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 ...

Financial Data and Key Metrics Changes - The company reported a strong performance in 2025, with total income increasing by 12% to GBP 16.4 billion, and operating profit reaching GBP 7.7 billion [4][14] - Earnings per share grew by 27% to GBP 0.68, while dividends per share increased by 51% to GBP 0.325 [5][6] - The cost-income ratio improved by 4.8 percentage points to 48.6%, reflecting operational efficiency [4][26] - The Common Equity Tier 1 (CET1) ratio stood at 14%, with a return on tangible equity of 19.2% [5][29] Business Line Data and Key Metrics Changes - Retail banking saw a customer base increase of over 5%, with customer assets and liabilities growing 4% to GBP 421 billion [7][8] - In private banking and wealth management, assets under management and administration rose by 20% to GBP 58.5 billion, with net new flows increasing by 41% [8][21] - Commercial and institutional lending grew by 10% or GBP 14 billion, with significant contributions from social housing and infrastructure projects [9][10] Market Data and Key Metrics Changes - The company added one million new customers in 2025, contributing to broad-based growth across all business segments [4][6] - Customer deposits increased by 2.4% to GBP 442 billion, with retail banking deposits growing by GBP 7.8 billion [20][21] - The company is the leading lender to UK infrastructure projects, delivering GBP 19 billion in climate and transition finance [10] Company Strategy and Development Direction - The company aims to focus on disciplined growth, simplification, and effective capital and risk management as part of its strategy [6][41] - The acquisition of Evelyn Partners is expected to enhance the company's private banking and wealth management capabilities, increasing assets under management to GBP 127 billion [35][42] - The company targets a return on tangible equity greater than 18% by 2028, with a cost-income ratio below 45% [46][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the UK economy, noting that consumers are managing well and investment is steadily increasing [43][44] - The company anticipates a supportive macroeconomic environment, with expectations of lower inflation and a stable unemployment rate [27][44] - The management highlighted the importance of leveraging technology and AI to enhance customer experience and operational efficiency [50][56] Other Important Information - The company achieved gross cost savings of around GBP 600 million, contributing to improved operational leverage [10][26] - The company plans to invest GBP 100 million in transforming its digital platform, Bankline, to enhance customer access to products and services [12][50] - The company expects to generate more than 200 basis points of capital before distributions in 2026 [40][59] Q&A Session Questions and Answers Question: Can you discuss the sources of the GBP 600 million cost savings and expectations for 2026? - Management noted that the cost savings stem from a broad range of efficiencies, including technology investments and operational simplifications [64][67] Question: What are the expectations for customer assets and liabilities growth across divisions? - Management expressed confidence in growing customer assets and liabilities across all business areas, although some areas may grow faster than others [64][72]

Financial Data and Key Metrics Changes - The company reported a strong performance in 2025, with total income growing by 12% to GBP 16.4 billion, and operating profit reaching GBP 7.7 billion, with attributable profit at GBP 5.5 billion [4][14] - Earnings per share increased by 27% to GBP 0.68, while dividends per share rose by 51% to GBP 0.325, reflecting a strong return to shareholders [5][6] - The cost-income ratio improved by 4.8 percentage points to 48.6%, indicating enhanced operational efficiency [4][26] Business Line Data and Key Metrics Changes - Retail banking saw a customer base increase of over 5%, with customer assets and liabilities growing by 4% to GBP 421 billion [7][8] - In private banking and wealth management, assets under management and administration rose by 20% to GBP 58.5 billion, with net new flows increasing by 41% [8][21] - Commercial and institutional lending grew by 10% or GBP 14 billion, with significant contributions from social housing and infrastructure projects [9][20] Market Data and Key Metrics Changes - The company added one million new customers in 2025, contributing to broad-based growth across all business segments [4] - Customer deposits increased by 2.4% to GBP 442 billion, with retail banking deposits growing by 4% [20][21] - The company is the leading lender to UK infrastructure projects, delivering GBP 19 billion in climate and transition finance [10] Company Strategy and Development Direction - The company aims to focus on disciplined growth, simplification, and effective capital and risk management, with a target return on tangible equity greater than 18% by 2028 [44][59] - The acquisition of Evelyn Partners is expected to enhance the company's private banking and wealth management capabilities, increasing assets under management significantly [35][42] - The company plans to leverage technology and AI to improve customer experience and operational efficiency [50][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the UK economy, noting that consumers are managing well, and there is a positive outlook for investment and housing markets [43][44] - The company anticipates continued growth in customer assets and liabilities, targeting an annual growth rate greater than 4% from 2025 to 2028 [46][59] - The management highlighted a strong capital position and a commitment to maintaining a CET1 ratio around 13% while generating significant capital from earnings [33][59] Other Important Information - The company achieved a loan impairment rate of 16 basis points, indicating strong risk management practices [5][28] - The company expects to generate around GBP 600 million in gross cost savings, which will be reinvested to support growth initiatives [10][26] - The company is actively simplifying operations, having decommissioned 200 business applications and migrated one million customers from Sainsbury's Bank [54] Q&A Session Summary Question: Can you discuss the sources of the GBP 600 million cost savings and expectations for 2026? - Management highlighted a broad range of levers including technology investments, application decommissioning, and organizational simplification as key contributors to cost savings [64][67] Question: What is the expected growth in customer assets and liabilities across divisions? - Management expressed confidence in growing across all aspects of customer assets and liabilities, noting that some areas may grow faster than others depending on market conditions [72]

Financial Data and Key Metrics Changes - The company reported a strong performance in 2025, with total income growth of 12% to £16.4 billion, and operating profit of £7.7 billion, leading to an attributable profit of £5.5 billion [4][17][18] - Earnings per share increased by 27% to 68p, while dividends per share rose by 51% to 32.5p [5][6] - The cost-income ratio improved by 4.8 percentage points to 48.6%, with costs growing only 2% to £8 billion [4][29] Business Line Data and Key Metrics Changes - Retail banking customer assets and liabilities grew by 4% to £421 billion, with a customer base increase of over 5% [7][8] - In private banking and wealth management, assets under management increased by 20% to £58.5 billion, with net new flows growing by 41% [8][25] - Commercial and institutional lending grew by 10% or £14 billion, reflecting strong performance across various sectors [10][23] Market Data and Key Metrics Changes - Customer deposits increased by 2.4% to £442 billion, with retail banking deposits up by 4% [24] - The company reported a loan impairment rate of 16 basis points, indicating strong risk management [6][33] - The CET1 ratio stood at 14%, reflecting robust capital generation [5][34] Company Strategy and Development Direction - The company aims to achieve a return on tangible equity greater than 18% by 2028, focusing on disciplined growth and simplification [51][71] - The acquisition of Evolent Partners is expected to enhance the company's private banking and wealth management capabilities, increasing assets under management significantly [40][48] - The company plans to leverage technology and AI to improve customer experience and operational efficiency [60][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the UK economy, citing strong household savings and a commitment to social housing investment [50] - The company anticipates a moderate growth environment in 2026, with expectations for lower inflation and stable unemployment rates [31][30] - Future guidance includes income expectations of £17.2 billion to £17.6 billion for 2026, with a loan impairment rate below 25 basis points [20][46] Other Important Information - The company has reduced its share count from over 11 billion to just under 8 billion, enhancing shareholder value [6] - The company achieved gross cost savings of around £600 million, contributing to improved operational leverage [11][29] - The strategic focus includes expanding customer engagement and broadening product offerings across all business lines [60][62] Q&A Session Summary Question: On costs and future cost savings - The company highlighted a nearly 5% reduction in the cost-income ratio and discussed various levers for cost savings, including technology investments and operational simplifications [77][80] Question: On customer assets and liabilities target - Management expressed confidence in achieving growth across all business areas, including lending, deposits, and assets under management, while not providing specific growth splits [84]

Financial Data and Key Metrics Changes - The company reported a strong performance in 2025, with total income increasing by 12% to GBP 16.4 billion, and operating profit of GBP 7.7 billion, leading to an attributable profit of GBP 5.5 billion [3][4][12] - Earnings per share grew by 27% to GBP 0.68, while dividends per share increased by 51% to GBP 0.325 [4] - The cost-income ratio improved to 48.6%, down 4.8 percentage points from the previous year, reflecting operational efficiency [3][23] Business Line Data and Key Metrics Changes - Lending grew by 5.6% to GBP 393 billion, with deposits up 2.4% to GBP 442 billion, and assets under management increasing by 20% to GBP 58.5 billion [3][18] - Retail banking saw a customer base increase of over 5%, with customer assets and liabilities growing 4% to GBP 421 billion [5][6] - In commercial and institutional banking, lending balances grew by 10% or GBP 14 billion, with significant contributions from social housing and infrastructure projects [7][18] Market Data and Key Metrics Changes - The company added one million new customers in 2025, contributing to broad-based growth across all three business segments [3] - The net interest margin increased by 21 basis points to 234 basis points, driven by deposit growth and margin expansion [13][20] - The company is the leading lender to UK infrastructure projects, delivering GBP 19 billion of climate and transition finance towards a target of GBP 200 billion by 2030 [8] Company Strategy and Development Direction - The company aims to focus on disciplined growth, simplification, and effective capital and risk management, with a target return on tangible equity greater than 18% by 2028 [42][56] - The acquisition of Evelyn Partners is expected to enhance the company's private banking and wealth management capabilities, increasing assets under management to GBP 127 billion [33][40] - The company plans to leverage technology and AI to improve customer experience and operational efficiency, aiming for a cost-income ratio below 45% by 2028 [54][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the UK macroeconomic environment, noting that consumers are managing well, with households paying down debt and savings rates remaining high [41] - The company anticipates moderate growth in the macro environment for 2026, with expectations of lower inflation and a terminal bank rate of 3.25% by the end of 2026 [25] - The management highlighted a strong track record of capital generation and risk management, with a CET1 ratio of 14% and a commitment to maintaining a robust capital position [27][30] Other Important Information - The company achieved gross cost savings of around GBP 600 million, which is over 7% of the 2024 cost base, allowing for reinvestment in business growth [8][23] - The company expects to generate around 200 basis points of capital before distributions in 2026, supporting ongoing growth and shareholder returns [30][37] Q&A Session All Questions and Answers Question: Can you discuss the sources of the GBP 600 million cost savings and expectations for 2026? - Management noted that the cost savings came from a broad range of efficiencies, including technology investments and platform consolidations, with expectations for continued cost-tight management into 2026 [60][63] Question: How will the greater than 4% customer assets and liabilities target be disaggregated across divisions? - Management expressed confidence in achieving growth across all business areas, with expectations that some areas, particularly assets under management, will grow faster than others [67][68]

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Core Viewpoint - NatWest has projected further income growth and profitability for the year following fourth-quarter results that exceeded expectations [1] Group 1: Financial Performance - The fourth-quarter results reported by NatWest surpassed market expectations, indicating strong financial performance [1] - The company is optimistic about its income growth and profitability for the upcoming year, suggesting a positive outlook for its financial health [1]

Core Insights - China's electric vehicle market experienced a significant shift in January, with Xiaomi's latest electric SUV surpassing Tesla's Model Y to become the best-selling vehicle in the country [1] Company Summary - Xiaomi's new electric SUV has achieved the status of the best-selling vehicle in China, indicating a strong competitive position against established players like Tesla [1] - Tesla's Model Y, previously a market leader, has been overtaken, highlighting the increasing competition in the electric vehicle sector [1] Industry Summary - The shift in sales dynamics reflects a broader trend in the Chinese electric vehicle market, where local manufacturers are gaining ground against international brands [1] - This development may signal changing consumer preferences and increased demand for domestic electric vehicles [1]

Core Insights - NatWest reported a 24% increase in annual profit, reaching 7.7 billion pounds ($10.47 billion), which exceeded analysts' forecasts of 7.5 billion pounds [1][1][1] - The bank has raised its return on tangible equity target for 2028 to over 18%, up from a previous target of over 15% for 2027 [1][1][1] - The results were announced shortly after NatWest's agreement to acquire Evelyn Partners, one of Britain's largest wealth managers [1][1][1] Financial Performance - The pretax operating profit for 2025 was reported at 7.7 billion pounds, an increase from 6.2 billion pounds the previous year [1][1][1] - The profit growth of 24% was slightly above market expectations, indicating strong performance [1][1][1] Strategic Outlook - NatWest's new target for return on tangible equity reflects a more ambitious growth strategy moving forward [1][1][1] - The acquisition of Evelyn Partners is expected to enhance NatWest's wealth management capabilities and market position [1][1][1]

Core Viewpoint - The acquisition of Evelyn Partners for GBP 2.7 billion positions the company as the leading private banking and wealth management firm in the U.K., enhancing its strategy by tapping into a growing market supported by favorable demographic, regulatory, and technological trends [2]. Company Overview - Evelyn Partners is a prominent financial planning and investment management firm with a 180-year history, a loyal client base, and a strong cultural alignment with the acquiring company [3]. - The firm operates a regional network of 21 offices and employs 270 financial planners and 325 specialist investment managers, along with a well-regarded direct-to-consumer investment platform, Bestinvest [3]. Financial Performance - In 2025, Evelyn Partners reported an income of GBP 509 million and an EBITDA of GBP 179 million, achieving a margin of 35% [3]. - The firm has successfully attracted net new inflows of GBP 1.6 billion, indicating strong prospects for future growth [3].