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Highlights:

  • NWG reports GBP 2.5 billion attributable profit in H1 FY25, EPS up 28% YoY
  • NatWest Group announces 9.5p interim dividend and GBP 750 million share buyback
  • NWG raises FY25 income and RoTE guidance amid balance sheet growth

NatWest Group plc (LSE:NWG), a retail and commercial banking institutions, has released its financial results for the first half of 2025, reporting an attributable profit of GBP 2.5 billion and continued growth in customer numbers and balance sheet metrics. The performance led the bank to revise its income and return guidance for the full year upwards and announce new capital distributions including a 9.5 pence interim dividend and a share buyback of GBP 750 million in H2FY25.

The group’s earnings per share reached 30.9 pence, marking a 28% increase compared to the same period in 2024. Return on Tangible Equity (RoTE) stood at 18.1% for H1, while the cost-to-income ratio, excluding litigation and conduct, improved to 48.8% from 55.5% a year earlier. Customer and balance sheet growth remained key themes for the half-year. NatWest added 1.1 million new customers, including the impact of its acquisition of Sainsbury’s Bank, completed on 1 May 2025. Net lending to customers, excluding central items, increased by GBP 11.6 billion, with GBP 2.2 billion of that arising from the Sainsbury’s transaction. Customer deposits rose by GBP 4.5 billion, of which GBP 2.4 billion was related to the acquired portfolio.

In addition to operational expansion, the bank continued its internal transformation efforts aimed at simplifying processes and improving digital engagement. NatWest reported efficiency gains from digitising customer journeys and deploying artificial intelligence, with noted improvements in customer satisfaction (NPS) across its retail, commercial, and wealth businesses. The bank entered into new collaborations with OpenAI, AWS, and Accenture to accelerate its data infrastructure and personalisation capabilities. The bank’s capital base remained stable, with a Common Equity Tier 1 (CET1) ratio of 13.6% at the end of June 2025. Tangible Net Asset Value (TNAV) per share increased by 22 pence to 351 pence over the period, supported by GBP 2.9 billion of risk-weighted asset (RWA) management actions that created additional capacity for growth.

Looking ahead, NatWest has revised its full-year guidance. It now expects to deliver a RoTE of over 16.5% in FY25 and income (excluding notable items) above GBP 16.0 billion. Operating costs, excluding litigation and conduct, are projected at approximately GBP 8.1 billion, including GBP 0.1 billion of one-time integration costs. The loan impairment rate is expected to remain below 20 basis points, and RWAs are anticipated to fall within the GBP 190-195 billion range by year-end. Beyond 2025, the bank reiterated its target to achieve a RoTE above 15% in 2027 and maintain a CET1 ratio between 13% and 14%. It also reaffirmed its capital distribution strategy, aiming to return approximately 50% of attributable profit to shareholders via ordinary dividends, with additional buybacks subject to board discretion.

The first half of 2025 also marked the group’s return to full private ownership following the UK government's sale of its remaining stake. CEO Paul Thwaite noted that the group remains focused on supporting economic activity and simplifying operations as part of its long-term strategy. NatWest Group serves over 20 million customers across the UK and includes brands such as Royal Bank of Scotland, Ulster Bank, and Coutts. Its operations span personal banking, business banking, and wealth management services.

NWG shares were trading 0.88% higher at GBX 506.00 per share as on 25 July 2025.