NatWest Group PLC (NYSE:NWG) Q1 2024 Earnings Conference Call April 26, 2024 4:00 AM ET Company Participants John-Paul Thwaite - Group CEO & Executive Director Katie Murray - Group CFO & Executive Director Conference Call Participants Chris Cant - Bernstein Aman Rakkar - Barclays Bank Andrew Coombs - Citigroup Jonathan Pierce - Numis Fahed Kunwar - Redburn Alvaro Serrano - Morgan Stanley Robin Down - HSBC Guy Stebbings - BNP Paribas Exane Ed Firth - KBW Raul Sinha - JPMorgan Chase & Co. Benjamin Toms - RBC ...

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For April 26, 2024 Commission File Number: 001-10306 NatWest Group plc Gogarburn, PO Box 1000 Edinburgh EH12 1HQ (Address of principal executive offices) | Chief Financial Officer's review | 4 | | --- | --- | | Retail Banking | 5 | | Private Banking | 6 | | Commercial & Institutional | 7 | | Central items & other | 8 | | Segment performan ...

Photographer: Hollie Adams/Bloomberg© 2024 Bloomberg Finance LPShares in NatWest Group NatWest Group rose on Friday as results for the first few months of 2024 beat City forecasts.However, operating pre-tax profit slumped by more than a quarter year on year as the benefit of previous Bank of England interest rate hikes eroded.At 299.4p per share, the FTSE 100 share was last dealing 3.3% higher in end-of-week business.While total income dropped 10% to £3.5 billion during the March quarter, this beat analyst ...

Shareholder Information - NatWest Group reported a total of 8,991,736,976 ordinary shares outstanding as of December 31, 2023[5]. - The company has issued various subordinated notes, including 5.125% Tier 2 Notes due 2024 and 3.754% Tier 2 Notes due 2029, registered on the New York Stock Exchange[4]. - There are no material modifications to the rights of security holders reported for the fiscal year[13]. - The company paid ordinary share dividends totaling £1.456 billion and paid-in equity dividends of £242 million during the year[179]. Financial Reporting and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board[11]. - The company is classified as a large accelerated filer under the Exchange Act[8]. - NatWest Group has confirmed compliance with all reporting requirements under the Securities Exchange Act of 1934 for the past 12 months[6]. - The company has submitted and posted all required Interactive Data Files on its corporate website during the preceding 12 months[7]. - NatWest Group's financial statements are prepared in accordance with GAAP, and the document includes non-IFRS measures to provide a consistent basis for comparing business performance[25]. - The financial statements were audited in accordance with PCAOB standards, presenting a fair view of the Group's financial position[123]. - The Group maintained effective internal control over financial reporting as of December 31, 2023, according to the audit opinion[163]. Financial Performance - NatWest Group reported a total income increase of 12.1% to £14.8 billion in 2023, with a return on equity of 12.1% and a RoTE of 17.8%[33][34]. - Profit from continuing operations was £4,744 million, an increase of £887 million, or 23.0%, compared to 2022[67]. - The total comprehensive income for the year was £4,686 million, significantly higher than £625 million in 2022[174]. - The effective tax rate decreased to 23.2% from 24.8% in 2022, with a tax charge of £1,434 million for the year[58]. - The total income for 2023 was £14,752 million, up 12.1% from £13,156 million in 2022[170]. - Profit for the year reached £4,632 million, representing a 28.9% increase compared to £3,595 million in 2022[174]. - Earnings per ordinary share for continuing operations increased to 49.2p in 2023, up from 36.5p in 2022, marking a growth of 34.8%[170]. Asset and Liability Management - Total assets decreased to £692.673 billion in 2023 from £720.053 billion in 2022, a decline of approximately 3.8%[177]. - Total liabilities decreased to £655.485 billion in 2023 from £683.557 billion in 2022, a reduction of about 4.1%[177]. - The company reported a significant change in operating assets and liabilities, with a decrease of £25,679 million in 2023 compared to a decrease of £48,447 million in 2022[189]. - Cash and balances at central banks decreased significantly to £104.262 billion in 2023 from £144.832 billion in 2022, a drop of about 28%[177]. Risk Management - The company faces significant economic and political risks, including inflation, interest rates, and geopolitical developments, which may adversely affect its results[29]. - NatWest Group's strategy implementation carries execution and operational risks, and it may not achieve its stated aims and targeted outcomes[29]. - The company has significant exposure to counterparty and borrower risk, which may lead to credit losses impacting its financial condition[29]. - NatWest Group's liquidity and funding may be affected if it fails to meet prudential regulatory requirements, potentially triggering management actions[29]. - The company is subject to regulatory stress tests, and failure to meet these requirements could result in increased capital maintenance[29]. Operational Highlights - Total operating expenses were £7,996 million, with a cost-to-income ratio of 51.8%[35][44]. - Operating profit before impairment losses was £6.756 billion, with an operating profit of £6.178 billion after accounting for impairment losses[77]. - The company is focused on transitioning to a net zero economy, with ongoing development of its climate risk analysis and net zero strategy[18]. - The bank's focus on digital sales and cost management remains critical for maintaining competitive advantage in the market[112]. - NatWest Group is actively reshaping its branch network and simplifying its product offerings to enhance customer experience[112]. Customer and Market Dynamics - Customer loans increased by £15.1 billion to £381.4 billion, driven by a £7.6 billion rise in Retail Banking and £2.0 billion growth in Commercial & Institutional[38]. - Customer deposits decreased by £18.9 billion to £431.4 billion, with a loan-to-deposit ratio of 84%[40][45]. - The bank faces increasing competition from non-traditional players and new entrants in the UK market, particularly in the mortgage and credit card sectors[113][114]. - Retail Banking reported total income of £5.931 billion in 2023, an increase of £285 million or 5.0% compared to 2022[85]. - Total income for Commercial & Institutional was £7,421 million in 2023, an increase of £1,008 million, or 15.7%, compared to 2022[98]. Climate and Sustainability Initiatives - NatWest Group provided £29.3 billion in climate and sustainable funding and financing in 2023, aiming for £100 billion by the end of 2025[39][44]. - Retail Banking provided £3.7 billion of climate and sustainable funding in 2023, focusing on properties with high energy performance ratings[89]. - NatWest Group's climate and sustainability-related disclosures are subject to change and are not fully aligned with IFRS standards, indicating inherent uncertainties[18].

(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 6-K SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For February 23, 2024 Commission File Number: 001-10306 NatWest Group plc Gogarburn, PO Box 1000 Edinburgh EH12 1HQ Form 20-F X Form 40-F ___ Indicate by check mark whether the reg ...

Financial Data and Key Metrics - In 2023, the company increased lending to customers by GBP 9 billion, opened over 100,000 new start-up accounts, and helped customers save GBP 21 billion more in fixed-term savings [2] - The net impairment charge for the full year was GBP 578 million, equivalent to 15 basis points of loans, with expectations of a low impairment rate below 20 basis points in 2024 [10] - The company reported a CET1 ratio of 13.4% at the end of Q4 2023, with capital generation of 154 basis points before notable items and RWA model updates [41] - Full-year income excluding notable items was GBP 14.3 billion, up 9.8%, with a return on tangible equity of 17.8% [48][88] Business Line Performance - Retail Banking remained the highest-returning business in 2023, with a return on equity of 23.8%, despite higher costs and impairments [8] - Commercial & Institutional Banking delivered the strongest year-on-year improvement, growing income by 16% and operating profit by 27%, contributing 52% of group operating profit [57] - Private Banking return on equity was 14.8%, affected by lower deposit balances and cost inflation [57] Market Performance - The company serves 19 million customers across Retail Banking, Private Banking, and Commercial & Institutional Banking, with leading market positions and a 20% share in the youth and new startup segments [7] - Mortgage flow share for the full year was 14%, with a stock share increase from 12.3% to 12.7% [89] - Deposits across the three businesses reduced by GBP 14 billion in 2023, with noninterest-bearing deposits decreasing to GBP 142 billion and term deposits increasing to GBP 68 million [9] Strategic Direction and Industry Competition - The company is focused on driving returns through disciplined growth, cost efficiency, and capital allocation, targeting a return on tangible equity greater than 13% by 2026 [54] - Investments in digitization and automation are expected to improve productivity and customer experience, with run rate savings of GBP 250 million annually since 2021 [71] - The company is actively managing its balance sheet, including the structural hedge, which is expected to deliver a tailwind in 2024 and beyond [6][74] Management Commentary on Operating Environment and Future Outlook - Management expects a low impairment rate below 20 basis points in 2024, driven by the current performance of the loan book and an updated economic outlook [10] - The company anticipates a reduction in interest rates, with five cuts starting in May 2024, which will impact income progression and deposit pass-through [5][76] - The macroeconomic environment remains uncertain, with geopolitical risks and potential impacts on global trade and supply chains [44] Other Important Information - The company announced a final dividend of 11.5 pence, bringing the total dividend to 17 pence, and a new on-market buyback of GBP 300 million, with total distributions for the year reaching GBP 3.6 billion [31] - The government stake in the company has reduced from 46% at the start of 2023 to under 35%, with plans for a full exit by 2026 [31] - The company provided GBP 29 billion of climate and sustainable funding in 2023, bringing the total to GBP 62 billion since July 2021, with a target of GBP 100 billion by the end of 2025 [48] Q&A Summary Question: Confidence in new RoTE targets and mortgage business growth [12] - The company expects RoTE to increase from 12% in 2024 to above 13% by 2026, driven by the structural hedge and disciplined capital allocation [12] - Mortgage growth is expected to be stable, with a focus on managing the balance sheet in a competitive market [12] Question: Impact of rate cuts on income and deposit pass-through [141] - The company assumes a 60% pass-through of rate cuts to customer deposit rates, with timing lags influenced by competition and customer behavior [141] Question: Structural hedge and deposit migration [108] - The structural hedge notional balance reduced to GBP 185 billion at the end of 2023, with expectations of further reduction in 2024, but at a slower pace [108][111] Question: Cost management and restructuring [173] - The company expects costs to remain broadly stable in 2024, with wage inflation and contract inflation mitigated through cost-saving measures [173] Question: Loan growth and economic outlook [133] - The company targets above-market loan growth, particularly in mortgages and corporate lending, with a focus on returns and disciplined capital allocation [133][158] Question: Revenue guidance and rate cut assumptions [193] - The company's revenue guidance for 2024 reflects uncertainty around rate cuts, competition, and customer behavior, with income expected to be stronger in the second half of the year [193][199] Question: TNAV and RoTE expectations [209] - The company expects TNAV to grow significantly, driven by the unwinding of the cash flow hedge reserve, with RoTE improving as rate cuts are completed [209][204]

Shareholder Rights and Voting - The percentage of voting rights held by His Majesty's Treasury in NatWest Group plc is 41.84%, down from 42.95% following the disposal of 111,427,033 ordinary shares[10]. - The total number of voting rights in NatWest Group plc is 38,661,692,740[10]. - The company has extended its trading plan for share sales announced on July 22, 2021, which may affect the percentage of voting rights held by HMT[11]. - The company continues to evaluate its share buyback program, which could influence the voting rights percentage in the future[11]. - Total shares issued as of 31 March 2023 amounted to 9,593,494,746 ordinary shares, resulting in total voting rights of 38,373,978,984[33]. - The total voting rights for shareholders as of 31 March 2023 is 38,375,911,544[33]. Share Awards and Performance - Conditional restricted share plan awards and deferred awards were granted to key management personnel, with the maximum number of shares eligible to vest for the CEO of NatWest Markets being 164,524[13]. - The share price used for the grant of the awards ranged from £2.2055 to £2.8249, reflecting discounts for the absence of dividend equivalents during the vesting period[13]. - A pre-vest performance assessment for the restricted share plan will occur at the end of three years, with vesting eligibility between 2026 and 2030[14]. - Malus provisions will apply to each award until vesting, and clawback provisions will be in effect for seven years from the date of grant[15]. Tax Liabilities and Share Retention - The number of shares withheld to satisfy tax liabilities for the CEO of NatWest Markets was 41,369 out of 86,052 vested shares[16]. - The total number of shares retained by the CEO of NatWest Markets after tax liabilities was 44,683[16]. - The number of shares retained by PDMRs after tax liabilities varied, with the highest being 50,815 shares retained by the CEO[18]. - Shares withheld to meet associated tax liabilities for PDMRs included 30,814 shares withheld from the Group CFO[18]. - The market price used for tax liabilities was £2.920075, with shares delivered calculated at £2.9216 for the three-month period ending 31 March 2023[17]. Share Transactions - A total of 73,000 shares were sold by the Chief People & Transformation Officer at a sale price of £2.7167 on 22 March 2023[27]. - The total number of shares purchased by PDMRs on 30 March 2023 included 3,853 shares by the Chairman at £2.671 each[29]. Financial Instruments - The company issued EUR500,000,000 4.699% Fixed to Floating Rate Notes due 14 March 2028 under a £40,000,000,000 Euro Medium Term Note Programme[20]. Corporate Events - The company will host an Investor Spotlight event on its Climate strategy on 30 March 2023[28]. Share Value - The nominal value of ordinary shares is £1.0769, with a note indicating the precise value without rounding[29].

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For October 27, 2023 Commission File Number: 001-10306 NatWest Group plc Gogarburn, PO Box 1000 Edinburgh EH12 1HQ (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 X Form 40-F ___ Indicate by check mark whether the regi ...

NatWest Group plc (NYSE:NWG) Q3 2023 Earnings Conference Call October 27, 2023 4:00 AM ET Company Participants Paul Thwaite - CEO Katie Murray - CFO Conference Call Participants Rahul Sinha - J.P. Morgan Aman Rakkar - Barclays Ed Firth - KBW Alvaro Serrano - Morgan Stanley Guy Stebbings - BNP Paribas Exane Joseph Dickerson - Jefferies Benjamin Toms - RBC Adam Terelak - Mediobanca Jonathan Pierce - Numis Chris Cant - Autonomous Andrew Coombs - Citibank Robin Down - HSBC Fahed Kunwar - Redburn Atlantic Paul T ...

Arrears levels remain broadly stable Property ex-CRE Corporate Credit Cards & Other Sov & FI's 4 Mortgages CRE • Growth YTD driven by Credit Card remains within limits for all Unsecured products 13 14 Liquidity coverage ratio (LCR) as at Q3'23 Headroom of £49.6bn O-SII group risk add-on4 Countercyclical leverage ratio buffer6 Minimum Tier 1 capital requirement Other operating Loan impairment Total costs and C:I RoTE Income rate ratio2 ~£14.3bn¹ NIM: >3% ~£7.6bn Below 20bps Upper end of 14-16% <52% Assumes p ...