As the prospect of flood damage haunts an ever larger number of UK homes, the country’s banks are under growing pressure to prove they’re not underestimating the risk in their mortgage books.Nationwide Building Society — once seen as an outlier after saying in 2024 it had stopped making loans to some homes at risk of flooding — has emerged as a prescient first-mover amid growing banker anxiety, according to Mark Cunningham, managing director at PriceHubble, a property data company. The risk is that a bank i ...

Climate and Sustainability Goals - NatWest Group aims to achieve net zero across its financed emissions, assets under management, and operational value chain by 2050, in line with the UK's legal obligations [18]. - The company targets to halve the climate impact of its financing activity by 2030, using 2019 as a baseline [18]. - NatWest Group plans to provide £200 billion of transition and climate finance between July 1, 2025, and the end of 2030 [18]. - NatWest Group's climate and sustainability-related targets are based on current plans and are subject to significant uncertainties [19]. - The company faces significant uncertainties related to climate change, macroeconomic conditions, and regulatory changes, which may impact its strategic objectives [41]. - Data availability and accuracy issues limit the quality of climate and sustainability-related disclosures, affecting their reliability [27]. - The reliance on proxies or aggregated sector-level data may lead to inconsistencies in climate-related reporting due to varying methodologies [27]. - There is currently no globally accepted standard for classifying 'green' or 'sustainable' activities, which complicates reporting efforts [27]. - The risk factors related to climate and sustainability are detailed in the annual report, highlighting the uncertainties the company faces in these areas [21]. - NatWest Group enhanced its climate risk modeling capabilities in 2025, integrating climate risk into capital adequacy and risk management processes [207]. - Challenges in quantitative climate scenario analysis include the immaturity of modeling techniques and limitations in climate-related risk data [208]. - Significant uncertainty exists regarding climate evolution and responses from governments, businesses, and investors, impacting economic systems and asset valuations [208]. - Outputs of climate-related risk modeling are inherently more uncertain than those from traditional financial planning cycles based on historical data [208]. Financial Performance - Total income for 2025 was £16.6 billion, a 13.2% increase compared to 2024, with total income excluding notable items at £16.4 billion, exceeding guidance [45][46]. - Net interest margin (NIM) increased by 21 basis points to 2.34% in 2025, with expectations for total structural hedge income to rise by approximately £1.5 billion in 2026 [46]. - Customer deposits grew by £9.5 billion to £443.0 billion, with Retail Banking contributing £7.8 billion of this increase [47]. - Assets under management (AUMA) rose by £9.6 billion to £58.5 billion, driven by positive market movements of £5.0 billion and net flows of £3.1 billion [48]. - Total operating expenses increased by £113 million, with other operating expenses up by 3.1% due to higher transformation costs and inflationary pressures [49]. - A net impairment charge of £671 million was recorded, representing 16 basis points of gross customer loans, influenced by the acquisition of balances from Sainsbury's Bank [50]. - The CET1 ratio improved to 14.0%, an increase of approximately 40 basis points, supported by capital generation pre-distributions of 252 basis points [57]. - A final dividend of 23.0 pence per share is proposed, totaling 32.5 pence for the year, a 51% increase compared to 2024 [56]. - Risk-weighted assets (RWAs) increased by £10.1 billion to £193.3 billion, primarily due to franchise lending growth [54]. - The average Liquidity Coverage Ratio (LCR) was 147%, with £50.5 billion headroom above the 100% minimum requirement [55]. - Total income increased by 13.2% to £16,641 million compared to 2024, driven by deposit margin expansion and strong customer lending growth [66]. - Net interest income rose by £1,554 million, or 13.8%, benefiting from customer lending growth and deposit margin expansion [67]. - Other operating income increased by £50 million, reflecting higher Business Growth Fund gains and a dividend received on restructuring of a strategic investment [68]. - Net fees and commissions grew by £47 million to £2,514 million, largely due to higher AUMA investment fee income and transactional fees [69]. - Operating profit before tax was £7,708 million, an increase of 24.4% compared to 2024 [77]. - Profit from continuing operations reached £5,834 million, up 23.3% from the previous year [77]. - Total assets increased by £6.6 billion, or 1%, to £714.6 billion, primarily driven by growth in loans to customers [83]. - Total loans to customers rose by £18.6 billion to £418.9 billion, with significant growth in both Commercial & Institutional and Retail Banking [83]. - Total equity increased by £3.2 billion, or 8%, to £42.6 billion, driven by higher profit for the year [83]. - The effective tax rate rose to 24.3% from 23.7% in 2024, with a tax charge of £1,874 million for the year [72]. - NatWest Group reported a total income of £16.641 billion for 2025, an increase of £845 million or 15.0% compared to 2024 [91]. - The net interest income for 2025 was £12.829 billion, reflecting a £6.064 billion contribution from Retail Banking, which was a 15.9% increase from 2024 [91]. - Operating profit for Retail Banking reached £3.121 billion in 2025, up £690 million or 28.4% from the previous year [91]. - Customer deposits increased by £7.8 billion or 4.0% in 2025, totaling £443.0 billion, driven by growth in savings and current account balances [94]. - Net loans to customers rose by £7.7 billion or 3.7% in 2025, with mortgage balances increasing by £5.1 billion or 2.6% [94]. - The return on equity for Retail Banking improved to 24.7% in 2025, up from 19.9% in 2024 [91]. - The cost:income ratio for NatWest Group was 48.6% in 2025, a decrease from 53.4% in 2024, indicating improved efficiency [91]. - Impairment losses increased to £437 million in 2025, compared to £282 million in 2024, largely due to growth in unsecured lending [94]. - Risk-weighted assets (RWAs) increased by £3.0 billion or 4.6% in 2025, primarily due to movements in unsecured balances [94]. - NatWest Group supported 19 million customers in 2025, including 2.4 million youth customers, and achieved a Net Promoter Score (NPS) of 44 in its Premier segment [94]. - Private Banking & Wealth Management reported an operating profit of £394 million, with a return on equity of 21.7%, up from 14.2% in 2024 [100]. - Total income increased by £162 million, or 16.7%, primarily due to deposit margin expansion and higher transactional fees [103]. - Net loans to customers rose by £0.7 billion, or 3.8%, driven by higher personal and commercial lending balances [103]. - Assets under management (AUMA) increased by £9.6 billion, or 19.6%, with AUM net flows of £3.1 billion, representing 8.4% of opening balances [103]. - Commercial & Institutional achieved a total income of £8.8 billion, an increase of £852 million, or 10.7%, supported by lending growth and higher customer balances [104]. - The return on equity for Commercial & Institutional improved to 19.1%, up from 17.2% in 2024 [106]. - Customer deposits in Commercial & Institutional increased by £2.3 billion, or 1.2%, reflecting growth across various customer segments [110]. Risk Management - The company emphasizes the importance of forward-looking statements regarding its financial condition and strategic priorities, which are subject to inherent risks and uncertainties [11]. - Key risks affecting NatWest Group's future results include economic and political risks, changes in interest rates, and operational resilience risks [13]. - The implementation of NatWest Group's strategy carries execution risks, and the success of acquisitions or divestments is not guaranteed [43]. - The financial statements are prepared in accordance with UK-adopted International Accounting Standards and may include non-IFRS measures for better performance comparison [15]. - NatWest Group operates an enterprise-wide risk management framework (EWRMF) to ensure effective governance and decision-making across the organization [126]. - The framework aligns risk management with strategic priorities, focusing on customer understanding and resource management [127]. - Risk appetite defines the levels of tolerance for various risks, providing a structured approach to risk-taking within agreed boundaries [128]. - The Chief Risk Officer oversees risk management activities and advises the Board on the risk profile and control performance [129]. - The organization employs a three lines of defence model to articulate accountabilities and responsibilities for managing risk [144]. - The first line of defence includes customer-facing businesses and support functions, responsible for managing direct risks [145]. - The second line of defence, comprising the Risk function, provides oversight and ensures compliance with the risk management framework [147]. - The third line of defence, the Internal Audit function, offers independent assurance on the effectiveness of the risk management framework [150]. - Risk appetite statements are established for all principal risks, detailing the extent and type of activities that can be undertaken [156]. - The Board reviews and updates risk appetite statements annually to align with business and financial planning processes [159]. - NatWest Group's risk appetite is reviewed annually by the Board, ensuring alignment with strategy [160]. - The risk management framework includes regular assessments of the overall risk profile, incorporating market developments and trends [163]. - Stress testing is a key component of capital management, used to evaluate the impact of changes in risk factors on financial strength [174]. - The Internal Capital Adequacy Assessment Process (ICAAP) is conducted annually to evaluate the amount and distribution of capital required to cover material risks [180]. - NatWest Group maintains a liquidity risk management framework, including daily reviews of liquidity and funding risks at significant legal entity levels [185]. - Non-traded market risk exposures are reported quarterly to the PRA, detailing interest rate exposure and other characteristics [194]. - The recovery plan outlines how NatWest Group would respond to financial stress events, ensuring critical services are maintained [189]. - Regular independent testing of controls ensures they function as intended, providing real-time insights into control effectiveness [168]. - The risk and control performance assessment (RCPA) is used for annual self-assessment across business areas, evaluating the strength of the control environment [169]. - Reverse stress testing identifies scenarios that could render NatWest Group's business model unviable, enhancing risk management strategies [177]. - NatWest Group conducts macroeconomic stress tests periodically as part of its bank-wide capital planning process, with a planning horizon of five years [204]. - The cross-risk capital planning process is conducted at least once a year, combining market risk stress test results with other risks for presentation to the Board [205]. - Vulnerability-based stress testing analyzes portfolios for key vulnerabilities, reporting results to senior management without subjecting them to limits [206].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-10306 NatWest Group plc 250 Bishopsgate, London, EC2M 4AA United Kingdom (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐ The following information was issued a ...

Core Viewpoint - NatWest Group reported strong financial results for the fourth quarter and full-year 2025, with profits increasing by 21% to £5.83 billion, surpassing expectations across all metrics [1]. Financial Performance - The profit for the year reached £5.83 billion, reflecting a 21% growth compared to the previous year [1]. - The bank's performance was driven by rising income from its deposit hedge, contributing positively to overall results [1].

Core Viewpoint - NatWest Group reported strong financial results for the fourth quarter and full-year 2025, with profits increasing by 21% to £5.83 billion, surpassing expectations across all metrics [1] Financial Performance - The profit for the year reached £5.83 billion, reflecting a 21% growth compared to the previous year [1] - The bank's performance was driven by rising income from its deposit hedge, contributing positively to overall results [1]

Financial Data and Key Metrics Changes - The company reported a strong income growth of 12%, with total income reaching GBP 16.4 billion, exceeding guidance of around GBP 16.3 billion [4] - Earnings per share grew 27% to GBP 0.68, while dividends per share increased 51% to GBP 0.325 [3] - The cost-income ratio improved to 48.6%, down 4.8 percentage points from the previous year [11] - The Common Equity Tier 1 (CET1) ratio stood at 14%, reflecting a 40 basis points increase from the prior year [17] Business Line Data and Key Metrics Changes - Customer loans increased by 5.6% to GBP 392.7 billion, driven by growth in mortgages and unsecured lending [6] - Customer deposits rose 2.4% to GBP 442 billion, with retail banking deposits increasing by GBP 7.8 billion or 4% [8] - Assets under management (AUM) grew nearly 20% to GBP 58.5 billion, with net flows of GBP 4.6 billion up 44% [8] Market Data and Key Metrics Changes - The company maintained a strong position in the UK market, being the largest bank for business, with growth across various sectors including social housing and project finance [6] - The average Liquidity Coverage Ratio (LCR) was 147%, indicating a comfortable surplus over minimum requirements [15] Company Strategy and Development Direction - The company aims to achieve disciplined growth with a focus on key customer segments and enhancing customer engagement [34] - Plans include leveraging simplification and investing in AI to drive growth and improve productivity [34] - The target for 2028 includes growing customer assets and liabilities at an annual rate greater than 4% and reducing the cost-income ratio to below 45% [35] Management's Comments on Operating Environment and Future Outlook - Management expects moderate growth in the macro environment for 2026, with a terminal bank rate projected at 3.25% [11] - The company anticipates a loan impairment rate below 25 basis points for 2026, reflecting a normalization in impairments [75] - There are no significant signs of stress across the business, and management remains confident in the performance of the loan book [13] Other Important Information - The company successfully completed its 2025 funding plan with GBP 7.1 billion in benchmark issuance [16] - Credit ratings improved, with Fitch upgrading the rating of NatWest Group PLC to A plus and S&P raising the rating to A-minus [32] Q&A Session Summary Question: How do you think about risk appetite and quantum of RWAs that can be optimized? - Management highlighted the execution of SRT transactions leading to significant RWA optimization and sees potential for further transactions in 2026 and 2027 [37][38] Question: How do you set the leverage buffer target in relation to the capital target or the RWA framework? - Management indicated that risk weights are expected to be the binding constraint moving forward, rather than leverage [51] Question: What is driving the impairment change guidance to 25 basis points? - Management explained that the guidance reflects a normalization in impairments and growth in the loan book, particularly in unsecured lending [74]

Financial Data and Key Metrics Changes - The company reported a strong income growth of 12%, with total income reaching GBP 16.4 billion, exceeding guidance of around GBP 16.3 billion [4] - Earnings per share grew 27% to GBP 0.68, and dividends per share increased 51% to GBP 0.325 [3] - The cost-income ratio improved to 48.6%, down 4.8 percentage points from the previous year [11] Business Line Data and Key Metrics Changes - Customer loans increased by 5.6% to GBP 392.7 billion, driven by growth in mortgages and unsecured lending [6] - Customer deposits rose by 2.4% to GBP 442 billion, with retail banking deposits increasing by 4% [8] - Assets under management (AUM) grew by nearly 20% to GBP 58.5 billion, with net flows up 44% [9] Market Data and Key Metrics Changes - The company added 1 million new customers during the year, indicating broad-based growth across its three business lines [2] - The net interest margin increased by 21 basis points to 234 basis points, primarily due to deposit growth and margin expansion [4] Company Strategy and Development Direction - The company aims to grow customer assets and liabilities at an annual rate greater than 4% from 2025 to 2028, while reducing the cost-income ratio to below 45% [34] - There is a focus on leveraging simplification and investing in AI to drive growth and improve customer experience [34] - The company plans to manage its balance sheet and risk effectively, with an emphasis on dynamic pricing and advanced data analytics [34] Management's Comments on Operating Environment and Future Outlook - Management expects moderate growth in the macro environment for 2026, with unemployment peaking at levels comfortable for lending risk appetite [11] - The guidance for loan impairment rates is set to be below 25 basis points, reflecting a normalization in impairments and growth in the loan book [75] - The company remains confident in its ability to generate capital and maintain a strong capital position, with a CET1 ratio of 14% [17] Other Important Information - The company successfully completed its 2025 funding plan with GBP 7.1 billion in benchmark issuance [16] - Credit ratings improved, with Fitch upgrading all rated entities and S&P raising the rating of NatWest Group PLC to A-minus [32] Q&A Session Summary Question: How do you think about risk appetite and quantum of RWAs that can be optimized? - Management highlighted the execution of SRT transactions and the potential for further transactions in 2026 and 2027 to optimize capital and risk profile [37][38] Question: How do you set the leverage buffer target in relation to the capital target or the RWA framework? - Management indicated that risk weights are expected to be the binding constraint moving forward, rather than leverage [51] Question: What is driving the higher impairment change guidance to 25 basis points? - Management explained that the guidance reflects a normalization in impairments and growth in the loan book, particularly in unsecured lending [75]

Financial Data and Key Metrics Changes - The company reported a strong income growth of 12%, with total income reaching GBP 16.4 billion, exceeding guidance of around GBP 16.3 billion [4] - Earnings per share increased by 27% to GBP 0.68, while dividends per share rose by 51% to GBP 0.325 [3] - The cost-income ratio improved to 48.6%, down 4.8 percentage points from the previous year [11] - The return on tangible equity was reported at 19.2% [3] Business Line Data and Key Metrics Changes - Customer loans increased by 5.6% to GBP 392.7 billion, driven by growth in mortgages and unsecured lending [6] - Customer deposits rose by 2.4% to GBP 442 billion, with retail banking deposits increasing by 4% [7] - Assets under management (AUM) grew by nearly 20% to GBP 58.5 billion, with net flows up 44% [8] Market Data and Key Metrics Changes - The company added 1 million new customers during the year, indicating broad-based growth across its three business lines [2] - The net interest margin improved by 21 basis points to 234 basis points, primarily due to deposit growth and margin expansion [4] Company Strategy and Development Direction - The company aims to focus on disciplined growth, emphasizing returns and customer engagement [34] - Plans include leveraging simplification and investing in AI to enhance productivity and customer experience [34] - The target is to grow customer assets and liabilities at an annual rate greater than 4% from 2025 to 2028 [35] Management's Comments on Operating Environment and Future Outlook - The management expects moderate growth in the macro environment for 2026, with unemployment peaking at manageable levels [11] - The guidance for 2026 includes income in the range of GBP 17.2 billion to GBP 17.6 billion, with a loan impairment rate expected to be below 25 basis points [33] Other Important Information - The company successfully completed its 2025 funding plan with GBP 7.1 billion in benchmark issuance [15] - The CET1 ratio was reported at 14%, up 40 basis points from the previous year, reflecting strong capital generation [17] Q&A Session Summary Question: How does the company view risk appetite and RWA optimization? - The company executed five SRT transactions in 2025, optimizing GBP 4.6 billion of RWAs, and plans to continue this strategy in 2026 and 2027 [37][38] Question: What is the rationale for the impairment change guidance? - The guidance for 2026 is set at less than 25 basis points, reflecting a normalization in impairments and growth in the loan book, particularly in unsecured lending [72] Question: Will the company increase lending in private banking and wealth management? - The company expects some increase in RWAs due to the Evelyn acquisition but remains comfortable with the current density levels [78][84]

Core Viewpoint - NatWest Group has softened its fossil fuel lending policy, prompting concerns from activist group ShareAction regarding the bank's commitment to climate leadership [1]. Group 1: Policy Changes - NatWest removed bans on renewing or refinancing reserve-based lending for oil and gas exploration, extraction, and production [1]. - The bank also lifted restrictions on offering reserve-based lending to new oil and gas customers [1]. - Additionally, bans on dealing with oil and gas majors without transition plans aligned with climate goals and upstream companies with assets primarily outside the UK have been removed [1]. Group 2: Strategic Context - The changes reflect the complexity of the energy transition and the broader national policy agenda, as stated by NatWest's Head of Group Sustainability, Kirsty Britz [1]. - Despite these changes, NatWest aims to halve the climate impact of its financing by 2030 [1]. Group 3: Reactions and Implications - ShareAction plans to call for investors to oppose the re-election of Chair Richard Haythornethwaite at the upcoming annual meeting due to concerns over the bank's retreat from climate commitments [1]. - The activist group emphasizes that NatWest has historically positioned itself as a climate leader, making the recent policy shift a significant concern [1].

FY 2025 Results 13 February 2026 Fixed Income Investors Katie Murray Chief Financial Officer Strong compounding growth delivering 19.2% ROTE in 2025 | Growing all three | +5.6% | +2.4% | +20% | | --- | --- | --- | --- | | businesses, serving >20m customers | Customer Loans1 | Customer Deposits1 | AUMA | | | £393bn | £442bn | £58.5bn | | Driving operational leverage with | +12% | +2% | 48.6% | | positive jaws of | Income3 | Costs4 | Cost Income ratio | | 2 +10ppt | £16.4bn | £8.0bn | -4.8ppt | | Strong capit ...