NatWest Group (NYSE:NWG) Q4 2025 Earnings call February 13, 2026 08:30 AM ET Company ParticipantsDonal Quaid - TreasurerGildas Surry - Managing DirectorKatie Murray - CFORobert Smalley - Managing DirectorConference Call ParticipantsDan David - Credit AnalystOperatorGood afternoon, and welcome to the NatWest Group Full Year Results 2025 Fixed Income Update. Today's presentation will be hosted by CFO, Katie Murray, and Treasurer, Donal Quaid. After the presentation, we will open up for questions. Katie, pleas ...

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 Insights - Bank of America (BAC) reported third-quarter 2025 EPS of $1.06, exceeding consensus estimates of $0.95, and core EPS of $1.06 compared to Street estimates of $0.97–$1.00 [1][4] - The bank raised its fourth-quarter 2025 net interest income (NII) guidance to $15.6–15.7 billion, indicating strong growth in NII and improved trading and investment banking fees [1][2] - Analyst Richard Ramsden maintained a Buy rating on BAC with a price target of $59, projecting fiscal 2025 revenue of $109.43 billion and EPS of $3.71 [2] Financial Performance - BAC's core Pre-Provision Net Revenue (PPNR) was $10.9 billion, 6% above Street expectations, driven by stronger core fees and improved operating efficiency [4] - The bank's NII exceeded expectations by 1%, supported by a 3-basis-point increase in net interest margin (NIM) [4] - Core fee revenue rose 4% above expectations, bolstered by stronger trading and investment banking fees, although consumer fees lagged slightly [4] Capital and Efficiency - Despite $5.3 billion in share repurchases, BAC grew its Common Equity Tier 1 (CET1) by $1.7 billion, with a CET1 ratio of 11.6%, significantly above the 10% minimum [2][4] - The core efficiency ratio improved to 61.4%, about 140 basis points better than the Street [4] - Provisions fell 18% below estimates due to a $72 million reserve release [4] Market Reaction - BAC stock increased by 4.35% to $52.28 following the earnings report [3]