What is the revenue and EPS growth rate for Natwest Group year over year?

What were the key takeaways from Natwest Group's earnings call?

What were the key takeaways from Natwest Group’s earnings call?

What does Natwest Group do and what are its main business segments?

What factors drove the changes in Natwest Group's revenue and profit?

What is Natwest Group's gross profit margin?

What is the market's earnings forecast for Natwest Group next quarter?

What is Natwest Group's latest dividend and current dividend yield?

- **Revenue Growth**: Lending up 4.4% to GBP 388 billion, driven by mortgage (GBP 5 billion), unsecured (GBP 2.9 billion), and commercial (GBP 7.9 billion) segments.
- **Financial Strength**: Q3 income up 3.9%, CET1 ratio at 14.2%, and 202 bps capital generation year-to-date.
- **Strategic Focus**: AI investment, platform simplification (24 Retail platforms decommissioned), and 70,000 new customers.
- **Updated Guidance**: Full-year income to GBP 16.3 billion, RoTE >18%, and one rate cut expected to 3.75%.

**【CEO Summary Section】**
- Delivered strong Q3 performance with broad-based lending growth of 4.4% year-to-date to GBP 388 billion, driven by mortgage, unsecured, and commercial lending.
- Emphasized disciplined growth strategy, including 70,000 new customers and GBP 5 billion in mortgage lending for first-time buyers.
- Updated full-year guidance: Income to GBP 16.3 billion, return on tangible equity >18%, and cost/income ratio target of 47.8%.
- Highlighted AI investment and simplification initiatives, including 24 platform decommissions in Retail.

**【CFO Financial Commentary】**
- Q3 income grew 3.9% to GBP 4.2 billion, with net interest income up 3% and noninterest income stable despite notable items.
- Operating expenses down 2.1% to GBP 2 billion, driven by lower litigation costs and cost control.
- CET1 ratio improved to 14.2%, generating 101 basis points of capital in Q3 and 202 bps year-to-date.
- Full-year outlook: Income guidance raised to GBP 16.3 billion, with one expected rate cut to 3.75% by year-end.
- Structural hedge contributed 20 basis points to NIM, with no plans to extend duration beyond current 2.5-year average.

**【Q&A Highlights】**
- **Deposit Strategy**: Fixed-term outflows due to large maturities, but 80-85% retention rates; focus on balancing value and volume with 88% LDR.
- **Noninterest Income Momentum**: Strong performance in cards, currencies, and asset management; 14.5% AUM growth to GBP 56 billion.
- **Cost Management**: 5% cost/income ratio improvement year-to-date; confident in maintaining 47.8% target despite inflation.
- **Capital Allocation**: GBP 750 million buyback (50% completed); CET1 target range of 13-14% with flexibility for M&A or growth.
- **2026 Outlook**: Income growth driven by lending, fee income, and hedge; cautious on noninterest income normalization.
- **Long-Term Targets**: 2028 guidance to be shared in February, focusing on operating leverage and capital efficiency.

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