Highlights

  • NatWest’s Q3 2025 income reached GBP 4.2 billion, with a profit of GBP 1.6 billion.
  • Net loans increased by GBP 4.4 billion, while AUMA grew 8.1% to GBP 56.0 billion.
  • Operational efficiency improved with a cost-to-income ratio of 47.8% and headcount reductions.

NatWest Group PLC (LSE:NWG) shares have climbed 61.08% over the past year, trading at 632.40 GBX, as investor attention grows on the bank’s performance. Meanwhile, Jefferies’ analyst has set a target price of 720 GBX, signaling potential further upside.

The rating might follows the bank’s Q3 2025 results which shighlight growth across customer businesses, increased income and lending, and expansion in assets under management.

Income and Lending Expand Across All Segments

NatWest recorded total income excluding notable items of GBP 4.2 billion for Q3 2025, driving an attributable profit of GBP 1.6 billion and a Return on Tangible Equity (RoTE) of 22.3%. Net loans to customers rose by GBP 4.4 billion, demonstrating ongoing support for client needs while deploying capital efficiently.

Deposits remained broadly stable, with a minor overall decline of GBP 1.1 billion, keeping the loan-to-deposit ratio at 88%, up 2% from the previous quarter. Assets under management and administration (AUMA) increased 8.1% to GBP 56.0 billion, aided by strong net client inflows.

Simplification Drives Operational Efficiency

The bank continued its program to simplify operations and enhance efficiency. The cost-to-income ratio improved by 5% year-to-date, reaching 47.8% compared with 52.8% in the same period last year. NatWest has focused on building an agile, technology-driven structure, reducing headcount by 600 FTE compared with Q3 2024 and 100 FTE lower than Q2 2025, while increasing roles in software engineering and other strategic areas.

Operating expenses were GBP 43 million lower than Q2 2025 but GBP 171 million higher than Q3 2024, reflecting integration and restructuring costs associated with the Sainsbury’s Bank acquisition and ongoing skill development.

Active Balance Sheet Management Supports Growth

NatWest delivered a GBP 2.2 billion benefit from RWA management, creating capacity for growth. The Common Equity Tier 1 (CET1) ratio reached 14.2%, up approximately 60 basis points from both Q4 2024 and Q2 2025. Tangible net asset value (TNAV) per share increased by 11 pence to 362 pence, supporting continued capital generation.

Net interest margin (NIM) increased 9 basis points to 2.37%, reflecting deposit margin expansion and an additional day in the quarter.

Outlook

NatWest plans to release guidance for 2026 and new targets for 2028 alongside its Full Year 2025 results on 13 February 2026. Based on current expectations, the bank anticipates total income excluding notable items of approximately GBP 16.3 billion for 2025 and a Return on Tangible Equity above 18%, reaffirming its earlier outlook.