NatWest Group(US:NWG)2025-10-24 12:48Financial Performance - NatWest Group reported a net interest income of £9,388 million for the nine months ended September 2025, a 13.0% increase from £8,307 million in the same period of 2024[17]. - Total income for Q3 2025 was £4,332 million, reflecting an 8.2% increase compared to £4,005 million in Q2 2025[17]. - The company expects income excluding notable items to reach around £16.3 billion for 2025, with a RoTE of greater than 18.0%[15]. - NatWest Group achieved a profit for the period of £4,356 million, a 25.1% increase compared to £3,483 million in the same period of 2024[19]. - Total income for the nine months ended 30 September 2025 reached £12,317 million, compared to £10,878 million in 2024, reflecting a year-over-year increase of 13.2%[51]. - Operating profit before impairment losses for the nine months ended 30 September 2025 was £6,303 million, up from £4,996 million in 2024, indicating a growth of 26.2%[51]. - Profit attributable to ordinary shareholders for the nine months ended September 30, 2025, was £4,086 million, up from £3,271 million in the same period of 2024, reflecting a growth of 24.9%[182]. - Total comprehensive income for the period was £5,021 million, compared to £3,834 million in the same period last year, marking a growth of 30.9%[125]. Capital and Ratios - The Common Equity Tier 1 (CET1) ratio improved to 14.2%, up approximately 60 basis points from Q4 2024 and Q2 2025[14]. - The CET1 ratio stood at 14.2%, exceeding the top end of the target range, supported by RWA management actions of £2.2 billion in Q3 2025[24]. - The CET1 ratio increased to 14.2%, up 60 basis points from 13.6% in 2024, driven by a £1.8 billion increase in CET1 capital[91]. - The return on equity for the nine months ended 30 September 2025 was 19.5%, compared to 17.0% in the same period of 2024[51]. - The cost:income ratio (excluding litigation and conduct) improved to 47.8% for the nine months ended 30 September 2025, down from 52.8% in 2024[51]. - The average Liquidity Coverage Ratio (LCR) was 148%, indicating robust liquidity levels, with £51.6 billion headroom above the 100% minimum requirement[36]. Loans and Deposits - Customer net loans increased by £4.4 billion in Q3 2025, demonstrating strong demand and effective capital deployment[18]. - Net loans to customers (amortised cost) rose to £216.0 billion, with a £4.4 billion increase in Q3 2025 excluding central items[30]. - Customer deposits (excluding central items) decreased by £1.1 billion to £434.7 billion, primarily due to a reduction in savings balances[30]. - Customer deposits as of 30 September 2025 totaled £435.5 billion, a slight decrease of £0.2 billion from £431.1 billion in 2024[53]. - Net loans to customers increased by £3.8 billion in Q3 2025, driven by reverse repo activity in Treasury, bringing the total to £415.3 billion[53]. Impairment and Credit Quality - The net impairment charge was £153 million, or 15 basis points of gross customer loans, reflecting improved credit performance[29]. - Impairment losses for the nine months ended 30 September 2025 were £535 million, compared to £293 million in 2024, reflecting an increase in provisions[51]. - The loan impairment rate was reported at 19 basis points, indicating a stable credit risk environment[60]. - The underlying default rates and total number of defaults remained subdued, indicating stable portfolio performance despite economic challenges[73]. Business Segments Performance - Retail Banking achieved an operating profit of £850 million in Q3 2025, with a return on equity of 26.4%[33]. - Total income for Private Banking & Wealth Management was £284 million in Q3 2025, up 12.3% from £253 million in Q3 2024[37]. - Operating profit for Private Banking & Wealth Management increased to £108 million, reflecting a return on equity of 23.4%[38]. - Total income for Commercial & Institutional was £2,208 million, up 3.6% from Q2 2025 and 6.6% from Q3 2024[42][43]. - Operating profit for Commercial & Institutional reached £1,041 million, with a return on equity of 19.7%[44]. Climate and Sustainability Initiatives - The company provided £7.6 billion in climate and transition finance during Q3 2025, contributing to its target of £200 billion by the end of 2030[26]. - NatWest Group aims to provide £200 billion in climate and transition finance between 1 July 2025 and the end of 2030, supporting customers' climate ambitions[186]. Legal and Regulatory Matters - NatWest Group plc is involved in multiple legal claims regarding the manipulation of USD LIBOR, with a summary judgment granted in favor of the defendants on 25 September 2025, dismissing all claims[141]. - The US Court of Appeals reinstated claims against NWM Plc related to alleged manipulation of Euribor on 22 August 2025, while affirming the dismissal of the Pound Sterling LIBOR case[142]. - NWM Plc settled a foreign exchange claim in Australia for an amount covered by an existing provision, approved by the court in August 2025[143]. - The company has recognized an asset of £153 million related to VAT assessments, which it expects to recover[149].