Natwest Group Plc · LSE:NWG
Natwest — Debt Investor Presentation (April 2021)
17 slides from Natwest's debt investor presentation, Apr 29, 2021
Slide 1: Q1 2021 Results: Fixed Income Investors
Q1 2021 Results Fixed Income Investors 29th April 2021
Slide 2: Donal Quaid, Treasurer
Donal Quaid, DonalTreasurer Quaid Treasurer 2
Slide 3: Q1'21 results highlights
Q1’21 results highlights Good Q1’21 operating performance £844m £102m £620m Supporting our customers; Operating profit before Impairment release in Q1’21 Attributable profit in Q1’21, strong net lending growth impairments in Q1’21, 11bps of customer loans compared to £288m at Q1’20 down from £1,321m
Slide 4: Impairment release as defaults remain low, provision for economic uncertainty maintained
Intelligent and consistent approach to risk Impairment release as Impairment charge/(release) by segment defaults remain low, Retail Banking Private Banking Commercial Banking RBSI Ulster NatWest Group provision for economic Q1’21 (£m) 34 - (117) (2) (12) (102) uncertainty maintained Q1’21 (bps) 8 -
Slide 5: Diversified risk profile with limited change in Q1
Intelligent and consistent approach to risk Gross Loans & Advances by stage1,2 £bn, Q1 ‘21 Spotlight on sectors in focus for management, Q1 ‘21 Diversified risk profile Total loans and advances1,3, £bn with limited change in Q1 Stage 2 Airlines Transport 1.9 18.3% 4.8 Stage 3 loans £6.1bn or 1.6% of
Slide 6: Supporting our customers through the recovery
Intelligent and consistent approach to risk Supporting our Payment Holidays customers through Total Loans, £bn, (% Share of Book) the recovery New Government Q4’20 4.1 (c.4%) 2.4 (c.1%) 6.5 (c.4%) schemes launched; Pay as You Grow (BBLS) and [x] Q1’21 2.5 (c.2%) 1.9 (c.1%) 4.4 Recovery Loan Scheme l
Slide 7: Robust balance sheet with strong capital & liquidity levels
Robust balance sheet with strong capital & liquidity levels CET1 headroom above Headroom above medium term target1,2 minimum UK leverage Robust balance sheet requirements post LME and repayment of TFSME 420-520bps 295bps c.£7.0-8.6bn of headroom in Q1’21 headroom above minimum We have shaped a busin
Slide 8: Strong capital position post £1.1bn directed buy back
Robust balance sheet with strong capital & liquidity levels CET1, (%)1 Strong capital position post £1.1bn directed buy back 18.5 0.5 (0.7) 0.3 (0.1) 18.2 (0.2) CET1 ratio 18.2% down (1.0) 17.2 0.3% from Q4’20 Q4’20 Attrib. Profit RWA Directed 2021 Other Q1’212 IFRS 9 Fully Share buy back and 2021 a
Slide 9: High quality liquidity pool and funding mix
Robust balance sheet with strong capital & liquidity levels High quality liquidity pool Liquidity coverage ratio Total funding mix (£bn)1,2 above min UK requirement Liquidity position reflects 61 strong deposit growth Secondary AAA to AA- c.£64.9bn liquidity governments across both our corporate Oth
Slide 10: Issuance and capital management progress
Issuance and capital management strategy Issuance and capital 2021 Issuance guidance & Q1 2021 progress management progress Senior unsecured NWG €1bn 9NC8 Issuance in Q1 included ▪ ~£3-5bn HoldCo senior MREL Second social bond and third bond our second social bond issued in GSS format, bring total G
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: Good Q1'21 operating performance
Focused on generating shareholder value Good Q1’21 operating £m Q1'21 Q4'20 Q1’20 vs. Q4'20 vs. Q1'20 performance Net interest income 1,931 1,971 1,942 (2.0%) (0.6%) Non-interest income 728 564 1,220 29% (40%) Income up 5% on Q4’20 Total income 2,659 2,535 3,162 4.9% (15.9%) driven by mortgages and
Slide 14: Credit ratings
Credit ratings1 Moody’s S&P Fitch All ratings remain on Positive outlook from Group holding company Moody’s, with the NatWest Group plc Baa2/Pos BBB/Neg A/Neg exception of UBI DAC. Ring-fenced bank operating companies S&P and Fitch ratings on NatWest Bank Plc A1*/A2/Pos A/Neg A+/Neg Negative outlook
Slide 15: ESG ratings
ESG ratings1 Scale 2019 2020 The MSCI rating improved MSCI from BBB to AA Rating AAA to CCC BBB AA The Sustainalytics rating Sustainalytics Risk Rating also improved to Rating 1-100 27.7 20.5 Medium risk Medium risk 20.5/Medium risk. A score Negligible to Industry rank (banks) Severe #242/933 134/97
Slide 16: Issuing entity structure
Issuing entity structure Investors External issuance of AT1, Tier 2 and MREL is only from NatWest Group plc, Issues external AT1, T2, MREL Senior the group holding company. NatWest Group plc1 Group holding company Subsidiary operating companies will only issue Issues internal AT1, T2, MREL senior in
Slide 17: Cautionary and Forward-looking statements
Cautionary and Forward-looking statements The guidance, targets, expectations and trends discussed in this presentation represent NatWest Group (and where applicable N WM Group) management’s, current expectations and are subject to change, including as a result of the factors described in the “Risk
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