Natwest Group Plc · LSE:NWG

Natwest — Debt Investor Presentation (July 2026)

47 slides from Natwest's debt investor presentation, Jul 31, 2026

  1. Slide 1: H1 2026 Results – Fixed Income Investors

    H1 2026 Results 31 July 2026 Fixed Income Investors

  2. Slide 2: Katie Murray, Chief Financial Officer

    Katie Murray Chief Financial Officer

  3. Slide 3: We are driving structurally higher growth and returns

    We are driving structurally higher growth and returns…. Growing our three diversified businesses with strong and sustained momentum Enhancing our competitive advantage through improved operating leverage Strengthening capital generation for flexibility to invest and grow Delivering consistent sector

  4. Slide 4: Executing our strategy to deliver our ambitions

    … as we execute our strategy to deliver our ambitions… H1’26 2 2028 Target Disciplined Growth Customer Asset & Liability 1 CAGR 5.2% › >4% Leveraging Simplification 46.0% › <45% Cost:income ratio Active Balance Sheet & Risk Management 137 bps › >200bps Capital generation pre -distributions Return on

  5. Slide 5: Sector-leading returns with ROTE of 19.7%

    … resulting in sector -leading returns with ROTE of 19.7% Growing all +6.8% +2.7% +152% three businesses AUMA Customer Loans2 Customer Deposits3 CAL 1 +13.4% £410bn £448bn £131bn +5.2% ex. Evelyn Partners +14% ex. Evelyn Partners Driving operational +8.9% +4.5% 46.0% leverage Income4 Costs5 Cost:inc

  6. Slide 6: Strong financial performance

    Strong financial performance Q2'26 vs H1'26 vs Group, £m Q2'26 Q1'26 Q1'26 H1'26 H1'25 H1'25 Net interest income, ex notable items 1 3,496 3,394 3.0% 6,890 6,120 12.6% Non-interest income, ex notable items 1 953 829 15.0% 1,782 1,842 (3.3%) Total income, ex notable items 1 4,449 4,223 5.4% 8,672 7,9

  7. Slide 7: Continued income momentum across our businesses

    Continued income momentum across our 3 businesses Income excl. notable items 1, £m In 2026 we expect Income excluding notable items to be ~£17.9bn Net interest income This includes ~£275m for Evelyn Partners Non interest income Assumes UK base rate of 3.75% +5.4% 208 4,449 (20) C&I 145 11 PBWM 4,223

  8. Slide 8: Strong lending and Evelyn Partners AUMA drives CAL growth

    Strong lending and Evelyn Partners AUMA drives £86.8bn CAL growth Customer Assets and Liabilities across our 3 businesses (CAL) 1, £bn +£86.8bn, +9.6% 986.9 71.7 +£15.1bn, +1.6% 915.2 900.1 2.8 2.6 9.7 Q1’26 Lending Deposits AUMA2 Q2’26 excl. Evelyn Partners Q2’26 incl. Evelyn Partners AUMA Evelyn P

  9. Slide 9: Broad based lending growth of £9.7bn in Q2'26

    Broad based lending growth of £9.7bn, or 2.4% in Q2’26 Gross loans to customers (amortised cost), £bn Retail Banking and PBWM: £244.4bn, +£4.0bn, or +1.7% in Q2’26, +£7.5bn, or +3.2% in H1’26 212.1 Mortgages +£7.2bn, +3.4% in H1’26 Q4’25 Mortgages 215.4 • Stock share up at 12.7%2 as at Jun’26 vs 12.

  10. Slide 10: Deposit growth of £2.8bn, driven by C&I and PBWM

    Deposit growth of £2.8bn, driven by C&I and PBWM Customer deposits across the 3 customer businesses, £bn Deposit mix by interest type across the 3 customer businesses 1 %, £bn 442 445 448 Retail Q4’25 65.2 137.4 202.6 17% 17% 18% Banking Q1’26 65.9 136.3 202.2 Stable Q2’26 65.5 136.7 202.2 52% 53% 5

  11. Slide 11: AUMA more than doubled, driven by Evelyn Partners

    AUMA more than doubled, driven by Evelyn Partners and strong flows Assets under management and administration 1, £bn Q4’25 43.7 10.8 54.5 Assets under management (AUM), £bn Assets under administration (AUA), £bn Q1’26 43.3 9.4 52.7 +£4.4bn, +8.1% Evelyn Partners AUMA, £bn +£6.2bn, +11.8% Q2’26 48.8

  12. Slide 12: Gross cost savings of ~£250m support operational leverage

    Gross cost savings of ~£250m support strong operational leverage Other operating expenses, £m Cost:income ratio, % In 2026 we expect 48.8% -2.8ppt 46.0% Group operating costs, excluding litigation and conduct costs, to be around £8.5bn +£176m, 4.5% This includes ~£300m for Evelyn Partners 4,076 3,90

  13. Slide 13: Structurally lower impairments, robust asset quality

    Structurally lower impairments, underpinned by robust asset quality Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 H1’26 FY’26 Guidance Loan impairment rate 1 19bps 15bps 13bps 26bps 13bps 19bps <25bps Retail Banking 22bps 18bps 21bps 33bps 17bps 25bps Private Banking & Wealth Management - 6bps 13bps 13bps - 6bps Co

  14. Slide 14: Donal Quaid, Treasurer

    NatWest Uy Donal Quaid Treasurer

  15. Slide 15: Key capital and liquidity metrics

    Key capital and liquidity metrics Solid capital, MREL and leverage 13.2% 30.6% 4.7% positions CET1 ratio MREL ratio UK leverage ratio Strong liquidity 140% 132% £152.0bn positions Liquidity coverage ratio1 Net stable funding ratio2 Primary Liquidity (HQLA) 90% £447.6bn £93.3bn Diversified funding Lo

  16. Slide 16: Strong capital generation drives better than expected trajectory

    Strong capital generation drives better than expected trajectory CET1 ratio, % 137bps of organic capital generation In 2026 we expect: (73bps in Q2’26) Capital generation pre -distributions >240bps excl. impact of Evelyn Partners, equivalent to >100bps on a reported basis (0.41%) 1.78% 0.31% RWA Man

  17. Slide 17: Allocating capital with discipline and dynamism

    We are allocating capital with discipline and dynamism… Maintain flexibility to support customers and withstand stress Financial strength Maintain appropriate buffer to regulatory requirements and flexibility Operate with a CET1 ratio of ~13% Invest in our three businesses to grow and deepen custome

  18. Slide 18: CET1 and Total capital above minimum requirements

    CET1 and Total capital above minimum requirements CET1 and Total capital (%RWA) 1 Call profile of Tier 2 and AT1 capital As at 30 June 2026, £bn Funding requirements based on refinancing AT1 first call date, Balance Sheet value £bn 3 18.9% 3.1% 16.4% £6.3bn 1.3% 3.7 2.5% £5.1bn 2.7% £6.0bn 1.0 11.6%

  19. Slide 19: 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 30 June 2026, £bn Senior debt roll -off profile, first call date, £bn 4 30.6% 21.8% 21.9% 2 x Pillar 2A3 Sen

  20. Slide 20: Leverage position supports disciplined growth

    Leverage position supports disciplined growth Formal consultation on proposed leverage reform is expected after the Q3 2026 FPC meeting Existing leverage ratio framework Proposed leverage ratio framework 4.7% 4.8% 4.3% Additional leverage 0.4% ratio buffer 3.9% 100% CET1 Additional leverage 0.6% Cou

  21. Slide 21: Strong liquidity metrics and a high-quality portfolio

    Strong liquidity metrics and a high -quality portfolio Average liquidity coverage ratio (LCR) Primary liquidity securities balances Primary liquidity securities by composition as at H1 2026, £bn 1 valuation measurement as at H1 2026 157% 151% 10% 141% 147% 140% 6% £79.5bn FY’22 FY’23 FY’24 FY’25 H1’

  22. 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% 4% 88 93 9% 80 86 28% £93bn

  23. Slide 23: Good progress on issuance plans, ~£7.4bn issued

    Good progress on issuance plans, ~£7.4bn issued in benchmark transactions 2026 YTD Group holding company guidance issuance 1 • €750m 11NC10 Green Senior unsecured (MREL) ~£3bn ~£1.6bn • $1.25bn 6NC5 NatWest Group plc Tier 2 capital ~£1bn ~£0.6bn • $750m 21NC20 Additional Tier 1 ~£1bn £0.5bn • £500m

  24. Slide 24: 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 2026: A1 A+ AA • Fitch upgraded a NatWest Bank Plc Ring-fenced bank Stable 2 Stable Stable number of rated operating companies A1 A+ AA subsidiaries

  25. Slide 25: Katie Murray, Chief Financial Officer

    Katie Murray Chief Financial Officer

  26. Slide 26: Confident in delivering our strengthened 2026 guidance

    Confident in delivering our strengthened 2026 guidance 1 Previous Guidance Strengthened Guidance H1’26 actuals ex Evelyn Partners incl. Evelyn Partners Top end of £17.2-17.6bn ~£17.9bn £8.7bn Total income excluding notable items incl. ~£275m for Evelyn Partners ~£8.2bn ~£8.5bn £4.1bn Other operating

  27. Slide 27: Q&A

    Q&A

  28. Slide 28: 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 Holdings Ltd NatWest Markets plc Non ring-fenced bank operating RBS International Lt

  29. Slide 29: 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 - - ✓ ✓

  30. Slide 30: Key UK regulatory developments

    Key UK regulatory developments Overview of upcoming prudential regulation changes that may impact capital and leverage Upcoming Prudential regulation changes Development Impact on Key changes NWG 1 Jan 2027 • Recalibration of credit risk RWAs, including a revised standardised approach, FIRB for FIs

  31. Slide 31: Segmental summary

    Segmental summary 1 Private Banking & Retail Commercial & Central items & Group Q2'26, £bn Wealth Group Banking Institutional other 2 Management Net interest income 1.6 0.2 1.7 (0.0) 3.5 Non-interest income 0.2 0.1 0.7 0.1 1.0 Total income 1.8 0.3 2.4 0.1 4.5 Income ex-notable items 1.8 0.3 2.4 (0.0

  32. Slide 32: UK Economic Assumptions

    UK Economic Assumptions 1,2 Our economic assumptions and weightings updated in H1’26 H1'26 Q1'26 FY'25 Scenario Upside Base Downside Extreme Upside Base Case Downside Extreme Upside Base Case Downside Extreme downside downside downside Weighting Weighted Weighted Weighted 22.8% 45.0% 19.0% 13.2% 22.

  33. Slide 33: Net interest income, margin and average interest earning assets

    Net interest income, margin and average interest earning assets Net Interest Income, £m 3,094 3,268 3,441 3,394 3,496 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Average Interest Earning Assets (AIEAs), £bn 543 548 557 556 563 161 159 162 155 155 Liquid Asset Buffer Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Net Interest Marg

  34. Slide 34: Structural hedge is annual income tailwind through to 2030

    Structural hedge is annual income tailwind through to 2030 Equity Hedge income Product Hedge income Further annual income growth +>£1.0bn 2028-2030 in 2027 +>£1.5bn £3.3bn income growth in 2026 2025 vs 2021 4.7 0.5 3.5 3.2 3.0 0.4 0.4 0.3 2.2 0.4 4.2 1.4 2.8 3.0 2.7 0.4 1.8 1.0 FY’21 FY’22 FY’23 FY’

  35. Slide 35: Deposit income drivers

    Deposit income drivers Deposit mix by interest and hedge type 1, £bn 1.4% 442 448 442 448 17% 18% 17% 18% Term deposits 74 80 Term 74 80 Instant Access 52% 52% Unhedged 44% 42% 233 234 195 189 Non-interest- Product bearing balances 31% 30% structural hedge 40% 39% 135 133 173 178 FY’25 H1’26 FY’25 H

  36. Slide 36: Our sensitivity to interest rates

    Our sensitivity to interest rates Third party customer deposit rate and UK Base Rate, % 1 Illustrative Year 1 Income benefit of 25bps upward shift in yield curve, (£m) 4.5 194 4.5 4.1 4.0 158 4.0 3.8 3.8 3.5 120 153 3.0 118 2.6 77 2.4 2.5 2.3 2.2 2.2 2.0 1.8 1.7 1.6 40 41 43 1.6 1.6 1.5 H1’25 FY’25

  37. Slide 37: Interest rate sensitivity

    Interest rate sensitivity 1 Assumes constant balance sheet as at period end H1 2026 -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 (43) (134) (223) 43 134 223 Managed Margin (109

  38. Slide 38: Structural Hedge

    Structural Hedge H1 2026 Period end Total Income Average Notional Total Yield notional (£m) (£bn) (£bn) % Equity 300 25 25 2.45 Product 2,668 178 177 3.04 Total 2,968 203 202 2.97 FY 2025 Period end Total Income Average Notional Total Yield notional (£m) (£bn) (£bn) % Equity 487 25 22 2.18 Product 4

  39. Slide 39: Customer lending and deposit rates

    Customer lending and deposit rates Gross yields of interest earning banking assets, % 1 6.00 6.0 5.88 5.69 NatWest Group 5.56 5.55 Retail Banking 5.5 Private Banking & Wealth Management Commercial & Institutional 5.0 4.68 4.74 4.69 4.72 4.66 4.5 4.69 4.66 4.66 4.54 4.58 4.40 4.42 4.43 4.42 4.32 0.0

  40. Slide 40: Well diversified, high-quality loan book

    Well diversified, high -quality loan book Arrears levels remain stable and low Personal: £242.3bn, 54% of group Non-personal: £205.4bn, 46% of group5 Group mortgages £222.4bn Corporate and other ex CRE £102.1bn 50% of Group lending 23% of Group lending Loan-to-value of 59%1 stable year-on-year Diver

  41. Slide 41: Prime mortgage book with low LTV

    Prime mortgage book with low LTV £200bn of Owner occupied mortgages with 59% LTV >3 months arrears below sector average 2 210 215 222 Number of UK mortgages >3 months in arrears 203 208 188 21 22 22 177 21 21 17 17 0.91% 0.91% 0.91% 0.83% 0.71% 0.78% 0.77% 182 187 189 193 200 160 171 0.66% 0.64% 0.6

  42. Slide 42: ECL walk

    ECL walk 0.83% 0.80% ECL coverage, % Stage 3 ECL coverage, % 46.44% 44.21% 20 Economic uncertainty PMA (63) 373 (475) 122 Other PMA 50 246 284 32 Stage 3 ex PMA 2,070 Stage 2 ex PMA 2,172 Stage 1 ex PMA 651 694 466 482 FY’25 Changes in Changes in Changes in risk Judgemental Write-offs H1’26 economic

  43. Slide 43: Risk Weighted Assets

    Risk Weighted Assets (3.9) Q2’26 7.7 Q1’26 (1.7) 3.4 0.4 199.5 0.9 0.8 (0.1) Basel 3.1 impact on 193.3 1.1 1 Jan 2027 ~£10bn FY’25 Evelyn Partners Lending growth RWA management CRD IV model Other H1’26 updates NatWest Group H1 2026 Results 43 July 2026

  44. Slide 44: 2025 Bank Capital Stress Test results

    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

  45. Slide 45: Footnotes

    Footnotes Slide 4: 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

  46. Slide 46: 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

  47. Slide 47: 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 Head of Corporate Access Treasury Debt Capital Markets paul.pybus@natwest.com amber.sekhri@natwest.com scott.forrest@natwest.com Useful li

NatWest Group — Debt Investor Presentation (July 2026) on 6ix