Natwest Group Plc · LSE:NWG
Natwest — Debt Investor Presentation (July 2025)
36 slides from Natwest's debt investor presentation, Jul 25, 2025
Slide 1: Fixed Income Investors
25 July 2025 Fixed Income Investors
Slide 2: NatWest Group
NatWest Gro
Slide 3: Disciplined growth across our businesses
£384bn £436bn £52bn Disciplined growth across our businesses Customer Loans1 Customer Deposits2 AUMA +3.2% vs Dec’24 +1.0% vs Dec’24 +5.9% vs Dec’24 Strong returns with £8.0bn £3.9bn 18.1% attributable profit of Income ex notable items3 Costs4 Return on Tangible Equity £2.5bn +13.7% vs H1’24 -1.4% v
Slide 4: Growth across all three businesses
1.1 million customers added including >100k Productivity and efficiency improvements: Strong capital, liquidity and funding: organic, to over 20 million cost:income ratio 6.7%pt lower vs H1’24 13.6% CET1 ratio, 5.0% Leverage ratio, 147% LCR, 86% Loan to deposit ratio Digitising our customer journeys
Slide 5: Group financial results
Q2'25 vs H1'25 vs Group, £m Q2'25 Q1'25 Q1'25 H1'25 H1'24 H1'24 1 Net interest income, ex notable items 3,094 3,026 2.2% 6,120 5,408 13.2% 1 Non-interest income, ex notable items 916 926 (1.1%) 1,842 1,596 15.4% 1 Total income, ex notable items 4,010 3,952 1.5% 7,962 7,004 13.7% Total income 4,005 3
Slide 6: Net interest income and total income
Net interest income Non interest income Total centre income +1.5% 21 8 8 (23) (18) 4,010 4,005 3,980 30 (1) (5) (28) 3,952 34 916 911 954 926 3 businesses +£43m, +1.1% NII +£50m, 1.6% Non-II -£7m, -0.8% 3,094 3,094 3,026 3,026 Q1’25 Notable Q1’25 ex Daycount Retail Private Commercial Central Q2’25 e
Slide 7: Lending balances
207.0 Mortgages 209.1 Q4’24 • Balance growth of +£1.3bn in Q2’25 210.4 Q1’25 • Stock share 12.6%1, stable YTD Q2’25 16.8 Unsecured 16.9 Unsecured: 19.6 • +£2.2bn balances from Sainsbury's Bank, incl. £1.2bn of Personal advances and 4.6 £1.0 of Credit Cards Other Private 4.7 • Credit card share of 11
Slide 8: Customer deposits
431 433 436 Q4’24 64.5 130.3 194.8 Retail Banking2 Q1’25 195.7 16% 16% 17% 65.7 130.0 +£0.9bn Q2’25 64.2 132.4 196.6* 53% 53% 53% Private Q4’24 6.6 35.8 42.4 Banking & Q1’25 6.5 34.7 41.2 Wealth +£0.1bn Management Q2’25 6.3 35.0 41.3 31% 31% 31% Q4’24 63.9 130.2 194.1 Commercial Q1’25 62.6 133.9 196
Slide 9: Operating expenses
+1.6% +0.9% -0.1% +1.3% 1,965 1,935 -0.6% 25 27 (11) 17 (1) Bank levies 55 7 One-time integration costs Other operating expenses • 3.3% average annual wage increase and higher National Insurance Contributions from April Q1’25 Staff costs Other Premises and Depreciation Q2’25 • 2.3% lower FTE H1’25 v
Slide 10: Impairments and FY'25 guidance
245 189 193 Day 1 ECL Sainsbury's ECL3 Provision £3.7bn 81 Bank 66 112 Includes PMA release ECL3 Coverage 0.87% of c.£64m PMA4 for Economic uncertainty £234m -45 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Stage 3 as % of loans 1.4% Q2'25 excl Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Sainsbury's Bank FY’25 Guidance Retail B
Slide 11: NatWest Group H1 2025 Results
NatWest Group H1 2025 Results 11 July 2025
Slide 12: Donal Quaid, Group Treasurer
NatWest Gro Donal Quaid Group Treasurer
Slide 13: Solid capital, MREL, liquidity and leverage positions
Solid capital and MREL 13.6% 19.7% 32.4% positions CET1 ratio Total capital ratio MREL ratio Strong liquidity and 150% 86% 5.0% leverage positions Liquidity coverage ratio1 Loan to deposit ratio2 UK leverage ratio 136% £436.8bn £91bn Diversified funding Net stable funding ratio3 Customer Deposits Wh
Slide 14: CET1 and leverage requirements
13.6% 11.7% O-SII group risk add-on3 5.0% 10.5% 1.2% MDA2 1.7% Countercyclical buffer4 4.3% 0.4% O-SII group risk add-on3 Capital conservation buffer 2.5% 0.6% Countercyclical leverage ratio buffer6 Pillar 2A5 1.8% 3.25% Minimum Tier 1 capital Pillar 1 requirement 4.5% H1'25 Requirement H1'25 Requir
Slide 15: CET1 capital movement and RWAs
53bps1 capital generation pre distribution in Q2’25 (0.15) 14.3% (0.12) 0.11 0.69 (0.33) 13.8% (0.39) 13.6% Q1’25 Attrib. profit1 Sainsbury’s RWAs1 Other CET1 CET1 ratio pre Ordinary Buyback Q2’25 Bank changes distributions dividend CET1 capital2 25.7 +1.3 -0.1 +0.2 -0.6 -0.8 25.8 £bn +£3.1bn £190-1
Slide 16: Total capital requirement and AT1/Tier 2
19.7% Tier 2 3.0% £5.7bn AT1 15.4% 4.0 3.1% £6.0bn Tier 2 2.8% 1.0 AT1 0.6 2.1% 2026 2027 2028 onwards CET1 13.6% CET1 £25.8bn 10.5% 3.1 2.0 1.0 H1’25 Total 2025 Total Capital 2025 2027 2028 onwards Capital requirement NatWest Group H1 2025 Results 16 July 2025
Slide 17: MREL position and requirements
32.4% MREL + Buffer 27.7% 1.2% O-SII Group Risk Add-on4 1.7% Countercyclical buffer5 2.5% Capital conservation buffer Senior MREL 2 x Pillar 2A3 15.3 & MREL 6.3% eligible CET1, AT1, Tier 2 capital 22.3% resources MREL requirement 4.7 2 x Pillar 1 3.4 1.9 16% 2025 2026 2027 2028 onwards MREL H1'25 20
Slide 18: Liquidity portfolio
232.6 222.8 222.3 216.6 199.4 63.9 74.7 61.2 56.0 74.4 26.6 Other (Level 2) 48.2 72.4 74.0 50.6 Covered 11% 142.0 bonds 99.9 88.6 86.6 74.3 6% 73% FY’19 FY’22 FY’23 FY’24 H1’25 Cash Securities Secondary Liquidity £74.0bn 27% 157% Government & 152% HTC FVOCI 151% 150% 151% 150% SSA3 bonds 145% 144% 1
Slide 19: Funding mix and wholesale maturities
2% 7% 10% 74 86 91 80 13% 28% £91bn 12% 5.2 450 431 434 437 3.8 27% 3.0 Bank deposits TFSME 2022 2023 2024 H1'25 CP & CD Senior unsecured Oct-25 Mar-27 Mar-31 Customer deposits Wholesale funding MREL Senior secured Subordinated debt NatWest Group H1 2025 Results 19 July 2025
Slide 20: 2025 issuance guidance and activity
Group holding company 2025 guidance 2025 issuance1 • €1.25bn 5NC4 • €1.25bn 11NC10 Social Senior unsecured (MREL) £4bn to £5bn ~£3.3bn • $300m 4NC3 FRN • $1.25bn 6NC5 FXD NatWest Group plc Tier 2 capital ~£1bn ~£0.9bn • €1.0bn 10NC5 Additional Tier 1 ~£1bn £0.75bn • £750m PerpNC7 Operating company •
Slide 21: Credit ratings
Senior ratings Moody’s S&P Fitch Group holding company NatWest Group plc A3 BBB+ A+ Stable Stable Stable A1 A+ AA- NatWest Bank Plc 2 Stable Stable Stable A1 A+ AA- Ring-fenced bank operating companies Royal Bank of Scotland plc 2 Stable Stable Stable Not rated A+ AA- NatWest Bank Europe GMBH Stable
Slide 22: Slide 22
Slide 23: Key dates and slides
25th June 2025 26th March 2025 Cursor with solid fill Slides 25th June 2025 Cursor with solid fill 25th November 2025 Slides Slides NatWest Group H1 2025 Results 23 July 2025
Slide 24: Issuance structure
NatWest Group plc Group holding company Issues internal Issues internal Issues internal AT1, Tier 2 and AT1, Tier 2 and AT1, Tier 2 and MREL senior MREL senior senior unsecured NatWest Markets plc NatWest Holdings Ltd Non ring-fenced bank operating RBS International Ltd Ring-fenced bank holding comp
Slide 25: Segment results Q2'25
Retail Private Banking & Commercial & Central items Group Q2'25, £bn 2 Group Banking Wealth Management Institutional & other Net interest income 1.5 0.2 1.5 (0.1) 3.1 Non-interest income 0.1 0.1 0.7 0.1 0.9 Total income 1.6 0.3 2.1 (0.0) 4.0 Income ex-notable items 1.6 0.3 2.2 (0.0) 4.0 Other operat
Slide 26: Product structural hedge
>£1bn Product hedge gross income Gross income already written as at Jun’25 +£1bn +£0.2bn • We continue to expect the product structural hedge notional to be broadly stable in 2025, with annual maturities of ~£35bn 4.0 4.2 3.8 • Based on our assumptions for reinvestment yield 2.8 3.0 and stable notio
Slide 27: Deposit and hedge mix
Subject to customer and market dynamics +1.0% 431 436 431 436 16% 17% Term deposits 69 73 Term 69 73 Term Deposit Income: • Volume: subject to customer behaviour • Margin: broadly stable Instant Access Unhedged Deposit Income: 53% 53% Unhedged 190 191 227 229 • Volume: subject to mix • Margin: decre
Slide 28: Deposit costs and rate sensitivity
5.5 5.3 5.1 5.0 4.9 (42) (41) (40) 4.6 4.5 4.5 4.0 3.5 3.1 3.1 2.9 (125) 3.0 2.7 2.6 (142) (136) 2.5 2.1 2.1 2.0 1.9 2.0 1.8 1.5 (167) (176) (183) 1.0 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 H1’24 FY’24 H1’25 Average base rate Structural Hedge Average cost of interest bearing customer deposits across 3 busine
Slide 29: Interest rate sensitivity
H1 2025 -25 basis points parallel downward shift +25 basis points parallel upward shift Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 (£m) (£m) (£m) (£m) (£m) (£m) Structural Hedge (40) (125) (213) 40 125 213 Managed Margin (136) (97) (98) 118 101 116 Total (176) (222) (311) 158 226 329 FY 2024 -25 basi
Slide 30: Economic scenarios
H1'25 FY'24 H1'24 Upside Base Case Downside Extreme Upside Base Case Downside Extreme Upside Base Case Downside Extreme Scenario downside downside downside Weighting Weighted Weighted Weighted 21.7% 45.0% 20.7% 12.6% 23.2% 45.0% 19.1% 12.7% 22.0% 45.0% 19.4% 13.6% average average average UK GDP – An
Slide 31: Loan book composition
Personal: £232.9bn, 56% of group Wholesale: £185.0bn, 44% of group Group mortgages £213.3bn Corporate and other ex CRE £94.4bn 51% of the group lending 23% of the group lending Loan-to-value of 56%1 stable year-on-year Diverse corporate loan book, with exposure across a broad range of sectors 62% 5Y
Slide 32: Corporate credit exposure reflects the broader UK economy
Corporate credit exposure reflects the broader UK economy Source: NWG Pillar 3 H1 20251 Other Agriculture Human health & social • Portfolio quality remains robust, coverage 3% 4% levels remain appropriate 4% 8% Manufacturing Administration • Portfolio is weighted towards service sectors at 8% ~70% o
Slide 33: UK mortgage book
203 208 210 213 Number of UK mortgages >3 months in arrears 177 188 21 21 21 21 160 17 17 0.91% 0.91% 0.91% 17 0.89% 0.78% 0.83% 0.71% 171 182 187 189 192 0.66% 0.64% 143 160 0.62% 0.63% 0.63% 0.58% 0.53% 57 56 54 53 55 56 56 FY’19 FY’20 FY’21 FY’22 FY’23 FY’24 H1’25 FY’19 FY’20 FY’21 FY’22 FY’23 FY
Slide 34: Footnotes
Slide 3: 1. Gross loans across 3 businesses. 2. Customer deposits across 3 businesses. 3. Excludes notable items. 4. Costs excluding litigation and conduct. Slide 4: 1. Non-II in H1’25 vs H1’24. By 31st December 2030. Slide 5: 1. Excluding notable income items. Slide 6: 1. Excluding notable income i
Slide 35: Forward-looking statements
Forward-looking statements The guidance, targets, expectations and trends discussed in this presentation represent NatWest Group management’s current expectations and are subject to change, including as a result of the factors described in the “Risk Factors” in the NatWest Group plc 2024 Annual Repo
Slide 36: Group Treasury and Investor Relations contacts
Group Treasury Investor Relations Scott Forrest Paul Pybus Amber Sekhri Head of Capital Strategy & Head of Debt Investor Relations Corporate Access Treasury Debt Capital Markets paul.pybus@natwest.com amber.sekhri@natwest.com scott.forrest@natwest.com Useful links • Fixed Income Investor Relations w
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