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Highlights

  • Q1 2025 attributable profit reached £1.25 billion, with RoTE at 18.5%

  • Total income rose to £3.95 billion, driven by deposit margin and trading gains

  • Net interest margin climbed to 2.27%, outlook reaffirmed with focus on shareholder returns

NatWest Group plc (LSE:NWG) has reported an attributable profit of £1.252 billion in the first quarter of 2025, supported by income growth, margin expansion, and capital strength. The Group achieved a return on tangible equity (RoTE) of 18.5%, with earnings per share at 15.5 pence.

Total income for Q1 2025, excluding notable items, stood at £3.952 billion, up £80 million (2.1%) from the previous quarter. The increase was largely attributed to deposit margin expansion and higher trading income, partially offset by a calendar impact of two fewer days in the quarter. On a year-on-year basis, income was £538 million higher than Q1 2024.

The Group’s net interest margin (NIM) improved to 2.27%, a rise of 8 basis points from Q4 2024.

Outlook for 2025 and Beyond

Looking ahead, NatWest remains cautiously optimistic while acknowledging elevated global economic uncertainty. Based on current market expectations and economic conditions, the Group projects:

  • RoTE at the upper end of its 15–16% target range for 2025

  • Total income (excluding notable items) near the top end of £15.2–£15.7 billion

  • Group operating costs, excluding litigation and conduct, to come in around £8.1 billion, including £0.1 billion in one-time integration costs

  • Loan impairment rate to remain below 20 basis points

  • Risk-weighted assets (RWAs) are forecast to range between £190–£195 billion by year-end, subject to final CRD IV model adjustments

By 2027, NatWest aims to sustain a RoTE above 15%.

Capital and Shareholder Returns

NatWest continues to manage capital prudently, targeting a Common Equity Tier 1 (CET1) ratio of 13–14%. The Group plans to distribute around 50% of attributable profit as ordinary dividends and will consider share buybacks where appropriate.