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]

NatWest Group (NYSE:NWG) Q4 2025 Earnings call February 13, 2026 04:00 AM ET Speaker9Good morning, and welcome to NatWest Group's full year 2025 results management presentation. Today's presentation will be presented by CEO, Paul Thwaite, and CFO, Katie Murray. After the presentation, we will take questions.Speaker11Good morning, and thank you for joining us today. As usual, I'm here with Katie, who will take you through the full year performance. After that, I'll talk about our strategy and our new 2028 ta ...