Natwest Group Plc · LSE:NWG
Natwest — H1 2026 Earnings Presentation
46 slides from Natwest's earnings presentation, Jul 31, 2026
Slide 1: H1 2026 Results
H1 2026 Results | S31 July 2026
Slide 2: Paul Thwaite, Chief Executive Officer
Paul Thwaite Chief Executive Officer
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
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
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
Slide 6: Our diversified integrated businesses are delivering at scale
Our diversified integrated businesses are delivering at scale Retail Banking Private Banking & Commercial & Wealth Management Institutional Growing share UK’s #1 Private Bank UK’s biggest bank serving 1 in 3 families & Wealth Manager for business £428bn CAL £190bn CAL £369bn CAL Disciplined Growth 1
Slide 7: Our operational momentum is driving structural growth
Our operational momentum is driving structural growth… Private Banking & Retail Banking Commercial & Institutional Wealth Management Growing share serving 1 in 3 families UK’s #1 Private Bank & Wealth Manager UK’s biggest bank for business • Strengthening our leading Youth & Family • Record AUM net
Slide 8: Accelerated by the acquisition of Evelyn Partners
… accelerated by the acquisition of Evelyn Partners Creating the UK's #1 Private Bank & Wealth Manager Differentiated, uniquely scalable Integration Delivering value end -to -end wealth proposition progressing well for shareholders • Materially enhanced wealth offering, at scale, • Operating perform
Slide 9: 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
Slide 10: Structurally higher growth and returns: guidance and targets
… to deliver structurally higher growth and returns Strengthened 2026 1 2028 Targets Guidance 1 Customer assets Cost:income Capital ROTE >19% & liabilities² Ratio Generation³ >4% CAGR <45% >200bps (previously >17%) CET1 Ratio ~13% Expect to announce next Return on Tangible Equity >18% share buyback
Slide 11: Katie Murray, Chief Financial Officer
Katie Murray Chief Financial Officer
Slide 12: 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
Slide 13: 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
Slide 14: Strong lending and Evelyn Partners AUMA drive CAL growth
Strong lending and Evelyn Partners AUMA drive £86.8bn CAL growth Customer Assets and Liabilities across our 3 businesses (CAL) 1, £bn +£86.8bn, +9.6% 986.9 +£15.1bn, +1.6% 71.7 915.2 900.1 2.8 2.6 9.7 Q1’26 Lending Deposits AUMA2 Q2’26 excl. Evelyn Partners Q2’26 incl. Evelyn Partners AUMA Evelyn Pa
Slide 15: Broad based lending growth of £9.7bn
Broad based lending growth of £9.7bn, or 2.4% in Q2’26 Gross loans to customers (amortised cost), £bn Retail Banking and PBWM: £244.4 bn , +£ 4.0 bn, 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
Slide 16: 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
Slide 17: AUMA more than doubled
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
Slide 18: 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 Group operating costs, 48.8% -2.8ppt 46.0% excluding litigation and conduct costs, to be around £8.5bn +£176m, 4.5% This includes ~£300m for Evelyn Partners 4,076 3,90
Slide 19: 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
Slide 20: Strong capital generation drives better than expected trajectory
Strong capital generation drives better than expected trajectory CET1 ratio, % 137bps of organic capital generation (73bps in Q2’26) In 2026 we expect: Capital generation pre -distributions >240bps excl. 30 June 2026 impact of Evelyn Partners, equivalent to >100bps on a reported basis (0.41%) 1.78%
Slide 21: Confident in delivering strengthened 2026 guidance
Confident in delivering our strengthened 2026 guidance 1 Previous Guidance Strengthened Guidance H1’26 actuals ex. Evelyn Partners incl. Evelyn Partners ~£17.9bn Total income excluding notable items Top end of £17.2-17.6bn incl. ~£275m for Evelyn Partners £8.7bn ~£8.2bn ~£8.5bn £4.1bn Other operatin
Slide 22: Q&A
Q&A
Slide 23: Outlook statements
Outlook statements 1 Based on our latest expectations for interest rates and economic conditions and including the impact of the Evelyn Partners acquisition, In 2026 we expect: • Total income excluding notable items to be around £17.9 billion, including around £275 million relating to Evelyn Partner
Slide 24: Notable items
Notable items Q2'25 Q3'25 Q4'25 FY'25 Q1'26 Q2'26 Group income 4,005 4,332 4,324 16,641 4,358 4,504 Notable items in Income, £m Commercial and Institutional Own credit adjustments (OCA) (3) -- (2) 1 3 (1) Dividend received on restructuring of a strategic investment -- -- 51 51 -- -- Central items &
Slide 25: Tangible net asset value
Tangible net asset value 1 GBP, m Share count, m Pence As at 31 March 2026 31,860 7,971 400 Final Ordinary dividend 2025 (paid 5 May 2026) (1,835) (23) Share buyback (164) (28) (1) Evelyn Partners Intangible assets (2,975) (37) Post distributions and acquisition 26,886 7,943 339 Attributable profit
Slide 26: 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
Slide 27: 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
Slide 28: 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
Slide 29: 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 0.4 3.0 0.4 0.3 2.2 0.4 4.2 X] 1.4 2.8 3.0 2.7 0.4 1.8 1.0 FY’21 FY’22 FY’23
Slide 30: 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 39% 40% 135 133 173 178 FY’25 H1’26 FY’25 H
Slide 31: 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
Slide 32: 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
Slide 33: 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
Slide 34: 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 4.32 4.42 0.0
Slide 35: 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
Slide 36: Prime mortgage book with low LTV
Prime mortgage book with low LTV £ 200 bn 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
Slide 37: Expected credit loss
Expected credit loss 0.83% 0.80% ECL coverage, % Stage 3 ECL coverage, % 46.44% 44.21% 20 Economic uncertainty PMA 122 (63) 373 (475) 50 246 284 Other PMA 32 Stage 3 ex PMA 2,172 2,070 Stage 2 ex PMA Stage 1 ex PMA 651 694 466 482 FY’25 Changes in Changes in Changes in risk Judgemental Write-offs H1
Slide 38: 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
Slide 39: 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 July 2026 39
Slide 40: 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
Slide 41: 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’
Slide 42: Good progress on issuance plans
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
Slide 43: 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 18.9% AT1 first call date, Balance Sheet value £bn 3 3.1% 16.4% £6.3bn 1.3% 2.5% £5.1bn 2.7% 3.7 11.6% £6.0bn 2.1
Slide 44: 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
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
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