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NatWest Group plc released its Q1 2026 Interim Management Statement on 01 May 2026, reporting an attributable profit of £1.4 billion and basic earnings per share of 17.9 pence for the three months ended 31 March 2026. The Group recorded a Return on Tangible Equity of 18.2% and a Common Equity Tier 1 (CET1) ratio of 14.3% at period end. Total income excluding notable items was £4.2 billion, with net loans to customers excluding central items increasing by £7.2 billion and customer deposits excluding central items increasing by £3.1 billion in the quarter.
| Date | 1 May 2026 |
| Time | 07:00:05 |
| Category | Results |
| ID | 6943C |
NatWest Group
Q1 2026 Interim Management Statement
natwestgroup.com
Inside this report
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Business performance summary
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2 |
Q1 2026 performance summary |
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3 |
Performance key metrics and ratios |
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5 |
Chief Financial Officer's review |
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7 |
Retail Banking |
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8 |
Private Banking & Wealth Management |
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9 |
Commercial & Institutional |
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10 |
Central items & other |
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11 |
Segment performance |
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Capital and risk management |
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14 |
Capital, liquidity and funding risk |
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20 |
Credit risk |
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20 |
Economic drivers |
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24 |
Segment analysis - portfolio summary |
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25 |
Segment analysis - loans |
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25 |
Movement in ECL provision |
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26 |
ECL post model adjustments |
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27 |
Measurement uncertainty and ECL sensitivity analysis |
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28 |
Sector analysis - portfolio summary |
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Financial statements and notes |
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33 |
Condensed consolidated income statement |
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34 |
Condensed consolidated statement of comprehensive income |
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35 |
Condensed consolidated balance sheet |
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36 |
Condensed consolidated statement of changes in equity |
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37 |
Presentation of condensed consolidated financial statements |
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37 |
Litigation and regulatory matters |
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37 |
Post balance sheet events |
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Additional information |
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38 |
Presentation of information |
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38 |
Statutory accounts |
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38 |
Contacts |
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38 |
Forward-looking statements |
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40 |
Non-IFRS financial measures |
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45 |
Performance measures not defined under IFRS
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Q1 2026 performance summary
Chief Executive, Paul Thwaite, commented:
"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.
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.
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."
Strong financial performance
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.
Strong growth in our customer businesses while strengthening and deepening relationships
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.
· 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%.
· 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.
· 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.
· 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.
We continue to leverage simplification to drive efficiency
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.
Active balance sheet management creates capacity for growth to deliver attractive returns
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.
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%.
Outlook(2)
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.
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.
(1) Refer to the Non-IFRS financial measures appendix for details of notable items.
(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.
Business performance summary
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Quarter ended |
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31 March |
31 December |
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31 March |
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2026 |
2025 |
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2025 |
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Summary consolidated income statement |
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£m |
£m |
Variance |
£m |
Variance |
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Net interest income |
|
3,394 |
3,441 |
(1.4%) |
3,026 |
12.2% |
|
Non-interest income |
|
964 |
883 |
9.2% |
954 |
1.0% |
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Total income |
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4,358 |
4,324 |
0.8% |
3,980 |
9.5% |
|
Litigation and conduct costs |
|
(15) |
(37) |
(59.5%) |
(44) |
(65.9%) |
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Other operating expenses |
|
(2,027) |
(2,211) |
(8.3%) |
(1,935) |
4.8% |
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Operating expenses |
|
(2,042) |
(2,248) |
(9.2%) |
(1,979) |
3.2% |
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Profit before impairment losses |
|
2,316 |
2,076 |
11.6% |
2,001 |
15.7% |
|
Impairment losses |
|
(283) |
(136) |
108.1% |
(189) |
49.7% |
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Operating profit before tax |
|
2,033 |
1,940 |
4.8% |
1,812 |
12.2% |
|
Tax charge |
|
(526) |
(462) |
13.9% |
(471) |
11.7% |
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Profit for the period |
|
1,507 |
1,478 |
2.0% |
1,341 |
12.4% |
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Performance key metrics and ratios |
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Notable items within total income (1) |
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£135m |
£52m |
159.6% |
£28m |
nm |
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Total income excluding notable items (1) |
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£4,223m |
£4,272m |
(1.1%) |
£3,952m |
6.9% |
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Net interest margin (NIM) (1) |
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2.47% |
2.45% |
2bps |
2.27% |
20bps |
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Average interest earning assets (1) |
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£556bn |
£557bn |
(0.2%) |
£542bn |
2.6% |
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Cost:income ratio (excl. litigation and conduct) (1) |
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46.5% |
51.1% |
(4.6%) |
48.6% |
(2.1%) |
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Loan impairment rate (1) |
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26bps |
13bps |
13bps |
19bps |
7bps |
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Profit attributable to ordinary shareholders |
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£1,432m |
£1,393m |
2.8% |
£1,252m |
14.4% |
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Total earnings per share attributable to ordinary shareholders - basic |
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17.9p |
17.4p |
0.5p |
15.5p |
2.4p |
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Return on Tangible Equity (RoTE) (1) |
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18.2% |
18.3% |
(0.1%) |
18.5% |
(0.3%) |
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Climate and transition finance (2) |
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£10,477m |
£11,451m |
na |
- |
na |
nm = not meaningful, na = not applicable
For the footnotes to this table refer to the following page.
Business performance summary continued
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As at |
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31 March |
31 December |
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31 March |
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2026 |
2025 |
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2025 |
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Balance sheet |
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£bn |
£bn |
Variance |
£bn |
Variance |
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Total assets |
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749.6 |
714.6 |
4.9% |
710.0 |
5.6% |
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Loans to customers - amortised cost |
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431.6 |
418.9 |
3.0% |
398.8 |
8.2% |
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Loans to customers excluding central items (1,3) |
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396.4 |
389.2 |
1.8% |
371.9 |
6.6% |
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Loans to customers and banks - amortised cost and FVOCI |
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444.4 |
429.9 |
3.4% |
409.5 |
8.5% |
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Total impairment provisions (4) |
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3.7 |
3.6 |
2.8% |
3.5 |
5.7% |
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Expected credit loss (ECL) coverage ratio |
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0.84% |
0.83% |
1bps |
0.86% |
(2bps) |
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Customer deposits |
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445.5 |
443.0 |
0.6% |
434.6 |
2.5% |
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Customer deposits excluding central items (1,3) |
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444.8 |
441.7 |
0.7% |
433.4 |
2.6% |
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Assets under management and administration (AUMA) (1) |
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56.7 |
58.5 |
(3.1%) |
48.5 |
16.9% |
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Customer assets and liabilities (CAL) (1) |
|
900.1 |
891.7 |
0.9% |
856.0 |
5.2% |
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Liquidity and funding |
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Average Liquidity Coverage Ratio (LCR) (5) |
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144% |
147% |
(3%) |
151% |
(7%) |
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Liquidity portfolio |
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233 |
238 |
(2%) |
222 |
5% |
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Average Net Stable Funding Ratio (NSFR) (5) |
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134% |
135% |
(1%) |
137% |
(3%) |
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Loan:deposit ratio (excl. repos and reverse repos) (1) |
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89% |
88% |
1% |
85% |
4% |
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Total wholesale funding |
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92 |
88 |
5% |
87 |
6% |
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Short-term wholesale funding |
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29 |
28 |
4% |
33 |
(12%) |
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Capital and leverage |
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Common Equity Tier 1 (CET1) ratio (6) |
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14.3% |
14.0% |
30bps |
13.8% |
50bps |
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Total capital ratio (6) |
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19.8% |
19.3% |
50bps |
20.6% |
(80bps) |
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Pro forma CET1 ratio (excl. foreseeable items) (7) |
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15.9% |
15.4% |
50bps |
14.8% |
110bps |
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Risk-weighted assets (RWAs) |
|
196.0 |
193.3 |
1.4% |
187.0 |
4.8% |
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UK leverage ratio |
|
4.8% |
4.8% |
- |
5.2% |
(0.4%) |
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Tangible net asset value (TNAV) per ordinary share (1,8) |
|
400p |
384p |
16p |
347p |
53p |
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Number of ordinary shares in issue (millions) (8) |
|
7,971 |
7,995 |
(0.3%) |
8,067 |
(1.2%) |
(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.
(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.
(3) Central items includes Treasury repo activity.
(4) Includes £0.1 billion relating to off-balance sheet exposures (31 December 2025 - £0.1 billion; 31 March 2025 - £0.1 billion).
(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.
(6) Refer to the Capital, liquidity and funding risk section for details of the basis of preparation.
(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).
(8) The number of ordinary shares in issue excludes own shares held.
Chief Financial Officer's review
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.
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.
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.
Strong growth while strengthening and deepening relationships
We are growing in ways that build and strengthen customer relationships, focusing on our priority segments and deepening customer connections.
· 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%.
· 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.
· 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.
· 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%.
· 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.
Leveraging simplification
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.
· 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.
Chief Financial Officer's review continued
Actively managing our balance sheet and risk to deliver attractive returns
We continue to proactively manage our balance sheet and maintain stable and diversified sources of funding to increase capital velocity.
· 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.
· 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.
· 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.
· 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.
· TNAV per share increased by 16 pence in the quarter to 400 pence primarily reflecting the attributable profit for the period.
· 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.
Business performance summary
Retail Banking
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Quarter ended |
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31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Total income |
1,684 |
1,699 |
1,540 |
|
Operating expenses |
(719) |
(799) |
(681) |
|
of which: Other operating expenses |
(716) |
(799) |
(677) |
|
Impairment losses |
(184) |
(114) |
(109) |
|
Operating profit |
781 |
786 |
750 |
|
|
|
|
|
|
Return on equity (1) |
24.6% |
24.6% |
24.5% |
|
Net interest margin (1) |
2.69% |
2.70% |
2.58% |
|
Cost:income ratio (excl. litigation and conduct) (1) |
42.5% |
47.0% |
44.0% |
|
Loan impairment rate (1) |
33bps |
21bps |
21bps |
|
|
|
|
|
|
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As at |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£bn |
£bn |
£bn |
|
Net loans to customers (amortised cost) |
219.4 |
216.1 |
210.4 |
|
Customer deposits |
202.2 |
202.6 |
195.7 |
|
Customer assets and liabilities (CAL) (1) |
423.5 |
420.5 |
407.9 |
|
RWAs |
70.2 |
68.5 |
66.8 |
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.
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.
Q1 2026 performance
· 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.
· Net interest margin decreased by 1 basis point compared with Q4 2025, largely reflecting the net interest income factors noted above.
· 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.
· 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.
· 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.
· 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.
· RWAs increased by £1.7 billion, or 2.5%, in Q1 2026, primarily due to book movements and model updates.
(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.
(2) Climate and transition finance represents only a relatively small proportion of our overall financing and facilitation activities.
Business performance summary continued
Private Banking & Wealth Management
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Total income |
291 |
308 |
265 |
|
Operating expenses |
(191) |
(195) |
(187) |
|
of which: Other operating expenses |
(191) |
(195) |
(187) |
|
Impairment losses |
(6) |
(6) |
(1) |
|
Operating profit |
94 |
107 |
77 |
|
|
|
|
|
|
Return on equity (1) |
21.1% |
23.6% |
17.1% |
|
Net interest margin (1) |
2.73% |
2.72% |
2.59% |
|
Cost:income ratio (excl. litigation and conduct) (1) |
65.6% |
63.3% |
70.6% |
|
Loan impairment rate (1) |
13bps |
13bps |
2bps |
|
AUM net flows (£bn) (1) |
0.9 |
0.9 |
0.8 |
|
AUMA income (1,2) |
83 |
84 |
75 |
|
|
|
|
|
|
|
As at |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£bn |
£bn |
£bn |
|
Net loans to customers (amortised cost) |
19.0 |
18.9 |
18.4 |
|
Customer deposits |
41.1 |
42.7 |
41.2 |
|
RWAs |
11.4 |
11.4 |
11.3 |
|
Assets under management and administration (AUMA) (1,3) |
56.7 |
58.5 |
48.5 |
|
of which: |
|
|
|
|
Assets under management (AUM) (1) |
43.3 |
43.7 |
36.7 |
|
Assets under administration (AUA) (1,3) |
13.4 |
14.8 |
11.8 |
|
Customer assets and liabilities (CAL) (1,4) |
115.5 |
119.0 |
107.0 |
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.
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.
Q1 2026 performance
· 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.
· Net interest margin was 1 basis point higher than Q4 2025, largely reflecting the net interest income factors noted above.
· 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.
· 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.
· Net loans to customers increased by £0.1 billion, or 0.5%, in Q1 2026, driven by an increase in personal lending.
· Customer deposits decreased by £1.6 billion, or 3.7%, in Q1 2026, largely reflecting the impact of seasonal tax outflows.
· 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.
(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.
(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.
(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.
(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.
(5) Climate and transition finance represents only a relatively small proportion of our overall financing and facilitation activities.
Business performance summary continued
Commercial & Institutional
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Net interest income |
1,642 |
1,644 |
1,459 |
|
Non-interest income |
593 |
668 |
683 |
|
Total income |
2,235 |
2,312 |
2,142 |
|
|
|
|
|
|
Operating expenses |
(1,111) |
(1,254) |
(1,044) |
|
of which: Other operating expenses |
(1,102) |
(1,225) |
(1,015) |
|
Impairment losses |
(94) |
(19) |
(78) |
|
Operating profit |
1,030 |
1,039 |
1,020 |
|
|
|
|
|
|
Return on equity (1) |
18.3% |
19.4% |
19.3% |
|
Net interest margin (1) |
2.46% |
2.45% |
2.32% |
|
Cost:income ratio (excl. litigation and conduct) (1) |
49.3% |
53.0% |
47.4% |
|
Loan impairment rate (1) |
24bps |
5bps |
22bps |
|
|
|
|
|
|
|
As at |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£bn |
£bn |
£bn |
|
Net loans to customers (amortised cost) |
158.0 |
154.2 |
143.1 |
|
Customer deposits |
201.5 |
196.4 |
196.5 |
|
Funded assets (1) |
364.0 |
331.4 |
336.1 |
|
Customer assets and liabilities (CAL) (1) |
361.1 |
352.2 |
341.1 |
|
RWAs |
113.0 |
111.9 |
107.3 |
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.
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.
Q1 2026 performance
· 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.
· Net interest margin was 1 basis point higher than Q4 2025 reflecting deposit margin expansion.
· 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.
· 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.
· 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.
· 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.
· 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.
(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.
(2) Social finance and facilitation represents only a relatively small proportion of our overall financing and facilitation activities.
(3) Climate and transition finance represents only a relatively small proportion of our overall financing and facilitation activities.
(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.
(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.
Business performance summary continued
Central items & other
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Total income |
148 |
5 |
33 |
|
Operating expenses |
(21) |
- |
(67) |
|
of which: Other operating expenses |
(18) |
8 |
(56) |
|
Impairment releases/(losses) |
1 |
3 |
(1) |
|
Operating profit/(loss) |
128 |
8 |
(35) |
|
|
|
As at |
|
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£bn |
£bn |
£bn |
|
Net loans to customers (amortised cost) |
35.2 |
29.7 |
26.9 |
|
Customer deposits |
0.7 |
1.3 |
1.2 |
|
RWAs |
1.4 |
1.5 |
1.6 |
Q1 2026 performance
· 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.
· 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.
· Net loans to customers increased by £5.5 billion in Q1 2026 driven by reverse repo activity in Treasury.
· Customer deposits decreased by £0.6 billion compared with Q4 2025 reflecting repo activity in Treasury.
Segment performance
|
|
Quarter ended 31 March 2026 |
||||
|
|
Retail |
Private Banking |
Commercial |
Central items |
Total NatWest |
|
|
Banking |
& Wealth Management |
& Institutional |
& other |
Group |
|
|
£m |
£m |
£m |
£m |
£m |
|
Income statement |
|
||||
|
Net interest income |
1,562 |
196 |
1,642 |
(6) |
3,394 |
|
Own credit adjustments |
- |
- |
3 |
- |
3 |
|
Other non-interest income |
122 |
95 |
590 |
154 |
961 |
|
Total income |
1,684 |
291 |
2,235 |
148 |
4,358 |
|
Direct expenses |
(182) |
(58) |
(379) |
(1,408) |
(2,027) |
|
Indirect expenses |
(534) |
(133) |
(723) |
1,390 |
- |
|
Other operating expenses |
(716) |
(191) |
(1,102) |
(18) |
(2,027) |
|
Litigation and conduct costs |
(3) |
- |
(9) |
(3) |
(15) |
|
Operating expenses |
(719) |
(191) |
(1,111) |
(21) |
(2,042) |
|
Operating profit before impairment losses/releases |
965 |
100 |
1,124 |
127 |
2,316 |
|
Impairment (losses)/releases |
(184) |
(6) |
(94) |
1 |
(283) |
|
Operating profit |
781 |
94 |
1,030 |
128 |
2,033 |
|
|
|
|
|
|
|
|
Total income excluding notable items (1) |
1,684 |
291 |
2,232 |
16 |
4,223 |
|
|
|
|
|
|
|
|
Additional information |
|
||||
|
Return on Tangible Equity (1) |
na |
na |
na |
na |
18.2% |
|
Return on equity (1) |
24.6% |
21.1% |
18.3% |
nm |
na |
|
Cost:income ratio (excl. litigation and conduct) (1) |
42.5% |
65.6% |
49.3% |
nm |
46.5% |
|
Total assets (£bn) |
243.4 |
29.5 |
430.2 |
46.5 |
749.6 |
|
Funded assets (£bn) (1) |
243.4 |
29.5 |
364.0 |
46.3 |
683.2 |
|
Net loans to customers - amortised cost (£bn) |
219.4 |
19.0 |
158.0 |
35.2 |
431.6 |
|
Loan impairment rate (1) |
33bps |
13bps |
24bps |
nm |
26bps |
|
Impairment provisions (£bn) |
(1.9) |
(0.1) |
(1.7) |
- |
(3.7) |
|
Impairment provisions - Stage 3 (£bn) |
(1.2) |
(0.1) |
(1.0) |
0.1 |
(2.2) |
|
Customer deposits (£bn) |
202.2 |
41.1 |
201.5 |
0.7 |
445.5 |
|
Risk-weighted assets (RWAs) (£bn) |
70.2 |
11.4 |
113.0 |
1.4 |
196.0 |
|
Total customer assets and liabilities (CAL) (1) |
423.5 |
115.5 |
361.1 |
na |
900.1 |
|
RWA equivalent (RWAe) (£bn) |
71.3 |
11.4 |
114.0 |
1.8 |
198.5 |
|
Employee numbers (FTEs - thousands) |
12.3 |
2.1 |
12.9 |
31.4 |
58.7 |
|
Third party customer asset rate (1) |
4.43% |
4.54% |
5.56% |
nm |
nm |
|
Third party customer funding rate (1) |
(1.60%) |
(2.35%) |
(1.36%) |
nm |
nm |
|
Average interest earning assets (£bn) (1) |
235.5 |
29.1 |
270.6 |
na |
556.3 |
|
Net interest margin (1) |
2.69% |
2.73% |
2.46% |
na |
2.47% |
nm = not meaningful, na = not applicable
(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.
Segment performance continued
|
|
Quarter ended 31 December 2025 |
||||
|
|
Retail |
Private Banking |
Commercial |
Central items |
Total NatWest |
|
|
Banking |
& Wealth Management |
& Institutional |
& other |
Group |
|
|
£m |
£m |
£m |
£m |
£m |
|
Income statement |
|
||||
|
Net interest income |
1,593 |
202 |
1,644 |
2 |
3,441 |
|
Own credit adjustments |
- |
- |
(2) |
- |
(2) |
|
Other non-interest income |
106 |
106 |
670 |
3 |
885 |
|
Total income |
1,699 |
308 |
2,312 |
5 |
4,324 |
|
Direct expenses |
(231) |
(67) |
(441) |
(1,472) |
(2,211) |
|
Indirect expenses |
(568) |
(128) |
(784) |
1,480 |
- |
|
Other operating expenses |
(799) |
(195) |
(1,225) |
8 |
(2,211) |
|
Litigation and conduct costs |
- |
- |
(29) |
(8) |
(37) |
|
Operating expenses |
(799) |
(195) |
(1,254) |
- |
(2,248) |
|
Operating profit before impairment losses/releases |
900 |
113 |
1,058 |
5 |
2,076 |
|
Impairment (losses)/releases |
(114) |
(6) |
(19) |
3 |
(136) |
|
Operating profit |
786 |
107 |
1,039 |
8 |
1,940 |
|
|
|
|
|
|
|
|
Total income excluding notable items (1) |
1,699 |
308 |
2,263 |
2 |
4,272 |
|
|
|
|
|
|
|
|
Additional information |
|
||||
|
Return on Tangible Equity (1) |
na |
na |
na |
na |
18.3% |
|
Return on equity (1) |
24.6% |
23.6% |
19.4% |
nm |
na |
|
Cost:income ratio (excl. litigation and conduct) (1) |
47.0% |
63.3% |
53.0% |
nm |
51.1% |
|
Total assets (£bn) |
240.3 |
30.5 |
391.9 |
51.9 |
714.6 |
|
Funded assets (£bn) (1) |
240.3 |
30.5 |
331.4 |
51.6 |
653.8 |
|
Net loans to customers - amortised cost (£bn) |
216.1 |
18.9 |
154.2 |
29.7 |
418.9 |
|
Loan impairment rate (1) |
21bps |
13bps |
5bps |
nm |
13bps |
|
Impairment provisions (£bn) |
(1.8) |
(0.1) |
(1.7) |
- |
(3.6) |
|
Impairment provisions - Stage 3 (£bn) |
(1.1) |
(0.1) |
(1.0) |
- |
(2.2) |
|
Customer deposits (£bn) |
202.6 |
42.7 |
196.4 |
1.3 |
443.0 |
|
Risk-weighted assets (RWAs) (£bn) |
68.5 |
11.4 |
111.9 |
1.5 |
193.3 |
|
Total customer assets and liabilities (CAL) (1) |
420.5 |
119.0 |
352.2 |
na |
891.7 |
|
RWA equivalent (RWAe) (£bn) |
69.7 |
11.4 |
112.9 |
1.7 |
195.7 |
|
Employee numbers (FTEs - thousands) |
11.5 |
2.1 |
12.3 |
32.8 |
58.7 |
|
Third party customer asset rate (1) |
4.42% |
4.66% |
5.69% |
nm |
nm |
|
Third party customer funding rate (1) |
(1.63%) |
(2.47%) |
(1.41%) |
nm |
nm |
|
Average interest earning assets (£bn) (1) |
234.1 |
29.5 |
266.4 |
na |
557.2 |
|
Net interest margin (1) |
2.70% |
2.72% |
2.45% |
na |
2.45% |
nm = not meaningful, na = not applicable
(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.
Segment performance continued
|
|
Quarter ended 31 March 2025 |
||||
|
|
Retail |
Private Banking |
Commercial |
Central items |
Total NatWest |
|
|
Banking |
& Wealth Management |
& Institutional |
& other |
Group |
|
|
£m |
£m |
£m |
£m |
£m |
|
Income statement |
|
||||
|
Net interest income |
1,438 |
181 |
1,459 |
(52) |
3,026 |
|
Own credit adjustments |
- |
- |
6 |
- |
6 |
|
Other non-interest income |
102 |
84 |
677 |
85 |
948 |
|
Total income |
1,540 |
265 |
2,142 |
33 |
3,980 |
|
Direct expenses |
(166) |
(59) |
(379) |
(1,331) |
(1,935) |
|
Indirect expenses |
(511) |
(128) |
(636) |
1,275 |
- |
|
Other operating expenses |
(677) |
(187) |
(1,015) |
(56) |
(1,935) |
|
Litigation and conduct costs |
(4) |
- |
(29) |
(11) |
(44) |
|
Operating expenses |
(681) |
(187) |
(1,044) |
(67) |
(1,979) |
|
Operating profit/(loss) before impairment losses |
859 |
78 |
1,098 |
(34) |
2,001 |
|
Impairment losses |
(109) |
(1) |
(78) |
(1) |
(189) |
|
Operating profit/(loss) |
750 |
77 |
1,020 |
(35) |
1,812 |
|
|
|
||||
|
Total income excluding notable items (1) |
1,540 |
265 |
2,136 |
11 |
3,952 |
|
|
|
||||
|
Additional information |
|
|
|
|
|
|
Return on Tangible Equity (1) |
na |
na |
na |
na |
18.5% |
|
Return on equity (1) |
24.5% |
17.1% |
19.3% |
nm |
na |
|
Cost:income ratio (excl. litigation and conduct) (1) |
44.0% |
70.6% |
47.4% |
nm |
48.6% |
|
Total assets (£bn) |
234.3 |
28.9 |
397.9 |
48.9 |
710.0 |
|
Funded assets (£bn) (1) |
234.3 |
28.9 |
336.1 |
47.9 |
647.2 |
|
Net loans to customers - amortised cost (£bn) |
210.4 |
18.4 |
143.1 |
26.9 |
398.8 |
|
Loan impairment rate (1) |
21bps |
2bps |
22bps |
nm |
19bps |
|
Impairment provisions (£bn) |
(1.9) |
(0.1) |
(1.5) |
- |
(3.5) |
|
Impairment provisions - Stage 3 (£bn) |
(1.1) |
- |
(1.0) |
- |
(2.1) |
|
Customer deposits (£bn) |
195.7 |
41.2 |
196.5 |
1.2 |
434.6 |
|
Risk-weighted assets (RWAs) (£bn) |
66.8 |
11.3 |
107.3 |
1.6 |
187.0 |
|
Total customer assets and liabilities (CAL) (1) |
407.9 |
107.0 |
341.1 |
na |
856.0 |
|
RWA equivalent (RWAe) (£bn) |
67.6 |
11.3 |
108.5 |
2.1 |
189.5 |
|
Employee numbers (FTEs - thousands) |
11.9 |
2.2 |
12.8 |
32.5 |
59.4 |
|
Third party customer asset rate (1) |
4.29% |
4.83% |
6.24% |
nm |
nm |
|
Third party customer funding rate (1) |
(1.87%) |
(2.90%) |
(1.71%) |
nm |
nm |
|
Average interest earning assets (£bn) (1) |
226.5 |
28.4 |
255.2 |
na |
541.6 |
|
Net interest margin (1) |
2.58% |
2.59% |
2.32% |
na |
2.27% |
nm = not meaningful, na = not applicable
(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.
Capital and risk management
Capital, liquidity and funding risk
Introduction
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.
Key developments since 31 December 2025
|
CET1 ratio 14.3% (2025 - 14.0%) |
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. 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. |
|
||
|
|
|
|
||
|
RWAs £196.0bn (2025 - £193.3bn) |
Total RWAs increased by £2.7 billion to £196.0 billion reflecting: · 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; · an increase in market risk RWAs of £0.6 billion, chiefly driven by SVaR and the incremental risk charge; · 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.
|
|
||
|
|
|
|
||
|
UK leverage ratio 4.8% (2025 - 4.8%) |
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. |
|
||
|
MREL ratio 31.9% (2025 - 31.9%) |
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. 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. |
|
||
|
|
|
|
|
|
|
Liquidity portfolio £233.4bn (2025 - £237.9bn) |
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. |
|
||
|
|
|
|
|
|
|
LCR average 144% (2025 - 147%) |
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. |
|
||
|
|
|
|
|
|
|
NSFR average 134% (2025 - 135%) |
The average Net Stable Funding Ratio (NSFR) decreased by 1% to 134% during Q1 2026 driven by increased lending partly offset by increased deposits. |
|
||
Capital and risk management continued
Capital, liquidity and funding risk continued
Maximum Distributable Amount (MDA) and Minimum Capital Requirements
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.
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.
The current capital position provides significant headroom above both NatWest Group's minimum requirements and its MDA threshold requirements.
|
Type |
CET1 |
Total Tier 1 |
Total capital |
|
Pillar 1 requirements |
4.5% |
6.0% |
8.0% |
|
Pillar 2A requirements |
1.6% |
2.2% |
2.9% |
|
Minimum Capital Requirements |
6.1% |
8.2% |
10.9% |
|
Capital conservation buffer |
2.5% |
2.5% |
2.5% |
|
Countercyclical capital buffer (1) |
1.7% |
1.7% |
1.7% |
|
MDA threshold (2) |
10.3% |
n/a |
n/a |
|
Overall capital requirement |
10.3% |
12.4% |
15.1% |
|
Capital ratios at 31 March 2026 |
14.3% |
16.6% |
19.8% |
|
Headroom (3,4) |
4.0% |
4.2% |
4.7% |
(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.
(2) Pillar 2A requirements for NatWest Group are set as a variable amount with the exception of some fixed add-ons.
(3) The headroom does not reflect excess distributable capital and may vary over time.
(4) Headroom as at 31 December 2025 was CET1 3.7%, Total Tier 1 4.0% and Total Capital 4.2%.
Leverage ratios
The table below summarises the minimum ratios of capital to leverage exposure under the binding PRA UK leverage framework applicable for NatWest Group.
|
Type |
CET1 |
Total Tier 1 |
|
Minimum ratio |
2.44% |
3.25% |
|
Countercyclical leverage ratio buffer (1) |
0.6% |
0.6% |
|
Total |
3.04% |
3.85% |
(1) The countercyclical leverage ratio buffer is set at 35% of NatWest Group's CCyB.
Liquidity and funding ratios
The table below summarises the minimum requirements for key liquidity and funding metrics under the PRA framework.
|
Type |
|
|
Liquidity Coverage Ratio (LCR) |
100% |
|
Net Stable Funding Ratio (NSFR) |
100% |
Capital and risk management continued
Capital, liquidity and funding risk continued
Capital and leverage ratios
The tables below show key prudential metrics calculated in accordance with current PRA rules.
|
|
31 March |
31 December |
|
|
2026 |
2025 |
|
Capital adequacy ratios |
% |
% |
|
CET1 |
14.3 |
14.0 |
|
Tier 1 |
16.6 |
16.4 |
|
Total |
19.8 |
19.3 |
|
|
|
|
|
Capital |
£m |
£m |
|
Tangible equity |
31,860 |
30,736 |
|
|
|
|
|
Expected loss less impairment |
- |
(89) |
|
Prudential valuation adjustment |
(185) |
(167) |
|
Deferred tax assets |
(775) |
(804) |
|
Own credit adjustments |
28 |
42 |
|
Pension fund assets |
(188) |
(187) |
|
Cash flow hedging reserve |
878 |
752 |
|
Foreseeable ordinary dividends |
(2,553) |
(1,837) |
|
Adjustment for trust assets (1) |
(365) |
(365) |
|
Foreseeable charges (2) |
(608) |
(921) |
|
Other adjustments for regulatory purposes |
(96) |
(94) |
|
Total regulatory adjustments |
(3,864) |
(3,670) |
|
|
|
|
|
CET1 capital |
27,996 |
27,066 |
|
|
|
|
|
Additional AT1 capital |
4,571 |
4,555 |
|
Tier 1 capital |
32,567 |
31,621 |
|
|
|
|
|
Tier 2 capital |
6,283 |
5,754 |
|
Total regulatory capital |
38,850 |
37,375 |
|
|
|
|
|
Risk-weighted assets |
|
|
|
Credit risk |
157,427 |
155,610 |
|
Counterparty credit risk |
7,909 |
7,609 |
|
Market risk |
5,079 |
4,474 |
|
Operational risk |
25,595 |
25,595 |
|
Total RWAs |
196,010 |
193,288 |
(1) Prudent deduction in respect of agreement with the pension fund to establish legal structure to remove dividend-linked contribution.
(2) The foreseeable charges of £608 million relates to share buybacks (31 December 2025 - £921 million).
|
|
31 March |
31 December |
|
|
2026 |
2025 |
|
Leverage |
£m |
£m |
|
Cash and balances at central banks |
78,966 |
85,182 |
|
Trading assets |
56,817 |
46,537 |
|
Derivatives |
66,408 |
60,789 |
|
Financial assets |
523,567 |
505,609 |
|
Other assets |
23,883 |
16,436 |
|
Total assets |
749,641 |
714,553 |
|
Derivatives |
|
|
|
- netting and variation margin |
(63,035) |
(58,769) |
|
- potential future exposures |
18,907 |
18,155 |
|
Securities financing transactions gross up |
1,808 |
2,593 |
|
Other off balance sheet items |
59,842 |
70,909 |
|
Regulatory deductions and other adjustments |
(17,017) |
(9,699) |
|
Claims on central banks |
(75,548) |
(81,616) |
|
Exclusion of bounce back loans |
(925) |
(1,172) |
|
UK leverage exposure |
673,673 |
654,954 |
|
UK leverage ratio (%) |
4.8 |
4.8 |
Capital and risk management continued
Capital, liquidity and funding risk continued
Capital flow statement
The table below analyses the movement in CET1, AT1 and Tier 2 capital for the three months ended 31 March 2026.
|
|
CET1 |
AT1 |
Tier 2 |
Total |
|
|
£m |
£m |
£m |
£m |
|
At 31 December 2025 |
27,066 |
4,555 |
5,754 |
37,375 |
|
Attributable profit for the period |
1,432 |
- |
- |
1,432 |
|
Foreseeable ordinary dividends |
(716) |
- |
- |
(716) |
|
Foreign exchange reserve |
(87) |
- |
- |
(87) |
|
FVOCI reserve |
28 |
- |
- |
28 |
|
Own credit |
(14) |
- |
- |
(14) |
|
Share-based remuneration and shares vested under employee share schemes |
102 |
- |
- |
102 |
|
Goodwill and intangibles deduction |
66 |
- |
- |
66 |
|
Deferred tax assets |
29 |
- |
- |
29 |
|
Prudential valuation adjustments |
(18) |
- |
- |
(18) |
|
New issues of capital instruments |
- |
- |
553 |
553 |
|
Other capital instrument movements (1) |
- |
16 |
(53) |
(37) |
|
Expected loss less impairment |
89 |
- |
- |
89 |
|
Other movements |
19 |
- |
29 |
48 |
|
At 31 March 2026 |
27,996 |
4,571 |
6,283 |
38,850 |
(1) Other capital instrument movements include foreign exchange movements, accrued interest and fair value adjustments to capital instruments.
· For CET1 movements refer to the key points on page 14.
· 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.
· Within other movements for Tier 2 capital, there is an increase as a result of excess IRB provisions over expected losses in the period.
Capital generation pre-distributions
|
|
31 March |
31 December |
|
|
2026 |
2025 |
|
|
£m |
£m |
|
CET1 |
27,996 |
27,066 |
|
CET1 capital pre-distributions (1) |
28,712 |
31,171 |
|
RWAs |
196,010 |
193,288 |
|
|
|
|
|
CET1 ratio (%) - opening at 1 January |
14.00 |
13.61 |
|
CET1 ratio pre-distributions (%) - closing |
14.65 |
16.13 |
|
Capital generation pre-distributions (%) (1) |
0.65 |
2.52 |
(1) The calculation of capital generation pre-distributions uses CET1 capital pre-distributions. Distributions include ordinary dividends paid, foreseeable ordinary dividends and share buybacks.
Capital and risk management continued
Capital, liquidity and funding risk continued
Risk-weighted assets
The table below analyses the movement in RWAs for the quarter ended 31 March 2026, by key drivers.
|
|
|
Counterparty |
|
Operational |
|
|
|
Credit risk |
credit risk |
Market risk |
risk |
Total |
|
|
£bn |
£bn |
£bn |
£bn |
£bn |
|
At 31 December 2025 |
155.6 |
7.6 |
4.5 |
25.6 |
193.3 |
|
Foreign exchange movement |
0.2 |
- |
- |
- |
0.2 |
|
Business movement |
1.3 |
0.2 |
0.6 |
- |
2.1 |
|
Risk parameter changes |
0.3 |
- |
- |
- |
0.3 |
|
Model updates |
- |
0.1 |
- |
- |
0.1 |
|
At 31 March 2026 |
157.4 |
7.9 |
5.1 |
25.6 |
196.0 |
The table below analyses segmental RWAs.
|
|
|
Private Banking |
|
|
Total |
|
|
Retail |
& Wealth |
Commercial |
Central items |
NatWest |
|
|
Banking |
Management |
& Institutional |
& other |
Group |
|
Total RWAs |
£bn |
£bn |
£bn |
£bn |
£bn |
|
At 31 December 2025 |
68.5 |
11.4 |
111.9 |
1.5 |
193.3 |
|
Foreign exchange movement |
- |
- |
0.2 |
- |
0.2 |
|
Business movement |
0.7 |
- |
1.5 |
(0.1) |
2.1 |
|
Risk parameter changes |
0.1 |
- |
0.2 |
- |
0.3 |
|
Model updates |
0.9 |
- |
(0.8) |
- |
0.1 |
|
At 31 March 2026 |
70.2 |
11.4 |
113.0 |
1.4 |
196.0 |
|
|
|
||||
|
Credit risk |
60.8 |
9.7 |
85.5 |
1.4 |
157.4 |
|
Counterparty credit risk |
0.2 |
- |
7.7 |
- |
7.9 |
|
Market risk |
0.1 |
- |
5.0 |
- |
5.1 |
|
Operational risk |
9.1 |
1.7 |
14.8 |
- |
25.6 |
|
Total RWAs |
70.2 |
11.4 |
113.0 |
1.4 |
196.0 |
|
|
|||||
Total RWAs increased by £2.7 billion to £196.0 billion during the period mainly reflecting:
· 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.
· 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.
· An increase in risk parameters of £0.3 billion driven by movements in risk metrics within Commercial & Institutional and Retail Banking.
· 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.
Capital and risk management continued
Capital, liquidity and funding risk continued
Liquidity portfolio
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.
|
|
Liquidity value |
|||||||
|
|
31 March 2026 |
|
31 December 2025 |
|
||||
|
|
NatWest |
NWH |
UK DoL |
|
NatWest |
NWH |
UK DoL |
|
|
|
Group (1) |
Group (2) |
Sub |
|
Group (1) |
Group (2) |
Sub |
|
|
|
£m |
£m |
£m |
|
£m |
£m |
£m |
|
|
Cash and balances at central banks |
74,868 |
42,090 |
41,408 |
|
81,107 |
52,307 |
51,640 |
|
|
High quality government/MDB/PSE and GSE bonds (3) |
67,464 |
49,714 |
49,714 |
|
61,438 |
42,214 |
42,214 |
|
|
Extremely high-quality covered bonds |
4,404 |
4,404 |
4,404 |
|
4,415 |
4,414 |
4,414 |
|
|
LCR level 1 assets |
146,736 |
96,208 |
95,526 |
|
146,960 |
98,935 |
98,268 |
|
|
LCR level 2 Eligible Assets (4) |
8,991 |
8,168 |
8,168 |
|
10,325 |
9,466 |
9,466 |
|
|
Primary liquidity (HQLA) (5) |
155,727 |
104,376 |
103,694 |
|
157,285 |
108,401 |
107,734 |
|
|
Secondary liquidity |
77,647 |
77,647 |
77,647 |
|
80,647 |
80,647 |
80,647 |
|
|
Total liquidity value |
233,374 |
182,023 |
181,341 |
|
237,932 |
189,048 |
188,381 |
|
(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.
(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.
(3) Multilateral development bank abbreviated to MDB, public sector entities abbreviated to PSE and government sponsored entities abbreviated to GSE.
(4) Includes Level 2A and Level 2B.
(5) High-quality liquid assets abbreviated to HQLA.
Capital and risk management continued
Credit risk
Economic drivers
Introduction
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.
The most significant economic drivers for material portfolios are shown in the table below:
|
Portfolio |
Economic drivers |
|
Personal mortgages |
Unemployment rate, sterling swap rate, house price index, real wage |
|
Personal unsecured |
Unemployment rate, sterling swap rate, real wage |
|
Corporates |
Stock price index, gross domestic product (GDP) |
|
Commercial real estate |
Stock price index, commercial property price index, GDP |
Economic scenarios
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.
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.
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%.
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.
At 31 March 2026, the extreme downside scenario was updated to further incorporate physical and transition climate risks.
High-level narrative - potential developments, vulnerabilities and risks |
|
|||
|
Growth |
Outperformance - above trend growth as government support helps in consumer sentiment recovery |
Upside |
||
|
Modest - soft in 2026, close to trend pace afterwards |
Base case |
|||
|
Stalling - cautious consumer and policy uncertainty weighs on activity |
Downside |
|||
|
Extreme stress - extreme fall in GDP followed by a weak recovery |
Extreme downside |
|||
|
Inflation |
Sticky - strong growth and/or wage policies keep services inflation above target in medium term |
Upside |
||
|
Reversal - ongoing progress against inflation halted, inflation rises to around 3.5% |
Base case |
|||
|
Slow - swift fall to lower levels as demand shock dominates |
Downside |
|||
|
Stagflation - crystallisation of physical risks, acceleration of transition policy, surging energy prices and second round impacts, leading to double digit inflation |
Extreme downside |
|||
|
Labour market |
Recovery - job growth rebounds strongly, reversing much of the recent rise in unemployment rate |
Upside |
||
|
Cooling continues - gradual loosening continues into 2026, before improving |
Base case |
|||
|
Job shedding - redundancies, reduced hours, building slack |
Downside |
|||
|
Depression - unemployment hits levels close to previous peaks amid severe stress |
Extreme downside |
|||
|
Rates short-term |
Cautious - higher growth and inflation keep the Monetary Policy Committee cautious |
Upside |
||
|
Pause - rate cutting cycle on pause given the risk of second round inflation impacts. |
Base case |
|||
|
Supportive - sharp declines to support recovery |
Downside |
|||
|
Sharp rise - sharp rates tightening in response to double digit inflation |
Extreme downside |
|||
|
Rates long-term |
Above consensus - 4% |
Upside |
||
|
Flat - 3.75% |
Base case |
|||
|
Low - 2% |
Downside |
|||
|
High - 4% |
Extreme downside |
|||
Capital and risk management continued
Credit risk continued
Economic drivers continued
Main macroeconomic variables
The main macroeconomic variables for each of the four scenarios used for expected credit loss (ECL) modelling are set out in the table below.
|
|
2026 |
|
2025 |
||||||||
|
|
|
|
|
Extreme |
Weighted |
|
|
|
|
Extreme |
Weighted |
|
|
Upside |
Base case |
Downside |
downside |
average |
|
Upside |
Base case |
Downside |
downside |
average |
|
Five-year summary |
% |
% |
% |
% |
% |
|
% |
% |
% |
% |
% |
|
GDP |
2.1 |
1.1 |
0.3 |
(0.4) |
1.0 |
|
2.1 |
1.4 |
0.5 |
0.1 |
1.2 |
|
Unemployment rate |
4.3 |
5.4 |
6.0 |
7.3 |
5.5 |
|
4.3 |
5.1 |
5.6 |
7.0 |
5.3 |
|
House price index |
6.0 |
1.2 |
(0.4) |
(4.2) |
1.4 |
|
5.7 |
3.3 |
0.6 |
(3.8) |
2.6 |
|
Commercial real estate price |
6.0 |
0.4 |
(1.6) |
(5.3) |
0.7 |
|
6.1 |
2.2 |
(0.3) |
(5.0) |
1.9 |
|
Consumer price index |
2.2 |
2.3 |
1.7 |
4.3 |
2.5 |
|
2.6 |
2.4 |
2.4 |
1.8 |
2.3 |
|
Bank of England base rate |
4.0 |
3.8 |
1.8 |
5.4 |
3.7 |
|
4.0 |
3.5 |
2.6 |
1.4 |
3.2 |
|
Stock price index |
5.8 |
3.7 |
3.5 |
(0.3) |
3.6 |
|
6.2 |
4.8 |
2.8 |
1.1 |
4.3 |
|
World GDP |
3.7 |
3.0 |
2.5 |
1.6 |
2.9 |
|
3.7 |
3.1 |
2.5 |
2.2 |
3.0 |
|
Probability weight |
22.5 |
45.0 |
18.3 |
14.2 |
|
|
22.4 |
45.0 |
19.5 |
13.1 |
|
(1) The five-year summary runs from 2026-2030 for 31 March 2026 and from 2025-2029 for 31 December 2025.
(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.
Probability weightings of scenarios
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.
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.
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.
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.
The extreme downside scenario had a higher weight which was deemed reasonable given the rising risk of stagflation.
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.
Capital and risk management continued
Credit risk continued
Economic drivers continued
Annual figures
|
|
GDP - annual growth |
|
|
Consumer price index - four quarter change |
||||||||
|
|
Upside % |
Base case % |
Downside % |
Extreme downside % |
Weighted average % |
|
|
Upside % |
Base case % |
Downside % |
Extreme downside % |
Weighted average % |
|
2026 |
1.2 |
0.4 |
(0.4) |
(1.0) |
0.3 |
|
2026 |
2.6 |
3.5 |
1.3 |
9.0 |
3.7 |
|
2027 |
3.2 |
1.0 |
(1.6) |
(3.5) |
0.4 |
|
2027 |
2.4 |
2.1 |
1.4 |
4.7 |
2.4 |
|
2028 |
2.6 |
1.5 |
1.1 |
0.6 |
1.6 |
|
2028 |
2.1 |
2.0 |
1.9 |
3.7 |
2.2 |
|
2029 |
1.7 |
1.4 |
1.3 |
1.0 |
1.4 |
|
2029 |
1.9 |
2.0 |
2.0 |
2.2 |
2.0 |
|
2030 |
1.6 |
1.4 |
1.3 |
1.0 |
1.4 |
|
2030 |
2.0 |
2.0 |
2.0 |
2.0 |
2.0 |
|
|
||||||||||||
|
|
Unemployment rate - annual average |
|
Bank of England base rate - annual average |
|||||||||
|
|
Upside % |
Base case % |
Downside % |
Extreme downside % |
Weighted average % |
|
|
Upside % |
Base case % |
Downside % |
Extreme downside % |
Weighted average % |
|
2026 |
5.1 |
5.5 |
5.5 |
5.7 |
5.4 |
|
2026 |
3.94 |
3.75 |
2.80 |
5.25 |
3.83 |
|
2027 |
4.2 |
5.7 |
6.2 |
7.2 |
5.6 |
|
2027 |
4.00 |
3.75 |
1.52 |
6.75 |
3.82 |
|
2028 |
4.1 |
5.4 |
6.4 |
8.4 |
5.7 |
|
2028 |
4.00 |
3.75 |
1.50 |
5.89 |
3.70 |
|
2029 |
4.1 |
5.3 |
6.1 |
8.0 |
5.5 |
|
2029 |
4.00 |
3.75 |
1.50 |
5.06 |
3.58 |
|
2030 |
4.0 |
5.1 |
5.7 |
7.4 |
5.3 |
|
2030 |
4.00 |
3.75 |
1.77 |
4.26 |
3.52 |
|
|
||||||||||||
|
|
House price index - four quarter change |
|
Stock price index - four quarter change |
|||||||||
|
|
Upside % |
Base case % |
Downside % |
Extreme downside % |
Weighted average % |
|
|
Upside % |
Base case % |
Downside % |
Extreme downside % |
Weighted average % |
|
2026 |
6.4 |
0.7 |
(4.3) |
(5.9) |
0.1 |
|
2026 |
13.8 |
(2.5) |
(20.9) |
(39.0) |
(7.4) |
|
2027 |
7.6 |
(1.8) |
(6.6) |
(12.4) |
(1.8) |
|
2027 |
5.6 |
5.2 |
8.1 |
4.8 |
5.7 |
|
2028 |
5.3 |
(0.5) |
(0.7) |
(12.0) |
(0.4) |
|
2028 |
3.5 |
5.2 |
12.9 |
18.1 |
7.2 |
|
2029 |
5.3 |
3.9 |
4.9 |
4.7 |
4.5 |
|
2029 |
3.5 |
5.3 |
11.5 |
15.3 |
6.9 |
|
2030 |
5.6 |
4.0 |
5.2 |
6.3 |
4.9 |
|
2030 |
3.1 |
5.3 |
10.4 |
13.3 |
6.5 |
|
|
||||||||||||
|
|
Commercial real estate price - four quarter change |
|
||||||||||
|
|
Upside % |
Base case % |
Downside % |
Extreme downside % |
Weighted average % |
|
|
|||||
|
2026 |
11.9 |
(2.6) |
(9.4) |
(15.0) |
(2.3) |
|
|
|||||
|
2027 |
4.9 |
(2.1) |
(9.5) |
(22.4) |
(4.1) |
|
|
|||||
|
2028 |
5.8 |
2.8 |
4.1 |
3.9 |
4.0 |
|
|
|||||
|
2029 |
4.3 |
2.0 |
4.1 |
5.8 |
3.4 |
|
|
|||||
|
2030 |
3.0 |
2.0 |
4.0 |
5.0 |
2.9 |
|
|
|||||
Capital and risk management continued
Credit risk continued
Economic drivers continued
Worst points
|
|
2026 |
|
2025 |
||||||||
|
|
|
|
Extreme Downside % |
|
Weighted Average % |
|
|
|
Extreme Downside % |
|
Weighted Average % |
|
|
Downside % |
Quarter |
Quarter |
|
Downside % |
Quarter |
Quarter |
||||
|
GDP |
(2.3) |
Q2 2027 |
(4.8) |
Q2 2027 |
- |
|
- |
Q4 2027 |
(3.8) |
Q4 2026 |
- |
|
Unemployment rate - peak |
6.5 |
Q1 2028 |
8.5 |
Q2 2028 |
5.8 |
|
6.2 |
Q4 2027 |
8.5 |
Q4 2027 |
5.6 |
|
House price index |
(12.7) |
Q3 2028 |
(27.6) |
Q1 2029 |
(2.6) |
|
(2.4) |
Q2 2028 |
(25.9) |
Q2 2028 |
- |
|
Commercial real estate price |
(18.0) |
Q4 2027 |
(35.0) |
Q1 2028 |
(6.3) |
|
(7.3) |
Q2 2027 |
(33.3) |
Q3 2027 |
- |
|
Consumer price index |
|
|
|
|
|
|
|
|
|
|
|
|
- highest four quarter change |
1.1 |
Q1 2026 |
10.0 |
Q1 2027 |
3.7 |
|
3.8 |
Q3 2025 |
3.8 |
Q3 2025 |
3.8 |
|
Bank of England base rate - extreme level |
1.5 |
Q1 2026 |
7.0 |
Q1 2027 |
3.9 |
|
2.0 |
Q1 2025 |
0.1 |
Q1 2025 |
2.8 |
|
Stock price index |
(22.7) |
Q1 2027 |
(44.8) |
Q1 2027 |
(7.6) |
|
(6.7) |
Q4 2026 |
(47.7) |
Q4 2026 |
- |
(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.
Capital and risk management continued
Credit risk continued
Segment analysis - portfolio summary
The table below shows gross loans and ECL, by segment and stage, within the scope of the IFRS 9 ECL framework.
|
|
31 March 2026 |
|
31 December 2025 |
||||||||
|
|
|
Private Banking |
|
|
|
|
|
Private Banking |
|
|
|
|
|
Retail |
& Wealth |
Commercial |
Central items |
|
|
Retail |
& Wealth |
Commercial |
Central items |
|
|
|
Banking |
Management |
& Institutional |
& other |
Total |
|
Banking |
Management |
& Institutional |
& other |
Total |
|
|
£m |
£m |
£m |
£m |
£m |
|
£m |
£m |
£m |
£m |
£m |
|
Loans - amortised cost and FVOCI (1,2) |
|
|
|||||||||
|
Stage 1 |
198,995 |
17,621 |
140,577 |
40,467 |
397,660 |
|
196,325 |
17,552 |
138,769 |
34,005 |
386,651 |
|
Stage 2 |
19,553 |
1,112 |
21,151 |
49 |
41,865 |
|
19,113 |
1,115 |
18,289 |
65 |
38,582 |
|
Stage 3 |
2,424 |
378 |
2,050 |
2 |
4,854 |
|
2,231 |
348 |
2,102 |
2 |
4,683 |
|
Of which: individual |
- |
324 |
1,081 |
- |
1,405 |
|
- |
276 |
1,180 |
- |
1,456 |
|
Of which: collective |
2,424 |
54 |
969 |
2 |
3,449 |
|
2,231 |
72 |
922 |
2 |
3,227 |
|
Total |
220,972 |
19,111 |
163,778 |
40,518 |
444,379 |
|
217,669 |
19,015 |
159,160 |
34,072 |
429,916 |
|
ECL provisions (3) |
|
|
|||||||||
|
Stage 1 |
334 |
15 |
289 |
7 |
645 |
|
335 |
13 |
256 |
10 |
614 |
|
Stage 2 |
467 |
14 |
372 |
1 |
854 |
|
424 |
13 |
357 |
2 |
796 |
|
Stage 3 |
1,151 |
55 |
1,037 |
1 |
2,244 |
|
1,075 |
50 |
1,048 |
2 |
2,175 |
|
Of which: individual |
- |
55 |
540 |
- |
595 |
|
- |
50 |
548 |
- |
598 |
|
Of which: collective |
1,151 |
- |
497 |
1 |
1,649 |
|
1,075 |
- |
500 |
2 |
1,577 |
|
Total |
1,952 |
84 |
1,698 |
9 |
3,743 |
|
1,834 |
76 |
1,661 |
14 |
3,585 |
|
ECL provisions coverage (4) |
|
|
|||||||||
|
Stage 1 (%) |
0.17 |
0.09 |
0.21 |
0.02 |
0.16 |
|
0.17 |
0.07 |
0.18 |
0.03 |
0.16 |
|
Stage 2 (%) |
2.39 |
1.26 |
1.76 |
2.04 |
2.04 |
|
2.22 |
1.17 |
1.95 |
3.08 |
2.06 |
|
Stage 3 (%) |
47.48 |
14.55 |
50.59 |
50.00 |
46.23 |
|
48.18 |
14.37 |
49.86 |
100.00 |
46.44 |
|
Total |
0.88 |
0.44 |
1.04 |
0.02 |
0.84 |
|
0.84 |
0.40 |
1.04 |
0.04 |
0.83 |
(1) The table shows gross loans only and excludes amounts that were outside the scope of the ECL framework. Other financial assets within the scope of the IFRS 9 ECL framework were cash and balances at central banks totalling £78.0 billion (31 December 2025 - £84.1 billion) and debt securities of £81.5 billion (31 December 2025 - £78.4 billion).
(2) Fair value through other comprehensive income (FVOCI). Includes loans to customers and banks.
(3) Includes £7 million (31 December 2025 - £6 million) related to assets classified as FVOCI and £0.1 billion (31 December 2025 - £0.1 billion) related to off-balance sheet exposures.
(4) ECL provisions coverage is calculated as ECL provisions, including ECL for other non-loan assets and unutilised exposure, divided by loans - amortised cost and FVOCI.
Capital and risk management continued
Credit risk continued
Segment analysis - loans
· Retail Banking - Year-to-date balance sheet expansion was primarily attributed to growth in the mortgage portfolio. Asset quality remained consistent throughout Q1 2026, underscoring sustained customer resilience and disciplined risk management. Although portfolio performance was stable, ECL coverage for Retail Banking increased compared to 31 December 2025, due to updates in economic scenarios that incorporate increased global economic uncertainty due to the Middle East conflict. Overall, default rates held steady, however, unsecured flows into Stage 3 increased during the quarter, largely as a result of strategic credit card portfolio growth and seasoning since 2022.
· Commercial & Institutional - Coverage increased modestly with rises in both ECL and balances. Strong underlying portfolio performance was offset by the impact of new economic scenarios, which led to an increase in Stage 1 and Stage 2 ECL. Stage 3 charges and flows to default remained subdued.
Movement in ECL provision
The table below shows the main ECL provision movements during the year.
|
|
ECL provision |
|
|
£m |
|
At 1 January 2026 |
3,585 |
|
Changes in economic forecasts |
140 |
|
Changes in risk metrics and exposure: Stage 1 and Stage 2 |
(16) |
|
Changes in risk metrics and exposure: Stage 3 |
219 |
|
Judgemental changes: changes in post model adjustments for Stage 1, |
|
|
Stage 2 and Stage 3 |
(34) |
|
Write-offs and other |
(151) |
|
At 31 March 2026 |
3,743 |
· ECL increased in Q1 2026, largely driven by updates to economic scenarios and associated weights to reflect increased geopolitical risk and weaker equity markets, with an adaptation to the extreme downside scenario to further incorporate physical and transition climate risks.
· Stage 3 charges in Q1 2026 remain broadly stable overall with increases in Personal Stage 3 charges driven by seasoning of post-2022 unsecured lending growth, in line with expectations.
· Judgemental ECL post model adjustments decreased by £34 million to £262 million (31 December 2025 - £296 million) representing 7.0% of total ECL (31 December 2025 - 8.3%), reflecting that for Non-Personal portfolios, more economic uncertainty is being captured by the models.
Capital and risk management continued
Credit risk continued
ECL post model adjustments
The table below shows ECL post model adjustments.
|
|
|
Private Banking |
|
|
|
|
|
Retail Banking |
& Wealth |
Commercial |
|
|
|
|
Mortgages |
Other |
Management |
& Institutional |
Total |
|
31 March 2026 |
£m |
£m |
£m |
£m |
£m |
|
Deferred model calibrations |
- |
- |
1 |
12 |
13 |
|
Economic uncertainty |
45 |
41 |
9 |
125 |
220 |
|
Other adjustments |
- |
20 |
- |
9 |
29 |
|
Total |
45 |
61 |
10 |
146 |
262 |
|
Of which: |
|
|
|
|
|
|
- Stage 1 |
37 |
35 |
3 |
53 |
128 |
|
- Stage 2 |
8 |
22 |
7 |
93 |
130 |
|
- Stage 3 |
- |
4 |
- |
- |
4 |
|
|
|||||
|
31 December 2025 |
|
|
|
|
|
|
Deferred model calibrations |
- |
- |
1 |
14 |
15 |
|
Economic uncertainty |
44 |
42 |
11 |
149 |
246 |
|
Other adjustments |
- |
19 |
- |
16 |
35 |
|
Total |
44 |
61 |
12 |
179 |
296 |
|
Of which: |
|
|
|
|
|
|
- Stage 1 |
33 |
38 |
4 |
73 |
148 |
|
- Stage 2 |
11 |
20 |
8 |
106 |
145 |
|
- Stage 3 |
- |
3 |
- |
- |
3 |
Post model adjustments decreased since 31 December 2025 reflecting that for Non-Personal portfolios, the latest economic scenarios are capturing more economic uncertainty.
· Retail Banking - As at 31 March 2026, the post model adjustment for economic uncertainty remained stable at £86 million (31 December 2025 - £86 million). The cost of living post model adjustment continued to address the risk in segments of the Retail Banking portfolio that were more susceptible to affordability challenges. It focused on key affordability factors, including overindebted borrowers, poor credit card affordability status and lower income customers in fuel poverty.
· A £20 million post model adjustment remains as a judgemental measure while additional loss data is accumulated on the recently migrated Sainsbury's Bank lending portfolio.
· Commercial & Institutional - As at 31 March 2026, the post model adjustment for economic uncertainty decreased to £125 million (31 December 2025 - £149 million), reflecting a greater element of economic uncertainty being captured by the models.
· The remaining £21 million (31 December 2025 - £30 million) of post model adjustments were for deferred model calibrations relating to refinance risk and to mitigate the effect of operational timing delays in the identification and flagging of a significant increase in credit risk.
·
Capital and risk management continued
Credit risk continued
Measurement uncertainty and ECL sensitivity analysis
The recognition and measurement of ECL is complex and requires significant judgement and estimation, especially during times of economic volatility and uncertainty. This includes the formulation and incorporation of multiple forward-looking economic conditions into ECL to meet the measurement objectives of IFRS 9. The ECL provision is sensitive to the model inputs and economic assumptions used in the estimation.
Simulations were conducted to assess the impact of various economic scenarios, including base case, upside, downside and extreme downside scenarios. The potential ECL impacts reflected the simulated impact as at 31 March 2026. In the simulations, NatWest Group assumed that the economic macro variables associated with each scenario would replace the existing base case economic assumptions, giving them a 100% probability weighting and therefore serving as a single economic scenario. These scenarios were applied to all modelled portfolios with the simulation affecting both probability of defaults and loss given defaults. Post model adjustments included in the ECL estimates were adjusted in line with the modelled ECL movements. However, adjustments that were judgemental in nature, such as those for deferred model calibrations and economic uncertainty, were not automatically recalculated. Instead, they will be re-evaluated by management through ECL governance for any new economic scenario outlook.
As expected, the scenarios created varying impacts on ECL by portfolio, and these impacts were deemed reasonable. The simulations assumed that existing modelled relationships between key economic variables and drivers would hold. However, in practice, other factors such as potential changes in customer behaviour and policy changes could also impact the wider availability of credit.
The focus of the simulations was on ECL provisioning requirements for performing exposures in Stage 1 and Stage 2. The simulations were run on a stand-alone basis and were independent of each other. Scenario impacts on SICR were considered when evaluating the ECL movements of Stage 1 and Stage 2.
Stage 3 provisions are not subject to the same level of measurement uncertainty, as default is an observed event as at the balance sheet date and defaulted loss given default is typically more impacted by borrower specific factors rather than economics. Therefore, Stage 3 provisions were not considered in this analysis.
|
|
|
|
|
|
Extreme |
|
|
|
Base |
Upside |
Downside |
downside |
|
31 March 2026 |
Actual |
scenario |
scenario |
scenario |
scenario |
|
Total Stage 1 and Stage 2 ECL (£m) |
1,499 |
1,400 |
1,155 |
1,598 |
3,177 |
|
Variance to actual total Stage 1 and |
|
||||
|
Stage 2 ECL (£m) |
- |
(99) |
(344) |
99 |
1,678 |
|
|
|||||
|
31 December 2025 |
|
|
|
|
|
|
Total Stage 1 and Stage 2 ECL (£m) |
1,410 |
1,301 |
1,186 |
1,464 |
2,660 |
|
Variance to actual total Stage 1 and |
|
||||
|
Stage 2 ECL (£m) |
- |
(109) |
(224) |
54 |
1,250 |
· If the economics were as negative as observed in the extreme downside (i.e. 100% probability weighting), total Stage 1 and Stage 2 ECL was simulated to increase by £1.7 billion (112%). This was mainly driven by the Non-Personal portfolios with significant falls in both the stock index and commercial real estate prices.
· For the downside scenario (with 100% weighting), total Stage 1 and Stage 2 ECL was simulated to increase by £0.1 billion (7%) with smaller movements in key economic variables.
Capital and risk management continued
Credit risk continued
Sector analysis - portfolio summary
The table below shows financial assets and off-balance sheet exposures gross of ECL and related ECL provisions, impairment and past due by sector, asset quality and geographical region.
|
|
Personal |
|
Non-Personal |
|
||||||
|
|
|
Credit |
Other |
|
|
Corporate and |
Financial |
|
|
|
|
|
Mortgages (1) |
cards |
personal |
Total |
|
other |
institutions (2) |
Sovereign |
Total |
Total |
|
31 March 2026 |
£m |
£m |
£m |
£m |
|
£m |
£m |
£m |
£m |
£m |
|
Loans by geography |
218,516 |
8,154 |
11,564 |
238,234 |
|
120,712 |
84,068 |
1,365 |
206,145 |
444,379 |
|
- UK |
218,511 |
8,154 |
11,564 |
238,229 |
|
102,155 |
49,899 |
548 |
152,602 |
390,831 |
|
- Other Europe |
5 |
- |
- |
5 |
|
7,184 |
19,384 |
354 |
26,922 |
26,927 |
|
- RoW |
- |
- |
- |
- |
|
11,373 |
14,785 |
463 |
26,621 |
26,621 |
|
Loans by asset quality (3) |
218,516 |
8,154 |
11,564 |
238,234 |
|
120,712 |
84,068 |
1,365 |
206,145 |
444,379 |
|
- AQ1-AQ4 |
121,924 |
109 |
884 |
122,917 |
|
48,796 |
77,775 |
937 |
127,508 |
250,425 |
|
- AQ5-AQ8 |
93,999 |
7,618 |
9,449 |
111,066 |
|
69,676 |
6,138 |
137 |
75,951 |
187,017 |
|
- AQ9 |
1,141 |
154 |
222 |
1,517 |
|
280 |
12 |
276 |
568 |
2,085 |
|
- AQ10 |
1,452 |
273 |
1,009 |
2,734 |
|
1,960 |
143 |
15 |
2,118 |
4,852 |
|
Loans by stage |
218,516 |
8,154 |
11,564 |
238,234 |
|
120,712 |
84,068 |
1,365 |
206,145 |
444,379 |
|
- Stage 1 |
200,921 |
5,705 |
8,988 |
215,614 |
|
97,382 |
83,590 |
1,074 |
182,046 |
397,660 |
|
- Stage 2 |
16,141 |
2,176 |
1,567 |
19,884 |
|
21,370 |
335 |
276 |
21,981 |
41,865 |
|
- Stage 3 |
1,454 |
273 |
1,009 |
2,736 |
|
1,960 |
143 |
15 |
2,118 |
4,854 |
|
- Of which: individual |
204 |
1 |
26 |
231 |
|
1,021 |
138 |
15 |
1,174 |
1,405 |
|
- Of which: collective |
1,250 |
272 |
983 |
2,505 |
|
939 |
5 |
- |
944 |
3,449 |
|
Loans - past due analysis |
218,516 |
8,154 |
11,564 |
238,234 |
|
120,712 |
84,068 |
1,365 |
206,145 |
444,379 |
|
- Not past due |
215,831 |
7,809 |
10,526 |
234,166 |
|
117,006 |
83,845 |
1,353 |
202,204 |
436,370 |
|
- Past due 1-30 days |
1,413 |
74 |
94 |
1,581 |
|
2,347 |
173 |
- |
2,520 |
4,101 |
|
- Past due 31-90 days |
468 |
88 |
115 |
671 |
|
679 |
47 |
12 |
738 |
1,409 |
|
- Past due 91-180 days |
298 |
71 |
104 |
473 |
|
52 |
- |
- |
52 |
525 |
|
- Past due >180 days |
506 |
112 |
725 |
1,343 |
|
628 |
3 |
- |
631 |
1,974 |
|
Loans - Stage 2 |
16,141 |
2,176 |
1,567 |
19,884 |
|
21,370 |
335 |
276 |
21,981 |
41,865 |
|
- Not past due |
14,809 |
2,073 |
1,448 |
18,330 |
|
20,001 |
324 |
276 |
20,601 |
38,931 |
|
- Past due 1-30 days |
1,077 |
44 |
49 |
1,170 |
|
1,052 |
3 |
- |
1,055 |
2,225 |
|
- Past due 31-90 days |
255 |
59 |
70 |
384 |
|
317 |
8 |
- |
325 |
709 |
|
Weighted average life |
|
|
|
|
|
|
|
|
|
|
|
- ECL measurement (years) |
9 |
4 |
6 |
5 |
|
6 |
4 |
nm |
6 |
6 |
|
ECL provisions by geography |
281 |
564 |
1,149 |
1,994 |
|
1,581 |
149 |
19 |
1,749 |
3,743 |
|
- UK |
280 |
564 |
1,149 |
1,993 |
|
1,394 |
100 |
6 |
1,500 |
3,493 |
|
- Other Europe |
1 |
- |
- |
1 |
|
119 |
8 |
- |
127 |
128 |
|
- RoW |
- |
- |
- |
- |
|
68 |
41 |
13 |
122 |
122 |
For the notes to this table refer to page 31.
Capital and risk management continued
Credit risk continued
Sector analysis - portfolio summary continued
|
|
Personal |
|
Non-Personal |
|
||||||
|
|
|
Credit |
Other |
|
|
Corporate and |
Financial |
|
|
|
|
|
Mortgages (1) |
cards |
personal |
Total |
|
other |
institutions (2) |
Sovereign |
Total |
Total |
|
31 March 2026 |
£m |
£m |
£m |
£m |
|
£m |
£m |
£m |
£m |
£m |
|
ECL provisions by stage |
281 |
564 |
1,149 |
1,994 |
|
1,581 |
149 |
19 |
1,749 |
3,743 |
|
- Stage 1 |
50 |
120 |
168 |
338 |
|
267 |
33 |
7 |
307 |
645 |
|
- Stage 2 |
37 |
224 |
207 |
468 |
|
374 |
7 |
5 |
386 |
854 |
|
- Stage 3 |
194 |
220 |
774 |
1,188 |
|
940 |
109 |
7 |
1,056 |
2,244 |
|
- Of which: individual |
16 |
1 |
13 |
30 |
|
452 |
106 |
7 |
565 |
595 |
|
- Of which: collective |
178 |
219 |
761 |
1,158 |
|
488 |
3 |
- |
491 |
1,649 |
|
ECL provisions coverage (%) |
0.13 |
6.92 |
9.94 |
0.84 |
|
1.31 |
0.18 |
1.39 |
0.85 |
0.84 |
|
- Stage 1 (%) |
0.02 |
2.10 |
1.87 |
0.16 |
|
0.27 |
0.04 |
0.65 |
0.17 |
0.16 |
|
- Stage 2 (%) |
0.23 |
10.29 |
13.21 |
2.35 |
|
1.75 |
2.09 |
1.81 |
1.76 |
2.04 |
|
- Stage 3 (%) |
13.34 |
80.59 |
76.71 |
43.42 |
|
47.96 |
76.22 |
46.67 |
49.86 |
46.23 |
|
Loans by residual maturity |
218,516 |
8,154 |
11,564 |
238,234 |
|
120,712 |
84,068 |
1,365 |
206,145 |
444,379 |
|
- ≤1 year |
2,468 |
1,771 |
2,671 |
6,910 |
|
33,527 |
60,712 |
807 |
95,046 |
101,956 |
|
- >1 and ≤5 year |
8,430 |
6,383 |
6,503 |
21,316 |
|
53,900 |
19,163 |
94 |
73,157 |
94,473 |
|
- >5 and ≤15 year |
43,532 |
- |
2,088 |
45,620 |
|
24,785 |
4,134 |
295 |
29,214 |
74,834 |
|
- >15 year |
164,086 |
- |
302 |
164,388 |
|
8,500 |
59 |
169 |
8,728 |
173,116 |
|
Other financial assets by asset quality (3) |
- |
- |
- |
- |
|
4,472 |
28,381 |
126,635 |
159,488 |
159,488 |
|
- AQ1-AQ4 |
- |
- |
- |
- |
|
4,463 |
28,291 |
126,635 |
159,389 |
159,389 |
|
- AQ5-AQ8 |
- |
- |
- |
- |
|
9 |
90 |
- |
99 |
99 |
|
Off-balance sheet |
16,216 |
23,157 |
7,499 |
46,872 |
|
77,466 |
23,929 |
409 |
101,804 |
148,676 |
|
- Loan commitments |
16,216 |
23,157 |
7,464 |
46,837 |
|
74,472 |
22,370 |
409 |
97,251 |
144,088 |
|
- Contingent liabilities |
- |
- |
35 |
35 |
|
2,994 |
1,559 |
- |
4,553 |
4,588 |
|
Off-balance sheet by asset quality (3) |
16,216 |
23,157 |
7,499 |
46,872 |
|
77,466 |
23,929 |
409 |
101,804 |
148,676 |
|
- AQ1-AQ4 |
15,309 |
403 |
6,087 |
21,799 |
|
49,497 |
21,732 |
43 |
71,272 |
93,071 |
|
- AQ5-AQ8 |
895 |
22,670 |
1,373 |
24,938 |
|
27,625 |
2,161 |
- |
29,786 |
54,724 |
|
- AQ9 |
2 |
13 |
10 |
25 |
|
28 |
- |
366 |
394 |
419 |
|
- AQ10 |
10 |
71 |
29 |
110 |
|
316 |
36 |
- |
352 |
462 |
For the notes to this table refer to page 31.
Capital and risk management continued
Credit risk continued
Sector analysis - portfolio summary continued
|
|
Personal |
|
Non-Personal |
|
||||||
|
|
Credit |
Other |
|
|
Corporate and |
Financial |
|
|
|
|
|
|
Mortgages (1) |
cards |
personal |
Total |
|
other |
institutions (2) |
Sovereign |
Total |
Total |
|
31 December 2025 |
£m |
£m |
£m |
£m |
|
£m |
£m |
£m |
£m |
£m |
|
Loans by geography |
215,229 |
8,311 |
11,401 |
234,941 |
|
118,229 |
74,456 |
2,290 |
194,975 |
429,916 |
|
- UK |
215,220 |
8,311 |
11,401 |
234,932 |
|
101,441 |
45,700 |
1,477 |
148,618 |
383,550 |
|
- Other Europe |
9 |
- |
- |
9 |
|
7,010 |
14,059 |
351 |
21,420 |
21,429 |
|
- RoW |
- |
- |
- |
- |
|
9,778 |
14,697 |
462 |
24,937 |
24,937 |
|
Loans by asset quality (3) |
215,229 |
8,311 |
11,401 |
234,941 |
|
118,229 |
74,456 |
2,290 |
194,975 |
429,916 |
|
- AQ1-AQ4 |
120,519 |
117 |
877 |
121,513 |
|
46,282 |
68,774 |
1,879 |
116,935 |
238,448 |
|
- AQ5-AQ8 |
92,296 |
7,817 |
9,360 |
109,473 |
|
69,665 |
5,535 |
131 |
75,331 |
184,804 |
|
- AQ9 |
1,075 |
135 |
208 |
1,418 |
|
292 |
6 |
265 |
563 |
1,981 |
|
- AQ10 |
1,339 |
242 |
956 |
2,537 |
|
1,990 |
141 |
15 |
2,146 |
4,683 |
|
Loans by stage |
215,229 |
8,311 |
11,401 |
234,941 |
|
118,229 |
74,456 |
2,290 |
194,975 |
429,916 |
|
- Stage 1 |
197,939 |
5,988 |
8,977 |
212,904 |
|
97,779 |
73,959 |
2,009 |
173,747 |
386,651 |
|
- Stage 2 |
15,951 |
2,081 |
1,468 |
19,500 |
|
18,460 |
356 |
266 |
19,082 |
38,582 |
|
- Stage 3 |
1,339 |
242 |
956 |
2,537 |
|
1,990 |
141 |
15 |
2,146 |
4,683 |
|
- Of which: individual |
167 |
1 |
25 |
193 |
|
1,112 |
136 |
15 |
1,263 |
1,456 |
|
- Of which: collective |
1,172 |
241 |
931 |
2,344 |
|
878 |
5 |
- |
883 |
3,227 |
|
Loans - past due analysis |
215,229 |
8,311 |
11,401 |
234,941 |
|
118,229 |
74,456 |
2,290 |
194,975 |
429,916 |
|
- Not past due |
212,492 |
7,993 |
10,388 |
230,873 |
|
114,895 |
74,257 |
2,275 |
191,427 |
422,300 |
|
- Past due 1-30 days |
1,510 |
71 |
92 |
1,673 |
|
2,261 |
137 |
- |
2,398 |
4,071 |
|
- Past due 31-90 days |
469 |
86 |
130 |
685 |
|
274 |
8 |
- |
282 |
967 |
|
- Past due 91-180 days |
275 |
62 |
104 |
441 |
|
110 |
6 |
- |
116 |
557 |
|
- Past due >180 days |
483 |
99 |
687 |
1,269 |
|
689 |
48 |
15 |
752 |
2,021 |
|
Loans - Stage 2 |
15,951 |
2,081 |
1,468 |
19,500 |
|
18,460 |
356 |
266 |
19,082 |
38,582 |
|
- Not past due |
14,521 |
1,979 |
1,335 |
17,835 |
|
17,605 |
343 |
266 |
18,214 |
36,049 |
|
- Past due 1-30 days |
1,138 |
41 |
48 |
1,227 |
|
610 |
5 |
- |
615 |
1,842 |
|
- Past due 31-90 days |
292 |
61 |
85 |
438 |
|
245 |
8 |
- |
253 |
691 |
|
Weighted average life |
|
|||||||||
|
- ECL measurement (years) |
9 |
4 |
6 |
5 |
|
7 |
4 |
nm |
6 |
6 |
|
ECL provisions by geography |
272 |
520 |
1,088 |
1,880 |
|
1,532 |
155 |
18 |
1,705 |
3,585 |
|
- UK |
270 |
520 |
1,088 |
1,878 |
|
1,367 |
103 |
5 |
1,475 |
3,353 |
|
- Other Europe |
2 |
- |
- |
2 |
|
104 |
10 |
1 |
115 |
117 |
|
- RoW |
- |
- |
- |
- |
|
61 |
42 |
12 |
115 |
115 |
nm = not meaningful
For the notes to this table refer to the following page.
Capital and risk management continued
Credit risk continued
Sector analysis - portfolio summary continued
|
|
Personal |
|
Non-Personal |
|
||||||
|
|
|
Credit |
Other |
|
|
Corporate and |
Financial |
|
|
|
|
|
Mortgages (1) |
cards |
personal |
Total |
|
other |
institutions (2) |
Sovereign |
Total |
Total |
|
31 December 2025 |
£m |
£m |
£m |
£m |
|
£m |
£m |
£m |
£m |
£m |
|
ECL provisions by stage |
272 |
520 |
1,088 |
1,880 |
|
1,532 |
155 |
18 |
1,705 |
3,585 |
|
- Stage 1 |
45 |
125 |
172 |
342 |
|
228 |
37 |
7 |
272 |
614 |
|
- Stage 2 |
36 |
205 |
185 |
426 |
|
360 |
5 |
5 |
370 |
796 |
|
- Stage 3 |
191 |
190 |
731 |
1,112 |
|
944 |
113 |
6 |
1,063 |
2,175 |
|
- Of which: individual |
16 |
1 |
12 |
29 |
|
453 |
110 |
6 |
569 |
598 |
|
- Of which: collective |
175 |
189 |
719 |
1,083 |
|
491 |
3 |
- |
494 |
1,577 |
|
ECL provisions coverage (%) |
0.13 |
6.26 |
9.54 |
0.80 |
|
1.30 |
0.21 |
0.79 |
0.87 |
0.83 |
|
- Stage 1 (%) |
0.02 |
2.09 |
1.92 |
0.16 |
|
0.23 |
0.05 |
0.35 |
0.16 |
0.16 |
|
- Stage 2 (%) |
0.23 |
9.85 |
12.60 |
2.18 |
|
1.95 |
1.40 |
1.88 |
1.94 |
2.06 |
|
- Stage 3 (%) |
14.26 |
78.51 |
76.46 |
43.83 |
|
47.44 |
80.14 |
40.00 |
49.53 |
46.44 |
|
Loans by residual maturity |
215,229 |
8,311 |
11,401 |
234,941 |
|
118,229 |
74,456 |
2,290 |
194,975 |
429,916 |
|
- ≤1 year |
2,764 |
1,856 |
2,736 |
7,356 |
|
33,768 |
52,130 |
1,765 |
87,663 |
95,019 |
|
- >1 and ≤5 year |
8,332 |
6,452 |
6,898 |
21,682 |
|
51,723 |
18,262 |
77 |
70,062 |
91,744 |
|
- >5 and ≤15 year |
42,759 |
3 |
1,772 |
44,534 |
|
24,136 |
4,016 |
290 |
28,442 |
72,976 |
|
- >15 year |
161,374 |
- |
(5) |
161,369 |
|
8,602 |
48 |
158 |
8,808 |
170,177 |
|
Other financial assets by asset quality (3) |
- |
- |
- |
- |
|
4,513 |
28,490 |
129,532 |
162,535 |
162,535 |
|
- AQ1-AQ4 |
- |
- |
- |
- |
|
4,506 |
28,301 |
129,532 |
162,339 |
162,339 |
|
- AQ5-AQ8 |
- |
- |
- |
- |
|
7 |
189 |
- |
196 |
196 |
|
Off-balance sheet |
14,799 |
22,696 |
7,550 |
45,045 |
|
78,604 |
23,031 |
501 |
102,136 |
147,181 |
|
- Loan commitments |
14,799 |
22,696 |
7,514 |
45,009 |
|
75,723 |
21,555 |
501 |
97,779 |
142,788 |
|
- Contingent liabilities |
- |
- |
36 |
36 |
|
2,881 |
1,476 |
- |
4,357 |
4,393 |
|
Off-balance sheet by asset quality (3) |
14,799 |
22,696 |
7,550 |
45,045 |
|
78,604 |
23,031 |
501 |
102,136 |
147,181 |
|
- AQ1-AQ4 |
13,926 |
415 |
6,140 |
20,481 |
|
50,709 |
21,030 |
114 |
71,853 |
92,334 |
|
- AQ5-AQ8 |
859 |
22,205 |
1,283 |
24,347 |
|
27,525 |
1,924 |
12 |
29,461 |
53,808 |
|
- AQ9 |
4 |
11 |
12 |
27 |
|
61 |
- |
375 |
436 |
463 |
|
- AQ10 |
10 |
65 |
115 |
190 |
|
309 |
77 |
- |
386 |
576 |
(1) Includes a portion of Private Banking & Wealth Management lending secured against residential real estate, in line with ECL calculation methodology. Private Banking & Wealth Management and RBS International mortgages are reported in UK, reflecting the country of lending origination and includes crown dependencies.
(2) Included within financial institutions is funds lending of £21.0 billion, including £16.7 billion subscription lines financing and £4.3 billion net asset value financing, and £11.5 billion of securitisation classified as private credit securitisation. Private credit securitisation is defined as senior securitisation financing secured on diversified portfolios of private loans to corporates.
(3) AQ bandings are based on Basel PDs and mapping is as follows:
|
Internal asset quality band |
Probability of default range |
Indicative S&P rating |
|
Internal asset quality band |
|
Probability of default range |
Indicative S&P rating |
|
AQ1 |
0% - 0.034% |
AAA to AA |
|
AQ6 |
|
1.076% - 2.153% |
BB- to B+ |
|
AQ2 |
0.034% - 0.048% |
AA to AA- |
|
AQ7 |
|
2.153% - 6.089% |
B+ to B |
|
AQ3 |
0.048% - 0.095% |
A+ to A |
|
AQ8 |
|
6.089% - 17.222% |
B- to CCC+ |
|
AQ4 |
0.095% - 0.381% |
BBB+ to BBB- |
|
AQ9 |
|
17.222% - 100% |
CCC to C |
|
AQ5 |
0.381% - 1.076% |
BB+ to BB |
|
AQ10 |
|
100% |
D |
Capital and risk management continued
Credit risk continued
Sector analysis - portfolio summary continued
The table below shows ECL by stage, for the Personal portfolio and Non-Personal portfolio, including the three largest borrowing sector clusters included in corporate and other.
|
|
Loans - amortised cost and FVOCI |
|
Off-balance sheet |
|
ECL provisions |
|||||||
|
|
|
|
Loan |
Contingent |
|
|
||||||
|
|
Stage 1 |
Stage 2 |
Stage 3 |
Total |
|
commitments |
liabilities |
|
Stage 1 |
Stage 2 |
Stage 3 |
Total |
|
31 March 2026 |
£m |
£m |
£m |
£m |
|
£m |
£m |
|
£m |
£m |
£m |
£m |
|
Personal |
215,614 |
19,884 |
2,736 |
238,234 |
|
46,837 |
35 |
|
338 |
468 |
1,188 |
1,994 |
|
Mortgages (1) |
200,921 |
16,141 |
1,454 |
218,516 |
|
16,216 |
- |
|
50 |
37 |
194 |
281 |
|
Credit cards |
5,705 |
2,176 |
273 |
8,154 |
|
23,157 |
- |
|
120 |
224 |
220 |
564 |
|
Other personal |
8,988 |
1,567 |
1,009 |
11,564 |
|
7,464 |
35 |
|
168 |
207 |
774 |
1,149 |
|
Non-Personal |
182,046 |
21,981 |
2,118 |
206,145 |
|
97,251 |
4,553 |
|
307 |
386 |
1,056 |
1,749 |
|
Financial institutions (2) |
83,590 |
335 |
143 |
84,068 |
|
22,370 |
1,559 |
|
33 |
7 |
109 |
149 |
|
Sovereign |
1,074 |
276 |
15 |
1,365 |
|
409 |
- |
|
7 |
5 |
7 |
19 |
|
Corporate and other |
97,382 |
21,370 |
1,960 |
120,712 |
|
74,472 |
2,994 |
|
267 |
374 |
940 |
1,581 |
|
Of which: |
|
|||||||||||
|
Commercial real estate |
18,586 |
1,169 |
259 |
20,014 |
|
5,724 |
134 |
|
67 |
19 |
106 |
192 |
|
Mobility and logistics |
12,864 |
4,713 |
84 |
17,661 |
|
10,472 |
548 |
|
25 |
48 |
40 |
113 |
|
Consumer industries |
12,364 |
3,421 |
395 |
16,180 |
|
11,004 |
512 |
|
37 |
72 |
181 |
290 |
|
Total |
397,660 |
41,865 |
4,854 |
444,379 |
|
144,088 |
4,588 |
|
645 |
854 |
2,244 |
3,743 |
|
31 December 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal |
212,904 |
19,500 |
2,537 |
234,941 |
|
45,009 |
36 |
|
342 |
426 |
1,112 |
1,880 |
|
Mortgages (1) |
197,939 |
15,951 |
1,339 |
215,229 |
|
14,799 |
- |
|
45 |
36 |
191 |
272 |
|
Credit cards |
5,988 |
2,081 |
242 |
8,311 |
|
22,696 |
- |
|
125 |
205 |
190 |
520 |
|
Other personal |
8,977 |
1,468 |
956 |
11,401 |
|
7,514 |
36 |
|
172 |
185 |
731 |
1,088 |
|
Non-Personal |
173,747 |
19,082 |
2,146 |
194,975 |
|
97,779 |
4,357 |
|
272 |
370 |
1,063 |
1,705 |
|
Financial institutions (2) |
73,959 |
356 |
141 |
74,456 |
|
21,555 |
1,476 |
|
37 |
5 |
113 |
155 |
|
Sovereign |
2,009 |
266 |
15 |
2,290 |
|
501 |
- |
|
7 |
5 |
6 |
18 |
|
Corporate and other |
97,779 |
18,460 |
1,990 |
118,229 |
|
75,723 |
2,881 |
|
228 |
360 |
944 |
1,532 |
|
Of which: |
|
|||||||||||
|
Commercial real estate |
17,838 |
1,272 |
294 |
19,404 |
|
6,646 |
162 |
|
55 |
22 |
120 |
197 |
|
Mobility and logistics |
13,021 |
4,312 |
81 |
17,414 |
|
10,194 |
520 |
|
24 |
45 |
40 |
109 |
|
Consumer industries |
12,875 |
2,912 |
389 |
16,176 |
|
11,149 |
496 |
|
33 |
68 |
199 |
300 |
|
Total |
386,651 |
38,582 |
4,683 |
429,916 |
|
142,788 |
4,393 |
|
614 |
796 |
2,175 |
3,585 |
(1) As at 31 March 2026, £145.8 billion, 66.7%, of the total residential mortgages portfolio had Energy Performance Certificate (EPC) data available (31 December 2025 - £144.2 billion, 67%). Of which, 49.5% were rated as EPC A to C (31 December 2025 - 48.8%).
(2) Includes transactions, such as securitisations, where the underlying risk may be in other sectors.
Condensed consolidated income statement
for the period ended 31 March 2026 (unaudited)
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Interest receivable |
6,421 |
6,543 |
6,315 |
|
Interest payable |
(3,027) |
(3,102) |
(3,289) |
|
Net interest income |
3,394 |
3,441 |
3,026 |
|
Fees and commissions receivable |
832 |
835 |
802 |
|
Fees and commissions payable |
(200) |
(181) |
(189) |
|
Trading income |
153 |
138 |
284 |
|
Other operating income |
179 |
91 |
57 |
|
Non-interest income |
964 |
883 |
954 |
|
Total income |
4,358 |
4,324 |
3,980 |
|
Staff costs |
(1,086) |
(981) |
(1,069) |
|
Premises and equipment |
(312) |
(385) |
(294) |
|
Other administrative expenses |
(364) |
(583) |
(350) |
|
Depreciation and amortisation |
(280) |
(299) |
(266) |
|
Operating expenses |
(2,042) |
(2,248) |
(1,979) |
|
Profit before impairment losses |
2,316 |
2,076 |
2,001 |
|
Impairment losses |
(283) |
(136) |
(189) |
|
Operating profit before tax |
2,033 |
1,940 |
1,812 |
|
Tax charge |
(526) |
(462) |
(471) |
|
Profit for the period |
1,507 |
1,478 |
1,341 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Ordinary shareholders |
1,432 |
1,393 |
1,252 |
|
Paid-in equity holders |
73 |
84 |
90 |
|
Non-controlling interests |
2 |
1 |
(1) |
|
|
1,507 |
1,478 |
1,341 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to ordinary shareholders - basic |
17.9p |
17.4p |
15.5p |
|
Earnings per share attributable to ordinary shareholders - diluted |
17.8p |
17.2p |
15.4p |
Condensed consolidated statement of comprehensive income
for the period ended 31 March 2026 (unaudited)
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Profit for the period |
1,507 |
1,478 |
1,341 |
|
Items that do not qualify for reclassification |
|
|
|
|
Remeasurement of retirement benefit schemes |
5 |
11 |
6 |
|
Changes in fair value of financial liabilities designated at fair value through profit or loss (FVTPL) due to changes in credit risk |
17 |
(6) |
4 |
|
FVOCI financial assets |
2 |
(14) |
14 |
|
Tax |
2 |
(6) |
2 |
|
|
26 |
(15) |
26 |
|
Items that do qualify for reclassification |
|
|
|
|
FVOCI financial assets |
32 |
66 |
34 |
|
Cash flow hedges (1) |
(168) |
190 |
183 |
|
Currency translation |
(87) |
5 |
(30) |
|
Tax |
32 |
(73) |
(62) |
|
|
(191) |
188 |
125 |
|
Other comprehensive (loss)/income after tax |
(165) |
173 |
151 |
|
Total comprehensive income for the period |
1,342 |
1,651 |
1,492 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Ordinary shareholders |
1,267 |
1,566 |
1,403 |
|
Paid-in equity holders |
73 |
84 |
90 |
|
Non-controlling interests |
2 |
1 |
(1) |
|
|
1,342 |
1,651 |
1,492 |
(1) Refer to footnote 3 and 4 of the condensed consolidated statement of changes in equity.
Condensed consolidated balance sheet
as at 31 March 2026 (unaudited)
|
|
31 March |
31 December |
|
|
2026 |
2025 |
|
|
£m |
£m |
|
Assets |
|
|
|
Cash and balances at central banks |
78,966 |
85,182 |
|
Trading assets |
56,817 |
46,537 |
|
Derivatives |
66,408 |
60,789 |
|
Settlement balances |
8,148 |
645 |
|
Loans to banks - amortised cost |
8,522 |
6,958 |
|
Loans to customers - amortised cost |
431,563 |
418,881 |
|
Other financial assets |
83,482 |
79,770 |
|
Intangible assets |
7,224 |
7,292 |
|
Other assets |
8,511 |
8,499 |
|
Total assets |
749,641 |
714,553 |
|
|
|
|
|
Liabilities |
|
|
|
Bank deposits |
48,153 |
44,092 |
|
Customer deposits |
445,461 |
442,998 |
|
Settlement balances |
9,941 |
942 |
|
Trading liabilities |
58,945 |
49,022 |
|
Derivatives |
59,471 |
53,974 |
|
Other financial liabilities |
70,214 |
67,599 |
|
Subordinated liabilities |
6,642 |
6,123 |
|
Notes in circulation |
3,113 |
3,164 |
|
Other liabilities |
4,030 |
4,026 |
|
Total liabilities |
705,970 |
671,940 |
|
|
|
|
|
Equity |
|
|
|
Ordinary shareholders' interests |
39,084 |
38,028 |
|
Other owners' interests |
4,571 |
4,571 |
|
Owners' equity |
43,655 |
42,599 |
|
Non-controlling interests |
16 |
14 |
|
Total equity |
43,671 |
42,613 |
|
|
|
|
|
Total liabilities and equity |
749,641 |
714,553 |
Condensed consolidated statement of changes in equity
for the period ended 31 March 2026 (unaudited)
|
|
Share |
|
Other |
|
Other reserves |
Total |
Non |
|
|||
|
|
capital and |
Paid-in |
statutory |
Retained |
|
Cash flow |
Foreign |
|
owners' |
controlling |
Total |
|
|
share premium |
equity |
reserves (2) |
earnings |
Fair value |
hedging (3,4) |
exchange |
Merger |
equity |
interests |
equity |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
At 1 January 2026 |
10,021 |
4,571 |
2,613 |
14,419 |
13 |
(752) |
833 |
10,881 |
42,599 |
14 |
42,613 |
|
Profit attributable to ordinary shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
and other equity owners |
|
|
|
1,505 |
|
|
|
|
1,505 |
2 |
1,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
Realised gains on FVOCI equity shares |
|
|
|
|
(12) |
|
|
|
(12) |
|
(12) |
|
Remeasurement of retirement benefit schemes |
|
|
|
5 |
|
|
|
|
5 |
|
5 |
|
Changes in fair value of credit in financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
designated at FVTPL due to own credit risk |
|
|
|
17 |
|
|
|
|
17 |
|
17 |
|
Unrealised gains |
|
|
|
|
46 |
|
|
|
46 |
|
46 |
|
Amounts recognised in equity |
|
|
|
|
|
(260) |
|
|
(260) |
|
(260) |
|
Retranslation of net assets |
|
|
|
|
|
|
3 |
|
3 |
|
3 |
|
Losses on hedges of net assets |
|
|
|
|
|
|
3 |
|
3 |
|
3 |
|
Reclassification of OCI to Income statement |
|
|
|
|
|
92 |
(93) |
|
(1) |
|
(1) |
|
Tax |
|
|
|
(2) |
(6) |
42 |
- |
|
34 |
|
34 |
|
Total comprehensive income |
|
|
|
1,525 |
28 |
(126) |
(87) |
- |
1,340 |
2 |
1,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
Paid-in equity dividends paid |
|
|
|
(73) |
|
|
|
|
(73) |
|
(73) |
|
Shares repurchased (1) |
(54) |
|
54 |
(313) |
|
|
|
|
(313) |
|
(313) |
|
Employee share schemes |
|
|
|
17 |
|
|
|
|
17 |
|
17 |
|
Shares vested under employee share schemes |
|
|
70 |
|
|
|
|
|
70 |
|
70 |
|
Share-based remuneration |
|
|
|
15 |
|
|
|
|
15 |
|
15 |
|
At 31 March 2026 |
9,967 |
4,571 |
2,737 |
15,590 |
41 |
(878) |
746 |
10,881 |
43,655 |
16 |
43,671 |
(1) As part of the On Market Share Buyback Programmes NatWest Group plc repurchased and cancelled 51 million shares, of which 0.6 million shares were repurchased in March 2026 and were settled and cancelled in April 2026. The total consideration for these shares, excluding fees, was £313.7 million, of which £3.2 million was related to shares repurchased in March 2026, which were settled and cancelled in April 2026. The nominal value of the shares cancelled was transferred to the capital redemption reserve.
(2) Other statutory reserves consist of Capital redemption reserves of £3,384 million and Own shares held reserves of £(647) million.
(3) The change in the cash flow hedging reserve is driven by an increase in swap rates in the year, where the portfolio of swaps is net receive fixed from an interest rate risk perspective. This is offset by realised accrued interest transferred into the income statement.
(4) The amount transferred from equity to the income statement is mostly recorded within net interest income mainly within loans to banks and customers - amortised cost, balances at central banks, bank deposits and customer deposits.
Notes
1. Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction with NatWest Group plc's 2025 Annual Report and Accounts. The accounting policies are the same as those applied in the consolidated financial statements. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
The Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7 - issued May 2024) were adopted on 1 January 2026. The Group has made an accounting policy election to derecognise financial liabilities before the settlement date where they are settled using electronic payment systems that satisfy the specified conditions in IFRS 9. The amendments had no material impact on the financial performance or position of the Group.
The directors have prepared the condensed consolidated financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date they are approved.
2. Litigation and regulatory matters
NatWest Group plc's 2025 Annual Report and Accounts, issued on 13 February 2026, included disclosures about NatWest Group's litigation and regulatory matters in Note 25. Set out below are the material developments in those matters (all of which matters have been previously disclosed) since publication of the 2025 Annual Report and Accounts.
Litigation
Swaps antitrust litigation
NWM Plc and other members of NatWest Group, including NatWest Group plc, as well as a number of other interest rate swap dealers, are defendants in several cases pending in the SDNY alleging violations of US antitrust laws in the market for interest rate swaps. Three swap execution facilities (TeraExchange, Javelin, and trueEx) allege that they would have successfully established exchange-like trading of interest rate swaps if the defendants had not unlawfully conspired to prevent that from happening through boycotts and other means.
Discovery is complete though expert discovery is ongoing, and in March 2026, defendants filed a motion for summary judgment seeking dismissal of the claims, which is pending.
Oracle Securities Litigation
In January and February 2026, two substantially similar class action complaints were filed in New York state court against Oracle Corporation and the underwriters of a September 2025 bond offering by Oracle, including NWMSI. The complaint alleges that the offering documents for the bonds were materially misleading because they failed to disclose that, at the time of the bond offering, Oracle was already planning to further increase its debt to fund its Artificial Intelligence infrastructure expansion. On 4 March 2026, an amended complaint consolidated both actions into one.
The consolidated amended complaint seeks damages under the U.S. Securities Act of 1933 (the 'Securities Act'), as amended, on behalf of those who purchased Oracle's bonds.
In connection with the bond offering, Oracle agreed to indemnify the underwriters against certain potential liabilities, including disclosure-based liability under the Securities Act. Defendants (including NWMSI) anticipate filing a motion to dismiss the consolidated amended complaint.
Regulatory matters
US investigations relating to fixed-income securities
In December 2021, NWM Plc pled guilty in the United States District Court for the District of Connecticut to one count of wire fraud and one count of securities fraud in connection with historical spoofing conduct by former employees in US Treasuries markets between January 2008 and May 2014 and, separately, during approximately three months in 2018. The 2018 trading occurred during the term of a non-prosecution agreement (NPA) between NWMSI and the United States Attorney's Office for the District of Connecticut (USAO CT), under which non-prosecution was conditioned on NWMSI and affiliated companies not engaging in criminal conduct during the term of the NPA. The relevant trading in 2018 was conducted by two NWM Plc traders in Singapore and breached that NPA. The plea agreement reached with the US Department of Justice (DOJ) and the USAO CT resolved both the spoofing conduct and the breach of the NPA.
The DOJ and USAO CT paused the monitorship in May 2025 and, following a review, determined that a monitorship was no longer necessary as a result of NWM Plc's notable progress in strengthening its compliance programme, certain of NWM Plc's remedial improvements, internal controls, and the status of implementation of Monitor recommendations, and that reporting by NWM Plc to the DOJ and USAO CT on its continued compliance programme progress provided an appropriate degree of oversight. The court approved the agreement and extended NWM Plc's obligations under the plea agreement and probation until December 2026.
In the event that NWM Plc does not meet its obligations to the DOJ, this may lead to adverse consequences such as increased costs and findings that NWM Plc violated its probation term amongst other consequences. Other material adverse collateral consequences may occur as a result of this matter, as further described in the Risk Factor relating to legal, regulatory and governmental actions and investigations set out on pages 417 to 419 of the NatWest Group plc 2025 Annual Report and Accounts.
Other customer remediation in Ulydien (formerly Ulster Bank Ireland DAC)
Ulydien identified other legacy issues leading to the establishment of remediation requirements. These remediation activities have now materially concluded.
3. Post balance sheet events
As part of the ongoing on-market share buyback programme, NatWest Group plc has repurchased and cancelled a further 10.70 million shares since 31 March 2026 for a total consideration (excluding fees) of £63.53 million.
Other than as disclosed in this document, there have been no significant events between 31 March 2026 and the date of approval of this announcement which would require a change to, or additional disclosure, in the announcement.
Presentation of information
'Parent company' refers to NatWest Group plc and 'NatWest Group', 'Group' or 'we' refers to NatWest Group plc and its subsidiaries. The term 'NWH Group' refers to NatWest Holdings Limited ('NWH Limited') and its subsidiary and associated undertakings. The term 'NWM Group' refers to NatWest Markets Plc ('NWM Plc') and its subsidiary and associated undertakings. The term RBSH N.V. refers to RBS Holdings N.V. The term NWM N.V. Group refers to NatWest Markets N.V. and its subsidiary and associated undertakings. The term 'NWMSI' refers to NatWest Markets Securities, Inc. The term 'RBS plc' refers to The Royal Bank of Scotland plc. The term 'NWB Plc' refers to National Westminster Bank Plc. The term RBSI Ltd refers to The Royal Bank of Scotland International Limited.
NatWest Group publishes its financial statements in pounds sterling ('£' or 'sterling'). The abbreviations '£m' and '£bn' represent millions and thousands of millions of pounds sterling, respectively, and references to 'pence' or 'p' represent pence where the amounts are denominated in pounds sterling ('GBP'). Reference to 'dollars' or '$' are to United States of America ('US') dollars. The abbreviations '$m' and '$bn' represent millions and thousands of millions of dollars, respectively. The abbreviation '€' represents the 'euro', and the abbreviations '€m' and '€bn' represent millions and thousands of millions of euros, respectively.
Statutory accounts
Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ('the Act'). The statutory accounts for the year ended 31 December 2025 will be filed with the Registrar of Companies. The report of the auditor on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Act.
Contacts:
Analyst enquiries: Claire Kane, Investor Relations +44 (0) 20 7672 1758
Media enquiries: NatWest Group Press Office +44 (0) 7557 316 540
|
Management presentation |
|
|
Date: Time: Zoom ID: |
1 May 2026 9am BST 957 9088 3730 |
Registered office
36 St Andrew Square
Edinburgh, EH2 2YB
Registered in Scotland No. SC45551
Available on natwestgroup.com/results
· Q1 2026 Interim Management Statement and background slides.
· NatWest Group Pillar 3 supplement at 31 March 2026.
Forward-looking statements
This document may include forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, such as statements with respect to NatWest Group's financial condition, results of operations and business, including its strategic priorities, financial, investment and capital targets, and climate and sustainability-related targets, commitments and ambitions described herein. Statements that are not historical facts, including statements about NatWest Group's beliefs and expectations, are forward-looking statements. Words, such as 'expect', 'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'will', 'plan', 'could', 'target', 'goal', 'objective', 'may', 'outlook', 'prospects' and similar expressions or variations on these expressions are intended to identify forward-looking statements. In particular, this document may include forward-looking statements relating , but not limited to: NatWest Group's outlook, guidance and targets (including in relation to RoTE, total income, other operating expenses, loan impairment rate, capital generation pre-distributions, customer assets and liabilities growth rate, cost-income ratio, CET1 ratio, RWA levels and payment of dividends), its financial position, profitability and financial performance, the implementation of its strategy, its access to adequate sources of liquidity and funding, its regulatory capital position and related requirements, its impairment losses and credit exposures under certain specified scenarios, substantial regulation and oversight, ongoing legal, regulatory and governmental actions and investigations. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, future growth initiatives (including acquisitions, joint ventures and strategic partnerships), the outcome of legal, regulatory and governmental actions and investigations, the level and extent of future impairments and write-downs, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments such as artificial intelligence, interest and exchange rate fluctuations, general economic and political conditions and uncertainties, exposure to third party risk, operational risk, conduct risk, cyber, data and IT risk, financial crime risk, key person risk and credit rating risk and the impact of climate and sustainability-related risks and the transitioning to a net zero economy. These and other factors, risks and uncertainties that may impact any forward-looking statement or NatWest Group plc's actual results are discussed in NatWest Group plc 2025 Annual Report on Form 20-F, NatWest Group's Interim Management Statement for Q1 2026, and its other public filings.
Forward-looking statements continued
The forward-looking statements contained in this document speak only as of the date of this document and NatWest Group plc does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except to the extent legally required.
Caution on non-financial reporting
The processes we have adopted to define, collect and report data on our climate and sustainability related performance, as well as the associated metrics and disclosures in this document, are not subject to the same formal processes adopted for financial reporting in accordance with established reporting standards. They involve a higher degree of judgement, assumptions and estimates, including in relation to the classification of climate and sustainability-related (including social, sustainability, sustainability-linked, green, climate and transition) funding, financing and facilitation activities, than what is required for reporting of historical financial information prepared in accordance with established reporting standards. As a result, climate and sustainability-related disclosures may be amended, updated or restated over time. However, NatWest Group does not undertake to restate prior disclosures except where required by applicable law or regulation, even if subsequently available data or methodologies differ from those used at the time of the original disclosure. In addition, non-financial reporting systems are less developed than financial reporting systems, often involving manual processes and less robust controls, which may affect data quality and consistency.
Refer also to the 'Climate and sustainability-related risk factors' on pages 420 to 422 of the NatWest Group plc 2025 Annual Report and Accounts, the 'Additional cautionary statement regarding climate and sustainability-related data, metrics and forward-looking statements' on pages 429 to 431 of the NatWest Group plc 2025 Annual Report and Accounts, and the cautionary statement in the section entitled 'Caution about climate-related metrics and data required for climate reporting' on pages 70 to 72 of the NatWest Group plc 2025 Climate Transition Plan Report.
Caution about sustainability-related funding, financing and facilitation
Sustainability-related (including social, sustainability, sustainability-linked, green, climate, transition) funding, financing and facilitation currently represents only a relatively small proportion of NatWest Group's overall funding, financing and facilitation activities. Accordingly, disclosures relating to sustainability-related funding, financing and facilitation should be read in the context of NatWest Group's broader balance sheet, risk profile and funding, financing and facilitation activities, and should not be interpreted as indicative of NatWest Group's overall funding, financing or facilitation strategy.
Non-IFRS financial measures
NatWest Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). This document contains a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-Generally Accepted Accounting Principles (GAAP) financial measures in accordance with the Securities and Exchange Commission (SEC) regulations. These measures are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison.
The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include the basis of calculation for metrics that are used throughout the banking industry.
These non-IFRS measures are not a substitute for IFRS measures and a reconciliation to the closest IFRS measure is presented where appropriate.
|
Measure |
Description |
|
Cost:income ratio (excl. litigation and conduct) Refer to table 2. Cost:income ratio (excl. litigation and conduct) on page 42. |
The cost:income ratio (excl. litigation and conduct) is calculated as other operating expenses (operating expenses less litigation and conduct costs) divided by total income. Litigation and conduct costs are excluded as they are one-off in nature, difficult to forecast for Outlook purposes and distort period-on-period comparisons. |
|
Customer deposits excluding central items Refer to Segment performance on pages 11-13 for components of calculation. |
Customer deposits excluding central items is calculated as total NatWest Group customer deposits excluding Central items & other customer deposits. Central items & other includes Treasury repo activity. The exclusion of Central items & other removes the volatility relating to Treasury repo activity and the reduction of deposits as part of our withdrawal from the Republic of Ireland. These items may distort period-on-period comparisons and their removal gives the user of the financial statements a better understanding of the movements in customer deposits. |
|
Funded assets Refer to Condensed consolidated balance sheet on page 35 for components of calculation. |
Funded assets is calculated as total assets less derivative assets. This measure allows review of balance sheet trends excluding the volatility associated with derivative fair values.\ |
|
Loan:deposit ratio (excl. repos and reverse repos) Refer to table 5. Loan:deposit ratio (excl. repos and reverse repos) on page 43. |
Loan:deposit ratio (excl. repos and reverse repos) is calculated as net loans to customers - amortised cost excluding reverse repos divided by total customer deposits excluding repos. This metric is used to assess liquidity. The removal of repos and reverse repos reduces volatility and presents the ratio on a basis that is comparable to UK peers. The nearest ratio using IFRS measures is loan:deposit ratio, calculated as net loans to customers - amortised cost divided by customer deposits. |
|
NatWest Group Return on Tangible Equity Refer to table 7. NatWest Group Return on Tangible Equity on page 44. |
NatWest Group Return on Tangible Equity comprises annualised profit or loss for the period attributable to ordinary shareholders divided by average tangible equity. Average tangible equity is average total equity excluding average non-controlling interests, average other owners' equity and average intangible assets. This measure shows the return NatWest Group generates on tangible equity deployed. It is used to determine relative performance of banks and used widely across the sector, although different banks may calculate the rate differently. The nearest ratio using IFRS measures is return on equity, calculated as profit attributable to ordinary shareholders divided by average total equity. |
Non-IFRS financial measures continued
|
Measure |
Description |
|
Net interest margin and average interest earning assets Refer to Segment performance on pages 11-13 for components of calculation. |
Net interest margin is net interest income as a percentage of average interest earning assets (IEA). Average IEA are average IEA of the banking business of NatWest Group and primarily consists of cash and balances at central banks, loans to banks - amortised cost, loans to customers - amortised cost and other financial assets. It excludes trading balances and assets in treasury repurchase agreements that have not been derecognised. Average IEA shows the average asset base generating interest over the period. |
|
Net loans to customers excluding central items Refer to Segment performance on pages 11-13 for components of calculation. |
Net loans to customers excluding central items is calculated as total NatWest Group net loans to customers excluding Central items & other net loans to customers. Central items & other includes Treasury reverse repo activity. The exclusion of Central items & other removes the volatility relating to Treasury reverse repo activity and the reduction of loans to customers as part of our withdrawal from the Republic of Ireland. This allows for better period-on-period comparisons and gives the user of the financial statements a better understanding of the movements in net loans to customers. |
|
Operating expenses excluding litigation and conduct Refer to table 4. Operating expenses excluding litigation and conduct on page 43. |
The management analysis of operating expenses shows litigation and conduct costs separately. These amounts are included within staff costs and other administrative expenses in the statutory analysis. Other operating expenses excludes litigation and conduct costs, which are more volatile and may distort period-on-period comparisons. |
|
Segment return on equity Refer to table 8. Segment return on equity on page 44. |
Segment return on equity comprises segmental operating profit or loss, adjusted for paid-in equity and tax, divided by average notional equity. Average RWAe is defined as average segmental RWAs incorporating the effect of capital deductions. This is multiplied by an allocated equity factor for each segment to calculate the average notional equity. This measure shows the return generated by operating segments on equity deployed. |
|
Tangible net asset value (TNAV) per ordinary share Refer to table 3. Tangible net asset value (TNAV) per ordinary share on page 42. |
TNAV per ordinary share is calculated as tangible equity divided by the number of ordinary shares in issue. This is a measure used by external analysts in valuing the bank and allows for comparison with other per ordinary share metrics including the share price. The nearest ratio using IFRS measures is: net asset value (NAV) per ordinary share - this comprises ordinary shareholders' interests divided by the number of ordinary shares in issue. |
|
Total customer assets and liabilities (CAL) Refer to table 6. Total customer assets and liabilities (CAL) on page 44. |
CAL comprises customers deposits and gross loans to customers (amortised cost), across the Retail Banking, Private Banking & Wealth Management and Commercial & Institutional segments. For the Private Banking & Wealth Management segment, CAL also includes AUMA, with an adjustment to deduct investment cash to avoid double counting, as investment cash is recognised within both customer deposits and AUMA. The components of CAL are key drivers of income and provide a measure of growth and strength of the business on a comparable basis. |
|
Total income excluding notable items Refer to table 1. Total income excluding notable items on page 42. |
Total income excluding notable items is calculated as total income less notable items. The exclusion of notable items aims to remove the impact of one-offs and other items which may distort period-on-period comparisons. |
Non-IFRS financial measures continued
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Total income |
4,358 |
4,324 |
3,980 |
|
Less notable items: |
|
|
|
|
Commercial & Institutional |
|
|
|
|
Own credit adjustments |
3 |
(2) |
6 |
|
Dividend received on restructuring of a strategic investment |
- |
51 |
- |
|
Central items & other |
|
|
|
|
Share of (losses)/gains of associate - Business Growth Fund |
(1) |
15 |
15 |
|
Interest and foreign exchange management derivatives not in hedge accounting relationships |
38 |
17 |
7 |
|
Foreign exchange recycling gains |
95 |
10 |
- |
|
Loss on reclassification to disposal groups under IFRS 5 |
- |
(39) |
- |
|
|
135 |
52 |
28 |
|
Total income excluding notable items |
4,223 |
4,272 |
3,952 |
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Operating expenses |
2,042 |
2,248 |
1,979 |
|
Less litigation and conduct costs |
(15) |
(37) |
(44) |
|
Other operating expenses |
2,027 |
2,211 |
1,935 |
|
|
|
|
|
|
Total income |
4,358 |
4,324 |
3,980 |
|
|
|
|
|
|
Cost:income ratio |
46.9% |
52.0% |
49.7% |
|
Cost:income ratio (excl. litigation and conduct) |
46.5% |
51.1% |
48.6% |
|
|
As at |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
Ordinary shareholders' interests (£m) |
39,084 |
38,028 |
35,562 |
|
Less intangible assets (£m) |
(7,224) |
(7,292) |
(7,537) |
|
Tangible equity (£m) |
31,860 |
30,736 |
28,025 |
|
|
|
|
|
|
Ordinary shares in issue (millions) (1) |
7,971 |
7,995 |
8,067 |
|
|
|
|
|
|
NAV per ordinary share (pence) |
490p |
476p |
441p |
|
TNAV per ordinary share (pence) |
400p |
384p |
347p |
(1) The number of ordinary shares in issue excludes own shares held.
Non-IFRS financial measures continued
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Other operating expenses |
|
|
|
|
Staff expenses |
1,070 |
966 |
1,055 |
|
Premises and equipment |
309 |
383 |
294 |
|
Other administrative expenses |
368 |
563 |
320 |
|
Depreciation and amortisation |
280 |
299 |
266 |
|
Total other operating expenses |
2,027 |
2,211 |
1,935 |
|
|
|
|
|
|
Litigation and conduct costs |
|
|
|
|
Staff expenses |
16 |
15 |
14 |
|
Premises and equipment |
3 |
2 |
- |
|
Other administrative expenses |
(4) |
20 |
30 |
|
Total litigation and conduct costs |
15 |
37 |
44 |
|
|
|
|
|
|
Total operating expenses |
2,042 |
2,248 |
1,979 |
|
Operating expenses excluding litigation and conduct |
2,027 |
2,211 |
1,935 |
|
|
As at |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Loans to customers - amortised cost |
431,563 |
418,881 |
398,806 |
|
Less reverse repos |
(37,784) |
(32,817) |
(30,258) |
|
Loans to customers - amortised cost (excl. reverse repos) |
393,779 |
386,064 |
368,548 |
|
Customer deposits |
445,461 |
442,998 |
434,617 |
|
Less repos |
(1,474) |
(1,796) |
(1,070) |
|
Customer deposits (excl. repos) |
443,987 |
441,202 |
433,547 |
|
Loan:deposit ratio (%) |
97% |
95% |
92% |
|
Loan:deposit ratio (excl. repos and reverse repos) (%) |
89% |
88% |
85% |
Non-IFRS financial measures continued
|
|
As at |
|||||||||||||
|
|
31 March 2026 |
|
31 December 2025 |
|
31 March 2025 |
|||||||||
|
|
|
Private Banking |
|
|
|
Private Banking |
|
|
|
Private Banking |
|
|
||
|
|
Retail |
& Wealth |
Commercial |
|
|
Retail |
& Wealth |
Commercial |
|
|
Retail |
& Wealth |
Commercial |
|
|
|
Banking |
Management |
& Institutional |
Total |
|
Banking |
Management |
& Institutional |
Total |
|
Banking |
Management |
& Institutional |
Total |
|
|
£bn |
£bn |
£bn |
£bn |
|
£bn |
£bn |
£bn |
£bn |
|
£bn |
£bn |
£bn |
£bn |
|
Gross loans and advances to customers |
221.3 |
19.1 |
159.6 |
400.0 |
|
217.9 |
19.0 |
155.8 |
392.7 |
|
212.2 |
18.5 |
144.6 |
375.3 |
|
Customer deposits |
202.2 |
41.1 |
201.5 |
444.8 |
|
202.6 |
42.7 |
196.4 |
441.7 |
|
195.7 |
41.2 |
196.5 |
433.4 |
|
Assets under management and |
|
|
||||||||||||
|
administration (AUMA) |
- |
56.7 |
- |
56.7 |
|
- |
58.5 |
- |
58.5 |
|
- |
48.5 |
- |
48.5 |
|
Less investment cash included in both |
|
|
||||||||||||
|
customer deposits and AUMA |
- |
(1.4) |
- |
(1.4) |
|
- |
(1.2) |
- |
(1.2) |
|
- |
(1.2) |
- |
(1.2) |
|
CAL |
423.5 |
115.5 |
361.1 |
900.1 |
|
420.5 |
119.0 |
352.2 |
891.7 |
|
407.9 |
107.0 |
341.1 |
856.0 |
|
|
Quarter ended |
||
|
|
31 March |
31 December |
31 March |
|
|
2026 |
2025 |
2025 |
|
|
£m |
£m |
£m |
|
Profit attributable to ordinary shareholders |
1,432 |
1,393 |
1,252 |
|
Annualised profit attributable to ordinary shareholders |
5,728 |
5,572 |
5,008 |
|
Average total equity |
43,216 |
42,877 |
40,354 |
|
Adjustment for average other owners' equity and intangible assets |
(11,760) |
(12,431) |
(13,228) |
|
Adjusted total tangible equity |
31,456 |
30,446 |
27,126 |
|
Return on equity |
13.3% |
13.0% |
12.4% |
|
Return on Tangible Equity |
18.2% |
18.3% |
18.5% |
|
|
Quarter ended 31 March 2026 |
|
Quarter ended 31 December 2025 |
|
Quarter ended 31 March 2025 |
||||||
|
|
|
Private Banking |
|
|
|
Private Banking |
|
|
|
Private Banking |
|
|
|
Retail |
& Wealth |
Commercial |
|
Retail |
& Wealth |
Commercial |
|
Retail |
& Wealth |
Commercial |
|
|
Banking |
Management |
& Institutional |
|
Banking |
Management |
& Institutional |
|
Banking |
Management |
& Institutional |
|
Operating profit (£m) |
781 |
94 |
1,030 |
|
786 |
107 |
1,039 |
|
750 |
77 |
1,020 |
|
Paid-in equity cost allocation (£m) |
(18) |
(3) |
(51) |
|
(24) |
(4) |
(56) |
|
(23) |
(4) |
(63) |
|
Adjustment for tax (£m) |
(214) |
(25) |
(245) |
|
(213) |
(29) |
(246) |
|
(204) |
(20) |
(239) |
|
Adjusted attributable profit (£m) |
549 |
66 |
734 |
|
549 |
74 |
737 |
|
523 |
53 |
718 |
|
Annualised adjusted attributable profit (£m) |
2,197 |
262 |
2,937 |
|
2,195 |
297 |
2,949 |
|
2,092 |
212 |
2,872 |
|
Average RWAe (£bn) |
70.4 |
11.4 |
113.8 |
|
69.7 |
11.3 |
109.3 |
|
66.9 |
11.1 |
106.8 |
|
Equity factor |
12.7% |
10.9% |
14.1% |
|
12.8% |
11.1% |
13.9% |
|
12.8% |
11.1% |
13.9% |
|
Average notional equity (£bn) |
8.9 |
1.2 |
16.0 |
|
8.9 |
1.3 |
15.2 |
|
8.6 |
1.2 |
14.8 |
|
Return on equity |
24.6% |
21.1% |
18.3% |
|
24.6% |
23.6% |
19.4% |
|
24.5% |
17.1% |
19.3% |
Performance measures not defined under IFRS
The table below summarises other performance measures used by NatWest Group, not defined under IFRS, and therefore a reconciliation to the nearest IFRS measure is not applicable.
|
Measure |
Description |
|
AUMA |
AUMA comprises client assets under management (AUM) and client assets under administration (AUA) serviced through the Private Banking & Wealth Management segment and not recognised on NatWest Group's balance sheet. AUM comprise assets where the investment management is undertaken by Private Banking & Wealth Management on behalf of customers of the Private Banking & Wealth Management, Retail Banking and Commercial & Institutional segments. AUA comprises i) third party assets held on an execution-only basis in custody by Private Banking & Wealth Management, Retail Banking and Commercial & Institutional for their customers, for which the execution services are supported by Private Banking & Wealth Management ii) AUA of Cushon, acquired on 1 June 2023, which are supported by Private Banking & Wealth Management and held and managed by third parties. This measure is tracked and reported as the amount of funds that we manage or administer, and directly impacts the level of investment income that we receive. |
|
AUMA income |
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. AUMA is a core driver of non-interest income, especially with respect to ongoing investment income and this measure provides a means of reporting the income earned on AUMA. |
|
AUM net flows |
AUM net flows refers to net client cash inflows and outflows relating to investment products, both discretionary and advisory mandates serviced through the Private Banking & Wealth Management segment. AUM comprises assets where the investment management is undertaken by Private Banking & Wealth Management on behalf of Private Banking & Wealth Management, Retail Banking and Commercial & Institutional customers. |
|
Capital generation pre-distributions |
Capital generation pre-distributions refers to the change in the CET1 ratio in the period, before distributions to ordinary shareholders. It reflects the capital generated through business activities and all other movements, including attributable profit for the period, impacts from acquisitions and disposals, and risk-weighted asset (RWA) changes, prior to the deduction of ordinary shareholder distributions such as ordinary dividends and share buybacks. It is used to show the capital generated in the period that is available for deployment in the business and distribution to shareholders. |
|
Climate and transition finance |
The climate and transition finance target enables NatWest Group to quantify the level of financing and facilitation provided by NatWest Group that could support customers in achieving their climate and/or transition ambitions, through lending and underwriting activities. The climate and transition finance framework, available on natwestgroup.com, underpins the target to provide £200 billion in climate and transition finance between 1 July 2025 and the end of 2030. |
|
Loan impairment rate |
Loan impairment rate is the annualised loan impairment charge divided by gross customer loans. This measure is used to assess the credit quality of the loan book. |
|
Third party rates |
Third party customer asset rate is calculated as annualised interest receivable on third-party loans to customers as a percentage of third-party loans to customers. This excludes assets of disposal groups, intragroup items, loans to banks and liquid asset portfolios. Third party customer funding rate reflects interest payable or receivable on third-party customer deposits, including interest bearing and non- interest bearing customer deposits. Intragroup items, bank deposits, debt securities in issue and subordinated liabilities are excluded for customer funding rate calculation. |
|
Wholesale funding |
Wholesale funding comprises deposits by banks (excluding repos), debt securities in issue and subordinated liabilities. Funding risk is the risk of not maintaining a diversified, stable and cost-effective funding base. The disclosure of wholesale funding highlights the extent of our diversification and how we mitigate funding risk. |
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