NatWest Group (NWG) Q4 2025 Fixed Income earnings summary

Executive summary

• Achieved 19.2% Return on Tangible Equity (ROTE) in FY 2025, with strong growth across all business segments, serving over 20 million customers, adding 1 million new customers, and increasing customer loans by 5.6%, deposits by 2.4%, and AUMA by nearly 20%.

• Total income excluding notable items rose 12% year-over-year to GBP 16.4 billion, with net interest income up 13.5% and non-interest income up 1.3%.

• Operating profit before tax reached GBP 7.7 billion, with profit attributable to ordinary shareholders at GBP 5.5 billion and operating profit before impairments up 27.8% to GBP 8.4 billion.

• Earnings per share rose 27% to GBP 0.68, and dividends per share increased 51% to GBP 0.325.

Financial highlights

• Cost/income ratio improved to 48.6%, with positive operational leverage and jaws of +10ppt.

• Tangible net asset value per share rose 17% to GBP 3.84.

• CET1 ratio stood at 14.0%, with capital generation of 252bps before distributions.

• Net interest margin increased by 21bps to 234bps, driven by deposit growth and margin expansion.

• Loan impairment charge was GBP 671 million, or 16bps of loans.

Outlook and guidance

• 2026 guidance: income excluding notable items GBP 17.2–17.6 billion, other operating expenses ~GBP 8.2 billion, loan impairment rate <25bps, ROTE >17%, and capital generation ~200bps.

• CET1 ratio target set at ~13% reflecting regulatory changes and the Evelyn Partners acquisition.

• Basel 3.1 implementation in 2027 expected to increase RWAs by around GBP 10 billion.

• 2028 targets include cost-income ratio below 45% and annual customer assets and liabilities growth above 4%.