NWG.NYSENatwest Group PLC
20-F: NatWest Group Delivers Strong 2024 Performance Amidst Economic Uncertainty
NatWest Group reports a solid 2024 with a return on equity of 11.9% and progress on strategic priorities, despite a complex economic landscape.
Summary
- NatWest Group's 20-F filing for December 31, 2024, highlights a strong financial performance with a return on equity of 11.9% and a RoTE of 17.5%.
- Total income reached 14.7 billion, exceeding guidance at 14.6 billion excluding notable items.
- The group maintained cost discipline, achieving broadly stable costs excluding increased bank levies and retail share offering expenses.
- Default levels remained stable at low levels, and there was strong growth in net lending and customer deposits.
- The CET1 ratio was within the targeted range at 13.6%.
- Net loans to customers increased by 18.9 billion to 400.3 billion.
- Customer deposits increased by 2.1 billion to 433.5 billion.
- The group has provided 93.4 billion towards its target of 100 billion in climate and sustainable funding and financing between July 1, 2021, and the end of 2025.
- The group is also involved in various legal proceedings and regulatory matters, with ongoing cooperation with relevant authorities.
Positives
- Strong financial performance with a high return on equity and RoTE.
- Growth in net lending and customer deposits.
- Maintenance of a strong CET1 ratio within the target range.
- Significant progress towards climate and sustainable funding targets.
- Stable levels of default across the loan portfolio.
Negatives
- Total income decreased slightly by 0.3% compared to the previous year.
- Total operating expenses increased by 153 million compared to the previous year.
- ECL provision decreased by 0.2 billion, and the ECL coverage ratio decreased from 0.93% to 0.83%.
Risks
- Economic and political risks, including inflation, interest rates, supply chain disruption, and geopolitical developments, could impact performance.
- Changes in interest rates and foreign currency exchange rates may adversely affect results.
- Implementation of the group's strategy carries execution and operational risks.
- The group may not meet prudential regulatory requirements for liquidity, funding, capital, and MREL.
- Reductions in credit ratings could affect funding availability and increase costs.
- Operational risks, including reliance on third-party suppliers and cyberattacks, are inherent in the business.
- The group is exposed to litigation matters and regulatory actions.
- Climate and sustainability-related risks may adversely affect the group and its value chain.
- The group's strategy relating to climate change entails execution and reputational risks.
- There are limitations related to accessing accurate climate data.
Key Dates
| Date | Description |
|---|---|
| 2008 | Start date for alleged spoofing conduct in US Treasuries markets |
| 2009-01-01 | Start date for Legal Proceeding Coutts And Co Ltd Onemdb Litigation |
| 2011-12-31 | End date for Legal Proceeding Coutts And Co Ltd Onemdb Litigation |
| 2012 | Start date for breaches of the Money Laundering Regulations |
| 2014-05-31 | End date for alleged spoofing conduct in US Treasuries markets |
| 2015-12-01 | Start date for Review And Investigation Of Treatment Of Tracker Mortgage Customers In UlsterBank Ireland Dac |
| 2015-12-31 | End date for Review And Investigation Of Treatment Of Tracker Mortgage Customers In UlsterBank Ireland Dac |
| 2018-01-01 | Start date for Us Investigations Relating To Fixed Income Securities |
| 2018-09-01 | Start date for Tel Aviv District Court Fx Antitrust Litigations |
| 2018-10-31 | End date for Tel Aviv District Court Fx Antitrust Litigations |
| 2018-12-31 | End date for Offshoring Vat Assessments |
| 2019-05-01 | Start date for Federal Court Of Australia Fx Antitrust Litigation |
| 2019-05-31 | End date for Federal Court Of Australia Fx Antitrust Litigation |
| 2019-07-01 | Start date for Uk Competition Appeal Tribunal Fx Litigation |
| 2019-12-31 | End date for Uk Competition Appeal Tribunal Fx Litigation |
| 2020-01-01 | Start date for Main Section Of RoyalBankOfScotlandGroupPensionFundMember |
| 2020-12-01 | Start date for Offshoring Vat Assessments |
| 2020-12-31 | End date for Main Section Of RoyalBankOfScotlandGroupPensionFundMember |
| 2020-12-31 | End date for Offshoring Vat Assessments |
| 2021-01-01 | Start date for Main Section Of RoyalBankOfScotlandGroupPensionFundMember |
| 2021-08-01 | Start date for Legal Proceeding Madoff Litigation |
| 2021-08-31 | End date for Legal Proceeding Madoff Litigation |
| 2021-12-01 | Start date for Us Investigations Relating To Fixed Income Securities |
| 2021-12-31 | End date for Main Section Of RoyalBankOfScotlandGroupPensionFundMember |
| 2021-12-31 | End date for Us Investigations Relating To Fixed Income Securities |
| 2022-01-01 | Start date for Elimination Of IntersegmentAmountsMember |
| 2022-01-01 | Start date for Main Section Of RoyalBankOfScotlandGroupPensionFundMember |
| 2022-01-01 | Start date for OnMarketShareBuybackProgrammeMember |
| 2022-01-01 | Start date for SharesaveOptionsMember |
| 2022-03-01 | Start date for UkGovernmentInvestmentsLtdMember |
| 2022-03-31 | End date for UkGovernmentInvestmentsLtdMember |
| 2022-05-01 | Start date for Offshoring Vat AssessmentsMember |
| 2022-05-31 | End date for Offshoring Vat AssessmentsMember |
| 2022-07-01 | Start date for Legal Proceeding Spoofing Litigation Member |
| 2022-07-31 | End date for Legal Proceeding Spoofing Litigation Member |
| 2022-08-30 | End date for Structured Entities Relating To Other Credit Risk Transfer Securitisation Member |
| 2022-11-01 | Start date for Onemdb LitigationMember |
| 2022-11-3 | End date for Onemdb LitigationMember |
| 2022-12-31 | End date for Elimination Of IntersegmentAmountsMember |
| 2022-12-31 | End date for Main Section Of RoyalBankOfScotlandGroupPensionFundMember |
| 2022-12-31 | End date for OnMarketShareBuybackProgrammeMember |
| 2022-12-31 | End date for SharesaveOptionsMember |
| 2023-01-01 | Start date for AssociatesAndJointVenturesMember |
| 2023-01-01 | Start date for BuybackProgramme2023Member |
| 2023-01-01 | Start date for EquitySharesMember |
| 2023-01-01 | Start date for LegalProceedingsProvisionMember |
| 2023-01-01 | Start date for MainSectionOfRoyalBankOfScotlandGroupPensionFundMember |
| 2023-01-01 | Start date for NonDeferredCashAwardsMember |
| 2023-01-01 | Start date for OnMarketShareBuybackProgrammeMember |
| 2023-01-01 | Start date for ShareCapitalSharePremiumAndPaidInEquityMember |
| 2023-01-01 | Start date for SharesaveOptionsMember |
| 2023-01-01 | Start date for StructuredEntitiesRelatingToOtherCreditRiskTransferSecuritisationMember |
| 2023-01-01 | Start date for UkGovernmentInvestmentsLtdMember |
| 2023-04-01 | Start date for DirectorsMember |
| 2023-04-25 | Start date for BuybackProgramme2023Member |
| 2023-05-01 | Start date for UkGovernmentInvestmentsLtdMember |
| 2023-05-22 | Start date for BuybackProgramme2023Member |
| 2023-05-31 | End date for UkGovernmentInvestmentsLtdMember |
| 2023-07-01 | Start date for LegalProceedingSpoofingLitigationMember |
| 2023-07-31 | Start date for BuybackProgramme2023Member |
| 2023-12-01 | Start date for UsInvestigationsRelatingToFixedIncomeSecuritiesMember |
| 2023-12-31 | End date for AssociatesAndJointVenturesMember |
| 2023-12-31 | End date for BuybackProgramme2023Member |
| 2023-12-31 | End date for DeferredCashAwardsMember |
| 2023-12-31 | End date for DeferredPerformanceAwardsMember |
| 2023-12-31 | End date for EquitySharesMember |
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| 2023-12-31 | End date for LongTermIncentiveMember |
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| 2023-12-31 | End date for MiscellaneousOtherProvisionMember |
| 2023-12-31 | End date for NonDeferredCashAwardsMember |
| 2023-12-31 | End date for OnMarketShareBuybackProgrammeMember |
| 2023-12-31 | End date for OtherSubsidiaries140MillionNonCumulativePreferenceSharesOf1Member |
| 2023-12-31 | End date for OtherSubsidiaries150Million7.125NotesMaturityDatedOct93Member |
| 2023-12-31 | End date for OtherSubsidiaries16Million5.63NotesMember |
| 2023-12-31 | End date for OtherSubsidiaries170MillionFloatingRateNotesMaturityDatedFeb2041Member |
| 2023-12-31 | End date for OtherSubsidiaries31Million7.38NotesMember |
| 2023-12-31 | End date for ShareCapitalSharePremiumAndPaidInEquityMember |
| 2023-12-31 | End date for SharesaveOptionsMember |
| 2023-12-31 | End date for StructuredEntitiesRelatingToOtherCreditRiskTransferSecuritisationMember |
| 2023-12-31 | End date for UkGovernmentInvestmentsLtdMember |
| 2023-12-31 | End date for UsInvestigationsRelatingToFixedIncomeSecuritiesMember |
| 2024-01-01 | Start date for AssociatesAndJointVenturesMember |
| 2024-01-01 | Start date for BonusAwardsMember |
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| 2024-01-01 | Start date for DeferredCashAwardsMember |
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| 2024-01-01 | Start date for IfrsTradingLiabilitiesMember |
| 2024-01-01 | Start date for LegalProceedingInterestRateSwapsAntitrustLitigationMember |
| 2024-01-01 | Start date for LegalProceedingMadoffLitigationMember |
| 2024-01-01 | Start date for LondonInterbankOfferedRateLiborLitigationMember |
| 2024-01-01 | Start date for MainPensionScheme2023TriennialValuationMember |
| 2024-01-01 | Start date for MainSectionOfRoyalBankOfScotlandGroupPensionFundMember |
| 2024-01-01 | Start date for NonDeferredCashAwardsMember |
| 2024-01-01 | Start date for OffMarketShareBuybackProgrammeMember |
| 2024-01-01 | Start date for OffshoringVatAssessmentsMember |
| 2024-01-01 | Start date for OnMarketShareBuybackProgrammeMember |
| 2024-01-01 | Start date for OtherFinancialLiabilitiesMember |
| 2024-01-01 | Start date for PropertyMember |
| 2024-01-01 | Start date for RoyalBankOfScotlandInternationalLimitedMember |
| 2024-01-01 | Start date for ShareCapitalSharePremiumAndPaidInEquityMember |
| 2024-01-01 | Start date for SharesaveOptionsMember |
| 2024-01-01 | Start date for StructuredEntitiesRelatingToOtherCreditRiskTransferSecuritisationMember |
| 2024-01-01 | Start date for SubordinatedLiabilitiesMember |
| 2024-01-01 | Start date for UkGovernmentInvestmentsLtdMember |
| 2024-02-19 | Start date for BuybackProgramme2024Member |
| 2024-05-01 | Start date for OrdinarySharesMember |
| 2024-05-31 | End date for OffMarketShareBuybackProgrammeMember |
| 2024-06-01 | Start date for UkGovernmentInvestmentsLtdMember |
| 2024-06-3 | End date for UkGovernmentInvestmentsLtdMember |
| 2024-07-01 | Start date for DirectorsMember |
| 2024-07-24 | End date for BuybackProgramme2024Member |
| 2024-11-01 | Start date for UkGovernmentInvestmentsLtdMember |
| 2024-11-3 | End date for UkGovernmentInvestmentsLtdMember |
| 2024-11-11 | Start date for OffMarketShareBuybackProgrammeMember |
| 2024-11-11 | End date for OffMarketShareBuybackProgrammeMember |
| 2024-12-31 | End date for AaSectionOfGroupPensionFundMember |
| 2024-12-31 | End date for ActuarialAssumptionOfExpectedRatesOfEquityValueIncreasesMember |
| 2024-12-31 | End date for ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMember |
| 2024-12-31 | End date for ActuarialAssumptionOfExpectedRatesOfInflationMember |
| 2024-12-31 | End date for ActuarialAssumptionOfLongevityDecreaseByOneYearMember |
| 2024-12-31 | End date for ActuarialAssumptionOfLongevityDecreaseByTwoYearsMember |
| 2024-12-31 | End date for ActuarialAssumptionOfLongevityIncreaseByOneYearMember |
| 2024-12-31 | End date for ActuarialAssumptionOfLongevityIncreaseByTwoYearsMember |
| 2024-12-31 | End date for ActuarialAssumptionOfLongevityIncreaseMember |
| 2024-12-31 | End date for ActuarialAssumptionOfLongevityNoChangeMember |
| 2024-12-31 | End date for AllCategoriesOtherThanHeldForTradingMember |
| 2024-12-31 | End date for AssociatesAndJointVenturesMember |
| 2024-12-31 | End date for BusinessGrowthFundAssociateMember |
| 2024-12-31 | End date for ContingentLiabilityMember |
| 2024-12-31 | End date for CreditCardsMember |
| 2024-12-31 | End date for DebtSecuritiesInIssueMember |
| 2024-12-31 | End date for DeferredPerformanceAwardsMember |
| 2024-12-31 | End date for DeferredShareAwardsMember |
| 2024-12-31 | End date for DerivativeAssetsMember |
| 2024-12-31 | End date for DirectorsMember |
| 2024-12-31 | End date for EquitySharesMember |
| 2024-12-31 | End date for FinancialCommitmentsAndGuaranteesMember |
| 2024-12-31 | End date for FinancialCommitmentsMember |
| 2024-12-31 | End date for FinancialGuaranteesAndCommitmentsMember |
| 2024-12-31 | End date for ForeignCountriesMember |
| 2024-12-31 | End date for FreeholdBuildingsAndLongLeaseholdsMember |
| 2024-12-31 | End date for GrossCarryingAmountMember |
| 2024-12-31 | End date for HedgingAssetsMember |
| 2024-12-31 | End date for HedgingLiabilitiesMember |
| 2024-12-31 | End date for HmTreasuryMember |
| 2024-12-31 | End date for IfrsCashAndCashEquivalentsMember |
| 2024-12-31 | End date for IfrsTradingLiabilitiesMember |
| 2024-12-31 | End date for IssuedCapitalAndSharePremiumMember |
| 2024-12-31 | End date for LendingSubjectToPerformanceTriggersMember |
| 2024-12-31 | End date for LongTermIncentiveMember |
| 2024-12-31 | End date for MainPensionScheme2023TriennialValuationMember |
| 2024-12-31 | End date for MainSectionOfRoyalBankOfScotlandGroupPensionFundMember |
| 2024-12-31 | End date for MaturingFinancialAssetsMember |
| 2024-12-31 | End date for MaturingFinancialLiabilitiesMember |
| 2024-12-31 | End date for MinimumRequirementForOwnFundsAndEligibleLiabilitiesMember |
| 2024-12-31 | End date for MiscellaneousOtherProvisionMember |
| 2024-12-31 | End date for NatwestGroupPlcMember |
| 2024-12-31 | End date for NatwestGroupSCapitalResourcesUnderPrudentialRegulationAuthorityRequirementsMember |
| 2024-12-31 | End date for NatwestMarketNVMember |
| 2024-12-31 | End date for NonDeferredCashAwardsMember |
| 2024-12-31 | End date for NonTradingRepurchaseReverseRepurchaseAgreementsMember |
| 2024-12-31 | End date for NotesInCirculationMember |
| 2024-12-31 | End date for OffshoringVatAssessmentsMember |
| 2024-12-31 | End date for OnMarketShareBuybackProgrammeMember |
| 2024-12-31 | End date for OtherFinancialLiabilitiesMember |
| 2024-12-31 | End date for OtherSubsidiaries140MillionNonCumulativePreferenceSharesOf1Member |
| 2024-12-31 | End date for OtherSubsidiaries150Million7.125NotesMaturityDatedOct93Member |
| 2024-12-31 | End date for OtherSubsidiaries16Million5.63NotesMember |
| 2024-12-31 | End date for OtherSubsidiaries170MillionFloatingRateNotesMaturityDatedFeb2041Member |
| 2024-12-31 | End date for OtherSubsidiaries31Million7.38NotesMember |
| 2024-12-31 | End date for PropertyMember |
| 2024-12-31 |
Keywords
NatWest Group, financial performance, CET1 ratio, RoTE, climate finance, sustainability, risk management, regulatory capital, customer deposits, net lending
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