Slide 1: NatWest Group
NatWest Groi
Slide 2: Paul Thwaite, Chief Executive Officer
Slide 3: Disciplined growth
£375bn £433bn £48.5bn Disciplined growth AUMA across our businesses Customer Loans1 Customer Deposits2 +£0.8bn AUM net +0.9% vs Dec’24 +0.5% vs Dec’24 inflows in Q1’25 Strong returns with £4.0bn £1.9bn 18.5% attributable profit of Income ex notable items3 Costs4 Return on Tangible Equity £1.3bn vs £
Slide 4: Katie Murray, Chief Financial Officer
Katie Murray Chief Financial Officer
Slide 5: Group financial results, £m
Q1'25 vs Q1'25 vs Group, £m Q1'25 Q4'24 Q1'24 Q4'24 Q1'24 1 Net interest income, ex notable items 3,026 2,999 2,651 0.9% 14.1% 1 Non-interest income, ex notable items 926 873 763 6.1% 21.4% 1 Total income, ex notable items 3,952 3,872 3,414 2.1% 15.8% Total income 3,980 3,825 3,475 4.1% 14.5% Other
Slide 6: Net interest income and non-interest income
Net interest income Non interest income Total centre income +2.1% 3,980 3,952 28 1 47 3,872 86 2 16 9 (5) (9) 3,825 926 954 31 (65) 61 873 857 3 businesses +£143m, +3.7% NII +£141m, 4.7% Non-II +£2m, 0.2% 2,968 2,999 3,026 3,026 Q4’24 Notable Q4’24 ex Daycount Retail Private Commercial Central Q1’25
Slide 7: Customer loans by business
203.3 Mortgages 207.0 Q1’24 209.1 Q4’24 • Balance growth of +£2.1bn in Q1’25 Q1’25 • Stock share 12.6%1, stable YTD 15.8 Unsecured 16.8 16.9 • Stock share2 9.7%, stable YTD, pro-forma 4.6 incl. Sainsbury’s Bank ~11% Other Private 4.6 4.7 Business 1.9 2.0 Banking3 2.0 Commercial 69.7 +£1.6bn in Q1’25
Slide 8: Customer deposits by business
431 433 Q1’24 66.4 123.6 190.0 420 Retail Banking Q4’24 194.8 16% 16% 64.5 130.3 17% +£0.9bn Q1’25 65.7 130.0 195.7 Q1’24 7.0 30.8 37.8 51% 53% 53% Private Q4’24 6.6 35.8 42.4 Banking -£1.2bn Q1’25 6.5 34.7 41.2 Q1’24 63.6 128.6 192.2 33% 31% 31% Commercial & Institutional 2 Q4’24 63.9 130.2 194.1 +
Slide 9: Sainsbury's Bank acquisition
~£2.5bn of gross customer loans ~£2.7bn of customer deposits Credit Cards2 Personal advances Retail Customer Deposits Stock share (BOE), % Balances, £bn Balances, £bn +c.£1.0bn +c.£1.4bn +c.£2.7bn c.11% 9.6 198.4 9.7% 195.7 8.2 Q1’25 Pro-forma incl. Q1’25 Pro-forma incl. Q1’25 Pro-forma incl. Sainsb
Slide 10: Operating expenses
-8.5% +5.5% 2,114 117 -9.6% 129 (204) -2.6% -1.8% 1,935 • Staff costs: 3.3% average annual wage increase plus (54) (38) 7 55 £45m additional NIC from 1st April • Bank-wide simplification: ongoing investment to deliver savings • One-time integration costs ~£0.1bn, of which £7m incurred in Q1’25 Q4’24
Slide 11: Impairments and ECL, FY'25 guidance
245 189 93 66 ECL3 Provision £3.5bn -45 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 ECL3 Coverage 0.86% PMA4 for Economic uncertainty £305m Retail Banking 12 12 28 3 21 remained broadly stable (13) (11) (7) 7 2 FY’25 Private Banking Stage 3 as % of loans 1.5% 11 (28) 31 13 22 Guidance Commercial & Institutional 1
Slide 12: CET1 ratio and RWAs
49bps1 capital generation pre distribution in Q1’25 (0.28) 14.1% 0.10 0.68 (0.33) 13.8% 13.6% Q4’24 Attrib. profit1 RWAs Other CET1 CET1 ratio pre Ordinary dividend Q1’25 changes distributions CET1 capital 1 24.9 +1.3 -0.6 25.7 £bn £190-195bn +£3.8bn -1.2 187.0 2.0 0.8 183.2 2.2 Q4’24 Operational Ri
Slide 13: Capital generation and capital position
Attributable profits as a percentage of the opening RWA, bps 73 68 69 68 63 65 20.6% 57 49 50 Tier 2 3.6% 16.6% AT1 3.2% Tier 2 2.8% AT1 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 2.1% CET1 13.8% CET1 Tier 2 ~£800m ~£1bn 11.7% AT1 £750m ~£1bn Q1'25 Requirement 13
Slide 14: Summary of guidance
Summary of guidance! I 2025 Guidance Total Other operating Loan Risk Return on Income expenses impairment rate Weighted Assets Tangible Equity ~£8.1bn, Upper end of incl. ~£0.1bn Upper end of £15.2-15.7bn? one-time Below 20bps £190-195bn 15-16% integration costs 2027 Return on Tangible Equity Target
Slide 15: Q&A
Q&A
Slide 16: Upcoming dates: 26 March, 25 June, Q4 2025
26th March 2025 25th June 2025 Q4 2025 16
Slide 17: Outlook
Outlook The following statements are based on our current expectations for interest rates and economic conditions. We recognise increased global economic uncertainty and will monitor and react to market conditions and refine our internal forecasts as the economic position evolves. In 2025 we expect:
Slide 18: Group income and notable items
Q1'24 Q2'24 Q3'24 Q4'24 FY'24 Q1'25 Group income 3,475 3,659 3,744 3,825 14,703 3,980 Notable items in Income, £m Q1'24 Q2'24 Q3'24 Q4'24 FY'24 Q1'25 Commercial and Institutional Own credit adjustments (OCA) (5) (2) 2 (4) (9) 6 Central items & other Interest and FX risk management derivatives not in
Slide 19: Tangible net asset value and cash flow hedge reserve
GBP, m Share count, m Pence As at 31 December 2024 26,482 8,043 329 Attributable profit 1,252 16 Cash flow hedge reserve (net of tax) 129 2 FVOCI 42 1 Other movements 120 24 0 Net change 1,543 24 18 As at 31 March 2025 28,025 8,067 347 347 2 1 16 329 FY’24 Attributable profit Cash flow Other Q1’25 h
Slide 20: Group results by business, Q1'25
Retail Private Commercial & Central items Group Q1'25, £bn 2 Group Banking Banking Institutional & other Net interest income 1.4 0.2 1.5 (0.1) 3.0 Non-interest income 0.1 0.1 0.7 0.1 1.0 Total income 1.5 0.3 2.1 0.0 4.0 Income ex-notable items 1.5 0.3 2.2 (0.0) 3.9 Other operating expenses (0.7) (0.
Slide 21: Net interest income, AIEAs and NIM
2,999 2,968 3,026 2,651 2,757 Net interest income Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 539 542 Group AIEAs 530 o.w. Liquid Asset Buffer 528 521 164 163 155 160 162 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 2.27% Group NIM1 2.18% 2.19% 2.05% 2.10% Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 21
Slide 22: Product structural hedge
Product hedge gross income Gross income already written as at Dec’24 +c.£1bn +£0.2bn • We expect the product structural hedge income in 3.0 2025 to be ~£1bn greater than 2024. • Beyond 2025, we expect annual growth in product structural hedge income each year through to 2027. 2.0 3.5 • We expect the
Slide 23: Deposit mix and hedge mix
Subject to customer and market dynamics +2.9% 431 431 419 419 16% 16% 69 69 Term deposits 68 Term 68 Term Deposit Income: • Volume: subject to customer behaviour • Margin: broadly stable Instant Access Unhedged Deposit Income: 50% 53% Unhedged 166 190 209 227 • Volume: subject to mix • Margin: decre
Slide 24: Deposit costs and interest rate sensitivity
5.5 5.3 5.3 5.1 5.0 4.9 -50 -44 -41 4.6 4.5 4.0 3.5 3.1 3.1 3.1 -125 -142 2.9 3.0 2.7 -170 2.5 2.1 2.1 2.1 2.0 1.9 2.0 -169 -183 1.5 -220 1.0 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 FY’22 FY’23 FY’24 Average base rate Structural Hedge Average cost of interest bearing customer deposits across 3 businesses 2,3
Slide 25: Structural hedge and managed margin sensitivity
FY 2024 -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) (125) (212) 41 125 212 Managed Margin (142) (120) (125) 121 116 124 Total (183) (245) (337) 162 241 336 H1 2024 -25 ba
Slide 26: Lending and deposit margins by business
6.81 Retail Banking 7.0 6.73 6.67 6.36 6.24 Private Banking 6.5 Commercial & Institutional 6.0 NatWest Group 5.5 4.97 5.22 5.01 5.01 5.0 4.76 4.83 4.67 4.84 4.73 4.5 4.75 4.29 4.03.79 3.97 4.09 4.21 0.0 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 3.14 3.15 3.16 3.2 3.06 2.90 Retail Banking 3.0 Private Banking 2.8
Slide 27: Structural hedge income and yield
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 Total 3,479 194 196 1.77 H1 2024 Period end Total Income Average Notional Total Yield notional (£m) (£bn) (£bn) % Equity 218 22 22 1.95 Product 1,392 175 176 1.58
Slide 28: Economic scenarios and weightings
FY'24 H1'24 FY'23 Upside Base Case Downside Extreme Upside Base Case Downside Extreme Upside Base Case Downside Extreme Scenario downside downside downside Weighting Weighted Weighted 23% 45% 19% 13% 22% 45% 19% 14% 21% 45% 20% 13% Weighted average average average UK GDP – Annual Growth (%) 2025 2.0
Slide 29: UK macro and lending market indicators
Households savings ratio1 Number of UK mortgages >3 months in arrears2 30% UK Savings ratio 1.5% UK long term avg 25% 1.3% 20% 1.1% 15% 0.91% 0.9% 10% 5% 0.7% 0% 0.5% Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Dec-24 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar 20 Mar 21
Slide 30: Loan book: personal and wholesale
Personal: £228.7bn, 56% of group Wholesale: £180.7bn, 44% of group Group mortgages £211.9bn Corporate and other ex CRE £92.5bn 52% 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 4% across a broad range of sectors 63%
Slide 31: Corporate credit exposure reflects the broader UK economy
Corporate credit exposure reflects the broader UK economy Source: NWG Pillar 3 FY 20241 Other Agriculture Human health & social • Portfolio quality remains robust, coverage 2% 4% levels remain appropriate, with the book well 4% 8% Manufacturing positioned for a weaker macro environment Administratio
Slide 32: Mortgage book and LTV
203 208 210 Number of UK mortgages >3 months in arrears 177 188 21 21 21 160 17 17 0.91% 0.91% 0.91% 17 0.78% 0.83% 0.71% 171 182 187 189 0.66% 0.64% 0.63% 143 160 0.62% 0.58% 0.53% 57 56 54 53 55 56 FY’19 FY’20 FY’21 FY’22 FY’23 FY’24 FY’19 FY’20 FY’21 FY’22 FY’23 FY’24 Buy-to-let Mortgage Book, £b
Slide 33: Impairments and ECL coverage
Retail Private Commercial & Central items Group Banking Banking Institutional & other Q1'25 (£m) 109 1 78 1 189 Q1'25(bps) 21bps 2bps 22bps nm 19bps Q4’24 (£m) 16 3 46 1 66 Q4’24 (bps) 3bps 7bps 13bps nm 7bps Q1’24 (£m) 63 (6) 39 (3) 93 Q1’24 (bps) 12bps (13)bps 11bps nm 10bps 0.83% 0.86% ECL covera
Slide 34: Liquidity and HQLA
152% 145% 144% 150% 150% 232.6 222.8 222.3 222.1 • High Quality Liquid Assets (HQLA) are primarily held 199.4 in cash and central bank reserves and high quality 63.9 securities. 61.2 59.0 74.7 • Majority of securities held in the liquidity portfolio 74.4 26.6 hedged for interest rate risk; asset swa
Slide 35: CET1 and leverage regulatory requirements
13.8% 5.2% 11.7% 4.3% 1.2% 10.5% 0.4% 3.85% MDA2 1.7% 0.6% Min. Requirement 2.5% 1.8% 3.25% 4.5% Q1’25 Regulatory requirement Q1’25 Regulatory requirement O-SII group risk add-on2 Pillar 2A4 O-SII group risk add-on2 Countercyclical buffer3 Pillar 1 Countercyclical leverage ratio buffer5 Capital cons
Slide 36: MREL requirements and resources
32.7% MREL + Buffer 27.7% 1.2% O-SII Group Risk Add-on4 1.7% Countercyclical buffer5 2.5% Capital conservation buffer 2 x Pillar 2A3 6.3% Senior MREL 22.3% & MREL MREL eligible CET1, requirement 12.5 AT1, Tier 2 2 x Pillar 1 capital resources 2 x Pillar 1 16% 4.9 3.2 3.7 MREL Q1'25 MREL requirements
Slide 37: Group holding company 2025 funding guidance and issuance
Group holding company 2025 guidance 2025 issuance1 Senior unsecured (MREL) £4bn to £5bn - - NatWest Group plc Tier 2 capital ~£1bn ~£0.8bn • €1.0bn 10NC5 Additional Tier 1 ~£1bn £0.75bn • £750m PerpNC7 Group operating companies • €1.0bn 5Yr FXD Senior unsecured • $500m 3Yr FRN NatWest Markets Plc (n
Slide 38: Senior and capital ratings
Senior ratings Moody’s S&P Fitch Group holding company NatWest Group plc A3 BBB+ A Stable Stable Positive A1 A+ A+ NatWest Bank Plc 1 Stable Stable Positive A1 A+ A+ Ring-fenced bank operating companies Royal Bank of Scotland plc 1 Stable Stable Positive Not rated A+ A+ NatWest Bank Europe GMBH Stab
Slide 39: Footnotes
Slide 3: 1. Gross loans across 3 businesses. 2. Customer deposits across 3 businesses. 3. Excludes notable items per slide 18. 4. Costs excluding litigation and conduct. Slide 5: 1. Excludes notable items per slide 18. Slide 6: 1. Excluding notable income items per slide 18. 2. Group Net Interest Ma
Slide 40: 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