Highlights

  • NatWest’s FY2025 total income rose 13.2% year-on-year to GBP 16.6 billion.
  • Return on Tangible Equity (RoTE) strengthened to 19.2% in FY2025.
  • Net loans grew by GBP 20.7 billion, while customer deposits increased by GBP 10.4 billion.
  • Final dividend of GBX 23.0 per share proposed; total FY2025 dividend up 51% year-on-year
  • CET1 ratio improved to 14.0%, with GBP 750 million buyback planned in H1 2026.
  • NatWest expects FY2026 total income excluding notable items between GBP 17.2–17.6 billion, with RoTE above 17%.

NatWest Group plc (LSE:NWG) shares declined by 0.13% to GBX 594.20 during the morning session on 13 February 2026, despite the release of its favourable FY2025 financial results. Notably, the stock remains up 35.97% over the past one year, reflecting sustained investor confidence over the longer term.

Favourable Income Growth and Margin Expansion in FY2025

NatWest Group reported a favourable financial performance for the year ended 31 December 2025, with total income rising 13.2% to GBP 16.6 billion compared to FY2024. Total income excluding notable items increased by GBP 1.8 billion year-on-year to GBP 16.4 billion, supported by deposit margin expansion, higher customer balances, increased structural hedge income, lending growth and favourable FX trading revenues.

Net interest margin (NIM) improved by 21 basis points to 2.34% in FY2025, with Q4 2025 NIM at 2.45%, up 8 basis points sequentially. The bank expects structural hedge income to increase by around GBP 1.5 billion in 2026 compared to 2025, and by a further GBP 1 billion in 2027.

Profit before tax climbed to GBP 7.7 billion in FY2025, while attributable profit reached GBP 5,479 million, up from GBP 4,519 million in FY2024. Earnings per share rose 27% year-on-year to GBX 68.0.

The Group delivered a Return on Tangible Equity (RoTE) of 19.2% in FY2025, significantly higher than FY2024 and ahead of its prior guidance, reflecting favourable profitability and disciplined cost management.

Lending and Deposit Growth Across All Businesses

The Group delivered broad-based growth across Retail Banking, Private Banking & Wealth Management, and Corporate & Institutional segments.

Net loans to customers excluding central items increased by GBP 20.7 billion during FY2025, driven by GBP 5.1 billion growth in Retail Banking mortgages and GBP 12.3 billion expansion in Commercial & Institutional balances. Customer deposits excluding central items rose by GBP 10.4 billion to GBP 441.7 billion, reflecting favourable growth in savings and current accounts.

Assets under management and administration (AUMA) increased 19.6% to GBP 58.5 billion, supported by net inflows and positive market movements.

Cost Discipline and Efficiency Gains

Operating expenses in FY2025 were GBP 113 million higher than FY2024. However, cost discipline improved efficiency, with the cost-to-income ratio (excluding litigation and conduct costs) declining to 48.6% from 53.4% in FY2024 — an improvement of 4.8 percentage points.

The Group continued digitisation and AI-led transformation initiatives, including partnerships with OpenAI, AWS and Accenture, while integration costs related to Sainsbury’s Bank balances were absorbed during the year.

Capital Strength and Shareholder Returns

NatWest ended FY2025 with a CET1 (Common Equity Tier 1) ratio of 14.0%, up approximately 40 basis points year-on-year. Risk-weighted assets increased to GBP 193.3 billion, reflecting lending growth, partially offset by GBP 10.9 billion of RWA management actions.

Tangible net asset value per share rose to GBX 384, increasing GBX 55 over the year.

A final dividend of GBX 23.0 per share has been proposed, bringing the total FY2025 dividend to GBX 32.5 — up 51% compared to FY2024. The Group also intends to initiate a GBP 750 million share buyback in the first half of 2026, taking total capital distributions deducted in FY2025 to GBP 4.1 billion.

Management Perspective and Strategic Outlook Remains in Focus

Chief Executive Paul Thwaite highlighted that FY2025 marked another favourable year of execution, with income and RoTE exceeding guidance levels. Management emphasised continued progress against strategic priorities, broad-based customer growth — including around one million new customers added during the year — and a sharpened focus on productivity and relationship deepening.

Looking ahead to FY2026, NatWest expects total income excluding notable items in the range of GBP 17.2–17.6 billion, operating expenses (excluding litigation and conduct) around GBP 8.2 billion, a loan impairment rate below 25 basis points and RoTE greater than 17%. The Group also targets a CET1 ratio of around 13.0% over the medium term.

What This Means for Shareholders?

NatWest’s FY2025 results reflect a combination of revenue expansion, margin improvement, disciplined cost management and solid capital generation. With double-digit income growth, a RoTE of 19.2%, rising dividends and planned buybacks, the Group enters FY2026 from a strengthened balance sheet position while outlining continued growth and efficiency ambitions.

Despite opening lower on 13 February 2026, the stock remains up by ~35% over the past one year, underscoring sustained investor confidence in the Group’s strategic direction and earnings trajectory. The favourable capital position, improving efficiency metrics and forward guidance for 2026 are likely to keep investor focus firmly on execution momentum and the sustainability of returns in the periods ahead.

Frequently Asked Questions (FAQs)

  1. How did NatWest perform in FY2025?

NatWest reported total income of GBP 16.6 billion in FY2025, up 13.2% year-on-year, while attributable profit rose to GBP 5,479 million and RoTE reached 19.2%.

  1. What dividend has NatWest proposed for FY2025?

The Group proposed a final dividend of GBX 23.0 per share, bringing the total FY2025 dividend to GBX 32.5, up 51% compared to FY2024.

  1. What is NatWest’s outlook for FY2026?

For FY2026, the Group expects total income excluding notable items between GBP 17.2–17.6 billion and RoTE greater than 17%, alongside continued capital generation.