Natwest Group Plc · LSE:NWG
Natwest — Investor Day (March 2025)
39 slides from Natwest's investor day presentation, Mar 26, 2025
Slide 1: Investor Spotlight: Commercial & Institutional
NatWest Uy ‘Investor Spotlight {| Commercial & Institutional = 26 March 2025
Slide 2: NatWest
NatWest Uy
Slide 3: Today's Presenters and Agenda
Today’s Presenters Agenda Paul Thwaite Introduction CEO NatWest Group Strategic Overview Commercial & Institutional Robert Begbie CEO Commercial & Institutional Spotlight Commercial Mid-Market Andy Gray Managing Director Commercial Mid-Market Key Takeaways and Q&A 3
Slide 4: NatWest Group's three customer businesses
Commercial & Institutional Retail Banking Private Banking Start-ups to large corporates Youth to mass affluent Affluent to high net-worth and financial institutions Multi-channel 18.1m customers1 0.1m customers2 1.5m customers3 brands serving our >19 million +67% Award winning ~20% customers Rooster
Slide 5: Group strategic priorities
• Grow our three customer • Accelerate digitalisation of customer • Leverage our strong capital, liquidity businesses journeys and funding positions as a key source of competitive advantage • Improve share in target segments, • Streamline and modernise our subject to returns technology estate includ
Slide 6: Strategic Overview
NatWest Uy _[& Strategic Overview cf) | Robert Begbie Chief Executive Officer, Commercial & Institutional
Slide 7: Commercial & Institutional at a glance
Proportion Share Who we are Our contribution of Group of Market3 1.5m customers1 Income, £bn FY’21 FY’22 FY’23 FY’24 8.0 from start-ups to SMEs, large 7.4 6.4 corporates and financial Institutions 4.8 4.2 5.0 5.3 54% NII 3.0 Multi-channel offering, from Non II 1.9 2.2 2.4 2.6 fully digital to specia
Slide 8: C&I business segments and 2024 Return on Equity
Commercial Corporate and Business Banking Mid-Market Institutional Banking UK’s leading bank A leading banking partner to Trusted partner for large for start-ups UK mid-market customers Multi-channel >1.1m1 customers ~100k1 customers ~7k1 customers brands serving our 1.5 million customers <£750k tur
Slide 9: UK's biggest bank for business
UK’s biggest bank for business1 Disciplined Bank-wide Active balance sheet growth simplification and risk management • Higher growth target segments • Modernise customer digital • Leverage our strong liquidity • Start-ups and SMEs platform Bankline creating single position as a source of • Social Ho
Slide 10: 2024 Progress
2024 Progress Strategic capital Pricing Data Risk £5.7bn allocation discipline driven distribution Benefit from RWA • Embedding • Embed a single • Enhance data to • Invest in asset Management strategy and pan-C&I approach accurately track enablement returns into RWA to make pricing customer in-life
Slide 11: Disciplined growth, bank-wide simplification, active balance sheet
Disciplined Bank-wide Active balance sheet growth simplification and risk management Improve the customer experience Become more agile Protect the bank and our customers • 83% of C&I customers are banking • Modernisation of key platforms onto • Leverage AI to counter financial digitally first cloud,
Slide 12: Business Banking: performance and priorities
Financial performance Progress to date Income, £bn CAGR ~95% 24hr >80% ~10k +15.8% Accounts originated Small business loans Reduction in time Start-ups in our 0.8 0.9 digitally in 2024 up to £100k taken to make accelerators since 0.7 available digitally deposit rate changes 2015 0.6 2025-2027 priori
Slide 13: Commercial Mid-Market: performance and priorities
Financial performance Progress to date Income, £bn CAGR ~27% >£7bn ~90% 1st +12.8% Market share for Social Housing Reduction in spot FX UK bank to offer 3.4 3.6 businesses with lending since 2023 onboarding time Intellectual Property 3.0 turnover >£2m3 (IP) backed loans4 2.5 2025-2027 priorities Dis
Slide 14: Corporate & Institutions: coverage model
CIB - Trusted advisor to large customers with strong links to the UK Customer first Multi-specialist Capital efficient coverage model provider business model, with UK focus recognised for deep expertise disciplined across and international reach where we choose to participate origination and distrib
Slide 15: Corporate & Institutions: performance and priorities
Financial performance Progress to date Income, £bn CAGR +25.3% #1 #1 #1 >£60bn 3.5 Best Corporate UK Best UK Trade UK Corporate DCM CSFF6 provided to 3.2 Bank3 Finance provider4 in GBP and EUR5 customers 2.7 1.8 2025-2027 priorities Disciplined Bank-wide Active balance sheet 2021 2022 2023 2024 grow
Slide 16: Commercial Mid-Market
& NatWest Group Commercial Mid-Market © Andy Gray Managing Director, Commercial Mid-Market
Slide 17: Mid-Market Corporates' impact on the UK economy
Mid-Market Corporates have an oversized impact Mid-Market Corporates have been growing faster than the rest of the economy, 1 2 on the UK economy1 including Large Corporates 28.3m £4.8tn £1.5tn UK non-financial corporate turnover, £tn 4.8 Large Corporates 22% 3.9 4.0 4.0 Mid-Market Corporates 3.7 45
Slide 18: Commercial Mid-Market and Business Banking
Commercial Corporate and Business Banking Mid-Market Institutional Banking Small Large Regional Large Large SME Mid Corporate Commercial Commercial Corporate Business £750k - £2m £2m - £6.5m £6.5m - £25m £25m - £500m £500m+ turnover Customers1 ~50k ~21k ~11k ~4k ~500 Term Lending Deposits Transactio
Slide 19: Westlands
Westlands is a British grower of speciality produce, with over 80 years of experience - based in Evesham, UK Play Westlands video 19
Slide 20: Customer footprint and diversified credit exposure
We have an extensive customer and Commercial Mid-Market’s credit exposure Relationship Manager (RM) footprint across the UK is diversified across a wide range of sectors Customer distribution heatmap1 Lending2, 2024 North: Renewables & Utilities Other Scotland: Customers – 18k 3% Commercial Real Est
Slide 21: M Squared
M Squared is a commercial groundworks and civil landscaping company, providing services across the UK Play M Squared video 21
Slide 22: Zenobē: NWG Actions
2020 - 2021 2021 - 2023 2023 - 2025 Innovative Problem Solving Scaling business in Europe A trusted advisor in growth Zenobē is an SME Zenobē has a funding Zenobē returns to that needs capital to platform that it can NatWest as it seeks to support its ambitions, use to raise additional grow both in
Slide 23: Growth segments: Innovation Economy, Social Housing, Trade Finance
UK Innovation Economy Supporting UK entrepreneurship in high growth segments including Life Sciences and MedTech A leading lender to Social Housing sector: £10.8bn balances outstanding at end 2024, +14% YoY. Social Housing Ambition to deliver £7.5bn gross lending over 2024-26 Trade Finance and FX Le
Slide 24: Open Bionics
Open Bionics is a UK-based prosthetics company developing affordable, assistive devices that enhance the human body Play Open Bionics video 24
Slide 25: Easier to access and easier to use
Easier to access C&I Some of our progress Easier to use • 60% increase in digital self-service requests initiated in Bankline • Automated international payment tracking introduced • Integrated ClearSpend, Lombard, and Agile Markets into Bankline 2025-2027 Priorities • Fully modernised cloud based On
Slide 26: Fundamental contribution
We account for around Fundamental contribution one quarter of Group Income We bank 1 in 4 customers1 Unparalleled presence across the UK in this faster growing segment We are investing to deliver the leading, Transforming customer experience multi-channel customer proposition We have clear plans Inn
Slide 27: Key Takeaways
NatWest Uy | f Key Takeaways ~ | Robert Begbie ) Chief Executive Officer, Commercial & Institutional
Slide 28: UK's biggest bank for business: key takeaways
We are the UK’s biggest bank for business Our strong balance sheet positions us well to support UK businesses to grow We have clear strategic priorities to drive returns Strong 2024 ROE at 17.2%, well placed to support Group ROTE >15% in 2027 28
Slide 29: uw YS =3 BO z
uw YS 4 =3 BO z
Slide 30: Presenters for Q&A
Robert Begbie Carolina Romero Ramirez Andy Gray Scott Marcar Chief Executive Officer Finance Director Managing Director Chief Information Officer Commercial & Institutional Commercial & Institutional Commercial Mid-Market NatWest Group 30
Slide 31: Appendix
Appendix Document classification: Confidential
Slide 32: Presenter biographies
Paul Thwaite, Chief Executive Officer – NatWest Group • Paul was appointed Chief Executive Officer in July 2023. Prior to becoming Group Chief Executive, he was Chief Executive of the bank’s Commercial & Institutional (C&I) business, bringing together the teams that support NatWest’s business custom
Slide 33: Presenter biographies (continued)
Carolina Romero Ramirez, Finance Director – Commercial & Institutional • Carolina was appointed Finance Director of NatWest Commercial & Institutional in 2024. • Prior to this, Carolina held key leadership roles at HSBC, including CFO, Commercial Banking Asia; CFO, Global Banking Asia; CFO, Global P
Slide 34: Income statement
2021 2022 2023 2024 Income statement Net interest income 2,974 4,171 5,044 5,339 Non-interest income 1,864 2,242 2,377 2,618 Total income 4,838 6,413 7,421 7,957 Other operating expenses (3,646) (3,563) (3,867) (4,118) Litigation and conduct costs (111) (181) (224) (156) Operating expenses (3,757) (
Slide 35: Analysis of income, impairments and loans by business
2021 2022 2023 2024 Analysis of income by business Business Banking 564 705 789 876 Commercial Mid-market 2,506 3,044 3,426 3,599 Corporate & Institutions 1,768 2,664 3,206 3,482 Total income 4,838 6,413 7,421 7,957 Loan impairment charge/(releases) as % of gross customer loans by business Business
Slide 36: Customer rates and net interest margin
Third party customer asset and funding rates, % 7 6.64% 6.15% 6 5.11% 5 4.67% 4 3.53% 3 2.71% 1.90% 2 1.46% 1.40% Third Party Customer Asset (Lending) Rate BoE average Base Rate 1 0.11% 0.21% Third Party Customer Funding (Deposit) Rate 0 0.02% FY’21 FY’22 FY’23 FY’24 Net interest margin, % 2.5 2.06%
Slide 37: Commercial Mid-Market lending, deposits, income and impairments
Lending to customers1, £bn Customer deposits, £bn CAGR 3.1% +£2.4bn YoY 72.2 72.5 104.3 98.9 89.9 88.7 90.6 92.0 92.3 70.7 69.7 68.9 67.4 66.1 2021 2022 2023 Q1’24 Q2’24 Q3’24 Q4’24 2021 2022 2023 Q1’24 Q2’24 Q3’24 Q4’24 4 consecutive quarters of loan growth Deposit base more stable and growing Inco
Slide 38: Footnotes
Slide 4: 1) Retail and Premier customers. 2) Private customers excluding RBS Collective Investment Funds Limited (CIFL) solo customers. 3) Business Banking, SME & Mid Corporates, Large Corporates & Institutions customers including Western Europe, Specialised Businesses including Lombard, RBS Interna
Slide 39: 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