# EDGAR Filing Document

**Accession Number:** 0000844150
**File Stem:** 0001654954-25-008491
**Filing Date:** 2025-7
**Character Count:** 253600
**Document Hash:** 3c62e52561d8d907b9fbdd776922d48a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-25-008491.hdr.sgml**: 20250725

**ACCESSION NUMBER**: 0001654954-25-008491

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20250725

**FILED AS OF DATE**: 20250725

**DATE AS OF CHANGE**: 20250725

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NatWest Group plc
- **CENTRAL INDEX KEY:** 0000844150
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** X0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-10306
- **FILM NUMBER:** 251150095

**BUSINESS ADDRESS:**
- **STREET 1:** GOGARBURN
- **STREET 2:** PO BOX 1000
- **CITY:** EDINBURGH, SCOTLAND
- **STATE:** X0
- **ZIP:** EH12 1HQ
- **BUSINESS PHONE:** 441315568555

**MAIL ADDRESS:**
- **STREET 1:** GOGARBURN
- **STREET 2:** PO BOX 1000
- **CITY:** EDINBURGH, SCOTLAND
- **STATE:** X0
- **ZIP:** EH12 1HQ

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ROYAL BANK OF SCOTLAND GROUP PLC
- **DATE OF NAME CHANGE:** 19950712

**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, 2025**

 **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:

 **Inside this report**

---

| | |
|:---|:---|
| **Business performance summary** | **Business performance summary** |
| **2** | H1 2025 performance summary |
| **3** | Performance key metrics and ratios |
| **5** | Chief Financial Officer's review |
| **7** | Retail Banking |
| **8** | Private Banking & Wealth Management |
| **9** | Commercial & Institutional |
| **10** | Central items & other |
| **11** | Segment performance |
| **Risk and capital management** | **Risk and capital management** |
| **16** | Credit risk |
| **16** | Economic loss drivers |
| **20** | Governance and post model adjustments |
| **22** | Measurement uncertainty and ECLsensitivity analysis |
| **24** | Measurement uncertainty and ECLadequacy |
| **25** | Credit risk - Banking activities |
| **25** | Financial instruments within the scope of theIFRS 9 ECL framework |
| **26** | Segment analysis - portfolio summary |
| **28** | Segmental loans and impairment metrics |
| **29** | Sector analysis - portfolio summary |
| **34** | Non-Personal forbearance |
| **36** | Personal portfolio |
| **39** | Commercial real estate |
| **40** | Flow statements |

---

---

| | |
|:---|:---|
| **Risk and capital management continued** | **Risk and capital management continued** |
| **47** | Stage 2 decomposition by a significantincrease in credit risk trigger |
| **49** | Asset quality |
| **53** | Credit risk - Trading activities |
| **56** | Capital, liquidity and funding risk |
| **67** | Non-traded market risk |
| **71** | Traded market risk |
| **71** | Pension risk |
| **Financial statements and notes** | **Financial statements and notes** |
| **72** | Condensed consolidated income statement  |
| **73** | Condensed consolidated statement ofcomprehensive income |
| **74** | Condensed consolidated balance sheet |
| **75** | Condensed consolidated statement ofchanges in equity |
| **77** | Condensed consolidated cash flow statement |
| **78** | Presentation of condensed consolidatedfinancial statements |
| **78** | Net interest income |
| **79** | Non-interest income |
| **80** | Operating expenses |
| **81** | Segmental analysis |
| **84** | Tax |
| **85** | Financial instruments - classification |
| **87** | Financial instruments - valuation |

---

---

| | |
|:---|:---|
| **Financial statements and notes continued** | **Financial statements and notes continued** |
| **92** | Trading assets and liabilities |
| **93** | Loan impairment provisions |
| **94** | Provisions for liabilities and charges |
| **94** | Dividends |
| **94** | Contingent liabilities and commitments |
| **95** | Litigation and regulatory matters |
| **101** | Related party transactions |
| **101** | Post balance sheet events |
| **101** | Date of approval |
| **102** | Auditor's independent review report to NatWest Group plcGroup plc |
| **Additional information** | **Additional information** |
| **103** | NatWest Group plc summary risk factors  |
| **105** | Statement of directors' responsibilities |
| **106** | Presentation of information |
| **106** | Statutory accounts |
| **106** | Forward-looking statements |
| **107** | Share information and contacts |
| **108** | Appendix |
| **108** | Non-IFRS financial measures |
| **113** | Performance measures not definedunder IFRS |

---

 **H1 2025 performance summary**

 **Chief Executive, Paul Thwaite, commented:**

"NatWest Group's strong performance in the first half of the year reflects our consistent support for our customers and, in turn, delivery for our shareholders. We have today upgraded our income and returns guidance for 2025, as well as announcing a 9.5p interim dividend and a £750 million share buyback.

The role we play as a trusted partner to over 20 million customers is fundamental to our strategy and we continue to focus on helping them achieve their ambitions, with lending, deposits and assets under management once again increasing in H1 2025. With positive momentum in our business, we are ambitious for the future and see clear opportunities for further disciplined growth. This is complemented by our focus on bank-wide simplification, as we quietly revolutionise how we operate, enhancing our tech and AI capabilities in order to better meet and anticipate the evolving needs of our customers.

Having returned to full private ownership in Q2 2025, NatWest Group is well placed to step up and play its part in supporting economic growth across the UK and, in doing so, to create sustainable value for all our stakeholders."

 **H1 2025 performance**

We have delivered a strong H1 2025 performance with continued balance sheet growth, an attributable profit of £2.5 billion, with earnings per share of 30.9 pence, up 28% on prior year, a Return on Tangible Equity (RoTE) of 18.1% and a cost:income ratio (excl. litigation and conduct) of 48.8%, compared with 55.5% in the prior year.

This drove strong capital generation pre-distributions of 101 basis points which allows us to announce an interim dividend of 9.5 pence per share, 58% higher than the prior year, and we intend to commence a share buyback programme of £750 million in the second half of 2025.

-

We continue to be disciplined in our approach to growth, deploying capital where returns are attractive. We are pleased to have added 1.1 million new customers in the first half of 2025, both organically and through the Sainsbury's Bank transaction which completed on 1 May 2025. In the first half of 2025 we delivered broad-based balance sheet growth, with net loans to customers excluding central items up by £11.6 billion, including £2.2 billion of balances acquired from Sainsbury's Bank as we added scale to our unsecured business. Customer deposits excluding central items increased by £4.5 billion, including £2.4 billion of balances acquired from Sainsbury's Bank.

-

We are making good progress on becoming a simpler bank, delivering efficiencies from our investment programmes as seen in the 6.7 percentage point improvement in our cost:income (excl. litigation and conduct) ratio, compared with the prior year. We are digitising more customer journeys and deploying AI to improve our productivity and customer experience which is reflected in our improved NPS scores across all three businesses. We announced new collaborations with OpenAI, AWS and Accenture to accelerate our data simplification and enable greater personalisation for our customers.

-<br>

We continue to actively manage our balance sheet and risk, delivering £2.9 billion of RWA management actions as we created capacity for growth. Our Common Equity Tier 1 (CET1) ratio of 13.6% was in line with Q4 2024 and c.20 basis points lower than Q1 2025. TNAV per share in H1 2025 increased by 22 pence to 351 pence.

 **Outlook<sup>(1)</sup>**

The following statements are based on our current expectations for interest rates and economic conditions. We will monitor and react to market conditions and refine our internal forecasts as the economic position evolves.

We have strengthened our guidance and in 2025 we expect:

-

to achieve a Return on Tangible Equity of greater than 16.5%.

-

income excluding notable items to be greater than £16.0 billion.

-

Group operating costs, excluding litigation and conduct costs, to be around £8.1 billion including £0.1 billion of one-time integration costs.

-

our loan impairment rate to be below 20 basis points.

-

RWAs to be in the range of £190-195 billion at the end of 2025, dependent on final CRD IV model outcomes.

In 2027 we continue to expect:

-

to achieve a Return on Tangible Equity for the Group of greater than 15%.

Capital:

-

we continue to target a CET1 ratio in the range of 13-14%.

-

we expect to pay ordinary dividends of around 50% of attributable profit from 2025 and will consider buybacks as appropriate.

(1) The guidance, targets, expectations and trends discussed in this section represent NatWest Group plc management's current expectations and are subject to change, including as a result of the factors described in the NatWest Group plc Risk Factors in the 2024 Annual Report and Accounts and Form 20-F and the Summary Risk Factors in this announcement. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement.

 **Business performance summary**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Half year ended** | **Quarter ended** | **Quarter ended** | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **30 June** | 30 June |  | **30 June** | 31 March |  | 30 June |  |
|  | **2025** | 2024 | Variance | **2025** | 2025 | Variance | 2024 | Variance |
| **Summary consolidated income statement** | **£m** | £m | % | **£m** | £m | % | £m | % |
| Net interest income | **6120** | 5408 | 13.2% | **3094** | 3026 | 2.2% | 2757 | 12.2% |
| Non-interest income | **1865** | 1726 | 8.1% | **911** | 954 | (4.5%) | 902 | 1.0% |
| **Total income** | **7985** | 7134 | 11.9% | **4005** | 3980 | 0.6% | 3659 | 9.5% |
| Litigation and conduct costs | **(118)** | (101) | 16.8% | **(74)** | (44) | 68.2% | (77) | (3.9%) |
| Other operating expenses | **(3900)** | (3956) | (1.4%) | **(1965)** | (1935) | 1.6% | (1928) | 1.9% |
| **Operating expenses** | **(4018)** | (4057) | (1.0%) | **(2039)** | (1979) | 3.0% | (2005) | 1.7% |
| **Profit before impairment losses/releases** | **3967** | 3077 | 28.9% | **1966** | 2001 | (1.7%) | 1654 | 18.9% |
| Impairment (losses)/releases | **(382)** | (48) | nm | **(193)** | (189) | 2.1% | 45 | nm |
| **Operating profit before tax** | **3585** | 3029 | 18.4% | **1773** | 1812 | (2.2%) | 1699 | 4.4% |
| Tax charge | **(910)** | (801) | 13.6% | **(439)** | (471) | (6.8%) | (462) | (5.0%) |
| **Profit from continuing operations** | **2675** | 2228 | 20.1% | **1334** | 1341 | (0.5%) | 1237 | 7.8% |
| **Profit from discontinued operations, net of tax** | **-** | 11 | nm | **-** | - | nm | 15 | nm |
| **Profit for the period** | **2675** | 2239 | 19.5% | **1334** | 1341 | (0.5%) | 1252 | 6.5% |
| **Performance key metrics and ratios** |  |  |  |  |  |  |  |  |
| Notable items within total income (1) | **£23m** | £130m | nm | **(£5m)** | £28m | nm | £69m | nm |
| Total income excluding notable items (1) | **£7,962m** | £7,004m | 13.7% | **£4,010m** | £3,952m | 1.5% | £3,590m | 11.7% |
| Net interest margin (1) | **2.28%** | 2.07% | 21bps | **2.28%** | 2.27% | 1bp | 2.10% | 18bps |
| Average interest earning assets (1) | **£542bn** | £524bn | 3.4% | **£543bn** | £542bn | 0.2% | £528bn | 2.8% |
| Cost:income ratio (excl. litigation and conduct) (1) | **48.8%** | 55.5% | (6.7%) | **49.1%** | 48.6% | 0.5% | 52.7% | (3.6%) |
| Loan impairment rate (1) | **19bps** | 3bps | 16bps | **19bps** | 19bps | - | (5bps) | 24bps |
| Profit attributable to ordinary shareholders | **£2,488m** | £2,099m | 18.5% | **£1,236m** | £1,252m | (1.3%) | £1,181m | 4.7% |
| Total earnings per share attributable to ordinary shareholders - basic  | **30.9p** | 24.2p | 6.7p | **15.3p** | 15.5p | (0.2p) | 13.7p | 1.6p |
| Return on Tangible Equity (RoTE) (1) | **18.1%** | 16.4% | 1.7% | **17.7%** | 18.5% | (0.8%) | 18.5% | (0.8%) |
| Climate and sustainable funding and financing (2) | **£16.9bn** | £16.3bn | 3.7% | **£9.1bn** | £7.8bn | 16.7% | £9.7bn | (6.2%) |

---

nm = not meaningful.

For the footnotes to this table refer to the following page

Business performance summary continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As at** | **As at** | **As at** | **As at** | **As at** |
|  | **30 June** | 31 March |  | 31 December |  |
|  | **2025** | 2025 | Variance | 2024 | Variance |
| **Balance sheet** | **£bn** | £bn | % | £bn | % |
| Total assets | **730.8** | 710.0 | 2.9% | 708.0 | 3.2% |
| Loans to customers - amortised cost | **407.1** | 398.8 | 2.1% | 400.3 | 1.7% |
| Loans to customers excluding central items (13) | **380.1** | 371.9 | 2.2% | 368.5 | 3.1% |
| Loans to customers and banks - amortised cost and FVOCI  | **417.9** | 409.5 | 2.1% | 410.2 | 1.9% |
| Total impairment provisions (4) | **3.7** | 3.5 | 5.7% | 3.4 | 8.8% |
| Expected credit loss (ECL) coverage ratio  | **0.87%** | 0.86% | 1bp | 0.83% | 4bps |
| Assets under management and administration (AUMA) (1) | **51.8** | 48.5 | 6.8% | 48.9 | 5.9% |
| Customer deposits | **436.8** | 434.6 | 0.5% | 433.5 | 0.8% |
| Customer deposits excluding central items (13) | **435.8** | 433.4 | 0.6% | 431.3 | 1.0% |
| **Liquidity and funding** |  |  |  |  |  |
| Liquidity Coverage Ratio (LCR) | **147%** | 150% | (3.0%) | 150% | (3.0%) |
| Liquidity portfolio | **217** | 222 | (2.3%) | 222 | (2.3%) |
| Net Stable Funding Ratio (NSFR) | **134%** | 136% | (2.0%) | 137% | (3.0%) |
| Loan:deposit ratio (excl. repos and reverse repos) (1) | **86%** | 85% | 1% | 85% | 1% |
| Total wholesale funding | **91** | 87 | 4.6% | 86 | 5.8% |
| Short-term wholesale funding | **35** | 33 | 6.1% | 33 | 6.1% |
| **Capital and leverage** |  |  |  |  |  |
| Common Equity Tier 1 (CET1) ratio (5) | **13.6%** | 13.8% | (20bps) | 13.6% | - |
| Total capital ratio (5) | **19.7%** | 20.6% | (90bps) | 19.7% | - |
| Pro forma CET1 ratio (excl. foreseeable items) (6) | **14.6%** | 14.8% | (20bps) | 14.3% | 30bps |
| Risk-weighted assets (RWAs) | **190.1** | 187.0 | 1.7% | 183.2 | 3.8% |
| UK leverage ratio | **5.0%** | 5.2% | (0.2%) | 5.0% | - |
| Tangible net asset value (TNAV) per ordinary share (17) | **351p** | 347p | 4p | 329p | 22p |
| Number of ordinary shares in issue (millions) (7) | **8088** | 8067 | 0.3% | 8043 | 0.6% |

---

(1) Refer to the Non-IFRS financial
measures appendix for details of the basis of preparation and
reconciliation of non-IFRS financial measures and performance
metrics.

(2) NatWest Group used its climate
and sustainable funding and financing inclusion (CSFFI) criteria to
determine the assets, activities and companies that are eligible to
be included within its target to provide £100 billion in
climate and sustainable funding and financing between 1 July 2021
and the end of 2025. This included both provision of committed (on
and off-balance sheet) funding and financing, including provision
of services for underwriting issuances and private placements. The
climate and sustainable funding and financing framework which
underpinned our £100 billion target has been retired and
replaced with our climate and transition finance framework,
available on natwestgroup.com.

(3) Central items includes Treasury
repo activity.

(4) Includes £0.1 billion
relating to off-balance sheet exposures (31 March 2025 - £0.1
billion; 31 December 2024 - £0.1 billion).

(5) Refer to the Capital, liquidity
and funding risk section for details of the basis of
preparation.

(6) The
pro forma CET1 ratio at 30 June 2025 excludes foreseeable items of
£1,994 million: £1,244 million for ordinary dividends and
£750 million foreseeable charges (31 March 2025 excludes
foreseeable items of £1,875 million for ordinary dividends; 31
December 2024 excludes foreseeable items of £1,249 million for
ordinary dividends).

(7) The
number of ordinary shares in issue excludes own shares
held.

 **Chief Financial Officer's review**

We delivered a strong performance in the first half of 2025, with operating profit of £3,585 million and a RoTE of 18.1%.

In the first half of 2025 we supported our customers and delivered broad-based balance sheet growth, with net loans to customers excluding central items up by £11.6 billion and customer deposits excluding central items increasing by £4.5 billion, contributing to growth in total income excluding notable items, up by 13.7% on H1 2024 and 1.5% on Q1 2025. Cost:income ratio (excl. litigation and conduct) was 48.8% in H1 2025 compared with 55.5% in H1 2024 as we continued to simplify the business.

Our CET1 ratio remains within our targeted range at 13.6% and we announce an interim dividend of 9.5 pence per share and intend to commence a share buyback programme of £750 million in the second half of 2025, bringing total distributions announced in H1 2025 to £1.5 billion. We continued to actively manage the balance sheet, delivering RWA management actions of £2.9 billion in H1 2025 which created capacity for growth.

 **Strong H1 and Q2 2025 performance**

-

Total income increased by 0.6% in Q2 2025 compared with Q1 2025 and was 11.9% higher in H1 2025 than H1 2024. Total income excluding notable items was £58 million higher in Q2 2025 than Q1 2025 due to disciplined balance sheet growth, deposit margin expansion and the benefit of one additional day in the quarter. As a result, Q2 2025 NIM of 2.28% was 1 basis point higher than Q1 2025. H1 2025 total income excluding notable items was 13.7% higher than H1 2024 as balance growth, higher structural hedge income and increased trading income were partly offset by the impact of base rate cuts and changes in the mix of our customer deposits.

-

Q2 2025 total operating expenses were £60 million higher than Q1 2025 and H1 2025 was £39 million lower than H1 2024. In Q2 2025, other operating expenses were £30 million higher than Q1 2025 primarily reflecting property exit costs as a result of transformation and digitisation, a £19 million increase in one-time integration costs following the acquisition of balances from Sainsbury's Bank and pay inflation and increased National Insurance charges. H1 2025 other operating expenses were £56 million lower than the prior year as we continue to make good progress on becoming a simpler bank, including ongoing digitisation of Retail Banking, costs relating to the strategic exit from Poland in H1 2024, contract efficiencies through the use of strategic partners, and our withdrawal from the Republic of Ireland. Headcount reduced by around 1,400 FTE compared with H1 2024 and was broadly stable compared with H2 2024.

-

A net impairment charge of £193 million, or 19 basis points of gross customer loans, in Q2 2025 included an £81 million charge on the acquisition of balances from Sainsbury's Bank and post model adjustment releases of £64 million. Compared with Q1 2025, our ECL provision increased by £0.1 billion to £3.7 billion and our ECL coverage ratio has increased from 0.86% to 0.87%.

-

We have reviewed and updated our macro-economic assumptions, with limited changes compared with our previous assumptions, and we retain post model adjustments of £0.2 billion related to economic uncertainty, or 6.4% of total impairment provisions. We remain comfortable with the strong credit performance of our diversified prime loan book.

-

As a result, we are pleased to report an attributable profit for H1 2025 of £2,488 million, with earnings per share of 30.9 pence and a RoTE of 18.1%. Q2 2025 RoTE was 17.7%.

 **Robust balance sheet with strong capital and liquidity levels**

-

We continued to support our customers with net loans to customers excluding central items growth of £11.6 billion in the first half of 2025 and £8.2 billion in Q2 2025, which included £2.2 billion of balances acquired from Sainsbury's Bank. The remaining £6.0 billion growth in Q2 2025 was disciplined and well balanced across our portfolio, including an increase in Commercial Mid-market, reflecting higher lending to housebuilders and housing associations, and Corporate & Institutions, largely in funds lending. Retail Banking mortgage balances increased by £1.4 billion in Q2 2025.

-

Between 1 July 2021 and the 30 June 2025 we provided £110.3 billion in climate and sustainable funding and financing and during Q1 2025 we exceeded our target to provide £100 billion between 1 July 2021 and the end of 2025. To reflect our progress, we have announced a new target to provide £200 billion in climate and transition finance between 1 July 2025 and the end of 2030. As part of this we will continue to monitor progress against our aim to provide £10 billion in lending for EPC A and B-rated residential properties between 1 January 2023 and the end of 2025, with £9.6 billion lent up to 30 June 2025. The climate and sustainable funding and financing framework which underpinned our previous £100 billion target has been retired and replaced with our climate and transition finance framework, available on natwestgroup.com.

-

Customer deposits excluding central items increased £4.5 billion in H1 2025 and £2.4 billion in Q2 2025, which included £2.4 billion of balances acquired from Sainsbury's Bank and growth within Corporate & Institutions partially offset by lower current account balances in Retail Banking. Term balances remained broadly stable for the second quarter at 17% of the book, up from 16% at Q1 2025.

-

The LCR of 147%, representing £51.7 billion headroom above 100% minimum requirement, decreased by 3 percentage points compared with Q1 2025 primarily due to increased lending (including balances acquired from Sainsbury's Bank) partially offset by issuances. Our primary liquidity at Q2 2025 was £160.6 billion and £86.6 billion, or 54%, of which was cash and balances at central banks. Total wholesale funding increased by £3.5 billion in the quarter to £90.8 billion.

-

TNAV per share increased by 4 pence in the quarter to 351 pence primarily reflecting the profit for the period.

Chief Financial Officer's review continued

 **Shareholder return supported strong capital generation**

-

The CET1 ratio of 13.6% was c.20 basis points lower than Q1 2025 principally reflecting the increase in RWAs, c.20 basis points, the ordinary dividend accrual, c.30 basis points, and share buybacks, c.40 basis points, partially offset by the attributable profit for the quarter, c.70 basis points.

-

RWAs increased by £6.9 billion in the first half of 2025 to £190.1 billion and £3.1 billion in Q2 2025 largely reflecting lending growth, an increase for CRD IV models and £1.6 billion in relation to the balances acquired from Sainsbury's Bank partially offset by another strong quarter of RWA management actions, £1.7 billion, as we continued to actively manage the balance sheet creating capacity for growth.

 **Business performance summary**

Retail Banking

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **30 June**<br>**2025**<br>**£m** | 30 June<br>2024<br>£m | **30 June**<br>**2025**<br>**£m** | 31 March<br>2025<br>£m | 30 June<br>2024<br>£m |
| Total income | **3134** | 2690 | **1594** | 1540 | 1365 |
| Operating expenses | **(1423)** | (1470) | **(742)** | (681) | (697) |
| *of which: Other operating expenses* |  ***(1411)*** | *(1457)* |  ***(734)*** | *(677)* | *(690)* |
| Impairment losses | **(226)** | (122) | **(117)** | (109) | (59) |
| Operating profit | **1485** | 1098 | **735** | 750 | 609 |
| Return on equity (1) | **23.8%** | 18.4% | **23.2%** | 24.5% | 20.3% |
| Net interest margin (1) | **2.58%** | 2.26% | **2.59%** | 2.58% | 2.31% |
| Cost:income ratio |  |  |  |  |  |
| (excl. litigation and conduct) (1) | **45.0%** | 54.2% | **46.0%** | 44.0% | 50.5% |
| Loan impairment rate (1) | **21bps** | 12bps | **22bps** | 21bps | 12bps |
|  |  |  | **As at** | **As at** | **As at** |
|  |  |  | **30 June** | 31 March | 31 December |
|  |  |  | **2025** | 2025 | 2024 |
|  |  |  | **£bn** | £bn | £bn |
| Net loans to customers (amortised cost) |  |  | **214.3** | 210.4 | 208.4 |
| Customer deposits |  |  | **196.6** | 195.7 | 194.8 |
| RWAs |  |  | **69.4** | 66.8 | 65.5 |

---

(1) Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

During H1 2025, Retail Banking delivered a return on equity of 23.8% and an operating profit of £1,485 million, with continued positive income and net interest margin momentum. We have supported sectors that are vital to the health and success of the UK economy, including the housing market, with increased net mortgage lending in H1 2025 of £3.4 billion. We welcomed an additional 1 million customers from balances acquired from Sainsbury's Bank in the quarter and have continued to improve our customer proposition, including the launch of our family-backed mortgages.

Retail Banking provided £2.1 billion of climate and sustainable funding and financing in H1 2025 from lending on properties with an EPC rating of A or B.

 **H1 2025 performance**

-

Total income was £444 million, or 16.5%, higher than H1 2024 reflecting deposit balance growth and deposit margin expansion, coupled with the benefit of balances acquired from Sainsbury's Bank adding £21 million of income, partly offset by the impact of base rate cuts and the mix shift from non-interest bearing to interest bearing balances.

-

Net interest margin was 32 basis points higher than H1 2024 largely reflecting the factors noted above.

-

Other operating expenses were £46 million, or 3.2%, lower than H1 2024 reflecting lower severance and property exit costs and a 6.3% reduction in headcount. This was partially offset by the impact of costs associated with the acquisition of balances from Sainsbury's Bank and timing of FCA regulatory fees.

-

An impairment charge of £226 million, compared with a £122 million charge in H1 2024, largely driven by the impact of balances acquired from Sainsbury's Bank.

-

Net loans to customers increased by £5.9 billion, or 2.8%, in H1 2025 driven by £3.4 billion higher mortgage balances. Personal advances increased by £1.4 billion, or 17.3% and credit card balances increased £1.3 billion, or 18.6% in H1 2025, reflecting the impact of balances acquired from Sainsbury's Bank and underlying credit card growth.

-

Customer deposits increased by £1.8 billion, or 0.9%, in H1 2025, driven by overall personal market growth, and £2.4 billion of savings balances acquired from Sainsbury's Bank, partly offset by seasonal tax payments.

-

RWAs increased by £3.9 billion, or 6.0%, in H1 2025 primarily due to the impact of balances acquired from Sainsbury's Bank, the annual update to operational risk, model updates and book movements.

 **Q2 2025 performance**

-

Total income was £54 million or 3.5% higher than Q1 2025 reflecting the impact of balances acquired from Sainsbury's Bank, deposit margin expansion, and the impact of one additional day in the quarter.

-

Net interest margin was 1 basis point higher than Q1 2025 largely reflecting the factors noted above, offset by the flow through impact of new mortgage lending in Q1 2025, ahead of the increase in Stamp Duty Land Tax on 1 April 2025.

-

Other operating expenses were £57 million, or 8.4%, higher than Q1 2025 reflecting the impact of costs associated with the acquisition of balances from Sainsbury's Bank, FCA regulatory fees, pay award and National Insurance increase, and higher property exit costs, partly offset by the non-repeat of the Q1 2025 Bank of England levy.

-

An impairment charge of £117 million, compared with a £109 million charge in Q1 2025, including £81 million impact of balances acquired from Sainsbury's Bank offset by modelling related releases.

-

Net loans to customers increased by £3.9 billion, or 1.9%, in Q2 2025. Personal advances increased £1.3 billion, or 15.9%, including £1.2 billion of balances acquired from Sainsbury's Bank, whilst credit cards increased £1.3 billion or 18.6%, including £1.0 billion of balances acquired from Sainsbury's Bank. Mortgages increased by £1.4 billion in the quarter.

-

Customer deposits increased by £0.9 billion, or 0.5%, in Q2 2025 reflecting £2.4 billion of savings balances acquired from Sainsbury's Bank, partly offset by lower current account balances.

-

RWAs increased by £2.6 billion, or 3.9%, in Q2 2025 primarily due to the impact of balances acquired from Sainsbury's Bank, model updates and book movements.

Business performance summary continued

Private Banking & Wealth Management<sup>(1)</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **30 June**<br>**2025**<br>**£m** | 30 June<br>2024<br>£m | **30 June**<br>**2025**<br>**£m** | 31 March<br>2025<br>£m | 30 June<br>2024<br>£m |
| Total income | **539** | 444 | **274** | 265 | 236 |
| *of which: AUMA income* (2) |  ***144*** | *130* |  ***72*** | *72* | *68* |
| Operating expenses | **(359)** | (356) | **(172)** | (187) | (175) |
| *of which: Other operating expenses* |  ***(358)*** | *(355)* |  ***(171)*** | *(187)* | *(175)* |
| Impairment (losses)/releases | **(1)** | 11 | **-** | (1) | 5 |
| Operating profit | **179** | 99 | **102** | 77 | 66 |
| Return on equity (2) | **19.8%** | 10.5% | **22.5%** | 17.1% | 14.4% |
| Net interest margin (2) | **2.57%** | 2.18% | **2.56%** | 2.59% | 2.30% |
| Cost:income ratio  |  |  |  |  |  |
| (excl. litigation and conduct) (2) | **66.4%** | 80.0% | **62.4%** | 70.6% | 74.2% |
| Loan impairment rate (2) | **1bp** | (12bps) | **-** | 2bps | (11bps) |
| AUMA net flows (£bn) (2) | **2.1** | 1.3 | **1.3** | 0.8 | 1.0 |
|  |  |  | **As at** | **As at** | **As at** |
|  |  |  | **30 June** | 31 March | 31 December |
|  |  |  | **2025** | 2025 | 2024 |
|  |  |  | **£bn** | £bn | £bn |
| Net loans to customers (amortised cost) |  |  | **18.6** | 18.4 | 18.2 |
| Customer deposits |  |  | **41.3** | 41.2 | 42.4 |
| Assets under management (AUM) (2) |  |  | **39.0** | 36.7 | 37.0 |
| Assets under administration (AUA) (2) |  |  | **12.8** | 11.8 | 11.9 |
| Total assets under management and administration (AUMA) (2) | Total assets under management and administration (AUMA) (2) | Total assets under management and administration (AUMA) (2) | **51.8** | 48.5 | 48.9 |
| Total combined assets and liabilities (CAL) (23) | Total combined assets and liabilities (CAL) (23) | Total combined assets and liabilities (CAL) (23) | **110.4** | 106.9 | 108.4 |
| RWAs |  |  | **11.5** | 11.3 | 11.0 |

---

(1) Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group.

(2) Refer to the Non-IFRS financial measures appendix for details of basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

(3) CAL refers to customer deposits, net loans to customers and AUMA. To avoid double counting, investment cash is deducted as it is reported within customer deposits and AUMA.

During H1 2025, Private Banking & Wealth Management continued to deliver a strong performance with an operating profit of £179 million, return on equity of 19.8% and cost:income ratio of 66.4%. We have seen growth across AUMAs, lending and deposits in the quarter. In response to client demand, we have introduced digital auto-renewal functionality for fixed-term deposits within the Coutts app, enabling clients optionality and convenience.

Private Banking & Wealth Management provided £0.2 billion of climate and sustainable funding and financing in H1 2025, principally in relation to mortgages on residential properties with an EPC rating of A or B and wholesale transactions.

 **H1 2025 performance**

-

Total income was £95 million, or 21.4%, higher than H1 2024 primarily reflecting balance growth across deposits, lending and AUMA, and deposit margin expansion.

-

Net interest margin was 39 basis points higher than H1 2024 largely reflecting deposit margin expansion and growth across lending and deposits.

-

Other operating expenses were £3 million, or 0.8%, higher than H1 2024 primarily reflecting higher investment costs and one off items.

-

An impairment charge of £1 million in H1 2025, compared with an £11 million release in H1 2024, largely reflecting the non-repeat of good book releases in the prior year, with Stage 3 charges remaining at low levels.

-

CAL was £2 billion, or 1.8%, higher in H1 2025, supported by growth in AUMA and lending balances, partly offset by lower deposit balances.

-

Net loans to customers were £0.4 billion, or 2.2%, higher in H1 2025 driven by higher commercial loan balances, due to strong client engagement and competitive pricing strategies.

-

Customer deposits decreased by £1.1 billion, or 2.6%, in H1 2025 largely reflecting seasonal tax payments and outflows of transitory balances.

-

AUMA balances increased by £2.9 billion in H1 2025 primarily driven by AUM net inflows of £1.5 billion, AUA net inflows of £0.2 billion, and Cushon net inflows of £0.3 billion supported by positive market movements of £0.8 billion. AUM net flows as a percentage of opening balances are 8.1% on an annualised basis.

 **Q2 2025 performance**

-

Total income was £9 million, or 3.4%, higher than Q1 2025 primarily reflecting an additional day in the quarter and the impact of higher fee income.

-

Net interest margin was 3 basis points lower than Q1 2025 largely reflecting changes in product mix.

-

Other operating expenses were £16 million, or 8.6%, lower than Q1 2025 primarily reflecting the non-repeat of the Q1 2025 Bank of England levy and lower severance costs.

-

CAL was £3.5 billion, or 3.3%, higher than Q1 2025 due to increases in AUMA, deposits and lending balances.

-

Net loans to customers were £0.2 billion, or 1.1%, higher than Q1 2025 driven by an increase in commercial loans.

-

Customer deposits were £0.1 billion, or 0.2%, higher than Q1 2025 as a strong performance on instant access was partially offset by a decrease in current accounts.

-

AUMA balances increased by £3.3 billion in the quarter primarily driven by AUM net inflows of £0.7 billion, AUA net inflows of £0.4 billion and Cushon net inflows of £0.1 billion, along with positive market movements of £2.0 billion. AUM net flows as a percentage of opening balances are 7.6% on an annualised basis.

Business performance summary continued

Commercial & Institutional

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **30 June**<br>**2025**<br>**£m** | 30 June<br>2024<br>£m | **30 June**<br>**2025**<br>**£m** | 31 March<br>2025<br>£m | 30 June<br>2024<br>£m |
| Net interest income | **2955** | 2543 | **1496** | 1459 | 1297 |
| Non-interest income | **1334** | 1257 | **651** | 683 | 644 |
| Total income | **4289** | 3800 | **2147** | 2142 | 1941 |
| Operating expenses | **(2151)** | (2150) | **(1107)** | (1044) | (1099) |
| *of which: Other operating expenses* |  ***(2062)*** | *(2073)* |  ***(1047)*** | (1015) | *(1053)* |
| Impairment (losses)/releases | **(154)** | 57 | **(76)** | (78) | 96 |
| Operating profit | **1984** | 1707 | **964** | 1020 | 938 |
| Return on equity (1) | **18.6%** | 16.2% | **17.9%** | 19.3% | 17.8% |
| Net interest margin (1) | **2.33%** | 2.10% | **2.35%** | 2.32% | 2.12% |
| Cost:income ratio  |  |  |  |  |  |
| (excl. litigation and conduct) (1) | **48.1%** | 54.6% | **48.8%** | 47.4% | 54.3% |
| Loan impairment rate (1) | **21bps** | (8bps) | **20bps** | 22bps | (28bps) |
|  |  |  | **As at** | **As at** | **As at** |
|  |  |  | **30 June** | 31 March | 31 December |
|  |  |  | **2025** | 2025 | 2024 |
|  |  |  | **£bn** | £bn | £bn |
| Net loans to customers (amortised cost) |  |  | **147.2** | 143.1 | 141.9 |
| Customer deposits |  |  | **197.9** | 196.5 | 194.1 |
| Funded assets (1) |  |  | **343.1** | 336.1 | 321.6 |
| RWAs |  |  | **107.8** | 107.3 | 104.7 |

---

(1) Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

During H1 2025, Commercial & Institutional continued to deliver a strong performance in income and operating profit, supporting a return on equity of 18.6%, an increase from 16.2% in H1 2024. We saw another quarter of higher demand for FX risk management against a backdrop of volatile markets, supporting income. We have supported sectors that are vital to the health and success of the UK economy, including continued support for Housing Associations, as we made strong progress on our commitment to provide £7.5 billion by the end of 2026 with £2.7 billion in H1 2025 and £6.8 billion delivered to date, and through our digital led Business Banking proposition grew gross new lending by 63% in H1 2025 compared to H1 2024. We have improved customer experience through our Bankline transformation, resulting in a significant take up of connected products.

Commercial & Institutional provided £14.6 billion of climate and sustainable funding and financing in H1 2025 to support customers investing in the transition to net zero.

 **H1 2025 performance**

-

Total income was £489 million, or 12.9%, higher than H1 2024 primarily reflecting strong customer activity across markets supporting higher trading income, customer lending growth and deposit margin expansion.

-

Net interest margin was 23 basis points higher than H1 2024 primarily reflecting deposit margin expansion.

-

Other operating expenses were £11 million, or 0.5%, lower than H1 2024 reflecting lower staff and non-staff costs.

-

An impairment charge of £154 million in H1 2025, compared with a £57 million release in H1 2024 reflecting lower good book releases and higher Stage 3 charges.

-

Net loans to customers increased by £5.3 billion, or 3.7%, in H1 2025 principally due to growth within Corporate & Institutions and Commercial Mid-market, partly offset by UK Government scheme repayments of £0.8 billion.

-

Customer deposits increased by £3.8 billion, or 2.0%, in H1 2025 largely reflecting growth within Corporate & Institutions<sup>(1)</sup>.

-

RWAs increased by £3.1 billion, or 3.0%, in H1 2025 primarily driven by the annual update to operational risk, an increase in credit risk from book growth and an increase for CRD IV models, partly offset by lower market risk and continued RWA management activity.

 **Q2 2025 performance**

-

Total income was £5 million, or 0.2%, higher than Q1 2025 primarily due to currency trading income and lending growth, deposit margin expansion, as well as the impact of an additional day in the quarter, partly offset by lower debt capital markets and fixed income trading income.

-

Net interest margin was 3 basis points higher than Q1 2025 primarily reflecting deposit margin expansion, partly offset by asset mix impacts.

-

Other operating expenses were £32 million, or 3.2%, higher than Q1 2025 primarily reflecting the impact of FCA fees and inflationary increases in staff costs, partly offset by the non-repeat of the Q1 2025 Bank of England levy.

-

An impairment charge of £76 million in Q2 2025 compared with a £78 million charge in Q1 2025 reflecting a reduction in post model adjustments, partly offset by an increase in Stage 3 charges.

-

Net loans to customers increased by £4.1 billion, or 2.9%, in Q2 2025 principally due to growth within Commercial Mid-market and Corporate & Institutions, partly offset by UK Government scheme repayments of £0.4 billion.

-

Customer deposits increased by £1.4 billion, or 0.7%, in Q2 2025 largely reflecting growth within Corporate & Institutions.

-

RWAs increased by £0.5 billion, or 0.5%, in Q2 2025 primarily driven by book growth and an increase for CRD IV models, partly offset by lower market risk and continued RWA management activity.

(1) In addition, client transfers from Commercial Mid-market to Corporate & Institutions were undertaken with a value of £5.9 billion at the end of Q2 2025 with an equivalent value of £3.3 billion at Q4 2024.

Business performance summary continued

Central items & other

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | | | **30 June** | 31 March | 30 June |
|  | | | **2025** | 2025 | 2024 |
|  | **30 June**<br>**2025**<br>**£m** | 30 June<br>2024<br>£m | **£m** | £m | £m |
| **Continuing operations** |  |  |  |  |  |
| Total income | **23** | 200 | **(10)** | 33 | 117 |
| Operating expenses  | **(85)** | (81) | **(18)** | (67) | (34) |
| *of which: Other operating expenses* |  ***(69)*** | *(71)* |  ***(13)*** | *(56)* | *(10)* |
| Impairment (losses)/releases | **(1)** | 6 | **-** | (1) | 3 |
| Operating (loss)/profit | **(63)** | 125 | **(28)** | (35) | 86 |
|  |  |  |  | **As at** |  |
|  |  |  | **30 June** | 31 March | 31 December |
|  |  |  | **2025** | 2025 | 2024 |
|  |  |  | **£bn** | £bn | £bn |
| Net loans to customers (amortised cost) | Net loans to customers (amortised cost) |  | **27.0** | 26.9 | 31.8 |
| Customer deposits |  |  | **1.0** | 1.2 | 2.2 |
| RWAs |  |  | **1.4** | 1.6 | 2.0 |

---

 **H1 2025 performance**

-

Total income was £177 million lower than H1 2024 primarily reflecting lower gains on interest and FX risk management derivatives not in accounting hedge relationships.

-

Other operating expenses were £2 million, or 2.8%, lower than H1 2024.

-

Net loans to customers decreased by £4.8 billion, or 15%, in H1 2025 driven by reverse repo activity in Treasury.

-

Customer deposits of £1.0 billion decreased by £1.2 billion in H1 2025 primarily reflecting repo activity in Treasury.

 **Q2 2025 performance**

-

Total income was £43 million lower than Q1 2025 primarily driven by lower Business Growth Fund profits and lower gains on interest and FX risk management derivatives not in accounting hedge relationships.

-

Other operating expenses were £43 million, or 77%, lower than Q1 2025 primarily due to one-off items including an HMRC tax credit and a VAT release.

-

Net loans to customers increased by £0.1 billion in Q2 2025 driven by reverse repo activity in Treasury.

-

Customer deposits decreased by £0.2 billion in Q2 2025 reflecting repo activity in Treasury.

 **Segment performance**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Half year ended 30 June 2025** | **Half year ended 30 June 2025** | **Half year ended 30 June 2025** | **Half year ended 30 June 2025** | **Half year ended 30 June 2025** |
|  | | **Private Banking** |  |  |  |
|  | | **& Wealth** | **Commercial** | **Central items** | **Total NatWest** |
|  | | **Management (2)** | **& Institutional** | **& other** | **Group** |
|  | <br> **Retail**<br>**Banking**<br>**£m** | **£m** | **£m** | **£m** | **£m** |
| **Continuing operations** |  |  |  |  |  |
| **Income statement**  |  |  |  |  |  |
| Net interest income | **2922** | **363** | **2955** | **(120)** | **6120** |
| Own credit adjustments | **-** | **-** | **3** | **-** | **3** |
| Other non-interest income | **212** | **176** | **1331** | **143** | **1862** |
| **Total income**  | **3134** | **539** | **4289** | **23** | **7985** |
| Direct expenses | **(396)** | **(122)** | **(782)** | **(2600)** | **(3900)** |
| Indirect expenses | **(1015)** | **(236)** | **(1280)** | **2531** | **-** |
| Other operating expenses | **(1411)** | **(358)** | **(2062)** | **(69)** | **(3900)** |
| Litigation and conduct costs | **(12)** | **(1)** | **(89)** | **(16)** | **(118)** |
| **Operating expenses** | **(1423)** | **(359)** | **(2151)** | **(85)** | **(4018)** |
| Operating profit/(loss) before impairment losses | **1711** | **180** | **2138** | **(62)** | **3967** |
| Impairment losses | **(226)** | **(1)** | **(154)** | **(1)** | **(382)** |
| **Operating profit/(loss)** | **1485** | **179** | **1984** | **(63)** | **3585** |
| Income excluding notable items (1) | **3134** | **539** | **4286** | **3** | **7962** |
| **Additional information** |  |  |  |  |  |
| Return on Tangible Equity (1) | **na** | **na** | **na** | **na** | **18.1%** |
| Return on equity (1) | **23.8%** | **19.8%** | **18.6%** | **nm** | **na** |
| Cost:income ratio (excl. litigation and conduct) (1) | **45.0%** | **66.4%** | **48.1%** | **nm** | **48.8%** |
| Total assets (£bn) | **238.6** | **29.1** | **414.9** | **48.2** | **730.8** |
| Funded assets (£bn) (1) | **238.6** | **29.1** | **343.1** | **47.0** | **657.8** |
| Net loans to customers - amortised cost (£bn) | **214.3** | **18.6** | **147.2** | **27.0** | **407.1** |
| Loan impairment rate (1) | **21bps** | **1bp** | **21bps** | **nm** | **19bps** |
| Impairment provisions (£bn) | **(1.9)** | **(0.1)** | **(1.7)** | **-** | **(3.7)** |
| Impairment provisions - Stage 3 (£bn) | **(1.1)** | **-** | **(1.1)** | **-** | **(2.2)** |
| Customer deposits (£bn) | **196.6** | **41.3** | **197.9** | **1.0** | **436.8** |
| Risk-weighted assets (RWAs) (£bn) | **69.4** | **11.5** | **107.8** | **1.4** | **190.1** |
| RWA equivalent (RWAe) (£bn) | **70.0** | **11.5** | **108.8** | **2.0** | **192.3** |
| Employee numbers (FTEs - thousands) | **11.8** | **2.1** | **12.8** | **32.5** | **59.2** |
| Third party customer asset rate (1) | **4.31%** | **4.78%** | **6.12%** | **nm** | **nm** |
| Third party customer funding rate (1) | **(1.83%)** | **(2.82%)** | **(1.65%)** | **nm** | **nm** |
| Average interest earning assets (£bn) (1) | **228.2** | **28.4** | **255.4** | **na** | **542.4** |
| Net interest margin (1) | **2.58%** | **2.57%** | **2.33%** | **na** | **2.28%** |

---

nm = not meaningful, na = not applicable.

(1) Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

(2) Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group.

Segment performance continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Half year ended 30 June 2024 | Half year ended 30 June 2024 | Half year ended 30 June 2024 | Half year ended 30 June 2024 | Half year ended 30 June 2024 |
|  | <br>Retail<br>Banking<br>£m | Private Banking<br>& Wealth<br>Management (2)<br>£m | <br>Commercial<br>& Institutional<br>£m | <br>Central items<br>& other<br>£m | <br>Total NatWest<br>Group<br>£m |
| **Continuing operations** |  |  |  |  |  |
| **Income statement**  |  |  |  |  |  |
| Net interest income | 2475 | 285 | 2543 | 105 | 5408 |
| Own credit adjustments | - | - | (7) | - | (7) |
| Other non-interest income | 215 | 159 | 1264 | 95 | 1733 |
| **Total income**  | 2690 | 444 | 3800 | 200 | 7134 |
| Direct expenses | (381) | (126) | (764) | (2685) | (3956) |
| Indirect expenses | (1076) | (229) | (1309) | 2614 | - |
| Other operating expenses | (1457) | (355) | (2073) | (71) | (3956) |
| Litigation and conduct costs | (13) | (1) | (77) | (10) | (101) |
| **Operating expenses** | (1470) | (356) | (2150) | (81) | (4057) |
| Operating profit before impairment losses/releases  | 1220 | 88 | 1650 | 119 | 3077 |
| Impairment (losses)/releases | (122) | 11 | 57 | 6 | (48) |
| **Operating profit** | 1098 | 99 | 1707 | 125 | 3029 |
| Income excluding notable items (1) | 2690 | 444 | 3807 | 63 | 7004 |
| **Additional information** |  |  |  |  |  |
| Return on Tangible Equity (1) | na | na | na | na | 16.4% |
| Return on equity (1) | 18.4% | 10.5% | 16.2% | nm | na |
| Cost:income ratio (excl. litigation and conduct) (1) | 54.2% | 80.0% | 54.6% | nm | 55.5% |
| Total assets (£bn) | 226.5 | 27.2 | 381.9 | 54.7 | 690.3 |
| Funded assets (£bn) (1) | 226.5 | 27.2 | 315.5 | 53.6 | 622.8 |
| Net loans to customers - amortised cost (£bn) | 203.3 | 18.1 | 133.9 | 24.0 | 379.3 |
| Loan impairment rate (1) | 12bps | (12bps) | (8bps) | nm | 3bps |
| Impairment provisions (£bn) | (1.7) | (0.1) | (1.5) | - | (3.3) |
| Impairment provisions - Stage 3 (£bn) | (1.0) | - | (0.9) | (0.1) | (2.0) |
| Customer deposits (£bn) | 191.5 | 39.5 | 194.2 | 7.8 | 433.0 |
| Risk-weighted assets (RWAs) (£bn) | 62.3 | 11.0 | 104.9 | 2.6 | 180.8 |
| RWA equivalent (RWAe) (£bn) | 63.1 | 11.0 | 106.7 | 3.1 | 183.9 |
| Employee numbers (FTEs - thousands) | 12.6 | 2.2 | 12.8 | 33.0 | 60.6 |
| Third party customer asset rate (1) | 3.88% | 4.99% | 6.77% | nm | nm |
| Third party customer funding rate (1) | (2.08%) | (3.14%) | (1.93%) | nm | nm |
| Average interest earning assets (£bn) (1) | 220.1 | 26.3 | 244.0 | na | 524.4 |
| Net interest margin (1) | 2.26% | 2.18% | 2.10% | na | 2.07% |

---

nm = not meaningful, na = not applicable.

(1) Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

(2) Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group.

Segment performance continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter ended 30 June 2025** | **Quarter ended 30 June 2025** | **Quarter ended 30 June 2025** | **Quarter ended 30 June 2025** | **Quarter ended 30 June 2025** |
|  | <br> **Retail**<br>**Banking**<br>**£m** | **Private Banking**<br>**& Wealth**<br>**Management (2)**<br>**£m** | <br> **Commercial**<br>**& Institutional**<br>**£m** | <br> **Central items**<br>**& other**<br>**£m** | <br> **Total NatWest**<br>**Group**<br>**£m** |
| **Continuing operations** |  |  |  |  |  |
| **Income statement**  |  |  |  |  |  |
| Net interest income | **1484** | **182** | **1496** | **(68)** | **3094** |
| Own credit adjustments | **-** | **-** | **(3)** | **-** | **(3)** |
| Other non-interest income | **110** | **92** | **654** | **58** | **914** |
| **Total income**  | **1594** | **274** | **2147** | **(10)** | **4005** |
| Direct expenses | **(230)** | **(63)** | **(403)** | **(1269)** | **(1965)** |
| Indirect expenses | **(504)** | **(108)** | **(644)** | **1256** | **-** |
| Other operating expenses | **(734)** | **(171)** | **(1047)** | **(13)** | **(1965)** |
| Litigation and conduct costs | **(8)** | **(1)** | **(60)** | **(5)** | **(74)** |
| **Operating expenses** | **(742)** | **(172)** | **(1107)** | **(18)** | **(2039)** |
| Operating profit/(loss) before impairment losses | **852** | **102** | **1040** | **(28)** | **1966** |
| Impairment losses | **(117)** | **-** | **(76)** | **-** | **(193)** |
| **Operating profit/(loss)** | **735** | **102** | **964** | **(28)** | **1773** |
| Income excluding notable items (1) | **1594** | **274** | **2150** | **(8)** | **4010** |
| **Additional information** |  |  |  |  |  |
| Return on Tangible Equity (1) | **na** | **na** | **na** | **na** | **17.7%** |
| Return on equity (1) | **23.2%** | **22.5%** | **17.9%** | **nm** | **na** |
| Cost:income ratio (excl. litigation and conduct) (1) | **46.0%** | **62.4%** | **48.8%** | **nm** | **49.1%** |
| Total assets (£bn) | **238.6** | **29.1** | **414.9** | **48.2** | **730.8** |
| Funded assets (£bn) (1) | **238.6** | **29.1** | **343.1** | **47.0** | **657.8** |
| Net loans to customers - amortised cost (£bn) | **214.3** | **18.6** | **147.2** | **27.0** | **407.1** |
| Loan impairment rate (1) | **22bps** | **-** | **20bps** | **nm** | **19bps** |
| Impairment provisions (£bn) | **(1.9)** | **(0.1)** | **(1.7)** | **-** | **(3.7)** |
| Impairment provisions - Stage 3 (£bn) | **(1.1)** | **-** | **(1.1)** | **-** | **(2.2)** |
| Customer deposits (£bn) | **196.6** | **41.3** | **197.9** | **1.0** | **436.8** |
| Risk-weighted assets (RWAs) (£bn) | **69.4** | **11.5** | **107.8** | **1.4** | **190.1** |
| RWA equivalent (RWAe) (£bn) | **70.0** | **11.5** | **108.8** | **2.0** | **192.3** |
| Employee numbers (FTEs - thousands) | **11.8** | **2.1** | **12.8** | **32.5** | **59.2** |
| Third party customer asset rate (1) | **4.32%** | **4.74%** | **6.00%** | **nm** | **nm** |
| Third party customer funding rate (1) | **(1.79%)** | **(2.74%)** | **(1.60%)** | **nm** | **nm** |
| Average interest earning assets (£bn) (1) | **230.0** | **28.5** | **255.6** | **na** | **543.2** |
| Net interest margin (1) | **2.59%** | **2.56%** | **2.35%** | **na** | **2.28%** |

---

nm = not meaningful, na = not applicable.

(1) Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

(2) Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group.

Segment performance continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Quarter ended 31 March 2025 | Quarter ended 31 March 2025 | Quarter ended 31 March 2025 | Quarter ended 31 March 2025 | Quarter ended 31 March 2025 |
|  |  | Private Banking |  |  |  |
|  | Retail | & Wealth | Commercial | Central items | Total NatWest |
|  | Banking | Management (2) | & Institutional | & other | Group |
|  | £m | £m | £m | £m | £m |
| **Continuing operations** |  |  |  |  |  |
| **Income statement**  |  |  |  |  |  |
| Net interest income | 1438 | 181 | 1459 | (52) | 3026 |
| Own credit adjustments | - | - | 6 | - | 6 |
| Other non-interest income | 102 | 84 | 677 | 85 | 948 |
| **Total income**  | 1540 | 265 | 2142 | 33 | 3980 |
| Direct expenses | (166) | (59) | (379) | (1331) | (1935) |
| Indirect expenses | (511) | (128) | (636) | 1275 | - |
| Other operating expenses | (677) | (187) | (1015) | (56) | (1935) |
| Litigation and conduct costs | (4) | - | (29) | (11) | (44) |
| **Operating expenses** | (681) | (187) | (1044) | (67) | (1979) |
| Operating profit/(loss) before impairment losses | 859 | 78 | 1098 | (34) | 2001 |
| Impairment losses | (109) | (1) | (78) | (1) | (189) |
| **Operating profit/(loss)** | 750 | 77 | 1020 | (35) | 1812 |
| Income excluding notable items (1) | 1540 | 265 | 2136 | 11 | 3952 |
| **Additional information** |  |  |  |  |  |
| Return on Tangible Equity (1) | na | na | na | na | 18.5% |
| Return on equity (1) | 24.5% | 17.1% | 19.3% | nm | na |
| Cost:income ratio (excl. litigation and conduct) (1) | 44.0% | 70.6% | 47.4% | nm | 48.6% |
| Total assets (£bn) | 234.3 | 28.9 | 397.9 | 48.9 | 710.0 |
| Funded assets (£bn) (1) | 234.3 | 28.9 | 336.1 | 47.9 | 647.2 |
| Net loans to customers - amortised cost (£bn) | 210.4 | 18.4 | 143.1 | 26.9 | 398.8 |
| Loan impairment rate (1) | 21bps | 2bps | 22bps | nm | 19bps |
| Impairment provisions (£bn) | (1.9) | (0.1) | (1.5) | - | (3.5) |
| Impairment provisions - Stage 3 (£bn) | (1.1) | - | (1.0) | - | (2.1) |
| Customer deposits (£bn) | 195.7 | 41.2 | 196.5 | 1.2 | 434.6 |
| Risk-weighted assets (RWAs) (£bn) | 66.8 | 11.3 | 107.3 | 1.6 | 187.0 |
| RWA equivalent (RWAe) (£bn) | 67.6 | 11.3 | 108.5 | 2.1 | 189.5 |
| Employee numbers (FTEs - thousands) | 11.9 | 2.2 | 12.8 | 32.5 | 59.4 |
| Third party customer asset rate (1) | 4.29% | 4.83% | 6.24% | nm | nm |
| Third party customer funding rate (1) | (1.87%) | (2.90%) | (1.71%) | nm | nm |
| Average interest earning assets (£bn) (1) | 226.5 | 28.4 | 255.2 | na | 541.6 |
| Net interest margin (1) | 2.58% | 2.59% | 2.32% | na | 2.27% |

---

nm = not meaningful, na = not applicable.

(1) Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

(2) Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group.

Segment performance continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Quarter ended 30 June 2024 | Quarter ended 30 June 2024 | Quarter ended 30 June 2024 | Quarter ended 30 June 2024 | Quarter ended 30 June 2024 |
|  | Retail | | | | |
|  | Banking | | | | |
|  | £m | Private Banking<br>& Wealth<br>Management (2)<br>£m | <br>Commercial<br>& Institutional<br>£m | <br>Central items<br>& other<br>£m | <br>Total NatWest<br>Group<br>£m |
| **Continuing operations** |  |  |  |  |  |
| **Income statement**  |  |  |  |  |  |
| Net interest income | 1259 | 151 | 1297 | 50 | 2757 |
| Own credit adjustments | - | - | (2) | - | (2) |
| Other non-interest income | 106 | 85 | 646 | 67 | 904 |
| **Total income**  | 1365 | 236 | 1941 | 117 | 3659 |
| Direct expenses | (192) | (65) | (380) | (1291) | (1928) |
| Indirect expenses | (498) | (110) | (673) | 1281 | - |
| Other operating expenses | (690) | (175) | (1053) | (10) | (1928) |
| Litigation and conduct costs | (7) | - | (46) | (24) | (77) |
| **Operating expenses** | (697) | (175) | (1099) | (34) | (2005) |
| Operating profit before impairment losses/releases  | 668 | 61 | 842 | 83 | 1654 |
| Impairment (losses)/releases | (59) | 5 | 96 | 3 | 45 |
| **Operating profit** | 609 | 66 | 938 | 86 | 1699 |
| Income excluding notable items (1) | 1365 | 236 | 1943 | 46 | 3590 |
| **Additional information** |  |  |  |  |  |
| Return on Tangible Equity (1) | na | na | na | na | 18.5% |
| Return on equity (1) | 20.3% | 14.4% | 17.8% | nm | na |
| Cost:income ratio (excl. litigation and conduct) (1) | 50.5% | 74.2% | 54.3% | nm | 52.7% |
| Total assets (£bn) | 226.5 | 27.2 | 381.9 | 54.7 | 690.3 |
| Funded assets (£bn) (1) | 226.5 | 27.2 | 315.5 | 53.6 | 622.8 |
| Net loans to customers - amortised cost (£bn) | 203.3 | 18.1 | 133.9 | 24.0 | 379.3 |
| Loan impairment rate (1) | 12bps | (11bps) | (28bps) | nm | (5bps) |
| Impairment provisions (£bn) | (1.7) | (0.1) | (1.5) | - | (3.3) |
| Impairment provisions - Stage 3 (£bn) | (1.0) | - | (0.9) | (0.1) | (2.0) |
| Customer deposits (£bn) | 191.5 | 39.5 | 194.2 | 7.8 | 433.0 |
| Risk-weighted assets (RWAs) (£bn) | 62.3 | 11.0 | 104.9 | 2.6 | 180.8 |
| RWA equivalent (RWAe) (£bn) | 63.1 | 11.0 | 106.7 | 3.1 | 183.9 |
| Employee numbers (FTEs - thousands) | 12.6 | 2.2 | 12.8 | 33.0 | 60.6 |
| Third party customer asset rate (1) | 3.97% | 5.01% | 6.73% | nm | nm |
| Third party customer funding rate (1) | (2.10%) | (3.15%) | (1.93%) | nm | nm |
| Average interest earning assets (£bn) (1) | 219.6 | 26.5 | 246.0 | na | 527.6 |
| Net interest margin (1) | 2.31% | 2.30% | 2.12% | na | 2.10% |

---

nm - not meaningful, na - not applicable

(1) Refer to the Non-IFRS financial measures appendix for details of the basis of preparation and reconciliation of non-IFRS financial measures and performance metrics.

(2) Effective from Q2 2025, the reportable segment Private Banking was renamed Private Banking & Wealth Management. This does not change the financial results of Private Banking & Wealth Management or the consolidated financial results of NatWest Group.

 **Risk and capital management**

Certain disclosures in the Risk and capital management section are within the scope of EY's review report and are marked as 'reviewed' in the section header.

Credit risk

Credit risk is the risk that customers, counterparties or issuers fail to meet a contractual obligation to settle outstanding amounts.

 **Economic loss drivers (reviewed)**

Introduction

The portfolio segmentation and selection of economic loss drivers for IFRS 9 follows the approach used in stress testing. The stress models for each portfolio segment (defined by product or asset class and where relevant, industry sector and region) are based on a selected, small number of economic variables that best explain the movements in portfolio loss rates. The process to select economic loss drivers involves empirical analysis and expert judgement.

The most significant economic loss drivers for material portfolios are shown in the table below:

---

| | |
|:---|:---|
| Portfolio | Economic loss drivers |
| Personal mortgages | Unemployment rate, sterling swap rate, house price index, real wage |
| Personal unsecured | Unemployment rate, sterling swap rate, real wage |
| Corporates | Stock price index, gross domestic product (GDP) |
| Commercial real estate | Stock price index, commercial property price index, GDP |

---

Economic scenarios

At 30 June 2025, the range of anticipated future economic conditions was defined by a set of four internally developed scenarios and their respective probabilities. In addition to the base case, they comprised upside, downside and extreme downside scenarios.

For 30 June 2025, the four scenarios were deemed appropriate in capturing the uncertainty in economic forecasts and the non-linearity in outcomes under different scenarios. These four scenarios were developed to provide sufficient coverage to current risks faced by the economy and consider varying outcomes across the labour market, inflation, interest rate, asset price and economic growth, around which there remains pronounced levels of uncertainty.

Since 31 December 2024, the near-term economic growth outlook has weakened. This was mainly due to the weaker economic performance in the second half of 2024 and the drag from international trade policy related uncertainty. Inflation has risen, with underlying price pressure remaining firm, particularly on services inflation. As a result, inflation is assumed to remain a little higher than 3% through most of 2025, taking longer to fall back to the target level of 2%. The labour market has continued to cool. The unemployment rate peak is now assumed to be modestly higher than at 31 December 2024, but it is still expected to remain low. The Bank of England is expected to continue cutting interest rates in a 'gradual and careful' manner with an assumed terminal rate in the base case of 3.5%. The housing market continues to show signs of resilience, with prices still expected to grow modestly.

---

| | | | |
|:---|:---|:---|:---|
| <br> High level narrative - potential developments, vulnerabilities and risks | <br> High level narrative - potential developments, vulnerabilities and risks | <br> High level narrative - potential developments, vulnerabilities and risks | <br> High level narrative - potential developments, vulnerabilities and risks |
| <br>**Growth** | <br>**Growth** | **Outperformance sustained** - the economy continues to grow at a robust pace<br>| Upside |
| <br>**Growth** | <br>**Growth** | **Steady growth** - staying close to trend pace but with some near-term slowdown<br>| Base case |
| <br>**Growth** | <br>**Growth** | **Stalling** - lagged effect of higher inflation and cautious consumer amidst global trade policy and geopolitical uncertainty stalls the rebound<br>| Downside |
| <br>**Growth** | <br>**Growth** | **Extreme stress** - extreme fall in GDP, with policy support to facilitate sharp recovery<br>| Extreme downside |
| <br>**Inflation** | <br>**Inflation** | **Sticky** - strong growth and/or wage policies and/or interest rate cuts keep services inflation well above target<br>| Upside |
| <br>**Inflation** | <br>**Inflation** | **Battle won** - Beyond near-term volatility, downward drift in services inflation continues, ensuring 2% target is met on a sustained basis<br>| Base case |
| <br>**Inflation** | <br>**Inflation** | **Structural factors** - sustained bouts of energy, food and goods price inflation on geopolitics/deglobalisation<br>| Downside |
| <br>**Inflation** | <br>**Inflation** | **Close to deflation** - inflationary pressures diminish amidst pronounced weakness in demand<br>| Extreme downside |
| <br>**Labour market** | <br>**Labour market** | **Tighter, still** - job growth rebounds strongly, pushing unemployment back down to 3.5%<br>| Upside |
| <br>**Labour market** | <br>**Labour market** | **Cooling continues** - gradual loosening prompts a gentle rise in unemployment (but remains low), job growth recovers<br>| Base case |
| <br>**Labour market** | <br>**Labour market** | **Job shedding** - prolonged weakness in economy prompts redundancies, reduced hours, building slack<br>| Downside |
| <br>**Labour market** | <br>**Labour market** | **Depression** - unemployment hits levels close to previous peaks amid severe stress<br>| Extreme downside |
| <br>**Rates**<br> **short-term** | <br>**Rates**<br> **short-term** | **Limited cuts** - higher growth and inflation keeps the Monetary Policy Committee cautious<br>| Upside |
| <br>**Rates**<br> **short-term** | <br>**Rates**<br> **short-term** | **Steady** - approximately one cut per quarter<br>| Base case |
| <br>**Rates**<br> **short-term** | <br>**Rates**<br> **short-term** | **Mid-cycle quickening** - sharp declines through 2025 to support recovery<br>| Downside |
| <br>**Rates**<br> **short-term** | <br>**Rates**<br> **short-term** | **Sharp drop** - drastic easing in policy to support a sharp deterioration in the economy<br>| Extreme downside |
|  |  | **Above consensus** - 4%<br>| Upside |
| **Rates long-term** | **Middle** - **3.5%** | **Middle** - **3.5%** | Base case |
| **Rates long-term** | **Close to 2010s** - **1-2%/2.5%** | **Close to 2010s** - **1-2%/2.5%** | Downside/Extreme downside |

---

Risk and capital management continued

Credit risk continued

 **Economic loss drivers (reviewed)**

Main macroeconomic variables

The main macroeconomic variables for each of the four scenarios used for expected credit loss (ECL) modelling are set out in the table below.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  |  |  |  | **Extreme** | **Weighted** |  |  |  | Extreme | Weighted |
|  | **Upside** | **Base case** | **Downside** | **downside** | **average** | Upside | Base case | Downside | downside | average |
| **Five-year summary** | **%** | **%** | **%** | **%** | **%** | % | % | % | % | % |
| GDP | **2.1** | **1.3** | **0.6** | **(0.1)** | **1.2** | 2.0 | 1.3 | 0.5 | (0.2) | 1.1 |
| Unemployment rate | **3.8** | **4.6** | **5.4** | **7.1** | **4.9** | 3.6 | 4.3 | 5.0 | 6.7 | 4.6 |
| House price index | **5.7** | **3.4** | **0.5** | **(4.3)** | **2.5** | 5.8 | 3.5 | 0.8 | (4.3) | 2.7 |
| Commercial real estate price | **6.1** | **2.0** | **(0.3)** | **(4.8)** | **1.8** | 5.4 | 1.2 | (1.0) | (5.7) | 1.1 |
| Consumer price index | **2.4** | **2.2** | **3.7** | **1.7** | **2.5** | 2.4 | 2.2 | 3.5 | 1.6 | 2.4 |
| Bank of England base rate | **4.1** | **3.6** | **2.5** | **1.2** | **3.2** | 4.4 | 4.0 | 3.0 | 1.6 | 3.6 |
| Stock price index | **5.2** | **3.8** | **2.6** | **0.7** | **3.5** | 6.3 | 5.0 | 3.4 | 1.1 | 4.5 |
| World GDP | **3.7** | **3.0** | **2.3** | **1.4** | **2.8** | 3.8 | 3.2 | 2.5 | 1.6 | 3.0 |
| Probability weight | **21.7** | **45.0** | **20.7** | **12.6** |  | 23.2 | 45.0 | 19.1 | 12.7 |  |

---

(1) The five-year summary runs from 2025-2029 for 30 June 2025 and from 2024-2028 for 31 December 2024.

(2) The table shows compound annual growth rate (CAGR) for GDP, average levels for the unemployment rate and Bank of England base rate and Q4 to Q4 CAGR for other parameters.

Risk and capital management continued

Credit risk continued

 **Economic loss drivers (reviewed)**

Climate transition

Since 2023, NatWest Group explicitly includes assumptions about the changes in transition policy, expressed as an additional implicit sectoral carbon price, in the base case macroeconomic scenario. At 30 June 2025, this resulted in climate transition policy contributing £9 million to the total ECL, comparable with a contribution of £8 million at the end of 2024.

In 2025, NatWest Group has individually assessed 50 active and potential transition policies that have a significant impact on the cost of emissions and converted them into equivalent sectoral carbon prices, calculated as the cost per tonne of the emissions abated, as a result of each policy. This approach enables NatWest Group to estimate an aggregate macroeconomic impact of the transition policies, and as a result, ECL contribution.

NatWest Group and its customers have a dependency on timely and appropriate government policies to provide the necessary impetus for technology development and customer behaviour changes, to enable the UK's successful transition to net zero. Policy delays and the risks outlined in the UK CCC annual Progress Reports, if not adequately addressed in a timely manner, put at risk the UK's net zero transition and in turn, that of NatWest Group and its customers.

Probability weightings of scenarios

NatWest Group's quantitative approach to IFRS 9 multiple economic scenarios involves selecting a suitable set of discrete scenarios to characterise the distribution of risks in the economic outlook and assigning appropriate probability weights. This quantitative approach is used for 30 June 2025.

The approach involves comparing GDP paths for NatWest Group's scenarios against a set of 1,000 model runs, following which, a percentile in the distribution is established that most closely corresponded to the scenario. The probability weight for base case is set first based on judgement, while probability weights for the alternate scenarios are assigned based on these percentiles scores.

The weights were broadly comparable to those used at 31 December 2024 but with slightly more downside skew. The assigned probability weights were judged to be aligned with the subjective assessment of balance of the risks in the economy as global trade policy uncertainty increased, and geopolitical risks remained elevated. US trade policy remains a key area of uncertainty for the economy. NatWest Group is comfortable that the adjustments made to the base case view reflect much of the adverse economic impacts from tariffs, while the downside scenarios give good coverage to the potential for more significant economic damage, including higher inflation and downturns in business investment and consumer spending. Given the balance of risks that the economy is exposed to, NatWest Group judges it appropriate that downside-biased scenarios have higher combined probability weights than the upside-biased scenario. It presents good coverage to the range of outcomes assumed in the scenarios, including the potential for a robust recovery on the upside and exceptionally challenging outcomes on the downside. A 21.7% weighting was applied to the upside scenario, a 45.0% weighting applied to the base case scenario, a 20.7% weighting applied to the downside scenario and a 12.6% weighting applied to the extreme downside scenario.

Risk and capital management continued

Credit risk continued

 **Economic loss drivers (reviewed)**

Annual figures

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**GDP - annual growth** | <br> **Upside %**<br> | <br> **Base case %**<br> | <br> **Downside %**<br> | **Extreme**<br>**downside %**<br> | **Weighted**<br>**average %**<br> |
| 2025 | **1.4** | **1.1** | **1.0** | **(0.8)** | **0.9** |
| 2026 | **2.9** | **1.1** | **(0.2)** | **(3.6)** | **0.6** |
| 2027 | **2.9** | **1.5** | **(0.4)** | **1.3** | **1.4** |
| 2028 | **1.8** | **1.4** | **0.9** | **1.4** | **1.4** |
| 2029 | **1.6** | **1.4** | **1.6** | **1.4** | **1.5** |
| 2030 | **1.5** | **1.4** | **1.5** | **1.4** | **1.4** |
| **Unemployment rate** |  |  |  |  |  |
| **- annual average** |  |  |  |  |  |
| 2025 | **4.5** | **4.6** | **4.7** | **4.8** | **4.6** |
| 2026 | **3.7** | **4.7** | **5.4** | **7.0** | **4.9** |
| 2027 | **3.5** | **4.6** | **5.8** | **8.4** | **5.1** |
| 2028 | **3.5** | **4.5** | **5.6** | **7.9** | **4.9** |
| 2029 | **3.6** | **4.5** | **5.3** | **7.3** | **4.8** |
| 2030 | **3.6** | **4.4** | **5.1** | **6.7** | **4.7** |
| **House price index** |  |  |  |  |  |
| **- four quarter change**  |  |  |  |  |  |
| 2025 | **4.1** | **3.5** | **(0.3)** | **(2.6)** | **2.1** |
| 2026 | **7.9** | **3.4** | **(2.2)** | **(11.9)** | **1.4** |
| 2027 | **5.8** | **3.4** | **(2.7)** | **(15.9)** | **0.8** |
| 2028 | **5.2** | **3.4** | **3.6** | **4.2** | **4.0** |
| 2029 | **5.6** | **3.4** | **4.3** | **6.5** | **4.4** |
| 2030 | **5.5** | **3.4** | **4.2** | **6.2** | **4.3** |
| **Commercial real estate price** |  |  |  |  |  |
| **- four quarter change**  |  |  |  |  |  |
| 2025 | **10.6** | **2.3** | **(2.0)** | **(10.5)** | **1.6** |
| 2026 | **6.3** | **2.3** | **(6.5)** | **(24.8)** | **(1.5)** |
| 2027 | **5.7** | **2.6** | **2.2** | **4.1** | **3.4** |
| 2028 | **4.7** | **1.5** | **2.6** | **5.8** | **2.9** |
| 2029 | **3.3** | **1.6** | **2.5** | **5.5** | **2.6** |
| 2030 | **3.0** | **1.4** | **2.5** | **5.3** | **2.4** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br> **Consumer price index**<br>**- four quarter change** | <br> **Upside %**<br> | <br> **Base case %**<br> | <br> **Downside %**<br> | **Extreme**<br>**downside %**<br> | **Weighted**<br>**average %**<br> |
| 2025 | **3.2** | **2.9** | **4.2** | **2.4** | **3.2** |
| 2026 | **2.7** | **2.2** | **5.8** | **0.7** | **2.9** |
| 2027 | **2.3** | **2.0** | **3.0** | **1.6** | **2.2** |
| 2028 | **2.0** | **2.0** | **2.8** | **2.0** | **2.2** |
| 2029 | **2.0** | **2.0** | **2.5** | **2.0** | **2.1** |
| 2030 | **2.0** | **2.0** | **2.5** | **2.0** | **2.1** |
| **Bank of England base rate** |  |  |  |  |  |
| **- annual average** |  |  |  |  |  |
| 2025 | **4.32** | **4.21** | **4.07** | **3.58** | **4.12** |
| 2026 | **4.00** | **3.52** | **2.25** | **0.11** | **2.93** |
| 2027 | **4.00** | **3.50** | **2.00** | **0.30** | **2.89** |
| 2028 | **4.00** | **3.50** | **2.00** | **0.64** | **2.94** |
| 2029 | **4.00** | **3.50** | **2.00** | **1.47** | **3.04** |
| 2030 | **4.00** | **3.50** | **2.44** | **2.03** | **3.20** |
| **Stock price index** |  |  |  |  |  |
| **- four quarter change** |  |  |  |  |  |
| 2025 | **9.7** | **6.1** | **(3.1)** | **(19.3)** | **1.8** |
| 2026 | **5.7** | **3.3** | **(0.9)** | **(9.5)** | **1.7** |
| 2027 | **4.0** | **3.3** | **5.8** | **14.0** | **4.9** |
| 2028 | **3.5** | **3.3** | **5.8** | **12.3** | **4.7** |
| 2029 | **3.1** | **3.3** | **5.8** | **11.0** | **4.5** |
| 2030 | **3.3** | **3.3** | **5.8** | **10.1** | **4.5** |

---

Risk and capital management continued

Credit risk continued

 **Economic loss drivers (reviewed)**

Worst points

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**30 June 2025** | <br> **Downside %**<br> | <br>**Quarter** | **Extreme**<br>**downside %**<br> | <br>**Quarter** | **Weighted**<br>**average %**<br> |
| GDP | **-** | **Q2 2027** | **(4.8)** | **Q2 2026** | **-** |
| Unemployment rate - peak | **5.8** | **Q2 2027** | **8.5** | **Q3 2027** | **5.1** |
| House price index | **(5.0)** | **Q4 2027** | **(28.0)** | **Q1 2028** | **-** |
| Commercial real estate price | **(8.4)** | **Q4 2026** | **(33.5)** | **Q1 2027** | **-** |
| Consumer price index |  |  |  |  |  |
| - highest four quarter change | **6.1** | **Q3 2026** | **3.2** | **Q2 2025** | **3.3** |
| Bank of England base rate |  |  |  |  |  |
| - extreme level | **2.0** | **Q1 2025** | **0.1** | **Q1 2025** | **2.9** |
| Stock price index | **(6.6)** | **Q2 2026** | **(32.1)** | **Q2 2026** | **-** |
| 31 December 2024 |  |  |  |  |  |
| GDP | - | Q1 2024 | (4.1) | Q4 2025 | - |
| Unemployment rate - peak | 5.6 | Q4 2026 | 8.5 | Q1 2027 | 4.9 |
| House price index | (1.9) | Q2 2027 | (25.6) | Q3 2027 | - |
| Commercial real estate price | (10.5) | Q2 2026 | (35.0) | Q3 2026 | (1.8) |
| Consumer price index |  |  |  |  |  |
| - highest four quarter change | 6.1 | Q1 2026 | 3.5 | Q1 2024 | 3.5 |
| Bank of England base rate |  |  |  |  |  |
| - extreme level | 2.0 | Q1 2024 | 0.1 | Q1 2024 | 2.9 |
| Stock price index | (0.2) | Q4 2025 | (27.4) | Q4 2025 | - |

---

(1) The figures show falls relative to the starting period for GDP, house price index, commercial real estate price and stock price index. For unemployment rate, it shows highest value through the scenario horizon. For consumer price index, it shows highest annual percentage change. For Bank of England base rate, it shows highest or lowest value through the horizon. The calculations are performed over five years, with a starting point of Q4 2024 for 30 June 2025 scenarios and Q4 2023 for 31 December 2024 scenarios.

 **Governance and post model adjustments (reviewed)**

The IFRS 9 PD, EAD and LGD models are subject to NatWest Group's model risk policy that stipulates periodic model monitoring, periodic re-validation and defines approval procedures and authorities according to model materiality. Various post model adjustments were applied where management judged they were necessary to ensure an adequate level of overall ECL provision. All post model adjustments were subject to review, challenge and approval through model or provisioning committees.

Post model adjustments will remain a key focus area of NatWest Group's ongoing ECL adequacy assessment process. A holistic framework has been established including reviewing a range of economic data, external benchmark information and portfolio performance trends with a particular focus on segments of the portfolio (both Personal and Non-Personal) that are likely to be more susceptible to high inflation, high interest rates and supply chain disruption.

Risk and capital management continued

Credit risk continued

 **Governance and post model adjustments (reviewed)**

ECL post model adjustments

The table below shows ECL post model adjustments.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Retail Banking** | **Retail Banking** | | | |
| <br>**30 June 2025** | **Mortgages**<br>**£m** | **Other**<br>**£m** | **Private Banking &** <br>**Wealth Management**<br>**£m** | **Commercial &**<br>**Institutional**<br>**£m** | <br> **Total**<br>**£m** |
| Deferred model calibrations | **-** | **-** | **1** | **16** | **17** |
| Economic uncertainty | **55** | **30** | **7** | **142** | **234** |
| Other adjustments | **-** | **-** | **-** | **18** | **18** |
| Total | **55** | **30** | **8** | **176** | **269** |
| Of which: |  |  |  |  |  |
| *Stage 1* |  ***40*** |  ***12*** |  ***4*** |  ***76*** |  ***132*** |
| *Stage 2* |  ***15*** |  ***18*** |  ***4*** |  ***100*** |  ***137*** |
| *Stage 3* |  ***-*** | **-** | **-** |  ***-*** |  ***-*** |
| 31 December 2024 |  |  |  |  |  |
| Deferred model calibrations | - | - | 1 | 18 | 19 |
| Economic uncertainty | 90 | 22 | 8 | 179 | 299 |
| Other adjustments | - | - | - | 18 | 18 |
| Total | 90 | 22 | 9 | 215 | 336 |
| Of which: |  |  |  |  |  |
| *Stage 1* | *58* | *9* | *5* | *94* | *166* |
| *Stage 2* | *26* | *13* | *4* | *119* | *162* |
| *Stage 3* | *6* | *-* | *-* | *2* | *8* |

---

Post model adjustments reduced since 31 December 2024, reflecting updates to post model adjustment parameters.

-

**Retail Banking** - As at 30 June 2025, the post model adjustments for economic uncertainty decreased to £85 million (31 December 2024 - £112 million). This reduction primarily reflected a revision to the cost of living post model adjustment, which reduced to £85 million (31 December 2024 - £105 million). This change was based on an updated review of back-testing default outcomes for higher-risk segments, consistent with the reduction in rate shock risk in the mortgage portfolio. Despite ongoing economic and geopolitical uncertainty, the Retail Banking portfolios demonstrated resilience, supported by a robust risk appetite. The cost of living post model adjustment continued to address the risk in segments of the Retail Banking portfolio that were more susceptible to affordability challenges. It focused on key affordability factors, including lower-income customers in fuel poverty, over-indebted borrowers, and customers vulnerable to higher mortgage rates.

-

**Commercial & Institutional** - As at 30 June 2025, the post model adjustment for economic uncertainty decreased to £142 million (31 December 2024 - £179 million). The inflation, supply chain and liquidity post model adjustment of £122 million (31 December 2024 - £150 million) for lending prior to 1 January 2024, remained the largest component of this adjustment. Downgrades to risk profiles were applied to the sectors that were considered most at risk from the current economic and geopolitical headwinds. The £27 million decrease reflected improved risk metrics along with reduced exposure in the portfolio subject to the adjustment.

Risk and capital management continued

Credit risk continued

 **Measurement uncertainty and ECL sensitivity analysis (reviewed)**

The recognition and measurement of ECL is complex and involves the use of significant judgement and estimation, particularly in times of economic volatility and uncertainty. This includes the formulation and incorporation of multiple forward-looking economic conditions into ECL to meet the measurement objective of IFRS 9. The ECL provision is sensitive to the model inputs and economic assumptions underlying the estimate.

The impact arising from the base case, upside, downside and extreme downside scenarios was simulated.

In the simulations, NatWest Group has assumed that the economic macro variables associated with these scenarios replace the existing base case economic assumptions, giving them a 100% probability weighting and therefore serving as a single economic scenario.

These scenarios were applied to all modelled portfolios in the analysis below, with the simulation impacting both PDs and LGDs. Post model adjustments included in the ECL estimates that were modelled were sensitised in line with the modelled ECL movements, but those that were judgemental in nature, primarily those for deferred model calibrations and economic uncertainty, were not (refer to the Governance and post model adjustments section) on the basis these would be re-evaluated by management through ECL governance for any new economic scenario outlook and not be subject to an automated calculation. As expected, the scenarios create differing impacts on ECL by portfolio and the impacts are deemed reasonable.

In this simulation, it is assumed that existing modelled relationships between key economic variables and loss drivers hold, but in practice other factors would also have an impact, for example, potential customer behaviour changes and policy changes by lenders that might impact on the wider availability of credit.

The focus of the simulations is on ECL provisioning requirements on performing exposures in Stage 1 and Stage 2. The simulations are run on a stand-alone basis and are independent of each other; the potential ECL impacts reflect the simulated impact at 30 June 2025.

Scenario impacts on significant increase in credit risk (SICR) should be considered when evaluating the ECL movements of Stage 1 and Stage 2. In all scenarios the total exposure was the same but exposure by stage varied in each scenario.

Stage 3 provisions are not subject to the same level of measurement uncertainty - default is an observed event as at the balance sheet date. Stage 3 provisions therefore were not considered in this analysis.

NatWest Group's core criterion to identify a SICR is founded on PD deterioration. Under the simulations, PDs change and result in exposures moving between Stage 1 and Stage 2 contributing to the ECL impact.

Risk and capital management continued

Credit risk continued

 **Measurement uncertainty and ECL sensitivity analysis (reviewed)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**30 June 2025** | <br>**Actual** | <br> **Base**<br>**scenario** | **Moderate**<br>**upside**<br>**scenario** | **Moderate**<br>**downside**<br>**scenario** | **Extreme**<br>**downside**<br>**scenario** |
| Stage 1 modelled loans (£m) |  |  |  |  |  |
| Retail Banking - mortgages | **171904** | **173172** | **175663** | **170228** | **159515** |
| Retail Banking - unsecured | **10677** | **10796** | **11132** | **10502** | **9508** |
| Non-Personal - property | **29450** | **29539** | **29587** | **29444** | **27053** |
| Non-Personal - non-property | **138575** | **138975** | **139344** | **138554** | **121078** |
|  | **350606** | **352482** | **355726** | **348728** | **317154** |
| Stage 1 modelled ECL (£m) |  |  |  |  |  |
| Retail Banking - mortgages | **50** | **50** | **50** | **48** | **41** |
| Retail Banking - unsecured | **227** | **231** | **224** | **227** | **210** |
| Non-Personal - property | **76** | **61** | **52** | **78** | **169** |
| Non-Personal - non-property | **192** | **170** | **160** | **195** | **311** |
|  | **545** | **512** | **486** | **548** | **731** |
| Stage 1 coverage |  |  |  |  |  |
| Retail Banking - mortgages | **0.03%** | **0.03%** | **0.03%** | **0.03%** | **0.03%** |
| Retail Banking - unsecured | **2.13%** | **2.14%** | **2.01%** | **2.16%** | **2.21%** |
| Non-Personal - property | **0.26%** | **0.21%** | **0.18%** | **0.26%** | **0.62%** |
| Non-Personal - non-property | **0.14%** | **0.12%** | **0.11%** | **0.14%** | **0.26%** |
|  | **0.16%** | **0.15%** | **0.14%** | **0.16%** | **0.23%** |
| Stage 2 modelled loans (£m) |  |  |  |  |  |
| Retail Banking - mortgages | **21320** | **20052** | **17561** | **22996** | **33709** |
| Retail Banking - unsecured | **3381** | **3262** | **2926** | **3556** | **4550** |
| Non-Personal - property | **3206** | **3117** | **3069** | **3212** | **5603** |
| Non-Personal - non-property | **12199** | **11799** | **11430** | **12220** | **29696** |
|  | **40106** | **38230** | **34986** | **41984** | **73558** |
| Stage 2 modelled ECL (£m) |  |  |  |  |  |
| Retail Banking - mortgages | **51** | **46** | **38** | **57** | **99** |
| Retail Banking - unsecured | **374** | **358** | **310** | **398** | **530** |
| Non-Personal - property | **59** | **51** | **46** | **60** | **131** |
| Non-Personal - non-property | **246** | **223** | **199** | **251** | **519** |
|  | **730** | **678** | **593** | **766** | **1279** |
| Stage 2 coverage |  |  |  |  |  |
| Retail Banking - mortgages | **0.24%** | **0.23%** | **0.22%** | **0.25%** | **0.29%** |
| Retail Banking - unsecured | **11.06%** | **10.97%** | **10.59%** | **11.19%** | **11.65%** |
| Non-Personal - property | **1.84%** | **1.64%** | **1.50%** | **1.87%** | **2.34%** |
| Non-Personal - non-property | **2.02%** | **1.89%** | **1.74%** | **2.05%** | **1.75%** |
|  | **1.82%** | **1.77%** | **1.69%** | **1.82%** | **1.74%** |
| Stage 1 and Stage 2 modelled loans (£m) |  |  |  |  |  |
| Retail Banking - mortgages | **193224** | **193224** | **193224** | **193224** | **193224** |
| Retail Banking - unsecured | **14058** | **14058** | **14058** | **14058** | **14058** |
| Non-Personal - property | **32656** | **32656** | **32656** | **32656** | **32656** |
| Non-Personal - non-property | **150774** | **150774** | **150774** | **150774** | **150774** |
|  | **390712** | **390712** | **390712** | **390712** | **390712** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**30 June 2025** | <br>**Actual** | <br> **Base**<br>**scenario** | **Moderate**<br>**upside**<br>**scenario** | **Moderate**<br>**downside**<br>**scenario** | **Extreme**<br>**downside**<br>**scenario** |
| Stage 1 and Stage 2 modelled ECL (£m) |  |  |  |  |  |
| Retail Banking - mortgages | **101** | **96** | **88** | **105** | **140** |
| Retail Banking - unsecured | **601** | **589** | **534** | **625** | **740** |
| Non-Personal - property | **135** | **112** | **98** | **138** | **300** |
| Non-Personal - non-property | **438** | **393** | **359** | **446** | **830** |
|  | **1275** | **1190** | **1079** | **1314** | **2010** |
| Stage 1 and Stage 2 coverage |  |  |  |  |  |
| Retail Banking - mortgages | **0.05%** | **0.05%** | **0.05%** | **0.05%** | **0.07%** |
| Retail Banking - unsecured | **4.28%** | **4.19%** | **3.80%** | **4.45%** | **5.26%** |
| Non-Personal - property | **0.41%** | **0.34%** | **0.30%** | **0.42%** | **0.92%** |
| Non-Personal - non-property | **0.29%** | **0.26%** | **0.24%** | **0.30%** | **0.55%** |
|  | **0.33%** | **0.30%** | **0.28%** | **0.34%** | **0.51%** |
| Reconciliation to Stage 1 and  |  |  |  |  |  |
| Stage 2 ECL (£m) |  |  |  |  |  |
| ECL on modelled exposures | **1275** | **1190** | **1079** | **1314** | **2010** |
| ECL on non-modelled exposures | **114** | **115** | **115** | **115** | **115** |
| Total Stage 1 and Stage 2 ECL (£m) | **1389** | **1305** | **1194** | **1429** | **2125** |
| Variance to actual total Stage 1 and |  |  |  |  |  |
| Stage 2 ECL (£m) | **-** | **(84)** | **(195)** | **40** | **736** |
| Reconciliation to Stage 1 and  |  |  |  |  |  |
| Stage 2 flow exposures (£m) |  |  |  |  |  |
| Modelled loans | **390712** | **390712** | **390712** | **390712** | **390712** |
| Non-modelled loans | **23392** | **23392** | **23392** | **23392** | **23392** |
| Other asset classes | **154647** | **154647** | **154647** | **154647** | **154647** |

---

(1) Variations in future undrawn exposure values across the scenarios are modelled. However, the exposure position reported is that used to calculate modelled ECL as at 30 June 2025 and therefore does not include variation in future undrawn exposure values.

(2) Reflects ECL for all modelled exposure in scope for IFRS 9. The analysis excludes non-modelled portfolios and exposure relating to bonds and cash.

(3) All simulations were run on a stand-alone basis and are independent of each other, with the potential ECL impact reflecting the simulated impact as at 30 June 2025. The simulations change the composition of Stage 1 and Stage 2 exposure but total exposure was unchanged under each scenario as the loan population was static.

(4) Refer to the Economic loss drivers section for details of economic scenarios.

(5) Refer to the NatWest Group 2024 Annual Report and Accounts for 31 December 2024 comparatives.

Risk and capital management continued

Credit risk continued

 **Measurement uncertainty and ECL adequacy (reviewed)**

-

If the economics were as negative as observed in the extreme downside (i.e. 100% probability weighting), total Stage 1 and Stage 2 ECL was simulated to increase by £0.7 billion (approximately 53%). In this scenario, Stage 2 exposure increased significantly and was the key driver of the simulated ECL rise. The movement in Stage 2 balances in the other simulations was less significant.

-

In the Non-Personal portfolio, there was a significant increase in ECL under the extreme downside scenario. The Non-Personal property ECL increase was mainly due to commercial real estate prices which showed negative growth until 2026 and significant deterioration in the stock index. The non-property increase was mainly due to GDP contraction and significant deterioration in the stock index.

-

Given the continued economic uncertainty, NatWest Group utilised a framework of quantitative and qualitative measures to support the levels of ECL coverage. This included economic data, credit performance insights and problem debt trends. This was particularly important for consideration of post model adjustments.

-

As the effects of these economic risks evolve, there is a risk of further credit deterioration. However, the income statement effect of this should be mitigated by the forward-looking provisions retained on the balance sheet at 30 June 2025.

-

There are a number of key factors that could drive further downside to impairments, through deteriorating economic and credit metrics and increased stage migration as credit risk increases for more customers. Such factors which could impact the IFRS 9 models, include an adverse deterioration in unemployment, GDP and stock price index.

-

The newly acquired Sainsbury's Bank portfolio (£2.2 billion in Stage 1 at 30 June 2025) with associated ECL of £0.1 billion was not included in the modelled sensitivity analysis.

Movement in ECL provision

The table below shows the main ECL provision movements during H1 2025.

---

| | |
|:---|:---|
|  | **ECL provision**<br>**£m** |
| **At 1 January 2025** | **3425** |
| Acquisitions | **81** |
| Changes in economic forecasts | **10** |
| Changes in risk metrics and exposure: Stage 1 and Stage 2 | **(27)** |
| Changes in risk metrics and exposure: Stage 3 | **404** |
| Judgemental changes: changes in post model adjustments for Stage 1, |  |
| Stage 2 and Stage 3 | **(67)** |
| Write-offs and other | **(176)** |
| **At 30 June 2025** | **3650** |

---

-

During H1 2025, overall ECL increased following Non-Personal Stage 3 charges and an increase in good book ECL in the Personal portfolio, driven by the portfolio acquisition from Sainsbury's Bank.

-

For the Non-Personal portfolio, ECL increased from Stage 3 charges, driven by a small number of individual charges in the Commercial & Institutional portfolio. This was partially offset by post model adjustment releases in the good book.

-

In the Personal portfolio, default inflows were broadly stable in H1 2025. However, Stage 3 ECL and stock increased on all unsecured portfolios, with reduced debt sale activity. There was a reduction of Stage 3 ECL on mortgages related to an enhancement to the application of the definition of default, resulting in a £0.4 billion migration of loans from Stage 3 back to the good book.

-

Judgemental ECL post model adjustments decreased to £269 million (31 December 2024 - £336 million) and represented 7.4% of total ECL (31 December 2024 - 9.8%). This reflected revisions to the Retail Banking cost of living post model adjustment after regular back testing, and Non-Personal portfolio improvements in underlying risk profile. Refer to the Governance and post model adjustments section for further details.

Risk and capital management continued

Credit risk - Banking activities

 **Introduction**

This section details the credit risk profile of NatWest Group's banking activities.

 **Financial instruments within the scope of the IFRS 9 ECL framework (reviewed)**

Refer to Note 7 to the consolidated financial statements for balance sheet analysis of financial assets that are classified as amortised cost or fair value through other comprehensive income (FVOCI), the starting point for IFRS 9 ECL framework assessment.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | **Gross**<br>**£bn** | **ECL**<br>**£bn** | **Net**<br>**£bn** | Gross<br>£bn | ECL<br>£bn | Net<br>£bn |
| Balance sheet total gross amortised cost and FVOCI | **588.2** |  |  | 567.2 |  |  |
| In scope of IFRS 9 ECL framework | **578.2** |  |  | 564.4 |  |  |
| % in scope | **98%** |  |  | 100% |  |  |
| Loans to customers - in scope - amortised cost | **411.2** | **3.6** | **407.6** | 404.2 | 3.4 | 400.8 |
| Loans to customers - in scope - FVOCI | **0.1** | **-** | **0.1** | - | - | - |
| Loans to banks - in scope - amortised cost | **6.6** | **-** | **6.6** | 6.0 | - | 6.0 |
| **Total loans - in scope** | **417.9** | **3.6** | **414.3** | 410.2 | 3.4 | 406.8 |
| Stage 1 | **371.9** | **0.6** | **371.3** | 363.8 | 0.6 | 363.2 |
| Stage 2 | **40.2** | **0.7** | **39.5** | 40.5 | 0.8 | 39.7 |
| Stage 3 | **5.8** | **2.3** | **3.5** | 5.9 | 2.0 | 3.9 |
| Other financial assets - in scope - amortised cost | **117.5** | - | **117.5** | 116.4 | - | 116.4 |
| Other financial assets - in scope - FVOCI | **42.8** | - | **42.8** | 37.8 | - | 37.8 |
| **Total other financial assets - in scope** | **160.3** | - | **160.3** | 154.2 | - | 154.2 |
| Stage 1 | **159.5** | - | **159.5** | 153.4 | - | 153.4 |
| Stage 2 | **0.8** | - | **0.8** | 0.8 | - | 0.8 |
| Out of scope of IFRS 9 ECL framework | **10.0** | **na** | **10.0** | 2.8 | na | 2.8 |
| Loans to customers - out of scope - amortised cost | **(0.5)** | **na** | **(0.5)** | (0.5) | na | (0.5) |
| Loans to banks - out of scope - amortised cost | **0.8** | **na** | **0.8** | 0.1 | na | 0.1 |
| Other financial assets - out of scope - amortised cost | **9.4** | **na** | **9.4** | 3.2 | na | 3.2 |
| Other financial assets - out of scope - FVOCI | **0.3** | **na** | **0.3** | - | na | - |

---

na = not applicable

The assets outside the scope of the IFRS 9 ECL framework were as follows:

-

Settlement balances, items in the course of collection, cash balances and other non-credit risk assets of £10.0 billion (31 December 2024 - £3.3 billion). These were assessed as having no ECL unless there was evidence that they were defaulted.

-

Equity shares of £0.3 billion (31 December 2024 - £0.2 billion) as not within the IFRS 9 ECL framework by definition.

-

Fair value adjustments on loans hedged by interest rate swaps, where the underlying loan was within the IFRS 9 ECL scope of £(0.4) billion (31 December 2024 - £(0.5) billion).

Contingent liabilities and commitments

Total contingent liabilities (including financial guarantees) and commitments within IFRS 9 ECL scope of £146.4 billion (31 December 2024 - £140.0 billion) comprised Stage 1 £135.7 billion (31 December 2024 - £129.8 billion); Stage 2 £9.9 billion (31 December 2024 - £9.4 billion); and Stage 3 £0.8 billion (31 December 2024 - £0.8 billion).

The ECL relating to off-balance sheet exposures was £0.1 billion (31 December 2024 - £0.1 billion). The total ECL in the remainder of the Credit risk section of £3.7 billion (31 December 2024 - £3.4 billion) included ECL for both on and off-balance sheet exposures.

Risk and capital management continued

Credit risk - Banking activities continued

 **Segment analysis - portfolio summary (reviewed)**

The table below shows gross loans and ECL, by segment and stage, within the scope of the IFRS 9 ECL framework.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | |  |  |  |  | **Of which:** | **Of which:** | **Of which:** | **Of which:** | **Of which:** | **Of which:** | **Of which:** |
| | |  |  |  |  | **Personal** | **Personal** | **Personal** | **Personal** | **Non-Personal** | **Non-Personal** | **Non-Personal** |
| | | **Private** |  |  |  |  | **Private** |  |  | **Private** |  |  |
| | | **Banking &** |  | **Central** |  |  | **Banking &** |  | **Central** | **Banking &** |  | **Central** |
| | | **Wealth**  | **Commercial** | **items** |  | **Retail** | **Wealth**  | **Commercial** | **items** | **Wealth**  | **Commercial** | **items** |
| | | **Management** | **& Institutional** | **& other** | **Total** | **Banking** | **Management** | **& Institutional** | **& other** | **Management** | **& Institutional** | **& other** |
| <br>**30 June 2025** | <br>**Retail**<br>**Banking**<br>**£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| **Loans - amortised cost and FVOCI (12)** |  |  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 | **188562** | **17514** | **134858** | **30941** | **371875** | **188562** | **13991** | **2225** | **-** | **3523** | **132633** | **30941** |
| Stage 2 | **24437** | **843** | **14857** | **56** | **40193** | **24437** | **362** | **41** | **9** | **481** | **14816** | **47** |
| Stage 3 | **3006** | **318** | **2496** | **3** | **5823** | **3006** | **233** | **43** | **3** | **85** | **2453** | **-** |
| *Of which: individual* |  ***-*** |  ***243*** |  ***1279*** |  ***-*** |  ***1522*** |  ***-*** |  ***158*** |  ***5*** |  ***-*** |  ***85*** |  ***1274*** |  ***-*** |
| *Of which: collective* |  ***3006*** |  ***75*** |  ***1217*** |  ***3*** |  ***4301*** |  ***3006*** |  ***75*** |  ***38*** |  ***3*** |  ***-*** |  ***1179*** |  ***-*** |
| Total  | **216005** | **18675** | **152211** | **31000** | **417891** | **216005** | **14586** | **2309** | **12** | **4089** | **149902** | **30988** |
| **ECL provisions (3)** |  |  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 | **360** | **15** | **258** | **15** | **648** | **360** | **3** | **2** | **-** | **12** | **256** | **15** |
| Stage 2  | **425** | **9** | **306** | **1** | **741** | **425** | **1** | **-** | **-** | **8** | **306** | **1** |
| Stage 3 | **1128** | **42** | **1090** | **1** | **2261** | **1128** | **22** | **16** | **-** | **20** | **1074** | **1** |
| *Of which: individual* |  ***-*** |  ***42*** |  ***569*** |  ***-*** |  ***611*** |  ***-*** |  ***22*** |  ***5*** |  ***-*** |  ***20*** |  ***564*** |  ***-*** |
| *Of which: collective* |  ***1128*** |  ***-*** |  ***521*** |  ***1*** |  ***1650*** |  ***1128*** |  ***-*** |  ***11*** |  ***-*** |  ***-*** |  ***510*** |  ***1*** |
| Total  | **1913** | **66** | **1654** | **17** | **3650** | **1913** | **26** | **18** | **-** | **40** | **1636** | **17** |
| **ECL provisions coverage (4)** |  |  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 (%) | **0.19** | **0.09** | **0.19** | **0.05** | **0.17** | **0.19** | **0.02** | **0.09** | **-** | **0.34** | **0.19** | **0.05** |
| Stage 2 (%) | **1.74** | **1.07** | **2.06** | **1.79** | **1.84** | **1.74** | **0.28** | **-** | **-** | **1.66** | **2.07** | **2.13** |
| Stage 3 (%) | **37.52** | **13.21** | **43.67** | **33.33** | **38.83** | **37.52** | **9.44** | **37.21** | **-** | **23.53** | **43.78** |  ***-*** |
| Total  | **0.89** | **0.35** | **1.09** | **0.05** | **0.87** | **0.89** | **0.18** | **0.78** | **-** | **0.98** | **1.09** | **0.05** |
| **Impairment (releases)/losses** |  |  |  |  |  |  |  |  |  |  |  |  |
| ECL charge/(release) (5) | **226** | **1** | **154** | **1** | **382** | **226** | **3** | **-** | **-** | **(2)** | **154** | **1** |
| Stage 1 | **18** | **(5)** | **(80)** | **-** | **(67)** | **18** | **-** | **(1)** | **-** | **(5)** | **(79)** | **-** |
| Stage 2 | **139** | **3** | **23** | **-** | **165** | **139** | **1** | **-** | **-** | **2** | **23** | **-** |
| Stage 3 | **69** | **3** | **211** | **1** | **284** | **69** | **2** | **1** | **-** | **1** | **210** | **1** |
| *Of which: individual* |  ***-*** |  ***3*** |  ***191*** |  ***-*** |  ***194*** |  ***-*** |  ***2*** |  ***-*** |  ***-*** |  ***1*** |  ***191*** |  ***-*** |
| *Of which: collective* |  ***69*** |  ***-*** |  ***20*** |  ***1*** |  ***90*** |  ***69*** |  ***-*** |  ***1*** |  ***-*** |  ***-*** |  ***19*** |  ***1*** |
| Total | **226**  | **1**  | **154**  | **1**  | **382**  | **226**  | **3**  | **-**  | **-**  | **(2)** | **154**  | **1**  |
| Amounts written-off  | **94** | **1** | **97** | **-** | **192** | **94** | **1** | **-** | **-** | **-** | **97** | **-** |
| *Of which: individual* |  ***-*** |  ***1*** |  ***60*** |  ***-*** |  ***61*** |  ***-*** |  ***1*** |  ***-*** |  ***-*** |  ***-*** |  ***60*** |  ***-*** |
| *Of which: collective* |  ***94*** |  ***-*** |  ***37*** |  ***-*** |  ***131*** |  ***94*** |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***37*** |  ***-*** |

---

For the notes to this table refer to the following page.

Risk and capital management continued

Credit risk - Banking activities continued

 **Segment analysis - portfolio summary (reviewed)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | Of which: | Of which: | Of which: | Of which: | Of which: | Of which: | Of which: |
|  |  |  |  |  |  | Personal | Personal | Personal | Personal | Non-Personal | Non-Personal | Non-Personal |
|  |  | Private |  |  |  |  | Private |  |  | Private |  |  |
|  |  | Banking & |  | Central |  |  | Banking & |  | Central | Banking & |  | Central |
|  | Retail | Wealth  | Commercial | items |  | Retail | Wealth  | Commercial | items | Wealth  | Commercial | items |
|  | Banking | Management | & Institutional | & other | Total | Banking | Management | & Institutional | & other | Management | & Institutional | & other |
| 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| **Loans - amortised cost and FVOCI (12)** |  |  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 | 182366 | 17155 | 128988 | 35312 | 363821 | 182366 | 13726 | 2226 | - | 3429 | 126762 | 35312 |
| Stage 2 | 24242 | 844 | 15339 | 49 | 40474 | 24242 | 352 | 42 | - | 492 | 15297 | 49 |
| Stage 3 | 3268 | 322 | 2340 | - | 5930 | 3268 | 251 | 52 | - | 71 | 2288 | - |
| *Of which: individual* | *-* | *233* | *1052* | *-* | *1285* | *-* | *162* | *5* | *-* | *71* | *1047* |  |
| *Of which: collective* | *3268* | *89* | *1288* | *-* | *4645* | *3268* | *89* | *47* | *-* | *-* | *1241* | *-* |
| Total  | 209876 | 18321 | 146667 | 35361 | 410225 | 209876 | 14329 | 2320 | - | 3992 | 144347 | 35361 |
| **ECL provisions (3)** |  |  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 | 279 | 16 | 289 | 14 | 598 | 279 | 2 | 3 | - | 14 | 286 | 14 |
| Stage 2  | 428 | 12 | 346 | 1 | 787 | 428 | 1 | - | - | 11 | 346 | 1 |
| Stage 3 | 1063 | 36 | 941 | - | 2040 | 1063 | 21 | 15 | - | 15 | 926 | - |
| *Of which: individual* | *-* | *36* | *415* | *-* | *451* | *-* | *21* | *7* | *-* | *15* | *408* | *-* |
| *Of which: collective* | *1063* | *-* | *526* | *-* | *1589* | *1063* | *-* | *8* | *-* | *-* | *518* | *-* |
| Total  | 1770 | 64 | 1576 | 15 | 3425 | 1770 | 24 | 18 | - | 40 | 1558 | 15 |
| **ECL provisions coverage (4)** |  |  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 (%) | 0.15 | 0.09 | 0.22 | 0.04 | 0.16 | 0.15 | 0.01 | 0.13 | - | 0.41 | 0.23 | 0.04 |
| Stage 2 (%) | 1.77 | 1.42 | 2.26 | 2.04 | 1.94 | 1.77 | 0.28 | - | - | 2.24 | 2.26 | 2.04 |
| Stage 3 (%) | 32.53 | 11.18 | 40.21 | - | 34.40 | 32.53 | 8.37 | 28.85 | - | 21.13 | 40.47 | - |
| Total  | 0.84 | 0.35 | 1.07 | 0.04 | 0.83 | 0.84 | 0.17 | 0.78 | - | 1.00 | 1.08 | 0.04 |
| Half year ended 30 June 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Impairment (releases)/losses** |  |  |  |  |  |  |  |  |  |  |  |  |
| ECL (release)/charge (5) | 122 | (11) | (57) | (6) | 48 | 122 | 1 | - | - | (12) | (57) | (6) |
| Stage 1 | (166) | (9) | (182) | (7) | (364) | (166) | (1) | - | - | (8) | (182) | (7) |
| Stage 2 | 178 | (3) | 14 | 1 | 190 | 178 | 1 | - | - | (4) | 14 | 1 |
| Stage 3 | 110 | 1 | 111 | - | 222 | 110 | 1 | - | - | - | 111 | - |
| *Of which: individual* | *-* | *1* | *79* | *-* | *80* | *-* | *1* | *-* | *-* | *-* | *79* | *-* |
| *Of which: collective* | *110* | *-* | *32* | *-* | *142* | *110* | *-* | *-* | *-* | *-* | *32* | *-* |
| Total | 122 | (11) | (57) | (6) | 48 | 122 | 1 | - | - | (12) | (57) | (6) |
| Amounts written-off | 270 | - | 99 | - | 369 | 270 | - | 1 | - | - | 98 | - |
| *Of which: individual* | *-* | *-* | *64* | *-* | *64* | *-* | *-* | *1* | *-* | *-* | *63* | *-* |
| *Of which: collective* | *270* | *-* | *35* | *-* | *305* | *270* | *-* | *-* | *-* | *-* | *35* | *-* |

---

(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 £89.5 billion (31 December 2024 - £91.8 billion) and debt securities of £70.8 billion (31 December 2024 - £62.4 billion).

(2) Fair value through other comprehensive income (FVOCI). Includes loans to customers and banks.

(3) Includes £4 million (31 December 2024 - £4 million) related to assets classified as FVOCI and £0.1 billion (31 December 2024 - £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. Some segments with a high proportion of debt securities or unutilised exposure may result in a not meaningful (nm) coverage ratio.

(5) Includes a £1 million release (30 June 2024 - £6 million release) related to other financial assets, of which £0 million release (30 June 2024 - £5 million release) related to assets classified as FVOCI and includes a £10 million charge (30 June 2024 - £4 million release) related to contingent liabilities.

Risk and capital management continued

Credit risk - Banking activities continued

 **Segmental loans and impairment metrics (reviewed)**

-

**Retail Banking** - Asset quality and arrears rates remained stable and within expectations for the first half of 2025. The overall increase in good book and total ECL coverage was driven by the acquisition of the Sainsbury's Bank portfolio which, in conjunction with continued organic growth on cards and personal loan portfolios, increased the unsecured portfolio mix. The ECL coverage levels on the Sainsbury's Bank portfolio reflected its strong book quality. Good book coverage on the existing Retail Banking book decreased, reflecting stable portfolio arrears and default trends, as well as resilience to affordability risk concerns. This resilience was notably supported by the reduction in the cost of living post model adjustment on mortgages, supported by reduced default outcomes in at-risk segments. The ECL increases from the latest economic update were minimal. The reduction in Stage 3 ratios was influenced by both the acquisition of the Sainsbury's Bank portfolio on unsecured and an enhancement to the application of the definition of default used on mortgages. The latter resulted in a £0.4 billion migration of loans from Stage 3 back to the good book. Flow rates into Stage 3 remained consistent with 31 December 2024.

-

**Commercial & Institutional** - ECL coverage increased in the first half of the year reflecting a small number of individual charges in Stage 3. Despite the increase in Stage 3 charges compared to the first half of 2024, loan balances flowing into Stage 3 were marginally lower. Stage 3 charges were partially offset through good book releases from improved portfolio risk metrics and a reduction in post model adjustments. Increased loan balances combined with reducing good ECL drove reduced coverage in both Stage 1 and Stage 2. Write-offs were broadly consistent with the first half of 2024.

Risk and capital management continued

Credit risk - Banking activities continued

 **Sector analysis - portfolio summary (reviewed)**

The table below shows financial assets and off-balance sheet exposures gross of ECL and related ECL provisions, impairment and past due by sector, asset quality and geographical region.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Personal** | **Personal** | **Personal** | **Personal** | **Non-Personal** | **Non-Personal** | **Non-Personal** | **Non-Personal** | |
| <br>**30 June 2025** | <br> **Mortgages (1)**<br>**£m** | **Credit**<br>**cards**<br>**£m** | **Other**<br>**personal**<br>**£m** | <br> **Total**<br>**£m** | **Corporate**<br>**and other**<br>**£m** | **Financial**<br>**institutions**<br>**£m** | <br> **Sovereign**<br>**£m** | <br> **Total**<br>**£m** | <br>**Total**<br>**£m** |
| **Loans by geography** | **213336** | **8137** | **11439** | **232912** | **112911** | **70884** | **1184** | **184979** | **417891** |
| *- UK* |  ***213323*** |  ***8137*** |  ***11439*** |  ***232899*** |  ***98210*** |  ***46126*** |  ***491*** |  ***144827*** |  ***377726*** |
| *- Other Europe* |  ***13*** |  ***-*** |  ***-*** |  ***13*** |  ***6584*** |  ***12010*** |  ***364*** |  ***18958*** |  ***18971*** |
| *- RoW* |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***8117*** |  ***12748*** |  ***329*** |  ***21194*** |  ***21194*** |
| **Loans by stage**  | **213336** | **8137** | **11439** | **232912** | **112911** | **70884** | **1184** | **184979** | **417891** |
| *- Stage 1* |  ***189743*** |  ***6011*** |  ***9024*** |  ***204778*** |  ***95737*** |  ***70335*** |  ***1025*** |  ***167097*** |  ***371875*** |
| *- Stage 2* |  ***21477*** |  ***1917*** |  ***1455*** |  ***24849*** |  ***14780*** |  ***422*** |  ***142*** |  ***15344*** |  ***40193*** |
| *- Stage 3* |  ***2116*** |  ***209*** |  ***960*** |  ***3285*** |  ***2394*** |  ***127*** |  ***17*** |  ***2538*** |  ***5823*** |
| *- Of which: individual* |  ***138*** |  ***-*** |  ***25*** |  ***163*** |  ***1222*** |  ***120*** |  ***17*** |  ***1359*** |  ***1522*** |
| *- Of which: collective* |  ***1978*** |  ***209*** |  ***935*** |  ***3122*** |  ***1172*** |  ***7*** |  ***-*** |  ***1179*** |  ***4301*** |
| **Loans - past due analysis (2)** | **213336** | **8137** | **11439** | **232912** | **112911** | **70884** | **1184** | **184979** | **417891** |
| *- Not past due* |  ***210041*** |  ***7872*** |  ***10438*** |  ***228351*** |  ***109838*** |  ***69858*** |  ***1167*** |  ***180863*** |  ***409214*** |
| *- Past due 1-30 days* |  ***1559*** |  ***61*** |  ***78*** |  ***1698*** |  ***1802*** |  ***1007*** |  ***-*** |  ***2809*** |  ***4507*** |
| *- Past due 31-90 days* |  ***620*** |  ***65*** |  ***117*** |  ***802*** |  ***390*** |  ***9*** |  ***-*** |  ***399*** |  ***1201*** |
| *- Past due 90-180 days* |  ***368*** |  ***52*** |  ***108*** |  ***528*** |  ***98*** |  ***-*** |  ***-*** |  ***98*** |  ***626*** |
| *- Past due >180 days* |  ***748*** |  ***87*** |  ***698*** |  ***1533*** |  ***783*** |  ***10*** |  ***17*** |  ***810*** |  ***2343*** |
| **Loans - Stage 2** | **21477** | **1917** | **1455** | **24849** | **14780** | **422** | **142** | **15344** | **40193** |
| *- Not past due* |  ***20093*** |  ***1836*** |  ***1331*** |  ***23260*** |  ***13906*** |  ***410*** |  ***142*** |  ***14458*** |  ***37718*** |
| *- Past due 1-30 days* |  ***1082*** |  ***36*** |  ***42*** |  ***1160*** |  ***540*** |  ***3*** |  ***-*** |  ***543*** |  ***1703*** |
| *- Past due 31-90 days* |  ***302*** |  ***45*** |  ***82*** |  ***429*** |  ***334*** |  ***9*** |  ***-*** |  ***343*** |  ***772*** |
| **Weighted average life**  |  |  |  |  |  |  |  |  |  |
| - ECL measurement (years) | **8** | **4** | **5** | **5** | **6** | **4** | **nm** | **6** | **6** |
| **Weighted average 12 months PDs** |  |  |  |  |  |  |  |  |  |
| - IFRS 9 (%) | **0.52** | **3.35** | **4.75** | **0.77** | **1.19** | **0.18** | **6.13** | **0.82** | **0.80** |
| - Basel (%) | **0.68** | **3.77** | **3.33** | **0.88** | **1.08** | **0.16** | **6.13** | **0.75** | **0.82** |
| **ECL provisions by geography** | **386** | **472** | **1099** | **1957** | **1527** | **144** | **22** | **1693** | **3650** |
| *- UK* |  ***386*** |  ***472*** |  ***1099*** |  ***1957*** |  ***1361*** |  ***90*** |  ***13*** |  ***1464*** |  ***3421*** |
| *- Other Europe* |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***106*** |  ***10*** |  ***-*** |  ***116*** |  ***116*** |
| *- RoW* |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***60*** |  ***44*** |  ***9*** |  ***113*** |  ***113*** |
| **ECL provisions by stage**  | **386** | **472** | **1099** | **1957** | **1527** | **144** | **22** | **1693** | **3650** |
| *- Stage 1* |  ***59*** |  ***128*** |  ***178*** |  ***365*** |  ***232*** |  ***37*** |  ***14*** |  ***283*** |  ***648*** |
| *- Stage 2* |  ***51*** |  ***197*** |  ***178*** |  ***426*** |  ***305*** |  ***8*** |  ***2*** |  ***315*** |  ***741*** |
| *- Stage 3* |  ***276*** |  ***147*** |  ***743*** |  ***1166*** |  ***990*** |  ***99*** |  ***6*** |  ***1095*** |  ***2261*** |
| *- Of which: individual* |  ***12*** |  ***-*** |  ***15*** |  ***27*** |  ***482*** |  ***96*** |  ***6*** |  ***584*** |  ***611*** |
| *- Of which: collective* |  ***264*** |  ***147*** |  ***728*** |  ***1139*** |  ***508*** |  ***3*** |  ***-*** |  ***511*** |  ***1650*** |

---

For the notes to this table refer to page 32.

Risk and capital management continued

Credit risk - Banking activities continued

 **Sector analysis - portfolio summary (reviewed)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Personal** | **Personal** | **Personal** | **Personal** | **Non-Personal** | **Non-Personal** | **Non-Personal** | **Non-Personal** | |
| <br>**30 June 2025** | <br> **Mortgages (1)**<br>**£m** | **Credit**<br>**cards**<br>**£m** | **Other**<br>**personal**<br>**£m** | <br> **Total**<br>**£m** | **Corporate**<br>**and other**<br>**£m** | **Financial**<br>**institutions**<br>**£m** | <br> **Sovereign**<br>**£m** | <br> **Total**<br>**£m** | <br>**Total**<br>**£m** |
| **ECL provisions coverage (%)** | **0.18** | **5.80** | **9.61** | **0.84** | **1.35** | **0.20** | **1.86** | **0.92** | **0.87** |
| *- Stage 1 (%)* |  ***0.03*** |  ***2.13*** |  ***1.97*** |  ***0.18*** |  ***0.24*** |  ***0.05*** |  ***1.37*** |  ***0.17*** |  ***0.17*** |
| *- Stage 2 (%)* |  ***0.24*** |  ***10.28*** |  ***12.23*** |  ***1.71*** |  ***2.06*** |  ***1.90*** |  ***1.41*** |  ***2.05*** |  ***1.84*** |
| *- Stage 3 (%)* |  ***13.04*** |  ***70.33*** |  ***77.40*** |  ***35.49*** |  ***41.35*** |  ***77.95*** |  ***35.29*** |  ***43.14*** |  ***38.83*** |
| **ECL (release)/charge** | **(86)** | **143** | **172** | **229** | **101** | **52** | **-** | **153** | **382** |
| *- UK* |  ***(86)*** |  ***143*** |  ***172*** |  ***229*** |  ***97*** |  ***51*** |  ***-*** |  ***148*** |  ***377*** |
| *- Other Europe* |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***3*** |  ***2*** |  ***-*** |  ***5*** |  ***5*** |
| *- RoW* |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***1*** |  ***(1)*** |  ***-*** |  ***-*** |  ***-*** |
| Amounts written-off  | **13** | **52** | **30** | **95** | **97** |  ***-*** |  ***-*** | **97** | **192** |
| **Loans by residual maturity** | **213336** | **8137** | **11439** | **232912** | **112911** | **70884** | **1184** | **184979** | **417891** |
| *- ≤1 year*  |  ***2151*** |  ***2594*** |  ***2920*** |  ***7665*** |  ***32591*** |  ***52260*** |  ***344*** |  ***85195*** |  ***92860*** |
| *- >1 and ≤5 year* |  ***8453*** |  ***5543*** |  ***6873*** |  ***20869*** |  ***49964*** |  ***13956*** |  ***497*** |  ***64417*** |  ***85286*** |
| *- >5 and ≤15 year* |  ***42661*** |  ***-*** |  ***1642*** |  ***44303*** |  ***22203*** |  ***4532*** |  ***309*** |  ***27044*** |  ***71347*** |
| *- >15 year* |  ***160071*** |  ***-*** |  ***4*** |  ***160075*** |  ***8153*** |  ***136*** |  ***34*** |  ***8323*** |  ***168398*** |
| **Other financial assets by asset quality (3)** |  ***-*** |  ***-*** |  ***-*** |  ***-*** | **4584** | **25530** | **130211** | **160325** | **160325** |
| *- AQ1-AQ4* |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***4582*** |  ***25400*** |  ***130211*** |  ***160193*** |  ***160193*** |
| *- AQ5-AQ8* |  ***-*** |  ***-*** |  ***-*** |  ***-*** |  ***2*** |  ***130*** |  ***-*** |  ***132*** |  ***132*** |
| **Off-balance sheet** | **14489** | **25919** | **7739** | **48147** | **76535** | **21510** | **192** | **98237** | **146384** |
| *- Loan commitments* |  ***14489*** |  ***25919*** |  ***7701*** |  ***48109*** |  ***73735*** |  ***20157*** |  ***192*** |  ***94084*** |  ***142193*** |
| *- Contingent liabilities* |  ***-*** |  ***-*** |  ***38*** |  ***38*** |  ***2800*** |  ***1353*** |  ***-*** |  ***4153*** |  ***4191*** |
| **Off-balance sheet by asset quality (3)** | **14489** | **25919** | **7739** | **48147** | **76535** | **21510** | **192** | **98237** | **146384** |
| *- AQ1-AQ4* |  ***13642*** |  ***516*** |  ***6296*** |  ***20454*** |  ***48124*** |  ***19608*** |  ***121*** |  ***67853*** |  ***88307*** |
| *- AQ5-AQ8* |  ***836*** |  ***25021*** |  ***1391*** |  ***27248*** |  ***28030*** |  ***1858*** |  ***16*** |  ***29904*** |  ***57152*** |
| *- AQ9*  |  ***1*** |  ***13*** |  ***23*** |  ***37*** |  ***26*** |  ***-*** |  ***55*** |  ***81*** |  ***118*** |
| *- AQ10* |  ***10*** |  ***369*** |  ***29*** |  ***408*** |  ***355*** |  ***44*** |  ***-*** |  ***399*** |  ***807*** |

---

For the notes to this table refer to page 32.

Risk and capital management continued

Credit risk - Banking activities continued

 **Sector analysis - portfolio summary (reviewed)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Personal | Personal | Personal | Personal | Non-Personal | Non-Personal | Non-Personal | Non-Personal |  |
|  |  | Credit | Other |  | Corporate | Financial |  |  |  |
|  | Mortgages (1) | cards | personal | Total | and other  | institutions | Sovereign | Total | Total |
| 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| **Loans by geography** | 209846 | 6930 | 9749 | 226525 | 111734 | 70321 | 1645 | 183700 | 410225 |
| *- UK* | *209846* | *6930* | 9749 | *226525* | *97409* | *43412* | *562* | *141383* | *367908* |
| *- Other Europe* | *-* | *-* | - | *-* | *6311* | *14747* | *766* | *21824* | *21824* |
| *- RoW* | *-* | *-* | - | *-* | *8014* | *12162* | *317* | *20493* | *20493* |
| **Loans by stage** | 209846 | 6930 | 9749 | 226525 | 111734 | 70321 | 1645 | 183700 | 410225 |
| *- Stage 1* | *186250* | *4801* | 7267 | *198318* | *94991* | *69021* | *1491* | *165503* | *363821* |
| *- Stage 2* | *21061* | *1953* | 1622 | *24636* | *14464* | *1241* | *133* | *15838* | *40474* |
| *- Stage 3* | *2535* | *176* | 860 | *3571* | *2279* | *59* | *21* | *2359* | *5930* |
| *- Of which: individual* | *141* | *-* | 26 | *167* | *1046* | *51* | *21* | *1118* | *1285* |
| *- Of which: collective* | *2394* | *176* | 834 | *3404* | *1233* | *8* | *-* | *1241* | *4645* |
| **Loans - past due analysis (2)** | 209846 | 6930 | 9749 | 226525 | 111734 | 70321 | 1645 | 183700 | 410225 |
| *- Not past due* | *206739* | *6721* | 8865 | *222325* | *107855* | *70055* | *1627* | *179537* | *401862* |
| *- Past due 1-30 days* | *1404* | *50* | 70 | *1524* | *2530* | *211* | *-* | *2741* | *4265* |
| *- Past due 31-90 days* | *580* | *51* | 99 | *730* | *398* | *2* | *18* | *418* | *1148* |
| *- Past due 90-180 days* | *408* | *41* | 96 | *545* | *139* | *49* | *-* | *188* | *733* |
| *- Past due >180 days* | *715* | *67* | 619 | *1401* | *812* | *4* | *-* | *816* | *2217* |
| **Loans - Stage 2** | 21061 | 1953 | 1622 | 24636 | 14464 | 1241 | 133 | 15838 | 40474 |
| *- Not past due* | *19939* | *1889* | 1521 | *23349* | *13485* | *1228* | *133* | *14846* | *38195* |
| *- Past due 1-30 days* | *853* | *31* | *37* | *921* | *640* | *11* | *-* | *651* | *1572* |
| *- Past due 31-90 days* | *269* | *33* | *64* | *366* | *339* | *2* | *-* | *341* | *707* |
| **Weighted average life** |  |  |  |  |  |  |  |  |  |
| - ECL measurement (years) | 8 | 4 | 6 | 6 | 6 | 2 | nm | 6 | 6 |
| **Weighted average 12 months PDs** | **Weighted average 12 months PDs** |  |  |  |  |  |  |  |  |
| - IFRS 9 (%) | 0.51 | 3.23 | 4.59 | 0.76 | 1.24 | 0.16 | 5.51 | 0.86 | 0.80 |
| - Basel (%) | 0.68 | 3.65 | 3.18 | 0.87 | 1.11 | 0.15 | 4.16 | 0.76 | 0.82 |
| **ECL provisions by geography** | 462 | 381 | 969 | 1812 | 1504 | 90 | 19 | 1613 | 3425 |
| *- UK* | *462* | *381* | 969 | *1812* | *1335* | *37* | *12* | *1384* | *3196* |
| *- Other Europe* | *-* | *-* | - | *-* | *109* | *9* | *-* | *118* | *118* |
| *- RoW* | *-* | *-* | - | *-* | *60* | *44* | *7* | *111* | *111* |
| **ECL provisions by stage**  | 462 | 381 | 969 | 1812 | 1504 | 90 | 19 | 1613 | 3425 |
| *- Stage 1* | *77* | *77* | 130 | *284* | *264* | *38* | *12* | *314* | *598* |
| *- Stage 2* | *60* | *186* | 183 | *429* | *344* | *12* | *2* | *358* | *787* |
| *- Stage 3* | *325* | *118* | 656 | *1099* | *896* | *40* | *5* | *941* | *2040* |
| *- Of which: individual* | *11* | *-* | *17* | *28* | *382* | *36* | *5* | *423* | *451* |
| *- Of which: collective* | *314* | *118* | *639* | *1071* | *514* | *4* | *-* | *518* | *1589* |

---

For the notes to this table refer to the following page.

Risk and capital management continued

Credit risk - Banking activities continued

 **Sector analysis - portfolio summary (reviewed)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Personal | Personal | Personal | Personal | Non-Personal | Non-Personal | Non-Personal | Non-Personal |  |
|  |  | Credit | Other |  | Corporate | Financial |  |  |  |
|  | Mortgages (1) | cards | personal | Total | and other  | institutions | Sovereign | Total | Total |
| 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| **ECL provisions coverage (%)** | 0.22 | 5.50 | 9.94 | 0.80 | 1.35 | 0.13 | 1.16 | 0.88 | 0.83 |
| *- Stage 1 (%)* | *0.04* | *1.60* | *1.79* | *0.14* | *0.28* | *0.06* | *0.80* | *0.19* | *0.16* |
| *- Stage 2 (%)* | *0.28* | *9.52* | *11.28* | *1.74* | *2.38* | *0.97* | *1.50* | *2.26* | *1.94* |
| *- Stage 3 (%)* | *12.82* | *67.05* | *76.28* | *30.78* | *39.32* | *67.80* | *23.81* | *39.89* | *34.40* |
| Half year ended 30 June 2024 | Half year ended 30 June 2024 |  |  |  |  |  |  |  |  |
| **ECL (release)/charge (4)** | (19) | 51 | 91 | 123 | (95) | 19 | 1 | (75) | 48 |
| *- UK* | *(19)* | *51* | *91* | *123* | *(82)* | *(4)* | *-* | *(86)* | *37* |
| *- Other Europe* | *-* | *-* | *-* | *-* | *(7)* | *(6)* | *-* | *(13)* | *(13)* |
| *- RoW* | *-* | *-* | *-* | *-* | *(6)* | *29* | *1.0* | *24* | *24* |
| Amounts written-off (4) | 9 | 38 | 224 | 271 | 98 | *-* | *-* | 98 | 369 |
| 31 December 2024 |  |  |  |  |  |  |  |  |  |
| **Loans by residual maturity** | 209846 | 6930 | 9749 | 226525 | 111734 | 70321 | 1645 | 183700 | 410225 |
| *- ≤1 year*  | *3367* | *3903* | *3186* | *10456* | *34929* | *54971* | *822* | *90722* | *101178* |
| *- >1 and ≤5 year* | *11651* | *3027* | *5551* | *20229* | *48075* | *10967* | *488* | *59530* | *79759* |
| *- >5 and ≤15 year* | *45454* | *-* | *1006* | *46460* | *20623* | *4270* | *298* | *25191* | *71651* |
| *- >15 year* | *149374* | *-* | *6* | *149380* | *8107* | *113* | *37* | *8257* | *157637* |
| **Other financial assets by asset quality (3)** | - | - | - | - | 3644 | 31102 | 119502 | 154248 | 154248 |
| *- AQ1-AQ4* | *-* | *-* | *-* | *-* | *3639* | *30743* | *119502* | *153884* | *153884* |
| *- AQ5-AQ8* | *-* | *-* | *-* | *-* | *5* | *359* | *-* | *364* | *364* |
| **Off-balance sheet** | 13806 | 20135 | 7947 | 41888 | 75964 | 21925 | 239 | 98128 | 140016 |
| *- Loan commitments* | *13806* | *20135* | *7906* | *41847* | *72940* | *20341* | *239* | *93520* | *135367* |
| *- Contingent liabilities* | *-* | *-* | *41* | *41* | *3024* | *1584* | *-* | *4608* | *4649* |
| **Off-balance sheet by asset quality (3)** | 13806 | 20135 | 7947 | 41888 | 75964 | 21925 | 239 | 98128 | 140016 |
| *- AQ1-AQ4* | *12951* | *510* | *6568* | *20029* | *47896* | *20063* | *155* | *68114* | *88143* |
| *- AQ5-AQ8* | *839* | *19276* | *1336* | *21451* | *27657* | *1813* | *21* | *29491* | *50942* |
| *- AQ9*  | *1* | *12* | *17* | *30* | *19* | *-* | *63* | *82* | *112* |
| *- AQ10* | *15* | *337* | *26* | *378* | *392* | *49* | *-* | *441* | *819* |

---

(1) Includes a portion of Private Banking & Wealth Management lending secured against residential real estate, in line with ECL calculation methodology. Private Banking & Wealth Management and RBS International personal products are reported in the UK, reflecting the country of lending origination and includes crown dependencies.

(2) AQ bandings are based on Basel PDs and mapping as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Internal asset quality band | Probability of default range | Indicative S&P rating | Internal asset quality band | Probability of default range | Indicative S&P rating |
| AQ1 | 0% - 0.034% | AAA to AA | AQ6 | 1.076% - 2.153% | BB- to B+ |
| AQ2 | 0.034% - 0.048% | AA to AA- | AQ7 | 2.153% - 6.089% | B+ to B |
| AQ3 | 0.048% - 0.095% | A+ to A | AQ8 | 6.089% - 17.222% | B- to CCC+ |
| AQ4 | 0.095% - 0.381% | BBB+ to BBB- | AQ9 | 17.222% - 100% | CCC to C |
| AQ5 | 0.381% - 1.076% | BB+ to BB | AQ10 | 100% | D |

---

£0.4 billion (31 December 2024 - £0.3 billion) of AQ10 Personal balances primarily relate to loan commitments, the drawdown of which is effectively prohibited.

Risk and capital management continued

Credit risk - Banking activities continued

 **Sector analysis - portfolio summary (reviewed)**

The table below shows ECL by stage, for the Personal portfolio and Non-Personal portfolio, including the three largest borrowing sector clusters included in corporate and other.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Loans - amortised cost and FVOCI** | **Loans - amortised cost and FVOCI** | **Loans - amortised cost and FVOCI** | **Loans - amortised cost and FVOCI** | **Off-balance sheet**  | **Off-balance sheet**  | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions** |
| | **Stage 1** | **Stage 2** | **Stage 3** | **Total** | | | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
| <br>**30 June 2025** | **£m** | **£m** | **£m** | **£m** | **Loan**<br>**commitments**<br>**£m** | **Contingent**<br>**liabilities**<br>**£m** | **£m** | **£m** | **£m** | **£m** |
| **Personal** | **204778** | **24849** | **3285** | **232912** | **48109** | **38** | **365** | **426** | **1166** | **1957** |
| &nbsp;&nbsp;&nbsp; Mortgages (1) | **189743** | **21477** | **2116** | **213336** | **14489** | **-** | **59** | **51** | **276** | **386** |
| &nbsp;&nbsp;&nbsp; Credit cards | **6011** | **1917** | **209** | **8137** | **25919** | **-** | **128** | **197** | **147** | **472** |
| &nbsp;&nbsp;&nbsp; Other personal | **9024** | **1455** | **960** | **11439** | **7701** | **38** | **178** | **178** | **743** | **1099** |
| **Non-Personal** | **167097** | **15344** | **2538** | **184979** | **94084** | **4153** | **283** | **315** | **1095** | **1693** |
| &nbsp;&nbsp;&nbsp; Financial institutions (2) | **70335** | **422** | **127** | **70884** | **20157** | **1353** | **37** | **8** | **99** | **144** |
| &nbsp;&nbsp;&nbsp; Sovereigns | **1025** | **142** | **17** | **1184** | **192** | **-** | **14** | **2** | **6** | **22** |
| &nbsp;&nbsp;&nbsp; Corporate and other | **95737** | **14780** | **2394** | **112911** | **73735** | **2800** | **232** | **305** | **990** | **1527** |
| &nbsp;&nbsp;&nbsp; *Of which:* |  |  |  |  |  |  |  |  |  |  |
| *Commercial real estate* |  ***16855*** |  ***1274*** |  ***368*** |  ***18497*** |  ***6637*** |  ***161*** |  ***64*** |  ***26*** |  ***135*** |  ***225*** |
| *Mobility and logistics* |  ***13990*** |  ***2280*** |  ***121*** |  ***16391*** |  ***10036*** |  ***499*** |  ***25*** |  ***35*** |  ***39*** |  ***99*** |
| *Consumer industries* |  ***12882*** |  ***2592*** |  ***445*** |  ***15919*** |  ***10891*** |  ***517*** |  ***32*** |  ***71*** |  ***202*** |  ***305*** |
| Total | **371875** | **40193** | **5823** | **417891** | **142193** | **4191** | **648** | **741** | **2261** | **3650** |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Loans - amortised cost and FVOCI | Loans - amortised cost and FVOCI | Loans - amortised cost and FVOCI | Loans - amortised cost and FVOCI | Off-balance sheet  | Off-balance sheet  | ECL provisions | ECL provisions | ECL provisions | ECL provisions |
|  |  |  |  |  | Loan | Contingent |  |  |  |  |
|  | Stage 1 | Stage 2 | Stage 3 | Total | commitments | liabilities | Stage 1 | Stage 2 | Stage 3 | Total |
| 31 December 2024  | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| **Personal** | 198318 | 24636 | 3571 | 226525 | 41847 | 41 | 284 | 429 | 1099 | 1812 |
| &nbsp;&nbsp;&nbsp; Mortgages (1) | 186250 | 21061 | 2535 | 209846 | 13806 | - | 77 | 60 | 325 | 462 |
| &nbsp;&nbsp;&nbsp; Credit cards | 4801 | 1953 | 176 | 6930 | 20135 | - | 77 | 186 | 118 | 381 |
| &nbsp;&nbsp;&nbsp; Other personal | 7267 | 1622 | 860 | 9749 | 7906 | 41 | 130 | 183 | 656 | 969 |
| **Non-Personal** | 165503 | 15838 | 2359 | 183700 | 93520 | 4608 | 314 | 358 | 941 | 1613 |
| &nbsp;&nbsp;&nbsp; Financial institutions (2) | 69021 | 1241 | 59 | 70321 | 20341 | 1584 | 38 | 12 | 40 | 90 |
| &nbsp;&nbsp;&nbsp; Sovereigns | 1491 | 133 | 21 | 1645 | 239 | - | 12 | 2 | 5 | 19 |
| &nbsp;&nbsp;&nbsp; Corporate and other | 94991 | 14464 | 2279 | 111734 | 72940 | 3024 | 264 | 344 | 896 | 1504 |
| &nbsp;&nbsp;&nbsp; *Of which:* | - | - | - | - |  |  | - | - | - | - |
| *Commercial real estate* | *16191* | *1517* | *433* | *18141* | *6661* | *143* | *70* | *30* | *146* | *246* |
| *Mobility and logistics* | *13363* | *2384* | *148* | *15895* | *9367* | *595* | *26* | *35* | *67* | *128* |
| *Consumer industries* | *13312* | *3015* | *444* | *16771* | *10706* | *595* | *45* | *90* | *188* | *323* |
| Total | 363821 | 40474 | 5930 | 410225 | 135367 | 4649 | 598 | 787 | 2040 | 3425 |

---

(1) As at 30 June 2025, £140.1 billion, 65.7%, of the total residential mortgages portfolio had Energy Performance Certificate (EPC) data available (31 December 2024 - £139.1 billion, 66.3%). Of which, 47.7% were rated as EPC A to C (31 December 2024 - 46.3%).

(2) Includes transactions, such as securitisations, where the underlying risk may be in other sectors.

Risk and capital management continued

Credit risk - Banking activities continued

 **Non-Personal forbearance (reviewed)**

The table below shows Non-Personal forbearance, Heightened Monitoring and Risk of Credit Loss by sector. This table shows current exposure but reflects risk transfers where there is a guarantee by another customer.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**30 June 2025** | **Corporate and**<br>**other**<br>**£m** | **Financial** <br>**institutions**<br>**£m** | <br> **Sovereign**<br>**£m** | <br> **Total**<br>**£m** |
| Forbearance (flow) | **2287** | **66** | **14** | **2367** |
| Forbearance (stock) | **4267** | **117** | **14** | **4398** |
| Heightened Monitoring and Risk of Credit Loss | **5812** | **88** | **1** | **5901** |
| 31 December 2024 |  |  |  |  |
| Forbearance (flow) | 3359 | 119 | 18 | 3496 |
| Forbearance (stock) | 4556 | 106 | 18 | 4680 |
| Heightened Monitoring and Risk of Credit Loss | 5931 | 150 | 1 | 6082 |

---

Risk and capital management continued

Credit risk - Banking activities continued

-

**Loans by geography and sector** - In line with NatWest Group's strategic focus, exposures continued to be mainly in the UK.

-

**Loans by stage** - The increase in Stage 1, reflected the growth in Personal lending on both mortgages and unsecured lending, alongside the acquisition of the Sainsbury's Bank portfolio. Stage 2 balances remained stable compared to 31 December 2024. Similarly, Stage 3 balances remained stable overall, with a modest increase in Non-Personal Stage 3 balance, due to a small number of defaults, spread across different sectors. This was largely offset by the reduction seen in Personal mortgages, due to an enhancement to the application of the definition of default used on mortgages, resulting in a migration of loans back to the good book.

-

**Loans - Past due analysis** - Within the Personal portfolio, arrears balances increased during H1 2025, however, this was in line with expectations following periods of balance growth. Arrears inflow rates remained stable. In Non-Personal, the total level of past due loans was broadly stable since 31 December 2024, but with some offsetting movements in early arrears by sector. Stage 2 loans past due reduced, in line with overall Stage 2 reductions.

-

**Weighted average 12 months PDs** - Both IFRS 9 and Basel PDs remained broadly stable during the year. In Non-Personal, some reductions were observed in IFRS 9 PDs in the corporate portfolio due to economic and portfolio improvements. PDs in sovereigns increased due to new lending, which is fully backed by government guarantees.

-

**ECL provisions by stage and ECL provisions coverage** - Overall provisions coverage increased since 31 December 2024, following a small number of individual Stage 3 charges in Non-Personal and an increase in good book ECL coverage in the Personal portfolio. This was driven by the portfolio acquisition from Sainsbury's Bank which increased the unsecured mix of the Personal portfolio. Reductions in judgemental post model adjustments mitigated the effect of some of these ECL increases.

-

**ECL charge** - The H1 2025 impairment charge of £382 million, primarily reflected a small number of individual charges in the Commercial & Institutional portfolio alongside the initial ECL cost from the portfolio acquisition from Sainsbury's Bank within Personal. This was partially offset by post model adjustment releases in the good book and the ECL release on Personal, with the migration of assets back to the good book from Stage 3, following an enhancement to the application of the definition of default used on mortgages.

-

**Loans by residual maturity** - In mortgages, as expected, the vast majority of exposures were greater than five years. In unsecured lending, cards and other, exposures were concentrated in less than five years. In Non-Personal, most loans mature in less than five years.

-

**Other financial assets by asset quality** - Consisting almost entirely of balances at central banks and debt securities held in the course of treasury related management activities, these assets were mainly within the AQ1-AQ4 bands.

-

**Off-balance sheet exposures by asset quality** - In Personal, undrawn exposures were reflective of available credit lines in credit cards and current accounts. Additionally, the mortgage portfolio had undrawn exposures, where a formal offer had been made to a customer but had not yet drawn down; the value increased in line with the pipeline of offers. The off-balance sheet commitments for credit cards increased due to the Sainsbury's Bank portfolio acquisition. In Non-Personal, off-balance sheet exposure consisted primarily of undrawn loan commitments to customers along with contingent liabilities. The AQ band split of off-balance sheet exposures broadly mirrored the drawn loans portfolio for non-defaulted exposures.

-

**Non-Personal problem debt** - Exposures in the Problem Debt Management framework reduced during H1 2025 due to some corporate customers moving out of the framework. There was no change in the reasons for customers moving into the Problem Debt Management framework, with trading issues and cash/liquidity being the main drivers.

-

**Non-Personal forbearance** - Exposures classified as forborne reduced marginally across multiple sectors, leading to lower stock values in corporates. A portion of forbearance flows related to cases in Customer Lending Services subject to repeated forbearance.

Risk and capital management continued

Credit risk - Banking activities continued

 **Personal portfolio (reviewed)**

Disclosures in the Personal portfolio section include drawn exposure (gross of provisions).

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  |  | **Private** |  |  |  |  | Private |  |  |  |
|  |  | **Banking** |  |  |  |  | Banking |  |  |  |
|  | **Retail** | **& Wealth** | **Commercial** | **Central items** |  | Retail | & Wealth | Commercial | Central items |  |
|  | **Banking** | **Management** | **& Institutional** | **& other** | **Total** | Banking | Management | & Institutional | & other | Total |
| **Personal lending** | **£m** | **£m** | **£m** | **£m** | **£m** | £m | £m | £m | £m | £m |
| **Mortgages** | **198260** | **12871** | **2160** | **13** | **213304** | 194865 | 12826 | 2161 | - | 209852 |
| Of which: |  |  |  |  |  |  |  |  |  |  |
| Owner occupied | **179036** | **11475** | **1466** | **12** | **191989** | 176137 | 11348 | 1457 | - | 188942 |
| Buy-to-let | **19224** | **1396** | **694** | **1** | **21315** | 18728 | 1478 | 704 | - | 20910 |
| Interest only  | **21919** | **11371** | **424** | **-** | **33714** | 22186 | 11276 | 437 | - | 33899 |
| Mixed (1) | **10333** | **33** | **4** | **-** | **10370** | 10384 | 40 | 8 | - | 10432 |
| ECL provisions (2) | **363** | **13** | **10** | **-** | **386** | 440 | 12 | 10 | - | 462 |
| **Other personal lending (3)** | **17774** | **1479** | **233** | **-** | **19486** | 15045 | 1301 | 242 | - | 16588 |
| ECL provisions (2) | **1551** | **13** | **3** | **-** | **1567** | 1330 | 12 | 3 | - | 1345 |
| **Total personal lending** | **216034** | **14350** | **2393** | **13** | **232790** | 209910 | 14127 | 2403 | - | 226440 |
| **Mortgage LTV ratios** |  |  |  |  |  |  |  |  |  |  |
| Owner occupied | **56%** | **59%** | **57%** | **49%** | **56%** | 56% | 59% | 56% | - | 56% |
| *Stage 1* |  ***56%*** |  ***59%*** |  ***56%*** | - |  ***56%*** | *56%* | *59%* | *55%* | *-* | *56%* |
| *Stage 2* |  ***55%*** |  ***58%*** |  ***57%*** |  ***34%*** |  ***55%*** | *55%* | *61%* | *56%* | *-* | *55%* |
| *Stage 3* |  ***50%*** |  ***62%*** |  ***65%*** |  ***91%*** |  ***51%*** | *50%* | *64%* | *74%* | *-* | *51%* |
| Buy-to-let | **53%** | **60%** | **55%** | **35%** | **54%** | 53% | 60% | 52% | - | 53% |
| *Stage 1* |  ***54%*** |  ***60%*** |  ***54%*** | - |  ***54%*** | *54%* | *60%* | *51%* | *-* | *54%* |
| *Stage 2* |  ***52%*** |  ***57%*** |  ***54%*** |  ***35%*** |  ***52%*** | *52%* | *57%* | *55%* | *-* | *52%* |
| *Stage 3* |  ***52%*** |  ***57%*** |  ***66%*** |  ***35%*** |  ***54%*** | *52%* | *56%* | *59%* | *-* | *53%* |
| **Gross new mortgage lending**  | **15991** | **745** | **125** | **-** | **16861** | 26440 | 1395 | 257 | - | 28092 |
| Of which: |  |  |  |  |  |  |  |  |  |  |
| Owner occupied  | **14834** | **701** | **90** | **-** | **15625** | 25300 | 1266 | 183 | - | 26749 |
| - LTV > 90% | **818** | **-** | **-** | **-** | **818** | 888 | - | - | - | 888 |
| Weighted average LTV (4) | **71%** | **66%** | **61%** | **-** | **71%** | 70% | 63% | 71% | - | 70% |
| Buy-to-let | **1157** | **44** | **35** | **-** | **1236** | 1140 | 129 | 74 | *-* | 1343 |
| Weighted average LTV (4) | **62%** | **62%** | **61%** | **-** | **62%** | 61% | 62% | 56% | - | 61% |
| Interest only  | **1182** | **677** | **19** | **-** | **1878** | 1575 | 1238 | 42 | *-* | 2855 |
| Mixed (1) | **520** | **-** | **1** | **-** | **521** | 1150 | *-* | 1 | *-* | 1151 |

---

For the notes to this table refer to the following page.

Risk and capital management continued

Credit risk - Banking activities continued

 **Personal portfolio (reviewed) continued**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  |  | **Private** |  |  |  |  | Private |  |  |  |
|  |  | **Banking** |  |  |  |  | Banking |  |  |  |
|  | **Retail** | **& Wealth** | **Commercial** | **Central items** |  | Retail | & Wealth | Commercial | Central items |  |
|  | **Banking** | **Management** | **& Institutional** | **& other** | **Total** | Banking | Management | & Institutional | & other | Total |
| **Mortgage forbearance** | **£m** | **£m** | **£m** | **£m** | **£m** | £m | £m | £m | £m | £m |
| Forbearance flow (5) | **196** | **12** | **1** |  ***-*** | **209** | 473 | 8 | 6 | - | 487 |
| Forbearance stock | **1764** | **14** | **12** |  ***1*** | **1791** | 1680 | 20 | 15 | - | 1715 |
| *Current* |  ***1270*** |  ***3*** |  ***4*** |  ***-*** |  ***1277*** | *1214* | *9* | *10* | *-* | *1233* |
| *1-3 months in arrears* |  ***159*** |  ***11*** |  ***1*** |  ***-*** |  ***171*** | *146* | *9* | *-* | *-* | *155* |
| *> 3 months in arrears* |  ***335*** |  ***-*** |  ***7*** |  ***1*** |  ***343*** | *320* | *2* | *5* | *-* | *327* |

---

(1) Includes accounts which have an interest only sub-account and a capital and interest sub-account to provide a more comprehensive view of interest only exposures.

(2) Retail Banking excludes a non-material amount of lending and provisions held on relatively small legacy portfolios.

(3) Comprises unsecured lending except for Private Banking & Wealth Management, which includes both secured and unsecured lending. It excludes loans that are commercial in nature.

(4) New mortgage lending LTV reflects the LTV at the time of lending.

(5) Forbearance flows only include an account once per year, although some accounts may be subject to multiple forbearance deals. Forbearance deals post default are excluded from these flows.

Risk and capital management continued

Credit risk - Banking activities continued

 **Personal portfolio (reviewed)**

Mortgage LTV distribution by stage

The table below shows gross mortgage lending and related ECL by LTV band for the Retail Banking portfolio.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Mortgages** | **Mortgages** | **Mortgages** | **Mortgages** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions coverage**  | **ECL provisions coverage**  | **ECL provisions coverage**  | **ECL provisions coverage**  |
| <br>**30 June 2025** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1%**<br> | **Stage 2%**<br> | **Stage 3%**<br> | **Total %**<br> |
| ≤50% | **66045** | **8771** | **965** | **75781** | **16** | **13** | **126** | **155** | **-** | **0.1** | **13.1** | **0.2** |
| >50% and ≤70% | **63404** | **7796** | **684** | **71884** | **21** | **19** | **86** | **126** | **-** | **0.2** | **12.6** | **0.2** |
| >70% and ≤80% | **25372** | **2496** | **145** | **28013** | **10** | **9** | **19** | **38** | **-** | **0.4** | **13.1** | **0.1** |
| >80% and ≤90% | **17133** | **1806** | **80** | **19019** | **7** | **9** | **13** | **29** | **-** | **0.5** | **16.3** | **0.2** |
| >90% and ≤100% | **2873** | **243** | **19** | **3135** | **1** | **1** | **4** | **6** | **-** | **0.4** | **21.1** | **0.2** |
| >100% | **11** | **2** | **9** | **22** | **-** | **-** | **5** | **5** | **-** | **-** | **55.6** | **22.7** |
| Total with LTVs | **174838** | **21114** | **1902** | **197854** | **55** | **51** | **253** | **359** | **-** | **0.2** | **13.3** | **0.2** |
| Other | **404** | **1** | **1** | **406** | **3** | **-** | **1** | **4** | **0.7** | **-** | **100.0** | **1.0** |
| Total | **175242** | **21115** | **1903** | **198260** | **58** | **51** | **254** | **363** | **-** | **0.2** | **13.3** | **0.2** |
| 31 December 2024 | 31 December 2024 |  |  |  |  |  |  |  |  |  |  |  |
| ≤50% | 64040 | 8344 | 1159 | 73543 | 21 | 16 | 153 | 190 | - | 0.2 | 13.2 | 0.3 |
| >50% and ≤70% | 61739 | 7741 | 855 | 70335 | 29 | 23 | 104 | 156 | - | 0.3 | 12.2 | 0.2 |
| >70% and ≤80% | 25022 | 2361 | 173 | 27556 | 13 | 9 | 22 | 44 | 0.1 | 0.4 | 12.7 | 0.2 |
| >80% and ≤90% | 16718 | 1769 | 85 | 18572 | 9 | 9 | 13 | 31 | 0.1 | 0.5 | 15.3 | 0.2 |
| >90% and ≤100% | 4076 | 512 | 26 | 4614 | 2 | 3 | 5 | 10 | - | 0.6 | 19.2 | 0.2 |
| >100% | 14 | 4 | 13 | 31 | - | - | 6 | 6 | - | - | 46.2 | 19.4 |
| Total with LTVs | 171609 | 20731 | 2311 | 194651 | 74 | 60 | 303 | 437 | - | 0.3 | 13.1 | 0.2 |
| Other | 212 | 1 | 1 | 214 | 2 | - | 1 | 3 | 0.9 | - | 100.0 | 1.4 |
| Total | 171821 | 20732 | 2312 | 194865 | 76 | 60 | 304 | 440 | - | 0.3 | 13.1 | 0.2 |

---

-

Mortgage balances increased during H1 2025 with continued strong new business in excess of redemptions. Unsecured balances increased, primarily driven by the acquisition of personal loans and credit cards from Sainsbury's Bank, as well as underlying credit card growth.

-

In line with wider market trends, new business in the mortgage portfolio was accelerated in Q1 2025, ahead of stamp duty changes introduced on 1 April 2025. LTV for new business did therefore increase with a lower proportion of remortgage new business. Overall portfolio LTV remained stable, with house price growth reflected in the Office for National Statistics house price indices and a reduction in redemptions compared to 2024.

-

Portfolios and new business were closely monitored against agreed operating limits. These included loan-to-value ratios, buy-to-let concentrations, new-build concentrations and credit quality. Lending criteria, affordability calculations and assumptions for new lending were adjusted during the year, to maintain credit quality in line with appetite and to ensure customers are assessed fairly as economic conditions change.

Risk and capital management continued

Credit risk - Banking activities continued

 **Commercial real estate (CRE) (reviewed)**

CRE LTV distribution by stage

The table below shows CRE gross loans and related ECL by LTV band.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Gross loans** | **Gross loans** | **Gross loans** | **Gross loans** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions coverage** | **ECL provisions coverage** | **ECL provisions coverage** | **ECL provisions coverage** |
| <br>**30 June 2025** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1%**<br> | **Stage 2%**<br> | **Stage 3%**<br> | **Total %**<br> |
| ≤50% | **7393** | **200** | **51** | **7644** | **25** | **4** | **8** | **37** | **0.3** | **2.0** | **15.7** | **0.5** |
| >50% and ≤60% | **4166** | **165** | **40** | **4371** | **19** | **4** | **4** | **27** | **0.5** | **2.4** | **10.0** | **0.6** |
| >60% and ≤70% | **689** | **76** | **23** | **788** | **3** | **2** | **7** | **12** | **0.4** | **2.6** | **30.4** | **1.5** |
| >70% and ≤100% | **298** | **122** | **51** | **471** | **1** | **4** | **17** | **22** | **0.3** | **3.3** | **33.3** | **4.7** |
| >100% | **122** | **8** | **113** | **243** | **1** | **-** | **57** | **58** | **0.8** | **-** | **50.4** | **23.9** |
| Total with LTVs | **12668** | **571** | **278** | **13517** | **49** | **14** | **93** | **156** | **0.4** | **2.5** | **33.5** | **1.2** |
| Total portfolio |  |  |  |  |  |  |  |  |  |  |  |  |
| average LTV | **46%** | **59%** | **105%** | **48%** |  |  |  |  |  |  |  |  |
| Other investment (1) | **2169** | **335** | **37** | **2541** | **5** | **5** | **15** | **25** | **0.2** | **1.5** | **40.5** | **1.0** |
| Investment | **14837** | **906** | **315** | **16058** | **54** | **19** | **108** | **181** | **0.4** | **2.1** | **34.3** | **1.1** |
| Development and |  |  |  |  |  |  |  |  |  |  |  |  |
| other (2) | **2018** | **368** | **53** | **2439** | **10** | **7** | **27** | **44** | **0.5** | **1.9** | **50.9** | **1.8** |
| Total | **16855** | **1274** | **368** | **18497** | **64** | **26** | **135** | **225** | **0.4** | **2.0** | **36.7** | **1.2** |
| 31 December 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
| ≤50% | 7334 | 380 | 48 | 7762 | 28 | 6 | 7 | 41 | 0.4 | 1.6 | 14.6 | 0.5 |
| >50% and ≤60% | 3829 | 169 | 53 | 4051 | 19 | 5 | 9 | 33 | 0.5 | 3.0 | 17.0 | 0.8 |
| >60% and ≤70% | 584 | 198 | 34 | 816 | 3 | 5 | 8 | 16 | 0.5 | 2.5 | 23.5 | 2.0 |
| >70% and ≤100% | 312 | 83 | 79 | 474 | 2 | 4 | 21 | 27 | 0.6 | 4.8 | 26.6 | 5.7 |
| >100% | 139 | 8 | 119 | 266 | 1 | - | 56 | 57 | 0.7 | - | 47.1 | 21.4 |
| Total with LTVs | 12198 | 838 | 333 | 13369 | 53 | 20 | 101 | 174 | 0.4 | 2.4 | 30.3 | 1.3 |
| Total portfolio |  |  |  |  |  |  |  |  |  |  |  |  |
| average LTV | 46% | 51% | 102% | 48% |  |  |  |  |  |  |  |  |
| Other investment (1) | 2132 | 348 | 41 | 2521 | 6 | 6 | 15 | 27 | 0.3 | 1.7 | 36.6 | 1.1 |
| Investment | 14330 | 1186 | 374 | 15890 | 59 | 26 | 116 | 201 | 0.4 | 2.2 | 31.0 | 1.3 |
| Development and |  |  |  |  |  |  |  |  |  |  |  |  |
| other (2) | 1861 | 331 | 59 | 2251 | 11 | 4 | 30 | 45 | 0.6 | 1.2 | 50.8 | 2.0 |
| Total | 16191 | 1517 | 433 | 18141 | 70 | 30 | 146 | 246 | 0.4 | 2.0 | 33.7 | 1.4 |

---

(1) Relates mainly to business banking and unsecured corporate lending.

(2) Related to the development of commercial residential properties, along with CRE activities that are not strictly investment or development. LTV is not a meaningful measure for this type of lending activity.

-

**Overall** - The majority of the CRE portfolio was located and managed in the UK. Business appetite and strategy was aligned across NatWest Group.

-

**2025 trends** - There was strong growth in the residential sector, with other CRE sectors remaining broadly flat. LTV profile remained stable.

-

**Credit quality** - Credit quality improved, with fewer exposures in the Problem Debt Management framework, and the average portfolio probability of default holding steady.

-

**Risk appetite** - Lending appetite is subject to regular review.

Risk and capital management continued

Credit risk - Banking activities continued

 **Flow statements (reviewed)**

The flow statements that follow show the main ECL and related income statement movements. They also show the changes in ECL as well as the changes in related financial assets used in determining ECL. Due to differences in scope, exposures may differ from those reported in other tables, principally in relation to exposures in Stage 1 and Stage 2. These differences do not have a material ECL effect. Other points to note:

-

Financial assets include treasury liquidity portfolios, comprising balances at central banks and debt securities, as well as loans. Both modelled and non-modelled portfolios are included.

-

Stage transfers (for example, exposures moving from Stage 1 into Stage 2) are a key feature of the ECL movements, with the net re-measurement cost of transitioning to a worse stage being a primary driver of income statement charges. Similarly, there is an ECL benefit for accounts improving stage.

-

Changes in risk parameters shows the reassessment of the ECL within a given stage, including any ECL overlays and residual income statement gains or losses at the point of write-off or accounting write-down.

-

Other (P&L only items) includes any subsequent changes in the value of written-down assets (for example, fortuitous recoveries) along with other direct write-off items such as direct recovery costs. Other (P&L only items) affects the income statement but does not affect balance sheet ECL movements.

-

Amounts written-off represent the gross asset written-down against accounts with ECL, including the net asset write-down for any debt sale activity.

-

There were some flows from Stage 1 into Stage 3 including transfers due to unexpected default events with a post model adjustment in place for Commercial & Institutional to account for this risk.

-

The effect of any change in post model adjustments during the year is typically reported under changes in risk parameters, as are any effects arising from changes to the underlying models. Refer to the section on Governance and post model adjustments for further details.

-

All movements are captured monthly and aggregated. Interest suspended post default is included within Stage 3 ECL, with the movement in the value of suspended interest during the year reported under currency translation and other adjustments.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **Total** | **Total** |
| | | | **Financial** |  | | | | |
| | | | **assets** | **ECL** | | | | |
| <br>**NatWest Group total** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **£m** | **£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** |
| **At 1 January 2025** | **515556** | **598** | **42165** | **787** | **5901** | **2040** | **563622** | **3425** |
| Currency translation and other adjustments | **(2318)** | **-** | **(28)** | **-** | **87** | **94** | **(2259)** | **94** |
| Transfers from Stage 1 to Stage 2 | **(18664)** | **(104)** | **18664** | **104** | **-** | **-** | **-** | **-** |
| Transfers from Stage 2 to Stage 1 | **15135** | **215** | **(15135)** | **(215)** | **-** | **-** | **-** | **-** |
| Transfers to Stage 3 | **(282)** | **(3)** | **(1342)** | **(131)** | **1624** | **134** | **-** | **-** |
| Transfers from Stage 3 | **80** | **9** | **744** | **30** | **(824)** | **(39)** | **-** | **-** |
| Net re-measurement of ECL on stage transfer |  | **(148)** |  | **277** |  | **274** |  | **403** |
| Changes in risk parameters |  | **(73)** |  | **(14)** |  | **148** |  | **61** |
| Other changes in net exposure | **17488** | **154** | **(3312)** | **(97)** | **(857)** | **(121)** | **13319** | **(64)** |
| Other (P&L only items) |  | **-** |  | **(1)** |  | **(17)** |  | **(18)** |
| **Income statement (releases)/charges** |  | **(67)** |  | **165** |  | **284** |  | **382** |
| Transfers to disposal groups and fair value | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** |
| Amounts written-off | **-** | **-** | **-** | **-** | **(192)** | **(192)** | **(192)** | **(192)** |
| Unwinding of discount |  | **-** |  | **-** |  | **(77)** |  | **(77)** |
| **At 30 June 2025** | **526995** | **648** | **41756** | **741** | **5739** | **2261** | **574490** | **3650** |
| **Net carrying amount** | **526347** |  | **41015** |  | **3478** |  | **570840** |  |
| **At 1 January 2024** | 504345 | 709 | 40294 | 976 | 5621 | 1960 | 550260 | 3645 |
| 2024 movements | (6334) | (124) | (1643) | (174) | 90 | (4) | (7887) | (302) |
| **At 30 June 2024** | 498011 | 585 | 38651 | 802 | 5711 | 1956 | 542373 | 3343 |
| **Net carrying amount** | 497426 |  | 37849 |  | 3755 |  | 539030 |  |

---

Risk and capital management continued

Credit risk - Banking activities continued

 **Flow statements (reviewed)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **Total** | **Total** |
| | | | | | | | **Financial** |  |
| | | | | | | | **assets** | **ECL** |
| <br>**Retail Banking - mortgages** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **£m** | **£m** |
| **At 1 January 2025** | **171333** | **76** | **20992** | **60** | **2303** | **305** | **194628** | **441** |
| Currency translation and other adjustments | **-** | **-** | **-** | **-** | **52** | **51** | **52** | **51** |
| Transfers from Stage 1 to Stage 2 | **(8422)** | **(11)** | **8422** | **11** | **-** | **-** | **-** | **-** |
| Transfers from Stage 2 to Stage 1 | **6890** | **11** | **(6890)** | **(11)** | **-** | **-** | **-** | **-** |
| Transfers to Stage 3 | **(8)** | **-** | **(453)** | **(4)** | **461** | **4** | **-** | **-** |
| Transfers from Stage 3 | **16** | **-** | **625** | **10** | **(641)** | **(10)** | **-** | **-** |
| Net re-measurement of ECL on stage transfer |  | **(2)** |  | **-** |  | **4** |  | **2** |
| Changes in risk parameters |  | **(13)** |  | **(12)** |  | **30** |  | **5** |
| Other changes in net exposure | **4092** | **(3)** | **(1359)** | **(3)** | **(271)** | **(80)** | **2462** | **(86)** |
| Other (P&L only items) |  | **-** |  | **-** |  | **(10)** |  | **(10)** |
| **Income statement (releases)/charges** |  | **(18)** |  | **(15)** |  | **(56)** |  | **(89)** |
| Amounts written-off | **-** | **-** | **-** | **-** | **(13)** | **(13)** | **(13)** | **(13)** |
| Unwinding of discount |  | **-** |  | **-** |  | **(37)** |  | **(37)** |
| **At 30 June 2025** | **173901** | **58** | **21337** | **51** | **1891** | **254** | **197129** | **363** |
| **Net carrying amount** | **173843** |  | **21286** |  | **1637** |  | **196766** |  |
| **At 1 January 2024** | 174038 | 87 | 17827 | 60 | 2068 | 250 | 193933 | 397 |
| 2024 movements | (7045) | (38) | 2490 | 8 | 173 | 30 | (4382) | - |
| **At 30 June 2024** | 166993 | 49 | 20317 | 68 | 2241 | 280 | 189551 | 397 |
| **Net carrying amount** | 166944 |  | 20249 |  | 1961 |  | 189154 |  |

---

-

ECL coverage for mortgages decreased during the first half of 2025, primarily driven by the reduction in economic uncertainty post model adjustments (supported by back-testing) and an enhancement to the application of the definition of default. The latter resulted in a £0.4 billion migration of loans from Stage 3 back to the good book.

-

PDs and Stage 3 inflows remained broadly stable, with the portfolio showing continued resilience during times when a number of customers have had affordability pressures.

-

The net flows into Stage 2 from Stage 1 were offset by a similar level of outflows from Stage 2 to Stage 1 and balance paydown in Stage 2, supporting a stable Stage 2 exposure population during 2025 to date.

-

The relatively small ECL cost for net re-measurement on transfer into Stage 3 included the effect of risk targeted ECL adjustments, when previously in the good book. Refer to the Governance and post model adjustments section for further details.

-

Write-off occurs once the repossessed property has been sold and there is a residual shortfall balance remaining outstanding. This would typically be within five years from default but can be longer.

Risk and capital management continued

Credit risk - Banking activities continued

 **Flow statements (reviewed)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **Total** | **Total** |
| <br>**Retail Banking - credit cards** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** |
| **At 1 January 2025** | **4523** | **76** | **2034** | **186** | **162** | **117** | **6719** | **379** |
| Currency translation and other adjustments | **-** | **-** | **-** | **-** | **3** | **3** | **3** | **3** |
| Transfers from Stage 1 to Stage 2 | **(1110)** | **(24)** | **1110** | **24** | **-** | **-** | **-** | **-** |
| Transfers from Stage 2 to Stage 1 | **675** | **55** | **(675)** | **(55)** | **-** | **-** | **-** | **-** |
| Transfers to Stage 3 | **(16)** | **(1)** | **(99)** | **(35)** | **115** | **36** | **-** | **-** |
| Transfers from Stage 3 | **2** | **1** | **5** | **2** | **(7)** | **(3)** | **-** | **-** |
| Net re-measurement of ECL on stage transfer |  | **(37)** |  | **95** |  | **42** |  | **100** |
| Changes in risk parameters |  | **9** |  | **17** |  | **9** |  | **35** |
| Other changes in net exposure | **1594** | **47** | **(381)** | **(37)** | **(10)** | **(1)** | **1203** | **9** |
| Other (P&L only items) |  | **-** |  | **-** |  | **(1)** |  | **(1)** |
| **Income statement (releases)/charges** |  | **19** |  | **75** |  | **49** |  | **143** |
| Amounts written-off | **-** | **-** | **-** | **-** | **(52)** | **(52)** | **(52)** | **(52)** |
| Unwinding of discount |  | **-** |  | **-** |  | **(5)** |  | **(5)** |
| **At 30 June 2025** | **5668** | **126** | **1994** | **197** | **211** | **146** | **7873** | **469** |
| **Net carrying amount** | **5542** |  | **1797** |  | **65** |  | **7404** |  |
| **At 1 January 2024** | 3475 | 70 | 2046 | 204 | 146 | 89 | 5667 | 363 |
| 2024 movements | 648 | 11 | (224) | (16) | 23 | 16 | 447 | 11 |
| **At 30 June 2024** | 4123 | 81 | 1822 | 188 | 169 | 105 | 6114 | 374 |
| **Net carrying amount** | 4042 |  | 1634 |  | 64 |  | 5740 |  |

---

-

Overall ECL for cards increased during 2025, driven primarily by the acquisition of Sainsbury's Bank credit card balances into Stage 1 (around £1 billion at 30 June 2025) alongside continued organic portfolio growth, reflecting strong customer demand, while sustaining robust risk appetite.

-

While portfolio performance remained stable, a net flow into Stage 2 from Stage 1 was observed, with the typical maturation of lending after a period of strong growth in recent years.

-

Flow rates into Stage 3 were slightly higher in 2025 compared to 2024. This was linked to recent growth and portfolio maturation, but in line with expectations.

-

Charge-off (analogous to partial write-off) typically occurs after 12 missed payments.

Risk and capital management continued

Credit risk - Banking activities continued

 **Flow statements (reviewed)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **Total** | **Total** |
| <br>**Retail Banking - other personal unsecured** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** |
| **At 1 January 2025** | **5605** | **127** | **1465** | **182** | **833** | **641** | **7903** | **950** |
| Currency translation and other adjustments | **-** | **-** | **-** | **-** | **15** | **17** | **15** | **17** |
| Transfers from Stage 1 to Stage 2 | **(998)** | **(44)** | **998** | **44** | **-** | **-** | **-** | **-** |
| Transfers from Stage 2 to Stage 1 | **731** | **75** | **(731)** | **(75)** | **-** | **-** | **-** | **-** |
| Transfers to Stage 3 | **(38)** | **(1)** | **(152)** | **(58)** | **190** | **59** | **-** | **-** |
| Transfers from Stage 3 | **4** | **1** | **11** | **5** | **(15)** | **(6)** | **-** | **-** |
| Net re-measurement of ECL on stage transfer |  | **(49)** |  | **104** |  | **26** |  | **81** |
| Changes in risk parameters |  | **(13)** |  | **(7)** |  | **60** |  | **40** |
| Other changes in net exposure | **1808** | **80** | **(179)** | **(18)** | **(49)** | **(24)** | **1580** | **38** |
| Other (P&L only items) |  | **-** |  | **-** |  | **12** |  | **12** |
| **Income statement (releases)/charges** |  | **18** |  | **79** |  | **74** |  | **171** |
| Amounts written-off | **-** | **-** | **-** | **-** | **(29)** | **(29)** | **(29)** | **(29)** |
| Unwinding of discount |  | **-** |  | **-** |  | **(17)** |  | **(17)** |
| **At 30 June 2025** | **7112** | **176** | **1412** | **177** | **945** | **727** | **9469** | **1080** |
| **Net carrying amount** | **6936** |  | **1235** |  | **218** |  | **8389** |  |
| **At 1 January 2024** | 5240 | 149 | 1657 | 238 | 963 | 758 | 7860 | 1145 |
| 2024 movements | 477 | (4) | (432) | (38) | (118) | (117) | (73) | (159) |
| **At 30 June 2024** | 5717 | 145 | 1225 | 200 | 845 | 641 | 7787 | 986 |
| **Net carrying amount** | 5572 |  | 1025 |  | 204 |  | 6801 |  |

---

-

Total ECL increased, driven primarily by the acquisition of Sainsbury's Bank loan balances into Stage 1 (around £1.2 billion at 30 June 2025) alongside continued organic loan book growth.

-

Stable arrears performance was observed during 2025 to date, which is reflected in the good book ECL, with coverage levels showing a modest reduction since 31 December 2024.

-

Flow rates into Stage 3 remained stable during the first half of 2025, in line with broader portfolio trends on arrears, with overall Stage 3 balances increasing as a result of reduced debt sale activity.

-

Write-off occurs once recovery activity with the customer has been concluded or there are no further recoveries expected, but no later than six years after default.

Risk and capital management continued

Credit risk - Banking activities continued

 **Flow statements (reviewed)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **Total** | **Total** |
| <br>**Commercial & Institutional - corporate** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** |
| **At 1 January 2025** | **62575** | **175** | **11450** | **273** | **1562** | **659** | **75587** | **1107** |
| Currency translation and other adjustments | **(574)** |  | **(22)** |  | **9** | **2** | **(587)** | **2** |
| Inter-group transfers | **84** |  | **27** | **1** | **-** | **-** | **111** | **1** |
| Transfers from Stage 1 to Stage 2 | **(5494)** | **(19)** | **5494** | **19** | **-** | **-** | **-** | **-** |
| Transfers from Stage 2 to Stage 1 | **4080** | **51** | **(4080)** | **(51)** | **-** | **-** | **-** | **-** |
| Transfers to Stage 3 | **(146)** | **(1)** | **(457)** | **(28)** | **603** | **29** | **-** | **-** |
| Transfers from Stage 3 | **31** | **4** | **58** | **11** | **(89)** | **(15)** | **-** | **-** |
| Net re-measurement of ECL on stage transfer |  | **(42)** |  | **54** |  | **152** |  | **164** |
| Changes in risk parameters |  | **(33)** |  | **(7)** |  | **20** |  | **(20)** |
| Other changes in net exposure | **1840** | **14** | **(990)** | **(33)** | **(326)** | **2** | **524** | **(17)** |
| Other (P&L only items) |  | **-** |  | **-** |  | **(17)** |  | **(17)** |
| **Income statement (releases)/charges** |  | **(61)** |  | **14** |  | **157** |  | **110** |
| Amounts written-off | **-** |  |  |  | **(86)** | **(86)** | **(86)** | **(86)** |
| Unwinding of discount |  |  |  |  |  | **(13)** |  | **(13)** |
| **At 30 June 2025** | **62396** | **149** | **11480** | **239** | **1673** | **750** | **75549** | **1138** |
| **Net carrying amount** | **62247** |  | **11241** |  | **923** |  | **74411** |  |
| **At 1 January 2024** | 61402 | 226 | 12275 | 344 | 1454 | 602 | 75131 | 1172 |
| 2024 movements | 1914 | (52) | (2180) | (81) | 6 | 9 | (260) | (124) |
| **At 30 June 2024** | 63316 | 174 | 10095 | 263 | 1460 | 611 | 74871 | 1048 |
| **Net carrying amount** | 63142 |  | 9832 |  | 849 |  | 73823 |  |

---

-

ECL increased in H1 2025 due to the impact of a small number of flows into default. The charge on those cases is seen through net re-measurement of ECL on stage transfer, reflecting the difference between good book ECL and defaulted ECL.

-

Performing ECL coverage decreased in line with ECL reductions in the portfolio book as risk metrics improved, in particular from point-in-time economics inputs, and reduced post model adjustments.

-

Stage 2 exposure levels were stable in the period as flows into Stage 2 were broadly offset through flows back to Stage 1, repayments, and flows into Stage 3.

Risk and capital management continued

Credit risk - Banking activities continued

 **Flow statements (reviewed)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **Total** | **Total** |
| <br>**Commercial & Institutional - property** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** |
| **At 1 January 2025** | **27468** | **77** | **2980** | **61** | **590** | **225** | **31038** | **363** |
| Currency translation and other adjustments | **5** | **-** | **-** | **-** | **8** | **13** | **13** | **13** |
| Inter-group transfers | **(79)** | **-** | **(11)** | **(1)** | **-** | **-** | **(90)** | **(1)** |
| Transfers from Stage 1 to Stage 2 | **(1429)** | **(4)** | **1429** | **4** | **-** | **-** | **-** | **-** |
| Transfers from Stage 2 to Stage 1 | **928** | **12** | **(928)** | **(12)** | **-** | **-** | **-** | **-** |
| Transfers to Stage 3 | **(3)** | **-** | **(83)** | **(4)** | **86** | **4** | **-** | **-** |
| Transfers from Stage 3 | **16** | **2** | **16** | **2** | **(32)** | **(4)** | **-** | **-** |
| Net re-measurement of ECL on stage transfer |  | **(10)** |  | **17** |  | **9** |  | **16** |
| Changes in risk parameters |  | **(12)** |  | **(5)** |  | **7** |  | **(10)** |
| Other changes in net exposure | **1425** | **6** | **(190)** | **(4)** | **(136)** | **(17)** | **1099** | **(15)** |
| Other (P&L only items) |  | **-** |  | **-** |  | **-** |  | **-** |
| **Income statement (releases)/charges** |  | **(16)** |  | **8** |  | **(1)** |  | **(9)** |
| Amounts written-off | **-** | **-** | **-** | **-** | **(10)** | **(10)** | **(10)** | **(10)** |
| Unwinding of discount |  | **-** |  | **-** |  | **(5)** |  | **(5)** |
| **At 30 June 2025** | **28331** | **71** | **3213** | **58** | **506** | **222** | **32050** | **351** |
| **Net carrying amount** | **28260** |  | **3155** |  | **284** |  | **31699** |  |
| **At 1 January 2024** | 26040 | 94 | 3155 | 89 | 606 | 195 | 29801 | 378 |
| 2024 movements | 486 | (26) | (180) | (27) | (43) | 32 | 263 | (21) |
| **At 30 June 2024** | 26526 | 68 | 2975 | 62 | 563 | 227 | 30064 | 357 |
| **Net carrying amount** | 26458 |  | 2913 |  | 336 |  | 29707 |  |

---

-

ECL reduced marginally across all stages in the first half of 2025. Flows to Stage 3 and associated charges were notably reduced from the first half of 2024 and more than offset by a reduction on other existing Stage 3 exposures.

-

Exposures in Stage 2 increased as flows into Stage 2 were higher than flows out and repayments, but remained at broadly 10% of total good book exposure.

-

Performing ECL reductions were driven by improved risk metrics and reductions in post model adjustments.

Risk and capital management continued

Credit risk - Banking activities continued

 **Flow statements (reviewed)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **Total** | **Total** |
| <br>**Commercial & Institutional - other** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** | **Financial**<br>**assets**<br>**£m** | <br> **ECL**<br>**£m** |
| **At 1 January 2025** | **93724** | **37** | **1739** | **12** | **123** | **57** | **95586** | **106** |
| Currency translation and other adjustments | **(1287)** | **-** | **(8)** | **-** | **-** | **8** | **(1295)** | **8** |
| Inter-group transfers | **(5)** | **-** | **(16)** | **-** | **-** | **-** | **(21)** | **-** |
| Transfers from Stage 1 to Stage 2 | **(541)** | **(1)** | **541** | **1** | **-** | **-** | **-** | **-** |
| Transfers from Stage 2 to Stage 1 | **1266** | **5** | **(1266)** | **(5)** | **-** | **-** | **-** | **-** |
| Transfers to Stage 3 | **(64)** | **-** | **(18)** | **(1)** | **82** | **1** | **-** | **-** |
| Transfers from Stage 3 | **3** | **-** | **4** | **1** | **(7)** | **(1)** | **-** | **-** |
| Net re-measurement of ECL on stage transfer |  | **(3)** |  | **2** |  | **38** |  | **37** |
| Changes in risk parameters |  | **(6)** |  | **-** |  | **17** |  | **11** |
| Other changes in net exposure | **(25)** | **6** | **(96)** | **(1)** | **(16)** | **-** | **(137)** | **5** |
| Other (P&L only items) |  | **-** |  | **-** |  | **-** |  | **-** |
| **Income statement (releases)/charges** |  | **(3)** |  | **1** |  | **55** |  | **53** |
| Amounts written-off | **-** | **-** | **-** | **-** | **(1)** | **(1)** | **(1)** | **(1)** |
| Unwinding of discount |  | **-** |  | **-** |  | **(1)** |  | **(1)** |
| **At 30 June 2025** | **93071** | **38** | **880** | **9** | **181** | **118** | **94132** | **165** |
| **Net carrying amount** | **93033** |  | **871** |  | **63** |  | **93967** |  |
| **At 1 January 2024** | 88860 | 36 | 1599 | 14 | 101 | 22 | 90560 | 72 |
| 2024 movements | 889 | (3) | (628) | (5) | 34 | 32 | 295 | 24 |
| **At 30 June 2024** | 89749 | 33 | 971 | 9 | 135 | 54 | 90855 | 96 |
| **Net carrying amount** | 89716 |  | 962 |  | 81 |  | 90759 |  |

---

-

ECL increased, primarily driven by Stage 3 exposures that defaulted in the first half of 2025.

-

The portion of good book exposure in Stage 2 reduced with flows from Stage 1 into Stage 2 more than offset by flows back to Stage 1.

-

Despite the increase in Stage 3 exposure, combined Stage 2 and Stage 3 exposure reduced and continued to be less than 2% of the total assets.

Risk and capital management continued

Credit risk - Banking activities continued

 **Stage 2 decomposition by a significant increase in credit risk trigger**

The tables that follow show decomposition for the Personal and Non-Personal portfolios.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Mortgages** | **Mortgages** | **Credit cards** | **Credit cards** | **Other** | **Other** | **Total** | **Total** |
| <br> **30 June 2025** | **£m** | **%** | **£m** | **%** | **£m** | **%** | **£m** | **%** |
| **Personal trigger (1)** |  |  |  |  |  |  |  |  |
| PD movement | **14701** | **68.3** | **1412** | **73.7** | **771** | **53.0** | **16884** | **67.9** |
| PD persistence | **4076** | **19.0** | **372** | **19.4** | **279** | **19.2** | **4727** | **19.0** |
| Adverse credit bureau recorded with credit reference agency | **956** | **4.5** | **81** | **4.2** | **124** | **8.5** | **1161** | **4.7** |
| Forbearance support provided | **227** | **1.1** | **2** | **0.1** | **10** | **0.7** | **239** | **1.0** |
| Customers in collections | **169** | **0.8** | **12** | **0.6** | **21** | **1.4** | **202** | **0.8** |
| Collective SICR and other reasons (2) | **1217** | **5.7** | **38** | **2.0** | **236** | **16.2** | **1491** | **6.0** |
| Days past due >30 | **131** | **0.6** | **-** | **-** | **14** | **1.0** | **145** | **0.6** |
|  | **21477** | **100.0** | **1917** | **100.0** | **1455** | **100.0** | **24849** | **100.0** |
| 31 December 2024 |  |  |  |  |  |  |  |  |
| **Personal trigger (1)** |  |  |  |  |  |  |  |  |
| PD movement | 14480 | 68.8 | 1425 | 72.9 | 809 | 49.9 | 16714 | 67.8 |
| PD persistence | 3951 | 18.8 | 414 | 21.2 | 388 | 23.9 | 4753 | 19.3 |
| Adverse credit bureau recorded with credit reference agency | 936 | 4.4 | 71 | 3.6 | 119 | 7.3 | 1126 | 4.6 |
| Forbearance support provided | 189 | 0.9 | 1 | 0.1 | 9 | 0.6 | 199 | 0.8 |
| Customers in collections | 169 | 0.8 | 3 | 0.2 | 2 | 0.1 | 174 | 0.7 |
| Collective SICR and other reasons (2) | 1248 | 5.9 | 39 | 2.0 | 290 | 17.9 | 1577 | 6.4 |
| Days past due >30 | 88 | 0.4 | - | - | 5 | 0.3 | 93 | 0.4 |
|  | 21061 | 100.0 | 1953 | 100.0 | 1622 | 100.0 | 24636 | 100.0 |

---

For the notes to the table refer to the following page.

-

The level of PD driven deterioration remained consistent with 31 December 2024, reflecting stability in portfolio PDs and underlying portfolio arrears trends.

-

Higher risk mortgage customers who utilised the new Mortgage Charter measures continued to be collectively migrated into Stage 2 and were captured in the collective SICR and other reasons category.

-

Accounts that were less than 30 days past due continued to represent the vast majority of the Stage 2 population.

Risk and capital management continued

Credit risk - Banking activities continued

 **Stage 2 decomposition by a significant increase in credit risk trigger**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Corporate and other (3)** | **Corporate and other (3)** | **Financial institutions** | **Financial institutions** | **Sovereign** | **Sovereign** | **Total** | **Total** |
| <br> **30 June 2025** | **£m** | **%** | **£m** | **%** | **£m** | **%** | **£m** | **%** |
| **Non-Personal trigger (1)** |  |  |  |  |  |  |  |  |
| PD movement | **11814** | **80.0** | **284** | **67.3** | **141** | **99.3** | **12239** | **79.9** |
| PD persistence | **226** | **1.5** | **3** | **0.7** | **-** | **-** | **229** | **1.5** |
| Heightened Monitoring and Risk of Credit Loss | **1761** | **11.9** | **11** | **2.6** | **-** | **-** | **1772** | **11.5** |
| Forbearance support provided | **345** | **2.3** | **-** | **-** | **-** | **-** | **345** | **2.2** |
| Customers in collections | **33** | **0.2** | **-** | **-** | **-** | **-** | **33** | **0.2** |
| Collective SICR and other reasons (2) | **380** | **2.6** | **124** | **29.4** | **1** | **0.7** | **505** | **3.3** |
| Days past due >30 | **221** | **1.5** | **-** | **-** | **-** | **-** | **221** | **1.4** |
|  | **14780** | **100.0** | **422** | **100.0** | **142** | **100.0** | **15344** | **100.0** |
| 31 December 2024 |  |  |  |  |  |  |  |  |
| **Non-Personal trigger (1)** |  |  |  |  |  |  |  |  |
| PD movement | 11800 | 81.6 | 971 | 78.2 | - | - | 12771 | 80.6 |
| PD persistence | 310 | 2.1 | 2 | 0.2 | - | - | 312 | 2.0 |
| Heightened Monitoring and Risk of Credit Loss | 1599 | 11.1 | 83 | 6.7 | 132 | 99.2 | 1814 | 11.5 |
| Forbearance support provided | 229 | 1.6 | - | - | - | - | 229 | 1.4 |
| Customers in collections | 34 | 0.2 | - | - | - | - | 34 | 0.2 |
| Collective SICR and other reasons (2) | 396 | 2.7 | 172 | 13.9 | 1 | 0.8 | 569 | 3.6 |
| Days past due >30 | 96 | 0.7 | 13 | 1.0 | - | - | 109 | 0.7 |
|  | 14464 | 100.0 | 1241 | 100.0 | 133 | 100.0 | 15838 | 100.0 |

---

(1) The table is prepared on a hierarchical basis from top to bottom, for example, accounts with PD deterioration may also trigger backstop(s) but are only reported under PD deterioration.

(2) Includes cases where a PD assessment cannot be made and accounts where the PD has deteriorated beyond a prescribed backstop threshold aligned to risk management practices.

-

Stage 2 loans were broadly stable compared to 31 December 2024. PD movement continued to capture the vast majority of loans in Stage 2, with values marginally reduced, reflective of improved PDs from point-in-time economic metrics.

Risk and capital management continued

Credit risk - Banking activities continued

 **Asset quality (reviewed)**

The table below shows asset quality bands of gross loans and ECL, by stage, for the Personal portfolio.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Gross loans** | **Gross loans** | **Gross loans** | **Gross loans** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions coverage** | **ECL provisions coverage** | **ECL provisions coverage** | **ECL provisions coverage** |
| <br>**30 June 2025** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1%**<br> | **Stage 2%**<br> | **Stage 3%**<br> | **Total %**<br> |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **111678** | **8954** | **-** | **120632** | **24** | **15** | **-** | **39** | **-** | **0.2** | **-** | **-** |
| AQ5-AQ8 | **77908** | **11465** | **-** | **89373** | **35** | **29** | **-** | **64** | **-** | **0.3** | **-** | **0.1** |
| AQ9  | **157** | **1058** | **-** | **1215** | **-** | **7** | **-** | **7** | **-** | **0.7** | **-** | **0.6** |
| AQ10  | **-** | **-** | **2116** | **2116** | **-** | **-** | **276** | **276** | **-** | **-** | **13.0** | **13.0** |
|  | **189743** | **21477** | **2116** | **213336** | **59** | **51** | **276** | **386** | **-** | **0.2** | **13.0** | **0.2** |
| **Credit cards** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **130** | **-** | **-** | **130** | **1** | **-** | **-** | **1** | **0.8** | **-** | **-** | **0.8** |
| AQ5-AQ8 | **5858** | **1817** | **-** | **7675** | **126** | **178** | **-** | **304** | **2.2** | **9.8** | **-** | **4.0** |
| AQ9  | **23** | **100** | **-** | **123** | **1** | **19** | **-** | **20** | **4.4** | **19.0** | **-** | **16.3** |
| AQ10  | **-** | **-** | **209** | **209** | **-** | **-** | **147** | **147** | **-** | **-** | **70.3** | **70.3** |
|  | **6011** | **1917** | **209** | **8137** | **128** | **197** | **147** | **472** | **2.1** | **10.3** | **70.3** | **5.8** |
| **Other personal** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **751** | **104** | **-** | **855** | **6** | **11** | **-** | **17** | **0.8** | **10.6** | **-** | **2.0** |
| AQ5-AQ8 | **8214** | **1209** | **-** | **9423** | **167** | **131** | **-** | **298** | **2.0** | **10.8** | **-** | **3.2** |
| AQ9  | **59** | **142** | **-** | **201** | **5** | **36** | **-** | **41** | **8.5** | **25.4** | **-** | **20.4** |
| AQ10  | **-** | **-** | **960** | **960** | **-** | **-** | **743** | **743** | **-** | **-** | **77.4** | **77.4** |
|  | **9024** | **1455** | **960** | **11439** | **178** | **178** | **743** | **1099** | **2.0** | **12.2** | **77.4** | **9.6** |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **112559** | **9058** | **-** | **121617** | **31** | **26** | **-** | **57** | **-** | **0.3** | **-** | **0.1** |
| AQ5-AQ8 | **91980** | **14491** | **-** | **106471** | **328** | **338** | **-** | **666** | **0.4** | **2.3** | **-** | **0.6** |
| AQ9  | **239** | **1300** | **-** | **1539** | **6** | **62** | **-** | **68** | **2.5** | **4.8** | **-** | **4.4** |
| AQ10  | **-** | **-** | **3285** | **3285** | **-** | **-** | **1166** | **1166** | **-** | **-** | **35.5** | **35.5** |
|  | **204778** | **24849** | **3285** | **232912** | **365** | **426** | **1166** | **1957** | **0.2** | **1.7** | **35.5** | **0.8** |

---

Risk and capital management continued

Credit risk - Banking activities continued

 **Asset quality (reviewed)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Gross loans | Gross loans | Gross loans | Gross loans | ECL provisions | ECL provisions | ECL provisions | ECL provisions | ECL provisions coverage | ECL provisions coverage | ECL provisions coverage | ECL provisions coverage |
|  | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | % | % | % | % |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 104793 | 8416 | - | 113209 | 29 | 16 | - | 45 | - | 0.2 | - | - |
| AQ5-AQ8 | 81263 | 11683 | - | 92946 | 48 | 38 | - | 86 | 0.1 | 0.3 | - | 0.1 |
| AQ9  | 194 | 962 | - | 1156 | - | 6 | - | 6 | - | 0.6 | - | 0.5 |
| AQ10  | - | - | 2535 | 2535 | - | - | 325 | 325 | - | - | 12.8 | 12.8 |
|  | 186250 | 21061 | 2535 | 209846 | 77 | 60 | 325 | 462 | - | 0.3 | 12.8 | 0.2 |
| **Credit cards** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 128 | - | - | 128 | 1 | - | - | 1 | 0.8 | - | - | 0.8 |
| AQ5-AQ8 | 4650 | 1866 | - | 6516 | 75 | 169 | - | 244 | 1.6 | 9.1 | - | 3.7 |
| AQ9  | 23 | 87 | - | 110 | 1 | 17 | - | 18 | 4.4 | 19.5 | - | 16.4 |
| AQ10  | - | - | 176 | 176 | - | - | 118 | 118 | - | - | 67.1 | 67.1 |
|  | 4801 | 1953 | 176 | 6930 | 77 | 186 | 118 | 381 | 1.6 | 9.5 | 67.1 | 5.5 |
| **Other personal** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 691 | 127 | - | 818 | 6 | 14 | - | 20 | 0.9 | 11.0 | - | 2.4 |
| AQ5-AQ8 | 6521 | 1359 | - | 7880 | 120 | 134 | - | 254 | 1.8 | 9.9 | - | 3.2 |
| AQ9  | 55 | 136 | - | 191 | 4 | 35 | - | 39 | 7.3 | 25.7 | - | 20.4 |
| AQ10  | - | - | 860 | 860 | - | - | 656 | 656 | - | - | 76.3 | 76.3 |
|  | 7267 | 1622 | 860 | 9749 | 130 | 183 | 656 | 969 | 1.8 | 11.3 | 76.3 | 9.9 |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 105612 | 8543 | - | 114155 | 36 | 30 | - | 66 | - | 0.4 | - | 0.1 |
| AQ5-AQ8 | 92434 | 14908 | - | 107342 | 243 | 341 | - | 584 | 0.3 | 2.3 | - | 0.5 |
| AQ9  | 272 | 1185 | - | 1457 | 5 | 58 | - | 63 | 1.8 | 4.9 | - | 4.3 |
| AQ10  | - | - | 3571 | 3571 | - | - | 1099 | 1099 | - | - | 30.8 | 30.8 |
|  | 198318 | 24636 | 3571 | 226525 | 284 | 429 | 1099 | 1812 | 0.1 | 1.7 | 30.8 | 0.8 |

---

-

The portfolios acquired from Sainsbury's Bank, increased exposure to AQ5-AQ8 within the credit cards and other personal segments.

-

Stage 3 inflows remained broadly stable. The reduction in Stage3/AQ10 ratio was influenced at a total level by both the acquisition of the Sainsbury's Bank portfolio on unsecured and an enhancement to the application of the definition of default used on mortgages. The latter resulted in a £0.4 billion migration of loans from Stage 3/AQ10 back to the good book.

Risk and capital management continued

Credit risk - Banking activities continued

 **Asset quality (reviewed)**

The table below shows asset quality bands of gross loans and ECL, by stage, for the Non-Personal portfolio.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Gross loans** | **Gross loans** | **Gross loans** | **Gross loans** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions** | **ECL provisions coverage** | **ECL provisions coverage** | **ECL provisions coverage** | **ECL provisions coverage** |
| <br>**30 June 2025** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1**<br>**£m** | **Stage 2**<br>**£m** | **Stage 3**<br>**£m** | **Total**<br>**£m** | **Stage 1%**<br> | **Stage 2%**<br> | **Stage 3%**<br> | **Total %**<br> |
| **Corporate and other** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **40896** | **2555** | **-** | **43451** | **28** | **18** | **-** | **46** | **0.1** | **0.7** | **-** | **0.1** |
| AQ5-AQ8 | **54804** | **11982** | **-** | **66786** | **204** | **268** | **-** | **472** | **0.4** | **2.2** | **-** | **0.7** |
| AQ9  | **37** | **243** | **-** | **280** | **-** | **19** | **-** | **19** | **-** | **7.8** | **-** | **6.8** |
| AQ10  | **-** | **-** | **2394** | **2394** | **-** | **-** | **990** | **990** | **-** | **-** | **41.4** | **41.4** |
|  | **95737** | **14780** | **2394** | **112911** | **232** | **305** | **990** | **1527** | **0.2** | **2.1** | **41.4** | **1.4** |
| **Financial institutions** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **64735** | **260** | **-** | **64995** | **20** | **3** | **-** | **23** | **-** | **1.2** | **-** | **-** |
| AQ5-AQ8 | **5599** | **161** | **-** | **5760** | **17** | **5** | **-** | **22** | **0.3** | **3.1** | **-** | **0.4** |
| AQ9  | **1** | **1** | **-** | **2** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** |
| AQ10  | **-** | **-** | **127** | **127** | **-** | **-** | **99** | **99** | **-** | **-** | **78.0** | **78.0** |
|  | **70335** | **422** | **127** | **70884** | **37** | **8** | **99** | **144** | **0.1** | **1.9** | **78.0** | **0.2** |
| **Sovereign** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **894** | **1** | **-** | **895** | **14** | **1** | **-** | **15** | **1.6** | **100.0** | **-** | **1.7** |
| AQ5-AQ8 | **131** | **-** | **-** | **131** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** |
| AQ 9 | **-** | **141** | **-** | **141** | **-** | **1** | **-** | **1** | **-** | **0.7** | **-** | **0.7** |
| AQ10  | **-** | **-** | **17** | **17** | **-** | **-** | **6** | **6** | **-** | **-** | **35.3** | **35.3** |
|  | **1025** | **142** | **17** | **1184** | **14** | **2** | **6** | **22** | **1.4** | **1.4** | **35.3** | **1.9** |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | **106525** | **2816** | **-** | **109341** | **62** | **22** | **-** | **84** | **0.1** | **0.8** | **-** | **0.1** |
| AQ5-AQ8 | **60534** | **12143** | **-** | **72677** | **221** | **273** | **-** | **494** | **0.4** | **2.3** | **-** | **0.7** |
| AQ9  | **38** | **385** | **-** | **423** | **-** | **20** | **-** | **20** | **-** | **5.2** | **-** | **4.7** |
| AQ10  | **-** | **-** | **2538** | **2538** | **-** | **-** | **1095** | **1095** | **-** | **-** | **43.1** | **43.1** |
|  | **167097** | **15344** | **2538** | **184979** | **283** | **315** | **1095** | **1693** | **0.2** | **2.1** | **43.1** | **0.9** |

---

Risk and capital management continued

Credit risk - Banking activities continued

 **Asset quality (reviewed)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Gross loans | Gross loans | Gross loans | Gross loans | ECL provisions | ECL provisions | ECL provisions | ECL provisions | ECL provisions coverage | ECL provisions coverage | ECL provisions coverage | ECL provisions coverage |
|  | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | % | % | % | % |
| **Corporate and other** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 41509 | 2409 | - | 43918 | 32 | 19 | - | 51 | 0.1 | 0.8 | - | 0.1 |
| AQ5-AQ8 | 53448 | 11783 | - | 65231 | 232 | 306 | - | 538 | 0.4 | 2.6 | - | 0.8 |
| AQ9  | 34 | 272 | - | 306 | - | 19 | - | 19 | - | 7.0 | - | 6.2 |
| AQ10  | - | - | 2279 | 2279 | - | - | 896 | 896 | - | - | 39.3 | 39.3 |
|  | 94991 | 14464 | 2279 | 111734 | 264 | 344 | 896 | 1504 | 0.3 | 2.4 | 39.3 | 1.4 |
| **Financial institutions** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 64845 | 233 | - | 65078 | 21 | 2 | - | 23 | - | 0.9 | - | - |
| AQ5-AQ8 | 4176 | 996 | - | 5172 | 17 | 9 | - | 26 | 0.4 | 0.9 | - | 0.5 |
| AQ9  | - | 12 | - | 12 | - | 1 | - | 1 | - | 8.3 | - | 8.3 |
| AQ10  | - | - | 59 | 59 | - | - | 40 | 40 | - | - | 67.8 | 67.8 |
|  | 69021 | 1241 | 59 | 70321 | 38 | 12 | 40 | 90 | 0.1 | 1.0 | 67.8 | 0.1 |
| **Sovereign** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 1364 | 1 | - | 1365 | 12 | 1 | - | 13 | 0.9 | 100.0 | - | 1.0 |
| AQ5-AQ8 | 127 | - | - | 127 | - | - | - | - | - | - | - | - |
| AQ9  | - | 132 | - | 132 | - | 1 | - | 1 | - | 0.8 | - | 0.8 |
| AQ10  | - | - | 21 | 21 | - | - | 5 | 5 | - | - | 23.8 | 23.8 |
|  | 1491 | 133 | 21 | 1645 | 12 | 2 | 5 | 19 | 0.8 | 1.5 | 23.8 | 1.2 |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 | 107718 | 2643 | - | 110361 | 65 | 22 | - | 87 | 0.1 | 0.8 | - | 0.1 |
| AQ5-AQ8 | 57751 | 12779 | - | 70530 | 249 | 315 | - | 564 | 0.4 | 2.5 | - | 0.8 |
| AQ9  | 34 | 416 | - | 450 | - | 21 | - | 21 | - | 5.1 | - | 4.7 |
| AQ10  | - | - | 2359 | 2359 | - | - | 941 | 941 | - | - | 39.9 | 39.9 |
|  | 165503 | 15838 | 2359 | 183700 | 314 | 358 | 941 | 1613 | 0.2 | 2.3 | 39.9 | 0.9 |

---

-

Asset quality was broadly stable since 31 December 2024. The majority of exposure for corporates and other continued to be in the AQ5 to AQ8 band, which also accounted for the largest increase in the period.

-

As expected, exposures in higher AQ bands attracted higher coverage ratios.

Risk and capital management continued

Credit risk - Trading activities

This section details the credit risk profile of NatWest Group's trading activities.

 **Securities financing transactions and collateral (reviewed)**

The table below shows securities financing transactions in Commercial & Institutional and Central items & other. Balance sheet captions include balances held at all classifications under IFRS.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Reverse repos**  | **Reverse repos**  | **Reverse repos**  | **Repos**  | **Repos**  | **Repos**  |
| <br>**30 June 2025** | <br> **Total** <br>**£m**  | **Of which:** <br>**can be offset** <br>**£m**  | **Outside netting** <br>**arrangements** <br>**£m**  | <br> **Total** <br>**£m**  | **Of which:** <br>**can be offset** <br>**£m**  | **Outside netting** <br>**arrangements** <br>**£m**  |
| Gross | **95498** | **94568** | **930** | **86696** | **83992** | **2704** |
| IFRS offset | **(33802)** | **(33802)** | **-** | **(33802)** | **(33802)** | **-** |
| Carrying value | **61696** | **60766** | **930** | **52894** | **50190** | **2704** |
| Master netting arrangements | **(517)** | **(517)** | **-** | **(517)** | **(517)** | **-** |
| Securities collateral | **(59424)** | **(59424)** | **-** | **(49673)** | **(49673)** | **-** |
| Potential for offset not recognised under IFRS | **(59941)** | **(59941)** | **-** | **(50190)** | **(50190)** | **-** |
| Net | **1755** | **825** | **930** | **2704** | **-** | **2704** |
| 31 December 2024 |  |  |  |  |  |  |
| Gross | 87901 | 87861 | 40 | 68024 | 67321 | 703 |
| IFRS offset | (23883) | (23883) | - | (23883) | (23883) | - |
| Carrying value | 64018 | 63978 | 40 | 44141 | 43438 | 703 |
| Master netting arrangements | (1549) | (1549) | - | (1549) | (1549) | - |
| Securities collateral | (62217) | (62217) | - | (41889) | (41889) | - |
| Potential for offset not recognised under IFRS | (63766) | (63766) | - | (43438) | (43438) | - |
| Net | 252 | 212 | 40 | 703 | - | 703 |

---

Risk and capital management continued

Credit risk - Trading activities continued

 **Derivatives (reviewed)**

The table below shows derivatives by type of contract. The master netting agreements and collateral shown do not result in a net presentation on the balance sheet under IFRS. A significant proportion of the derivatives relate to trading activities in Commercial & Institutional. The table also includes hedging derivatives in Central items & other.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | **Notional** | **Notional** | **Notional** | **Notional** | | | |  |  |  |
|  | | | | | | | | Notional | Assets | Liabilities |
|  | **GBP**<br>**£bn** | **USD**<br>**£bn** | **EUR**<br>**£bn** | **Other**<br>**£bn** | <br> **Total**<br>**£bn** | <br> **Assets**<br>**£m** | <br> **Liabilities**<br>**£m** | £bn | £m | £m |
| Gross exposure |  |  |  |  |  | **90087** | **84878** |  | 97152 | 93109 |
| IFRS offset |  |  |  |  |  | **(17077)** | **(18895)** |  | (18746) | (21027) |
| **Carrying value** | **4137** | **3397** | **5907** | **1165** | **14606** | **73010** | **65983** | 13628 | 78406 | 72082 |
| Of which: |  |  |  |  |  |  |  |  |  |  |
| Interest rate (1) | **3793** | **1824** | **5183** | **208** | **11008** | **35028** | **28317** | 10333 | 37499 | 31532 |
| Exchange rate | **341** | **1569** | **717** | **957** | **3584** | **37897** | **37496** | 3279 | 40797 | 40306 |
| Credit | **1** | **4** | **7** | **-** | **12** | **85** | **170** | 14 | 110 | 244 |
| Equity and commodity | **2** | **-** | **-** | **-** | **2** | **-** | **-** | 2 | - | - |
| **Carrying value** | **4137** | **3397** | **5907** | **1165** | **14606** | **73010** | **65983** | 13628 | 78406 | 72082 |
| Counterparty mark-to-market netting |  |  |  |  |  | **(57011)** | **(57011)** |  | (61883) | (61883) |
| Cash collateral |  |  |  |  |  | **(9041)** | **(4723)** |  | (10005) | (5801) |
| Securities collateral |  |  |  |  |  | **(3814)** | **(1274)** |  | (4072) | (896) |
| **Net exposure** |  |  |  |  |  | **3144** | **2975** |  | 2446 | 3502 |
| Banks (2) |  |  |  |  |  | **175** | **348** |  | 214 | 345 |
| Other financial institutions (3) |  |  |  |  |  | **1839** | **1286** |  | 1429 | 1456 |
| Corporate (4) |  |  |  |  |  | **1071** | **1318** |  | 769 | 1669 |
| Government (5) |  |  |  |  |  | **59** | **23** |  | 34 | 32 |
| **Net exposure** |  |  |  |  |  | **3144** | **2975** |  | 2446 | 3502 |
| UK |  |  |  |  |  | **1494** | **1710** |  | 1061 | 1774 |
| Europe |  |  |  |  |  | **994** | **873** |  | 875 | 978 |
| US |  |  |  |  |  | **555** | **330** |  | 443 | 604 |
| RoW |  |  |  |  |  | **101** | **62** |  | 67 | 146 |
| **Net exposure** |  |  |  |  |  | **3144** | **2975** |  | 2446 | 3502 |
| **Asset quality of uncollateralised derivative assets** |  |  |  |  |  |  |  |  |  |  |
| AQ1-AQ4 |  |  |  |  |  | **2500** |  |  | 2049 |  |
| AQ5-AQ8 |  |  |  |  |  | **641** |  |  | 394 |  |
| AQ9-AQ10 |  |  |  |  |  | **3** |  |  | 3 |  |
| **Net exposure** |  |  |  |  |  | **3144** |  |  | 2446 |  |

---

(1) The notional amount of interest rate derivatives included £7,725 billion (31 December 2024 - £7,321 billion) in respect of contracts cleared through central clearing counterparties.

(2) Transactions with certain counterparties with whom NatWest Group has netting arrangements but collateral is not posted on a daily basis; certain transactions with specific terms that may not fall within netting and collateral arrangements; derivative positions in certain jurisdictions where the collateral agreements are not deemed to be legally enforceable.

(3) Includes transactions with securitisation vehicles and funds where collateral posting is contingent on NatWest Group's external rating.

(4) Mainly large corporates with whom NatWest Group may have netting arrangements in place, but operational capability does not support collateral posting.

(5) Sovereigns and supranational entities with no collateral arrangements, collateral arrangements that are not considered enforceable, or one-way collateral agreements in their favour.

Risk and capital management continued

Credit risk - Trading activities continued

 **Debt securities (reviewed)**

The table below shows debt securities held at mandatory fair value through profit or loss by issuer as well as ratings based on the lowest of Standard & Poor's, Moody's and Fitch. Refer to Note 9 Trading assets and liabilities for details on short positions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Central and local government** | **Central and local government** | **Central and local government** |  |  |  |
| | | | | **Financial institutions** | **Corporate** | **Total** |
| <br>**30 June 2025** | **UK**<br>**£m** | **US**<br>**£m** | **Other**<br>**£m** | **£m** | **£m** | **£m** |
| AAA | **-** | **-** | **2610** | **1572** | **-** | **4182** |
| AA to AA+ | **-** | **6832** | **562** | **393** | **2** | **7789** |
| A to AA- | **3961** | **-** | **2618** | **955** | **95** | **7629** |
| BBB- to A- | **-** | **-** | **916** | **411** | **549** | **1876** |
| Non-investment grade | **-** | **-** | **-** | **65** | **132** | **197** |
| Total | **3961** | **6832** | **6706** | **3396** | **778** | **21673** |
| 31 December 2024 |  |  |  |  |  |  |
| AAA | - | - | 1335 | 1368 | - | 2703 |
| AA to AA+ | - | 3734 | 74 | 569 | 2 | 4379 |
| A to AA- | 2077 | - | 1266 | 381 | 519 | 4243 |
| BBB- to A- | - | - | 831 | 562 | 885 | 2278 |
| Non-investment grade | - | - | - | 108 | 167 | 275 |
| Total | 2077 | 3734 | 3506 | 2988 | 1573 | 13878 |

---

Risk and capital management continued

Capital, liquidity and funding risk

 **Introduction**

NatWest Group takes a comprehensive approach to the management of capital, liquidity and funding, underpinned by frameworks, risk appetite and policies, to manage and mitigate capital, liquidity and funding risks. The framework ensures the tools and capability are in place to facilitate the management and mitigation of risk ensuring that NatWest Group operates within its regulatory requirements and risk appetite.

 **Key developments since 31 December 2024**

---

| | |
|:---|:---|
| **CET1 ratio**<br> 13.6%<br> (2024 - 13.6%) | The CET1 ratio remained static due to a £0.9 billion increase in CET1 capital offset by a £6.9 billion increase in RWAs. The CET1 capital increase was mainly driven by an attributable profit to ordinary shareholders in the period of £2.5 billion and other movements on reserves and regulatory adjustments of £0.4 billion partially offset by a share buyback of £0.8 billion and a foreseeable ordinary dividend accrual of £1.2 billion.  |
| **RWAs**<br> £190.1bn<br> (2024 - £183.2bn) | Total RWAs increased by £6.9 billion to £190.1 billion during H1 2025 reflecting: - an increase in credit risk RWA's of £4.6 billion, primarily driven by lending growth, balances acquired from Sainsbury's Bank and CRD IV model updates. These increases were partially offset by reductions due to active RWA management, movements in risk metrics and the impact of foreign exchange. - an increase in operational risk RWAs of £2.2 billion following the annual recalculation. - an increase in counterparty credit risk RWAs of £0.5 billion driven by an increase in over-the-counter transaction under the IMM approach. - a decrease in market risk RWAs of £0.4 billion, driven by the IRC, reflecting changes in government bond positions.  |
| **UK leverage ratio**<br> 5.0%<br> (2024 - 5.0%) | The leverage ratio remained static due to a £1.6 billion increase in Tier 1 capital offset by a £27.8 billion increase in leverage exposure. The key drivers in the leverage exposure were an increase in trading assets, other financial assets and other off balance sheet items.  |
| **MREL ratio**<br> 32.4%<br> (2024 - 33.0%)<br>| The Minimum Requirements of own funds and Eligible Liabilities (MREL) ratio decreased by 60 basis points driven by a £6.9 billion increase in RWAs partially offset by a £1.2 billion increase in MREL.<br> MREL increased to £61.7 billion driven by a £0.9 billion increase in CET1 capital, issuance of a £0.7 billion Additional Tier 1 instrument and a €1.0 billion subordinated debt Tier 2 instrument, and redemption of a £1.0 billion subordinated debt Tier 2 instrument. There was a £0.2 billion decrease in senior unsecured debt driven by new issuances totalling £3.3 billion, offset by the redemption of a €1.5 billion debt instrument, a $1.5 billion debt instrument no longer being MREL eligible, and foreign exchange movements. |
| **Liquidity portfolio**<br> £216.6bn<br> (2024 - £222.3bn)<br>| The liquidity portfolio decreased by £5.7 billion to £216.6 billion compared with Q4 2024. Primary liquidity decreased by £0.5 billion to £160.6 billion, driven by increased lending (including balances acquired from Sainsbury's Bank) partially offset by issuances. Secondary liquidity decreased by £5.2 billion due to reduced pre-positioned collateral at the Bank of England. |
| **LCR spot**<br> 147%<br> (2024 - 150%)<br>| The spot Liquidity Coverage Ratio (LCR) decreased by 3% to 147%, during H1 2025, driven by increased lending (including balances acquired from Sainsbury's Bank) partially offset by issuances. |
| **LCR average**<br> 150%<br> (2024 - 151%)<br>| The spot Liquidity Coverage Ratio (LCR) decreased by 3% to 147%, during H1 2025, driven by increased lending (including balances acquired from Sainsbury's Bank) partially offset by issuances. |
| **NSFR spot**<br> 134%<br> (2024 - 137%)<br>| The spot Net Stable Funding Ratio (NSFR) decreased 3% to 134% driven by increased lending (including balances acquired from Sainsbury's Bank), partially offset by increased issuances. |
| **NSFR average**<br> 136%<br> (2024 - 137%)<br>| The spot Net Stable Funding Ratio (NSFR) decreased 3% to 134% driven by increased lending (including balances acquired from Sainsbury's Bank), partially offset by increased issuances. |

---

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Maximum Distributable Amount (MDA) and Minimum Capital Requirements**

NatWest Group is subject to minimum capital requirements relative to RWAs. The table below summarises the minimum capital requirements (the sum of Pillar 1 and Pillar 2A), and the additional capital buffers which are held in excess of the regulatory minimum requirements and are usable in stress.

Where the CET1 ratio falls below the sum of the minimum capital and the combined buffer requirement, there is a subsequent automatic restriction on the amount available to service discretionary payments (including AT1 coupons), known as the MDA. Note that different capital requirements apply to individual legal entities or sub-groups and that the table shown does not reflect any incremental PRA buffer requirements, which are not disclosable.

The current capital position provides significant headroom above both NatWest Group's minimum requirements and its MDA threshold requirements.

---

| | | | |
|:---|:---|:---|:---|
| **Type**<br>| **CET1**<br>| **Total Tier 1** | **Total capital** |
| Pillar 1 requirements | **4.5%**<br>| **6.0%** | **8.0%** |
| Pillar 2A requirements | **1.8%**<br>| **2.4%** | **3.2%** |
| Minimum Capital Requirements | **6.3%**<br>| **8.4%** | **11.2%** |
| Capital conservation buffer | **2.5%**<br>| **2.5%** | **2.5%** |
| Countercyclical capital buffer (1)  | **1.7%**<br>| **1.7%** | **1.7%** |
| MDA threshold (2) | **10.5%**<br>| **n/a**<br>| **n/a**<br>|
| Overall capital requirement | **10.5%**<br>| **12.6%** | **15.4%** |
| Capital ratios at 30 June 2025 | **13.6%**<br>| **16.7%** | **19.7%** |
| Headroom (34) | **3.1%**<br>| **4.1%** | **4.3%** |

---

(1) The UK countercyclical buffer (CCyB) rate is currently being maintained at 2%. This may vary in either direction in the future subject to how risks develop. Foreign exposures may be subject to different CCyB rates depending on the rate set in those jurisdictions.

(2) Pillar 2A requirements for NatWest Group are set as a variable amount with the exception of some fixed add-ons.

(3) The headroom does not reflect excess distributable capital and may vary over time.

(4) Headroom as at 31 December 2024 was CET1 3.1%, Total Tier 1 3.9% and Total Capital 4.3%.

 **Leverage ratios**

The table below summarises the minimum ratios of capital to leverage exposure under the binding PRA UK leverage framework applicable for NatWest Group.

---

| | | |
|:---|:---|:---|
| **Type** | **CET1** | **Total Tier 1** |
| Minimum ratio | **2.44%** | **3.25%** |
| Countercyclical leverage ratio buffer (1) | **0.6%** | **0.6%** |
| **Total** | **3.04%** | **3.85%** |

---

(1) The countercyclical leverage ratio buffer is set at 35% of NatWest Group's CCyB.

 **Liquidity and funding ratios**

The table below summarises the minimum requirements for key liquidity and funding metrics under the PRA framework.

---

| | |
|:---|:---|
| **Type** |  |
| Liquidity Coverage Ratio (LCR) | **100%** |
| Net Stable Funding Ratio (NSFR) | **100%** |

---

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Capital and leverage ratios**

The table below sets out the key capital and leverage metrics in accordance with current PRA rules.

---

| | | |
|:---|:---|:---|
|  | **30 June** | 31 December |
|  | **2025** | 2024 |
| **Capital adequacy ratios (1)** | **%** | % |
| CET1 | **13.6** | 13.6 |
| Tier 1 | **16.7** | 16.5 |
| Total | **19.7** | 19.7 |
| **RWAs** | **£m** | £m |
| Credit risk | **152785** | 148078 |
| Counterparty credit risk | **7626** | 7103 |
| Market risk | **5777** | 6219 |
| Operational risk | **23959** | 21821 |
| Total RWAs | **190147** | 183221 |
| **Capital** | **£m** | £m |
| CET1 | **25799** | 24928 |
| Tier1 | **31804** | 30187 |
| Total | **37531** | 36105 |
| **Leverage ratios (2)** | **£m** | £m |
| Tier 1 capital | **31804** | 30187 |
| UK leverage exposure | **635551** | 607799 |
| UK leverage ratio (%) | **5.0%** | 5.0% |
| UK average Tier 1 capital  | **31795** | 29923 |
| UK average leverage exposure | **629158** | 600354 |
| UK average leverage ratio (%) | **5.1%** | 5.0% |

---

(1) The IFRS 9 transitional capital rules in respect of ECL provisions no longer apply as of 1 January 2025. (The impact of the IFRS 9 transitional adjustments at 31 December 2024 was £33 million for CET1 capital, £33 million for total capital and £3 million RWAs. Excluding this adjustment at 31 December 2024, the CET1 ratio was 13.6%, Tier 1 capital ratio was 16.5% and the Total capital ratio was 19.7%).

(2) The UK leverage exposure and Tier 1 capital are calculated in accordance with current PRA rules. The IFRS 9 transitional capital rules in respect of ECL no longer apply as of 1 January 2025. (Excluding the IFRS 9 transitional adjustment, the UK leverage ratio at 31 December 2024 was 5.0%).

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Capital and leverage ratios continued**

---

| | | |
|:---|:---|:---|
|  | **30 June** | 31 December |
|  | **2025** | 2024 |
| **Leverage** | **£m** | £m |
| Cash and balances at central banks | **90706** | 92994 |
| Trading assets | **56706** | 48917 |
| Derivatives | **73010** | 78406 |
| Financial assets | **486305** | 469599 |
| Other assets | **24051** | 18069 |
| **Total assets** | **730778** | 707985 |
| Derivatives |  |  |
| - netting and variation margin | **(69191)** | (76101) |
| - potential future exposures | **16831** | 16692 |
| Securities financing transactions gross up | **1510** | 2460 |
| Other off balance sheet items | **62497** | 59498 |
| Regulatory deductions and other adjustments | **(17869)** | (11014) |
| Claims on central banks | **(87228)** | (89299) |
| Exclusion of bounce back loans | **(1777)** | (2422) |
| UK leverage exposure  | **635551** | 607799 |
| UK leverage ratio (%) | **5.0** | 5.0 |

---

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Capital flow statement**

The table below analyses the movement in CET1, AT1 and Tier 2 capital for the half year ended 30 June 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **CET1**<br>**£m** | **AT1**<br>**£m** | **Tier 2**<br>**£m** | **Total**<br>**£m** |
| **At 31 December 2024** | **24928** | **5259** | **5918** | **36105** |
| Attributable profit for the period | **2488** | **-** | **-** | **2488** |
| Share buyback | **(750)** | **-** | **-** | **(750)** |
| Foreseeable ordinary dividends  | **(1244)** | **-** | **-** | **(1244)** |
| Foreign exchange reserve | **(82)** | **-** | **-** | **(82)** |
| FVOCI reserve | **95** | **-** | **-** | **95** |
| Own credit | **(4)** | **-** | **-** | **(4)** |
| Share based remuneration and shares vested under employee share schemes | **142** | **-** | **-** | **142** |
| Goodwill and intangibles deduction | **80** | **-** | **-** | **80** |
| Deferred tax assets | **149** | **-** | **-** | **149** |
| Prudential valuation adjustments | **20** | **-** | **-** | **20** |
| New issues of capital instruments | **-** | **746** | **823** | **1569** |
| Redemption of capital instruments | **-** | **-** | **(1000)** | **(1000)** |
| Foreign exchange movements | **-** | **-** | **(54)** | **(54)** |
| Adjustment under IFRS 9 transitional arrangements | **(33)** | **-** | **-** | **(33)** |
| Expected loss less impairment | **27** | **-** | **-** | **27** |
| Other movements | **(17)** | **-** | **40** | **23** |
| **At 30 June 2025** | **25799** | **6005** | **5727** | **37531** |

---

-

For CET1 movements refer to the key points on page 56.

-

The AT1 movement reflects the £0.7 billion 7.500% Reset Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes issued in March 2025.

-

Tier 2 movements of £0.2 billion include a decrease of £1.0 billion due to the redemption of 3.622% Fixed to Fixed Rate Reset Tier 2 Notes due 2030 in May 2025 and foreign exchange movements partially offset by an increase of £0.8 billion for a €1.0 billion 3.723% Fixed to Fixed Rate Reset Tier 2 Notes 2035 issued in February 2025.

-

Within other movements for Tier 2 capital, there was an increase as a result of excess IRB provisions over expected losses in the period.

 **Capital generation pre-distributions**

---

| | | |
|:---|:---|:---|
|  | **30 June**<br>**2025**<br>**£** | 31 December<br>2024<br>£ |
| CET1  | **25799** | 24928 |
| CET1 capital pre-distributions (1) | **27793** | 28920 |
| RWAs  | **190147** | 183221 |
|  | **%**  | %  |
| CET1 ratio - opening | **13.61** | 13.36 |
| CET1 pre-distributions - closing | **14.62** | 15.78 |
| Capital generation pre-distributions (1) | **1.01** | 2.43 |

---

(1) The calculation of capital generation pre-distributions uses CET1 capital pre-distributions. Distributions includes ordinary dividends paid, foreseeable ordinary dividends and share buybacks.

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Capital resources (reviewed)**

NatWest Group's regulatory capital is assessed against minimum requirements that are set out under the UK CRR to determine the strength of its capital base. This note shows a reconciliation of shareholders' equity to regulatory capital.

---

| | | |
|:---|:---|:---|
|  | **30 June**<br>**2025**<br>**£m** | 31 December<br>2024<br>£m |
| **Shareholders' equity (excluding non-controlling interests)** |  |  |
| Shareholders' equity | **41958** | 39350 |
| Other equity instruments | **(6029)** | (5280) |
|  | **35929** | 34070 |
| **Regulatory adjustments and deductions** |  |  |
| Own credit | **24** | 28 |
| Defined benefit pension fund adjustment | **(157)** | (147) |
| Cash flow hedging reserve  | **971** | 1443 |
| Deferred tax assets | **(935)** | (1084) |
| Prudential valuation adjustments | **(210)** | (230) |
| Goodwill and other intangible assets | **(7464)** | (7544) |
| Expected loss less impairment | **-** | (27) |
| Foreseeable ordinary dividends | **(1244)** | (1249) |
| Adjustment for trust assets (1) | **(365)** | (365) |
| Foreseeable charges (2) | **(750)** | - |
| Adjustment under IFRS 9 transitional arrangements  | **-** | 33 |
|  | **(10130)** | (9142) |
| **CET1 capital** | **25799** | 24928 |
| **Additional Tier 1 (AT1) capital** |  |  |
| Qualifying instruments and related share premium | **6005** | 5259 |
| **AT1 capital** | **6005** | 5259 |
| **Tier 1 capital** | **31804** | 30187 |
| **Qualifying Tier 2 capital** |  |  |
| Qualifying instruments and related share premium | **5687** | 5918 |
| Other regulatory adjustments | **40** | - |
| **Tier 2 capital** | **5727** | 5918 |
| **Total regulatory capital** | **37531** | 36105 |

---

(1) Prudent deduction in respect of agreement with the pension fund to establish legal structure to remove dividend linked contribution.

(2) For June 2025, the foreseeable charge of £750 million relates to a share buyback.

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Minimum requirements of own funds and eligible liabilities (MREL)**

The following table illustrates the components of MREL in NatWest Group and operating subsidiaries.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | <br> **Par value (1)**<br>**£bn** | **Balance**<br>**sheet value**<br>**£bn** | **Regulatory**<br>**value**<br>**£bn** | **MREL**<br>**Value (2)**<br>**£bn** | <br>Par value (1)<br>£bn | Balance<br>sheet value<br>£bn | Regulatory<br>value<br>£bn | MREL<br>Value (2)<br>£bn |
| CET1 capital (3) | **25.8** | **25.8** | **25.8** | **25.8** | 24.9 | 24.9 | 24.9 | 24.9 |
| **Tier 1 capital: end-point CRR compliant AT1** |  |  |  |  |  |  |  |  |
| of which: NatWest Group plc (holdco) | **6.0** | **6.0** | **6.0** | **6.0** | 5.3 | 5.3 | 5.3 | 5.3 |
| of which: NatWest Group plc operating subsidiaries (opcos) | **-** | **-** | **-** | **-** | - | - | - | - |
|  | **6.0** | **6.0** | **6.0** | **6.0** | 5.3 | 5.3 | 5.3 | 5.3 |
| **Tier 1 capital: end-point CRR non-compliant** |  |  |  |  |  |  |  |  |
| of which: holdco | **-** | **-** | **-** | **-** | - | - | - | - |
| of which: opcos | **0.1** | **0.1** | **-** | **-** | 0.1 | 0.1 | - | - |
|  | **0.1** | **0.1** | **-** | **-** | 0.1 | 0.1 | - | - |
| **Tier 2 capital: end-point CRR compliant** |  |  |  |  |  |  |  |  |
| of which: holdco | **5.7** | **5.6** | **5.7** | **5.7** | 5.9 | 5.7 | 5.9 | 5.9 |
| of which: opcos | **-** | **-** | **-** | **-** | - | - | - | - |
|  | **5.7** | **5.6** | **5.7** | **5.7** | 5.9 | 5.7 | 5.9 | 5.9 |
| **Tier 2 capital: end-point CRR non-compliant** |  |  |  |  |  |  |  |  |
| of which: holdco | **-** | **-** | **-** | **-** | - | - | - | - |
| of which: opcos | **0.2** | **0.3** | **-** | **-** | 0.2 | 0.3 | - | - |
|  | **0.2** | **0.3** | **-** | **-** | 0.2 | 0.3 | - | - |
| **Senior unsecured debt securities**  |  |  |  |  |  |  |  |  |
| of which: holdco | **25.3** | **25.2** | **-** | **24.2** | 24.4 | 24.0 | - | 24.4 |
| of which: opcos  | **36.9** | **36.9** | **-** | **-** | 33.7 | 33.6 | - | - |
|  | **62.2** | **62.1** | **-** | **24.2** | 58.1 | 57.6 | - | 24.4 |
| **Tier 2 capital** |  |  |  |  |  |  |  |  |
| Other regulatory adjustments | **-** | **-** | **-** | **-** | - | - | - | - |
| Total | **100.0** | **99.9** | **37.5** | **61.7** | 94.5 | 93.9 | 36.1 | 60.5 |
| RWAs |  |  |  | **190.1** |  |  |  | 183.2 |
| UK leverage exposure |  |  |  | **635.6** |  |  |  | 607.8 |
| MREL as a ratio of RWAs |  |  |  | **32.4%** |  |  |  | 33.0% |
| MREL as a ratio of UK leverage exposure |  |  |  | **9.7%** |  |  |  | 9.9% |

---

(1) Par
value reflects the nominal value of securities issued.

(2) MREL
value reflects NatWest Group's interpretation of the Bank of
England's approach to setting a MREL, published in December 2021
(Updating June 2018). Liabilities excluded from MREL include
instruments with less than one year remaining to maturity,
structured debt, operating company senior debt, and other
instruments that do not meet the MREL criteria. The MREL
calculation includes Tier 1 and Tier 2 securities before the
application of any regulatory caps or adjustments.

(3) Shareholders'
equity was £42 billion (2024 - £39.4
billion).

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Minimum requirements of own funds and eligible liabilities (MREL) continued**

The following table illustrates the components of the stock of outstanding issuance in NatWest Group plc and its operating subsidiaries including external and internal issuances.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | <br> **NatWest**<br>**Group plc**<br>**£bn** | **NatWest**<br>**Holdings**<br>**Limited**<br>**£bn** | <br> **NWB**<br>**Plc**<br>**£bn** | <br> **RBS**<br>**plc**<br>**£bn** | <br> **NWM**<br>**Plc**<br>**£bn** | **NatWest**<br>**Markets**<br>**N.V.**<br>**£bn** | **NWM**<br>**Securities**<br>**Inc. (6)**<br>**£bn** | **RBS**<br>**International**<br>**Limited (7)**<br>**£bn** |
| Additional Tier 1 | Externally issued | **6.0**  | **-**  | **0.1**  | **-**  | **-**  | **-**  | **-**  | **-**  |
| Additional Tier 1 | Internally issued | **-**  | **4.4**  | **3.8**  | **0.5**  | **2.1**  | **0.2**  | **-**  | **0.3**  |
|  |  | **6.0**  | **4.4**  | **3.9**  | **0.5**  | **2.1**  | **0.2**  | **-**  | **0.3**  |
| Tier 2 | Externally issued | **5.6**  | **-**  | **-**  | **-**  | **-**  | **0.2**  | **-**  | **-**  |
| Tier 2 | Internally issued | **-**  | **4.9**  | **4.1**  | **0.5**  | **1.0**  | **0.1**  | **0.3**  | **-**  |
|  |  | **5.6**  | **4.9**  | **4.1**  | **0.5**  | **1.0**  | **0.3**  | **0.3**  | **-**  |
| Senior unsecured | Externally issued | **25.2**  | **-**  | **-**  | **-**  | **-**  | **-**  | **-**  | **-**  |
| Senior unsecured | Internally issued | **-**  | **13.0**  | **7.3**  | **1.0**  | **4.6**  | **-**  | **-**  | **0.3**  |
|  |  | **25.2**  | **13.0**  | **7.3**  | **1.0**  | **4.6**  | **-**  | **-**  | **0.3**  |
| Total outstanding issuance | Total outstanding issuance | **36.8**  | **22.3**  | **15.3**  | **2.0**  | **7.7**  | **0.5**  | **0.3**  | **0.6**  |

---

(1) For AT1 and Tier 2, the balances are the IFRS balance sheet carrying amounts, which may differ from the amount which the instrument contributes to regulatory capital. Regulatory balances exclude, for example, issuance costs and fair value movements, while dated capital is required to be amortised on a straight-line basis over the final five years of maturity.

(2) Balance sheet amounts reported for AT1 and Tier 2 instruments are before grandfathering restrictions imposed by CRR.

(3) Internal issuance for NWB Plc and RBS plc represents AT1, Tier 2 or Senior unsecured issuance to NWH Ltd and for NWM N.V. and NWM SI to NWM Plc.

(4) The balances are the IFRS balance sheet carrying amounts for Senior unsecured debt category and it does not include CP, CD and short term/medium notes issued from NatWest Group operating subsidiaries.

(5) The above table does not include CET1 balance.

(6) NWM Securities Inc is regulated under US broker dealer rules.

(7) RBSI Ltd - the Resolution Regime is under development in Jersey.

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Risk-weighted assets**

The table below analyses the movement in RWAs during the period, by key drivers.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br> **Credit risk**<br>**£bn** | **Counterparty**<br>**credit risk**<br>**£bn** | <br> **Market risk**<br>**£bn** | **Operational**<br>**risk**<br>**£bn** | <br> **Total** <br>**£bn** |
| **At 31 December 2024** | **148.1** | **7.1** | **6.2** | **21.8** | **183.2** |
| Foreign exchange movement | **(0.7)** | **-** | **-** | **-** | **(0.7)** |
| Business movement | **2.2** | **0.3** | **(0.4)** | **2.2** | **4.3** |
| Risk parameter changes | **(0.5)** | **-** | **-** | **-** | **(0.5)** |
| Model updates | **2.0** | **0.2** | **-** | **-** | **2.2** |
| Acquisitions and disposals | **1.6** | **-** | **-** | **-** | **1.6** |
| **At 30 June 2025** | **152.7** | **7.6** | **5.8** | **24.0** | **190.1** |

---

The table below analyses segmental RWAs.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Total RWAs** | <br> **Retail**<br>**Banking**<br>**£bn** | **Private Banking**<br>**& Wealth**<br>**Management**<br>**£bn** | <br> **Commercial**<br>**& Institutional** <br>**£bn** | <br> **Central items** <br>**& other**<br>**£bn** | **Total** <br>**NatWest**<br>**Group**<br>**£bn** |
| **At 31 December 2024** | **65.5** | **11.0** | **104.7** | **2.0** | **183.2** |
| Foreign exchange movement | **-** | **-** | **(0.7)** | **-** | **(0.7)** |
| Business movement | **1.5** | **0.5** | **2.9** | **(0.6)** | **4.3** |
| Risk parameter changes  | **0.1** | **-** | **(0.6)** | **-** | **(0.5)** |
| Model updates | **0.7** | **-** | **1.5** | **-** | **2.2** |
| Acquisitions and disposals | **1.6** | **-** | **-** | **-** | **1.6** |
| **At 30 June 2025** | **69.4** | **11.5** | **107.8** | **1.4** | **190.1** |
| Credit risk | **60.2** | **9.9** | **81.4** | **1.2** | **152.7** |
| Counterparty credit risk | **0.3** | **-** | **7.3** | **-** | **7.6** |
| Market risk | **0.2** | **-** | **5.6** | **-** | **5.8** |
| Operational risk | **8.7** | **1.6** | **13.5** | **0.2** | **24.0** |
| Total RWAs | **69.4** | **11.5** | **107.8** | **1.4** | **190.1** |

---

Total RWAs increased by £6.9 billion to £190.1 billion during the period mainly reflecting:

-

A reduction in risk-weighted assets from foreign exchange movement of £0.7 billion due to sterling appreciation versus the US dollar and depreciation versus the Euro.

-

An increase in business movements totalling £4.3 billion, driven by the annual recalculation of operational risk, an increase in credit risk due to lending growth partially offset by reductions due to active RWA management. A decrease in market risk was partially offset by an increase in counterparty credit risk.

-

A reduction in risk parameters of £0.5 billion primarily driven by movements in risk metrics within Commercial & Institutional and Retail Banking.

-

An increase in model updates of £2.2 billion, driven by CRD IV model updates within Commercial & Institutional and Retail Banking.

-

An increase in acquisitions and disposals of £1.6 billion driven by balances acquired from Sainsbury's Bank.

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Funding sources (reviewed)**

The table below shows the carrying values of the principal funding sources based on contractual maturity. Balance sheet captions include balances held at all classifications under IFRS 9.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | | | | | Long-term |  |
|  | | | | | more than |  |
|  | | | | | 1 year | Total |
|  | **Short-term**<br>**less than**<br>**1 year**<br>**£m** | **Long-term**<br>**more than**<br>**1 year**<br>**£m** | <br>**Total**<br>**£m** | Short-term<br>less than<br>1 year<br>£m | £m | £m |
| **Bank deposits** |  |  |  |  |  |  |
| Repos | **17996** | **-** | **17996** | 11967 | - | 11967 |
| Other bank deposits (1) | **10495** | **9657** | **20152** | 9708 | 9777 | 19485 |
|  | **28491** | **9657** | **38148** | 21675 | 9777 | 31452 |
| **Customer deposits** |  |  |  |  |  |  |
| Repos | **988** | **-** | **988** | 1363 | - | 1363 |
| Non-bank financial institutions | **53457** | **10** | **53467** | 48761 | 241 | 49002 |
| Personal | **231226** | **2991** | **234217** | 231483 | 2451 | 233934 |
| Corporate | **148038** | **46** | **148084** | 149086 | 105 | 149191 |
|  | **433709** | **3047** | **436756** | 430693 | 2797 | 433490 |
| **Trading liabilities (2)** |  |  |  |  |  |  |
| Repos (3) | **33014** | **897** | **33911** | 29752 | 810 | 30562 |
| Derivative collateral | **11597** | **-** | **11597** | 12509 | - | 12509 |
| Other bank customer deposits | **591** | **280** | **871** | 627 | 268 | 895 |
| Debt securities in issue - Medium term notes | **9** | **242** | **251** | 20 | 237 | 257 |
|  | **45211** | **1419** | **46630** | 42908 | 1315 | 44223 |
| **Other financial liabilities** |  |  |  |  |  |  |
| Customer deposits | **854** | **1129** | **1983** | 471 | 1341 | 1812 |
| Debt securities in issue: |  |  |  |  |  |  |
| Commercial paper and certificates of deposit | **11093** | **298** | **11391** | 10889 | 377 | 11266 |
| Medium term notes | **13401** | **37153** | **50554** | 11118 | 34967 | 46085 |
| Covered bonds | **-** | **749** | **749** | - | 749 | 749 |
| Securitisation | **-** | **1263** | **1263** | 295 | 880 | 1175 |
|  | **25348** | **40592** | **65940** | 22773 | 38314 | 61087 |
| Subordinated liabilities | **48** | **5958** | **6006** | 1051 | 5085 | 6136 |
| Total funding | **532807** | **60673** | **593480** | 519100 | 57288 | 576388 |
| *Of which: available in resolution (4)* |  |  |  ***29778*** |  |  | *29742* |

---

(1) Includes £12.0 billion (31 December 2024 - £12.0 billion) relating to Term Funding Scheme with additional incentives for small and medium-sized enterprises (SME) participation.

(2) Excludes short positions of £12.2 billion (31 December 2024 - £10.5 billion).

(3) Comprises central & other bank repos of £9.6 billion (31 December 2024 - £7.2 billion), other financial institution repos of £20.8 billion (31 December 2024 - £20.4 billion) and other corporate repos of £3.5 billion (31 December 2024 - £3.0 billion).

(4) Eligible liabilities (as defined in the Banking Act 2009 as amended from time to time) that meet the eligibility criteria set out in the regulations, rules, policies, guidelines, or statements of the Bank of England including the Statement of Policy published by the Bank of England in December 2021 (updating June 2018). The balance consists of £24.2 billion (31 December 2024 - £24.0 billion) under debt securities in issue (senior MREL) and £5.6 billion (31 December 2024 - £5.7 billion) under subordinated liabilities.

Risk and capital management continued

Capital, liquidity and funding risk continued

 **Liquidity portfolio (reviewed)**

The table below shows the composition of the liquidity portfolio with primary liquidity aligned to high-quality liquid assets on a regulatory LCR basis. Secondary liquidity comprises of assets which are eligible as collateral for local central bank liquidity facilities and do not form part of the LCR eligible high-quality liquid assets. High-quality liquid assets cover both Pillar 1 and Pillar 2 risks.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Liquidity value** | **Liquidity value** | **Liquidity value** | **Liquidity value** | **Liquidity value** | **Liquidity value** |
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | **NatWest**<br>**Group (1)**<br>**£m** | **NWH**<br>**Group (2)**<br>**£m** | **UK DoL**<br>**Sub**<br>**£m** | NatWest<br>Group (1)<br>£m | NWH<br>Group (2)<br>£m | UK DoL<br>Sub <br>£m |
| Cash and balances at central banks  | **86589** | **55027** | **54353** | 88617 | 58313 | 57523 |
| High-quality government/MDB/PSE and GSE bonds (3) | **61527** | **44580** | **44580** | 58818 | 43275 | 43275 |
| Extremely high quality covered bonds | **4494** | **4494** | **4494** | 4341 | 4340 | 4340 |
| LCR level 1 assets | **152610** | **104101** | **103427** | 151776 | 105928 | 105138 |
| LCR level 2 Eligible Assets (4) | **7985** | **6880** | **6880** | 9271 | 7957 | 7957 |
| Primary liquidity (HQLA) (5) | **160595** | **110981** | **110307** | 161047 | 113885 | 113095 |
| Secondary liquidity | **55997** | **55969** | **55969** | 61230 | 61200 | 61200 |
| Total liquidity value | **216592** | **166950** | **166276** | 222277 | 175085 | 174295 |

---

(1) NatWest Group includes the UK Domestic Liquidity Sub-Group (UK DoLSub), NatWest Markets Plc and other significant operating subsidiaries that hold liquidity portfolios. These include The RBSI Ltd and NWM N.V. who hold managed portfolios that comply with local regulations that may differ from PRA rules.

(2) NWH Group comprises UK DoLSub and NatWest Bank Europe GmbH who hold managed portfolios that comply with local regulations that may differ from PRA rules.

(3) Multilateral development bank abbreviated to MDB, public sector entities abbreviated to PSE and government sponsored entities abbreviated to GSE.

(4) Includes Level 2A and Level 2B.

(5) High-quality liquid assets abbreviated to HQLA.

Risk and capital management continued

Non-traded market risk

Non-traded market risk is the risk to the value of assets or liabilities outside the trading book, or the risk to income, that arises from changes in market prices such as interest rates, foreign exchange rates and equity prices, or from changes in managed rates.

 **Key developments**

-

In the UK, the base rate reduced from 4.75% at 31 December 2024 to 4.25% at 30 June 2025.

-

At 30 June 2025, longer-term interest rates continued to reflect expectations of future cuts to the UK base rate. The five-year sterling swap rate decreased to 3.65% at the end of June 2025 from 4.05% at the end of December 2024. The ten-year sterling swap rate also decreased, to 3.98% from 4.07% over the same period.

-

The structural hedge notional decreased by £1 billion to £193 billion from £194 billion, reflecting relatively stable deposits in the first half of the year.

-

The one-year positive sensitivity of net interest earnings to an upward 25-basis-point parallel shift in all yield curves reduced slightly, to £158 million at 30 June 2025 from £162 million at 31 December 2024. The adverse sensitivity to a downward 25-basis-point parallel shift was also broadly stable at £176 million at 30 June 2025 compared to £183 million at 31 December 2024.

-

Sterling strengthened against the US dollar and weakened against the euro over the period. Against the dollar, sterling was 1.37 at 30 June 2025 compared to 1.25 at 31 December 2024. Against the euro, it was 1.17 at 30 June 2025 compared to 1.20 at 31 December 2024. Structural foreign currency exposures (excluding Additional Tier 1 economic hedges) of £2.3 billion at 30 June 2025, in sterling-equivalent nominal terms, were stable compared to 31 December 2024.

 **Non-traded internal VaR (1-day 99%) (reviewed)**

The following table shows one-day internal banking book Value-at-Risk (VaR) at a 99% confidence level, split by risk type.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** |
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 30 June 2024 | 30 June 2024 | 30 June 2024 | 30 June 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | <br> **Average**<br>**£m** | <br> **Maximum**<br>**£m** | <br> **Minimum**<br>**£m** | **Period**<br>**end**<br>**£m** | <br>Average<br>£m | <br>Maximum<br>£m | <br>Minimum<br>£m | Period<br>end<br>£m | <br>Average<br>£m | <br>Maximum<br>£m | <br>Minimum<br>£m | Period<br>end<br>£m |
| Interest rate | **4.7** | **6.3** | **2.7** | **2.8** | 24.1 | 28.2 | 17.6 | 17.6 | 10.3 | 17.4 | 4.0 | 4.0 |
| Credit spread | **49.1** | **53.8** | **41.4** | **48.8** | 55.6 | 60.2 | 50.7 | 50.7 | 48.0 | 50.0 | 45.3 | 48.4 |
| Structural foreign  |  |  |  |  |  |  |  |  |  |  |  |  |
| exchange rate | **6.4** | **7.1** | **6.0** | **7.1** | 9.2 | 12.3 | 7.1 | 12.3 | 6.7 | 8.0 | 5.1 | 6.3 |
| Equity | **7.1** | **7.8** | **6.1** | **7.8** | 9.3 | 10.3 | 8.2 | 8.2 | 7.8 | 8.1 | 7.6 | 7.7 |
| Pipeline risk (1) | **3.8** | **5.9** | **0.6** | **3.1** | 5.9 | 12.7 | 3.4 | 12.7 | 11.2 | 17.3 | 5.3 | 6.1 |
| Diversification (2) | **(21.8)** |  |  | **(19.2)** | (41.1) |  |  | (39.7) | (29.7) |  |  | (23.4) |
| Total | **49.3** | **51.8** | **42.6** | **50.4** | 63.0 | 73.8 | 52.9 | 61.8 | 54.3 | 57.8 | 49.1 | 49.1 |

---

(1) Pipeline risk is the risk of loss arising from Personal customers owning an option to draw down a loan - typically a mortgage - at a committed rate, where interest rate changes may result in greater or fewer customers than anticipated taking up the committed offer.

(2) NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.

-

Total non-traded VaR increased slightly after April 2025 due to global tariff-related volatility. However, on an average basis, it was overall lower in H1 2025 than in 2024.

-

Average interest rate VaR decreased in H1 2025, reflecting action taken to manage down interest rate repricing mismatches across customer products.

-

Average pipeline VaR also decreased. This reflected changes in the assumptions applied to customer behaviour through the fixed-rate mortgage application process, which more closely aligned NatWest Group's estimates of future customer completions to pipeline hedging activity.

Risk and capital management continued

Non-traded market risk continued

 **Structural hedging**

NatWest Group has a significant pool of stable, non and low interest-bearing liabilities, principally comprising current accounts and instant access savings, as well as its equity and reserves. A proportion of these balances are hedged, either by investing directly in longer-term fixed-rate assets (such as fixed-rate mortgages) or by using interest rate swaps, which are generally booked as cash flow hedges of floating-rate assets, in order to provide a consistent and predictable revenue stream.

After hedging the net interest rate exposure, NatWest Group allocates income to equity or products in structural hedges by reference to the relevant interest rate swap curve. Over time, this approach has provided a basis for stable income attribution for management purposes, to products and interest rate returns. The programme aims to track a time series of medium-term swap rates, but the yield will be affected by changes in NatWest Group's equity capital.

The table below shows hedge income, total yield, incremental income and the period-end and average notional balances allocated to equity and products in respect of the structural hedges managed by NatWest Group. Hedge income represents the fixed leg of the hedge. Incremental income represents the difference between hedge income and short-term cash rates. For example, the sterling overnight index average (SONIA) is used to estimate incremental income from sterling structural hedges.

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** |
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 30 June 2024 | 30 June 2024 | 30 June 2024 | 30 June 2024 | 30 June 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | <br> **Incremental**<br>**income**<br>**£m** | <br> **Hedge**<br>**income**<br>**£m** | **Period**<br>**- end**<br>**notional**<br>**£bn** | <br> **Average**<br>**notional**<br>**£bn** | <br> **Total**<br>**yield %**<br> | <br>Incremental<br>income<br>£m | <br>Hedge<br>income<br>£m | Period<br>-end<br>notional<br>£bn | <br>Average<br>notional<br>£bn | <br>Total<br>yield% | <br>Incremental<br>income<br>£m | <br>Hedge<br>income<br>£m | Period<br>-end<br>notional<br>£bn | <br>Average<br>notional<br>£bn | <br>Total<br>yield% |
| Equity  | **(262)** | **216** | **22** | **22** | **2.01** | (364) | 218 | 22 | 22 | 1.95 | (330) | 222 | 22 | 22 | 1.99 |
| Product | **(1831)** | **1900** | **172** | **171** | **2.24** | (3184) | 1392 | 175 | 176 | 1.58 | (2622) | 1647 | 172 | 172 | 1.90 |
| Total | **(2093)** | **2116** | **194** | **193** | **2.21** | (3548) | 1610 | 197 | 198 | 1.62 | (2952) | 1869 | 194 | 194 | 1.91 |

---

Equity structural hedges refer to income allocated primarily to equity and reserves. At 30 June 2025, the equity structural hedge notional was allocated between NWH Group and NWM Group in a ratio of approximately 79%/21% respectively.

Product structural hedges refer to income allocated to customer products, mainly current accounts and customer deposits in Commercial & Institutional, Retail Banking and Private Banking & Wealth Management.

At 30 June 2025, approximately 95% by notional of total structural hedges were sterling-denominated.

Risk and capital management continued

Non-traded market risk continued

 **Sensitivity of net interest earnings**

Net interest earnings are sensitive to changes in the level of interest rates, mainly because maturing structural hedges are replaced at higher or lower rates and changes to coupons on managed-margin products do not always match changes in market rates of interest or central bank policy rates.

Earnings sensitivity is derived from a market-implied forward rate curve, which will incorporate expected changes in central bank policy rates such as the Bank of England base rate. A simple scenario is shown that projects forward earnings based on the 30 June 2025 balance sheet, which is assumed to remain constant. An earnings projection is derived from the market-implied curve, which is then subject to interest rate shocks. The difference between the market-implied projection and the shock gives an indication of underlying sensitivity to interest rate movements.

Reported sensitivities should not be considered a forecast of future performance in these rate scenarios. Actions that could reduce interest earnings sensitivity include changes in pricing strategies on customer loans and deposits as well as hedging. Management action may also be taken to stabilise total income also taking into account non-interest income.

The table below shows the sensitivity of net interest earnings - for both structural hedges and managed-margin products - on a one, two and three-year forward-looking basis to an upward or downward interest rate shift of 25 basis points.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **+25 basis points upward shift** | **+25 basis points upward shift** | **+25 basis points upward shift** | **-25 basis points downward shift** | **-25 basis points downward shift** | **-25 basis points downward shift** |
| <br>**30 June 2025** | **Year 1** <br>**£m** | **Year 2** <br>**£m** | **Year 3**<br>**£m** | **Year 1** <br>**£m** | **Year 2** <br>**£m** | **Year 3**<br>**£m** |
| Structural hedges | **40** | **125** | **213** | **(40)** | **(125)** | **(213)** |
| Managed margin | **118** | **101** | **116** | **(136)** | **(97)** | **(98)** |
| Total | **158** | **226** | **329** | **(176)** | **(222)** | **(311)** |
| 31 December 2024 |  |  |  |  |  |  |
| Structural hedges | 41 | 125 | 212 | (41) | (125) | (212) |
| Managed margin | 121 | 116 | 124 | (142) | (120) | (125) |
| Total | 162 | 241 | 336 | (183) | (245) | (337) |

---

(1) Earnings
sensitivity considers only the main drivers, namely structural
hedging and managed margin products.

The following table presents the one-year sensitivity to upward and downward 25-basis-point and 100-basis-point shifts in the yield curve, analysed by currency.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Shifts in yield curve** | **Shifts in yield curve** | **Shifts in yield curve** | **Shifts in yield curve** | **Shifts in yield curve** | **Shifts in yield curve** | **Shifts in yield curve** | **Shifts in yield curve** |
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | **+25 basis** <br>**points**<br>**£m** | **-25 basis** <br>**points**<br>**£m** | **+100 basis**<br>**points**<br>**£m** | **-100 basis**<br>**points**<br>**£m** | +25 basis <br>points<br>£m | -25 basis <br>points<br>£m | +100 basis<br>points<br>£m | -100 basis<br>points<br>£m |
| Euro | **14** | **(12)** | **56** | **(53)** | 11 | (7) | 38 | (43) |
| Sterling | **130** | **(149)** | **501** | **(615)** | 131 | (155) | 531 | (646) |
| US dollar | **12** | **(12)** | **46** | **(51)** | 15 | (16) | 63 | (71) |
| Other | **2** | **(3)** | **11** | **(9)** | 5 | (5) | 19 | (17) |
| Total | **158** | **(176)** | **614** | **(728)** | 162 | (183) | 651 | (777) |

---

Risk and capital management continued

Non-traded market risk continued

 **Foreign exchange risk (reviewed)**

The table below shows structural foreign currency exposures.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**30 June 2025** | <br> **Net investments in**<br>**foreign operations**<br>**£m** | <br> **Net investment**<br>**hedges**<br>**£m** | **Structural foreign**<br>**currency exposures**<br>**pre-economic hedges**<br>**£m** | <br> **Economic**<br>**hedges (1)**<br>**£m** | **Residual**<br>**structural foreign**<br>**currency exposures**<br>**£m** |
| US dollar | **1716** | **(401)** | **1315** | **(1315)** | **-** |
| Euro | **4321** | **(2515)** | **1806** | **-** | **1806** |
| Other non-sterling | **867** | **(375)** | **492** | **-** | **492** |
| Total | **6904** | **(3291)** | **3613** | **(1315)** | **2298** |
| 31 December 2024 |  |  |  |  |  |
| US dollar | 1826 | (598) | 1228 | (1228) | - |
| Euro | 4162 | (2351) | 1811 | - | 1811 |
| Other non-sterling | 874 | (372) | 502 | - | 502 |
| Total | 6862 | (3321) | 3541 | (1228) | 2313 |

---

(1) Economic hedges of US dollar net investments in foreign operations represent US dollar equity securities that do not qualify as net investment hedges for accounting purposes. They provide an offset to structural foreign exchange exposures to the extent that there are net assets in overseas operations available.

-

Changes in foreign currency exchange rates affect equity in proportion to structural foreign currency exposure. For example, a 5% strengthening or weakening in foreign currencies against sterling would result in a gain or loss of £0.2 billion in equity, respectively.

Risk and capital management continued

Traded market risk

Traded market risk is the risk arising from changes in fair value on positions, assets, liabilities or commitments in trading portfolios as a result of fluctuations in market prices.

 **Traded VaR (1-day 99%) (reviewed)**

The table below shows one-day internal value-at-risk (VaR) for NatWest Group's trading portfolios, split by exposure type.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** | **Half year ended** |
|  | **30 June 2025** | **30 June 2025** | **30 June 2025** | **30 June 2025** | 30 June 2024 | 30 June 2024 | 30 June 2024 | 30 June 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
|  | <br> **Average**<br>**£m** | <br> **Maximum**<br>**£m** | <br> **Minimum**<br>**£m** | **Period**<br>**end**<br>**£m** | <br>Average<br>£m | <br>Maximum<br>£m | <br>Minimum<br>£m | Period<br>end<br>£m | <br>Average<br>£m | <br>Maximum<br>£m | <br>Minimum<br>£m | Period<br>end<br>£m |
| Interest rate | **3.6** | **5.4** | **2.2** | **4.1** | 6.7 | 12.0 | 3.6 | 6.6 | 6.5 | 12.1 | 3.0 | 3.8 |
| Credit spread | **5.3** | **7.2** | **4.0** | **4.6** | 8.1 | 10.1 | 6.7 | 7.6 | 7.3 | 9.6 | 5.6 | 5.6 |
| Currency | **1.5** | **4.0** | **-** | **0.8** | 2.1 | 6.7 | 0.8 | 1.9 | 1.9 | 5.8 | 0.5 | 1.3 |
| Equity | **-** | **0.1** | **-** | **0.1** | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.3 | - | - |
| Diversification (1) | **(3.9)** |  |  | **(4.0)** | (6.8) |  |  | (5.5) | (5.8) |  |  | (5.4) |
| Total | **6.5** | **9.7** | **4.3** | **5.6** | 10.2 | 16.2 | 7.0 | 10.7 | 10.0 | 16.1 | 5.3 | 5.3 |

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(1) NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.

-

Both interest rate VaR and credit spread VaR decreased on an average basis.

-

This reflects the period of higher market volatility in H2 2022 rolling out of the VaR calculation window.

Pension risk

On 12 June 2025, the Trustee of the Main section of the NatWest Group Pension Fund entered into a buy-in transaction with a third-party insurer for some of its liabilities. This is an insurance policy that gives the Fund protection against demographic and investment risks, so improves the security of member benefits. The transaction did not affect the 2025 statement of comprehensive income because the net pension asset was limited to zero due to the impact of the asset ceiling.

 **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.

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| | | | |
|:---|:---|:---|:---|
|  |  | **NatWest Group plc**<br> (Registrant) | **NatWest Group plc**<br> (Registrant) |
| Date: | 25 July 2025 | By: | /s/ Mark Stevens |
|  |  | Name: | Mark Stevens |
|  |  | Title: | Assistant Secretary |

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