Natwest Group Plc · LSE:NWG
Natwest — Q1 2026 Earnings Presentation
41 slides from Natwest's earnings presentation, May 1, 2026
Slide 1: Q1 2026 Results
Q1 2026 Results 1 May 2026
Slide 2: Paul Thwaite, Chief Executive Officer
Paul Thwaite Chief Executive Officer
Slide 3: Strong start to the year with 18.2% ROTE in Q1'26
Strong start to the year with 18.2% ROTE in Q1’26 Growing all three +6.6% +2.6% +16.9% businesses Customer Loans2 Customer Deposits3 AUMA CAL 1 +5.2% £400bn £445bn £57bn Driving +6.9% +4.8% 46.5% operational Income4 Costs5 Cost Income ratio leverage £4.2bn £2.0bn -2.1ppt Strong capital +15.5% +15.1%
Slide 4: Confident in the operating outlook
Confident in the operating outlook ➢ Income guidance strengthened – we now expect income, excluding notable items, to be at the top end of our previously guided range of £17.2-17.6bn 2026 ➢ ECL provision top-up of £140m driven by new economic scenario ➢ Increasingly confident in >17% RoTE and ~200bp
Slide 5: Katie Murray, Chief Financial Officer
Katie Murray Chief Financial Officer
Slide 6: Strong financial performance
Strong financial performance Q1'26 vs Q1'26 vs Group, £m Q1'26 Q4'25 Q1'25 Q4'25 Q1'25 Net interest income, ex notable items1 3,394 3,441 3,026 (1.4%) 12.2% Non-interest income, ex notable items1 829 831 926 (0.2%) (10.5%) Total income, ex notable items 1 4,223 4,272 3,952 (1.1%) 6.9% Total income 4
Slide 7: Continued income momentum across 3 businesses
Continued income momentum across 3 businesses Net interest income Income excl. notable items 1, £m Non interest income Net interest margin2 Average Interest Earning Assets 4,272 (75) 12 4,223 5 Commercial & Institutional 14 831 20 Retail Banking (13) FY’26 income excl. Private Banking & Wealth Manag
Slide 8: CAL growth of £8.4bn supported by strong lending and deposit growth
CAL growth of £8.4bn supported by strong lending and deposit growth Customer Assets and Liabilities across our 3 businesses (CAL) 1, £bn +£8.4bn, +0.9% (2.0) 900.1 3.1 7.3 891.7 Q4’25 Lending Deposits AUMA* Q1’26 NatWest Group Q1 2026 Results May 2026 8 *Includes movement in Investment cash balances
Slide 9: Broad based lending growth of £7.3bn, or 1.9% in Q1'26
Broad based lending growth of £7.3bn, or 1.9% in Q1’26 Gross loans to customers (amortised cost) at Q1’26, £bn Retail Banking and PBWM: £ 240.4bn , +£ 3.5 bn, or +1.5% vs Q 4 ’25, +£9.7bn, or +4.2% vs Q1’25 209.1 Mortgages Q1’25 Mortgages 212.1 215.4 • Stock share up marginally at 12.6%1 as at Q4’25
Slide 10: Deposit growth of £3.1bn, or 0.7% in Q1'26, despite higher tax outflows
Deposit growth of £3.1bn, or 0.7% in Q1’26, despite higher tax outflows Deposit mix by interest type across the 3 customer businesses 1 %, £bn Customer deposits across the 3 customer businesses, £bn 433 442 445 Q1’25 65.7 130.0 195.7 16% 17% 17% Retail Banking2 Q4’25 65.2 137.4 202.6 -£0.4bn Q1’26 6
Slide 11: £56.7bn AUMA, AUM inflows +9.7% to £0.9bn in Q1'26
£56.7bn AUMA, AUM inflows +9.7% to £0.9bn in Q1’26 Assets u nder management and a dministration , £bn Assets under management (AUM), £bn Q1’25 36.7 8.8 3.0 48.5 Assets under administration (AUA), £bn Cushon Assets under administration, £bn Q4’25 43.7 10.8 4.0 58.5 +£8.2bn, +16.9% -£1.8bn, -3.1% Q1’2
Slide 12: Driving operational leverage
Driving operational leverage Other operating expenses, £m 48.6% 46.5% Cost income ratio, % Other operating expenses +4.8% +0.8% +2.5% +0.8% +0.7% 1,935 2,027 15 48 15 14 Q1’26 cost drivers and FY’26 outlook • Higher investment and restructuring spend: accelerated in Q1’26 Q1’25 Staff costs Other Pre
Slide 13: Updated macro assumptions drive £140m MES update
Updated macro assumptions drive £140m MES update Updated macroeconomic assumptions Q1 '26 Base Case Moderate Weighted average Scenario weighting 45% 18% 2026 2027 2026 2027 2026 2027 UK Consumer price index1 3.5 2.1 1.3 1.4 3.7 2.4 UK House Price Index1 0.7 (1.8) (4.3) (6.6) 0.1 (1.8) UK base rate -
Slide 14: Robust asset quality, 16bps underlying impairment rate in Q1'26
Robust asset quality, 16bps underlying impairment rate in Q1’26 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 FY’26 Guidance Loan impairment rate 13bps <25bps 19bps 19bps 15bps 26bps Retail Banking 21bps 22bps 18bps 21bps 33bps Private Banking & Wealth Management 2bps - 6bps 13bps 13bps Commercial & Institutional 2
Slide 15: Strong capital generation of 65 basis points
Strong capital generation of 65 basis points CET1 ratio, % 65bps capital generation, pre distributions, in Q1’26 14.6% 14.3% 14.0% 0.69 0.16 (0.21) (0.37) Capital generation ~200bps in 2026 2 Q4’25 Attrib. profit* Other CET1 RWAs CET1 ratio pre Ordinary dividend Q1’26 changes * distributions CET1 ca
Slide 16: Targeting attractive growth and returns for shareholders
Targeting attractive growth and returns for shareholders 2026 Guidance 1 Income excluding Other operating Loan impairment Return on Capital notable items expenses rate Tangible Equity Generation Top end of ~200 bps 2 ~£8.2bn <25bps >17.0% £17.2bn - £17.6bn 2028 Targets 1 Customer assets & liabilitie
Slide 17: Q&A
Q&A
Slide 18: Appendix
NatWest Uy Appendix
Slide 19: Outlook statements
Outlook statements 1 Based on our latest expectations for interest rates and economic conditions, we now expect income excluding notable items to be at the top end of our previously guided range of £17.2 - 17.6 billion. Except for this strengthened guidance, we reaffirm the outlook provided in our f
Slide 20: Notable items
Notable items Q1'25 Q2'25 Q3'25 Q4'25 FY'25 Q1'26 Group income 3,980 4,005 4,332 4,324 16,641 4,358 Notable items in Income, £m Commercial and Institutional Own credit adjustments (OCA) 6 (3) -- (2) 1 3 Dividend received on restructuring of a strategic investment -- -- -- 51 51 -- Central items & ot
Slide 21: Tangible net asset value
Tangible net asset value 1 GBP, m Share count, m Pence As at 31 December 2025 30,736 7,995 384 On-market share buyback (311) (50) (1) Attributable profit 1,432 18 Of which: FX recycling gains 95 1 Cash flow hedge reserve (net of tax) (126) (2) Fair value movements 28 0 FX Movements (net of tax) (87)
Slide 22: Segmental summary
Segmental summary 1 Private Banking & Retail Commercial & Central items & Group Q1'26, £bn Wealth Group Banking Institutional other 2 Management Net interest income 1.6 0.2 1.6 (0.0) 3.4 Non-interest income 0.1 0.1 0.6 0.2 1.0 Total income 1.7 0.3 2.2 0.1 4.4 Income ex-notable items 1.7 0.3 2.2 0.0
Slide 23: UK Economic Assumptions
UK Economic Assumptions 1,2 Our economic assumptions and weightings updated in Q1’26 Q1'26 FY'25 H1'25 Scenario Upside Base Case Downside Extreme Upside Base Case Downside Extreme Upside Base Case Downside Extreme downside downside downside Weighting Weighted Weighted Weighted 22.5% 45.0% 18.3% 14.2
Slide 24: Net interest income, margin and average interest earning assets
Net interest income, margin and average interest earning assets Net Interest Income, £m 3,268 3,441 3,394 3,026 3,094 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Average Interest Earning Assets (AIEAs), £bn 557 556 543 548 542 162 155 o.w. Liquid Asset Buffer 164 161 159 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Net Interest
Slide 25: 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 26: 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 27: 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 4.6 4.5 (44) (41) (41) 4.5 4.1 4.0 4.0 3.8 3.5 3.0 2.7 (125) (142) 2.6 (157) 2.4 2.5 2.3 2.2 1.9 1.8 2.0 1.7 1.6 1.6 (169) 1.5
Slide 28: 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 29: 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 30: Customer lending and deposit rates
Customer lending and deposit rates Gross yields of interest earning banking assets, % 1 6.5 6.24 Retail Banking 6.00 5.88 Private Banking & Wealth Management 6.0 5.69 5.56 Commercial & Institutional 5.5 NatWest Group 5.0 4.83 4.74 4.73 4.69 4.66 4.68 4.66 4.66 4.5 4.29 4.69 4.54 4.43 4.32 4.40 4.42
Slide 31: Well diversified, high-quality loan book
Well diversified, high -quality loan book Arrears levels remain stable and low Personal: £238.2bn, 54% of group Non-personal: £206.1bn, 46% of group Group mortgages £218.5bn Corporate and other ex CRE £100.7bn 49% of Group lending 23% of Group lending Loan-to-value of 57%1 stable year-on-year Divers
Slide 32: 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% 0.71% 0.78% 171 182 187 189 193 143 160 0.66% 0.64% 0.6
Slide 33: Financial Institutions (FI) Exposure
Financial Institutions (FI) Exposure • NatWest Group’s FI exposure across Loans and Debt Securities was £112.4bn at 31 March 2026, equivalent to ~21% of Group credit risk exposure. • It is predominantly short-dated, 72% has less than 12-month maturity, and primarily supports Group Treasury and Inter
Slide 34: Financial Institutions Exposure Definitions
Financial Institutions Exposure Definitions • Financial Institutions: A company or organisation that provides financial services, such as deposits, loans, investments, and currency exchange. • Loans & Advances: Assets representing a company's legal claim to receive future payments, including princip
Slide 35: ECL walk and impairment details by sector
ECL walk and impairment details by sector 0.83% 0.84% ECL coverage, % Stage 3 ECL coverage, % 46.44% 46.23% 219 (34) (151) 140 (16) 220 246 42 50 2,172 2,240 Economic uncertainty PMA Other PMA Stage 3 ex PMA 651 724 Stage 2 ex PMA 466 517 Stage 1 ex PMA FY’25 Changes in Changes in Changes in risk Ju
Slide 36: 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 NatWe
Slide 37: 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 232.6 237.9 233.4 by composition as at Q1 2026, £bn 1 valuation measurement 222.8 222.3 as at Q1 2026, £bn 63.9 80.6 11% 61.2 77.6 74.7 5%
Slide 38: Good progress on HoldCo and OpCo issuance plans
Good progress on HoldCo and OpCo issuance plans 2026 YTD Group holding company 2026 guidance issuance 1 Senior unsecured (MREL) ~£3bn ~£0.7bn • €750m 11NC10 Green NatWest Group plc Tier 2 capital ~£1bn ~£0.6bn • $750m 21NC20 Additional Tier 1 ~£1bn - Group Operating companies • €1.0bn 5Yr FXD NatWes
Slide 39: 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 exposure) 14.3% 11.6% 10.3% 1.3% O-SII group risk add-on3 4.8% MDA2 1.7% Countercyclical buffer4 4.3% 0.4% O-SII group risk add-on3 2.5
Slide 40: Footnotes
Footnotes Slide 3: 1. Customer assets and liabilities (CAL) includes customer deposits, gross loans to customers and AUMA across three businesses Retail Banking, Private Banking & Wealth Management, and Commercial & Institutional. Investment cash is deducted as it is reported within customer deposit
Slide 41: 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