Q3 2024 NatWest Group PLC Earnings Call Transcript
Key Points
- NatWest Group PLC (NWG) upgraded its full-year income and returns guidance, reflecting strong financial performance and strategic progress.
- Customer lending grew by GBP8.1 billion, with significant contributions from commercial and institutional sectors, including social housing.
- The company achieved GBP23.5 billion in climate and sustainable funding, nearing its GBP100 billion target by 2025.
- Customer deposits increased by GBP8.3 billion, with growth across all business segments.
- Return on tangible equity improved to 17%, supported by strong earnings and active risk management.
- Operating expenses were 9% lower, but the company anticipates higher costs in Q4 due to severance and property costs.
- An impairment charge of GBP245 million was recorded, reflecting economic uncertainty and a single name charge.
- The CET1 ratio is expected to face RWA inflation of around GBP8 billion by January 2026 due to regulatory changes.
- Non-interest income growth may face seasonality and normalization in Q4, impacting overall income.
- The company expects further base rate cuts, which could affect net interest income and margins.
Good morning and welcome to the NatWest Group Q3 results 2024 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 thank you for joining us today. I'll start with a brief introduction before Katie takes you through the financial performance and then we'll open it up for questions.
You will have seen that we are upgrading our full year income and returns guidance this morning as we continue to make good progress on our three strategic priorities, discipline growth, bank wide simplification, together with active balance sheet and risk management.
This progress together with our ongoing support of customers is reflected in our performance. So let's turn to the financial headlines for the first nine months of the year.
Healthy levels of customer activity continue on both sides of the balance sheet. Customer lending growth of GBP8.1
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