NatWest Group PLC

Latest Results (21.10.2025):

NatWest Group PLC delivered a robust performance in the first half of 2025, marked by substantial profit growth, enhanced earnings per share, and improved efficiency metrics. The company has elevated its income and returns guidance for 2025, declared an interim dividend of 9.5 pence, and initiated a £750 million share buyback program, reflecting confidence in its strategic direction and future prospects.

Strong Financial Performance

In H1 2025, NatWest Group PLC reported an attributable profit of £2.5 billion and earnings per share of 30.9 pence, representing a 28% increase compared to the prior year. The Return on Tangible Equity (RoTE) reached 18.1%, and the cost:income ratio improved significantly to 48.8% from 55.5% the previous year.

Capital Generation and Shareholder Returns

The group achieved robust capital generation of 101 basis points before distributions, enabling the announcement of a 9.5 pence interim dividend per share, a 58% increase year-on-year. Additionally, NatWest Group PLC plans to commence a £750 million share buyback program in the second half of 2025.

Customer Growth and Balance Sheet Expansion

NatWest added 1.1 million new customers in H1 2025 through organic growth and the acquisition of Sainsbury’s Bank completed on May 1, 2025. Net loans to customers increased by £11.6 billion, including £2.2 billion from Sainsbury’s Bank, while customer deposits rose by £4.5 billion, with £2.4 billion from the acquisition.

Simplification and Technological Enhancements

The company made significant strides in becoming a simpler bank, evidenced by a 6.7 percentage point improvement in the cost:income ratio. Investments in digitizing customer journeys and deploying AI have boosted productivity and customer experience, supported by new collaborations with OpenAI, AWS, and Accenture.

Risk and Capital Management

NatWest actively managed its balance sheet and risks, achieving £2.9 billion in RWA management actions to create growth capacity. The Common Equity Tier 1 (CET1) ratio stood at 13.6%, and the Tangible Net Asset Value (TNAV) per share increased by 22 pence to 351 pence in H1 2025.

Outlook and Future Guidance

The group has strengthened its 2025 guidance, expecting a Return on Tangible Equity above 16.5%, income excluding notable items exceeding £16.0 billion, and group operating costs around £8.1 billion. Looking ahead to 2027, NatWest aims for a RoTE greater than 15% and continues to target a CET1 ratio between 13-14%, with ongoing commitments to dividends and share buybacks.