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Share Name | Share Symbol | Market | Type |
---|---|---|---|
NatWest Group PLC (PK) | USOTC:RBSPF | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.095 | 2.40% | 4.055 | 3.71 | 4.39 | 4.055 | 4.055 | 4.055 | 492 | 17:00:00 |
|
|
NatWest Group 2023
Results
|
Page
|
Highlights
|
2
|
Group Chief Executive's review
|
3
|
Outlook
|
5
|
Business performance summary
|
|
Chief Financial Officer review
|
7
|
Retail Banking
|
9
|
Private Banking
|
10
|
Commercial & Institutional
|
11
|
Central items & other
|
12
|
Segment performance
|
13
|
Risk and capital management
|
|
Capital, liquidity and funding risk
|
18
|
Credit risk
|
20
|
Condensed consolidated financial statements
|
24
|
Notes to the financial statements
|
30
|
Statement of directors' responsibilities
|
35
|
Additional information
|
36
|
Appendix - Non-IFRS financial measures
|
40
|
-
|
Full
year attributable profit of £4.4 billion and a return on
tangible equity (RoTE) of 17.8%, above our guided
range.
|
-
|
Total
income excluding notable items(1) of £14.3
billion increased by £1.3 billion, or 9.8%, compared with 2022
principally reflecting the impact of favourable yield curve
movements, higher income in our markets business and lending growth
partially offset by reduced deposit balances and mix changes and
lending margin pressure.
|
-
|
Bank
net interest margin (NIM) of 3.04% was 19 basis points higher than
2022 with the increase reflecting favourable yield curve movements
partially offset by lending margin pressure, reduced deposits
balances and mix changes.
|
-
|
Other
operating expenses of £7.6 billion increased by £339
million, or 4.6%, compared with 2022. The cost:income ratio (excl.
litigation and conduct) was 51.8% for 2023 compared with 55.5% for
2022.
|
-
|
A net
impairment charge of £578 million for 2023, or 15 basis points
of gross customer loans, principally reflects continued low and
stable levels of stage 3 defaults across the portfolio and good
book charges related to unsecured lending.
|
-
|
Net
loans to customers excluding central items increased by £8.9
billion, or 2.6%, to £355.6 billion during 2023 reflecting a
£7.6 billion increase in Retail Banking and £2.0 billion
in Commercial & Institutional as term loan facilities and
private financing increased. Retail Banking gross new mortgage
lending was £29.8 billion for the year compared with
£41.4 billion in 2022 reflecting the smaller mortgage
market.
|
-
|
Up to
31 December 2023 we have provided £61.9 billion against our
target to provide £100 billion climate and sustainable funding
and financing between 1 July 2021 and the end of 2025.
|
-
|
Customer deposits
excluding central items reduced £13.8 billion, or 3.2%, during
2023 to £419.1 billion principally reflecting the competitive
environment for deposits and an overall market liquidity
contraction. Term balances now account for 16% of our book, up from
15% at the end of the third quarter and 6% at Q4 2022.
|
-
|
The
loan:deposit ratio (LDR) (excl. repos and reverse repos) was 84%
with customer deposits exceeding net loans to customers by around
£66 billion.
|
-
|
The
liquidity coverage ratio (LCR) of 144%, representing £45.4
billion headroom above 100% minimum requirement, decreased by 1
percentage point compared with 2022.
|
-
|
TNAV
per share increased by 28 pence in the year to 292 pence primarily
reflecting the attributable profit for the period and movements in
cash flow hedging reserves as rate expectations
lowered.
|
-
|
A final
dividend of 11.5 pence per share is proposed and we intend to
commence an on-market buyback programme of up to £300 million
in 2024, taking total distributions deducted from capital in the
year to £3.6 billion, or around 40 pence per
share.
|
-
|
Common
Equity Tier 1 (CET1) ratio of 13.4% was 80 basis points lower than
31 December 2022 principally reflecting distributions of c.200
basis points and increased RWAs of c.50 basis points partially
offset by the attributable profit, c.220 basis points.
|
-
|
RWAs of
£183.0 billion increased £6.9 billion during the year
primarily due to lending growth in Commercial & Institutional
and a £3.0 billion increase due to CRD IV model updates
partially offset by a £4.0 billion reduction as we continue
our exit from the Republic of Ireland.
|
-
|
to
achieve a return on tangible equity of around 12%.
|
-
|
income
excluding notable items to be in the range of £13.0-13.5
billion.
|
-
|
Group
operating costs, excluding litigation and conduct costs, to be
broadly stable compared with 2023.
|
-
|
our
loan impairment rate to be below 20 basis points.
|
-
|
to
achieve a return on tangible equity for the Group of greater than
13%.
|
-
|
target
a CET1 ratio in the range of 13-14%.
|
-
|
expect
RWAs to be around £200 billion at the end of 2025, including
the impact of Basel 3.1, however this remains subject to final
rules and approval.
|
-
|
expect
to pay ordinary dividends of around 40% of attributable profit and
maintain capacity to participate in directed buybacks from the UK
Government, recognising that any exercise of this authority would
be dependent upon HMT's intentions. We will also consider further
on-market buybacks as appropriate.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
Summary consolidated income statement
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Net
interest income
|
11,049
|
9,842
|
|
2,638
|
2,685
|
2,868
|
Non-interest
income
|
3,703
|
3,314
|
|
899
|
803
|
840
|
Total income
|
14,752
|
13,156
|
|
3,537
|
3,488
|
3,708
|
Litigation
and conduct costs
|
(355)
|
(385)
|
|
(113)
|
(134)
|
(91)
|
Other
operating expenses
|
(7,641)
|
(7,302)
|
|
(2,041)
|
(1,793)
|
(2,047)
|
Operating expenses
|
(7,996)
|
(7,687)
|
|
(2,154)
|
(1,927)
|
(2,138)
|
Profit before impairment losses
|
6,756
|
5,469
|
|
1,383
|
1,561
|
1,570
|
Impairment
losses
|
(578)
|
(337)
|
|
(126)
|
(229)
|
(144)
|
Operating profit before tax
|
6,178
|
5,132
|
|
1,257
|
1,332
|
1,426
|
Tax
(charge)/credit
|
(1,434)
|
(1,275)
|
|
5
|
(378)
|
(46)
|
Profit from continuing operations
|
4,744
|
3,857
|
|
1,262
|
954
|
1,380
|
(Loss)/profit from discontinued operations, net of tax
|
(112)
|
(262)
|
|
26
|
(30)
|
(56)
|
Profit for the period
|
4,632
|
3,595
|
|
1,288
|
924
|
1,324
|
Performance key metrics and ratios
|
|
|
|
|
|
|
Notable items within total income (1)
|
£413m
|
£95m
|
|
£95m
|
(£26m)
|
(£58m)
|
Total income excluding notable items (1)
|
£14,339m
|
£13,061m
|
|
£3,442m
|
£3,514m
|
£3,766m
|
Bank net interest margin (1)
|
3.04%
|
2.85%
|
|
2.86%
|
2.94%
|
3.20%
|
Bank average interest earning assets (1)
|
£363bn
|
£345bn
|
|
£367bn
|
£363bn
|
£356bn
|
Cost:income ratio (excl. litigation and conduct) (1)
|
51.8%
|
55.5%
|
|
57.7%
|
51.4%
|
55.2%
|
Loan impairment rate (1)
|
15bps
|
9bps
|
|
13bps
|
24bps
|
16bps
|
Profit
attributable to ordinary shareholders
|
£4,394m
|
£3,340m
|
|
£1,229m
|
£866m
|
£1,262m
|
Total
earnings per share attributable to ordinary
|
|
|
|
|
|
|
shareholders - basic
|
47.9p
|
33.8p
|
|
13.9p
|
9.8p
|
13.1p
|
Return on tangible equity (RoTE) (1)
|
17.8%
|
12.3%
|
|
20.1%
|
14.7%
|
20.6%
|
Climate and sustainable funding and financing (2)
|
£29.3bn
|
£24.5bn
|
|
£8.7bn
|
£4.6bn
|
£6.4bn
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
||
|
|
|
|
31 December
|
30
September
|
31
December
|
|
|
|
|
2023
|
2023
|
2022
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Balance sheet
|
|
|
|
|
|
|
Total
assets
|
|
|
|
692.7
|
717.1
|
720.1
|
Loans
to customers - amortised cost
|
|
|
|
381.4
|
377.3
|
366.3
|
Loans to customers excluding central items (1,3)
|
|
|
|
355.6
|
354.5
|
346.7
|
Loans
to customers and banks - amortised cost and FVOCI
|
|
|
|
392.0
|
389.5
|
377.1
|
Total impairment provisions (4)
|
|
|
|
3.6
|
3.5
|
3.4
|
Expected
credit loss (ECL) coverage ratio
|
|
|
|
0.93%
|
0.94%
|
0.91%
|
Assets under management and administration
(AUMA) (1)
|
|
|
|
40.8
|
38.2
|
33.4
|
Customer
deposits
|
|
|
|
431.4
|
435.9
|
450.3
|
Customer deposits excluding central items (1,3)
|
|
|
|
419.1
|
423.5
|
432.9
|
Liquidity and funding
|
|
|
|
|
|
|
Liquidity
coverage ratio (LCR)
|
|
|
|
144%
|
145%
|
145%
|
Liquidity portfolio (5)
|
|
|
|
223
|
236
|
233
|
Net
stable funding ratio (NSFR)
|
|
|
|
133%
|
138%
|
145%
|
Loan:deposit ratio (excl. repos and reverse
repos) (1)
|
|
|
|
84%
|
83%
|
79%
|
Total
wholesale funding
|
|
|
|
80
|
82
|
74
|
Short-term
wholesale funding
|
|
|
|
28
|
29
|
21
|
Capital and leverage
|
|
|
|
|
|
|
Common Equity Tier 1 (CET1) ratio (6)
|
|
|
|
13.4%
|
13.5%
|
14.2%
|
Total capital ratio (6)
|
|
|
|
18.4%
|
18.7%
|
19.3%
|
Pro forma CET1 ratio (excl. foreseeable items) (7)
|
|
|
|
14.2%
|
14.1%
|
15.4%
|
Risk-weighted
assets (RWAs)
|
|
|
|
183.0
|
181.6
|
176.1
|
UK
leverage ratio
|
|
|
|
5.0%
|
5.1%
|
5.4%
|
Tangible net asset value (TNAV) per ordinary
share (1,8)
|
|
|
|
292p
|
271p
|
264p
|
Number of ordinary shares in issues (millions) (8)
|
|
|
|
8,792
|
8,871
|
9,659
|
(1)
|
Refer to the Non-IFRS financial
measures appendix for details of the basis of preparation and
reconciliation of non-IFRS financial measures and performance
metrics.
|
(2)
|
NatWest Group uses its climate and
sustainable funding and financing inclusion (CSFFI) criteria to
determine the assets, activities and companies that are eligible to
be included within its climate and sustainable funding and
financing target. This includes both provision of committed (on and
off-balance sheet) funding and financing, including provision of
services for underwriting issuances and private
placements.
|
(3)
|
Central items includes Treasury
repo activity and Ulster Bank Republic of
Ireland.
|
(4)
|
Includes £0.1 billion relating
to off-balance sheet exposures (30 September 2023 - £0.1
billion; 31 December 2022 - £0.1
billion).
|
(5)
|
Comparative periods have been
re-presented on an LCR basis in line with the Liquidity portfolio
definition as of 31 December 2023.
|
(6)
|
Refer to the Capital, liquidity and
funding section for details of the basis of
preparation.
|
(7)
|
The pro forma CET1 ratio at 31
December 2023 excludes foreseeable items of £1,538 million:
£1,013 million for ordinary dividends and £525 million
foreseeable charges. (30 September 2023 excludes foreseeable items
of £1,004 million: £643 million for ordinary dividends
and £361 million foreseeable charges. 31 December 2022
excludes foreseeable items of £2,132 million: £967
million for ordinary dividends and £1,165 million foreseeable
charges).
|
(8)
|
The number of ordinary shares in
issue excludes own shares held.
|
Financial performance
Total
income increased by 12.1% to £14.8 billion compared with 2022.
Total income excluding notable items of £14.3 billion was 9.8%
higher than the prior year principally driven by lending growth,
higher income in our markets business and favourable yield curve
movements partially offset by the change in deposit mix from
non-interest bearing to interest bearing and lower deposit
balances.
Bank
NIM of 3.04% was 19 basis points higher than 2022 primarily due to
benefits from yield curve movements, net of changes in deposit mix,
partially offset by lending margin pressure. Q4 2023 Bank NIM was
2.86%, 8 basis points down in the quarter reflecting asset margin
pressure of 2 basis points and deposit balance and mix impacts of 6
basis points.
Total operating expenses were £309 million higher than 2022.
Other operating expenses were £339 million, or 4.6%, higher
for the year at £7.6 billion, in line with our full year
guidance. The increase was principally due to higher staff costs,
including a payment to support our colleagues with cost of living
challenges and inflationary pressures on utility and contract
costs. In addition, depreciation and amortisation costs increased
by £101 million reflecting capitalised technology investment
and a property impairment. FTE(1) reduced by c.300 to c.61,200 principally
reflecting reductions as we continue our exit from the Republic of
Ireland and automation and simplification in Retail Banking,
partially offset by investment in technology and data
roles.
A net
impairment charge of £578 million, or 15 basis points of gross
customer loans, primarily reflects continued low and stable levels
of stage 3 defaults across the portfolio and good book charges
related to unsecured lending. Compared with 2022, our ECL provision
increased by £0.2 billion to £3.6 billion and our ECL
coverage ratio has increased from 0.91% to 0.93%. We retain post
model adjustments of £0.4 billion related to economic
uncertainty, or 11.8% of total impairment provisions. Whilst we are
comfortable with the strong credit performance of our book, we will
assess this position regularly and are closely monitoring the
impacts of inflationary pressures on the UK economy and our
customers.
As a
result, we are pleased to report an attributable profit for 2023 of
£4.4 billion, with earnings per share of 47.9 pence and a RoTE
of 17.8%, above our guided range, the profit for the year includes
a deferred tax asset write back of £385 million in respect of
tax losses.
Net
loans to customers excluding central items increased by £8.9
billion in the year largely reflecting a £7.6 billion increase
in Retail Banking and £2.0 billion of growth in Commercial
& Institutional due to an increase in term loan facilities and
private financing within Corporate & Institutions, net of
£2.7 billion of UK Government scheme repayments. Retail
Banking mortgage lending increased by £5.9 billion, with gross
new mortgage lending of £29.8 billion in 2023 compared with
£41.4 billion in 2022 reflecting the smaller mortgage market,
and unsecured lending increased by £2.0 billion with continued
strong customer demand. Private Banking net loans to customers
decreased by £0.7 billion driven by higher repayments on
mortgages.
Up to
31 December 2023 we have provided £61.9 billion against our
target to provide £100 billion climate and sustainable funding
and financing between 1 July 2021 and the end of 2025. As part of
this we aim to provide at least £10 billion in lending for
residential properties with Energy Performance Certificate (EPC)
ratings A and B between 1 January 2023 and the end of 2025. During
2023 we provided £29.3 billion climate and sustainable funding
and financing, which included £3.9 billion in lending for
residential properties with EPC ratings A and B.
Customer
deposits excluding central items decreased by £13.8 billion
during 2023 to £419.1 billion principally reflecting the
competitive environment for deposits and an overall market
liquidity contraction. In the fourth quarter customer deposit
balances reduced by £4.5 billion largely within Corporate
& Institutions as a result of active management, with growth in
Retail Banking and Private Banking partially offsetting. We have
continued to see the mix of our book shift towards interest bearing
and term balances, with non-interest bearing balances now
accounting for 34% of balances and term at 16%, although the
movement was broadly in line with our expectations and the guidance
we provided at our Q3 results announcement.
TNAV
per share increased by 28 pence in the year to 292 pence primarily
reflecting the attributable profit for the period and an £872
million movement in cash flow hedging reserves as rate expectations
lowered, partially offset by the impact of distributions.
Intangible assets increased by £498 million in the year
primarily reflecting software capitalisation and the acquisition of
Cushon.
|
Business performance summary continued
Capital and leverage
|
The
CET1 ratio remains strong at 13.4%, or 13.2% excluding IFRS 9
transitional relief. The 80 basis point reduction compared with 31
December 2022 principally reflected distributions deducted from
capital of c.200 basis points, and increased RWAs of c.50 basis
points, partially offset by the attributable profit, NatWest
Group's minimum requirement for own funds and eligible liabilities
(MREL) ratio was 30.5%.
RWAs
increased by £6.9 billion during 2023 to £183.0 billion
principally reflecting lending growth in Commercial &
Institutional and a £3.0 billion uplift associated with CRD IV
model updates, partially offset by a £4.0 billion reduction as
we continue our exit from the Republic of Ireland.
|
Funding and liquidity
|
The LCR
of 144%, representing £45.4 billion headroom above 100%
minimum requirement, decreased by 1 percentage point during the
year, driven by growth in customer lending and reduced customer
deposits offset by an increase in wholesale funding and UBIDAC
asset sale.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total
income
|
5,931
|
5,646
|
|
1,369
|
1,442
|
1,617
|
Operating
expenses
|
(2,828)
|
(2,593)
|
|
(681)
|
(780)
|
(658)
|
of which: Other
operating expenses
|
(2,711)
|
(2,484)
|
|
(647)
|
(721)
|
(670)
|
Impairment
losses
|
(465)
|
(229)
|
|
(103)
|
(169)
|
(87)
|
Operating
profit
|
2,638
|
2,824
|
|
585
|
493
|
872
|
|
|
|
|
|
|
|
Return on equity (1)
|
23.8%
|
28.6%
|
|
20.2%
|
17.5%
|
34.7%
|
Net interest margin (1)
|
2.68%
|
2.74%
|
|
2.39%
|
2.56%
|
3.02%
|
Cost:income ratio (excl. litigation and conduct) (1)
|
45.7%
|
44.0%
|
|
47.3%
|
50.0%
|
41.4%
|
Loan impairment rate (1)
|
22bps
|
11bps
|
|
20bps
|
33bps
|
17bps
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
||
|
|
|
|
31 December
|
30
September
|
31
December
|
|
|
|
|
2023
|
2023
|
2022
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net
loans to customers (amortised cost)
|
|
|
|
205.2
|
205.2
|
197.6
|
Customer
deposits
|
|
|
|
188.0
|
184.5
|
188.4
|
RWAs
|
|
|
|
61.6
|
58.9
|
54.7
|
−
|
Total
income was £285 million, or 5.0%, higher than 2022 reflecting
higher lending growth and the impact of rate rises on deposit
income, partly offset by mortgage margin dilution, higher treasury
funding costs and impact of the deposit balance mix shift from
non-interest bearing current accounts to interest bearing term
balances.
|
−
|
Net
interest margin was 6 basis points lower than 2022 largely
reflecting the movements impacting total income, partly offset by
the impact of pass-through management and hedges on deposit income
as interest rates increased.
|
−
|
Other
operating expenses were £227 million, or 9.1%, higher than
2022 reflecting higher pay awards to support our colleagues with
cost of living challenges, property lease termination losses,
increased restructuring costs and continued investment in the
business. This was partly offset by savings from a 6.3% reduction
in headcount.
|
−
|
An
impairment charge of £465 million in 2023, £236 million
higher than 2022, reflecting higher stage 3 inflows and increased
good book charges driven by both lending growth and normalisation
of risk parameters.
|
−
|
Net
loans to customers increased by £7.6 billion, or 3.8%, in 2023
reflecting mortgage growth of £5.9 billion, with gross new
mortgage lending of £29.8 billion, representing flow share of
around 13%. Cards balances increased by £1.5 billion and
personal advances increased by £0.5 billion in 2023 with
continued strong customer demand.
|
−
|
Customer
deposits decreased by £0.4 billion in 2023 reflecting lower
current accounts of £10.2 billion, partly offset by higher
fixed term deposits driving savings growth of £9.8 billion.
Term deposits now represents 11% of deposit balances.
|
−
|
RWAs
increased by £6.9 billion, or 12.6%, in 2023 driven by both
lending growth in the period and IRB temporary model
adjustments.
|
−
|
Total
income was £73 million, or 5.1%, lower than Q3 2023 reflecting
timing of pass-through on interest bearing savings accounts,
deposit balance mix shift from non-interest bearing to interest
bearing balances, continued mortgage margin dilution, as well as
higher treasury funding costs, partly offset by increasing
structural hedge benefit and higher fee income.
|
−
|
Net
interest margin was 17 basis points lower than Q3 2023 largely
reflecting timing of pass-through on interest bearing savings
accounts, deposit mix shift from non-interest bearing to interest
bearing balances and mortgage margin dilution, partly offset by
increasing structural hedge benefit.
|
−
|
Other
operating expenses were £74 million, or 10.3%, lower than Q3
2023 reflecting non repeat of property lease termination losses,
partly offset by higher restructuring costs and the inclusion of
the annual UK bank levy charge.
|
−
|
An
impairment charge of £103 million in Q4 2023 largely reflects
stage 3 defaults, which remained broadly stable. Benefits from the
Q4 IFRS 9 multiple economic scenarios (MES) update more than offset
the impact of growth in unsecured lending, leading to lower good
book charges in the quarter.
|
−
|
Net
loans to customers balances were in line with Q3 2023 reflecting
lower mortgage balances of £0.4 billion with higher
redemptions in the quarter offset by increases in Cards balances of
£0.3 billion and personal advances of £0.1 billion with
continued strong customer demand. Mortgage gross new lending of
£5.3 billion, representing flow share of around 10% in the
quarter, down from around 13% in Q3 2023 as we sought to actively
manage the balance sheet.
|
−
|
Customer
deposits increased by £3.5 billion, or 1.9%, in Q4 2023
reflecting growth in fixed term savings and instant access savings
growth of £5.4 billion, partially offset by lower current
account balances of £1.9 billion.
|
−
|
RWAs
increased by £2.7 billion, or 4.6%, in Q4 2023 primarily due
to IRB temporary model adjustments.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total
income
|
990
|
1,056
|
|
209
|
214
|
310
|
Operating
expenses
|
(685)
|
(622)
|
|
(206)
|
(157)
|
(198)
|
of which: Other operating
expenses
|
(676)
|
(610)
|
|
(208)
|
(157)
|
(188)
|
Impairment
(losses)/releases
|
(14)
|
2
|
|
(5)
|
2
|
(2)
|
Operating
profit/(loss)
|
291
|
436
|
|
(2)
|
59
|
110
|
|
|
|
|
|
|
|
Return on equity (1)
|
14.8%
|
24.5%
|
|
(1.8%)
|
11.7%
|
24.2%
|
Net interest margin (1)
|
3.74%
|
4.07%
|
|
2.94%
|
3.02%
|
5.19%
|
Cost:income ratio (excl. litigation and conduct) (1)
|
68.3%
|
57.8%
|
|
99.5%
|
73.4%
|
60.6%
|
Loan impairment rate (1)
|
8bps
|
(1)bp
|
|
11bps
|
(4)bps
|
4bps
|
AUM net flows (£bn) (1)
|
1.3
|
2.0
|
|
0.3
|
-
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
||
|
|
|
|
31 December
|
30
September
|
31
December
|
|
|
|
|
2023
|
2023
|
2022
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net
loans to customers (amortised cost)
|
|
|
|
18.5
|
18.8
|
19.2
|
Customer
deposits
|
|
|
|
37.7
|
37.2
|
41.2
|
RWAs
|
|
|
|
11.2
|
11.6
|
11.2
|
Assets Under Management (AUMs) (1)
|
|
|
|
31.7
|
29.8
|
28.3
|
Assets Under Administration (AUAs) (1)
|
|
|
|
9.1
|
8.4
|
5.1
|
Assets Under Management and Administration
(AUMA) (1)
|
|
|
40.8
|
38.2
|
33.4
|
−
|
Total
income was £66 million, or 6.3%, lower than 2022 reflecting
lower deposit balances with mix shifting from non-interest bearing
to interest bearing balances, as customers migrated to savings
products offering higher returns, combined with reduced lending
volumes and mortgage margin dilution.
|
−
|
Net
interest margin was 33 basis points lower than 2022 reflecting
lower deposit balances with mix shift from non-interest bearing to
interest bearing balances and an increase in pass-through of
interest rate increases to customers, partly offset by the impact
of rate rises on deposit income.
|
−
|
Other
operating expenses were £66 million, or 10.8%, higher than
2022 reflecting an increase in pay awards to support our colleagues
with cost of living challenges, an additional VAT charge, property
revaluation costs and strategic spend to increase operational
efficiency.
|
−
|
The
impairment charge of £14 million in 2023, compared with a
£2 million release in 2022, largely reflects non-recurrence of
good book releases in 2022 whilst overall impairments remain at low
levels.
|
−
|
Net
loans to customers decreased by £0.7 billion, or 3.6%, in 2023
as higher levels of customer repayments more than offset gross new
lending.
|
−
|
Customer
deposits decreased by £3.5 billion, or 8.5%, in 2023
reflecting an increase in competition and higher tax outflows in Q1
2023. Changes in customer behaviour drove a shift in mix of
deposits with a decrease in instant access savings and current
accounts, and a switch to term and notice accounts which now
represent 30% of deposit balances.
|
−
|
AUMA
increased by £7.4 billion to £40.8 billion, reflecting
net inflows of £1.3 billion for AUM, and £0.4 billion
AUA: strong market performance of £3.4 billion and £2.3
billion Cushon balances following the acquisition in June
2023.
|
−
|
Total
income was £5 million, or 2.3%, lower than Q3 2023 reflecting
the impacts of changes in deposit product mix as customers continue
to shift from non-interest bearing to interest bearing balances
along with lower lending volumes offset in part by an increase in
deposit volumes and improved mortgage margins.
|
−
|
Net
interest margin was 8 basis points lower than Q3 2023 largely
reflecting the continued change in the deposit book mix partially
offset by improved lending margins and an increase in deposit
volumes.
|
−
|
Other
operating expenses were £51 million, or 32.5%, higher than Q3
2023 primarily reflecting the inclusion of the annual UK bank levy
charge, an
additional VAT charge and strategic spend to increase operational
efficiency.
|
−
|
A net
impairment charge of £5 million in Q4 2023 largely reflects
good book charges whilst stage 3 defaults remain at low
levels.
|
−
|
Net
loans to customers decreased by £0.3 billion, or 1.6%, in Q4
2023 driven by higher customer mortgage
repayments.
|
−
|
Customer
deposits increased by £0.5 billion, or 1.3%, compared with Q3
2023 driven by seasonal increases in instant access, partially
offset by a reduction in current accounts.
|
−
|
AUMA
increased by £2.6 billion in Q4 2023, driven by new inflows of
£0.3 billion AUM and positive market movements of £2.1
billion.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Net
interest income
|
5,044
|
4,171
|
|
1,269
|
1,271
|
1,276
|
Non-interest
income
|
2,377
|
2,242
|
|
563
|
570
|
543
|
Total
income
|
7,421
|
6,413
|
|
1,832
|
1,841
|
1,819
|
|
|
|
|
|
|
|
Operating
expenses
|
(4,091)
|
(3,744)
|
|
(1,092)
|
(1,012)
|
(1,031)
|
of which: Other operating
expenses
|
(3,867)
|
(3,563)
|
|
(1,014)
|
(960)
|
(989)
|
Impairment
losses
|
(94)
|
(122)
|
|
(15)
|
(59)
|
(62)
|
Operating
profit
|
3,236
|
2,547
|
|
725
|
770
|
726
|
|
|
|
|
|
|
|
Return on equity (1)
|
15.4%
|
12.2%
|
|
13.5%
|
14.7%
|
13.7%
|
Net interest margin (1)
|
3.84%
|
3.31%
|
|
3.77%
|
3.88%
|
3.89%
|
Cost:income ratio (excl. litigation and conduct) (1)
|
52.1%
|
55.6%
|
|
55.3%
|
52.1%
|
54.4%
|
Loan impairment rate (1)
|
7bps
|
9bps
|
|
4bps
|
18bps
|
19bps
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
||
|
|
|
|
31 December
|
30
September
|
31
December
|
|
|
|
|
2023
|
2023
|
2022
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net
loans to customers (amortised cost)
|
|
|
|
131.9
|
130.5
|
129.9
|
Customer
deposits
|
|
|
|
193.4
|
201.8
|
203.3
|
Funded assets (1)
|
|
|
|
306.9
|
325.2
|
306.3
|
RWAs
|
|
|
|
107.4
|
107.9
|
103.2
|
−
|
Total
income was £1,008 million, or 15.7%, higher than 2022
primarily reflecting higher deposit returns supported by interest
rate rises, growth in lending and higher markets income partly
offset by higher funding costs.
|
−
|
Net
interest margin was 53 basis points higher than 2022 reflecting
higher deposit returns partly offset by higher funding
costs.
|
−
|
Other
operating expenses were £304 million, or 8.5%, higher than
2022 reflecting higher pay awards to support our colleagues with
cost of living challenges and continued investment in the
business.
|
−
|
An
impairment charge of £94 million in 2023, £28 million
lower than 2022, reflecting good book releases and lower stage 3
charges.
|
−
|
Net
loans to customers increased by £2.0 billion, or 1.5%, in 2023
reflecting an increase of £4.7 billion from growth in private
financing activity, an increase in term loan facilities including
an increase in revolving credit utilisations within Corporate &
Institutions and asset finance growth within Commercial Mid-market,
partly offset by £2.7 billion of UK Government scheme
repayments.
|
−
|
Customer
deposits decreased by £9.9 billion, or 4.9%, in 2023 primarily
due to overall market liquidity contraction, particularly in
Commercial Mid-market. We have seen strong growth in term deposits
balances in 2023 which now represent 19% of deposit balances.
Across the year we continued to see a reduction in non-interest
bearing balances which now represent 36% of deposit
balances.
|
−
|
RWAs
increased by £4.2 billion, or 4.1%, in 2023 primarily
reflecting lending facility growth, partly offset by capital
optimisation activity and foreign exchange benefits.
|
−
|
Total
income was broadly stable compared to Q3 2023.
|
−
|
Net
interest margin was 11 basis points lower than Q3 2023 largely
reflecting non-repeat of one-off items in Q3 2023, deposit mix and
higher funding costs.
|
−
|
Other
operating expenses were £54 million, or 5.6%, higher than Q3
2023 largely due to the inclusion of the annual bank levy
charge.
|
−
|
An
impairment charge of £15 million in Q4 2023 reflects continued
low levels of stage 3 charges largely offset by good book releases
as a result of the Q4 2023 MES update.
|
−
|
Net
loans to customers increased by £1.4 billion, or 1.1%, in Q4
2023 reflecting an increase of £2.1 billion largely due to
strong performance from private financing activity within Corporate
& Institutions, partly offset by UK Government scheme
repayments of £0.7 billion.
|
−
|
Customer
deposits decreased by £8.4 billion, or 4.2%, in Q4 2023
primarily due to reductions in Corporate & Institutions as we
managed down low value deposits.
|
−
|
RWAs
decreased by £0.5 billion, or 0.5%, in Q4 2023 primarily due
to lower market risk, lower traded risk and foreign exchange
benefits, partially offset by lending facility growth and changes
in book mix.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
|
Total
income
|
410
|
41
|
|
127
|
(9)
|
(38)
|
Operating expenses (1)
|
(392)
|
(728)
|
|
(175)
|
22
|
(251)
|
of which:
Other operating expenses
|
(387)
|
(645)
|
|
(172)
|
45
|
(200)
|
of which:
Ulster Bank RoI direct expenses
|
(275)
|
(433)
|
|
(69)
|
(43)
|
(213)
|
Impairment
(losses)/releases
|
(5)
|
12
|
|
(3)
|
(3)
|
7
|
Operating
profit/(loss)
|
13
|
(675)
|
|
(51)
|
10
|
(282)
|
of which:
Ulster Bank RoI
|
(473)
|
(723)
|
|
(124)
|
(54)
|
(354)
|
|
|
|
|
As at
|
||
|
|
|
|
31 December
|
30
September
|
31
December
|
|
|
|
|
2023
|
2023
|
2022
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost) (2)
|
|
|
|
25.8
|
22.8
|
19.6
|
Customer
deposits
|
|
|
|
12.3
|
12.4
|
17.4
|
RWAs
|
|
|
|
2.8
|
3.2
|
7.0
|
−
|
Total
income was £369 million higher than 2022 primarily reflecting
notable items including foreign exchange recycling gains of
£484 million, lower losses on redemption of own debt, business
growth fund gains and lower losses on liquidity asset bond sales
partially offset by lower gains on interest and foreign exchange
risk management derivatives not in accounting hedge relationships
and losses associated with property lease
terminations.
|
−
|
Other
operating expenses were £258 million, or 40.0%, lower than
2022 principally reflecting the reduction in cost due to our
withdrawal of operations from the Republic of Ireland.
|
−
|
Net
loans to customers increased by £6.2 billion, to £25.8
billion, over the year mainly due to reverse repo activity in
Treasury, combined with withdrawal of our operations from the
Republic of Ireland.
|
−
|
Customer
deposits decreased by £5.1 billion 2023 primarily reflecting
our withdrawal of our operations from the Republic of Ireland.
Ulster Bank RoI customer deposit balances were £0.2 billion as
at Q4 2023.
|
−
|
Total
income was £136 million higher than Q3 2023 primarily
reflecting notable items including foreign exchange recycling gains
and losses associated with property lease terminations in Q3 2023
not repeated in this quarter, partially offset with lower gains on
interest and foreign exchange risk management derivatives not in
accounting hedge relationships and lower business growth fund
gains.
|
−
|
Net
loans to customers increased by £3.0 billion in Q4 2023 mainly
due to reverse repo activity in Treasury.
|
−
|
Customer
deposits decreased £0.1 billion in the quarter mainly due to
repo activity in Treasury.
|
|
Year ended 31 December 2023
|
||||
|
|
|
|
|
Total
|
|
Retail
|
Private
|
Commercial
|
Central items
|
NatWest
|
|
Banking
|
Banking
|
& Institutional
|
& other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
Income statement
|
|
|
|
|
|
Net
interest income
|
5,496
|
710
|
5,044
|
(201)
|
11,049
|
Non-interest
income
|
435
|
280
|
2,377
|
611
|
3,703
|
Total income
|
5,931
|
990
|
7,421
|
410
|
14,752
|
Direct
expenses
|
(815)
|
(255)
|
(1,510)
|
(5,061)
|
(7,641)
|
Indirect
expenses
|
(1,896)
|
(421)
|
(2,357)
|
4,674
|
-
|
Other
operating expenses
|
(2,711)
|
(676)
|
(3,867)
|
(387)
|
(7,641)
|
Litigation
and conduct costs
|
(117)
|
(9)
|
(224)
|
(5)
|
(355)
|
Operating expenses
|
(2,828)
|
(685)
|
(4,091)
|
(392)
|
(7,996)
|
Operating profit before impairment losses (1)
|
3,103
|
305
|
3,330
|
18
|
6,756
|
Impairment
losses
|
(465)
|
(14)
|
(94)
|
(5)
|
(578)
|
Operating profit (1)
|
2,638
|
291
|
3,236
|
13
|
6,178
|
|
|
|
|
|
|
Income
excluding notable items
|
5,931
|
990
|
7,420
|
(2)
|
14,339
|
|
|
|
|
|
|
Additional information
|
|
|
|
|
|
Return on tangible equity (1)
|
na
|
na
|
na
|
na
|
17.8%
|
Return on equity (1)
|
23.8%
|
14.8%
|
15.4%
|
nm
|
na
|
Cost:income ratio (excl. litigation and conduct) (1)
|
45.7%
|
68.3%
|
52.1%
|
nm
|
51.8%
|
Total
assets (£bn)
|
228.7
|
26.9
|
385.0
|
52.1
|
692.7
|
Funded assets (£bn) (1)
|
228.7
|
26.9
|
306.9
|
51.3
|
613.8
|
Net
loans to customers - amortised cost (£bn)
|
205.2
|
18.5
|
131.9
|
25.8
|
381.4
|
Loan impairment rate (1)
|
22bps
|
8bps
|
7bps
|
nm
|
15bps
|
Impairment
provisions (£bn)
|
(1.9)
|
(0.1)
|
(1.5)
|
(0.1)
|
(3.6)
|
Impairment
provisions - stage 3 (£bn)
|
(1.1)
|
-
|
(0.9)
|
-
|
(2.0)
|
Customer
deposits (£bn)
|
188.0
|
37.7
|
193.4
|
12.3
|
431.4
|
Risk-weighted
assets (RWAs) (£bn)
|
61.6
|
11.2
|
107.4
|
2.8
|
183.0
|
RWA
equivalent (RWAe) (£bn)
|
61.6
|
11.2
|
108.6
|
3.6
|
185.0
|
Employee
numbers (FTEs - thousands)
|
13.3
|
2.3
|
12.5
|
33.1
|
61.2
|
Third party customer asset rate (1)
|
3.23%
|
4.54%
|
6.15%
|
nm
|
nm
|
Third party customer funding rate (1)
|
(1.42%)
|
(2.17%)
|
(1.40%)
|
nm
|
nm
|
Bank average interest earning assets (£bn) (1)
|
205.4
|
19.0
|
131.5
|
na
|
362.9
|
Bank net interest margin (1)
|
2.68%
|
3.74%
|
3.84%
|
na
|
3.04%
|
|
Year
ended 31 December 2022
|
||||
|
|
|
|
|
Total
|
|
Retail
|
Private
|
Commercial
|
Central
items
|
NatWest
|
|
Banking
|
Banking
|
&
Institutional
|
&
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
Income statement
|
|
|
|
|
|
Net
interest income
|
5,224
|
777
|
4,171
|
(330)
|
9,842
|
Non-interest
income
|
422
|
279
|
2,242
|
371
|
3,314
|
Total income
|
5,646
|
1,056
|
6,413
|
41
|
13,156
|
Direct
expenses
|
(709)
|
(235)
|
(1,506)
|
(4,852)
|
(7,302)
|
Indirect
expenses
|
(1,775)
|
(375)
|
(2,057)
|
4,207
|
-
|
Other
operating expenses
|
(2,484)
|
(610)
|
(3,563)
|
(645)
|
(7,302)
|
Litigation
and conduct costs
|
(109)
|
(12)
|
(181)
|
(83)
|
(385)
|
Operating expenses
|
(2,593)
|
(622)
|
(3,744)
|
(728)
|
(7,687)
|
Operating profit/(loss) before impairment
losses/releases (1)
|
3,053
|
434
|
2,669
|
(687)
|
5,469
|
Impairment
(losses)/releases
|
(229)
|
2
|
(122)
|
12
|
(337)
|
Operating
profit/(loss) (1)
|
2,824
|
436
|
2,547
|
(675)
|
5,132
|
|
|
|
|
|
|
Income
excluding notable items
|
5,646
|
1,056
|
6,416
|
(57)
|
13,061
|
|
|
|
|
|
|
Additional information
|
|
|
|
|
|
Return on tangible equity (1)
|
na
|
na
|
na
|
na
|
12.3%
|
Return on equity (1)
|
28.6%
|
24.5%
|
12.2%
|
nm
|
na
|
Cost:income ratio (excl. litigation and conduct) (1)
|
44.0%
|
57.8%
|
55.6%
|
nm
|
55.5%
|
Total
assets (£bn)
|
226.4
|
29.9
|
404.8
|
59.0
|
720.1
|
Funded assets (£bn) (1)
|
226.4
|
29.9
|
306.3
|
57.9
|
620.5
|
Net
loans to customers - amortised cost (£bn)
|
197.6
|
19.2
|
129.9
|
19.6
|
366.3
|
Loan impairment rate (1)
|
11bps
|
(1)bp
|
9bps
|
nm
|
9bps
|
Impairment
provisions (£bn)
|
(1.6)
|
(0.1)
|
(1.6)
|
(0.1)
|
(3.4)
|
Impairment
provisions - stage 3 (£bn)
|
(0.9)
|
-
|
(0.7)
|
(0.1)
|
(1.7)
|
Customer
deposits (£bn)
|
188.4
|
41.2
|
203.3
|
17.4
|
450.3
|
Risk-weighted
assets (RWAs) (£bn)
|
54.7
|
11.2
|
103.2
|
7.0
|
176.1
|
RWA
equivalent (RWAe) (£bn)
|
54.7
|
11.2
|
104.6
|
7.5
|
178.0
|
Employee
numbers (FTEs - thousands)
|
14.2
|
2.2
|
12.4
|
32.7
|
61.5
|
Third party customer asset rate (1)
|
2.64%
|
3.01%
|
3.53%
|
nm
|
nm
|
Third party customer funding rate (1)
|
(0.20%)
|
(0.27%)
|
(0.21%)
|
nm
|
nm
|
Bank average interest earning assets (£bn) (1)
|
190.8
|
19.1
|
126.1
|
na
|
345.2
|
Bank net interest margin (1)
|
2.74%
|
4.07%
|
3.31%
|
na
|
2.85%
|
|
Quarter ended 31 December 2023
|
||||
|
|
|
|
|
Total
|
|
Retail
|
Private
|
Commercial
|
Central items
|
NatWest
|
|
Banking
|
Banking
|
& Institutional
|
& other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
Income statement
|
|
|
|
|
|
Net
interest income
|
1,254
|
138
|
1,269
|
(23)
|
2,638
|
Non-interest
income
|
115
|
71
|
563
|
150
|
899
|
Total income
|
1,369
|
209
|
1,832
|
127
|
3,537
|
Direct
expenses
|
(211)
|
(74)
|
(392)
|
(1,364)
|
(2,041)
|
Indirect
expenses
|
(436)
|
(134)
|
(622)
|
1,192
|
-
|
Other
operating expenses
|
(647)
|
(208)
|
(1,014)
|
(172)
|
(2,041)
|
Litigation
and conduct costs
|
(34)
|
2
|
(78)
|
(3)
|
(113)
|
Operating expenses
|
(681)
|
(206)
|
(1,092)
|
(175)
|
(2,154)
|
Operating profit/(loss) before impairment losses (1)
|
688
|
3
|
740
|
(48)
|
1,383
|
Impairment
losses
|
(103)
|
(5)
|
(15)
|
(3)
|
(126)
|
Operating
profit/(loss) (1)
|
585
|
(2)
|
725
|
(51)
|
1,257
|
|
|
|
|
|
|
Income
excluding notable items
|
1,369
|
209
|
1,834
|
30
|
3,442
|
|
|
|
|
|
|
Additional information
|
|
|
|
|
|
Return on tangible equity (1)
|
na
|
na
|
na
|
na
|
20.1%
|
Return on equity (1)
|
20.2%
|
(1.8%)
|
13.5%
|
nm
|
na
|
Cost:income ratio (excl. litigation and conduct) (1)
|
47.3%
|
99.5%
|
55.3%
|
nm
|
57.7%
|
Total
assets (£bn)
|
228.7
|
26.9
|
385.0
|
52.1
|
692.7
|
Funded assets (£bn) (1)
|
228.7
|
26.9
|
306.9
|
51.3
|
613.8
|
Net
loans to customers - amortised cost (£bn)
|
205.2
|
18.5
|
131.9
|
25.8
|
381.4
|
Loan impairment rate (1)
|
20bps
|
11bps
|
4bps
|
nm
|
13bps
|
Impairment
provisions (£bn)
|
(1.9)
|
(0.1)
|
(1.5)
|
(0.1)
|
(3.6)
|
Impairment
provisions - stage 3 (£bn)
|
(1.1)
|
-
|
(0.9)
|
-
|
(2.0)
|
Customer
deposits (£bn)
|
188.0
|
37.7
|
193.4
|
12.3
|
431.4
|
Risk-weighted
assets (RWAs) (£bn)
|
61.6
|
11.2
|
107.4
|
2.8
|
183.0
|
RWA
equivalent (RWAe) (£bn)
|
61.6
|
11.2
|
108.6
|
3.6
|
185.0
|
Employee
numbers (FTEs - thousands)
|
13.3
|
2.3
|
12.5
|
33.1
|
61.2
|
Third party customer asset rate (1)
|
3.50%
|
4.88%
|
6.65%
|
nm
|
nm
|
Third party customer funding rate (1)
|
(1.94%)
|
(3.02%)
|
(1.87%)
|
nm
|
nm
|
Bank average interest earning assets (£bn) (1)
|
208.0
|
18.7
|
133.4
|
na
|
366.5
|
Bank net interest margin (1)
|
2.39%
|
2.94%
|
3.77%
|
na
|
2.86%
|
|
Quarter
ended 30 September 2023
|
||||
|
|
|
|
|
Total
|
|
Retail
|
Private
|
Commercial
|
Central
items
|
NatWest
|
|
Banking
|
Banking
|
&
Institutional
|
&
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
Income statement
|
|
|
|
|
|
Net
interest income
|
1,334
|
144
|
1,271
|
(64)
|
2,685
|
Non-interest
income
|
108
|
70
|
570
|
55
|
803
|
Total income
|
1,442
|
214
|
1,841
|
(9)
|
3,488
|
Direct
expenses
|
(206)
|
(63)
|
(377)
|
(1,147)
|
(1,793)
|
Indirect
expenses
|
(515)
|
(94)
|
(583)
|
1,192
|
-
|
Other
operating expenses
|
(721)
|
(157)
|
(960)
|
45
|
(1,793)
|
Litigation
and conduct costs
|
(59)
|
-
|
(52)
|
(23)
|
(134)
|
Operating expenses
|
(780)
|
(157)
|
(1,012)
|
22
|
(1,927)
|
Operating profit before impairment
losses/releases (1)
|
662
|
57
|
829
|
13
|
1,561
|
Impairment
(losses)/releases
|
(169)
|
2
|
(59)
|
(3)
|
(229)
|
Operating profit (1)
|
493
|
59
|
770
|
10
|
1,332
|
|
|
|
|
|
|
Income
excluding notable items
|
1,442
|
214
|
1,847
|
11
|
3,514
|
|
|
|
|
|
|
Additional information
|
|
|
|
|
|
Return on tangible equity (1)
|
na
|
na
|
na
|
na
|
14.7%
|
Return on equity (1)
|
17.5%
|
11.7%
|
14.7%
|
nm
|
na
|
Cost:income ratio (excl. litigation and conduct) (1)
|
50.0%
|
73.4%
|
52.1%
|
nm
|
51.4%
|
Total
assets (£bn)
|
229.1
|
26.8
|
411.6
|
49.6
|
717.1
|
Funded assets (£bn) (1)
|
229.1
|
26.8
|
325.2
|
48.5
|
629.6
|
Net
loans to customers - amortised cost (£bn)
|
205.2
|
18.8
|
130.5
|
22.8
|
377.3
|
Loan impairment rate (1)
|
33bps
|
(4)bps
|
18bps
|
nm
|
24bps
|
Impairment
provisions (£bn)
|
(1.9)
|
(0.1)
|
(1.5)
|
-
|
(3.5)
|
Impairment
provisions - stage 3 (£bn)
|
(1.1)
|
-
|
(0.8)
|
-
|
(1.9)
|
Customer
deposits (£bn)
|
184.5
|
37.2
|
201.8
|
12.4
|
435.9
|
Risk-weighted
assets (RWAs) (£bn)
|
58.9
|
11.6
|
107.9
|
3.2
|
181.6
|
RWA
equivalent (RWAe) (£bn)
|
58.9
|
11.6
|
109.1
|
3.9
|
183.5
|
Employee
numbers (FTEs - thousands)
|
13.4
|
2.4
|
12.6
|
33.3
|
61.7
|
Third party customer asset rate (1)
|
3.34%
|
4.80%
|
6.72%
|
nm
|
nm
|
Third party customer funding rate (1)
|
(1.69%)
|
(2.80%)
|
(1.65%)
|
nm
|
nm
|
Bank average interest earning assets (£bn) (1)
|
206.9
|
18.9
|
129.8
|
na
|
362.8
|
Bank net interest margin (1)
|
2.56%
|
3.02%
|
3.88%
|
na
|
2.94%
|
|
Quarter
ended 31 December 2022
|
||||
|
|
|
|
|
Total
|
|
Retail
|
Private
|
Commercial
|
Central
items
|
NatWest
|
|
Banking
|
Banking
|
&
Institutional
|
&
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
Income statement
|
|
|
|
|
|
Net
interest income
|
1,505
|
251
|
1,276
|
(164)
|
2,868
|
Non-interest
income
|
112
|
59
|
543
|
126
|
840
|
Total income
|
1,617
|
310
|
1,819
|
(38)
|
3,708
|
Direct
expenses
|
(204)
|
(66)
|
(397)
|
(1,380)
|
(2,047)
|
Indirect
expenses
|
(466)
|
(122)
|
(592)
|
1,180
|
-
|
Other
operating expenses
|
(670)
|
(188)
|
(989)
|
(200)
|
(2,047)
|
Litigation
and conduct costs
|
12
|
(10)
|
(42)
|
(51)
|
(91)
|
Operating expenses
|
(658)
|
(198)
|
(1,031)
|
(251)
|
(2,138)
|
Operating profit/(loss) before impairment
losses/releases (1)
|
959
|
112
|
788
|
(289)
|
1,570
|
Impairment
(losses)/releases
|
(87)
|
(2)
|
(62)
|
7
|
(144)
|
Operating
profit/(loss) (1)
|
872
|
110
|
726
|
(282)
|
1,426
|
|
|
|
|
|
|
Income
excluding notable items
|
1,617
|
310
|
1,838
|
1
|
3,766
|
|
|
|
|
|
|
Additional information
|
|
|
|
|
|
Return on tangible equity (1)
|
na
|
na
|
na
|
na
|
20.6%
|
Return on equity (1)
|
34.7%
|
24.2%
|
13.7%
|
nm
|
na
|
Cost:income ratio (excl. litigation and conduct) (1)
|
41.4%
|
60.6%
|
54.4%
|
nm
|
55.2%
|
Total
assets (£bn)
|
226.4
|
29.9
|
404.8
|
59.0
|
720.1
|
Funded assets (£bn) (1)
|
226.4
|
29.9
|
306.3
|
57.9
|
620.5
|
Net
loans to customers - amortised cost (£bn)
|
197.6
|
19.2
|
129.9
|
19.6
|
366.3
|
Loan impairment rate (1)
|
17bps
|
4bps
|
19bps
|
nm
|
16bps
|
Impairment
provisions (£bn)
|
(1.6)
|
(0.1)
|
(1.6)
|
(0.1)
|
(3.4)
|
Impairment
provisions - stage 3 (£bn)
|
(0.9)
|
-
|
(0.7)
|
(0.1)
|
(1.7)
|
Customer
deposits (£bn)
|
188.4
|
41.2
|
203.3
|
17.4
|
450.3
|
Risk-weighted
assets (RWAs) (£bn)
|
54.7
|
11.2
|
103.2
|
7.0
|
176.1
|
RWA
equivalent (RWAe) (£bn)
|
54.7
|
11.2
|
104.6
|
7.5
|
178.0
|
Employee
numbers (FTEs - thousands)
|
14.2
|
2.2
|
12.4
|
32.7
|
61.5
|
Third party customer asset rate (1)
|
2.72%
|
3.62%
|
4.44%
|
nm
|
nm
|
Third party customer funding rate (1)
|
(0.49%)
|
(0.65%)
|
(0.53%)
|
nm
|
nm
|
Bank average interest earning assets (£bn) (1)
|
197.4
|
19.2
|
130.3
|
na
|
355.8
|
Bank net interest margin (1)
|
3.02%
|
5.19%
|
3.89%
|
na
|
3.20%
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
Capital adequacy
ratios (1)
|
%
|
%
|
%
|
CET1
|
13.4
|
13.5
|
14.2
|
Tier
1
|
15.5
|
15.7
|
16.4
|
Total
|
18.4
|
18.7
|
19.3
|
|
|
|
|
Capital
|
£m
|
£m
|
£m
|
Tangible
equity
|
25,653
|
24,015
|
25,482
|
|
|
|
|
Prudential
valuation adjustment
|
(279)
|
(272)
|
(275)
|
Deferred
tax assets
|
(979)
|
(688)
|
(912)
|
Own
credit adjustments
|
(10)
|
(24)
|
(58)
|
Pension
fund assets
|
(143)
|
(246)
|
(227)
|
Cash
flow hedging reserve
|
1,899
|
2,967
|
2,771
|
Foreseeable
ordinary dividends
|
(1,013)
|
(643)
|
(967)
|
Adjustment for trust assets (2)
|
(365)
|
(365)
|
(365)
|
Foreseeable
charges
|
(525)
|
(361)
|
(800)
|
Adjustments
under IFRS 9 transitional arrangements
|
202
|
223
|
361
|
Insufficient
coverage for non-performing exposures
|
-
|
(21)
|
(18)
|
Total
regulatory adjustments
|
(1,213)
|
570
|
(490)
|
|
|
|
|
CET1
capital
|
24,440
|
24,585
|
24,992
|
|
|
|
|
Additional
AT1 capital
|
3,875
|
3,875
|
3,875
|
Tier 1
capital
|
28,315
|
28,460
|
28,867
|
|
|
|
|
End-point
Tier 2 capital
|
5,317
|
5,485
|
4,978
|
Grandfathered
instrument transitional arrangements
|
-
|
-
|
75
|
Tier 2
capital
|
5,317
|
5,485
|
5,053
|
Total regulatory capital
|
33,632
|
33,945
|
33,920
|
|
|
|
|
Risk-weighted assets
|
|
|
|
Credit
risk
|
147,598
|
143,974
|
141,963
|
Counterparty
credit risk
|
7,830
|
8,001
|
6,723
|
Market
risk
|
7,363
|
9,380
|
8,300
|
Operational
risk
|
20,198
|
20,198
|
19,115
|
Total RWAs
|
182,989
|
181,553
|
176,101
|
(1)
|
31 December 2023 includes the
transitional arrangements for the capital impact of IFRS 9 expected
credit loss (ECL) accounting and prior periods also include the
transitional relief on grandfathered capital instruments. The
impact of the IFRS 9 transitional adjustments at 31 December 2023
was £0.2 billion for CET1 capital, £54 million for total
capital and £17 million RWAs (30 September 2023 - £0.2
billion CET1 capital, £48 million total capital and £28
million RWAs; 31 December 2022 - £0.4 billion CET1 capital,
£36 million total capital and £71 million RWAs).
Excluding these adjustments, the CET1 ratio would be 13.2% (30
September 2023 - 13.4%; 31 December 2022 - 14.0%). The transitional
relief on grandfathered instruments at 31 December 2023 was nil (30
September 2023 - nil; 31 December 2022 - £0.1 billion).
Excluding both the transitional relief on grandfathered capital
instruments and the transitional arrangements for the capital
impact of IFRS 9 expected credit loss (ECL) accounting, the
end-point Tier 1 capital ratio would be 15.4% (30 September 2023 -
15.6%; 31 December 2022 - 16.2%) and the end-point Total capital
ratio would be 18.4% (30 September 2023 - 18.7%; 31 December 2022 -
19.3%).
|
(2)
|
Prudent deduction in respect of
agreement with the pension fund to establish new legal structure to
remove dividend linked contribution. Refer to Notes 5 and 33 in the
2023 consolidated financial statements of NatWest Group plc Annual
Report and Accounts.
|
|
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
Leverage
|
£m
|
£m
|
£m
|
Cash
and balances at central banks
|
104,262
|
119,590
|
144,832
|
Trading
assets
|
45,551
|
49,621
|
45,577
|
Derivatives
|
78,904
|
87,504
|
99,545
|
Financial
assets
|
439,449
|
432,451
|
404,374
|
Other
assets
|
23,605
|
26,891
|
18,864
|
Assets
of disposal groups
|
902
|
1,084
|
6,861
|
Total
assets
|
692,673
|
717,141
|
720,053
|
Derivatives
|
|
|
|
- netting and variation
margin
|
(79,299)
|
(86,657)
|
(100,356)
|
- potential future exposures
|
17,212
|
17,226
|
18,327
|
Securities
financing transactions gross up
|
1,868
|
2,245
|
4,147
|
Other
off balance sheet items
|
50,961
|
50,528
|
46,144
|
Regulatory
deductions and other adjustments
|
(16,043)
|
(16,647)
|
(7,114)
|
Claims
on central banks
|
(100,735)
|
(116,157)
|
(141,144)
|
Exclusion
of bounce back loans
|
(3,794)
|
(4,198)
|
(5,444)
|
UK
leverage exposure
|
562,843
|
563,481
|
534,613
|
UK leverage ratio (%) (1)
|
5.0
|
5.1
|
5.4
|
(1)
|
Excluding the IFRS 9 transitional
adjustment, the UK leverage ratio would be 5.0% (30 September 2023
- 5.0%, 31 December 2022 - 5.3%).
|
Main macroeconomic variables
|
2023
|
|
2022
|
||||||||
|
|
|
|
Extreme
|
Weighted
|
|
|
|
|
Extreme
|
Weighted
|
|
Upside
|
Base case
|
Downside
|
downside
|
average
|
|
Upside
|
Base
case
|
Downside
|
downside
|
average
|
Five-year summary
|
%
|
%
|
%
|
%
|
%
|
|
%
|
%
|
%
|
%
|
%
|
GDP
|
1.8
|
1.0
|
0.5
|
(0.3)
|
0.9
|
|
2.2
|
1.3
|
0.8
|
0.4
|
1.2
|
Unemployment
|
3.5
|
4.6
|
5.2
|
6.8
|
4.8
|
|
3.9
|
4.5
|
4.9
|
6.7
|
4.8
|
House
price index
|
3.9
|
0.3
|
(0.4)
|
(5.7)
|
0.3
|
|
5.1
|
0.8
|
(0.7)
|
(4.4)
|
0.6
|
Commercial
real estate price
|
3.1
|
(0.2)
|
(2.0)
|
(6.8)
|
(0.6)
|
|
1.2
|
(1.9)
|
(2.8)
|
(9.1)
|
(2.5)
|
Consumer
price index
|
1.7
|
2.6
|
5.2
|
1.8
|
2.8
|
|
3.6
|
4.2
|
4.4
|
8.2
|
4.8
|
Bank of
England base rate
|
3.8
|
3.7
|
5.6
|
2.9
|
4.0
|
|
2.4
|
3.1
|
1.5
|
4.5
|
2.8
|
UK
stock price index
|
4.8
|
3.3
|
1.2
|
(0.4)
|
2.8
|
|
3.0
|
1.4
|
(1.1)
|
(3.7)
|
0.5
|
World
GDP
|
3.7
|
3.2
|
2.7
|
1.8
|
3.0
|
|
3.7
|
3.3
|
1.7
|
1.1
|
2.7
|
Probability
weight
|
21.2
|
45.0
|
20.4
|
13.4
|
|
|
18.6
|
45.0
|
20.8
|
15.6
|
|
|
Retail Banking
|
|
Private
|
Commercial &
|
|
Central items &
|
|
|
|
|
Mortgages
|
Other
|
|
Banking
|
Institutional
|
|
other (1)
|
|
Total
|
2023
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
|
£m
|
Deferred
model calibrations
|
-
|
-
|
|
1
|
23
|
|
-
|
|
24
|
Economic
uncertainty
|
118
|
39
|
|
13
|
256
|
|
3
|
|
429
|
Other
adjustments
|
1
|
-
|
|
-
|
8
|
|
23
|
|
32
|
Total
|
119
|
39
|
|
14
|
287
|
|
26
|
|
485
|
|
|
|
|
|
|
|
|
|
|
Of
which:
|
|
|
|
|
|
|
|
|
|
- Stage
1
|
75
|
14
|
|
6
|
115
|
|
10
|
|
220
|
- Stage
2
|
31
|
25
|
|
8
|
167
|
|
9
|
|
240
|
- Stage
3
|
13
|
-
|
|
-
|
5
|
|
7
|
|
25
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
Economic
uncertainty
|
102
|
51
|
|
6
|
191
|
|
2
|
|
352
|
Other
adjustments
|
8
|
20
|
|
-
|
16
|
|
15
|
|
59
|
Total
|
110
|
71
|
|
6
|
207
|
|
17
|
|
411
|
|
|
|
|
|
|
|
|
|
|
Of
which:
|
|
|
|
|
|
|
|
|
|
- Stage
1
|
62
|
27
|
|
3
|
63
|
|
-
|
|
155
|
- Stage
2
|
32
|
44
|
|
3
|
139
|
|
17
|
|
235
|
- Stage
3
|
16
|
-
|
|
-
|
5
|
|
1
|
|
22
|
−
|
The addition of deferred model calibration post model adjustments
to account for elevated refinance risks on
deteriorated
|
|
exposures
largely due to pressures from inflation and liquidity.
|
−
|
The increase in the economic uncertainty post model adjustments for
the Wholesale portfolios relating to inflation, supply
chain
|
|
and liquidity prompted by continued affordability risks, as a
result of higher interest rates and sustained inflation. This was
partially
|
|
offset by a reduction in COVID-19 related post model
adjustments.
|
|
|
|
|
Central
|
|
|
Retail
|
Private
|
Commercial
|
items
|
|
|
Banking
|
Banking
|
& Institutional
|
& other
|
Total
|
2023
|
£m
|
£m
|
£m
|
£m
|
£m
|
Loans - amortised cost and FVOCI
|
|
|
|
|
|
Stage
1
|
182,297
|
17,565
|
119,047
|
29,677
|
348,586
|
Stage
2
|
21,208
|
906
|
15,771
|
6
|
37,891
|
Stage
3
|
3,133
|
258
|
2,162
|
10
|
5,563
|
Of which: individual
|
-
|
186
|
845
|
-
|
1,031
|
Of
which: collective
|
3,133
|
72
|
1,317
|
10
|
4,532
|
Subtotal
excluding disposal group loans
|
206,638
|
18,729
|
136,980
|
29,693
|
392,040
|
Disposal
group loans
|
|
|
|
67
|
67
|
Total
|
|
|
|
29,760
|
392,107
|
ECL provisions (1)
|
|
|
|
|
|
Stage
1
|
306
|
20
|
356
|
27
|
709
|
Stage
2
|
502
|
20
|
447
|
7
|
976
|
Stage
3
|
1,097
|
34
|
819
|
10
|
1,960
|
Of which: individual
|
-
|
34
|
298
|
-
|
332
|
Of which: collective
|
1,097
|
-
|
521
|
10
|
1,628
|
Subtotal
excluding ECL provisions on disposal group loans
|
1,905
|
74
|
1,622
|
44
|
3,645
|
ECL
provisions on disposal group loans
|
|
|
|
36
|
36
|
Total
|
|
|
|
80
|
3,681
|
ECL provisions
coverage (2)
|
|
|
|
|
|
Stage 1
(%)
|
0.17
|
0.11
|
0.30
|
0.09
|
0.20
|
Stage 2
(%)
|
2.37
|
2.21
|
2.83
|
nm
|
2.58
|
Stage 3
(%)
|
35.01
|
13.18
|
37.88
|
100.00
|
35.23
|
ECL
provisions coverage excluding disposal group loans
|
0.92
|
0.40
|
1.18
|
0.15
|
0.93
|
ECL
provisions coverage on disposal group loans
|
|
|
|
53.73
|
53.73
|
Total
|
|
|
|
0.27
|
0.94
|
Impairment losses/(releases)
|
|
|
|
|
|
ECL (release)/charge (3)
|
465
|
14
|
94
|
5
|
578
|
Stage
1
|
(172)
|
(9)
|
(222)
|
6
|
(397)
|
Stage
2
|
440
|
15
|
182
|
8
|
645
|
Stage
3
|
197
|
8
|
134
|
(9)
|
330
|
Of which: individual
|
-
|
8
|
80
|
1
|
89
|
Of which: collective
|
197
|
-
|
54
|
(10)
|
241
|
Continuing
operations
|
465
|
14
|
94
|
5
|
578
|
Discontinued
operations
|
|
|
|
(6)
|
(6)
|
Total
|
|
|
|
(1)
|
572
|
|
|
|
|
|
|
Amounts
written-off
|
188
|
2
|
122
|
7
|
319
|
Of which: individual
|
-
|
2
|
40
|
-
|
42
|
Of which: collective
|
188
|
-
|
82
|
7
|
277
|
|
|
|
|
Central
|
|
|
Retail
|
Private
|
Commercial
|
items
|
|
|
Banking
|
Banking
|
&
Institutional
|
&
other
|
Total
|
2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
Loans - amortised cost and FVOCI
|
|
|
|
|
|
Stage
1
|
174,727
|
18,367
|
108,791
|
23,339
|
325,224
|
Stage
2
|
21,561
|
801
|
24,226
|
245
|
46,833
|
Stage
3
|
2,565
|
242
|
2,166
|
123
|
5,096
|
Of which: individual
|
-
|
168
|
905
|
48
|
1,121
|
Of which: collective
|
2,565
|
74
|
1,261
|
75
|
3,975
|
Subtotal excluding disposal group loans
|
198,853
|
19,410
|
135,183
|
23,707
|
377,153
|
Disposal group loans
|
|
|
|
1,502
|
1,502
|
Total
|
|
|
|
25,209
|
378,655
|
ECL provisions (1)
|
|
|
|
|
|
Stage
1
|
251
|
21
|
342
|
18
|
632
|
Stage
2
|
450
|
14
|
534
|
45
|
1,043
|
Stage
3
|
917
|
26
|
747
|
69
|
1,759
|
Of which: individual
|
-
|
26
|
251
|
10
|
287
|
Of which: collective
|
917
|
-
|
496
|
59
|
1,472
|
Subtotal excluding ECL provisions on disposal group
loans
|
1,618
|
61
|
1,623
|
132
|
3,434
|
ECL on disposal group loans
|
|
|
|
53
|
53
|
Total
|
|
|
|
185
|
3,487
|
ECL provisions
coverage (2)
|
|
|
|
|
|
Stage 1
(%)
|
0.14
|
0.11
|
0.31
|
0.08
|
0.19
|
Stage 2
(%)
|
2.09
|
1.75
|
2.20
|
18.37
|
2.23
|
Stage 3
(%)
|
35.75
|
10.74
|
34.49
|
56.10
|
34.52
|
ECL provisions coverage excluding disposal group loans
|
0.81
|
0.31
|
1.20
|
0.56
|
0.91
|
ECL provisions coverage on disposal group loans
|
|
|
|
3.53
|
3.53
|
Total
|
|
|
|
0.73
|
0.92
|
Impairment losses/(releases)
|
|
|
|
|
|
ECL (release)/charge (3)
|
229
|
(2)
|
122
|
(12)
|
337
|
Stage
1
|
(146)
|
2
|
(135)
|
(11)
|
(290)
|
Stage
2
|
268
|
(7)
|
108
|
24
|
393
|
Stage
3
|
107
|
3
|
149
|
(25)
|
234
|
Of which: individual
|
-
|
3
|
57
|
(6)
|
54
|
Of which: collective
|
107
|
-
|
92
|
(19)
|
180
|
Continuing operations
|
229
|
(2)
|
122
|
(12)
|
337
|
Discontinued operations
|
-
|
|
|
(71)
|
(71)
|
Total
|
|
|
|
(83)
|
266
|
|
|
|
|
|
|
Amounts
written-off
|
216
|
15
|
224
|
27
|
482
|
Of which: individual
|
-
|
15
|
153
|
-
|
168
|
Of which: collective
|
216
|
-
|
71
|
27
|
314
|
(1)
|
Includes loans to customers and
banks.
|
(2)
|
Includes £9 million (2022 -
£3 million) related to assets classified as FVOCI and
£0.1 billion (2022 - £0.1 billion) related to off-balance
sheet exposures
|
(3)
|
ECL provisions coverage is
calculated as ECL provisions divided by loans - amortised cost and
FVOCI. It is calculated on loans and total ECL provisions,
including ECL for other (non-loan) assets and unutilised exposure.
Some segments with a high proportion of debt securities or
unutilised exposure may result in a not meaningful coverage
ratio.
|
(4)
|
Includes a £16 million release
(2022 - £3 million charge) related to other financial assets,
of which £6 million charge (2022 - nil) related to assets
classified as FVOCI, and includes a £9 million release (2022 -
£5 million release) related to contingent
liabilities.
|
(5)
|
The table shows gross loans only
and excludes amounts that were outside the scope of the ECL
framework. Refer to the Financial instruments within the scope of
the IFRS 9 ECL framework section for further details. Other
financial assets within the scope of the IFRS 9 ECL framework were
cash and balances at central banks totalling £103.1 billion
(2022 - £143.3 billion) and debt securities of £50.1
billion (2022 - £29.9 billion).
|
|
31 December
|
30
September
|
30
June
|
31
December
|
|
2023
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
£m
|
£m
|
Total loans
|
392,040
|
389,552
|
385,252
|
377,153
|
Personal
|
223,774
|
224,175
|
223,664
|
217,123
|
Wholesale
|
168,266
|
165,377
|
161,588
|
160,030
|
|
|
|
|
|
Value of loans in Stage 2
|
37,891
|
37,646
|
43,440
|
46,833
|
Personal
|
21,509
|
18,233
|
22,989
|
21,854
|
Wholesale
|
16,382
|
19,413
|
20,471
|
24,979
|
|
|
|
|
|
ECL provisions in Stage 2
|
976
|
1,032
|
991
|
1,043
|
Personal
|
506
|
493
|
455
|
466
|
Wholesale
|
470
|
539
|
536
|
577
|
|
|
|
|
|
ECL provision coverage in Stage 2
|
2.58%
|
2.74%
|
2.28%
|
2.23%
|
Personal
|
2.35%
|
2.70%
|
1.98%
|
2.13%
|
Wholesale
|
2.87%
|
2.78%
|
2.62%
|
2.31%
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Interest
receivable
|
21,026
|
12,637
|
|
5,955
|
5,589
|
4,046
|
Interest
payable
|
(9,977)
|
(2,795)
|
|
(3,317)
|
(2,904)
|
(1,178)
|
|
|
|
|
|
|
|
Net interest income
|
11,049
|
9,842
|
|
2,638
|
2,685
|
2,868
|
|
|
|
|
|
|
|
Fees
and commissions receivable
|
2,983
|
2,915
|
|
770
|
754
|
770
|
Fees
and commissions payable
|
(653)
|
(623)
|
|
(169)
|
(169)
|
(155)
|
Income
from trading activities
|
794
|
1,133
|
|
185
|
191
|
164
|
Other
operating income
|
579
|
(111)
|
|
113
|
27
|
61
|
|
|
|
|
|
|
|
Non-interest income
|
3,703
|
3,314
|
|
899
|
803
|
840
|
|
|
|
|
|
|
|
Total income
|
14,752
|
13,156
|
|
3,537
|
3,488
|
3,708
|
|
|
|
|
|
|
|
Staff
costs
|
(3,901)
|
(3,716)
|
|
(977)
|
(919)
|
(1,029)
|
Premises
and equipment
|
(1,153)
|
(1,112)
|
|
(308)
|
(275)
|
(292)
|
Other
administrative expenses
|
(2,008)
|
(2,026)
|
|
(618)
|
(519)
|
(597)
|
Depreciation
and amortisation
|
(934)
|
(833)
|
|
(251)
|
(214)
|
(220)
|
|
|
|
|
|
|
|
Operating expenses
|
(7,996)
|
(7,687)
|
|
(2,154)
|
(1,927)
|
(2,138)
|
|
|
|
|
|
|
|
Profit before impairment losses
|
6,756
|
5,469
|
|
1,383
|
1,561
|
1,570
|
Impairment
losses
|
(578)
|
(337)
|
|
(126)
|
(229)
|
(144)
|
|
|
|
|
|
|
|
Operating profit before tax
|
6,178
|
5,132
|
|
1,257
|
1,332
|
1,426
|
Tax
(charge)/credit
|
(1,434)
|
(1,275)
|
|
5
|
(378)
|
(46)
|
Profit from continuing operations
|
4,744
|
3,857
|
|
1,262
|
954
|
1,380
|
(Loss)/profit from discontinued
operations, net of tax (1)
|
(112)
|
(262)
|
|
26
|
(30)
|
(56)
|
Profit for the period
|
4,632
|
3,595
|
|
1,288
|
924
|
1,324
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary
shareholders
|
4,394
|
3,340
|
|
1,229
|
866
|
1,262
|
Paid-in
equity holders
|
242
|
249
|
|
60
|
61
|
61
|
Non-controlling
interests
|
(4)
|
6
|
|
(1)
|
(3)
|
1
|
|
4,632
|
3,595
|
|
1,288
|
924
|
1,324
|
Earnings
per ordinary share - continuing operations
|
49.2p
|
36.5p
|
|
13.6p
|
10.1p
|
13.7p
|
Earnings
per ordinary share - discontinued operations
|
(1.2p)
|
(2.7p)
|
|
0.3p
|
(0.3p)
|
(0.6p)
|
Total
earnings per share attributable to
|
|
|
|
|
|
|
ordinary
shareholders - basic (3)
|
47.9p
|
33.8p
|
|
13.9p
|
9.8p
|
13.1p
|
Earnings
per ordinary share - fully diluted
|
|
|
|
|
|
|
continuing operations
|
48.9p
|
36.2p
|
|
13.6p
|
10.1p
|
13.6p
|
Earnings
per ordinary share - fully diluted
|
|
|
|
|
|
|
discontinued operations
|
(1.2p)
|
(2.6p)
|
|
0.3p
|
(0.3p)
|
(0.6p)
|
Total
earnings per share attributable to
|
|
|
|
|
|
|
ordinary shareholders - fully
diluted
|
47.7p
|
33.6p
|
|
13.9p
|
9.8p
|
13.0p
|
(1)
|
The results of discontinued
operations, comprising the post-tax profit is shown as a single
amount on the face of the income statement. An analysis of this
amount is presented in Note 3 on page
31.
|
(2)
|
At the General Meeting and Class
Meeting on 25 August 2022, the shareholders approved the proposed
special dividend and share consolidation. On 30 August 2022 the
issued ordinary share capital was consolidated in the ratio of 14
existing shares for 13 new shares. The average number of shares and
earnings per share have been adjusted
retrospectively.
|
(3)
|
In 2023, the unrounded Total
earnings per share attributable to ordinary shareholders - basic is
47.948p. The unrounded Earnings per ordinary share - continuing
operations was 49.170p. The unrounded Earnings per ordinary share -
discontinued operations was (1.222p).
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Profit
for the period
|
4,632
|
3,595
|
|
1,288
|
924
|
1,324
|
Items that do not qualify for reclassification
|
|
|
|
|
|
|
Remeasurement
of retirement benefit schemes
|
(280)
|
(840)
|
|
(175)
|
(41)
|
(158)
|
Changes
in fair value of credit in financial liabilities
|
|
|
|
|
|
|
designated at FVTPL
|
(39)
|
50
|
|
(12)
|
(23)
|
(52)
|
FVOCI
financial assets
|
17
|
59
|
|
(19)
|
6
|
17
|
Tax
|
79
|
187
|
|
59
|
13
|
51
|
|
(223)
|
(544)
|
|
(147)
|
(45)
|
(142)
|
Items that do qualify for reclassification
|
|
|
|
|
|
|
FVOCI
financial assets
|
49
|
(457)
|
|
(16)
|
12
|
(6)
|
Cash flow hedges (1)
|
1,208
|
(3,277)
|
|
1,416
|
526
|
701
|
Currency
translation
|
(619)
|
241
|
|
(218)
|
68
|
(117)
|
Tax
|
(361)
|
1,067
|
|
(345)
|
(143)
|
(192)
|
|
277
|
(2,426)
|
|
837
|
463
|
386
|
Other comprehensive income/(losses) after tax
|
54
|
(2,970)
|
|
690
|
418
|
244
|
Total comprehensive income for the year
|
4,686
|
625
|
|
1,978
|
1,342
|
1,568
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary
shareholders
|
4,448
|
370
|
|
1,919
|
1,284
|
1,506
|
Paid-in
equity holders
|
242
|
249
|
|
60
|
61
|
61
|
Non-controlling
interests
|
(4)
|
6
|
|
(1)
|
(3)
|
1
|
|
4,686
|
625
|
|
1,978
|
1,342
|
1,568
|
(1)
|
Refer to footnote 5 and 6 of the
consolidated statement of changes in
equity.
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
£m
|
Assets
|
|
|
|
Cash
and balances at central banks
|
104,262
|
119,590
|
144,832
|
Trading
assets
|
45,551
|
49,621
|
45,577
|
Derivatives
|
78,904
|
87,504
|
99,545
|
Settlement
balances
|
7,231
|
10,644
|
2,572
|
Loans
to banks - amortised cost
|
6,914
|
8,454
|
7,139
|
Loans
to customers - amortised cost
|
381,433
|
377,268
|
366,340
|
Other
financial assets
|
51,102
|
46,729
|
30,895
|
Intangible
assets
|
7,614
|
7,515
|
7,116
|
Other
assets
|
8,760
|
8,732
|
9,176
|
Assets
of disposal groups
|
902
|
1,084
|
6,861
|
Total assets
|
692,673
|
717,141
|
720,053
|
|
|
|
|
Liabilities
|
|
|
|
Bank
deposits
|
22,190
|
24,354
|
20,441
|
Customer
deposits
|
431,377
|
435,867
|
450,318
|
Settlement
balances
|
6,645
|
11,585
|
2,012
|
Trading
liabilities
|
53,636
|
58,495
|
52,808
|
Derivatives
|
72,395
|
81,135
|
94,047
|
Other
financial liabilities
|
55,089
|
56,302
|
49,107
|
Subordinated
liabilities
|
5,714
|
6,210
|
6,260
|
Notes
in circulation
|
3,237
|
3,144
|
3,218
|
Other
liabilities
|
5,202
|
4,592
|
5,346
|
Total liabilities
|
655,485
|
681,684
|
683,557
|
|
|
|
|
Equity
|
|
|
|
Ordinary
shareholders' interests
|
33,267
|
31,530
|
32,598
|
Other
owners' interests
|
3,890
|
3,890
|
3,890
|
Owners' equity
|
37,157
|
35,420
|
36,488
|
Non-controlling
interests
|
31
|
37
|
8
|
Total
equity
|
37,188
|
35,457
|
36,496
|
Total liabilities and equity
|
692,673
|
717,141
|
720,053
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Called-up share capital - at beginning
of period
|
10,539
|
11,468
|
|
9,788
|
9,852
|
10,539
|
Share cancellation (1,
2)
|
(856)
|
(929)
|
|
(105)
|
(64)
|
-
|
At end
of period
|
9,683
|
10,539
|
|
9,683
|
9,788
|
10,539
|
|
|
|
|
|
|
|
Paid-in equity - at beginning and end of period
|
3,890
|
3,890
|
|
3,890
|
3,890
|
3,890
|
|
|
|
|
|
|
|
Share premium account - at beginning and end of period
|
1,161
|
1,161
|
|
1,161
|
1,161
|
1,161
|
|
|
|
|
|
|
|
Merger
reserve - at
beginning and end of period
|
10,881
|
10,881
|
|
10,881
|
10,881
|
10,881
|
|
|
|
|
|
|
|
FVOCI
reserve - at
beginning of period
|
(102)
|
269
|
|
(20)
|
(42)
|
(105)
|
Unrealised
gains/(losses)
|
22
|
(570)
|
|
(46)
|
8
|
(3)
|
Realised
losses
|
43
|
59
|
|
12
|
15
|
14
|
Tax
|
(12)
|
140
|
|
5
|
(1)
|
(8)
|
At end
of period
|
(49)
|
(102)
|
|
(49)
|
(20)
|
(102)
|
|
|
|
|
|
|
|
Cash flow hedging reserve - at
beginning of period
|
(2,771)
|
(395)
|
|
(2,967)
|
(3,344)
|
(3,273)
|
Amount recognised in equity (5)
|
187
|
(2,973)
|
|
1,008
|
127
|
734
|
Amount transferred from equity to earnings (6)
|
1,021
|
(304)
|
|
408
|
399
|
(33)
|
Tax
|
(336)
|
901
|
|
(348)
|
(149)
|
(199)
|
At end
of period
|
(1,899)
|
(2,771)
|
|
(1,899)
|
(2,967)
|
(2,771)
|
|
|
|
|
|
|
|
Foreign exchange reserve - at
beginning of period
|
1,478
|
1,205
|
|
1,059
|
986
|
1,589
|
Retranslation
of net assets
|
(239)
|
512
|
|
(50)
|
119
|
(87)
|
Foreign
currency gains/(losses) on hedges of net assets
|
107
|
(266)
|
|
(4)
|
(51)
|
(29)
|
Tax
|
(18)
|
32
|
|
-
|
5
|
6
|
Recycled to profit or loss on disposal of
businesses (3)
|
(487)
|
(5)
|
|
(164)
|
-
|
(1)
|
At end
of period
|
841
|
1,478
|
|
841
|
1,059
|
1,478
|
|
|
|
|
|
|
|
Capital redemption reserve - at
beginning of period
|
1,651
|
722
|
|
2,402
|
2,338
|
1,651
|
Share cancellation (1,2)
|
856
|
929
|
|
105
|
64
|
-
|
At end
of period
|
2,507
|
1,651
|
|
2,507
|
2,402
|
1,651
|
|
|
|
|
|
|
|
Retained earnings - at beginning of
period
|
10,019
|
12,966
|
|
9,763
|
9,576
|
8,886
|
Profit/(loss)
attributable to ordinary shareholders and
|
|
|
|
|
|
|
other equity owners
|
|
|
|
|
|
|
- continuing
operations
|
4,748
|
3,851
|
|
1,263
|
957
|
1,379
|
- discontinued
operations
|
(112)
|
(262)
|
|
26
|
(30)
|
(56)
|
Paid-in
equity dividends paid
|
(242)
|
(249)
|
|
(60)
|
(61)
|
(61)
|
Ordinary
dividends paid
|
(1,456)
|
(1,205)
|
|
-
|
(491)
|
-
|
Special
dividends paid
|
-
|
(1,746)
|
|
-
|
-
|
-
|
Shares repurchased (1,2)
|
(2,057)
|
(2,054)
|
|
(205)
|
(139)
|
-
|
Redemption of preference shares (4)
|
-
|
(750)
|
|
-
|
-
|
-
|
Redemption/reclassification
of paid-in equity
|
|
|
|
|
|
|
- tax
|
-
|
(36)
|
|
-
|
-
|
-
|
Realised
gains in period on FVOCI equity shares
|
|
|
|
|
|
|
- gross
|
1
|
113
|
|
(1)
|
(5)
|
-
|
- tax
|
(3)
|
(9)
|
|
-
|
-
|
12
|
Remeasurement
of retirement benefit schemes
|
|
|
|
|
|
|
- gross
|
(280)
|
(840)
|
|
(175)
|
(41)
|
(158)
|
- tax
|
81
|
192
|
|
54
|
12
|
40
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Changes
in fair value of credit in financial liabilities
|
|
|
|
|
|
|
designated at FVTPL
|
|
|
|
|
|
|
- gross
|
(39)
|
50
|
|
(12)
|
(23)
|
(52)
|
- tax
|
6
|
(2)
|
|
3
|
3
|
8
|
Employee
share schemes
|
|
|
|
|
|
|
- gross
|
14
|
6
|
|
(7)
|
4
|
(2)
|
Share-based
payments
|
|
|
|
|
|
|
- gross
|
(18)
|
(7)
|
|
13
|
1
|
19
|
- tax
|
(17)
|
1
|
|
(17)
|
-
|
4
|
At end
of period
|
10,645
|
10,019
|
|
10,645
|
9,763
|
10,019
|
|
|
|
|
|
|
|
Own shares held - at beginning of
period
|
(258)
|
(371)
|
|
(537)
|
(540)
|
(275)
|
Shares
vested under employee share schemes
|
114
|
113
|
|
34
|
3
|
17
|
Own shares acquired (2)
|
(359)
|
-
|
|
-
|
-
|
-
|
At end
of period
|
(503)
|
(258)
|
|
(503)
|
(537)
|
(258)
|
|
|
|
|
|
|
|
Owners' equity at end of period
|
37,157
|
36,488
|
|
37,157
|
35,420
|
36,488
|
|
|
|
|
|
|
|
Non-controlling interests - at beginning of period
|
8
|
7
|
|
37
|
40
|
12
|
Profit
attributable to non-controlling interests
|
(4)
|
6
|
|
(1)
|
(3)
|
1
|
Acquisition
of subsidiary
|
32
|
-
|
|
-
|
-
|
-
|
Dividends
paid
|
(5)
|
(5)
|
|
(5)
|
-
|
(5)
|
At end
of period
|
31
|
8
|
|
31
|
37
|
8
|
|
|
|
|
|
|
|
Total equity at end of period
|
37,188
|
36,496
|
|
37,188
|
35,457
|
36,496
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary
shareholders
|
33,267
|
32,598
|
|
33,267
|
31,530
|
32,598
|
Paid-in
equity holders
|
3,890
|
3,890
|
|
3,890
|
3,890
|
3,890
|
Non-controlling
interests
|
31
|
8
|
|
31
|
37
|
8
|
|
37,188
|
36,496
|
|
37,188
|
35,457
|
36,496
|
(1)
|
NatWest Group plc repurchased and
cancelled 460.3 million (2022 - 379.3 million) shares, of which 2.3
million were settled in January 2024. The total consideration of
these shares excluding fees was £1,151.7 million (2022 -
£829.3 million), of which £4.9 million were settled in
January 2024, as part of the On Market Share Buyback Programmes.
The nominal value of the share cancellations has been transferred
to the capital redemption reserve.
|
(2)
|
In May 2023, there was an agreement
to buy 469.2 million (March 2022 - 549.9 million) ordinary shares
of the Company from UK Government Investments Ltd (UKGI) at 268.4
pence per share (March 2022 - 220.5 pence per share) for the total
consideration of £1.3 billion (2022 - £1.2 billion).
NatWest Group cancelled 336.2 million of the purchased ordinary
shares, amounting to £906.9 million excluding fees and held
the remaining 133.0 million shares as Own Shares Held, amounting to
£358.8 million excluding fees. The nominal value of the share
cancellation has been transferred to the capital redemption
reserve.
|
(3)
|
Includes £460 million FX
recycled to profit or loss upon completion of a capital repayment
by UBIDAC.
|
(4)
|
Following an announcement of a
Regulatory Call in February 2022, the Series U preference shares
were reclassified to liabilities. A £254 million loss was
recognised in retained earnings as a result of FX
unlocking.
|
(5)
|
The change in the cash flow hedging
reserve is driven by realised accrued interest transferred into the
income statement and a decrease in swap rates compared to previous
periods where they rose. The portfolio of hedging instruments is
predominantly received fixed swaps.
|
(6)
|
The amount transferred from equity
to the income statement is mostly recorded within net interest
income mainly in loans to customers, balances at central banks and
customer deposits.
|
|
Year ended
|
|
|
31 December
|
31
December
|
2023
|
2022
|
|
|
£m
|
£m
|
Cash flows from operating activities
|
|
|
Operating
profit before tax from continuing operations
|
6,178
|
5,132
|
Operating
loss before tax from discontinued operations
|
(112)
|
(262)
|
Adjustments
for non-cash items
|
3,208
|
1,203
|
Net cash flows from trading activities
|
9,274
|
6,073
|
Changes
in operating assets and liabilities
|
(25,679)
|
(48,447)
|
Net cash flows from operating activities before tax
|
(16,405)
|
(42,374)
|
Income
taxes paid
|
(1,033)
|
(1,223)
|
Net cash flows from operating activities
|
(17,438)
|
(43,597)
|
Net cash flows from investing activities
|
(14,694)
|
19,059
|
Net cash flows from financing activities
|
(6,304)
|
(10,652)
|
Effects
of exchange rate changes on cash and cash equivalents
|
(1,189)
|
2,933
|
Net decrease in cash and cash equivalents
|
(39,625)
|
(32,257)
|
Cash
and cash equivalents at 1 January
|
158,449
|
190,706
|
Cash and cash equivalents at 31 December
|
118,824
|
158,449
|
|
2023
|
2022
|
2021
|
Continuing operations
|
£m
|
£m
|
£m
|
Current tax
|
|
|
|
Charge
for the year
|
(1,373)
|
(1,611)
|
(1,036)
|
(Under)/over
provision in respect of prior years
|
(123)
|
100
|
31
|
|
(1,496)
|
(1,511)
|
(1,005)
|
Deferred tax
|
|
|
|
(Charge)/credit
for the year
|
(281)
|
47
|
(185)
|
UK tax
rate change impact
|
-
|
(10)
|
165
|
Net
increase in the carrying value of deferred tax assets in respect of
UK,
|
|
|
|
RoI and Netherlands losses
|
385
|
267
|
12
|
(Under)/over
provision in respect of prior years
|
(42)
|
(68)
|
17
|
Tax charge for the year
|
(1,434)
|
(1,275)
|
(996)
|
|
2023
|
2022
|
|
£m
|
£m
|
Deferred
tax asset
|
(1,894)
|
(2,178)
|
Deferred
tax liability
|
141
|
227
|
Net
deferred tax asset
|
(1,753)
|
(1,951)
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Interest
receivable
|
22
|
177
|
|
-
|
(4)
|
17
|
Net
interest income
|
22
|
177
|
|
-
|
(4)
|
17
|
Non-interest income (1)
|
(16)
|
(472)
|
|
26
|
(28)
|
(63)
|
Total income
|
6
|
(295)
|
|
26
|
(32)
|
(46)
|
Operating
expenses
|
(124)
|
(38)
|
|
-
|
(2)
|
(3)
|
(Loss)/profit before impairment releases/losses
|
(118)
|
(333)
|
|
26
|
(34)
|
(49)
|
Impairment
releases/(losses)
|
6
|
71
|
|
-
|
4
|
(7)
|
Operating (loss)/profit before tax
|
(112)
|
(262)
|
|
26
|
(30)
|
(56)
|
Tax
charge
|
-
|
-
|
|
-
|
-
|
-
|
(Loss)/profit from discontinued
operations, net of tax
|
(112)
|
(262)
|
|
26
|
(30)
|
(56)
|
|
|
31 December
|
31
December
|
|
|
2023
|
2022
|
|
|
£m
|
£m
|
Assets of disposal groups
|
|
|
|
Loans
to customers - amortised cost
|
|
32
|
1,458
|
Other
financial assets - loans to customers
|
|
841
|
5,397
|
Other
assets
|
|
29
|
6
|
|
|
902
|
6,861
|
|
|
|
|
Liabilities of disposal groups
|
|
|
|
Other
liabilities
|
|
3
|
15
|
|
|
3
|
15
|
|
|
|
|
Net assets of disposal groups
|
|
899
|
6,846
|
|
31 December
|
31
December
|
|
2023
|
2022
|
|
£m
|
£m
|
Net
cash flows from operating activities
|
362
|
1,090
|
Net
cash flows from investing activities
|
5,473
|
6,164
|
Net
increase in cash and cash equivalents
|
5,835
|
7,254
|
−
|
The
financial statements, prepared in accordance with UK-adopted
International Accounting Standards, International Financial
Reporting Standards as issued by the International Accounting
Standards Board, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the company
and the undertakings included in the consolidated taken as a whole;
and
|
−
|
The
Strategic report and Directors' report (incorporating the Business
review) include a fair review of the development and performance of
the business and the position of the company and the undertakings
included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they
face.
|
Howard
Davies
|
John-Paul
Thwaite
|
Katie
Murray
|
Chairman
|
Group
Chief Executive Officer
|
Group
Chief Financial Officer
|
Chairman
|
Executive directors
|
Non-executive directors
|
Howard
Davies
|
John-Paul
Thwaite
Katie
Murray
|
Frank
Dangeard
Roisin
Donnelly
Patrick
Flynn
Rick
Haythornthwaite
Yasmin
Jetha
Stuart
Lewis
Mark
Seligman
Lena
Wilson
|
Analyst enquiries:
|
Claire
Kane, Investor Relations
|
+44 (0)
20 7672 1758
|
||
Media enquiries:
|
NatWest
Group Press Office
|
+44 (0)
131 523 4205
|
||
Management presentation
|
Fixed income presentation
|
|
||
Date: 16
February 2024
|
Date: 16
February 2024
|
|
||
Time: 9:00
AM UK time
|
Time: 1:00
PM UK time
|
|
||
Zoom ID: 983
5690 5481
|
Zoom ID: 957
8120 2404
|
|
||
|
|
|
|
|
−
|
Announcement
and slides.
|
−
|
NatWest
Group plc 2023 Annual Report and Accounts.
|
−
|
A
financial supplement containing income statement, balance sheet and
segment performance for the four quarters ended 31 December
2023.
|
−
|
NatWest
Group and NWH Group Pillar 3 Report.
|
−
|
Climate-related
Disclosures Report 2023.
|
−
|
Environmental,
Social and Governance (ESG) Disclosures Report 2023.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
|
Total
income
|
14,752
|
13,156
|
|
3,537
|
3,488
|
3,708
|
Less
notable items:
|
|
|
|
|
|
|
Commercial & Institutional
|
|
|
|
|
|
|
Fair
value, disposal losses and asset disposals/strategic
|
|
|
|
|
|
|
risk reduction
|
-
|
(45)
|
|
-
|
-
|
-
|
Own
credit adjustments (OCA)
|
(2)
|
42
|
|
(5)
|
(6)
|
(19)
|
Tax
interest on prior periods
|
3
|
-
|
|
3
|
-
|
-
|
Central items & other
|
|
|
|
|
|
|
Loss on
redemption of own debt
|
-
|
(161)
|
|
-
|
-
|
-
|
Effective
interest rate adjustment as a
|
|
|
|
|
|
|
result of redemption of own
debt
|
-
|
(41)
|
|
-
|
-
|
(41)
|
Profit
from insurance liabilities settlement
|
-
|
92
|
|
-
|
-
|
92
|
Liquidity
Asset Bond sale losses
|
(43)
|
(88)
|
|
(10)
|
(9)
|
-
|
Share
of associate (losses)/gains for Business Growth Fund
|
(4)
|
(22)
|
|
1
|
10
|
7
|
Property
strategy update
|
(69)
|
-
|
|
-
|
(69)
|
-
|
Interest
and FX management derivatives not in
|
|
|
|
|
|
|
hedge accounting
relationships
|
79
|
369
|
|
(21)
|
48
|
(46)
|
FX
recycling gains
|
484
|
-
|
|
162
|
-
|
-
|
Ulster
Bank Rol fair value mortgage adjustments
|
-
|
(51)
|
|
-
|
-
|
(51)
|
Tax
interest on prior periods
|
(35)
|
-
|
|
(35)
|
-
|
-
|
|
413
|
95
|
|
95
|
(26)
|
(58)
|
Total income excluding notable items
|
14,339
|
13,061
|
|
3,442
|
3,514
|
3,766
|
|
Year ended
|
||||||
|
31 December 2023
|
|
31
December 2022
|
||||
|
Litigation
|
Other
|
Statutory
|
|
Litigation
|
Other
|
Statutory
|
|
and conduct
|
operating
|
operating
|
|
and
conduct
|
operating
|
operating
|
|
costs
|
expenses
|
expenses
|
|
costs
|
expenses
|
expenses
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
|
|
Staff costs
|
62
|
3,839
|
3,901
|
|
45
|
3,671
|
3,716
|
Premises
and equipment
|
-
|
1,153
|
1,153
|
|
-
|
1,112
|
1,112
|
Depreciation
and amortisation
|
-
|
934
|
934
|
|
-
|
833
|
833
|
Other
administrative expenses
|
293
|
1,715
|
2,008
|
|
340
|
1,686
|
2,026
|
Total
|
355
|
7,641
|
7,996
|
|
385
|
7,302
|
7,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
||
|
|
|
31 December 2023
|
||||
|
|
|
|
|
Litigation
|
Other
|
Statutory
|
|
|
|
|
|
and conduct
|
operating
|
operating
|
|
|
|
|
|
costs
|
expenses
|
expenses
|
|
|
|
|
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
|
|
Staff
costs
|
|
|
|
|
16
|
961
|
977
|
Premises
and equipment
|
|
|
|
|
-
|
308
|
308
|
Depreciation
and amortisation
|
|
|
|
|
-
|
251
|
251
|
Other
administrative expenses
|
|
|
|
|
97
|
521
|
618
|
Total
|
|
|
|
|
113
|
2,041
|
2,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
September 2023
|
||
|
|
|
|
|
Litigation
|
Other
|
Statutory
|
|
|
|
|
|
and
conduct
|
operating
|
operating
|
|
|
|
|
|
costs
|
expenses
|
expenses
|
|
|
|
|
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
|
|
Staff
costs
|
|
|
|
|
15
|
904
|
919
|
Premises
and equipment
|
|
|
|
|
-
|
275
|
275
|
Depreciation
and amortisation
|
|
|
|
|
-
|
214
|
214
|
Other
administrative expenses
|
|
|
|
|
119
|
400
|
519
|
Total
|
|
|
|
|
134
|
1,793
|
1,927
|
|
|
|
|
|
|
|
|
|
|
|
31
December 2022
|
||||
|
|
|
|
|
Litigation
|
Other
|
Statutory
|
|
|
|
|
|
and
conduct
|
operating
|
operating
|
|
|
|
|
|
costs
|
expenses
|
expenses
|
|
|
|
|
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
|
|
Staff
costs
|
|
|
|
|
16
|
1,013
|
1,029
|
Premises
and equipment
|
|
|
|
|
-
|
292
|
292
|
Depreciation
and amortisation
|
|
|
|
|
-
|
220
|
220
|
Other
administrative expenses
|
|
|
|
|
75
|
522
|
597
|
Total
|
|
|
|
|
91
|
2,047
|
2,138
|
|
|
|
|
Central
|
Total
|
|
Retail
|
Private
|
Commercial &
|
items
|
NatWest
|
|
Banking
|
Banking
|
Institutional
|
& other
|
Group
|
Year ended 31 December 2023
|
£m
|
£m
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
Operating expenses
|
2,828
|
685
|
4,091
|
392
|
7,996
|
Less litigation and conduct costs
|
(117)
|
(9)
|
(224)
|
(5)
|
(355)
|
Other operating expenses
|
2,711
|
676
|
3,867
|
387
|
7,641
|
|
|
|
|
|
|
Total income
|
5,931
|
990
|
7,421
|
410
|
14,752
|
|
|
|
|
|
|
Cost:income ratio
|
47.7%
|
69.2%
|
55.1%
|
nm
|
54.2%
|
Cost:income ratio (excl. litigation and conduct)
|
45.7%
|
68.3%
|
52.1%
|
nm
|
51.8%
|
|
|
|
|
|
|
Year ended 31 December 2022
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
Operating expenses
|
2,593
|
622
|
3,744
|
728
|
7,687
|
Less litigation and conduct costs
|
(109)
|
(12)
|
(181)
|
(83)
|
(385)
|
Other operating expenses
|
2,484
|
610
|
3,563
|
645
|
7,302
|
|
|
|
|
|
|
Total income
|
5,646
|
1,056
|
6,413
|
41
|
13,156
|
|
|
|
|
|
|
Cost:income ratio
|
45.9%
|
58.9%
|
58.4%
|
nm
|
58.4%
|
Cost:income ratio (excl. litigation and conduct)
|
44.0%
|
57.8%
|
55.6%
|
nm
|
55.5%
|
Quarter ended 31 December 2023
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
Operating
expenses
|
681
|
206
|
1,092
|
175
|
2,154
|
Less
litigation and conduct costs
|
(34)
|
2
|
(78)
|
(3)
|
(113)
|
Other
operating expenses
|
647
|
208
|
1,014
|
172
|
2,041
|
|
|
|
|
|
|
Total
income
|
1,369
|
209
|
1,832
|
127
|
3,537
|
|
|
|
|
|
|
Cost:income
ratio
|
49.7%
|
98.6%
|
59.6%
|
nm
|
60.9%
|
Cost:income
ratio (excl. litigation and conduct)
|
47.3%
|
99.5%
|
55.3%
|
nm
|
57.7%
|
|
|
|
|
|
|
Quarter ended 30 September 2023
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
Operating
expenses
|
780
|
157
|
1,012
|
(22)
|
1,927
|
Less
litigation and conduct costs
|
(59)
|
-
|
(52)
|
(23)
|
(134)
|
Other
operating expenses
|
721
|
157
|
960
|
(45)
|
1,793
|
|
|
|
|
|
|
Total
income
|
1,442
|
214
|
1,841
|
(9)
|
3,488
|
|
|
|
|
|
|
Cost:income
ratio
|
54.1%
|
73.4%
|
55.0%
|
nm
|
55.2%
|
Cost:income
ratio (excl. litigation and conduct)
|
50.0%
|
73.4%
|
52.1%
|
nm
|
51.4%
|
|
|
|
|
|
|
Quarter
ended 31 December 2022
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
Operating
expenses
|
658
|
198
|
1,031
|
251
|
2,138
|
Less
litigation and conduct costs
|
12
|
(10)
|
(42)
|
(51)
|
(91)
|
Other
operating expenses
|
670
|
188
|
989
|
200
|
2,047
|
|
|
|
|
|
|
Total
income
|
1,617
|
310
|
1,819
|
(38)
|
3,708
|
|
|
|
|
|
|
Cost:income
ratio
|
40.7%
|
63.9%
|
56.7%
|
nm
|
57.7%
|
Cost:income
ratio (excl. litigation and conduct)
|
41.4%
|
60.6%
|
54.4%
|
nm
|
55.2%
|
|
Year ended or as at
|
|
Quarter ended or as at
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
NatWest Group return on tangible
equity
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Profit
attributable to ordinary shareholders
|
4,394
|
3,340
|
|
1,229
|
866
|
1,262
|
Annualised
profit attributable to ordinary shareholders
|
|
|
|
4,916
|
3,464
|
5,048
|
|
|
|
|
|
|
|
Average
total equity
|
36,201
|
38,210
|
|
36,134
|
35,081
|
35,866
|
Adjustment
for other owners equity and intangibles
|
(11,486)
|
(11,153)
|
|
(11,686)
|
(11,583)
|
(11,350)
|
Adjusted
total tangible equity
|
24,715
|
27,057
|
|
24,448
|
23,498
|
24,516
|
|
|
|
|
|
|
|
Return
on equity
|
12.1%
|
8.7%
|
|
13.6%
|
9.9%
|
14.1%
|
Return
on tangible equity
|
17.8%
|
12.3%
|
|
20.1%
|
14.7%
|
20.6%
|
|
Retail
|
Private
|
Commercial &
|
Year ended 31 December 2023
|
Banking
|
Banking
|
Institutional
|
Operating
profit (£m)
|
2,638
|
291
|
3,236
|
Paid-in
equity cost allocation (£m)
|
(55)
|
(23)
|
(165)
|
Adjustment
for tax (£m)
|
(723)
|
(75)
|
(768)
|
Adjusted
attributable profit (£m)
|
1,860
|
193
|
2,303
|
Average
RWAe (£bn)
|
57.8
|
11.4
|
107.0
|
Equity
factor
|
13.5%
|
11.5%
|
14.0%
|
Average
notional equity (£bn)
|
7.8
|
1.3
|
15.0
|
Return
on equity
|
23.8%
|
14.8%
|
15.4%
|
|
|
|
|
Year
ended 31 December 2022
|
|
|
|
Operating
profit (£m)
|
2,824
|
436
|
2,547
|
Paid-in
equity cost allocation (£m)
|
(80)
|
(15)
|
(187)
|
Adjustment
for tax (£m)
|
(768)
|
(118)
|
(590)
|
Adjusted
attributable profit (£m)
|
1,976
|
303
|
1,770
|
Average
RWAe (£bn)
|
53.1
|
11.3
|
104.0
|
Equity
factor
|
13.0%
|
11.0%
|
14.0%
|
Average
notional equity (£bn)
|
6.9
|
1.2
|
14.6
|
Return
on equity
|
28.6%
|
24.5%
|
12.2%
|
|
Retail
|
Private
|
Commercial &
|
Quarter ended 31 December 2023
|
Banking
|
Banking
|
Institutional
|
Operating
profit/(loss) (£m)
|
585
|
(2)
|
725
|
Paid-in
equity cost allocation (£m)
|
(12)
|
(6)
|
(40)
|
Adjustment
for tax (£m)
|
(160)
|
2
|
(171)
|
Adjusted
attributable profit/(loss) (£m)
|
413
|
(6)
|
514
|
Annualised
adjusted attributable profit/(loss) (£m)
|
1,650
|
(23)
|
2,055
|
Average
RWAe (£bn)
|
60.5
|
11.4
|
109.0
|
Equity
factor
|
13.5%
|
11.5%
|
14.0%
|
Average
notional equity (£bn)
|
8.2
|
1.3
|
15.3
|
Return
on equity
|
20.2%
|
(1.8%)
|
13.5%
|
|
|
|
|
Quarter
ended 30 September 2023
|
|
|
|
Operating
profit (£m)
|
493
|
59
|
770
|
Paid-in
equity cost allocation (£m)
|
(13)
|
(6)
|
(39)
|
Adjustment
for tax (£m)
|
(134)
|
(15)
|
(183)
|
Adjusted
attributable profit (£m)
|
346
|
38
|
548
|
Annualised
adjusted attributable profit (£m)
|
1,382
|
153
|
2,193
|
Average
RWAe (£bn)
|
58.5
|
11.4
|
106.7
|
Equity
factor
|
13.5%
|
11.5%
|
14.0%
|
Average
notional equity (£bn)
|
7.9
|
1.3
|
14.9
|
Return
on equity
|
17.5%
|
11.7%
|
14.7%
|
|
|
|
|
Quarter
ended 31 December 2022
|
|
|
|
Operating
profit (£m)
|
872
|
110
|
726
|
Paid-in
equity cost allocation (£m)
|
(20)
|
(6)
|
(46)
|
Adjustment
for tax (£m)
|
(239)
|
(29)
|
(170)
|
Adjusted
attributable profit (£m)
|
613
|
75
|
510
|
Annualised
adjusted attributable profit (£m)
|
2,454
|
300
|
2,040
|
Average
RWAe (£bn)
|
54.4
|
11.2
|
106.0
|
Equity
factor
|
13.0%
|
11.0%
|
14.0%
|
Average
notional equity (£bn)
|
7.1
|
1.2
|
14.8
|
Return
on equity
|
34.7%
|
24.2%
|
13.7%
|
|
Year ended or as at
|
|
Quarter ended or as at
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
|
|
NatWest
Group net interest income
|
11,049
|
9,842
|
|
2,638
|
2,685
|
2,868
|
Annualised
NatWest Group net interest income
|
|
|
|
10,466
|
10,652
|
11,378
|
|
|
|
|
|
|
|
Average
interest earning assets (IEA)
|
520,591
|
544,162
|
|
524,718
|
520,815
|
538,584
|
Less
liquid asset buffer average IEA
|
(157,677)
|
(198,927)
|
|
(158,192)
|
(157,972)
|
(182,797)
|
Bank
average IEA
|
362,914
|
345,235
|
|
366,526
|
362,843
|
355,787
|
|
|
|
|
|
|
|
NatWest
Group net interest margin
|
2.12%
|
1.81%
|
|
1.99%
|
2.05%
|
2.11%
|
Bank
net interest margin
|
3.04%
|
2.85%
|
|
2.86%
|
2.94%
|
3.20%
|
|
|
|
|
|
|
|
Retail Banking
|
|
|
|
|
|
|
Net
interest income
|
5,496
|
5,224
|
|
1,254
|
1,334
|
1,505
|
Annualised
net interest income
|
|
|
|
4,975
|
5,293
|
5,971
|
|
|
|
|
|
|
|
Retail
Banking average IEA
|
222,174
|
210,404
|
|
223,171
|
223,686
|
217,790
|
Less
liquid asset buffer average IEA
|
(16,730)
|
(19,581)
|
|
(15,130)
|
(16,745)
|
(20,383)
|
Adjusted
Retail Banking average IEA
|
205,444
|
190,823
|
|
208,041
|
206,941
|
197,407
|
|
|
|
|
|
|
|
Retail
Banking net interest margin
|
2.68%
|
2.74%
|
|
2.39%
|
2.56%
|
3.02%
|
|
|
|
|
|
|
|
Private Banking
|
|
|
|
|
|
|
Net
interest income
|
710
|
777
|
|
138
|
144
|
251
|
Annualised
net interest income
|
|
|
|
548
|
571
|
996
|
|
|
|
|
|
|
|
Private
Banking average IEA
|
27,072
|
29,308
|
|
26,487
|
26,595
|
29,140
|
Less
liquid asset buffer average IEA
|
(8,088)
|
(10,221)
|
|
(7,835)
|
(7,680)
|
(9,956)
|
Adjusted
Private Banking average IEA
|
18,984
|
19,087
|
|
18,652
|
18,915
|
19,184
|
|
|
|
|
|
|
|
Private
Banking net interest margin
|
3.74%
|
4.07%
|
|
2.94%
|
3.02%
|
5.19%
|
|
|
|
|
|
|
|
Commercial & Institutional
|
|
|
|
|
|
|
Net
interest income
|
5,044
|
4,171
|
|
1,269
|
1,271
|
1,276
|
Annualised
net interest income
|
|
|
|
5,035
|
5,043
|
5,062
|
|
|
|
|
|
|
|
Commercial
& Institutional average IEA
|
244,445
|
245,316
|
|
245,194
|
193,793
|
201,329
|
Less
liquid asset buffer average IEA
|
(112,931)
|
(119,244)
|
|
(111,757)
|
(63,944)
|
(71,039)
|
Adjusted
Commercial & Institutional average IEA
|
131,514
|
126,072
|
|
133,437
|
129,849
|
130,290
|
|
|
|
|
|
|
|
Commercial
& Institutional net interest margin
|
3.84%
|
3.31%
|
|
3.77%
|
3.88%
|
3.89%
|
|
Year ended or as at
|
||
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
Ordinary
shareholders' interests (£m)
|
33,267
|
31,530
|
32,598
|
Less
intangible assets (£m)
|
(7,614)
|
(7,515)
|
(7,116)
|
Tangible equity (£m)
|
25,653
|
24,015
|
25,482
|
|
|
|
|
Ordinary shares in issue (millions) (1)
|
8,792
|
8,871
|
9,659
|
|
|
|
|
TNAV per ordinary share (pence)
|
292p
|
271p
|
264p
|
(1) At
the General Meeting and Class Meeting on 25 August, the
shareholders approved the proposed special dividend and share
consolidation. On 30 August the issued ordinary share capital was
consolidated in the ratio of 14 existing shares for 13 new shares.
Comparatives for the number of shares in issue and TNAV per
ordinary share have not been adjusted. The
number of ordinary shares in issue excludes own shares
held.
|
|
As at
|
||
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
|
£bn
|
£bn
|
£bn
|
Total
customer deposits
|
431.4
|
435.9
|
450.3
|
Less
Central items & other
|
(12.3)
|
(12.4)
|
(17.4)
|
Customer deposits excluding central items
|
419.1
|
423.5
|
432.9
|
|
As at
|
||
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
|
£bn
|
£bn
|
£bn
|
Total
loans to customers (amortised cost)
|
381.4
|
377.3
|
366.3
|
Less
Central items & other
|
(25.8)
|
(22.8)
|
(19.6)
|
Net loans to customers excluding central items
|
355.6
|
354.5
|
346.7
|
|
As at
|
||
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
£m
|
Loans
to customers - amortised cost
|
381,433
|
377,268
|
366,340
|
Less
reverse repos
|
(27,117)
|
(23,095)
|
(19,749)
|
Loans to customers - amortised cost (excl. reverse
repos)
|
354,316
|
354,173
|
346,591
|
|
|
|
|
Customer
deposits
|
431,377
|
435,867
|
450,318
|
Less
repos
|
(10,844)
|
(10,692)
|
(9,828)
|
Customer deposits (excl. repos)
|
420,533
|
425,175
|
440,490
|
|
|
|
|
Loan:deposit
ratio (%)
|
88%
|
87%
|
81%
|
Loan:deposit
ratio (excl. repos and reverse repos) (%)
|
84%
|
83%
|
79%
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
2023
|
2022
|
|
2023
|
2023
|
2022
|
Loan
impairment charge (£m)
|
578
|
337
|
|
126
|
229
|
144
|
Annualised
loan impairment charge (£m)
|
|
|
|
504
|
916
|
576
|
|
|
|
|
|
|
|
Gross
customer loans (£bn)
|
384.9
|
369.7
|
|
384.9
|
380.8
|
369.7
|
|
|
|
|
|
|
|
Loan impairment rate
|
15bps
|
9bps
|
|
13bps
|
24bps
|
16bps
|
|
As at
|
||
|
31 December
|
30
September
|
31
December
|
|
2023
|
2023
|
2022
|
|
£m
|
£m
|
£m
|
Total
assets
|
692,673
|
717,141
|
720,053
|
Less
derivative assets
|
(78,904)
|
(87,504)
|
(99,545)
|
Funded assets
|
613,769
|
629,637
|
620,508
|
|
NATWEST
GROUP plc (Registrant)
|
|
|
|
By: /s/
Jan Cargill
|
|
|
|
Name:
Jan Cargill
|
|
Title:
Chief Governance Officer and Company Secretary
|
1 Year NatWest (PK) Chart |
1 Month NatWest (PK) Chart |
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