NatWest Group plc Interim Results 2025 - Part 2

Companies

NATWEST GROUP (NWG)

UK 100

Latest directors dealings

10 hours ago Rathbones Group
11 hours ago Raspberry PI Holdings (WI)
12 hours ago Alumasc Group
12 hours ago Land Securities Group
12 hours ago Computacenter

All directors dealings today

	Half year ended
	30 June	30 June
	2025	2024
	£m	£m
Interest receivable	12,673	12,290
Interest payable	(6,553)	(6,882)
Net interest income	6,120	5,408
Fees and commissions receivable	1,608	1,567
Fees and commissions payable	(368)	(348)
Trading income	575	350
Other operating income	50	157
Non-interest income	1,865	1,726
Total income	7,985	7,134
Staff costs	(2,129)	(2,147)
Premises and equipment	(587)	(579)
Other administrative expenses	(745)	(823)
Depreciation and amortisation	(557)	(508)
Operating expenses	(4,018)	(4,057)
Profit before impairment losses	3,967	3,077
Impairment losses	(382)	(48)
Operating profit before tax	3,585	3,029
Tax charge	(910)	(801)
Profit from continuing operations	2,675	2,228
Profit from discontinued operations, net of tax	-	11
Profit for the period	2,675	2,239

Attributable to:
Ordinary shareholders	2,488	2,099
Paid-in equity holders	186	129
Non-controlling interests	1	11
	2,675	2,239


Earnings per ordinary share - continuing operations	30.9p	24.1p
Earnings per ordinary share - discontinued operations	-	0.1p
Total earnings per share attributable to ordinary shareholders - basic	30.9p	24.2p
Earnings per ordinary share - fully diluted continuing operations	30.5p	23.9p
Earnings per ordinary share - fully diluted discontinued operations	-	0.1p
Total earnings per share attributable to ordinary shareholders - fully diluted	30.5p	24.0p

	Half year ended
	30 June	30 June
	2025	2024
	£m	£m
Profit for the period	2,675	2,239
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of retirement benefit schemes	9	(60)
Changes in fair value of financial liabilities designated at fair value through profit or loss (FVTPL) due to changes in credit risk	(1)	(26)
Fair value through other comprehensive income (FVOCI) financial assets	49	(33)
Tax	(2)	44
	55	(75)
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
FVOCI financial assets	63	41
Cash flow hedges (1)	658	121
Currency translation	(95)	(42)
Tax	(192)	(57)
	434	63
Other comprehensive income/(losses) after tax	489	(12)
Total comprehensive income for the period	3,164	2,227

Attributable to:
Ordinary shareholders	2,977	2,087
Paid-in equity holders	186	129
Non-controlling interests	1	11
	3,164	2,227

	30 June	31 December
	2025	2024
	£m	£m
Assets
Cash and balances at central banks	90,706	92,994
Trading assets	56,706	48,917
Derivatives	73,010	78,406
Settlement balances	8,214	2,085
Loans to banks - amortised cost	7,378	6,030
Loans to customers - amortised cost	407,135	400,326
Other financial assets	71,792	63,243
Intangible assets	7,513	7,588
Other assets	8,324	8,396
Total assets	730,778	707,985

Liabilities
Bank deposits	38,148	31,452
Customer deposits	436,756	433,490
Settlement balances	9,546	1,729
Trading liabilities	58,845	54,714
Derivatives	65,983	72,082
Other financial liabilities	65,940	61,087
Subordinated liabilities	6,006	6,136
Notes in circulation	3,287	3,316
Other liabilities	4,291	4,601
Total liabilities	688,802	668,607

Equity
Ordinary shareholders' interests	35,929	34,070
Other owners' interests	6,029	5,280
Owners' equity	41,958	39,350
Non-controlling interests	18	28
Total equity	41,976	39,378

Total liabilities and equity	730,778	707,985

	Share		Other		Other reserves				Total	Non
	capital and	Paid-in	statutory	Retained	Fair	Cash flow	Foreign		owners'	controlling	Total
	share premium	equity	reserves (1)	earnings	value	hedging (2,3)	exchange	Merger	equity	interests	equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2025	10,133	5,280	2,350	11,426	(103)	(1,443)	826	10,881	39,350	28	39,378
Profit attributable to ordinary shareholders
and other equity owners
- continuing operations				2,674					2,674	1	2,675
- discontinued operations				-					-	-	-

Other comprehensive income
Realised losses in period on FVOCI equity shares				(2)	2				-		-
Remeasurement of retirement benefit schemes				9					9		9
Changes in fair value of credit in financial liabilities
designated at FVTPL due to own credit risk				(1)					(1)		(1)
Unrealised gains					116				116		116
Amounts recognised in equity						102			102		102
Retranslation of net assets							(55)		(55)		(55)
Losses on hedges of net assets							(40)		(40)		(40)
Amount transferred from equity to earnings (3)					(4)	556	-		552		552
Tax				(2)	(19)	(186)	13		(194)		(194)
Total comprehensive income/(losses)				2,678	95	472	(82)	-	3,163	1	3,164

Transactions with owners
Ordinary share dividends paid				(1,250)					(1,250)	-	(1,250)
Paid in equity dividends				(186)					(186)		(186)
Securities issued (4)		749							749		749
Purchase of non-controlling interest				(10)					(10)	(11)	(21)
Shares repurchased during the period	-		-	-					-		-
Employee share schemes				32					32		32
Shares vested under employee share schemes			121						121		121
Share-based remuneration				(11)					(11)		(11)
At 30 June 2025	10,133	6,029	2,471	12,679	(8)	(971)	744	10,881	41,958	18	41,976

	Share		Other		Other reserves				Total	Non
	capital and	Paid-in	statutory	Retained	Fair	Cash flow	Foreign		owners'	controlling	Total
	share premium	equity	reserves (1)	earnings	value	hedging (2,3)	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				2,217					2,217	11	2,228
- discontinued operations				11					11	-	11

Other comprehensive income
Realised gains in period on FVOCI equity shares				2	(2)				-		-
Remeasurement of retirement benefit schemes				(60)					(60)		(60)
Changes in fair value of credit in financial liabilities
designated at FVTPL due to own credit risk				(26)					(26)		(26)
Unrealised gains					1				1		1
Amounts recognised in equity						(559)			(559)		(559)
Retranslation of net assets							(118)		(118)		(118)
Gains on hedges of net assets							79		79		79
Amount transferred from equity to earnings (3)					7	680	(3)		684		684
Tax				32	-	(34)	(11)		(13)		(13)
Total comprehensive income/(losses)				2,176	6	87	(53)	-	2,216	11	2,227

Transactions with owners
Ordinary share dividends paid				(1,008)					(1,008)	-	(1,008)
Paid in equity dividends				(129)					(129)		(129)
Securities issued (4)		800							800		800
Purchase of non-controlling interest				-					-		-
Shares repurchased during the period (5,6)	(411)		411	(1,118)					(1,118)		(1,118)
Employee share schemes				(8)					(8)		(8)
Shares vested under employee share schemes			128						128		128
Share-based remuneration				23					23		23
Own shares acquired			(540)						(540)		(540)
At 30 June 2024	10,433	4,690	2,003	10,581	(43)	(1,812)	788	10,881	37,521	42	37,563

NatWest Group plc Interim Results 2025 - Part 2

Economic and political risk

Business change and execution risk

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. Total combined assets and liabilities (CAL) - Private Banking & Wealth Management

7. NatWest Group Return on Tangible Equity

8. Segmental return on equity

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

Latest directors dealings

(1)	Other statutory reserves consist of Capital redemption reserves of £3,218 million (2024 - £2,918 million) and Own shares held reserves of £747 million (2024 - £915 million).
(2)	The change in the cash flow hedging reserve is driven by realised accrued interest transferred to the income statement and a decrease in swap rates in the longer tenors in the year, where the portfolio of swaps are net receive fixed from an interest rate risk perspective.
(3)	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, bank deposits and customer deposits.
(4)	The issuance above is after netting of issuance fees of £1.6 million, and the associated tax credit of £0.4 million.
(5)	As part of the Share Buyback Programmes NatWest Group plc repurchased and cancelled 161.9 million shares in 2024. The total consideration of these shares excluding fees was £410.8 million. Included in the retained earnings reserve movement is 2.3 million shares which were repurchased and cancelled in December 2023, settled in January 2024 for a total consideration of £4.9 million. The nominal value of the share cancellations was transferred to the capital redemption reserve. There were no Buyback programmes in 2025.
(6)	In June 2024, there was an agreement to buy 392.4 million ordinary shares of the Company from His Majesty's Treasury (HM Treasury) at 316.2 pence per share for total consideration of £1.2 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 was transferred to the capital redemption reserve. There were no repurchases in 2025.

		Private Banking &
	Retail	Wealth	Commercial &	Central items &
	Banking	Management	Institutional	other	Total
Half year ended 30 June 2025	£m	£m	£m	£m	£m
Continuing operations
Net interest income	2,922	363	2,955	(120)	6,120
Net fees and commissions	213	159	865	3	1,240
Other non-interest income	(1)	17	469	140	625
Total income	3,134	539	4,289	23	7,985
Depreciation and amortisation	-	-	(71)	(486)	(557)
Other operating expenses	(1,423)	(359)	(2,080)	401	(3,461)
Impairment losses	(226)	(1)	(154)	(1)	(382)
Operating profit/(loss)	1,485	179	1,984	(63)	3,585

Half year ended 30 June 2024
Continuing operations
Net interest income	2,475	285	2,543	105	5,408
Net fees and commissions	211	142	866	-	1,219
Other non-interest income	4	17	391	95	507
Total income	2,690	444	3,800	200	7,134
Depreciation and amortisation	(1)	-	(76)	(431)	(508)
Other operating expenses	(1,469)	(356)	(2,074)	350	(3,549)
Impairment (losses)/releases	(122)	11	57	6	(48)
Operating profit	1,098	99	1,707	125	3,029

		Private Banking
	Retail	& Wealth	Commercial	Central items
	Banking	Management	& Institutional	& other	Total
Half year ended 30 June 2025	£m	£m	£m	£m	£m
Continuing operations
Fees and commissions receivable
- Payment services	176	20	355	-	551
- Credit and debit card fees	203	10	133	-	346
- Lending and financing	8	4	370	-	382
- Brokerage	19	5	28	-	52
- Investment management, trustee and fiduciary services	1	126	25	10	162
- Underwriting fees	-	-	88	-	88
- Other	5	2	28	(8)	27
Total	412	167	1,027	2	1,608
Fees and commissions payable	(199)	(8)	(162)	1	(368)
Net fees and commissions	213	159	865	3	1,240

Half year ended 30 June 2024
Continuing operations
Fees and commissions receivable
- Payment services	165	20	335	-	520
- Credit and debit card fees	196	6	130	2	334
- Lending and financing	9	3	372	-	384
- Brokerage	17	4	21	-	42
- Investment management, trustee and fiduciary services	1	113	24	9	147
- Underwriting fees	-	-	93	-	93
- Other	4	6	52	(15)	47
Total	392	152	1,027	(4)	1,567
Fees and commissions payable	(181)	(10)	(161)	4	(348)
Net fees and commissions	211	142	866	-	1,219

				Amortised cost	Other assets
	MFVTPL	DFV	FVOCI	Amortised cost	Other assets	Total
Assets	£m	£m	£m	£m	£m	£m
Cash and balances at central banks				90,706		90,706
Trading assets	56,706					56,706
Derivatives (1)	73,010					73,010
Settlement balances				8,214		8,214
Loans to banks - amortised cost (2)				7,378		7,378
Loans to customers - amortised cost (3)				407,135		407,135
Other financial assets	651	5	43,132	28,004		71,792
Intangible assets					7,513	7,513
Other assets					8,324	8,324
30 June 2025	130,367	5	43,132	541,437	15,837	730,778

Cash and balances at central banks				92,994		92,994
Trading assets	48,917					48,917
Derivatives (1)	78,406					78,406
Settlement balances				2,085		2,085
Loans to banks - amortised cost (2)				6,030		6,030
Loans to customers - amortised cost (3)				400,326		400,326
Other financial assets	798	5	37,843	24,597		63,243
Intangible assets					7,588	7,588
Other assets					8,396	8,396
31 December 2024	128,121	5	37,843	526,032	15,984	707,985

	Held-for-trading		Amortised cost	Other liabilities
	Held-for-trading	DFV	Amortised cost	Other liabilities	Total
Liabilities	£m	£m	£m	£m	£m
Bank deposits (4)			38,148		38,148
Customer deposits			436,756		436,756
Settlement balances			9,546		9,546
Trading liabilities	58,845				58,845
Derivatives (1)	65,983				65,983
Other financial liabilities (5)		3,927	62,013		65,940
Subordinated liabilities		234	5,772		6,006
Notes in circulation			3,287		3,287
Other liabilities (6)			626	3,665	4,291
30 June 2025	124,828	4,161	556,148	3,665	688,802

Bank deposits (4)			31,452		31,452
Customer deposits			433,490		433,490
Settlement balances			1,729		1,729
Trading liabilities	54,714				54,714
Derivatives (1)	72,082				72,082
Other financial liabilities (5)		3,548	57,539		61,087
Subordinated liabilities		234	5,902		6,136
Notes in circulation			3,316		3,316
Other liabilities (6)			684	3,917	4,601
31 December 2024	126,796	3,782	534,112	3,917	668,607

	30 June 2025				31 December 2024
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Assets
Trading assets
Loans	-	34,936	243	35,179	-	34,761	278	35,039
Securities	16,289	5,238	-	21,527	8,772	5,106	-	13,878
Derivatives
Interest rate	-	34,582	446	35,028	-	37,026	473	37,499
Foreign exchange	-	37,749	149	37,898	-	40,687	110	40,797
Other	-	42	42	84	-	63	47	110
Other financial assets
Loans	-	38	527	565	-	288	565	853
Securities	25,936	17,111	176	43,223	23,943	13,641	209	37,793
Total financial assets held at fair value	42,225	129,696	1,583	173,504	32,715	131,572	1,682	165,969
As a % of total fair value assets	24%	75%	1%		20%	79%	1%

Liabilities
Trading liabilities
Deposits	-	46,379	-	46,379	-	43,966	-	43,966
Debt securities in issue	-	251	-	251	-	257	-	257
Short positions	9,749	2,465	1	12,215	8,766	1,724	1	10,491
Derivatives
Interest rate	-	28,114	203	28,317	-	31,253	279	31,532
Foreign exchange	-	37,420	76	37,496	-	40,240	66	40,306
Other	-	107	63	170	-	124	120	244
Other financial liabilities
Debt securities in issue	-	1,942	3	1,945	-	1,733	3	1,736
Other deposits	-	1,930	52	1,982	-	1,787	25	1,812
Subordinated liabilities	-	234	-	234	-	234	-	234
Total financial liabilities held at fair value	9,749	118,842	398	128,989	8,766	121,318	494	130,578
As a % of total fair value liabilities	8%	92%	0%		7%	93%	0%

						Items where
						fair value
	Carrying		Fair value hierarchy level			approximates
	value	Fair value	Level 1	Level 2	Level 3	carrying value
30 June 2025	£bn	£bn	£bn	£bn	£bn	£bn
Financial assets
Cash and balances at central banks	90.7	90.7	-	-	-	90.7
Settlement balances	8.2	8.2	-	-	-	8.2
Loans to banks	7.4	7.3	-	2.8	0.5	4.0
Loans to customers	407.1	402.0	-	30.6	371.4	-
Other financial assets - securities	28.0	28.0	9.7	11.7	6.6	-

31 December 2024
Financial assets
Cash and balances at central banks	93.0	93.0	-	-	-	93.0
Settlement balances	2.1	2.1	-	-	-	2.1
Loans to banks	6.0	5.9	-	1.8	0.5	3.6
Loans to customers	400.3	396.6	-	34.9	361.7	-
Other financial assets - securities	24.6	24.6	4.3	12.4	7.9	-

30 June 2025
Financial liabilities
Bank deposits	38.1	38.0	-	29.7	3.7	4.6
Customer deposits	436.8	436.7	-	24.2	46.4	366.1
Settlement balances	9.5	9.5	-	-	-	9.5
Other financial liabilities
- debt securities in issue	62.0	62.7	-	54.0	8.7	-
Subordinated liabilities	5.8	5.9	-	5.9	-	-
Notes in circulation	3.3	3.3	-	-	-	3.3

31 December 2024
Financial liabilities
Bank deposits	31.5	31.2	-	23.9	3.0	4.3
Customer deposits	433.5	433.3	-	24.3	46.0	363.0
Settlement balances	1.7	1.7	-	-	-	1.7
Other financial liabilities
- debt securities in issue	57.5	57.6	-	48.9	8.7	-
Subordinated liabilities	5.9	6.0	-	6.0	-	-
Notes in circulation	3.3	3.3	-	-	-	3.3

				Financial
	Customer	Litigation and		commitments
	redress	other regulatory	Property	and guarantees	Other (1)	Total
	£m	£m	£m	£m	£m	£m
At 1 January 2025	420	128	90	55	171	864
Expected credit losses impairment charge	-	-	-	9	-	9
Currency translation and other movements	1	(9)	-	-	-	(8)
Charge to income statement	12	38	13	-	116	179
Release to income statement	(12)	-	(11)	-	(13)	(36)
Provisions utilised	(78)	(37)	(10)	-	(58)	(183)
At 30 June 2025	343	120	82	64	216	825

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

	30 June 2025	31 March 2025	31 December 2024

Ordinary share price (pence)	511	451	402
Number of ordinary shares in issue (millions)	8,331	8,331	8,331

	30 June	31 December
	2025	2024
	£m	£m
Funding - FVA	125	123
Credit - CVA	188	190
Bid - Offer	77	76
Product and deal specific	139	157
Total	529	546

	30 June	31 December
	2025	2024
	£m	£m
Loans - amortised cost and FVOCI (1,2)
Stage 1	371,875	363,821
Stage 2	40,193	40,474
Stage 3	5,823	5,930
Of which: individual	1,522	1,285
Of which: collective	4,301	4,645
	417,891	410,225
ECL provisions (3)
Stage 1	648	598
Stage 2	741	787
Stage 3	2,261	2,040
Of which: individual	611	451
Of which: collective	1,650	1,589
	3,650	3,425
ECL provisions coverage (4)
Stage 1 (%)	0.17	0.16
Stage 2 (%)	1.84	1.94
Stage 3 (%)	38.83	34.40
	0.87	0.83

	Half year ended
	30 June	30 June
	2025	2024
	£m	£m
Impairment losses
ECL charge/(release) (5)	382	48
Stage 1	(67)	(364)
Stage 2	165	190
Stage 3	284	222
Of which: individual	194	80
Of which: collective	90	142

Amounts written off	192	369
Of which: individual	61	64
Of which: collective	131	305

	Management presentation	Fixed income call
Date:	25 July 2025	25 July 2025
Time:	9:00am	1:00pm
Zoom ID:	958 3629 4493	920 6772 7672

	Half year ended		Quarter ended
	30 June	30 June	30 June	31 March	30 June
	2025	2024	2025	2025	2024
	£m	£m	£m	£m	£m
Continuing operations
Total income	7,985	7,134	4,005	3,980	3,659
Less notable items:
Commercial & Institutional
Own credit adjustments (OCA)	3	(7)	(3)	6	(2)
Central items & other
Share of associate profits/(losses) for Business Growth Fund	14	11	(1)	15	4
Interest and FX management derivatives not in hedge accounting relationships	6	126	(1)	7	67
	23	130	(5)	28	69
Total income excluding notable items	7,962	7,004	4,010	3,952	3,590

	As at
	30 June	31 March	31 December
	2025	2025	2024
Ordinary shareholders' interests (£m)	35,929	35,562	34,070
Less intangible assets (£m)	(7,513)	(7,537)	(7,588)
Tangible equity (£m)	28,416	28,025	26,482

Ordinary shares in issue (millions) (1)	8,088	8,067	8,043

NAV per ordinary share (pence)	444p	441p	424p
TNAV per ordinary share (pence)	351p	347p	329p

	Half year ended and as at		Quarter ended and as at
	30 June	30 June	30 June	31 March	30 June
	2025	2024	2025	2025	2024
	£m	£m	£m	£m	£m
Profit attributable to ordinary shareholders	2,488	2,099	1,236	1,252	1,181
Annualised profit attributable to ordinary shareholders	4,976	4,198	4,944	5,008	4,724

Average total equity	40,817	37,535	41,474	40,354	37,659
Adjustment for average other owners' equity and intangible assets	(13,336)	(11,909)	(13,529)	(13,228)	(12,080)
Adjusted total tangible equity	27,481	25,626	27,945	27,126	25,579
Return on equity	12.2%	11.2%	11.9%	12.4%	12.5%
Return on Tangible Equity	18.1%	16.4%	17.7%	18.5%	18.5%

	Quarter ended 30 June 2025			Quarter ended 31 March 2025			Quarter ended 30 June 2024
		Private Banking			Private Banking			Private Banking
	Retail	& Wealth	Commercial	Retail	& Wealth	Commercial	Retail	& Wealth	Commercial
	Banking	Management	& Institutional	Banking	Management	& Institutional	Banking	Management	& Institutional
Operating profit (£m)	735	102	964	750	77	1,020	609	66	938
Paid-in equity cost allocation (£m)	(26)	(4)	(66)	(23)	(4)	(63)	(18)	(4)	(43)
Adjustment for tax (£m)	(199)	(27)	(225)	(204)	(20)	(239)	(165)	(17)	(224)
Adjusted attributable profit (£m)	510	71	673	523	53	718	426	45	671
Annualised adjusted attributable profit (£m)	2,042	282	2,694	2,092	212	2,872	1,702	179	2,685
Average RWAe (£bn)	68.9	11.3	108.3	66.9	11.1	106.8	62.7	11.1	109.0
Equity factor	12.8%	11.1%	13.9%	12.8%	11.1%	13.9%	13.4%	11.2%	13.8%
Average notional equity (£bn)	8.8	1.3	15.1	8.6	1.2	14.8	8.4	1.2	15.0
Return on equity (%)	23.2%	22.5%	17.9%	24.5%	17.1%	19.3%	20.3%	14.4%	17.8%

Measure	Description
AUMA	AUMA comprises both assets under management (AUM) and assets under administration (AUA) serviced through the Private Banking & Wealth Management segment. AUM comprise assets where the investment management is undertaken by Private Banking & Wealth Management on behalf of Private Banking & Wealth Management, Retail Banking and Commercial & Institutional customers. AUA comprise i) third party assets held on an execution-only basis in custody by Private Banking & Wealth Management, Retail Banking and Commercial & Institutional for their customers, for which the execution services are supported by Private Banking & Wealth Management ii) AUA of Cushon, acquired on 1 June 2023, which are supported by Private Banking & Wealth Management 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 income	AUMA income includes investment income which reflects an ongoing fee as percentage of assets and transactional income related to investment services comprised of one-off fees for advice services, trading and exchange services, protection and alternative investing services. AUMA is a core driver of non-interest income, especially with respect to ongoing investment income and this measure provides a means of reporting the income earned on AUMA.
AUMA net flows	AUMA net flows represents assets under management (AUM net flows) and assets under administration (AUA net flows). 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 & Wealth Management, Retail Banking and Commercial & Institutional.
Capital generation pre-distributions	Capital generation pre-distributions refers to the change in the CET1 ratio in the period, before distributions to ordinary shareholders. It reflects the capital generated through business activities and all other movements, including attributable profit for the period, impacts from acquisitions and disposals, and risk-weighted asset (RWA) changes, prior to the deduction of ordinary shareholder distributions such as ordinary dividends and share buybacks. It is used to show the capital generated in the period that is available for deployment in the business and distribution to shareholders.
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. During Q1 2025 we exceeded our target to provide £100 billion between 1 July 2021 and the end of 2025. To reflect our progress we have announced a new target to provide £200 billion in climate and transition finance between 1 July 2025 and the end of 2030. As part of this we will continue to monitor progress against our aim to provide £10 billion in lending for EPC A and B residential properties between 1 January 2023 and the end of 2025. The climate and sustainable funding and financing framework which underpinned our previous £100 billion target has been retired and replaced with our climate and transition finance framework, available on natwestgroup.com.
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.