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Name | Symbol | Market | Type |
---|---|---|---|
Royal Bank of Scotland Group PLC | NYSE:RBS | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 3.09 | 0 | 01:00:00 |
|
|
●
|
Q3 2020
operating profit before tax of £355 million and an
attributable profit to ordinary shareholders of £61 million
including a £324 million loss on redemption of own
debt.
|
●
|
In
comparison to Q3 2019, across the retail and commercial businesses
income decreased by 12.1%. Within NatWest Markets (NWM), the
level of primary issuance and market activity eased in Q3 2020,
compared to the first half of the year.
|
●
|
Bank
net interest margin (NIM) of 1.65% was 2 basis points lower than Q2
2020 principally reflecting reduced structural hedge income as a
result of lower swap rates and the contraction of the yield curve.
Mortgage front book new business and switcher completion
margins were approximately 140 basis points, broadly in line with
the overall book margin.
|
●
|
Strategic
costs of £223 million in Q3 2020 include £90 million
redundancy costs, a £34 million charge related to technology
spend and a £21 million property charge.
|
●
|
Other
expenses, excluding operating lease depreciation (OLD), were
£152 million lower than Q3 2019, with a £193 million
cost reduction achieved for the year to date. We remain on track to
achieve our £250 million target for full year
2020.
|
●
|
Net
impairment losses of £254 million in Q3 2020, or 28 basis
points of gross customer loans, resulted in an expected credit loss
(ECL) coverage ratio of 1.72%.
|
Robust balance sheet with strong capital and liquidity
levels
|
|
●
|
CET1
ratio of 18.2% was 100 basis points higher than Q2 2020 mainly
reflecting a £7.6 billion reduction in RWAs, principally in
NatWest Markets. Excluding IFRS 9 transitional relief, the CET1
ratio was 17.2%.
|
●
|
The
liquidity coverage ratio (LCR) remains strong at 157%,
representing £61.8 billion headroom above
100%, which includes
the impact of a £5.0 billion term funding scheme (TFS)
repayment within the quarter.
|
●
|
Across
the retail and commercial businesses net lending increased by
£0.4 billion during Q3 2020, as £2.9 billion drawdowns
against UK Government lending initiatives and £2.4 billion
related to mortgages was partially offset by net revolving credit
facility (RCF) repayments of £3.1 billion and lower lending
across Large Corporate & Institutions and Specialised
business.
|
●
|
Customer
deposits of £418.4 billion increased by £10.1 billion
during Q3 2020, with retail and commercial balances £6.6
billion higher as consumer spending continued to be impacted by
government restrictions and customers retained
liquidity.
|
Outlook(1)
|
We
retain the outlook guidance provided in the 2020 Interim Results
with the exception of the following updates, noting the continued
significant economic uncertainty.
We
believe the full year impairment charge is likely to be at the
lower end of the £3.5-4.5 billion range following
the limited level of defaults across lending portfolios and
associated ECL stage migration within the third
quarter.
|
|
We now
expect NatWest Group RWAs to be below our previously guided range
of £185-195 billion at the end of 2020 following the
relatively low level of procyclical inflation experienced to date,
with previously expected uplifts delayed to 2021, whilst also now
targeting NatWest Markets RWAs of around £30 billion by the
end of 2020.
|
Note:
|
(1) The
guidance, targets, expectations and trends discussed in this
section represent management's current expectations and are subject
to change, including as a result of the factors described in the
NatWest Group plc "Risk Factors" as described on pages 108-109 of
its Interim Results 2020, pages 29-31 of its Q1 2020 IMS and pages
281-295 of its 2019 Annual Report & Accounts. These statements
constitute forward-looking statements. Refer to Forward-looking
statements in this announcement.
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
Performance key metrics and ratios
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
Profit before impairment losses
|
£2,697m
|
£3,222m
|
|
£609m
|
£767m
|
£205m
|
Operating (loss)/profit before tax
|
(£415m)
|
£2,686m
|
|
£355m
|
(£1,289m)
|
(£8m)
|
(Loss)/profit attributable to ordinary shareholders
|
(£644m)
|
£1,723m
|
|
£61m
|
(£993m)
|
(£315m)
|
Bank net interest margin
|
|
|
|
|
|
|
(NatWest Group NIM excluding NWM) (1)
|
1.73%
|
2.02%
|
|
1.65%
|
1.67%
|
1.97%
|
Bank average interest earning assets
|
|
|
|
|
|
|
(NatWest Group
excluding NWM) (1)
|
£449bn
|
£410bn
|
|
£468bn
|
£458bn
|
£416bn
|
Cost:income ratio (1)
|
66.9%
|
67.5%
|
|
74.5%
|
70.9%
|
92.9%
|
Loan impairment rate (1)
|
115bps
|
22bps
|
|
28bps
|
229bps
|
26bps
|
Earnings per share
|
|
|
|
|
|
|
-
basic
|
(5.3p)
|
14.3p
|
|
0.5p
|
(8.2p)
|
(2.6p)
|
- basic fully
diluted
|
(5.3p)
|
14.2p
|
|
0.5p
|
(8.2p)
|
(2.6p)
|
Return on tangible equity (1)
|
(2.7%)
|
6.8%
|
|
0.8%
|
(12.4%)
|
(3.8%)
|
Average tangible equity
|
£32bn
|
£34bn
|
|
£32bn
|
£32bn
|
£33bn
|
Average number of ordinary shares
|
|
|
|
|
|
|
outstanding during
the period (millions)
|
|
|
|
|
|
|
-
basic
|
12,090
|
12,064
|
|
12,110
|
12,085
|
12,075
|
- fully
diluted (2)
|
12,112
|
12,099
|
|
12,133
|
12,107
|
12,106
|
|
30 September
|
30 June
|
31 December
|
Balance sheet key metrics and ratios
|
2020
|
2020
|
2019
|
Total assets
|
£791.6bn
|
£806.9bn
|
£723.0bn
|
Funded assets (1)
|
£627.3bn
|
£623.5bn
|
£573.0bn
|
Loans to customers - amortised cost
|
£353.7bn
|
£352.3bn
|
£326.9bn
|
Impairment provisions
|
£6.1bn
|
£6.1bn
|
£3.7bn
|
Customer deposits
|
£418.4bn
|
£408.3bn
|
£369.2bn
|
|
|
|
|
Liquidity coverage ratio (LCR)
|
157%
|
166%
|
152%
|
Liquidity portfolio
|
£243bn
|
£243bn
|
£199bn
|
Net stable funding ratio (NSFR) (3)
|
147%
|
144%
|
141%
|
Loan:deposit ratio (1)
|
85%
|
86%
|
89%
|
Total wholesale funding
|
£75bn
|
£86bn
|
£75bn
|
Short-term wholesale funding
|
£25bn
|
£22bn
|
£19bn
|
|
|
|
|
Common Equity Tier (CET1) ratio (4)
|
18.2%
|
17.2%
|
16.2%
|
Total capital ratio
|
23.7%
|
22.5%
|
21.2%
|
Pro forma CET1 ratio, pre dividend accrual (5)
|
18.2%
|
17.2%
|
17.0%
|
Risk-weighted assets (RWAs)
|
£173.9bn
|
£181.5bn
|
£179.2bn
|
CRR leverage ratio
|
5.2%
|
5.1%
|
5.1%
|
UK leverage ratio
|
6.2%
|
6.0%
|
5.8%
|
|
|
|
|
Tangible net asset value (TNAV) per ordinary share
|
265p
|
264p
|
268p
|
Tangible net asset value (TNAV) per ordinary share - fully
diluted (1,2)
|
264p
|
263p
|
267p
|
Tangible equity
|
£32,093m
|
£32,006m
|
£32,371m
|
Number of ordinary shares in issue (millions)
|
12,127
|
12,125
|
12,094
|
Number of ordinary shares in issue (millions) - fully
diluted (2,6)
|
12,149
|
12,147
|
12,138
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Net interest income
|
5,778
|
6,010
|
|
1,926
|
1,910
|
2,006
|
Own credit adjustments
|
19
|
(58)
|
|
(34)
|
(102)
|
(12)
|
Other non-interest income
|
2,464
|
4,068
|
|
531
|
868
|
909
|
Non-interest income
|
2,483
|
4,010
|
|
497
|
766
|
897
|
Total income
|
8,261
|
10,020
|
|
2,423
|
2,676
|
2,903
|
Litigation and conduct costs
|
81
|
(810)
|
|
(8)
|
85
|
(750)
|
Strategic costs
|
(687)
|
(844)
|
|
(223)
|
(333)
|
(215)
|
Other expenses
|
(4,958)
|
(5,144)
|
|
(1,583)
|
(1,661)
|
(1,733)
|
Operating expenses
|
(5,564)
|
(6,798)
|
|
(1,814)
|
(1,909)
|
(2,698)
|
Profit before impairment losses
|
2,697
|
3,222
|
|
609
|
767
|
205
|
Impairment losses
|
(3,112)
|
(536)
|
|
(254)
|
(2,056)
|
(213)
|
Operating (loss)/profit before tax
|
(415)
|
2,686
|
|
355
|
(1,289)
|
(8)
|
Tax credit/(charge)
|
1
|
(395)
|
|
(207)
|
396
|
(201)
|
(Loss)/profit for the period
|
(414)
|
2,291
|
|
148
|
(893)
|
(209)
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
(644)
|
1,723
|
|
61
|
(993)
|
(315)
|
Preference shareholders
|
21
|
30
|
|
5
|
8
|
10
|
Paid-in equity holders
|
272
|
277
|
|
80
|
95
|
95
|
Non-controlling interests
|
(63)
|
261
|
|
2
|
(3)
|
1
|
Notable items within total income
|
|
|
|
|
|
|
Alawwal bank merger gain in NatWest Markets
|
-
|
444
|
|
-
|
-
|
-
|
FX recycling (loss)/gain in Central items & other
|
(39)
|
290
|
|
64
|
(39)
|
-
|
Legacy liability release in Central items & other
|
-
|
256
|
|
-
|
-
|
-
|
Loss on redemption of own debt
|
(324)
|
-
|
|
(324)
|
-
|
-
|
Liquidity Asset Bond sale gain/(loss)
|
111
|
(8)
|
|
1
|
17
|
(19)
|
IFRS volatility in Central items & other
|
38
|
(34)
|
|
49
|
55
|
(51)
|
NatWest Markets asset disposals/strategic risk
reduction
|
(75)
|
(35)
|
|
(12)
|
(63)
|
(8)
|
Share of losses under equity accounting for
|
|
|
|
|
|
|
Business Growth Fund
|
(28)
|
-
|
|
(43)
|
(1)
|
-
|
|
Quarter ended
|
|
|
As at
|
||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
2020
|
2020
|
2019
|
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
Total income (1)
|
1,022
|
1,035
|
1,224
|
|
Net loans to customers -
|
|
|
|
Operating expenses (1)
|
(647)
|
(546)
|
(1,601)
|
|
amortised
cost
|
166.7
|
164.5
|
158.9
|
Impairment losses
|
(70)
|
(360)
|
(131)
|
|
Customer deposits (1)
|
164.9
|
161.0
|
150.3
|
Operating profit/(loss)
|
305
|
129
|
(508)
|
|
RWAs
|
36.3
|
36.7
|
37.8
|
Return on equity
|
15.3%
|
5.7%
|
(26.8%)
|
|
|
|
|
|
Net interest margin
|
2.05%
|
2.18%
|
2.44%
|
|
|
|
|
|
Cost:income ratio
|
63.3%
|
52.8%
|
130.8%
|
|
|
|
|
|
Loan impairment rate
|
17bps
|
87bps
|
34bps
|
|
|
|
|
|
Retail
Banking customer activity levels in Q3 2020 improved significantly
compared with Q2 2020 with debit and credit card spend levels 30%
and 43% higher respectively and mortgage applications increased by
91%. In the nine months ended 30 September 2020, Retail Banking
helped approximately 250,000 customers with an initial
mortgage repayment holiday and as at Q3 2020 had 37,000 active
mortgage repayment holidays, representing 3% of the book by volume.
Additionally, Retail Banking had approximately 40,000, or 4%, of
personal loan customers on active repayment holidays as at Q3
2020.
|
|
|
|
●
|
Total
income decreased by £202 million, or 16.5%, in comparison to
Q3 2019 due to lower fee income on overdrafts, lower deposit
returns, mortgage margin dilution and lower international spend
related fee income, partially offset by strong balance growth in
mortgages and customer deposits. Total income decreased by £13
million compared with Q2 2020, reflecting a 13 basis point
reduction in net interest margin largely due to the
deferred impact of the lower yield curve on deposit margins.
Mortgage book margin stabilised in Q3 2020 as front book new
business and switcher completion margins were approximately 140
basis points, broadly in line with the overall book margin. In Q3
2020, application margins were around 160 basis points as spreads
in the market continued to widen.
|
●
|
Excluding
strategic, litigation and conduct costs, operating
expenses decreased by £49 million, or 8.0%, compared with
Q3 2019, predominantly reflecting a reduction in staff costs
associated with a 10.3% reduction in headcount.
|
●
|
Impairment
losses of £70 million in Q3 2020 primarily reflect stage three
default charges driven by personal advances.
|
●
|
Net
loans to customers increased by £2.2 billion compared
with Q2 2020. Gross new mortgage lending was £6.7 billion
in Q3 2020, with market flow share of approximately 11% and strong
retention supporting a stock share of approximately 10.6%.
Unsecured balances remained stable in Q3 2020, compared with a
reduction of £0.8 billion in Q2 2020.
|
●
|
Customer
deposits increased by £3.9 billion in Q3 2020, compared with
an £8.2 billion increase in Q2
2020, predominantly driven by increasing current account
balances, however growth slowed in Q3 2020 as customer spend levels
increased towards pre-Covid-19 levels.
|
|
Quarter ended
|
|
|
As at
|
|||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|
2020
|
2020
|
2019
|
|
|
2020
|
2020
|
2019
|
|
|
€m
|
€m
|
€m
|
|
|
€bn
|
€bn
|
€bn
|
|
Total income
|
145
|
135
|
161
|
|
Net loans to customers -
|
|
|
|
|
Operating expenses
|
(138)
|
(140)
|
(146)
|
|
amortised
cost
|
20.2
|
20.5
|
21.4
|
|
Impairment (losses)/
|
|
|
|
|
Customer deposits
|
21.6
|
22.0
|
21.7
|
|
releases
|
(6)
|
(246)
|
19
|
|
RWAs
|
13.3
|
14.1
|
15.3
|
|
Operating profit/(loss)
|
1
|
(251)
|
34
|
|
|
|
|
|
|
Return on equity
|
0.2%
|
(45.5%)
|
5.8%
|
|
|
|
|
|
|
Net interest margin
|
1.47%
|
1.49%
|
1.54%
|
|
|
|
|
|
|
Cost:income ratio
|
95.2%
|
103.7%
|
90.7%
|
|
|
|
|
|
|
Loan impairment rate
|
11bps
|
460bps
|
(34)bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
(1)
Ratios have been presented on a Euro basis. Comparatives have been
restated.
|
|||||||||
|
|||||||||
Our
strategy to grow our Ulster Bank business in the Republic of
Ireland organically and safely remains unchanged. We continue to
evaluate the impact of Covid-19 and the challenges to the economy
and we are reviewing our strategy appropriately and responsibly in
light of these events.
|
|||||||||
|
|
||||||||
In the
event of any changes being made to our strategy, these would be
undertaken with full consideration of any impact on customers,
colleagues and shareholders in the first instance. Our priority now
is to continue to remain focused on supporting our colleagues in
serving our customers in these difficult times.
|
|||||||||
As at
Q3 2020, Ulster Bank RoI had approved over 17,000 payment breaks
and, of those who have rolled off their initial payment break,
approximately 46% have opted for a second payment break,
representing around 8% of the lending book by value.
|
|||||||||
|
|
||||||||
●
|
Total
income decreased by €16 million, or 9.9%, compared with Q3
2019 primarily due to lower lending income, reduced transaction
volumes and fee income resulting from the impact of Covid-19. Total
income increased by €10 million in comparison to Q2 2020,
reflecting higher fee income from a return to more normalised
transaction levels. Net interest margin decreased by 2 basis points
in comparison to Q2 2020 reflecting the continued impact of
negative rates on increased liquid assets.
|
||||||||
●
|
Impairment
losses were €6 million in Q3 2020, with payment breaks in
part mitigating the full impact of credit losses attributable to
the Covid-19 pandemic.
|
||||||||
●
|
Net
loans to customers decreased by €0.3 billion compared with Q2
2020 as repayments continued to exceed gross new lending, combined
with a further derecognition of the non-performing loan (NPL) sale
agreed in 2019. Gross new lending of €0.4 billion was broadly
in line with Q2 2020.
|
||||||||
●
|
Customer deposits
decreased by €0.4 billion in comparison to Q2 2020 mainly due
to the introduction of negative rates on certain commercial deposit
categories.
|
||||||||
●
|
RWAs
decreased by €0.8 billion in comparison to Q2 2020 reflecting
the €0.2 billion impact of the NPL sale derecognition, lower
volumes and improved credit metrics.
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
As at
|
|||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|
2020
|
2020
|
2019
|
|
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
|
Total income
|
1,004
|
995
|
1,077
|
|
Net loans to customers -
|
|
|
|
|
Operating expenses
|
(553)
|
(611)
|
(638)
|
|
amortised
cost
|
110.0
|
112.0
|
101.2
|
|
Impairment losses
|
(127)
|
(1,355)
|
(108)
|
|
Customer deposits
|
161.3
|
159.6
|
135.0
|
|
Operating profit/(loss)
|
324
|
(971)
|
331
|
|
RWAs
|
76.5
|
78.3
|
72.5
|
|
Return on equity
|
9.2%
|
(32.5%)
|
8.4%
|
|
|
|
|
|
|
Net interest margin
|
1.65%
|
1.70%
|
1.90%
|
|
|
|
|
|
|
Cost:income ratio
|
53.4%
|
59.9%
|
57.9%
|
|
|
|
|
|
|
Loan impairment rate
|
45bps
|
472bps
|
42bps
|
|
|
|
|
|
|
|
|||||||||
Commercial
Banking continues to support customers through a comprehensive
package of initiatives including participation in the UK
Government's financial support schemes. As at Q3 2020, £7.9
billion BBLS, £3.7 billion CBILS and £1.2 billion CLBILS
had been approved. Since 22 March 2020 Commercial Banking provided
payment holidays on over 72,000 customer accounts and as at Q3 2020
had active payment holidays on c.55,000 customer accounts,
representing c.8% of the lending book by value.
|
|||||||||
|
|||||||||
●
|
Total
income decreased by £73 million, or 6.8%, compared with Q3
2019 as the continued contraction of the yield curve and lower
business activity was partially offset by increased lending
volumes. Net interest margin decreased by 5 basis points in
comparison to Q2 2020 as a result of lower deposit funding
benefits.
|
||||||||
●
|
Other
expenses, excluding OLD, were £36 million, or 6.8%, lower than
Q3 2019 mainly due to a reduction in back office operations
costs and a 3.0% reduction in headcount.
|
||||||||
●
|
Impairment
losses of £127 million in Q3 2020 primarily reflect stage one
and two movements related to the expected deterioration in the
economic environment, with total stage three charges of £53
million, including a small number of single name
charges.
|
||||||||
●
|
Net
loans to customers decreased by £2.0 billion compared
with Q2 2020 as £3.1 billion net RCF repayments and lower
lending across Large Corporate & Institutions and Specialised
business lending more than offset drawdowns against UK Government
lending schemes, including £1.7 billion related to BBLS,
£0.8 billion related to CBILS and £0.4 billion related to
CLBILS. RCF utilisation decreased to c.26% of committed facilities,
broadly in line with pre-Covid-19 levels.
|
||||||||
●
|
Customer
deposits increased by £1.7 billion compared with Q2 2020 as
customers continued to retain liquidity.
|
||||||||
●
|
RWAs
decreased by £1.8 billion compared with Q2 2020 as lower
lending volumes and a c.£1.5 billion reduction reflecting the
CRR Covid-19 amendment to accelerate the planned changes to the SME
supporting factor and the introduction of an Infrastructure
supporting factor, partially offset by risk parameter
changes.
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
As at
|
||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
2020
|
2020
|
2019
|
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
Total income
|
187
|
191
|
198
|
|
Net loans to customers -
|
|
|
|
Operating expenses
|
(112)
|
(129)
|
(119)
|
|
amortised
cost
|
16.5
|
16.0
|
15.5
|
Impairment
|
|
|
|
|
Customer deposits
|
30.3
|
29.8
|
28.4
|
(losses)/releases
|
(18)
|
(27)
|
2
|
|
RWAs
|
10.6
|
10.4
|
10.1
|
Operating profit
|
57
|
35
|
81
|
|
Assets Under Management
|
|
|
|
Return on equity
|
11.2%
|
6.6%
|
16.8%
|
|
(AUMs)
|
27.3
|
27.1
|
23.2
|
Net interest margin
|
1.99%
|
2.14%
|
2.35%
|
|
Assets Under Administration
|
|
|
|
Cost:income ratio
|
59.9%
|
67.5%
|
60.1%
|
|
(AUAs) (1)
|
2.8
|
2.7
|
7.2
|
Loan impairment rate
|
43bps
|
67bps
|
(5)bps
|
|
Total Assets Under
|
|
|
|
|
|
|
|
|
Management
and
|
|
|
|
|
|
|
|
|
Administration (AUMA)
|
30.1
|
29.8
|
30.4
|
Notes:
|
|
(1)
Private Banking manages assets under administration portfolios on
behalf of Retail Banking and RBSI and receives a management fee in
respect of providing this service.
(2)
Comparisons with prior periods are impacted by the transfer of the
Private Client Advice business from Retail Banking from 1 January
2020. The net impact on Q3 2019 operating profit would have been to
increase total income by £11 million and operating expenses by
£2 million. The net impact on the Q3 2019 balance sheet would
have been to increase customer deposits by £0.2 billion. AUMs
would have been £4.5 billion higher, with a corresponding
decrease in AUAs. Variances in the commentary below have been
adjusted for the impact of this transfer.
|
|
Private
Banking remains committed to supporting clients through a range of
initiatives, including the provision of mortgage and loan repayment
breaks and via participation in UK Government lending initiatives,
with c.£0.3 billion approved as at Q3 2020.
|
|
●
|
Total
income was £22 million, or 10.5%, lower than Q3 2019 mainly
reflecting lower deposit funding benefits, a reduction in fee
income and one-off benefits related to hedging income gains in Q3
2019, partially offset by balance sheet growth. Net interest margin
decreased by 15 basis points in comparison to Q2 2020 primarily due
to lower deposit funding benefits.
|
●
|
Impairment
losses of £18 million largely reflected stage one and two
charges.
|
●
|
Net
loans to customers increased by £0.5 billion in comparison to
Q2 2020 reflecting mortgage growth and drawdowns against UK
Government lending schemes.
|
●
|
Total
AUMAs overseen by Private Banking increased by £0.3 billion
compared with Q2 2020 reflecting positive investment
performance.
|
|
Quarter ended
|
|
|
As at
|
|||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|
2020
|
2020
|
2019
|
|
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
|
Total income
|
112
|
115
|
150
|
|
Net loans to customers -
|
|
|
|
|
Operating expenses
|
(53)
|
(65)
|
(62)
|
|
amortised
cost
|
12.8
|
12.7
|
14.1
|
|
Impairment losses
|
(34)
|
(31)
|
-
|
|
Customer deposits
|
30.4
|
29.5
|
30.1
|
|
Operating profit
|
25
|
19
|
88
|
|
RWAs
|
7.0
|
6.8
|
6.5
|
|
Return on equity
|
6.4%
|
4.3%
|
26.0%
|
|
|
|
|
|
|
Net interest margin
|
1.07%
|
1.15%
|
1.55%
|
|
|
|
|
|
|
Cost:income ratio
|
47.3%
|
56.5%
|
41.3%
|
|
|
|
|
|
|
Loan impairment rate
|
105bps
|
97bps
|
-
|
|
|
|
|
|
|
|
|
||||||||
As at
Q3 2020, RBS International had 322 active mortgage repayment
breaks, reflecting a mortgage value of £82 million, and is
providing support for 566 business customers with working capital
facilities, reflecting a value of £503 million, while
continuing to suspend a range of fees and charges for its personal
and business customers.
|
|||||||||
|
|||||||||
●
|
Total
income decreased by £38 million, or 25.3%, compared with Q3
2019 primarily due to the impact of the interest rate reductions on
deposit income and lower fee income reflecting the economic
response to Covid-19. Net interest margin decreased by 8 basis
points compared with Q2 2020 due to reduced funding
benefits.
|
||||||||
●
|
Excluding
strategic, litigation and conduct costs, operating
expenses decreased by £7 million, or 12.3%, compared with
Q3 2019 mainly due to lower staff costs as a result of a 5.6%
headcount reduction and lower project spend.
|
||||||||
●
|
Impairment
losses were £34 million higher than Q3 2019 due to revised
economic scenarios, refreshed staging and maturity date
analysis.
|
||||||||
●
|
Customer
deposits were £0.9 billion higher than Q2 2020 due to short
term placements in the Institutional Banking Sector.
|
||||||||
●
|
RWAs
increased by £0.2 billion compared with Q2 2020 due to
customer maturities and higher lending balances in the wholesale
sector.
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
As at
|
||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
2020
|
2020
|
2019
|
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
Total income
|
234
|
273
|
150
|
|
Funded Assets
|
121.3
|
122.9
|
116.2
|
of which:
|
|
|
|
|
RWAs
|
30.0
|
35.1
|
37.9
|
-
Income excluding
|
|
|
|
|
|
|
|
|
asset
disposals/strategic
|
|
|
|
|
|
|
|
|
risk
reduction and own
|
|
|
|
|
|
|
|
|
credit
adjustments
|
280
|
438
|
161
|
|
|
|
|
|
-
Asset disposals/strategic
|
|
|
|
|
|
|
|
|
risk
reduction (2)
|
(12)
|
(63)
|
-
|
|
|
|
|
|
-
Own credit adjustments
|
(34)
|
(102)
|
(11)
|
|
|
|
|
|
Operating expenses
|
(302)
|
(365)
|
(348)
|
|
|
|
|
|
Impairment releases/(losses)
|
2
|
(45)
|
5
|
|
|
|
|
|
Operating (loss)
|
(66)
|
(137)
|
(193)
|
|
|
|
|
|
Return on equity
|
(4.7%)
|
(7.1%)
|
(8.7%)
|
|
|
|
|
|
Cost:income ratio
|
129.1%
|
133.7%
|
232.0%
|
|
|
|
|
|
During
Q3 2020 NatWest Markets made further progress on reshaping the
business for the future, putting purpose at its core. The front
office operating model was reorganised to increase focus on NatWest
Group's customers. A Capital Management Unit has also been
established to safely manage capital reduction and optimisation.
Further refinements to the product suite were also communicated, to
focus resources on developing product capability in the areas that
matter most to NatWest Group's customers. This included exiting
Distressed and Emerging Markets Credit trading and making changes
to simplify the Rates business. In line with the strategy announced
in February, NatWest Markets has continued to reduce RWAs,
particularly within counterparty credit and market risk, and are
now targeting RWAs of around £30 billion by the end of
2020.
|
|
●
|
Income
excluding asset disposals/strategic risk reduction, OCA and notable
items increased by £111 million, or 65.7%, in comparison to Q3
2019. Although market activity and the level of primary issuance
eased in Q3 2020 compared to the first half of the year, income was
significantly higher than Q3 2019 due to elevated hedging costs in
the prior period.
|
●
|
Excluding
strategic, litigation and conduct costs, operating
expenses decreased by £57 million, or 20.2%, in
comparison to Q3 2019 reflecting continued reductions in line with
the strategic announcement in February 2020.
|
●
|
RWAs
were £5.1 billion lower than Q2 2020 as counterparty credit
risk decreased by £2.2 billion and market risk decreased by
£2.2 billion due to capital optimisation actions.
|
|
Quarter ended
|
|
||||
|
30 September
|
30 June
|
30 September
|
|
|
|
|
2020
|
2020
|
2019
|
|
|
|
|
£m
|
£m
|
£m
|
|
|
|
Central items not allocated
|
(285)
|
(146)
|
162
|
|
|
|
●
|
A
£285 million operating loss within central items not allocated
in Q3 2020 principally reflects the day one loss on redemption of
own debt of £324 million related to the repurchase of legacy
instruments which will result in annual net interest savings of
c.£74 million. Q3 2019 principally reflected a £162
million reimbursment under indemnification agreements relating to
residential mortgage-backed securities.
|
|
|
Nine months ended 30 September 2020
|
|||||||
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
Total NatWest
|
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other (1)
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
2,919
|
294
|
2,073
|
371
|
286
|
(55)
|
(110)
|
5,778
|
Non-interest income
|
288
|
85
|
934
|
208
|
85
|
1,086
|
(222)
|
2,464
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
19
|
-
|
19
|
Total income
|
3,207
|
379
|
3,007
|
579
|
371
|
1,050
|
(332)
|
8,261
|
Direct expenses
|
|
|
|
|
|
|
|
|
-
staff costs
|
(399)
|
(150)
|
(497)
|
(137)
|
(92)
|
(434)
|
(914)
|
(2,623)
|
-
other costs
|
(152)
|
(65)
|
(211)
|
(61)
|
(37)
|
(131)
|
(1,678)
|
(2,335)
|
Indirect expenses
|
(1,178)
|
(139)
|
(958)
|
(149)
|
(42)
|
(229)
|
2,695
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
-
direct
|
(46)
|
(9)
|
(5)
|
(4)
|
(8)
|
(187)
|
(428)
|
(687)
|
-
indirect
|
(138)
|
(10)
|
(111)
|
(10)
|
(3)
|
(24)
|
296
|
-
|
Litigation and conduct costs
|
191
|
1
|
8
|
(3)
|
3
|
(4)
|
(115)
|
81
|
Operating expenses
|
(1,722)
|
(372)
|
(1,774)
|
(364)
|
(179)
|
(1,009)
|
(144)
|
(5,564)
|
Operating profit/(loss)before impairment
(losses)/releases
|
1,485
|
7
|
1,233
|
215
|
192
|
41
|
(476)
|
2,697
|
Impairment (losses)/releases
|
(727)
|
(251)
|
(1,917)
|
(74)
|
(80)
|
(38)
|
(25)
|
(3,112)
|
Operating profit/(loss)
|
758
|
(244)
|
(684)
|
141
|
112
|
3
|
(501)
|
(415)
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
12.2%
|
(16.6%)
|
(8.7%)
|
9.2%
|
10.0%
|
(0.8%)
|
nm
|
(2.7%)
|
Cost:income ratio (2)
|
53.7%
|
98.2%
|
57.4%
|
62.9%
|
48.2%
|
96.1%
|
nm
|
66.9%
|
Total assets (£bn)
|
189.5
|
27.4
|
186.9
|
24.9
|
32.7
|
283.2
|
47.0
|
791.6
|
Funded assets (£bn)
|
189.5
|
27.4
|
186.9
|
24.9
|
32.7
|
121.3
|
44.6
|
627.3
|
Net loans to customers - amortised cost (£bn)
|
166.7
|
18.3
|
110.0
|
16.5
|
12.8
|
10.1
|
19.3
|
353.7
|
Loan impairment rate (2)
|
57bps
|
175bps
|
226bps
|
59bps
|
83bps
|
nm
|
nm
|
115bps
|
Impairment provisions (£bn)
|
(1.9)
|
(0.8)
|
(3.0)
|
(0.1)
|
(0.1)
|
(0.2)
|
-
|
(6.1)
|
Impairment provisions - stage 3 (£bn)
|
(0.9)
|
(0.5)
|
(1.1)
|
-
|
-
|
(0.2)
|
-
|
(2.7)
|
Customer deposits (£bn)
|
164.9
|
19.6
|
161.3
|
30.3
|
30.4
|
4.7
|
7.2
|
418.4
|
Risk-weighted assets (RWAs) (£bn)
|
36.3
|
12.1
|
76.5
|
10.6
|
7.0
|
30.0
|
1.4
|
173.9
|
RWA equivalent (RWAe) (£bn)
|
36.3
|
12.1
|
76.6
|
10.6
|
7.1
|
32.0
|
1.4
|
176.1
|
Employee numbers (FTEs - thousands)
|
16.6
|
2.8
|
9.6
|
2.1
|
1.7
|
2.8
|
26.0
|
61.6
|
Average interest earning assets (£bn)
|
179.8
|
26.2
|
160.8
|
23.3
|
31.3
|
38.4
|
nm
|
487.8
|
Net interest margin
|
2.17%
|
1.50%
|
1.72%
|
2.12%
|
1.22%
|
(0.19%)
|
nm
|
1.58%
|
Third party customer asset rate (3)
|
2.92%
|
2.29%
|
2.93%
|
2.59%
|
2.57%
|
nm
|
nm
|
nm
|
Third party customer funding rate (3)
|
(0.23%)
|
(0.12%)
|
(0.20%)
|
(0.18%)
|
(0.03%)
|
nm
|
nm
|
nm
|
|
Nine months ended 30 September 2019
|
|||||||
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
Total NatWest
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other (1)
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
3,118
|
302
|
2,127
|
391
|
361
|
(184)
|
(105)
|
6,010
|
Non-interest income
|
553
|
125
|
1,115
|
191
|
99
|
890
|
60
|
3,033
|
Own credit adjustments
|
-
|
1
|
-
|
-
|
-
|
(58)
|
(1)
|
(58)
|
Strategic disposals
|
-
|
-
|
-
|
-
|
-
|
444
|
591
|
1,035
|
Total income
|
3,671
|
428
|
3,242
|
582
|
460
|
1,092
|
545
|
10,020
|
Direct expenses
|
|
|
|
|
|
|
|
|
-
staff costs
|
(431)
|
(156)
|
(521)
|
(122)
|
(89)
|
(508)
|
(905)
|
(2,732)
|
-
other costs
|
(217)
|
(70)
|
(223)
|
(52)
|
(37)
|
(128)
|
(1,685)
|
(2,412)
|
Indirect expenses
|
(1,113)
|
(134)
|
(915)
|
(145)
|
(40)
|
(246)
|
2,593
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
-
direct
|
(8)
|
(12)
|
(20)
|
-
|
(9)
|
(104)
|
(691)
|
(844)
|
-
indirect
|
(143)
|
(19)
|
(171)
|
(30)
|
(6)
|
(37)
|
406
|
-
|
Litigation and conduct costs
|
(918)
|
(21)
|
(50)
|
(2)
|
-
|
(3)
|
184
|
(810)
|
Operating expenses
|
(2,830)
|
(412)
|
(1,900)
|
(351)
|
(181)
|
(1,026)
|
(98)
|
(6,798)
|
Operating profit/(loss) before impairment
(losses)/releases
|
841
|
16
|
1,342
|
231
|
279
|
66
|
447
|
3,222
|
Impairment (losses)/releases
|
(312)
|
38
|
(310)
|
5
|
3
|
41
|
(1)
|
(536)
|
Operating profit/(loss)
|
529
|
54
|
1,032
|
236
|
282
|
107
|
446
|
2,686
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
7.8%
|
3.4%
|
8.7%
|
16.7%
|
28.5%
|
(2.2%)
|
nm
|
6.8%
|
Cost:income ratio (2)
|
77.1%
|
96.3%
|
57.2%
|
60.3%
|
39.3%
|
94.0%
|
nm
|
67.5%
|
Total assets (£bn)
|
176.7
|
26.1
|
166.6
|
22.6
|
31.2
|
318.3
|
35.0
|
776.5
|
Funded assets (£bn)
|
176.7
|
26.0
|
166.6
|
22.6
|
31.2
|
142.7
|
34.9
|
600.7
|
Net loans to customers - amortised cost (£bn)
|
154.6
|
19.0
|
101.5
|
15.2
|
13.8
|
9.1
|
6.3
|
319.5
|
Loan impairment rate (2)
|
27bps
|
(26)bps
|
40bps
|
(4)bps
|
(3)bps
|
nm
|
nm
|
22bps
|
Impairment provisions (£bn)
|
(1.4)
|
(0.8)
|
(1.3)
|
-
|
-
|
(0.2)
|
(0.1)
|
(3.8)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
(0.8)
|
(1.0)
|
-
|
-
|
(0.2)
|
-
|
(2.8)
|
Customer deposits (£bn)
|
147.9
|
18.8
|
135.7
|
28.2
|
29.1
|
3.3
|
6.7
|
369.7
|
Risk-weighted assets (RWAs) (£bn)
|
37.5
|
13.3
|
77.0
|
10.0
|
6.5
|
43.8
|
1.4
|
189.5
|
RWA equivalent (RWAe) (£bn)
|
38.4
|
13.6
|
78.1
|
10.0
|
6.6
|
48.9
|
1.7
|
197.3
|
Employee numbers (FTEs - thousands)
|
18.5
|
3.0
|
9.9
|
1.9
|
1.8
|
5.1
|
25.5
|
65.7
|
Average interest earning assets (£bn)
|
165.3
|
25.2
|
145.8
|
21.5
|
29.3
|
35.1
|
nm
|
445.1
|
Net interest margin
|
2.52%
|
1.60%
|
1.95%
|
2.44%
|
1.65%
|
(0.70%)
|
nm
|
1.81%
|
Third party customer asset rate (3)
|
3.27%
|
2.29%
|
3.37%
|
2.95%
|
2.93%
|
nm
|
nm
|
nm
|
Third party customer funding rate (3)
|
(0.37%)
|
(0.15%)
|
(0.35%)
|
(0.44%)
|
(0.14%)
|
nm
|
nm
|
nm
|
|
Quarter ended 30 September 2020
|
|||||||
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
Total NatWest
|
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other (1)
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
937
|
100
|
703
|
120
|
85
|
(21)
|
2
|
1,926
|
Non-interest income
|
85
|
30
|
301
|
67
|
27
|
289
|
(268)
|
531
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
(34)
|
-
|
(34)
|
Total income
|
1,022
|
130
|
1,004
|
187
|
112
|
234
|
(266)
|
2,423
|
Direct expenses
|
|
|
|
|
|
|
|
|
-
staff costs
|
(131)
|
(50)
|
(156)
|
(44)
|
(27)
|
(108)
|
(311)
|
(827)
|
-
other costs
|
(49)
|
(23)
|
(71)
|
(14)
|
(10)
|
(37)
|
(552)
|
(756)
|
Indirect expenses
|
(380)
|
(47)
|
(300)
|
(48)
|
(13)
|
(80)
|
868
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
-
direct
|
(45)
|
(5)
|
(3)
|
(4)
|
(5)
|
(67)
|
(94)
|
(223)
|
-
indirect
|
(35)
|
(2)
|
(38)
|
-
|
2
|
(8)
|
81
|
-
|
Litigation and conduct costs
|
(7)
|
-
|
15
|
(2)
|
-
|
(2)
|
(12)
|
(8)
|
Operating expenses
|
(647)
|
(127)
|
(553)
|
(112)
|
(53)
|
(302)
|
(20)
|
(1,814)
|
Operating profit/(loss)before impairment
(losses)/releases
|
375
|
3
|
451
|
75
|
59
|
(68)
|
(286)
|
609
|
Impairment (losses)/releases
|
(70)
|
(8)
|
(127)
|
(18)
|
(34)
|
2
|
1
|
(254)
|
Operating profit/(loss)
|
305
|
(5)
|
324
|
57
|
25
|
(66)
|
(285)
|
355
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
15.3%
|
(1.0%)
|
9.2%
|
11.2%
|
6.4%
|
(4.7%)
|
nm
|
0.8%
|
Cost:income ratio (2)
|
63.3%
|
97.7%
|
53.4%
|
59.9%
|
47.3%
|
129.1%
|
nm
|
74.5%
|
Total assets (£bn)
|
189.5
|
27.4
|
186.9
|
24.9
|
32.7
|
283.2
|
47.0
|
791.6
|
Funded assets (£bn)
|
189.5
|
27.4
|
186.9
|
24.9
|
32.7
|
121.3
|
44.6
|
627.3
|
Net loans to customers - amortised cost (£bn)
|
166.7
|
18.3
|
110.0
|
16.5
|
12.8
|
10.1
|
19.3
|
353.7
|
Loan impairment rate (2)
|
17bps
|
17bps
|
45bps
|
43bps
|
105bps
|
nm
|
nm
|
28bps
|
Impairment provisions (£bn)
|
(1.9)
|
(0.8)
|
(3.0)
|
(0.1)
|
(0.1)
|
(0.2)
|
-
|
(6.1)
|
Impairment provisions - stage 3 (£bn)
|
(0.9)
|
(0.5)
|
(1.1)
|
-
|
-
|
(0.2)
|
-
|
(2.7)
|
Customer deposits (£bn)
|
164.9
|
19.6
|
161.3
|
30.3
|
30.4
|
4.7
|
7.2
|
418.4
|
Risk-weighted assets (RWAs) (£bn)
|
36.3
|
12.1
|
76.5
|
10.6
|
7.0
|
30.0
|
1.4
|
173.9
|
RWA equivalent (RWAe) (£bn)
|
36.3
|
12.1
|
76.6
|
10.6
|
7.1
|
32.0
|
1.4
|
176.1
|
Employee numbers (FTEs - thousands)
|
16.6
|
2.8
|
9.6
|
2.1
|
1.7
|
2.8
|
26.0
|
61.6
|
Average interest earning assets (£bn)
|
182.2
|
27.3
|
169.3
|
24.0
|
31.5
|
39.2
|
nm
|
507.3
|
Net interest margin
|
2.05%
|
1.46%
|
1.65%
|
1.99%
|
1.07%
|
(0.21%)
|
nm
|
1.51%
|
Third party customer asset rate (3)
|
2.82%
|
2.32%
|
2.73%
|
2.43%
|
2.41%
|
nm
|
nm
|
nm
|
Third party customer funding rate (3)
|
(0.13%)
|
(0.11%)
|
(0.03%)
|
(0.02%)
|
0.03%
|
nm
|
nm
|
nm
|
|
Quarter ended 30 June 2020
|
|||||||
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
Total NatWest
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other (1)
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
975
|
97
|
696
|
124
|
90
|
6
|
(78)
|
1,910
|
Non-interest income
|
60
|
23
|
299
|
67
|
25
|
369
|
25
|
868
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
(102)
|
-
|
(102)
|
Total income
|
1,035
|
120
|
995
|
191
|
115
|
273
|
(53)
|
2,676
|
Direct expenses
|
|
|
|
|
|
|
|
|
-
staff costs
|
(133)
|
(52)
|
(167)
|
(46)
|
(33)
|
(159)
|
(287)
|
(877)
|
-
other costs
|
(45)
|
(18)
|
(67)
|
(23)
|
(13)
|
(37)
|
(581)
|
(784)
|
Indirect expenses
|
(399)
|
(46)
|
(337)
|
(54)
|
(15)
|
(75)
|
926
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
-
direct
|
(1)
|
(3)
|
-
|
-
|
(2)
|
(86)
|
(241)
|
(333)
|
-
indirect
|
(69)
|
(4)
|
(34)
|
(5)
|
(2)
|
(8)
|
122
|
-
|
Litigation and conduct costs
|
101
|
1
|
(6)
|
(1)
|
-
|
-
|
(10)
|
85
|
Operating expenses
|
(546)
|
(122)
|
(611)
|
(129)
|
(65)
|
(365)
|
(71)
|
(1,909)
|
Operating profit/(loss) before impairment
(losses)/releases
|
489
|
(2)
|
384
|
62
|
50
|
(92)
|
(124)
|
767
|
Impairment (losses)/releases
|
(360)
|
(216)
|
(1,355)
|
(27)
|
(31)
|
(45)
|
(22)
|
(2,056)
|
Operating profit/(loss)
|
129
|
(218)
|
(971)
|
35
|
19
|
(137)
|
(146)
|
(1,289)
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
5.7%
|
(44.5%)
|
(32.5%)
|
6.6%
|
4.3%
|
(7.1%)
|
nm
|
(12.4%)
|
Cost:income ratio (2)
|
52.8%
|
101.7%
|
59.9%
|
67.5%
|
56.5%
|
133.7%
|
nm
|
70.9%
|
Total assets (£bn)
|
187.1
|
27.6
|
186.0
|
23.9
|
31.5
|
303.8
|
47.0
|
806.9
|
Funded assets (£bn)
|
187.1
|
27.6
|
186.0
|
23.9
|
31.5
|
122.9
|
44.5
|
623.5
|
Net loans to customers - amortised cost (£bn)
|
164.5
|
18.7
|
112.0
|
16.0
|
12.7
|
11.4
|
17.0
|
352.3
|
Loan impairment rate (2)
|
87bps
|
441bps
|
472bps
|
67bps
|
97bps
|
nm
|
nm
|
229bps
|
Impairment provisions (£bn)
|
(1.9)
|
(0.9)
|
(3.0)
|
(0.1)
|
-
|
(0.2)
|
-
|
(6.1)
|
Impairment provisions - stage 3 (£bn)
|
(0.9)
|
(0.6)
|
(1.2)
|
-
|
-
|
(0.1)
|
-
|
(2.8)
|
Customer deposits (£bn)
|
161.0
|
20.0
|
159.6
|
29.8
|
29.5
|
5.5
|
2.9
|
408.3
|
Risk-weighted assets (RWAs) (£bn)
|
36.7
|
12.8
|
78.3
|
10.4
|
6.8
|
35.1
|
1.4
|
181.5
|
RWA equivalent (RWAe) (£bn)
|
36.7
|
12.8
|
78.4
|
10.4
|
6.9
|
37.2
|
1.5
|
183.9
|
Employee numbers (FTEs - thousands)
|
17.1
|
2.8
|
9.6
|
2.0
|
1.8
|
5.0
|
24.4
|
62.7
|
Average interest earning assets (£bn)
|
179.8
|
26.4
|
164.6
|
23.3
|
31.5
|
39.9
|
nm
|
497.4
|
Net interest margin
|
2.18%
|
1.48%
|
1.70%
|
2.14%
|
1.15%
|
0.06%
|
nm
|
1.54%
|
Third party customer asset rate (3)
|
2.88%
|
2.27%
|
2.88%
|
2.53%
|
2.58%
|
nm
|
nm
|
nm
|
Third party customer funding rate (3)
|
(0.20%)
|
(0.12%)
|
(0.25%)
|
(0.14%)
|
(0.01%)
|
nm
|
nm
|
nm
|
|
Quarter ended 30 September 2019
|
|||||||
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
Total NatWest
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other (1)
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
1,034
|
102
|
703
|
130
|
119
|
(62)
|
(20)
|
2,006
|
Non-interest income
|
190
|
43
|
374
|
68
|
31
|
223
|
(20)
|
909
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
(11)
|
(1)
|
(12)
|
Total income
|
1,224
|
145
|
1,077
|
198
|
150
|
150
|
(41)
|
2,903
|
Direct expenses
|
|
|
|
|
|
|
|
|
-
staff costs
|
(143)
|
(52)
|
(172)
|
(40)
|
(30)
|
(159)
|
(295)
|
(891)
|
-
other costs
|
(81)
|
(22)
|
(72)
|
(17)
|
(14)
|
(42)
|
(594)
|
(842)
|
Indirect expenses
|
(385)
|
(44)
|
(317)
|
(49)
|
(13)
|
(81)
|
889
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
-
direct
|
(12)
|
(3)
|
10
|
-
|
(4)
|
(55)
|
(151)
|
(215)
|
-
indirect
|
(68)
|
(9)
|
(83)
|
(13)
|
(1)
|
(7)
|
181
|
-
|
Litigation and conduct costs
|
(912)
|
(1)
|
(4)
|
-
|
-
|
(4)
|
171
|
(750)
|
Operating expenses
|
(1,601)
|
(131)
|
(638)
|
(119)
|
(62)
|
(348)
|
201
|
(2,698)
|
Operating profit/(loss) before impairment
(losses)/releases
|
(377)
|
14
|
439
|
79
|
88
|
(198)
|
160
|
205
|
Impairment (losses)/releases
|
(131)
|
17
|
(108)
|
2
|
-
|
5
|
2
|
(213)
|
Operating profit/(loss)
|
(508)
|
31
|
331
|
81
|
88
|
(193)
|
162
|
(8)
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
(26.8%)
|
5.8%
|
8.4%
|
16.8%
|
26.0%
|
(8.7%)
|
nm
|
(3.8%)
|
Cost:income ratio (2)
|
130.8%
|
90.3%
|
57.9%
|
60.1%
|
41.3%
|
232.0%
|
nm
|
92.9%
|
Total assets (£bn)
|
176.7
|
26.1
|
166.6
|
22.6
|
31.2
|
318.3
|
35.0
|
776.5
|
Funded assets (£bn)
|
176.7
|
26.0
|
166.6
|
22.6
|
31.2
|
142.7
|
34.9
|
600.7
|
Net loans to customers - amortised cost (£bn)
|
154.6
|
19.0
|
101.5
|
15.2
|
13.8
|
9.1
|
6.3
|
319.5
|
Loan impairment rate (2)
|
34bps
|
(34)bps
|
42bps
|
(5)bps
|
-
|
nm
|
nm
|
26bps
|
Impairment provisions (£bn)
|
(1.4)
|
(0.8)
|
(1.3)
|
-
|
-
|
(0.2)
|
(0.1)
|
(3.8)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
(0.8)
|
(1.0)
|
-
|
-
|
(0.2)
|
-
|
(2.8)
|
Customer deposits (£bn)
|
147.9
|
18.8
|
135.7
|
28.2
|
29.1
|
3.3
|
6.7
|
369.7
|
Risk-weighted assets (RWAs) (£bn)
|
37.5
|
13.3
|
77.0
|
10.0
|
6.5
|
43.8
|
1.4
|
189.5
|
RWA equivalent (RWAes) (£bn)
|
38.4
|
13.6
|
78.1
|
10.0
|
6.6
|
48.9
|
1.7
|
197.3
|
Employee numbers (FTEs - thousands)
|
18.5
|
3.0
|
9.9
|
1.9
|
1.8
|
5.1
|
25.5
|
65.7
|
Average interest earning assets (£bn)
|
168.1
|
26.2
|
146.7
|
22.0
|
30.4
|
38.6
|
nm
|
454.4
|
Net interest margin
|
2.44%
|
1.55%
|
1.90%
|
2.35%
|
1.55%
|
(0.64%)
|
nm
|
1.75%
|
Third party customer asset rate (3)
|
3.23%
|
2.26%
|
3.31%
|
2.92%
|
2.91%
|
nm
|
nm
|
nm
|
Third party customer funding rate (3)
|
(0.37%)
|
(0.14%)
|
(0.36%)
|
(0.44%)
|
(0.14%)
|
nm
|
nm
|
nm
|
|
Page
|
Capital, liquidity and funding risk
|
15
|
Credit risk
|
|
Segmental exposure
|
21
|
Sector analysis
|
25
|
Wholesale support schemes
|
27
|
●
|
The
CET1 ratio increased by 200 basis points to 18.2%. There was a
release of £1.3 billion following the cancellation of the
proposed 2019 dividend payments and associated pension contribution
in Q1 2020, as announced by the Board in response to Covid-19. The
attributable loss in the period was £644 million however the
IFRS 9 transitional arrangements on expected credit losses provided
relief of £1,719 million.
|
●
|
Total
RWAs decreased by £5.3 billion during the period, mainly
reflecting reductions in Market Risk RWAs of £3.6 billion and
Counterparty Credit Risk RWAs of £2.4 billion. Operational
Risk RWAs reduced by £0.7 billion following the annual
recalculation in Q1 2020. The reduction in Market Risk RWAs
was due to movements in Risks-not-in-VaR (RNIV) and Incremental
Risk Charge (IRC) as well as a reduction in non-modelled market
risk. There were offsetting increases in Credit Risk RWAs of
£1.4 billion.
|
●
|
The CRR
leverage ratio increased to 5.2% due to a £2.5 billion
increase in Tier 1 capital which is partially offset by a
£44.4 billion increase in the leverage exposure driven by
balance sheet exposures.
|
●
|
IFRS 9 Transition - NatWest Group has elected to take
advantage of the transitional regulatory capital rules in respect
of expected credit losses following the adoption of IFRS 9; it had
previously had a negligible impact up to Q4 2019. The CRR Covid-19
amendment now requires a full CET1 addback for the movement in
stage 1 and stage 2 ECL from 1 January 2020 for the next two years.
The IFRS 9 transitional arrangement impact on NatWest Group CET1
regulatory capital at 30 September 2020 is £1,719
million. Excluding this adjustment, the CET1 ratio would be
17.2%.
|
●
|
UK Leverage exposure - The Prudential Regulation
Authority (PRA) announced the ability for firms to apply for a
modification by consent to permit the netting of regular-way
purchase and sales settlement balances. The PRA also offered a
further modification that gave an exclusion from the UK Leverage
Exposure for BBLS and other 100% guaranteed government Covid-19
lending schemes. NatWest Group has received permission to apply
these and it has reduced the UK leverage exposure by c.£9.8
billion and £7.5 billion respectively.
|
●
|
CRR Leverage exposure - The CRR Covid-19 amendment
accelerated a change in CRR2 to allow the netting of regular-way
purchase and sales settlement balances. NatWest Group has applied
this, and it has reduced the CRR leverage exposure by c.£9.8
billion.
|
●
|
Infrastructure and SME RWA supporting factors - The CRR
Covid-19 amendment allowed an acceleration of the planned changes
to the SME supporting factor and the introduction of an
Infrastructure supporting factor. NatWest Group has implemented
these beneficial changes to supporting factors which have reduced
RWAs by c.£1.0 billion for SMEs and £0.8 billion for
Infrastructure.
|
●
|
Prudential Valuation Adjustment (PVA) - The European
Commission amended the prudent valuation Regulatory Technical
Standard such that, due to the exceptional levels of market
volatility, the aggregation factor was increased from 50% to 66%
until 31 December 2020 inclusive. This has reduced NatWest Group's
PVA deduction by c.£100 million.
|
●
|
Market Risk Value-at-risk (VaR) model capital multiplier
- Earlier in the year, the PRA and De Nederlandsche
Bank (DNB) announced temporary approaches in relation to the
exceptional levels of market volatility which resulted in an
increase in VaR model back-testing exceptions in NatWest Markets
Plc and NatWest Markets N.V.. Under the PRA temporary approach,
capital multiplier increases due to new back-testing exceptions
which have resulted in an increase in capital requirements could be
offset through a commensurate reduction in RNIV capital
requirements. The PRA announced that this temporary approach will
cease to apply from 1 October 2020, and be replaced by the measures
announced in the CRR Covid-19 amendment where back-testing
exceptions due to the exceptional levels of market volatility due
to Covid-19 can be excluded from the capital multiplier. The
application of this CRR Covid-19 measure is subject to approval by
the PRA, which NatWest Markets Plc has applied for. The PRA
approach resulted in c.£1.3 billion benefit.
|
●
|
Capital buffers - Many countries have announced
reductions in their countercyclical capital buffer rates in
response to Covid-19. Most notably for NatWest Group, the Financial
Policy Committee reduced the UK rate from 1% to 0% effective from
11 March 2020. The CBI also announced a reduction of the Republic
of Ireland rate from 1% to 0% effective from 1 April
2020.
|
Type
|
CET1
|
Total Tier 1
|
Total capital
|
||||
Pillar
1 requirements
|
4.5%
|
6.0%
|
8.0%
|
||||
Pillar
2A requirements
|
1.9%
|
2.6%
|
3.4%
|
||||
Minimum
Capital Requirements
|
6.4%
|
8.6%
|
11.4%
|
||||
Capital
conservation buffer
|
2.5%
|
2.5%
|
2.5%
|
||||
Countercyclical
capital buffer (1)
|
0.0%
|
0.0%
|
0.0%
|
||||
G-SIB
buffer (2)
|
-
|
|
-
|
-
|
|||
MDA
Threshold (3)
|
8.9%
|
|
na
|
|
na
|
||
Subtotal
|
8.9%
|
11.1%
|
13.9%
|
||||
Capital
ratios at 30 September 2020
|
18.2%
|
20.5%
|
23.7%
|
||||
Headroom (4)
|
9.3%
|
9.4%
|
9.8%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Many
countries have announced reductions in their countercyclical
capital buffer rates in response to Covid-19. Most notably for
NatWest Group, the Financial Policy Committee reduced the UK rate
from 1% to 0% effective from 11 March 2020. The CBI also announced
a reduction of the Republic of Ireland rate from 1% to 0% effective
from 1 April 2020.
|
(2)
(3)
(4)
|
In
November 2018 the Financial Stability Board announced that NatWest
Group is no longer a G-SIB. From 1 January 2020, NatWest Group was
released from this global buffer requirement.
The
prevailing combined buffer requirements for NatWest Group equate to
the aggregate of the capital conservation buffer and
countercyclical buffer. The PRA informed a revised Pillar 2A
requirement on a nominal capital basis effective from 5 October
2020 which results in an implied 9.1% MDA.
The
headroom does not reflect excess distributable capital and may vary
over time.
|
|
CRR basis (1)
|
||
|
30 September
|
30 June
|
31 December
|
Capital adequacy ratios
|
2020
|
2020
|
2019
|
CET1 (%)
|
18.2
|
17.2
|
16.2
|
Tier 1 (%)
|
20.5
|
19.4
|
18.5
|
Total (%)
|
23.7
|
22.5
|
21.2
|
|
|
|
|
Capital
|
£m
|
£m
|
£m
|
Tangible equity
|
32,093
|
32,006
|
32,371
|
|
|
|
|
Expected loss less impairment provisions
|
-
|
-
|
(167)
|
Prudential valuation adjustment
|
(341)
|
(370)
|
(431)
|
Deferred tax assets
|
(835)
|
(844)
|
(757)
|
Own credit adjustments
|
(154)
|
(244)
|
(118)
|
Pension fund assets
|
(590)
|
(588)
|
(474)
|
Cash flow hedging reserve
|
(300)
|
(341)
|
(35)
|
Foreseeable ordinary and special dividends
|
-
|
-
|
(968)
|
Foreseeable charges
|
-
|
-
|
(365)
|
Adjustments under IFRS 9 transitional arrangements
|
1,719
|
1,578
|
-
|
Other deductions
|
-
|
-
|
(2)
|
Total deductions
|
(501)
|
(809)
|
(3,317)
|
|
|
|
|
CET1 capital
|
31,592
|
31,197
|
29,054
|
AT1 capital
|
3,990
|
3,990
|
4,051
|
Tier 1 capital
|
35,582
|
35,187
|
33,105
|
Tier 2 capital
|
5,710
|
5,596
|
4,900
|
|
|
|
|
Total regulatory capital
|
41,292
|
40,783
|
38,005
|
|
|
|
|
Risk-weighted assets
|
|
|
|
Credit risk
|
132,387
|
135,657
|
131,012
|
Counterparty credit risk
|
10,170
|
12,354
|
12,631
|
Market risk
|
9,399
|
11,517
|
12,930
|
Operational risk
|
21,930
|
21,930
|
22,599
|
Total RWAs
|
173,886
|
181,458
|
179,172
|
|
|
|
|
Leverage
|
|
|
|
Cash and balances at central banks
|
106,388
|
100,281
|
77,858
|
Trading assets
|
70,820
|
72,402
|
76,745
|
Derivatives
|
164,311
|
183,419
|
150,029
|
Financial assets
|
424,291
|
428,040
|
399,088
|
Other assets
|
25,751
|
22,745
|
19,319
|
Total assets
|
791,561
|
806,887
|
723,039
|
|
|
|
|
Derivatives
|
|
|
|
- netting and variation margin
|
(172,389)
|
(194,387)
|
(157,778)
|
- potential future exposures
|
40,439
|
44,019
|
43,004
|
Securities financing transactions gross up
|
1,193
|
1,312
|
2,224
|
Other off balance sheet items
|
44,650
|
43,484
|
42,363
|
Regulatory deductions and other adjustments
|
(17,167)
|
(14,579)
|
(8,978)
|
CRR leverage exposure
|
688,287
|
686,736
|
643,874
|
|
|
|
|
CRR leverage ratio % (2)
|
5.2
|
5.1
|
5.1
|
|
|
|
|
UK leverage exposure
|
576,889
|
585,115
|
570,330
|
UK leverage ratio % (3)
|
6.2
|
6.0
|
5.8
|
|
CET1
|
AT1
|
Tier 2
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
At 1 January 2020
|
29,054
|
4,051
|
4,900
|
38,005
|
Attributable loss for the period
|
(644)
|
-
|
-
|
(644)
|
Own credit
|
(36)
|
-
|
-
|
(36)
|
Foreign exchange reserve
|
415
|
-
|
-
|
415
|
FVOCI reserve
|
(174)
|
-
|
-
|
(174)
|
Goodwill and intangibles deduction
|
22
|
-
|
-
|
22
|
Deferred tax assets
|
(78)
|
-
|
-
|
(78)
|
Prudential valuation adjustments
|
90
|
-
|
-
|
90
|
Expected loss less impairment
|
167
|
-
|
-
|
167
|
New issues of capital instruments
|
-
|
1,216
|
1,654
|
2,870
|
Redemption of capital instruments
|
-
|
(1,277)
|
(751)
|
(2,028)
|
Net dated subordinated debt/grandfathered instruments
|
-
|
-
|
(579)
|
(579)
|
Foreign exchange movements
|
(355)
|
-
|
103
|
(252)
|
Foreseeable ordinary and special dividends
|
968
|
-
|
-
|
968
|
Foreseeable charges
|
365
|
-
|
-
|
365
|
Adjustment under IFRS 9 transitional arrangements
|
1,719
|
-
|
-
|
1,719
|
Other movements
|
79
|
-
|
383
|
462
|
At 30 September 2020
|
31,592
|
3,990
|
5,710
|
41,292
|
●
NatWest Group has elected to take advantage of the
transitional regulatory capital rules in respect of expected credit
losses following the adoption of IFRS 9; it had previously had a
negligible impact up to Q4 2019. The CRR Covid-19 amendment now
requires a full CET1 addback for the movement in stage 1 and stage
2 ECL from 1 January 2020 for the next two years. The IFRS 9
transitional arrangement impact on NatWest Group CET1 regulatory
capital at 30 September 2020 is £1,719
million.
●
Foreign exchange movements in CET1 include a £345
million charge in relation to a $2 billion AT1 redemption
announcement on 28 June 2020.
|
|
|
Counterparty
|
|
Operational
|
|
|
Credit risk
|
credit risk
|
Market risk
|
risk
|
Total
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
At 1 January 2020
|
131.0
|
12.6
|
13.0
|
22.6
|
179.2
|
Foreign exchange movement
|
1.6
|
0.2
|
-
|
-
|
1.8
|
Business movement
|
-
|
(1.6)
|
(2.1)
|
(0.7)
|
(4.4)
|
Risk parameter changes (1)
|
0.3
|
0.2
|
-
|
-
|
0.5
|
Methodology changes (2)
|
(1.4)
|
(0.1)
|
-
|
-
|
(1.5)
|
Model updates
|
0.9
|
-
|
(0.2)
|
-
|
0.7
|
Other movements (3)
|
-
|
(1.1)
|
(1.3)
|
-
|
(2.4)
|
At 30 September 2020
|
132.4
|
10.2
|
9.4
|
21.9
|
173.9
|
|
|
|
|
|
|
|
Central
|
|
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
other
|
Total
|
Total RWAs
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
At 1 January 2020
|
37.8
|
13.0
|
72.5
|
10.1
|
6.5
|
37.9
|
1.4
|
179.2
|
Foreign exchange movement
|
-
|
0.7
|
0.5
|
-
|
0.1
|
0.5
|
-
|
1.8
|
Business movement
|
(0.3)
|
(1.0)
|
2.4
|
0.6
|
0.4
|
(6.2)
|
(0.3)
|
(4.4)
|
Risk parameter changes (1)
|
(1.2)
|
(0.7)
|
1.9
|
-
|
-
|
0.5
|
-
|
0.5
|
Methodology changes (2)
|
-
|
(0.1)
|
(1.8)
|
(0.1)
|
-
|
0.2
|
0.3
|
(1.5)
|
Model updates
|
-
|
0.2
|
0.7
|
-
|
-
|
(0.2)
|
-
|
0.7
|
Other movements (3)
|
-
|
-
|
0.3
|
-
|
-
|
(2.7)
|
-
|
(2.4)
|
At 30 September 2020
|
36.3
|
12.1
|
76.5
|
10.6
|
7.0
|
30.0
|
1.4
|
173.9
|
|
|
|
|
|
|
|
|
|
Credit risk
|
28.7
|
11.0
|
67.6
|
9.3
|
6.0
|
8.4
|
1.4
|
132.4
|
Counterparty credit risk
|
0.1
|
-
|
0.2
|
0.1
|
-
|
9.8
|
-
|
10.2
|
Market risk
|
0.1
|
0.1
|
0.2
|
-
|
-
|
9.0
|
-
|
9.4
|
Operational risk
|
7.4
|
1.0
|
8.5
|
1.2
|
1.0
|
2.8
|
-
|
21.9
|
Total RWAs
|
36.3
|
12.1
|
76.5
|
10.6
|
7.0
|
30.0
|
1.4
|
173.9
|
(1)
|
Risk
parameter changes relate to changes in credit quality metrics of
customers and counterparties (such as probability of default and
loss given default) as well as internal ratings based model changes
relating to counterparty credit risk in line with European Banking
Authority Pillar 3 Guidelines.
|
(2)
|
(a) The
new securitisation framework has been fully implemented from 1
January 2020 and all positions have moved to the new
framework.
(b)
Methodology changes also reflect the CRR Covid-19 amendment which
allowed an acceleration of the planned changes to the SME
supporting factor and the introduction of an Infrastructure
supporting factor.
|
(3)
|
Other
movements include:
(a) The
temporary reduction permitted by the PRA to offset the impact of
multiplier increases (included in business movement). The offset
covers all metrics affected by the multiplier increase, including
CVAs.
(b)
Hedging activity on counterparty credit risk in NatWest
Markets.
(c) A
transfer of Insurance related assets from NatWest Markets to
Commercial Banking.
|
|
|
●
|
Total
RWAs decreased by £5.3 billion during the period, mainly
reflecting reductions in Market Risk RWAs of £3.6 billion and
Counterparty Credit Risk RWAs of £2.4 billion. Operational
Risk RWAs reduced by £0.7 billion following the annual
recalculation in Q1 2020. The reduction in Market Risk RWAs
was due to movements in Risks-not-in-VaR (RNIV) and Incremental
Risk Charge (IRC) as well as a reduction in non-modelled market
risk. The reduction in Counterparty Credit Risk RWAs was driven by
hedging activity and trade novations. There were increases in
Credit Risk RWAs of £1.4 billion mainly attributed to
increases due to foreign exchange movements of £1.6 billion
and model changes of £0.9 billion, which were partially offset
by the beneficial CRR changes to supporting factors which have
reduced RWAs by c.£1.8 billion. The £0.3 billion increase
in Credit Risk RWAs due to risk parameters mainly reflected PD
deteriorations for customers in Commercial, partly offset by
improved risk metrics for Retail Banking products.
|
|
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Total
|
|
30 September 2020
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
EAD
|
On balance sheet
|
239.9
|
28.0
|
149.8
|
22.2
|
32.2
|
38.2
|
0.9
|
511.2
|
Off balance sheet
|
28.1
|
2.3
|
30.4
|
0.3
|
4.8
|
6.2
|
0.1
|
72.2
|
|
Total
|
268.0
|
30.3
|
180.2
|
22.5
|
37.0
|
44.4
|
1.0
|
583.4
|
|
|
|
|
|
|
|
|
|
|
|
RWAs
|
On balance sheet
|
26.1
|
9.9
|
53.7
|
9.1
|
4.7
|
6.2
|
1.4
|
111.1
|
Off balance sheet
|
2.6
|
1.1
|
13.9
|
0.2
|
1.3
|
2.2
|
-
|
21.3
|
|
Total
|
28.7
|
11.0
|
67.6
|
9.3
|
6.0
|
8.4
|
1.4
|
132.4
|
|
30 June 2020
|
|
|
|
|
|
|
|
|
|
EAD
|
On balance sheet
|
235.6
|
28.3
|
152.6
|
21.4
|
31.1
|
40.7
|
0.7
|
510.4
|
Off balance sheet
|
27.2
|
2.2
|
29.9
|
0.3
|
4.8
|
6.2
|
0.4
|
71.0
|
|
Total
|
262.8
|
30.5
|
182.5
|
21.7
|
35.9
|
46.9
|
1.1
|
581.4
|
|
|
|
|
|
|
|
|
|
|
|
RWAs
|
On balance sheet
|
26.4
|
10.6
|
56.3
|
8.9
|
4.5
|
7.0
|
1.3
|
115.0
|
Off balance sheet
|
2.7
|
1.1
|
13.2
|
0.2
|
1.3
|
2.1
|
0.1
|
20.7
|
|
Total
|
29.1
|
11.7
|
69.5
|
9.1
|
5.8
|
9.1
|
1.4
|
135.7
|
|
31 December 2019
|
|
|
|
|
|
|
|
|
|
EAD
|
On balance sheet
|
221.8
|
26.0
|
131.4
|
20.3
|
31.7
|
35.4
|
0.7
|
467.3
|
Off balance sheet
|
30.2
|
2.2
|
27.2
|
0.3
|
3.3
|
7.5
|
0.4
|
71.1
|
|
Total
|
252.0
|
28.2
|
158.6
|
20.6
|
35.0
|
42.9
|
1.1
|
538.4
|
|
|
|
|
|
|
|
|
|
|
|
RWAs
|
On balance sheet
|
27.1
|
10.8
|
50.8
|
8.7
|
4.7
|
6.4
|
1.3
|
109.8
|
Off balance sheet
|
3.1
|
1.1
|
12.5
|
0.2
|
1.0
|
3.2
|
0.1
|
21.2
|
|
Total
|
30.2
|
11.9
|
63.3
|
8.9
|
5.7
|
9.6
|
1.4
|
131.0
|
|
Liquidity value
|
||||
|
30 September 2020
|
|
30 June 2020
|
|
31 December 2019
|
|
NatWest
|
|
NatWest
|
|
NatWest
|
|
Group (1)
|
|
Group (1)
|
|
Group (1)
|
|
£m
|
|
£m
|
|
£m
|
Cash and balances at central banks
|
103,198
|
|
97,201
|
|
74,289
|
AAA to AA- rated governments
|
49,143
|
|
56,234
|
|
46,622
|
A+ and lower rated governments
|
492
|
|
1,040
|
|
1,277
|
Government guaranteed issuers, public sector entities
and
|
|
|
|
|
|
government sponsored
entities
|
282
|
|
261
|
|
251
|
International organisations and multilateral
development
|
|
|
|
|
|
banks
|
2,781
|
|
2,799
|
|
2,393
|
LCR level 1 bonds
|
52,698
|
|
60,334
|
|
50,543
|
LCR level 1 assets
|
155,896
|
|
157,535
|
|
124,832
|
LCR level 2 assets
|
126
|
|
127
|
|
-
|
Non-LCR eligible assets
|
-
|
|
-
|
|
88
|
Primary liquidity
|
156,022
|
|
157,662
|
|
124,920
|
Secondary liquidity (2)
|
87,392
|
|
84,910
|
|
74,431
|
Total liquidity value
|
243,414
|
|
242,572
|
|
199,351
|
(1)
|
NatWest
Group includes the UK Domestic Liquidity Sub-Group (NWB Plc, RBS
plc, Coutts & Co and Ulster Bank Limited), NatWest Markets Plc
and other significant operating subsidiaries that hold liquidity
portfolios. These include The Royal Bank of Scotland International
Limited, NWM N.V. and Ulster Bank Ireland DAC who hold managed
portfolios that comply with local regulations that may differ from
PRA rules.
|
(2)
|
Comprises
assets eligible for discounting at the Bank of England and other
central banks.
|
(3)
|
Liquidity
portfolio table approach has been aligned to the ILAAP methodology
with effect from December 2019.
|
|
Gross loans
|
||||||
|
|
Stage 2
|
|
|
|||
|
|
Not past
|
1-29
|
>30
|
|
|
|
|
Stage 1
|
due
|
DPD
|
DPD
|
Total
|
Stage 3
|
Total
|
30 September 2020
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Retail Banking
|
133,208
|
31,774
|
1,015
|
500
|
33,289
|
2,036
|
168,533
|
Ulster Bank RoI
|
13,916
|
3,824
|
157
|
241
|
4,222
|
1,333
|
19,471
|
Personal
|
10,793
|
1,897
|
123
|
150
|
2,170
|
1,170
|
14,133
|
Wholesale
|
3,123
|
1,927
|
34
|
91
|
2,052
|
163
|
5,338
|
Commercial Banking
|
57,513
|
50,885
|
623
|
783
|
52,291
|
2,750
|
112,554
|
Private Banking
|
14,637
|
1,868
|
22
|
21
|
1,911
|
290
|
16,838
|
Personal
|
12,311
|
164
|
20
|
19
|
203
|
252
|
12,766
|
Wholesale
|
2,326
|
1,704
|
2
|
2
|
1,708
|
38
|
4,072
|
RBS International
|
12,219
|
1,805
|
17
|
12
|
1,834
|
203
|
14,256
|
Personal
|
2,725
|
20
|
14
|
7
|
41
|
76
|
2,842
|
Wholesale
|
9,494
|
1,785
|
3
|
5
|
1,793
|
127
|
11,414
|
NatWest Markets
|
9,288
|
1,771
|
98
|
-
|
1,869
|
195
|
11,352
|
Central items & other
|
27,454
|
111
|
-
|
-
|
111
|
-
|
27,565
|
Total loans
|
268,235
|
92,038
|
1,932
|
1,557
|
95,527
|
6,807
|
370,569
|
Of which:
|
|
|
|
|
|
|
|
Personal
|
159,037
|
33,855
|
1,172
|
676
|
35,703
|
3,534
|
198,274
|
Wholesale
|
109,198
|
58,183
|
760
|
881
|
59,824
|
3,273
|
172,295
|
30 June 2020
|
|
||||||
Retail Banking
|
136,065
|
26,597
|
1,017
|
656
|
28,270
|
2,052
|
166,387
|
Ulster Bank RoI
|
18,642
|
4,122
|
150
|
206
|
4,478
|
1,547
|
24,667
|
Personal
|
10,602
|
2,015
|
131
|
133
|
2,279
|
1,384
|
14,265
|
Wholesale
|
8,040
|
2,107
|
19
|
73
|
2,199
|
163
|
10,402
|
Commercial Banking
|
53,514
|
55,593
|
1,934
|
847
|
58,374
|
2,806
|
114,694
|
Private Banking
|
14,465
|
1,545
|
14
|
8
|
1,567
|
256
|
16,288
|
Personal
|
11,972
|
168
|
12
|
7
|
187
|
243
|
12,402
|
Wholesale
|
2,493
|
1,377
|
2
|
1
|
1,380
|
13
|
3,886
|
RBS International
|
12,697
|
1,792
|
15
|
18
|
1,825
|
195
|
14,717
|
Personal
|
2,793
|
18
|
13
|
11
|
42
|
68
|
2,903
|
Wholesale
|
9,904
|
1,774
|
2
|
7
|
1,783
|
127
|
11,814
|
NatWest Markets
|
10,197
|
2,363
|
-
|
18
|
2,381
|
178
|
12,756
|
Central items & other
|
20,864
|
115
|
-
|
-
|
115
|
-
|
20,979
|
Total loans
|
266,444
|
92,127
|
3,130
|
1,753
|
97,010
|
7,034
|
370,488
|
Of which:
|
|
|
|
|
|
|
|
Personal
|
161,432
|
28,798
|
1,173
|
807
|
30,778
|
3,747
|
195,957
|
Wholesale
|
105,012
|
63,329
|
1,957
|
946
|
66,232
|
3,287
|
174,531
|
31 December 2019
|
|
||||||
Retail Banking
|
144,513
|
11,921
|
1,034
|
603
|
13,558
|
1,902
|
159,973
|
Ulster Bank RoI
|
18,544
|
1,405
|
104
|
133
|
1,642
|
2,037
|
22,223
|
Personal
|
10,858
|
944
|
96
|
105
|
1,145
|
1,877
|
13,880
|
Wholesale
|
7,686
|
461
|
8
|
28
|
497
|
160
|
8,343
|
Commercial Banking
|
88,100
|
10,837
|
254
|
262
|
11,353
|
2,162
|
101,615
|
Private Banking
|
14,956
|
478
|
63
|
46
|
587
|
207
|
15,750
|
Personal
|
11,630
|
180
|
60
|
41
|
281
|
192
|
12,103
|
Wholesale
|
3,326
|
298
|
3
|
5
|
306
|
15
|
3,647
|
RBS International
|
14,834
|
520
|
18
|
7
|
545
|
121
|
15,500
|
Personal
|
2,799
|
27
|
17
|
6
|
50
|
65
|
2,914
|
Wholesale
|
12,035
|
493
|
1
|
1
|
495
|
56
|
12,586
|
NatWest Markets
|
9,273
|
176
|
4
|
-
|
180
|
169
|
9,622
|
Central items & other
|
15,282
|
3
|
-
|
-
|
3
|
-
|
15,285
|
Total loans
|
305,502
|
25,340
|
1,477
|
1,051
|
27,868
|
6,598
|
339,968
|
Of which:
|
|
|
|
|
|
|
|
Personal
|
169,800
|
13,072
|
1,207
|
755
|
15,034
|
4,036
|
188,870
|
Wholesale
|
135,702
|
12,268
|
270
|
296
|
12,834
|
2,562
|
151,098
|
|
|
Off-balance sheet
|
|
|
||||||||
|
Loans - amortised cost & FVOCI
|
Loan
|
|
Contingent
|
|
ECL provisions
|
||||||
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
commitments (1)
|
|
liabilities
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
30 September 2020
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Personal
|
159,037
|
35,703
|
3,534
|
198,274
|
40,706
|
|
46
|
|
177
|
1,011
|
1,358
|
2,546
|
Mortgages
|
150,944
|
30,896
|
2,671
|
184,511
|
12,489
|
|
3
|
|
32
|
286
|
651
|
969
|
Credit
cards
|
2,526
|
1,323
|
107
|
3,956
|
15,474
|
|
-
|
|
50
|
245
|
85
|
380
|
Other
personal
|
5,567
|
3,484
|
756
|
9,807
|
12,743
|
|
43
|
|
95
|
480
|
622
|
1,197
|
Wholesale
|
109,198
|
59,824
|
3,273
|
172,295
|
91,240
|
|
4,746
|
|
370
|
2,050
|
1,407
|
3,827
|
Property
|
25,489
|
12,299
|
1,424
|
39,212
|
16,666
|
|
577
|
|
144
|
461
|
532
|
1,137
|
Financial
institutions
|
39,624
|
3,434
|
34
|
43,092
|
17,084
|
|
1,105
|
|
24
|
72
|
8
|
104
|
Sovereign
|
9,670
|
104
|
5
|
9,779
|
1,022
|
|
2
|
|
15
|
-
|
1
|
16
|
Corporate
|
34,415
|
43,987
|
1,810
|
80,212
|
56,468
|
|
3,062
|
|
187
|
1,517
|
866
|
2,570
|
Of
which:
|
|
|
|
|
|
|
|
|
|
|
|
|
Airlines
and aerospace
|
378
|
1,833
|
41
|
2,252
|
1,931
|
|
227
|
|
3
|
61
|
26
|
90
|
Automotive
|
2,475
|
4,352
|
83
|
6,910
|
4,217
|
|
106
|
|
13
|
115
|
19
|
147
|
Education
|
593
|
1,067
|
62
|
1,722
|
819
|
|
16
|
|
3
|
37
|
18
|
58
|
Health
|
2,286
|
3,470
|
155
|
5,911
|
689
|
|
14
|
|
11
|
141
|
56
|
208
|
Land
transport and logistics
|
1,448
|
3,396
|
119
|
4,963
|
3,697
|
|
210
|
|
10
|
98
|
39
|
147
|
Leisure
|
3,242
|
6,541
|
526
|
10,309
|
2,085
|
|
124
|
|
33
|
350
|
244
|
627
|
Oil
and gas
|
454
|
1,279
|
87
|
1,820
|
2,410
|
|
347
|
|
5
|
43
|
57
|
105
|
Retail
|
5,052
|
4,238
|
117
|
9,407
|
6,219
|
|
504
|
|
19
|
147
|
99
|
265
|
Total
|
268,235
|
95,527
|
6,807
|
370,569
|
131,946
|
|
4,792
|
|
547
|
3,061
|
2,765
|
6,373
|
30 June 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
|
161,432
|
30,778
|
3,747
|
195,957
|
41,279
|
|
48
|
|
178
|
1,010
|
1,404
|
2,592
|
Mortgages
|
152,947
|
26,292
|
2,903
|
182,142
|
11,158
|
|
3
|
|
34
|
292
|
706
|
1,032
|
Credit
cards
|
2,387
|
1,321
|
110
|
3,818
|
17,481
|
|
-
|
|
47
|
243
|
86
|
376
|
Other
personal
|
6,098
|
3,165
|
734
|
9,997
|
12,640
|
|
45
|
|
97
|
475
|
612
|
1,184
|
Wholesale
|
105,012
|
66,232
|
3,287
|
174,531
|
89,151
|
|
5,038
|
|
291
|
2,015
|
1,456
|
3,762
|
Property
|
26,782
|
12,400
|
1,259
|
40,441
|
15,423
|
|
607
|
|
126
|
392
|
513
|
1,031
|
Financial
institutions
|
39,133
|
3,789
|
10
|
42,932
|
17,500
|
|
1,130
|
|
22
|
69
|
5
|
96
|
Sovereign
|
9,436
|
1
|
6
|
9,443
|
1,129
|
|
2
|
|
10
|
-
|
-
|
10
|
Corporate
|
29,661
|
50,042
|
2,012
|
81,715
|
55,099
|
|
3,299
|
|
133
|
1,554
|
938
|
2,625
|
Of
which:
|
|
|
|
|
|
|
|
|
|
|
|
|
Airlines
and aerospace
|
495
|
1,839
|
38
|
2,372
|
1,829
|
|
233
|
|
4
|
53
|
26
|
83
|
Automotive
|
2,000
|
5,437
|
146
|
7,583
|
3,547
|
|
93
|
|
8
|
108
|
19
|
135
|
Education
|
704
|
919
|
83
|
1,706
|
725
|
|
19
|
|
2
|
27
|
16
|
45
|
Health
|
2,055
|
3,650
|
168
|
5,873
|
515
|
|
139
|
|
9
|
145
|
60
|
214
|
Land
transport and logistics
|
1,149
|
3,334
|
110
|
4,593
|
3,919
|
|
206
|
|
6
|
96
|
43
|
145
|
Leisure
|
2,755
|
6,739
|
534
|
10,028
|
1,841
|
|
126
|
|
22
|
303
|
249
|
574
|
Oil
and gas
|
465
|
1,535
|
89
|
2,089
|
2,627
|
|
382
|
|
4
|
55
|
61
|
120
|
Retail
|
2,647
|
5,059
|
221
|
7,927
|
5,858
|
|
507
|
|
13
|
158
|
170
|
341
|
Total
|
266,444
|
97,010
|
7,034
|
370,488
|
130,430
|
|
5,086
|
|
469
|
3,025
|
2,860
|
6,354
|
31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
|
169,800
|
15,034
|
4,036
|
188,870
|
43,316
|
|
50
|
|
130
|
503
|
1,449
|
2,082
|
Mortgages
|
159,261
|
11,465
|
3,277
|
174,003
|
14,345
|
|
3
|
|
25
|
118
|
821
|
964
|
Credit
cards
|
3,103
|
1,259
|
116
|
4,478
|
16,686
|
|
-
|
|
40
|
132
|
89
|
261
|
Other
personal
|
7,436
|
2,310
|
643
|
10,389
|
12,285
|
|
47
|
|
65
|
253
|
539
|
857
|
Wholesale
|
135,702
|
12,834
|
2,562
|
151,098
|
79,060
|
|
5,477
|
|
192
|
249
|
1,269
|
1,710
|
Property
|
32,896
|
2,580
|
895
|
36,371
|
14,739
|
|
644
|
|
45
|
47
|
402
|
494
|
Financial
institutions
|
35,707
|
546
|
13
|
36,266
|
15,417
|
|
1,325
|
|
16
|
4
|
8
|
28
|
Sovereign
|
7,410
|
4
|
5
|
7,419
|
1,021
|
|
1
|
|
7
|
-
|
-
|
7
|
Corporate
|
59,689
|
9,704
|
1,649
|
71,042
|
47,883
|
|
3,507
|
|
124
|
198
|
859
|
1,181
|
Of
which:
|
|
|
|
|
|
|
|
|
|
|
|
|
Airlines
and aerospace (2)
|
1,412
|
261
|
40
|
1,713
|
1,716
|
|
271
|
|
2
|
3
|
55
|
60
|
Automotive
|
5,062
|
1,143
|
20
|
6,225
|
3,815
|
|
98
|
|
12
|
11
|
15
|
38
|
Education
|
1,426
|
154
|
12
|
1,592
|
654
|
|
18
|
|
2
|
4
|
1
|
7
|
Health
|
4,695
|
844
|
167
|
5,706
|
534
|
|
17
|
|
9
|
16
|
52
|
77
|
Land
transport and logistics
|
3,477
|
316
|
53
|
3,846
|
3,301
|
|
249
|
|
6
|
12
|
21
|
39
|
Leisure
|
6,323
|
1,253
|
377
|
7,953
|
2,876
|
|
135
|
|
25
|
27
|
175
|
227
|
Oil
and gas
|
1,923
|
140
|
86
|
2,149
|
2,400
|
|
358
|
|
5
|
3
|
55
|
63
|
Retail
|
6,397
|
1,279
|
215
|
7,891
|
5,383
|
|
560
|
|
13
|
16
|
180
|
209
|
Total
|
305,502
|
27,868
|
6,598
|
339,968
|
122,376
|
|
5,527
|
|
322
|
752
|
2,718
|
3,792
|
|
BBLS
|
|
CBILS
|
|
CLBILS
|
||||||
|
Approved
|
Drawdown
|
% of BBLS to
|
|
Approved
|
Drawdown
|
% of CBILS to
|
|
Approved
|
Drawdown
|
% of CLBILS to
|
30 September 2020
|
Volume
|
amount (£m)
|
sector loans
|
|
Volume
|
amount (£m)
|
sector loans
|
|
Volume
|
amount (£m)
|
sector loans
|
Wholesale lending by sector
|
|
|
|
|
|
|
|
|
|
|
|
Airlines and
aerospace
|
223
|
6
|
0.27%
|
|
19
|
7
|
0.31%
|
|
2
|
-
|
-
|
Automotive
|
11,531
|
385
|
5.57%
|
|
538
|
125
|
1.81%
|
|
31
|
47
|
0.68%
|
Education
|
1,766
|
47
|
2.73%
|
|
105
|
54
|
3.14%
|
|
10
|
35
|
2.03%
|
Health
|
9,035
|
289
|
4.89%
|
|
573
|
89
|
1.51%
|
|
3
|
24
|
0.41%
|
Land transport and
logistics
|
7,991
|
235
|
4.74%
|
|
341
|
82
|
1.65%
|
|
3
|
5
|
0.10%
|
Leisure
|
28,778
|
902
|
8.75%
|
|
1,869
|
429
|
4.16%
|
|
31
|
94
|
0.91%
|
Oil and
gas
|
271
|
8
|
0.44%
|
|
16
|
6
|
0.33%
|
|
-
|
-
|
-
|
Retail
|
29,425
|
999
|
10.62%
|
|
1,493
|
391
|
4.16%
|
|
25
|
75
|
0.80%
|
Property (3)
|
53,841
|
1,514
|
3.86%
|
|
2,224
|
605
|
1.54%
|
|
35
|
112
|
0.29%
|
Other (including
Business
|
|
|
|
|
|
|
|
|
|
|
|
Banking)
|
118,645
|
3,127
|
3.48%
|
|
8,100
|
1,450
|
1.61%
|
|
77
|
180
|
0.20%
|
Total
|
261,506
|
7,512
|
4.36%
|
|
15,278
|
3,238
|
1.88%
|
|
217
|
572
|
0.33%
|
30 June 2020
|
|
|
|
|
|
||||||
Wholesale lending by sector
|
|
|
|
|
|
|
|
|
|
|
|
Airlines and
aerospace
|
175
|
5
|
0.21%
|
|
17
|
4
|
0.17%
|
|
-
|
-
|
-
|
Automotive
|
9,267
|
309
|
4.07%
|
|
495
|
111
|
1.46%
|
|
26
|
22
|
0.29%
|
Education
|
1,347
|
36
|
2.11%
|
|
83
|
21
|
1.23%
|
|
4
|
30
|
1.76%
|
Health
|
6,976
|
222
|
3.78%
|
|
543
|
69
|
1.17%
|
|
2
|
5
|
0.09%
|
Land transport and
logistics
|
6,222
|
181
|
3.94%
|
|
306
|
66
|
1.44%
|
|
2
|
3
|
0.07%
|
Leisure
|
22,776
|
715
|
7.13%
|
|
1,697
|
305
|
3.04%
|
|
16
|
11
|
0.11%
|
Oil and
gas
|
197
|
6
|
0.29%
|
|
13
|
5
|
0.24%
|
|
-
|
-
|
-
|
Retail
|
23,824
|
808
|
10.19%
|
|
1,395
|
328
|
4.14%
|
|
13
|
48
|
0.61%
|
Property (3)
|
41,233
|
1,170
|
2.89%
|
|
2,018
|
456
|
1.13%
|
|
27
|
31
|
0.08%
|
Other (including
Business
|
|
|
|
|
|
|
|
|
|
|
|
Banking)
|
88,391
|
2,343
|
2.55%
|
|
7,160
|
1,035
|
1.13%
|
|
53
|
31
|
0.03%
|
Total
|
200,408
|
5,795
|
3.32%
|
|
13,727
|
2,400
|
1.38%
|
|
143
|
181
|
0.10%
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Interest receivable
|
7,702
|
8,474
|
|
2,512
|
2,507
|
2,921
|
Interest payable
|
(1,924)
|
(2,464)
|
|
(586)
|
(597)
|
(915)
|
Net interest income
|
5,778
|
6,010
|
|
1,926
|
1,910
|
2,006
|
Fees and commissions receivable
|
2,081
|
2,570
|
|
651
|
682
|
808
|
Fees and commissions payable
|
(591)
|
(673)
|
|
(199)
|
(217)
|
(186)
|
Income from trading activities
|
1,054
|
794
|
|
252
|
210
|
195
|
Other operating income (1)
|
(61)
|
1,319
|
|
(207)
|
91
|
80
|
Non-interest income
|
2,483
|
4,010
|
|
497
|
766
|
897
|
Total income
|
8,261
|
10,020
|
|
2,423
|
2,676
|
2,903
|
Staff costs
|
(2,937)
|
(3,028)
|
|
(982)
|
(963)
|
(1,000)
|
Premises and equipment
|
(902)
|
(823)
|
|
(251)
|
(393)
|
(265)
|
Other administrative expenses
|
(1,081)
|
(2,085)
|
|
(385)
|
(298)
|
(1,222)
|
Depreciation and amortisation
|
(635)
|
(853)
|
|
(194)
|
(248)
|
(232)
|
Impairment of other intangible assets
|
(9)
|
(9)
|
|
(2)
|
(7)
|
21
|
Operating expenses
|
(5,564)
|
(6,798)
|
|
(1,814)
|
(1,909)
|
(2,698)
|
Profit before impairment losses
|
2,697
|
3,222
|
|
609
|
767
|
205
|
Impairment losses
|
(3,112)
|
(536)
|
|
(254)
|
(2,056)
|
(213)
|
Operating (loss)/profit before tax
|
(415)
|
2,686
|
|
355
|
(1,289)
|
(8)
|
Tax credit/(charge)
|
1
|
(395)
|
|
(207)
|
396
|
(201)
|
(Loss)/profit for the period
|
(414)
|
2,291
|
|
148
|
(893)
|
(209)
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
(644)
|
1,723
|
|
61
|
(993)
|
(315)
|
Preference shareholders
|
21
|
30
|
|
5
|
8
|
10
|
Paid-in equity holders
|
272
|
277
|
|
80
|
95
|
95
|
Non-controlling interests
|
(63)
|
261
|
|
2
|
(3)
|
1
|
|
(414)
|
2,291
|
|
148
|
(893)
|
(209)
|
Earnings per ordinary share
|
(5.3p)
|
14.3p
|
|
0.5p
|
(8.2p)
|
(2.6p)
|
Earnings per ordinary share - fully diluted
|
(5.3p)
|
14.2p
|
|
0.5p
|
(8.2p)
|
(2.6p)
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
(Loss)/profit for the period
|
(414)
|
2,291
|
|
148
|
(893)
|
(209)
|
Items that do not qualify for reclassification
|
|
|
|
|
|
|
Remeasurement of retirement benefit schemes
|
54
|
(96)
|
|
(14)
|
90
|
(28)
|
Profit/(loss) on fair value of credit in financial
liabilities
|
|
|
|
|
|
|
designated as at
FVTPL due to own credit risk
|
20
|
(115)
|
|
(63)
|
(105)
|
(19)
|
FVOCI financial assets
|
(43)
|
(92)
|
|
77
|
133
|
(130)
|
Tax
|
13
|
24
|
|
13
|
-
|
(2)
|
|
44
|
(279)
|
|
13
|
118
|
(179)
|
Items that do qualify for reclassification
|
|
|
|
|
|
|
FVOCI financial assets
|
(37)
|
(3)
|
|
74
|
32
|
9
|
Cash flow hedges
|
364
|
688
|
|
(53)
|
105
|
286
|
Currency translation
|
425
|
(298)
|
|
(150)
|
217
|
(57)
|
Tax
|
(85)
|
(193)
|
|
94
|
(126)
|
(71)
|
|
667
|
194
|
|
(35)
|
228
|
167
|
Other comprehensive income/(loss) after tax
|
711
|
(85)
|
|
(22)
|
346
|
(12)
|
Total comprehensive income/(loss) for the period
|
297
|
2,206
|
|
126
|
(547)
|
(221)
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
51
|
1,624
|
|
37
|
(648)
|
(326)
|
Preference shareholders
|
21
|
30
|
|
5
|
8
|
10
|
Paid-in equity holders
|
272
|
277
|
|
80
|
95
|
95
|
Non-controlling interests
|
(47)
|
275
|
|
4
|
(2)
|
-
|
|
297
|
2,206
|
|
126
|
(547)
|
(221)
|
|
30 September
|
30 June
|
31 December
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
£m
|
Assets
|
|
|
|
Cash and balances at central banks
|
106,388
|
100,281
|
77,858
|
Trading assets
|
70,820
|
72,402
|
76,745
|
Derivatives
|
164,311
|
183,419
|
150,029
|
Settlement balances
|
10,947
|
7,806
|
4,387
|
Loans to banks - amortised cost
|
11,864
|
12,972
|
10,689
|
Loans to customers - amortised cost
|
353,691
|
352,341
|
326,947
|
Other financial assets
|
58,736
|
62,727
|
61,452
|
Intangible assets
|
6,600
|
6,602
|
6,622
|
Other assets
|
8,204
|
8,337
|
8,310
|
Total assets
|
791,561
|
806,887
|
723,039
|
|
|
|
|
Liabilities
|
|
|
|
Bank deposits
|
18,666
|
21,119
|
20,493
|
Customer deposits
|
418,358
|
408,268
|
369,247
|
Settlement balances
|
9,839
|
6,895
|
4,069
|
Trading liabilities
|
73,023
|
75,540
|
73,949
|
Derivatives
|
160,532
|
179,859
|
146,879
|
Other financial liabilities
|
48,848
|
49,681
|
45,220
|
Subordinated liabilities
|
10,467
|
13,558
|
9,979
|
Other liabilities
|
8,678
|
8,906
|
9,647
|
Total liabilities
|
748,411
|
763,826
|
679,483
|
|
|
|
|
Equity
|
|
|
|
Ordinary shareholders' interests
|
38,693
|
38,608
|
38,993
|
Other owners' interests
|
4,495
|
4,495
|
4,554
|
Owners' equity
|
43,188
|
43,103
|
43,547
|
Non-controlling interests
|
(38)
|
(42)
|
9
|
Total equity
|
43,150
|
43,061
|
43,556
|
Total liabilities and equity
|
791,561
|
806,887
|
723,039
|
|
Share
|
|
|
|
|
|
|
capital and
|
|
|
|
Total
|
Non
|
|
|
|
statutory
|
Paid-in
|
Retained
|
Other
|
owners'
|
controlling
|
Total
|
|
reserves
|
equity
|
earnings
|
reserves*
|
equity
|
interests
|
equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
At 1 January 2020
|
13,146
|
4,058
|
13,946
|
12,397
|
43,547
|
9
|
43,556
|
Loss attributable to ordinary shareholders
|
|
|
|
|
|
|
|
and
other equity owners
|
-
|
-
|
(351)
|
-
|
(351)
|
(63)
|
(414)
|
Other comprehensive income
|
|
|
|
|
|
|
|
- Realised gains in
period
|
|
|
|
|
|
|
|
on FVOCI equity shares (1)
|
-
|
-
|
114
|
(114)
|
-
|
-
|
-
|
- Remeasurement of
retirement
|
|
|
|
|
|
|
|
benefit schemes
|
-
|
-
|
54
|
-
|
54
|
-
|
54
|
- Changes in fair
value of credit in financial
|
|
|
|
|
|
|
|
liabilities at FVTPL
|
-
|
-
|
20
|
-
|
20
|
-
|
20
|
- Other amounts
recognised in equity
|
-
|
-
|
-
|
810
|
810
|
16
|
826
|
- Amount
transferred from equity to earnings
|
-
|
-
|
-
|
(133)
|
(133)
|
-
|
(133)
|
- Recycled to
profit or loss on disposal
|
|
|
|
|
|
|
-
|
of businesses
|
-
|
-
|
-
|
16
|
16
|
-
|
16
|
-
Tax
|
-
|
-
|
1
|
(73)
|
(72)
|
-
|
(72)
|
Preference share and paid-in equity
|
|
|
|
|
|
|
|
dividends
paid
|
-
|
-
|
(293)
|
-
|
(293)
|
-
|
(293)
|
Unclaimed dividend
|
-
|
-
|
2
|
-
|
2
|
-
|
2
|
Shares and securities issued during the year
|
49
|
1,220
|
(11)
|
-
|
1,258
|
-
|
1,258
|
Redemption/reclassification
|
-
|
(1,277)
|
(355)
|
-
|
(1,632)
|
-
|
(1,632)
|
Share-based payments
|
-
|
-
|
(56)
|
-
|
(56)
|
-
|
(56)
|
Movement in own shares held
|
18
|
-
|
-
|
-
|
18
|
-
|
18
|
At 30 September 2020
|
13,213
|
4,001
|
13,071
|
12,903
|
43,188
|
(38)
|
43,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 September
|
|
|
|
|
|
|
|
|
2020
|
Attributable to:
|
|
|
|
|
£m
|
||
Ordinary shareholders
|
|
|
|
|
|
|
38,693
|
Preference shareholders
|
|
|
|
|
|
|
494
|
Paid-in equity holders
|
|
|
|
|
|
|
4,001
|
Non-controlling interests
|
|
|
|
|
|
|
(38)
|
|
|
|
|
|
|
|
43,150
|
*Other reserves consists of:
|
|
|
|
|
|
|
|
Merger reserve
|
|
|
|
|
|
|
10,881
|
FVOCI reserve
|
|
|
|
|
|
|
(36)
|
Cash flow hedging reserve
|
|
|
|
|
|
|
300
|
Foreign exchange reserve
|
|
|
|
|
|
|
1,758
|
|
|
|
|
|
|
|
12,903
|
Analyst enquiries:
|
Alexander
Holcroft, Investor Relations
|
+44 (0)
20 7672 1758
|
Media enquiries:
|
NatWest
Group Press Office
|
+44 (0)
131 523 4205
|
|
Analyst and investor call
|
Webcast and dial in details
|
Date:
|
30
October 2020
|
https://investors.natwestgroup.com/results-centre
|
Time:
|
9am UK
time
|
International:
+44 (0) 203 057 6566
|
Conference ID:
|
4482325
|
UK Free
Call: 0800 279 5995
US
Local Dial-In, New York: +1 646 741 2115
|
Measure
|
Basis of preparation
|
Additional analysis or reconciliation
|
Loan:deposit ratio
|
Net customer loans held at amortised cost divided by total customer
deposits.
|
Table 5
|
Tangible net asset value (TNAV)
|
Tangible
equity divided by the number of ordinary shares in issue. Tangible
equity is ordinary shareholders' interest less intangible
assets.
|
Page
3
|
NIM
|
Net interest income of the banking business as a percentage of
interest-earning assets of the banking business.
|
Page
3
|
Funded assets
|
Total
assets less derivatives.
|
Pages
10 to 14
|
ECL loss rate
|
The
annualised loan impairment charge divided by gross customer
loans.
|
Pages
10 to 14
|
Third party customer asset rate
|
Third
party customer asset rate is calculated as annualised interest
receivable on third-party loans to customers as a percentage of
third-party loans to customers only. This excludes intragroup
items, loans to banks and liquid asset portfolios, which are
included for the calculation of net interest margin.
|
Pages
10 to 14
|
Third party customer funding rate
|
Third
party customer funding rate is calculated as annualised interest
payable on third-party customer deposits as a percentage of
third-party customer deposits. This excludes intragroup items, bank
deposits and debt securities in issue.
|
Pages
10 to 14
|
|
Nine months ended or as at
|
|
Quarter ended or as at
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
(Loss)/profit attributable to ordinary shareholders
(£m)
|
(644)
|
1,723
|
|
61
|
(993)
|
(315)
|
Annualised (loss)/profit attributable to ordinary
|
|
|
|
|
|
|
shareholders
(£m)
|
(859)
|
2,297
|
|
244
|
(3,972)
|
(1,260)
|
Adjustment for PPI provision for Q3 2019 (£m)
|
|
|
|
|
|
900
|
Adjusted profit attributable to ordinary shareholders
(£m)
|
|
|
|
|
|
585
|
Annualised adjusted (loss)/profit attributable to
ordinary
|
|
|
|
|
|
|
shareholders
(£m)
|
|
|
|
|
|
2,340
|
|
|
|
|
|
|
|
Average total equity (£m)
|
43,766
|
46,025
|
|
43,145
|
44,068
|
45,579
|
Adjustment for other owners' equity and intangibles
(£m)
|
(11,760)
|
(12,432)
|
|
(11,482)
|
(11,987)
|
(12,226)
|
Adjusted total tangible equity (£m)
|
32,006
|
33,593
|
|
31,663
|
32,081
|
33,353
|
|
|
|
|
|
|
|
Return on tangible equity (%)
|
(2.7%)
|
6.8%
|
|
0.8%
|
(12.4%)
|
(3.8%)
|
Return on tangible equity adjusting for impact
|
|
|
|
|
|
|
of PPI
provision (%)
|
|
|
|
|
|
7.0%
|
|
|
Ulster
|
|
|
|
|
|
Retail
|
Bank
|
Commercial
|
Private
|
RBS
|
NatWest
|
Nine months ended 30 September 2020
|
Banking
|
RoI
|
Banking
|
Banking
|
International
|
Markets
|
Operating profit/(loss) (£m)
|
758
|
(244)
|
(684)
|
141
|
112
|
3
|
Preference share cost allocation (£m)
|
(66)
|
-
|
(114)
|
(17)
|
(15)
|
(51)
|
Adjustment for tax (£m)
|
(194)
|
-
|
223
|
(35)
|
(14)
|
13
|
Adjusted attributable profit/(loss) (£m)
|
498
|
(244)
|
(575)
|
89
|
83
|
(35)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
664
|
(325)
|
(767)
|
119
|
111
|
(47)
|
Average RWAe (£bn)
|
37.6
|
12.6
|
76.6
|
10.3
|
6.9
|
39.2
|
Equity factor
|
14.5%
|
15.5%
|
11.5%
|
12.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.5
|
2.0
|
8.8
|
1.3
|
1.1
|
5.9
|
Return on equity
|
12.2%
|
(16.6%)
|
(8.7%)
|
9.2%
|
10.0%
|
(0.8%)
|
|
|
|
|
|
|
|
Nine months ended 30 September 2019
|
|
|
|
|
|
|
Operating profit (£m)
|
529
|
54
|
1,032
|
236
|
282
|
107
|
Adjustment for tax (£m)
|
(148)
|
-
|
(289)
|
(66)
|
(39)
|
(30)
|
Preference share cost allocation (£m)
|
(54)
|
-
|
(123)
|
(12)
|
(5)
|
(50)
|
Adjusted attributable profit(£m)
|
327
|
54
|
620
|
158
|
238
|
27
|
Annualised adjusted attributable profit (£m)
|
436
|
72
|
827
|
211
|
317
|
36
|
Adjustment for Alawwal bank merger gain (£m)
|
-
|
-
|
-
|
-
|
-
|
(200)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
436
|
72
|
827
|
211
|
317
|
(164)
|
Average RWAe (£bn)
|
37.4
|
14.2
|
79.3
|
9.7
|
6.9
|
49.0
|
Equity factor
|
15.0%
|
15.0%
|
12.0%
|
13.0%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.6
|
2.1
|
9.5
|
1.3
|
1.1
|
7.4
|
Return on equity
|
7.8%
|
3.4%
|
8.7%
|
16.7%
|
28.5%
|
(2.2%)
|
|
|
|
|
|
|
|
Quarter ended 30 September 2020
|
|
|
|
|
|
|
Operating profit/(loss) (£m)
|
305
|
(5)
|
324
|
57
|
25
|
(66)
|
Preference share cost allocation (£m)
|
(22)
|
-
|
(38)
|
(6)
|
(5)
|
(17)
|
Adjustment for tax (£m)
|
(79)
|
-
|
(80)
|
(14)
|
(3)
|
23
|
Adjusted attributable profit/(loss) (£m)
|
204
|
(5)
|
206
|
37
|
17
|
(60)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
816
|
(20)
|
824
|
148
|
68
|
(240)
|
Average RWAe (£bn)
|
36.7
|
12.3
|
77.8
|
10.5
|
6.8
|
34.0
|
Equity factor
|
14.5%
|
15.5%
|
11.5%
|
12.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.3
|
1.9
|
8.9
|
1.3
|
1.1
|
5.1
|
Return on equity
|
15.3%
|
(1.0%)
|
9.2%
|
11.2%
|
6.4%
|
(4.7%)
|
|
|
|
|
|
|
|
Quarter ended 30 June 2020
|
|
|
|
|
|
|
Operating profit/(loss) (£m)
|
129
|
(218)
|
(971)
|
35
|
19
|
(137)
|
Preference share cost allocation (£m)
|
(22)
|
-
|
(38)
|
(5)
|
(5)
|
(17)
|
Adjustment for tax (£m)
|
(30)
|
-
|
283
|
(8)
|
(2)
|
43
|
Adjusted attributable profit/(loss)(£m)
|
77
|
(218)
|
(726)
|
22
|
12
|
(111)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
308
|
(872)
|
(2,904)
|
88
|
48
|
(444)
|
Average RWAe (£bn)
|
37.4
|
12.6
|
77.8
|
10.3
|
7.1
|
41.8
|
Equity factor
|
14.5%
|
15.5%
|
11.5%
|
12.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.4
|
2.0
|
8.9
|
1.3
|
1.1
|
6.3
|
Return on equity
|
5.7%
|
(44.5%)
|
(32.5%)
|
6.6%
|
4.3%
|
(7.1%)
|
|
|
|
|
|
|
|
Quarter ended 30 September 2019
|
|
|
|
|
|
|
Operating (loss)/profit (£m)
|
(508)
|
31
|
331
|
81
|
88
|
(193)
|
Adjustment for tax (£m)
|
142
|
-
|
(92)
|
(23)
|
(12)
|
54
|
Preference share cost allocation (£m)
|
(18)
|
-
|
(41)
|
(4)
|
(5)
|
(20)
|
Adjusted attributable (loss)/profit (£m)
|
(384)
|
31
|
198
|
54
|
71
|
(159)
|
Annualised adjusted attributable (loss)/profit
(£m)
|
(1,536)
|
124
|
792
|
216
|
283
|
(634)
|
Average RWAe (£bn)
|
38.2
|
14.2
|
78.8
|
9.9
|
6.8
|
48.7
|
Equity factor
|
15.0%
|
15.0%
|
12.0%
|
13.0%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.7
|
2.1
|
9.5
|
1.3
|
1.1
|
7.3
|
Return on equity
|
(26.8%)
|
5.8%
|
8.4%
|
16.8%
|
26.0%
|
(8.7%)
|
|
|
|
|
|
|
|
Statutory analysis (1,2)
|
|
|
|
|
|
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
Operating expenses
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Staff costs
|
2,937
|
3,028
|
|
982
|
963
|
1,000
|
Premises and equipment
|
902
|
823
|
|
251
|
393
|
265
|
Other administrative expenses
|
1,081
|
2,085
|
|
385
|
298
|
1,222
|
Depreciation and amortisation
|
635
|
853
|
|
194
|
248
|
232
|
Impairment of other intangible assets
|
9
|
9
|
|
2
|
7
|
(21)
|
Total operating expenses
|
5,564
|
6,798
|
|
1,814
|
1,909
|
2,698
|
|
|
Ulster
|
|
|
|
|
Central
|
Total
|
|
Retail
|
Bank
|
Commercial
|
Private
|
RBS
|
NatWest
|
items
|
NatWest
|
|
Banking
|
RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Group
|
Nine months ended
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
30 September 2020
|
|
|
|
|
|
|
|
|
Operating expenses
|
(1,722)
|
(372)
|
(1,774)
|
(364)
|
(179)
|
(1,009)
|
(144)
|
(5,564)
|
Operating lease depreciation
|
-
|
-
|
110
|
-
|
-
|
-
|
-
|
110
|
Adjusted operating expenses
|
(1,722)
|
(372)
|
(1,664)
|
(364)
|
(179)
|
(1,009)
|
(144)
|
(5,454)
|
Total income
|
3,207
|
379
|
3,007
|
579
|
371
|
1,050
|
(332)
|
8,261
|
Operating lease depreciation
|
-
|
-
|
(110)
|
-
|
-
|
-
|
-
|
(110)
|
Adjusted total income
|
3,207
|
379
|
2,897
|
579
|
371
|
1,050
|
(332)
|
8,151
|
Cost:income ratio
|
53.7%
|
98.2%
|
57.4%
|
62.9%
|
48.2%
|
96.1%
|
nm
|
66.9%
|
|
|
|
|
|
|
|
|
|
30 September 2019
|
|
|
|
|
|
|
|
|
Operating expenses
|
(2,830)
|
(412)
|
(1,900)
|
(351)
|
(181)
|
(1,026)
|
(98)
|
(6,798)
|
Operating lease depreciation
|
-
|
-
|
103
|
-
|
-
|
-
|
-
|
103
|
Adjusted operating expenses
|
(2,830)
|
(412)
|
(1,797)
|
(351)
|
(181)
|
(1,026)
|
(98)
|
(6,695)
|
Total income
|
3,671
|
428
|
3,242
|
582
|
460
|
1,092
|
545
|
10,020
|
Operating lease depreciation
|
-
|
-
|
(103)
|
-
|
-
|
-
|
-
|
(103)
|
Adjusted total income
|
3,671
|
428
|
3,139
|
582
|
460
|
1,092
|
545
|
9,917
|
Cost:income ratio
|
77.1%
|
96.3%
|
57.2%
|
60.3%
|
39.3%
|
94.0%
|
nm
|
67.5%
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
30 September 2020
|
|
|
|
|
|
|
|
|
Operating expenses
|
(647)
|
(127)
|
(553)
|
(112)
|
(53)
|
(302)
|
(20)
|
(1,814)
|
Operating lease depreciation
|
-
|
-
|
37
|
-
|
-
|
-
|
-
|
37
|
Adjusted operating expenses
|
(647)
|
(127)
|
(516)
|
(112)
|
(53)
|
(302)
|
(20)
|
(1,777)
|
Total income
|
1,022
|
130
|
1,004
|
187
|
112
|
234
|
(266)
|
2,423
|
Operating lease depreciation
|
-
|
-
|
(37)
|
-
|
-
|
-
|
-
|
(37)
|
Adjusted total income
|
1,022
|
130
|
967
|
187
|
112
|
234
|
(266)
|
2,386
|
Cost:income ratio
|
63.3%
|
97.7%
|
53.4%
|
59.9%
|
47.3%
|
129.1%
|
nm
|
74.5%
|
|
|
|
|
|
|
|
|
|
30 June 2020
|
|
|
|
|
|
|
|
|
Operating expenses
|
(546)
|
(122)
|
(611)
|
(129)
|
(65)
|
(365)
|
(71)
|
(1,909)
|
Operating lease depreciation
|
-
|
-
|
37
|
-
|
-
|
-
|
-
|
37
|
Adjusted operating expenses
|
(546)
|
(122)
|
(574)
|
(129)
|
(65)
|
(365)
|
(71)
|
(1,872)
|
Total income
|
1,035
|
120
|
995
|
191
|
115
|
273
|
(53)
|
2,676
|
Operating lease depreciation
|
-
|
-
|
(37)
|
-
|
-
|
-
|
-
|
(37)
|
Adjusted total income
|
1,035
|
120
|
958
|
191
|
115
|
273
|
(53)
|
2,639
|
Cost:income ratio
|
52.8%
|
101.7%
|
59.9%
|
67.5%
|
56.5%
|
133.7%
|
nm
|
70.9%
|
|
|
|
|
|
|
|
|
|
30 September 2019
|
|
|
|
|
|
|
|
|
Operating expenses
|
(1,601)
|
(131)
|
(638)
|
(119)
|
(62)
|
(348)
|
201
|
(2,698)
|
Operating lease depreciation
|
-
|
-
|
35
|
-
|
-
|
-
|
-
|
35
|
Adjusted operating expenses
|
(1,601)
|
(131)
|
(603)
|
(119)
|
(62)
|
(348)
|
201
|
(2,663)
|
Total income
|
1,224
|
145
|
1,077
|
198
|
150
|
150
|
(41)
|
2,903
|
Operating lease depreciation
|
-
|
-
|
(35)
|
-
|
-
|
-
|
-
|
(35)
|
Adjusted total income
|
1,224
|
145
|
1,042
|
198
|
150
|
150
|
(41)
|
2,868
|
Cost:income ratio
|
130.8%
|
90.3%
|
57.9%
|
60.1%
|
41.3%
|
232.0%
|
nm
|
92.9%
|
|
Nine months ended or as at
|
|
Quarter ended or as at
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
NatWest Group net interest income
|
5,778
|
6,010
|
|
1,926
|
1,910
|
2,006
|
NWM net interest income
|
55
|
184
|
|
21
|
(6)
|
62
|
Net interest income excluding NWM
|
5,833
|
6,194
|
|
1,947
|
1,904
|
2,068
|
Annualised net interest income
|
7,718
|
8,035
|
|
7,662
|
7,682
|
7,959
|
Annualised net interest income excluding NWM
|
7,792
|
8,281
|
|
7,746
|
7,658
|
8,205
|
Average interest earning assets (IEA)
|
487,777
|
445,068
|
|
507,325
|
497,440
|
454,429
|
NWM average IEA
|
38,403
|
35,065
|
|
39,213
|
39,874
|
38,616
|
Bank average IEA excluding NWM
|
449,374
|
410,003
|
|
468,112
|
457,566
|
415,813
|
|
|
|
|
|
|
|
Net interest margin
|
1.58%
|
1.81%
|
|
1.51%
|
1.54%
|
1.75%
|
Bank net interest margin (NatWest Group NIM excluding
NWM)
|
1.73%
|
2.02%
|
|
1.65%
|
1.67%
|
1.97%
|
|
As at
|
||
|
30 September
|
30 June
|
31 December
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
£m
|
Loans to customers - amortised cost
|
353,691
|
352,341
|
326,947
|
Customer deposits
|
418,358
|
408,268
|
369,247
|
Loan:deposit ratio (%)
|
85%
|
86%
|
89%
|
|
NATWEST
GROUP plc (Registrant)
|
|
|
|
By: /s/
Jan Cargill
|
|
|
|
Name:
Jan Cargill
|
|
Title:
Deputy Secretary
|
1 Year Royal Bank of Scotland Chart |
1 Month Royal Bank of Scotland Chart |
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