NatWest Group plc 2024 Annual Results

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NATWEST GROUP (NWG)

UK 100

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Business performance summary
2	2024 performance summary
2	Group Chief Executive's review
6	Performance key metrics and ratios
8	Chief Financial Officer's review
10	Retail Banking
11	Private Banking
12	Commercial & Institutional
13	Central items & other
14	Segment performance

Risk and capital management
19	Capital, liquidity and funding risk
21	Credit risk
21	Main macroeconomic variables
22	ECL post model adjustments
23	Segment analysis - portfolio summary
25	Analysis of ECL provisions

Financial statements and notes
26		Condensed consolidated income statement
27		Condensed consolidated statement of comprehensive income
28		Condensed consolidated balance sheet
29		Condensed consolidated statement of changes in equity
31		Condensed consolidated cash flow statement

Financial statements and notes continued
32	Presentation of condensed consolidated financial statements
32	Tax
33	Litigation and regulatory matters
34	Related party transactions
34	Dividends
34	Post balance sheet events

Additional information
35	Statement of directors' responsibilities
36	Presentation of information
36	Statutory accounts
36	Contacts
36	Forward-looking statements

Appendix
38	Non-IFRS financial measures
44	Performance measures not defined under IFRS

	Year ended			Quarter ended
	31 December	31 December		31 December	30 September		31 December
	2024	2023	Variance	2024	2024	Variance	2023	Variance
Summary consolidated income statement	£m	£m	%	£m	£m	%	£m	%
Net interest income	11,275	11,049	2.0%	2,968	2,899	2.4%	2,638	12.5%
Non-interest income	3,428	3,703	(7.4%)	857	845	1.4%	899	(4.7%)
Total income	14,703	14,752	(0.3%)	3,825	3,744	2.2%	3,537	8.1%
Litigation and conduct costs	(295)	(355)	(16.9%)	(153)	(41)	nm	(113)	35.4%
Other operating expenses	(7,854)	(7,641)	2.8%	(2,114)	(1,784)	18.5%	(2,041)	3.6%
Operating expenses	(8,149)	(7,996)	1.9%	(2,267)	(1,825)	24.2%	(2,154)	5.2%
Profit before impairment losses	6,554	6,756	(3.0%)	1,558	1,919	(18.8%)	1,383	12.7%
Impairment losses	(359)	(578)	(37.9%)	(66)	(245)	(73.1%)	(126)	(47.6%)
Operating profit before tax	6,195	6,178	0.3%	1,492	1,674	(10.9%)	1,257	18.7%
Tax (charge)/credit	(1,465)	(1,434)	2.2%	(233)	(431)	(45.9%)	5	nm
Profit from continuing operations	4,730	4,744	(0.3%)	1,259	1,243	1.3%	1,262	(0.2%)
Profit/(loss) from discontinued operations, net of tax	81	(112)	(172.3%)	69	1	nm	26	165.4%
Profit for the period	4,811	4,632	3.9%	1,328	1,244	6.8%	1,288	3.1%

Performance key metrics and ratios
Notable items within total income (1)	£55m	£413m	nm	(£47m)	(£28m)	nm	£95m	nm
Total income excluding notable items (1)	£14,648m	£14,339m	2.2%	£3,872m	£3,772m	2.7%	£3,442m	12.5%
Net interest margin (1)	2.13%	2.12%	1bps	2.19%	2.18%	1bps	1.99%	20bps
Average interest earning assets (1)	£529bn	£521bn	1.5%	£539bn	£530bn	1.7%	£525bn	2.7%
Cost:income ratio (excl. litigation and conduct) (1)	53.4%	51.8%	1.6%	55.3%	47.6%	7.7%	57.7%	(2.4%)
Loan impairment rate (1)	9bps	15bps	(6bps)	7bps	25bps	(18bps)	13bps	(6bps)
Profit attributable to ordinary shareholders	£4,519m	£4,394m	2.8%	£1,248m	£1,172m	6.5%	£1,229m	1.5%
Total earnings per share attributable to ordinary shareholders - basic	53.5p	47.9p	5.6p	15.3p	14.1p	1.2p	13.9p	1.4p
Return on tangible equity (RoTE) (1)	17.5%	17.8%	(0.3%)	19.0%	18.3%	0.7%	20.1%	(1.1%)
Climate and sustainable funding and financing (2)	£31.5bn	£29.3bn	7.5%	£8.1bn	£7.1bn	14.1%	£8.7bn	(6.9%)

	As at
	31 December	30 September		31 December
	2024	2024	Variance	2023	Variance
Balance sheet	£bn	£bn	%	£bn	%
Total assets	708.0	711.9	(0.5%)	692.7	2.2%
Loans to customers - amortised cost	400.3	386.7	3.5%	381.4	5.0%
Loans to customers excluding central items (1,3)	368.5	363.7	1.3%	355.6	3.6%
Loans to customers and banks - amortised cost and FVOCI	410.2	397.0	3.3%	392.0	4.6%
Total impairment provisions (4)	3.4	3.6	(5.6%)	3.6	(5.6%)
Expected credit loss (ECL) coverage ratio	0.83%	0.89%	(6bps)	0.93%	(10bps)
Assets under management and administration (AUMA) (1)	48.9	46.5	5.2%	40.8	19.9%
Customer deposits	433.5	431.1	0.6%	431.4	0.5%
Customer deposits excluding central items (1,3)	431.3	427.4	0.9%	419.1	2.9%
Liquidity and funding
Liquidity coverage ratio (LCR)	150%	148%	2%	144%	6%
Liquidity portfolio	222	226	(1.8%)	223	(0.4%)
Net stable funding ratio (NSFR)	137%	137%	-	133%	4%
Loan:deposit ratio (excl. repos and reverse repos) (1)	85%	84%	1%	84%	1%
Total wholesale funding	86	89	(3.4%)	80	7.5%
Short-term wholesale funding	33	31	6.5%	28	17.9%
Capital and leverage
Common Equity Tier 1 (CET1) ratio (5)	13.6%	13.9%	(30bps)	13.4%	20bps
Total capital ratio (5)	19.7%	19.7%	-	18.4%	130bps
Pro forma CET1 ratio (excl. foreseeable items) (6)	14.3%	14.4%	(10bps)	14.2%	10bps
Risk-weighted assets (RWAs)	183.2	181.7	0.8%	183.0	0.1%
UK leverage ratio	5.0%	5.0%	-	5.0%	-
Tangible net asset value (TNAV) per ordinary share (1,7)	329p	316p	13p	292p	37p
Number of ordinary shares in issue (millions) (7)	8,043	8,293	(3.0%)	8,792	(8.5%)

	Year ended		Quarter ended or as at
	31 December	31 December	31 December	30 September	31 December
	2024	2023	2024	2024	2023
	£m	£m	£m	£m	£m
Total income	5,650	5,931	1,501	1,459	1,369
Operating expenses	(2,937)	(2,828)	(808)	(659)	(681)
of which: Other operating expenses	(2,827)	(2,711)	(714)	(656)	(647)
Impairment losses	(282)	(465)	(16)	(144)	(103)
Operating profit	2,431	2,638	677	656	585
Return on equity (1)	19.9%	23.8%	21.4%	21.4%	20.2%
Net interest margin (1)	2.36%	2.47%	2.47%	2.43%	2.23%
Cost:income ratio (excl. litigation
and conduct) (1)	50.0%	45.7%	47.6%	45.0%	47.3%
Loan impairment rate (1)	13bps	22bps	3bps	28bps	20bps

			£bn	£bn	£bn
Net loans to customers
(amortised cost)			208.4	207.4	205.2
Customer deposits			194.8	192.0	188.0
RWAs			65.5	64.8	61.6

NatWest Group plc 2024 Annual Results

1. Total income excluding notable items

2. Cost:income ratio (excl. litigation and conduct)

3. Tangible net asset value (TNAV) per ordinary share

4. Operating expenses excluding litigation and conduct

5. Loan:deposit ratio (excl. repos and reverse repos)

6. NatWest Group return on tangible equity

7. Segmental return on equity

This measure is tracked and reported as the amount of funds that we manage or administer, and directly impacts the level of investment income that we receive.

Loan impairment rate is the annualised loan impairment charge divided by gross customer loans. This measure is used to assess the credit quality of the loan book.

Companies

UK 100

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	Year ended 31 December 2024
	Retail	Private	Commercial &	Central items	Total NatWest
	Banking	Banking	Institutional	& other	Group
	£m	£m	£m	£m	£m
Continuing operations
Income statement
Net interest income	5,233	645	5,339	58	11,275
Own credit adjustments	-	-	(9)	-	(9)
Other non-interest income	417	324	2,627	69	3,437
Total income	5,650	969	7,957	127	14,703
Direct expenses	(777)	(255)	(1,537)	(5,285)	(7,854)
Indirect expenses	(2,050)	(458)	(2,581)	5,089	-
Other operating expenses	(2,827)	(713)	(4,118)	(196)	(7,854)
Litigation and conduct costs	(110)	(3)	(156)	(26)	(295)
Operating expenses	(2,937)	(716)	(4,274)	(222)	(8,149)
Operating profit/(loss) before impairment losses/releases	2,713	253	3,683	(95)	6,554
Impairment (losses)/releases	(282)	11	(98)	10	(359)
Operating profit/(loss)	2,431	264	3,585	(85)	6,195

Income excluding notable items (1)	5,650	969	7,966	63	14,648

Additional information
Return on tangible equity (1)	na	na	na	na	17.5%
Return on equity (1)	19.9%	14.2%	17.2%	nm	na
Cost:income ratio (excl. litigation and conduct) (1)	50.0%	73.6%	51.8%	nm	53.4%
Total assets (£bn)	232.8	28.6	398.7	47.9	708.0
Funded assets (£bn) (1)	232.8	28.6	321.6	46.6	629.6
Net loans to customers - amortised cost (£bn)	208.4	18.2	141.9	31.8	400.3
Loan impairment rate (1)	13bps	(6)bps	7bps	nm	9bps
Impairment provisions (£bn)	(1.8)	(0.1)	(1.5)	-	(3.4)
Impairment provisions - Stage 3 (£bn)	(1.1)	-	(0.9)	-	(2.0)
Customer deposits (£bn)	194.8	42.4	194.1	2.2	433.5
Risk-weighted assets (RWAs) (£bn)	65.5	11.0	104.7	2.0	183.2
RWA equivalent (RWAe) (£bn)	66.5	11.0	105.9	2.5	185.9
Employee numbers (FTEs - thousands)	12.0	2.1	12.8	32.3	59.2
Third party customer asset rate (1)	4.02%	5.05%	6.64%	nm	nm
Third party customer funding rate (1)	(2.05%)	(3.13%)	(1.90%)	nm	nm
Average interest earning assets (£bn) (1)	222.0	26.9	246.8	na	529.3
Net interest margin (1)	2.36%	2.40%	2.16%	na	2.13%

	Year ended 31 December 2023
	Retail	Private	Commercial &	Central items	Total NatWest
	Banking	Banking	Institutional	& other	Group
	£m	£m	£m	£m	£m
Continuing operations
Income statement
Net interest income	5,496	710	5,044	(201)	11,049
Own credit adjustments	-	-	(2)	-	(2)
Other non-interest income	435	280	2,379	611	3,705
Total income	5,931	990	7,421	410	14,752
Direct expenses	(815)	(255)	(1,510)	(5,061)	(7,641)
Indirect expenses	(1,896)	(421)	(2,357)	4,674	-
Other operating expenses	(2,711)	(676)	(3,867)	(387)	(7,641)
Litigation and conduct costs	(117)	(9)	(224)	(5)	(355)
Operating expenses	(2,828)	(685)	(4,091)	(392)	(7,996)
Operating profit before impairment losses	3,103	305	3,330	18	6,756
Impairment losses	(465)	(14)	(94)	(5)	(578)
Operating profit	2,638	291	3,236	13	6,178

Income excluding notable items (1)	5,931	990	7,420	(2)	14,339

Additional information
Return on tangible equity (1)	na	na	na	na	17.8%
Return on equity (1)	23.8%	14.8%	15.4%	nm	na
Cost:income ratio (excl. litigation and conduct) (1)	45.7%	68.3%	52.1%	nm	51.8%
Total assets (£bn)	228.7	26.9	385.0	52.1	692.7
Funded assets (£bn) (1)	228.7	26.9	306.9	51.3	613.8
Net loans to customers - amortised cost (£bn)	205.2	18.5	131.9	25.8	381.4
Loan impairment rate (1)	22bps	8bps	7bps	nm	15bps
Impairment provisions (£bn)	(1.9)	(0.1)	(1.5)	(0.1)	(3.6)
Impairment provisions - Stage 3 (£bn)	(1.1)	-	(0.9)	-	(2.0)
Customer deposits (£bn)	188.0	37.7	193.4	12.3	431.4
Risk-weighted assets (RWAs) (£bn)	61.6	11.2	107.4	2.8	183.0
RWA equivalent (RWAe) (£bn)	61.6	11.2	108.6	3.6	185.0
Employee numbers (FTEs - thousands)	13.3	2.3	12.5	33.1	61.2
Third party customer asset rate (1)	3.23%	4.54%	6.15%	nm	nm
Third party customer funding rate (1)	(1.42%)	(2.17%)	(1.40%)	nm	nm
Average interest earning assets (£bn) (1)	222.2	27.1	244.4	na	520.6
Net interest margin (1)	2.47%	2.62%	2.06%	na	2.12%

	Quarter ended 31 December 2024
	Retail	Private	Commercial &	Central items	Total NatWest
	Banking	Banking	Institutional	& other	Group
	£m	£m	£m	£m	£m
Continuing operations
Income statement
Net interest income	1,408	190	1,404	(34)	2,968
Own credit adjustments	-	-	(4)	-	(4)
Other non-interest income	93	82	686	-	861
Total income	1,501	272	2,086	(34)	3,825
Direct expenses	(191)	(65)	(417)	(1,441)	(2,114)
Indirect expenses	(523)	(127)	(717)	1,367	-
Other operating expenses	(714)	(192)	(1,134)	(74)	(2,114)
Litigation and conduct costs	(94)	(2)	(45)	(12)	(153)
Operating expenses	(808)	(194)	(1,179)	(86)	(2,267)
Operating profit/(loss) before impairment losses	693	78	907	(120)	1,558
Impairment losses	(16)	(3)	(46)	(1)	(66)
Operating profit/(loss)	677	75	861	(121)	1,492

Income excluding notable items (1)	1,501	272	2,090	9	3,872

Additional information
Return on tangible equity (1)	na	na	na	na	19.0%
Return on equity (1)	21.4%	16.3%	16.6%	nm	na
Cost:income ratio (excl. litigation and conduct) (1)	47.6%	70.6%	54.4%	nm	55.3%
Total assets (£bn)	232.8	28.6	398.7	47.9	708.0
Funded assets (£bn) (1)	232.8	28.6	321.6	46.6	629.6
Net loans to customers - amortised cost (£bn)	208.4	18.2	141.9	31.8	400.3
Loan impairment rate (1)	3bps	7bps	13bps	nm	7bps
Impairment provisions (£bn)	(1.8)	(0.1)	(1.5)	-	(3.4)
Impairment provisions - Stage 3 (£bn)	(1.1)	-	(0.9)	-	(2.0)
Customer deposits (£bn)	194.8	42.4	194.1	2.2	433.5
Risk-weighted assets (RWAs) (£bn)	65.5	11.0	104.7	2.0	183.2
RWA equivalent (RWAe) (£bn)	66.5	11.0	105.9	2.5	185.9
Employee numbers (FTEs - thousands)	12.0	2.1	12.8	32.3	59.2
Third party customer asset rate (1)	4.21%	5.22%	6.36%	nm	nm
Third party customer funding rate (1)	(1.97%)	(3.06%)	(1.83%)	nm	nm
Average interest earning assets (£bn) (1)	226.3	27.8	252.2	na	538.8
Net interest margin (1)	2.47%	2.72%	2.21%	na	2.19%

	Quarter ended 30 September 2024
	Retail	Private	Commercial &	Central items	Total NatWest
	Banking	Banking	Institutional	& other	Group
	£m	£m	£m	£m	£m
Continuing operations
Income statement
Net interest income	1,350	170	1,392	(13)	2,899
Own credit adjustments	-	-	2	-	2
Other non-interest income	109	83	677	(26)	843
Total income	1,459	253	2,071	(39)	3,744
Direct expenses	(205)	(64)	(356)	(1,159)	(1,784)
Indirect expenses	(451)	(102)	(555)	1,108	-
Other operating expenses	(656)	(166)	(911)	(51)	(1,784)
Litigation and conduct costs	(3)	-	(34)	(4)	(41)
Operating expenses	(659)	(166)	(945)	(55)	(1,825)
Operating profit/(loss) before impairment losses/releases	800	87	1,126	(94)	1,919
Impairment (losses)/releases	(144)	3	(109)	5	(245)
Operating profit/(loss)	656	90	1,017	(89)	1,674

Income excluding notable items (1)	1,459	253	2,069	(9)	3,772

Additional information
Return on tangible equity (1)	na	na	na	na	18.3%
Return on equity (1)	21.4%	19.7%	19.9%	nm	na
Cost:income ratio (excl. litigation and conduct) (1)	45.0%	65.6%	44.0%	nm	47.6%
Total assets (£bn)	231.1	27.3	398.7	54.8	711.9
Funded assets (£bn) (1)	231.1	27.3	331.1	53.7	643.2
Net loans to customers - amortised cost (£bn)	207.4	18.2	138.1	23.0	386.7
Loan impairment rate (1)	28bps	(7)bps	31bps	nm	25bps
Impairment provisions (£bn)	(1.9)	(0.1)	(1.6)	-	(3.6)
Impairment provisions - Stage 3 (£bn)	(1.1)	-	(1.0)	-	(2.1)
Customer deposits (£bn)	192.0	39.7	195.7	3.7	431.1
Risk-weighted assets (RWAs) (£bn)	64.8	11.0	104.0	1.9	181.7
RWA equivalent (RWAe) (£bn)	65.3	11.0	105.3	2.4	184.0
Employee numbers (FTEs - thousands)	12.2	2.2	12.8	32.5	59.7
Third party customer asset rate (1)	4.09%	5.01%	6.67%	nm	nm
Third party customer funding rate (1)	(2.10%)	(3.16%)	(1.91%)	nm	nm
Average interest earning assets (£bn) (1)	221.4	27.0	246.8	na	529.8
Net interest margin (1)	2.43%	2.50%	2.24%	na	2.18%

	Quarter ended 31 December 2023
	Retail	Private	Commercial &	Central items	Total NatWest
	Banking	Banking	Institutional	& other	Group
	£m	£m	£m	£m	£m
Continuing operations
Income statement
Net interest income	1,254	138	1,269	(23)	2,638
Own credit adjustments	-	-	(5)	-	(5)
Other non-interest income	115	71	568	150	904
Total income	1,369	209	1,832	127	3,537
Direct expenses	(211)	(74)	(392)	(1,364)	(2,041)
Indirect expenses	(436)	(134)	(622)	1,192	-
Other operating expenses	(647)	(208)	(1,014)	(172)	(2,041)
Litigation and conduct costs	(34)	2	(78)	(3)	(113)
Operating expenses	(681)	(206)	(1,092)	(175)	(2,154)
Operating profit/(loss) before impairment losses	688	3	740	(48)	1,383
Impairment losses	(103)	(5)	(15)	(3)	(126)
Operating profit/(loss)	585	(2)	725	(51)	1,257

Income excluding notable items (1)	1,369	209	1,834	30	3,442

Additional information
Return on tangible equity (1)	na	na	na	na	20.1%
Return on equity (1)	20.2%	(1.8%)	13.5%	nm	na
Cost:income ratio (excl. litigation and conduct) (1)	47.3%	99.5%	55.3%	nm	57.7%
Total assets (£bn)	228.7	26.9	385.0	52.1	692.7
Funded assets (£bn) (1)	228.7	26.9	306.9	51.3	613.8
Net loans to customers - amortised cost (£bn)	205.2	18.5	131.9	25.8	381.4
Loan impairment rate (1)	20bps	11bps	4bps	nm	13bps
Impairment provisions (£bn)	(1.9)	(0.1)	(1.5)	(0.1)	(3.6)
Impairment provisions - Stage 3 (£bn)	(1.1)	-	(0.9)	-	(2.0)
Customer deposits (£bn)	188.0	37.7	193.4	12.3	431.4
Risk-weighted assets (RWAs) (£bn)	61.6	11.2	107.4	2.8	183.0
RWA equivalent (RWAe) (£bn)	61.6	11.2	108.6	3.6	185.0
Employee numbers (FTEs - thousands)	13.3	2.3	12.5	33.1	61.2
Third party customer asset rate (1)	3.50%	4.88%	6.65%	nm	nm
Third party customer funding rate (1)	(1.94%)	(3.02%)	(1.87%)	nm	nm
Average interest earning assets (£bn) (1)	223.2	26.5	245.2	na	524.7
Net interest margin (1)	2.23%	2.07%	2.05%	na	1.99%

	2024					2023
				Extreme	Weighted				Extreme	Weighted
	Upside	Base case	Downside	downside	average	Upside	Base case	Downside	downside	average
Five-year summary	%	%	%	%	%	%	%	%	%	%
GDP	2.0	1.3	0.5	(0.2)	1.1	1.8	1.0	0.5	(0.3)	0.9
Unemployment rate	3.6	4.3	5.0	6.7	4.6	3.5	4.6	5.2	6.8	4.8
House price index	5.8	3.5	0.8	(4.3)	2.7	3.9	0.3	(0.4)	(5.7)	0.3
Commercial real estate price	5.4	1.2	(1.0)	(5.7)	1.1	3.1	(0.2)	(2.0)	(6.8)	(0.6)
Consumer price index	2.4	2.2	3.5	1.6	2.4	1.7	2.6	5.2	1.8	2.8
Bank of England base rate	4.4	4.0	3.0	1.6	3.6	3.8	3.7	5.6	2.9	4.0
Stock price index	6.3	5.0	3.4	1.1	4.5	4.8	3.3	1.2	(0.4)	2.8
World GDP	3.8	3.2	2.5	1.6	3.0	3.7	3.2	2.7	1.8	3.0
Probability weight	23.2	45.0	19.1	12.7		21.2	45.0	20.4	13.4

	31 December	30 September	30 June	31 December
	2024	2024	2024	2023
	£m	£m	£m	£m
Total loans	410,225	397,042	394,765	392,040
Personal	226,525	225,582	221,750	223,774
Wholesale	183,700	171,460	173,015	168,266

Value of loans in Stage 2	40,474	37,767	38,066	37,891
Personal	24,636	24,030	23,559	21,509
Wholesale	15,838	13,737	14,507	16,382

ECL provisions in Stage 2	787	815	816	976
Personal	429	480	466	506
Wholesale	358	335	350	470

ECL provision coverage in Stage 2	1.94%	2.16%	2.14%	2.58%
Personal	1.74%	2.00%	1.98%	2.35%
Wholesale	2.26%	2.44%	2.41%	2.87%

	Share		Other		Other reserves				Total	Non
	capital and	Paid-in	statutory	Retained		Cash flow	Foreign		owners'	controlling	Total
	share premium	equity	reserves (7)	earnings	Fair value	hedging (4,5)	exchange	Merger	equity	interests	equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2024	10,844	3,890	2,004	10,645	(49)	(1,899)	841	10,881	37,157	31	37,188
Profit attributable to ordinary shareholders
and other equity owners
- continuing operations				4,721					4,721	9	4,730
- discontinued operations				81					81		81

Other comprehensive income
Realised gains in period on FVOCI equity shares				54	(54)				-		-
Remeasurement of retirement benefit schemes				(166)					(166)		(166)
Changes in fair value of credit in financial liabilities
designated at FVTPL due to own credit risk				(33)					(33)		(33)
Unrealised gains					(40)				(40)		(40)
Amounts recognised in equity						(872)			(872)		(872)
Retranslation of net assets							(194)		(194)		(194)
Gains on hedges of net assets							122		122		122
Amount transferred from equity to earnings					21	1,494	77		1,592		1,592
Tax				48	19	(166)	(20)		(119)		(119)
Total comprehensive income/(loss)				4,705	(54)	456	(15)	-	5,092	9	5,101

Transactions with owners
Ordinary share dividends paid				(1,505)					(1,505)	(12)	(1,517)
Paid-in equity dividends paid				(283)					(283)		(283)
Shares repurchased during the period (1,2,3)	(711)		711	(2,176)					(2,176)		(2,176)
Securities issued in the year		1,390							1,390		1,390
Employee share schemes				17					17		17
Shares vested under employee share schemes			175						175		175
Share-based payments				23					23		23
Own shares acquired			(540)						(540)		(540)
At 31 December 2024	10,133	5,280	2,350	11,426	(103)	(1,443)	826	10,881	39,350	28	39,378

(1)	NatWest Group plc repurchased and cancelled 173.3 million (2023 - 460.3 million, of which 2.3 million were settled in January 2024) shares. The total consideration for these shares excluding fees was £450.9 million (2023 - £1,151.7 million of which 4.9 million were settled in January 2024), as part of the On Market Share Buyback Programmes. The nominal value of the share cancellations has been transferred to the capital redemption reserve.
(2)	In June 2024, there was an agreement to buy 392.4 million (May 2023 - 469.2 million) ordinary shares of the Company from UK Government Investments Ltd (UKGI) at 316.2 pence per share (May 2023 - 268.4 pence per share) for the total consideration of £1.2 billion (2023 - £1.3 billion). NatWest Group cancelled 222.4 million of the purchased ordinary shares, amounting to £706.9 million excluding fees and held the remaining 170.0 million shares as Own Shares Held, amounting to £540.2 million excluding fees. The nominal value of the share cancellation has been transferred to the capital redemption reserve.
(3)	In November 2024, there was an agreement to buy 262.6 million ordinary shares of the Company from UK Government Investments Ltd (UKGI) at 380.8p per share for the total consideration of £1,005.0 million. NatWest Group cancelled all the shares. The nominal value of the share cancellation has been transferred to the capital redemption reserve.
(4)	The change in the cash flow hedging reserve is driven by realised accrued interest transferred to the income statement and an increase in swap rates in the year. The portfolio of hedging instruments is predominantly receive fixed swaps.
(5)	The amount transferred from equity to the income statement is mostly recorded within net interest income mainly within loans to banks and customers - amortised cost, balances at central banks and customer deposits.
(6)	Includes £460 million FX recycled to profit or loss upon a capital repayment by UBIDAC in 2023.
(7)	Other statutory reserves consist of Capital redemption reserves of £3,218 million (2023 - £2,507 million) and Own shares held reserves of £868 million (2023 - £503 million).

	2024	2023	2022
Continuing operations	£m	£m	£m
Current tax
Charge for the year	(1,415)	(1,373)	(1,611)
(Under)/over provision in respect of prior years	(145)	(123)	100
	(1,560)	(1,496)	(1,511)
Deferred tax
(Charge)/credit for the year	(343)	(281)	47
UK tax rate change impact	-	-	(10)
Net increase in the carrying value of deferred tax assets in respect of UK, RoI and Netherlands losses	428	385	267
Over/(under) provision in respect of prior years	10	(42)	(68)
Actual tax charge	(1,465)	(1,434)	(1,275)

	31 December	30 September	31 December
	2024	2024	2023
Capital adequacy ratios (1)	%	%	%
CET1	13.6	13.9	13.4
Tier 1	16.5	16.5	15.5
Total	19.7	19.7	18.4

Capital	£m	£m	£m
Tangible equity	26,482	26,220	25,653

Expected loss less impairment	(27)	(23)	-
Prudential valuation adjustment	(230)	(245)	(279)
Deferred tax assets	(1,084)	(746)	(979)
Own credit adjustments	28	18	(10)
Pension fund assets	(147)	(162)	(143)
Cash flow hedging reserve	1,443	1,365	1,899
Foreseeable ordinary dividends	(1,249)	(808)	(1,013)
Adjustment for trust assets (2)	(365)	(365)	(365)
Foreseeable charges	-	-	(525)
Adjustments under IFRS 9 transitional arrangements	33	42	202
Other adjustments for regulatory purposes	44	-	-
Total regulatory adjustments	(1,554)	(924)	(1,213)

CET1 capital	24,928	25,296	24,440

Additional AT1 capital	5,259	4,670	3,875
Tier 1 capital	30,187	29,966	28,315

Tier 2 capital	5,918	5,824	5,317
Total regulatory capital	36,105	35,790	33,632

Risk-weighted assets
Credit risk	148,078	145,448	147,598
Counterparty credit risk	7,103	7,255	7,830
Market risk	6,219	7,190	7,363
Operational risk	21,821	21,821	20,198
Total RWAs	183,221	181,714	182,989

	31 December	30 September	31 December
	2024	2024	2023
Leverage	£m	£m	£m
Cash and balances at central banks	92,994	105,629	104,262
Trading assets	48,917	54,445	45,551
Derivatives	78,406	68,720	78,904
Financial assets	469,599	455,770	439,449
Other assets	18,069	27,333	24,507
Total assets	707,985	711,897	692,673
Derivatives
- netting and variation margin	(76,101)	(66,427)	(79,299)
- potential future exposures	16,692	16,047	17,212
Securities financing transactions gross up	2,460	1,588	1,868
Other off balance sheet items	59,498	57,154	50,961
Regulatory deductions and other adjustments	(11,014)	(20,707)	(16,043)
Claims on central banks	(89,299)	(102,090)	(100,735)
Exclusion of bounce back loans	(2,422)	(2,746)	(3,794)
UK leverage exposure	607,799	594,716	562,843
UK leverage ratio (%) (1)	5.0	5.0	5.0

	Retail	Private	Commercial &	Central items
	Banking	Banking	Institutional	& other	Total
2024	£m	£m	£m	£m	£m
Loans - amortised cost and FVOCI (1,2)
Stage 1	182,366	17,155	128,988	35,312	363,821
Stage 2	24,242	844	15,339	49	40,474
Stage 3	3,268	322	2,340	-	5,930
Of which: individual	-	233	1,052	-	1,285
Of which: collective	3,268	89	1,288	-	4,645
Total	209,876	18,321	146,667	35,361	410,225
ECL provisions (3)
Stage 1	279	16	289	14	598
Stage 2	428	12	346	1	787
Stage 3	1,063	36	941	-	2,040
Of which: individual	-	36	415	-	451
Of which: collective	1,063	-	526	-	1,589
Total	1,770	64	1,576	15	3,425
ECL provisions coverage (4)
Stage 1 (%)	0.15	0.09	0.22	0.04	0.16
Stage 2 (%)	1.77	1.42	2.26	2.04	1.94
Stage 3 (%)	32.53	11.18	40.21	-	34.40
Total	0.84	0.35	1.07	0.04	0.83
Impairment releases/losses
ECL (release)/charge (5)	282	(11)	98	(10)	359
Stage 1	(208)	(11)	(205)	(14)	(438)
Stage 2	278	(1)	79	4	360
Stage 3	212	1	224	-	437
Of which: individual	-	1	191	-	192
Of which: collective	212	-	33	-	245
Total	282	(11)	98	(10)	359
Amounts written-off	430	1	223	-	654
Of which: individual	-	1	143	-	144
Of which: collective	430	-	80	-	510

	Retail	Private	Commercial &	Central items
	Banking	Banking	Institutional	& other	Total
2023	£m	£m	£m	£m	£m
Loans - amortised cost and FVOCI (1,2)
Stage 1	182,297	17,565	119,047	29,677	348,586
Stage 2	21,208	906	15,771	6	37,891
Stage 3	3,133	258	2,162	10	5,563
Of which: individual	-	186	845	-	1,031
Of which: collective	3,133	72	1,317	10	4,532
Subtotal excluding disposal group loans	206,638	18,729	136,980	29,693	392,040
Disposal group loans				67	67
Total				29,760	392,107
ECL provisions (3)
Stage 1	306	20	356	27	709
Stage 2	502	20	447	7	976
Stage 3	1,097	34	819	10	1,960
Of which: individual	-	34	298	-	332
Of which: collective	1,097	-	521	10	1,628
Subtotal excluding ECL provisions on disposal group loans	1,905	74	1,622	44	3,645
ECL provisions on disposal group loans				36	36
Total				80	3,681
ECL provisions coverage (4)
Stage 1 (%)	0.17	0.11	0.30	0.09	0.20
Stage 2 (%)	2.37	2.21	2.83	nm	2.58
Stage 3 (%)	35.01	13.18	37.88	100.00	35.23
ECL provisions coverage excluding disposal group loans (%)	0.92	0.40	1.18	0.15	0.93
ECL provisions coverage on disposal group loans (%)				53.73	53.73
Total				0.27	0.94
Impairment releases/losses
ECL (release)/charge (5)	465	14	94	5	578
Stage 1	(172)	(9)	(222)	6	(397)
Stage 2	440	15	182	8	645
Stage 3	197	8	134	(9)	330
Of which: individual	-	8	80	1	89
Of which: collective	197	-	54	(10)	241
Continuing operations	465	14	94	5	578
Discontinued operations				(6)	(6)
Total				(1)	572
Amounts written-off	188	2	122	7	319
Of which: individual	-	2	40	-	42

	2024	2023
	£m	£m
Deferred tax asset	1,876	1,894
Deferred tax liability	(99)	(141)
Net deferred tax asset	1,777	1,753

Richard Haythornthwaite	John-Paul Thwaite	Katie Murray
Chair	Group Chief Executive Officer	Group Chief Financial Officer

	Management presentation	Fixed income presentation
Date:	14 February 2025	14 February 2025
Time:	9am UK time	1.30pm UK time
Zoom ID:	920 9302 5198	949 6600 6385

Measure	Description
Net interest margin and average interest earning assets Refer to Segmental performance on pages 14-18 for components of calculation.	Net interest margin is net interest income as a percentage of average interest earning assets (IEA). Average IEA are average IEA of the banking business of NatWest Group and primarily consists of cash and balances at central banks, loans to banks, loans to customers and other financial assets mostly comprising debt securities. Average IEA shows the average asset base generating interest over the period.
Net loans to customers excluding central items Refer to Segmental performance on pages 14-18 for components of calculation.	Net loans to customers excluding central items is calculated as total NatWest Group net loans to customers excluding Central items & other net loans to customers. Central items & other includes Treasury reverse repo activity and Ulster Bank RoI. The exclusion of Central items & other removes the volatility relating to Treasury reverse repo activity and the reduction of loans to customers as part of our withdrawal from the Republic of Ireland. This allows for better period-on-period comparisons and gives the user of the financial statements a better understanding of the movements in net loans to customers.
Operating expenses excluding litigation and conduct Refer to table 4. Operating expenses excluding litigation and conduct on page 41.	The management analysis of operating expenses shows litigation and conduct costs separately. These amounts are included within staff costs and other administrative expenses in the statutory analysis. Other operating expenses excludes litigation and conduct costs, which are more volatile and may distort period-on-period comparisons.
Segmental return on equity Refer to table 7. Segmental return on equity on page 43.	Segmental return on equity comprises segmental operating profit or loss, adjusted for paid-in equity and tax, divided by average notional equity. Average RWAe is defined as average segmental RWAs incorporating the effect of capital deductions. This is multiplied by an allocated equity factor for each segment to calculate the average notional equity. This measure shows the return generated by operating segments on equity deployed.
Tangible net asset value (TNAV) per ordinary share Refer to table 3. Tangible net asset value (TNAV) per ordinary share on page 41.	TNAV per ordinary share is calculated as tangible equity divided by the number of ordinary shares in issue. This is a measure used by external analysts in valuing the bank and allows for comparison with other per ordinary share metrics including the share price. The nearest ratio using IFRS measures is net asset value (NAV) per ordinary share calculated as ordinary shareholders' interests divided by the number of ordinary shares in issue.
Total income excluding notable items Refer to table 1. Total income excluding notable items on page 40.	Total income excluding notable items is calculated as total income less notable items. The exclusion of notable items aims to remove the impact of one-offs and other items which may distort period-on-period comparisons.

	Year ended or as at
	31 December	30 September	31 December
	2024	2024	2023
Ordinary shareholders' interests (£m)	34,070	33,808	33,267
Less intangible assets (£m)	(7,588)	(7,588)	(7,614)
Tangible equity (£m)	26,482	26,220	25,653

Ordinary shares in issue (millions) (1)	8,043	8,293	8,792

NAV per ordinary share (pence)	424p	408p	378p
TNAV per ordinary share (pence)	329p	316p	292p

	Year ended or as at		Quarter ended and as at
	31 December	31 December	31 December	30 September	31 December
	2024	2023	2024	2024	2023
	£m	£m	£m	£m	£m
Profit attributable to ordinary shareholders	4,519	4,394	1,248	1,172	1,229
Annualised profit attributable to ordinary shareholders			4,992	4,688	4,916

Average total equity	38,018	36,201	38,915	37,960	36,134
Adjustment for average other owners' equity and intangible assets	(12,226)	(11,486)	(12,703)	(12,375)	(11,686)
Adjusted total tangible equity	25,792	24,715	26,212	25,585	24,448

Return on equity	11.9%	12.1%	12.8%	12.3%	13.6%
Return on tangible equity	17.5%	17.8%	19.0%	18.3%	20.1%

Measure	Description
AUMAs	AUMAs comprises both assets under management (AUMs) and assets under administration (AUAs) serviced through the Private Banking segment. AUMs comprise assets where the investment management is undertaken by Private Banking on behalf of Private Banking, Retail Banking and Commercial & Institutional customers. AUAs comprise i) third party assets held on an execution-only basis in custody by Private Banking, Retail Banking and Commercial & Institutional for their customers, for which the execution services are supported by Private Banking, and for which Private Banking receives a fee for providing investment management and execution services to Retail Banking and Commercial & Institutional business segments ii) AUA of Cushon, acquired on 1 June 2023, which are supported by Private Banking and held and managed by third parties. This measure is tracked and reported as the amount of funds that we manage or administer, and directly impacts the level of investment income that we receive.
AUMA net flows	AUMA net flows represents assets under management and assets under administration. AUMA net flows is reported and tracked to monitor the business performance of new business inflows and management of existing client withdrawals across Private Banking, Retail Banking and Commercial & Institutional.
Climate and sustainable funding and financing	The climate and sustainable funding and financing metric is used by NatWest Group to measure the level of support it provides customers, through lending products and underwriting activities, to help in their transition towards a net zero, climate resilient and sustainable economy. We have a target to provide £100 billion of climate and sustainable funding and financing between the 1 July 2021 and the end of 2025. As part of this, we aim to provide at least £10 billion in lending for residential properties with EPC ratings A and B between 1 January 2023 and the end of 2025.
Loan impairment rate	Loan impairment rate is the annualised loan impairment charge divided by gross customer loans. This measure is used to assess the credit quality of the loan book.
Third party rates	Third party customer asset rate is calculated as annualised interest receivable on third-party loans to customers as a percentage of third-party loans to customers. This excludes assets of disposal groups, intragroup items, loans to banks and liquid asset portfolios. Third party customer funding rate reflects interest payable or receivable on third-party customer deposits, including interest bearing and non- interest bearing customer deposits. Intragroup items, bank deposits, debt securities in issue and subordinated liabilities are excluded for customer funding rate calculation.
Wholesale funding	Wholesale funding comprises deposits by banks (excluding repos), debt securities in issue and subordinated liabilities. Funding risk is the risk of not maintaining a diversified, stable and cost-effective funding base. The disclosure of wholesale funding highlights the extent of our diversification and how we mitigate funding risk.