NatWest Group (NWG) Bank of America 30th Annual Financials CEO Conference 2025 summary

Macroeconomic outlook and operating environment

• Cautious optimism prevails for the U.K. economy, with subdued but positive GDP and real wage growth.

• Retail sales and discretionary spending remain reasonable, with recent PMI and consumer sentiment readings at multi-month highs.

• Forecasts for GDP, inflation, and unemployment have remained largely stable over the past year.

• The upcoming budget in November is a focal point for future economic direction.

Business growth and strategy

• Balance sheet growth has averaged 4% annually over six years, with recent acceleration.

• Market share gains in mortgages and unsecured credit, with retail and commercial franchises outperforming market growth rates.

• Retail, commercial, and private banking divisions all identified as growth areas, supported by product expansion and strong customer relationships.

• Private Banking and Wealth Management assets and client numbers have grown significantly, with ambitious targets set for 2027.

Competitive landscape and income outlook

• Mortgage and deposit markets remain highly competitive, though recent volatility has subsided.

• Product diversification and customer retention strategies are supporting margin resilience.

• Volume growth, recent acquisitions, and structural hedge benefits are expected to drive income through 2027.

• Non-interest income has grown across all divisions, with fee income up 9% in 2024 and strong momentum in wealth management.