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

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Did Natwest Group beat or miss consensus estimates last quarter?

- **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.

NatWest Group plc (NWG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NWG

NWG fundamentals

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