NatWest Group plc Revenue & Financials

NatWest Group reported total income of $18.7 billion in FY2024, an increase of 7.2% from $17.4 billion in FY2023, with attributable profit to ordinary shareholders rising to $5.7 billion from $4.5 billion — a 27.3% year-over-year increase. The group's net interest income of $14.3 billion represented 76.7% of total income, up from $13.4 billion in 2023, driven by deposit margin expansion and the pass-through of higher Bank of England base rates to the loan book. Non-interest income of $4.4 billion increased 10.1% from $4.0 billion, reflecting strong customer activity in markets trading, capital markets underwriting, and higher lending and financing fees. The net interest margin expanded by 10 basis points to 2.13% in FY2024, reflecting the shift in deposit mix from non-interest-bearing to interest-bearing products and the benefit of the structural hedge. Operating expenses totaled $10.4 billion, including $374.6 million in litigation and conduct costs. The cost-to-income ratio excluding litigation and conduct improved to 53.4% from 55.3% in 2023, reflecting simplification initiatives and headcount reduction. The group reduced full-time equivalent employees from 63,700 in 2023 to 62,100 in 2024, a 2.5% decrease, through digital automation and branch consolidation. Loan impairment charges were $455.9 million, or 9 basis points of gross customer loans, up from $391.2 million in 2023 but still well below the 25 basis point target ceiling. The increase reflected higher Stage 3 charges in the retail unsecured book due to the cost-of-living crisis, partially offset by good book releases. Profit before tax reached $7.9 billion, up 15.7% from $6.8 billion in 2023. The tax charge of $1.9 billion represented an effective tax rate of 23.6%, reflecting the UK corporation tax rate of 25%. Return on tangible equity was 17.5% in FY2024, up from 14.3% in 2023, driven by higher profitability and disciplined capital management. Return on equity was 11.9%. Earnings per share increased to 53.5 pence from 41.9 pence, supporting a total dividend of 21.5 pence per share and $1.3 billion in share buybacks. The group's balance sheet remained robust: total assets of $899.2 billion, net loans to customers of $508.4 billion, and customer deposits of $550.5 billion. The loan-to-deposit ratio was 85%, providing a stable funding base. Risk-weighted assets totaled $232.7 billion, with a CET1 ratio of 13.6% — 20 basis points higher than 2023 and well above the regulatory minimum of 11.9%. The group's leverage ratio was 5.0%, and the Liquidity Coverage Ratio averaged 147%, providing $64.1 billion in headroom above the 100% minimum. Tangible net asset value per share increased to 329 pence from 302 pence, reflecting retained earnings and buyback accretion. Capital generation pre-distributions was 243 basis points, supporting the dividend policy of distributing approximately 50% of attributable profit. The group's FY2025 results accelerated this trajectory: total income of $21.1 billion, attributable profit of $7.0 billion, RoTE of 19.2%, and CET1 of 14.0%. The bank proposed a final dividend of 23.0 pence, bringing the full-year total to 32.5 pence — a 51% increase from 2024 — and announced a $952.5 million share buyback for H1 2026.