Slides
Page 1
24 October 2025
Page 3
Strong growth across our businesses £388bn Customer Loans1 +4.4% vs Dec’24 £435bn Customer Deposits2 +0.8% vs Dec’24 £56bn AUMA +14.5% vs Dec’24 Strong returns with attributable profit of £4.1bn £12.1bn Income ex notable items3 +12.5% vs 9M’24 £5.9bn Costs4 +2.5% vs 9M’24 19.5% Return on Tangible Equity vs 17.0% in 9M’24 Strong capital generation; share count reduction supports EPS growth 14.2% CET1 ratio 202bps capital generation in 9M’25 362p TNAV per share +14.6% vs 9M’24 51p EPS +32.4% vs 9M’24 3NatWest Group Q3 2025 Results October 2025
Page 5
5NatWest Group Q3 2025 Results October 2025 Group, £m Q3'25 Q2'25 9M'25 9M24 Q3'25 vs Q2'25 9M'25 vs 9M'24 Net interest income, ex notable items 1 3,268 3,094 9,388 8,307 5.6% 13.0% Non-interest income, ex notable items 1 898 916 2,740 2,469 (2.0%) 11.0% Total income, ex notable items 1 4,166 4,010 12,128 10,776 3.9% 12.5% Total income 4,332 4,005 12,317 10,878 8.2% 13.2% Other operating expenses (1,984) (1,965) (5,884) (5,740) 1.0% 2.5% Litigation and conduct costs (12) (74) (130) (142) (83.8%) (8.5%) Operating expenses (1,996) (2,039) (6,014) (5,882) (2.1%) 2.2% Operating profit before impairments 2,336 1,966 6,303 4,996 18.8% 26.2% Impairment (losses) (153) (193) (535) (293) (20.7%) 82.6% Loan impairment rate 15bps 19bps 17bps 10bps (4bps) 7bps Operating profit 2,183 1,773 5,768 4,703 23.1% 22.6% Attributable profit 1,598 1,236 4,086 3,271 29.3% 24.9% Return on Tangible Equity 22.3% 17.7% 19.5% 17.0% 4.6ppts 2.5ppts
Page 6
166 Notable items 3,094 4,010 4,166 4,332 916 34 Daycount 49 3 Retail Banking 8 Private Banking & Wealth Management 38 4 Commercial & Institutional 21 Central items & other 3,268 898 Q3’25 ex notable items 1,064 Notable items 3,268 Q3’25Q2’25 ex notable items 3,094 911 Q2’25 5 +3.9% Total centre income 3 businesses +£101m, +2.5% NII +£94m, +3.0% Non-II +£7m, +0.8% Q2’25 228bps Q3’25 237bps NIM2: +9bp in Q3’25 • Lending margins +1bp • Deposit margins +4bps • Funding & other +3bps Average interest-earning assets (AIEAs), £bn 543.2 548.1 6NatWest Group Q3 2025 Results October 2025 Net interest income Non interest income
Page 7
207.0 16.8 4.6 210.4 19.6 4.9 212.1 19.7 5.0 Mortgages Unsecured Other PB&WM • Balance growth of +£1.7bn in Q3’25 • Stock share 12.6%1, stable YTD • Credit card share of 11.1%2, +1.4% YTD 2.0 72.5 65.8 3.2 2.4 74.6 69.4 2.4 2.3 76.2 70.9 1.9 Business Banking3 Commercial Mid-market3 Corporate & Institutions Gov Schemes balances 371.8 383.7 388.1 3 business total +£16.3bn, +4.4% +£4.4bn, +1.1% • Growth in Project Finance, social housing and residential CRE • Growth in infrastructure and funds lending +£3.0bn, or 2.0%, in Q3’25 ex-Gov Schemes Q4’24 Q2’25 Q3’25 7NatWest Group Q3 2025 Results October 2025
Page 8
64.5 64.2 64.8 130.3 132.4 131.0 Q4’24 Q2’25 Q3’25 194.8 196.6 195.8 -£0.8bn 6.6 6.3 6.2 35.8 35.0 34.4 Q4’24 Q2’25 Q3’25 42.4 41.3 40.6 -£0.7bn 63.9 63.1 62.9 130.2 134.8 135.4 Q4’24 Q2’25 Q3’25 194.1 197.9 198.3 +£0.4bn Retail Banking2 Private Banking & Wealth Management Commercial & Institutional 2 135.0 133.6 133.9 296.3 302.2 300.8 Q4’24 Q2’25 Q3’25 431.3 435.8 434.7 +£3.4bn, +0.8%-£1.1bn, -0.3% 3 business total Non-interest-bearing balances 3 Interest-bearing balances 4 16% 53% 31% Q4’24 17% 53% 31% Q2’25 16% 53% 31% Q3’25 431 436 435 Term Instant Access Non-interest-bearing balances 8NatWest Group Q3 2025 Results October 2025
Page 9
84 101 68 9M’24 Staff costs (80) Other administrative expenses 39 Premises and equipment Depreciation and amortisation 9M’25 5,740 5,884 +2.5% 27 25 34 Q2’25 1 Staff costs (14) Other administrative expenses Premises and equipment 7 Depreciation and amortisation Q3’25 1,965 1,984 +1.0% 9NatWest Group Q3 2025 Results October 2025 -0.7%+0.1% +1.3% +0.4% One-time integration costs Other operating expenses -1.4%+1.5% +0.7% +1.8%
Page 10
245 66 189 112 153 535 81 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 9M’25 193 FY’25 Guidance Stage 3 as % of loansPMA4 for Economic uncertainty ECL3 Provision ECL3 Coverage £3.7bn 0.87% 1.3%£233m NatWest Group Q3 2025 Results October 2025 Sainsbury’s Bank Day 1 ECL Impairment charge, £m 10 Q3'24 Q4'24 Q1'25 Q2'25 Q2'25 excl Sainsbury's Bank Q3'25 9M'25 Retail Banking 28 3 21 22 7 18 20 Private Banking (7) 7 2 0 0 6 3 Commercial & Institutional 31 13 22 20 20 14 18 Group 25 7 19 19 11 15 17 of which, stage 32 17 5 15 13 13 9 12
Page 11
101bps capital generation pre distribution in Q3’25 0.84 0.09 0.08 (0.42) 13.6% 14.6% 14.2% Q2’25 Attrib. profit Other CET1 changes RWAs CET1 ratio pre distributions Ordinary dividend Q3’25 CET1 capital1 £bn 25.8 RWA management (2.2) CRD IV model updates End of FY’25 guidance 0.3 Business Movements 0.9 Q2’25 190.1 189.1 £190-195bn Q3’25 -£1.0bn -0.8+1.6 +0.2 11NatWest Group Q3 2025 Results October 2025 26.8
Page 12
12NatWest Group Q3 2025 Results October 2025
Page 14
26th March 2025 25th June 2025 25th June 2025 25th November 2025 Slides Slides Cursor with solid fill Slides Cursor with solid fill 14NatWest Group Q3 2025 Results October 2025
Page 15
Outlook We will introduce guidance for 2026 and new targets for 2028 with our Full Year 2025 results on 13 February 2026. The following statements are based on our current expectations for interest rates and economic conditions. We will monitor and react to market conditions and refine our internal forecasts as the economic position evolves. In 2025 we expect: - to achieve a return on tangible equity of greater than 18.0%. - income excluding notable items to be around £16.3 billion. - Group operating costs, excluding litigation and conduct costs, to be around £8.1 billion including around £0.1 billion of one-time integration costs. - our loan impairment rate to be below 20 basis points. - RWAs to be in the range of £190-195 billion at the end of 2025, dependent on final CRD IV model outcomes. In 2027 we expect: - to achieve a return on tangible equity for the Group of greater than 15%. Capital - we continue to target a CET1 ratio in the range of 13-14%. - we expect to pay ordinary dividends of around 50% of attributable profit from 2025 and will consider buybacks as appropriate. 15NatWest Group Q3 2025 Results October 2025
Page 16
16NatWest Group Q3 2025 Results October 2025 Q3'24 Q4'24 FY'24 Q1'25 Q2'25 Q3'25 Group income 3,744 3,825 14,703 3,980 4,005 4,332 Notable items in Income, £m Q3'24 Q4'24 FY'24 Q1'25 Q2'25 Q3'25 Commercial and Institutional Own credit adjustments (OCA) 2 (4) (9) 6 (3) -- Central items & other Interest and FX risk management derivatives not in accounting hedge relationships 5 19 150 7 (1) 162 Share of associate profits/(losses) for Business Growth Fund 11 (1) 21 15 (1) 41 FX recycling gains / (losses) (46) (30) (76) -- -- (37) Tax interest on prior periods (Net Interest Income) -- (31) (31) -- -- -- Total notable items in Group income (28) (47) 55 28 (5) 166 Group income excluding notable items 3,772 3,872 14,648 3,952 4,010 4,166
Page 17
20 Q2’25 (9.5) Interim ordinary dividend paid (1) Share buyback Atributable profit 1 Cash flow hedge reserve 1 Other Q3’25 351 362 • -£0.9bn balance as at end of Q3’25, equivalent to -11p3 • +1p movement in the quarter includes +2p benefit from decay 17NatWest Group Q3 2025 Results October 2025 GBP, m Share count, m Pence As at 30 June 2025 28,416 8,088 351 Interim ordinary dividend (paid 12 September 2025) (768) (9.5) Share buyback (304) (58) (1) Atributable profit 1,598 20 Cash flow hedge reserve (net of tax) 85 1 Other movements 66 1 1 Net change 677 (57) 11 As at 30 September 2025 29,093 8,031 362
Page 18
18NatWest Group Q3 2025 Results October 2025 Group Q3'25, £bn Retail Banking Private Banking & Wealth Management Commercial & Institutional Central items & other 2 Group Net interest income 1.5 0.2 1.6 (0.0) 3.3 Non-interest income 0.1 0.1 0.7 0.2 1.1 Total income 1.7 0.3 2.2 0.2 4.3 Income ex-notable items 1.7 0.3 2.2 0.0 4.2 Other operating expenses (0.7) (0.2) (1.1) (0.0) (2.0) Litigation and conduct (0.0) (0.0) (0.1) 0.0 (0.0) Operating expenses (0.7) (0.2) (1.1) 0.0 (2.0) Operating profit/(loss) before impairment (losses) 0.9 0.1 1.1 0.2 2.3 Impairment (losses) (0.1) (0.0) (0.1) (0.0) (0.2) Operating profit/(loss) 0.9 0.1 1.0 0.2 2.2 Net loans to customers - amortised cost 216.0 18.8 149.7 30.8 415.3 Customer Deposits 195.8 40.6 198.3 0.8 435.5 Loan: deposit ratio 3 110% 46% 74% n.m 88% RWAs 69.1 11.4 107.0 1.6 189.1 Return on equity / tangible equity 26.4% 23.4% 19.7% nm 22.3% Cost:income ratio (excl. litigation and conduct) 42.8% 60.6% 48.0% nm 45.8% £bn
Page 19
2,899 2,968 3,026 3,094 3,268 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Net interest income 162 Q3’24 163 Q4’24 Q3’25Q2’25 543542 161 Q1’25 530 164 548 159 539 Group AIEAs 2.18% Q3’24 2.19% Q4’24 2.27% Q1’25 2.28% Q2’25 2.37% Q3’25 Group NIM1 o.w. Liquid Asset Buffer 19NatWest Group Q3 2025 Results October 2025
Page 20
Average redemption yield1 Average reinvestment yield2,** 3.8% 3.5% • We continue to expect the product structural hedge notional to be broadly stable in 2025, with annual maturities of ~£35bn • Based on our assumptions for reinvestment yield and stable notional, we expect the product structural hedge income: • in 2025 to be £1bn higher than 2024; • in 2026 to be >£1bn higher than 2025; • in 2027 to be higher than 2026; and • in 2028 to be higher than 2027. *Average duration 2.5 years with mechanistic reinvestment. ** Average reinvestment yield increased from 3.7% as at Jun’25 to 3.8% as at Sept’25, reflecting YTD swap rate. ~0.0% 2.8 3.0 4.0 4.2 3.8 FY’23 FY’24 FY’25 FY’26 FY’27 +£0.2bn +£1bn >£1bn Product hedge gross income, £bn Gross income already written as at Jun’25, £bn ~0.4% >90% ~70%% of hedges already written as at Jun’25* 3.5% ~2.8% ~50% Product structural hedge FY'24 H1'25 Notional end of period £172bn £172bn Notional average £174bn £171bn Yield 1.75% 2.24% 20NatWest Group Q3 2025 Results October 2025
Page 21
135 134 227 229 69 73 FY’24 H1’25 436431 +1.0% Hedge mixDeposit mix 16% 31% 53% Subject to customer and market dynamics Term Deposit Income: • Volume: subject to customer behaviour • Margin: broadly stable Unhedged Deposit Income: • Volume: subject to mix • Margin: decreasing, subject to deposit passthrough Product Hedge Income: +£1bn vs 2024 • Volume: broadly stable notional • Margin: increasing due to higher reinvestment rate Non-interest- bearing balances 172 172 190 191 69 FY’24 73 H1’25 431 436 Product structural hedge Instant Access Term deposits Term Unhedged 17% 31% 53% 21NatWest Group Q3 2025 Results October 2025
Page 22
5.1 4.9 4.6 4.5 4.1 3.1 2.9 2.7 2.6 2.4 2.1 2.0 1.9 1.8 1.7 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Average base rate Average cost of interest bearing customer deposits across 3 businesses2 Average cost of total deposits across 3 businesses (42) (41) (40) (125) (142) (136) H1’24 FY’24 H1’25 (167) (183) (176) Structural Hedge Managed Margin • Static balance sheet – sensitivity illustration is based on period end balance sheet. • Passthrough – illustration assumes ~60% passthrough but the actual passthrough will depend on market dynamics 22NatWest Group Q3 2025 Results October 2025
Page 23
H1 2025 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 (£m) (£m) (£m) (£m) (£m) (£m) Structural Hedge (40) (125) (213) 40 125 213 Managed Margin (136) (97) (98) 118 101 116 Total (176) (222) (311) 158 226 329 FY 2024 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 (£m) (£m) (£m) (£m) (£m) (£m) Structural Hedge (41) (125) (212) 41 125 212 Managed Margin (142) (120) (125) 121 116 124 Total (183) (245) (337) 162 241 336 H1 2024 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 (£m) (£m) (£m) (£m) (£m) (£m) Structural Hedge (42) (129) (216) 42 129 216 Managed Margin (125) (107) (110) 93 97 110 Total (167) (236) (326) 135 226 326 -25 basis points parallel downward shift +25 basis points parallel upward shift +25 basis points parallel upward shift-25 basis points parallel downward shift +25 basis points parallel upward shift-25 basis points parallel downward shift 23NatWest Group Q3 2025 Results October 2025
Page 24
Total Income Period end notional Average Notional Total Yield (£m) (£bn) (£bn) % Equity 216 22 22 2.01 Product 1,900 172 171 2.24 Total 2,116 194 193 2.21 Total Income Period end notional Average Notional Total Yield (£m) (£bn) (£bn) % Equity 440 22 22 1.98 Product 3,039 172 174 1.75 Total 3,479 194 196 1.77 Total Income Period end notional Average Notional Total Yield (£m) (£bn) (£bn) % Equity 218 22 22 1.95 Product 1,392 175 176 1.58 Total 1,610 197 198 1.62 H1 2024 H1 2025 FY 2024 24NatWest Group Q3 2025 Results October 2025
Page 25
4.0 4.5 0.0 5.0 5.5 6.0 6.5 7.0 4.09 5.01 6.67 Q4’24 4.29 4.83 6.24 4.73 Q1’25 4.32 4.74 6.00 4.69 Q2’25 5.22 4.66 4.76 5.88 4.69 6.36 Q3’25 4.21 Q3’24 4.84 4.40 2.10 1.97 1.87 1.79 1.69 3.16 3.06 2.90 2.74 2.61 1.91 1.83 1.71 1.60 1.49 2.66 2.57 2.46 2.41 2.32 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 3.2 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Retail Banking Private Banking & Wealth Management Commercial & Institutional NatWest Group Retail Banking Private Banking & Wealth Management Commercial & Institutional NatWest Group 25NatWest Group Q3 2025 Results October 2025
Page 26
Upside Base Case Downside Extreme Upside Base Case Downside Extreme Upside Base Case Downside Extreme downside downside downside Weighting 21.7% 45.0% 20.7% 12.6% Weighted average 23.2% 45.0% 19.1% 12.7% Weighted average 22.0% 45.0% 19.4% 13.6% Weighted average UK GDP – Annual Growth (%) 2025 1.4 1.1 1.0 (0.8) 0.9 2.0 1.4 0.4 (4.1) 0.6 3.9 1.2 (0.9) (4.0) 0.7 2026 2.9 1.1 (0.2) (3.6) 0.6 3.2 1.5 (0.5) (0.3) 1.3 1.4 1.4 1.1 0.9 1.3 5 year - CAGR2 2.1 1.3 0.6 (0.1) 1.2 2.0 1.3 0.5 (0.2) 1.1 1.9 1.2 0.6 (0.2) 1.1 UK Unemployment rate – annual average (%) 2025 4.5 4.6 4.7 4.8 4.6 3.9 4.4 4.8 5.4 4.5 3.4 4.4 5.7 7.8 4.9 2026 3.7 4.7 5.4 7.0 4.9 3.3 4.4 5.5 8.0 4.8 3.2 4.3 5.7 8.3 4.9 5 year average2 3.8 4.6 5.4 7.1 4.9 3.6 4.3 5.0 6.7 4.6 3.5 4.3 5.4 7.1 4.7 UK House Price Index – four quarter growth (%) 2025 4.1 3.5 (0.3) (2.6) 2.1 7.8 3.5 (1.2) (7.6) 2.2 8.9 3.1 (6.0) (13.2) 0.6 2026 7.9 3.4 (2.2) (11.9) 1.4 7.2 3.4 (2.8) (14.7) 1.1 4.5 3.4 1.0 (14.5) 1.3 5 year - CAGR2 5.7 3.4 0.5 (4.3) 2.5 5.8 3.5 0.8 (4.3) 2.7 5.3 3.3 1.0 (4.2) 2.5 UK Commercial Real Estate Price – four quarter growth (%) 2025 10.6 2.3 (2.0) (10.5) 1.6 14.1 2.4 (6.8) (23.7) 0.1 5.5 1.7 (8.0) (30.8) (3.4) 2026 6.3 2.3 (6.5) (24.8) (1.5) 4.4 1.5 (2.5) (12.7) 0.2 4.6 2.0 3.1 3.3 3.0 5 year - CAGR2 6.1 2.0 (0.3) (4.8) 1.8 5.4 1.2 (1.0) (5.7) 1.1 4.4 1.2 (0.7) (5.1) 0.8 Consumer price index - four quarter growth (%) 2025 3.2 2.9 4.2 2.4 3.2 2.9 2.3 5.8 0.6 2.9 0.5 2.1 6.7 0.5 2.5 2026 2.7 2.2 5.8 0.7 2.9 2.4 2.1 4.2 1.1 2.4 1.3 2.0 4.4 2.0 2.4 5 year - CAGR2 2.4 2.2 3.7 1.7 2.5 2.4 2.2 3.5 1.6 2.4 1.1 2.1 4.8 1.3 2.3 Scenario H1'24 FY'24 H1'25 26NatWest Group Q3 2025 Results October 2025
Page 27
5% 50% 22% 18% 4% Commercial Real Estate (CRE) £19.0bn 4% of Group lending Loan-to-value of 48%1 Credit quality remained stable with very limited instances of specific cases deteriorating Group mortgages £215.1bn 50% of Group lending Loan-to-value of 56%1 stable year-on-year 62% 5Y, 29% 2Y, 1% 10Y, 5% Tracker2, 3% SVR £40bn or 20% of fixed book matures in 20253 o £10bn or 5% of fixed book matures in Q4’253 Corporate and other ex CRE £96.0bn 22% of Group lending Diverse corporate loan book, with exposure across a broad range of sectors Credit quality remains stable Includes: • £15.9bn Consumer industries • £17.1bn Mobility and logistics Personal: £234.9bn, 55% of group Non-personal: £192.4bn, 45% of group Credit cards and other unsecured £19.7bn 5% of Group lending Portfolio default rates remain low New to book arrears remain stable and low 45% 55% Sovereign & Financial Institutions £77.4bn 18% of Group lending Over 70% less than 12-month maturity Includes £38.2bn Reverse repos Credit Cards & Other Mortgages Corporate and other ex CRE Sovereign & FI’s CRE 27NatWest Group Q3 2025 Results October 2025
Page 28
143 160 171 182 187 189 192 17 FY’19 17 FY’20 17 FY’21 21 FY’22 21 FY’23 21 FY’24 21 H1’25 160 177 188 203 208 210 213 Buy-to-let Mortgage Book, £bn1 Owner occupied Mortgage Book, £bn1 Average LTV (Owner occupied),%1 3%5%1%62%29%H1’25 3%6%1%63%27%FY’24 4%6%1%64%24%FY’23 4%4%1%66%25%FY’22 2Y 5Y 10Y Tracker SVR 57%H1’25 52%FY’24 32%FY’23 8%FY’22 69% 65% 45% 19% 57 56 54 53 55 56 0.62% 0.66% 0.64% 0.53% 0.58% 0.63% 0.63% 0.91% 0.83% 0.71% 0.91% 0.91% 0.89%0.78% FY’19 FY’20 FY’21 FY’22 FY’23 FY’24 H1’25 NatWest2 UK Industry average3 of which customer rates >4%2 92% fixed 8% variable Number of UK mortgages >3 months in arrears 56 28NatWest Group Q3 2025 Results October 2025
Page 29
29NatWest Group Q3 2025 Results October 2025 ECL coverage, % 0.83% 0.87% Stage 3 ECL coverage, %34.40% 40.59% 432 507 625 564 620 2,032 2,325 29937 FY’24 81 Acquisitions 10 Changes in economic forecast (20) Changes in risk metrics & exposure: Stages 1&2 Changes in risk metrics & exposure: Stage 3 (71) Judgemental changes1 (272) Write-offs and other 23332 9M’25 3,425 3,717 Economic uncertainty PMA Other PMA Stage 3 ex PMA Stage 2 ex PMA Stage 1 ex PMA Retail Banking Private Banking & Wealth Management Commercial & Institutional Central items & other Group 9M'25 (£m) 323 4 206 2 535 9M'25(bps) 20bps 3bps 18bps nm 17bps 9M'24 (£m) 266 (14) 52 (11) 293 9M'24(bps) 17bps (10)bps 5bps nm 10bps Q3'25 (£m) 97 3 52 1 153 Q3'25(bps) 18bps 6bps 14bps nm 15bps Q2'25 (£m) 117 0 76 0 193 Q2'25(bps) 22bps 0bps 20bps nm 19bps Q1'25 (£m) 109 1 78 1 189 Q1'25(bps) 21bps 2bps 22bps nm 19bps
Page 30
4.5% 1.8% 2.5% 1.7% 1.2% H1'25 Requirement 14.2% 3.25% 0.6% 0.4% H1'25 RequirementQ3’25 5.0% 4.3% 10.3% MDA3 11.6%2 O-SII group risk add-on4 Countercyclical leverage ratio buffer7 Minimum Tier 1 capital requirement O-SII group risk add-on4 Countercyclical buffer5 Capital conservation buffer Pillar 2A6 Pillar 1 30NatWest Group Q3 2025 Results October 2025 Q3’25 1.6%
Page 31
151% 157% 141% 151% 148% FY'19 FY'22 FY'23 FY'24 Q3'25 £78.5bn Government & SSA2 bonds 84% Covered bonds Other (Level 2) 30% 70% HTC FVOCI • Majority of liquidity portfolio hedged for interest rate risk • Asset swap spread volatility is captured through Fair Value through Other Comprehensive Income (FVOCI) • FVOCI movement (post-tax) £81m in 9M’25 74.3 142.0 99.9 88.6 80.5 50.6 26.6 48.2 72.4 78.5 74.4 63.9 74.7 61.2 80.1 FY’19 FY’22 FY’23 FY’24 Q3’25 199.4 232.6 222.8 222.3 239.1 Secondary LiquiditySecuritiesCash Average 11% 6% NatWest Group Q3 2025 Results October 2025 31
Page 32
Group holding company 2025 guidance 2025 issuance1 NatWest Group plc Senior unsecured (MREL) £4bn to £5bn ~£4.2bn • €1.25bn 5NC4 • €1.25bn 11NC10 Social • €1.0bn 9NC8 • $300m 4NC3 FRN • $1.25bn 6NC5 Tier 2 capital ~£1bn ~£0.9bn • €1.0bn 10NC5 Additional Tier 1 ~£1bn £1.25bn • £750m PerpNC7 • £500m PerpNC10.5 Operating company NatWest Markets Plc Senior unsecured (non-MREL) £4bn to £5bn £5.4bn • €1.0bn 5Yr FXD • €1.0bn 3Yr FRN • €1.25bn 5Yr FXD • $500m 3Yr FRN • $750m 3Yr FXD • $350m 5Yr FRN • $900m 5Yr FXD • CHF220m 5Yr FXD • A$400m 5Yr FXD • A$600m 5yr FRN NatWest Group Q3 2025 Results October 2025 32
Page 33
Senior ratings Moody’s S&P Fitch Group holding company NatWest Group plc A3 Stable A- Stable A+ Stable Ring-fenced bank operating companies NatWest Bank Plc A1 Stable2 A+ Stable AA- Stable Royal Bank of Scotland plc A1 Stable2 A+ Stable AA- Stable NatWest Bank Europe GMBH Not rated A+ Stable AA- Stable Non ring-fenced bank operating companies NatWest Markets Plc A1 Stable A Stable AA- Stable NatWest Markets N.V. A1 Stable A Stable AA- Stable NatWest Markets Securities Inc Not rated A Stable A+ Stable RBSI Ltd A1 Stable3 A Stable AA- Stable Capital ratings Group holding company NatWest Group plc Tier 24 Baa1 BBB A- AT14 Baa3 BB BBB NatWest Group Q3 2025 Results October 2025 33
Page 34
Slide 3: 1. Gross loans across 3 businesses. 2. Customer deposits across 3 businesses. 3. Excludes notable items per slide 16. 4. Costs excluding litigation and conduct. Slide 5: 1. Excluding notable income items per slide 16. Slide 6: 1. Excluding notable income items per slide 16. 2. Group Net Interest Margin = Reported Group Net Interest Income / Group Average Interest Earning Assets; May not cast due to rounding. Slide 7: 1. Stock share of Retail Banking and Private Banking & Wealth Management mortgages, calculated as a percentage of balances outstanding of total sterling net secured lending to individuals not seasonally adjusted as per Aug’25 BoE data. 2. Stock share of Retail Banking credit cards management estimate calculated as a percentage of total sterling net credit card lending to individuals not seasonally adjusted as per Aug’25 BoE data. 3. C&I total figure for Q4’24 will not cast to Financial Supplement due to rounding. Slide 8: 1. May not cast due to rounding. 2. The Non-interest-bearing and Interest-bearing split for Commercial & Institutional is implied from the total for the three businesses and the disclosures for Retail Banking and Private Banking & Wealth Management. 3. Non-Interest-bearing balances for Retail Banking and Private Banking & Wealth Management are current accounts per Financial Supplement. 4. Interest-bearing balances for Retail Banking and Private Banking & Wealth Management are savings per Financial Supplement. Slide 10: 1. Loan impairment rate is the annualised loan impairment charge divided by gross customer loans. 2. Q3’24, Q4’24, Q1’25, Q2’25 and Q3’25 stage 3 impairment charge annualised for quarterly calculations. 3. Expected Credit Loss. 4. Post Model Adjustments. Slide 11: 1. May not cast due to rounding. Slide 12: 1. This page contains forward-looking statements. See p.35 of this presentation. 2. Total Income ex notable items. Slide 15: 1. The guidance, targets, expectations and trends discussed in this presentation represent NatWest Group management’s current expectations and are subject to change, including as a result of the factors described in the “Risk Factors” in the NWG 2024 Annual Report and Accounts on Form 20-F and the Summary Risk Factors in the NWG H1 IMS on Form 6-K. These statements constitute forward-looking statements. Slide 17: 1. May not cast due to rounding. 2. FVOCI and other movements. 3. Based on 8,031m shares as at end of Q3’25. Slide 18: 1. May not cast due to rounding. 2. Centre Net loans primarily comprises reverse repos. 3. Net customer loans held at amortised cost, excluding reverse repos, divided by total customer deposits, excluding repos. Slide 19: 1. Net Interest Margin (NIM) = Reported Group Net Interest Income / Group Average Interest Earning Assets. Slide 20: 1. Based on hedges written as at Jun’25. Average redemption yield reflects the average yield on maturities in the year. These are dynamic given changes in notional. 2. Average 5-year swap rate forecasts across 2025-2027 per NatWest Group IFRS 9 base case. Slide 21: 1. May not cast due to rounding. Slide 22: 1. Refer to page 403 of NWG FY’24 ARA for the definition of third-party rates. 2. Interest-bearing balances Retail Banking and Private Banking are savings. Slide 23: 1. page 69 of the H1’25 IMS. page 257 of FY’24 ARA, page 74 of NWG H1’24 IMS. Slide 25: 1. For NatWest Group plc this is the gross yield on the IEAs of the banking business; for Retail, Commercial & Institutional and Private it represents the third-party customer asset rate. 2. For NatWest Group plc this is the cost of interest- bearing liabilities of the banking business plus the benefit from free funds; for Retail Banking and Commercial & Institutional it represents the third-party customer funding rate which includes both interest-bearing and non-interest-bearing deposits. Slide 26: 1. Full details of the economic assumptions can be found on pages 17-20 of the H1’25 IMS, 190-193 of NWG FY’24 ARA, pages 18 - 21 of H1’24 IMS. 2. The average for the parameters are based on: Five calendar year CAGR for GDP; Five calendar year average for Unemployment rate; Q4 to Q4 five-year CAGR for other parameters. Slide 27: 1. Total portfolio average LTV% as at H1’25 2. This includes ~2% of other off-sale mortgage products. 3. Does not include any GNL assumption, but only based on contractual maturity. 4. Loans at amortised cost and FVOCI. The chart numbers may not cast due to rounding. Slide 28: 1. FY19-FY21 balances reflect 3 businesses, excluding Ulster. 2. Based on Retail Banking mortgages, which make up c.95% of the group mortgage balances. 3. UK industry average source is UK Finance, data latest available as at March’25. 4. Including Retail and Private. Slide 29: 1. Judgemental changes: changes in post model adjustments for Stage 1, Stage 2 and Stage 3. Slide 30: 1. Based on assumption of static regulatory capital requirement. 2. May not cast due to rounding. 3. MDA = Maximum Distributable Amount. 4. O-SII buffer of 1.5% applies to the ring-fenced bank holding company. The equivalent O-SII Group Risk Add-on’ is ~1.2%. The O-SII Group Risk Add-on is included in the Group’s minimum supervisory minimum. 5. The CCyB requirement is based on the weighted average of the buffer rates in effect for the countries in which institutions have exposures. The UK CCyB buffer is currently being maintained at 2%. 6. Pillar 2A requirements are expected to vary over time and are subject to at least annual review. 56.25% of the total Pillar 2A requirement must be met from CET1 capital. 7. The countercyclical leverage ratio buffer is set at 35% of NatWest Group’s CCyB. Slide 31: 1. May not cast due to rounding. 2. “SSA” = Sovereign, Supranational & Agency. Slide 32: 1. Includes primary/benchmark transactions only. Does not include private placements Slide 33: 1. As of 24th October 2025. 2. Moody’s long-term Issuer and Deposit Rating. The ring-fenced bank operating companies do not issue rated senior unsecured debt. Nevertheless, Moody’s assigns an Issuer Rating. The outlook on both ratings is Stable. 3. Moody’s Deposit rating. Senior Unsecured Debt rating is A2. The outlook on both ratings is Stable. 4. Ratings are based on outstanding instruments issued by NatWest Group. 34NatWest Group Q3 2025 Results October 2025
Page 35
Forward-looking statements The guidance, targets, expectations and trends discussed in this presentation represent NatWest Group management’s current expectations and are subject to change, including as a result of the factors described in the “Risk Factors” in the NatWest Group plc 2024 Annual Report and Accounts on Form 20-F, and the Summary Risk Factors in the NWG H1 2025 IMS on Form 6-K. Cautionary statement regarding forward-looking statements This presentation 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 presentation 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, CET1 ratio, RWA levels, payment of dividends and participation in directed buybacks), 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, 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-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's 2024 Annual Report and Accounts on Form 20-F, NatWest Group’s Interim Management Statement for Q1, H1 and Q3 2025 on Form 6-K, and its other public filings. The forward-looking statements contained in this presentation speak only as of the date of this presentation and NatWest Group plc does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise, except to the extent legally required. Cautionary statement regarding alternative performance measures \ NatWest Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). This presentation may contain a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-GAAP financial measures in accordance with the Securities and Exchange Commission (SEC) regulations (together, APMs). APMs 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. APMs 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. Any APMs included in this presentation, are not measures within the scope of IFRS or GAAP, are based on a number of assumptions that are subject to uncertainties and change, and are not a substitute for IFRS or GAAP measures and a reconciliation to the closest IFRS or GAAP measure is presented where appropriate. Climate and sustainability-related disclosures Climate and sustainability-related disclosures in this presentation are not measures within the scope of IFRS, use a greater number and level of judgments, assumptions and estimates, including with respect to the classification of climate and sustainable funding and financing activities, than our reporting of historical financial information in accordance with IFRS. These judgments, assumptions and estimates are highly likely to change materially over time, and, when coupled with the longer time frames used in these disclosures, make any assessment of materiality inherently uncertain. In addition, our climate risk analysis, our ambition to be net zero across our financed emissions, assets under management and operational value chain by 2050 and the implementation of our climate transition plan remain under development, and the data underlying our analysis and strategy remain subject to evolution over time. The process we have adopted to define, gather and report data on our performance on climate and sustainability- related measures is not subject to the formal processes adopted for financial reporting in accordance with IFRS and there are currently limited industry standards or globally recognised established practices for measuring and defining climate and sustainability- related metrics. As a result, we expect that certain climate and sustainability-related disclosures made in this presentation are likely to be amended, updated, recalculated or restated in the future. Refer to the cautionary statement in the section entitled ‘Climate-related and other forward-looking statements and metrics’ of the NatWest Group 2024 Sustainability Report. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or a solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. 35NatWest Group Q3 2025 Results October 2025