Natwest Group Plc · LSE:NWG
Natwest — Debt Investor Presentation (February 2026)
50 slides from Natwest's debt investor presentation, Feb 13, 2026
Slide 1: FY 2025 Results - Fixed Income Investors
FY 2025 Results 13 February 2026 Fixed Income Investors
Slide 2: Katie Murray, Chief Financial Officer
Katie Murray Chief Financial Officer
Slide 3: Strong compounding growth delivering 19.2% ROTE in 2025
Strong compounding growth delivering 19.2% ROTE in 2025 Growing all three +5.6% +2.4% +20% businesses, serving Customer Loans1 Customer Deposits1 AUMA >20m customers £393bn £442bn £58.5bn Driving operational leverage with +12% +2% 48.6% positive jaws of Income3 Costs4 Cost Income ratio +10ppt 2 £16.
Slide 4: Strong financial performance
Strong financial performance FY'25 vs Q4'25 vs Q4'25 vs Group, £m FY'25 FY'24 FY'24 Q4'25 Q3'25 Q4'24 Q3'25 Q4'24 1 Net interest income, ex notable items 12,829 11,306 13.5% 3,441 3,268 2,999 5.3% 14.7% 1 Non-interest income, ex notable items 3,571 3,342 6.9% 831 898 873 (7.5%) (4.8%) 1 Total income
Slide 5: Strong 12% income growth supported by fees, volumes and margin
Strong 12% i ncome growth supported by fees, volumes and margin Income excl. notable items 1, £m Net interest income +12.0% £17.2bn - £17.6bn Non interest income 50 16,400 Total centre income 14 810 (46) 14,648 831 112 Average interest-earning assets, £bn (19) 3,571 3,342 3 businesses +£1,798m, +12.
Slide 6: 7-year track record of 4.6% compound growth in CAL
7-year track record of 4.6% compound growth in CA L Customer assets and liabilities across our 3 businesses (CAL) 1, £bn AUMA Customer Deposits Gross Loans to Customers +37% 7-year CAGR 4.6% CAGR 892 851 59 809 815 818 +12.0% 49 761 36 33 41 32 678 653 30 26 442 433 419 431 446 +3.9% 406 338 348 359
Slide 7: Broad based lending growth of £21bn, or 5.6%, in 2025
Broad based lending growth of £21bn, or 5.6%, in 2025 Gross loans to customers (amortised cost) at Q4’25, £bn Retail Banking and PB&WM: £236.9bn, +£0.1bn, or flat, in Q4’25, +£8.5bn, or +3.7%, in FY’25 207.0 Mortgages Q4’24 Mortgages 212.1 • Balance growth of +£7.1bn 1 in FY’25 partly offset Q3’25 2
Slide 8: Deposit growth of £10.4bn, or 2.4%, in 2025 with stable mix
Deposit growth of £10.4bn, or 2.4%, in 2025 with stable mix Deposit mix by interest type across the 3 customer businesses 1 %, £bn Customer deposits across the 3 customer businesses, £bn 431 435 442 Retail Q4’24 64.5 130.3 194.8 17% 16% 16% Banking2 Q3’25 64.8 131.0 195.8 +£7.8bn +£6.8bn Q4’25 65.2
Slide 9: AUMA balance growth of £9.6bn, or 19.6% in 2025
AUMA balance growth of £9.6bn, or 19.6% in 2025 Assets under management and administration, £bn Q4’24 37.0 11.9 48.9 Q3’25 41.9 14.1 56.0 £9.6bn, +19.6% £2.5bn, 4.5% Q4’25 43.7 14.8 58.5 Assets under management (AUM), £bn Assets under administration (AUA), £bn Accelerating annual AUMA growth , £bn 1
Slide 10: Structural hedge is annual income tailwind through to 2030
Structural hedge is annual income tailwind through to 2030 Further annual income growth Equity Hedge income 2028-2030 Product Hedge income +c.£1bn in 2027 +c.£1.5bn in 2026 £3.3bn income growth 2025 vs 2021 4.7 0.5 3.5 3.2 0.4 0.4 2.2 0.4 4.2 1.4 3.0 2.8 0.4 1.8 1.0 FY’21 FY’22 FY’23 FY’24 FY’25 FY’
Slide 11: Delivered 2025 costs of ~£8.1bn including one-time integration costs
Delivered 2025 costs of ~£8.1bn including £0.1bn one -time integration costs Other operating expenses, £bn +1.8% ~£8.2bn 7.9 8.0 8.1 +0.4 +0.1 1.1 -0.6 +0.3 1.2 1.2 1.3 1.6 1.5 4.0 4.1 FY’24 Cost Savings Pay, Additional Business FY’25 One-time FY’25 FY’26 NIC & Inflation Growth & Other (excl. one-ti
Slide 12: Updated macro assumptions, well-provisioned balance sheet
Updated macro assumptions, well -provisioned balance sheet Updated macroeconomic assumptions FY'25 weighted average H1'25 weighted average Change 2026 2027 2026 2027 2026 2027 UK GDP - annual growth 0.5 1.3 0.6 1.4 (0.1) (0.1) UK Unemployment - annual avg. 5.3 5.5 4.9 5.1 0.4 0.4 UK House Price Inde
Slide 13: 16bps impairment rate in 2025, expecting <25bps in 2026
16bps impairment rate in 2025, expecting <25bps in 2026 FY’22 FY’23 FY’24 FY’25 FY’26 Guidance Loan impairment rate 9bps 15bps 9bps 16bps <25bps 11bps 22bps 13bps 20bps Retail Banking Private Banking & Wealth Management (1bp) 8bps (6bps) 5bps 9bps 7bps 7bps 14bps Commercial & Institutional of which,
Slide 14: Donal Quaid, Group Treasurer
NatWest Uy Donal Quaid Group Treasurer
Slide 15: Key capital and liquidity metrics
Key capital and liquidity metrics Solid capital, MREL 14.0% 31.9% 4.8% and leverage positions CET1 ratio MREL ratio UK leverage ratio Strong liquidity 147% 135% £157bn positions Liquidity coverage ratio1 Net stable funding ratio2 Primary Liquidity (HQLA) 88% £442bn £88bn Diversified funding Loan to
Slide 16: Capital generation of 252 basis points before distributions
Capital generation of 252 basis points before distributions CET1 ratio, % 252bps capital generation pre distribution in FY’25 0.42 (0.89) 16.1% 13.6% 2.99 (1.35) 14.0% (0.78) Capital generation ~200bps in 2026 FY’24 Attrib. profit Other CET1 RWAs CET1 ratio pre Ordinary dividend Buybacks FY’25 chang
Slide 17: We now target a CET1 ratio of around 13%
We now target a CET1 ratio of around 13%, reflecting solid capital position and strong capital generation CET1 target vs minimum CET1 requirement, Key drivers of the CET1 target ratio moving from 13 -14% % RWA range +90bps • Strong, consistent profitability with track record of capital ~13.0% genera
Slide 18: 2025 Bank Capital Stress Test results reflect a robust balance sheet
2025 Bank Capital Stress Test results reflect a robust balance sheet and a solid capital position The continued strengthening of our balance sheet, demonstrated by the lowest CET1 drawdown compared to previous Stress Tests , underpins our ability to support our customers and the broader economy NatW
Slide 19: Total capital above requirements
Total capital above requirements Total Capital (%RWA) 1 Call profile of Tier 2 and AT1 capital As at 31 December 2025, £bn Funding requirements based on refinancing 19.3% Tier 2 first call date, Balance Sheet value £bn 2,3 3.0% CET1 £5.8bn 15.1% AT1 2.4% £4.6bn T2 4.4 £6.0bn 2.7% 2.1% 1.0 0.6 2026 2
Slide 20: MREL position well established
MREL position well established 1 Minimum requirements of own funds and eligible Call profile of senior MREL stock liabilities (MREL) 1,2 (%RWA) Funding requirements based on refinancing As at 31 December 2025, £bn Senior debt roll -off profile, first call date, £bn 4 31.9% 21.8% 22.0% 2 x Pillar 2A3
Slide 21: Strong liquidity metrics and a high-quality portfolio
Strong liquidity metrics and a high -quality portfolio Liquidity portfolio composition, £bn 1 Primary liquidity securities balances Primary liquidity securities 232.6 237.9 by composition as at FY 2025, £bn 1 valuation measurement 222.8 222.3 as at FY 2025, £bn 199.4 63.9 80.6 14% 74.7 61.2 74.4 26.
Slide 22: Stable and diversified funding sources
Stable and diversified funding sources Funding composition (£bn) 1,2 Wholesale funding mix 1, 3 TFSME Maturity Profile, £bn Customer deposits provide ~83% of funding Access to diverse wholesale funding £3.8bn repaid in October 2025, £8.2bn supply products remaining 7% 10% 3% 74 86 88 9% 80 31% £88bn
Slide 23: Strong support in 2025, ~£15bn issued in benchmark transactions
Strong support in 2025, ~£15bn issued in benchmark transactions Group holding company 2025 guidance 2025 issuance 1 • €1.25bn 5NC4 • €1.25bn 11NC10 Social • €1.0bn 9NC8 Senior unsecured (MREL) £4bn to £5bn ~£5.0bn • $300m 4NC3 FRN • $1.25bn 6NC5 NatWest Group plc • £750m 6NC5 Tier 2 capital ~£1bn ~£
Slide 24: 2026 term funding guidance
2026 term funding guidance Group holding company 2026 guidance Senior unsecured (MREL) ~£3bn • Expect to be active across multiple currencies and tenors. • Issuance driven by re-financing of NatWest Group plc Tier 2 capital ~£1bn maturing or callable securities and RWA growth. AT1 capital ~£1bn Grou
Slide 25: Further progress on credit ratings
Further progress on credit ratings 1 Senior ratings Moody’s S&P Fitch A3 A- A+ Group holding company NatWest Group plc Stable Stable Stable Updates in 2025 : A1 A+ AA- • Fitch upgraded all NatWest Bank Plc Stable2 Stable Stable rated entities by +1 Ring-fenced bank A1 A+ AA- notch. RBSI was Royal Ba
Slide 26: Katie Murray, Chief Financial Officer
Katie Murray Chief Financial Officer
Slide 27: 2026 guidance summary
2026 guidance summary 1 2026 Guidance Income excluding Other operating Loan impairment Return on Capital Generation 2 notable items expenses rate Tangible Equity £17.2bn - £17.6bn ~£8.2bn <25bps >17.0% ~200bps All 2026 guidance excludes the impact from the acquisition of Evelyn Partners NatWest Grou
Slide 28: Refining our strategic priorities
Refining our strategic priorities Disciplined Leveraging Active Balance Sheet Growth Simplification and Risk Management Growing while strengthening and deepening Leveraging our capabilities to deliver growth, Actively managing our balance sheet and risk to relationships productivity, and trust deliv
Slide 29: Q&A
Q&A
Slide 30: Delivered 3 Investor spotlights on our customer businesses
Delivered 3 Investor spotlights on our customer businesses Commercial & Private Banking & Retail Banking Institutional Wealth Management 25th June 2025 26th March 2025 Cursor with solid fill 25th June 2025 25th November 2025 Cursor with solid fill Cursor with solid fill Slides Slides Slides Slides S
Slide 31: Legal entity issuing structure
Legal entity issuing 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 Lt
Slide 32: Strong capital and leverage positions provide confidence and flexibility
Strong capital and leverage positions provide confidence and flexibility CET1 capital minimum requirements UK leverage ratio (% RWA) 1 (Tier 1 capital as % leverage 14.0% exposure) 11.6% 4.8% 10.3% 1.3% O-SII group risk add-on3 MDA2 1.7% Countercyclical buffer4 4.3% 0.4% O-SII group risk add-on3 2.5
Slide 33: Risk density evolution demonstrates disciplined lending growth
Risk density evolution demonstrates disciplined lending growth, supported by active RWA management Group risk density of net customer lending based on period end balance sheet, % Credit risk RWAs/ Net lending Counterparty risk, Market risk, Operational risk Drivers of RWA density going forward RWA,
Slide 34: Wholesale public issuance and funding by legal entity
Wholesale public issuance and funding by legal entity NatWest Group NatWest Markets NatWest Markets NatWest Bank Plc RBSI Ltd plc Plc N.V. Active issuance/funding type Senior Non-Preferred ✓ - - - - AT1 & Tier 2 capital1 ✓ - - - - Senior Preferred - - ✓ - - Covered Bond - ✓ - - - Loan Market - - ✓ ✓
Slide 35: Segmental summary
Segmental summary 1 Private Banking & Retail Commercial & Central items & Group FY'25, £bn Wealth Group Banking Institutional other 2 Management Net interest income 6.1 0.8 6.1 (0.1) 12.8 Non-interest income 0.4 0.4 2.7 0.3 3.8 Total income 6.5 1.1 8.8 0.2 16.6 Income ex-notable items 6.5 1.1 8.8 0.
Slide 36: All 3 businesses delivering attractive absolute returns
All 3 businesses delivering attractive absolute returns Retail Banking Private Banking & Wealth Management Commercial and Institutional +15.0% +9.9% 6.5 8.8 5.7 8.0 1.7 +16.7% +8.3% 2.3 Q4 1.5 +13.2% 2.1 1.0 1.1 Income 1, 0.3 +13.2% 0.3 £bn 9M FY’24 FY’25 FY’24 FY’25 FY’24 FY’25 +13.4% +28.4% 4.1 3.
Slide 37: Deposit income drivers
Deposit income drivers Deposit mix by interest and hedge type 1, £bn 2.4% 442 442 431 431 16% 17% Term deposits 69 74 Term 69 74 Instant Access 53% 52% Unhedged 190 194 227 231 Non-interest- Product bearing balances 31% 31% structural hedge 172 173 135 136 FY’24 FY’25 FY’24 FY’25 Deposit mix Hedge m
Slide 38: Our sensitivity to interest rates
Our sensitivity to interest rates Third party customer deposit rate and UK Base Rate, % 1 Illustrative Year 1 Income impact of 25bps downward shift in yield curve, (£m) 5.0 4.9 4.6 4.5 (44) (41) (41) 4.5 4.1 4.0 4.0 3.5 2.9 3.0 2.7 (125) (142) 2.6 (157) 2.4 2.5 2.3 2.0 1.9 1.8 2.0 1.7 1.6 (169) 1.5
Slide 39: Interest rate sensitivity
Interest rate sensitivity 1 Assumes constant balance sheet as at period end FY 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 (41) (130) (220) 41 130 220 Managed Margin (157
Slide 40: Structural hedge
Structural hedge FY 2025 Period end Total Income Average Notional Total Yield notional (£m) (£bn) (£bn) % Equity 487 25 22 2.18 Product 4,181 173 172 2.43 Total 4,668 198 194 2.40 H1 2025 Period end Total Income Average Notional Total Yield notional (£m) (£bn) (£bn) % Equity 216 22 22 2.01 Product 1
Slide 41: Customer lending and deposit rates
Customer lending and deposit rates Gross yields of interest earning banking assets, % 1 6.5 6.36 6.24 6.00 Retail Banking 5.88 6.0 Private Banking & Wealth Management 5.69 Commercial & Institutional 5.5 5.22 NatWest Group 5.0 4.83 4.74 4.66 4.66 4.76 4.73 4.69 4.66 4.69 4.5 4.40 4.42 4.29 4.32 4.21
Slide 42: Our Base Case UK macro view
Our Base Case UK macro view We assume GDP growth to be in the 1-1.5% range out to 20281 We assume inflation (CPI) falls to 2.0% in 2027 and remains at that level 1 4.0% 4.0% 3.0% 3.0% UK GDP, %y/y CPI, %y/y 2.0% 2.0% 1.0% 1.0% 0.0% 0.0% Dec-23 Dec-24 Dec-25 Dec-26 Dec-27 Dec-28 Dec-23 Dec-24 Dec-25
Slide 43: UK Economic Assumptions
UK Economic Assumptions 1,2 Our economic assumptions and weightings updated in FY’25 FY'25 H1'25 FY'24 Upside Base Case Downside Extreme Upside Base Case Downside Extreme Upside Base Case Downside Extreme Scenario downside downside downside Weighting Weighted Weighted Weighted 22.4% 45.0% 19.5% 13.1
Slide 44: Well diversified, high-quality loan book
Well diversified, high -quality loan book Arrears levels remain stable and low Personal: £234.9bn, 55% of group Non-personal: £195.0bn, 45% of group Group mortgages £215.2bn Corporate and other ex CRE £98.8bn 50% of Group lending 23% of Group lending Loan-to-value of 57%1 stable year-on-year Diverse
Slide 45: Prime mortgage book with low LTV
Prime mortgage book with low LTV £193bn of Owner occupied mortgages with 57% LTV >3 months arrears below sector average 2 203 208 210 215 Number of UK mortgages >3 months in arrears 177 188 21 21 22 21 160 17 17 0.91% 0.91% 0.91% 17 0.78% 0.83% 0.83% 0.71% 171 182 187 189 193 0.66% 143 160 0.62% 0.6
Slide 46: ECL walk and impairment details by sector
ECL walk and impairment details by sector 0.83% 0.83% ECL coverage, % Stage 3 ECL coverage, % 34.40% 46.44% (40) 3,425 705 (565) 3,585 81 54 (75) 246 299 50 37 2,172 Economic uncertainty PMA 2,032 Other PMA Stage 3 ex PMA 625 651 Stage 2 ex PMA 432 466 Stage 1 ex PMA FY’24 Acquisitions Changes in Ch
Slide 47: Footnotes
Footnotes Slide 3: 1. Across 3 businesses. 2. Income excluding notable items growth minus other operating expenses growth, excluding the impact of one-time integration costs. 3. Income excluding notable items. 4. Other operating expenses (Total operating expenses excluding litigation and conduct and
Slide 48: Footnotes
Footnotes Slide 37: 1. May not cast due to rounding. Slide 38: 1. Refer to page 398 of NWG FY’25 ARA for the definition of third-party rates. 2. Interest-bearing balances Retail Banking and Private Banking are savings. Slide 39: 1. Page 260 of the FY’25 ARA. Page 69 of the H1’25 IMS. Page 257 of FY’
Slide 49: Disclaimer
Disclaimer 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 2025
Slide 50: Fixed Income investor contacts
Fixed Income investor 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 • Fi
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