Natwest Group Plc · LSE:NWG
Natwest — Royal Bank of Scotland Group — Debt Investor Presentation (August 2019)
18 slides from Natwest's debt investor presentation, Aug 2, 2019
Slide 1: H1 2019 Results Fixed income presentation
H1 2019 Results Fixed income presentation 2nd August 2019
Slide 2: Katie Murray, Chief Financial Officer
Katie Murray Chief Financial Officer 2
Slide 3: H1 2019 summary financials
H1 2019 summary financials H1’19 vs. £m H1’19 H1’18 Income (£m) Netinterest Net interest income income 4,004 (7%) 7,117 Nonnon-interest Total interest income income 3,113 31% 6,702 Total income 7,117 6% (356) 990 26 (223) Operating Operating expenses expenses (4,100) (13%) (22) o/w Other expenses (3
Slide 4: Capital generation H1 2019
Capital generation H1 2019 Strong capital build CET1 (%) 17.1 (0.3) 0.2 0.6 (0.3) 0.2 (0.8) 16.0 0.4 16.0 c.14.0% Pro-forma Alawwal Alawwal Profit ex. RWAs ex. Other H1’19 Ordinary Special H1’19 Post FY 2021 Q4’18 RWA Profit Alawwal Alawwal Pre-dividend dividend dividend dividend Target reduction ac
Slide 5: H1 2019 update on progress
H1 2019 update on progress • 2.5% annualised net loan growth across Personal & Net loan growth Ulster and Commercial & Private • Targeting 2%-3% net loan growth in 2019 • Reduced other expenses by £173m in H1’19 vs H1’18 Continuing cost reduction • Targeting cost reduction of £300m in 2019 • Underly
Slide 6: Robert Begbie, Treasurer
3x RBS Robert Begbie Treasurer \ Sa |!
Slide 7: Treasurer's review
Treasurer’s review Balance sheet reflects diversified funding, sound liquidity management and strong capital generation Good progress on issuance, lower-end of total 2019 senior unsecured guidance met in H1(1) S&P one notch upgrade across all rated entities, outlook stable Ongoing optimisation of th
Slide 8: Strong, sustainable balance sheet
Strong, sustainable balance sheet Key H1 2019 capital, funding and liquidity metrics Capital stack (% RWA) Total funding mix (£bn) (1) Liquidity portfolio (£bn) (3) 2.7% £78bn 2.2% £71bn Total CET1 Customer deposits (2) capital Additional Tier 1 ~£439bn £203bn Primary liquidity Wholesale funding 20.
Slide 9: Good progress against 2019 issuance plan
Good progress against 2019 issuance plan H1 2019 2019 Continuing diversification of 2019 issuance across a Issuance Guidance range of formats, currencies and tenors(1) RBSG plc • $2bn RBSG senior MREL 6NC5 FXD to FRN Senior Unsecured • $1.25bn RBSG senior MREL 11NC10 FXD to FRN ~£3bn £3-5bn MREL • £
Slide 10: Closing remarks
Closing remarks Net lending growth in a highly competitive environment Ongoing capital generation and return to shareholders Maintaining a strong set of balance sheet metrics Significant progress toward funding targets 10
Slide 11: Q&A
3x RBS Q&A
Slide 12: Appendix
3x RBS Appendix
Slide 13: Capital ratios significantly above regulatory requirements
Capital ratios significantly above regulatory requirements H1 2019 CET1 and target CET1 ratio versus 2022 minimum requirements as a % of RWA vs. Total (1) maximum distributable amount (“MDA”) (2) MREL senior unsecured outstanding (Based on illustrative RWA of ~£200bn) 16.0% 26.5% CRR CET1 Buffers To
Slide 14: Issuing entity structure
Issuing entity structure(1) Investors AT1, T2, MREL The Royal Bank of Scotland Group plc Inside the ring-fence iAT1, iT2, iMREL NatWest Holdings Ltd iAT1, iT2, iMREL iAT1, iT2, iMREL iAT1, iT2, iMREL iAT1, iT2, iMREL iAT1, iT2, iMREL The Royal Ulster Bank Ltd NatWest Bank Ulster Bank NatWest Markets
Slide 15: RBS credit ratings
RBS credit ratings Ratings actions in 2019 Moody’s S&P Fitch • In March Fitch placed the Long-Term Issuer Default Ratings of 19 UK banking groups on RBS Group Baa2/Pos BBB/Sta A/RWN Rating Watch Negative(2) (RWN). Inside the ring-fence • In May S&P upgraded the issuer credit ratings Natwest Bank Plc
Slide 16: Estimated Loss Absorbing Capital (LAC)
Estimated Loss Absorbing Capital (“LAC”) Balance sheet (£bn) Par Value Regulatory value LAC value value CET1 Capital 30.2 30.2 30.2 30.2 Tier 1 capital: end-point CRR compliant AT1 4.0 4.0 4.0 4.0 o/w: RBSG (HoldCo) 4.0 4.0 4.0 4.0 o/w: RBSG operating subsidiaries (OpCos) - - - - Tier 1 capital: non
Slide 17: H1 2019 results by business
H1 2019 results by business Central Ulster Bank Commercial Private RBS NatWest (£bn) UK PB items & Total RBS RoI Banking Banking International Markets ( 1) other Income 2.4 0.3 2.2 0.4 0.3 0.9 0.6 7.1 Operating expenses (1.2) (0.3) (1.3) (0.2) (0.1) (0.7) (0.3) (4.1) Impairment (losses) / releases (
Slide 18: Cautionary & forward looking statements
Cautionary & forward looking statements The targets, expectations and trends discussed in this presentation represent RBSG, and where applicable NWM management’s, cu rrent expectations and are subject to change, including as a result of the factors described in the “Summary Risk Factors” on pages 47
Royal Bank of Scotland Group — Debt Investor Presentation (August 2019) on 6ix