NatWest Group plc Q1 Results 2026

About this update from Natwest Group Plc

[{"type":"text","content":"\n \n             \n   \n   \n   \n   \n   \n   \n  NatWest Group \n        Q1 2026 Interim Management Statement \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n natwestgroup.com \n \n \n \n \n   \n   \n \n \n \n \n   \n Inside this report \n   \n \n \n \n \n Business performance summary \n   \n \n \n \n \n 2 \n \n \n Q1 2026 performance summary \n \n \n \n \n 3 \n \n \n Performance key metrics and ratios \n \n \n \n \n 5 \n \n \n Chief Financial Officer's review \n \n \n \n \n 7 \n \n \n Retail Banking \n \n \n \n \n 8 \n \n \n Private Banking & Wealth Management \n \n \n \n \n 9 \n \n \n Commercial & Institutional \n \n \n \n \n 10 \n \n \n Central items & other \n \n \n \n \n 11 \n \n \n Segment performance \n \n \n \n \n   \n \n \n   \n \n \n \n \n Capital and risk management \n \n \n \n \n 14 \n \n \n Capital, liquidity and funding risk \n \n \n \n \n 20 \n \n \n Credit risk \n \n \n \n \n 20 \n \n \n Economic drivers \n \n \n \n \n 24 \n \n \n Segment analysis - portfolio summary \n \n \n \n \n 25 \n \n \n Segment analysis - loans \n \n \n \n \n 25 \n \n \n Movement in ECL provision \n \n \n \n \n 26 \n \n \n ECL post model adjustments \n \n \n \n \n 27 \n \n \n Measurement uncertainty and ECL sensitivity analysis \n \n \n \n \n 28 \n \n \n Sector analysis - portfolio summary \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n Financial statements and notes \n \n \n \n \n 33 \n \n \n Condensed consolidated income statement \n \n \n \n \n 34 \n \n \n Condensed consolidated statement of comprehensive income \n \n \n \n \n 35 \n \n \n Condensed consolidated balance sheet \n \n \n \n \n 36 \n \n \n Condensed consolidated statement of changes in equity \n \n \n \n \n 37 \n \n \n Presentation of condensed consolidated financial statements \n \n \n \n \n 37 \n \n \n Litigation and regulatory matters \n \n \n \n \n 37 \n \n \n Post balance sheet events \n \n \n \n \n   \n \n \n \n \n Additional information \n \n \n \n \n 38 \n \n \n Presentation of information \n \n \n \n \n 38 \n \n \n Statutory accounts \n \n \n \n \n 38 \n \n \n Contacts \n \n \n \n \n 38 \n \n \n Forward-looking statements \n \n \n \n \n 40 \n \n \n Non-IFRS financial measures \n \n \n \n \n 45 \n \n \n Performance measures not defined under IFRS \n   \n \n \n \n \n   \n \n \n   \n \n \n \n \n Q1 2026 performance summary \n Chief Executive, Paul Thwaite, commented: \n \"NatWest Group's strong performance in the first quarter of 2026 reflects our consistent delivery for customers and shareholders. Total income excluding notable items (1) of £4.2 billion and an operating profit of £2.0 billion have both increased compared to Q1 2025, with a Return on Tangible Equity of 18.2% continuing our track record of delivering attractive returns. \n Having raised our ambitions in February 2026, we have continued to make good progress against our strategic priorities in Q1 2026. We have started the year with positive momentum, underpinned by healthy customer activity - growing all of our three businesses, expanding our capabilities to meet more of our customers' needs and further improving productivity as we use AI at scale across the bank. \n NatWest Group has a vital role to play in the lives of our customers and in the communities we serve throughout the UK. The strength of our balance sheet, scale of our business and depth of our long-standing relationships mean that we can provide the funding, advice and expertise our 20 million customers need in order to navigate increasing uncertainty and to achieve their goals.\" \n \n \n \n Strong financial performance \n We delivered a strong financial performance in Q1 2026, with attributable profit of £1.4 billion and earnings per share of 17.9 pence, up 15.5% compared with Q1 2025. Return on Tangible Equity (RoTE) of 18.2% drove strong capital generation pre-distributions of 65 basis points in the quarter and further growth in TNAV per share, up 16 pence to 400 pence. \n Strong growth in our customer businesses while strengthening and deepening relationships \n We made good progress against our strategic objectives and remain well placed to support our customers through the current macroeconomic uncertainty. This reflects our focus on strengthening customer relationships, priority customer segments and deepening customer connections. \n ·     Customer assets and liabilities (CAL) increased by £8.4 billion, or 0.9%, in the quarter and are 5.2% higher than Q1 2025, as we build towards our 2028 annual growth rate target of more than 4%. \n ·     Net loans to customers excluding central items increased by £7.2 billion in the quarter, as we grew our Retail Banking mortgage book and increased Commercial & Institutional balances. In Commercial & Institutional we onboarded 24,000 new startups, 25% higher than Q1 2025, supported by targeted initiatives and an improved onboarding journey, assisted by AI agents. \n ·     Customer deposits excluding central items increased by £3.1 billion with growth in Corporate & Institutions partially offset by expected reductions in Retail Banking and Private Banking & Wealth Management which were impacted by seasonal tax payments. \n ·     Strong lending and deposit growth was partially offset by a £1.8 billion reduction in assets under management and administration (AUMA), impacted by negative market movements. AUM net inflows of £0.9 billion in the quarter were strong, with c.23,000 people investing with us for the first time. \n \n We continue to leverage simplification to drive efficiency \n We have generated over £100 million of additional cost savings in the first quarter, and our cost:income ratio (excl. litigation and conduct) of 46.5% improved 2.1 percentage points compared with Q1 2025. This has been driven by ongoing restructuring and increased investment, building on our strong technology foundation and accelerating our use of AI to deliver simpler and better customer experiences in a responsible way. We continued to support our customers with improvements to our digital journeys to meet their needs faster and more effectively. \n Active balance sheet management creates capacity for growth to deliver attractive returns \n We continued to actively manage lower returning capital to create capacity for redeployment, delivering £2.2 billion of benefits from RWA management actions. Increased capital velocity supports capital generation pre-distributions of 65 basis points in the quarter. Our Common Equity Tier 1 (CET1) ratio of 14.3% was c.30 basis points higher than Q4 2025. \n We continue to maintain stable and diversified sources of funding with a strong loan:deposit ratio (excl. repos and reverse repos), up 1% in the quarter to 89%, and liquidity position, with an average Liquidity Coverage Ratio (LCR) of 144%. \n Outlook (2) \n 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 full year 2025 results. \n We are confident we will achieve our guidance however we recognise that market conditions are uncertain and we will refine our internal forecasts as the economic position evolves. \n \n \n \n (1)     Refer to the Non-IFRS financial measures appendix for details of notable items. \n (2)     The guidance, targets, expectations and trends discussed in this section represent NatWest Group plc management's current expectations and are subject to change, including as a result of the factors described in the NatWest Group plc Risk Factors in the 2025 Annual Report and Accounts and Form 20-F. All 2026 guidance excludes the expected impact of the forthcoming Evelyn Partners acquisition. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement. \n \n \n \n   \n \n \n \n Business performance summary \n   \n \n \n \n \n \n \n \n   \n \n \n Quarter ended \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n \n \n \n 31 March \n \n \n \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n 2025 \n \n \n \n \n \n \n \n Summary consolidated income statement \n \n \n \n \n \n £m \n \n \n £m \n \n \n Variance \n \n \n £m \n \n \n Variance \n \n \n \n \n Net interest income \n \n \n \n \n \n 3,394 \n \n \n 3,441 \n \n \n (1.4%) \n \n \n 3,026 \n \n \n 12.2% \n \n \n \n \n Non-interest income \n \n \n \n \n \n 964 \n \n \n 883 \n \n \n 9.2% \n \n \n 954 \n \n \n 1.0% \n \n \n \n \n Total income \n \n \n \n \n \n 4,358 \n \n \n 4,324 \n \n \n 0.8% \n \n \n 3,980 \n \n \n 9.5% \n \n \n \n \n Litigation and conduct costs \n \n \n \n \n \n (15) \n \n \n (37) \n \n \n (59.5%) \n \n \n (44) \n \n \n (65.9%) \n \n \n \n \n Other operating expenses \n \n \n \n \n \n (2,027) \n \n \n (2,211) \n \n \n (8.3%) \n \n \n (1,935) \n \n \n 4.8% \n \n \n \n \n Operating expenses \n \n \n \n \n \n (2,042) \n \n \n (2,248) \n \n \n (9.2%) \n \n \n (1,979) \n \n \n 3.2% \n \n \n \n \n Profit before impairment losses \n \n \n \n \n \n 2,316 \n \n \n 2,076 \n \n \n 11.6% \n \n \n 2,001 \n \n \n 15.7% \n \n \n \n \n Impairment losses \n \n \n \n \n \n (283) \n \n \n (136) \n \n \n 108.1% \n \n \n (189) \n \n \n 49.7% \n \n \n \n \n Operating profit before tax \n \n \n \n \n \n 2,033 \n \n \n 1,940 \n \n \n 4.8% \n \n \n 1,812 \n \n \n 12.2% \n \n \n \n \n Tax charge \n \n \n \n \n \n (526) \n \n \n (462) \n \n \n 13.9% \n \n \n (471) \n \n \n 11.7% \n \n \n \n \n Profit for the period \n \n \n \n \n \n 1,507 \n \n \n 1,478 \n \n \n 2.0% \n \n \n 1,341 \n \n \n 12.4% \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Performance key metrics and ratios \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Notable items within total income   (1) \n \n \n \n \n \n £135m \n \n \n £52m \n \n \n 159.6% \n \n \n £28m \n \n \n nm \n \n \n \n \n Total income excluding notable items   (1) \n \n \n \n \n \n £4,223m \n \n \n £4,272m \n \n \n (1.1%) \n \n \n £3,952m \n \n \n 6.9% \n \n \n \n \n Net interest margin (NIM)   (1) \n \n \n \n \n \n 2.47% \n \n \n 2.45% \n \n \n 2bps \n \n \n 2.27% \n \n \n 20bps \n \n \n \n \n Average interest earning assets   (1) \n \n \n \n \n \n £556bn \n \n \n £557bn \n \n \n (0.2%) \n \n \n £542bn \n \n \n 2.6% \n \n \n \n \n Cost:income ratio (excl. litigation and conduct)   (1) \n \n \n \n \n \n 46.5% \n \n \n 51.1% \n \n \n (4.6%) \n \n \n 48.6% \n \n \n (2.1%) \n \n \n \n \n Loan impairment rate   (1) \n \n \n \n \n \n 26bps \n \n \n 13bps \n \n \n 13bps \n \n \n 19bps \n \n \n 7bps \n \n \n \n \n Profit attributable to ordinary shareholders \n \n \n \n \n \n £1,432m \n \n \n £1,393m \n \n \n 2.8% \n \n \n £1,252m \n \n \n 14.4% \n \n \n \n \n Total earnings per share attributable to ordinary shareholders - basic   \n \n \n \n \n \n 17.9p \n \n \n 17.4p \n \n \n 0.5p \n \n \n 15.5p \n \n \n 2.4p \n \n \n \n \n Return on Tangible Equity (RoTE)   (1) \n \n \n \n \n \n 18.2% \n \n \n 18.3% \n \n \n (0.1%) \n \n \n 18.5% \n \n \n (0.3%) \n \n \n \n \n Climate and transition finance   (2) \n \n \n \n \n \n £10,477m \n \n \n £11,451m \n \n \n na \n \n \n - \n \n \n na \n \n \n \n \n   \n nm = not meaningful, na = not applicable \n For the footnotes to this table refer to the following page. \n \n \n   \n Business performance summary continued \n \n \n \n \n \n \n \n \n \n \n As at \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n \n \n \n 31 March \n \n \n \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n 2025 \n \n \n \n \n \n \n \n Balance sheet \n \n \n \n \n \n £bn \n \n \n £bn \n \n \n Variance \n \n \n £bn \n \n \n Variance \n \n \n \n \n Total assets \n \n \n \n \n \n 749.6 \n \n \n 714.6 \n \n \n 4.9% \n \n \n 710.0 \n \n \n 5.6% \n \n \n \n \n Loans to customers - amortised cost \n \n \n \n \n \n 431.6 \n \n \n 418.9 \n \n \n 3.0% \n \n \n 398.8 \n \n \n 8.2% \n \n \n \n \n Loans to customers excluding central items   (1,3) \n \n \n \n \n \n 396.4 \n \n \n 389.2 \n \n \n 1.8% \n \n \n 371.9 \n \n \n 6.6% \n \n \n \n \n Loans to customers and banks - amortised cost and FVOCI   \n \n \n \n \n \n 444.4 \n \n \n 429.9 \n \n \n 3.4% \n \n \n 409.5 \n \n \n 8.5% \n \n \n \n \n Total impairment provisions   (4) \n \n \n \n \n \n 3.7 \n \n \n 3.6 \n \n \n 2.8% \n \n \n 3.5 \n \n \n 5.7% \n \n \n \n \n Expected credit loss (ECL) coverage ratio   \n \n \n \n \n \n 0.84% \n \n \n 0.83% \n \n \n 1bps \n \n \n 0.86% \n \n \n (2bps) \n \n \n \n \n Customer deposits \n \n \n \n \n \n 445.5 \n \n \n 443.0 \n \n \n 0.6% \n \n \n 434.6 \n \n \n 2.5% \n \n \n \n \n Customer deposits excluding central items   (1,3) \n \n \n \n \n \n 444.8 \n \n \n 441.7 \n \n \n 0.7% \n \n \n 433.4 \n \n \n 2.6% \n \n \n \n \n Assets under management and administration (AUMA)   (1) \n \n \n \n \n \n 56.7 \n \n \n 58.5 \n \n \n (3.1%) \n \n \n 48.5 \n \n \n 16.9% \n \n \n \n \n Customer assets and liabilities (CAL)   (1) \n \n \n \n \n \n 900.1 \n \n \n 891.7 \n \n \n 0.9% \n \n \n 856.0 \n \n \n 5.2% \n \n \n \n \n Liquidity and funding \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Average Liquidity Coverage Ratio (LCR)   (5) \n \n \n \n \n \n 144% \n \n \n 147% \n \n \n (3%) \n \n \n 151% \n \n \n (7%) \n \n \n \n \n Liquidity portfolio \n \n \n \n \n \n 233 \n \n \n 238 \n \n \n (2%) \n \n \n 222 \n \n \n 5% \n \n \n \n \n Average Net Stable Funding Ratio (NSFR)   (5) \n \n \n \n \n \n 134% \n \n \n 135% \n \n \n (1%) \n \n \n 137% \n \n \n (3%) \n \n \n \n \n Loan:deposit ratio (excl. repos and reverse repos)   (1) \n \n \n \n \n \n 89% \n \n \n 88% \n \n \n 1% \n \n \n 85% \n \n \n 4% \n \n \n \n \n Total wholesale funding \n \n \n \n \n \n 92 \n \n \n 88 \n \n \n 5% \n \n \n 87 \n \n \n 6% \n \n \n \n \n Short-term wholesale funding \n \n \n \n \n \n 29 \n \n \n 28 \n \n \n 4% \n \n \n 33 \n \n \n (12%) \n \n \n \n \n Capital and leverage \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Common Equity Tier 1 (CET1) ratio   (6) \n \n \n \n \n \n 14.3% \n \n \n 14.0% \n \n \n 30bps \n \n \n 13.8% \n \n \n 50bps \n \n \n \n \n Total capital ratio   (6) \n \n \n \n \n \n 19.8% \n \n \n 19.3% \n \n \n 50bps \n \n \n 20.6% \n \n \n (80bps) \n \n \n \n \n Pro forma CET1 ratio (excl. foreseeable items)   (7) \n \n \n \n \n \n 15.9% \n \n \n 15.4% \n \n \n 50bps \n \n \n 14.8% \n \n \n 110bps \n \n \n \n \n Risk-weighted assets (RWAs) \n \n \n \n \n \n 196.0 \n \n \n 193.3 \n \n \n 1.4% \n \n \n 187.0 \n \n \n 4.8% \n \n \n \n \n UK leverage ratio \n \n \n \n \n \n 4.8% \n \n \n 4.8% \n \n \n - \n \n \n 5.2% \n \n \n (0.4%) \n \n \n \n \n Tangible net asset value (TNAV) per ordinary share   (1,8) \n \n \n \n \n \n 400p \n \n \n 384p \n \n \n 16p \n \n \n 347p \n \n \n 53p \n \n \n \n \n Number of ordinary shares in issue (millions)   (8) \n \n \n \n \n \n 7,971 \n \n \n 7,995 \n \n \n (0.3%) \n \n \n 8,067 \n \n \n (1.2%) \n \n \n \n \n (1)     Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. \n (2)     NatWest Group uses its climate and transition finance framework to determine the assets, activities, acquisition targets and companies that are eligible to be included within its target to provide £200 billion in climate and transition finance between 1 July 2025 and the end of 2030. This included both provision of committed (on and off-balance sheet) financing and facilitation. Climate and transition finance represents only a relatively small proportion of NatWest Group's overall funding, financing and facilitation activities. The climate and transition finance framework is available on natwestgroup.com. \n (3)     Central items includes Treasury repo activity. \n (4)     Includes £0.1 billion relating to off-balance sheet exposures (31 December 2025 - £0.1 billion; 31 March 2025 - £0.1 billion). \n (5)     Reported on an average basis in line with supervisory guidelines. The LCR is calculated as the average of the preceding 12 months. The NSFR is calculated as the average of the preceding four quarters. \n (6)     Refer to the Capital, liquidity and funding risk section for details of the basis of preparation. \n (7)     The pro forma CET1 ratio at 31 March 2026 excludes foreseeable items of £3,161 million: £2,553 million for ordinary dividends and £608 million foreseeable charges (31 December 2025 excludes foreseeable items of £2,758 million: £1,837 million for ordinary dividends and £921 million foreseeable charges. 31 March 2025 excludes foreseeable items of £1,875 million for ordinary dividends). \n (8)     The number of ordinary shares in issue excludes own shares held. \n   \n   \n \n \n \n \n   \n Chief Financial Officer's review \n In the first quarter of 2026 we delivered a strong financial performance and continued to execute against our strategic objectives, with a RoTE of 18.2% and total income excluding notable items of £4.2 billion. We have strengthened our income guidance and remain on track to meet the other targets set out in our full year results in February. \n Net loans to customers excluding central items increased £7.2 billion in the quarter and customer deposits excluding central items increased £3.1 billion, despite elevated tax payments. \n Our capital and liquidity position remains robust, with a CET1 ratio of 14.3% and an average LCR of 144%. Strong income generation and disciplined cost control translated into 65 basis points of capital generation in the quarter, including a further £2.2 billion of RWA management actions to create capacity for growth. \n   \n \n \n \n Strong growth while strengthening and deepening relationships \n We are growing in ways that build and strengthen customer relationships, focusing on our priority segments and deepening customer connections. \n ·     Attributable profit was £1,432 million, earnings per share of 17.9 pence, up 15.5% compared with Q1 2025, and a RoTE of 18.2%. \n ·     Total income of £4.4 billion was broadly flat compared with Q4 2025 and £378 million higher than Q1 2025. Total income excluding notable items was £49 million lower than Q4 2025 reflecting the impact of two fewer days in the quarter, deposit outflows due to tax payments and lower mortgage margins. These impacts were partially offset by higher trading income and deposit margin expansion from strong hedge income. As a result, Q1 2026 net interest margin increased by 2 basis points in the quarter to 2.47%. Total income excluding notable items was £271 million higher than Q1 2025 principally due to deposit margin expansion and lending balance growth, partially offset by lower mortgage margins. \n ·     We continued to support our customers as net loans to customers excluding central items increased by £7.2 billion in the quarter to £396.4 billion. This included a £3.8 billion increase in Commercial & Institutional balances, driven by growth in Corporate & Institutions, and a £3.3 billion increase in Retail Banking mortgage balances. \n ·     Customer deposits excluding central items increased £3.1 billion during Q1 2026 to £444.8 billion. This primarily reflected £5.1 billion growth in Commercial & Institutional, driven by higher balances in Corporate & Institutions. This was partially offset by reductions in Retail Banking and Private Banking & Wealth Management which were impacted by seasonal tax outflows. Total term balances across the group were stable in Q1 2026 at 17%. \n ·     Customer assets and liabilities (CAL) increased by £8.4 billion, or 0.9%, in the quarter as lending and deposit growth was partially offset by a £1.8 billion reduction in assets under management and administration (AUMA), impacted by negative market movements. \n Leveraging simplification \n Our cost:income ratio (excl. litigation and conduct) of 46.5% has improved 2.1 percentage points compared with Q1 2025 as we continued to make progress towards becoming a simpler, more agile and technology-driven bank, using our capabilities to support growth, productivity and trust. We're leveraging our strong technology foundation to deliver bespoke customer solutions through responsible, sustainable AI. \n ·     Total operating expenses were £206 million lower than Q4 2025 and £63 million higher than Q1 2025. Other operating expenses were £184 million, or 8.3%, lower in the quarter primarily reflecting seasonally higher costs in Q4 2025 partially offset with higher reward and restructuring costs. Compared with Q1 2025, other operating expenses were £92 million, or 4.8%, higher. This was largely due to increased transformational activity, leading to higher costs associated with people and investment, as well as the impact of rewarding our people through the 2025 pay award. Other ongoing inflationary pressures were offset by underlying cost efficiencies. \n \n \n \n Chief Financial Officer's review continued \n Actively managing our balance sheet and risk to deliver attractive returns \n We continue to proactively manage our balance sheet and maintain stable and diversified sources of funding to increase capital velocity. \n ·     A net impairment charge of £283 million, or 26 basis points of gross customer loans, including a multiple economic scenario (MES) update of c.£140 million. \n ·     Compared with Q4 2025, our ECL provision increased £0.2 billion to £3.7 billion and our ECL coverage ratio increased to 0.84%. We recognise the significant uncertainty in the economic outlook and whilst we are comfortable with the strong credit performance of our book, we retain post model adjustments (PMA) of £0.3 billion. \n ·     CET1 ratio increased c.30 basis points to 14.3% in Q1 2026. This included capital generation pre-distributions of 65 basis points, primarily comprising c.70 basis points of profit and c.5 basis points from a reduction in expected losses less impairment provisions following the MES update through impairment losses. This was partially offset by the increase in RWAs, c.20 basis points. \n \n   \n   \n ·     The average LCR decreased by 3% to 144% during Q1 2026, due to higher lending offset by higher deposits and issuance, and changes in outflow assumptions. Our primary liquidity decreased by £1.6 billion to £155.7 billion, of which £74.9 billion, or 48%, was cash and balances at central banks. Total wholesale funding increased by £3.4 billion in the quarter to £91.7 billion. \n ·     TNAV per share increased by 16 pence in the quarter to 400 pence primarily reflecting the attributable profit for the period. \n ·     RWAs increased by £2.7 billion during Q1 2026 to £196.0 billion. This primarily reflected franchise lending growth partially offset by a further £2.2 billion benefit from RWA management actions. \n \n \n \n \n \n Business performance summary \n Retail Banking \n \n \n \n \n \n \n \n Quarter ended \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Total income \n \n \n 1,684 \n \n \n 1,699 \n \n \n 1,540 \n \n \n \n \n Operating expenses \n \n \n (719) \n \n \n (799) \n \n \n (681) \n \n \n \n \n     of which: Other operating expenses \n \n \n (716) \n \n \n (799) \n \n \n (677) \n \n \n \n \n Impairment losses \n \n \n (184) \n \n \n (114) \n \n \n (109) \n \n \n \n \n Operating profit \n \n \n 781 \n \n \n 786 \n \n \n 750 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Return on equity   (1) \n \n \n 24.6% \n \n \n 24.6% \n \n \n 24.5% \n \n \n \n \n Net interest margin   (1) \n \n \n 2.69% \n \n \n 2.70% \n \n \n 2.58% \n \n \n \n \n Cost:income ratio (excl. litigation and conduct)   (1) \n \n \n 42.5% \n \n \n 47.0% \n \n \n 44.0% \n \n \n \n \n Loan impairment rate   (1) \n \n \n 33bps \n \n \n 21bps \n \n \n 21bps \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n As at \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n \n \n Net loans to customers (amortised cost) \n \n \n 219.4 \n \n \n 216.1 \n \n \n 210.4 \n \n \n \n \n Customer deposits \n \n \n 202.2 \n \n \n 202.6 \n \n \n 195.7 \n \n \n \n \n Customer assets and liabilities (CAL)   (1) \n \n \n 423.5 \n \n \n 420.5 \n \n \n 407.9 \n \n \n \n \n RWAs \n \n \n 70.2 \n \n \n 68.5 \n \n \n 66.8 \n \n \n \n \n   \n During Q1 2026, Retail Banking delivered an operating profit of £781 million and a return on equity of 24.6%. This performance was supported by growth in mortgage stock share and stable deposit stock share compared to Q4 2025, alongside deposit margin expansion from strong hedge income. \n We support over 19 million Retail Banking customers and continue to expand our reach to build new customer relationships. We announced a partnership with Rightmove, bringing our digital, end-to-end mortgage capability to where our customers are looking for their next home. In addition, we announced a partnership with Sainsbury's Group to provide customers with credit cards, personal loans and instant access savings products. Our banking as a service proposition, NatWest Boxed, is live in the market and supporting balance sheet growth, and from Q1 2026 is reported in the Retail Banking segment. We continue to harness the power of AI to enhance the experience for both customers and colleagues, increasing operational leverage and driving low-cost growth. Compared with Q1 2025, our digital assistant Cora handled 11% higher chat volumes, with 20% handled by generative AI. Retail Banking provided £1.3 billion of climate and transition finance (2) in Q1 2026 from lending on EPC A and B-rated residential properties. \n   \n   \n Q1 2026 performance \n ·     Total income decreased by £15 million, or 0.9%, compared with Q4 2025, reflecting the impact of seasonal customer tax outflows on deposit balances, lower asset margins and the impact of two fewer days in the quarter, partly offset by deposit margin expansion from strong hedge income and higher non-interest income, which benefitted from one-off items including an annual insurance profit share. Total income increased by £144 million, or 9.4%, compared with Q1 2025, driven by deposit margin expansion, as a result of increased hedge income, and lending balance growth, partly offset by lower asset margins. \n ·     Net interest margin decreased by 1 basis point compared with Q4 2025, largely reflecting the net interest income factors noted above. \n ·     Other operating expenses decreased by £83 million, or 10.4%, compared with Q4 2025, reflecting the non-repeat of the Q4 2025 annual bank levy and property exit costs, together with lower restructuring costs, fraud and lower investment spend. These reductions were partly offset by Bank of England levy and the inclusion of NatWest Boxed in the Retail Banking segment. Other operating expenses increased by £39 million, or 5.8%, compared with Q1 2025, reflecting inclusion of NatWest Boxed costs in the Retail Banking segment, higher investment spend and higher Bank of England levy. \n ·     An impairment charge of £184 million, compared with a £114 million charge in Q4 2025, primarily reflecting the non-repeat of the mortgage securitisation benefit recognised in Q4 2025, alongside updates to multiple economic scenarios and increased Stage 3 flows largely as a result of strategic credit card portfolio growth in recent years. \n ·     Net loans to customers increased by £3.3 billion, or 1.5%, in Q1 2026 driven by an increase of £3.3 billion, or 1.6%, in mortgage balances and an increase of £0.3 billion, or 3.2%, in personal advances, partly offset by lower cards balances of £0.2 billion, or 2.4%, in the quarter. \n ·     Customer deposits decreased by £0.4 billion, or 0.2%, in Q1 2026, largely reflecting the impact of customers' seasonal tax payments, partly offset by overall personal market growth. \n ·     RWAs increased by £1.7 billion, or 2.5%, in Q1 2026, primarily due to book movements and model updates. \n   \n (1)     Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. \n \n \n   \n (2)     Climate and transition finance represents only a relatively small proportion of our overall financing and facilitation activities. \n Business performance summary continued \n Private Banking & Wealth Management \n \n \n \n \n \n \n \n Quarter ended \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Total income \n \n \n 291 \n \n \n 308 \n \n \n 265 \n \n \n \n \n Operating expenses \n \n \n (191) \n \n \n (195) \n \n \n (187) \n \n \n \n \n    of which: Other operating expenses \n \n \n (191) \n \n \n (195) \n \n \n (187) \n \n \n \n \n Impairment losses \n \n \n (6) \n \n \n (6) \n \n \n (1) \n \n \n \n \n Operating profit \n \n \n 94 \n \n \n 107 \n \n \n 77 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Return on equity   (1) \n \n \n 21.1% \n \n \n 23.6% \n \n \n 17.1% \n \n \n \n \n Net interest margin   (1) \n \n \n 2.73% \n \n \n 2.72% \n \n \n 2.59% \n \n \n \n \n Cost:income ratio (excl. litigation and conduct)   (1) \n \n \n 65.6% \n \n \n 63.3% \n \n \n 70.6% \n \n \n \n \n Loan impairment rate   (1) \n \n \n 13bps \n \n \n 13bps \n \n \n 2bps \n \n \n \n \n AUM net flows (£bn)   (1) \n \n \n 0.9 \n \n \n 0.9 \n \n \n 0.8 \n \n \n \n \n AUMA income   (1,2) \n \n \n 83 \n \n \n 84 \n \n \n 75 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n As at \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n \n \n Net loans to customers (amortised cost) \n \n \n 19.0 \n \n \n 18.9 \n \n \n 18.4 \n \n \n \n \n Customer deposits \n \n \n 41.1 \n \n \n 42.7 \n \n \n 41.2 \n \n \n \n \n RWAs \n \n \n 11.4 \n \n \n 11.4 \n \n \n 11.3 \n \n \n \n \n Assets under management and administration (AUMA)   (1,3) \n \n \n 56.7 \n \n \n 58.5 \n \n \n 48.5 \n \n \n \n \n   o f which: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   Assets under management (AUM)   (1) \n \n \n 43.3 \n \n \n 43.7 \n \n \n 36.7 \n \n \n \n \n   Assets under administration (AUA)   (1,3) \n \n \n 13.4 \n \n \n 14.8 \n \n \n 11.8 \n \n \n \n \n Customer assets and liabilities (CAL)   (1,4) \n \n \n 115.5 \n \n \n 119.0 \n \n \n 107.0 \n \n \n \n \n During Q1 2026, Private Banking & Wealth Management delivered an operating profit of £94 million and return on equity of 21.1%. We saw strong AUM net inflows of £0.9 billion and a more than 50% uplift in 'new-to-invest' clients in the quarter, at c.23,000. We continued to enhance the digital experience within the Coutts app, with record mobile NPS of 56, including 60% more readers of the Chief Investment Officer's articles and client engagement with personalised in-app messaging. \n Private Banking & Wealth Management provided £0.1 billion of climate and transition finance (5) in Q1 2026, principally in relation to mortgages on residential properties with an EPC rating of A or B and wholesale transactions. \n   \n Q1 2026 performance \n ·     Total income decreased by £17 million, or 5.5%, compared with Q4 2025, primarily reflecting the non - repeat of adjustments relating to transactional fees and effective interest rate adjustment review of customer loan repayment behaviour in Q4 2025, as well as the impact of two fewer days in the quarter, partly offset by deposit margin expansion from strong hedge income. Total income increased by £26 million, or 9.8%, compared with Q1 2025 largely driven by deposit margin expansion from strong hedge income and AUMA balance growth. \n ·     Net interest margin was 1 basis point higher than Q4 2025, largely reflecting the net interest income factors noted above. \n ·     Other operating expenses decreased by £4 million, or 2.1%, compared with Q4 2025 largely driven by non-repeat of the Q4 2025 annual bank levy and lower non-staff costs, partially offset by the Bank of England levy, higher investment spend and restructuring costs. Other operating expenses increased by £4 million, or 2.1%, compared with Q1 2025 largely due to higher investment spend.   \n ·     An impairment charge of £6 million was in line with Q4 2025. Compared with Q1 2025, the impairment charge increased by £5 million largely reflecting higher good book charges driven by an update in multiple economic scenarios in Q1 2026 compared to good book releases in Q1 2025. \n ·     Net loans to customers increased by £0.1 billion, or 0.5%, in Q1 2026, driven by an increase in personal lending. \n ·     Customer deposits decreased by £1.6 billion, or 3.7%, in Q1 2026, largely reflecting the impact of seasonal tax outflows. \n ·     AUMA balances decreased by £1.8 billion, or 3.1%, in Q1 2026 primarily driven by negative market movements of £1.7 billion and AUA net outflows driven by gilt redemptions linked to seasonal tax outflows of £1.2 billion, partially offset by AUM net inflows of £0.9 billion and Cushon net inflows of £0.2 billion. AUM net flows as a percentage of opening balances are 8.2% on an annualised basis. \n   \n (1)     Refer to the Non-IFRS financial measures appendix for details of basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. \n (2)     AUMA income includes investment income earned across NatWest Group (excluding Cushon). Investment income includes ongoing fees as a percentage of assets and fees, charged on a per transaction basis, for advice services, trading and exchange services, protection and alternative investing services. \n (3)     Includes £4.0 billion (31 December 2025 - £4.0 billion; 31 March 2025 - £3.0 billion) relating to Cushon, classified as held-for-sale. \n (4)     CAL refers to customer deposits, gross loans to customers - amortised cost and AUMA. To avoid double counting, investment cash is deducted from CAL as it is reported within customer deposits and AUMA. \n (5)     Climate and transition finance represents only a relatively small proportion of our overall financing and facilitation activities. \n Business performance summary continued \n Commercial & Institutional \n \n \n \n \n \n \n \n Quarter ended \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Net interest income \n \n \n 1,642 \n \n \n 1,644 \n \n \n 1,459 \n \n \n \n \n Non-interest income \n \n \n 593 \n \n \n 668 \n \n \n 683 \n \n \n \n \n Total income \n \n \n 2,235 \n \n \n 2,312 \n \n \n 2,142 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Operating expenses \n \n \n (1,111) \n \n \n (1,254) \n \n \n (1,044) \n \n \n \n \n    of which: Other operating expenses \n \n \n (1,102) \n \n \n (1,225) \n \n \n (1,015) \n \n \n \n \n Impairment losses \n \n \n (94) \n \n \n (19) \n \n \n (78) \n \n \n \n \n Operating profit \n \n \n 1,030 \n \n \n 1,039 \n \n \n 1,020 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Return on equity   (1) \n \n \n 18.3% \n \n \n 19.4% \n \n \n 19.3% \n \n \n \n \n Net interest margin   (1) \n \n \n 2.46% \n \n \n 2.45% \n \n \n 2.32% \n \n \n \n \n Cost:income ratio (excl. litigation and conduct)   (1) \n \n \n 49.3% \n \n \n 53.0% \n \n \n 47.4% \n \n \n \n \n Loan impairment rate   (1) \n \n \n 24bps \n \n \n 5bps \n \n \n 22bps \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n As at \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n \n \n Net loans to customers (amortised cost) \n \n \n 158.0 \n \n \n 154.2 \n \n \n 143.1 \n \n \n \n \n Customer deposits \n \n \n 201.5 \n \n \n 196.4 \n \n \n 196.5 \n \n \n \n \n Funded assets   (1) \n \n \n 364.0 \n \n \n 331.4 \n \n \n 336.1 \n \n \n \n \n Customer assets and liabilities (CAL)   (1) \n \n \n 361.1 \n \n \n 352.2 \n \n \n 341.1 \n \n \n \n \n RWAs \n \n \n 113.0 \n \n \n 111.9 \n \n \n 107.3 \n \n \n \n \n   \n During Q1 2026, Commercial & Institutional delivered an operating profit of £1,030 million and a return on equity of 18.3%. Performance was supported by strong lending growth across key customer sectors. We continued to support social housing (2) with greater than £1.1 billion committed in Q1 2026 and we are on track to meet our £10 billion ambition by 2028, as well as continued support to start-ups where we have seen 25% growth in start-up customers compared with Q1 2025. We are continuing to improve our customer journeys through the deployment of AI‑enabled capabilities. Four AI‑enabled agents are now live across onboarding and mandates, supporting faster and more efficient processing while strengthening controls through embedded human oversight. \n Commercial & Institutional provided £9.1 billion of climate and transition finance (3) in Q1 2026 to support customers investing in the transition to net zero. \n \n   \n Q1 2026 performance \n ·     Total income was £77 million, or 3.3%, lower than Q4 2025 primarily reflecting non-repeat of the Q4 2025 dividend received on restructuring of a strategic investment in Corporate & Institutions and the impact of two fewer days in the quarter, partially offset by strong lending growth across Corporate & Institutions and Commercial Mid-market, (4) and higher markets trading income. Total income was £93 million, or 4.3%, higher than Q1 2025 primarily due to deposit margin expansion from strong hedge income, customer lending growth, partially offset by lower markets trading income. \n ·     Net interest margin was 1 basis point higher than Q4 2025 reflecting deposit margin expansion. \n ·     Other operating expenses were £123 million, or 10.0%, lower than Q4 2025 primarily reflecting the non-repeat of the Q4 2025 annual bank levy. Other operating expenses were £87 million, or 8.6%, higher than Q1 2025 largely due to increased inflation, continued investment in the business and higher restructuring costs, partly offset by continued business simplification. \n ·     An impairment charge of £94 million in Q1 2026 compared with a £19 million charge in Q4 2025 largely reflecting higher charges driven by an update in the multiple economic scenarios in Q1 2026. Compared with Q1 2025, the impairment charge increased £16 million due to higher good book charges reflecting the updated multiple economic scenarios in Q1 2026, partially offset by lower Stage 3 charges. \n ·     Net loans to customers increased by £3.8 billion, or 2.5%, in Q1 2026, reflecting broad-based growth within Corporate & Institutions and Commercial Mid-market. Commercial Mid-market and Business Banking were impacted by client transfers. (4) UK Government scheme repayments were £0.4 billion in the quarter. \n ·     Customer deposits increased by £5.1 billion, or 2.6%, in Q1 2026 largely reflecting growth in interest-bearing savings balances in Corporate & Institutions. Commercial Mid-market and Business Banking were impacted by client transfers (5) and seasonality factors including client tax outflows. \n ·     RWAs increased by £1.1 billion, or 1.0%, compared with Q4 2025 primarily driven by book growth and increases in market risk and counterparty credit risk, partly offset by continued RWA management activity and CRDIV benefits. \n   \n (1)     Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. \n (2)     Social finance and facilitation represents only a relatively small proportion of our overall financing and facilitation activities. \n (3)     Climate and transition finance represents only a relatively small proportion of our overall financing and facilitation activities. \n (4)     Client transfers from Commercial Mid-market to Business Banking in Q1 2026 of £0.8 billion. Comparatives have not been restated. Equivalent balance at the end of 31 December 2025 was £0.8 billion. \n (5)     Client transfers from Commercial Mid-market to Business Banking in Q1 2026 of £1.7 billion. Comparatives have not been restated. Equivalent balance at the end of 31 December 2025 was £1.7 billion. \n \n \n \n Business performance summary continued \n Central items & other \n \n \n \n \n \n \n \n Quarter ended \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Total income \n \n \n 148 \n \n \n 5 \n \n \n 33 \n \n \n \n \n Operating expenses   \n \n \n (21) \n \n \n - \n \n \n (67) \n \n \n \n \n    of which: Other operating expenses \n \n \n (18) \n \n \n 8 \n \n \n (56) \n \n \n \n \n Impairment releases/(losses) \n \n \n 1 \n \n \n 3 \n \n \n (1) \n \n \n \n \n Operating profit/(loss) \n \n \n 128 \n \n \n 8 \n \n \n (35) \n \n \n \n \n \n \n \n   \n \n \n As at \n \n \n   \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n 31 March \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n 2025 \n \n \n \n \n \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n \n \n Net loans to customers (amortised cost) \n \n \n 35.2 \n \n \n 29.7 \n \n \n 26.9 \n \n \n \n \n Customer deposits \n \n \n 0.7 \n \n \n 1.3 \n \n \n 1.2 \n \n \n \n \n RWAs \n \n \n 1.4 \n \n \n 1.5 \n \n \n 1.6 \n \n \n \n \n   \n \n   \n Q1 2026 performance \n ·     Total income was £143 million higher than Q4 2025 and £115 million higher than Q1 2025 primarily reflecting higher gains on interest and FX risk management derivatives not in hedge accounting relationships and foreign exchange recycling gains. \n ·     Other operating expenses were £26 million higher than Q4 2025 and £38 million lower than Q1 2025 primarily due to indirect cost allocation phasing across 2025. \n ·     Net loans to customers increased by £5.5 billion in Q1 2026 driven by reverse repo activity in Treasury. \n ·     Customer deposits decreased by £0.6 billion compared with Q4 2025 reflecting repo activity in Treasury. \n \n \n \n \n \n Segment performance \n \n \n \n \n   \n \n \n Quarter ended 31 March 2026 \n \n \n \n \n \n \n \n Retail \n \n \n Private Banking \n \n \n Commercial   \n \n \n Central items \n \n \n Total NatWest \n \n \n \n \n \n \n \n Banking \n \n \n   & Wealth Management \n \n \n & Institutional \n \n \n   & other \n \n \n Group \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Income statement   \n \n \n \n \n \n \n \n Net interest income \n \n \n 1,562 \n \n \n 196 \n \n \n 1,642 \n \n \n (6) \n \n \n 3,394 \n \n \n \n \n Own credit adjustments \n \n \n - \n \n \n - \n \n \n 3 \n \n \n - \n \n \n 3 \n \n \n \n \n Other non-interest income \n \n \n 122 \n \n \n 95 \n \n \n 590 \n \n \n 154 \n \n \n 961 \n \n \n \n \n Total income   \n \n \n 1,684 \n \n \n 291 \n \n \n 2,235 \n \n \n 148 \n \n \n 4,358 \n \n \n \n \n Direct expenses \n \n \n (182) \n \n \n (58) \n \n \n (379) \n \n \n (1,408) \n \n \n (2,027) \n \n \n \n \n Indirect expenses \n \n \n (534) \n \n \n (133) \n \n \n (723) \n \n \n 1,390 \n \n \n - \n \n \n \n \n Other operating expenses \n \n \n (716) \n \n \n (191) \n \n \n (1,102) \n \n \n (18) \n \n \n (2,027) \n \n \n \n \n Litigation and conduct costs \n \n \n (3) \n \n \n - \n \n \n (9) \n \n \n (3) \n \n \n (15) \n \n \n \n \n Operating expenses \n \n \n (719) \n \n \n (191) \n \n \n (1,111) \n \n \n (21) \n \n \n (2,042) \n \n \n \n \n Operating profit before impairment losses/releases \n \n \n 965 \n \n \n 100 \n \n \n 1,124 \n \n \n 127 \n \n \n 2,316 \n \n \n \n \n Impairment (losses)/releases \n \n \n (184) \n \n \n (6) \n \n \n (94) \n \n \n 1 \n \n \n (283) \n \n \n \n \n Operating profit \n \n \n 781 \n \n \n 94 \n \n \n 1,030 \n \n \n 128 \n \n \n 2,033 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total income excluding notable items   (1) \n \n \n 1,684 \n \n \n 291 \n \n \n 2,232 \n \n \n 16 \n \n \n 4,223 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Additional information \n \n \n   \n \n \n \n \n Return on Tangible Equity   (1) \n \n \n na \n \n \n na \n \n \n na \n \n \n na \n \n \n 18.2% \n \n \n \n \n Return on equity   (1) \n \n \n 24.6% \n \n \n 21.1% \n \n \n 18.3% \n \n \n nm \n \n \n na \n \n \n \n \n Cost:income ratio (excl. litigation and conduct)   (1) \n \n \n 42.5% \n \n \n 65.6% \n \n \n 49.3% \n \n \n nm \n \n \n 46.5% \n \n \n \n \n Total assets (£bn) \n \n \n 243.4 \n \n \n 29.5 \n \n \n 430.2 \n \n \n 46.5 \n \n \n 749.6 \n \n \n \n \n Funded assets (£bn)   (1) \n \n \n 243.4 \n \n \n 29.5 \n \n \n 364.0 \n \n \n 46.3 \n \n \n 683.2 \n \n \n \n \n Net loans to customers - amortised cost (£bn) \n \n \n 219.4 \n \n \n 19.0 \n \n \n 158.0 \n \n \n 35.2 \n \n \n 431.6 \n \n \n \n \n Loan impairment rate   (1) \n \n \n 33bps \n \n \n 13bps \n \n \n 24bps \n \n \n nm \n \n \n 26bps \n \n \n \n \n Impairment provisions (£bn) \n \n \n (1.9) \n \n \n (0.1) \n \n \n (1.7) \n \n \n - \n \n \n (3.7) \n \n \n \n \n Impairment provisions - Stage 3 (£bn) \n \n \n (1.2) \n \n \n (0.1) \n \n \n (1.0) \n \n \n 0.1 \n \n \n (2.2) \n \n \n \n \n Customer deposits (£bn) \n \n \n 202.2 \n \n \n 41.1 \n \n \n 201.5 \n \n \n 0.7 \n \n \n 445.5 \n \n \n \n \n Risk-weighted assets (RWAs) (£bn) \n \n \n 70.2 \n \n \n 11.4 \n \n \n 113.0 \n \n \n 1.4 \n \n \n 196.0 \n \n \n \n \n Total customer assets and liabilities (CAL)   (1) \n \n \n 423.5 \n \n \n 115.5 \n \n \n 361.1 \n \n \n na \n \n \n 900.1 \n \n \n \n \n RWA equivalent (RWAe) (£bn) \n \n \n 71.3 \n \n \n 11.4 \n \n \n 114.0 \n \n \n 1.8 \n \n \n 198.5 \n \n \n \n \n Employee numbers (FTEs - thousands) \n \n \n 12.3 \n \n \n 2.1 \n \n \n 12.9 \n \n \n 31.4 \n \n \n 58.7 \n \n \n \n \n Third party customer asset rate   (1) \n \n \n 4.43% \n \n \n 4.54% \n \n \n 5.56% \n \n \n nm \n \n \n nm \n \n \n \n \n Third party customer funding rate   (1) \n \n \n (1.60%) \n \n \n (2.35%) \n \n \n (1.36%) \n \n \n nm \n \n \n nm \n \n \n \n \n Average interest earning assets (£bn)   (1) \n \n \n 235.5 \n \n \n 29.1 \n \n \n 270.6 \n \n \n na \n \n \n 556.3 \n \n \n \n \n Net interest margin   (1) \n \n \n 2.69% \n \n \n 2.73% \n \n \n 2.46% \n \n \n na \n \n \n 2.47% \n \n \n \n \n nm = not meaningful, na = not applicable \n \n \n   \n (1)     Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. \n Segment performance continued \n \n \n \n \n   \n \n \n Quarter ended 31 December 2025 \n \n \n \n \n \n \n \n Retail \n \n \n Private Banking \n \n \n Commercial   \n \n \n Central items \n \n \n Total NatWest \n \n \n \n \n \n \n \n Banking \n \n \n   & Wealth Management \n \n \n & Institutional \n \n \n   & other \n \n \n Group \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Income statement   \n \n \n \n \n \n \n \n Net interest income \n \n \n 1,593 \n \n \n 202 \n \n \n 1,644 \n \n \n 2 \n \n \n 3,441 \n \n \n \n \n Own credit adjustments \n \n \n - \n \n \n - \n \n \n (2) \n \n \n - \n \n \n (2) \n \n \n \n \n Other non-interest income \n \n \n 106 \n \n \n 106 \n \n \n 670 \n \n \n 3 \n \n \n 885 \n \n \n \n \n Total income   \n \n \n 1,699 \n \n \n 308 \n \n \n 2,312 \n \n \n 5 \n \n \n 4,324 \n \n \n \n \n Direct expenses \n \n \n (231) \n \n \n (67) \n \n \n (441) \n \n \n (1,472) \n \n \n (2,211) \n \n \n \n \n Indirect expenses \n \n \n (568) \n \n \n (128) \n \n \n (784) \n \n \n 1,480 \n \n \n - \n \n \n \n \n Other operating expenses \n \n \n (799) \n \n \n (195) \n \n \n (1,225) \n \n \n 8 \n \n \n (2,211) \n \n \n \n \n Litigation and conduct costs \n \n \n - \n \n \n - \n \n \n (29) \n \n \n (8) \n \n \n (37) \n \n \n \n \n Operating expenses \n \n \n (799) \n \n \n (195) \n \n \n (1,254) \n \n \n - \n \n \n (2,248) \n \n \n \n \n Operating profit before impairment losses/releases \n \n \n 900 \n \n \n 113 \n \n \n 1,058 \n \n \n 5 \n \n \n 2,076 \n \n \n \n \n Impairment (losses)/releases \n \n \n (114) \n \n \n (6) \n \n \n (19) \n \n \n 3 \n \n \n (136) \n \n \n \n \n Operating profit \n \n \n 786 \n \n \n 107 \n \n \n 1,039 \n \n \n 8 \n \n \n 1,940 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total income excluding notable items   (1) \n \n \n 1,699 \n \n \n 308 \n \n \n 2,263 \n \n \n 2 \n \n \n 4,272 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Additional information \n \n \n \n \n \n \n \n Return on Tangible Equity   (1) \n \n \n na \n \n \n na \n \n \n na \n \n \n na \n \n \n 18.3% \n \n \n \n \n Return on equity   (1) \n \n \n 24.6% \n \n \n 23.6% \n \n \n 19.4% \n \n \n nm \n \n \n na \n \n \n \n \n Cost:income ratio (excl. litigation and conduct)   (1) \n \n \n 47.0% \n \n \n 63.3% \n \n \n 53.0% \n \n \n nm \n \n \n 51.1% \n \n \n \n \n Total assets (£bn) \n \n \n 240.3 \n \n \n 30.5 \n \n \n 391.9 \n \n \n 51.9 \n \n \n 714.6 \n \n \n \n \n Funded assets (£bn)   (1) \n \n \n 240.3 \n \n \n 30.5 \n \n \n 331.4 \n \n \n 51.6 \n \n \n 653.8 \n \n \n \n \n Net loans to customers - amortised cost (£bn) \n \n \n 216.1 \n \n \n 18.9 \n \n \n 154.2 \n \n \n 29.7 \n \n \n 418.9 \n \n \n \n \n Loan impairment rate   (1) \n \n \n 21bps \n \n \n 13bps \n \n \n 5bps \n \n \n nm \n \n \n 13bps \n \n \n \n \n Impairment provisions (£bn) \n \n \n (1.8) \n \n \n (0.1) \n \n \n (1.7) \n \n \n - \n \n \n (3.6) \n \n \n \n \n Impairment provisions - Stage 3 (£bn) \n \n \n (1.1) \n \n \n (0.1) \n \n \n (1.0) \n \n \n - \n \n \n (2.2) \n \n \n \n \n Customer deposits (£bn) \n \n \n 202.6 \n \n \n 42.7 \n \n \n 196.4 \n \n \n 1.3 \n \n \n 443.0 \n \n \n \n \n Risk-weighted assets (RWAs) (£bn) \n \n \n 68.5 \n \n \n 11.4 \n \n \n 111.9 \n \n \n 1.5 \n \n \n 193.3 \n \n \n \n \n Total customer assets and liabilities (CAL)   (1) \n \n \n 420.5 \n \n \n 119.0 \n \n \n 352.2 \n \n \n na \n \n \n 891.7 \n \n \n \n \n RWA equivalent (RWAe) (£bn) \n \n \n 69.7 \n \n \n 11.4 \n \n \n 112.9 \n \n \n 1.7 \n \n \n 195.7 \n \n \n \n \n Employee numbers (FTEs - thousands) \n \n \n 11.5 \n \n \n 2.1 \n \n \n 12.3 \n \n \n 32.8 \n \n \n 58.7 \n \n \n \n \n Third party customer asset rate   (1) \n \n \n 4.42% \n \n \n 4.66% \n \n \n 5.69% \n \n \n nm \n \n \n nm \n \n \n \n \n Third party customer funding rate   (1) \n \n \n (1.63%) \n \n \n (2.47%) \n \n \n (1.41%) \n \n \n nm \n \n \n nm \n \n \n \n \n Average interest earning assets (£bn)   (1) \n \n \n 234.1 \n \n \n 29.5 \n \n \n 266.4 \n \n \n na \n \n \n 557.2 \n \n \n \n \n Net interest margin   (1) \n \n \n 2.70% \n \n \n 2.72% \n \n \n 2.45% \n \n \n na \n \n \n 2.45% \n \n \n \n \n nm = not meaningful, na = not applicable \n (1)     Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. \n \n \n   \n Segment performance continued \n \n \n \n \n   \n \n \n Quarter ended 31 March 2025 \n \n \n \n \n \n \n \n Retail \n \n \n Private Banking   \n \n \n Commercial   \n \n \n Central items \n \n \n Total NatWest \n \n \n \n \n \n \n \n Banking \n \n \n   & Wealth Management \n \n \n & Institutional \n \n \n   & other \n \n \n Group \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Income statement   \n \n \n \n \n \n \n \n Net interest income \n \n \n 1,438 \n \n \n 181 \n \n \n 1,459 \n \n \n (52) \n \n \n 3,026 \n \n \n \n \n Own credit adjustments \n \n \n - \n \n \n - \n \n \n 6 \n \n \n - \n \n \n 6 \n \n \n \n \n Other non-interest income \n \n \n 102 \n \n \n 84 \n \n \n 677 \n \n \n 85 \n \n \n 948 \n \n \n \n \n Total income   \n \n \n 1,540 \n \n \n 265 \n \n \n 2,142 \n \n \n 33 \n \n \n 3,980 \n \n \n \n \n Direct expenses \n \n \n (166) \n \n \n (59) \n \n \n (379) \n \n \n (1,331) \n \n \n (1,935) \n \n \n \n \n Indirect expenses \n \n \n (511) \n \n \n (128) \n \n \n (636) \n \n \n 1,275 \n \n \n - \n \n \n \n \n Other operating expenses \n \n \n (677) \n \n \n (187) \n \n \n (1,015) \n \n \n (56) \n \n \n (1,935) \n \n \n \n \n Litigation and conduct costs \n \n \n (4) \n \n \n - \n \n \n (29) \n \n \n (11) \n \n \n (44) \n \n \n \n \n Operating expenses \n \n \n (681) \n \n \n (187) \n \n \n (1,044) \n \n \n (67) \n \n \n (1,979) \n \n \n \n \n Operating profit/(loss) before impairment losses \n \n \n 859 \n \n \n 78 \n \n \n 1,098 \n \n \n (34) \n \n \n 2,001 \n \n \n \n \n Impairment losses \n \n \n (109) \n \n \n (1) \n \n \n (78) \n \n \n (1) \n \n \n (189) \n \n \n \n \n Operating profit/(loss) \n \n \n 750 \n \n \n 77 \n \n \n 1,020 \n \n \n (35) \n \n \n 1,812 \n \n \n \n \n \n \n \n \n \n \n \n \n Total income excluding notable items   (1) \n \n \n 1,540 \n \n \n 265 \n \n \n 2,136 \n \n \n 11 \n \n \n 3,952 \n \n \n \n \n \n \n \n \n \n \n \n \n Additional information \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Return on Tangible Equity   (1) \n \n \n na \n \n \n na \n \n \n na \n \n \n na \n \n \n 18.5% \n \n \n \n \n Return on equity   (1) \n \n \n 24.5% \n \n \n 17.1% \n \n \n 19.3% \n \n \n nm \n \n \n na \n \n \n \n \n Cost:income ratio (excl. litigation and conduct)   (1) \n \n \n 44.0% \n \n \n 70.6% \n \n \n 47.4% \n \n \n nm \n \n \n 48.6% \n \n \n \n \n Total assets (£bn) \n \n \n 234.3 \n \n \n 28.9 \n \n \n 397.9 \n \n \n 48.9 \n \n \n 710.0 \n \n \n \n \n Funded assets (£bn)   (1) \n \n \n 234.3 \n \n \n 28.9 \n \n \n 336.1 \n \n \n 47.9 \n \n \n 647.2 \n \n \n \n \n Net loans to customers - amortised cost (£bn) \n \n \n 210.4 \n \n \n 18.4 \n \n \n 143.1 \n \n \n 26.9 \n \n \n 398.8 \n \n \n \n \n Loan impairment rate   (1) \n \n \n 21bps \n \n \n 2bps \n \n \n 22bps \n \n \n nm \n \n \n 19bps \n \n \n \n \n Impairment provisions (£bn) \n \n \n (1.9) \n \n \n (0.1) \n \n \n (1.5) \n \n \n - \n \n \n (3.5) \n \n \n \n \n Impairment provisions - Stage 3 (£bn) \n \n \n (1.1) \n \n \n - \n \n \n (1.0) \n \n \n - \n \n \n (2.1) \n \n \n \n \n Customer deposits (£bn) \n \n \n 195.7 \n \n \n 41.2 \n \n \n 196.5 \n \n \n 1.2 \n \n \n 434.6 \n \n \n \n \n Risk-weighted assets (RWAs) (£bn) \n \n \n 66.8 \n \n \n 11.3 \n \n \n 107.3 \n \n \n 1.6 \n \n \n 187.0 \n \n \n \n \n Total customer assets and liabilities (CAL)   (1) \n \n \n 407.9 \n \n \n 107.0 \n \n \n 341.1 \n \n \n na \n \n \n 856.0 \n \n \n \n \n RWA equivalent (RWAe) (£bn) \n \n \n 67.6 \n \n \n 11.3 \n \n \n 108.5 \n \n \n 2.1 \n \n \n 189.5 \n \n \n \n \n Employee numbers (FTEs - thousands) \n \n \n 11.9 \n \n \n 2.2 \n \n \n 12.8 \n \n \n 32.5 \n \n \n 59.4 \n \n \n \n \n Third party customer asset rate   (1) \n \n \n 4.29% \n \n \n 4.83% \n \n \n 6.24% \n \n \n nm \n \n \n nm \n \n \n \n \n Third party customer funding rate   (1) \n \n \n (1.87%) \n \n \n (2.90%) \n \n \n (1.71%) \n \n \n nm \n \n \n nm \n \n \n \n \n Average interest earning assets (£bn)   (1) \n \n \n 226.5 \n \n \n 28.4 \n \n \n 255.2 \n \n \n na \n \n \n 541.6 \n \n \n \n \n Net interest margin   (1) \n \n \n 2.58% \n \n \n 2.59% \n \n \n 2.32% \n \n \n na \n \n \n 2.27% \n \n \n \n \n   \n nm = not meaningful, na = not applicable \n (1)     Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics. \n \n \n \n \n \n Capital and risk management \n Capital, liquidity and funding risk \n Introduction \n NatWest Group takes a comprehensive approach to the management of capital, liquidity and funding, underpinned by frameworks, risk appetite and policies, to manage and mitigate capital, liquidity and funding risks. The framework ensures the tools and capability are in place to facilitate the management and mitigation of risk ensuring that NatWest Group operates within its regulatory requirements and risk appetite. \n \n \n \n   Key developments since 31 December 2025 \n \n \n \n \n CET1 ratio \n 14.3% \n (2025 - 14.0%) \n \n \n The CET1 ratio increased by 30 basis points to 14.3% due to a £0.9 billion increase in CET1 capital partially offset by a £2.7 billion increase in RWAs. \n The CET1 capital increase was mainly driven by an attributable profit to ordinary shareholders of £1.4 billion and other movements on reserves and regulatory adjustments of £0.2 billion partially offset by a foreseeable ordinary dividend accrual of £0.7 billion. \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n RWAs \n £196.0bn \n (2025 - £193.3bn) \n \n \n Total RWAs increased by £2.7 billion to £196.0 billion reflecting: \n ·     a net increase in credit risk RWAs of £1.8 billion, mainly driven by franchise lending growth with a further increase driven by risk parameters and foreign exchange. These movements were partially offset by the benefit of RWA management actions; \n ·     an increase in market risk RWAs of £0.6 billion, chiefly driven by SVaR and the incremental risk charge; \n ·     an increase in counterparty credit risk RWAs of £0.3 billion, primarily due to updating illiquid collateral eligibility in securities financing transactions, partially offset by over-the-counter trades. \n   \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n UK leverage ratio \n 4.8% \n (2025 - 4.8%) \n \n \n The leverage ratio remained static at 4.8% due to a £0.9 billion increase in Tier 1 capital offset by an £18.7 billion increase in leverage exposure. The key drivers of the leverage exposure movement were an increase in trading assets and other financial assets partially offset by a decrease in other off balance sheet items. \n \n \n   \n \n \n \n \n MREL ratio \n 31.9% \n (2025 - 31.9%) \n \n \n The Minimum Requirements of own funds and Eligible Liabilities (MREL) ratio remained static at 31.9% driven by a £0.9 billion increase in MREL partially offset by a £2.7 billion increase in RWAs. \n MREL increased to £62.5 billion driven by a £0.9 billion increase in CET1 capital, a £0.5 billion increase in Tier 2 capital, and a £0.6 billion decrease in senior unsecured debt. The Tier 2 movement includes an increase of £0.6 billion for a $0.8 billion 5.908% Fixed-to-Fixed Reset Rate Subordinated Tier 2 Note issued in March 2026. The senior unsecured debt movement includes the redemption of a $1.0 billion 5.847% Senior Callable Fixed-to-Fixed Reset Rate Note and £0.5 billion 3.125% Senior Callable Fixed-to-Fixed Reset Note in March 2026 offset by a €0.8 billion Fixed-to-Floating Senior Unsecured Note due 2037 issued in February 2026. \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Liquidity portfolio \n £233.4bn \n (2025 - £237.9bn) \n \n \n The liquidity portfolio decreased by £4.5 billion to £233.4 billion compared with Q4 2025. Primary liquidity decreased by £1.6 billion to £155.7 billion, driven by higher lending and Treasury maturities partly offset by issuance and increased deposits. Secondary liquidity decreased by £3.0 billion due to reduced pre-positioned collateral at the Bank of England. \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n LCR average \n 144% \n (2025 - 147%) \n \n \n The average Liquidity Coverage Ratio (LCR) decreased by 3% to 144% during Q1 2026, due to higher lending offset by higher deposits and issuance, and changes in outflow assumptions. \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n NSFR average \n 134% \n (2025 - 135%) \n \n \n The average Net Stable Funding Ratio (NSFR) decreased by 1% to 134% during Q1 2026 driven by increased lending partly offset by increased deposits. \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Capital and risk management continued \n Capital, liquidity and funding risk continued \n Maximum Distributable Amount (MDA) and Minimum Capital Requirements \n NatWest Group is subject to minimum capital requirements relative to RWAs. The table below summarises the minimum capital requirements (the sum of Pillar 1 and Pillar 2A), and the additional capital buffers which are held in excess of the regulatory minimum requirements and are usable in stress. \n Where the CET1 ratio falls below the sum of the minimum capital and the combined buffer requirement, there is a subsequent automatic restriction on the amount available to service discretionary payments (including AT1 coupons), known as the MDA. Note that different capital requirements apply to individual legal entities or sub-groups and that the table shown does not reflect any incremental PRA buffer requirements, which are not disclosable. \n The current capital position provides significant headroom above both NatWest Group's minimum requirements and its MDA threshold requirements. \n \n \n \n \n Type \n \n \n CET1 \n \n \n Total Tier 1   \n \n \n Total capital \n \n \n \n \n Pillar 1 requirements \n \n \n 4.5% \n \n \n 6.0% \n \n \n 8.0% \n \n \n \n \n Pillar 2A requirements \n \n \n 1.6% \n \n \n 2.2% \n \n \n 2.9% \n \n \n \n \n Minimum Capital Requirements \n \n \n 6.1% \n \n \n 8.2% \n \n \n 10.9% \n \n \n \n \n Capital conservation buffer \n \n \n 2.5% \n \n \n 2.5% \n \n \n 2.5% \n \n \n \n \n Countercyclical capital buffer   (1)   \n \n \n 1.7% \n \n \n 1.7% \n \n \n 1.7% \n \n \n \n \n MDA threshold   (2) \n \n \n 10.3% \n \n \n n/a \n \n \n n/a \n \n \n \n \n Overall capital requirement   \n \n \n 10.3% \n \n \n 12.4% \n \n \n 15.1% \n \n \n \n \n Capital ratios at 31 March 2026 \n \n \n 14.3% \n \n \n 16.6% \n \n \n 19.8% \n \n \n \n \n Headroom   (3,4)   \n \n \n 4.0% \n \n \n 4.2% \n \n \n 4.7% \n \n \n \n \n (1)     The UK countercyclical buffer (CCyB) rate is currently being maintained at 2%. This may vary in either direction in the future subject to how risks develop. Foreign exposures may be subject to different CCyB rates depending on the rate set in those jurisdictions. \n (2)     Pillar 2A requirements for NatWest Group are set as a variable amount with the exception of some fixed add-ons. \n (3)     The headroom does not reflect excess distributable capital and may vary over time. \n (4)     Headroom as at 31 December 2025 was CET1 3.7%, Total Tier 1 4.0% and Total Capital 4.2%. \n Leverage ratios \n The table below summarises the minimum ratios of capital to leverage exposure under the binding PRA UK leverage framework applicable for NatWest Group. \n \n \n \n \n Type \n \n \n CET1 \n \n \n Total Tier 1 \n \n \n \n \n Minimum ratio \n \n \n 2.44% \n \n \n 3.25% \n \n \n \n \n Countercyclical leverage ratio buffer   (1) \n \n \n 0.6% \n \n \n 0.6% \n \n \n \n \n Total \n \n \n 3.04% \n \n \n 3.85% \n \n \n \n \n (1)     The countercyclical leverage ratio buffer is set at 35% of NatWest Group's CCyB. \n Liquidity and funding ratios \n The table below summarises the minimum requirements for key liquidity and funding metrics under the PRA framework. \n \n \n \n \n Type \n \n \n \n \n \n \n \n Liquidity Coverage Ratio (LCR) \n \n \n 100% \n \n \n \n \n Net Stable Funding Ratio (NSFR) \n \n \n 100% \n \n \n \n \n \n \n \n Capital and risk management continued \n Capital, liquidity and funding risk continued \n Capital and leverage ratios \n The tables below show key prudential metrics calculated in accordance with current PRA rules. \n \n \n \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n Capital adequacy ratios \n \n \n % \n \n \n % \n \n \n \n \n CET1 \n \n \n 14.3 \n \n \n 14.0 \n \n \n \n \n Tier 1 \n \n \n 16.6 \n \n \n 16.4 \n \n \n \n \n Total \n \n \n 19.8 \n \n \n 19.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Capital \n \n \n £m \n \n \n £m \n \n \n \n \n Tangible equity \n \n \n 31,860 \n \n \n 30,736 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Expected loss less impairment \n \n \n - \n \n \n (89) \n \n \n \n \n Prudential valuation adjustment \n \n \n (185) \n \n \n (167) \n \n \n \n \n Deferred tax assets \n \n \n (775) \n \n \n (804) \n \n \n \n \n Own credit adjustments \n \n \n 28 \n \n \n 42 \n \n \n \n \n Pension fund assets \n \n \n (188) \n \n \n (187) \n \n \n \n \n Cash flow hedging reserve \n \n \n 878 \n \n \n 752 \n \n \n \n \n Foreseeable ordinary dividends \n \n \n (2,553) \n \n \n (1,837) \n \n \n \n \n Adjustment for trust assets   (1) \n \n \n (365) \n \n \n (365) \n \n \n \n \n Foreseeable charges   (2) \n \n \n (608) \n \n \n (921) \n \n \n \n \n Other adjustments for regulatory purposes \n \n \n (96) \n \n \n (94) \n \n \n \n \n Total regulatory adjustments \n \n \n (3,864) \n \n \n (3,670) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n CET1 capital \n \n \n 27,996 \n \n \n 27,066 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Additional AT1 capital \n \n \n 4,571 \n \n \n 4,555 \n \n \n \n \n Tier 1 capital \n \n \n 32,567 \n \n \n 31,621 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Tier 2 capital \n \n \n 6,283 \n \n \n 5,754 \n \n \n \n \n Total regulatory capital \n \n \n 38,850 \n \n \n 37,375 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Risk-weighted assets \n \n \n   \n \n \n \n \n \n \n \n Credit risk \n \n \n 157,427 \n \n \n 155,610 \n \n \n \n \n Counterparty credit risk \n \n \n 7,909 \n \n \n 7,609 \n \n \n \n \n Market risk \n \n \n 5,079 \n \n \n 4,474 \n \n \n \n \n Operational risk \n \n \n 25,595 \n \n \n 25,595 \n \n \n \n \n Total RWAs \n \n \n 196,010 \n \n \n 193,288 \n \n \n \n \n   \n (1)     Prudent deduction in respect of agreement with the pension fund to establish legal structure to remove dividend-linked contribution. \n (2)     The foreseeable charges of £608 million relates to share buybacks (31 December 2025 - £921 million). \n \n   \n \n \n \n \n   \n \n \n 31 March \n \n \n 31 December \n \n \n \n \n   \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n Leverage \n \n \n £m \n \n \n £m \n \n \n \n \n Cash and balances at central banks \n \n \n 78,966 \n \n \n 85,182 \n \n \n \n \n Trading assets \n \n \n 56,817 \n \n \n 46,537 \n \n \n \n \n Derivatives \n \n \n 66,408 \n \n \n 60,789 \n \n \n \n \n Financial assets \n \n \n 523,567 \n \n \n 505,609 \n \n \n \n \n Other assets \n \n \n 23,883 \n \n \n 16,436 \n \n \n \n \n Total assets \n \n \n 749,641 \n \n \n 714,553 \n \n \n \n \n Derivatives \n \n \n   \n \n \n \n \n \n \n \n    - netting and variation margin \n \n \n (63,035) \n \n \n (58,769) \n \n \n \n \n    - potential future exposures \n \n \n 18,907 \n \n \n 18,155 \n \n \n \n \n Securities financing transactions gross up \n \n \n 1,808 \n \n \n 2,593 \n \n \n \n \n Other off balance sheet items \n \n \n 59,842 \n \n \n 70,909 \n \n \n \n \n Regulatory deductions and other adjustments \n \n \n (17,017) \n \n \n (9,699) \n \n \n \n \n Claims on central banks \n \n \n (75,548) \n \n \n (81,616) \n \n \n \n \n Exclusion of bounce back loans \n \n \n (925) \n \n \n (1,172) \n \n \n \n \n UK leverage exposure   \n \n \n 673,673 \n \n \n 654,954 \n \n \n \n \n UK leverage ratio (%) \n \n \n 4.8 \n \n \n 4.8 \n \n \n \n \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n \n \n \n Capital and risk management continued \n Capital, liquidity and funding risk continued \n Capital flow statement \n The table below analyses the movement in CET1, AT1 and Tier 2 capital for the three months ended 31 March 2026. \n \n \n \n \n \n \n \n CET1 \n \n \n AT1 \n \n \n Tier 2 \n \n \n Total \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n At 31 December 2025 \n \n \n 27,066 \n \n \n 4,555 \n \n \n 5,754 \n \n \n 37,375 \n \n \n \n \n Attributable profit for the period \n \n \n 1,432 \n \n \n - \n \n \n - \n \n \n 1,432 \n \n \n \n \n Foreseeable ordinary dividends   \n \n \n (716) \n \n \n - \n \n \n - \n \n \n (716) \n \n \n \n \n Foreign exchange reserve \n \n \n (87) \n \n \n - \n \n \n - \n \n \n (87) \n \n \n \n \n FVOCI reserve \n \n \n 28 \n \n \n - \n \n \n - \n \n \n 28 \n \n \n \n \n Own credit \n \n \n (14) \n \n \n - \n \n \n - \n \n \n (14) \n \n \n \n \n Share-based remuneration and shares vested under employee share schemes \n \n \n 102 \n \n \n - \n \n \n - \n \n \n 102 \n \n \n \n \n Goodwill and intangibles deduction \n \n \n 66 \n \n \n - \n \n \n - \n \n \n 66 \n \n \n \n \n Deferred tax assets \n \n \n 29 \n \n \n - \n \n \n - \n \n \n 29 \n \n \n \n \n Prudential valuation adjustments \n \n \n (18) \n \n \n - \n \n \n - \n \n \n (18) \n \n \n \n \n New issues of capital instruments \n \n \n - \n \n \n - \n \n \n 553 \n \n \n 553 \n \n \n \n \n Other capital instrument movements   (1) \n \n \n - \n \n \n 16 \n \n \n (53) \n \n \n (37) \n \n \n \n \n Expected loss less impairment \n \n \n 89 \n \n \n - \n \n \n - \n \n \n 89 \n \n \n \n \n Other movements \n \n \n 19 \n \n \n - \n \n \n 29 \n \n \n 48 \n \n \n \n \n At 31 March 2026 \n \n \n 27,996 \n \n \n 4,571 \n \n \n 6,283 \n \n \n 38,850 \n \n \n \n \n (1)     Other capital instrument movements include foreign exchange movements, accrued interest and fair value adjustments to capital instruments. \n   \n ·     For CET1 movements refer to the key points on page 14. \n ·     Tier 2 movements of £0.5 billion include an increase of £0.6 billion for a $0.8 billion 5.908% Fixed-to-Fixed Reset Rate Subordinated Tier 2 Note issued in March 2026. \n ·     Within other movements for Tier 2 capital, there is an increase as a result of excess IRB provisions over expected losses in the period. \n   \n Capital generation pre-distributions \n \n \n \n \n \n \n \n 31 March \n \n \n 31 December \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n CET1   \n \n \n 27,996 \n \n \n 27,066 \n \n \n \n \n CET1 capital pre-distributions   (1) \n \n \n 28,712 \n \n \n 31,171 \n \n \n \n \n RWAs   \n \n \n 196,010 \n \n \n 193,288 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n CET1 ratio (%) - opening at 1 January \n \n \n 14.00 \n \n \n 13.61 \n \n \n \n \n CET1 ratio pre-distributions (%) - closing \n \n \n 14.65 \n \n \n 16.13 \n \n \n \n \n Capital generation pre-distributions (%)   (1) \n \n \n 0.65 \n \n \n 2.52 \n \n \n \n \n (1)     The calculation of capital generation pre-distributions uses CET1 capital pre-distributions. Distributions include ordinary dividends paid, foreseeable ordinary dividends and share buybacks. \n \n \n \n Capital and risk management continued \n Capital, liquidity and funding risk continued \n Risk-weighted assets \n The table below analyses the movement in RWAs for the quarter ended 31 March 2026, by key drivers. \n \n \n \n \n \n \n \n   \n \n \n Counterparty \n \n \n   \n \n \n Operational \n \n \n   \n \n \n \n \n \n \n \n Credit risk \n \n \n credit risk \n \n \n Market risk \n \n \n risk \n \n \n Total   \n \n \n \n \n \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n \n \n At 31 December 2025 \n \n \n 155.6 \n \n \n 7.6 \n \n \n 4.5 \n \n \n 25.6 \n \n \n 193.3 \n \n \n \n \n Foreign exchange movement \n \n \n 0.2 \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.2 \n \n \n \n \n Business movement \n \n \n 1.3 \n \n \n 0.2 \n \n \n 0.6 \n \n \n - \n \n \n 2.1 \n \n \n \n \n Risk parameter changes \n \n \n 0.3 \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.3 \n \n \n \n \n Model updates \n \n \n - \n \n \n 0.1 \n \n \n - \n \n \n - \n \n \n 0.1 \n \n \n \n \n At 31 March 2026 \n \n \n 157.4 \n \n \n 7.9 \n \n \n 5.1 \n \n \n 25.6 \n \n \n 196.0 \n \n \n \n \n   \n The table below analyses segmental RWAs. \n \n \n \n \n \n \n \n   \n \n \n Private Banking \n \n \n   \n \n \n   \n \n \n Total   \n \n \n \n \n \n \n \n Retail \n \n \n   & Wealth \n \n \n Commercial   \n \n \n Central items   \n \n \n NatWest \n \n \n \n \n \n \n \n Banking \n \n \n Management \n \n \n & Institutional   \n \n \n & other \n \n \n Group \n \n \n \n \n Total RWAs \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n £bn \n \n \n \n \n At 31 December 2025 \n \n \n 68.5 \n \n \n 11.4 \n \n \n 111.9 \n \n \n 1.5 \n \n \n 193.3 \n \n \n \n \n Foreign exchange movement \n \n \n - \n \n \n - \n \n \n 0.2 \n \n \n - \n \n \n 0.2 \n \n \n \n \n Business movement \n \n \n 0.7 \n \n \n - \n \n \n 1.5 \n \n \n (0.1) \n \n \n 2.1 \n \n \n \n \n Risk parameter changes   \n \n \n 0.1 \n \n \n - \n \n \n 0.2 \n \n \n - \n \n \n 0.3 \n \n \n \n \n Model updates \n \n \n 0.9 \n \n \n - \n \n \n (0.8) \n \n \n - \n \n \n 0.1 \n \n \n \n \n At 31 March 2026 \n \n \n 70.2 \n \n \n 11.4 \n \n \n 113.0 \n \n \n 1.4 \n \n \n 196.0 \n \n \n \n \n \n \n \n   \n \n \n \n \n Credit risk \n \n \n 60.8 \n \n \n 9.7 \n \n \n 85.5 \n \n \n 1.4 \n \n \n 157.4 \n \n \n \n \n Counterparty credit risk \n \n \n 0.2 \n \n \n - \n \n \n 7.7 \n \n \n - \n \n \n 7.9 \n \n \n \n \n Market risk \n \n \n 0.1 \n \n \n - \n \n \n 5.0 \n \n \n - \n \n \n 5.1 \n \n \n \n \n Operational risk \n \n \n 9.1 \n \n \n 1.7 \n \n \n 14.8 \n \n \n - \n \n \n 25.6 \n \n \n \n \n Total RWAs \n \n \n 70.2 \n \n \n 11.4 \n \n \n 113.0 \n \n \n 1.4 \n \n \n 196.0 \n \n \n \n \n \n \n \n \n \n Total RWAs increased by £2.7 billion to £196.0 billion during the period mainly reflecting: \n ·     An increase in risk-weighted assets from foreign exchange movements of £0.2 billion, primarily due to sterling depreciation versus the US dollar and appreciation versus euro. \n ·     An increase in business movements of £2.1 billion, primarily driven by credit risk reflecting franchise lending growth, partially offset by the benefit of RWA management actions. A further increase was driven by market risk, due to SVaR and the incremental risk charge. An increase in counterparty credit risk was primarily due to updating illiquid collateral eligibility in securities financing transactions, partially offset by over-the-counter trades. \n ·     An increase in risk parameters of £0.3 billion driven by movements in risk metrics within Commercial & Institutional and Retail Banking. \n ·     An increase in model updates of £0.1 billion driven by CRDIV model updates in Retail Banking partially offset by CRDIV model benefits in Commercial & Institutional. \n   \n \n \n \n Capital and risk management continued \n Capital, liquidity and funding risk continued \n Liquidity portfolio \n The table below shows the composition of the liquidity portfolio with primary liquidity aligned to high-quality liquid assets on a regulatory LCR basis. Secondary liquidity comprises of assets which are eligible as collateral for local central bank liquidity facilities and do not form part of the LCR eligible high-quality liquid assets. High-quality liquid assets cover both Pillar 1 and Pillar 2 risks. \n \n \n \n \n \n \n \n Liquidity value \n \n \n \n \n \n \n \n 31 March 2026 \n \n \n   \n \n \n 31 December 2025 \n \n \n   \n \n \n \n \n \n \n \n NatWest \n \n \n NWH \n \n \n UK DoL \n \n \n   \n \n \n NatWest \n \n \n NWH \n \n \n UK DoL \n \n \n   \n \n \n \n \n \n \n \n Group (1) \n \n \n Group (2) \n \n \n Sub \n \n \n   \n \n \n Group (1) \n \n \n Group (2) \n \n \n Sub   \n \n \n   \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n \n \n Cash and balances at central banks   \n \n \n   74,868 \n \n \n   42,090 \n \n \n   41,408 \n \n \n   \n \n \n   81,107 \n \n \n   52,307 \n \n \n   51,640 \n \n \n   \n \n \n \n \n High quality government/MDB/PSE and GSE bonds   (3) \n \n \n   67,464 \n \n \n   49,714 \n \n \n   49,714 \n \n \n   \n \n \n   61,438 \n \n \n   42,214 \n \n \n   42,214 \n \n \n   \n \n \n \n \n Extremely high-quality covered bonds \n \n \n   4,404 \n \n \n   4,404 \n \n \n   4,404 \n \n \n   \n \n \n   4,415 \n \n \n   4,414 \n \n \n   4,414 \n \n \n   \n \n \n \n \n LCR level 1 assets \n \n \n   146,736 \n \n \n   96,208 \n \n \n   95,526 \n \n \n   \n \n \n   146,960 \n \n \n   98,935 \n \n \n   98,268 \n \n \n   \n \n \n \n \n LCR level 2 Eligible Assets   (4) \n \n \n   8,991 \n \n \n   8,168 \n \n \n   8,168 \n \n \n   \n \n \n   10,325 \n \n \n   9,466 \n \n \n   9,466 \n \n \n   \n \n \n \n \n Primary liquidity (HQLA)   (5) \n \n \n   155,727 \n \n \n   104,376 \n \n \n   103,694 \n \n \n   \n \n \n   157,285 \n \n \n   108,401 \n \n \n   107,734 \n \n \n   \n \n \n \n \n Secondary liquidity \n \n \n   77,647 \n \n \n   77,647 \n \n \n   77,647 \n \n \n   \n \n \n   80,647 \n \n \n   80,647 \n \n \n   80,647 \n \n \n   \n \n \n \n \n Total liquidity value \n \n \n   233,374 \n \n \n   182,023 \n \n \n   181,341 \n \n \n   \n \n \n   237,932 \n \n \n   189,048 \n \n \n   188,381 \n \n \n   \n \n \n \n \n (1)     NatWest Group includes the UK Domestic Liquidity Sub-Group (UK DoLSub), NatWest Markets Plc and other significant operating subsidiaries that hold liquidity portfolios. These include RBSI Ltd and NWM N.V. who hold managed portfolios that comply with local regulations that may differ from PRA rules. \n (2)     NWH Group comprises UK DoLSub and NatWest Bank Europe GmbH who hold managed portfolios that comply with local regulations that may differ from PRA rules. \n (3)     Multilateral development bank abbreviated to MDB, public sector entities abbreviated to PSE and government sponsored entities abbreviated to GSE. \n (4)     Includes Level 2A and Level 2B. \n (5)     High-quality liquid assets abbreviated to HQLA. \n \n \n \n \n \n Capital and risk management continued \n Credit risk \n Economic drivers \n Introduction \n The portfolio segmentation and selection of economic drivers for IFRS 9 follows the approach used in stress testing. The stress models for each portfolio segment (defined by product or asset class and where relevant, industry sector and region) are based on a selected, small number of economic variables that best explain the movements in portfolio loss rates. The process to select economic drivers uses empirical analysis and expert judgement. \n The most significant economic drivers for material portfolios are shown in the table below: \n \n \n \n \n Portfolio \n \n \n Economic drivers \n \n \n \n \n Personal mortgages \n \n \n Unemployment rate, sterling swap rate, house price index, real wage \n \n \n \n \n Personal unsecured \n \n \n Unemployment rate, sterling swap rate, real wage \n \n \n \n \n Corporates \n \n \n Stock price index, gross domestic product (GDP) \n \n \n \n \n Commercial real estate \n \n \n Stock price index, commercial property price index, GDP \n \n \n \n \n Economic scenarios \n At 31 March 2026, the range of anticipated future economic conditions was defined by a set of four internally developed scenarios and their respective probabilities. In addition to the base case, they comprised upside, downside and extreme downside scenarios. \n At 31 March 2026, the four scenarios were deemed appropriate in capturing the uncertainty in economic forecasts and the non-linearity in outcomes under different scenarios. These four scenarios were developed to provide sufficient coverage to current risks faced by the economy and consider varying outcomes across inflation, interest rate, the labour market, asset price and economic growth, around which there remains pronounced levels of uncertainty. \n Since 31 December 2025, the near-term economic growth outlook weakened, mainly due to rising energy prices following the Middle East conflict. To reflect the impact, changes have been made to the base case economic outlook. Inflation is likely to peak above 3.5%. Real incomes are expected to come under pressure, with economic growth slowing to 0.4%. \n \n   \n The unemployment rate is assumed to peak higher at 5.7%. Given the elevated risks of second round inflationary impacts, it is assumed that bank rates are paused at the current level. Asset prices show modest declines due to weaker growth and higher than anticipated interest rates. \n At 31 March 2026, the extreme downside scenario was updated to further incorporate physical and transition climate risks. \n \n \n \n \n High-level narrative - potential developments, vulnerabilities and risks \n \n \n \n \n \n \n \n Growth \n \n \n Outperformance - above trend growth as government support helps in consumer sentiment recovery \n \n \n Upside \n \n \n \n \n Modest - soft in 2026, close to trend pace afterwards \n \n \n Base case \n \n \n \n \n Stalling - cautious consumer and policy uncertainty weighs on activity \n \n \n Downside \n \n \n \n \n Extreme stress - extreme fall in GDP followed by a weak recovery \n \n \n Extreme downside \n \n \n \n \n Inflation \n \n \n Sticky - strong growth and/or wage policies keep services inflation above target in medium term \n \n \n Upside \n \n \n \n \n Reversal - ongoing progress against inflation halted, inflation rises to around 3.5% \n \n \n Base case \n \n \n \n \n Slow - swift fall to lower levels as demand shock dominates \n \n \n Downside \n \n \n \n \n Stagflation - crystallisation of physical risks, acceleration of transition policy, surging energy prices and second round impacts, leading to double digit inflation \n \n \n Extreme downside \n \n \n \n \n Labour market \n \n \n Recovery - job growth rebounds strongly, reversing much of the recent rise in unemployment rate \n \n \n Upside \n \n \n \n \n Cooling continues - gradual loosening continues into 2026, before improving \n \n \n Base case \n \n \n \n \n Job shedding - redundancies, reduced hours, building slack \n \n \n Downside \n \n \n \n \n Depression - unemployment hits levels close to previous peaks amid severe stress \n \n \n Extreme downside \n \n \n \n \n Rates \n short-term \n \n \n Cautious - higher growth and inflation keep the Monetary Policy Committee cautious \n \n \n Upside \n \n \n \n \n Pause - rate cutting cycle on pause given the risk of second round inflation impacts. \n \n \n Base case \n \n \n \n \n Supportive - sharp declines to support recovery \n \n \n Downside \n \n \n \n \n Sharp rise - sharp rates tightening in response to double digit inflation \n \n \n Extreme downside \n \n \n \n \n Rates \n long-term \n \n \n Above consensus - 4% \n \n \n Upside \n \n \n \n \n Flat - 3.75% \n \n \n Base case \n \n \n \n \n Low - 2% \n \n \n Downside \n \n \n \n \n High - 4% \n \n \n Extreme downside \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Capital and risk management continued \n Credit risk continued \n Economic drivers continued \n Main macroeconomic variables \n The main macroeconomic variables for each of the four scenarios used for expected credit loss (ECL) modelling are set out in the table below. \n \n \n \n \n   \n \n \n 2026 \n \n \n \n \n \n 2025 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n Extreme \n \n \n Weighted \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Extreme \n \n \n Weighted \n \n \n \n \n \n \n \n Upside \n \n \n Base case \n \n \n Downside \n \n \n downside \n \n \n average \n \n \n \n \n \n Upside \n \n \n Base case \n \n \n Downside \n \n \n downside \n \n \n average \n \n \n \n \n Five-year summary \n \n \n % \n \n \n % \n \n \n % \n \n \n % \n \n \n % \n \n \n \n \n \n % \n \n \n % \n \n \n % \n \n \n % \n \n \n % \n \n \n \n \n GDP \n \n \n 2.1 \n \n \n 1.1 \n \n \n 0.3 \n \n \n (0.4) \n \n \n 1.0 \n \n \n \n \n \n 2.1 \n \n \n 1.4 \n \n \n 0.5 \n \n \n 0.1 \n \n \n 1.2 \n \n \n \n \n Unemployment rate \n \n \n 4.3 \n \n \n 5.4 \n \n \n 6.0 \n \n \n 7.3 \n \n \n 5.5 \n \n \n \n \n \n 4.3 \n \n \n 5.1 \n \n \n 5.6 \n \n \n 7.0 \n \n \n 5.3 \n \n \n \n \n House price index \n \n \n 6.0 \n \n \n 1.2 \n \n \n (0.4) \n \n \n (4.2) \n \n \n 1.4 \n \n \n \n \n \n 5.7 \n \n \n 3.3 \n \n \n 0.6 \n \n \n (3.8) \n \n \n 2.6 \n \n \n \n \n Commercial real estate price \n \n \n 6.0 \n \n \n 0.4 \n \n \n (1.6) \n \n \n (5.3) \n \n \n 0.7 \n \n \n \n \n \n 6.1 \n \n \n 2.2 \n \n \n (0.3) \n \n \n (5.0) \n \n \n 1.9 \n \n \n \n \n Consumer price index \n \n \n 2.2 \n \n \n 2.3 \n \n \n 1.7 \n \n \n 4.3 \n \n \n 2.5 \n \n \n \n \n \n 2.6 \n \n \n 2.4 \n \n \n 2.4 \n \n \n 1.8 \n \n \n 2.3 \n \n \n \n \n Bank of England base rate \n \n \n 4.0 \n \n \n 3.8 \n \n \n 1.8 \n \n \n 5.4 \n \n \n 3.7 \n \n \n \n \n \n 4.0 \n \n \n 3.5 \n \n \n 2.6 \n \n \n 1.4 \n \n \n 3.2 \n \n \n \n \n Stock price index \n \n \n 5.8 \n \n \n 3.7 \n \n \n 3.5 \n \n \n (0.3) \n \n \n 3.6 \n \n \n \n \n \n 6.2 \n \n \n 4.8 \n \n \n 2.8 \n \n \n 1.1 \n \n \n 4.3 \n \n \n \n \n World GDP \n \n \n 3.7 \n \n \n 3.0 \n \n \n 2.5 \n \n \n 1.6 \n \n \n 2.9 \n \n \n \n \n \n 3.7 \n \n \n 3.1 \n \n \n 2.5 \n \n \n 2.2 \n \n \n 3.0 \n \n \n \n \n Probability weight \n \n \n 22.5 \n \n \n 45.0 \n \n \n 18.3 \n \n \n 14.2 \n \n \n   \n \n \n \n \n \n 22.4 \n \n \n 45.0 \n \n \n 19.5 \n \n \n 13.1 \n \n \n \n \n \n \n \n \n \n \n (1)     The five-year summary runs from 2026-2030 for 31 March 2026 and from 2025-2029 for 31 December 2025. \n (2)     The table shows compound annual growth rate (CAGR) for GDP, average levels for the unemployment rate and Bank of England base rate and Q4 to Q4 CAGR for other parameters. \n \n \n \n   \n Probability weightings of scenarios \n NatWest Group applies a quantitative approach for IFRS 9 multiple economic scenarios by selecting specific discrete scenarios that represent the range of risks in the economic outlook and assigning appropriate probability weights. \n The approach involves comparing GDP paths for NatWest Group's scenarios against a set of model simulations to determine the percentile in the distribution that aligns most closely with each scenario. \n The probability weight for the base case is determined first using judgement, while probability weights for the alternative scenarios are then assigned based on these percentiles scores. \n The assigned probability weights were judged to be aligned with the subjective assessment of balance of the risks in the economy. Given the balance of risks that the economies in which NatWest Group operates are exposed to, NatWest Group judges it appropriate that downside-biased scenarios have higher combined probability weights than the upside-biased scenario. Skew between the upside scenario and downside scenarios was broadly similar to that at 31 December 2025. Compared to 31 December 2025, the base case was assigned the same weight. The downside scenario had a lower weight, which was consistent with the severity of the scenario and changes to the broader suite. \n The extreme downside scenario had a higher weight which was deemed reasonable given the rising risk of stagflation. \n It presents good coverage to the range of outcomes assumed in the scenarios, including the potential for a robust recovery on the upside and exceptionally challenging outcomes on the downside. A 22.5% weighting was applied to the upside scenario, a 45.0% weighting applied to the base case scenario, an 18.3% weighting applied to the downside scenario and a 14.2% weighting applied to the extreme downside scenario. \n \n \n \n \n   \n Capital and risk management continued \n Credit risk continued \n Economic drivers continued \n Annual figures \n \n \n \n \n \n \n \n GDP - annual growth \n \n \n \n \n \n \n \n \n Consumer price index - four quarter change \n \n \n \n \n \n \n \n Upside % \n \n \n Base case % \n \n \n Downside % \n \n \n Extreme downside % \n \n \n Weighted average % \n \n \n   \n \n \n \n \n \n Upside % \n \n \n Base case % \n \n \n Downside % \n \n \n Extreme downside % \n \n \n Weighted average % \n \n \n \n \n 2026 \n \n \n 1.2 \n \n \n 0.4 \n \n \n (0.4) \n \n \n (1.0) \n \n \n 0.3 \n \n \n   \n \n \n 2026 \n \n \n 2.6 \n \n \n 3.5 \n \n \n 1.3 \n \n \n 9.0 \n \n \n 3.7 \n \n \n \n \n 2027 \n \n \n 3.2 \n \n \n 1.0 \n \n \n (1.6) \n \n \n (3.5) \n \n \n 0.4 \n \n \n   \n \n \n 2027 \n \n \n 2.4 \n \n \n 2.1 \n \n \n 1.4 \n \n \n 4.7 \n \n \n 2.4 \n \n \n \n \n 2028 \n \n \n 2.6 \n \n \n 1.5 \n \n \n 1.1 \n \n \n 0.6 \n \n \n 1.6 \n \n \n   \n \n \n 2028 \n \n \n 2.1 \n \n \n 2.0 \n \n \n 1.9 \n \n \n 3.7 \n \n \n 2.2 \n \n \n \n \n 2029 \n \n \n 1.7 \n \n \n 1.4 \n \n \n 1.3 \n \n \n 1.0 \n \n \n 1.4 \n \n \n   \n \n \n 2029 \n \n \n 1.9 \n \n \n 2.0 \n \n \n 2.0 \n \n \n 2.2 \n \n \n 2.0 \n \n \n \n \n 2030 \n \n \n 1.6 \n \n \n 1.4 \n \n \n 1.3 \n \n \n 1.0 \n \n \n 1.4 \n \n \n   \n \n \n 2030 \n \n \n 2.0 \n \n \n 2.0 \n \n \n 2.0 \n \n \n 2.0 \n \n \n 2.0 \n \n \n \n \n \n \n \n \n \n \n \n \n Unemployment rate - annual average \n \n \n   \n \n \n Bank of England base rate - annual average \n \n \n \n \n \n \n \n Upside % \n \n \n Base case % \n \n \n Downside % \n \n \n Extreme downside % \n \n \n Weighted average % \n \n \n   \n \n \n \n \n \n Upside % \n \n \n Base case % \n \n \n Downside % \n \n \n Extreme downside % \n \n \n Weighted average % \n \n \n \n \n 2026 \n \n \n 5.1 \n \n \n 5.5 \n \n \n 5.5 \n \n \n 5.7 \n \n \n 5.4 \n \n \n   \n \n \n 2026 \n \n \n 3.94 \n \n \n 3.75 \n \n \n 2.80 \n \n \n 5.25 \n \n \n 3.83 \n \n \n \n \n 2027 \n \n \n 4.2 \n \n \n 5.7 \n \n \n 6.2 \n \n \n 7.2 \n \n \n 5.6 \n \n \n   \n \n \n 2027 \n \n \n 4.00 \n \n \n 3.75 \n \n \n 1.52 \n \n \n 6.75 \n \n \n 3.82 \n \n \n \n \n 2028 \n \n \n 4.1 \n \n \n 5.4 \n \n \n 6.4 \n \n \n 8.4 \n \n \n 5.7 \n \n \n   \n \n \n 2028 \n \n \n 4.00 \n \n \n 3.75 \n \n \n 1.50 \n \n \n 5.89 \n \n \n 3.70 \n \n \n \n \n 2029 \n \n \n 4.1 \n \n \n 5.3 \n \n \n 6.1 \n \n \n 8.0 \n \n \n 5.5 \n \n \n   \n \n \n 2029 \n \n \n 4.00 \n \n \n 3.75 \n \n \n 1.50 \n \n \n 5.06 \n \n \n 3.58 \n \n \n \n \n 2030 \n \n \n 4.0 \n \n \n 5.1 \n \n \n 5.7 \n \n \n 7.4 \n \n \n 5.3 \n \n \n   \n \n \n 2030 \n \n \n 4.00 \n \n \n 3.75 \n \n \n 1.77 \n \n \n 4.26 \n \n \n 3.52 \n \n \n \n \n \n \n \n \n \n \n \n \n House price index - four quarter change \n \n \n   \n \n \n Stock price index - four quarter change \n \n \n \n \n \n \n \n Upside % \n \n \n Base case % \n \n \n Downside % \n \n \n Extreme downside % \n \n \n Weighted average % \n \n \n   \n \n \n \n \n \n Upside % \n \n \n Base case % \n \n \n Downside % \n \n \n Extreme downside % \n \n \n Weighted average % \n \n \n \n \n 2026 \n \n \n 6.4 \n \n \n 0.7 \n \n \n (4.3) \n \n \n (5.9) \n \n \n 0.1 \n \n \n   \n \n \n 2026 \n \n \n 13.8 \n \n \n (2.5) \n \n \n (20.9) \n \n \n (39.0) \n \n \n (7.4) \n \n \n \n \n 2027 \n \n \n 7.6 \n \n \n (1.8) \n \n \n (6.6) \n \n \n (12.4) \n \n \n (1.8) \n \n \n   \n \n \n 2027 \n \n \n 5.6 \n \n \n 5.2 \n \n \n 8.1 \n \n \n 4.8 \n \n \n 5.7 \n \n \n \n \n 2028 \n \n \n 5.3 \n \n \n (0.5) \n \n \n (0.7) \n \n \n (12.0) \n \n \n (0.4) \n \n \n   \n \n \n 2028 \n \n \n 3.5 \n \n \n 5.2 \n \n \n 12.9 \n \n \n 18.1 \n \n \n 7.2 \n \n \n \n \n 2029 \n \n \n 5.3 \n \n \n 3.9 \n \n \n 4.9 \n \n \n 4.7 \n \n \n 4.5 \n \n \n   \n \n \n 2029 \n \n \n 3.5 \n \n \n 5.3 \n \n \n 11.5 \n \n \n 15.3 \n \n \n 6.9 \n \n \n \n \n 2030 \n \n \n 5.6 \n \n \n 4.0 \n \n \n 5.2 \n \n \n 6.3 \n \n \n 4.9 \n \n \n   \n \n \n 2030 \n \n \n 3.1 \n \n \n 5.3 \n \n \n 10.4 \n \n \n 13.3 \n \n \n 6.5 \n \n \n \n \n \n \n \n \n \n \n \n \n Commercial real estate price - four quarter change \n \n \n \n \n \n \n \n \n \n \n Upside % \n \n \n Base case % \n \n \n Downside % \n \n \n Extreme downside % \n \n \n Weighted average % \n \n \n   \n \n \n \n \n \n \n \n 2026 \n \n \n 11.9 \n \n \n (2.6) \n \n \n (9.4) \n \n \n (15.0) \n \n \n (2.3) \n \n \n   \n \n \n \n \n \n \n \n 2027 \n \n \n 4.9 \n \n \n (2.1) \n \n \n (9.5) \n \n \n (22.4) \n \n \n (4.1) \n \n \n   \n \n \n \n \n \n \n \n 2028 \n \n \n 5.8 \n \n \n 2.8 \n \n \n 4.1 \n \n \n 3.9 \n \n \n 4.0 \n \n \n   \n \n \n \n \n \n \n \n 2029 \n \n \n 4.3 \n \n \n 2.0 \n \n \n 4.1 \n \n \n 5.8 \n \n \n 3.4 \n \n \n   \n \n \n \n \n \n \n \n 2030 \n \n \n 3.0 \n \n \n 2.0 \n \n \n 4.0 \n \n \n 5.0 \n \n \n 2.9 \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n   \n Capital and risk management continued \n Credit risk continued \n Economic drivers continued \n Worst points \n \n \n \n \n \n \n \n 2026 \n \n \n \n \n \n 2025 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n Extreme Downside % \n \n \n   \n \n \n Weighted Average % \n \n \n \n \n \n \n \n \n \n \n \n Extreme Downside % \n \n \n \n \n \n Weighted Average % \n \n \n \n \n   \n \n \n Downside % \n \n \n Quarter \n \n \n Quarter \n \n \n \n \n \n Downside % \n \n \n Quarter \n \n \n Quarter \n \n \n \n \n GDP \n \n \n (2.3) \n \n \n Q2 2027 \n \n \n (4.8) \n \n \n Q2 2027 \n \n \n - \n \n \n \n \n \n - \n \n \n Q4 2027 \n \n \n (3.8) \n \n \n Q4 2026 \n \n \n - \n \n \n \n \n Unemployment rate - peak \n \n \n 6.5 \n \n \n Q1 2028 \n \n \n 8.5 \n \n \n Q2 2028 \n \n \n 5.8 \n \n \n \n \n \n 6.2 \n \n \n Q4 2027 \n \n \n 8.5 \n \n \n Q4 2027 \n \n \n 5.6 \n \n \n \n \n House price index \n \n \n (12.7) \n \n \n Q3 2028 \n \n \n (27.6) \n \n \n Q1 2029 \n \n \n (2.6) \n \n \n \n \n \n (2.4) \n \n \n Q2 2028 \n \n \n (25.9) \n \n \n Q2 2028 \n \n \n - \n \n \n \n \n Commercial real estate price \n \n \n (18.0) \n \n \n Q4 2027 \n \n \n (35.0) \n \n \n Q1 2028 \n \n \n (6.3) \n \n \n \n \n \n (7.3) \n \n \n Q2 2027 \n \n \n (33.3) \n \n \n Q3 2027 \n \n \n - \n \n \n \n \n Consumer price index \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   - highest four quarter change \n \n \n 1.1 \n \n \n Q1 2026 \n \n \n 10.0 \n \n \n Q1 2027 \n \n \n 3.7 \n \n \n \n \n \n 3.8 \n \n \n Q3 2025 \n \n \n 3.8 \n \n \n Q3 2025 \n \n \n 3.8 \n \n \n \n \n Bank of England base rate - extreme level \n \n \n 1.5 \n \n \n Q1 2026 \n \n \n 7.0 \n \n \n Q1 2027 \n \n \n 3.9 \n \n \n \n \n \n 2.0 \n \n \n Q1 2025 \n \n \n 0.1 \n \n \n Q1 2025 \n \n \n 2.8 \n \n \n \n \n Stock price index \n \n \n (22.7) \n \n \n Q1 2027 \n \n \n (44.8) \n \n \n Q1 2027 \n \n \n (7.6) \n \n \n \n \n \n (6.7) \n \n \n Q4 2026 \n \n \n (47.7) \n \n \n Q4 2026 \n \n \n - \n \n \n \n \n   \n (1)     The figures show falls relative to the starting period for GDP, house price index, commercial real estate price and stock price index. For unemployment rate, it shows highest value through the scenario horizon. For consumer price index, it shows highest or lowest annual percentage change. For Bank of England base rate, it shows highest or lowest value through the horizon. The calculations are performed over five years, with a starting point of Q4 2025 for 31 March 2026 scenarios and Q4 2024 for 31 December 2025 scenarios. \n   \n \n \n   \n \n \n \n Capital and risk management continued \n Credit risk continued \n Segment analysis - portfolio summary \n The table below shows gross loans and ECL, by segment and stage, within the scope of the IFRS 9 ECL framework. \n \n \n \n \n \n \n \n 31 March 2026 \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n \n \n \n   \n \n \n Private Banking \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n Private Banking \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Retail \n \n \n & Wealth \n \n \n Commercial   \n \n \n Central items   \n \n \n   \n \n \n \n \n \n Retail \n \n \n & Wealth \n \n \n Commercial   \n \n \n Central items   \n \n \n \n \n \n \n \n \n \n \n Banking \n \n \n Management \n \n \n & Institutional \n \n \n & other \n \n \n Total \n \n \n \n \n \n Banking \n \n \n Management \n \n \n & Institutional \n \n \n & other \n \n \n Total \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \...

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