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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
May, 2025
Commission File Number 001-10306
NatWest Group plc
250 Bishopsgate,
London, EC2M 4AA
United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
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Form 20-F ☒
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Form 40-F ☐
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The
following information was issued as Company announcements in
London, England and is furnished pursuant to General Instruction B
to the General Instructions to Form 6-K:
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Inside this report
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Business performance summary
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2
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Q1 2025 performance summary
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3
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Performance key metrics and ratios
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5
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Chief Financial Officer’s review
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6
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Retail Banking
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7
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Private Banking
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8
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Commercial & Institutional
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9
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Central items & other
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10
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Segment performance
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Risk and capital management
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13
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Credit
risk
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13
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Segment analysis – portfolio summary
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14
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Segment analysis – loans
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14
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Movement in ECL provision
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15
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ECL post model adjustments
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16
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Sector analysis – portfolio summary
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21
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Capital, liquidity and funding risk | |
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Financial statements and notes
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28
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Condensed consolidated income statement
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29
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Condensed consolidated statement of comprehensive
income
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30
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Condensed consolidated balance sheet
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31
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Condensed consolidated statement of changes in equity
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32
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Presentation of condensed consolidated financial
statements
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32
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Litigation
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32
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Post balance sheet events
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Additional information
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33
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Presentation of information
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33
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Statutory accounts
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33
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Contacts
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33
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Forward-looking statements
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Appendix
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34
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Non-IFRS financial measures
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39
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Performance measures not defined under IFRS
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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 and a
return on tangible equity (RoTE) of 18.5% driving capital
generation pre-distributions of 49 basis points for the
quarter.
-
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.
-
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 of £189 million, or 19 basis points of gross customer
loans, with levels of default stable.
Robust balance sheet with strong capital and liquidity
levels
-
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
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.
-
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 and Accounts and Form 20-F. These statements constitute
forward-looking statements. Refer to Forward-looking statements in
this announcement.
Business performance summary
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Quarter ended
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31 March
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31 December
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31 March
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2025
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2024
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2024
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Summary consolidated income statement
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£m
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£m
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Variance
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£m
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Variance
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Net interest income
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3,026
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2,968
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2.0%
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2,651
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14.1%
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Non-interest income
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954
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857
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11.3%
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824
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15.8%
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Total income
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3,980
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3,825
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4.1%
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3,475
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14.5%
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Litigation and conduct costs
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(44)
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(153)
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(71.2%)
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(24)
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83.3%
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Other operating expenses
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(1,935)
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(2,114)
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(8.5%)
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(2,028)
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(4.6%)
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Operating expenses
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(1,979)
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(2,267)
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(12.7%)
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(2,052)
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(3.6%)
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Profit before impairments
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2,001
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1,558
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28.4%
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1,423
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40.6%
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Impairment losses
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(189)
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(66)
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186.4%
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(93)
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103.2%
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Operating profit before tax
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1,812
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1,492
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21.4%
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1,330
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36.2%
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Tax charge
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(471)
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(233)
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102.1%
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(339)
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38.9%
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Profit from continuing operations
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1,341
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1,259
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6.5%
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991
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35.3%
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Profit/(loss) from discontinued operations, net of tax
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-
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69
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(100.0%)
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(4)
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(100.0%)
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Profit for the period
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1,341
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1,328
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1.0%
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987
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35.9%
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Performance key metrics and ratios
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Notable items within total income (1)
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£28m
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£(47)m
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nm
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£61m
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nm
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Total income excluding notable items (1)
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£3,952m
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£3,872m
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2.1%
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£3,414m
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15.8%
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Net interest margin (1)
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2.27%
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2.19%
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8bps
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2.05%
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22bps
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Average interest earning assets (1)
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£542bn
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£539bn
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0.6%
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£521bn
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4.0%
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Cost:income ratio (excl. litigation and conduct) (1)
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48.6%
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55.3%
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(6.7%)
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58.4%
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(9.8%)
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Loan impairment rate (1)
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19bps
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7bps
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12bps
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10bps
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9bps
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Profit attributable to ordinary shareholders
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£1,252m
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£1,248m
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0.3%
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£918m
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36.4%
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Total earnings per share attributable to ordinary shareholders -
basic
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15.5p
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15.3p
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0.2p
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10.5p
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5.0p
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Return on tangible equity (RoTE) (1)
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18.5%
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19.0%
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(0.5%)
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14.2%
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4.3%
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Climate and sustainable funding and financing (2)
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£7.8bn
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£8.1bn
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(3.7%)
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£6.6bn
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18.2%
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nm =
not meaningful
For the
notes to this table refer to the following page.
Business performance summary continued
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As at
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31 March
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31 December
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31 March
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2025
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2024
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2024
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£bn
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£bn
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Variance
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£bn
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Variance
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Balance sheet
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Total assets
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710.0
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708.0
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0.3%
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697.5
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1.8%
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Loans to customers - amortised cost
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398.8
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400.3
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(0.4%)
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378.0
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5.5%
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Loans to customers excluding central items (1,3)
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371.9
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368.5
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0.9%
|
357.0
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4.2%
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Loans to customers and banks - amortised cost and
FVOCI
|
409.5
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410.2
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(0.2%)
|
387.7
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5.6%
|
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Total impairment provisions (4)
|
3.5
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3.4
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2.9%
|
3.6
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(2.8%)
|
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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
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(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
|
|
|
|||
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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.
Chief Financial Officer’s review
We
delivered a strong performance in the first quarter of 2025 with an
operating profit of £1,812 million and RoTE of 18.5%. 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 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.
-
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 and a RoTE of
18.5%.
Robust balance sheet with strong capital and liquidity
levels
-
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
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.
-
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.
Business performance summary
Retail Banking
|
|
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.
-
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.
Business performance summary continued
Private Banking
|
|
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.
-
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.
Business performance summary continued
Commercial & Institutional
|
|
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.
-
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.
Business performance summary continued
Central items & other
|
|
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.
-
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.
Segment performance
|
|
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.
|
|
|
|
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.
|
|
|
|
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.
|
|
|
|
Risk and capital management
Credit risk
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.
|
|
|
|
Risk and capital management continued
Credit risk continued
Segment analysis – loans
-
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.
Movement in ECL provision
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.
Risk and capital management continued
Credit risk continued
ECL post model adjustments
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.
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 19.
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 19.
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.
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.
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.
|
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%)
|
||
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%
|
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.
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%).
|
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 21.
-
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.
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.
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.
|
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
|
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.
|
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
|
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.
|
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 and
Accounts. 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.
2. Litigation
NatWest
Group plc’s 2024 Annual Report and Accounts, issued on 14
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
and Accounts.
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.
3. Post balance sheet events
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.
Presentation of information
‘Parent company’ refers to NatWest Group plc, and
‘NatWest Group’, ‘Group’ or
‘we’ refers to NatWest Group plc and its subsidiaries.
The term ‘NWH Group’ refers to NatWest Holdings Limited
(‘NWH 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.
Statutory accounts
Financial
information contained in this document does not constitute
statutory accounts within the meaning of section 434 of the
Companies Act 2006 (‘the Act’). The statutory accounts
for the year ended 31 December 2024 will be filed with the
Registrar of Companies. The report of the auditor on those
statutory accounts was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under
section 498(2) or (3) of the Act.
Contacts
Analyst
enquiries: Claire Kane, Investor Relations +44 (0) 20
7672 1758
Media
enquiries: NatWest Group Press Office +44 (0) 131
523 4205
|
Management presentation
|
|
|
Date:
Time:
Zoom ID:
|
2 May
2025
9:30 AM
UK time
922
5870 0106
|
Available at natwestgroup.com/results
-
Q1 2025 Interim
Management Statement and presentation slides.
-
A financial
supplement containing income statement, balance sheet and segment
performance for the five quarters ended 31 March 2025.
-
NatWest Group
Pillar 3 supplement at 31 March 2025.
Forward-looking statements
This document may include forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, such as statements with respect to NatWest
Group’s financial condition, results of operations and
business, including its strategic priorities, financial, investment
and capital targets, and climate and sustainability related
targets, commitments and ambitions described herein. Statements
that are not historical facts, including statements about NatWest
Group’s beliefs and expectations, are forward-looking
statements. Words, such as ‘expect’,
‘estimate’, ‘project’,
‘anticipate’, ‘commit’,
‘believe’, ‘should’, ‘intend’,
‘will’, ‘plan’, ‘could’,
‘target’, ‘goal’, ‘objective’,
‘may’, ‘outlook’, ‘prospects’
and similar expressions or variations on these expressions are
intended to identify forward-looking statements. In particular,
this document may include forward-looking statements relating , but
not limited to: NatWest Group’s outlook, guidance and targets
(including in relation to RoTE, total income, other operating
expenses, loan impairment rate, CET1 ratio, RWA levels, payment of
dividends and participation in directed buybacks), its financial
position, profitability and financial performance, the
implementation of its strategy, its access to adequate sources of
liquidity and funding, its regulatory capital position and related
requirements, its impairment losses and credit exposures under
certain specified scenarios, substantial regulation and oversight,
ongoing legal, regulatory and governmental actions and
investigations. Forward-looking statements are subject to a number
of risks and uncertainties that might cause actual results and
performance to differ materially from any expected future results
or performance expressed or implied by the forward-looking
statements. Factors that could cause or contribute to differences
in current expectations include, but are not limited to, future
growth initiatives (including acquisitions, joint ventures and
strategic partnerships), the outcome of legal, regulatory and
governmental actions and investigations, the level and extent of
future impairments and write-downs, legislative, political, fiscal
and regulatory developments, accounting standards, competitive
conditions, technological developments, interest and exchange rate
fluctuations, general economic and political conditions and
uncertainties, exposure to third party risk, operational risk,
conduct risk, cyber, data and IT risk, financial crime risk, key
person risk and credit rating risk and the impact of climate and
sustainability related risks and the transitioning to a net zero
economy. These and other factors, risks and uncertainties that may
impact any forward-looking statement or NatWest Group plc's actual
results are discussed in NatWest Group plc's 2024 Annual Report and
Accounts on Form 20-F, NatWest Group’s Interim Management
Statement for Q1 2025, and its other public filings. The
forward-looking statements contained in this document speak only as
of the date of this document and NatWest Group plc does not assume
or undertake any obligation or responsibility to update any of the
forward-looking statements contained in this document, whether as a
result of new information, future events or otherwise, except to
the extent legally required.
Non-IFRS financial measures
NatWest
Group prepares its financial statements in accordance with
UK-adopted International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS). This document
contains a number of non-IFRS measures, or alternative performance
measures, defined under the European Securities and Markets
Authority (ESMA) guidance, or non-GAAP financial measures in
accordance with the Securities and Exchange Commission (SEC)
regulations. These measures are adjusted for notable and other
defined items which management believes are not representative of
the underlying performance of the business and which distort
period-on-period comparison.
The
non-IFRS measures provide users of the financial statements with a
consistent basis for comparing business performance between
financial periods and information on elements of performance that
are one-off in nature. The non-IFRS measures also include a
calculation of metrics that are used throughout the banking
industry.
These
non-IFRS measures are not a substitute for IFRS measures and a
reconciliation to the closest IFRS measure is presented where
appropriate.
|
Measure
|
Description
|
|
Cost:income ratio (excl. litigation and conduct)
Refer
to table 2. Cost:income ratio (excl. litigation and conduct) on
page 36.
|
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 10-12 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 30 for components
of calculation.
|
Funded assets is calculated as total assets less derivative assets.
This measure allows review of balance sheet trends exclusive of the
volatility associated with derivative fair
values..
|
|
Loan:deposit ratio (excl. repos and reverse repos)
Refer
to table 5. Loan:deposit ratio (excl. repos and reverse repos) on
page 37.
|
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
38.
|
NatWest
Group return on tangible equity comprises annualised profit or loss
for the period attributable to ordinary shareholders divided by
average tangible equity. Average tangible equity is average total
equity excluding average non-controlling interests, average other
owners’ equity and average intangible assets. This measure
shows the return NatWest Group generates on tangible equity
deployed. It is used to determine relative performance of banks and
used widely across the sector, although different banks may
calculate the rate differently. The nearest ratio using IFRS
measures is return on equity, calculated as profit attributable to
ordinary shareholders divided by average total equity.
|
Non-IFRS financial measures continued
|
Measure
|
Description
|
|
Net interest margin (NIM) and average interest earning
assets
Refer
to Segment performance on pages 10-12 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 10-12 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 37.
|
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 38.
|
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 36.
|
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 37.
|
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
36.
|
Total
income excluding notable items is calculated as total income less
notable items. The exclusion of notable items aims to remove the
impact of one-offs and other items which may distort
period-on-period comparisons.
|
Non-IFRS financial measures continued
1. Total income excluding notable items
|
|
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.
|
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
|
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%
|
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
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
|
|
|
NatWest Group plc
(Registrant)
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
02 May
2025
|
|
|
By:
|
/s/
Mark Stevens
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name:
|
Mark
Stevens
|
|
|
|
|
|
|
Title:
|
Assistant
Secretary
|
|