Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
2 May 2025
Commission file number: 001-10306
Form 6-K
NatWest Group plc
250 Bishopsgate
London
EC2M 4AA
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
This report on Form 6-K, except for any information contained on any websites linked or documents referred to in this report, shall be deemed incorporated by reference into the company’s Registration Statement on Form F-3 (File No. 333-284008) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
Forward-looking statements
Cautionary statement regarding forward-looking statements
Certain sections in this document contain ‘forward-looking statements’ as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements with respect to NatWest Group’s financial condition, results of operations and business, including its strategic priorities, financial, investment and capital targets, and ESG targets, commitments and ambitions described herein. Statements that are not historical facts, including statements about NatWest Group’s beliefs and expectations, are forward-looking statements. Words such as ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘commit’, ‘believe’, ‘should’, ‘intend’, ‘will’, ‘plan’, ‘could’, ‘probability’, ‘risk’, ‘target’, ‘goal’, ‘objective’, ‘may’, ‘endeavour’, ‘outlook’, ‘optimistic’, ‘prospects’ and similar expressions or variations on these expressions are intended to identify forward-looking statements. In particular, this document includes forward-looking targets and guidance relating to financial performance measures, such as income growth, operating expense, RoTE, ROE, discretionary capital distribution targets, impairment loss rates, balance sheet reduction (including the reduction of RWAs), CET1 ratio (and key drivers of the CET1 ratio including timing, impact and details), Pillar 2 and other regulatory buffer requirements and MREL and non-financial performance measures, such as NatWest Group’s initial area of focus, climate and sustainability-related performance ambitions, targets and metrics, including in relation to initiatives to transition to a net zero economy, Climate and Sustainable Funding and Financing (CSFF) and financed emissions.
Limitations inherent to forward-looking statements
These statements are based on current plans, expectations, estimates, targets and projections, and are subject to significant inherent risks, uncertainties and other factors, both external and relating to NatWest Group’s strategy or operations, which may result in NatWest Group being unable to achieve the current plans, expectations, estimates, targets, projections and other anticipated outcomes expressed or implied by such forward-looking statements. In addition, certain of these disclosures are dependent on choices relying on key model characteristics and assumptions and are subject to various limitations, including assumptions and estimates made by management. By their nature, certain of these disclosures are only estimates and, as a result, actual future results, gains or losses could differ materially from those that have been estimated. Accordingly, undue reliance should not be placed on these statements. The forward-looking statements contained in this document speak only as of the date we make them and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein, whether to reflect any change in our expectations with regard thereto, any change in events, conditions or circumstances on which any such statement is based, or otherwise, except to the extent legally required.
Important factors that could affect the actual outcome of the forward-looking statements
We caution you that a large number of important factors could adversely affect our results or our ability to implement our strategy, cause us to fail to meet our targets, predictions, expectations and other anticipated outcomes or affect the accuracy of forward-looking statements described in this document. These factors include, but are not limited to, those set forth in the risk factors and the other uncertainties described in NatWest Group plc’s 2024 Annual Report 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, and geopolitical developments); changes in interest rates and foreign currency exchange rates; and HM Treasury’s ownership of NatWest Group plc); business change and execution risk (including in respect of the implementation of NatWest Group’s strategy; future acquisitions and divestments, and the transfer of its Western European corporate portfolio); financial resilience risk (including in respect of: NatWest Group’s ability to meet targets and to make discretionary capital distributions; the competitive environment; counterparty and borrower risk; liquidity and funding risks; prudential regulatory requirements for capital and MREL; reductions in the credit ratings; the requirements of regulatory stress tests; model risk; sensitivity to accounting policies, judgments, estimates and assumptions (and the economic, climate, competitive and other forward looking information affecting those judgments, estimates and assumptions); changes in applicable accounting standards; the value or effectiveness of credit protection; the adequacy of NatWest Group’s future assessments by the Prudential Regulation Authority and the Bank of England; and the application of UK statutory stabilisation or resolution powers); climate and sustainability risk (including in respect of: risks relating to climate change and sustainability-related risks; both the execution and reputational risk relating to NatWest Group’s climate change-related strategy, ambitions, targets and transition plan; climate and sustainability-related data and model risk; increasing levels of climate, environmental, human rights and sustainability-related regulation and oversight; and increasing; climate, environmental and sustainability-related litigation, enforcement proceedings investigations and conduct risk); operational and IT resilience risk (including in respect of: operational risks (including reliance on third party suppliers); cyberattacks; the accuracy and effective use of data; complex IT systems; attracting, retaining and developing diverse senior management and skilled personnel; NatWest Group’s risk management framework; and reputational risk); and legal, regulatory and conduct risk (including in respect of: the impact of substantial regulation and oversight; the outcome of legal, regulatory and governmental actions, investigations and remedial undertakings; and changes in tax legislation or failure to generate future taxable profits).
| NatWest Group - Form 6-K Q1 2025 Results | 2 |
Forward-looking statements continued
Climate and sustainability-related disclosures
Climate and sustainability-related disclosures in this document are not measures within the scope of International Financial Reporting Standards (‘IFRS’), use a greater number and level of judgments, assumptions and estimates, including with respect to the classification of climate and sustainable funding and financing activities, than our reporting of historical financial information in accordance with IFRS. These judgments, assumptions and estimates are highly likely to change materially over time, and, when coupled with the longer time frames used in these disclosures, make any assessment of materiality inherently uncertain. In addition, our climate risk analysis, our ambition to be net zero across our financed emissions, assets under management and operational value chain by 2050 and the implementation of our climate transition plan remain under development, and the data underlying our analysis and strategy remain subject to evolution over time. The process we have adopted to define, gather and report data on our performance on climate and sustainability-related measures is not subject to the formal processes adopted for financial reporting in accordance with IFRS and there are currently limited industry standards or globally recognised established practices for measuring and defining climate and sustainability-related metrics. As a result, we expect that certain climate and sustainability-related disclosures made in this document are likely to be amended, updated, recalculated or restated in the future. Refer to the cautionary statement in the section entitled ‘Climate and sustainability-related and other forward-looking statements and metrics’ of the NatWest Group 2024 Sustainability Report.
Cautionary statement regarding Non-IFRS financial measures and APMs RBS\Finance\0000012\Secret
NatWest Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and IFRS. This document may contain financial measures and ratios not specifically defined under Generally Accepted Accounting Principles (‘GAAP’) or IFRS (‘Non-IFRS’) and/or alternative performance measures (‘APMs’) as defined in European Securities and Markets Authority (‘ESMA’) guidelines. Non-IFRS measures and 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. Non-IFRS measures and 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 Non-IFRS measures and/or APMs included in this document, are not measures within the scope of IFRS, are based on a number of assumptions that are subject to uncertainties and change, and are not a substitute for IFRS measures.
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.
| NatWest Group - Form 6-K Q1 2025 Results | 3 |
Introduction
Presentation of information
Unless otherwise specified herein, ‘Parent company’ refers to NatWest Group plc, and ‘NatWest Group’, ‘Group’ or ‘we’ refers to NatWest Group plc and its subsidiaries. The term ‘NWH Group’ refers to NatWest Holdings Limited (‘NWH Limited’) and its subsidiary and associated undertakings. The term ‘NWM Group’ refers to NatWest Markets Plc (‘NWM Plc’) and its subsidiary and associated undertakings. The term ‘NWM N.V.’ refers to NatWest Markets N.V. The term ‘NWM N.V. Group’ refers to NatWest Markets N.V. and its subsidiary and associated undertakings. The term ‘NWMSI’ refers to NatWest Markets Securities, Inc. The term ‘RBS plc’ refers to The Royal Bank of Scotland plc. The term ‘NWB Plc’ refers to National Westminster Bank Plc. The term ‘RBSI Ltd’ refers to The Royal Bank of Scotland International Limited.
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 amounts are denominated in pounds sterling (‘GBP’). Reference to ‘dollars’ or ‘$’ are to United States of America (‘US’) dollars. The abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of dollars, respectively. The abbreviation ‘€’ represents the ‘euro’, and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of euros, respectively.
To aid readability, this document contains references to EU legislative and regulatory provisions in effect in the UK before 1 January 2021 that have now been implemented in UK domestic law. These references should be read and construed as including references to the applicable UK implementation measures with effect from 1 January 2021.
Any information contained on websites linked or reports referenced in this interim results report for the three-month period ended 31 March 2025 on Form 6-K is for information only and will not be deemed to be incorporated by reference herein.
Non-IFRS financial information
NatWest Group prepares its financial statements in accordance with UK-adopted IAS and IFRS. This document contains a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-GAAP financial measures in accordance with the Securities and Exchange Commission (SEC) regulations. These measures are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison.
The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include a calculation of metrics that are used throughout the banking industry.
These non-IFRS measures are not a substitute for IFRS measures and a reconciliation to the closest IFRS measure is presented where appropriate. For details of the basis of preparation and reconciliation where appropriate refer to appendix ‘Non-IFRS financial measures’ on page 38.
| NatWest Group - Form 6-K Q1 2025 Results | 4 |
Inside this report
| NatWest Group - Form 6-K Q1 2025 Results | 5 |
Chief Executive, Paul Thwaite, commented:
“Our strong first quarter performance demonstrates the positive momentum in our business as we deliver against clear strategic priorities, and we now expect to be at the upper end of our income and returns guidance for 2025. This performance is underpinned by continued growth across our three businesses and the support we provide to over 19 million customers, whether that is buying a home, growing a business or investing their money.
In the face of increased global economic uncertainty, our customers remain resilient and we saw good levels of activity through Q1 2025. The strength of our balance sheet means we are well placed to help our customers navigate any challenges, whilst also investing in our business and delivering returns to shareholders. At a time when there is a clear intent to deliver economic growth, NatWest Group is able to play an important role, shaping our future as a vital and trusted partner to our customers and to the UK itself.”
Strong Q1 2025 performance
| - | Attributable profit of £1,252 million, with earnings per share of 15.5 pence, return on equity of 12.4% and a return on tangible equity (RoTE) of 18.5% driving capital generation pre-distributions of 49 basis points for the quarter. |
| - | Q1 2025 total income of £3,980 million was £155 million, or 4.1%, higher than Q4 2024 and was £505 million, or 14.5%, higher than Q1 2024. Total income excluding notable items(1) of £3,952 million was £80 million, or 2.1%, higher than Q4 2024, due to deposit margin expansion and increased trading income partially offset by the impact of two fewer days in the quarter, and was £538 million higher than Q1 2024 principally reflecting deposit margin expansion, balance growth and increased trading income. |
| - | Net interest margin (NIM) of 2.27% was 8 basis points higher than Q4 2024 principally reflecting deposit margin expansion. |
| - | Q1 2025 operating expenses of £1,979 million were £288 million, or 12.7%, lower than Q4 2024 and were £73 million, or 3.6%, lower than Q1 2024. Other operating expenses were £179 million, or 8.5%, lower than Q4 2024, reflecting seasonally higher costs in Q4 2024 and lower strategic costs relating to property exits, and were £93 million, or 4.6%, lower than Q1 2024 due to the timing of property exits and ongoing business transformation. |
| - | A net impairment charge in Q1 2025 of £189 million, or 19 basis points of gross customer loans, with levels of default stable. This compares to a net impairment charge in Q4 2024 of £66 million, or 7 basis points of gross customer loans. |
Robust balance sheet with strong capital and liquidity levels
| - | Net loans to customers of £398.8 billion at Q1 2025 were £1.5 billion, or 0.4%, lower than Q4 2024. Net loans to customers excluding central items increased by £3.4 billion, or 0.9%, in the quarter to £371.9 billion largely driven by mortgages and growth in Corporate & Institutions. |
| - | In the quarter we achieved our target to provide £100 billion climate and sustainable funding and financing between 1 July 2021 and the end of 2025. |
| - | Customer deposits of £434.6 billion at Q1 2025 were £1.1 billion, or 0.3%, higher than Q4 2024. Customer deposits excluding central items increased by £2.1 billion, or 0.5%, in the quarter due to growth in Commercial & Institutional and Retail Banking, partially offset by a reduction in Private Banking due to seasonal tax payments. |
| - | The liquidity coverage ratio (LCR) of 150%, representing £54.2 billion headroom above 100% minimum requirement, remained in line with Q4 2024 as increased lending was partially offset by increased issuance. |
| - | NAV per share increased by 17 pence in Q1 2025 to 441 pence. TNAV per share increased by 18 pence in the quarter to 347 pence primarily reflecting the attributable profit for the period. |
| - | Common Equity Tier 1 (CET1) ratio of 13.8% was 20 basis points higher than 31 December 2024. |
| - | RWAs increased by £3.8 billion in the quarter to £187.0 billion largely reflecting the annual operational risk update of £2.2 billion and lending growth partially offset by £1.2 billion of RWA management actions. |
Outlook(2)
The following statements are based on our current expectations for interest rates and economic conditions. We recognise increased global economic uncertainty and will monitor and react to market conditions and refine our internal forecasts as the economic position evolves.
In 2025 we expect:
| - | to achieve a return on tangible equity at the upper end of our previously guided range of 15-16%. |
| - | income excluding notable items to be at the upper end of our previously guided range of £15.2-15.7 billion. |
| - | Group operating costs, excluding litigation and conduct costs, to be around £8.1 billion including £0.1 billion of one-time integration costs. |
| - | our loan impairment rate to be below 20 basis points. |
| - | RWAs to be in the range of £190-195 billion at the end of 2025, dependent on final CRD IV model outcomes. |
In 2027 we expect:
| - | to achieve a return on tangible equity for the Group of greater than 15%. |
Capital:
| - | we continue to target a CET1 ratio in the range of 13-14%. |
| - | we expect to pay ordinary dividends of around 50% of attributable profit from 2025 and will consider buybacks as appropriate. |
| (1) | Refer to the Non-IFRS financial measures appendix for details of notable items. |
| (2) | The guidance, targets, expectations and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the NatWest Group plc Risk Factors in the 2024 Annual Report on Form 20-F issued on 21 February 2025. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement. |
| NatWest Group - Form 6-K Q1 2025 Results | 6 |
Business performance summary
nm = not meaningful
For the notes to this table refer to the following page.
| NatWest Group - Form 6-K Q1 2025 Results | 7 |
Business performance summary continued
| As at | |||||
| 31 March | 31 December | 31 March | |||
| 2025 | 2024 | 2024 | |||
| £bn | £bn | Variance | £bn | Variance | |
| Balance sheet | |||||
| Total assets | 710.0 | 708.0 | 0.3% | 697.5 | 1.8% |
| Loans to customers - amortised cost | 398.8 | 400.3 | (0.4%) | 378.0 | 5.5% |
| Loans to customers excluding central items (1,3) | 371.9 | 368.5 | 0.9% | 357.0 | 4.2% |
| Loans to customers and banks - amortised cost and FVOCI | 409.5 | 410.2 | (0.2%) | 387.7 | 5.6% |
| Total impairment provisions (4) | 3.5 | 3.4 | 2.9% | 3.6 | (2.8%) |
| Expected credit loss (ECL) coverage ratio | 0.86% | 0.83% | 3bps | 0.94% | (8)bps |
| Assets under management and administration (AUMA) (1) | 48.5 | 48.9 | (0.8%) | 43.1 | 12.5% |
| Customer deposits | 434.6 | 433.5 | 0.3% | 432.8 | 0.4% |
| Customer deposits excluding central items (1,3) | 433.4 | 431.3 | 0.5% | 420.0 | 3.2% |
| Liquidity and funding | |||||
| Liquidity coverage ratio (LCR) | 150% | 150% | - | 151% | (1%) |
| Liquidity portfolio | 222 | 222 | - | 229 | (3.1%) |
| Net stable funding ratio (NSFR) | 136% | 137% | (1%) | 136% | - |
| Loan:deposit ratio (excl. repos and reverse repos) (1) | 85% | 85% | - | 84% | 1% |
| Total wholesale funding | 87 | 86 | 1.2% | 87 | - |
| Short-term wholesale funding | 33 | 33 | - | 31 | 6.5% |
| Capital and leverage | |||||
| Common Equity Tier 1 (CET1) ratio (5) | 13.8% | 13.6% | 20bps | 13.5% | 30bps |
| Total capital ratio (5) | 20.6% | 19.7% | 90bps | 18.8% | 180bps |
| Pro forma CET1 ratio (excl. foreseeable items) (6) | 14.8% | 14.3% | 50bps | 14.3% | 50bps |
| Risk-weighted assets (RWAs) | 187.0 | 183.2 | 2.1% | 186.3 | 0.4% |
| UK leverage ratio | 5.2% | 5.0% | 0.2% | 5.1% | 0.1% |
| Tangible net asset value (TNAV) per ordinary share (1,7) | 347p | 329p | 18p | 302p | 45p |
| Number of ordinary shares in issue (millions) (7) | 8,067 | 8,043 | 0.3% | 8,727 | (7.6%) |
| (1) | Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. |
| (2) | NatWest Group uses its climate and sustainable funding and financing inclusion (CSFFI) criteria to determine the assets, activities and companies that are eligible to be included within its climate and sustainable funding and financing target. This includes provision of committed (on and off-balance sheet) funding and financing, including provision of services for underwriting issuances and private placements. Climate and sustainable funding and financing, as defined in our CSFFI criteria, represents only a relatively small proportion of our overall funding and financing. |
| (3) | Central items includes treasury repo activity. |
| (4) | Includes £0.1 billion relating to off-balance sheet exposures (31 December 2024 – £0.1 billion; 31 March 2024 - £0.1 billion). |
| (5) | Refer to the Capital, liquidity and funding risk section for details of the basis of preparation. |
| (6) | The pro forma CET1 ratio at 31 March 2025 excludes foreseeable item of £1,875 million for ordinary dividends. (31 December 2024 excludes foreseeable items of £1,249 million for ordinary dividends; 31 March 2024 excludes foreseeable items of £1,633 million: £1,380 million for ordinary dividends and £253 million foreseeable charges). |
| (7) | The number of ordinary shares in issue excludes own shares held. |
| NatWest Group - Form 6-K Q1 2025 Results | 8 |
Chief Financial Officer’s review
We delivered a strong performance in the first quarter of 2025 with an operating profit of £1,812 million, return on equity of 12.4% and RoTE of 18.5%. Total income of £3,980 million in Q1 2025 increased by £155 million compared to Q4 2024. Total income excluding notable items increased £80 million compared with Q4 2024 and we continue to see stable levels of default across our portfolio, with a net impairment charge of 19 basis points of gross customer loans.
Net loans to customers of £398.8 billion decreased by £1.5 billion in Q1 2025. Net loans to customers excluding central items increased £3.4 billion in the quarter, largely in Retail Banking mortgages and Corporate & Institutions, and customer deposits excluding central items were £2.1 billion higher despite the impact of elevated tax payments. We remain in a strong liquidity position, with an LCR of 150%, representing £54.2 billion headroom above 100% minimum requirement. Our CET1 ratio remains within our targeted range at 13.8%. The UK Government’s stake has reduced to less than 2%.
Strong Q1 2025 financial performance
| - | Total income increased by 4.1% to £3,980 million compared with Q4 2024 and was 14.5% higher than Q1 2024. Total income excluding notable items of £3,952 million was £80 million, or 2.1%, higher than Q4 2024 due to deposit margin expansion, lending growth and strong customer activity in trading income partially offset by the impact of two fewer days in the quarter, and was £538 million higher than Q1 2024 principally reflecting deposit margin expansion and balance growth and strong customer activity in trading income. |
| - | NIM of 2.27% was 8 basis points higher than Q4 2024 principally reflecting deposit margin expansion. |
| - | Total operating expenses were £288 million lower than Q4 2024 and £73 million lower than Q1 2024. Other operating expenses were £179 million, or 8.5%, lower than Q4 2024, reflecting seasonally higher costs in Q4 2024 and lower strategic costs relating to property exits, and included one-time integration costs of £7 million. Other operating expenses were £93 million, or 4.6%, lower than Q1 2024 due to the timing of property exits and ongoing business transformation. We remain committed to deliver on our full year cost guidance (1). |
| - | A net impairment charge of £189 million, or 19 basis points of gross customer loans, with stable levels of default across the portfolio. Compared with Q4 2024, our ECL provision increased by £0.1 billion to £3.5 billion and our ECL coverage ratio has increased from 0.83% to 0.86%. We retain post model adjustments of £0.3 billion related to economic uncertainty, or 8.7% of total impairment provisions. Whilst we remain comfortable with the strong credit performance of our book, we continue to assess this position. |
| - | As a result, we are pleased to report an attributable profit for Q1 2025 of £1,252 million, with earnings per share of 15.5 pence, return on equity of 12.4% and a RoTE of 18.5%. |
Robust balance sheet with strong capital and liquidity levels
| - | Net loans to customers of £398.8 billion decreased by £1.5 billion in Q1 2025. Net loans to customers excluding central items increased by £3.4 billion in the quarter to £371.9 billion primarily reflecting a £2.0 billion increase in Retail Banking mortgage balances and a £1.2 billion increase in Commercial & Institutional, driven by growth in Corporate & Institutions, partly offset by £0.4 billion of UK Government scheme repayments. |
| - | Customer deposits of £434.6 billion increased by £1.1 billion in Q1 2025. Customer deposits excluding central items increased by £2.1 billion in the quarter to £433.4 billion reflecting £2.4 billion growth in Commercial & Institutional, largely in Corporate & Institutions and Commercial Mid-market excluding the impact of client transfers and a £0.9 billion increase in Retail Banking, largely current accounts, partially offset by a £1.2 billion reduction in Private Banking due to seasonal tax payment outflows. Term balances remain stable at 16% of our book, in line with Q4 2024. |
| - | The LCR of 150%, representing £54.2 billion headroom above 100% minimum requirement, remained in line with Q4 2024 as increased lending was partially offset by increased issuance. Our primary liquidity at Q1 2025 was £163.1 billion, of which £95.1 billion (58%) was cash at central banks. Total wholesale funding increased by £1.7 billion in the quarter to £87.2 billion. |
| - | NAV per share increased by 17 pence in Q1 2025 to 441 pence. TNAV per share increased by 18 pence in the quarter to 347 pence primarily reflecting the attributable profit for the period. |
| - | The CET1 ratio of 13.8% increased by 20 basis points in the quarter as the attributable profit for the quarter, c.70 basis points, was partially offset by the increase in RWAs, c.30 basis points, and a c.30 basis points ordinary dividend deduction as we accrue to 50% of attributable profit. |
| - | RWAs increased £3.8 billion in the quarter to £187.0 billion largely reflecting lending growth, an increase for CRD IV models of £0.8 billion and a £2.2 billion increase associated with the annual update to operational risk partially offset by RWA management actions of £1.2 billion. |
| (1) | The guidance, targets, expectations and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the NatWest Group plc Risk Factors in the 2024 Annual Report on Form 20-F issued on 21 February 2025. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement. |
| NatWest Group - Form 6-K Q1 2025 Results | 9 |
Business performance summary
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Total income | 1,540 | 1,501 | 1,325 |
| Operating expenses | (681) | (808) | (773) |
| of which: Other operating expenses | (677) | (714) | (767) |
| Impairment losses | (109) | (16) | (63) |
| Operating profit | 750 | 677 | 489 |
| Return on equity (1) | 24.5% | 21.4% | 16.5% |
| Net interest margin (1) | 2.58% | 2.47% | 2.22% |
| Cost:income ratio (excl. litigation and conduct) (1) | 44.0% | 47.6% | 57.9% |
| Loan impairment rate (1) | 21bps | 3bps | 12bps |
| As at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £bn | £bn | £bn | |
| Net loans to customers (amortised cost) | 210.4 | 208.4 | 203.5 |
| Customer deposits | 195.7 | 194.8 | 190.0 |
| RWAs | 66.8 | 65.5 | 62.5 |
| (1) | Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. |
During Q1 2025, Retail Banking delivered a return on equity of 24.5% and an operating profit of £750 million, with continued positive income and net interest margin momentum from deposit margin expansion. We have continued to support our 18.2 million Retail Banking customers with continued improvements to our digital journeys and have announced a wide-ranging collaboration with Open AI focused on deploying generative AI to meet customers’ needs faster and more effectively.
Retail Banking provided £1.1 billion of climate and sustainable funding and financing in Q1 2025 from lending on properties with an EPC rating of A or B.
| - | Total income was £39 million, or 2.6% higher than Q4 2024 reflecting deposit margin expansion, partly offset by the impact of two fewer days in the quarter. Total income was £215 million, or 16.2%, higher compared with Q1 2024 reflecting deposit margin expansion and deposit balance growth. This was partly offset by the impact of the deposit balance mix shift from non-interest bearing to interest bearing balances and asset margin compression. |
| - | Net interest margin was 11 basis points higher than Q4 2024 largely reflecting the factors noted above. |
| - | Operating expenses of £681 million were £127 million, or 15.7%, lower than Q4 2024 and £92 million, or 11.9% lower than Q1 2024. Other operating expenses were £37 million, or 5.2%, lower than Q4 2024 reflecting the non-repeat of the Q4 2024 annual Bank Levy, together with lower severance and property exit costs, partly offset by the Q1 2025 Bank of England Levy. Other operating expenses were £90 million, or 11.7%, lower than Q1 2024 due to lower severance and property exit costs, a 9.2% reduction in headcount and lower non-staff costs. |
| - | An impairment charge of £109 million, compared with a £16 million charge in Q4 2024 and a £63 million charge in Q1 2024, largely driven by the non-repeat of good book releases. |
| - | Net loans to customers increased by £2.0 billion, or 1.0%, in Q1 2025 driven by £2.0 billion higher mortgage balances, supported by the acceleration of new lending ahead of the increase in Stamp Duty Land Tax on 1 April 2025. Personal advances increased by £0.1 billion, or 1.2%, higher with credit card balances broadly in line with Q4 2024. |
| - | Customer deposits increased by £0.9 billion, or 0.5%, in Q1 2025, driven by overall personal market growth, partly offset by seasonal tax payments. |
| - | RWAs increased by £1.3 billion, or 2.0%, in Q1 2025 primarily due to the annual recalculation of operational risk, model updates and book movements. |
| NatWest Group - Form 6-K Q1 2025 Results | 10 |
Business performance summary continued
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Total income | 265 | 272 | 208 |
| of which: AUMA income (1) | 72 | 72 | 62 |
| Operating expenses | (187) | (194) | (181) |
| of which: Other operating expenses | (187) | (192) | (180) |
| Impairment (losses)/releases | (1) | (3) | 6 |
| Operating profit | 77 | 75 | 33 |
| Return on equity (1) | 17.1% | 16.3% | 6.7% |
| Net interest margin (1) | 2.59% | 2.72% | 2.06% |
| Cost:income ratio (excl. litigation and conduct) (1) | 70.6% | 70.6% | 86.5% |
| Loan impairment rate (1) | 2bps | 7bps | (13)bps |
| AUMA net flows (£bn) (1) | 0.8 | 1.0 | 0.3 |
| As at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £bn | £bn | £bn | |
| Net loans to customers (amortised cost) | 18.4 | 18.2 | 18.2 |
| Customer deposits | 41.2 | 42.4 | 37.8 |
| Assets under management (AUM) (1) | 36.7 | 37.0 | 33.6 |
| Assets under administration (AUA) (1) | 11.8 | 11.9 | 9.5 |
| Total
assets under management and administration (AUMA) (1) |
48.5 | 48.9 | 43.1 |
| Total combined assets and liabilities (CAL) (2) | 106.9 | 108.4 | 97.9 |
| RWAs | 11.3 | 11.0 | 11.3 |
| (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) | CAL refers to customer deposits, net loans to customers and AUMA. To avoid double counting, investment cash is deducted as it is reported within customer deposits and AUMA. |
During Q1 2025, Private Banking continued to deliver a strong performance with an operating profit of £77 million and return on equity of 17.1%. We have continued to see strong AUM net flows and stabilisation of our lending balances. We have continued to support our customers by launching our new online investment advice service, enabling us to deliver investment advice at scale for retail and premier banking customers. We have improved client experience through the launch of two new digital account opening journeys for Coutts customers.
Private Banking provided £0.1 billion of climate and sustainable funding and financing in Q1 2025, principally in relation to mortgages on residential properties with an EPC rating of A or B and wholesale transactions.
| - | Total income was £7 million, or 2.6% lower than Q4 2024 primarily reflecting the non-repeat of a £13 million effective interest rate adjustment following a review of customer mortgage repayment behaviour in Q4 2024 and impact of two fewer days in the quarter, partly offset by deposit margin expansion. Total income was £57 million, or 27.4% higher than Q1 2024 largely driven by deposit margin expansion and higher non-interest income. |
| - | Net interest margin was 13 basis points lower than Q4 2024 largely reflecting the factors noted above. |
| - | Operating expenses of £187 million were £7 million, or 3.6%, lower than Q4 2024 and £6 million, or 3.3% higher than Q1 2024. Other operating expenses were £5 million, or 2.6%, lower than Q4 2024 primarily reflecting the non-repeat of the Q4 2024 annual Bank Levy, partly offset by the Q1 2025 Bank of England Levy and higher severance costs. Other operating expenses were £7 million, or 3.9%, higher than Q1 2024 largely due to higher severance costs and higher investment spend. |
| - | An impairment charge of £1 million, compared with a £3 million charge in Q4 2024 and a £6 million release in Q1 2024, largely reflecting the non-repeat of good book releases, with Stage 3 charges broadly flat and remaining at low levels. |
| - | CAL were £1.5 billion, or 1.4% lower than Q4 2024 as lending growth is offset by lower AUMA and deposit balances. |
| - | Net loans to customers were £0.2 billion, or 1.1%, higher than Q4 2024 driven by higher mortgage balances and higher commercial balances. |
| - | Customer deposits decreased by £1.2 billion, or 2.8%, in Q1 2025 largely reflecting seasonal tax payments and outflows of transitory balances. |
| - | AUMA balances decreased by £0.4 billion in the quarter primarily driven by negative market movements of £1.2 billion and AUA net outflows of £0.1 billion, partially offset by AUM net inflows of £0.8 billion and Cushon net inflows of £0.1 billion. |
| NatWest Group - Form 6-K Q1 2025 Results | 11 |
Business performance summary continued
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Net interest income | 1,459 | 1,404 | 1,246 |
| Non-interest income | 683 | 682 | 613 |
| Total income | 2,142 | 2,086 | 1,859 |
| Operating expenses | (1,044) | (1,179) | (1,051) |
| of which: Other operating expenses | (1,015) | (1,134) | (1,020) |
| Impairment losses | (78) | (46) | (39) |
| Operating profit | 1,020 | 861 | 769 |
| Return on equity (1) | 19.3% | 16.6% | 14.6% |
| Net interest margin (1) | 2.32% | 2.21% | 2.07% |
| Cost:income ratio (excl. litigation and conduct) (1) | 47.4% | 54.4% | 54.9% |
| Loan impairment rate (1) | 22bps | 13bps | 11bps |
| As at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £bn | £bn | £bn | |
| Net loans to customers (amortised cost) | 143.1 | 141.9 | 135.3 |
| Customer deposits | 196.5 | 194.1 | 192.2 |
| Funded assets (1) | 336.1 | 321.6 | 321.7 |
| RWAs | 107.3 | 104.7 | 109.9 |
| (1) | Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. |
During Q1 2025, Commercial & Institutional continued to deliver a strong performance in income and operating profit, supporting a return on equity of 19.3%, an increase from 16.6% in Q4 2024. We continued to see demand to support clients’ risk management and funding needs during volatile markets, helping to increase income.
Commercial & Institutional provided £6.5 billion of climate and sustainable funding and financing in Q1 2025 to support customers investing in the transition to net zero.
| - | Total income was £56 million, or 2.7%, higher than Q4 2024 primarily reflecting strong customer activity in markets trading income, capital markets underwriting, deposit income and customer lending growth, partly offset by the impact of two fewer days in the quarter. Total income was £283 million, or 15.2%, higher than Q1 2024 primarily due to deposit margin expansion, customer lending growth and strong customer activity in markets trading income. |
| - | Net interest margin was 11 basis points higher than Q4 2024 reflecting continued deposit margin expansion. |
| - | Operating expenses of £1,044 million were £135 million, or 11.5%, lower than Q4 2024 and £7 million, or 0.7% lower than Q1 2024. Other operating expenses were £119 million, or 10.5%, lower than Q4 2024 primarily reflecting the non-repeat of the Q4 2024 annual Bank Levy partially offset by the Q1 2025 Bank of England Levy. Other operating expenses were £5 million, or 0.5%, lower than Q1 2024 mainly due to non-staff costs. |
| - | An impairment charge of £78 million in Q1 2025 compared with a £39 million charge in Q1 2024 reflecting a reduction in post model adjustment releases and higher Stage 3 charges, from a small number of larger counterparties. Compared with Q4 2024, the impairment charge was £32 million higher reflecting increased Stage 3 charges from a small number of larger counterparties, partially offset by post model adjustment releases. |
| - | Net loans to customers increased by £1.2 billion, or 0.8%, in Q1 2025 principally due to growth within Corporate & Institutions, partly offset by UK Government scheme repayments of £0.4 billion. |
| - | Customer deposits increased by £2.4 billion, or 1.2%, in Q1 2025 largely reflecting growth within Corporate & Institutions and Commercial Mid-market excluding the impact of client transfers. During Q1 2025 client transfers of approximately £4.9 billion from Commercial Mid-market to Corporate & Institutions were undertaken with an equivalent value of £3.3 billion at Q4 2024. |
| - | RWAs increased by £2.6 billion, or 2.5%, compared with Q4 2024 primarily driven by the annual recalculation of operational risk and increases in market risk and credit risk from book growth, partly offset by continued RWA management activity. |
| NatWest Group - Form 6-K Q1 2025 Results | 12 |
Business performance summary continued
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Continuing operations | |||
| Total income | 33 | (34) | 83 |
| Operating expenses | (67) | (86) | (47) |
| of which: Other operating expenses | (56) | (74) | (61) |
| Impairment (losses)/releases | (1) | (1) | 3 |
| Operating (loss)/profit | (35) | (121) | 39 |
| As at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £bn | £bn | £bn | |
| Net loans to customers (amortised cost) | 26.9 | 31.8 | 21.0 |
| Customer deposits | 1.2 | 2.2 | 12.8 |
| RWAs | 1.6 | 2.0 | 2.6 |
| - | Total income was £67 million higher than Q4 2024 primarily reflecting notable items including higher business growth fund gains and foreign exchange recycling losses in Q4 2024, partially offset with lower gains on interest and foreign exchange risk management derivatives not in accounting hedge relationships. Total income was £50 million lower than Q1 2024 primarily reflecting notable items including lower gains on interest and foreign exchange risk management derivatives not in accounting hedge relationships. |
| - | Operating expenses of £67 million were £19 million, or 22.1%, lower than Q4 2024 and £20 million, or 42.6% higher than Q1 2024. Other operating expenses were £18 million, or 24.3%, lower than Q4 2024 principally reflecting the timing of strategic costs largely relating to property exits and were £5 million, or 8.2%, lower than Q1 2024 largely due to reduction in costs due to our withdrawal of operations from the Republic of Ireland. |
| - | Net loans to customers decreased by £4.9 billion, or 15.4%, in Q1 2025 driven by reverse repo activity in Treasury. |
| - | Customer deposits of £1.2 billion decreased by £1.0 billion in Q1 2025 of which £0.3 billion relates to repo activity in Treasury. |
| NatWest Group - Form 6-K Q1 2025 Results | 13 |
| Quarter ended 31 March 2025 | |||||
| Retail | Private | Commercial & | Central items | Total NatWest | |
| Banking | Banking | Institutional | & other | Group | |
| £m | £m | £m | £m | £m | |
| Continuing operations | |||||
| Income statement | |||||
| Net interest income | 1,438 | 181 | 1,459 | (52) | 3,026 |
| Own credit adjustments | - | - | 6 | - | 6 |
| Other non-interest income | 102 | 84 | 677 | 85 | 948 |
| Total income | 1,540 | 265 | 2,142 | 33 | 3,980 |
| Direct expenses | (166) | (59) | (379) | (1,331) | (1,935) |
| Indirect expenses | (511) | (128) | (636) | 1,275 | - |
| Other operating expenses | (677) | (187) | (1,015) | (56) | (1,935) |
| Litigation and conduct costs | (4) | - | (29) | (11) | (44) |
| Operating expenses | (681) | (187) | (1,044) | (67) | (1,979) |
| Operating profit/(loss) before impairment losses | 859 | 78 | 1,098 | (34) | 2,001 |
| Impairment losses | (109) | (1) | (78) | (1) | (189) |
| Operating profit/(loss) | 750 | 77 | 1,020 | (35) | 1,812 |
| Total income excluding notable items (1) | 1,540 | 265 | 2,136 | 11 | 3,952 |
| Additional information | |||||
| Return on tangible equity (1) | na | na | na | na | 18.5% |
| Return on equity (1) | 24.5% | 17.1% | 19.3% | nm | na |
| Cost:income ratio (excl. litigation and conduct) (1) | 44.0% | 70.6% | 47.4% | nm | 48.6% |
| Total assets (£bn) | 234.3 | 28.9 | 397.9 | 48.9 | 710.0 |
| Funded assets (£bn) (1) | 234.3 | 28.9 | 336.1 | 47.9 | 647.2 |
| Net loans to customers - amortised cost (£bn) | 210.4 | 18.4 | 143.1 | 26.9 | 398.8 |
| Loan impairment rate (1) | 21bps | 2bps | 22bps | nm | 19bps |
| Impairment provisions (£bn) | (1.9) | (0.1) | (1.5) | - | (3.5) |
| Impairment provisions - Stage 3 (£bn) | (1.1) | - | (1.0) | - | (2.1) |
| Customer deposits (£bn) | 195.7 | 41.2 | 196.5 | 1.2 | 434.6 |
| Risk-weighted assets (RWAs) (£bn) | 66.8 | 11.3 | 107.3 | 1.6 | 187.0 |
| RWA equivalent (RWAe) (£bn) | 67.6 | 11.3 | 108.5 | 2.1 | 189.5 |
| Employee numbers (FTEs - thousands) | 11.9 | 2.2 | 12.8 | 32.5 | 59.4 |
| Third party customer asset rate (1) | 4.29% | 4.83% | 6.24% | nm | nm |
| Third party customer funding rate (1) | (1.87%) | (2.90%) | (1.71%) | nm | nm |
| Average interest earning assets (£bn) (1) | 226.5 | 28.4 | 255.2 | na | 541.6 |
| Net interest margin (1) | 2.58% | 2.59% | 2.32% | na | 2.27% |
nm = not meaningful, na = not applicable
| (1) | Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. |
| NatWest Group - Form 6-K Q1 2025 Results | 14 |
Segment performance continued
| Quarter ended 31 December 2024 | |||||
| Retail | Private | Commercial & | Central items | Total NatWest | |
| Banking | Banking | 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 |
| Total 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 |
| 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. |
| NatWest Group - Form 6-K Q1 2025 Results | 15 |
Segment performance continued
| Quarter ended 31 March 2024 | |||||
| Retail | Private | Commercial & | Central items | Total NatWest | |
| Banking | Banking | Institutional | & other | Group | |
| £m | £m | £m | £m | £m | |
| Continuing operations | |||||
| Income statement | |||||
| Net interest income | 1,216 | 134 | 1,246 | 55 | 2,651 |
| Own credit adjustments | - | - | (5) | - | (5) |
| Other non-interest income | 109 | 74 | 618 | 28 | 829 |
| Total income | 1,325 | 208 | 1,859 | 83 | 3,475 |
| Direct expenses | (189) | (61) | (384) | (1,394) | (2,028) |
| Indirect expenses | (578) | (119) | (636) | 1,333 | - |
| Other operating expenses | (767) | (180) | (1,020) | (61) | (2,028) |
| Litigation and conduct costs | (6) | (1) | (31) | 14 | (24) |
| Operating expenses | (773) | (181) | (1,051) | (47) | (2,052) |
| Operating profit before impairment losses/releases | 552 | 27 | 808 | 36 | 1,423 |
| Impairment (losses)/releases | (63) | 6 | (39) | 3 | (93) |
| Operating profit | 489 | 33 | 769 | 39 | 1,330 |
| Total income excluding notable items (1) | 1,325 | 208 | 1,864 | 17 | 3,414 |
| Additional information | |||||
| Return on tangible equity (1) | na | na | na | na | 14.2% |
| Return on equity (1) | 16.5% | 6.7% | 14.6% | nm | na |
| Cost:income ratio (excl. litigation and conduct) (1) | 57.9% | 86.5% | 54.9% | nm | 58.4% |
| Total assets (£bn) | 226.4 | 26.5 | 388.8 | 55.8 | 697.5 |
| Funded assets (£bn) (1) | 226.4 | 26.5 | 321.7 | 54.7 | 629.3 |
| Net loans to customers - amortised cost (£bn) | 203.5 | 18.2 | 135.3 | 21.0 | 378.0 |
| Loan impairment rate (1) | 12bps | (13)bps | 11bps | nm | 10bps |
| Impairment provisions (£bn) | (1.9) | (0.1) | (1.5) | (0.1) | (3.6) |
| Impairment provisions - Stage 3 (£bn) | (1.2) | - | (0.8) | - | (2.0) |
| Customer deposits (£bn) | 190.0 | 37.8 | 192.2 | 12.8 | 432.8 |
| Risk-weighted assets (RWAs) (£bn) | 62.5 | 11.3 | 109.9 | 2.6 | 186.3 |
| RWA equivalent (RWAe) (£bn) | 62.6 | 11.3 | 111.1 | 3.1 | 188.1 |
| Employee numbers (FTEs - thousands) | 13.1 | 2.2 | 12.7 | 33.3 | 61.3 |
| Third party customer asset rate (1) | 3.79% | 4.97% | 6.81% | nm | nm |
| Third party customer funding rate (1) | (2.05%) | (3.14%) | (1.93%) | nm | nm |
| Average interest earning assets (£bn) (1) | 220.6 | 26.2 | 241.9 | na | 521.1 |
| Net interest margin (1) | 2.22% | 2.06% | 2.07% | na | 2.05% |
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. |
| NatWest Group - Form 6-K Q1 2025 Results | 16 |
Risk and capital management
Segment analysis – portfolio summary
The table below shows gross loans and expected credit loss (ECL), by segment and stage, within the scope of the IFRS 9 ECL framework.
| 31 March 2025 | 31 December 2024 | ||||||||||
| Retail | Private | Commercial & | Central items | Retail | Private | Commercial & | Central items | ||||
| Banking | Banking | Institutional | & other | Total | Banking | Banking | Institutional | & other | Total | ||
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||
| Loans - amortised cost and FVOCI (1,2) | |||||||||||
| Stage 1 | 184,976 | 17,331 | 130,688 | 30,573 | 363,568 | 182,366 | 17,155 | 128,988 | 35,312 | 363,821 | |
| Stage 2 | 23,586 | 860 | 15,423 | 58 | 39,927 | 24,242 | 844 | 15,339 | 49 | 40,474 | |
| Stage 3 | 3,333 | 339 | 2,298 | 4 | 5,974 | 3,268 | 322 | 2,340 | - | 5,930 | |
| Of which: individual | - | 255 | 1,125 | - | 1,380 | - | 233 | 1,052 | - | 1,285 | |
| Of which: collective | 3,333 | 84 | 1,173 | 4 | 4,594 | 3,268 | 89 | 1,288 | - | 4,645 | |
| Total | 211,895 | 18,530 | 148,409 | 30,635 | 409,469 | 209,876 | 18,321 | 146,667 | 35,361 | 410,225 | |
| ECL provisions (3) | |||||||||||
| Stage 1 | 289 | 15 | 275 | 15 | 594 | 279 | 16 | 289 | 14 | 598 | |
| Stage 2 | 430 | 10 | 345 | 2 | 787 | 428 | 12 | 346 | 1 | 787 | |
| Stage 3 | 1,127 | 40 | 976 | - | 2,143 | 1,063 | 36 | 941 | - | 2,040 | |
| Of which: individual | - | 40 | 452 | - | 492 | - | 36 | 415 | - | 451 | |
| Of which: collective | 1,127 | - | 524 | - | 1,651 | 1,063 | - | 526 | - | 1,589 | |
| Total | 1,846 | 65 | 1,596 | 17 | 3,524 | 1,770 | 64 | 1,576 | 15 | 3,425 | |
| ECL provisions coverage (4) | |||||||||||
| Stage 1 (%) | 0.16 | 0.09 | 0.21 | 0.05 | 0.16 | 0.15 | 0.09 | 0.22 | 0.04 | 0.16 | |
| Stage 2 (%) | 1.82 | 1.16 | 2.24 | 3.45 | 1.97 | 1.77 | 1.42 | 2.26 | 2.04 | 1.94 | |
| Stage 3 (%) | 33.81 | 11.80 | 42.47 | - | 35.87 | 32.53 | 11.18 | 40.21 | - | 34.40 | |
| Total | 0.87 | 0.35 | 1.08 | 0.06 | 0.86 | 0.84 | 0.35 | 1.07 | 0.04 | 0.83 | |
| (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 £97.9 billion (31 December 2024 – £91.8 billion) and debt securities of £63.1 billion (31 December 2024 – £62.4 billion). FVOCI – fair value through other comprehensive income. |
| (2) | Includes loans to customers and banks. |
| (3) | Includes £4 million (31 December 2024 – £4 million) related to assets classified as FVOCI and £0.1 billion (31 December 2024 – £0.1 billion) related to off-balance sheet exposures. |
| (4) | ECL provisions coverage is calculated as ECL provisions divided by loans – amortised cost and FVOCI. It is calculated on loans and total ECL provisions, including ECL for other (non-loan) assets and unutilised exposure. Some segments with a high proportion of debt securities or unutilised exposure may result in a not meaningful (nm) coverage ratio. |
| NatWest Group - Form 6-K Q1 2025 Results | 17 |
Risk and capital management continued
Credit risk continued
| - | Retail Banking – Asset quality and arrears rates remained largely stable and within expectations in the quarter. Reflecting the stable portfolio performance, good book ECL coverage remained largely consistent with December 2024, as economic scenarios were unchanged and there were minimal movements in probability of default and loss given default estimates. Total ECL coverage saw a slight increase during the quarter, driven by growth in Stage 3 ECL on unsecured portfolios. Growth in Stage 3 balances reflected less debt sale activity compared to Q4 2024, alongside stable Stage 3 inflows. |
| - | Commercial & Institutional – Coverage remained stable with small increases in ECL alongside balance growth. Overall ECL increased, primarily in Stage 3, driven by a limited number of flows into default. Stage 1 and Stage 2 ECL reduced marginally due to a decrease in post model adjustments and positive movements in risk metrics. |
The table below shows the main ECL provision movements during the quarter.
| ECL provision | |
| £m | |
| At 1 January 2025 | 3,425 |
| Changes in risk metrics and exposure: Stage 1 and Stage 2 | (2) |
| Changes in risk metrics and exposure: Stage 3 | 215 |
| Judgemental changes: | |
| Changes in post model adjustments for Stage 1, Stage 2 and Stage 3 | (3) |
| Write-offs and other | (111) |
| At 31 March 2025 | 3,524 |
| - | ECL increased in Q1 2025, as Stage 3 charges were only partially offset by write-offs. There were Stage 3 default flow increases, particularly in the Personal portfolio. These were broadly in line with expectations due to growth and normalisation of risk parameters. In the Commercial & Institutional portfolio, Stage 3 ECL increased due to a small number of individual charges. |
| - | Judgemental ECL post model adjustments were consistent with 31 December 2024. This reflected a decision not to release any economic uncertainty post model adjustments in the quarter based on a forward-looking basis given recent geopolitical events. Judgemental ECL post model adjustments represented 9% of the total ECL (31 December 2024 - 10%). Refer to the ECL post model adjustments section for further details. |
| NatWest Group - Form 6-K Q1 2025 Results | 18 |
Risk and capital management continued
Credit risk continued
The table below shows ECL post model adjustments.
| Retail Banking | Private | Commercial & | |||||
| Mortgages | Other | Banking | Institutional | Total | |||
| 31 March 2025 | £m | £m | £m | £m | £m | ||
| Deferred model calibrations | - | - | 1 | 18 | 19 | ||
| Economic uncertainty | 89 | 29 | 8 | 179 | 305 | ||
| Other adjustments | - | - | - | 9 | 9 | ||
| Total | 89 | 29 | 9 | 206 | 333 | ||
| Of which: | |||||||
| - Stage 1 | 57 | 11 | 4 | 87 | 159 | ||
| - Stage 2 | 27 | 18 | 5 | 118 | 168 | ||
| - Stage 3 | 5 | - | - | 1 | 6 | ||
| 31 December 2024 | |||||||
| Deferred model calibrations | - | - | 1 | 18 | 19 | ||
| Economic uncertainty | 90 | 22 | 8 | 179 | 299 | ||
| Other adjustments | - | - | - | 18 | 18 | ||
| Total | 90 | 22 | 9 | 215 | 336 | ||
| Of which: | |||||||
| - Stage 1 | 58 | 9 | 5 | 94 | 166 | ||
| - Stage 2 | 26 | 13 | 4 | 119 | 162 | ||
| - Stage 3 | 6 | - | - | 2 | 8 | ||
Post model adjustments remained broadly flat overall since 31 December 2024. This mainly reflected economic uncertainty and continued related concerns around customer affordability, inflation, supply chain, geopolitical risk and liquidity.
| - | Retail Banking – The post model adjustment for economic uncertainty increased to £118 million at 31 March 2025, from £112 million at 31 December 2024. This increase was primarily in the cost of living post model adjustment in credit cards. The cost of living post model adjustment captures the risk on segments in the Retail Banking portfolio that are more susceptible to the effects of cost of living rises. It focuses on key affordability lenses, including lower-income customers in fuel poverty, over-indebted borrowers and customers who remain vulnerable to higher mortgage rates. |
| - | Commercial & Institutional – The post model adjustment for economic uncertainty remained unchanged at £179 million. The inflation, supply chain and liquidity post model adjustment of £149 million was maintained for lending prior to 1 January 2024, being a sector level downgrade applied to the sectors that are considered most at risk from the current economic and geopolitical headwinds. There was an £8 million equivalent in the Private Banking portfolio. |
| - | The remaining £27 million (31 December 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. |
| NatWest Group - Form 6-K Q1 2025 Results | 19 |
Risk and capital management continued
Credit risk continued
Sector analysis – portfolio summary
The table below shows financial assets and off-balance sheet exposures gross of ECL and related ECL provisions, impairment and past due by sector, asset quality and geographical region.
| Personal | Non-Personal | |||||||||
| Corporate | Financial | |||||||||
| Mortgages (1) | Credit cards | Other personal | Total | and other | institutions | Sovereign | Total | Total | ||
| 31 March 2025 | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
| Loans by geography | 211,948 | 6,906 | 9,893 | 228,747 | 110,612 | 68,753 | 1,357 | 180,722 | 409,469 | |
| - UK | 211,935 | 6,906 | 9,893 | 228,734 | 96,591 | 42,413 | 693 | 139,697 | 368,431 | |
| - Other Europe | 13 | - | - | 13 | 6,540 | 12,500 | 349 | 19,389 | 19,402 | |
| - RoW | - | - | - | - | 7,481 | 13,840 | 315 | 21,636 | 21,636 | |
| Loans by asset quality (2) | 211,948 | 6,906 | 9,893 | 228,747 | 110,612 | 68,753 | 1,357 | 180,722 | 409,469 | |
| - AQ1-AQ4 | 116,141 | 121 | 809 | 117,071 | 41,988 | 63,346 | 1,078 | 106,412 | 223,483 | |
| - AQ5-AQ8 | 92,144 | 6,475 | 7,968 | 106,587 | 66,150 | 5,283 | 127 | 71,560 | 178,147 | |
| - AQ9 | 1,118 | 123 | 204 | 1,445 | 285 | 2 | 133 | 420 | 1,865 | |
| - AQ10 | 2,545 | 187 | 912 | 3,644 | 2,189 | 122 | 19 | 2,330 | 5,974 | |
| Loans by stage | 211,948 | 6,906 | 9,893 | 228,747 | 110,612 | 68,753 | 1,357 | 180,722 | 409,469 | |
| - Stage 1 | 188,720 | 4,847 | 7,576 | 201,143 | 93,077 | 68,143 | 1,205 | 162,425 | 363,568 | |
| - Stage 2 | 20,683 | 1,872 | 1,405 | 23,960 | 15,346 | 488 | 133 | 15,967 | 39,927 | |
| - Stage 3 | 2,545 | 187 | 912 | 3,644 | 2,189 | 122 | 19 | 2,330 | 5,974 | |
| - Of which: individual | 153 | - | 25 | 178 | 1,066 | 117 | 19 | 1,202 | 1,380 | |
| - Of which: collective | 2,392 | 187 | 887 | 3,466 | 1,123 | 5 | - | 1,128 | 4,594 | |
| Loans - past due analysis | 211,948 | 6,906 | 9,893 | 228,747 | 110,612 | 68,753 | 1,357 | 180,722 | 409,469 | |
| - Not past due | 208,762 | 6,682 | 8,963 | 224,407 | 107,309 | 68,091 | 1,338 | 176,738 | 401,145 | |
| - Past due 1-30 days | 1,474 | 50 | 70 | 1,594 | 1,937 | 602 | - | 2,539 | 4,133 | |
| - Past due 31-90 days | 582 | 56 | 106 | 744 | 424 | 4 | - | 428 | 1,172 | |
| - Past due 91-180 days | 377 | 46 | 90 | 513 | 96 | - | 19 | 115 | 628 | |
| - Past due >180 days | 753 | 72 | 664 | 1,489 | 846 | 56 | - | 902 | 2,391 | |
| Loans - Stage 2 | 20,683 | 1,872 | 1,405 | 23,960 | 15,346 | 488 | 133 | 15,967 | 39,927 | |
| - Not past due | 19,500 | 1,804 | 1,304 | 22,608 | 14,436 | 481 | 133 | 15,050 | 37,658 | |
| - Past due 1-30 days | 930 | 32 | 37 | 999 | 608 | 3 | - | 611 | 1,610 | |
| - Past due 31-90 days | 253 | 36 | 64 | 353 | 302 | 4 | - | 306 | 659 | |
| Weighted average life | ||||||||||
| - ECL measurement (years) | 9 | 4 | 6 | 6 | 5 | 2 | nm | 5 | 5 | |
| Weighted average 12 months PDs | ||||||||||
| - IFRS 9 (%) | 0.50 | 3.29 | 4.59 | 0.75 | 1.27 | 0.16 | 5.05 | 0.87 | 0.80 | |
| - Basel (%) | 0.67 | 3.77 | 3.28 | 0.87 | 1.12 | 0.15 | 5.05 | 0.78 | 0.83 | |
| ECL provisions by geography | 469 | 409 | 1,012 | 1,890 | 1,486 | 127 | 21 | 1,634 | 3,524 | |
| - UK | 469 | 409 | 1,012 | 1,890 | 1,323 | 72 | 13 | 1,408 | 3,298 | |
| - Other Europe | - | - | - | - | 102 | 12 | - | 114 | 114 | |
| - RoW | - | - | - | - | 61 | 43 | 8 | 112 | 112 | |
nm = not meaningful
For the notes to this table refer to page 23.
| NatWest Group - Form 6-K Q1 2025 Results | 20 |
Risk and capital management continued
Credit risk continued
Sector analysis – portfolio summary continued
| Personal | Non-Personal | |||||||||
| Corporate | Financial | |||||||||
| Mortgages (1) | Credit cards | Other personal | Total | and other | institutions | Sovereign | Total | Total | ||
| 31 March 2025 | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
| ECL provisions by stage | 469 | 409 | 1,012 | 1,890 | 1,486 | 127 | 21 | 1,634 | 3,524 | |
| - Stage 1 | 76 | 84 | 134 | 294 | 248 | 38 | 14 | 300 | 594 | |
| - Stage 2 | 61 | 192 | 179 | 432 | 343 | 10 | 2 | 355 | 787 | |
| - Stage 3 | 332 | 133 | 699 | 1,164 | 895 | 79 | 5 | 979 | 2,143 | |
| - Of which: individual | 12 | - | 14 | 26 | 385 | 76 | 5 | 466 | 492 | |
| - Of which: collective | 320 | 133 | 685 | 1,138 | 510 | 3 | - | 513 | 1,651 | |
| ECL provisions coverage (%) | 0.22 | 5.92 | 10.23 | 0.83 | 1.34 | 0.18 | 1.55 | 0.90 | 0.86 | |
| - Stage 1 (%) | 0.04 | 1.73 | 1.77 | 0.15 | 0.27 | 0.06 | 1.16 | 0.18 | 0.16 | |
| - Stage 2 (%) | 0.29 | 10.26 | 12.74 | 1.80 | 2.24 | 2.05 | 1.50 | 2.22 | 1.97 | |
| - Stage 3 (%) | 13.05 | 71.12 | 76.64 | 31.94 | 40.89 | 64.75 | 26.32 | 42.02 | 35.87 | |
| Loans by residual maturity | 211,948 | 6,906 | 9,893 | 228,747 | 110,612 | 68,753 | 1,357 | 180,722 | 409,469 | |
| - <1 year | 1,929 | 1,591 | 2,467 | 5,987 | 31,236 | 52,211 | 518 | 83,965 | 89,952 | |
| - 1-5 year | 8,424 | 5,315 | 5,824 | 19,563 | 49,943 | 11,799 | 504 | 62,246 | 81,809 | |
| - >5< 15 year | 42,522 | - | 1,596 | 44,118 | 21,080 | 4,604 | 299 | 25,983 | 70,101 | |
| - >15 year | 159,073 | - | 6 | 159,079 | 8,353 | 139 | 36 | 8,528 | 167,607 | |
| Other financial assets by asset quality (2) | - | - | - | - | 3,834 | 25,450 | 131,681 | 160,965 | 160,965 | |
| - AQ1-AQ4 | - | - | - | - | 3,829 | 24,992 | 131,681 | 160,502 | 160,502 | |
| - AQ5-AQ8 | - | - | - | - | 5 | 458 | - | 463 | 463 | |
| Off-balance sheet | 12,373 | 21,182 | 7,838 | 41,393 | 76,708 | 21,394 | 209 | 98,311 | 139,704 | |
| - Loan commitments | 12,373 | 21,182 | 7,798 | 41,353 | 73,858 | 19,939 | 209 | 94,006 | 135,359 | |
| - Contingent liabilities | - | - | 40 | 40 | 2,850 | 1,455 | - | 4,305 | 4,345 | |
| Off-balance sheet by asset quality (2) | 12,373 | 21,182 | 7,838 | 41,393 | 76,708 | 21,394 | 209 | 98,311 | 139,704 | |
| - AQ1-AQ4 | 11,594 | 483 | 6,504 | 18,581 | 48,220 | 19,646 | 128 | 67,994 | 86,575 | |
| - AQ5-AQ8 | 766 | 20,336 | 1,293 | 22,395 | 28,031 | 1,692 | 16 | 29,739 | 52,134 | |
| - AQ9 | - | 13 | 13 | 26 | 19 | - | 63 | 82 | 108 | |
| - AQ10 | 13 | 350 | 28 | 391 | 438 | 56 | 2 | 496 | 887 | |
For the notes to this table refer to page 23.
| NatWest Group - Form 6-K Q1 2025 Results | 21 |
Risk and capital management continued
Credit risk continued
Sector analysis – portfolio summary continued
| Personal | Non-Personal | |||||||||
| Corporate | Financial | |||||||||
| Mortgages (1) | Credit cards | Other personal | Total | and other | institutions | Sovereign | Total | Total | ||
| 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
| Loans by geography | 209,846 | 6,930 | 9,749 | 226,525 | 111,734 | 70,321 | 1,645 | 183,700 | 410,225 | |
| - UK | 209,846 | 6,930 | 9,749 | 226,525 | 97,409 | 43,412 | 562 | 141,383 | 367,908 | |
| - Other Europe | - | - | - | - | 6,311 | 14,747 | 766 | 21,824 | 21,824 | |
| - RoW | - | - | - | - | 8,014 | 12,162 | 317 | 20,493 | 20,493 | |
| Loans by asset quality (2) | 209,846 | 6,930 | 9,749 | 226,525 | 111,734 | 70,321 | 1,645 | 183,700 | 410,225 | |
| - AQ1-AQ4 | 113,209 | 128 | 818 | 114,155 | 43,918 | 65,078 | 1,365 | 110,361 | 224,516 | |
| - AQ5-AQ8 | 92,946 | 6,516 | 7,880 | 107,342 | 65,231 | 5,172 | 127 | 70,530 | 177,872 | |
| - AQ9 | 1,156 | 110 | 191 | 1,457 | 306 | 12 | 132 | 450 | 1,907 | |
| - AQ10 | 2,535 | 176 | 860 | 3,571 | 2,279 | 59 | 21 | 2,359 | 5,930 | |
| Loans by stage | 209,846 | 6,930 | 9,749 | 226,525 | 111,734 | 70,321 | 1,645 | 183,700 | 410,225 | |
| - Stage 1 | 186,250 | 4,801 | 7,267 | 198,318 | 94,991 | 69,021 | 1,491 | 165,503 | 363,821 | |
| - Stage 2 | 21,061 | 1,953 | 1,622 | 24,636 | 14,464 | 1,241 | 133 | 15,838 | 40,474 | |
| - Stage 3 | 2,535 | 176 | 860 | 3,571 | 2,279 | 59 | 21 | 2,359 | 5,930 | |
| - Of which: individual | 141 | - | 26 | 167 | 1,046 | 51 | 21 | 1,118 | 1,285 | |
| - Of which: collective | 2,394 | 176 | 834 | 3,404 | 1,233 | 8 | - | 1,241 | 4,645 | |
| Loans - past due analysis | 209,846 | 6,930 | 9,749 | 226,525 | 111,734 | 70,321 | 1,645 | 183,700 | 410,225 | |
| - Not past due | 206,739 | 6,721 | 8,865 | 222,325 | 107,855 | 70,055 | 1,627 | 179,537 | 401,862 | |
| - Past due 1-30 days | 1,404 | 50 | 70 | 1,524 | 2,530 | 211 | - | 2,741 | 4,265 | |
| - Past due 31-90 days | 580 | 51 | 99 | 730 | 398 | 2 | 18 | 418 | 1,148 | |
| - Past due 91-180 days | 408 | 41 | 96 | 545 | 139 | 49 | - | 188 | 733 | |
| - Past due >180 days | 715 | 67 | 619 | 1,401 | 812 | 4 | - | 816 | 2,217 | |
| Loans - Stage 2 | 21,061 | 1,953 | 1,622 | 24,636 | 14,464 | 1,241 | 133 | 15,838 | 40,474 | |
| - Not past due | 19,939 | 1,889 | 1,521 | 23,349 | 13,485 | 1,228 | 133 | 14,846 | 38,195 | |
| - Past due 1-30 days | 853 | 31 | 37 | 921 | 640 | 11 | - | 651 | 1,572 | |
| - Past due 31-90 days | 269 | 33 | 64 | 366 | 339 | 2 | - | 341 | 707 | |
| Weighted average life | ||||||||||
| - ECL measurement (years) | 8 | 4 | 6 | 6 | 6 | 2 | nm | 6 | 6 | |
| Weighted average 12 months PDs | ||||||||||
| - IFRS 9 (%) | 0.51 | 3.23 | 4.59 | 0.76 | 1.24 | 0.16 | 5.51 | 0.86 | 0.80 | |
| - Basel (%) | 0.68 | 3.65 | 3.18 | 0.87 | 1.11 | 0.15 | 4.16 | 0.76 | 0.82 | |
| ECL provisions by geography | 462 | 381 | 969 | 1,812 | 1,504 | 90 | 19 | 1,613 | 3,425 | |
| - UK | 462 | 381 | 969 | 1,812 | 1,335 | 37 | 12 | 1,384 | 3,196 | |
| - Other Europe | - | - | - | - | 109 | 9 | - | 118 | 118 | |
| - RoW | - | - | - | - | 60 | 44 | 7 | 111 | 111 | |
nm = not meaningful
For the notes to this table refer to the following page.
| NatWest Group - Form 6-K Q1 2025 Results | 22 |
Risk and capital management continued
Credit risk continued
Sector analysis – portfolio summary continued
| Personal | Non-Personal | |||||||||
| Corporate | Financial | |||||||||
| Mortgages (1) | Credit cards | Other personal | Total | and other | institutions | Sovereign | Total | Total | ||
| 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
| ECL provisions by stage | 462 | 381 | 969 | 1,812 | 1,504 | 90 | 19 | 1,613 | 3,425 | |
| - Stage 1 | 77 | 77 | 130 | 284 | 264 | 38 | 12 | 314 | 598 | |
| - Stage 2 | 60 | 186 | 183 | 429 | 344 | 12 | 2 | 358 | 787 | |
| - Stage 3 | 325 | 118 | 656 | 1,099 | 896 | 40 | 5 | 941 | 2,040 | |
| - Of which: individual | 11 | - | 17 | 28 | 382 | 36 | 5 | 423 | 451 | |
| - Of which: collective | 314 | 118 | 639 | 1,071 | 514 | 4 | - | 518 | 1,589 | |
| ECL provisions coverage (%) | 0.22 | 5.50 | 9.94 | 0.80 | 1.35 | 0.13 | 1.16 | 0.88 | 0.83 | |
| - Stage 1 (%) | 0.04 | 1.60 | 1.79 | 0.14 | 0.28 | 0.06 | 0.80 | 0.19 | 0.16 | |
| - Stage 2 (%) | 0.28 | 9.52 | 11.28 | 1.74 | 2.38 | 0.97 | 1.50 | 2.26 | 1.94 | |
| - Stage 3 (%) | 12.82 | 67.05 | 76.28 | 30.78 | 39.32 | 67.80 | 23.81 | 39.89 | 34.40 | |
| Loans by residual maturity | 209,846 | 6,930 | 9,749 | 226,525 | 111,734 | 70,321 | 1,645 | 183,700 | 410,225 | |
| - <1 year | 3,367 | 3,903 | 3,186 | 10,456 | 34,929 | 54,971 | 822 | 90,722 | 101,178 | |
| - 1-5 year | 11,651 | 3,027 | 5,551 | 20,229 | 48,075 | 10,967 | 488 | 59,530 | 79,759 | |
| - >5< 15 year | 45,454 | - | 1,006 | 46,460 | 20,623 | 4,270 | 298 | 25,191 | 71,651 | |
| - >15 year | 149,374 | - | 6 | 149,380 | 8,107 | 113 | 37 | 8,257 | 157,637 | |
| Other financial assets by asset quality (2) | - | - | - | - | 3,644 | 31,102 | 119,502 | 154,248 | 154,248 | |
| - AQ1-AQ4 | - | - | - | - | 3,639 | 30,743 | 119,502 | 153,884 | 153,884 | |
| - AQ5-AQ8 | - | - | - | - | 5 | 359 | - | 364 | 364 | |
| Off-balance sheet | 13,806 | 20,135 | 7,947 | 41,888 | 75,964 | 21,925 | 239 | 98,128 | 140,016 | |
| - Loan commitments | 13,806 | 20,135 | 7,906 | 41,847 | 72,940 | 20,341 | 239 | 93,520 | 135,367 | |
| - Contingent liabilities | - | - | 41 | 41 | 3,024 | 1,584 | - | 4,608 | 4,649 | |
| Off-balance sheet by asset quality (2) | 13,806 | 20,135 | 7,947 | 41,888 | 75,964 | 21,925 | 239 | 98,128 | 140,016 | |
| - AQ1-AQ4 | 12,951 | 510 | 6,568 | 20,029 | 47,896 | 20,063 | 155 | 68,114 | 88,143 | |
| - AQ5-AQ8 | 839 | 19,276 | 1,336 | 21,451 | 27,657 | 1,813 | 21 | 29,491 | 50,942 | |
| - AQ9 | 1 | 12 | 17 | 30 | 19 | - | 63 | 82 | 112 | |
| - AQ10 | 15 | 337 | 26 | 378 | 392 | 49 | - | 441 | 819 | |
| (1) | Includes a portion of Private Banking lending secured against residential real estate in line with ECL calculation methodology. Private Banking and RBS International mortgages are reported in the UK reflecting the country of lending origination and includes crown dependencies |
| (2) | AQ bandings are based on Basel PDs and mapping as follows: |
| Internal asset quality band | Probability of default range | Indicative S&P rating | Internal asset quality band | Probability of default range | Indicative S&P rating | |
| AQ1 | 0% - 0.034% | AAA to AA | AQ6 | 1.076% - 2.153% | BB- to B+ | |
| AQ2 | 0.034% - 0.048% | AA to AA- | AQ7 | 2.153% - 6.089% | B+ to B | |
| AQ3 | 0.048% - 0.095% | A+ to A | AQ8 | 6.089% - 17.222% | B- to CCC+ | |
| AQ4 | 0.095% - 0.381% | BBB+ to BBB- | AQ9 | 17.222% - 100% | CCC to C | |
| AQ5 | 0.381% - 1.076% | BB+ to BB | AQ10 | 100% | D |
£0.4 billion (31 December 2024 – £0.3 billion) of AQ10 Personal balances primarily relate to loan commitments, the drawdown of which is effectively prohibited.
| NatWest Group - Form 6-K Q1 2025 Results | 23 |
Risk and capital management continued
Credit risk continued
Sector analysis – portfolio summary continued
The table below shows ECL by stage, for the Personal portfolio and Non-Personal portfolio, including the three largest borrowing sector clusters included in corporate and other.
| Off-balance sheet | ||||||||||||
| Loans - amortised cost and FVOCI | Loan | Contingent | ECL provisions | |||||||||
| Stage 1 | Stage 2 | Stage 3 | Total | commitments | liabilities | Stage 1 | Stage 2 | Stage 3 | Total | |||
| 31 March 2025 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||
| Personal | 201,143 | 23,960 | 3,644 | 228,747 | 41,353 | 40 | 294 | 432 | 1,164 | 1,890 | ||
| Mortgages (1) | 188,720 | 20,683 | 2,545 | 211,948 | 12,373 | - | 76 | 61 | 332 | 469 | ||
| Credit cards | 4,847 | 1,872 | 187 | 6,906 | 21,182 | - | 84 | 192 | 133 | 409 | ||
| Other personal | 7,576 | 1,405 | 912 | 9,893 | 7,798 | 40 | 134 | 179 | 699 | 1,012 | ||
| Non-Personal | 162,425 | 15,967 | 2,330 | 180,722 | 94,006 | 4,305 | 300 | 355 | 979 | 1,634 | ||
| Financial institutions (2) | 68,143 | 488 | 122 | 68,753 | 19,939 | 1,455 | 38 | 10 | 79 | 127 | ||
| Sovereigns | 1,205 | 133 | 19 | 1,357 | 209 | - | 14 | 2 | 5 | 21 | ||
| Corporate and other | 93,077 | 15,346 | 2,189 | 110,612 | 73,858 | 2,850 | 248 | 343 | 895 | 1,486 | ||
| Of which: | ||||||||||||
| Commercial real estate | 16,264 | 1,447 | 435 | 18,146 | 6,750 | 160 | 72 | 30 | 136 | 238 | ||
| Mobility and logistics | 13,653 | 2,575 | 146 | 16,374 | 9,606 | 508 | 24 | 38 | 66 | 128 | ||
| Consumer industries | 12,511 | 3,099 | 416 | 16,026 | 11,073 | 556 | 41 | 83 | 191 | 315 | ||
| Total | 363,568 | 39,927 | 5,974 | 409,469 | 135,359 | 4,345 | 594 | 787 | 2,143 | 3,524 | ||
| 31 December 2024 | ||||||||||||
| Personal | 198,318 | 24,636 | 3,571 | 226,525 | 41,847 | 41 | 284 | 429 | 1,099 | 1,812 | ||
| Mortgages (1) | 186,250 | 21,061 | 2,535 | 209,846 | 13,806 | - | 77 | 60 | 325 | 462 | ||
| Credit cards | 4,801 | 1,953 | 176 | 6,930 | 20,135 | - | 77 | 186 | 118 | 381 | ||
| Other personal | 7,267 | 1,622 | 860 | 9,749 | 7,906 | 41 | 130 | 183 | 656 | 969 | ||
| Non-Personal | 165,503 | 15,838 | 2,359 | 183,700 | 93,520 | 4,608 | 314 | 358 | 941 | 1,613 | ||
| Financial institutions (2) | 69,021 | 1,241 | 59 | 70,321 | 20,341 | 1,584 | 38 | 12 | 40 | 90 | ||
| Sovereigns | 1,491 | 133 | 21 | 1,645 | 239 | - | 12 | 2 | 5 | 19 | ||
| Corporate and other | 94,991 | 14,464 | 2,279 | 111,734 | 72,940 | 3,024 | 264 | 344 | 896 | 1,504 | ||
| Of which: | ||||||||||||
| Commercial real estate | 16,191 | 1,517 | 433 | 18,141 | 6,661 | 143 | 70 | 30 | 146 | 246 | ||
| Consumer industries | 13,312 | 3,015 | 444 | 16,771 | 10,706 | 595 | 45 | 90 | 188 | 323 | ||
| Mobility and logistics | 13,363 | 2,384 | 148 | 15,895 | 9,367 | 595 | 26 | 35 | 67 | 128 | ||
| Total | 363,821 | 40,474 | 5,930 | 410,225 | 135,367 | 4,649 | 598 | 787 | 2,040 | 3,425 | ||
| (1) | As at 31 March 2025, £139.8 billion, 65.9%, of the total residential mortgages portfolio had Energy Performance Certificate (EPC) data available (31 December 2024 – £139.1 billion, 66.3%). Of which, 47.1% were rated as EPC A to C (31 December 2024 – 46.3%). |
| (2) | Includes transactions, such as securitisations, where the underlying assets may be in other sectors. |
| NatWest Group - Form 6-K Q1 2025 Results | 24 |
Risk and capital management continued
Capital, liquidity and funding risk
NatWest Group takes a comprehensive approach to the management of capital, liquidity and funding, underpinned by frameworks, risk appetite and policies, to manage and mitigate capital, liquidity and funding risks. The framework ensures the tools and capability are in place to facilitate the management and mitigation of risk ensuring that NatWest Group operates within its regulatory requirements and risk appetite.
Key developments since 31 December 2024
|
CET1 ratio
13.8%
(2024 – 13.6%) |
The CET1 ratio increased by 20 basis points to 13.8% due to a £0.8 billion increase in CET1 capital partially offset by a £3.8 billion increase in RWAs.
The CET1 capital increase was mainly driven by an attributable profit to ordinary shareholders in the period of £1.3 billion and other movements on reserves and regulatory adjustments of £0.2 billion partially offset by a foreseeable ordinary dividend accrual of £0.6 billion. |
|
RWAs
£187.0bn
(2024 - £183.2bn) |
Total RWAs increased by £3.8 billion to £187.0 billion mainly reflecting:
- an increase in operational risk RWAs of £2.2 billion following the annual recalculation. - an increase in credit risk RWAs of £0.9 billion, primarily driven by lending growth partially offset by reductions due to active RWA management. Further increase driven by CRD IV model updates within Retail Banking and Commercial & Institutional. - an increase in market risk RWAs of £0.5 billion, driven by an SVaR increase due to movement in FX risk and a decrease in VaR due to interest rate risk. - an increase in counterparty credit risk RWAs of £0.2 billion driven by an increase in securities financing transactions.
|
|
MREL ratio
32.7%
(2024 – 33.0%) |
The Minimum Requirements of own funds and Eligible Liabilities (MREL) ratio decreased to 32.7% driven by a £3.8 billion increase in RWAs partially offset by a £0.7 billion increase in MREL. MREL increased to £61.2 billion driven by a £2.4 billion increase in eligible capital partially offset by a £1.6 billion decrease in senior unsecured debt.
The capital increase was driven by CET1 movements and the issuance of a £0.7 billion Additional Tier 1 instrument and a €1.0 billion subordinated debt Tier 2 instrument.
The decrease in senior unsecured debt was driven by the redemption of a €1.5 billion debt instrument and foreign exchange movements.
|
|
UK leverage ratio
5.2%
(2024 – 5.0%) |
The leverage ratio increased by 20 basis points to 5.2% due to a £1.5 billion increase in Tier 1 capital partially offset by a £5.3 billion increase in leverage exposure. The key drivers in the leverage exposure were an increase in trading assets and other off balance sheet items. | |
|
Liquidity portfolio
£222.1bn
(2024 - £222.3bn) |
The liquidity portfolio decreased by £0.2 billion to £222.1 billion compared with Q4 2024. Primary liquidity increased by £2.0 billion to £163.1 billion, driven by an increase in customer deposits and issuance partially offset by increased lending. Secondary liquidity decreased by £2.2 billion due to a reduced pre-positioned collateral at the Bank of England. | |
|
LCR spot
150%
(2024 – 150%)
|
The spot Liquidity Coverage Ratio (LCR) of 150%, unchanged compared with Q4 2024 primarily due to increased lending partially offset by increased issuance. | |
|
LCR average
151%
(2024 – 151%) | ||
|
NSFR spot
136%
(2024 – 137%)
|
The spot Net Stable Funding Ratio (NSFR) of 136% decreased 1% compared with Q4 2024 driven by increased lending offset by increased issuance. | |
|
NSFR average
137%
(2024 – 137%) | ||
| NatWest Group - Form 6-K Q1 2025 Results | 25 |
Risk and capital management continued
Capital, liquidity and funding risk continued
Maximum Distributable Amount (MDA) and Minimum Capital Requirements
NatWest Group is subject to minimum capital requirements relative to RWAs. The table below summarises the minimum capital requirements (the sum of Pillar 1 and Pillar 2A), and the additional capital buffers which are held in excess of the regulatory minimum requirements and are usable in stress.
Where the CET1 ratio falls below the sum of the minimum capital and the combined buffer requirement, there is a subsequent automatic restriction on the amount available to service discretionary payments (including AT1 coupons), known as the MDA. Note that different requirements apply to individual legal entities or sub-groups and that the table shown does not reflect any incremental PRA buffer requirements, which are not disclosable.
The current capital position provides significant headroom above both our minimum requirements and our MDA threshold requirements.
| Type | CET1 | Total Tier 1 | Total capital |
| Pillar 1 requirements | 4.5% | 6.0% | 8.0% |
| Pillar 2A requirements | 1.8% | 2.4% | 3.2% |
| Minimum Capital Requirements | 6.3% | 8.4% | 11.2% |
| Capital conservation buffer | 2.5% | 2.5% | 2.5% |
| Countercyclical capital buffer (1) | 1.7% | 1.7% | 1.7% |
| MDA threshold (2) | 10.5% | n/a | n/a |
| Overall capital requirement | 10.5% | 12.6% | 15.4% |
| Capital ratios at 31 March 2025 | 13.8% | 17.0% | 20.6% |
| Headroom (3,4) | 3.3% | 4.4% | 5.2% |
| (1) | The UK countercyclical capital buffer (CCyB) rate is currently being maintained at 2%. The rate may vary in either direction in the future, depending on how risks develop. Foreign exposures may be subject to different CCyB rates depending on the rates set in those jurisdictions. |
| (2) | Pillar 2A requirements for NatWest Group are set as a variable amount with the exception of some fixed add-ons. |
| (3) | The headroom does not reflect excess distributable capital and may vary over time. |
| (4) | Headroom as at 31 December 2024 was CET1 3.1%, Total Tier 1 3.9% and Total capital 4.3%. |
Leverage ratios
The table below summarises the minimum ratios of capital to leverage exposure under the binding PRA UK leverage framework applicable for NatWest Group.
| Type | CET1 | Total Tier 1 |
| Minimum ratio | 2.44% | 3.25% |
| Countercyclical leverage ratio buffer (1) | 0.6% | 0.6% |
| Total | 3.04% | 3.85% |
| (1) | The countercyclical leverage ratio buffer is set at 35% of NatWest Group’s CCyB. |
Liquidity and funding ratios
The table below summarises the minimum requirements for key liquidity and funding metrics under the PRA framework.
| Type | ||
| Liquidity Coverage Ratio (LCR) | 100% | |
| Net Stable Funding Ratio (NSFR) | 100% |
| NatWest Group - Form 6-K Q1 2025 Results | 26 |
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital and leverage ratios
The tables below show key prudential metrics calculated in accordance with current PRA rules.
| 31 March | 31 December | |
| 2025 | 2024 | |
| Capital adequacy ratios (1) | % | % |
| CET1 | 13.8 | 13.6 |
| Tier 1 | 17.0 | 16.5 |
| Total | 20.6 | 19.7 |
| Capital | £m | £m |
| Tangible equity | 28,025 | 26,482 |
| Expected loss less impairment | (39) | (27) |
| Prudential valuation adjustment | (230) | (230) |
| Deferred tax assets | (1,007) | (1,084) |
| Own credit adjustments | 18 | 28 |
| Pension fund assets | (151) | (147) |
| Cash flow hedging reserve | 1,314 | 1,443 |
| Foreseeable ordinary dividends | (1,875) | (1,249) |
| Adjustment for trust assets (2) | (365) | (365) |
| Adjustments under IFRS 9 transitional arrangements | - | 33 |
| Other adjustments for regulatory purposes | 41 | 44 |
| Total regulatory adjustments | (2,294) | (1,554) |
| CET1 capital | 25,731 | 24,928 |
| Additional AT1 capital | 6,005 | 5,259 |
| Tier 1 capital | 31,736 | 30,187 |
| Tier 2 capital | 6,721 | 5,918 |
| Total regulatory capital | 38,457 | 36,105 |
| Risk-weighted assets (1) | ||
| Credit risk | 149,015 | 148,078 |
| Counterparty credit risk | 7,342 | 7,103 |
| Market risk | 6,689 | 6,219 |
| Operational risk | 23,959 | 21,821 |
| Total RWAs | 187,005 | 183,221 |
For the footnotes to the table refer to the following page.
| NatWest Group - Form 6-K Q1 2025 Results | 27 |
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital and leverage ratios continued
| 31 March | 31 December | |
| 2025 | 2024 | |
| Leverage | £m | £m |
| Cash and balances at central banks | 99,045 | 92,994 |
| Trading assets | 53,294 | 48,917 |
| Derivatives | 62,853 | 78,406 |
| Financial assets | 469,628 | 469,599 |
| Other assets | 25,212 | 18,069 |
| Total assets | 710,032 | 707,985 |
| Derivatives | ||
| - netting and variation margin | (60,701) | (76,101) |
| - potential future exposures | 16,859 | 16,692 |
| Securities financing transactions gross up | 2,164 | 2,460 |
| Other off balance sheet items | 60,927 | 59,498 |
| Regulatory deductions and other adjustments | (18,508) | (11,014) |
| Claims on central banks | (95,520) | (89,299) |
| Exclusion of bounce back loans | (2,114) | (2,422) |
| UK leverage exposure | 613,139 | 607,799 |
| UK leverage ratio (%) (3) | 5.2 | 5.0 |
| (1) | The IFRS 9 transitional capital rules in respect of ECL provisions no longer apply as of 1 January 2025. (The impact of the IFRS 9 transitional adjustments at 31 December 2024 was £33 million for CET1 capital, £33 million for total capital and £3 million RWAs. Excluding this adjustment at 31 December 2024, the CET1 ratio was 13.6%, Tier 1 capital ratio was 16.5% and the Total capital ratio was 19.7%). |
| (2) | Prudent deduction in respect of agreement with the pension fund. |
| (3) | The UK leverage exposure and Tier 1 capital are calculated in accordance with current PRA rules. The IFRS 9 transitional capital rules in respect of ECL no longer apply as of 1 January 2025. (Excluding the IFRS 9 transitional adjustment, the UK leverage ratio at 31 December 2024 was 5.0%). |
| NatWest Group - Form 6-K Q1 2025 Results | 28 |
Risk and capital management continued
Capital, liquidity and funding risk continued
Capital flow statement
The table below analyses the movement in CET1, AT1 and Tier 2 capital for the three months ended 31 March 2025.
| CET1 | AT1 | Tier 2 | Total | |
| £m | £m | £m | £m | |
| At 31 December 2024 | 24,928 | 5,259 | 5,918 | 36,105 |
| Attributable profit for the period | 1,252 | - | - | 1,252 |
| Foreseeable ordinary dividends | (626) | - | - | (626) |
| Foreign exchange reserve | (27) | - | - | (27) |
| FVOCI reserve | 42 | - | - | 42 |
| Own credit | (10) | - | - | (10) |
| Share based remuneration and shares vested under employee share schemes | 99 | - | - | 99 |
| Goodwill and intangibles deduction | 48 | - | - | 48 |
| Deferred tax assets | 77 | - | - | 77 |
| Prudential valuation adjustments | - | - | - | - |
| New issues of capital instruments | - | 746 | 823 | 1,569 |
| Foreign exchange movements | - | - | (20) | (20) |
| Adjustment under IFRS 9 transitional arrangements | (33) | - | - | (33) |
| Expected loss less impairment | (12) | - | - | (12) |
| Other movements | (7) | - | - | (7) |
| At 31 March 2025 | 25,731 | 6,005 | 6,721 | 38,457 |
| - | For CET1 movements refer to the key points on page 25. |
| - | The AT1 movement reflects the £0.7 billion 7.500% Reset Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes issued in March 2025. |
| - | Tier 2 movements of £0.8 billion include an increase of £0.8 billion for a €1.0 billion 3.723% per cent Fixed to Fixed Rate Reset Tier 2 Notes 2035 issued in February 2025 partially offset by immaterial foreign exchange movements on Tier 2 instruments. |
| NatWest Group - Form 6-K Q1 2025 Results | 29 |
Risk and capital management continued
Capital, liquidity and funding risk continued
Risk-weighted assets
The table below analyses the movement in RWAs during the period, by key drivers.
| Counterparty | Operational | ||||
| Credit risk | credit risk | Market risk | risk (1) | Total | |
| £bn | £bn | £bn | £bn | £bn | |
| At 31 December 2024 | 148.1 | 7.1 | 6.2 | 21.8 | 183.2 |
| Foreign exchange movement | (0.2) | - | - | - | (0.2) |
| Business movement | 0.1 | 0.2 | 0.5 | 2.2 | 3.0 |
| Risk parameter changes | 0.2 | - | - | - | 0.2 |
| Methodology changes | - | - | - | - | - |
| Model updates | 0.8 | - | - | - | 0.8 |
| Acquisitions and disposals | - | - | - | - | - |
| At 31 March 2025 | 149.0 | 7.3 | 6.7 | 24.0 | 187.0 |
| (1) | Operational risk annual recalculation is performed at Q1 based on the previous three years audited income. |
The table below analyses segmental RWAs.
| Total | |||||
| Retail | Private | Commercial & | Central items | NatWest | |
| Banking | Banking | Institutional | & other | Group | |
| Total RWAs | £bn | £bn | £bn | £bn | £bn |
| At 31 December 2024 | 65.5 | 11.0 | 104.7 | 2.0 | 183.2 |
| Foreign exchange movement | - | - | (0.2) | - | (0.2) |
| Business movement | 0.6 | 0.3 | 2.5 | (0.4) | 3.0 |
| Risk parameter changes | 0.3 | - | (0.1) | - | 0.2 |
| Methodology changes | - | - | - | - | - |
| Model updates | 0.4 | - | 0.4 | - | 0.8 |
| Acquisitions and disposals | - | - | - | - | - |
| At 31 March 2025 | 66.8 | 11.3 | 107.3 | 1.6 | 187.0 |
| Credit risk | 57.7 | 9.7 | 80.2 | 1.4 | 149.0 |
| Counterparty credit risk | 0.3 | - | 7.0 | - | 7.3 |
| Market risk | 0.1 | - | 6.6 | - | 6.7 |
| Operational risk | 8.7 | 1.6 | 13.5 | 0.2 | 24.0 |
| Total RWAs | 66.8 | 11.3 | 107.3 | 1.6 | 187.0 |
Total RWAs increased by £3.8 billion to £187.0 billion during the period mainly reflecting:
| - | A reduction in risk-weighted assets from foreign exchange movements of £0.2 billion due to sterling appreciation versus the US dollar and depreciation versus the euro. |
| - | An increase in business movements of £3.0 billion was primarily driven by the annual recalculation of operational risk and an increase in market risk and counterparty credit risk. Increases in credit risk from lending growth were partially offset by reductions due to active RWA management. |
| - | An increase in risk parameters of £0.2 billion primarily driven by movements in risk metrics within Retail Banking and Commercial & Institutional. |
| - | An increase in model updates of £0.8 billion driven by CRD IV model updates within Retail Banking and Commercial & Institutional. |
| NatWest Group - Form 6-K Q1 2025 Results | 30 |
Risk and capital management continued
Capital, liquidity and funding risk continued
Liquidity portfolio
The table below shows the composition of the liquidity portfolio with primary liquidity aligned to high-quality liquid assets on a regulatory LCR basis. Secondary liquidity comprises assets which are eligible as collateral for local central bank liquidity facilities and do not form part of the LCR eligible high-quality liquid assets.
| 31 March 2025 | 31 December 2024 | ||||||
| NatWest | NWH | UK Dol | NatWest | NWH | UK Dol | ||
| Group (1) | Group (2) | Sub | Group (1) | Group (2) | Sub | ||
| £m | £m | £m | £m | £m | £m | ||
| Cash and balances at central banks | 95,121 | 63,979 | 63,308 | 88,617 | 58,313 | 57,523 | |
| High quality government/MDB/PSE and GSE bonds (3) | 55,545 | 40,551 | 40,551 | 58,818 | 43,275 | 43,275 | |
| Extremely high quality covered bonds | 4,341 | 4,340 | 4,340 | 4,341 | 4,340 | 4,340 | |
| LCR level 1 Eligible Assets | 155,007 | 108,870 | 108,199 | 151,776 | 105,928 | 105,138 | |
| LCR level 2 Eligible Assets (4) | 8,084 | 6,738 | 6,738 | 9,271 | 7,957 | 7,957 | |
| Primary liquidity (HQLA) (5) | 163,091 | 115,608 | 114,937 | 161,047 | 113,885 | 113,095 | |
| Secondary liquidity | 59,021 | 58,991 | 58,991 | 61,230 | 61,200 | 61,200 | |
| Total liquidity value | 222,112 | 174,599 | 173,928 | 222,277 | 175,085 | 174,295 | |
| (1) | NatWest Group includes the UK Domestic Liquidity Sub-Group (NWB Plc, RBS plc and Coutts & Co), NatWest Markets Plc and other significant operating subsidiaries that hold liquidity portfolios. These include The Royal Bank of Scotland International Limited and NWM N.V. who hold managed portfolios that comply with local regulations that may differ from PRA rules. |
| (2) | NWH Group comprises UK DoLSub and NatWest Bank Europe GmbH who hold managed portfolios that comply with local regulations that may differ from PRA rules. |
| (3) | Multilateral development bank abbreviated to MDB, public sector entities abbreviated to PSE and government sponsored entities abbreviated to GSE. |
| (4) | Includes Level 2A and Level 2B. |
| (5) | High-quality liquid assets abbreviated to HQLA. |
| NatWest Group - Form 6-K Q1 2025 Results | 31 |
Condensed consolidated income statement
for the period ended 31 March 2025 (unaudited)
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Interest receivable | 6,315 | 6,453 | 6,055 |
| Interest payable | (3,289) | (3,485) | (3,404) |
| Net interest income | 3,026 | 2,968 | 2,651 |
| Fees and commissions receivable | 802 | 797 | 770 |
| Fees and commissions payable | (189) | (179) | (177) |
| Trading income | 284 | 218 | 129 |
| Other operating income | 57 | 21 | 102 |
| Non-interest income | 954 | 857 | 824 |
| Total income | 3,980 | 3,825 | 3,475 |
| Staff costs | (1,069) | (949) | (1,062) |
| Premises and equipment | (294) | (348) | (293) |
| Other administrative expenses | (350) | (666) | (424) |
| Depreciation and amortisation | (266) | (304) | (273) |
| Operating expenses | (1,979) | (2,267) | (2,052) |
| Profit before impairment losses | 2,001 | 1,558 | 1,423 |
| Impairment losses | (189) | (66) | (93) |
| Operating profit before tax | 1,812 | 1,492 | 1,330 |
| Tax charge | (471) | (233) | (339) |
| Profit from continuing operations | 1,341 | 1,259 | 991 |
| Profit/(loss) from discontinued operations, net of tax | - | 69 | (4) |
| Profit for the period | 1,341 | 1,328 | 987 |
| Attributable to: | |||
| Ordinary shareholders | 1,252 | 1,248 | 918 |
| Paid-in equity holders | 90 | 81 | 60 |
| Non-controlling interests | (1) | (1) | 9 |
| 1,341 | 1,328 | 987 | |
| Earnings per ordinary share - continuing operations | 15.5p | 14.5p | 10.5p |
| Earnings per ordinary share - discontinued operations | - | 0.8p | - |
| Total earnings per share attributable to ordinary shareholders - basic | 15.5p | 15.3p | 10.5p |
| Earnings per ordinary share - fully diluted continuing operations | 15.4p | 14.4p | 10.4p |
| Earnings per ordinary share - fully diluted discontinued operations | - | 0.8p | - |
| Total earnings per share attributable to ordinary shareholders - fully diluted | 15.4p | 15.2p | 10.4p |
| NatWest Group - Form 6-K Q1 2025 Results | 32 |
Condensed consolidated statement of comprehensive income
for the period ended 31 March 2025 (unaudited)
| Quarter ended | ||||
| 31 March | 31 December | 31 March | ||
| 2025 | 2024 | 2024 | ||
| £m | £m | £m | ||
| Profit for the period | 1,341 | 1,328 | 987 | |
| Items that will not be reclassified subsequently to profit or loss: | ||||
| Remeasurement of retirement benefit schemes | 6 | (74) | (36) | |
| Changes in fair value of financial liabilities designated at fair value through profit or loss (FVTPL) due to changes in credit risk | 4 | (8) | (23) | |
| FVOCI financial assets | 14 | (10) | (13) | |
| Tax | 2 | 20 | 31 | |
| 26 | (72) | (41) | ||
| Items that will be reclassified subsequently to profit or loss when specific conditions are met: | ||||
| FVOCI financial assets | 34 | (46) | 45 | |
| Cash flow hedges (1) | 183 | (110) | (66) | |
| Currency translation | (30) | 124 | (25) | |
| Tax | (62) | 43 | 3 | |
| 125 | 11 | (43) | ||
| Other comprehensive income/(loss) after tax | 151 | (61) | (84) | |
| Total comprehensive income for the period | 1,492 | 1,267 | 903 | |
| Attributable to: | ||||
| Ordinary shareholders | 1,403 | 1,187 | 834 | |
| Paid-in equity holders | 90 | 81 | 60 | |
| Non-controlling interests | (1) | (1) | 9 | |
| 1,492 | 1,267 | 903 | ||
| (1) | Refer to footnote 2 and 3 of the consolidated statement of changes in equity. |
| NatWest Group - Form 6-K Q1 2025 Results | 33 |
Condensed consolidated balance sheet
as at 31 March 2025 (unaudited)
| 31 March | 31 December | |
| 2025 | 2024 | |
| £m | £m | |
| Assets | ||
| Cash and balances at central banks | 99,045 | 92,994 |
| Trading assets | 53,294 | 48,917 |
| Derivatives | 62,853 | 78,406 |
| Settlement balances | 9,261 | 2,085 |
| Loans to banks - amortised cost | 6,894 | 6,030 |
| Loans to customers - amortised cost | 398,806 | 400,326 |
| Other financial assets | 63,928 | 63,243 |
| Intangible assets | 7,537 | 7,588 |
| Other assets | 8,414 | 8,396 |
| Total assets | 710,032 | 707,985 |
| Liabilities | ||
| Bank deposits | 34,120 | 31,452 |
| Customer deposits | 434,617 | 433,490 |
| Settlement balances | 9,257 | 1,729 |
| Trading liabilities | 57,489 | 54,714 |
| Derivatives | 56,386 | 72,082 |
| Other financial liabilities | 61,905 | 61,087 |
| Subordinated liabilities | 7,004 | 6,136 |
| Notes in circulation | 3,215 | 3,316 |
| Other liabilities | 4,432 | 4,601 |
| Total liabilities | 668,425 | 668,607 |
| Equity | ||
| Ordinary shareholders' interests | 35,562 | 34,070 |
| Other owners' interests | 6,029 | 5,280 |
| Owners' equity | 41,591 | 39,350 |
| Non-controlling interests | 16 | 28 |
| Total equity | 41,607 | 39,378 |
| Total liabilities and equity | 710,032 | 707,985 |
| NatWest Group - Form 6-K Q1 2025 Results | 34 |
Condensed consolidated statement of changes in equity
for the period ended 31 March 2025 (unaudited)
| Share | Other | Other reserves | Total | Non | |||||||
| capital and | Paid-in | statutory | Retained | Fair | Cash flow | Foreign | owners' | controlling | Total | ||
| share premium | equity | reserves (1) | earnings | value | hedging (2,3) | exchange | Merger | equity | interests | equity | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
| At 1 January 2025 | 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 | 1,342 | 1,342 | (1) | 1,341 | |||||||
| Other comprehensive income | |||||||||||
| Realised gains in period on FVOCI equity shares | (2) | 2 | - | - | |||||||
| Remeasurement of retirement benefit schemes | 6 | 6 | 6 | ||||||||
| Changes in fair value of credit in financial liabilities | |||||||||||
| designated at FVTPL due to own credit risk | 4 | 4 | 4 | ||||||||
| Unrealised gains | 56 | 56 | 56 | ||||||||
| Amounts recognised in equity | (112) | (112) | (112) | ||||||||
| Retranslation of net assets | (24) | (24) | (24) | ||||||||
| Losses on hedges of net assets | (6) | (6) | (6) | ||||||||
| Amount transferred from equity to earnings | (8) | 295 | - | 287 | 287 | ||||||
| Tax | (1) | (8) | (54) | 3 | (60) | (60) | |||||
| Total comprehensive income/(loss) | - | - | - | 1,349 | 42 | 129 | (27) | - | 1,493 | (1) | 1,492 |
| Transactions with owners | |||||||||||
| Paid-in equity dividends paid | (90) | (90) | (90) | ||||||||
| Securities issued in the period (4) | 749 | 749 | 749 | ||||||||
| Purchase of non-controlling interest | (10) | (10) | (11) | (21) | |||||||
| Employee share schemes | (9) | (9) | (9) | ||||||||
| Shares vested under employee share schemes | 64 | 30 | 94 | 94 | |||||||
| Share-based renumeration | 14 | 14 | 14 | ||||||||
| At 31 March 2025 | 10,133 | 6,029 | 2,414 | 12,710 | (61) | (1,314) | 799 | 10,881 | 41,591 | 16 | 41,607 |
| (1) | Other statutory reserves consist of Capital redemption reserves of £3,218 million and Own shares held reserves of (£804) million. |
| (2) | The change in the cash flow hedging reserve is driven by realised accrued interest transferred into the income statement and an increase in swap rates in the longer tenors in the year, where the portfolio of swaps are net receive fixed from an interest rate risk perspective. |
| (3) | 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. |
| (4) | The issuance above is after netting of issuance fees of £1.6 million, and the associated tax credit of £0.4 million. |
| NatWest Group - Form 6-K Q1 2025 Results | 35 |
Notes
1. Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction with NatWest Group plc’s 2024 Annual Report on Form 20-F. The accounting policies are the same as those applied in the consolidated financial statements.
The directors have prepared the condensed consolidated financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date they are approved.
NatWest Group plc’s 2024 Annual Report on Form 20-F, issued on 21 February 2025, included disclosures about NatWest Group's litigation and regulatory matters in Note 25. Set out below are the material developments in those matters (all of which have been previously disclosed) since publication of the 2024 Annual Report on Form 20-F.
FX litigation
NWM Plc, NWMSI and/or NatWest Group plc are defendants in several cases relating to NWM Plc’s foreign exchange (FX) business. In May 2025, NWM Plc executed an agreement to settle the claim in the Federal Court of Australia, subject to court approval of that settlement. The settlement amount is covered in full by an existing provision.
On 20 June 2024 NatWest Group announced it had entered into an agreement with Sainsbury's Bank plc (Sainsbury's Bank) to acquire the retail banking assets and liabilities of Sainsbury's Bank which comprised its outstanding credit card, unsecured personal loan and saving accounts. The acquisition completed on 1 May 2025.
NatWest Group acquired approximately £2.5 billion of gross customer assets, comprising £1.4 billion of unsecured personal loans and £1.1 billion of credit card balances, together with approximately £2.7 billion of customer deposits.
The transaction adds around one million customer accounts and results in a day 1 ECL charge of c.£0.1 billion, increases RWAs by c.£1.8 billion and decreases the CET1 ratio by 16 basis points.
Other than as disclosed in this document, there have been no significant events between 31 March 2025 and the date of approval of this announcement that would require a change to, or additional disclosure, in the announcement.
| NatWest Group - Form 6-K Q1 2025 Results | 36 |
Additional information
The following table shows NatWest Group’s issued and fully paid share capital, owners’ equity and indebtedness on a consolidated basis in accordance with IFRS as at 31 March 2025.
|
As at 2025 | |
| £m | |
| Share capital - allotted, called up and fully paid | |
| Ordinary shares of £1.0769 | 8,972 |
| Retained income and other reserves | 32,619 |
| Owners’ equity | 41,591 |
| NatWest Group indebtedness | |
| Trading liabilities - debt securities in issue | 259 |
| Other financial liabilities – debt securities in issue | 59,873 |
| Subordinated liabilities | 7,004 |
| Total indebtedness | 67,136 |
| Total capitalisation and indebtedness | 108,727 |
Under IFRS, certain preference shares are classified as debt and are included in subordinated liabilities in the table above.
The information contained in the table above has not changed materially since 31 March 2025.
| NatWest Group - Form 6-K Q1 2025 Results | 37 |
NatWest Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). This document contains a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-GAAP financial measures in accordance with the Securities and Exchange Commission (SEC) regulations. These measures are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison.
The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include a calculation of metrics that are used throughout the banking industry.
These non-IFRS measures are not a substitute for IFRS measures and a reconciliation to the closest IFRS measure is presented where appropriate.
| Measure | Description |
|
Cost:income ratio (excl. litigation and conduct)
Refer to table 2. Cost:income ratio (excl. litigation and conduct) on page 40. |
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 14-16 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.
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 34 for components of calculation. |
Funded assets is calculated as total assets less derivative assets. This measure allows review of balance sheet trends exclusive of the volatility associated with derivative fair values.. RBS\Finance\0000012\Secret |
|
Loan:deposit ratio (excl. repos and reverse repos)
Refer to table 5. Loan:deposit ratio (excl. repos and reverse repos) on page 41.
|
Loan:deposit ratio (excl. repos and reverse repos) is calculated as net customer loans held at amortised cost excluding reverse repos divided by total customer deposits excluding repos. This metric is used to assess liquidity.
The removal of repos and reverse repos reduces volatility and presents the ratio on a basis that is comparable to UK peers. The nearest ratio using IFRS measures is loan:deposit ratio, calculated as net loans to customers held at amortised cost divided by customer deposits. |
|
NatWest Group return on tangible equity
Refer to table 7. NatWest Group return on tangible equity on page 42.
|
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. |
| NatWest Group - Form 6-K Q1 2025 Results | 38 |
Non-IFRS financial measures continued
| Measure | Description |
|
Net interest margin (NIM) and average interest earning assets
Refer to Segment performance on pages 14-16 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, loans to customers and other financial assets mostly comprising of debt securities. 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 14-16 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.
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 41. |
The management analysis of operating expenses shows litigation and conduct costs separately. These amounts are included within staff costs and other administrative expenses in the statutory analysis. Other operating expenses excludes litigation and conduct costs, which are more volatile and may distort period-on-period comparisons. |
|
Segmental return on equity
Refer to table 8. Segmental return on equity on page 42.
|
Segmental 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 40. |
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 calculated as ordinary shareholders’ interests divided by the number of ordinary shares in issue. |
|
Total combined assets and liabilities (CAL) - Private Banking
Refer to table 6. Total combined assets and liabilities (CAL) - Private Banking on page 41. |
CAL refers to customer deposits, net loans to customers and AUMA. To avoid double counting, investment cash is deducted as it is reported within customer deposits and AUMA.
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 40. |
Total income excluding notable items is calculated as total income less notable items. The exclusion of notable items aims to remove the impact of one-offs and other items which may distort period-on-period comparisons. |
| NatWest Group - Form 6-K Q1 2025 Results | 39 |
Non-IFRS financial measures continued
1. Total income excluding notable items
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Continuing operations | |||
| Total income | 3,980 | 3,825 | 3,475 |
| Less notable items | |||
| Commercial & Institutional | |||
| Own credit adjustments (OCA) | 6 | (4) | (5) |
| Central items & other | |||
| Share of associate profits/(losses) for Business Growth Fund | 15 | (1) | 7 |
| Interest and foreign exchange risk management derivatives not in hedge accounting relationships | 7 | 19 | 59 |
| Foreign exchange recycling losses | - | (30) | - |
| Tax interest on prior periods | - | (31) | - |
| 28 | (47) | 61 | |
| Total income excluding notable items | 3,952 | 3,872 | 3,414 |
2. Cost:income ratio (excl. litigation and conduct)
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Continuing operations | |||
| Operating expenses | 1,979 | 2,267 | 2,052 |
| Less litigation and conduct costs | (44) | (153) | (24) |
| Other operating expenses | 1,935 | 2,114 | 2,028 |
| Total income | 3,980 | 3,825 | 3,475 |
| Cost:income ratio | 49.7% | 59.3% | 59.1% |
| Cost:income ratio (excl. litigation and conduct) | 48.6% | 55.3% | 58.4% |
3. Tangible net asset value (TNAV) per ordinary share
| Quarter ended or as at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| Ordinary shareholders’ interests (£m) | 35,562 | 34,070 | 33,958 |
| Less intangible assets (£m) | (7,537) | (7,588) | (7,598) |
| Tangible equity (£m) | 28,025 | 26,482 | 26,360 |
| Ordinary shares in issue (millions) (1) | 8,067 | 8,043 | 8,727 |
| NAV per ordinary share (pence) | 441p | 424p | 389p |
| TNAV per ordinary share (pence) | 347p | 329p | 302p |
| (1) | The number of ordinary shares in issue excludes own shares held. |
| NatWest Group - Form 6-K Q1 2025 Results | 40 |
Non-IFRS financial measures continued
4. Operating expenses excluding litigation and conduct
| Quarter ended | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Other operating expenses | |||
| Staff expenses | 1,055 | 938 | 1,047 |
| Premises and equipment | 294 | 348 | 293 |
| Other administrative expenses | 320 | 524 | 415 |
| Depreciation and amortisation | 266 | 304 | 273 |
| Total other operating expenses | 1,935 | 2,114 | 2,028 |
| Litigation and conduct costs | |||
| Staff expenses | 14 | 11 | 15 |
| Other administrative expenses | 30 | 142 | 9 |
| Total litigation and conduct costs | 44 | 153 | 24 |
| Total operating expenses | 1,979 | 2,267 | 2,052 |
| Total operating expenses excluding litigation and conduct | 1,935 | 2,114 | 2,028 |
5. Loan:deposit ratio (excl. repos and reverse repos)
| As at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Loans to customers - amortised cost | 398,806 | 400,326 | 378,010 |
| Less reverse repos | (30,258) | (34,846) | (23,120) |
| Loans to customers - amortised cost (excl. reverse repos) | 368,548 | 365,480 | 354,890 |
| Customer deposits | 434,617 | 433,490 | 432,793 |
| Less repos | (1,070) | (1,363) | (11,437) |
| Customer deposits (excl. repos) | 433,547 | 432,127 | 421,356 |
| Loan:deposit ratio (%) | 92% | 92% | 87% |
| Loan:deposit ratio (excl. repos and reverse repos) (%) | 85% | 85% | 84% |
6. Total combined assets and liabilities (CAL) - Private Banking
| As at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £bn | £bn | £bn | |
| Net loans to customers (amortised cost) | 18.4 | 18.2 | 18.2 |
| Customer deposits | 41.2 | 42.4 | 37.8 |
| Assets under management and administration (AUMA) | 48.5 | 48.9 | 43.1 |
| Less investment cash included in both customer deposits and AUMA | (1.2) | (1.1) | (1.2) |
| Total combined assets and liabilities (CAL) | 106.9 | 108.4 | 97.9 |
| NatWest Group - Form 6-K Q1 2025 Results | 41 |
Non-IFRS financial measures continued
7. NatWest Group return on tangible equity
| Quarter ended or as at | |||
| 31 March | 31 December | 31 March | |
| 2025 | 2024 | 2024 | |
| £m | £m | £m | |
| Profit attributable to ordinary shareholders | 1,252 | 1,248 | 918 |
| Annualised profit attributable to ordinary shareholders | 5,008 | 4,992 | 3,672 |
| Average total equity | 40,354 | 38,915 | 37,490 |
| Adjustment for average other owners' equity and intangible assets | (13,228) | (12,703) | (11,684) |
| Adjusted total tangible equity | 27,126 | 26,212 | 25,806 |
| Return on equity | 12.4% | 12.8% | 9.8% |
| Return on tangible equity | 18.5% | 19.0% | 14.2% |
8. Segmental return on equity
| Quarter ended 31 March 2025 | Quarter ended 31 December 2024 | Quarter ended 31 March 2024 | |||||||||
| Retail | Private | Commercial & | Retail | Private | Commercial & | Retail | Private | Commercial & | |||
| Banking | Banking | Institutional | Banking | Banking | Institutional | Banking | Banking | Institutional | |||
| Operating profit (£m) | 750 | 77 | 1,020 | 677 | 75 | 861 | 489 | 33 | 769 | ||
| Paid-in equity cost allocation (£m) | (23) | (4) | (63) | (23) | (5) | (53) | (16) | (4) | (40) | ||
| Adjustment for tax (£m) | (204) | (20) | (239) | (183) | (20) | (202) | (132) | (8) | (182) | ||
| Adjusted attributable profit (£m) | 523 | 53 | 718 | 471 | 50 | 606 | 341 | 21 | 547 | ||
| Annualised adjusted attributable profit (£m) | 2,092 | 212 | 2,872 | 1,884 | 202 | 2,424 | 1,362 | 84 | 2,187 | ||
| Average RWAe (£bn) | 66.9 | 11.1 | 106.8 | 65.6 | 11.0 | 106.0 | 61.7 | 11.2 | 109.0 | ||
| Equity factor | 12.8% | 11.1% | 13.9% | 13.4% | 11.2% | 13.8% | 13.4% | 11.2% | 13.8% | ||
| Average notional equity (£bn) | 8.6 | 1.2 | 14.8 | 8.8 | 1.2 | 14.6 | 8.3 | 1.3 | 15.0 | ||
| Return on equity (%) | 24.5% | 17.1% | 19.3% | 21.4% | 16.3% | 16.6% | 16.5% | 6.7% | 14.6% | ||
| NatWest Group - Form 6-K Q1 2025 Results | 42 |
Performance measures not defined under IFRS
The table below summarises other performance measures used by NatWest Group, not defined under IFRS, and therefore a reconciliation to the nearest IFRS measure is not applicable.
| Measure | Description |
| AUMA |
AUMA comprises both assets under management (AUM) and assets under administration (AUA) serviced through the Private Banking segment. AUM comprise assets where the investment management is undertaken by Private Banking on behalf of Private Banking, Retail Banking and Commercial & Institutional customers.
AUA comprise i) third party assets held on an execution-only basis in custody by Private Banking, Retail Banking and Commercial & Institutional for their customers, for which the execution services are supported by Private Banking ii) AUA of Cushon, acquired on 1 June 2023, which are supported by Private Banking 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 and assets under administration.
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, Retail Banking and Commercial & Institutional. |
| Climate and sustainable funding and financing | The climate and sustainable funding and financing metric is used by NatWest Group to measure the level of support it provides customers, through lending products and underwriting activities, to help in their transition towards a net zero, climate resilient and sustainable economy. We have a target to provide £100 billion of climate and sustainable funding and financing between the 1 July 2021 and the end of 2025. As part of this, we aim to provide at least £10 billion in lending for residential properties with EPC ratings A and B between 1 January 2023 and the end of 2025. |
| Loan impairment rate | Loan impairment rate is the annualised loan impairment charge divided by gross customer loans. This measure is used to assess the credit quality of the loan book. |
| Third party rates | Third party customer asset rate is calculated as annualised interest receivable on third-party loans to customers as a percentage of third-party loans to customers. This excludes assets of disposal groups, intragroup items, loans to banks and liquid asset portfolios. Third party customer funding rate reflects interest payable or receivable on third-party customer deposits, including interest bearing and non- interest bearing customer deposits. Intragroup items, bank deposits, debt securities in issue and subordinated liabilities are excluded for customer funding rate calculation. |
| Wholesale funding | Wholesale funding comprises deposits by banks (excluding repos), debt securities in issue and subordinated liabilities. Funding risk is the risk of not maintaining a diversified, stable and cost-effective funding base. The disclosure of wholesale funding highlights the extent of our diversification and how we mitigate funding risk. |
Legal Entity Identifier: 2138005O9XJIJN4JPN90
| NatWest Group - Form 6-K Q1 2025 Results | 43 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.
NatWest Group plc
Registrant
/s/ Katie Murray
Group Chief Financial Officer
2 May 2025