NatWest Announces Strong 1H Results with 8% Increase in Total Income and CET1 Ratio of 11.3%

NatWest reported a profit of £1,854 million for 1H, up from £5,863 million in H1 2024. Total income increased by £497 million, or 8%, to £6,360 million. The CET1 ratio for NWB Plc was 11.3%.

NatWest (NYSE:NWG) has reported a robust first-half performance for the period ended 30 June 2025, with an attributable profit of £1,854 million, up from £1,719 million in the same period last year. This represents an 8% increase in total income to £6,360 million, compared to £5,863 million in H1 2024. The Common Equity Tier 1 (CET1) ratio for NWB Plc stood at 11.3% [1].

The bank's net interest income surged by £602 million, or 15%, to £4,543 million, driven by deposit margin expansion, balance sheet growth, and higher structural hedge income. Net loans to customers increased by £4.2 billion to £336.2 billion, with personal loans and credit card balances acquired from Sainsbury's Bank contributing £2.2 billion at 30 June 2025. Customer deposits also increased by £1.6 billion to £319.9 billion, including savings balances from Sainsbury's Bank [2].

Operating expenses remained broadly stable at £3,449 million, with a cost:income ratio of 54.2%, a decrease from 59.0% in H1 2024. An impairment loss of £351 million was recorded, up from £47 million in the previous period, primarily due to an £81 million charge on the acquisition of balances from Sainsbury's Bank. The loan:deposit ratio decreased to 97%, reflecting an increase in customer lending and bank deposits [2].

NatWest's retail banking segment reported an operating profit of £1,251 million, up from £1,015 million in H1 2024, driven by a £398 million increase in net interest income. The private banking and wealth management segment saw a profit of £201 million, compared to £139 million in H1 2024, while the commercial and institutional segment reported an operating profit of £1,205 million, up from £1,116 million in the previous year [2].

The bank's risk-weighted assets (RWAs) increased by £6.2 billion to £130.7 billion, reflecting lending growth and the acquisition of balances from Sainsbury's Bank. The CET1 ratio decreased by 10 basis points to 11.3%, reflecting the increase in RWAs, a foreseeable ordinary dividend of £1.4 billion, and other movements on reserves and regulatory adjustments [2].

Overall, NatWest's strong performance in the first half of 2025 demonstrates resilience in the stagnant UK economy, with a focus on deposit margin expansion and balance sheet growth. However, the bank continues to face risks, including the impact of base rate cuts and the potential for higher loan impairment charges [3].

References:
[1] https://seekingalpha.com/news/4472000-natwest-reports-1h-results
[2] https://www.investegate.co.uk/announcement/rns/national-westminster-bank-plc--72oh/natwest-bank-plc-interim-results-2025/8999867