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 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]

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].

Core Viewpoint - NatWest Group is acquiring Evelyn Partners for GBP 2.7 billion in cash to create the UK's leading private bank and wealth manager, combining their assets under management to reach GBP 127 billion [4][8][5] Financial Performance - Evelyn Partners reported 2025 income of GBP 509 million and EBITDA of GBP 179 million, reflecting a 35% margin, along with net new inflows of GBP 1.6 billion [2][7] - The acquisition is expected to boost NatWest's fee income by approximately 20% before synergies, enhancing non-interest income as a larger part of group revenues [8][7] Strategic Intent - The acquisition aims to accelerate NatWest's strategy by increasing its exposure to wealth management, supported by demographic, regulatory, and technology trends [3][5] - Evelyn brings a regional network of 21 offices, 270 financial planners, and 325 specialist investment managers, along with the direct-to-consumer platform Bestinvest [3][8] Synergies and Cost Management - NatWest anticipates about GBP 100 million in cost synergies, primarily through the elimination of duplication in shared services and technology, with implementation costs estimated at GBP 150 million over three years [6][9] - The integration plan includes technology and platform consolidation, streamlining functions, and optimizing marketing spend [10][9] Capital Impact and Returns - The acquisition is projected to reduce NatWest's CET1 ratio by approximately 130 basis points, driven mainly by goodwill and other intangibles [12][13] - Management expects the deal to be accretive to return on tangible equity in the first year, with returns anticipated to exceed those from share buybacks [13][14] Shareholder Actions - Alongside the acquisition announcement, NatWest is launching a GBP 750 million share buyback while maintaining a dividend payout ratio of around 50% [14][6]