Interim report
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NatWest Group plc natwestgroup.com Q3 202 5 Interim Management Statement
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Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 1 Inside this report Business performance summary 2 Q3 2025 performance summary 3 Performance key metrics and ratios 5 Chief Financial Officer’s review 6 Retail Banking 7 Private Banking & Wealth Management 8 Commercial & Institutional 9 Central items & other 10 Segment performance Risk and capital management 15 Credit risk 15 Segment analysis – portfolio summary 16 Segment analysis – loans 16 Movement in ECL provision 17 ECL post model adjustments 18 Sector analysis – portfolio summary 23 Capital, liquidity and funding risk 29 Pension risk Financial statements and notes 30 Condensed consolidated income statement 31 Condensed consolidated statement of comprehensive income 32 Condensed consolidated balance sheet 33 Condensed consolidated statement of changes in equity 35 Presentation of condensed consolidated financial statements 35 Litigation and regulatory matters 36 Post balance sheet events Additional information 37 Presentation of information 37 Statutory accounts 37 Contacts 37 Forward-looking statements 38 Non-IFRS financial measures 43 Performance measures not defined under IFRS NatWest Group
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 2 Q3 2025 performance summary Chief Executive, Paul Thwaite, commented: “NatWest Group delivered another strong performance in the third quarter of 2025, underpinned by healthy levels of customer activity and the continued support we provide to them. This is driving positive momentum across our three businesses, with continued lending growth and deposits remaining stable. With our strategic focus on growth, NatWest Group’s impact can be felt right across the economy, as we help people get on the housing ladder, save and invest for the future and grow their businesses – from innovative start-ups and vital mid-market firms to the largest multinationals responsible for critical infrastructure projects. We are also becoming a much simpler bank, with tight control of costs supporting our digital transformation that is enabling us to anticipate and meet the changing needs of customers at pace. As a result of our consistent delivery and capital generation, we have upgraded our income and returns guidance for 2025 and are well placed to support our customers, invest for the future and deliver returns to our shareholders.” Growth in all of our customer businesses We have delivered a strong financial performance in the quarter, with income and lending growth across all of our businesses demonstrating our broad-based support for our customers. Total income excluding notable items was up £0.2 billion to £4.2 billion in the quarter, driving an attributable profit of £1.6 billion and a Return on Tangible Equity (RoTE) of 22.3%. In the third quarter net loans to customers excluding central items were up by £4.4 billion as we met customer needs while deploying capital where returns were attractive. Deposits remained broadly stable across each of the businesses, with a small overall decrease in the quarter of £1.1 billion in customer deposits excluding central items. We continue to maintain a strong loan:deposit ratio (excl. repos and reverse repos) up 2% in the quarter to 88%, and a strong liquidity position with an average Liquidity Coverage Ratio (LCR) of 148%. Assets under management and administration (AUMA) grew strongly in the quarter, up by 8.1% to £56.0 billion assisted by strong client net inflows. Simplification continues to drive efficiency We continued to make good progress on becoming a simpler bank, delivering efficiencies from our investment programmes and driving efficiency in the business which resulted in a 5% improvement in our year to date cost:income (excl. litigation and conduct) ratio of 47.8%, compared with 52.8% in the same period of 2024. We are pleased with progress towards our objective of simplifying the way we operate, becoming a more agile and technology driven bank. Active balance sheet management creates capacity for growth We continued to actively manage our balance sheet and risk, delivering a £2.2 billion benefit from RWA management actions as we created capacity for growth. Capital generation pre-distributions was 101 basis points in the quarter. Our Common Equity Tier 1 (CET1) ratio of 14.2% was up c.60 basis points compared with Q4 2024 and c.60 basis points higher than Q2 2025. TNAV per share in Q3 2025 increased by 11 pence to 362 pence. Outlook(1) 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. We now expect income excluding notable items to be around £16.3 billion for 2025 and to achieve a Return on Tangible Equity of greater than 18.0%. Except for this strengthened guidance, we reaffirm the outlook provided in our H1 2025 Interim Results. (1) 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 2024 Annual Report and Accounts and Form 20-F and the Summary Risk Factors in the NatWest Group plc 2025 Interim Results announcement. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 3 Business performance summary Nine months ended Quarter ended 30 September 30 September 30 September 30 June 30 September 2025 2024 2025 2025 2024 Summary consolidated income statement £m £m Variance £m £m Variance £m Variance Net interest income 9,388 8,307 13.0% 3,268 3,094 5.6% 2,899 12.7% Non-interest income 2,929 2,571 13.9% 1,064 911 16.8% 845 25.9% Total income 12,317 10,878 13.2% 4,332 4,005 8.2% 3,744 15.7% Litigation and conduct costs (130) (142) (8.5%) (12) (74) (83.8%) (41) (70.7%) Other operating expenses (5,884) (5,740) 2.5% (1,984) (1,965) 1.0% (1,784) 11.2% Operating expenses (6,014) (5,882) 2.2% (1,996) (2,039) (2.1%) (1,825) 9.4% Profit before impairment losses 6,303 4,996 26.2% 2,336 1,966 18.8% 1,919 21.7% Impairment losses (535) (293) 82.6% (153) (193) (20.7%) (245) (37.6%) Operating profit before tax 5,768 4,703 22.6% 2,183 1,773 23.1% 1,674 30.4% Tax charge (1,412) (1,232) 14.6% (502) (439) 14.4% (431) 16.5% Profit from continuing operations 4,356 3,471 25.5% 1,681 1,334 26.0% 1,243 35.2% Profit from discontinued operations, net of tax - 12 (100.0%) - - - 1 (100.0%) Profit for the period 4,356 3,483 25.1% 1,681 1,334 26.0% 1,244 35.1% Performance key metrics and ratios Notable items within total income (1) £189m £102m 85.3% £166m (£5m) nm (£28m) nm Total income excluding notable items (1) £12,128m £10,776m 12.5% £4,166m £4,010m 3.9% £3,772m 10.4% Net interest margin (1) 2.31% 2.11% 20bps 2.37% 2.28% 9bps 2.18% 19bps Average interest earning assets (1) £544bn £526bn 3.4% £548bn £543bn 0.9% £530bn 3.4% Cost:income ratio (excl. litigation and conduct) (1) 47.8% 52.8% (5.0%) 45.8% 49.1% (3.3%) 47.6% (1.8%) Loan impairment rate (1) 17bps 10bps 7bps 15bps 19bps (4bps) 25bps (10bps) Profit attributable to ordinary shareholders £4,086m £3,271m 24.9% £1,598m £1,236m 29.3% £1,172m 36.3% Total earnings per share attributable to ordinary shareholders - basic 50.7p 38.3p 12.4p 19.8p 15.3p 4.5p 14.1p 5.7p Return on Tangible Equity (RoTE) (1) 19.5% 17.0% 2.5% 22.3% 17.7% 4.6% 18.3% 4.0% Climate and transition finance (2) £7,569m na na £7,569m na na na na nm = not meaningful, na = not applicable. For the footnotes to this table refer to the following page.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 4 Business performance summary continued As at 30 September 30 June 31 December 2025 2025 2024 Balance sheet £bn £bn Variance £bn Variance Total assets 725.6 730.8 (0.7%) 708.0 2.5% Loans to customers - amortised cost 415.3 407.1 2.0% 400.3 3.7% Loans to customers excluding central items (1,3) 384.5 380.1 1.2% 368.5 4.3% Loans to customers and banks - amortised cost and FVOCI 427.3 417.9 2.2% 410.2 4.2% Total impairment provisions (4) 3.7 3.7 - 3.4 8.8% Expected credit loss (ECL) coverage ratio 0.87% 0.87% - 0.83% 4bps Assets under management and administration (AUMA) (1) 56.0 51.8 8.1% 48.9 14.5% Customer deposits 435.5 436.8 (0.3%) 433.5 0.5% Customer deposits excluding central items (1,3) 434.7 435.8 (0.3%) 431.3 0.8% Liquidity and funding Average Liquidity Coverage Ratio (LCR) (5) 148% 150% (2.0%) 151% (3.0%) Liquidity portfolio 239 217 10.1% 222 7.7% Average Net Stable Funding Ratio (NSFR) (5) 135% 136% (1.0%) 137% (2.0%) Loan:deposit ratio (excl. repos and reverse repos) (1) 88% 86% 2% 85% 3% Total wholesale funding 93 91 2.2% 86 8.1% Short-term wholesale funding 37 35 5.7% 33 12.1% Capital and leverage Common Equity Tier 1 (CET1) ratio (6) 14.2% 13.6% 60bps 13.6% 60bps Total capital ratio (6) 20.2% 19.7% 50bps 19.7% 50bps Pro forma CET1 ratio (excl. foreseeable items) (7) 15.1% 14.6% 50bps 14.3% 80bps Risk-weighted assets (RWAs) 189.1 190.1 (0.5%) 183.2 3.2% UK leverage ratio 5.0% 5.0% - 5.0% - Tangible net asset value (TNAV) per ordinary share (1,8) 362p 351p 11p 329p 33p Number of ordinary shares in issue (millions) (8) 8,031 8,088 (0.7%) 8,043 (0.1%) (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. 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 (30 June 2025 – £0.1 billion; 31 December 2024 – £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 30 September 2025 excludes foreseeable items of £1,721 million: £1,275 million for ordinary dividends and £446 million foreseeable charges (30 June 2025 excludes foreseeable items of £1,994 million: £1,244 million for ordinary dividends and £750 million foreseeable charges; 31 December 2024 excludes foreseeable items of £1,249 million for ordinary dividends). (8) The number of ordinary shares in issue excludes own shares held.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 5 Chief Financial Officer’s review We delivered another strong performance in the third quarter with total income excluding notable items up by 3.9% on Q2 2025 and 10.4% on Q3 2024. We made further progress on simplification and as a result our cost:income ratio (excl. litigation and conduct) was 47.8% in the year to date compared with 52.8% in the prior year. As a result, we achieved RoTE of 22.3%, including more than 2 percentage points from one-off items in the quarter. The balance sheet continues to grow, with another quarter of strong lending growth of £4.4 billion excluding central items while customer deposits excluding central items remained broadly stable with a small decrease overall of £1.1 billion in the quarter. Liquidity position remains robust with an average LCR of 148%. Our CET1 ratio came in just above the top end of our target range at 14.2% as we actively managed the balance sheet, delivering RWA management actions of £2.2 billion in Q3 2025 which created continued capacity for growth. Strong Q3 2025 performance across growth and simplification Total income increased by 8.2% in Q3 2025 compared with Q2 2025 and was 15.7% higher than Q3 2024. Total income excluding notable items was £156 million higher than Q2 2025 reflecting deposit margin expansion alongside the benefit of one additional day in the quarter. As a result, NIM increased by 9 basis points in the quarter to 2.37%. Total operating expenses were £43 million lower than Q2 2025 and £171 million higher than Q3 2024. Other operating expenses were £19 million higher than Q2 2025 primarily reflecting integration costs following the acquisition of balances from Sainsbury’s Bank and higher restructuring costs as we continue to develop core skills for the future, including increasing the number of software engineering roles. Our focus remains on driving cost savings to create capacity for further investment to accelerate our bank-wide simplification. Headcount reduced by around 600 FTE compared with Q3 2024 and was 100 FTE lower than Q2 2025. We continue to proactively manage risk The net impairment charge of £153 million, or 15 basis points of gross customer loans, was £40 million lower than Q2 2025 as Stage 3 charges were lower in Commercial & Institutional and the prior quarter included an £81 million charge on the acquisition of balances from Sainsbury’s Bank, offset by lower post model adjustment releases. Compared with Q2 2025, our ECL provision and our ECL coverage ratio remained stable at £3.7 billion and 0.87% respectively. We retain post model adjustments of £265 million and remain comfortable with the strong credit performance of our diversified prime loan book. Our lending aligns to our climate ambitions During Q3 2025 we provided £7.6 billion in climate and transition finance against our target to provide £200 billion between 1 July 2025 and the end of 2030, which is underpinned by our climate and transition finance framework. We also achieved our aim to provide £10 billion in lending for EPC A and B rated residential properties between 1 January 2023 and the end of 2025, with £10.8 billion lending up to 30 September 2025. Active balance sheet management supporting robust liquidity levels We continued to support our customers as net loans to customers excluding central items increased £4.4 billion in Q3 2025. Retail Banking mortgage balances increased by £1.7 billion and Commercial & Institutional balances were up by £2.5 billion, largely within Corporate & Institutions and Commercial Mid-market. Customer deposits excluding central items reduced £1.1 billion in the quarter to £434.7 billion primarily reflecting a reduction in savings balances in Retail Banking and Private Banking & Wealth Management. Commercial & Institutional increased by £0.4 billion largely due to higher balances within Commercial Mid-market and Business Banking. Total business term balances reduced to 16% of the book, down from 17% at Q2 2025. We continue to actively manage our balance sheet as RWAs decreased by £1.0 billion in the quarter to £189.1 billion, including a further £2.2 billion benefit from RWA management actions as we created capacity for lending growth. The average LCR of 148% (spot LCR: 141%) representing £51.6 billion headroom above 100% minimum requirement, decreased by 2 percentage points compared with Q2 2025 primarily due to higher lending. Our primary liquidity at Q3 2025 was £159 billion, of which £80.5 billion, or 51% was cash and balances at central banks. Total wholesale funding increased by £2.1 billion in the quarter to £92.9 billion. Shareholder return supported by strong capital generation An attributable profit of £1,598 million and RoTE of 22.3% included more than 2 percentage points from one-off items in the quarter, including a £147 million gain from the release of a funding valuation adjustment applied to a portfolio of derivatives. The CET1 ratio of 14.2% was c.60 basis points higher than Q2 2025 principally reflecting the attributable profit for the quarter, c.85 basis points, and the reduction in RWAs, c.10 basis points, partially offset by the foreseeable ordinary dividend, c.40 basis points. TNAV per share increased by 11 pence in the quarter to 362 pence primarily reflecting the profit for the period partially offset by the interim dividend payment.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 6 Business performance summary Retail Banking Quarter ended 30 September 30 June 30 September 2025 2025 2024 £m £m £m Total income 1,662 1,594 1,459 Operating expenses (715) (742) (659) of which: Other operating expenses (712) (734) (656) Impairment losses (97) (117) (144) Operating profit 850 735 656 Return on equity (1) 26.4% 23.2% 21.4% Net interest margin (1) 2.64% 2.59% 2.43% Cost:income ratio (excl. litigation and conduct) (1) 42.8% 46.0% 45.0% Loan impairment rate (1) 18bps 22bps 28bps As at 30 September 30 June 31 December 2025 2025 2024 £bn £bn £bn Net loans to customers (amortised cost) 216.0 214.3 208.4 Customer deposits 195.8 196.6 194.8 RWAs 69.1 69.4 65.5 (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. During Q3 2025, Retail Banking delivered a return on equity of 26.4% and an operating profit of £850 million, with continued positive income and net interest margin momentum. We have increased net mortgage lending by £1.7 billion and, as we widen our customer proposition, we have announced our partnership with Landbay to support more buy-to-let property investors. In addition, we have continued to progress the integration of our recently acquired Sainsbury’s customers, with credit card customers now able to view their credit card, link their Sainsbury’s Nectar card and view their Nectar points from credit card spending in our app. Retail Banking provided £1.2 billion of climate and transition financing in Q3 2025 from lending on EPC A and B rated residential properties. Q3 2025 performance Total income was £68 million, or 4.3%, higher than Q2 2025 reflecting deposit margin expansion, full quarter impact of balances acquired from Sainsbury’s Bank and the benefit of one additional day in the quarter. Q3 2025 total income was £203 million, or 13.9%, higher than Q3 2024 reflecting deposit margin expansion, lending growth and the impact of balances acquired from Sainsbury’s Bank. Net interest margin was 5 basis points higher than Q2 2025 largely reflecting deposit margin expansion and full quarter impact of balances acquired from Sainsbury’s Bank. Other operating expenses were £22 million, or 3.0%, lower than Q2 2025 reflecting non-repeat of Q2 2025 FCA regulatory fees and property exit costs. Other operating expenses were £56 million, or 8.5%, higher than Q3 2024 reflecting higher investment spend, partly offset by a 4.9% reduction in headcount. An impairment charge of £97 million, compared with a £117 million charge in Q2 2025, largely driven by good book model releases. Stage 3 default driven charge remains stable. Net loans to customers increased by £1.7 billion, or 0.8%, in Q3 2025 driven by higher mortgage balances of £1.7 billion, or 0.9%, higher cards balances of £0.1 billion, or 1.2%, partly offset by lower personal advances of £0.1 billion, or 1.1%. Customer deposits decreased by £0.8 billion, or 0.4%, in Q3 2025 reflecting lower savings balances of £1.4 billion, partly offset by increased current account balances of £0.6 billion. RWAs decreased by £0.3 billion, or 0.4%, in Q3 2025 primarily due to RWA management actions, largely offset by book movements.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 7 Business performance summary continued Private Banking & Wealth Management Quarter ended 30 September 30 June 30 September 2025 2025 2024 £m £m £m Total income 284 274 253 of which: AUMA income (1) 75 72 68 Operating expenses (173) (172) (166) of which: Other operating expenses (172) (171) (166) Impairment (losses)/releases (3) - 3 Operating profit 108 102 90 Return on equity (1) 23.4% 22.5% 19.7% Net interest margin (1) 2.66% 2.56% 2.50% Cost:income ratio (excl. litigation and conduct) (1) 60.6% 62.4% 65.6% Loan impairment rate (1) 6bps - (7bps) AUMA net flows (£bn) (1) 1.2 1.3 0.9 As at 30 September 30 June 31 December 2025 2025 2024 £bn £bn £bn Net loans to customers (amortised cost) 18.8 18.6 18.2 Customer deposits 40.6 41.3 42.4 Assets under management (AUM) (1) 41.9 39.0 37.0 Assets under administration (AUA) (1) 14.1 12.8 11.9 Assets under management and administration (AUMA) (1) 56.0 51.8 48.9 Total combined assets and liabilities (CAL) (1,2) 114.2 110.4 108.4 RWAs 11.4 11.5 11.0 (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) CAL refers to customer deposits, net loans to customers and AUMA. To avoid double counting, investment cash is deducted as it is reported within customer deposits and AUMA. During Q3 2025, Private Banking & Wealth Management continued to deliver a strong performance with an operating profit of £108 million, return on equity of 23.4% and cost:income ratio (excl. litigation and conduct) of 60.6%. We have continued to progress our simplification agenda, including the rollout of a new workflow tool for investment advice, which has reduced the time to deliver simple investment advice. Our digital experience also continues to improve, with mobile NPS rising to 54, reflecting the ongoing enhancements to our mobile app. Private Banking & Wealth Management provided £0.1 billion of climate and transition financing in Q3 2025, principally in relation to mortgages on residential properties with an EPC rating of A or B and wholesale transactions. Q3 2025 performance Total income was £10 million, or 3.6%, higher than Q2 2025 primarily reflecting balance growth across lending and AUMA and deposit margin expansion. Q3 2025 total income was £31 million, or 12.3%, higher than Q3 2024 primarily reflecting balance growth across deposits, lending and AUMA, and deposit margin expansion. Net interest margin was 10 basis points higher than Q2 2025 largely reflecting deposit margin expansion. Other operating expenses were £1 million, or 0.6%, higher than Q2 2025 primarily reflecting timing of non-staff costs. Other operating expenses were £6 million, or 3.6%, higher than Q3 2024 primarily reflecting higher back office costs, partly offset by a 4.5% reduction in headcount. An impairment charge of £3 million in Q3 2025, compared with no impairment charge in Q2 2025. Stage 3 charges remain at low levels. CAL increased by £3.8 billion, or 3.4%, in Q3 2025, supported by growth in AUMA and lending balances. Net loans to customers increased by £0.2 billion, or 1.1%, in Q3 2025 driven by higher personal lending balances. Customer deposits decreased by £0.7 billion, or 1.7%, in Q3 2025 driven by seasonal tax outflows and continued flows to AUMAs. AUMA balances increased by £4.2 billion, in Q3 2025, driven by positive market movements of £3.0 billion, AUM net inflows of £0.6 billion, AUA net inflows of £0.4 billion and Cushon net inflows of £0.2 billion. AUM net flows as a percentage of opening balances are 6.2% on an annualised basis.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 8 Business performance summary continued Commercial & Institutional Quarter ended 30 September 30 June 30 September 2025 2025 2024 £m £m £m Net interest income 1,550 1,496 1,392 Non-interest income 658 651 679 Total income 2,208 2,147 2,071 Operating expenses (1,115) (1,107) (945) of which: Other operating expenses (1,060) (1,047) (911) Impairment losses (52) (76) (109) Operating profit 1,041 964 1,017 Return on equity (1) 19.7% 17.9% 19.9% Net interest margin (1) 2.36% 2.35% 2.24% Cost:income ratio (excl. litigation and conduct) (1) 48.0% 48.8% 44.0% Loan impairment rate (1) 14bps 20bps 31bps As at 30 September 30 June 31 December 2025 2025 2024 £bn £bn £bn Net loans to customers (amortised cost) 149.7 147.2 141.9 Customer deposits 198.3 197.9 194.1 Funded assets (1) 348.2 343.1 321.6 RWAs 107.0 107.8 104.7 (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. During Q3 2025, Commercial & Institutional continued to deliver a strong performance in income and operating profit, supporting a return on equity of 19.7%, an increase from 17.9% in Q2 2025. We have supported sectors that are vital to the health and success of the UK economy including continued support for UK Infrastructure and Housing Associations, reaching £7.4 billion of lending to Social Housing against our target of £7.5 billion. We saw another quarter of continued strong demand for FX risk management against a backdrop of volatile markets, supporting income. We have improved customer experience through our Bankline transformation and modernised digital platforms, driving deeper customer engagement. Commercial & Institutional provided £6.3 billion of climate and transition funding in Q3 2025 to support customers investing in the transition to net zero. Q3 2025 performance Total income was £61 million, or 2.8%, higher than Q2 2025 primarily reflecting deposit margin expansion, lending growth as well as the impact of an additional day in the quarter. Q3 2025 total income was £137 million, or 6.6%, higher than Q3 2024 primarily reflecting deposit margin expansion and customer lending growth. Net interest margin was 1 basis point higher than Q2 2025 reflecting deposit margin expansion. Other operating expenses were £13 million, or 1.2%, higher than Q2 2025 largely reflecting increased investment spend partially offset by non-repeat of Q2 2025 FCA regulatory fees and one-off VAT recovery in the quarter. Other operating expenses were £149 million, or 16.4%, higher than Q3 2024 reflecting inflationary increases on staff costs and increased investment spend. An impairment charge of £52 million in Q3 2025 compared with a £76 million charge in Q2 2025 reflecting lower levels of Stage 3 impairments. Net loans to customers increased by £2.5 billion, or 1.7%, in Q3 2025 principally due to Funds lending and Large Corporate growth within Corporate & Institutions and Regional and Commercial Real Estate growth within Commercial Mid-market, partly offset by UK Government scheme repayments of £0.5 billion. Customer deposits increased by £0.4 billion, or 0.2%, in Q3 2025 largely reflecting higher balances within Commercial Mid-market and Business Banking. RWAs decreased by £0.8 billion, or 0.7%, in Q3 2025 primarily reflecting continued RWA management actions, partially offset by book movements and currency impacts.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 9 Business performance summary continued Central items & other Quarter ended 30 September 30 June 30 September 2025 2025 2024 £m £m £m Continuing operations Total income 178 (10) (39) Operating expenses 7 (18) (55) of which: Other operating expenses (40) (13) (51) Impairment (losses)/releases (1) - 5 Operating profit/(loss) 184 (28) (89) As at 30 September 30 June 31 December 2025 2025 2024 £bn £bn £bn Net loans to customers (amortised cost) 30.8 27.0 31.8 Customer deposits 0.8 1.0 2.2 RWAs 1.6 1.4 2.0 Q3 2025 performance Total income was £188 million higher than Q2 2025 primarily reflecting higher gains on interest and FX risk management derivatives not in accounting hedge relationships and Business Growth Fund profits partially offset with foreign exchange recycling losses. Other operating expenses were £27 million higher than Q2 2025 primarily due to one-off items including an HMRC tax credit in Q2 2025, timing of spend, as well as higher staff restructuring costs in the quarter as we pivot support towards developing critical core skills for the future. Net loans to customers increased by £3.8 billion in Q3 2025 driven by reverse repo activity in Treasury. Customer deposits decreased by £0.2 billion in Q3 2025 reflecting repo activity in Treasury.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 10 Segment performance Nine months ended 30 September 2025 Private Banking Retail & Wealth Commercial Central items Total NatWest Banking Management & Institutional & other Group £m £m £m £m £m Continuing operations Income statement Net interest income 4,471 555 4,505 (143) 9,388 Own credit adjustments - - 3 - 3 Other non-interest income 325 268 1,989 344 2,926 Total income 4,796 823 6,497 201 12,317 Direct expenses (604) (183) (1,192) (3,905) (5,884) Indirect expenses (1,519) (347) (1,930) 3,796 - Other operating expenses (2,123) (530) (3,122) (109) (5,884) Litigation and conduct costs (15) (2) (144) 31 (130) Operating expenses (2,138) (532) (3,266) (78) (6,014) Operating profit before impairment losses 2,658 291 3,231 123 6,303 Impairment losses (323) (4) (206) (2) (535) Operating profit 2,335 287 3,025 121 5,768 Total income excluding notable items (1) 4,796 823 6,494 15 12,128 Additional information Return on Tangible Equity (1) na na na na 19.5% Return on equity (1) 24.7% 21.0% 19.0% nm na Cost:income ratio (excl. litigation and conduct) (1) 44.3% 64.4% 48.1% nm 47.8% Total assets (£bn) 240.6 29.1 408.9 47.0 725.6 Funded assets (£bn) (1) 240.6 29.1 348.2 46.6 664.5 Net loans to customers - amortised cost (£bn) 216.0 18.8 149.7 30.8 415.3 Loan impairment rate (1) 20bps 3bps 18bps nm 17bps Impairment provisions (£bn) (1.9) (0.1) (1.7) - (3.7) Impairment provisions - Stage 3 (£bn) (1.2) - (1.1) - (2.3) Customer deposits (£bn) 195.8 40.6 198.3 0.8 435.5 Risk-weighted assets (RWAs) (£bn) 69.1 11.4 107.0 1.6 189.1 RWA equivalent (RWAe) (£bn) 69.9 11.4 108.0 1.9 191.2 Employee numbers (FTEs - thousands) 11.6 2.1 12.6 32.8 59.1 Third party customer asset rate (1) 4.34% 4.74% 6.04% nm nm Third party customer funding rate (1) (1.78%) (2.75%) (1.60%) nm nm Average interest earning assets (£bn) (1) 229.8 28.5 257.1 na 544.3 Net interest margin (1) 2.60% 2.60% 2.34% na 2.31% 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.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 11 Segment performance continued Nine months ended 30 September 2024 Private Banking Retail & Wealth Commercial Central items Total NatWest Banking Management & Institutional & other Group £m £m £m £m £m Continuing operations Income statement Net interest income 3,825 455 3,935 92 8,307 Own credit adjustments - - (5) - (5) Other non-interest income 324 242 1,941 69 2,576 Total income 4,149 697 5,871 161 10,878 Direct expenses (586) (190) (1,120) (3,844) (5,740) Indirect expenses (1,527) (331) (1,864) 3,722 - Other operating expenses (2,113) (521) (2,984) (122) (5,740) Litigation and conduct costs (16) (1) (111) (14) (142) Operating expenses (2,129) (522) (3,095) (136) (5,882) Operating profit before impairment losses/releases 2,020 175 2,776 25 4,996 Impairment (losses)/releases (266) 14 (52) 11 (293) Operating profit 1,754 189 2,724 36 4,703 Total income excluding notable items (1) 4,149 697 5,876 54 10,776 Additional information Return on Tangible Equity (1) na na na na 17.0% Return on equity (1) 19.4% 13.6% 17.4% nm na Cost:income ratio (excl. litigation and conduct) (1) 50.9% 74.7% 50.8% nm 52.8% Total assets (£bn) 231.1 27.3 398.7 54.8 711.9 Funded assets (£bn) (1) 231.1 27.3 331.1 53.7 643.2 Net loans to customers - amortised cost (£bn) 207.4 18.2 138.1 23.0 386.7 Loan impairment rate (1) 17bps (10bps) 5bps nm 10bps Impairment provisions (£bn) (1.9) (0.1) (1.6) - (3.6) Impairment provisions - Stage 3 (£bn) (1.1) - (1.0) - (2.1) Customer deposits (£bn) 192.0 39.7 195.7 3.7 431.1 Risk-weighted assets (RWAs) (£bn) 64.8 11.0 104.0 1.9 181.7 RWA equivalent (RWAe) (£bn) 65.3 11.0 105.3 2.4 184.0 Employee numbers (FTEs - thousands) 12.2 2.2 12.8 32.5 59.7 Third party customer asset rate (1) 3.95% 4.99% 6.74% nm nm Third party customer funding rate (1) (2.08%) (3.15%) (1.92%) nm nm Average interest earning assets (£bn) (1) 220.5 26.6 244.9 na 526.2 Net interest margin (1) 2.32% 2.29% 2.15% na 2.11% 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.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 12 Segment performance continued Quarter ended 30 September 2025 Private Banking Retail & Wealth Commercial Central items Total NatWest Banking Management & Institutional & other Group £m £m £m £m £m Continuing operations Income statement Net interest income 1,549 192 1,550 (23) 3,268 Own credit adjustments - - - - - Other non-interest income 113 92 658 201 1,064 Total income 1,662 284 2,208 178 4,332 Direct expenses (208) (61) (410) (1,305) (1,984) Indirect expenses (504) (111) (650) 1,265 - Other operating expenses (712) (172) (1,060) (40) (1,984) Litigation and conduct costs (3) (1) (55) 47 (12) Operating expenses (715) (173) (1,115) 7 (1,996) Operating profit before impairment losses 947 111 1,093 185 2,336 Impairment losses (97) (3) (52) (1) (153) Operating profit 850 108 1,041 184 2,183 Total income excluding notable items (1) 1,662 284 2,208 12 4,166 Additional information Return on Tangible Equity (1) na na na na 22.3% Return on equity (1) 26.4% 23.4% 19.7% nm na Cost:income ratio (excl. litigation and conduct) (1) 42.8% 60.6% 48.0% nm 45.8% Total assets (£bn) 240.6 29.1 408.9 47.0 725.6 Funded assets (£bn) (1) 240.6 29.1 348.2 46.6 664.5 Net loans to customers - amortised cost (£bn) 216.0 18.8 149.7 30.8 415.3 Loan impairment rate (1) 18bps 6bps 14bps nm 15bps Impairment provisions (£bn) (1.9) (0.1) (1.7) - (3.7) Impairment provisions - Stage 3 (£bn) (1.2) - (1.1) - (2.3) Customer deposits (£bn) 195.8 40.6 198.3 0.8 435.5 Risk-weighted assets (RWAs) (£bn) 69.1 11.4 107.0 1.6 189.1 RWA equivalent (RWAe) (£bn) 69.9 11.4 108.0 1.9 191.2 Employee numbers (FTEs - thousands) 11.6 2.1 12.6 32.8 59.1 Third party customer asset rate (1) 4.40% 4.66% 5.88% nm nm Third party customer funding rate (1) (1.69%) (2.61%) (1.49%) nm nm Average interest earning assets (£bn) (1) 233.0 28.6 260.5 na 548.1 Net interest margin (1) 2.64% 2.66% 2.36% na 2.37% 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.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 13 Segment performance continued Quarter ended 30 June 2025 Private Banking Retail & Wealth Commercial Central items Total NatWest Banking Management & Institutional & other Group £m £m £m £m £m Continuing operations Income statement Net interest income 1,484 182 1,496 (68) 3,094 Own credit adjustments - - (3) - (3) Other non-interest income 110 92 654 58 914 Total income 1,594 274 2,147 (10) 4,005 Direct expenses (230) (63) (403) (1,269) (1,965) Indirect expenses (504) (108) (644) 1,256 - Other operating expenses (734) (171) (1,047) (13) (1,965) Litigation and conduct costs (8) (1) (60) (5) (74) Operating expenses (742) (172) (1,107) (18) (2,039) Operating profit/(loss) before impairment losses 852 102 1,040 (28) 1,966 Impairment losses (117) - (76) - (193) Operating profit/(loss) 735 102 964 (28) 1,773 Total income excluding notable items (1) 1,594 274 2,150 (8) 4,010 Additional information Return on Tangible Equity (1) na na na na 17.7% Return on equity (1) 23.2% 22.5% 17.9% nm na Cost:income ratio (excl. litigation and conduct) (1) 46.0% 62.4% 48.8% nm 49.1% Total assets (£bn) 238.6 29.1 414.9 48.2 730.8 Funded assets (£bn) (1) 238.6 29.1 343.1 47.0 657.8 Net loans to customers - amortised cost (£bn) 214.3 18.6 147.2 27.0 407.1 Loan impairment rate (1) 22bps - 20bps nm 19bps Impairment provisions (£bn) (1.9) (0.1) (1.7) - (3.7) Impairment provisions - Stage 3 (£bn) (1.1) - (1.1) - (2.2) Customer deposits (£bn) 196.6 41.3 197.9 1.0 436.8 Risk-weighted assets (RWAs) (£bn) 69.4 11.5 107.8 1.4 190.1 RWA equivalent (RWAe) (£bn) 70.0 11.5 108.8 2.0 192.3 Employee numbers (FTEs - thousands) 11.8 2.1 12.8 32.5 59.2 Third party customer asset rate (1) 4.32% 4.74% 6.00% nm nm Third party customer funding rate (1) (1.79%) (2.74%) (1.60%) nm nm Average interest earning assets (£bn) (1) 230.0 28.5 255.6 na 543.2 Net interest margin (1) 2.59% 2.56% 2.35% na 2.28% 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.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 14 Segment performance continued Quarter ended 30 September 2024 Private Banking Retail & Wealth Commercial Central items Total NatWest Banking Management & Institutional & other Group £m £m £m £m £m Continuing operations Income statement Net interest income 1,350 170 1,392 (13) 2,899 Own credit adjustments - - 2 - 2 Other non-interest income 109 83 677 (26) 843 Total income 1,459 253 2,071 (39) 3,744 Direct expenses (205) (64) (356) (1,159) (1,784) Indirect expenses (451) (102) (555) 1,108 - Other operating expenses (656) (166) (911) (51) (1,784) Litigation and conduct costs (3) - (34) (4) (41) Operating expenses (659) (166) (945) (55) (1,825) Operating profit/(loss) before impairment losses/releases 800 87 1,126 (94) 1,919 Impairment (losses)/releases (144) 3 (109) 5 (245) Operating profit /(loss) 656 90 1,017 (89) 1,674 Total income excluding notable items (1) 1,459 253 2,069 (9) 3,772 Additional information Return on Tangible Equity (1) na na na na 18.3% Return on equity (1) 21.4% 19.7% 19.9% nm na Cost:income ratio (excl. litigation and conduct) (1) 45.0% 65.6% 44.0% nm 47.6% Total assets (£bn) 231.1 27.3 398.7 54.8 711.9 Funded assets (£bn) (1) 231.1 27.3 331.1 53.7 643.2 Net loans to customers - amortised cost (£bn) 207.4 18.2 138.1 23.0 386.7 Loan impairment rate (1) 28bps (7bps) 31bps nm 25bps Impairment provisions (£bn) (1.9) (0.1) (1.6) - (3.6) Impairment provisions - Stage 3 (£bn) (1.1) - (1.0) - (2.1) Customer deposits (£bn) 192.0 39.7 195.7 3.7 431.1 Risk-weighted assets (RWAs) (£bn) 64.8 11.0 104.0 1.9 181.7 RWA equivalent (RWAe) (£bn) 65.3 11.0 105.3 2.4 184.0 Employee numbers (FTEs - thousands) 12.2 2.2 12.8 32.5 59.7 Third party customer asset rate (1) 4.09% 5.01% 6.67% nm nm Third party customer funding rate (1) (2.10%) (3.16%) (1.91%) nm nm Average interest earning assets (£bn) (1) 221.4 27.0 246.8 na 529.8 Net interest margin (1) 2.43% 2.50% 2.24% na 2.18% 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.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 15 Risk and capital management Credit risk 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. 30 September 2025 31 December 2024 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 1 189,140 17,619 138,333 35,504 380,596 182,366 17,155 128,988 35,312 363,821 Stage 2 25,529 891 14,510 56 40,986 24,242 844 15,339 49 40,474 Stage 3 3,068 372 2,286 2 5,728 3,268 322 2,340 - 5,930 Of which: individual - 272 1,290 - 1,562 - 233 1,052 - 1,285 Of which: collective 3,068 100 996 2 4,166 3,268 89 1,288 - 4,645 Total 217,737 18,882 155,129 35,562 427,310 209,876 18,321 146,667 35,361 410,225 ECL provisions (3) Stage 1 346 14 263 14 637 279 16 289 14 598 Stage 2 413 10 331 1 755 428 12 346 1 787 Stage 3 1,179 45 1,100 1 2,325 1,063 36 941 - 2,040 Of which: individual - 45 599 - 644 - 36 415 - 451 Of which: collective 1,179 - 501 1 1,681 1,063 - 526 - 1,589 Total 1,938 69 1,694 16 3,717 1,770 64 1,576 15 3,425 ECL provisions coverage (4) Stage 1 (%) 0.18 0.08 0.19 0.04 0.17 0.15 0.09 0.22 0.04 0.16 Stage 2 (%) 1.62 1.12 2.28 1.79 1.84 1.77 1.42 2.26 2.04 1.94 Stage 3 (%) 38.43 12.10 48.12 50.00 40.59 32.53 11.18 40.21 - 34.40 Total 0.89 0.37 1.09 0.04 0.87 0.84 0.35 1.07 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 £83.5 billion (31 December 2024 – £91.8 billion) and debt securities of £70.7 billion (31 December 2024 – £62.4 billion). (2) Fair value through other comprehensive income (FVOCI). Includes loans to customers and banks. (3) Includes £4 million (31 December 2024 – £4 million) related to assets classified as FVOCI and £0.1 billion (31 December 2024 – £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. Some segments with a high proportion of debt securities or unutilised exposure may result in a not meaningful (nm) coverage ratio.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 16 Risk and capital management continued Credit risk continued Segment analysis - loans Retail Banking – Asset quality and arrears rates remained stable and within expectations during the year. The overall 2025 increase in good book and total ECL coverage was largely driven by the acquisition of the Sainsbury’s Bank portfolio earlier this year which, in conjunction with continued organic growth on cards and personal loan portfolios, increased the unsecured portfolio mix. Good book coverage for Retail Banking remained stable, reflecting portfolio arrears trends and no change to economic scenarios The good book ECL on credit cards reduced due to a decrease in exposure at default on inaccessible limits. The reduction in the proportion of Stage 3 loans this year was influenced by both the acquisition of the Sainsbury’s Bank portfolio on unsecured and an enhancement to the application of the definition of default used on mortgages. The latter resulted in a £0.4 billion migration of loans from Stage 3 back to the good book. Commercial & Institutional – Increased coverage in the portfolio primarily reflected the impact of defaulted charges in the first half of the year, driven by a small number of individual charges. Underlying default rates and total number of defaults remained subdued, reflecting overall stable portfolio performance. Performing book ECL reduced in the year, in line with economic improvements and reductions in post model adjustments, even as total performing book exposure increased. Risk and capital management continued Movement in ECL provision The table below shows the main ECL provision movements during the year. ECL provision £m At 1 January 2025 3,425 Acquisitions 81 Changes in economic forecasts 10 Changes in risk metrics and exposure: Stage 1 and Stage 2 (20) Changes in risk metrics and exposure: Stage 3 564 Judgemental changes: changes in post model adjustments for Stage 1, Stage 2 and Stage 3 (71) Write-offs and other (272) At 30 September 2025 3,717 For the nine months to 30 September 2025, overall ECL increased following Non- Personal Stage 3 charges and an increase in good book ECL in the Personal portfolio, driven by the Sainsbury’s Bank portfolio acquisition. For the Non-Personal portfolio, ECL increased this year from Stage 3 charges, driven by a small number of individual charges in the Commercial & Institutional portfolio. This was partially offset by post model adjustment releases in the good book. In the Personal portfolios, default inflows were broadly stable for the nine months to 30 September 2025. However, Stage 3 ECL increased year-to-date on all unsecured portfolios, with reduced debt sale activity. In 2025, there was a reduction of Stage 3 ECL on mortgages related to an enhancement to the application of the definition of default, resulting in a £0.4 billion migration of loans from Stage 3 to the good book. Judgemental ECL post model adjustments decreased this year to £265 million (31 December 2024 – £336 million) representing 7.1% of total ECL (31 December 2024 – 9.8%). This reflected revisions to the Retail Banking cost of living post model adjustment after regular back-testing, and Non-Personal portfolio improvements in underlying risk profile.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 17 Risk and capital 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 30 September 2025 £m £m £m £m £m Deferred model calibrations - - 1 13 14 Economic uncertainty 55 31 8 139 233 Other adjustments - - - 18 18 Total 55 31 9 170 265 Of which: - Stage 1 40 13 4 73 130 - Stage 2 15 18 5 97 135 - Stage 3 - - - - - 31 December 2024 Deferred model calibrations - - 1 18 19 Economic uncertainty 90 22 8 179 299 Other adjustments - - - 18 18 Total 90 22 9 215 336 Of which: - Stage 1 58 9 5 94 166 - Stage 2 26 13 4 119 162 - Stage 3 6 - - 2 8 Post model adjustments reduced since 31 December 2024, reflecting updates to post model adjustment parameters. Retail Banking – As at 30 September 2025, the post model adjustment for economic uncertainty decreased to £86 million (31 December 2024 – £112 million). This reduction was driven by a revision to the cost of living post model adjustment, which now stands at £86 million (31 December 2024 – £105 million), and is the sole remaining economic uncertainty post model adjustment. This change was based on a review of back-testing. Despite ongoing economic and geopolitical uncertainty, the Retail Banking portfolios demonstrated resilience, supported by a robust risk appetite. 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 lower income customers in fuel poverty, over-indebted borrowers, and customers vulnerable to higher mortgage rates. Commercial & Institutional – As at 30 September 2025, the post model adjustment for economic uncertainty decreased to £139 million (31 December 2024 – £179 million). The inflation, supply chain and liquidity post model adjustment of £123 million (31 December 2024 – £150 million) for lending prior to 1 January 2024, remained the largest component of this adjustment. Downgrades to risk profiles were applied to the sectors that were considered most at risk from the current economic and geopolitical headwinds, with the level of downgrade reviewed to ensure the latest risks were appropriately captured. The £27 million decrease reflected improved risk metrics along with reduced exposure in the portfolio subject to the adjustment, through either repayment or default.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 18 Risk and capital 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 Sovereign Total Total 30 September 2025 £m £m £m £m £m £m £m £m £m Loans by geography 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310 - UK 215,128 8,275 11,447 234,850 99,727 48,581 491 148,799 383,649 - Other Europe 12 - - 12 6,694 13,989 369 21,052 21,064 - RoW - - - - 8,603 13,530 464 22,597 22,597 Loans by asset quality (2) 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310 - AQ1-AQ4 118,453 124 887 119,464 44,200 70,744 913 115,857 235,321 - AQ5-AQ8 93,366 7,796 9,353 110,515 68,382 5,217 129 73,728 184,243 - AQ9 1,163 130 204 1,497 251 3 265 519 2,016 - AQ10 2,158 225 1,003 3,386 2,191 136 17 2,344 5,730 Loans by stage 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310 - Stage 1 190,571 6,046 8,966 205,583 98,545 75,427 1,041 175,013 380,596 - Stage 2 22,408 2,004 1,478 25,890 14,293 537 266 15,096 40,986 - Stage 3 2,161 225 1,003 3,389 2,186 136 17 2,339 5,728 - Of which: individual 154 1 26 181 1,241 123 17 1,381 1,562 - Of which: collective 2,007 224 977 3,208 945 13 - 958 4,166 Loans - past due analysis 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310 - Not past due 211,764 7,987 10,421 230,172 111,908 75,826 1,307 189,041 419,213 - Past due 1-30 days 1,614 64 76 1,754 1,869 150 - 2,019 3,773 - Past due 31-90 days 581 74 108 763 380 9 17 406 1,169 - Past due 91-180 days 409 55 104 568 105 65 - 170 738 - Past due >180 days 772 95 738 1,605 762 50 - 812 2,417 Loans - Stage 2 22,408 2,004 1,478 25,890 14,293 537 266 15,096 40,986 - Not past due 20,992 1,915 1,368 24,275 13,449 532 266 14,247 38,522 - Past due 1-30 days 1,142 37 39 1,218 579 3 - 582 1,800 - Past due 31-90 days 274 52 71 397 265 2 - 267 664 Weighted average life - ECL measurement (years) 9 4 6 5 7 4 nm 7 6 Weighted average 12 months PDs - IFRS 9 (%) 0.44 3.46 4.68 0.70 1.13 0.16 9.34 0.80 0.75 - Basel (%) 0.66 3.87 3.35 0.87 1.06 0.15 9.34 0.75 0.82 ECL provisions by geography 377 469 1,134 1,980 1,564 149 24 1,737 3,717 - UK 376 469 1,134 1,979 1,389 99 12 1,500 3,479 - Other Europe 1 - - 1 115 9 - 124 125 - RoW - - - - 60 41 12 113 113 For the notes to this table refer to page 21.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 19 Risk and capital 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 Sovereign Total Total 30 September 2025 £m £m £m £m £m £m £m £m £m ECL provisions by stage 377 469 1,134 1,980 1,564 149 24 1,737 3,717 - Stage 1 55 121 175 351 235 38 13 286 637 - Stage 2 46 185 184 415 326 9 5 340 755 - Stage 3 276 163 775 1,214 1,003 102 6 1,111 2,325 - Of which: individual 14 1 13 28 511 99 6 616 644 - Of which: collective 262 162 762 1,186 492 3 - 495 1,681 ECL provisions coverage (%) 0.18 5.67 9.91 0.84 1.36 0.20 1.81 0.90 0.87 - Stage 1 (%) 0.03 2.00 1.95 0.17 0.24 0.05 1.25 0.16 0.17 - Stage 2 (%) 0.21 9.23 12.45 1.60 2.28 1.68 1.88 2.25 1.84 - Stage 3 (%) 12.77 72.44 77.27 35.82 45.88 75.00 35.29 47.50 40.59 Loans by residual maturity 215,140 8,275 11,447 234,862 115,024 76,100 1,324 192,448 427,310 - ≤1 year 2,115 2,515 2,969 7,599 32,738 55,837 362 88,937 96,536 - >1 and ≤5 year 8,555 5,760 6,800 21,115 50,610 15,618 516 66,744 87,859 - >5 and ≤15 year 42,899 - 1,674 44,573 23,154 4,510 288 27,952 72,525 - >15 year 161,571 - 4 161,575 8,522 135 158 8,815 170,390 Other financial assets by asset quality (2) - - - - 4,440 25,091 124,670 154,201 154,201 - AQ1-AQ4 - - - - 4,386 24,996 124,670 154,052 154,052 - AQ5-AQ8 - - - - 54 95 - 149 149 Off-balance sheet 15,073 23,265 7,666 46,004 76,836 21,560 491 98,887 144,891 - Loan commitments 15,073 23,265 7,629 45,967 73,984 20,073 491 94,548 140,515 - Financial guarantees - - 37 37 2,852 1,487 - 4,339 4,376 Off-balance sheet by asset quality (2) 15,073 23,265 7,666 46,004 76,836 21,560 491 98,887 144,891 - AQ1-AQ4 14,212 471 6,222 20,905 48,850 19,679 100 68,629 89,534 - AQ5-AQ8 850 22,701 1,401 24,952 27,599 1,837 15 29,451 54,403 - AQ9 - 12 14 26 17 - 376 393 419 - AQ10 11 81 29 121 370 44 - 414 535 For the notes to this table refer to page 21.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 20 Risk and capital 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 Sovereign Total Total 31 December 2024 £m £m £m £m £m £m £m £m £m Loans by geography 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225 - UK 209,846 6,930 9,749 226,525 97,409 43,412 562 141,383 367,908 - Other Europe - - - - 6,311 14,747 766 21,824 21,824 - RoW - - - - 8,014 12,162 317 20,493 20,493 Loans by asset quality (2) 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225 - AQ1-AQ4 113,209 128 818 114,155 43,918 65,078 1,365 110,361 224,516 - AQ5-AQ8 92,946 6,516 7,880 107,342 65,231 5,172 127 70,530 177,872 - AQ9 1,156 110 191 1,457 306 12 132 450 1,907 - AQ10 2,535 176 860 3,571 2,279 59 21 2,359 5,930 Loans by stage 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225 - Stage 1 186,250 4,801 7,267 198,318 94,991 69,021 1,491 165,503 363,821 - Stage 2 21,061 1,953 1,622 24,636 14,464 1,241 133 15,838 40,474 - Stage 3 2,535 176 860 3,571 2,279 59 21 2,359 5,930 - Of which: individual 141 - 26 167 1,046 51 21 1,118 1,285 - Of which: collective 2,394 176 834 3,404 1,233 8 - 1,241 4,645 Loans - past due analysis 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225 - Not past due 206,739 6,721 8,865 222,325 107,855 70,055 1,627 179,537 401,862 - Past due 1-30 days 1,404 50 70 1,524 2,530 211 - 2,741 4,265 - Past due 31-90 days 580 51 99 730 398 2 18 418 1,148 - Past due 91-180 days 408 41 96 545 139 49 - 188 733 - Past due >180 days 715 67 619 1,401 812 4 - 816 2,217 Loans - Stage 2 21,061 1,953 1,622 24,636 14,464 1,241 133 15,838 40,474 - Not past due 19,939 1,889 1,521 23,349 13,485 1,228 133 14,846 38,195 - Past due 1-30 days 853 31 37 921 640 11 - 651 1,572 - Past due 31-90 days 269 33 64 366 339 2 - 341 707 Weighted average life - ECL measurement (years) 8 4 6 6 6 2 nm 6 6 Weighted average 12 months PDs - IFRS 9 (%) 0.51 3.23 4.59 0.76 1.24 0.16 5.51 0.86 0.80 - Basel (%) 0.68 3.65 3.18 0.87 1.11 0.15 4.16 0.76 0.82 ECL provisions by geography 462 381 969 1,812 1,504 90 19 1,613 3,425 - UK 462 381 969 1,812 1,335 37 12 1,384 3,196 - Other Europe - - - - 109 9 - 118 118 - RoW - - - - 60 44 7 111 111 For the notes to this table refer to the following page.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 21 Risk and capital 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 Sovereign Total Total 31 December 2024 £m £m £m £m £m £m £m £m £m ECL provisions by stage 462 381 969 1,812 1,504 90 19 1,613 3,425 - Stage 1 77 77 130 284 264 38 12 314 598 - Stage 2 60 186 183 429 344 12 2 358 787 - Stage 3 325 118 656 1,099 896 40 5 941 2,040 - Of which: individual 11 - 17 28 382 36 5 423 451 - Of which: collective 314 118 639 1,071 514 4 - 518 1,589 ECL provisions coverage (%) 0.22 5.50 9.94 0.80 1.35 0.13 1.16 0.88 0.83 - Stage 1 (%) 0.04 1.60 1.79 0.14 0.28 0.06 0.80 0.19 0.16 - Stage 2 (%) 0.28 9.52 11.28 1.74 2.38 0.97 1.50 2.26 1.94 - Stage 3 (%) 12.82 67.05 76.28 30.78 39.32 67.80 23.81 39.89 34.40 Loans by residual maturity 209,846 6,930 9,749 226,525 111,734 70,321 1,645 183,700 410,225 - ≤1 year 3,367 3,903 3,186 10,456 34,929 54,971 822 90,722 101,178 - >1 and ≤5 year 11,651 3,027 5,551 20,229 48,075 10,967 488 59,530 79,759 - >5 and ≤15 year 45,454 - 1,006 46,460 20,623 4,270 298 25,191 71,651 - >15 year 149,374 - 6 149,380 8,107 113 37 8,257 157,637 Other financial assets by asset quality (2) - - - - 3,644 31,102 119,502 154,248 154,248 - AQ1-AQ4 - - - - 3,639 30,743 119,502 153,884 153,884 - AQ5-AQ8 - - - - 5 359 - 364 364 Off-balance sheet 13,806 20,135 7,947 41,888 75,964 21,925 239 98,128 140,016 - Loan commitments 13,806 20,135 7,906 41,847 72,940 20,341 239 93,520 135,367 - Financial guarantees - - 41 41 3,024 1,584 - 4,608 4,649 Off-balance sheet by asset quality (2) 13,806 20,135 7,947 41,888 75,964 21,925 239 98,128 140,016 - AQ1-AQ4 12,951 510 6,568 20,029 47,896 20,063 155 68,114 88,143 - AQ5-AQ8 839 19,276 1,336 21,451 27,657 1,813 21 29,491 50,942 - AQ9 1 12 17 30 19 - 63.0 82 112 - AQ10 15 337 26 378 392 49 - 441 819 (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) 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
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 22 Risk and capital 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 30 September 2025 £m £m £m £m £m £m £m £m £m £m Personal 205,583 25,890 3,389 234,862 45,967 37 351 415 1,214 1,980 Mortgages (1) 190,571 22,408 2,161 215,140 15,073 - 55 46 276 377 Credit cards 6,046 2,004 225 8,275 23,265 - 121 185 163 469 Other personal 8,966 1,478 1,003 11,447 7,629 37 175 184 775 1,134 Non-Personal 175,013 15,096 2,339 192,448 94,548 4,339 286 340 1,111 1,737 Financial institutions (2) 75,427 537 136 76,100 20,073 1,487 38 9 102 149 Sovereign 1,041 266 17 1,324 491 - 13 5 6 24 Corporate and other 98,545 14,293 2,186 115,024 73,984 2,852 235 326 1,003 1,564 Of which: Commercial real estate 17,277 1,372 344 18,993 6,590 160 61 26 135 222 Mobility and logistics 14,997 1,989 105 17,091 9,808 498 26 34 43 103 Consumer industries 12,755 2,686 414 15,855 11,330 534 34 72 208 314 Total 380,596 40,986 5,728 427,310 140,515 4,376 637 755 2,325 3,717 31 December 2024 Personal 198,318 24,636 3,571 226,525 41,847 41 284 429 1,099 1,812 Mortgages (1) 186,250 21,061 2,535 209,846 13,806 - 77 60 325 462 Credit cards 4,801 1,953 176 6,930 20,135 - 77 186 118 381 Other personal 7,267 1,622 860 9,749 7,906 41 130 183 656 969 Non-Personal 165,503 15,838 2,359 183,700 93,520 4,608 314 358 941 1,613 Financial institutions (2) 69,021 1,241 59 70,321 20,341 1,584 38 12 40 90 Sovereign 1,491 133 21 1,645 239 - 12 2 5 19 Corporate and other 94,991 14,464 2,279 111,734 72,940 3,024 264 344 896 1,504 Of which: Commercial real estate 16,191 1,517 433 18,141 6,661 143 70 30 146 246 Mobility and logistics 13,363 2,384 148 15,895 9,367 595 26 35 67 128 Consumer industries 13,312 3,015 444 16,771 10,706 595 45 90 188 323 Total 363,821 40,474 5,930 410,225 135,367 4,649 598 787 2,040 3,425 (1) As at 30 September 2025, £141.8 billion, 65.9%, of the total residential mortgages portfolio had Energy Performance Certificate (EPC) data available (31 December 2024 – £139.1 billion, 66.3%). Of which, 48.3% were rated as EPC A to C (31 December 2024 – 46.3%). (2) Includes transactions, such as securitisations, where the underlying risk may be in other sectors.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 23 Risk and capital management continued 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 2024 CET1 ratio 14.2% (2024 - 13.6%) The CET1 ratio increased by 60 basis points to 14.2% due to a £1.8 billion increase in CET1 capital offset by a £5.9 billion increase in RWAs. The CET1 capital increase was mainly driven by an attributable profit to ordinary shareholders of £3.3 billion (net of ordinary interim dividend paid) and other movements on reserves and regulatory adjustments of £0.5 billion partially offset by a share buyback of £0.8 billion and a foreseeable ordinary dividend accrual of £1.3 billion. RWAs £189.1bn (2024 - £183.2bn) Total RWAs increased by £5.9 billion to £189.1 billion reflecting: an increase in credit risk RWAs of £3.8 billion, primarily driven by lending growth, balances acquired from Sainsbury's Bank and CRD IV model updates. These increases were partially offset by, reductions as a result of RWA management actions, movements in risk metrics and the impact of foreign exchange movements. an increase in operational risk RWAs of £2.2 billion following the annual recalculation. an increase in counterparty credit risk RWAs of £0.3 billion driven by an increase in securities financing transactions and over-the-counter transactions under the IMM approach. a decrease in market risk RWAs of £0.4 billion, driven by the IRC, reflecting changes in government bond positions and RNIV. UK leverage ratio 5.0% (2024 - 5.0%) The leverage ratio remained stable at 5.0% due to a £2.4 billion increase in Tier 1 capital offset by a £41.4 billion increase in leverage exposure. The key drivers in the leverage exposure were an increase in other financial assets, trading assets, net settlement balances and other off balance sheet items. MREL ratio 33.3% (2024 - 33.0%) The Minimum Requirements of own funds and Eligible Liabilities (MREL) ratio increased by 30 basis points driven by a £2.5 billion increase in MREL partially offset by a £5.9 billion increase in RWAs. MREL increased to £62.9 billion driven by a £1.8 billion increase in CET1 capital, a £0.5 billion increase in Additional Tier 1 capital, a £0.2 billion decrease in Tier 2 capital, and a £0.3 billion increase in senior unsecured debt. Additional Tier 1 and Tier 2 capital movements were driven by issuance and redemptions in the period. The senior unsecured debt movement was driven by issuance and redemptions totalling £2.1 billion partially offset by a $1.5 billion debt instrument no longer being MREL eligible and foreign exchange movements of £0.7 billion. Liquidity portfolio £239.1bn (2024 - £222.3bn) The liquidity portfolio increased by £16.8 billion to £239.1 billion compared with Q4 2024. Primary liquidity decreased by £2.0 billion to £159.0 billion, driven by higher lending (including balances acquired from Sainsbury’s Bank), partially offset by increased issuance. Secondary liquidity increased by £18.8 billion due to increase in pre-positioned collateral at the Bank of England. LCR average 148% (2024 - 151%) The average Liquidity Coverage Ratio (LCR) decreased by 3 percentage points to 148%, during 2025, driven by increased lending. NSFR average 135% (2024 - 137%) The average Net Stable Funding Ratio (NSFR) decreased by 2 basis points to 135% during 2025 driven by increased lending.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 24 Risk and capital 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% 2.1% 2.9% Minimum Capital Requirements 6.1% 8.1% 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% 12.3% 15.1% Capital ratios at 30 September 2025 14.2% 17.2% 20.2% Headroom (3,4) 3.9% 4.9% 5.1% (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 2024 was CET1 3.1%, Total Tier 1 3.9% and Total Capital 4.3%. 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%
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 25 Risk and capital 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. 30 September 30 June 31 December 2025 2025 2024 Capital adequacy ratios (1) % % % CET1 14.2 13.6 13.6 Tier 1 17.2 16.7 16.5 Total 20.2 19.7 19.7 Capital £m £m £m Tangible equity 29,093 28,416 26,482 Expected loss less impairment (35) - (27) Prudential valuation adjustment (172) (210) (230) Deferred tax assets (834) (935) (1,084) Own credit adjustments 34 24 28 Pension fund assets (163) (157) (147) Cash flow hedging reserve 886 971 1,443 Foreseeable ordinary dividends (1,275) (1,244) (1,249) Adjustment for trust assets (2) (365) (365) (365) Foreseeable charges (3) (446) (750) - Adjustments under IFRS 9 transitional arrangements - - 33 Other adjustments for regulatory purposes 46 49 44 Total regulatory adjustments (2,324) (2,617) (1,554) CET1 capital 26,769 25,799 24,928 Additional AT1 capital 5,771 6,005 5,259 Tier 1 capital 32,540 31,804 30,187 Tier 2 capital 5,752 5,727 5,918 Total regulatory capital 38,292 37,531 36,105 Risk-weighted assets Credit risk 151,945 152,785 148,078 Counterparty credit risk 7,397 7,626 7,103 Market risk 5,825 5,777 6,219 Operational risk 23,959 23,959 21,821 Total RWAs 189,126 190,147 183,221 (1) The IFRS 9 transitional capital rules in respect of ECL provisions no longer apply as of 1 January 2025. (The impact of the IFRS 9 transitional adjustments at 31 December 2024 was £33 million for CET1 capital, £33 million for total capital and £3 million RWAs. Excluding this adjustment at 31 December 2024, the CET1 ratio was 13.6%, Tier 1 capital ratio was 16.5% and the Total capital ratio was 19.7%). (2) Prudent deduction in respect of agreement with the pension fund to establish legal structure to remove dividend linked contribution. (3) For September 2025, the foreseeable charge of £446 million relates to a share buyback.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 26 Risk and capital management continued Capital, liquidity and funding risk continued Capital and leverage ratios continued 30 September 30 June 31 December 2025 2025 2024 Leverage £m £m £m Cash and balances at central banks 84,686 90,706 92,994 Trading assets 56,856 56,706 48,917 Derivatives 61,119 73,010 78,406 Financial assets 494,874 486,305 469,599 Other assets 28,100 24,051 18,069 Total assets 725,635 730,778 707,985 Derivatives - netting and variation margin (58,580) (69,191) (76,101) - potential future exposures 17,690 16,831 16,692 Securities financing transactions gross up 1,841 1,510 2,460 Other off balance sheet items 63,394 62,497 59,498 Regulatory deductions and other adjustments (18,124) (17,869) (11,014) Claims on central banks (81,179) (87,228) (89,299) Exclusion of bounce back loans (1,457) (1,777) (2,422) UK leverage exposure 649,220 635,551 607,799 UK leverage ratio (%) (1) 5.0 5.0 5.0 (1) The UK leverage exposure and transitional Tier 1 capital are calculated in accordance with current PRA rules. The IFRS 9 transitional capital rules in respect of ECL no longer apply as of 1 January 2025. (Excluding the IFRS 9 transitional adjustment, the UK leverage ratio at 31 December 2024 was 5.0%).
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 27 Risk and capital 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 nine months ended 30 September 2025. CET1 AT1 Tier 2 Total £m £m £m £m At 31 December 2024 24,928 5,259 5,918 36,105 Attributable profit for the period 4,086 - - 4,086 Ordinary interim dividend paid (768) - - (768) Share buyback (750) - - (750) Foreseeable ordinary dividends (1,275) - - (1,275) Foreign exchange reserve 2 - - 2 FVOCI reserve 81 - - 81 Own credit 6 - - 6 Share based remuneration and shares vested under employee share schemes 190 - - 190 Goodwill and intangibles deduction 113 - - 113 Deferred tax assets 250 - - 250 Prudential valuation adjustments 58 - - 58 New issues of capital instruments - 1,244 823 2,067 Redemption of capital instruments (109) (732) (1,000) (1,841) Foreign exchange movements - - 11 11 Adjustment under IFRS 9 transitional arrangements (33) - - (33) Expected loss less impairment (8) - - (8) Other movements (2) - - (2) At 30 September 2025 26,769 5,771 5,752 38,292 For CET1 movements refer to the key points on page 23. The AT1 movement reflects the £0.7 billion 7.500% Reset Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes issued in March 2025 and the £0.5 billion 7.625% Reset Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes issued in September 2025 offset by the redemption of $1.15 billion 8.000% Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes in August 2025. Tier 2 movements of £0.2 billion include a decrease of £1.0 billion due to the redemption of 3.622% Fixed to Fixed Rate Reset Tier 2 Notes due 2030 in May 2025 partially offset by an increase of £0.8 billion for a €1.0 billion 3.723% Fixed to Fixed Rate Reset Tier 2 Notes 2035 issued in February 2025 and foreign exchange movements. Capital generation pre-distributions 30 September 30 June 31 December 2025 2025 2024 £m £m £m CET1 26,769 25,799 24,928 CET1 capital pre-distributions (1) 29,562 27,793 28,920 RWAs 189,126 190,147 183,221 % % % CET1 ratio - opening at 1 January 13.61 13.61 13.36 CET1 pre-distributions - closing 15.63 14.62 15.78 Capital generation pre-distributions (1) 2.02 1.01 2.43 (1) The calculation of capital generation pre-distributions uses CET1 capital pre-distributions. Distributions includes ordinary dividends paid, foreseeable ordinary dividends and share buybacks.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 28 Risk and capital management continued Capital, liquidity and funding risk continued Risk-weighted assets The table below analyses the movement in RWAs for the nine months ended 30 September 2025, by key drivers. Counterparty Operational Credit risk credit risk Market risk risk Total £bn £bn £bn £bn £bn At 31 December 2024 148.1 7.1 6.2 21.8 183.2 Foreign exchange movement (0.3) - - - (0.3) Business movement 1.0 0.2 (0.4) 2.2 3.0 Risk parameter changes (0.9) - - - (0.9) Model updates 2.4 0.1 - - 2.5 Acquisitions 1.6 - - - 1.6 At 30 September 2025 151.9 7.4 5.8 24.0 189.1 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 2024 65.5 11.0 104.7 2.0 183.2 Foreign exchange movement - - (0.3) - (0.3) Business movement 0.8 0.4 2.2 (0.4) 3.0 Risk parameter changes 0.2 - (1.1) - (0.9) Model updates 1.0 - 1.5 - 2.5 Acquisitions 1.6 - - - 1.6 At 30 September 2025 69.1 11.4 107.0 1.6 189.1 Credit risk 60.0 9.8 80.7 1.4 151.9 Counterparty credit risk 0.2 - 7.2 - 7.4 Market risk 0.2 - 5.6 - 5.8 Operational risk 8.7 1.6 13.5 0.2 24.0 Total RWAs 69.1 11.4 107.0 1.6 189.1 Total RWAs increased by £5.9 billion to £189.1 billion during the period mainly reflecting: A reduction in risk-weighted assets from foreign exchange movements of £0.3 billion due to sterling appreciation versus the US dollar and euro. An increase in business movements of £3.0 billion, driven by the annual recalculation of operational risk, an increase in credit risk due to lending growth partially offset by reductions as a result of RWA management actions. Further increase seen in counterparty credit risk driven by securities financing and OTC transactions partially offset by a decrease in market risk driven by IRC and RNIV. A reduction in risk parameters of £0.9 billion primarily driven by movements in risk metrics within Commercial & Institutional and Retail Banking. An increase in model updates of £2.5 billion primarily driven by CRD IV model updates within Commercial & Institutional and Retail Banking. An increase in acquisitions of £1.6 billion driven by balances acquired from Sainsbury’s Bank.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 29 Risk and capital 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 30 September 2025 30 June 2025 31 December 2024 NatWest NWH UK DoL NatWest NWH UK DoL NatWest NWH UK DoL Group (1) Group (2) Sub Group (1) Group (2) Sub Group (1) Group (2) Sub £m £m £m £m £m £m £m £m £m Cash and balances at central banks 80,489 51,277 50,666 86,589 55,027 54,353 88,617 58,313 57,523 High quality government/MDB/PSE and GSE bonds (3) 65,588 47,194 47,194 61,527 44,580 44,580 58,818 43,275 43,275 Extremely high quality covered bonds 4,613 4,613 4,613 4,494 4,494 4,494 4,341 4,340 4,340 LCR level 1 assets 150,690 103,084 102,473 152,610 104,101 103,427 151,776 105,928 105,138 LCR level 2 Eligible Assets (4) 8,332 7,397 7,397 7,985 6,880 6,880 9,271 7,957 7,957 Primary liquidity (HQLA) (5) 159,022 110,481 109,870 160,595 110,981 110,307 161,047 113,885 113,095 Secondary liquidity 80,051 80,023 80,023 55,997 55,969 55,969 61,230 61,200 61,200 Total liquidity value 239,073 190,504 189,893 216,592 166,950 166,276 222,277 175,085 174,295 (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. Pension risk On 8 August 2025, the Trustee of the Main section of the NatWest Group Pension Fund entered into a buy-in transaction with a third-party insurer for some of its liabilities. This is an insurance policy that gives the Fund protection against demographic and investment risks, so improves the security of member benefits. The transaction did not affect the 2025 statement of comprehensive income because the net pension asset was limited to zero due to the impact of the asset ceiling.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 30 Condensed consolidated income statement for the period ended 30 September 2025 (unaudited) Nine months ended Quarter ended 30 September 30 September 30 September 30 June 30 September 2025 2024 2025 2025 2024 £m £m £m £m £m Interest receivable 19,155 18,734 6,482 6,358 6,444 Interest payable (9,767) (10,427) (3,214) (3,264) (3,545) Net interest income 9,388 8,307 3,268 3,094 2,899 Fees and commissions receivable 2,412 2,378 804 806 811 Fees and commissions payable (552) (529) (184) (179) (181) Trading income 974 607 399 291 257 Other operating income 95 115 45 (7) (42) Non-interest income 2,929 2,571 1,064 911 845 Total income 12,317 10,878 4,332 4,005 3,744 Staff costs (3,193) (3,112) (1,064) (1,060) (965) Premises and equipment (906) (863) (319) (293) (284) Other administrative expenses (1,060) (1,153) (315) (395) (330) Depreciation and amortisation (855) (754) (298) (291) (246) Operating expenses (6,014) (5,882) (1,996) (2,039) (1,825) Profit before impairment losses 6,303 4,996 2,336 1,966 1,919 Impairment losses (535) (293) (153) (193) (245) Operating profit before tax 5,768 4,703 2,183 1,773 1,674 Tax charge (1,412) (1,232) (502) (439) (431) Profit from continuing operations 4,356 3,471 1,681 1,334 1,243 Profit from discontinued operations, net of tax - 12 - - 1 Profit for the period 4,356 3,483 1,681 1,334 1,244 Attributable to: Ordinary shareholders 4,086 3,271 1,598 1,236 1,172 Paid-in equity holders 268 202 82 96 73 Non-controlling interests 2 10 1 2 (1) 4,356 3,483 1,681 1,334 1,244 Earnings per ordinary share - continuing operations 50.7p 38.2p 19.8p 15.3p 14.1p Earnings per ordinary share - discontinued operations - 0.1p - - - Total earnings per share attributable to ordinary shareholders - basic 50.7p 38.3p 19.8p 15.3p 14.1p Earnings per ordinary share - fully diluted continuing operations 50.2p 37.9p 19.6p 15.1p 14.0p Earnings per ordinary share - fully diluted discontinued operations - 0.1p - - - Total earnings per share attributable to ordinary shareholders - fully diluted 50.2p 38.0p 19.6p 15.1p 14.0p
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 31 Condensed consolidated statement of comprehensive income for the period ended 30 September 2025 (unaudited) Nine months ended Quarter ended 30 September 30 September 30 September 30 June 30 September 2025 2024 2025 2025 2024 £m £m £m £m £m Profit for the period 4,356 3,483 1,681 1,334 1,244 Items that will not be reclassified subsequently to profit or loss: Remeasurement of retirement benefit schemes 20 (92) 11 3 (32) Changes in fair value of financial liabilities designated at fair value through profit or loss (FVTPL) due to changes in credit risk (11) (25) (10) (5) 1 FVOCI financial assets 54 16 5 35 49 Tax (10) 39 (8) (4) (5) 53 (62) (2) 29 13 Items that will be reclassified subsequently to profit or loss when specific conditions are met: FVOCI financial assets 76 21 13 29 (20) Cash flow hedges (1) 778 732 120 475 611 Currency translation (18) (119) 77 (65) (77) Tax (224) (221) (32) (130) (164) 612 413 178 309 350 Other comprehensive income after tax 665 351 176 338 363 Total comprehensive income for the period 5,021 3,834 1,857 1,672 1,607 Attributable to: Ordinary shareholders 4,751 3,622 1,774 1,574 1,535 Paid-in equity holders 268 202 82 96 73 Non-controlling interests 2 10 1 2 (1) 5,021 3,834 1,857 1,672 1,607 (1) Refer to footnote 4 of the condensed consolidated statement of changes in equity.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 32 Condensed consolidated balance sheet as at 30 September 2025 (unaudited) 30 September 31 December 2025 2024 £m £m Assets Cash and balances at central banks 84,686 92,994 Trading assets 56,856 48,917 Derivatives 61,119 78,406 Settlement balances 12,331 2,085 Loans to banks - amortised cost 8,005 6,030 Loans to customers - amortised cost 415,274 400,326 Other financial assets 71,595 63,243 Intangible assets 7,477 7,588 Other assets 8,292 8,396 Total assets 725,635 707,985 Liabilities Bank deposits 44,962 31,452 Customer deposits 435,490 433,490 Settlement balances 9,271 1,729 Trading liabilities 58,402 54,714 Derivatives 54,114 72,082 Other financial liabilities 67,634 61,087 Subordinated liabilities 6,136 6,136 Notes in circulation 3,340 3,316 Other liabilities 3,905 4,601 Total liabilities 683,254 668,607 Equity Ordinary shareholders' interests 36,570 34,070 Other owners' interests 5,792 5,280 Owners' equity 42,362 39,350 Non-controlling interests 19 28 Total equity 42,381 39,378 Total liabilities and equity 725,635 707,985
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 33 Condensed consolidated statement of changes in equity for the period ended 30 September 2025 (unaudited) Share Other Other reserves Total Non capital and Paid-in statutory Retained Cash flow Foreign owners' controlling Total share premium equity reserves (3) earnings Fair value hedging (4,5) exchange (6) Merger equity interests equity £m £m £m £m £m £m £m £m £m £m £m At 1 January 2025 10,133 5,280 2,350 11,426 (103) (1,443) 826 10,881 39,350 28 39,378 Profit attributable to ordinary shareholders and other equity owners - continuing operations 4,354 4,354 2 4,356 - discontinued operations - - Other comprehensive income Realised gains in period on FVOCI equity shares 25 (25) - - Remeasurement of retirement benefit schemes 20 20 20 Changes in fair value of credit in financial liabilities designated at FVTPL due to own credit risk (11) (11) (11) Unrealised gains 129 129 129 Amounts recognised in equity 17 17 17 Retranslation of net assets 43 43 43 Losses on hedges of net assets (90) (90) (90) Amount transferred from equity to earnings (6) 1 761 29 791 791 Tax (9) (24) (221) 20 (234) (234) Total comprehensive income - - - 4,379 81 557 2 - 5,019 2 5,021 Transactions with owners Ordinary share dividends paid (2,018) (2,018) - (2,018) Redemption of paid-in equity (736) (109) (845) (845) Paid-in equity dividends (268) (268) (268) Securities issued (2) 1,248 1,248 1,248 Purchase of non-controlling interest (10) (10) (11) (21) Shares repurchased during the period (1,7) (62) 62 (304) (304) (304) Employee share schemes 76 76 76 Shares vested under employee share schemes 124 124 124 Share-based remuneration (10) (10) (10) At 30 September 2025 10,071 5,792 2,536 13,162 (22) (886) 828 10,881 42,362 19 42,381 For the notes to this table, refer to the following page.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 34 Condensed consolidated statement of changes in equity for the period ended 30 September 2025 (unaudited) continued Share Other Other reserves Total Non capital and Paid-in statutory Retained Cash flow Foreign owners' controlling Total share premium equity reserves (3) earnings Fair value hedging (4,5) exchange Merger equity interests equity £m £m £m £m £m £m £m £m £m £m £m At 1 January 2024 10,844 3,890 2,004 10,645 (49) (1,899) 841 10,881 37,157 31 37,188 Profit attributable to ordinary shareholders and other equity owners - continuing operations 3,461 3,461 10 3,471 - discontinued operations 12 12 - 12 Other comprehensive income Realised gains in period on FVOCI equity shares 54 (54) - - Remeasurement of retirement benefit schemes (92) (92) (92) Changes in fair value of credit in financial liabilities designated at FVTPL due to own credit risk (25) (25) (25) Unrealised gains 24 24 24 Amounts recognised in equity (442) (442) (442) Retranslation of net assets (283) (283) (283) Gains on hedges of net assets 122 122 122 Amount transferred from equity to earnings 13 1,174 42 1,229 1,229 Tax 25 9 (198) (18) (182) (182) Total comprehensive income/(loss) - - - 3,435 (8) 534 (137) - 3,824 10 3,834 Transactions with owners Ordinary share dividends paid (1,505) (1,505) - (1,505) Paid-in equity dividends (202) (202) (202) Securities issued (2) 800 800 800 Shares repurchased during the period (1,7) (428) 428 (1,171) (1,171) (1,171) Shares vested under employee share schemes 142 (7) 135 135 Own shares acquired (540) (540) (540) At 30 September 2024 10,416 4,690 2,034 11,195 (57) (1,365) 704 10,881 38,498 41 38,539 (1) As part of the On Market Share Buyback Programmes NatWest Group plc repurchased and cancelled 58.9 million shares (September 2024 – 173.3 million shares), of which one million shares were settled in October 2025. The total consideration of these shares excluding fees was £308.3 million (September 2024 – £450.9 million), of which £5.1 million were settled in October 2025. Included in the retained earnings reserve movement is 2.3 million shares which were repurchased and cancelled in December 2023, settled in January 2024 for a total consideration of £4.9 million. The nominal value of the share cancellations was transferred to the capital redemption reserve. (2) The issuance above is after netting of issuance fees of £2.8 million (September 2024 – £2.4 million), and the associated tax credit of £0.7 million (September 2024 – £0.7 million). (3) Other statutory reserves consist of Capital redemption reserves of £3,280 million (September 2024 - £2,935 million) and Own shares held reserves of (£744) million (September 2024 – (£901) million). (4) The change in the cash flow hedging reserve is driven by realised accrued interest transferred into the income statement and an increase in swap rates in the medium term tenors in the year, where the portfolio of swaps are net receive fixed from an interest rate risk perspective. (5) 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. (6) Includes £29 million FX recycled to profit or loss upon redemption of paid-in equity and capital repatriation. (7) In June 2024, there was an agreement to buy 392.4 million ordinary shares of the Company from His Majesty’s Treasury (HM Treasury) at 316.2 pence per share for total consideration of £1.2 billion. NatWest Group cancelled 222.4 million of the purchased ordinary shares, amounting to £706.9 million excluding fees and held the remaining 170.0 million shares as Own Shares Held, amounting to £540.2 million excluding fees. The nominal value of the share cancellation was transferred to the capital redemption reserve. There were no repurchases in 2025.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 35 Notes 1. Presentation of condensed consolidated financial statements The condensed consolidated financial statements should be read in conjunction with NatWest Group plc’s 2024 Annual Report and Accounts. The accounting policies are the same as those applied in the consolidated financial statements. 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 Interim Results 2025, issued on 25 July 2025, included disclosures about NatWest Group's litigation and regulatory matters in Note 14. Set out below are the material developments in those matters (which have been previously disclosed) since publication of the Interim Results 2025. Litigation London Interbank Offered Rate (LIBOR) and other rates litigation NatWest Group plc and certain other members of NatWest Group, including NWM Plc, are defendants in a number of claims pending in the United States District Court for the Southern District of New York (SDNY) with respect to the setting of USD LIBOR. The complainants allege that certain members of NatWest Group and other panel banks violated various federal laws, including the US commodities and antitrust laws, and state statutory and common law, as well as contracts, by manipulating LIBOR and prices of LIBOR-based derivatives in various markets through various means. The co-ordinated proceeding in the SDNY relating to USD LIBOR now includes one remaining class action, which is on behalf of persons who purchased LIBOR-linked instruments from defendants and bonds issued by defendants, as well as several non- class actions. On 25 September 2025, the SDNY granted summary judgment to the defendants on the issue of liability and dismissed all claims in both the class action and the non-class actions. The decision remains subject to appeal in the United States Court of Appeals for the Second Circuit (US Court of Appeals). Two other IBOR-related class actions involving NWM Plc, concerning alleged manipulation of Euribor and Pound Sterling LIBOR, were previously dismissed by the SDNY for various reasons. However, on 22 August 2025, the US Court of Appeal reversed the SDNY’s decision in the Euribor case, reinstating claims against NWM Plc. That case will therefore return to the SDNY for further proceedings. On 15 September 2025, the US Court of Appeals affirmed the SDNY’s dismissal of the Pound Sterling LIBOR case. Foreign exchange litigation NWM Plc, NWMSI and/or NatWest Group plc are defendants in several cases relating to NWM Plc’s foreign exchange (FX) business. In May 2025, NWM Plc executed an agreement to settle the claim in the Federal Court of Australia, which the court approved in August 2025. The settlement amount is covered in full by an existing provision. Odd lot corporate bond trading antitrust litigation In July 2024, the US Court of Appeals vacated the SDNY's October 2021 dismissal of the class action antitrust complaint alleging that, from August 2006 onwards, various securities dealers, including NWMSI, conspired artificially to widen spreads for odd lots of corporate bonds bought or sold in the United States secondary market and to boycott electronic trading platforms that would have allegedly promoted pricing competition in the market for such bonds. The appellate court held that the district judge who made the decision should not have been presiding over the case because a member of the judge’s family had owned stock in one of the defendants while the motion was pending. On 2 September 2025, a different judge in the SDNY again dismissed the complaint in this action on the ground that the plaintiffs have failed to plead antitrust conspiracy. The plaintiffs did not appeal the decision within the time required for an appeal. Offshoring VAT assessments HMRC, as part of an industry-wide review, issued protective tax assessments in 2018 against NatWest Group plc totalling £143 million relating to unpaid VAT in respect of the UK branches of two NatWest Group companies registered in India for the period from 1 January 2014 until 31 December 2017 inclusive. NatWest Group formally requested reconsideration by HMRC of their assessments, and this process was completed in November 2020. HMRC upheld their original decision and, as a result, NatWest Group plc lodged an appeal with the Tax Tribunal and an application for judicial review with the High Court of Justice of England and Wales, both in December 2020. In order to lodge the appeal with the Tax Tribunal, NatWest Group plc was required to pay amounts totalling £153 million (including statutory interest) to HMRC in December 2020 and May 2022. The appeal and the application for judicial review were previously stayed behind a separate case involving another bank. NatWest Group plc was informed in late 2024 that the other bank had settled its case with HMRC by agreement. NatWest Group plc is progressing its appeal before the Tax Tribunal in its own name. NatWest Group plc will also continue to review next steps relevant to the judicial review. The amount of £153 million continues to be recognised as an asset that NatWest Group plc expects to recover. Since 1 January 2018, NatWest Group plc has paid VAT on intra-group supplies from India-registered NatWest Group companies.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 36 Notes continued 2. Litigation and regulatory matters continued US Anti-Terrorism Act litigation NWM N.V. and certain other financial institutions are defendants in several actions filed by a number of US nationals (or their estates, survivors, or heirs), most of whom are, or were, US military personnel who were killed or injured in attacks in Iraq between 2003 and 2011. NWM Plc is also a defendant in some of these cases. According to the plaintiffs’ allegations, the defendants are liable for damages arising from the attacks because they allegedly conspired with and/or aided and abetted Iran and certain Iranian banks to assist Iran in transferring money to Hezbollah and the Iraqi terror cells that committed the attacks, in violation of the US Anti-Terrorism Act, by agreeing to engage in ‘stripping’ of transactions initiated by the Iranian banks so that the Iranian nexus to the transactions would not be detected. The first of these actions, alleging conspiracy claims but not aiding and abetting claims, was filed in the United States District Court for the Eastern District of New York in November 2014. In September 2019, the district court dismissed the case, finding that the claims were deficient for several reasons, including lack of sufficient allegations as to the alleged conspiracy and causation. In January 2023, the US Court of Appeals affirmed the district court’s dismissal of this case. On 30 September 2025, the district court denied a motion by the plaintiffs to re-open the case to assert aiding and abetting claims that they previously did not assert. Another action, filed in the SDNY in 2017, which asserted both conspiracy and aiding and abetting claims, was dismissed by the SDNY in March 2019 on similar grounds as the first case, but remains subject to appeal to the US Court of Appeals. Other follow-on actions that are substantially similar to those described above are pending in the same courts. 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 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 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’s notable progress in strengthening its compliance programme, certain of NWM’s remedial improvements, internal controls, and the status of implementation of Monitor recommendations, and that reporting by NWM to the DOJ and USAO CT on its continued compliance programme progress provided an appropriate degree of oversight. The court approved the amended plea agreement and extended NWM’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, findings that NWM Plc violated its probation term, and possible re-sentencing, 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 422-423 of the NatWest Group Annual Results and Accounts 2024. Review and investigation of treatment of tracker mortgage customers in Ulster Bank Ireland DAC In December 2015, correspondence was received from the Central Bank of Ireland setting out an industry examination framework in respect of the sale of tracker mortgages from approximately 2001 until the end of 2015. The redress and compensation process has now largely concluded, although a small number of cases remain outstanding relating to uncontactable customers. Ulydien (formerly UBIDAC) customers have lodged tracker mortgage complaints with the Financial Services and Pensions Ombudsman (FSPO). UBIDAC challenged three FSPO adjudications in the Irish High Court. In June 2023, the High Court found in favour of the FSPO in all matters. UBIDAC appealed that decision to the Court of Appeal. In September 2024, the Court of Appeal allowed UBIDAC’s appeal and set aside certain findings of the FSPO. The Court of Appeal directed one aspect of the FSPO decisions to be remitted to the FSPO for its consideration following an oral hearing. Decisions are awaited from the FSPO in respect of these cases. 3. Post balance sheet events As part of the ongoing on-market share buyback programme, NatWest Group plc has repurchased and cancelled a further 12.2 million shares since 30 September 2025 for a total consideration (excluding fees) of £65.99 million. There have been no significant events between 30 September 2025 and the date of approval of this announcement which would require a change to, or additional disclosure, in the announcement.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 37 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. Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group. 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 2024 have been 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: 24 October 2025 9am BST 919 8718 5486 Available on natwestgroup.com/results Q3 2025 Interim Management Statement and background slides. A financial supplement containing income statement, balance sheet and segment performance for four quarters ended 30 September 2025. NatWest Group Pillar 3 at 30 September 2025. 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, 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 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'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 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.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 38 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). 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-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 a calculation of 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 40. 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 10-14 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 32 for components of calculation. Loan:deposit ratio (excl. repos and reverse repos) Refer to table 5. Loan:deposit ratio (excl. repos and reverse repos) on page 41. 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. This is 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 42. 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 - this comprises profit attributable to ordinary shareholders divided by average total equity. Funded assets is calculated as total assets less derivative assets. This measure allows review of balance sheet trends exclusive of the volatility associated with derivative fair values.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 39 Non-IFRS financial measures continued Measure Description Net interest margin and average interest earning assets Refer to Segment performance on pages 10-14 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 10-14 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 41. 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 42. 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 40. 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 combined assets and liabilities (CAL) – Private Banking & Wealth Management Refer to table 6. Total combined assets and liabilities (CAL) – Private Banking & Wealth Management on page 41. CAL refers to customer deposits, net loans to customers – amortised cost and AUMA. To avoid double counting, investment cash is deducted as it is reported within 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 40. 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.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 40 Non-IFRS financial measures continued 1. Total income excluding notable items Nine months ended Quarter ended 30 September 30 September 30 September 30 June 30 September 2025 2024 2025 2025 2024 £m £m £m £m £m Continuing operations Total income 12,317 10,878 4,332 4,005 3,744 Less notable items: Commercial & Institutional Own credit adjustments (OCA) 3 (5) - (3) 2 Central items & other Share of associate profits/(losses) for Business Growth Fund 55 22 41 (1) 11 Interest and foreign exchange management derivatives not in hedge accounting relationships 168 131 162 (1) 5 Foreign exchange recycling losses (37) (46) (37) - (46) 189 102 166 (5) (28) Total income excluding notable items 12,128 10,776 4,166 4,010 3,772 2. Cost:income ratio (excl. litigation and conduct) Nine months ended Quarter ended 30 September 30 September 30 September 30 June 30 September 2025 2024 2025 2025 2024 £m £m £m £m £m Continuing operations Operating expenses 6,014 5,882 1,996 2,039 1,825 Less litigation and conduct costs (130) (142) (12) (74) (41) Other operating expenses 5,884 5,740 1,984 1,965 1,784 Total income 12,317 10,878 4,332 4,005 3,744 Cost:income ratio 48.8% 54.1% 46.1% 50.9% 48.7% Cost:income ratio (excl. litigation and conduct) 47.8% 52.8% 45.8% 49.1% 47.6% 3. Tangible net asset value (TNAV) per ordinary share As at 30 September 30 June 31 December 2025 2025 2024 Ordinary shareholders' interests (£m) 36,570 35,929 34,070 Less intangible assets (£m) (7,477) (7,513) (7,588) Tangible equity (£m) 29,093 28,416 26,482 Ordinary shares in issue (millions) (1) 8,031 8,088 8,043 NAV per ordinary share (pence) 455p 444p 424p TNAV per ordinary share (pence) 362p 351p 329p (1) The number of ordinary shares in issue excludes own shares held.
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 41 Non-IFRS financial measures continued 4. Operating expenses excluding litigation and conduct Nine months ended Quarter ended 30 September 30 September 30 September 30 June 30 September 2025 2024 2025 2025 2024 £m £m £m £m £m Other operating expenses Staff expenses 3,144 3,060 1,045 1,044 947 Premises and equipment 902 863 318 293 284 Other administrative expenses 983 1,063 323 337 307 Depreciation and amortisation 855 754 298 291 246 Total other operating expenses 5,884 5,740 1,984 1,965 1,784 Litigation and conduct costs Staff expenses 49 52 19 16 18 Premises and equipment 4 - 1 - - Other administrative expenses 77 90 (8) 58 23 Total litigation and conduct costs 130 142 12 74 41 Total operating expenses 6,014 5,882 1,996 2,039 1,825 Operating expenses excluding litigation and conduct 5,884 5,740 1,984 1,965 1,784 5. Loan:deposit ratio (excl. repos and reverse repos) As at 30 September 30 June 31 December 2025 2025 2024 £m £m £m Loans to customers - amortised cost 415,274 407,135 400,326 Less reverse repos (33,604) (30,400) (34,846) Loans to customers - amortised cost (excl. reverse repos) 381,670 376,735 365,480 Customer deposits 435,490 436,756 433,490 Less repos (1,412) (988) (1,363) Customer deposits (excl. repos) 434,078 435,768 432,127 Loan:deposit ratio (%) 95% 93% 92% Loan:deposit ratio (excl. repos and reverse repos) (%) 88% 86% 85% 6. Total combined assets and liabilities (CAL) – Private Banking & Wealth Management As at 30 September 30 June 31 December 2025 2025 2024 £bn £bn £bn Net loans to customers (amortised cost) 18.8 18.6 18.2 Customer deposits 40.6 41.3 42.4 Assets under management and administration (AUMA) 56.0 51.8 48.9 Less investment cash included in both customer deposits and AUMA (1.2) (1.3) (1.1) Total combined assets and liabilities (CAL) 114.2 110.4 108.4
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 42 Non-IFRS financial measures continued 7. NatWest Group Return on Tangible Equity Nine months ended and as at Quarter ended and as at 30 September 30 September 30 September 30 June 30 September 2025 2024 2025 2025 2024 £m £m £m £m £m Profit attributable to ordinary shareholders 4,086 3,271 1,598 1,236 1,172 Annualised profit attributable to ordinary shareholders 5,448 4,361 6,392 4,944 4,688 Average total equity 41,043 37,707 41,667 41,474 37,960 Adjustment for average other owners' equity and intangible assets (13,175) (12,040) (12,954) (13,529) (12,375) Adjusted total tangible equity 27,868 25,667 28,713 27,945 25,585 Return on equity 13.3% 11.6% 15.3% 11.9% 12.3% Return on Tangible Equity 19.5% 17.0% 22.3% 17.7% 18.3% 8. Segment return on equity Nine months ended 30 September 2025 Nine months ended 30 September 2024 Private Banking Private Banking Retail & Wealth Commercial Retail & Wealth Commercial Banking Management & Institutional Banking Management & Institutional Operating profit (£m) 2,335 287 3,025 1,754 189 2,724 Paid-in equity cost allocation (£m) (75) (13) (181) (56) (13) (130) Adjustment for tax (£m) (633) (77) (711) (475) (49) (649) Adjusted attributable profit (£m) 1,627 197 2,133 1,223 127 1,946 Annualised adjusted attributable profit (£m) 2,170 263 2,844 1,630 169 2,594 Average RWAe (£bn) 68.7 11.3 107.8 62.7 11.1 108.0 Equity factor 12.8% 11.1% 13.9% 13.4% 11.2% 13.8% Average notional equity (£bn) 8.8 1.3 15.0 8.4 1.2 14.9 Return on equity (%) 24.7% 21.0% 19.0% 19.4% 13.6% 17.4% Quarter ended 30 September 2025 Quarter ended 30 June 2025 Quarter ended 30 September 2024 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) 850 108 1,041 735 102 964 656 90 1,017 Paid-in equity cost allocation (£m) (26) (5) (52) (26) (4) (66) (22) (5) (47) Adjustment for tax (£m) (231) (29) (247) (199) (27) (225) (178) (24) (243) Adjusted attributable profit (£m) 593 74 742 510 71 673 456 61 728 Annualised adjusted attributable profit (£m) 2,373 297 2,967 2,042 282 2,694 1,826 245 2,910 Average RWAe (£bn) 70.2 11.4 108.2 68.9 11.3 108.3 63.8 11.1 106.0 Equity factor 12.8% 11.1% 13.9% 12.8% 11.1% 13.9% 13.4% 11.2% 13.8% Average notional equity (£bn) 9.0 1.3 15.0 8.8 1.3 15.1 8.5 1.2 14.6 Return on equity (%) 26.4% 23.4% 19.7% 23.2% 22.5% 17.9% 21.4% 19.7% 19.9%
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NatWest Group Q3 2025 Results Business performance summary Risk and capital management Financial statements Additional information 43 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 both assets under management (AUM) and assets under administration (AUA) serviced through the Private Banking & Wealth Management segment. AUM comprise 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. AUA comprise 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 which reflects an ongoing fee as percentage of assets and transactional income related to investment services comprised of one-off fees 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. AUMA net flows AUMA net flows represents assets under management (AUM net flows) and assets under administration (AUA net flows). AUMA net flows is reported and tracked to monitor the business performance of new business inflows and management of existing client withdrawals across Private Banking & Wealth Management, Retail Banking and Commercial & Institutional. 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. Legal Entity Identifier: 2138005O9XJIJN4JPN90