Core Viewpoint - NatWest Group has softened its fossil fuel lending policy, prompting concerns from activist group ShareAction regarding the bank's commitment to climate leadership [1]. Group 1: Policy Changes - NatWest removed bans on renewing or refinancing reserve-based lending for oil and gas exploration, extraction, and production [1]. - The bank also lifted restrictions on offering reserve-based lending to new oil and gas customers [1]. - Additionally, bans on dealing with oil and gas majors without transition plans aligned with climate goals and upstream companies with assets primarily outside the UK have been removed [1]. Group 2: Strategic Context - The changes reflect the complexity of the energy transition and the broader national policy agenda, as stated by NatWest's Head of Group Sustainability, Kirsty Britz [1]. - Despite these changes, NatWest aims to halve the climate impact of its financing by 2030 [1]. Group 3: Reactions and Implications - ShareAction plans to call for investors to oppose the re-election of Chair Richard Haythornethwaite at the upcoming annual meeting due to concerns over the bank's retreat from climate commitments [1]. - The activist group emphasizes that NatWest has historically positioned itself as a climate leader, making the recent policy shift a significant concern [1].

This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. Dive Brief: Deutsche Bank raised 500 million euros ($594.1 million) for its first European green bond, issued under the European Union’s updated standards for such bonds, according to a Tuesday press release. The bond will be used to refinance assets in the bank’s green buildings portfolio. The bond will mature in four years and is callable after three years, with a 2.875 ...

Core Insights - MuniFin Group's net operating profit excluding unrealised fair value changes decreased by 1.5% to EUR 178 million in 2025, primarily due to increased expenses [3][11] - The Group's net operating profit increased by 16.3% to EUR 193 million, influenced by unrealised fair value changes of EUR 14 million [3][23] - Sustainable finance initiatives saw significant growth, with total sustainable finance increasing by 34.1% to EUR 12,595 million [3][4] Financial Performance - Net interest income remained stable at EUR 260 million, while new long-term customer financing increased slightly by 0.6% to EUR 5,088 million [3][4] - Total costs rose by 6.6% to EUR 86 million, driven by higher HR and administrative expenses [14][17] - The cost-to-income ratio improved to 25.9%, down from 27.7% in the previous year [4] Capital and Leverage - The Group's CET1 capital ratio was very strong at 94.0%, although it decreased from 107.7% due to new regulatory requirements [3][4] - The leverage ratio improved to 13.1%, up from 12.3% [4] - Total funding reached EUR 49,117 million, with long-term funding comprising EUR 45,042 million [3][4] Customer Financing - Long-term customer financing, excluding fair value changes, increased by 7.6% to EUR 38,510 million [3][4] - The amount of green finance aimed at sustainable investments rose to EUR 9,111 million, while social finance reached EUR 2,775 million [3][4] - New long-term funding increased by 12.3% to EUR 10,019 million [4] Market Outlook - The economic outlook for 2026 is cautiously optimistic, with expectations of growth supported by green transition investments and recovery in domestic consumption [36][39] - However, challenges remain, including potential funding deficits for municipalities due to central government transfer cuts and rising personnel costs [40][41] - The housing market is expected to remain weak, with limited recovery in privately financed construction [41]

Group 1 - State Bank of India (SBI) has raised $1 billion through a five-year loan from Mitsubishi UFG Financial Group (MUFG), marking the first social loan of its kind by a bank in India [1][2][5] - The funds will be allocated to support women's economic empowerment and businesses led by women, aligning with gender equality initiatives [1][2] - The loan was priced at 90 basis points above the three-month SOFR, which is more favorable compared to HDFC Bank's recent loan pricing of 94 basis points above the same benchmark [1][5] Group 2 - The loan includes a green shoe option of $500 million and is expected to close in March 2026, with syndication launched on February 2 [2][5] - With the three-month SOFR at approximately 3.83%, the effective interest rate for SBI is projected to be around 7.73% after accounting for dollar hedging costs [5] - MUFG has set a sustainable finance target of $660 billion by 2030 as part of its medium-term business plan, reflecting a commitment to ESG goals [6]

Financial Data and Key Metrics Changes - The return on equity for 2025 was 13.2%, exceeding initial guidance [5] - Total income reached a record level for the third consecutive year, with commercial net interest income (NII) at EUR 15.3 billion despite lower interest rates [5][6] - Net profit for the year was over EUR 6.3 billion, contributing almost two percentage points to the CET1 ratio [7] Business Line Data and Key Metrics Changes - The loan book grew by 8.3% in 2025, primarily driven by residential mortgages, while the deposit book increased by 5.5% [4] - Fee income grew by 15% year-on-year, with investment products seeing a 21% increase in fee income [5][6] - The number of Mobile Primary Customers increased by over 350,000 in Q4, totaling over 1 million for the year [4] Market Data and Key Metrics Changes - Customer deposit growth was 4.5% in 2025, supported by successful promotional campaigns [19] - The company maintained its number one position in retail banking in 5 out of 10 markets and ranked in the top three in all markets [7] Company Strategy and Development Direction - The company aims for total income to grow to around EUR 24 billion in 2026, supported by continued volume growth and a 5%-10% increase in fee income [9] - A focus on cost discipline and operational efficiency is evident, with projected operating expenses for 2026 in the range of EUR 12.6 billion to EUR 12.8 billion [9] - The company plans to issue between EUR 6 billion and EUR 8 billion of Holdco Senior in 2026, aligning with its issuance in 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and quality of the loan book, with total risk costs in line with the through-the-cycle average [11] - The company remains committed to supporting clients in their sustainability transitions, with total sustainable volume mobilized reaching EUR 166 billion, a 28% increase year-on-year [5] - The outlook for 2027 includes expectations for total income to exceed EUR 25 billion, with a higher fee income target now expected to exceed EUR 5 billion [9] Other Important Information - The CET1 ratio decreased to 13.1% due to an additional distribution of EUR 1.6 billion [14] - The company has a stable liquidity profile, with over two-thirds of the balance sheet funded by customer deposits [19] Q&A Session Summary Question: Plans for tapping the ECB, MROs, and LTROs - Management stated that the company prefers to be self-sufficient and does not want to rely on central bank operations, but may consider them for economic reasons if necessary [25][26]

Financial Data and Key Metrics Changes - The lending book grew by EUR 57 billion in 2025, representing an 8% increase compared to the previous year, which was double the growth rate of 2024 [2] - Total deposits increased by EUR 38 billion, a growth of 6% in 2025, with total balances to clients (deposits and lending) growing by an average of 7% [2] - Net profit for the year was EUR 6.3 billion, with a return on equity of 13.2% and a capital ratio of 30.1% [6] Business Line Data and Key Metrics Changes - Interest income remained stable despite headwinds from lower replication volumes, with a 5% growth in Q4 lending [4] - Fee income increased by 15%, reaching EUR 4.6 billion, driven by investment products and wholesale banking activities [5] - Asset management and e-brokerage grew significantly, with a total of EUR 278 billion, marking a 60% increase compared to 2024 [3] Market Data and Key Metrics Changes - The company reported over 1 million primary customers in 2025, with a total of 15 million primary customers out of 41 million total customers [1] - The company is recognized as a top three mortgage provider in Europe, with EUR 376 billion in mortgages [2] Company Strategy and Development Direction - The company aims to diversify its business profile beyond traditional lending, focusing on asset management and e-brokerage to enhance customer engagement [3] - There is a strategic emphasis on becoming a primary bank for customers, moving from a secondary bank model to a more impactful presence in various markets [34] - The company is also focusing on digital transformation and improving customer experience to compete with neobanks and traditional banks [44][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, highlighting the need to deepen and broaden customer relationships [66] - The company acknowledges the competitive landscape, particularly from digital innovators and neobanks, and is committed to closing the gap in customer experience [68] - There is a recognition of the importance of balancing risk and return, especially in the context of changing regulatory environments and market conditions [24][94] Other Important Information - The company is transitioning from expert-based to data-driven risk models in response to ECB supervision, which is expected to enhance capital management [12][19] - The management emphasized the importance of diversification in risk management, including the use of various financial instruments to mitigate potential market disruptions [24] Q&A Session All Questions and Answers Question: What can we expect from your SRT strategy and growth? - Management indicated that they expect a bit more growth in SRTs, having started this strategy recently and improving their models to be more data-driven [11][13] Question: How do you view the competition from neobanks like Revolut? - Management acknowledged the competition from neobanks and emphasized the need to enhance customer experience and tailor services to specific customer segments [43][70] Question: What is the company's approach to SME banking? - Management stated that they are developing a digital SME bank in Germany, focusing on current accounts and payments for self-employed individuals and SMEs [78]

Financial Data and Key Metrics Changes - The company reported revenues of EUR 32 billion for 2025, representing a compound annual revenue growth of 6% since 2021, within the target range of 5.5%-6.5% [4] - Pre-tax profit reached EUR 9.7 billion, with a net profit of EUR 7.1 billion, achieving a post-tax return on tangible equity of 10.3%, meeting the full-year target of above 10% [5] - The cost-income ratio was 64%, in line with the target of below 65%, and credit loss provisions were EUR 1.7 billion, down year-on-year [4][5] Business Line Data and Key Metrics Changes - The Corporate Bank delivered revenue growth of over 40% since 2021, benefiting from a normalized interest rate environment and increased fee income [8] - The Investment Bank saw client activity increase by 11% in 2025, with a focus on deepening and broadening the franchise [9] - The Private Bank achieved a cost-income ratio below 70% and returns above 10% in 2025, with EUR 110 billion of net inflows since 2021 [10] Market Data and Key Metrics Changes - The company maintained a strong CET1 ratio of 14.2% at year-end, despite capital headwinds [5][19] - The liquidity coverage ratio finished the year at 144%, and the net stable funding ratio was 119% [19] - The company expects net interest income across key banking segments to increase to around EUR 14 billion in 2026 [23] Company Strategy and Development Direction - The company aims to scale its Global House Bank, with a roadmap to increase post-tax return on tangible equity from 10% in 2025 to greater than 13% by 2028 [14] - Plans to further improve the cost-income ratio to below 60% from 64% in 2025 through focused growth, strict capital discipline, and a scalable operating model [14] - The company is committed to increasing its payout ratio to 60% starting in 2026, with continuous growth in dividends and share buybacks [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2026, with expectations for continued growth across all business lines [15][39] - The geopolitical environment and regulatory discussions are seen as potential catalysts for growth, with a focus on simplifying regulations [70][71] - The company anticipates a modest increase in Corporate Bank revenues and continued growth in the Investment Bank and Private Bank [40] Other Important Information - The company proposed a EUR 1 dividend per share and an authorized share buyback of EUR 1 billion, totaling EUR 2.9 billion in distributions for 2025 [6][12] - Cumulative distributions for 2021-2025 are expected to reach EUR 8.5 billion, exceeding the original target of EUR 8 billion [6] Q&A Session Summary Question: Revenue guidance for 2026 - The company aims to reach EUR 33 billion in revenues, with expectations for growth in all business lines, particularly in the Corporate Bank and Investment Bank [46][48] Question: Operating leverage and investments - The company plans to invest EUR 900 million in 2026 to unlock growth and efficiencies, while also committing to positive operating leverage starting in 2026 [47][58] Question: Capital usage and distribution - The company intends to prioritize shareholder distributions, with plans for annual buybacks and a focus on organic growth opportunities [63][66] Question: Deposit growth and competition - The company is confident in its deposit growth strategy despite competitive pressures, emphasizing its unique value proposition and operational reliability [68][69]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 13.2% for 2025, exceeding initial guidance [7] - Total income reached a record level for the third consecutive year, driven by strong net interest income (NII) and fee income growth [8][10] - Commercial NII was strong at EUR 15.3 billion, supported by increased customer balances [8] Business Line Data and Key Metrics Changes - Retail banking contributed EUR 11.3 billion in the fourth quarter, with net core lending growth of EUR 10.1 billion, primarily from residential mortgages [5][7] - Wholesale banking added EUR 10.3 billion in net lending, driven by strong demand for lending and working capital solutions [5] - Fee income grew by 15% for the full year, supported by customer growth and increased cross-selling [7][8] Market Data and Key Metrics Changes - The company added over 350,000 mobile primary customers in the fourth quarter, totaling over 1 million for the year [5] - Deposits rose by EUR 38.1 billion for the full year, reflecting a 5.5% increase [6] Company Strategy and Development Direction - The company aims to grow and diversify income by adding more customers and enhancing product offerings, including a subscription model for retail clients [14][15] - There is a focus on improving operational leverage through technology and cost discipline, with an emphasis on utilizing Gen AI [15] - The company plans to maintain a 50% payout policy for shareholder returns while investing in growth and considering M&A opportunities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong growth in 2026 and introduced an upgraded outlook for 2027, expecting total income to exceed EUR 25 billion [16][17] - The anticipated return on equity for 2026 is 14%, with a focus on maintaining cost discipline and operational efficiency [17][18] Other Important Information - The company mobilized EUR 166 billion in sustainability volume for the year, marking a 28% increase from 2024 [7] - A final cash dividend of EUR 0.736 per share is expected to be paid on April 24, 2026, subject to AGM approval [30] Q&A Session Summary Question: What assumptions are used for the EUR 25 billion total income guidance? - Management confirmed a 5% balance growth assumption, indicating that Q4 performance provides confidence in achieving targets [36][39] Question: How does the company view loan versus deposit growth? - Management noted that loan growth was 8% while deposit growth was 6% in 2025, emphasizing the importance of balancing the balance sheet over time [45][46] Question: What is the outlook for costs beyond 2026? - Management indicated that cost growth is expected to be in the range of 2%-3%, with a focus on maintaining operational efficiency [78][80] Question: What is the company's strategy regarding M&A? - Management stated that they are open to acquisitions that align with their growth strategy and can enhance local scale and diversification [55][56] Question: How does the company plan to leverage AI and technology investments? - Management highlighted ongoing benefits from AI initiatives, with a focus on improving operational leverage and customer satisfaction [70][71]

Core Viewpoint - ADNOC has secured Dh7.34bn ($2bn) in green financing from Korea Trade Insurance Corporation (K-SURE) to support lower-carbon projects within its operations [1][4]. Group 1: Financing Details - The financing is structured under ADNOC's sustainable finance framework and aims to fund projects that comply with international sustainable finance market standards [2]. - This green financing follows a previous Dh11bn transaction with the Japan Bank for International Cooperation, bringing ADNOC's total green funding to Dh18.35bn over the past 18 months [3]. - First Abu Dhabi Bank is the green loan coordinator, while Santander is the export credit agency coordinator for this transaction [3]. Group 2: Strategic Goals - ADNOC aims to reduce its operational carbon emissions intensity by 25% by 2030 and is investing Dh84.4bn to decarbonize its operations and expand into new energy sectors such as hydrogen, geothermal, and renewables [4]. - The financing reflects ADNOC's commitment to transforming energy systems while maintaining strong capital discipline and enhancing economic ties with South Korea [4]. Group 3: Project Context - The current green financing is part of a broader structured financing agreement for up to Dh40.4bn for the Hail and Ghasha gas development project, which will monetize future midstream gas production [5].

Core Insights - ING Group has successfully completed two significant risk transfer transactions, marking its first foray into this area for Wholesale Banking, with a total notional exposure of €10.5 billion [1][2] - These transactions are expected to reduce ING's risk-weighted assets by €3.4 billion, positively impacting the CET1 ratio by +14 basis points for Q3 2025 [2] Group 1: Transaction Details - The completed risk transfer transactions provide first-loss protection on diversified portfolios of corporate loans [1] - ING aims to strategically extend the use of risk transfer transactions across Retail and additional Wholesale Banking portfolios in the coming years [2] Group 2: Management Commentary - Andrew Bester, a member of ING's Management Board Banking, expressed pride in the successful execution of these transactions, highlighting the teamwork and partnerships with institutional investors that made it possible [3] - The transactions are seen as a commitment to support client needs and contribute to European economic growth [3]