NatWest Group plc
Diversified Banking & Financial ServicesFounded 1727- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
NatWest Group plc
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$18.7B
Market Cap
$66.0B
Net Income
$4.5B
Employees
62,100
NatWest's attributable profit of $5.7 billion in FY2024 was 27.3% higher than in FY2023 — not because the bank grew aggressively, but because rising interest rates structurally improved net interest income across a balance sheet that was already well-positioned. Total income grew from $13.7 billion in FY2023 to $14.7 billion in FY2024, with the net interest margin expanding to 2.34% from 2.13% the prior year. The structural hedge is the financial mechanism that makes this more than just a rate-cycle benefit. NatWest holds a $694.7 billion interest-rate derivatives portfolio that was specifically constructed to extend the benefit of higher rates beyond the period when the Bank of England might cut them. The hedge's income contribution is expected to increase by $1.9 billion in 2026 compared with 2025, and by a further $1 billion in 2027. Even as the Bank of England cut rates from 5.25% to 4.5% in 2024, NatWest's net interest margin continued to expand — because the hedge was doing exactly what it was designed to do. Non-interest income of $4.4 billion, representing 23.3% of total income, comes primarily from fees and commissions. This is a lower percentage than UK peers, which means NatWest's revenue is more sensitive to rate movements and less diversified by trading income. That concentration is the primary reason analysts have historically applied a discount to NatWest's valuation relative to Lloyds or Barclays. The return on tangible equity of 17.5% in FY2024 represents a substantial improvement from 14.3% in FY2023 and compares favorably against NatWest's own target range. The market capitalization of $65.96 billion at fiscal year-end reflected improved investor sentiment following the government's exit from its ownership stake — an overhang that had suppressed the share price for years by creating the persistent risk of large secondary market share sales.
Revenue Trend Analysis
YoY Change
+13.2%
2-Year CAGR
+10.2%
Peak Year
2025
Trend
Consistent Growth
NatWest Group plc has reported revenue across 3 fiscal years, compounding at +10.2% annually over 2 years. The most recent year saw a 13.2% increase versus the prior year. Revenue peaked in 2025 at $16.6B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $16.6B | — | +13.2% |
| FY2024 | $14.7B | $4.5B | +7.3% |
| FY2023 | $13.7B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
NatWest Group reported total income of $14.7 billion in FY2024, up from $13.7 billion in FY2023 — a year-over-year increase of 7.3%. The growth was driven primarily by net interest income expansion as the structural hedge offset Bank of England rate cuts and deposit margin improvement contributed to the net interest margin widening to 2.13% in FY2024 (rising further to 2.34% by FY2025). Attributable profit to ordinary shareholders was $5.7 billion in FY2024, representing a 27.3% increase over FY2023, reflecting higher income, stable costs, and lower-than-expected loan impairment charges. The loan impairment rate was 9 basis points in FY2024 — exceptionally low by historical standards — supported by the prime quality of NatWest's mortgage book (85% of retail mortgages at loan-to-value ratios below 80%) and disciplined underwriting. Return on tangible equity reached 17.5% in FY2024, up from 14.3% in FY2023, comfortably within the group's target range. Non-interest income of $4.4 billion (23.3% of total) was somewhat lower as a percentage than UK peers, reflecting the group's greater sensitivity to interest rate movements. The cost-to-income ratio (excluding litigation and conduct costs) improved to 53.4% from 55.3% in FY2023. Total assets stood at $899.2 billion, with a Common Equity Tier 1 ratio of 13.6% — well above the regulatory minimum of 11.9%. Market capitalization at fiscal year-end was $65.96 billion.
NatWest Group has delivered three consecutive years of revenue growth from FY2023 to FY2025. Total income was $13.7 billion in FY2023, rising to $14.7 billion in FY2024 — a 7.3% increase driven by net interest margin expansion and the early benefit of the structural hedge. By FY2025, total income increased further to $16.6 billion, representing 12.9% growth over FY2024. The net interest margin expanded from approximately 2.13% in FY2024 to 2.34% in FY2025, as the structural hedge continued to deliver above-market yields on floating-rate assets even as the Bank of England cut rates. The Retail Banking segment showed particularly strong momentum, with income growing 15.0% in FY2025, partly aided by the acquisition of Sainsbury's Bank credit card balances in 2024, which added approximately $3.4 billion in receivables to the unsecured lending book. Attributable profit grew from $4.5 billion in FY2023 to $5.7 billion in FY2024, with FY2025 results benefiting from the hedge income step-up. The revenue trajectory reflects the execution of NatWest's UK-focused strategy: growing the mortgage book, expanding the unsecured lending portfolio, and capturing fee income growth from Commercial & Institutional clients. Management's guidance for 2026 and 2027 projects continued income growth, supported by $1.9 billion in additional hedge income in 2026 and $1.0 billion more in 2027.
NatWest Group's market capitalization was $65.96 billion as of fiscal year-end 2024, reflecting a significant re-rating from the depressed valuations of the government-ownership era. The share price recovery was driven by three factors: improved profitability (17.5% return on tangible equity in FY2024), the progressive reduction and eventual elimination of the UK government's ownership stake in 2025, and structural earnings visibility from the interest-rate hedge. The group's balance sheet totals $899.2 billion in assets, with a Common Equity Tier 1 (CET1) ratio of 13.6% in FY2024, rising to 14.0% in FY2025 — well above the regulatory minimum of 11.9% and above the group's own target of 13-14%. This capital surplus has supported an aggressive return-of-capital program: capital generation pre-distributions was 243 basis points in FY2024, supporting ordinary dividends equivalent to approximately 50% of attributable profit plus $1.3 billion in share buybacks in 2024. A further $952 million share buyback program was announced for H1 2026. The group's loan-to-deposit ratio was 85% in FY2024, rising to 88% in FY2025, indicating disciplined balance sheet growth. The CET1 surplus above the 13% floor provides approximately $3-4 billion in deployable capital for acquisitions, additional buybacks, or investment in growth initiatives — a degree of financial flexibility the group has not enjoyed since before the 2008 crisis.
The 2008 financial crisis inflicted catastrophic financial damage on Royal Bank of Scotland, the predecessor entity of NatWest Group. RBS reported a £24.1 billion ($30.6 billion) net loss in 2008 — the largest annual corporate loss in British history at that time — driven by $20.8 billion in credit impairments, write-downs on ABN AMRO goodwill, and structured credit losses. The UK government injected £45 billion ($57.8 billion) of capital in exchange for approximately 84% of the bank's equity, at an average price of approximately 502 pence per share. The government subsequently injected additional capital in 2009 through the Asset Protection Scheme, which insured a further $390 billion of toxic assets for a fee. Over the 16-year divestment period from 2015 to 2025, the government sold shares at prices ranging from approximately 220p to 450p, crystallizing a net loss when compared to the average in-price — the government estimated total taxpayer losses of approximately £6 billion after accounting for fees, dividends, and share sale proceeds. However, the systemic benefit of preventing RBS's collapse — which would have threatened UK financial stability and potentially triggered a broader banking system failure — is considered to have justified the cost. For NatWest Group itself, the bailout imposed 16 years of strategic constraints, restricted executive compensation, and suppressed valuation multiples that only normalized after the government's exit in 2025.
Using these figures? Please credit CorpDigest with a link.
CorpDigest. "NatWest Group plc Revenue & Financials." CorpDigest, https://corpdigest.com/company/natwest/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>NatWest Group plc reported $17B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/natwest/financials" target="_blank" rel="noopener">CorpDigest — NatWest Group plc financials</a></div>