Q3 2025 NatWest Group PLC Earnings Call Transcript
Key Points
- NatWest Group PLC (NWG) reported strong income growth of 12.5% year-on-year, reaching £12.1 billion for the first nine months.
- The company achieved a return on tangible equity of 19.5%, with expectations to exceed 18% for the full year.
- Lending grew by 4.4% to £388 billion, with broad-based growth across retail, commercial, and institutional sectors.
- Deposits increased by 0.8% to £435 billion, reflecting effective balance management in a competitive market.
- The company announced a new share buyback program of £750 million, with 50% already completed, indicating strong capital generation and shareholder returns.
- Inflation remains above the Bank of England's 2% target, posing potential economic challenges.
- Operating expenses increased by 2.5% to £5.9 billion, which could impact future profitability if not managed effectively.
- The impairment charge for the third quarter was £153 million, indicating some credit risk concerns.
- Retail banking deposit balances decreased by £0.8 billion, primarily due to lower fixed-term savings balances.
- Mortgage margins are under pressure due to intense competition, potentially affecting future net interest margins.
Good morning and welcome to the NatWest Group Q3 Resorts 2025 management presentation.
Today's presentation will be hosted by CEO Paul Thwaite and CFO Katie Murray. After the presentation, we will take questions.
Good morning and thanks for joining us today. I'll start with a short introduction before I hand over to Katie to take you through the numbers.
We have delivered another strong quarter as we continue to execute on our priorities of discipline growth, bank-wide simplification, together with managing our balance sheet and risk well.
Though inflation is above the Bank of England's 2% target, the economy is growing, unemployment is low, wage growth is above the rate of inflation, and businesses and households have relatively high levels of savings and liquidity.
This is reflected in the levels of customer activity we're seeing across the bank. So let me start with the headlines for the first nine months. Lending has grown 4.4% since
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