
Adjustments under IFRS 9 transitional arrangements
|
-
|
-
|
33
|
|
Other adjustments for regulatory purposes
|
(94)
|
46
|
44
|
|
Total regulatory adjustments
|
(3,670)
|
(2,324)
|
(1,554)
|
|
|
|
|
|
|
CET1 capital
|
27,066
|
26,769
|
24,928
|
|
|
|
|
|
|
Additional AT1 capital
|
4,555
|
5,771
|
5,259
|
|
Tier 1 capital
|
31,621
|
32,540
|
30,187
|
|
|
|
|
|
|
Tier 2 capital
|
5,754
|
5,752
|
5,918
|
|
Total regulatory capital
|
37,375
|
38,292
|
36,105
|
|
|
|
|
|
|
Risk-weighted assets
|
|
|
|
|
Credit risk
|
155,610
|
151,945
|
148,078
|
|
Counterparty credit risk
|
7,609
|
7,397
|
7,103
|
|
Market risk
|
4,474
|
5,825
|
6,219
|
|
Operational risk
|
25,595
|
23,959
|
21,821
|
|
Total RWAs
|
193,288
|
189,126
|
183,221
|
(1)
The IFRS 9 transitional capital rules in respect of ECL provisions
ceased to apply as of 1 January 2025. (The impact of the IFRS 9
transitional adjustments at 31 December 2024 was £33 million
for CET1 capital, £33 million for total capital and £3
million RWAs. Excluding this adjustment at 31 December 2024, the
CET1 ratio was 13.6%, Tier 1 capital ratio was 16.5% and the Total
capital ratio was 19.7%).
(2)
Prudent deduction in respect of agreement with the pension
fund.
(3)
For December 2025, the foreseeable charge relates to share buybacks
(£750 million relating to FY 2025, £171 million relating
to H1 2025).
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital and leverage ratios continued
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2025
|
2024
|
|
Leverage
|
£m
|
£m
|
£m
|
|
Cash and balances at central banks
|
85,182
|
84,686
|
92,994
|
|
Trading assets
|
46,537
|
56,856
|
48,917
|
|
Derivatives
|
60,789
|
61,119
|
78,406
|
|
Financial assets
|
505,609
|
494,874
|
469,599
|
|
Other assets
|
16,436
|
28,100
|
18,069
|
|
Total assets
|
714,553
|
725,635
|
707,985
|
|
Derivatives
|
|
|
|
|
- netting and variation
margin
|
(58,769)
|
(58,580)
|
(76,101)
|
|
- potential future
exposures
|
18,155
|
17,690
|
16,692
|
|
Securities financing transactions gross up
|
2,593
|
1,841
|
2,460
|
|
Other off balance sheet items
|
70,909
|
63,394
|
59,498
|
|
Regulatory deductions and other adjustments
|
(9,699)
|
(18,124)
|
(11,014)
|
|
Claims on central banks
|
(81,616)
|
(81,179)
|
(89,299)
|
|
Exclusion of bounce back loans
|
(1,172)
|
(1,457)
|
(2,422)
|
|
UK leverage exposure
|
654,954
|
649,220
|
607,799
|
|
UK leverage ratio (%) (1)
|
4.8
|
5.0
|
5.0
|
(1)
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 ceased to apply on 1 January 2025.
Excluding the IFRS 9 transitional adjustment, the UK leverage ratio
as at 31 December 2024 was 5.0%.
Capital generation pre-distributions
|
|
31 December
|
31 December
|
|
|
2025
|
2024
|
|
|
£m
|
£m
|
|
CET1
|
27,066
|
24,928
|
|
CET1 capital pre-distributions (1)
|
31,171
|
28,920
|
|
RWAs
|
193,288
|
183,221
|
|
|
%
|
%
|
|
CET1 ratio - opening at 1 January
|
13.61
|
13.36
|
|
CET1 pre-distributions - closing
|
16.13
|
15.78
|
|
Capital generation pre-distributions (1)
|
2.52
|
2.43
|
(1)
The calculation of capital generation pre-distributions uses CET1
capital pre-distributions. Distributions include ordinary dividends
paid, foreseeable ordinary dividends and share
buybacks.
Risk and capital management continued
Credit risk
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.
|
|
2025
|
|
2024
|
||||||||
|
|
|
Extreme
|
Weighted
|
|
|
Extreme
|
Weighted
|
||||
|
|
Upside
|
Base case
|
Downside
|
downside
|
average
|
|
Upside
|
Base case
|
Downside
|
downside
|
average
|
|
Five-year summary
|
%
|
%
|
%
|
%
|
%
|
|
%
|
%
|
%
|
%
|
%
|
|
GDP
|
2.1
|
1.4
|
0.5
|
0.1
|
1.2
|
|
2.0
|
1.3
|
0.5
|
(0.2)
|
1.1
|
|
Unemployment rate
|
4.3
|
5.1
|
5.6
|
7.0
|
5.3
|
|
3.6
|
4.3
|
5.0
|
6.7
|
4.6
|
|
House price index
|
5.7
|
3.3
|
0.6
|
(3.8)
|
2.6
|
|
5.8
|
3.5
|
0.8
|
(4.3)
|
2.7
|
|
Commercial real estate price
|
6.1
|
2.2
|
(0.3)
|
(5.0)
|
1.9
|
|
5.4
|
1.2
|
(1.0)
|
(5.7)
|
1.1
|
|
Consumer price index
|
2.6
|
2.4
|
2.4
|
1.8
|
2.3
|
|
2.4
|
2.2
|
3.5
|
1.6
|
2.4
|
|
Bank of England base rate
|
4.0
|
3.5
|
2.6
|
1.4
|
3.2
|
|
4.4
|
4.0
|
3.0
|
1.6
|
3.6
|
|
Stock price index
|
6.2
|
4.8
|
2.8
|
1.1
|
4.3
|
|
6.3
|
5.0
|
3.4
|
1.1
|
4.5
|
|
World GDP
|
3.7
|
3.1
|
2.5
|
2.2
|
3.0
|
|
3.8
|
3.2
|
2.5
|
1.6
|
3.0
|
|
Probability weight
|
22.4
|
45.0
|
19.5
|
13.1
|
|
|
23.2
|
45.0
|
19.1
|
12.7
|
|
(1)
The five year summary runs from 2025-29 for 31 December 2025 and
from 2024-28 for 31 December 2024.
(2)
The table shows compound annual growth rate (CAGR) for GDP, average
levels for the unemployment rate and Bank of England base rate, and
Q4 to Q4 CAGR for other parameters.
Risk and capital management continued
Credit risk continued
ECL post model adjustments
The table below shows ECL post model adjustments.
|
|
Retail Banking
|
Private Banking
|
Commercial
|
|
|
|
|
Mortgages
|
Other
|
& Wealth Management
|
& Institutional
|
Total
|
|
2025
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Deferred model calibrations
|
-
|
-
|
1
|
14
|
15
|
|
Economic uncertainty
|
44
|
42
|
11
|
149
|
246
|
|
Other adjustments
|
-
|
19
|
-
|
16
|
35
|
|
Total
|
44
|
61
|
12
|
179
|
296
|
|
|
|
|
|
|
|
|
Of which:
|
|
|
|
|
|
|
- Stage 1
|
33
|
38
|
4
|
73
|
148
|
|
- Stage 2
|
11
|
20
|
8
|
106
|
145
|
|
- Stage 3
|
-
|
3
|
-
|
-
|
3
|
|
|
|||||
|
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
the removal of COVID-19 post model adjustments combined with
updates to parameters.
●
Retail
Banking -
As at 31
December 2025, the post model adjustment for economic uncertainty
decreased to £86 million (2024 - £112
million). This
reduction was driven by a revision to the cost
of living post
model adjustment, standing at £86 million (2024 - £105
million), and was the sole remaining economic
uncertainty post
model adjustment. This
change was based on a review of
back-testing. Despite ongoing economic and geopolitical
uncertainty, the Retail Banking portfolios demonstrated resilience,
supported by a robust risk appetite. The cost
of living post
model adjustment continued to address the risk in segments of the
Retail Banking portfolio that were more susceptible to
affordability challenges. It focused on key affordability factors,
including over-indebted borrowers, poor credit card affordability
status and lower income customers in fuel
poverty.
●
A
£19 million post model adjustment was recognised as a
judgemental measure while additional loss data is accumulated on
the recently migrated Sainsbury's Bank lending
portfolio.
●
Commercial
& Institutional -
As at 31 December 2025, the post model adjustment for economic
uncertainty decreased to £149 million (2024 - £179
million). The reduction was driven by the retirement of COVID-19
post model adjustments which were associated with government scheme
lending (2024 - £29 million). The continued economic
uncertainty post model adjustments reflected downgrades to risk
profile that were applied to the sectors that were considered most
at risk from the current economic and geopolitical
headwinds.
●
The
remaining £30 million (2024 - £36 million) of post model
adjustments were for deferred model calibrations relating to
refinance risk and to mitigate the effect of operational timing
delays in the identification and flagging of a significant increase
in credit risk.
Risk and capital management continued
Credit risk - Banking activities
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
|
|
2025
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Loans - amortised cost and
FVOCI (1,2)
|
|
|
|
|||||||||||
|
Stage 1
|
196,325
|
17,552
|
138,769
|
34,005
|
386,651
|
|
196,325
|
14,140
|
2,355
|
84
|
|
3,412
|
136,414
|
33,921
|
|
Stage 2
|
19,113
|
1,115
|
18,289
|
65
|
38,582
|
|
19,113
|
337
|
32
|
18
|
|
778
|
18,257
|
47
|
|
Stage 3
|
2,231
|
348
|
2,102
|
2
|
4,683
|
|
2,231
|
260
|
44
|
2
|
|
88
|
2,058
|
-
|
|
Of which: individual
|
-
|
276
|
1,180
|
-
|
1,456
|
|
-
|
188
|
5
|
-
|
|
88
|
1,175
|
-
|
|
Of which: collective
|
2,231
|
72
|
922
|
2
|
3,227
|
|
2,231
|
72
|
39
|
2
|
|
-
|
883
|
-
|
|
Total
|
217,669
|
19,015
|
159,160
|
34,072
|
429,916
|
|
217,669
|
14,737
|
2,431
|
104
|
|
4,278
|
156,729
|
33,968
|
|
ECL provisions (3)
|
|
|||||||||||||
|
Stage 1
|
335
|
13
|
256
|
10
|
614
|
|
335
|
3
|
1
|
3
|
|
10
|
255
|
7
|
|
Stage 2
|
424
|
13
|
357
|
2
|
796
|
|
424
|
1
|
-
|
1
|
|
12
|
357
|
1
|
|
Stage 3
|
1,075
|
50
|
1,048
|
2
|
2,175
|
|
1,075
|
24
|
11
|
2
|
|
26
|
1,037
|
-
|
|
Of which: individual
|
-
|
50
|
548
|
-
|
598
|
|
-
|
24
|
5
|
-
|
|
26
|
543
|
-
|
|
Of which: collective
|
1,075
|
-
|
500
|
2
|
1,577
|
|
1,075
|
-
|
6
|
2
|
|
-
|
494
|
-
|
|
Total
|
1,834
|
76
|
1,661
|
14
|
3,585
|
|
1,834
|
28
|
12
|
6
|
|
48
|
1,649
|
8
|
|
ECL provisions
coverage (4)
|
|
|||||||||||||
|
Stage 1 (%)
|
0.17
|
0.07
|
0.18
|
0.03
|
0.16
|
|
0.17
|
0.02
|
0.04
|
3.57
|
|
0.29
|
0.19
|
0.02
|
|
Stage 2 (%)
|
2.22
|
1.17
|
1.95
|
3.08
|
2.06
|
|
2.22
|
0.30
|
-
|
5.56
|
|
1.54
|
1.96
|
2.13
|
|
Stage 3 (%)
|
48.18
|
14.37
|
49.86
|
100.00
|
46.44
|
|
48.18
|
9.23
|
25.00
|
100.00
|
|
29.55
|
50.39
|
-
|
|
Total
|
0.84
|
0.40
|
1.04
|
0.04
|
0.83
|
|
0.84
|
0.19
|
0.49
|
5.77
|
|
1.12
|
1.05
|
0.02
|
|
Impairment releases/losses
|
|
|||||||||||||
|
ECL (release)/charge (5)
|
437
|
10
|
225
|
(1)
|
671
|
|
437
|
5
|
1
|
7
|
|
5
|
224
|
(8)
|
|
Stage 1
|
(67)
|
(9)
|
(124)
|
(4)
|
(204)
|
|
(67)
|
(1)
|
(1)
|
4
|
|
(8)
|
(123)
|
(8)
|
|
Stage 2
|
295
|
9
|
116
|
1
|
421
|
|
295
|
2
|
1
|
1
|
|
7
|
115
|
-
|
|
Stage 3
|
209
|
10
|
233
|
2
|
454
|
|
209
|
4
|
1
|
2
|
|
6
|
232
|
-
|
|
Of which: individual
|
-
|
10
|
178
|
-
|
188
|
|
-
|
4
|
-
|
-
|
|
6
|
178
|
-
|
|
Of which: collective
|
209
|
-
|
55
|
2
|
266
|
|
209
|
-
|
1
|
2
|
|
-
|
54
|
-
|
|
Total
|
437
|
10
|
225
|
(1)
|
671
|
|
437
|
5
|
1
|
7
|
|
5
|
224
|
(8)
|
|
Amounts written-off
|
373
|
1
|
205
|
-
|
579
|
|
373
|
1
|
6
|
-
|
|
-
|
199
|
-
|
|
Of which: individual
|
-
|
1
|
136
|
-
|
137
|
|
-
|
1
|
-
|
-
|
|
-
|
136
|
-
|
|
Of which: collective
|
373
|
-
|
69
|
-
|
442
|
|
373
|
-
|
6
|
-
|
|
-
|
63
|
-
|
For the notes to this table refer to the following
page.
Risk and capital management continued
Credit risk - Banking activities continued
Segment analysis - portfolio summary continued
|
|
|
|
|
|
|
|
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
|
|
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
|
|
Impairment releases/losses
|
|
|||||||||||||
|
ECL (release)/charge (5)
|
282
|
(11)
|
98
|
(10)
|
359
|
|
282
|
1
|
1
|
-
|
|
(12)
|
97
|
(10)
|
|
Stage 1
|
(208)
|
(11)
|
(205)
|
(14)
|
(438)
|
|
(208)
|
(2)
|
(1)
|
-
|
|
(9)
|
(204)
|
(14)
|
|
Stage 2
|
278
|
(1)
|
79
|
4
|
360
|
|
278
|
2
|
1
|
-
|
|
(3)
|
78
|
4
|
|
Stage 3
|
212
|
1
|
224
|
-
|
437
|
|
212
|
1
|
1
|
-
|
|
-
|
223
|
-
|
|
Of which: individual
|
-
|
1
|
191
|
-
|
192
|
|
-
|
1
|
(1)
|
-
|
|
-
|
192
|
-
|
|
Of which: collective
|
212
|
-
|
33
|
-
|
245
|
|
212
|
-
|
2
|
-
|
|
-
|
31
|
-
|
|
Total
|
282
|
(11)
|
98
|
(10)
|
359
|
|
282
|
1
|
1
|
-
|
|
(12)
|
97
|
(10)
|
|
Amounts written-off
|
430
|
1
|
223
|
-
|
654
|
|
430
|
1
|
2
|
-
|
|
-
|
221
|
-
|
|
Of which: individual
|
-
|
1
|
143
|
-
|
144
|
|
-
|
1
|
-
|
-
|
|
-
|
143
|
-
|
|
Of which: collective
|
430
|
-
|
80
|
-
|
510
|
|
430
|
-
|
2
|
-
|
|
-
|
78
|
-
|
nm = not meaningful
(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 £84.1 billion (2024 - £91.8 billion) and
debt securities of £78.4 billion (2024 - £62.4
billion).
(2) Fair
value through other comprehensive income (FVOCI). Includes loans to
customers and banks.
(3) Includes
£6 million (2024 - £4 million) related to assets
classified as FVOCI and £0.1 billion (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 £6 million release (2024 - £12 million release) related
to other financial assets, of which £1 million charge (2024 -
£4 million release) related to assets classified as FVOCI and
includes a £3 million charge (2024 - £5 million release)
related to contingent liabilities.
Risk and capital management continued
Credit risk - Banking activities continued
Analysis of ECL provisions
The table below shows gross loans and ECL provision
analysis.
|
|
31 December
|
30 September
|
30 June
|
31 December
|
|
|
2025
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
£m
|
£m
|
|
Total loans
|
429,916
|
427,310
|
417,891
|
410,225
|
|
Personal
|
234,941
|
234,862
|
232,912
|
226,525
|
|
Non-personal
|
194,975
|
192,448
|
184,979
|
183,700
|
|
|
|
|
|
|
|
Value of loans in Stage 2
|
38,582
|
40,986
|
40,193
|
40,474
|
|
Personal
|
19,500
|
25,890
|
24,849
|
24,636
|
|
Non-personal
|
19,082
|
15,096
|
15,344
|
15,838
|
|
|
|
|
|
|
|
ECL provisions in Stage 2
|
796
|
755
|
741
|
787
|
|
Personal
|
426
|
415
|
426
|
429
|
|
Non-personal
|
370
|
340
|
315
|
358
|
|
|
|
|
|
|
|
ECL provision coverage in Stage 2
|
2.06%
|
1.84%
|
1.84%
|
1.94%
|
|
Personal
|
2.18%
|
1.60%
|
1.71%
|
1.74%
|
|
Non-personal
|
1.94%
|
2.25%
|
2.05%
|
2.26%
|
Condensed consolidated income statement
for the period ended 31 December 2025
|
|
Year
ended
|
|
Quarter
ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Interest receivable
|
25,698
|
25,187
|
|
6,543
|
6,482
|
6,453
|
|
Interest payable
|
(12,869)
|
(13,912)
|
|
(3,102)
|
(3,214)
|
(3,485)
|
|
Net interest income
|
12,829
|
11,275
|
|
3,441
|
3,268
|
2,968
|
|
Fees and commissions receivable
|
3,247
|
3,175
|
|
835
|
804
|
797
|
|
Fees and commissions payable
|
(733)
|
(708)
|
|
(181)
|
(184)
|
(179)
|
|
Trading income
|
1,112
|
825
|
|
138
|
399
|
218
|
|
Other operating income
|
186
|
136
|
|
91
|
45
|
21
|
|
Non-interest income
|
3,812
|
3,428
|
|
883
|
1,064
|
857
|
|
Total income
|
16,641
|
14,703
|
|
4,324
|
4,332
|
3,825
|
|
Staff costs
|
(4,174)
|
(4,061)
|
|
(981)
|
(1,064)
|
(949)
|
|
Premises and equipment
|
(1,291)
|
(1,211)
|
|
(385)
|
(319)
|
(348)
|
|
Other administrative expenses
|
(1,643)
|
(1,819)
|
|
(583)
|
(315)
|
(666)
|
|
Depreciation and amortisation
|
(1,154)
|
(1,058)
|
|
(299)
|
(298)
|
(304)
|
|
Operating expenses
|
(8,262)
|
(8,149)
|
|
(2,248)
|
(1,996)
|
(2,267)
|
|
Profit before impairment losses
|
8,379
|
6,554
|
|
2,076
|
2,336
|
1,558
|
|
Impairment losses
|
(671)
|
(359)
|
|
(136)
|
(153)
|
(66)
|
|
Operating profit before tax
|
7,708
|
6,195
|
|
1,940
|
2,183
|
1,492
|
|
Tax charge
|
(1,874)
|
(1,465)
|
|
(462)
|
(502)
|
(233)
|
|
Profit from continuing operations
|
5,834
|
4,730
|
|
1,478
|
1,681
|
1,259
|
|
Profit from discontinued operations, net of tax
|
-
|
81
|
|
-
|
-
|
69
|
|
Profit for the period
|
5,834
|
4,811
|
|
1,478
|
1,681
|
1,328
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Ordinary shareholders
|
5,479
|
4,519
|
|
1,393
|
1,598
|
1,248
|
|
Paid-in equity holders
|
352
|
283
|
|
84
|
82
|
81
|
|
Non-controlling interests
|
3
|
9
|
|
1
|
1
|
(1)
|
|
|
5,834
|
4,811
|
|
1,478
|
1,681
|
1,328
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share - continuing operations
|
68.0p
|
52.5p
|
|
17.4p
|
19.8p
|
14.5p
|
|
Earnings per ordinary share - discontinued operations
|
-
|
1.0p
|
|
-
|
-
|
0.8p
|
|
Total earnings per share attributable to ordinary shareholders -
basic
|
68.0p
|
53.5p
|
|
17.4p
|
19.8p
|
15.3p
|
|
Earnings per ordinary share - diluted continuing
operations
|
67.4p
|
52.1p
|
|
17.2p
|
19.6p
|
14.4p
|
|
Earnings per ordinary share - diluted discontinued
operations
|
-
|
1.0p
|
|
-
|
-
|
0.8p
|
|
Total earnings per share attributable to ordinary shareholders -
diluted
|
67.4p
|
53.1p
|
|
17.2p
|
19.6p
|
15.2p
|
Condensed consolidated statement of comprehensive
income
for the period ended 31 December 2025
|
|
Year
ended
|
|
Quarter
ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Profit for the period
|
5,834
|
4,811
|
|
1,478
|
1,681
|
1,328
|
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
|
|
|
|
|
Remeasurement of retirement benefit schemes
|
31
|
(166)
|
|
11
|
11
|
(74)
|
|
Changes in fair value of financial liabilities designated at fair
value through profit or loss (FVTPL) due to changes
|
|
|
|
|
|
|
|
in credit
risk
|
(17)
|
(33)
|
|
(6)
|
(10)
|
(8)
|
|
FVOCI financial assets
|
40
|
6
|
|
(14)
|
5
|
(10)
|
|
Tax
|
(16)
|
59
|
|
(6)
|
(8)
|
20
|
|
|
38
|
(134)
|
|
(15)
|
(2)
|
(72)
|
|
Items that will be reclassified subsequently to profit or loss when
specific conditions are met:
|
|
|
|
|
|
|
|
FVOCI financial assets
|
142
|
(25)
|
|
66
|
13
|
(46)
|
|
Cash flow hedges (1)
|
968
|
622
|
|
190
|
120
|
(110)
|
|
Currency translation
|
(13)
|
5
|
|
5
|
77
|
124
|
|
Tax
|
(297)
|
(178)
|
|
(73)
|
(32)
|
43
|
|
|
800
|
424
|
|
188
|
178
|
11
|
|
Other comprehensive income/(losses) after tax
|
838
|
290
|
|
173
|
176
|
(61)
|
|
Total comprehensive income for the period
|
6,672
|
5,101
|
|
1,651
|
1,857
|
1,267
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Ordinary shareholders
|
6,317
|
4,809
|
|
1,566
|
1,774
|
1,187
|
|
Paid-in equity holders
|
352
|
283
|
|
84
|
82
|
81
|
|
Non-controlling interests
|
3
|
9
|
|
1
|
1
|
(1)
|
|
|
6,672
|
5,101
|
|
1,651
|
1,857
|
1,26
|
|
(1)
|
Refer
to footnote 4 and 5 of the consolidated statement of changes in
equity.
|
Condensed consolidated balance sheet
as at 31 December 2025
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
£m
|
|
Assets
|
|
|
|
|
Cash and balances at central banks
|
85,182
|
84,686
|
92,994
|
|
Trading assets
|
46,537
|
56,856
|
48,917
|
|
Derivatives
|
60,789
|
61,119
|
78,406
|
|
Settlement balances
|
645
|
12,331
|
2,085
|
|
Loans to banks - amortised cost
|
6,958
|
8,005
|
6,030
|
|
Loans to customers - amortised cost
|
418,881
|
415,274
|
400,326
|
|
Other financial assets
|
79,770
|
71,595
|
63,243
|
|
Intangible assets
|
7,292
|
7,477
|
7,588
|
|
Other assets
|
8,499
|
8,292
|
8,396
|
|
Total assets
|
714,553
|
725,635
|
707,985
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Bank deposits
|
44,092
|
44,962
|
31,452
|
|
Customer deposits
|
442,998
|
435,490
|
433,490
|
|
Settlement balances
|
942
|
9,271
|
1,729
|
|
Trading liabilities
|
49,022
|
58,402
|
54,714
|
|
Derivatives
|
53,974
|
54,114
|
72,082
|
|
Other financial liabilities
|
67,599
|
67,634
|
61,087
|
|
Subordinated liabilities
|
6,123
|
6,136
|
6,136
|
|
Notes in circulation
|
3,164
|
3,340
|
3,316
|
|
Other liabilities
|
4,026
|
3,905
|
4,601
|
|
Total liabilities
|
671,940
|
683,254
|
668,607
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Ordinary shareholders' interests
|
38,028
|
36,570
|
34,070
|
|
Other owners' interests
|
4,571
|
5,792
|
5,280
|
|
Owners' equity
|
42,599
|
42,362
|
39,350
|
|
Non-controlling interests
|
14
|
19
|
28
|
|
Total equity
|
42,613
|
42,381
|
39,378
|
|
|
|
|
|
|
Total liabilities and equity
|
714,553
|
725,635
|
707,985
|
Condensed consolidated statement of changes in equity
for the period ended 31 December 2025
|
|
Share
|
|
Other
|
|
Other reserves
|
Total
|
Non
|
|
|||
|
|
capital and
|
Paid-in
|
statutory
|
Retained
|
|
Cash flow
|
Foreign
|
|
owners'
|
controlling
|
Total
|
|
|
share premium
|
equity
|
reserves (3)
|
earnings
|
Fair value
|
hedging (4,5)
|
exchange
|
Merger
|
equity
|
interests
|
equity
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
At 1 January 2025
|
10,133
|
5,280
|
2,350
|
11,426
|
(103)
|
(1,443)
|
826
|
10,881
|
39,350
|
28
|
39,378
|
|
Profit attributable to ordinary shareholders
|
|
||||||||||
|
and other equity
owners
|
|
5,831
|
|
5,831
|
3
|
5,834
|
|||||
|
|
|
||||||||||
|
Other comprehensive income
|
|
||||||||||
|
Realised gains in period on FVOCI equity shares
|
|
25
|
(25)
|
|
|
|
-
|
|
-
|
||
|
Remeasurement of retirement benefit schemes
|
|
31
|
|
|
|
|
31
|
|
31
|
||
|
Changes in fair value of credit in financial
liabilities
|
|
||||||||||
|
designated at FVTPL due to own
credit risk
|
|
(17)
|
|
|
|
|
(17)
|
|
(17)
|
||
|
Unrealised gains
|
|
174
|
|
|
|
174
|
|
174
|
|||
|
Amounts recognised in equity
|
|
69
|
|
|
69
|
|
69
|
||||
|
Retranslation of net assets
|
|
51
|
|
51
|
|
51
|
|||||
|
Gains on hedges of net assets
|
|
(92)
|
|
(92)
|
|
(92)
|
|||||
|
Reclassification of OCI to P&L
|
|
8
|
899
|
28
|
|
935
|
|
935
|
|||
|
Tax
|
|
(15)
|
(41)
|
(277)
|
20
|
|
(313)
|
|
(313)
|
||
|
Total comprehensive income/(loss)
|
|
5,855
|
116
|
691
|
7
|
-
|
6,669
|
3
|
6,672
|
||
|
|
|
||||||||||
|
Transactions with owners
|
|
||||||||||
|
Ordinary share dividends paid
|
|
|
|
(2,018)
|
|
|
|
|
(2,018)
|
(6)
|
(2,024)
|
|
Redemption of paid-in equity
|
|
(1,957)
|
|
(22)
|
|
|
|
|
(1,979)
|
-
|
(1,979)
|
|
Paid-in equity dividends paid
|
|
|
|
(352)
|
|
|
|
|
(352)
|
|
(352)
|
|
Shares repurchased during the period (1,6)
|
(112)
|
|
112
|
(579)
|
|
|
|
|
(579)
|
|
(579)
|
|
Securities issued in the year (2)
|
-
|
1,248
|
|
-
|
|
|
|
|
1,248
|
|
1,248
|
|
Purchase of non-controlling interest
|
|
|
|
(10)
|
|
|
|
|
(10)
|
(11)
|
(21)
|
|
Employee share schemes
|
|
88
|
|
88
|
|
88
|
|||||
|
Shares vested under employee share schemes
|
|
151
|
|
151
|
|
151
|
|||||
|
Share-based payments
|
|
31
|
|
31
|
|
31
|
|||||
|
Own shares acquired
|
|
|
-
|
|
|
|
|
|
-
|
|
-
|
|
At 31 December 2025
|
10,021
|
4,571
|
2,613
|
14,419
|
13
|
(752)
|
833
|
10,881
|
42,599
|
14
|
42,613
|
For the notes to this table refer to the following
page.
Condensed consolidated statement of changes in equity for the
period ended 31 December 2025 continued
|
|
Share
|
|
Other
|
|
Other reserves
|
Total
|
Non
|
|
|
|||
|
|
capital and
|
Paid-in
|
statutory
|
Retained
|
|
Cash flow
|
Foreign
|
|
owners'
|
controlling
|
Total
|
|
|
|
share premium
|
equity
|
reserves (3)
|
earnings
|
Fair value
|
hedging (4,5)
|
exchange
|
Merger
|
equity
|
interests
|
equity
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
At 1 January 2024
|
10,844
|
3,890
|
2,004
|
10,645
|
(49)
|
(1,899)
|
841
|
10,881
|
37,157
|
31
|
37,188
|
|
|
Profit/(loss) attributable to ordinary shareholders
|
|
|
||||||||||
|
and other equity
owners
|
|
|
||||||||||
|
-
continuing operations
|
|
4,721
|
|
4,721
|
9
|
4,730
|
|
|||||
|
-
discontinued operations
|
|
81
|
|
81
|
|
81
|
|
|||||
|
|
|
|
||||||||||
|
Other comprehensive income
|
|
|
||||||||||
|
Realised gains in period on FVOCI equity shares
|
|
54
|
(54)
|
|
-
|
|
-
|
|
||||
|
Remeasurement of retirement benefit schemes
|
|
(166)
|
|
(166)
|
|
(166)
|
|
|||||
|
Changes in fair value of credit in financial
liabilities
|
|
|
||||||||||
|
designated at FVTPL due to own
credit risk
|
|
(33)
|
|
(33)
|
|
(33)
|
|
|||||
|
Unrealised gains
|
|
(40)
|
|
(40)
|
|
(40)
|
|
|||||
|
Amounts recognised in equity
|
|
(872)
|
|
(872)
|
|
(872)
|
|
|||||
|
Retranslation of net assets
|
|
(194)
|
|
(194)
|
|
(194)
|
|
|||||
|
Gains on hedges of net assets
|
|
122
|
|
122
|
|
122
|
|
|||||
|
Amount transferred from equity to earnings
|
|
21
|
1,494
|
77
|
|
1,592
|
|
1,592
|
|
|||
|
Tax
|
|
48
|
19
|
(166)
|
(20)
|
|
(119)
|
|
(119)
|
|
||
|
Total comprehensive income/(loss)
|
|
4,705
|
(54)
|
456
|
(15)
|
-
|
5,092
|
9
|
5,101
|
|
||
|
|
|
|
||||||||||
|
Transactions with owners
|
|
|
||||||||||
|
Ordinary share dividends paid
|
|
(1,505)
|
|
(1,505)
|
(12)
|
(1,517)
|
|
|||||
|
Paid-in equity dividends
|
|
(283)
|
|
(283)
|
|
(283)
|
|
|||||
|
Shares repurchased during the period (1,6)
|
(711)
|
|
711
|
(2,176)
|
|
(2,176)
|
|
(2,176)
|
|
|||
|
Securities issued in the year (2)
|
|
1,390
|
|
1,390
|
|
1,390
|
|
|||||
|
Employee share schemes
|
|
17
|
|
17
|
|
17
|
|
|||||
|
Shares vested under employees share schemes
|
|
175
|
|
175
|
|
175
|
|
|||||
|
Share-based payments
|
|
23
|
|
23
|
|
23
|
|
|||||
|
Own shares acquired
|
|
(540)
|
|
(540)
|
|
(540)
|
|
|||||
|
At 31 December 2024
|
10,133
|
5,280
|
2,350
|
11,426
|
(103)
|
(1,443)
|
826
|
10,881
|
39,350
|
28
|
39,378
|
|
|
(1)
As part of the On Market Share Buyback Programmes NatWest Group plc
repurchased and cancelled 105.5 million shares (2024 - 173.3
million, 2023 - 460.3 million, of which 2.3 million were settled in
January 2024) of which 1.4 million shares were settled in January
2026. The total consideration for these shares excluding fees was
£586.3 million (2024 - £450.9 million, 2023 -
£1,151.7 million of which 4.9 million shares were settled in
January 2024) of which 9 million was settled in January 2026. The
nominal value of the share cancellations was transferred to the
capital redemption reserve.
(2)
The issuance above is after netting of issuance fees of £2.8
million (2024 - £2.4 million), and the associated tax credit
of £0.7 million (2024 - £0.7 million).
(3)
Other statutory reserves consist of Capital redemption reserves of
£3,330 million (2024 - £3,218 million, 2023 - £2,507
million) and Own shares held reserves of £717 million (2024 -
£868 million, 2023 - £503 million).
(4)
The change in the cash flow hedging reserve is driven by realised
accrued interest transferred into the income statement and a
decrease in swap rates in the year, where the portfolio of swaps
are net receive fixed from an interest rate risk
perspective.
(5) As referred in Note 13, the amount transferred
from equity to the income statement is mostly recorded within net
interest income mainly within loans to banks and customers -
amortised cost, balances at central banks , bank deposits and
customer deposits.
(6)
In June 2024, there was an agreement to buy 392.4 million ordinary
shares of the Company from His Majesty's Treasury (HM Treasury) at
316.2 pence per share for total consideration of £1.2 billion.
NatWest Group cancelled 222.4 million of the purchased ordinary
shares, amounting to £706.9 million excluding fees and held
the remaining 170.0 million shares as Own Shares Held, amounting to
£540.2 million excluding fees. The nominal value of the share
cancellation was transferred to the capital redemption reserve.
There were no repurchases in 2025.
|
||||||||||||
|
|
|
|||||||||||
Condensed consolidated cash flow statement
for the period ended 31 December 2025
|
|
Year ended
|
|
|
|
31 December
|
31 December
|
|
2025
|
2024
|
|
|
|
£m
|
£m
|
|
Cash flows from operating activities
|
|
|
|
Operating profit before tax from continuing
operations
|
7,708
|
6,195
|
|
Operating profit before tax from discontinued
operations
|
-
|
81
|
|
Adjustments for non-cash and other items
|
184
|
4,365
|
|
Net cash flows from trading activities
|
7,892
|
10,641
|
|
Changes in operating assets and liabilities
|
972
|
(7,267)
|
|
Net cash flows from operating activities before tax
|
8,864
|
3,374
|
|
Income taxes paid
|
(1,792)
|
(1,602)
|
|
Net cash flows from operating activities
|
7,072
|
1,772
|
|
Net cash flows from investing activities
|
(13,765)
|
(12,699)
|
|
Net cash flows from financing activities
|
(3,494)
|
(1,886)
|
|
Effects of exchange rate changes on cash and cash
equivalents
|
775
|
(1,166)
|
|
Net decrease in cash and cash equivalents
|
(9,412)
|
(13,979)
|
|
Cash and cash equivalents at beginning of period
|
104,845
|
118,824
|
|
Cash and cash equivalents at end of period
|
95,433
|
104,845
|
Notes
1. Presentation of condensed consolidated financial
statements
The condensed consolidated financial statements should be read in
conjunction with NatWest Group plc 2025 Annual Report and Accounts.
The critical and material accounting policies are the same as those
applied in the consolidated financial statements.
The directors have prepared the condensed consolidated financial
statements on a going concern basis after assessing the principal
risks, forecasts, projections and other relevant evidence over the
twelve months from the date they are approved.
2. Tax
Analysis of the tax charge for the year
The tax charge comprises current and deferred tax in respect of
profits and losses recognised or originating in the income
statement. Tax on items originating outside the income statement is
charged to other comprehensive income or direct to equity (as
appropriate) and is therefore not reflected in the table below.
Current tax is tax payable or recoverable in respect of the taxable
profit or loss for the year and any adjustments to tax payable in
prior years.
|
|
2025
|
2024
|
2023
|
|
Continuing operations
|
£m
|
£m
|
£m
|
|
Current tax
|
|
|
|
|
Charge for the year
|
(1,511)
|
(1,415)
|
(1,373)
|
|
Over/(under) provision in respect of prior years
|
110
|
(145)
|
(123)
|
|
|
(1,401)
|
(1,560)
|
(1,496)
|
|
Deferred tax
|
|
|
|
|
Charge for the year
|
(548)
|
(343)
|
(281)
|
|
Net increase in the carrying value of deferred tax assets in
respect of losses
|
119
|
428
|
385
|
|
(Under)/over provision in respect of prior years
|
(44)
|
10
|
(42)
|
|
Tax charge for the year
|
(1,874)
|
(1,465)
|
(1,434)
|
Judgement: tax contingencies
NatWest Group's corporate income tax charge and its provisions for
corporate income taxes necessarily involve a degree of estimation
and judgement. The tax treatment of some transactions is uncertain
and tax computations are yet to be agreed with the relevant tax
authorities. Any difference between the final outcome and the
amounts provided will affect current and deferred income tax
charges in the period when the matter is resolved. NatWest Group
recognises anticipated tax liabilities based on all available
evidence and, where appropriate, in the light of external
advice.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable in
respect of temporary differences where the carrying amount of an
asset or liability differs for accounting and tax purposes.
Deferred tax liabilities reflect the expected amount of tax payable
in the future on these temporary differences. Deferred tax assets
reflect the expected amount of tax recoverable in the future on
these differences. The net deferred tax asset recognised by the
NatWest Group is shown below. The reduction of deferred tax asset
is primarily attributable to reduced cash flow hedge liabilities,
and is taken in other comprehensive income as part of the movements
in cash flow reserves.
Analysis of deferred tax
|
|
|
2025
|
2024
|
|
|
|
£m
|
£m
|
|
Deferred tax asset
|
|
1,252
|
1,876
|
|
Deferred tax liability
|
|
(104)
|
(99)
|
|
Net deferred tax asset
|
|
1,148
|
1,777
|
Notes continued
3. 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. Note 25 in the NatWest
Group plc 2025 Annual Report and Accounts, issued on 13 February
2026 and available at natwestgroup.com (Note 25) discusses the
Matters in which NatWest Group is currently involved and material
developments. Other than the Matters discussed in Note 25, no
member of NatWest Group is or has been involved in governmental,
legal, or regulatory proceedings (including those which are pending
or threatened) that are expected to be material, individually or in
aggregate. Recent developments in the Matters identified in Note 25
that have occurred since the Q3 2025 Interim Management Statement
was issued on 24 October 2025 include, but are not limited to,
those set out below.
Litigation
London Interbank Offered Rate (LIBOR) and other rates
litigation
NatWest Group plc and certain other members of NatWest Group,
including NWM Plc, are defendants in a number of claims pending in
the United States District Court for the Southern District of New
York (SDNY) with respect to the setting of USD LIBOR. The
complainants allege that certain members of NatWest Group and other
panel banks violated various federal laws, including the US
commodities and antitrust laws, and state statutory and common law,
as well as contracts, by manipulating LIBOR and prices of
LIBOR-based derivatives in various markets through various
means.
The co-ordinated proceeding in the SDNY relating to USD LIBOR now
includes one remaining class action, which is on behalf of persons
who purchased LIBOR-linked instruments from defendants and bonds
issued by defendants, as well as two non-class
actions.
On 25 September 2025, the SDNY granted summary judgment to the
defendants on the issue of liability and dismissed all claims in
both the class action and the non-class actions. The decision is
being appealed in the United States Court of Appeals for the Second
Circuit (US Court of Appeals).
Two other IBOR-related class actions involving NWM Plc, concerning
alleged manipulation of Euribor and Pound Sterling LIBOR, were
previously dismissed by the SDNY for various reasons.
On 22 August 2025, the US Court of Appeal reversed the SDNY's
decision in the Euribor case, reinstating claims against NWM Plc.
That case has therefore returned to the SDNY for further
proceedings.
On 15 September 2025, the US Court of Appeals affirmed the SDNY's
dismissal of the Pound Sterling LIBOR case.
Foreign exchange litigation
NatWest Group plc, NWM Plc and/or NWMSI are defendants in several
cases relating to NWM Plc's foreign exchange (FX)
business.
In July and December 2019, two separate applications seeking
opt-out collective proceedings orders were filed in the UK
Competition Appeal Tribunal (CAT) against NatWest Group plc, NWM
Plc and other banks.
Both applications were brought on behalf of persons who, between 18
December 2007 and 31 January 2013, entered into a relevant FX spot
or outright forward transaction in the European Economic Area with
a relevant financial institution or on an electronic communications
network.
In March 2022, the CAT declined to certify either application as
collective proceedings on an opt-out basis. This decision was
appealed by the applicants and was the subject of an application
for judicial review. The CAT, in its judgment, allowed the
applicants three months in which to reformulate their claims as
opt-in claims.
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 two
competing applicants can proceed as class representative and
dismissed the application for judicial review of the CAT's
decision. The other applicant has discontinued its claim and
withdrawn from the proceedings. The banks sought permission to
appeal the Court of Appeal decision directly to the UK Supreme
Court, which was granted in April 2024. The appeal was heard in
April 2025.
In December 2025, the UK Supreme Court reinstated the CAT's
decision to refuse the application for a collective proceedings
order on an opt-out basis.
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.
Three swap execution facilities (TeraExchange, Javelin, and trueEx)
allege that they would have successfully established exchange-like
trading of interest rate swaps if the defendants had not unlawfully
conspired to prevent that from happening through boycotts and other
means. Discovery is complete though expert discovery is
ongoing.
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.
Notes continued
3. Litigation and regulatory matters continued
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.
In May 2025, the US Court of Appeals affirmed a January 2024
decision by the SDNY which barred 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.
The case in New Mexico (which had been stayed pending the appeal of
the SDNY's decision) has now resumed. The defendants have filed a
motion to dismiss, which is pending.
Odd lot corporate bond trading antitrust
litigation
On 2 September 2025, the SDNY dismissed 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 plaintiffs did not appeal the SDNY's
decision and the case is now closed.
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 six others, as a defendant in respect of losses
allegedly incurred by 1MDB. It is claimed that Coutts & Co Ltd
is liable as a constructive trustee for having dishonestly assisted
the directors of 1MDB in the breach of their fiduciary duties by
failing (amongst other alleged claims) to undertake due diligence
in relation to a customer of Coutts & Co Ltd, through which
funds totalling c.US$1 billion were received and paid out between
2009 and 2011. 1MDB sought the return of that amount plus interest.
Coutts & Co Ltd filed an application in January 2023
challenging the validity of service and the Malaysian court's
jurisdiction to hear the claim, and a hearing took place in
February 2024.
In March 2024, the court granted that application. 1MDB appealed
that decision and a prior decision by the court not to allow them
to discontinue their claim. Both appeals were scheduled to be heard
in November 2025 but did not progress as 1MDB withdrew their appeal
and discontinued the claim.
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.
Oracle Securities Litigation
On 14 January 2026, a class action complaint was filed in New York
state court against Oracle Corporation and the underwriters of a
September 2025 bond offering by Oracle, including
NWMSI. The
complaint alleges that the offering documents for the bonds were
materially misleading because they failed to disclose that, at the
time of the bond offering, Oracle was already planning to further
increase its debt to fund its Artificial Intelligence
infrastructure expansion.
The complaint seeks damages under the U.S. Securities Act of 1933
(the 'Securities Act'), as amended, on behalf of those who
purchased Oracle's bonds. In connection with the bond offering,
Oracle agreed to indemnify the underwriters against certain
potential liabilities, including disclosure-based liability under
the Securities Act.
Tandanor Litigation in Argentina
In October 2012, a claim was filed in the District Court of Buenos
Aires by 'Argentina Talleres Navales Dársena Norte Sociedad
Anónima Comercial, Industrial y Naviera' ("Tandanor") (a naval
repair business) against what is now the Representative Office of
The Royal Bank of Scotland NV, Argentine Branch (in liquidation)
(the "Representative Office") and eleven private individuals. (The
Representative Office inherited the claim from Banco Holandés
Unido, Argentine Branch.) The
claim, which was unquantified, sought damages for alleged
fraudulent conduct during Tandanor's privatisation, which concluded
in 1993. The Representative Office's participation in the
privatisation was 2.9%. The Argentine Ministry of Defence joined
Tandanor as a plaintiff in 2014.
The claim was dismissed on limitation grounds in 2018, and the
plaintiffs were unsuccessful in subsequent appeals. In November
2024, however, the Argentine Supreme Court set the appealed
judgments aside and, in June 2025, the Argentine Federal Court of
Appeal returned the case to the Argentine Federal District Court
for further consideration. In December 2025, the plaintiffs filed
an update quantifying damages at USD1.1bn. The Representative
Office continues to defend the claim and has requested a
hearing.
Regulatory matters
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, which is expected to conclude in H1
2026.
4. 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, 12 months after the UK
Government shareholding in NatWest Group plc fell below
20%.
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.
In March 2024 Bank of England Levy replaced the Cash Ratio Deposit
scheme. Members of NatWest Group that are UK authorised
institutions having eligible liabilities greater than £600
million are required to pay the levy. They also have access to Bank
of England reserve accounts: sterling current accounts that earn
interest at the Bank of England Base rate.
NatWest Group provides guarantees for certain subsidiaries,
liabilities to the Bank of England.
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 2025 are included in NatWest Group plc 2025
Annual Report and Accounts.
5. Dividends
The company has announced that the directors have recommended a
final dividend of £1.8 billion, or 23.0 pence per ordinary
share (2024 - £1.2 billion, or 15.5 pence per ordinary share)
subject to shareholder approval at the Annual General Meeting on 28
April 2026. If approved, payment will be made on 5 May 2026 to
shareholders on the register at the close of business on 20 March
2026. The ex-dividend date will be 19 March 2026.
6. Post balance sheet events
On 9 February 2026, NatWest Group plc announced that it had reached
an agreement to acquire Evelyn Partners for an enterprise value of
£2.7 billion. Evelyn Partners is a leading integrated wealth
management and financial planning firm with approximately £69
billion of assets under management and administration. The
transaction is expected to complete in the summer of 2026, subject
to regulatory approval.
As part of the ongoing on-market share buyback programme, NatWest
Group plc has repurchased and cancelled a further 23.99 million
shares since December 2025 for a total consideration (excluding
fees) of £156.76 million.
Other
than as disclosed in this document, there have been no significant
events between 31 December 2025 and the date of approval of this
announcement which would require a change to, or additional
disclosure, in the announcement.
Statement of directors' responsibilities
The responsibility statement below has been prepared in connection
with NatWest Group's full Annual Report and Accounts for the year
ended 31 December 2025.
We, the directors listed below, confirm that to the best of our
knowledge:
●
The financial
statements, prepared in accordance with UK-adopted International
Accounting Standards and International Financial Reporting
Standards as issued by the International Accounting Standards
Board, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the company and the
undertakings included in the consolidation taken as a whole;
and
●
The
Strategic report and Directors' report (incorporating the Business
review) include a fair review of the development and performance of
the business and the position of the company and the undertakings
included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they
face.
By order of the Board
|
Richard
Haythornthwaite
|
John-Paul
Thwaite
|
Katie
Murray
|
|
Chair
|
Group
Chief Executive Officer
|
Group
Chief Financial Officer
|
12 February 2026
Board of directors
|
Chair
|
Executive directors
|
Non-executive directors
|
|
Richard
Haythornthwaite
|
John-Paul
Thwaite
Katie
Murray
|
Joshua
Critchley
Roisin
Donnelly
Patrick
Flynn
Geeta
Gopalan
Yasmin
Jetha
Stuart
Lewis
Gillian
Whitehead
Lena
Wilson
|
Presentation of information
'Parent company' refers to NatWest Group plc and 'NatWest Group',
'Group' or 'we' refers to NatWest Group plc and its subsidiaries.
The term 'NWH Group' refers to NatWest Holdings Limited (NWH) 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.' refers to NatWest
Markets N.V. 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.
Effective from Q2 2025, the reportable segment Private Banking was
renamed Private Banking & Wealth Management. This does not
change the financial results of Private Banking & Wealth
Management or the consolidated financial results of NatWest
Group.
NatWest Group publishes its financial statements in pounds sterling
('£' or 'sterling'). The abbreviations '£m' and
'£bn' represent millions and thousands of millions of pounds
sterling, respectively, and references to 'pence' or 'p' represent
pence where the amounts are denominated in pounds sterling ('GBP').
Reference to 'dollars' or '$' are to United States of America
('US') dollars. The abbreviations '$m' and '$bn' represent millions
and thousands of millions of dollars, respectively. The
abbreviation '€' represents the 'euro', and the abbreviations
'€m' and '€bn' represent millions and thousands of
millions of euros, respectively.
Statutory accounts
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 ('the Act'). The statutory accounts for the
year ended 31 December 2024 have been filed with the Registrar of
Companies and those for the year ended 31 December 2025 will be
filed with the Registrar of Companies following the Annual General
Meeting. The report of the auditor on those statutory accounts was
unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under section 498(2) or
(3) of the Act.
Contacts
|
Analyst
enquiries:
|
Claire
Kane, Investor Relations
|
+44 (0)
20 7672 1758
|
|
Media
enquiries:
|
NatWest Group Press
Office
|
+44 (0) 7557 316 540
|
|
|
Management presentation
|
Fixed income presentation
|
|
Date:
|
13
February 2026
|
13
February 2026
|
|
Time:
|
9am UK
time
|
1.30pm
UK time
|
|
Zoom ID:
|
925
7859 6754
|
991
2189 5911
|
Available on natwestgroup.com/results
●
Announcement
and slides.
●
NatWest
Group plc 2025 Annual Report and Accounts.
●
A
financial supplement containing income statement, balance sheet and
segment performance for the four quarters ended 31 December
2025.
●
NatWest
Group and NWH Group Pillar 3 Report.
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 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', '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, capital generation
pre-distributions, customer assets and liabilities growth rate,
cost income ratio, 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 ambitions, targets and metrics, including in
relation to financed emissions and initiatives to transition to a
net zero economy, such as our climate and transition finance
activities.
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.
Forward-looking statements continued
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 NatWest Group
plc's 2025 Annual Report and Accounts on Form 20-F, 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,
protectionist policies, 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, the competitive environment; and the transfer of its
EU corporate portfolio); financial resilience risk (including in
respect of: NatWest Group's ability to meet targets and to make
discretionary capital distributions; counterparty and borrower
risk; liquidity and funding risks; prudential regulatory
requirements for capital; reductions in the credit ratings; 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 requirements of
regulatory stress tests and 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); 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;
artificial intelligence; complex IT systems; attracting, retaining
and developing diverse senior management and skilled personnel;
NatWest Group's risk management framework; and reputational risk);
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); and climate and
sustainability-related risks (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).
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-Generally Accepted
Accounting Principles (GAAP) financial measures in accordance with
the 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.
Caution on climate and sustainability-related metrics
The processes we have adopted to define, collect and report data on
our climate and sustainability related performance, as well as the
associated metrics and disclosures in this document, are not
subject to the same formal processes adopted for financial
reporting in accordance with established reporting standards. They
involve a higher degree of judgement, assumptions and estimates,
including in relation to the classification of climate and
sustainability related (including social, sustainability,
sustainability linked, green, climate and transition) funding,
financing and facilitation activities, than is required for our
reporting of historical financial information prepared in
accordance with established reporting standards. As a result,
climate and sustainability-related disclosures may be amended,
updated or restated over time. However, NatWest Group does not
undertake to restate prior disclosures except where required by
applicable law or regulation, even if subsequently available data
or methodologies differ from those used at the time of the original
disclosure.
For completeness in relation to uncertainties and limitations,
refer to the section on 'Financed Emissions data limitations' on
page 42 of NatWest Group plc 2025 Climate Transition Plan Report
('CTPR') and the section on 'Caution about climate metrics and data
required for climate reporting' on page 70 - 72 of the CTPR. Also
refer to the 'Climate and sustainability-related risk factors' on
pages 420-422 and the 'Additional cautionary statement regarding
climate and sustainability-related data, metrics and
forward-looking statements' on pages 429-431 of the NatWest Group
plc 2025 Annual Report and Accounts.
Caution about sustainability-related funding, financing and
facilitation
Sustainability-related (including social, sustainability,
sustainability-linked, green, climate, transition) funding,
financing and facilitation currently represents only a relatively
small proportion of NatWest Group's overall funding, financing and
facilitation activities. Accordingly, disclosures relating to
sustainability-related funding, financing and facilitation should
be read in the context of NatWest Group's broader balance sheet,
risk profile and funding, financing and facilitation activities,
and should not be interpreted as indicative of NatWest Group's
overall funding, financing or facilitation strategy.
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), as issued by
the International Accounting Standards Board (IASB). This document
contains a number of non-IFRS measures, also known as 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 the basis
of calculation for 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 42.
|
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 15-19 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. 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 29 for components
of calculation.
|
Funded assets is calculated as total assets less derivative assets.
This measure allows review of balance sheet trends excluding 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 44.
|
Loan:deposit
ratio (excl. repos and reverse repos) is calculated as net loans to
customers - 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, calculated as net
loans to customers - amortised cost divided by customer
deposits.
|
|
NatWest Group Return on Tangible Equity
Refer
to table 7. NatWest Group Return on Tangible Equity on page
44.
|
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, calculated as profit attributable to ordinary shareholders
divided by average total equity.
|
Non-IFRS financial measures continued
|
Measure
|
Description
|
|
Net interest margin and average interest earning
assets
Refer
to Segment performance on pages 15-19 for components of
calculation.
|
Net
interest margin is net interest income as a percentage of average
interest earning assets (IEA).
Average
IEA are average IEA of the banking business of NatWest Group and
primarily consists of cash and balances at central banks, loans to
banks - amortised cost, loans to customers - amortised cost and
other financial assets. It excludes trading balances and assets in
treasury repurchase agreements that have not been derecognised.
Average IEA shows the average asset base generating interest over
the period.
|
|
Net loans to customers excluding central items
Refer
to Segment performance on pages 15-19 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. 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 43.
|
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.
|
|
Segment return on equity
Refer
to table 8. Segment return on equity on page 45.
|
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 43.
|
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 customer assets and liabilities (CAL)
Refer
to table 6. Total customer assets and liabilities (CAL) on page
44.
|
CAL
comprises customers deposits and gross loans to customers
(amortised cost), across the Retail Banking, Private Banking &
Wealth Management and Commercial & Institutional segments. For
the Private Banking & Wealth Management segment, CAL also
includes AUMA, with an adjustment to deduct investment cash to
avoid double counting, as investment cash is recognised within both
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
42.
|
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.
|
Non-IFRS financial measures continued
1. Total income excluding notable items
|
|
Year ended
|
|
Quarter ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
|
|
|
|
|
|
Total income
|
16,641
|
14,703
|
|
4,324
|
4,332
|
3,825
|
|
Less notable items:
|
|
|
|
|
|
|
|
Commercial & Institutional
|
|
|
|
|
|
|
|
Own credit adjustments
(OCA)
|
1
|
(9)
|
|
(2)
|
-
|
(4)
|
|
Dividend received on
restructuring of a strategic investment
|
51
|
-
|
|
51
|
-
|
-
|
|
Central items & other
|
|
|
|
|
|
|
|
Share of gains/(losses) of
associate - Business Growth Fund
|
70
|
21
|
|
15
|
41
|
(1)
|
|
Interest and foreign exchange
management derivatives not in hedge accounting
relationships
|
185
|
150
|
|
17
|
162
|
19
|
|
Foreign exchange recycling
(losses)/gains
|
(27)
|
(76)
|
|
10
|
(37)
|
(30)
|
|
Loss on reclassification to
disposal groups under IFRS 5
|
(39)
|
-
|
|
(39)
|
-
|
-
|
|
Tax interest on prior
periods
|
-
|
(31)
|
|
-
|
-
|
(31)
|
|
|
241
|
55
|
|
52
|
166
|
(47)
|
|
Total income excluding notable items
|
16,400
|
14,648
|
|
4,272
|
4,166
|
3,872
|
2. Cost:income ratio (excl. litigation and conduct)
|
|
Year ended
|
|
Quarter ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Continuing operations
|
|
|
|
|
|
|
|
Operating expenses
|
8,262
|
8,149
|
|
2,248
|
1,996
|
2,267
|
|
Less litigation and conduct costs
|
(167)
|
(295)
|
|
(37)
|
(12)
|
(153)
|
|
Other operating expenses
|
8,095
|
7,854
|
|
2,211
|
1,984
|
2,114
|
|
|
|
|
|
|
|
|
|
Total income
|
16,641
|
14,703
|
|
4,324
|
4,332
|
3,825
|
|
|
|
|
|
|
|
|
|
Cost:income ratio
|
49.6%
|
55.4%
|
|
52.0%
|
46.1%
|
59.3%
|
|
Cost:income ratio (excl. litigation and conduct)
|
48.6%
|
53.4%
|
|
51.1%
|
45.8%
|
55.3%
|
Non-IFRS financial measures continued
3. Tangible net asset value (TNAV) per ordinary share
|
|
As at
|
||
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2025
|
2024
|
|
Ordinary shareholders' interests (£m)
|
38,028
|
36,570
|
34,070
|
|
Less intangible assets (£m)
|
(7,292)
|
(7,477)
|
(7,588)
|
|
Tangible equity (£m)
|
30,736
|
29,093
|
26,482
|
|
|
|
|
|
|
Ordinary shares in issue (millions) (1)
|
7,995
|
8,031
|
8,043
|
|
|
|
|
|
|
NAV per ordinary share (pence)
|
476p
|
455p
|
424p
|
|
TNAV per ordinary share (pence)
|
384p
|
362p
|
329p
|
(1) The
number of ordinary shares in issue excludes own shares
held.
4. Operating expenses excluding litigation and conduct
|
|
Year ended
|
|
Quarter ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Other operating expenses
|
|
|
|
|
|
|
|
Staff expenses
|
4,110
|
3,997
|
|
966
|
1,045
|
938
|
|
Premises and equipment
|
1,285
|
1,211
|
|
383
|
318
|
348
|
|
Other administrative expenses
|
1,546
|
1,588
|
|
563
|
323
|
524
|
|
Depreciation and amortisation
|
1,154
|
1,058
|
|
299
|
298
|
304
|
|
Total other operating expenses
|
8,095
|
7,854
|
|
2,211
|
1,984
|
2,114
|
|
|
|
|
|
|
|
|
|
Litigation and conduct costs
|
|
|
|
|
|
|
|
Staff expenses
|
64
|
64
|
|
15
|
19
|
11
|
|
Premises and equipment
|
6
|
-
|
|
2
|
1
|
-
|
|
Other administrative expenses
|
97
|
231
|
|
20
|
(8)
|
142
|
|
Total litigation and conduct costs
|
167
|
295
|
|
37
|
12
|
153
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
8,262
|
8,149
|
|
2,248
|
1,996
|
2,267
|
|
Operating expenses excluding litigation and conduct
|
8,095
|
7,854
|
|
2,211
|
1,984
|
2,11
|
Non-IFRS financial measures continued
5. Loan:deposit ratio (excl. repos and reverse repos)
|
|
As at
|
||
|
|
31 December
|
30 September
|
31 December
|
|
|
2025
|
2025
|
2024
|
|
|
£m
|
£m
|
£m
|
|
Loans to customers - amortised cost
|
418,881
|
415,274
|
400,326
|
|
Less reverse repos
|
(32,817)
|
(33,604)
|
(34,846)
|
|
Loans to customers - amortised cost (excl. reverse
repos)
|
386,064
|
381,670
|
365,480
|
|
Customer deposits
|
442,998
|
435,490
|
433,490
|
|
Less repos
|
(1,796)
|
(1,412)
|
(1,363)
|
|
Customer deposits (excl. repos)
|
441,202
|
434,078
|
432,127
|
|
Loan:deposit ratio (%)
|
95%
|
95%
|
92%
|
|
Loan:deposit ratio (excl. repos and reverse repos) (%)
|
88%
|
88%
|
85%
|
6. Total customer assets and liabilities (CAL)
|
|
As at
|
|||||||||||||
|
|
31
December 2025
|
|
30 September
2025
|
|
31 December
2024
|
|||||||||
|
|
|
Private Banking
|
|
|
|
Private Banking
|
|
|
|
Private Banking
|
|
|
||
|
|
Retail
|
& Wealth
|
Commercial
|
|
|
Retail
|
& Wealth
|
Commercial
|
|
|
Retail
|
& Wealth
|
Commercial
|
|
|
|
Banking
|
Management
|
& Institutional
|
Total
|
|
Banking
|
Management
|
& Institutional
|
Total
|
|
Banking
|
Management
|
& Institutional
|
Total
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Gross loans and advances to customers
|
217.9
|
19.0
|
155.8
|
392.7
|
|
217.9
|
18.9
|
151.3
|
388.1
|
|
210.1
|
18.3
|
143.4
|
371.8
|
|
Customer deposits
|
202.6
|
42.7
|
196.4
|
441.7
|
|
195.8
|
40.6
|
198.3
|
434.7
|
|
194.8
|
42.4
|
194.1
|
431.3
|
|
Assets under management and
|
|
|
||||||||||||
|
administration
(AUMA)
|
-
|
58.5
|
-
|
58.5
|
|
-
|
56.0
|
-
|
56.0
|
|
-
|
48.9
|
-
|
48.9
|
|
Less investment cash included in both customer
|
|
|
||||||||||||
|
deposits and
AUMA
|
-
|
(1.2)
|
-
|
(1.2)
|
|
-
|
(1.2)
|
-
|
(1.2)
|
|
-
|
(1.1)
|
-
|
(1.1)
|
|
CAL
|
420.5
|
119.0
|
352.2
|
891.7
|
|
413.7
|
114.3
|
349.6
|
877.6
|
|
404.9
|
108.5
|
337.5
|
850.9
|
7. NatWest Group Return on Tangible Equity
|
|
|
Year ended
|
|
Quarter ended
|
||||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
||
|
|
2025
|
2024
|
|
2025
|
2025
|
2024
|
||
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
||
|
Profit attributable to ordinary shareholders
|
|
5,479
|
4,519
|
|
1,393
|
1,598
|
1,248
|
|
|
Annualised profit attributable to ordinary
shareholders
|
|
|
|
|
5,572
|
6,392
|
4,992
|
|
|
Average total equity
|
|
41,506
|
38,018
|
|
42,877
|
41,667
|
38,915
|
|
|
Adjustment for average other owners' equity and intangible
assets
|
|
(12,952)
|
(12,226)
|
|
(12,431)
|
(12,954)
|
(12,703)
|
|
|
Adjusted total tangible equity
|
|
28,554
|
25,792
|
|
30,446
|
28,713
|
26,212
|
|
|
Return on equity
|
|
13.2%
|
11.9%
|
|
13.0%
|
15.3%
|
12.8%
|
|
|
Return on Tangible Equity
|
|
19.2%
|
17.5%
|
|
18.3%
|
22.3%
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS financial measures continued
8. Segment return on equity
|
|
|
Year ended 31 December 2025
|
|
Year ended 31 December 2024
|
||||
|
|
|
Private Banking
|
|
|
Private Banking
|
|
||
|
|
Retail
|
& Wealth
|
Commercial
|
|
Retail
|
& Wealth
|
Commercial
|
|
|
|
Banking
|
Management
|
& Institutional
|
|
Banking
|
Management
|
& Institutional
|
|
|
Operating profit (£m)
|
|
3,121
|
394
|
4,064
|
|
2,431
|
264
|
3,585
|
|
Paid-in equity cost allocation (£m)
|
|
(99)
|
(17)
|
(237)
|
|
(79)
|
(18)
|
(183)
|
|
Adjustment for tax (£m)
|
|
(846)
|
(106)
|
(957)
|
|
(659)
|
(69)
|
(851)
|
|
Adjusted attributable profit (£m)
|
|
2,176
|
271
|
2,870
|
|
1,693
|
177
|
2,551
|
|
Average RWAe (£bn)
|
|
68.9
|
11.3
|
108.1
|
|
63.4
|
11.1
|
107.0
|
|
Equity factor
|
|
12.8%
|
11.1%
|
13.9%
|
|
13.4%
|
11.2%
|
13.8%
|
|
Average notional equity (£bn)
|
|
8.8
|
1.3
|
15.0
|
|
8.5
|
1.2
|
14.8
|
|
Return on equity
|
|
24.7%
|
21.7%
|
19.1%
|
|
19.9%
|
14.2%
|
17.2%
|
|
|
Quarter ended 31 December 2025
|
|
Quarter ended 30 September 2025
|
|
Quarter ended 31 December 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)
|
786
|
107
|
1,039
|
|
850
|
108
|
1,041
|
|
677
|
75
|
861
|
|
Paid-in equity cost allocation (£m)
|
(24)
|
(4)
|
(56)
|
|
(26)
|
(5)
|
(52)
|
|
(23)
|
(5)
|
(53)
|
|
Adjustment for tax (£m)
|
(213)
|
(29)
|
(246)
|
|
(231)
|
(29)
|
(247)
|
|
(183)
|
(20)
|
(202)
|
|
Adjusted attributable profit (£m)
|
549
|
74
|
737
|
|
593
|
74
|
742
|
|
471
|
50
|
606
|
|
Annualised adjusted attributable profit (£m)
|
2,195
|
297
|
2,949
|
|
2,373
|
297
|
2,967
|
|
1,884
|
202
|
2,424
|
|
Average RWAe (£bn)
|
69.7
|
11.3
|
109.3
|
|
70.2
|
11.4
|
108.2
|
|
65.6
|
11.0
|
106.0
|
|
Equity factor
|
12.8%
|
11.1%
|
13.9%
|
|
12.8%
|
11.1%
|
13.9%
|
|
13.4%
|
11.2%
|
13.8%
|
|
Average notional equity (£bn)
|
8.9
|
1.3
|
15.2
|
|
9.0
|
1.3
|
15.0
|
|
8.8
|
1.2
|
14.6
|
|
Return on equity
|
24.6%
|
23.6%
|
19.4%
|
|
26.4%
|
23.4%
|
19.7%
|
|
21.4%
|
16.3%
|
16.6%
|
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 client assets under management (AUM) and client assets
under administration (AUA) serviced through the Private Banking
& Wealth Management segment and not recognised on NatWest
Group's balance sheet. AUM comprise assets where the investment
management is undertaken by Private Banking & Wealth Management
on behalf of customers of the Private Banking & Wealth
Management, Retail Banking and Commercial & Institutional
segments. AUA comprise i) third party assets held on an
execution-only basis in custody by Private Banking & Wealth
Management, Retail Banking and Commercial & Institutional for
their customers, for which the execution services are supported by
Private Banking & Wealth Management ii) AUA of Cushon, acquired
on 1 June 2023, which are supported by Private Banking & Wealth
Management and held and managed by third parties. This measure is
tracked and reported as the amount of funds that we manage or
administer, and directly impacts the level of investment income
that we receive.
|
|
AUMA
income
|
AUMA
income includes investment income which reflects an ongoing fee as
percentage of assets and transactional income related to investment
services comprised of one-off fees for advice services, trading and
exchange services, protection and alternative investing services.
AUMA is a core driver of non-interest income, especially with
respect to ongoing investment income and this measure provides a
means of reporting the income earned on AUMA.
|
|
AUMA
net flows
|
AUMA
net flows represents assets under management (AUM net flows) and
assets under administration (AUA net flows). AUMA net flows is
reported and tracked to monitor the business performance of new
business inflows and management of existing client withdrawals
across Private Banking & Wealth Management, Retail Banking and
Commercial & Institutional.
|
|
Capital
generation pre-distributions
|
Capital
generation pre-distributions refers to the change in the CET1 ratio
in the period, before distributions to ordinary shareholders. It
reflects the capital generated through business activities and all
other movements, including attributable profit for the period,
impacts from acquisitions and disposals, and risk-weighted asset
(RWA) changes, prior to the deduction of ordinary shareholder
distributions such as ordinary dividends and share buybacks. It is
used to show the capital generated in the period that is available
for deployment in the business and distribution to
shareholders.
|
|
Climate
and transition finance
|
The
climate and transition finance target enables NatWest Group to
quantify the level of financing and facilitation provided by
NatWest Group that could support customers in achieving their
climate and/or transition ambitions, through lending and
underwriting activities. The climate and transition framework,
available on natwestgroup.com, underpins the target to provide
£200 billion in climate and transition finance between 1 July
2025 and the end of 2030.
|
|
Loan
impairment rate
|
Loan
impairment rate is the annualised loan impairment charge divided by
gross customer loans. This measure is used to assess the credit
quality of the loan book.
|
|
Third
party rates
|
Third party customer asset rate is calculated as annualised
interest receivable on third-party loans to customers as a
percentage of third-party loans to customers. This excludes assets
of disposal groups, intragroup items, loans to banks and liquid
asset portfolios. Third party customer funding rate reflects
interest payable or receivable on third-party customer deposits,
including interest bearing and non- interest bearing customer
deposits. Intragroup items, bank deposits, debt securities in issue
and subordinated liabilities are excluded for customer funding rate
calculation.
|
|
Wholesale
funding
|
Wholesale funding comprises deposits by banks (excluding repos),
debt securities in issue and subordinated liabilities. Funding risk
is the risk of not maintaining a diversified, stable and
cost-effective funding base. The disclosure of wholesale funding
highlights the extent of our diversification and how we mitigate
funding risk.
|
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:
|
13
February 2026
|
|
|
By:
|
/s/
Mark Stevens
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name:
|
Mark
Stevens
|
|
|
|
|
|
|
Title:
|
Assistant
Secretary
|
|
FAQ
How did NatWest Group (NWG) perform financially in 2025?
NatWest Group delivered stronger results in 2025, with total income of £16.6 billion, up 13.2% year over year. Operating profit before tax rose to £7.7 billion and profit attributable to ordinary shareholders reached £5.5 billion, as earnings per share increased to 68.0p.
What were NatWest Group (NWG)’s key profitability metrics in 2025?
Profitability improved meaningfully, with Return on Tangible Equity rising to 19.2% from 17.5% and net interest margin increasing to 2.34%. These gains reflected higher deposit margins, balance sheet growth across all segments, and tight cost control that reduced the cost-to-income ratio excluding litigation and conduct.
What capital and liquidity position did NatWest Group (NWG) report for 2025?
NatWest reported a strong capital and liquidity profile, with a CET1 ratio of 14.0%, total capital ratio of 19.3% and UK leverage ratio of 4.8%. The average Liquidity Coverage Ratio stood at 147%, while risk-weighted assets increased to £193.3 billion alongside franchise lending growth.
How much will NatWest Group (NWG) return to shareholders for 2025?
For 2025, NatWest proposes total dividends of 32.5 pence per share, up 51% versus 2024, including a 23.0p final dividend. It also plans a £750 million share buyback in the first half of 2026, bringing total distributions deducted from capital in 2025 to £4.1 billion.
What guidance did NatWest Group (NWG) give for 2026 performance?
Management expects 2026 total income excluding notable items between £17.2–17.6 billion, operating expenses around £8.2 billion excluding litigation and conduct, a loan impairment rate below 25 basis points, Return on Tangible Equity above 17%, and capital generation pre-distributions around 200 basis points.
What are NatWest Group (NWG)’s medium-term targets to 2028?
By 2028, NatWest targets customer assets and liabilities growing at a compound rate above 4% from end-2025, a cost-to-income ratio below 45% excluding litigation and conduct, Return on Tangible Equity greater than 18%, and capital generation pre-distributions above 200 basis points annually.
How did NatWest Group’s loan book and deposits change in 2025?
Net loans to customers grew to £418.9 billion, up 4.6% year over year, driven by mortgage growth and higher commercial balances. Customer deposits reached £443.0 billion, with increases across Retail, Private Banking & Wealth Management, and Commercial & Institutional segments, supporting balance sheet expansion.
Natwest Group Plc