UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
July, 2026
Commission File Number 001-10306
NatWest Group plc
250 Bishopsgate,
London, EC2M 4AA
United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒
Form 40-F ☐
The
following information was issued as Company announcements in
London, England and is furnished pursuant to General Instruction B
to the General Instructions to Form 6-K:
Condensed consolidated income statement
for the period ended 30 June 2026 (unaudited)
Half
year ended
30 June
30 June
2026
2025
£m
£m
Interest receivable
13,043
12,673
Interest payable
(6,153)
(6,553)
Net interest income
6,890
6,120
Fees and commissions receivable
1,710
1,608
Fees and commissions payable
(393)
(368)
Trading income
386
575
Other operating income
269
50
Non-interest income
1,972
1,865
Total income
8,862
7,985
Staff costs
(2,134)
(2,129)
Premises and equipment
(628)
(587)
Other administrative expenses
(794)
(745)
Depreciation and amortisation
(565)
(557)
Operating expenses
(4,121)
(4,018)
Profit before impairment losses
4,741
3,967
Impairment losses
(423)
(382)
Operating profit before tax
4,318
3,585
Tax charge
(1,138)
(910)
Profit for the period
3,180
2,675
Attributable to:
Ordinary shareholders
3,035
2,488
Paid-in equity holders
149
186
Non-controlling interests
(4)
1
3,180
2,675
Earnings per share attributable to ordinary shareholders –
basic
38.1p
30.9p
Earnings per share attributable to ordinary shareholders –
diluted
37.7p
30.5p
Condensed consolidated statement of comprehensive
income
for the period ended 30 June 2026 (unaudited)
Half year ended
30 June
30 June
2026
2025
£m
£m
Profit for the period
3,180
2,675
Items that do not qualify for
reclassification
Remeasurement of retirement benefit schemes
7
9
Changes in fair value of financial liabilities designated at fair
value through profit or loss (FVTPL) due to changes in credit
risk
6
(1)
FVOCI financial assets
2
49
Tax
1
(2)
16
55
Items that do qualify for
reclassification
FVOCI financial assets
63
63
Cash flow hedges (1)
(36)
658
Currency translation
(153)
(95)
Tax
(14)
(192)
(140)
434
Other comprehensive (losses)/income after tax
(124)
489
Total comprehensive income for the period
3,056
3,164
Attributable to:
Ordinary shareholders
2,911
2,977
Paid-in equity holders
149
186
Non-controlling interests
(4)
1
3,056
3,164
(1)
Refer to footnote 4 and 5 of the condensed consolidated statement
of changes in equity.
Condensed consolidated balance sheet
as at 30 June 2026 (unaudited)
30 June
31 December
2026
2025
£m
£m
Assets
Cash and balances at central banks
76,743
85,182
Trading assets
47,366
46,537
Derivatives
63,157
60,789
Settlement balances
10,015
645
Loans to banks – amortised cost
7,342
6,958
Loans to customers – amortised cost
435,908
418,881
Other financial assets
86,552
79,770
Other assets (including intangible assets)
18,284
15,791
Total assets
745,367
714,553
Liabilities
Bank deposits
50,002
44,092
Customer deposits
448,605
442,998
Settlement balances
9,995
942
Trading liabilities
50,637
49,022
Derivatives
56,256
53,974
Other financial liabilities
72,034
67,599
Subordinated liabilities
6,606
6,123
Notes in circulation
3,110
3,164
Other liabilities
4,294
4,026
Total liabilities
701,539
671,940
Equity
Ordinary shareholders’ interests
38,748
38,028
Other owners’ interests
5,070
4,571
Owners’ equity
43,818
42,599
Non-controlling interests
10
14
Total equity
43,828
42,613
Total liabilities and equity
745,367
714,553
Condensed consolidated statement of changes in equity
for the period ended 30 June 2026 (unaudited)
Share
Other
Other reserves
Total
Non
capital and
Paid-in
statutory
Retained
Fair
Cash flow
Foreign
owners’
controlling
Total
share premium
equity
reserves (3)
earnings
value
hedging (4,5)
exchange (6)
Merger
equity
interests
equity
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January 2026
10,021
4,571
2,613
14,419
13
(752)
833
10,881
42,599
14
42,613
Profit attributable to ordinary shareholders
and other equity
owners
3,184
3,184
(4)
3,180
Other comprehensive income
Remeasurement of retirement benefit schemes
7
7
7
Changes in fair value of credit in financial
liabilities
designated at FVTPL due to own
credit risk
6
6
6
Unrealised gains
91
91
91
Amounts recognised in equity
(201)
(201)
(201)
Retranslation of net assets
(58)
(58)
(58)
Gains on hedges of net assets
36
36
36
Reclassification of OCI to Income statement
(26)
165
(131)
8
8
Tax
(2)
(14)
8
(5)
(13)
(13)
Total comprehensive income/(losses)
3,195
51
(28)
(158)
–
3,060
(4)
3,056
Transactions with owners
Ordinary share dividends paid
(1,835)
(1,835)
–
(1,835)
Paid in equity dividends paid
(149)
(149)
(149)
Paid-in equity issued (1)
499
499
499
Shares repurchased (2)
(85)
85
(479)
(479)
(479)
Sharing in success
(27)
(27)
(27)
Employee share schemes
45
45
45
Shares vested under employee share schemes
114
114
114
Share-based remuneration
(9)
(9)
(9)
At 30 June 2026
9,936
5,070
2,812
15,160
64
(780)
675
10,881
43,818
10
43,828
For the notes to this table, refer to the following
page.
Condensed consolidated statement of changes in equity for the
period ended 30 June 2026 (unaudited) continued
Share
Other
Other reserves
Total
Non
capital and
Paid-in
statutory
Retained
Fair
Cash flow
Foreign
owners’
controlling
Total
share premium
equity
reserves (3)
earnings
value
hedging (4,5)
exchange
Merger
equity
interests
equity
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January 2025
10,133
5,280
2,350
11,426
(103)
(1,443)
826
10,881
39,350
28
39,378
Profit attributable to ordinary shareholders
and other equity
owners
2,674
2,674
1
2,675
Other comprehensive income
Realised losses in period on FVOCI equity shares
(2)
2
–
–
Remeasurement of retirement benefit schemes
9
9
9
Changes in fair value of credit in financial
liabilities
designated at FVTPL due to own
credit risk
(1)
(1)
(1)
Unrealised gains
116
116
116
Amounts recognised in equity
102
102
102
Retranslation of net assets
(55)
(55)
(55)
Losses on hedges of net assets
(40)
(40)
(40)
Amount transferred from equity to earnings
(4)
556
–
552
552
Tax
(2)
(19)
(186)
13
(194)
(194)
Total comprehensive income/(losses)
2,678
95
472
(82)
–
3,163
1
3,164
Transactions with owners
Ordinary share dividends paid
(1,250)
(1,250)
–
(1,250)
Paid in equity dividends
(186)
(186)
(186)
Paid-in equity issued (1)
749
749
749
Purchase of non-controlling interest
(10)
(10)
(11)
(21)
Employee share schemes
32
32
32
Shares vested under employee share schemes
121
121
121
Share-based remuneration
(11)
(11)
(11)
At 30 June 2025
10,133
6,029
2,471
12,679
(8)
(971)
744
10,881
41,958
18
41,976
(1)
The issuance above is after netting of issuance fees of £1.5
million (2025 – £1.6 million), and the associated tax credit
of £0.4 million (2025 – £0.4 million).
(2)
As part of the On Market Share Buyback Programmes NatWest Group plc
repurchased and cancelled 78.5 million shares in 2026. The total
consideration of these shares excluding fees was £474.3
million. The nominal value of the share cancellations was
transferred to the capital redemption reserve.
There were no outstanding share repurchases in
June that settled in July 26.
(3)
Other statutory reserves consist of Capital redemption reserves of
£3,415 million (2025 – £3,218 million) and Own shares
held reserves of £603 million (2025 – £747
million).
(4)
The change in the cash flow hedging reserve is driven by realised
accrued interest transferred to the income statement and an
increase in swap rates in the period, where the portfolio of swaps
are net receive fixed from an interest rate risk
perspective.
(5)
The amount transferred from equity to the income statement is
mostly recorded within net interest income mainly within loans to
banks and customers – amortised cost, balances at central banks,
bank deposits and customer deposits.
(6)
Includes foreign exchange reserves recycling arising from the
wind-down of Ulydien Designated Activity Company (£92 million)
and capital repatriation from NatWest Markets Group Holdings
Corporation (£38 million).
Condensed consolidated cash flow statement
for the period ended 30 June 2026 (unaudited)
Half year ended
30 June
30 June
2026
2025
£m
£m
Cash flows from operating activities
Operating profit before tax
4,318
3,585
Adjustments for non-cash and other items
774
350
Net cash flows from trading activities
5,092
3,935
Changes in operating assets and liabilities
1,163
2,088
Net cash flows from operating activities before tax
6,255
6,023
Income taxes paid
(1,057)
(906)
Net cash flows from operating activities
5,198
5,117
Net cash flows from investing activities
(7,375)
(7,896)
Net cash flows from financing activities
(4,026)
418
Effects of exchange rate changes on cash and cash
equivalents
(244)
391
Net decrease in cash and cash equivalents
(6,447)
(1,970)
Cash and cash equivalents at beginning of period
95,433
104,845
Cash and cash equivalents at end of period
88,986
102,875
Notes
1. Presentation of condensed consolidated financial
statements
The condensed consolidated financial statements should be read in
conjunction with the NatWest Group plc 2025 Annual Report and
Accounts. The accounting policies are the same as those applied in
the consolidated financial statements except for the addition of
Business combinations, noted below, resulting from the acquisition
of Evelyn Partners on 30 June 2026. The Group has not early adopted
any standard, interpretation or amendment that has been issued but
is not yet effective.
The condensed consolidated financial statements include the related
notes, as well as the information marked as ‘reviewed’ within pages
21 to 68.
The Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 and IFRS 7 – issued May 2024)
were adopted on 1 January 2026. NatWest Group has made an
accounting policy election to derecognise financial liabilities
before the settlement date where they are settled using electronic
payment systems that satisfy the specified conditions in IFRS 9.
The amendments had no material impact on the financial performance
or position of NatWest Group.
The directors have prepared the condensed consolidated financial
statements on a going concern basis after assessing the principal
risks, forecasts, projections and other relevant evidence over the
twelve months from the date they are approved and in accordance
with IAS 34 Interim Financial Reporting, as adopted by the UK and
as issued by the International Accounting Standards Board
(IASB).
Business combinations
Acquisitions of businesses are accounted for using the acquisition
method. The consideration transferred in a business combination is
measured at fair value. Acquisition-related costs are recognised in
profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the
liabilities assumed are recognised at their fair value at the
acquisition date, except that:
●
deferred
tax assets or liabilities and assets or liabilities related to
employee benefit arrangements are recognised and measured in
accordance with IAS 12 Income
Taxes and
IAS 19 Employee
Benefits respectively;
and
●
liabilities or equity instruments
related to share-based payment arrangements of the acquiree or
share-based payment arrangements of the group entered into to
replace share-based payment arrangements of the acquiree are
measured in accordance with IFRS 2 Share-based
Payment at
the acquisition date.
The excess of the sum of the consideration transferred over the
fair value of the identifiable assets acquired and the liabilities
assumed is recognised as goodwill.
The fair value measurement of identifiable assets acquired and
liabilities assumed may be adjusted if additional information is
obtained during the measurement
period (which cannot exceed one year from the acquisition date)
about facts and circumstances that existed at the acquisition
date.
In relation to the acquisition of Evelyn Partners, NatWest Group
made significant judgements in respect of valuation techniques and
modelling assumptions used to determine the fair value of
identifiable assets acquired and liabilities assumed.
NatWest Group has applied judgement in determining the allocation
of acquired goodwill to the group of cash-generating units expected
to benefit from the acquisition.
Further information on the acquisition of Evelyn Partners during
the current period is included in Note 2.
The estimated useful economic lives set out in the intangible
assets accounting policy, would be expanded to
include:
Customer relationships
13 to 14 years
Brand
10 years
Notes continued
2. Acquisition of Evelyn Partners
Acquisition overview
On 30 June 2026, NatWest Group acquired 100% of the issued share
capital of Evelyn Partners Group Limited (Evelyn Partners) for
total consideration of £2.2 billion, determined by adjusting
the enterprise value of £2.7 billion to reflect the cash, debt
and working capital position of Evelyn Partners on acquisition
date.
Evelyn Partners is a UK-based wealth management and professional
services business providing investment management, financial
planning and advisory services to retail, mass affluent and
high-net-worth clients.
The acquisition accelerates NatWest Group’s strategy, increasing
the proportion of earnings generated from capital-light, fee-based
income streams.
The acquisition has been accounted for as a business combination
using the acquisition method in accordance with IFRS 3 Business
Combinations.
Consideration transferred
£m
Cash consideration
2,187
Share based payment awards attributable to pre-combination
services
20
Total consideration transferred
2,207
Provisional fair values of identifiable net assets
acquired
The fair values assigned to the identifiable assets acquired and
liabilities assumed at the acquisition date are provisional and may
be adjusted during the measurement period of up to 12 months from
the acquisition date as permitted by IFRS 3.
A summary of the provisional fair values recognised is set out
below:
£m
Cash
172
Right of use assets
43
Property, plant and equipment
29
Identifiable intangible assets
1,260
Other assets
157
Borrowings
(674)
Deferred tax liabilities
(299)
Lease liabilities
(57)
Other liabilities
(147)
Net identifiable assets acquired
484
Goodwill recognised
1,723
The principal identifiable intangible assets recognised
comprise:
●
customer
relationships;
●
brand-related
intangible assets; and
●
technology
and software assets.
The goodwill recognised is principally attributable
to:
●
expected
revenue synergies from combining NatWest Group’s customer base with
Evelyn Partners’ wealth management and advice
capabilities;
●
the
value of the assembled workforce and management expertise of the
acquired business; and
●
future
growth opportunities and strategic benefits that do not meet the
criteria for separate recognition as identifiable intangible
assets.
None of the goodwill recognised is expected to be deductible for
tax purposes.
Measurement period adjustments
The purchase price allocation remains subject to refinement as
NatWest Group finalises the valuation of acquired intangible assets
and certain provisions and tax balances.
The valuation of customer relationships and investment management
contracts is sensitive to assumptions relating to:
●
expected
future assets under management;
●
client
retention;
●
fee
margins;
●
discount
rates; and
●
EBITDA
margin.
Any adjustments identified during the measurement period will be
recognised retrospectively in accordance with IFRS 3.
Transactions accounted for separately
On acquisition date, the following transactions have been accounted
for separately to the acquisition:
●
external
debt held by Evelyn Partners amounting to £674 million was
repaid, resulting in an outflow of cash and reduction in borrowings
by £674 million;
●
management
loans held by previous investors in Evelyn Partners amounting to
£11 million were settled, resulting in a cash inflow of
£11 million.
Notes continued
2. Acquisition of Evelyn Partners continued
Impact on the consolidated income statement
Evelyn Partners was acquired on 30 June 2026, therefore had no
contribution to the income statement of NatWest Group as at 30 June
2026.
During the period, NatWest Group recognised £28 million of
acquisition-related costs within Operating expenses.
Impact on the consolidated balance sheet
As at the 30 June 2026, the acquisition resulted in an increase in
NatWest Group’s:
●
goodwill;
●
other
intangible assets; and
●
other
assets and liabilities associated with the acquired
business.
Impact on the cash flow statement
£m
Cash consideration paid
2,187
Less: cash and cash equivalents acquired
172
Net cash outflow on acquisition
2,015
The net cash outflow on acquisition is presented within investing
activities in the condensed consolidated cash flow
statement.
Illustrative pro forma information
Had the acquisition occurred on 1 January 2026, management
estimates that NatWest Group would have reported:
£m
Total income
9,139
Profit after tax
3,162
The pro forma information is presented for illustrative purposes
only and is not necessarily indicative of the results of operations
that would have been achieved had the acquisition been completed on
that date, nor is it intended to be a projection of future
results.
In determining these amounts, management has assumed that the fair
value adjustments that arose on acquisition as part of the purchase
price allocation would have been the same and that the external
debt would have still have been paid off immediately if the
acquisition had occurred on 1 January 2026, resulting in an
additional amortisation charge relating to the additional
identifiable intangible assets recognised
and a decrease in the interest expense recognised in relation to
the external debt.
Notes continued
3. Net interest income
Half year ended
30 June
30 June
2026
2025
£m
£m
Balances at central banks and loans to banks – amortised
cost
1,443
1,769
Loans to customers – amortised cost
9,960
9,412
Other financial assets
1,640
1,492
Interest receivable
13,043
12,673
Bank deposits
974
854
Customer deposits
3,524
3,918
Other financial liabilities
1,485
1,579
Subordinated liabilities
170
202
Interest payable
6,153
6,553
Net interest income
6,890
6,120
4. Non-interest income
Half year ended
30 June
30 June
2026
2025
£m
£m
Net fees and commissions (1)
1,317
1,240
Foreign exchange
219
232
Interest rate (2)
153
281
Credit
12
57
Changes in fair value of own debt and derivative liabilities
attributable to own credit risk – debt securities in
issue
1
3
Equities, commodities and other
1
2
Income from trading activities
386
575
Rental income on operating lease assets and investment
property
115
108
Changes in fair value of financial assets and liabilities
designated at FVTPL (3)
(63)
(85)
Changes in fair value of other financial assets and liabilities
designated at FVTPL (4)
17
22
Hedge ineffectiveness
15
(13)
Profit on disposal of fair value through other comprehensive income
asset
26
4
Loss on disposal of subsidiaries and associates
(15)
–
Share of profit of associated entities
18
14
Foreign exchange recycling profit (5)
133
1
Other income
23
(1)
Other operating income
269
50
Non-interest income
1,972
1,865
(1)
Refer to Note 6 for further analysis.
(2)
Includes fair value changes on derivatives not designated in a
hedge accounting relationship, and gains and losses from structural
hedges.
(3)
Includes related derivatives.
(4)
Includes instruments that have failed solely payments of principal
and interest testing under IFRS 9.
(5)
Refer to footnote 6 of the Condensed consolidated statement of
changes in equity.
Notes continued
5. Operating expenses
Half year ended
30 June
30 June
2026
2025
£m
£m
Salaries
1,209
1,237
Bonus awards
296
271
Temporary and contract costs
74
79
Social security costs
227
207
Pension costs
164
173
– defined benefit
schemes
35
52
– defined contribution
schemes
129
121
Other
164
162
Staff costs
2,134
2,129
Premises and equipment
628
587
Depreciation and amortisation (1)
565
557
Other administrative expenses
794
745
Administrative expenses
1,987
1,889
Operating expenses
4,121
4,018
(1)
Includes depreciation of right of use assets of £43 million
(30 June 2025 – £47 million).
6. Segmental analysis
The business is organised into the following reportable segments:
Retail Banking,
Private Banking & Wealth Management, Commercial &
Institutional and Central items & other.
Analysis of operating profit/(loss) before tax
The following tables provide a segmental analysis of operating
profit/(loss) before tax by the main income statement
captions.
Private Banking &
Retail
Wealth
Commercial &
Central items &
Banking
Management
Institutional
other
Total
Half year ended 30 June 2026
£m
£m
£m
£m
£m
Net interest income
3,165
398
3,367
(40)
6,890
Net fees and commissions
265
178
871
3
1,317
Other non-interest income
8
19
391
237
655
Total income
3,438
595
4,629
200
8,862
Depreciation and amortisation
(13)
(1)
(62)
(489)
(565)
Other operating expenses
(1,416)
(376)
(2,146)
382
(3,556)
Impairment losses
(280)
(6)
(137)
–
(423)
Operating profit
1,729
212
2,284
93
4,318
Notes continued
6. Segmental analysis continued
Analysis of operating profit/(loss) before tax
Private Banking &
Retail
Wealth
Commercial &
Central items &
Banking
Management
Institutional
other
Total
Half year ended 30 June 2025
£m
£m
£m
£m
£m
Net interest income
2,922
363
2,955
(120)
6,120
Net fees and commissions
213
159
865
3
1,240
Other non-interest income
(1)
17
469
140
625
Total income
3,134
539
4,289
23
7,985
Depreciation and amortisation
–
–
(71)
(486)
(557)
Other operating expenses
(1,423)
(359)
(2,080)
401
(3,461)
Impairment losses
(226)
(1)
(154)
(1)
(382)
Operating profit/(loss)
1,485
179
1,984
(63)
3,585
Total revenue (1)
Private Banking &
Retail
Wealth
Commercial &
Central items &
Banking
Management
Institutional
other
Total
Half year ended 30 June 2026
£m
£m
£m
£m
£m
External
5,312
634
6,631
2,831
15,408
Inter-segmental
7
691
(665)
(33)
–
Total
5,319
1,325
5,966
2,798
15,408
Half year ended 30 June 2025
External
4,916
617
6,729
2,644
14,906
Inter-segmental
6
774
(794)
14
–
Total
4,922
1,391
5,935
2,658
14,906
(1) Total
revenue comprises interest receivable, fees and commissions
receivable, income from trading activities and other operating
income.
Total assets and liabilities
Private Banking &
Retail
Wealth
Commercial &
Central items &
Banking
Management
Institutional
other
Total
30 June 2026
£m
£m
£m
£m
£m
Assets
247,472
32,899
422,116
42,880
745,367
Liabilities
205,933
42,139
377,800
75,667
701,539
31 December 2025
Assets
240,259
30,457
391,869
51,968
714,553
Liabilities
206,398
42,895
354,499
68,148
671,940
Notes continued
6. Segmental analysis continued
Analysis of net fees and commissions
Private Banking
Retail
& Wealth
Commercial
Central items
Banking
Management
& Institutional
& other
Total
Half year ended 30 June 2026
£m
£m
£m
£m
£m
Fees and commissions receivable
– Payment
services
191
19
358
–
568
– Credit and debit card
fees
207
10
133
–
350
– Lending and
financing
8
4
385
–
397
– Brokerage
68
6
25
–
99
– Investment management, trustee
and fiduciary services
2
148
27
8
185
– Underwriting
fees
–
–
93
–
93
– Other
10
3
19
(14)
18
Total
486
190
1,040
(6)
1,710
Fees and commissions payable
(221)
(12)
(169)
9
(393)
Net fees and commissions
265
178
871
3
1,317
Half year ended 30 June 2025
Fees and commissions receivable
– Payment
services
176
20
355
–
551
– Credit and debit card
fees
203
10
133
–
346
– Lending and
financing
8
4
370
–
382
– Brokerage
19
5
28
–
52
– Investment management, trustee
and fiduciary services
1
126
25
10
162
– Underwriting
fees
–
–
88
–
88
– Other
5
2
28
(8)
27
Total
412
167
1,027
2
1,608
Fees and commissions payable
(199)
(8)
(162)
1
(368)
Net fees and commissions
213
159
865
3
1,240
Notes
continued
7. Tax
The actual tax charge differs from the expected tax charge computed
by applying the standard UK corporation tax rate of 25% (2025 –
25%), as analysed below:
Half year ended
30 June
30 June
2026
2025
£m
£m
Profit before tax
4,318
3,585
Expected tax charge
(1,080)
(896)
Losses and temporary differences in period where no deferred tax
assets recognised
(3)
(4)
Foreign profits taxed at other rates
4
21
Items not allowed for tax:
– losses on disposals and
write-downs
(6)
5
– UK bank
levy
(17)
(17)
– regulatory and legal
actions
(3)
(16)
– other disallowable
items
(24)
(14)
Non-taxable items:
– FX recycling on Ulydien capital
reduction
22
–
– RPI-related uplift on
index-linked gilts
17
9
– other non-taxable
items
5
15
Taxable foreign exchange movements
1
(3)
Unrecognised losses bought forward and utilised
23
18
Net increase in the carrying value of deferred tax assets in
respect of UK losses
–
26
Banking surcharge
(110)
(95)
Tax on paid-in equity dividends
37
40
Adjustments in respect of prior years
(4)
1
Actual tax charge
(1,138)
(910)
At 30 June 2026, NatWest Group has recognised a deferred tax asset
of £1,149 million (31 December 2025 – £1,252 million) and
a deferred tax liability of £376 million (31 December 2025 –
£104 million). These
amounts include deferred tax assets recognised in respect of
trading losses of £741 million (31 December 2025 – £814
million). NatWest
Group has
considered the carrying value of these assets as at 30 June 2026
and concluded that they are recoverable.
Deferred tax liabilities of £299 million relate to the net
identifiable assets acquired as part of the Evelyn Partners
acquisition (refer to Note 2 for further information).
Notes continued
8. Financial instruments – classification
The following tables analyse financial assets and liabilities in
accordance with the categories of financial instruments in IFRS
9.
Amortisedcost
Otherassets
MFVTPL
DFV
FVOCI
Total
Assets
£m
£m
£m
£m
£m
£m
Cash and balances at central banks
76,743
76,743
Trading assets
47,366
47,366
Derivatives (1)
63,157
63,157
Settlement balances
10,015
10,015
Loans to banks – amortised cost (2)
7,342
7,342
Loans to customers – amortised cost (3)
435,908
435,908
Other financial assets
810
7
50,647
35,088
86,552
Intangible assets
10,205
10,205
Other assets
8,079
8,079
30 June 2026
111,333
7
50,647
565,096
18,284
745,367
Cash and balances at central banks
85,182
85,182
Trading assets
46,537
46,537
Derivatives (1)
60,789
60,789
Settlement balances
645
645
Loans to banks – amortised cost (2)
6,958
6,958
Loans to customers – amortised cost (3)
418,881
418,881
Other financial assets
1,041
3
42,168
36,558
79,770
Intangible assets
7,292
7,292
Other assets
8,499
8,499
31 December 2025
108,367
3
42,168
548,224
15,791
714,553
For the notes to this table refer to the following
page.
Notes continued
8. Financial instruments – classification continued
Held-for-trading
Amortisedcost
Otherliabilities
DFV
Total
Liabilities
£m
£m
£m
£m
£m
Bank deposits (4)
50,002
50,002
Customer deposits
448,605
448,605
Settlement balances
9,995
9,995
Trading liabilities
50,637
50,637
Derivatives (1)
56,256
56,256
Other financial liabilities (5,7)
4,790
67,244
72,034
Subordinated liabilities
230
6,376
6,606
Notes in circulation
3,110
3,110
Other liabilities (6)
600
3,694
4,294
30 June 2026
106,893
5,020
585,932
3,694
701,539
Bank deposits (4)
44,092
44,092
Customer deposits
442,998
442,998
Settlement balances
942
942
Trading liabilities
49,022
49,022
Derivatives (1)
53,974
53,974
Other financial liabilities (5,7)
4,617
62,982
67,599
Subordinated liabilities
237
5,886
6,123
Notes in circulation
3,164
3,164
Other liabilities (6)
594
3,432
4,026
31 December 2025
102,996
4,854
560,658
3,432
671,940
(1)
Includes net hedging derivative assets of £395
million (31 December 2025 – £535 million) and net hedging
derivative liabilities of £319 million (31 December 2025 –
£356 million).
(2)
Includes items in the course of collection from other
banks of £364 million (31 December 2025 – £166
million).
(3)
Includes finance lease receivables of £9,206
million (31 December 2025 – £8,971 million).
(4)
Includes items in the course of transmission to other
banks of £200 million (31 December 2025 – £192
million).
(5)
The carrying amount of other customer accounts
designated at fair value through profit or loss is the same as the
principal amount for both periods. No amounts have been recognised
in the profit or loss for changes in credit risk associated with
these liabilities as the changes are immaterial both during the
period and cumulatively.
(6)
Includes lease liabilities of £538 million (31
December 2025 – £535 million), held at amortised
cost.
(7)
During the period ended 30 June 2026, there were debt
issuances of £7.7 billion and debt repayments of £8.4
billion. Funding was also raised in other formats including
commercial paper and certificates of deposit.
Notes continued
9. Financial instruments – valuation
Disclosures relating to the control environment, valuation
techniques and related aspects pertaining to financial instruments
measured at fair value are included in the NatWest Group plc 2025
Annual Report and Accounts. Valuation,
sensitivity methodologies and inputs at 30 June 2026 are consistent
with those described in Note 10 to the financial statements in the
NatWest Group plc 2025 Annual Report and
Accounts.
Fair value hierarchy
The table below shows the assets and liabilities held by NatWest
Group split by fair value hierarchy level. Level 1 are considered
the most liquid instruments, and level 3 the most illiquid, valued
using expert judgment and hence carry the most significant price
uncertainty.
30 June 2026
31 December 2025
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
£m
£m
£m
£m
£m
£m
£m
£m
Assets
Trading assets
Loans
–
29,022
256
29,278
–
33,556
96
33,652
Securities
13,811
4,277
–
18,088
9,586
3,299
–
12,885
Derivatives
Interest rate
–
30,819
337
31,156
–
32,382
360
32,742
Foreign
exchange
–
31,850
90
31,940
–
27,878
103
27,981
Other
–
49
12
61
–
57
9
66
Other financial assets
Loans
–
24
829
853
–
35
533
568
Securities
29,888
20,606
117
50,611
25,528
16,964
152
42,644
Total financial assets held at fair value
43,699
116,647
1,641
161,987
35,114
114,171
1,253
150,538
As a % of total fair value assets
27%
72%
1%
23%
76%
1%
Liabilities
Trading liabilities
Deposits
–
40,399
–
40,399
–
41,284
–
41,284
Debt securities in
issue
–
215
–
215
–
234
–
234
Short
positions
8,174
1,848
1
10,023
6,172
1,331
1
7,504
Derivatives
Interest rate
–
25,284
181
25,465
–
26,589
169
26,758
Foreign
exchange
–
30,611
52
30,663
–
26,988
54
27,042
Other
–
100
28
128
–
119
55
174
Other financial liabilities
Debt securities in
issue
–
2,338
3
2,341
–
2,302
3
2,305
Other
deposits
–
2,423
26
2,449
–
2,285
27
2,312
Subordinated
liabilities
–
230
–
230
–
237
–
237
Total financial liabilities held at fair value
8,174
103,448
291
111,913
6,172
101,369
309
107,850
As a % of total fair value liabilities
7%
93%
0%
6%
94%
0%
(1)
Level 1 – Instruments valued using unadjusted quoted
prices in active and liquid markets, for identical financial
instruments. Examples include government bonds, listed equity
shares and certain exchange-traded derivatives.
Level 2 – Instruments valued using valuation
techniques that have observable inputs. Observable inputs are those
that are readily available with limited adjustments required.
Examples include most government agency
securities, investment-grade corporate bonds, certain mortgage
products – including CLOs, most bank loans, repos and reverse
repos, state and municipal obligations, most notes issued, certain
money market securities, loan
commitments and most OTC derivatives.
Level 3 – Instruments valued using a valuation
technique where at least one input which could have a significant
effect on the instrument’s valuation, is not based on observable
market data. Examples include non-derivative
instruments which trade infrequently, certain
syndicated and commercial mortgage loans, private equity, and
derivatives with unobservable model inputs.
(2)
Transfers between levels
are deemed to have occurred at the beginning of the quarter in
which the instrument was transferred.
(3)
For an analysis of debt
securities held at mandatory fair value through profit or loss by
issuer as well as ratings and derivatives, by type and contract,
refer to Capital and risk management – Credit
risk.
Notes continued
9. Financial instruments – valuation continued
Valuation adjustments
NatWest Group manages some portfolios of financial assets and
financial liabilities based on its net exposure to either market or
credit risk. In these cases, the fair value is derived from the net
risk exposure of that portfolio with portfolio level adjustments
applied to incorporate bid-offer spreads, counterparty credit risk,
and funding costs.
When valuing financial instruments in the trading book, adjustments
are made to mid-market valuations to cover bid-offer spread,
funding and credit risk. These adjustments are presented in the
table below. For further information refer to the descriptions of
valuation adjustments within ‘Financial instruments – valuation’ on
page 334 of the NatWest Group plc 2025 Annual Report and
Accounts.
30 June
31 December
2026
2025
£m
£m
Funding – FVA
(16)
(11)
Credit – CVA
174
179
Bid – Offer
61
60
Product and deal specific
96
124
Total
315
352
The decrease in FVA and CVA was driven by exposure changes arising
from the increase in interest rates. The decrease in product and
deal specific was driven by the amortisation of deferred trade
inception profits.
Notes continued
9. Financial instruments – valuation continued
Level 3 sensitivities
The table below shows the favourable and unfavourable range of fair
value of the level 3 assets and liabilities.
30 June 2026
31 December 2025
Level 3
Favourable
Unfavourable
Level 3
Favourable
Unfavourable
£m
£m
£m
£m
£m
£m
Assets
Trading assets
Loans
256
–
–
96
–
–
Derivatives
Interest rate
337
10
(10)
360
20
(10)
Foreign
exchange
90
–
–
103
10
(10)
Other
12
–
–
9
–
–
Other financial assets
Loans
829
10
(10)
533
–
(10)
Securities
117
10
(20)
152
10
(20)
Total financial assets held at fair value
1,641
30
(40)
1,253
40
(50)
Liabilities
Trading liabilities
Short
positions
1
–
–
1
–
–
Derivatives
Interest rate
181
10
(10)
169
10
(10)
Foreign
exchange
52
–
–
54
–
–
Other
28
–
–
55
–
–
Other financial liabilities
Debt securities in
issue
3
–
–
3
–
–
Other
deposits
26
–
–
27
–
(20)
Total financial liabilities held at fair value
291
10
(10)
309
10
(30)
Alternative assumptions
Reasonably plausible alternative assumptions of unobservable inputs
are determined based on a specified target level of certainty of
90%. Alternative assumptions are determined with reference to all
available evidence including consideration of the following:
quality of independent pricing information considering consistency
between different sources, variation over time, perceived
tradability or otherwise of available quotes; consensus service
dispersion ranges; volume of trading activity and market bias (e.g.
one-way inventory); day 1 profit or loss arising on new trades;
number and nature of market participants; market conditions;
modelling consistency in the market; size and nature of risk;
length of holding of position; and market
intelligence.
Notes continued
9. Financial instruments – valuation continued
Movement in level 3 assets and liabilities
The following table shows the movement in level 3 assets and
liabilities.
Other
Other
Other
Other
Derivatives
trading
financial
Total
Derivatives
trading
financial
Total
assets
assets (2)
assets (3)
assets
liabilities
liabilities (2)
liabilities
liabilities
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January 2026
472
96
685
1,253
278
1
30
309
Amounts recorded in the income statement (1)
(30)
13
1
(16)
(26)
–
(1)
(27)
Amount recorded in the statement of comprehensive
income
–
–
2
2
–
–
–
–
Level 3 transfers in
41
–
45
86
20
–
–
20
Level 3 transfers out
(50)
–
(41)
(91)
(1)
–
–
(1)
Purchases/originations
39
157
336
532
22
–
–
22
Settlements/other decreases
–
(10)
(1)
(11)
(14)
–
–
(14)
Sales
(33)
–
(81)
(114)
(17)
–
–
(17)
Foreign exchange and other adjustments
–
–
–
–
(1)
–
–
(1)
At 30 June 2026
439
256
946
1,641
261
1
29
291
Amounts recorded in the income statement in respect of balances
held
at period end –
unrealised
66
13
3
82
18
(1)
(0)
17
At 1 January 2025
630
278
774
1,682
465
1
28
494
Amounts recorded in the income statement (1)
(65)
2
(1)
(64)
(94)
–
1
(93)
Amount recorded in the statement of comprehensive
income
–
–
11
11
–
–
–
–
Level 3 transfers in
40
–
–
40
7
–
25
32
Level 3 transfers out
(6)
–
(16)
(22)
(11)
–
–
(11)
Purchases/originations
70
89
59
218
47
–
–
47
Settlements/other decreases
(2)
(31)
–
(33)
(34)
–
–
(34)
Sales
(31)
(97)
(125)
(253)
(40)
–
–
(40)
Foreign exchange and other adjustments
1
2
1
4
2
–
1
3
At 30 June 2025
637
243
703
1,583
342
1
55
398
Amounts recorded in the income statement in respect of balances
held
at period end –
unrealised
57
1
(3)
55
(10)
–
–
(10)
(1)
There were £9 million net gains on trading
assets and liabilities (30 June 2025 – £31 million net gains)
recorded in income from trading activities. Net gains on other
instruments of £2 million (30 June 2025 – £2 million net
losses) were recorded in other operating income and interest income
as appropriate.
(2)
Other trading assets and other trading
liabilities comprise assets and liabilities held at fair value in
trading portfolios.
(3)
Other financial assets comprise fair value
through other comprehensive income, designated as at fair value
through profit or loss and other fair value through profit or
loss.
(4)
During the period ended 30 June 2026, £61
million of assets and liabilities transferred into Level 3 driven
by decrease in observability of swaps and increase in the
proportion of trades with unobservable inputs in structured
netting. £51 million of assets and liabilities transferred out
of Level 3 driven by decrease in observability of
inputs.
Notes continued
9. Financial instruments – valuation continued
Fair value of financial instruments measured at amortised cost on
the balance sheet
The
following table shows the carrying value and fair value of
financial instruments carried at amortised cost on the balance
sheet.
Carrying
value
Fair value
30 June 2026
£bn
£bn
Financial assets
Loans to banks
7.3
7.4
Loans to customers
435.9
430.7
Other financial assets – securities
35.1
35.0
31 December 2025
Financial assets
Loans to banks
7.0
6.9
Loans to customers
418.9
414.5
Other financial assets – securities
36.6
36.6
30 June 2026
Financial liabilities
Bank deposits
50.0
50.0
Customer deposits
448.6
448.6
Other financial liabilities
– debt securities in
issue
67.2
67.7
Subordinated liabilities
6.4
6.5
31 December 2025
Financial liabilities
Bank deposits
44.1
44.1
Customer deposits
443.0
424.4
Other financial liabilities
– debt securities in
issue
63.0
63.6
Subordinated liabilities
5.9
6.1
The assumptions and methodologies underlying the calculation of
fair values of financial instruments at the balance sheet date are
as follows:
Loans to banks and customers
In estimating the fair value of net loans to customers and banks
measured at amortised cost, NatWest Group’s loans are segregated
into appropriate portfolios reflecting the characteristics of the
constituent loans. Two principal methods are used to estimate fair
value: contractual cash flows and expected cash flows.
Debt securities and subordinated liabilities
Most debt securities are valued using quoted prices in active
markets or from quoted prices of similar financial instruments in
active markets. For the remaining population, fair values are
determined using market standard valuation techniques, such as
discounted cash flows.
Bank and customer deposits
Fair
value of deposits is estimated using discounted cash flow valuation
techniques.
Other financial instruments
For certain short-term financial instruments: cash and balances at
central banks, items in the course of collection from other banks,
items in the course of transmission to other banks, customer demand
deposits and notes in circulation, carrying value is deemed a
reasonable approximation of fair value.
Notes continued
10. Trading assets and liabilities
Trading assets and liabilities comprise assets and liabilities held
at fair value in trading portfolios.
30 June
31 December
2026
2025
Assets
£m
£m
Loans
Reverse repos
22,704
27,656
Cash Collateral
given
6,048
5,701
Other loans
526
295
Total loans
29,278
33,652
Securities
Central and local
government
–
UK
2,508
2,120
–
US
4,129
4,153
– Other
8,380
4,135
Financial institutions and
Corporate
3,071
2,477
Total securities
18,088
12,885
Total
47,366
46,537
Liabilities
Deposits
Repos
27,626
28,578
Cash Collateral
received
11,889
11,966
Other
deposits
884
740
Total deposits
40,399
41,284
Debt securities in issue
215
234
Short positions
Central and local
government
–
UK
2,411
1,504
–
US
2,100
1,161
– Other
4,954
4,137
Financial institutions and
Corporate
558
702
Total short positions
10,023
7,504
Total
50,637
49,022
Notes continued
11. Loan impairment provisions
Loan exposure and impairment metrics
The table below summarises loans and related credit impairment
measures on an IFRS 9 basis.
30 June
31 December
2026
2025
£m
£m
Loans – amortised cost and
FVOCI (1,2)
Stage 1
398,096
386,651
Stage 2
44,915
38,582
Stage 3
4,691
4,683
Of which: individual
1,176
1,456
Of which: collective
3,515
3,227
447,702
429,916
ECL provisions (3)
Stage 1
616
614
Stage 2
872
796
Stage 3
2,074
2,175
Of which: individual
492
598
Of which: collective
1,582
1,577
3,562
3,585
ECL provisions
coverage (4)
Stage 1 (%)
0.15
0.16
Stage 2 (%)
1.94
2.06
Stage 3 (%)
44.21
46.44
0.80
0.83
Half year ended
30 June
30 June
2026
2025
£m
£m
Impairment losses
ECL charge/(release) (5)
423
382
Stage 1
(77)
(67)
Stage 2
283
165
Stage 3
217
284
Of which: individual
48
194
Of which: collective
169
90
Amounts written off
487
192
Of which: individual
168
61
Of which: collective
319
131
(1) The table shows gross loans only and
excludes amounts that were outside the scope of the ECL framework.
Other financial assets within the scope of the IFRS 9 ECL framework
were cash and balances at central banks totalling £75.9
billion (31 December 2025 – £84.1 billion) and debt securities
of £85.2 billion (31 December 2025 – £78.4
billion).
(2) Fair value through other comprehensive
income (FVOCI). Includes loans to customers and banks.
(3) Includes
£10 million (31 December 2025 – £6 million) related to
assets classified as FVOCI and £0.1 billion (31 December 2025
– £0.1 billion) related to off-balance sheet
exposures.
(4) 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.
(5) Includes
a £2 million release (June 2025 – £1 million release)
related to other financial assets, of which £2 million charges
(June 2025 – £0 million release) related to assets classified
as FVOCI and includes a £0 million charge (June 2025 –
£10 million charge) related to contingent
liabilities.
Notes
continued
12. Provisions
for liabilities and charges
Financial
Customer
Litigation and
commitments
redress
other regulatory
Property
and guarantees
Other (1)
Total
£m
£m
£m
£m
£m
£m
At 1 January 2026
282
64
73
58
142
619
Expected credit losses impairment charge
–
–
–
5
–
5
Currency translation and other movements
–
1
–
–
(1)
–
Acquisition of companies and businesses
8
–
7
–
4
19
Charge to income statement
6
12
5
–
244
267
Release to income statement
(23)
(3)
(7)
–
(44)
(77)
Provisions utilised
(92)
(1)
(7)
(1)
(60)
(161)
At 30 June 2026
181
73
71
62
285
672
(1) Other
materially comprises of provisions relating to restructuring costs,
historical VAT matters and Bank of England
levy.
Provisions are liabilities of uncertain timing or amount and are
recognised when there is a present obligation as a result of a past
event, the outflow of economic benefit is probable and the outflow
can be estimated reliably. Any difference between the final outcome
and the amounts provided will affect the reported results in the
period when the matter is resolved.
13. Dividends
The 2025 final dividend was approved by shareholders at the Annual
General Meeting on 28 April 2026 and the payment made on 5 May 2026
to shareholders on the register at the close of business on 20
March 2026.
NatWest Group plc announces an interim dividend for 2026 of
£955 million or 12.0 pence per ordinary share. The interim
dividend will be paid on 18 September 2026 to shareholders on the
register at close of business on 14 August 2026. The ex-dividend
date will be 13 August 2026.
14. Contingent liabilities and commitments
The amounts shown in the table below are intended only to provide
an indication of the volume of business outstanding at 30 June
2026. Although NatWest Group is exposed to credit risk in the event
of a customer’s failure to meet its obligations, the amounts shown
do not, and are not intended to, provide any indication of NatWest
Group’s expectation of future losses.
30 June
31 December
2026
2025
£m
£m
Contingent liabilities and commitments
Guarantees
2,790
2,810
Other contingent liabilities
1,559
1,548
Standby facilities, credit lines and other commitments
147,827
142,765
Total
152,176
147,123
Commitments and contingent obligations are subject to NatWest
Group’s normal credit approval processes.
Notes continued
15. Litigation and regulatory matters
NatWest Group plc and certain members of NatWest Group are party to
various legal proceedings and are involved in, or subject to,
various regulatory matters, including as the subject of
investigations and other regulatory and governmental action
(Matters) in the United Kingdom (UK), the United States (US), the
European Union (EU) and other jurisdictions.
NatWest Group recognises a provision for a liability in relation to
these Matters when it is probable that an outflow of economic
benefits will be required to settle an obligation resulting from
past events, and a reliable estimate can be made of the amount of
the obligation.
In many of the Matters, it is not possible to determine whether any
loss is probable, or to estimate reliably the amount of any loss,
either as a direct consequence of the relevant proceedings and
regulatory matters or as a result of adverse impacts or
restrictions on NatWest Group’s reputation, businesses and
operations. Numerous legal and factual issues may need to be
resolved, including through potentially lengthy discovery and
document production exercises and determination of important
factual matters, and by addressing novel or unsettled legal
questions relevant to the proceedings in question, before the
probability of a liability, if any, arising can reasonably be
estimated in respect of any Matter. NatWest Group cannot predict
if, how, or when such claims will be resolved or what the eventual
settlement, damages, fine, penalty or other relief, if any, may be,
particularly for Matters that are at an early stage in their
development or where claimants seek substantial or indeterminate
damages.
There are situations where NatWest Group may pursue an approach
that in some instances leads to a settlement agreement. This may
occur in order to avoid the expense, management distraction or
reputational implications of continuing to contest liability, or in
order to take account of the risks inherent in defending or
contesting Matters, even for those for which NatWest Group believes
it has credible defences and should prevail on the merits. The
uncertainties inherent in all Matters affect the amount and timing
of any potential economic outflows both for Matters with respect to
which provisions have been established and other contingent
liabilities in respect of any such Matter.
It is not practicable to provide an aggregate estimate of potential
liability for our Matters as a class of contingent
liabilities.
The future economic outflow in respect of any Matter may ultimately
prove to be substantially greater than, or less than, the aggregate
provision, if any, that NatWest Group has recognised in respect of
such Matter. Where a reliable estimate of the economic outflow
cannot be reasonably made, no provision has been recognised.
NatWest Group expects that in future periods, additional provisions
and economic outflows relating to Matters that may or may not be
currently known by NatWest
Group will be necessary, in amounts that are expected to be
substantial in some instances. Refer to Note 12 for information on
material provisions.
Matters which are, or could be, material, either individually or in
aggregate, having regard to NatWest Group, considered as a whole,
in which NatWest Group is currently involved are set out below. We
have provided information on the procedural history of certain
Matters, where we believe appropriate, to aid the understanding of
the Matter.
For a discussion of certain risks associated with NatWest Group’s
litigation and regulatory matters (including the Matters), refer to
the Risk Factor relating to legal, regulatory and governmental
actions and investigations set out on pages 417 to 419 of the
NatWest Group plc 2025 Annual Report and Accounts.
London Interbank Offered Rate (LIBOR) and other rates
litigation
NatWest Group plc and certain other members of NatWest Group,
including NWM Plc, are defendants in a number of claims pending in
the United States District Court for the Southern District of New
York (SDNY) with respect to the setting of USD LIBOR. The
complainants allege that certain members of NatWest Group and other
panel banks violated various federal laws, including the US
commodities and antitrust laws, and state statutory and common law,
as well as contracts, by manipulating LIBOR and prices of
LIBOR-based derivatives in various markets through various
means.
The co-ordinated proceeding in the SDNY relating to USD LIBOR now
includes one remaining class action, which is on behalf of persons
who purchased LIBOR-linked instruments from defendants and bonds
issued by defendants, as well as two non-class
actions.
On 25 September 2025, the SDNY granted summary judgment to the
defendants on the issue of liability and dismissed all claims in
both the class action and the non-class actions. The decision is
being appealed in the United States Court of Appeals for the Second
Circuit (US Court of Appeals).
In addition to the USD LIBOR cases described above, there are two
other IBOR-related class actions involving NWM Plc. First, there is
a class action relating to derivatives allegedly tied to JPY LIBOR
and Euroyen TIBOR, which was dismissed by the SDNY in relation to
NWM Plc and other NatWest Group companies in September 2021. That
dismissal is now the subject of an appeal to the US Court of
Appeals.
Second, there is a class action concerning alleged manipulation of
Euribor. On 22 August 2025, the US Court of Appeals reversed the
SDNY’s decision in the Euribor case, reinstating claims against NWM
plc. That case has therefore returned to the SDNY for further
proceedings.
Notes continued
15. Litigation and regulatory matters continued
Foreign exchange litigation
NatWest Group plc, NWM Plc and/or NWMSI are defendants in several
cases relating to NWM Plc’s foreign exchange (FX)
business.
In May 2019, a cartel class action was filed in the Federal Court
of Australia against NWM Plc and four other banks on behalf of
persons who bought or sold currency through FX spots or forwards
between 1 January 2008 and 15 October 2013 with a total transaction
value exceeding AUD 0.5 million.
In May 2025, NWM Plc executed an agreement to settle the claim in
the Federal Court of Australia, which the court approved in August
2025. The settlement amount is covered in full by an existing
provision. In July 2026, the court formally dismissed the
claim.
In July and December 2019, two separate applications seeking
opt-out collective proceedings orders were filed in the UK
Competition Appeal Tribunal (CAT) against NatWest Group plc, NWM
Plc and other banks. Both applications were brought on behalf of
persons who, between 18 December 2007 and 31 January 2013, entered
into a relevant FX spot or outright forward transaction in the
European Economic Area with a relevant financial institution or on
an electronic communications network.
In March 2022, the CAT declined to certify either application as
collective proceedings on an opt-out basis. This decision was
appealed by the applicants and was the subject of an application
for judicial review. The CAT, in its judgment, allowed the
applicants three months in which to reformulate their claims as
opt-in claims.
In its amended judgment in November 2023, the Court of Appeal
allowed the appeal and decided that the claims should proceed on an
opt-out basis. Separately, the court determined which of the two
competing applicants can proceed as class representative and
dismissed the application for judicial review of the CAT’s
decision. The other applicant has discontinued its claim and
withdrawn from the proceedings. The banks sought permission to
appeal the Court of Appeal decision directly to the UK Supreme
Court, which was granted in April 2024. The appeal was heard in
April 2025.
In December 2025, the UK Supreme Court reinstated the CAT’s
decision to refuse the application for a collective proceedings
order on an opt-out basis. The applicant is seeking permission from
the CAT to file a revised application for a collective proceedings
order. NatWest Group Plc and NWM Plc have made an application to
the CAT for dismissal of the application for a collective
proceedings order in its entirety.
Two motions to certify FX-related class actions were filed in the
Tel Aviv District Court in Israel in September and October 2018 and
were subsequently consolidated into one motion. The consolidated
motion to certify, which names The Royal Bank of Scotland plc (now
NWM Plc) and several other banks as defendants, was served on NWM
Plc in May 2020.
The applicants sought the court’s permission to amend their motions
to certify the class actions. NWM Plc filed a motion challenging
the permission granted by the court for the applicants to serve the
consolidated motion outside the Israeli jurisdiction. That NWM Plc
motion remains pending. In February 2024, NWM Plc executed an
agreement to settle the claim, subject to court approval. The
settlement amount is covered in full by an existing
provision.
In December 2021, a summons was served in the Netherlands against
NatWest Group plc, NWM Plc and NWM N.V. by Stichting FX Claims on
behalf of a number of parties, seeking declarations from the court
concerning liability for anti-competitive FX market conduct
described in decisions of the European Commission (EC) of 16 May
2019, along with unspecified damages. The claimant amended its
claim to also refer to a 2 December 2021 decision by the EC, which
described anti-competitive FX market conduct. NatWest Group plc,
NWM Plc and other defendants contested the jurisdiction of the
Dutch court.
In March 2023, the district court in Amsterdam accepted that it has
jurisdiction to hear claims against NWM N.V. but refused
jurisdiction to hear any claims against the other defendant banks
(including NatWest Group plc and NWM Plc) brought on behalf of the
parties represented by the claimant that are domiciled outside of
the Netherlands. The claimant is appealing that
decision.
The defendant banks have brought cross-appeals which seek a ruling
that the Dutch court has no jurisdiction to hear any claims against
the defendant banks domiciled outside of the Netherlands,
irrespective of whether the claim has been brought on behalf of a
party represented by the claimant that is domiciled within or
outside of the Netherlands. The Amsterdam Court of Appeal has
stayed these appeal proceedings until the Court of Justice of the
European Union has answered preliminary questions that have been
referred to it in another matter.
Notes continued
15. Litigation and regulatory matters continued
In September 2023, a second summons was served by Stichting FX
Claims on NatWest Group plc, NWM Plc and NWM N.V., on behalf of a
new group of parties. The claimant seeks declarations from the
district court in Amsterdam concerning liability for
anti-competitive FX market conduct described in the above
referenced decisions of the EC of 16 May 2019 and 2 December 2021,
along with unspecified damages. NatWest Group plc, NWM Plc and
other defendants are contesting the Dutch court’s jurisdiction. The
district court has stayed the proceedings pending judgment in the
above-mentioned appeals.
In January 2025, a third summons was served by Stichting FX Claims
on NatWest Group plc, NWM Plc and NWM N.V., on behalf of another
new group of parties.
The claimant seeks similar declarations from the district court in
Amsterdam to those being sought in the above-mentioned claims,
along with unspecified damages.
NatWest Group plc, NWM Plc and other defendants are contesting the
Dutch court’s jurisdiction. The district court has stayed the
proceedings pending judgment in the above-mentioned
appeals.
Certain other foreign exchange transaction related claims have been
or may be threatened. NatWest Group cannot predict whether all or
any of these claims will be pursued.
Swaps antitrust litigation
NWM Plc and other members of NatWest Group, including NatWest Group
plc, as well as a number of other interest rate swap dealers, are
defendants in several cases pending in the SDNY alleging violations
of the US antitrust laws in the market for interest rate swaps.
Three swap execution facilities (TeraExchange, Javelin, and trueEx)
allege that they would have successfully established exchange-like
trading of interest rate swaps if the defendants had not unlawfully
conspired to prevent that from happening through boycotts and other
means. Discovery is complete though expert discovery is ongoing
and, in March 2026, defendants filed a motion for summary judgment
seeking dismissal of the claims, which is pending.
In June 2021, a class action antitrust complaint was filed against
a number of credit default swap dealers in New Mexico federal court
on behalf of persons who, from 2005 onwards, settled credit default
swaps in the United States by reference to the ISDA credit default
swap auction protocol. The complaint alleges that the defendants
conspired to manipulate that benchmark through various means in
violation of the antitrust laws and the Commodity Exchange
Act.
In May 2025, the US Court of Appeals affirmed a January 2024
decision by the SDNY which barred the plaintiffs in the New Mexico
case from pursuing claims based on conduct occurring before 30 June
2014 on the ground that such claims were extinguished by a 2015
settlement agreement that resolved a prior class action relating to
credit default swaps.
The case in New Mexico (which had been stayed pending the appeal of
the SDNY’s decision) has now resumed. The defendants have filed a
motion to dismiss, which is pending.
Spoofing litigation
In December 2021, three substantially similar class actions
complaints were filed in federal court in the United States against
NWM Plc and NWMSI alleging Commodity Exchange Act and common law
unjust enrichment claims arising from manipulative trading known as
spoofing. The complaints refer to NWM Plc’s December 2021
spoofing-related guilty plea (described below under “US
investigations relating to fixed-income securities”) and purport to
assert claims on behalf of those who transacted in US Treasury
securities and futures and options on US Treasury securities
between 2008 and 2018.
In July 2022, the defendants filed a motion to dismiss these
claims, which have been consolidated into one matter in the United
States District Court for the Northern District of Illinois. The
motion to dismiss remains pending.
Madoff
NWM N.V. was named as a defendant in two actions filed by the
trustee for the bankrupt estates of Bernard L. Madoff and Bernard
L. Madoff Investment Securities LLC, in bankruptcy court in New
York, which together seek to clawback more than US$300 million
(plus pre-judgment interest) that NWM N.V. allegedly received from
certain Madoff feeder funds and certain swap
counterparties.
The claims were previously dismissed, but as a result of an August
2021 decision by the US Court of Appeals, they are now proceeding
in the discovery phase in the bankruptcy court, where they have
been consolidated into one action.
Notes continued
15. Litigation and regulatory matters continued
Offshoring VAT assessments
HMRC, as part of an industry-wide review, issued protective tax
assessments in 2018 against NatWest Group plc totalling £143
million relating to unpaid VAT in respect of the UK branches of two
NatWest Group companies registered in India for the period from 1
January 2014 until 31 December 2017 inclusive. NatWest Group
formally requested reconsideration by HMRC of their assessments,
and this process was completed in November 2020. HMRC upheld their
original decision and, as a result, NatWest Group plc lodged an
appeal with the Tax Tribunal and an application for judicial review
with the High Court of Justice of England and Wales, both in
December 2020.
In order to lodge the appeal with the Tax Tribunal, NatWest Group
plc was required to pay amounts totalling £153 million
(including statutory interest) to HMRC in December 2020 and May
2022. The appeal and the application for judicial review were
previously stayed behind a separate case involving another
bank.
NatWest Group plc was informed in late 2024 that the other bank had
settled its case with HMRC by agreement. NatWest Group plc is
progressing its appeal before the Tax Tribunal in its own name.
NatWest Group plc will also continue to review next steps relevant
to the judicial review.
The amount of £153 million continues to be recognised as an
asset that NatWest Group plc expects to recover. Since 1 January
2018, NatWest Group plc has paid VAT on
intra-group supplies
from the India-registered NatWest Group
companies.
US Anti-Terrorism Act litigation
NWM N.V. and certain other financial institutions are defendants in
several actions filed by a number of US nationals (or their
estates, survivors, or heirs), most of whom are, or were, US
military personnel who were killed or injured in attacks in Iraq
between 2003 and 2011.
NWM Plc is also a defendant in some of these cases.
According to the plaintiffs’ allegations, the defendants are liable
for damages arising from the attacks because they allegedly
conspired with and/or aided and abetted Iran and certain Iranian
banks to assist Iran in transferring money to Hezbollah and the
Iraqi terror cells that committed the attacks, in violation of the
US Anti-Terrorism Act, by agreeing to engage in ‘stripping’ of
transactions initiated by the Iranian banks so that the Iranian
nexus to the transactions would not be detected.
In the lead matters, filed in the United States District Court for
the Eastern District of New York (‘EDNY’) the district court has
dismissed both conspiracy and aiding abetting claims finding that
the claims were deficient for several reasons, including lack of
sufficient allegations as to the alleged conspiracy and causation.
In January 2023, the US Court of Appeals affirmed the district
court’s dismissal of conspiracy-based claims. The
district court’s dismissal of aiding and abetting claims is subject
to a potential future appeal to the US Court of
Appeals.
On 30 September 2025, the district court denied a motion by the
plaintiffs to re-open the case to assert aiding and abetting claims
that they previously did not assert. Another action, filed in the
SDNY in 2017, which asserted both conspiracy and aiding and
abetting claims, was dismissed by the SDNY in March 2019 on similar
grounds as the EDNY cases, but remains subject to appeal to the US
Court of Appeals.
Other follow-on actions that are substantially similar to the lead
cases described above are pending in the same courts.
Tandanor Litigation in Argentina
In October 2012, a claim was filed in the District Court of Buenos
Aires by ‘Argentina Talleres Navales Dársena Norte Sociedad
Anónima Comercial, Industrial y Naviera’ (“Tandanor”) (a naval
repair business) against what is now the Representative Office of
The Royal Bank of Scotland NV, Argentine Branch (in liquidation)
(the “Representative Office”) and eleven private individuals. (The
Representative Office inherited the claim from Banco Holandés
Unido, Argentine Branch.) The
claim, which was unquantified, sought damages for alleged
fraudulent conduct during Tandanor’s privatisation, which concluded
in 1993. The Representative Office’s participation in the
privatisation was 2.9%. The Argentine Ministry of Defence joined
Tandanor as a plaintiff in 2014.
The claim was dismissed on limitation grounds in 2018, and the
plaintiffs were unsuccessful in subsequent appeals. In November
2024, however, the Argentine Supreme Court set the appealed
judgments aside and, in June 2025, the Argentine Federal Court of
Appeal returned the case to the Argentine Federal District Court
for further consideration. In December 2025, the plaintiffs filed
an update quantifying damages at USD1.1 billion.
The Representative
Office continues to defend the claim and has requested a
hearing.
Notes continued
15. Litigation and regulatory matters continued
Oracle Securities Litigation
In January and February 2026, two substantially similar class
action complaints were filed in New York state court against Oracle
Corporation and the underwriters of a September 2025 bond offering
by Oracle, including NWMSI. On 4 March 2026, an amended complaint
consolidated both actions. The consolidated amended complaint
alleges that the offering documents for the September 2025 bonds
were materially misleading because they failed to disclose that, at
the time of the bond offering, Oracle was already planning to
further increase its debt to fund its Artificial Intelligence (AI)
infrastructure expansion. Defendants (including NWMSI) have filed a
motion to dismiss the consolidated amended complaint, which is
pending.
Separately, in July 2026, two class action complaints were filed in
Tennessee state court against Oracle and the underwriters,
including NWMSI, one relating to the September 2025 bond offering
and the other relating to a February 2026 bond offering by Oracle.
The complaints allege that the offering documents for the September
2025 and February 2026 bonds were materially misleading because
Oracle’s stated revenue expectations allegedly failed to disclose
that OpenAI had missed internal revenue and user-growth targets in
2025 and early 2026, raising concerns about OpenAI’s ability to
meet its payment obligations and, in turn, Oracle’s ability to
realise expected returns on its AI-related investment and to
service its debt (including the September 2025 and February 2026
bonds).
In both the New York matter and the Tennessee matters, the
plaintiffs seek damages under the U.S. Securities Act of 1933 as
amended, (the ‘Securities Act’) on behalf of those who purchased
Oracle’s bonds. In connection with both the September 2025 bond
offering and the February 2026 bond offering, Oracle agreed to
indemnify the underwriters against certain potential liabilities,
including disclosure-based liability under the Securities
Act.
Rockfire litigation
In March 2025, a claim was filed in the High Court of Justice of
England & Wales against The Royal Bank of Scotland plc (‘RBS
plc’) by the liquidators of Rockfire Investment Finance Plc
(‘RIF’). In January 2026, a second claim was filed in the High
Court of Justice of England & Wales against RBS plc by the
liquidators of Rockfire Capital Limited (‘RCL’).
Both claimants allege that, during the period between January 2017
and February 2021, RBS plc followed unauthorised payment
instructions. The claimants allege that these payment instructions
were not made in good faith or the best interests of RIF and RCL,
and therefore were not authorised. The claimants allege the
payments were made in breach of mandate or in breach of RBS plc’s
duty of care to RIF and RCL
The claimants claim a debt or damages equivalent to the total of
the payments in dispute: In the case of RIF, an amount of
£179.2 million plus interest, and in the case of RCL, an
amount of £73.1 million plus interest. RBS plc is defending
both claims.
Regulatory matters (including
investigations and customer redress programmes)
NatWest Group’s businesses and financial condition can be affected
by the actions of various governmental and regulatory authorities
in the UK, the US, the EU and elsewhere. NatWest Group has engaged,
and will continue to engage, in discussions with relevant
governmental and regulatory authorities, including in the UK, the
US, the EU and elsewhere, on an ongoing and regular basis, and in
response to informal and formal inquiries or investigations,
regarding operational, systems and control evaluations and issues
including those related to compliance with applicable laws and
regulations, including consumer protection, investment advice,
business conduct, competition/anti-trust, VAT recovery,
anti-bribery, anti-money laundering and sanctions regimes. NatWest
Group expects government and regulatory intervention in financial
services to be high for the foreseeable future, including increased
scrutiny from competition and other regulators in the retail and
SME business sectors.
Any matters discussed or identified during such discussions and
inquiries may result in, among other things, further inquiry or
investigation, other action being taken by governmental and
regulatory authorities, increased costs being incurred by NatWest
Group, remediation of systems and controls, public or private
censure, restriction of NatWest Group’s business activities and/or
fines. Any of the events or circumstances mentioned in this
paragraph or below could have a material adverse effect on NatWest
Group, its business, authorisations and licences, reputation,
results of operations or the price of securities issued by it, or
lead to material additional provisions being taken.
NatWest Group is co-operating fully with the matters described
below.
US investigations relating to fixed-income securities
In December 2021, NWM Plc pled guilty in the United States District
Court for the District of Connecticut to one count of wire fraud
and one count of securities fraud in connection with historical
spoofing conduct by former employees in US Treasuries markets
between January 2008 and May 2014 and, separately, during
approximately three months in 2018. The 2018 trading occurred
during the term of a non-prosecution agreement (NPA) between NWMSI
and the United States Attorney’s Office for the District of
Connecticut (USAO
CT), under which non-prosecution was conditioned on NWMSI and
affiliated companies not engaging in criminal conduct during the
term of the NPA. The relevant trading in 2018 was conducted by two
NWM Plc traders in Singapore and breached that NPA. The plea
agreement reached with the US Department of Justice (DOJ) and the
USAO CT resolved both the spoofing conduct and the breach of the
NPA.
Notes continued
15. Litigation and regulatory matters continued
The DOJ and USAO CT paused the monitorship in May 2025 and,
following a review, determined that a monitorship was no longer
necessary as a result of NWM Plc’s notable progress in
strengthening its compliance programme, certain of NWM Plc s
remedial improvements, internal controls, and the status of
implementation of Monitor recommendations, and that reporting by
NWM Plc to the DOJ and USAO CT on its continued compliance
programme progress provided an appropriate degree of
oversight. The
court approved the agreement and extended NWM Plc’s obligations
under the plea agreement and probation until December
2026.
In the event that NWM Plc does not meet its obligations to the DOJ,
this may lead to adverse consequences such as increased costs,
findings that NWM Plc violated its probation term, amongst other
consequences. Other material adverse collateral consequences may
occur as a result of this matter, as further described in the Risk
Factor relating to legal, regulatory and governmental actions and
investigations set out on pages 417 to 419 of the NatWest Group plc
2025 Annual Report and Accounts.
Investment advice review
In October 2019, the FCA notified NatWest Group of its intention to
appoint a Skilled Person under section 166 of the Financial
Services and Markets Act 2000 to conduct a review of whether
NatWest Group’s past business review of investment advice provided
during 2010 to 2015 was subject to appropriate governance and
accountability and led to appropriate customer
outcomes.
The Skilled Person’s review concluded in 2021 and, after discussion
with the FCA, NatWest Group is undertaking additional
review/remediation work which is expected to be fully complete by
the end of July 2026.
Review and investigation of treatment of tracker mortgage customers
in Ulster Bank Ireland DAC
In December 2015, correspondence was received from the Central Bank
of Ireland setting out an industry examination framework in respect
of the sale of tracker mortgages from approximately 2001 until the
end of 2015.
The redress and compensation process has now largely concluded,
although a small number of cases remain outstanding relating to
uncontactable customers.
Ulydien (formerly UBIDAC) customers have lodged tracker mortgage
complaints with the Financial Services and Pensions Ombudsman
(FSPO). UBIDAC challenged three FSPO adjudications in the Irish
High Court. In June 2023, the High Court found in favour of the
FSPO in all matters. UBIDAC appealed that decision to the Court of
Appeal.
In September 2024, the Court of Appeal allowed UBIDAC’s appeal and
set aside certain findings of the FSPO. The Court of Appeal
directed one aspect of the FSPO decisions to be remitted to the
FSPO for its consideration following an oral hearing.
Decisions are awaited from the FSPO in respect of these
cases.
Notes continued
16. Related party transactions
Related parties
(a) In their roles as providers of finance, NatWest Group companies
provide development and other types of capital support to
businesses. These investments are made in the normal course of
business.
(b) To further strategic partnerships, NatWest Group may
seek to
invest in third parties or allow third parties to hold a minority
interest in a subsidiary of NatWest Group. We disclose as related
parties for associates and joint ventures and where equity
interests are over 10%. Ongoing business transactions with these
entities are on normal commercial terms.
(c) NatWest Group recharges the NatWest Group Pension Fund with the
cost of pension management services incurred by it.
(d) In accordance with IAS 24, transactions or balances between
NatWest Group entities that have been eliminated on consolidation
are not reported.
The nature of related party transactions in H1 2026 was similar to
those disclosed in the NatWest Group plc 2025 Annual Report and
Accounts.
17. Post balance sheet events
As part
of the ongoing on-market share buyback programme, NatWest Group plc
has repurchased and cancelled a further 9.02 million shares since
30 June 2026 for a total consideration (excluding fees) of
£59.64 million.
Other
than as disclosed in this document, there have been no significant
events between 30 June 2026 and the date of approval of this
announcement which would require a change to, or additional
disclosure, in the announcement.
18. Date of approval
This announcement was approved by the Board of Directors on 30 July
2026.
Independent review report to NatWest Group plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed NatWest Group plc’s condensed consolidated interim
financial statements (the “interim financial statements”) in the
NatWest Group Interim Results 2026 of NatWest Group plc for the
6-month period ended 30 June 2026 (the “period”).
Based on our review, nothing has come to our attention that causes
us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with UK adopted
International Accounting Standard 34, ‘Interim Financial
Reporting’, International Accounting Standard 34, ‘Interim
Financial Reporting’ as issued by the International Accounting
Standards Board (‘IASB’) and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom’s Financial
Conduct Authority.
The interim financial statements comprise:
●
the
Condensed consolidated balance sheet as at 30 June
2026;
●
the
Condensed consolidated income statement for the period then
ended;
●
the
Condensed consolidated statement of comprehensive income for the
period then ended;
●
the
Condensed consolidated statement of changes in equity for the
period then ended;
●
the
Condensed consolidated cash flow statement for the period then
ended; and
●
the
explanatory notes to the interim financial
statements.
The interim financial statements included in the NatWest Group
Interim Results 2026 of NatWest Group plc have been prepared in
accordance with UK adopted International Accounting Standard 34,
‘Interim Financial Reporting’, International Accounting Standard
34, ‘Interim Financial Reporting’ as issued by the IASB and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard
on Review Engagements (UK) 2410, ‘Review of Interim Financial
Information Performed by the Independent Auditor of the Entity’
issued by the Financial Reporting Council for use in the United
Kingdom (“ISRE (UK) 2410”). A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures.
A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the NatWest Group
Interim Results 2026 and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However,
future events or conditions may cause the group to cease to
continue as a going concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The NatWest Group Interim Results 2026, including the interim
financial statements, is the responsibility of, and has been
approved by the directors. The directors are responsible for
preparing the NatWest Group Interim Results 2026 in accordance with
the Disclosure Guidance and Transparency Rules sourcebook of the
United Kingdom’s Financial Conduct Authority. In preparing the
NatWest Group Interim Results 2026, including the interim financial
statements, the directors are responsible for assessing the group’s
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the
group or to cease operations, or have no realistic alternative but
to do so.
Our responsibility is to express a conclusion on the interim
financial statements in the NatWest Group Interim Results 2026
based on our review. Our conclusion, including our Conclusions
relating to going concern, is based on procedures that are less
extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report.
Use of this report
This report, including the conclusion, has been prepared for and
only for the company for the purpose of complying with the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility
for any other purpose or to any other person to whom this report is
shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Edinburgh
30 July 2026
NatWest Group plc Summary Risk Factors
Summary of Principal Risks and Uncertainties
Set out below is a summary of the principal risks and uncertainties
for the remaining six months of the financial year which could
adversely affect NatWest Group.
This summary should not be regarded as a complete and comprehensive
statement of all potential risks and uncertainties; a fuller
description of these and other risk factors is included on pages
403 to 422 of the NatWest Group plc 2025 Annual Report and Accounts
and pages 269 to 289 of NatWest Group plc’s 2025 Form 20-F. Any of
the risks identified may have a material adverse effect on NatWest
Group’s business, operations, financial condition or
prospects.
Economic and political risk
●
NatWest
Group, its customers and its counterparties face continued economic
and political risks and uncertainties in the UK and global markets,
including as a result of inflation and interest rates, supply chain
disruption, protectionist policies, and geopolitical
developments
●
Changes
in interest rates will continue to affect NatWest Group’s business
and results.
●
Fluctuations
in currency exchange rates may adversely affect NatWest Group’s
results and financial condition.
Business change and execution risk
●
The
implementation and execution of NatWest Group’s strategy carries
execution and operational risks and it may not achieve its stated
aims and targeted outcomes.
●
Acquisitions,
divestments, or other transactions by NatWest Group may not be
successful.
●
NatWest
Group operates in markets that are highly competitive, with
evolving competitive pressures and technology
disruption.
●
The
transfer of NatWest Group’s EU corporate portfolio involves certain
risks.
Financial resilience risk
●
NatWest
Group may not achieve its ambitions or targets, meet its guidance,
or be in a position to continue to make discretionary capital
distributions (including dividends to
shareholders).
●
NatWest
Group has significant exposure to counterparty and borrower risk
including credit losses, which may have an adverse effect on
NatWest Group.
●
NatWest
Group may not meet the prudential regulatory requirements for
liquidity and funding or may not be able to adequately access
sources of liquidity and funding, which could trigger the execution
of certain management actions or recovery
options.
●
NatWest
Group may not meet the prudential regulatory requirements for
regulatory capital and MREL, or manage its capital effectively,
which could trigger the execution of certain management actions or
recovery options.
●
Any
reduction in the credit rating and/or outlooks assigned to NatWest
Group plc, any of its subsidiaries or any of their respective debt
securities could adversely affect the availability of funding for
NatWest Group, reduce NatWest Group’s liquidity and funding
position and increase the cost of funding.
●
NatWest
Group could incur losses or be required to maintain higher levels
of capital as a result of limitations or failure of various
models.
●
NatWest
Group’s financial statements are sensitive to underlying accounting
policies, judgements, estimates and
assumptions.
●
Changes
in accounting standards may materially impact NatWest Group’s
financial results.
●
The
value or effectiveness of any credit protection that NatWest Group
has acquired depends on the value of the underlying assets and the
financial condition of the insurers and
counterparties.
●
NatWest
Group could be adversely affected if it fails to meet the
requirements of regulatory stress tests, or if NatWest Group’s
resolution preparations are deemed inadequate.
●
NatWest
Group may become subject to the application of UK statutory
stabilisation or resolution powers which may result in, for
example, the cancellation, transfer or dilution of ordinary shares,
or the write-down or conversion of certain other of NatWest Group’s
securities.
NatWest Group plc summary risk factors continued
Summary of Principal Risks and Uncertainties continued
Operational and IT resilience risk
●
Operational
risks (including reliance on third party suppliers and outsourcing
of certain activities) are inherent in NatWest Group’s
businesses.
●
NatWest
Group is subject to sophisticated and frequent cyberattacks, and
compliance with cybersecurity and data protection regulations is
becoming increasingly complex.
●
NatWest
Group’s operations and strategy are highly dependent on the
accuracy and effective use of data.
●
NatWest
Group’s operations are highly dependent on its complex IT systems
and any IT failure could adversely affect NatWest
Group.
●
NatWest
Group relies on attracting, retaining and developing diverse senior
management and skilled personnel, and is required to maintain good
employee relations.
●
A
failure in NatWest Group’s risk management framework could
adversely affect NatWest Group, including its ability to achieve
its strategic objectives.
●
NatWest
Group’s operations are subject to inherent reputational
risk.
Legal and regulatory risk
●
NatWest
Group’s businesses are subject to substantial regulation and
oversight, which are constantly evolving and may adversely affect
NatWest Group.
●
NatWest
Group is exposed to the risks of various litigation matters,
regulatory and governmental actions and investigations as well as
remedial undertakings, the outcomes of which are inherently
difficult to predict, and which could have an adverse effect on
NatWest Group.
●
Changes
in tax legislation (or application thereof) or failure to generate
future taxable profits may impact the recoverability of certain
deferred tax assets recognised by NatWest
Group.
Climate and sustainability-related risks
●
NatWest
Group and its Value Chain face climate and sustainability-related
risks that may adversely affect NatWest Group.
●
NatWest
Group’s strategy relating to climate and sustainability is subject
to execution and reputational risks. NatWest
Group’s climate and sustainability-related ambitions, targets and
commitments may not be achieved, and its climate transition plan
may not be implemented, without timely and appropriate government
policy, technology
developments, and suppliers, customers and
society supporting the transition.
●
There are significant limitations
related to accessing accurate, reliable, verifiable, auditable,
consistent and comparable climate and sustainability-related data
that contribute to substantial uncertainties in accurately
assessing, managing and reporting on climate and sustainability –
related information and risks, as well as making informed
decisions.
●
NatWest
Group is subject to an increasingly complex and evolving landscape
of climate and sustainability-related legal, regulatory, and
supervisory expectations and there is an increasing risk of
regulatory non-compliance, investigations, litigation, and
enforcement actions.
Statement of directors’ responsibilities
We, the directors listed below, confirm that to the best of our
knowledge:
●
the condensed financial
statements have been prepared in accordance with IAS 34 ‘Interim
Financial Reporting’, as adopted by the UK and as issued by the
International Accounting Standards Board (IASB) and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom’s
Financial Conduct Authority;
●
the
interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the
first six months and description of principal risks and
uncertainties for the remaining six months of the year);
and
●
the interim management report
includes a fair review of the information required by DTR 4.2.8R
(disclosure of related parties’ transactions and changes
therein).
By order of the Board
Richard
Haythornthwaite
John-Paul
Thwaite
Katie
Murray
Chair
Group
Chief Executive Officer
Group
Chief Financial Officer
30 July 2026
Board of directors
Chair
Executive directors
Non-executive directors
Richard
Haythornthwaite
John-Paul
Thwaite
Katie
Murray
Joshua
Critchley
Roisin
Donnelly
Patrick
Flynn
Geeta
Gopalan
Albert
Hitchcock
Erminia
Johannson
Stuart
Lewis
Gillian
Whitehead
Lena
Wilson
Erminia Johannson was appointed as non-executive director on 1 July
2026.
Additional information
Presentation of information
NatWest Group plc (the ‘parent company’) together with its
subsidiaries forms ‘NatWest Group’. The term ‘NatWest Group’,
‘Group’ or ‘we’ refers to NatWest Group plc and its subsidiaries.
The term ‘NWH Group’ refers to NatWest Holdings Limited (‘NWH
Limited’) and its subsidiary and associated undertakings. The term
‘NWM Group’ refers to NatWest Markets Plc (‘NWM Plc’) and its
subsidiary and associated undertakings. The term NWM N.V. Group
refers to NatWest Markets N.V. and its subsidiary and associated
undertakings. The term ‘NWMSI’ refers to NatWest Markets
Securities, Inc. The term ‘RBS plc’ refers to The Royal Bank of
Scotland plc. The term ‘NWB Plc’ refers to National Westminster
Bank Plc. The term RBSI Ltd refers to The Royal Bank of Scotland
International Limited. The term Evelyn Partners refers to Evelyn
Partners Group Limited.
NatWest Group publishes its financial statements in pounds sterling
(‘£’ or ‘sterling’). The abbreviations ‘£m’ and
‘£bn’ represent millions and thousands of millions of pounds
sterling, respectively, and references to ‘pence’ or ‘p’ represent
pence where the amounts are denominated in pounds sterling (‘GBP’).
Reference to ‘dollars’ or ‘$’ are to United States of America
(‘US’) dollars. The abbreviations ‘$m’ and ‘$bn’ represent millions
and thousands of millions of dollars, respectively. The
abbreviation ‘€’ represents the ‘euro’, and the abbreviations
‘€m’ and ‘€bn’ represent millions and thousands of
millions of euros, respectively.
Statutory accounts
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 (‘the Act’). The statutory accounts for the
year ended 31 December 2025 have been filed with the Registrar of
Companies. The report of the auditor on those statutory accounts
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under section 498(2) or
(3) of the Act.
Share information
30 June
2026
31
March
2026
31
December
2025
Ordinary
share price
(pence)
667.00
553.20
651.80
Number
of ordinary shares in issue (millions)
8,148
8,177
8,227
Financial calendar
2026
third quarter interim management statement
30
October 2026
Contacts
Analyst
enquiries:
Claire
Kane, Investor Relations
+44 (0)
20 7672 1758
Media
enquiries:
NatWest
Group Financial Media Desk
+44 (0)
7557 316 540
Registered office
36 St
Andrew Square, Edinburgh EH2 2YB.
Registered
in Scotland No. SC045551
Management presentation
Fixed income call
Date:
31 July
2026
31 July
2026
Time:
9:00am
1:00pm
Zoom ID:
910
4885 9347
926
1181 7724
Further information available on natwestgroup.com/results
●
Interim Results 2026 and presentation
slides.
●
A financial supplement containing income
statement, balance sheet and segment performance information for
the five quarters ended 30 June 2026.
●
NatWest Group Pillar 3 at 30 June
2026.
Additional information continued
Forward-looking statements
This document may include forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, such as statements with respect to NatWest Group’s
financial condition, results of operations and business, including
its strategic priorities, financial, investment and capital
targets, and climate and sustainability-related ambitions, targets
and commitments described herein. Statements that are not
historical facts, including statements about NatWest Group’s
beliefs and expectations, are forward-looking statements. Words,
such as ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘commit’,
‘believe’, ‘should’, ‘intend’, ‘will’, ‘plan’, ‘could’, ‘target’,
‘goal’, ‘objective’, ‘may’, ‘outlook’, ‘prospects’ and similar
expressions or variations on these expressions are intended to
identify forward-looking statements. In particular, this document
may include forward-looking statements relating, but not limited
to: NatWest Group’s outlook, guidance and targets (including in
relation to RoTE, total income, other operating expenses, loan
impairment rate, CET1 ratio, RWA levels, payment of dividends and
participation in directed buybacks), its financial position,
profitability and financial performance, the implementation of its
strategy, its access to adequate sources of liquidity and funding,
its regulatory capital position and related requirements, its
impairment losses and credit exposures under certain specified
scenarios, substantial regulation and oversight, ongoing legal,
regulatory and governmental actions and
investigations. Forward-looking
statements are subject to a number of risks and uncertainties that
might cause actual results and performance to differ materially
from any expected future results or performance expressed or
implied by the forward-looking statements. Factors that could cause
or contribute to differences in current expectations include, but
are not limited to, future growth initiatives (including
acquisitions, joint ventures and strategic partnerships), the
outcome of legal, regulatory and governmental actions and
investigations, the level and extent of future impairments and
write-downs, legislative, political, fiscal and regulatory
developments, accounting standards, competitive conditions,
technological developments, interest and exchange rate
fluctuations, general economic and political conditions and
uncertainties, exposure to third party risk, operational risk,
conduct risk, cyber, data and IT risk, financial crime risk, key
person risk and credit rating risk and the impact of climate and
sustainability related risks and the transitioning to a net zero
economy. These and other factors, risks and uncertainties that may
impact any forward-looking statement or NatWest Group plc’s actual
results are discussed in NatWest Group plc’s 2025 Annual Report and
Accounts on Form 20-F, NatWest
Group’s Interim
Management Statement for
Q1 and H1 2026 on Form 6-K, and
its other public filings. The forward-looking statements contained
in this document speak only as of the date of this document and
NatWest Group plc does not assume or undertake any obligation or
responsibility to update any of the forward-looking statements
contained in this document, whether as a result of new information,
future events or otherwise, except to the extent legally
required.
Caution on non-financial reporting
The processes we have adopted to define, collect and report data on
our climate and sustainability-related performance, as well as the
associated metrics and disclosures in this document, are not
subject to the same formal processes adopted for financial
reporting in accordance with established reporting standards. They
involve a higher degree of judgement, assumptions and estimates,
including in relation to the classification of climate and
sustainability-related (including social, sustainability,
sustainability-linked, green, climate and transition) funding,
financing and facilitation activities, than what is required for
reporting of historical financial information prepared in
accordance with established reporting standards. As a result,
climate and sustainability-related disclosures may be amended,
updated or restated over time. However, NatWest Group does not
undertake to restate prior disclosures except where required by
applicable law or regulation, even if subsequently available data
or methodologies differ from those used at the time of the original
disclosure. In addition, non-financial reporting systems are less
developed than financial reporting systems, often involving manual
processes and less robust controls, which may affect data quality
and consistency. Refer also to the ‘Climate and
sustainability-related risk factors’ on pages 420 to 422 of the
NatWest Group plc 2025 Annual Report and Accounts, the ‘Additional
cautionary statement regarding climate and sustainability-related
data, metrics and forward-looking statements’ on pages 429 to 431
of the NatWest Group plc 2025 Annual Report and Accounts, and the
cautionary statement in the section entitled ‘Caution about
climate-related metrics and data required for climate reporting’ on
pages 70 to 72 of the NatWest Group plc 2025 Climate Transition
Plan Report.
Caution about sustainability-related funding, financing and
facilitation
Sustainability-related (including social, sustainability,
sustainability-linked, green, climate, transition) funding,
financing and facilitation currently represents only a relatively
small proportion of NatWest Group’s overall funding, financing and
facilitation activities. Accordingly, disclosures relating to
sustainability-related funding, financing and facilitation should
be read in the context of NatWest Group’s broader balance sheet,
risk profile and funding, financing and facilitation activities,
and should not be interpreted as indicative of NatWest Group’s
overall funding, financing or facilitation strategy.
Non-IFRS financial measures
NatWest Group prepares its financial statements in accordance with
UK-adopted International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS), as issued by
the International Accounting Standards Board (IASB). This document
contains a number of non-IFRS measures, or alternative performance
measures, defined under the European Securities and Markets
Authority (ESMA) guidance, or non-Generally Accepted Accounting
Principles (GAAP) financial measures in accordance with the
Securities and Exchange Commission (SEC) regulations. These
measures are adjusted for notable and other defined items which
management believes are not representative of the underlying
performance of the business and which distort period-on-period
comparison.
The non-IFRS measures provide users of the financial statements
with a consistent basis for comparing business performance between
financial periods and information on elements of performance that
are one-off in nature. The non-IFRS measures also include the basis
of calculation for metrics that are used throughout the banking
industry.
These non-IFRS measures are not a substitute for IFRS measures and
a reconciliation to the closest IFRS measure is presented where
appropriate.
Measure
Description
Cost:income ratio (excl. litigation and conduct)
Refer
to table 2. Cost:income ratio (excl. litigation and conduct) on
page 108.
The
cost:income ratio (excl. litigation and conduct) is calculated as
other operating expenses (operating expenses less litigation and
conduct costs) divided by total income. Litigation and conduct
costs are excluded as they are one-off in nature, difficult to
forecast for Outlook purposes and distort period-on-period
comparisons.
Customer deposits excluding central items
Refer
to Segment performance on pages 12-16 for components of
calculation.
Customer
deposits excluding central items is calculated as total NatWest
Group customer deposits excluding Central items & other
customer deposits. Central items & other includes Treasury repo
activity. The exclusion of
Central items & other removes the volatility relating to
Treasury repo activity and the reduction of deposits as part of our
withdrawal from the Republic of Ireland.
These items may distort period-on-period comparisons and their
removal gives the user of the financial statements a better
understanding of the movements in customer
deposits.
Funded assets
Refer
to Condensed consolidated balance sheet on page 71 for components
of calculation.
Funded assets is calculated as total assets less derivative assets.
This measure allows review of balance sheet trends exclusive of the
volatility associated with derivative fair
values.
Loan:deposit ratio (excl. repos and reverse repos)
Refer
to table 5. Loan:deposit ratio (excl. repos and reverse repos) on
page 109.
Loan:deposit
ratio (excl. repos and reverse repos) is calculated as net customer
loans – amortised cost excluding reverse repos divided by total
customer deposits excluding repos. This metric is used to assess
liquidity.
The
removal of repos and reverse repos reduces volatility and presents
the ratio on a basis that is comparable to UK peers. The nearest
ratio using IFRS measures is loan:deposit ratio – this is
calculated as net loans to customers – amortised cost divided by
customer deposits.
NatWest Group Return on Tangible Equity
Refer
to table 7. NatWest Group Return on Tangible Equity on page
110.
NatWest
Group Return on Tangible Equity comprises annualised profit or loss
for the period attributable to ordinary shareholders divided by
average tangible equity. Average tangible equity is average total
equity excluding average non-controlling interests, average other
owners’ equity and average intangible assets. This measure shows
the return NatWest Group generates on tangible equity deployed. It
is used to determine relative performance of banks and used widely
across the sector, although different banks may calculate the rate
differently. The nearest ratio using IFRS measures is return on
equity, calculated as profit attributable to ordinary shareholders
divided by average total equity.
Non-IFRS financial measures continued
Measure
Description
Net interest margin and average interest earning
assets
Refer
to Segment performance on pages 12-16 for components of
calculation.
Net
interest margin is net interest income as a percentage of average
interest earning assets (IEA).
Average
IEA are average IEA of the banking business of NatWest Group and
primarily consists of cash and balances at central banks, loans to
banks – amortised cost, loans to customers – amortised cost and
other financial assets. It excludes trading balances and assets in
treasury repurchase agreements that have not been derecognised.
Average IEA shows the average asset base generating interest over
the period.
Net loans to customers excluding central items
Refer
to Segment performance on pages 12-16 for components of
calculation.
Net
loans to customers excluding central items is calculated as total
NatWest Group net loans to customers excluding Central items &
other net loans to customers. Central items & other includes
Treasury reverse repo activity. The exclusion of Central items
& other removes the volatility relating to Treasury reverse
repo activity and the reduction of loans to customers as part of
our withdrawal from the Republic of Ireland.
This
allows for better period-on-period comparisons and gives the user
of the financial statements a better understanding of the movements
in net loans to customers.
Operating expenses excluding litigation and conduct
Refer
to table 4. Operating expenses excluding litigation and conduct on
page 109.
The
management analysis of operating expenses shows litigation and
conduct costs separately. These amounts are included within staff
costs and other administrative expenses in the statutory analysis.
Other operating expenses excludes litigation and conduct costs,
which are more volatile and may distort period-on-period
comparisons.
Segment return on equity
Refer
to table 8. Segment return on equity on page 110.
Segment
return on equity comprises segmental operating profit or loss,
adjusted for paid-in equity and tax, divided by average notional
equity. Average RWAe is defined as average segmental RWAs
incorporating the effect of capital deductions. This is multiplied
by an allocated equity factor for each segment to calculate the
average notional equity. This measure shows the return generated by
operating segments on equity deployed.
Tangible net asset value (TNAV) per ordinary share
Refer
to table 3. Tangible net asset value (TNAV) per ordinary share on
page 108.
TNAV
per ordinary share is calculated as tangible equity divided by the
number of ordinary shares in issue. This is a measure used by
external analysts in valuing the bank and allows for comparison
with other per ordinary share metrics including the share price.
The nearest ratio using IFRS measures is net asset value (NAV) per
ordinary share – this comprises ordinary shareholders’ interests
divided by the number of ordinary shares in issue.
Total customer assets and liabilities (CAL)
Refer
to table 6. Total customer assets and liabilities (CAL) on page
109.
CAL
comprises customer deposits and gross loans to customers (amortised
cost), across the Retail Banking, Private Banking & Wealth
Management and Commercial & Institutional segments. For the
Private Banking & Wealth Management segment, CAL also includes
AUMA, with an adjustment to deduct investment cash to avoid double
counting, as investment cash is recognised within both customer
deposits and AUMA.
The
components of CAL are key drivers of income and provide a measure
of growth and strength of the business on a comparable
basis.
Total income excluding notable items
Refer
to table 1. Total income excluding notable items on page
108.
Total
income excluding notable items is calculated as total income less
notable items. The exclusion of notable items aims to remove the
impact of one-offs and other items which may distort
period-on-period comparisons.
Non-IFRS financial measures continued
1. Total income excluding notable items
Half year ended
Quarter ended
30 June
30 June
30 June
31 March
30 June
2026
2025
2026
2026
2025
£m
£m
£m
£m
£m
Total income
8,862
7,985
4,504
4,358
4,005
Less notable items:
Commercial & Institutional
Own credit
adjustments
2
3
(1)
3
(3)
Central items & other
Share of gains/(losses) of
associate – Business Growth Fund
19
14
20
(1)
(1)
Interest and foreign exchange
management derivatives not in hedge
accounting
relationships
36
6
(2)
38
(1)
Foreign exchange recycling
gains
133
–
38
95
–
190
23
55
135
(5)
Total income excluding notable items
8,672
7,962
4,449
4,223
4,010
2. Cost:income ratio (excl. litigation and conduct)
Half year ended
Quarter ended
30 June
30 June
30 June
31 March
30 June
2026
2025
2026
2026
2025
£m
£m
£m
£m
£m
Operating expenses
4,121
4,018
2,079
2,042
2,039
Less litigation and conduct costs
(45)
(118)
(30)
(15)
(74)
Other operating expenses
4,076
3,900
2,049
2,027
1,965
Total income
8,862
7,985
4,504
4,358
4,005
Cost:income ratio
46.5%
50.3%
46.2%
46.9%
50.9%
Cost:income ratio (excl. litigation and conduct)
46.0%
48.8%
45.5%
46.5%
49.1%
3. Tangible net asset value (TNAV) per ordinary share
As at
30 June
31 March
31 December
2026
2026
2025
Ordinary shareholders’ interests (£m)
38,748
39,084
38,028
Less intangible assets (£m)
(10,205)
(7,224)
(7,292)
Tangible equity (£m)
28,543
31,860
30,736
Ordinary shares in issue (millions) (1)
7,959
7,971
7,995
NAV per ordinary share (pence)
487p
490p
476p
TNAV per ordinary share (pence)
359p
400p
384p
(1) The number of ordinary shares in issue excludes
own shares held.
Non-IFRS financial measures continued
4. Operating expenses excluding litigation and conduct
Half year ended
Quarter ended
30 June
30 June
30 June
31 March
30 June
2026
2025
2026
2026
2025
£m
£m
£m
£m
£m
Other operating expenses
Staff expenses
2,104
2,099
1,034
1,070
1,044
Premises and equipment
623
587
314
309
293
Other administrative expenses
784
657
416
368
337
Depreciation and amortisation
565
557
285
280
291
Total other operating expenses
4,076
3,900
2,049
2,027
1,965
Litigation and conduct costs
Staff expenses
30
30
14
16
16
Premises and equipment
5
–
2
3
–
Other administrative expenses
10
88
14
(4)
58
Total litigation and conduct costs
45
118
30
15
74
Total operating expenses
4,121
4,018
2,079
2,042
2,039
Operating expenses excluding litigation and conduct
4,076
3,900
2,049
2,027
1,965
5. Loan:deposit ratio (excl. repos and reverse repos)
As at
30 June
31 March
31 December
2026
2026
2025
£m
£m
£m
Loans to customers – amortised cost
435,908
431,563
418,881
Less reverse repos
(33,381)
(37,784)
(32,817)
Loans to customers – amortised cost (excl. reverse
repos)
402,527
393,779
386,064
Customer deposits
448,605
445,461
442,998
Less repos
(1,632)
(1,474)
(1,796)
Customer deposits (excl. repos)
446,973
443,987
441,202
Loan:deposit ratio
97%
97%
95%
Loan:deposit ratio (excl. repos and reverse repos)
90%
89%
88%
6. Total customer assets and liabilities (CAL)
As at
30 June 2026
31 March
2026
31 December
2025
Private Banking
Private Banking
Private Banking
Retail
& Wealth
Commercial
Retail
& Wealth
Commercial
Retail
& Wealth
Commercial
Banking
Management
& Institutional
Total
Banking
Management
& Institutional
Total
Banking
Management
& Institutional
Total
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
Gross loans and advances to customers
225.3
19.1
165.3
409.7
221.3
19.1
159.6
400.0
217.9
19.0
155.8
392.7
Customer deposits
202.2
41.4
204.0
447.6
202.2
41.1
201.5
444.8
202.6
42.7
196.4
441.7
Assets under management and
administration
(AUMA)
–
130.6
–
130.6
–
56.7
–
56.7
–
58.5
–
58.5
Less investment cash included in both
customer deposits and
AUMA
–
(1.0)
–
(1.0)
–
(1.4)
–
(1.4)
–
(1.2)
–
(1.2)
CAL
427.5
190.1
369.3
986.9
423.5
115.5
361.1
900.1
420.5
119.0
352.2
891.7
Non-IFRS financial measures continued
7. NatWest Group Return on Tangible Equity
Half
year ended and as at
Quarter ended and as at
30 June
30 June
30 June
31 March
30 June
2026
2025
2026
2026
2025
£m
£m
£m
£m
£m
Profit attributable to ordinary shareholders
3,035
2,488
1,603
1,432
1,236
Annualised profit attributable to ordinary
shareholders
6,070
4,976
6,412
5,728
4,944
Average total equity
43,092
40,817
43,108
43,216
41,474
Adjustment for average other owners’ equity and intangible
assets
(12,243)
(13,336)
(12,607)
(11,760)
(13,529)
Adjusted total tangible equity
30,849
27,481
30,501
31,456
27,945
Return on equity
14.1%
12.2%
14.9%
13.3%
11.9%
Return on Tangible Equity
19.7%
18.1%
21.0%
18.2%
17.7%
8. Segment return on equity
Half year ended 30 June 2026
Half year ended 30 June 2025
Private Banking
Private Banking
Retail
& Wealth
Commercial
Retail
& Wealth
Commercial
Banking
Management
& Institutional
Banking
Management
& Institutional
Operating profit (£m)
1,729
212
2,284
1,485
179
1,984
Paid-in equity cost allocation (£m)
(38)
(6)
(104)
(49)
(8)
(129)
Adjustment for tax (£m)
(473)
(58)
(545)
(402)
(48)
(464)
Adjusted attributable profit (£m)
1,218
148
1,635
1,034
123
1,391
Annualised adjusted attributable profit (£m)
2,435
297
3,270
2,068
246
2,783
Average RWAe (£bn)
70.7
11.4
114.0
67.9
11.2
107.5
Equity factor
12.7%
10.9%
14.1%
12.8%
11.1%
13.9%
Average notional equity (£bn)
9.0
1.2
16.1
8.7
1.2
14.9
Return on equity
27.1%
23.8%
20.3%
23.8%
19.8%
18.6%
Quarter ended 30 June 2026
Quarter ended 31 March 2026
Quarter ended 30 June 2025
Private Banking
Private Banking
Private Banking
Retail
& Wealth
Commercial
Retail
& Wealth
Commercial
Retail
& Wealth
Commercial
Banking
Management
& Institutional
Banking
Management
& Institutional
Banking
Management
& Institutional
Operating profit (£m)
948
118
1,254
781
94
1,030
735
102
964
Paid-in equity cost allocation (£m)
(20)
(3)
(53)
(18)
(3)
(51)
(26)
(4)
(66)
Adjustment for tax (£m)
(260)
(32)
(300)
(214)
(25)
(245)
(199)
(27)
(225)
Adjusted attributable profit (£m)
668
83
901
549
66
734
510
71
673
Annualised adjusted attributable profit (£m)
2,673
331
3,603
2,197
262
2,937
2,042
282
2,694
Average RWAe (£bn)
71.0
11.5
114.1
70.4
11.4
113.8
68.9
11.3
108.3
Equity factor
12.7%
10.9%
14.1%
12.7%
10.9%
14.1%
12.8%
11.1%
13.9%
Average notional equity (£bn)
9.0
1.3
16.1
8.9
1.2
16.0
8.8
1.3
15.1
Return on equity
29.7%
26.5%
22.4%
24.6%
21.1%
18.3%
23.2%
22.5%
17.9%
Performance measures not defined under IFRS
The table below summarises other performance measures used by
NatWest Group, not defined under IFRS, and therefore a
reconciliation to the nearest IFRS measure is not
applicable.
Measure
Description
AUMA
AUMA
comprises both assets under management (AUM) and client assets
under administration (AUA) serviced through the Private Banking
& Wealth Management segment and not recognised on NatWest
Group’s balance sheet. AUM comprise assets where the investment
management is undertaken by Private Banking & Wealth Management
on behalf of customers of the Private Banking & Wealth
Management, Retail Banking and Commercial & Institutional
segments. AUA comprises i) third party assets held on an
execution-only basis in custody by Private Banking & Wealth
Management, Retail Banking and Commercial & Institutional for
their customers, for which the execution services are supported by
Private Banking & Wealth Management ii) AUA of Cushon, the sale
of which completed in the quarter, which were previously supported
by Private Banking & Wealth Management and held and managed by
third parties. This measure is tracked and reported as the amount
of funds that we manage or administer, and directly impacts the
level of investment income that we receive.
AUMA
income
AUMA
income includes investment income earned across NatWest Group
(excluding Cushon). Investment income includes ongoing fees as a
percentage of assets and fees, charged on a per transaction basis,
for advice services, trading and exchange services, protection and
alternative investing services. AUMA is a core driver of
non-interest income, especially with respect to ongoing investment
income and this measure provides a means of reporting the income
earned on AUMA.
AUM net
flows
AUM net
flows refers to net client cash inflows and outflows relating to
investment products, both discretionary and advisory mandates
serviced through the Private Banking & Wealth Management
segment. AUM comprises assets where the investment management is
undertaken by Private Banking & Wealth Management on behalf of
Private Banking & Wealth Management, Retail Banking and
Commercial & Institutional customers.
Capital
generation pre-distributions
Capital
generation pre-distributions refers to the change in the CET1 ratio
in the period, before distributions to ordinary shareholders. It
reflects the capital generated through business activities and all
other movements, including attributable profit for the period,
impacts from acquisitions and disposals, and risk-weighted asset
(RWA) changes, prior to the deduction of ordinary shareholder
distributions such as ordinary dividends and share buybacks. It is
used to show the capital generated in the period that is available
for deployment in the business and distribution to
shareholders.
Climate
and transition finance
The
climate and transition finance target enables NatWest Group to
quantify the level of financing and facilitation provided by
NatWest Group that could support customers in achieving their
climate and/or transition ambitions, through lending and
underwriting activities. The climate and transition finance
framework, available on natwestgroup.com, underpins the target to
provide £200 billion in climate and transition finance between
1 July 2025 and the end of 2030.
ECL
provision coverage ratio
ECL
provision coverage ratio is total ECL provisions as a percentage of
loans measured at amortised cost and FVOCI. Total ECL provisions
include allowances relating to loans, non-loan financial assets and
undrawn commitments. The ratio is used as an indicator of reserve
adequacy against potential future credit losses and supports
comparison of provisioning levels across segments and
sectors.
Loan
impairment rate
Loan
impairment rate is the annualised loan impairment charge divided by
gross customer loans. This measure is used to assess the credit
quality of the loan book.
Third
party rates
Third party customer asset rate is calculated as annualised
interest receivable on third-party loans to customers as a
percentage of third-party loans to customers. This excludes assets
of disposal groups, intragroup items, loans to banks and liquid
asset portfolios. Third party customer funding rate reflects
interest payable or receivable on third-party customer deposits,
including interest bearing and non- interest bearing customer
deposits. Intragroup items, bank deposits, debt securities in issue
and subordinated liabilities are excluded for customer funding rate
calculation.
Wholesale
funding
Wholesale funding comprises deposits by banks (excluding repos),
debt securities in issue and subordinated liabilities. Funding risk
is the risk of not maintaining a diversified, stable and
cost-effective funding base. The disclosure of wholesale funding
highlights the extent of our diversification and how we mitigate
funding risk. Short-term wholesale funding comprises wholesale
funding with less than one year to maturity.
Legal Entity Identifier: 2138005O9XJIJN4JPN90
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
NatWest Group plc
(Registrant)
Date:
31 July
2026
By:
/s/
Mark Stevens
Name:
Mark
Stevens
Title:
Assistant
Secretary