Financial Performance - NatWest Group's customer loans reached £435 billion, a 4.4% increase compared to December 2024[5] - Customer deposits totaled £56 billion, up 0.8% from December 2024[5] - Assets Under Management (AUMA) grew to £12.1 billion, a 14.5% increase since December 2024[5] - The Group's attributable profit was £4.1 billion, with a Return on Tangible Equity of 19.5%, compared to 17.0% in the first nine months of 2024[5] - Earnings Per Share (EPS) increased by 32.4% compared to the first nine months of 2024, reaching 51 pence[5] Income and Expenses - Net interest income, excluding notable items, for the first nine months of 2025 was £9.388 billion, a 13.0% increase compared to the same period in 2024[8] - Total income, excluding notable items, for the first nine months of 2025 was £12.128 billion, a 12.5% increase compared to the first nine months of 2024[8] - Other operating expenses for the first nine months of 2025 were £5.884 billion, a 2.5% increase compared to the same period in 2024[8] Capital and Ratios - The CET1 ratio stood at 14.2%, reflecting a 202 basis points capital generation in the first nine months of 2025[5] - Tangible Net Asset Value (TNAV) per share increased by 14.6% compared to the first nine months of 2024, reaching 362 pence[5] - The loan impairment rate was 17 basis points for the first nine months of 2025[8] Lending and Deposits - Total lending across three key business areas increased by £16.3 billion, a 4.4% rise[12] - Customer deposits increased by £3.4 billion, representing a 0.8% growth[15]

Summary of Great-West Lifeco FY Conference Call Company Overview - **Company**: Great-West Lifeco (OTCPK:GRWF.F) - **Date of Conference**: September 08, 2025 Key Industry Insights - **Industry Focus**: Retirement and wealth management sectors in the U.S. and Canada - **Market Position**: Second largest retirement provider in the U.S. after significant consolidation and strategic transactions [5][6] Core Strategic Points - **Portfolio Transformation**: The company has shifted its focus towards capital-light businesses, which now constitute about two-thirds of its operations, including retirement, wealth, and group benefits [7][8] - **Earnings Growth Target**: The earnings growth target has been raised from 8% to a range of 8% to 10%, with a return on equity (ROE) target increased from 16%-17% to 19% plus [7][76] - **Capital Generation**: The company aims to generate over 580% of capital as a percentage of earnings over the medium term, emphasizing strong capital generation capabilities [7][30] Operational Focus - **Wealth Business Expansion**: The primary focus over the next two to three years is to expand the wealth business in the U.S., with a target to increase rollover capture rates by 30% [10][11] - **Cost Efficiency**: The company has a cost advantage, able to reduce costs by 30%-40% when integrating new books onto its platform [14][15] - **Diversified Revenue Streams**: Approximately 50% of revenues are asset-based fees, with an additional 25%-30% from transactional fees, providing a diversified revenue profile [19][21] Competitive Landscape - **Market Share Gains**: The company has successfully captured $135 billion in plan flows from competitors over the last three to four years, indicating strong organic growth [26][27] - **Pricing Strategy**: While there is some price competition, the company believes it often wins on service and capability rather than price alone [29] International Operations - **Canada**: The company is a leading group benefits provider in Canada, focusing on small and medium sectors while also moving into larger markets [49][50] - **UK Market**: The company is targeting growth in bulk annuities and pension risk transfer, with a focus on small to mid-sized transactions [58][63] Future Outlook - **M&A Strategy**: The company remains open to opportunistic acquisitions, particularly in the retirement sector, while maintaining strict price discipline [31][34] - **Productivity Initiatives**: Investments are being made to improve efficiency, particularly in Canada, with a goal to reduce the efficiency ratio from 56%-57% to below 50% [69][70] - **Technological Advancements**: The company is modernizing its tech platform to enable AI integration, which is expected to drive further efficiencies [68][70] Conclusion - Great-West Lifeco is strategically positioned for growth in the retirement and wealth management sectors, with a focus on capital-light businesses, strong capital generation, and a commitment to enhancing customer experience and operational efficiency. The company is well-prepared for potential market consolidation and is actively pursuing opportunities to expand its market share.

Financial Data and Key Metrics Changes - Income grew by 14% year on year to GBP 7.2 billion, profit before taxes increased by 28% to GBP 2.5 billion, and earnings per share rose by 41% to 11.7p [3][4] - Return on tangible equity (RoTE) was 12.3% in Q2, up from 9.9% in the same quarter last year, with a cost-to-income ratio of 59%, improving by four percentage points year on year [4][15] - The CET1 ratio stood at 14%, supporting a £1 billion buyback announcement, up from £750 million in 2024 [4][5] Business Line Data and Key Metrics Changes - All divisions generated double-digit RoTE in Q2, with the investment bank's RoTE improving by 2.6 percentage points year on year to 12.2% [6][15] - The U.S. Consumer Bank's RoTE increased to 10.2%, up from 9.2% in Q2 2024 [38] - Barclays UK reported a RoTE of 19.7%, with net interest income (NII) increasing by 16% year on year [26] Market Data and Key Metrics Changes - The group net interest income increased by 12% year on year to GBP 3.1 billion, supported by stable deposits and lending momentum [16][17] - The structural hedge is expected to deliver multiyear NII growth, with GBP 11.1 billion of gross structural hedge income locked in for 2025 and 2026 [18] - U.S. Consumer Bank's total income increased by 7% year on year, reflecting net receivables growth of 5% [39] Company Strategy and Development Direction - The company is committed to achieving a return on tangible equity of approximately 11% in 2025 and more than 12% in 2026, focusing on operational improvements across divisions [5][9] - The three-year plan aims to produce higher and more balanced returns, with a target of deploying GBP 30 billion of business growth risk-weighted assets in the UK by 2026 [10][24] - Structural improvements are expected to drive higher returns and shareholder distributions, with a focus on deepening client relationships and enhancing operational efficiency [11][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full objectives of the three-year plan, highlighting strong operational and financial progress [5][46] - The economic environment remains resilient, with low delinquencies and stable credit performance, supporting the outlook for future growth [21][72] - Management anticipates continued momentum in income growth and efficiency improvements, positioning the company well for future performance [9][80] Other Important Information - The company announced a total of GBP 1.4 billion in shareholder distributions for 2025, up 21% year on year, including a dividend of 3p per share [5][41] - The acquisition of Tesco Bank contributed to increased costs, but the company remains focused on achieving its cost-to-income ratio targets [19][27] - The company has maintained a strong liquidity position, with a loan-to-deposit ratio of 74% and a net stable funding ratio of 136% [42][43] Q&A Session Summary Question: Capital position and distribution strategy - Management indicated that the capital position is comfortable post-buyback, with a focus on generating higher returns and progressive distributions [48][51] Question: Investment banking fees in a low volatility environment - Management acknowledged that while investment banking fees have been challenged, they expect deal activity to increase, benefiting future performance [50][58] Question: Impact of historic swap maturity on product margins - Management clarified that the swap maturity impact is an accounting timing issue, with expectations for improved product margins in H2 [62][68] Question: Impairment outlook for U.S. Consumer Bank - Management expressed confidence in maintaining impairment guidance, with expectations for normal seasonal trends and a manageable impact from the General Motors card acquisition [65][70]