Natwest Group Plc · LSE:NWG
Natwest — Q3 2025 Earnings Presentation
35 slides from Natwest's earnings presentation, Oct 24, 2025
Slide 1: Q3 2025 Results
NatWest Gro Q3 2025 Results 24 October 2025
Slide 2: Paul Thwaite, Chief Executive Officer
NatWest Gro Paul Thwaite Chief Executive Officer
Slide 3: Strong growth across our businesses
£388bn £435bn £56bn Strong growth across our businesses Customer Loans1 Customer Deposits2 AUMA +4.4% vs Dec’24 +0.8% vs Dec’24 +14.5% vs Dec’24 Strong returns with £12.1bn £5.9bn 19.5% attributable profit of Income ex notable items3 Costs4 Return on Tangible Equity £4.1bn +12.5% vs 9M’24 +2.5% vs 9
Slide 4: Katie Murray, Chief Financial Officer
) # Katie Murray x! , Chief Financial Officer r
Slide 5: Group financial summary, £m
Q3'25 vs 9M'25 vs Group, £m Q3'25 Q2'25 9M'25 9M24 Q2'25 9M'24 1 Net interest income, ex notable items 3,268 3,094 9,388 8,307 5.6% 13.0% 1 Non-interest income, ex notable items 898 916 2,740 2,469 (2.0%) 11.0% 1 Total income, ex notable items 4,166 4,010 12,128 10,776 3.9% 12.5% Total income 4,332
Slide 6: Net interest income and total income
Net interest income 4,332 Non interest income +3.9% 4,166 166 Total centre income 38 4 21 49 3 8 1,064 4,010 5 34 898 911 916 3 businesses +£101m, +2.5% NII +£94m, +3.0% Non-II +£7m, +0.8% 3,094 3,094 3,268 3,268 Q2’25 Notable Q2’25 ex Daycount Retail Private Commercial Central Q3’25 ex Notable Q3’2
Slide 7: Customer loans by business
207.0 Q4’24 Mortgages 210.4 Q2’25 • Balance growth of +£1.7bn in Q3’25 212.1 Q3’25 • Stock share 12.6%1, stable YTD 16.8 Unsecured 19.6 19.7 • Credit card share of 11.1%2, +1.4% YTD 4.6 Other PB&WM 4.9 5.0 Business 2.0 2.4 Banking3 2.3 • Growth in Project Finance, social housing Commercial 72.5 and
Slide 8: Customer deposits by business
431 436 435 Q4’24 64.5 130.3 194.8 Retail 16% 17% 16% Banking2 Q2’25 64.2 132.4 196.6 -£0.8bn Q3’25 64.8 131.0 195.8 53% 53% 53% Private Q4’24 6.6 35.8 42.4 Banking & Q2’25 6.3 35.0 41.3 Wealth -£0.7bn Management Q3’25 6.2 34.4 40.6 31% 31% 31% Q4’24 63.9 130.2 194.1 Commercial Q2’25 63.1 134.8 197.
Slide 9: Operating expenses
+1.0% One-time integration costs +0.4% 1,984 +0.1% -0.7% +1.3% Other operating expenses 1,965 7 1 (14) 25 34 27 Q2’25 Staff costs Other Premises Depreciation Q3’25 administrative and and expenses equipment amortisation +2.5% +1.8% 5,884 +1.5% -1.4% +0.7% 68 101 5,740 84 (80) 39 9M’24 Staff costs Oth
Slide 10: Impairment charge and ECL
535 Sainsbury’s Bank Day 1 ECL 245 Impairment charge, £m 189 193 153 66 81 112 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 9M’25 Q2'25 excl Q3'24 Q4'24 Q1'25 Q2'25 Sainsbury's Q3'25 9M'25 Bank FY’25 Retail Banking 28 3 21 22 7 18 20 Guidance Private Banking (7) 7 2 0 0 6 3 Commercial & Institutional 31 13 22 20 2
Slide 11: CET1 capital and RWAs
101bps capital generation pre distribution in Q3’25 14.6% 0.09 0.08 (0.42) 14.2% 0.84 13.6% Q2’25 Attrib. profit Other CET1 RWAs CET1 ratio pre Ordinary dividend Q3’25 changes distributions CET1 capital1 25.8 +1.6 +0.2 -0.8 26.8 £bn -£1.0bn £190-195bn 190.1 0.9 0.3 (2.2) 189.1 Q2’25 Business Movemen
Slide 12: NatWest Group Q3 2025 Results
NatWest Group Q3 2025 Results October 2025 12
Slide 13: Q&A
Q&A
Slide 14: Upcoming results dates
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 Q3 2025 Results October 2025 14
Slide 15: Outlook
Outlook We will introduce guidance for 2026 and new targets for 2028 with our Full Year 2025 results on 13 February 2026. The following statements are based on our current expectations for interest rates and economic conditions. We will monitor and react to market conditions and refine our internal
Slide 16: Group income and notable items
Q3'24 Q4'24 FY'24 Q1'25 Q2'25 Q3'25 Group income 3,744 3,825 14,703 3,980 4,005 4,332 Notable items in Income, £m Q3'24 Q4'24 FY'24 Q1'25 Q2'25 Q3'25 Commercial and Institutional Own credit adjustments (OCA) 2 (4) (9) 6 (3) -- Central items & other Interest and FX risk management derivatives not in
Slide 17: Tangible net asset value
GBP, m Share count, m Pence As at 30 June 2025 28,416 8,088 351 Interim ordinary dividend (paid 12 September 2025) (768) (9.5) Share buyback (304) (58) (1) Atributable profit 1,598 20 Cash flow hedge reserve (net of tax) 85 1 Other movements 66 1 1 Net change 677 (57) 11 As at 30 September 2025 29,0
Slide 18: Q3'25 results by business
Retail Private Banking & Commercial & Central items Group Q3'25, £bn 2 Group Banking Wealth Management Institutional & other Net interest income 1.5 0.2 1.6 (0.0) 3.3 Non-interest income 0.1 0.1 0.7 0.2 1.1 Total income 1.7 0.3 2.2 0.2 4.3 Income ex-notable items 1.7 0.3 2.2 0.0 4.2 Other operating
Slide 19: Net interest income, AIEAs and NIM
3,094 3,268 2,899 2,968 3,026 Net interest income Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Group AIEAs 543 548 539 542 o.w. Liquid Asset Buffer 530 164 161 159 162 163 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 2.37% 2.27% 2.28% 2.18% 2.19% Group NIM1 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 NatWest Group Q3 2025 Results October 2025
Slide 20: Product hedge gross income
Product hedge gross income, £bn Gross income already written as at Jun’25, £bn >£1bn • We continue to expect the product structural hedge notional to be broadly stable in 2025, with annual +£1bn maturities of ~£35bn • Based on our assumptions for reinvestment yield and +£0.2bn stable notional, we ex
Slide 21: Deposit mix 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 22: Deposit costs, base rate and sensitivity
5.5 5.1 5.0 4.9 (42) (41) (40) 4.6 4.5 4.5 4.1 4.0 3.5 3.1 2.9 (125) 3.0 2.7 (142) (136) 2.6 2.4 2.5 2.1 2.0 1.9 2.0 1.8 1.7 1.5 (167) (176) (183) 1.0 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 H1’24 FY’24 H1’25 Average base rate Structural Hedge Average cost of interest bearing customer deposits across 3 busine
Slide 23: Structural hedge and managed margin 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 24: Structural hedge total income
H1 2025 Period end Total Income Average Notional Total Yield notional (£m) (£bn) (£bn) % Equity 216 22 22 2.01 Product 1,900 172 171 2.24 Total 2,116 194 193 2.21 FY 2024 Period end Total Income Average Notional Total Yield notional (£m) (£bn) (£bn) % Equity 440 22 22 1.98 Product 3,039 172 174 1.75
Slide 25: Lending and deposit margins by business
7.0 6.67 6.36 Retail Banking 6.5 6.24 6.00 Private Banking & Wealth Management 5.88 6.0 Commercial & Institutional 5.5 5.22 NatWest Group 5.01 5.0 4.83 4.74 4.84 4.66 4.73 4.69 4.5 4.76 4.69 4.09 4.29 4.32 4.40 4.0 4.21 0.0 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 3.16 Retail Banking 3.2 3.06 2.90 Private Bank
Slide 26: Economic scenarios and weightings
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 27: Loan book composition
Personal: £234.9bn, 55% of group Non-personal: £192.4bn, 45% of group Corporate and other ex CRE £96.0bn Group mortgages £215.1bn 22% of Group lending 50% of Group lending Diverse corporate loan book, with exposure across a broad range of sectors Loan-to-value of 56%1 stable year-on-year Credit qual
Slide 28: 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 29: Impairments and ECL coverage
Private Banking & Commercial & Central items & Retail Banking Wealth Group Institutional other Management 9M'25 (£m) 323 4 206 2 535 9M'25(bps) 20bps 3bps 18bps nm 17bps 9M'24 (£m) 266 (14) 52 (11) 293 9M'24(bps) 17bps (10)bps 5bps nm 10bps Q3'25 (£m) 97 3 52 1 153 Q3'25(bps) 18bps 6bps 14bps nm 15b
Slide 30: Capital requirements and MDA
14.2% 11.6%2 O-SII group risk add-on4 5.0% 10.3% 1.2% MDA3 1.7% Countercyclical buffer5 4.3% 0.4% O-SII group risk add-on4 Capital conservation buffer 2.5% 0.6% Countercyclical leverage ratio buffer7 Pillar 2A6 1.8% 1.6% 3.25% Minimum Tier 1 capital Pillar 1 requirement 4.5% H1'25 Q3’25 Requirement
Slide 31: Liquidity portfolio
232.6 239.1 222.8 222.3 199.4 63.9 80.1 74.7 61.2 74.4 26.6 Other (Level 2) 48.2 72.4 78.5 50.6 Covered 11% 142.0 bonds 99.9 88.6 74.3 80.5 6% 70% FY’19 FY’22 FY’23 FY’24 Q3’25 Cash Securities Secondary Liquidity £78.5bn 30% 157% Government & 151% 151% 148% HTC FVOCI SSA2 bonds 141% 84% • Majority o
Slide 32: Group holding company 2025 guidance and issuance
Group holding company 2025 guidance 2025 issuance1 • €1.25bn 5NC4 • €1.25bn 11NC10 Social • €1.0bn 9NC8 Senior unsecured (MREL) £4bn to £5bn ~£4.2bn • $300m 4NC3 FRN NatWest Group plc • $1.25bn 6NC5 Tier 2 capital ~£1bn ~£0.9bn • €1.0bn 10NC5 • £750m PerpNC7 Additional Tier 1 ~£1bn £1.25bn • £500m P
Slide 33: Senior ratings
Senior ratings Moody’s S&P Fitch Group holding company NatWest Group plc A3 A- 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 S
Slide 34: Footnotes
Slide 3: 1. Gross loans across 3 businesses. 2. Customer deposits across 3 businesses. 3. Excludes notable items per slide 16. 4. Costs excluding litigation and conduct. Slide 5: 1. Excluding notable income items per slide 16. Slide 6: 1. Excluding notable income items per slide 16. 2. Group Net Int
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