Page 1

NatWest Group Areas of Focus There are three focus areas of Our Purpose where we can make a meaningful contribution to our customers , colleagues and communities . Natwest Group plc Investor Factbook Q1 2021 NatWest Group is a relationship bank for a digital world Our Strategy Our strategy is to deliver on Our Purpose and drive sustainable returns to shareholders through four strategic priorities . Priorities delivered through : • Sustainable growth with an intelligent • approach to risk Simplification and cost efficiency • Portfolio discipline and effective deployment of capital 1. Comprises customer loans in our UK and RBS International retail and commercial businesses . 2. Total expenses excluding litigation and conduct costs , strategic costs , operating lease depreciation and the impact of the phased withdrawal from the Republic of Ireland . Supporting customers at every stage of their lives WORKING TOGETHER Powered by innovation & partnerships DOING THE RIGHT THING SERVING CUSTOMERS Our Purpose We champion potential , helping people , families and businesses to thrive Simple to deal with Sharpened capital allocation Our Targets Lending | c.4 % Cost growth reduction above market rate per annum through to 2023¹ through to 2023² CET1 ratio ROTE of 13-14 % of 9-10 % by 2023 by 2023 THINKING LONG - TERM 516 Balancing the needs of our customers , colleagues , communities and shareholders . When they succeed , so will we . Our initial areas of focus : Learning Enterprise Climate Q1'21 Results Highlights • Good Q1'21 operating performance Supporting our customers ; strong net lending growth • • Further cost reduction achieved in Q1 Impairments : small release reflects good • book releases and government support mitigating level of defaults £ 844m Operating profit before impairments in Q1'21 , down from £ 1,321m in Q1'20 £ 102m Impairment release in Q1'21 11bps of customer loans £ 620m Attributable profit in Q1'21 , compared to £ 288m at Q1'20 • Strong capital base and liquidity position • £ 1.1bn directed buy back completed £ 2.2bn Net Lending Growth in Q1'21 up 3 % on Q4'20 on an annualised basis¹ £ 72m Cost reduction in Q1'21² vs. Q1'20 18.2 % Q1'21 CET1 Capital Ratio Down 30bps on Q4'20 Includes c.100bps of IFRS 9 transitional relief 1. Net lending to customers across the UK and RBSI retail and commercial businesses , excluding UK Government lending schemes . 2. Other expenses , excluding OLD and Ulster Bank Rol direct costs . Supporting our customers through the recovery Strong and improving gross new mortgage lending • New Government schemes launched : Pay as You Grow ( BBLS ) and Recovery Loan Scheme • Debit and credit card spending improving from February • Demand for personal loans and new credit cards accelerating over Q1 Retail Banking Payment Holidays Commercial Banking Activity Commercial Payment Holidays Mortgage Payment Holidays , £ bn Share of book Approved value of c . £ 14.4bn under government schemes , NatWest Group's share of the total lending c.19 % 1 Total Loans , £ bn 0.5 Peak 33.6 c.22 % BBLS 6.1 1.8 0.7 9.1 Q2'20 Q2'20 21.3 c.14 % 0.5 -0.2 Q3'20 Q3'20 6.2 c.4 % CBILS 3.2 4 -0.1 Q4'20 4.1 -0.7 Q4'20 2.4 c.1 % 0.5 0.1 Q1'21 1.9 c.1 % CLBILS 1.3 Q1'21 2.5 Q2'20 Q3'20 Q4'20 Q1'21 1. Of approved schemes , according to Data per HM Treasury available on 21st March 2021 . 9.5 Share of book 12.9 c.11 % c.8 % c.4 % c.2 % The guidance , targets , expectations and trends discussed in this document represent NatWest Group ( and where applicable NWM Group ) management's , current expectations and are subject to change , including as a result of the factors described in the " Risk Factors " on pages 345-362 of the NatWest Group plc 2020 Annual Report and Accounts , as well as the Risk Factors on pages 156-172 of the NWM 2020 Annual Report and Accounts , respectively . These statements constitute forward - looking statements .