FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For 22 April 2022
Commission File Number: 001-10306
NatWest Group plc
Gogarburn, PO Box 1000
Edinburgh EH12 1HQ
________________________________________________
(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 __X__ Form 40-F _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _____ No __X__
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____
This report on Form 6-K, except for any information contained on any websites linked in this report, shall be deemed incorporated by reference into the company's Registration Statement on Form F-3 (File No. 333-261837) and to be a part thereof from the date which it was filed, to the extent not superseded by documents or reports subsequently filed or furnished.
NatWest Group plc 22 April 2022
NatWest Group – Segmental reporting re-presentation
NatWest Group plc (“NatWest Group”) has today published details of the change in operating segments that it announced on 27 January 2022 (https://www.natwestgroup.com/news/2022/01/natwest-group-brings-together-new-commercial-institutional-franchise.html). Previously reported financial information has been re-presented in the new operating segments to aid comparison of NatWest Group’s forthcoming Q1 2022 results with prior periods. The re-presentation does not change the consolidated financial results of NatWest Group.
On 27 January 2022, NatWest Group announced that a new franchise, Commercial & Institutional, would be created, bringing together the Commercial, NatWest Markets and RBS International businesses to form a single franchise with common management and objectives, to best support our customers across the full non-personal customer lifecycle.
NatWest Group’s operating segments are now:
- | Retail Banking |
- | Private Banking |
- | Commercial & Institutional |
- | Central items and other |
- | Ulster Bank RoI |
Financial information for the years 2019, 2020, and 2021 and the nine quarters from Q4 2019 to Q4 2021 are re-presented in the attached financial supplement which is also available to view and download at https://investors.natwestgroup.com/.
NatWest Group’s Q1 2022 results will be announced on 29 April 2022 and will be presented under the new operating segment structure.
For further information, please contact:
Alexander Holcroft
Investor Relations
+44 (0) 207 672 1758
NatWest Group Press Office
+44 (0) 131 523 4205
Legal Entity Identifier: 2138005O9XJIJN4JPN90
Forward-looking statements
This document contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, such as statements that include, without limitation, the words ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘commit’, ‘believe’, ‘should’, ‘intend’, ‘will’, ‘plan’, ‘could’, ‘probability’, ‘risk’, ‘Value-at-Risk (VaR)’, ‘target’, ‘goal’, ‘objective’, ‘may’, ‘endeavour’, ‘outlook’, ‘optimistic’, ‘prospects’ and similar expressions or variations on these expressions. These statements concern or may affect future matters, such as NatWest Group's future economic results, business plans and strategies. In particular, this document may include forward-looking statements relating to NatWest Group plc in respect of, but not limited to: its creation of the Commercial & Institutional franchise and the intended benefits of the Commercial & Institutional franchise, the impact of the Covid-19 pandemic, its regulatory capital position and related requirements, its financial position, profitability and financial performance (including financial, capital, cost savings and operational targets), the implementation of its Purpose-led strategy, its ESG and climate related targets, its access to adequate sources of liquidity and funding, increasing competition from new incumbents and disruptive technologies, its exposure to third party risks, its ongoing compliance with the UK ring-fencing regime and ensuring operational continuity in resolution, its impairment losses and credit exposures under certain specified scenarios, substantial regulation and oversight, ongoing legal, regulatory and governmental actions and investigations, the transition of LIBOR and IBOR rates to alternative risk free rates and NatWest Group’s exposure to economic and political risks (including with respect to terms surrounding Brexit and climate change), operational risk, conduct risk, cyber, data and IT risk, financial crime risk, key person risk and credit rating risk. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, the impact of the Covid-19 pandemic, future growth initiatives (including acquisitions, joint ventures and strategic partnerships), the outcome of legal, regulatory and governmental actions and investigations, the level and extent of future impairments and write-downs (including with respect to goodwill), legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations, general economic and political conditions and the impact of climate-related risks and the transitioning to a net zero economy. These and other factors, risks and uncertainties that may impact any forward-looking statement or NatWest Group plc's actual results are discussed in NatWest Group plc's UK 2021 Annual Report and Accounts (ARA) and NatWest Group plc’s filings with the US Securities and Exchange Commission, including, but not limited to, NatWest Group plc's most recent Annual Report on Form 20-F and Reports on Form 6-K. The forward-looking statements contained in this document speak only as of the date of this document and NatWest Group plc does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except to the extent legally required.
Financial Supplement: re-presentation of operating segments
On 27 January 2022, NatWest Group plc ("NatWest Group") announced that a new franchise, Commercial & Institutional, would be created, bringing together the Commercial, NatWest Markets and RBSI businesses to form a single franchise, with common management and objectives, to best support our customers across the full non-personal customer lifecycle.
This financial supplement presents the impact of the change in operating segments on the previously reported financial information for the years 2019, 2020, and 2021 and the nine quarters from Q4 2019 to Q4 2021. This document has been prepared to aid comparison of NatWest Group's forthcoming Q1 2022 results with prior periods. The re-presentation of operating segments does not change the consolidated financial results of NatWest Group.
Other presentational changes will be made in the Q1 2022 results and are reflected in this document. These include:
• | Strategic costs are included in Other operating expenses and not reported separately. |
• | From 1 January 2022, NatWest Group is subject to the requirements of the final PRA rulebook, so capital and leverage ratios are now presented on a transitional basis rather than the previous end-point basis. Comparatives have been re-presented on a transitional basis under the arrangements in place in the previous CRR. |
• | Bank net interest margin (NIM) is calculated for the Go-forward group and excludes the Commercial & Institutional trading book and the liquid asset buffer (LAB). |
• | Loan:deposit ratio has been re-presented to exclude reverse repos and repos. |
Presentation of information
Key operating indicators
NatWest Group prepares its financial statements in accordance with generally accepted accounting principles (GAAP). The results contain a number of adjusted or alternative performance measures, also known as non-GAAP or non-IFRS performance measures. These measures are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include metrics that are used throughout the banking industry. These non-IFRS measures are not measures within the scope of IFRS and are not a substitute for IFRS measures.
The basis of preparation of these non-IFRS financial measures and performance metrics is presented in the NatWest Group plc 2021 Annual Report and Accounts.
22 April 2022
natwestgroup.com
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 1 |
Contents |
Presentation of information |
Ulster Bank RoI |
Continuing operations |
Two
legally binding agreements for the sale of the UBIDAC business were announced in 2021 as part of the phased withdrawal from the Republic
of Ireland: the sale of commercial | |||
lending
to Allied Irish Banks p.l.c. (AIB) and the sale of performing non-tracker mortgages, performing micro-SME loans, UBIDAC’s asset finance business and 25 of its branch locations to | |||
Permanent TSB p.l.c (PTSB). The business activities relating to these sales that meet the requirements of IFRS 5 are presented as discontinued operations and as a disposal | |||
group at 31 December 2021. The Financial review in the NatWest Group plc 2021 Annual Report and Accounts presents the results of the Group’s continuing operations. For further | |||
details refer to Note 8 Discontinued operations and assets and liabilities of disposal groups in the Notes to the consolidated financial statements. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 2 |
Highlights |
Section 1.1 - Income statement |
Summary consolidated income statement | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Net interest income | 1,971 | 7,799 | 1,877 | 1,842 | 1,856 | 1,901 | 7,476 | 1,864 | 1,919 | 1,889 | 1,942 | 7,614 | ||||
Own credit adjustments | (22) | (80) | 155 | (102) | (34) | (43) | (24) | 2 | (2) | 2 | 4 | 6 | ||||
Strategic disposals | -- | 1,035 | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||||
Net fees and commissions | 611 | 2,497 | 570 | 462 | 449 | 519 | 2,000 | 503 | 518 | 528 | 575 | 2,124 | ||||
Income from trading activities | 160 | 1,012 | 437 | 312 | 286 | 114 | 1,149 | 158 | 72 | 94 | (7) | 317 | ||||
Other operating income | 1,442 | 1,724 | 53 | 90 | (207) | (29) | (93) | 64 | 84 | 195 | 108 | 451 | ||||
Total non-interest income | 2,191 | 6,188 | 1,215 | 762 | 494 | 561 | 3,032 | 727 | 672 | 819 | 680 | 2,898 | ||||
Total income | 4,162 | 13,987 | 3,092 | 2,604 | 2,350 | 2,462 | 10,508 | 2,591 | 2,591 | 2,708 | 2,622 | 10,512 | ||||
Litigation and conduct costs | (85) | (895) | 4 | 85 | (8) | (194) | (113) | (16) | 34 | (294) | (190) | (466) | ||||
Other operating expenses | (2,431) | (8,385) | (1,834) | (1,981) | (1,795) | (2,135) | (7,745) | (1,788) | (1,729) | (1,637) | (2,138) | (7,292) | ||||
Operating expenses | (2,516) | (9,280) | (1,830) | (1,896) | (1,803) | (2,329) | (7,858) | (1,804) | (1,695) | (1,931) | (2,328) | (7,758) | ||||
Operating profit before impairment losses/releases | 1,646 | 4,707 | 1,262 | 708 | 547 | 133 | 2,650 | 787 | 896 | 777 | 294 | 2,754 | ||||
Impairment (losses)/releases | (164) | (724) | (783) | (1,963) | (246) | (139) | (3,131) | 98 | 606 | 233 | 341 | 1,278 | ||||
Operating profit/(loss) before tax | 1,482 | 3,983 | 479 | (1,255) | 301 | (6) | (481) | 885 | 1,502 | 1,010 | 635 | 4,032 | ||||
Tax (charge)/credit | (37) | (439) | (188) | 396 | (207) | (75) | (74) | (233) | (199) | (330) | (234) | (996) | ||||
Profit/(loss) from continuing operations | 1,445 | 3,544 | 291 | (859) | 94 | (81) | (555) | 652 | 1,303 | 680 | 401 | 3,036 | ||||
Profit/(loss) from discontinued operations, net of tax | 65 | 256 | 40 | (35) | 55 | 61 | 121 | 61 | 54 | 64 | 97 | 276 | ||||
Profit/(loss) for the period | 1,510 | 3,800 | 331 | (894) | 149 | (20) | (434) | 713 | 1,357 | 744 | 498 | 3,312 | ||||
Attributable to: | ||||||||||||||||
Ordinary shareholders | 1,411 | 3,133 | 288 | (994) | 62 | (109) | (753) | 620 | 1,222 | 674 | 434 | 2,950 | ||||
Other owners | 99 | 406 | 105 | 103 | 85 | 88 | 381 | 92 | 95 | 68 | 63 | 318 | ||||
Non-controlling interests | -- | 261 | (62) | (3) | 2 | 1 | (62) | 1 | 40 | 2 | 1 | 44 |
2019 | 2020 | 2021 | ||||||||||||||
Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||
Key metrics and ratios | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Cost:income ratio (1) | 60.1% | 66.0% | 58.7% | 72.4% | 76.4% | 94.5% | 74.4% | 69.2% | 64.9% | 70.9% | 88.6% | 73.4% | ||||
Earnings/(loss) per ordinary share | ||||||||||||||||
- basic | 11.7p | 26.0p | 2.4p | (8.2p) | 0.5p | (0.9p) | (6.2p) | 5.1p | 10.6p | 5.8p | 3.8p | 25.4p | ||||
Go-forward group return on tangible equity (2) | 19.1% | 10.2% | 4.1% | (10.1%) | 0.9% | -- | (1.3%) | 8.5% | 17.3% | 8.6% | 5.6% | 10.0% | ||||
Group return on tangible equity (2) | 17.7% | 9.4% | 3.6% | (12.4%) | 0.8% | (1.4%) | (2.4%) | 7.9% | 15.6% | 8.5% | 5.6% | 9.4% | ||||
Average tangible equity (2) | 31,908 | 33,200 | 32,107 | 32,081 | 31,663 | 31,753 | 31,902 | 31,233 | 31,299 | 31,625 | 31,168 | 31,332 | ||||
Average number of ordinary shares outstanding during | ||||||||||||||||
the period (millions) | 12,078 | 12,067 | 12,074 | 12,085 | 12,110 | 12,112 | 12,095 | 12,065 | 11,563 | 11,526 | 11,341 | 11,622 |
Notes: |
(1) Total operating expenses less operating lease depreciation divided by total income less operating lease depreciation. |
(2) Return on tangible equity is annualised profit or loss for the period attributable to ordinary shareholders divided by average tangible equity. Average tangible equity is average total equity excluding non-controlling interests less average intangible assets and average other owners' equity. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 3 |
Highlights |
Section 1.2 - Balance sheet |
Consolidated balance sheet | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
31 December | 31 March | 30 June | 30 September | 31 December | 31 March | 30 June | 30 September | 31 December | ||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Assets | ||||||||||||
Cash and balances at central banks | 80,993 | 81,085 | 105,242 | 111,681 | 124,489 | 140,347 | 151,511 | 164,851 | 177,757 | |||
Trading assets | 76,745 | 81,843 | 72,402 | 70,820 | 68,990 | 65,558 | 70,195 | 66,357 | 59,158 | |||
Derivatives | 150,029 | 208,734 | 183,419 | 164,311 | 166,523 | 122,955 | 109,556 | 103,770 | 106,139 | |||
Settlement balances | 4,387 | 9,840 | 7,806 | 10,947 | 2,297 | 8,013 | 7,793 | 8,140 | 2,141 | |||
Loans to banks - amortised cost | 7,554 | 9,306 | 8,011 | 6,571 | 6,955 | 7,239 | 8,176 | 9,251 | 7,682 | |||
Loans to customers - amortised cost | 326,947 | 351,328 | 352,341 | 353,691 | 360,544 | 358,728 | 362,711 | 361,022 | 358,990 | |||
Other financial assets | 61,452 | 60,822 | 62,727 | 58,736 | 55,148 | 52,323 | 51,469 | 47,000 | 46,145 | |||
Intangible assets | 6,622 | 6,619 | 6,602 | 6,600 | 6,655 | 6,666 | 6,694 | 6,723 | 6,723 | |||
Other assets | 8,310 | 8,067 | 8,337 | 8,204 | 7,890 | 7,947 | 7,753 | 11,164 | 8,242 | |||
Assets of disposal groups | -- | -- | -- | -- | -- | -- | -- | -- | 9,015 | |||
Total assets | 723,039 | 817,644 | 806,887 | 791,561 | 799,491 | 769,776 | 775,858 | 778,278 | 781,992 | |||
Liabilities | ||||||||||||
Bank deposits | 20,493 | 26,733 | 21,119 | 18,666 | 20,606 | 18,610 | 14,394 | 17,375 | 26,279 | |||
Customer deposits | 369,247 | 384,800 | 408,268 | 418,358 | 431,739 | 453,308 | 467,214 | 476,319 | 479,810 | |||
Settlement balances | 4,069 | 8,905 | 6,895 | 9,839 | 5,545 | 8,234 | 7,119 | 7,792 | 2,068 | |||
Trading liabilities | 73,949 | 80,767 | 75,540 | 73,023 | 72,256 | 70,508 | 75,847 | 70,946 | 64,598 | |||
Derivatives | 146,879 | 204,477 | 179,859 | 160,532 | 160,705 | 116,015 | 103,992 | 98,560 | 100,835 | |||
Other financial liabilities | 45,220 | 47,870 | 49,681 | 48,848 | 45,811 | 43,743 | 46,118 | 47,857 | 49,326 | |||
Subordinated liabilities | 9,979 | 10,898 | 13,558 | 10,467 | 9,962 | 8,078 | 8,696 | 8,675 | 8,429 | |||
Notes in circulation | 2,109 | 2,009 | 2,146 | 2,308 | 2,655 | 2,705 | 2,906 | 3,037 | 3,047 | |||
Other liabilities | 7,538 | 7,062 | 6,760 | 6,370 | 6,388 | 5,926 | 5,687 | 5,830 | 5,797 | |||
Total liabilities | 679,483 | 773,521 | 763,826 | 748,411 | 755,667 | 727,127 | 731,973 | 736,391 | 740,189 | |||
Equity | ||||||||||||
Owners' equity | 43,547 | 44,163 | 43,103 | 43,188 | 43,860 | 42,684 | 43,875 | 41,876 | 41,796 | |||
Non-controlling interests | 9 | (40) | (42) | (38) | (36) | (35) | 10 | 11 | 7 | |||
Total equity | 43,556 | 44,123 | 43,061 | 43,150 | 43,824 | 42,649 | 43,885 | 41,887 | 41,803 | |||
Total liabilities and equity | 723,039 | 817,644 | 806,887 | 791,561 | 799,491 | 769,776 | 775,858 | 778,278 | 781,992 | |||
Contingent liabilities and commitments | 124,997 | 118,252 | 124,314 | 125,714 | 128,732 | 122,549 | 123,509 | 124,809 | 125,367 |
Highlights |
Section 1.2 - Balance sheet and key metrics |
2019 | 2020 | 2021 | ||||||||||
Key metrics and ratios | 31 December | 31 March | 30 June | 30 September | 31 December | 31 March | 30 June | 30 September | 31 December | |||
Tangible net asset value (TNAV) per ordinary share | 268p | 273p | 264p | 265p | 261p | 261p | 266p | 269p | 272p | |||
Liquidity coverage ratio (LCR) | 152% | 152% | 166% | 157% | 165% | 158% | 164% | 166% | 172% | |||
Liquidity portfolio (£m) (1) | 199,000 | 201,000 | 243,000 | 243,000 | 262,000 | 263,000 | 277,000 | 278,000 | 286,000 | |||
Net stable funding ratio (NSFR) (2) | 141% | 138% | 144% | 147% | 151% | 153% | 154% | 155% | 157% | |||
Loan:deposit ratio (3) | 86% | 87% | 82% | 81% | 79% | 77% | 75% | 74% | 72% | |||
Short-term wholesale funding (£m) | 19,422 | 31,615 | 22,163 | 24,506 | 18,704 | 20,320 | 22,750 | 22,299 | 23,029 | |||
Wholesale funding (£m) | 74,874 | 85,679 | 85,678 | 75,250 | 70,721 | 61,424 | 65,714 | 66,713 | 76,722 | |||
Common Equity Tier 1 (CET1) ratio | 16.2% | 16.6% | 17.2% | 18.2% | 18.5% | 18.2% | 18.2% | 18.7% | 18.2% | |||
Risk-weighted assets (RWAs) (£bn) | 179.2 | 185.2 | 181.5 | 173.9 | 170.3 | 164.7 | 163.0 | 159.8 | 157.0 | |||
UK leverage ratio (4) | 6.1% | 6.0% | 6.3% | 6.3% | 6.5% | 6.4% | 6.3% | 6.0% | 5.9% | |||
Tangible equity (£m) | 32,371 | 32,990 | 32,006 | 32,093 | 31,712 | 30,126 | 30,751 | 30,769 | 30,689 | |||
Number of ordinary shares in issue (millions) | 12,094 | 12,094 | 12,125 | 12,127 | 12,129 | 11,560 | 11,569 | 11,436 | 11,272 |
Notes: |
(1) Liquidity portfolio approach has been aligned to the ILAAP methodology with effect from December 2019. |
(2) NSFR reported in line with CRR2 regulations finalised in June 2019. |
(3) Net customer loans held at amortised cost, excluding reverse repos, divided by total customer deposits, excluding repos. |
(4) The UK leverage exposure is calculated in accordance with the Leverage Ratio (CRR) part of the PRA Rulebook. For additional information, refer to page 6. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 4 |
Business performance review |
Section 2.1 - Income statement and analysis |
Net interest margin | |||||||||||||||
2019 | 2020 | 2021 | |||||||||||||
Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full year | ||||
Net interest income | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Continuing operations | |||||||||||||||
Net interest income | 1,971 | 7,799 | 1,877 | 1,842 | 1,856 | 1,901 | 7,476 | 1,864 | 1,919 | 1,889 | 1,942 | 7,614 | |||
Average interest-earning assets (IEA) | |||||||||||||||
- NatWest Group | 447,030 | 439,994 | 449,266 | 487,778 | 498,453 | 499,793 | 483,719 | 502,515 | 516,431 | 527,886 | 551,577 | 524,886 | |||
- Bank (1) | 301,605 | 295,167 | 307,372 | 315,402 | 317,981 | 316,217 | 314,279 | 320,863 | 322,971 | 325,361 | 329,493 | 324,805 | |||
- Retail Banking | 172,896 | 167,186 | 177,394 | 179,777 | 182,197 | 186,105 | 181,383 | 191,183 | 193,782 | 197,535 | 201,546 | 196,044 | |||
- Private Banking | 22,379 | 21,689 | 22,673 | 23,271 | 24,032 | 25,231 | 23,806 | 26,034 | 26,823 | 27,510 | 28,499 | 27,224 | |||
- Commercial & Institutional | 214,567 | 211,289 | 215,353 | 235,989 | 239,998 | 239,599 | 232,772 | 235,920 | 235,812 | 237,946 | 244,819 | 238,647 | |||
- Ulster Bank RoI (2) | 15,650 | 16,538 | 15,695 | 16,695 | 17,549 | 17,040 | 16,600 | 16,032 | 16,115 | 15,701 | 15,018 | 15,854 | |||
- Liquid asset buffer | 129,775 | 128,289 | 126,199 | 155,681 | 162,922 | 166,536 | 152,840 | 165,620 | 177,345 | 186,824 | 207,066 | 184,227 | |||
Gross yield on interest-earning assets of the banking business | 2.47% | 2.51% | 2.36% | 2.06% | 1.93% | 1.83% | 2.01% | 1.80% | 1.78% | 1.73% | 1.68% | 1.75% | |||
Cost of interest-bearing liabilities of the banking business | (1.11%) | (1.10%) | (1.02%) | (0.75%) | (0.67%) | (0.49%) | (0.69%) | (0.48%) | (0.44%) | (0.47%) | (0.43%) | (0.46%) | |||
Interest spread of the banking business | 1.36% | 1.41% | 1.34% | 1.31% | 1.26% | 1.34% | 1.32% | 1.32% | 1.34% | 1.26% | 1.25% | 1.29% | |||
Benefit from interest free funds | 0.39% | 0.36% | 0.34% | 0.21% | 0.22% | 0.17% | 0.23% | 0.18% | 0.15% | 0.16% | 0.15% | 0.16% | |||
Net interest margin | |||||||||||||||
- NatWest Group | 1.75% | 1.77% | 1.68% | 1.52% | 1.48% | 1.51% | 1.55% | 1.50% | 1.49% | 1.42% | 1.40% | 1.45% | |||
- Bank (1) | 2.55% | 2.59% | 2.41% | 2.31% | 2.29% | 2.35% | 2.34% | 2.33% | 2.35% | 2.28% | 2.32% | 2.32% | |||
- Retail Banking | 2.32% | 2.47% | 2.28% | 2.18% | 2.05% | 2.03% | 2.13% | 2.06% | 2.08% | 2.09% | 2.08% | 2.08% | |||
- Private Banking | 2.30% | 2.40% | 2.25% | 2.14% | 1.99% | 1.86% | 2.05% | 1.79% | 1.75% | 1.76% | 1.75% | 1.76% | |||
- Commercial & Institutional | 1.53% | 1.48% | 1.39% | 1.34% | 1.28% | 1.24% | 1.31% | 1.26% | 1.30% | 1.21% | 1.25% | 1.26% | |||
- Ulster Bank RoI | nm | nm | nm | nm | nm | nm | nm | nm | nm | nm | nm | nm |
nm = not meaningful | |
Notes: | |
(1) NatWest Group excluding Commercial & Institutional trading book, Ulster Bank RoI and liquid asset buffer. | |
(2) Average interest-earning assets exclude assets of disposal groups. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 5 |
Business performance review |
Section 2.2 - Capital and leverage ratios |
Capital and leverage ratios | |||||||||||||
2019 | 2020 | 2021 | |||||||||||
31 December | 31 March | 30 June | 30 September | 31 December | 31 March | 30 June | 30 September | 31 December | |||||
Risk asset ratios | % | % | % | % | % | % | % | % | % | ||||
CET1 | 16.2% | 16.6% | 17.2% | 18.2% | 18.5% | 18.2% | 18.2% | 18.7% | 18.2% | ||||
Tier 1 | 19.3% | 19.6% | 20.3% | 20.9% | 21.9% | 21.9% | 22.2% | 21.5% | 21.0% | ||||
Total | 22.8% | 23.0% | 24.1% | 25.0% | 25.7% | 24.8% | 25.6% | 25.2% | 24.7% | ||||
Capital (1) | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Tangible equity | 32,371 | 32,990 | 32,006 | 32,093 | 31,712 | 30,126 | 30,751 | 30,769 | 30,689 | ||||
Expected losses less impairment provisions | (167) | -- | -- | -- | -- | -- | -- | -- | -- | ||||
Prudential valuation adjustment | (431) | (531) | (370) | (341) | (286) | (436) | (285) | (264) | (274) | ||||
Deferred tax assets | (757) | (722) | (844) | (835) | (760) | (750) | (832) | (765) | (761) | ||||
Own credit adjustments | (118) | (519) | (244) | (154) | (1) | 6 | 22 | 27 | 21 | ||||
Pension fund assets | (474) | (488) | (588) | (590) | (579) | (570) | (384) | (385) | (465) | ||||
Cash flow hedging reserve | (35) | (259) | (341) | (300) | (229) | 38 | 77 | 254 | 395 | ||||
Foreseeable ordinary dividends | (968) | -- | -- | -- | (364) | (547) | (500) | (402) | (846) | ||||
Foreseeable charges and pension contributions | (365) | -- | -- | -- | (266) | -- | (924) | (816) | (1,190) | ||||
Prudential amortisation of software development costs | -- | -- | -- | -- | 473 | 524 | 537 | 476 | 411 | ||||
Adjustment under IFRS 9 transitional arrangements | -- | 296 | 1,578 | 1,719 | 1,747 | 1,655 | 1,198 | 973 | 621 | ||||
Insufficient coverage for non-performing exposures | -- | -- | -- | -- | -- | -- | -- | (5) | (5) | ||||
Other deductions | (2) | -- | -- | -- | -- | -- | -- | -- | -- | ||||
Total deductions | (3,317) | (2,223) | (809) | (501) | (265) | (80) | (1,091) | (907) | (2,093) | ||||
CET1 capital | 29,054 | 30,767 | 31,197 | 31,592 | 31,447 | 30,046 | 29,660 | 29,862 | 28,596 | ||||
End point AT1 capital | 4,051 | 4,051 | 3,990 | 3,990 | 4,983 | 5,380 | 5,916 | 3,875 | 3,875 | ||||
Grandfathered instrument transitional arrangements | 1,506 | 1,559 | 1,564 | 840 | 830 | 710 | 569 | 571 | 571 | ||||
AT1 capital | 5,557 | 5,610 | 5,554 | 4,830 | 5,813 | 6,090 | 6,485 | 4,446 | 4,446 | ||||
Tier 1 capital | 34,611 | 36,377 | 36,751 | 36,422 | 37,260 | 36,136 | 36,145 | 34,308 | 33,042 | ||||
End point T2 capital | 4,900 | 4,883 | 5,596 | 5,710 | 5,255 | 4,118 | 4,973 | 5,522 | 5,402 | ||||
Grandfathered instrument transitional arrangements | 1,312 | 1,344 | 1,340 | 1,283 | 1,218 | 673 | 540 | 362 | 304 | ||||
Tier 2 capital | 6,212 | 6,227 | 6,936 | 6,993 | 6,473 | 4,791 | 5,513 | 5,884 | 5,706 | ||||
Total regulatory capital | 40,823 | 42,604 | 43,687 | 43,415 | 43,733 | 40,927 | 41,658 | 40,192 | 38,748 | ||||
Risk-weighted assets | |||||||||||||
Credit risk | 131,012 | 136,354 | 135,657 | 132,387 | 129,914 | 125,131 | 122,475 | 122,270 | 120,116 | ||||
Counterparty credit risk | 12,631 | 13,917 | 12,354 | 10,170 | 9,104 | 8,579 | 8,619 | 8,475 | 7,907 | ||||
Market risk | 12,930 | 12,998 | 11,517 | 9,399 | 9,362 | 9,962 | 10,845 | 7,979 | 7,917 | ||||
Operational risk | 22,599 | 21,930 | 21,930 | 21,930 | 21,930 | 21,031 | 21,031 | 21,031 | 21,031 | ||||
Total RWAs | 179,172 | 185,199 | 181,458 | 173,886 | 170,310 | 164,703 | 162,970 | 159,755 | 156,971 | ||||
2019 | 2020 | 2021 | |||||||||||
31 December | 31 March | 30 June | 30 September | 31 December | 31 March | 30 June | 30 September | 31 December | |||||
Leverage | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Cash and balances at central banks | 80,993 | 81,085 | 105,242 | 111,681 | 124,489 | 140,347 | 151,511 | 164,851 | 177,757 | ||||
Trading assets | 76,745 | 81,843 | 72,402 | 70,820 | 68,990 | 65,558 | 70,195 | 66,357 | 59,158 | ||||
Derivatives | 150,029 | 208,734 | 183,419 | 164,311 | 166,523 | 122,955 | 109,556 | 103,770 | 106,139 | ||||
Other financial assets | 395,953 | 421,456 | 423,079 | 418,998 | 422,647 | 418,290 | 422,356 | 417,273 | 412,817 | ||||
Other assets | 19,319 | 24,526 | 22,745 | 25,751 | 16,842 | 22,626 | 22,240 | 26,027 | 17,106 | ||||
Assets of disposal groups | -- | -- | -- | -- | -- | -- | -- | -- | 9,015 | ||||
Total assets | 723,039 | 817,644 | 806,887 | 791,561 | 799,491 | 769,776 | 775,858 | 778,278 | 781,992 | ||||
Derivatives | |||||||||||||
- netting and variation margin | (157,778) | (220,973) | (194,387) | (172,389) | (172,658) | (126,250) | (112,441) | (107,160) | (110,204) | ||||
- potential future exposures | 43,004 | 46,254 | 44,019 | 40,439 | 38,171 | 38,279 | 37,468 | 36,382 | 35,035 | ||||
Securities financing transactions gross up | 2,224 | 2,484 | 1,312 | 1,193 | 1,179 | 3,249 | 1,486 | 1,903 | 1,397 | ||||
Undrawn commitments | 42,363 | 39,580 | 43,484 | 44,650 | 45,853 | 43,734 | 43,979 | 44,292 | 44,240 | ||||
Regulatory deductions and other adjustments | (8,978) | (8,818) | (14,579) | (17,167) | (8,943) | (14,535) | (13,831) | (14,340) | (8,980) | ||||
Claims on central banks | (73,544) | (73,101) | (96,373) | (103,906) | (122,252) | (137,685) | (148,644) | (161,688) | (174,148) | ||||
Exclusion of bounce bank loans | -- | -- | (5,248) | (7,492) | (8,283) | (8,609) | (8,239) | (7,845) | (7,474) | ||||
UK leverage exposure (2) | 570,330 | 603,070 | 585,115 | 576,889 | 572,558 | 567,959 | 575,636 | 569,822 | 561,858 | ||||
Tier 1 capital | 34,611 | 36,377 | 36,751 | 36,422 | 37,260 | 36,136 | 36,145 | 34,308 | 33,042 | ||||
UK leverage ratio (2) | 6.1% | 6.0% | 6.3% | 6.3% | 6.5% | 6.4% | 6.3% | 6.0% | 5.9% |
Notes: |
(1) Based on the PRA Rulebook Instrument transitional arrangements, therefore includes the transitional relief on grandfathered capital instruments and the transitional arrangements for the capital impact of IFRS 9 expected credit loss (ECL) accounting. The impact of the IFRS 9 transitional adjustments at 31 December 2021 was £0.6 billion CET1 capital, £0.5 billion total capital and £36 million RWAs. Excluding these adjustments, the CET1 ratio would be 17.8%. The transitional relief on grandfathered instruments at 31 December 2021 was £0.9 billion. Excluding both the transitional relief on grandfathered capital instruments and the transitional arrangements for the capital impact of IFRS 9 expected credit loss (ECL) accounting, the end-point Total capital ratio would be 23.8%. |
(2) The UK leverage exposure is calculated in accordance with the Leverage Ratio (CRR) part of the PRA Rulebook and transitional Tier 1 capital is calculated in accordance with the PRA Rulebook Instrument as explained in note 1 above. Excluding the IFRS 9 transitional adjustment, the UK leverage ratio at 31 December 2021 would be 5.8%. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 6 |
Segment performance |
Section 3.1 - Key measures segment performance |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 7 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Segment performance | ||||||||||
Quarter ended 31 December 2021 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 1,057 | 126 | 764 | (28) | 1,919 | 23 | 1,942 | |||
Own credit adjustments | -- | -- | 3 | 1 | 4 | -- | 4 | |||
Other non-interest income | 107 | 127 | 401 | 21 | 656 | 20 | 676 | |||
Total income | 1,164 | 253 | 1,168 | (6) | 2,579 | 43 | 2,622 | |||
Direct expenses | (281) | (61) | (482) | (1,236) | (2,060) | (78) | (2,138) | |||
Indirect expenses | (441) | (89) | (530) | 1,086 | 26 | (26) | -- | |||
Other operating expenses | (722) | (150) | (1,012) | (150) | (2,034) | (104) | (2,138) | |||
Litigation and conduct costs | (52) | (5) | (47) | (59) | (163) | (27) | (190) | |||
Operating expenses | (774) | (155) | (1,059) | (209) | (2,197) | (131) | (2,328) | |||
Operating profit/(loss) before impairment losses/releases | 390 | 98 | 109 | (215) | 382 | (88) | 294 | |||
Impairment (losses)/releases | (5) | 12 | 317 | 4 | 328 | 13 | 341 | |||
Operating profit/(loss) | 385 | 110 | 426 | (211) | 710 | (75) | 635 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 5.6% | |||
Return on equity (3) | 19.7% | 21.3% | 8.3% | nm | nm | nm | na | |||
Cost:income ratio (4) | 66.5% | 61.3% | 90.4% | nm | 85.0% | nm | 88.6% | |||
Total assets (£bn) | 210.0 | 29.9 | 425.9 | 93.4 | 759.2 | 22.8 | 782.0 | |||
Funded assets (£bn) (5) | 210.0 | 29.8 | 321.3 | 92.0 | 653.1 | 22.8 | 675.9 | |||
Net loans to customers - amortised cost (£bn) | 182.2 | 18.4 | 124.2 | 27.5 | 352.3 | 6.7 | 359.0 | |||
Loan impairment rate | 0.01% | (0.26%) | (1.01%) | nm | (0.37%) | nm | (0.38%) | |||
Impairment provisions (£bn) | (1.5) | (0.1) | (1.7) | -- | (3.3) | (0.5) | (3.8) | |||
Impairment provisions - stage 3 (£bn) | (0.9) | -- | (0.7) | -- | (1.6) | (0.4) | (2.0) | |||
Customer deposits (£bn) | 188.9 | 39.3 | 217.5 | 15.7 | 461.4 | 18.4 | 479.8 | |||
Risk-weighted assets (RWAs) (£bn) | 36.7 | 11.3 | 98.1 | 1.8 | 147.9 | 9.1 | 157.0 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 36.7 | 11.3 | 99.9 | 2.1 | 150.0 | 9.1 | 159.1 | |||
Employee numbers (FTEs - thousands) | 14.6 | 1.9 | 11.8 | 27.9 | 56.2 | 1.7 | 57.9 | |||
Third party customer asset rate (6) | 2.58% | 2.34% | 2.75% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.05%) | 0.00% | (0.01%) | nm | nm | 0.05% | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 8 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Segment performance | ||||||||||
Quarter ended 30 September 2021 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 1,041 | 122 | 723 | (20) | 1,866 | 23 | 1,889 | |||
Own credit adjustments | -- | -- | 2 | -- | 2 | -- | 2 | |||
Other non-interest income | 90 | 73 | 471 | 127 | 761 | 56 | 817 | |||
Total income | 1,131 | 195 | 1,196 | 107 | 2,629 | 79 | 2,708 | |||
Direct expenses | (165) | (47) | (417) | (935) | (1,564) | (73) | (1,637) | |||
Indirect expenses | (372) | (72) | (428) | 912 | 40 | (40) | -- | |||
Other operating expenses | (537) | (119) | (845) | (23) | (1,524) | (113) | (1,637) | |||
Litigation and conduct costs | (15) | 3 | (29) | (254) | (295) | 1 | (294) | |||
Operating expenses | (552) | (116) | (874) | (277) | (1,819) | (112) | (1,931) | |||
Operating profit/(loss) before impairment losses/releases | 579 | 79 | 322 | (170) | 810 | (33) | 777 | |||
Impairment (losses)/releases | (16) | 15 | 230 | (3) | 226 | 7 | 233 | |||
Operating profit/(loss) | 563 | 94 | 552 | (173) | 1,036 | (26) | 1,010 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 8.5% | |||
Return on equity (3) | 29.9% | 18.1% | 11.0% | nm | nm | nm | na | |||
Cost:income ratio (4) | 48.8% | 59.5% | 72.2% | nm | 68.8% | nm | 70.9% | |||
Total assets (£bn) | 207.6 | 28.2 | 436.0 | 81.3 | 753.1 | 25.2 | 778.3 | |||
Funded assets (£bn) (5) | 207.6 | 28.2 | 333.9 | 79.6 | 649.3 | 25.2 | 674.5 | |||
Net loans to customers - amortised cost (£bn) | 180.5 | 18.4 | 125.4 | 23.5 | 347.8 | 13.2 | 361.0 | |||
Loan impairment rate | 0.04% | (0.32%) | (0.72%) | nm | (0.26%) | nm | (0.26%) | |||
Impairment provisions (£bn) | (1.6) | (0.1) | (2.1) | -- | (3.8) | (0.5) | (4.3) | |||
Impairment provisions - stage 3 (£bn) | (0.8) | -- | (1.0) | -- | (1.8) | (0.4) | (2.2) | |||
Customer deposits (£bn) | 186.3 | 35.7 | 217.4 | 18.4 | 457.8 | 18.5 | 476.3 | |||
Risk-weighted assets (RWAs) (£bn) | 36.6 | 11.4 | 99.9 | 1.9 | 149.8 | 10.0 | 159.8 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 36.6 | 11.4 | 101.6 | 2.1 | 151.7 | 10.0 | 161.7 | |||
Employee numbers (FTEs - thousands) | 15.0 | 1.9 | 12.0 | 27.5 | 56.4 | 1.8 | 58.2 | |||
Third party customer asset rate (6) | 2.64% | 2.36% | 2.67% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.05%) | 0.00% | (0.02%) | nm | nm | 0.02% | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 9 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Quarter ended 30 June 2021 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 1,003 | 117 | 762 | 10 | 1,892 | 27 | 1,919 | |||
Own credit adjustments | -- | -- | (1) | (1) | (2) | -- | (2) | |||
Other non-interest income | 91 | 66 | 460 | 34 | 651 | 23 | 674 | |||
Total income | 1,094 | 183 | 1,221 | 43 | 2,541 | 50 | 2,591 | |||
Direct expenses | (171) | (49) | (428) | (999) | (1,647) | (82) | (1,729) | |||
Indirect expenses | (422) | (79) | (446) | 986 | 39 | (39) | -- | |||
Other operating expenses | (593) | (128) | (874) | (13) | (1,608) | (121) | (1,729) | |||
Litigation and conduct costs | (7) | -- | (35) | 80 | 38 | (4) | 34 | |||
Operating expenses | (600) | (128) | (909) | 67 | (1,570) | (125) | (1,695) | |||
Operating profit/(loss) before impairment releases | 494 | 55 | 312 | 110 | 971 | (75) | 896 | |||
Impairment releases | 91 | 27 | 488 | -- | 606 | -- | 606 | |||
Operating profit/(loss) | 585 | 82 | 800 | 110 | 1,577 | (75) | 1,502 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 15.6% | |||
Return on equity (3) | 32.0% | 15.9% | 15.9% | nm | nm | nm | na | |||
Cost:income ratio (4) | 54.8% | 69.9% | 73.7% | nm | 61.3% | nm | 64.9% | |||
Total assets (£bn) | 204.2 | 27.7 | 442.2 | 76.4 | 750.5 | 25.4 | 775.9 | |||
Funded assets (£bn) (5) | 204.2 | 27.7 | 334.5 | 74.5 | 640.9 | 25.4 | 666.3 | |||
Net loans to customers - amortised cost (£bn) | 178.1 | 18.0 | 125.2 | 24.7 | 346.0 | 16.7 | 362.7 | |||
Loan impairment rate | (0.20%) | (0.60%) | (1.53%) | nm | (0.69%) | nm | (0.66%) | |||
Impairment provisions (£bn) | (1.6) | (0.1) | (2.3) | -- | (4.0) | (0.7) | (4.7) | |||
Impairment provisions - stage 3 (£bn) | (0.8) | -- | (1.0) | -- | (1.8) | (0.4) | (2.2) | |||
Customer deposits (£bn) | 184.1 | 34.7 | 212.4 | 17.5 | 448.7 | 18.5 | 467.2 | |||
Risk-weighted assets (RWAs) (£bn) | 35.6 | 11.2 | 104.0 | 1.7 | 152.5 | 10.5 | 163.0 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 35.6 | 11.3 | 105.8 | 1.8 | 154.5 | 10.5 | 165.0 | |||
Employee numbers (FTEs - thousands) | 15.3 | 1.9 | 12.3 | 27.1 | 56.6 | 1.9 | 58.5 | |||
Third party customer asset rate (6) | 2.67% | 2.36% | 2.81% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.06%) | 0.00% | (0.04%) | nm | nm | 0.01% | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 10 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Quarter ended 31 March 2021 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 973 | 115 | 725 | 24 | 1,837 | 27 | 1,864 | |||
Own credit adjustments | -- | -- | 2 | -- | 2 | -- | 2 | |||
Other non-interest income | 83 | 70 | 526 | 17 | 696 | 29 | 725 | |||
Total income | 1,056 | 185 | 1,253 | 41 | 2,535 | 56 | 2,591 | |||
Direct expenses | (188) | (43) | (446) | (1,052) | (1,729) | (59) | (1,788) | |||
Indirect expenses | (397) | (83) | (469) | 995 | 46 | (46) | -- | |||
Other operating expenses | (585) | (126) | (915) | (57) | (1,683) | (105) | (1,788) | |||
Litigation and conduct costs | (2) | 5 | -- | (10) | (7) | (9) | (16) | |||
Operating expenses | (587) | (121) | (915) | (67) | (1,690) | (114) | (1,804) | |||
Operating profit/(loss) before impairment losses/releases | 469 | 64 | 338 | (26) | 845 | (58) | 787 | |||
Impairment (losses)/releases | (34) | -- | 125 | (1) | 90 | 8 | 98 | |||
Operating profit/(loss) | 435 | 64 | 463 | (27) | 935 | (50) | 885 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 7.9% | |||
Return on equity (3) | 23.0% | 12.4% | 8.5% | nm | nm | nm | na | |||
Cost:income ratio (4) | 55.6% | 65.4% | 72.3% | nm | 66.2% | nm | 69.2% | |||
Total assets (£bn) | 199.2 | 26.9 | 450.6 | 67.2 | 743.9 | 25.9 | 769.8 | |||
Funded assets (£bn) (5) | 199.2 | 26.9 | 329.5 | 65.3 | 620.9 | 25.9 | 646.8 | |||
Net loans to customers - amortised cost (£bn) | 174.8 | 17.5 | 128.8 | 20.7 | 341.8 | 16.9 | 358.7 | |||
Loan impairment rate | 0.08% | 0.00% | (0.38%) | nm | (0.10%) | nm | (0.11%) | |||
Impairment provisions (£bn) | (1.8) | (0.1) | (2.9) | (0.1) | (4.9) | (0.7) | (5.6) | |||
Impairment provisions - stage 3 (£bn) | (0.8) | -- | (1.0) | (0.1) | (1.9) | (0.5) | (2.4) | |||
Customer deposits (£bn) | 179.1 | 33.5 | 205.1 | 17.2 | 434.9 | 18.4 | 453.3 | |||
Risk-weighted assets (RWAs) (£bn) | 35.0 | 11.2 | 105.8 | 1.6 | 153.6 | 11.1 | 164.7 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 35.0 | 11.2 | 108.6 | 1.7 | 156.5 | 11.1 | 167.6 | |||
Employee numbers (FTEs - thousands) | 15.8 | 1.9 | 13.2 | 26.0 | 56.9 | 1.9 | 58.8 | |||
Third party customer asset rate (6) | 2.73% | 2.36% | 2.62% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.08%) | 0.00% | (0.01%) | nm | nm | 0.00% | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 11 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Year ended 31 December 2020 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 3,868 | 489 | 3,054 | (57) | 7,354 | 122 | 7,476 | |||
Own credit adjustments | -- | -- | (24) | -- | (24) | -- | (24) | |||
Other non-interest income | 313 | 274 | 2,548 | (179) | 2,956 | 100 | 3,056 | |||
Total income | 4,181 | 763 | 5,578 | (236) | 10,286 | 222 | 10,508 | |||
Direct expenses | (776) | (203) | (2,090) | (4,425) | (7,494) | (251) | (7,745) | |||
Indirect expenses | (1,745) | (278) | (1,948) | 4,154 | 183 | (183) | -- | |||
Other operating expenses | (2,521) | (481) | (4,038) | (271) | (7,311) | (434) | (7,745) | |||
Litigation and conduct costs | (19) | 26 | 7 | (120) | (106) | (7) | (113) | |||
Operating expenses | (2,540) | (455) | (4,031) | (391) | (7,417) | (441) | (7,858) | |||
Operating profit/(loss) before impairment losses | 1,641 | 308 | 1,547 | (627) | 2,869 | (219) | 2,650 | |||
Impairment losses | (792) | (100) | (2,074) | (26) | (2,992) | (139) | (3,131) | |||
Operating profit/(loss) | 849 | 208 | (527) | (653) | (123) | (358) | (481) | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | (2.4%) | |||
Return on equity (3) | 10.2% | 10.3% | (3.7%) | nm | nm | nm | na | |||
Cost:income ratio (4) | 60.8% | 59.6% | 71.5% | nm | 71.7% | nm | 74.4% | |||
Total assets (£bn) | 197.6 | 26.2 | 491.5 | 57.6 | 772.9 | 26.6 | 799.5 | |||
Funded assets (£bn) (5) | 197.6 | 26.2 | 327.3 | 55.3 | 606.4 | 26.6 | 633.0 | |||
Net loans to customers - amortised cost (£bn) | 172.3 | 17.0 | 129.9 | 23.3 | 342.5 | 18.0 | 360.5 | |||
Loan impairment rate | 0.45% | 0.58% | 1.56% | nm | 0.86% | nm | 0.85% | |||
Impairment provisions (£bn) | (1.8) | (0.1) | (3.2) | (0.1) | (5.2) | (0.8) | (6.0) | |||
Impairment provisions - stage 3 (£bn) | (0.8) | -- | (1.2) | (0.1) | (2.1) | (0.5) | (2.6) | |||
Customer deposits (£bn) | 171.8 | 32.4 | 201.6 | 6.3 | 412.1 | 19.6 | 431.7 | |||
Risk-weighted assets (RWAs) (£bn) | 36.7 | 10.9 | 109.5 | 1.4 | 158.5 | 11.8 | 170.3 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 36.7 | 10.9 | 111.3 | 1.6 | 160.5 | 11.8 | 172.3 | |||
Employee numbers (FTEs - thousands) | 16.0 | 1.8 | 13.5 | 25.9 | 57.2 | 2.0 | 59.2 | |||
Third party customer asset rate (6) | 2.89% | 2.53% | 2.81% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.19%) | (0.11%) | (0.08%) | nm | nm | (0.04%) | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 12 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Quarter ended 31 December 2020 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 949 | 118 | 750 | 53 | 1,870 | 31 | 1,901 | |||
Own credit adjustments | -- | -- | (43) | -- | (43) | -- | (43) | |||
Other non-interest income | 25 | 66 | 443 | 43 | 577 | 27 | 604 | |||
Total income | 974 | 184 | 1,150 | 96 | 2,404 | 58 | 2,462 | |||
Direct expenses | (179) | (46) | (487) | (1,362) | (2,074) | (61) | (2,135) | |||
Indirect expenses | (429) | (74) | (582) | 1,119 | 34 | (34) | -- | |||
Other operating expenses | (608) | (120) | (1,069) | (243) | (2,040) | (95) | (2,135) | |||
Litigation and conduct costs | (210) | 29 | -- | (5) | (186) | (8) | (194) | |||
Operating expenses | (818) | (91) | (1,069) | (248) | (2,226) | (103) | (2,329) | |||
Operating profit/(loss) before impairment losses | 156 | 93 | 81 | (152) | 178 | (45) | 133 | |||
Impairment losses | (65) | (26) | (39) | (1) | (131) | (8) | (139) | |||
Operating profit/(loss) | 91 | 67 | 42 | (153) | 47 | (53) | (6) | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | (1.4%) | |||
Return on equity (3) | 3.8% | 13.3% | (0.4%) | nm | nm | nm | na | |||
Cost:income ratio (4) | 84.0% | 49.5% | 92.7% | nm | 92.5% | nm | 94.5% | |||
Total assets (£bn) | 197.6 | 26.2 | 491.5 | 57.6 | 772.9 | 26.6 | 799.5 | |||
Funded assets (£bn) (5) | 197.6 | 26.2 | 327.3 | 55.3 | 606.4 | 26.6 | 633.0 | |||
Net loans to customers - amortised cost (£bn) | 172.3 | 17.0 | 129.9 | 23.3 | 342.5 | 18.0 | 360.5 | |||
Loan impairment rate | 0.15% | 0.61% | 0.12% | nm | 0.15% | nm | 0.15% | |||
Impairment provisions (£bn) | (1.8) | (0.1) | (3.2) | (0.1) | (5.2) | (0.8) | (6.0) | |||
Impairment provisions - stage 3 (£bn) | (0.8) | -- | (1.2) | (0.1) | (2.1) | (0.5) | (2.6) | |||
Customer deposits (£bn) | 171.8 | 32.4 | 201.6 | 6.3 | 412.1 | 19.6 | 431.7 | |||
Risk-weighted assets (RWAs) (£bn) | 36.7 | 10.9 | 109.5 | 1.4 | 158.5 | 11.8 | 170.3 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 36.7 | 10.9 | 111.3 | 1.6 | 160.5 | 11.8 | 172.3 | |||
Employee numbers (FTEs - thousands) | 16.0 | 1.8 | 13.5 | 25.9 | 57.2 | 2.0 | 59.2 | |||
Third party customer asset rate (6) | 2.81% | 2.38% | 2.64% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.10%) | (0.01%) | (0.01%) | nm | nm | (0.01%) | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 13 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Quarter ended 30 September 2020 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 937 | 120 | 767 | 2 | 1,826 | 30 | 1,856 | |||
Own credit adjustments | -- | -- | (34) | -- | (34) | -- | (34) | |||
Other non-interest income | 85 | 67 | 617 | (268) | 501 | 27 | 528 | |||
Total income | 1,022 | 187 | 1,350 | (266) | 2,293 | 57 | 2,350 | |||
Direct expenses | (225) | (53) | (485) | (965) | (1,728) | (67) | (1,795) | |||
Indirect expenses | (415) | (57) | (436) | 957 | 49 | (49) | -- | |||
Other operating expenses | (640) | (110) | (921) | (8) | (1,679) | (116) | (1,795) | |||
Litigation and conduct costs | (7) | (2) | 13 | (12) | (8) | -- | (8) | |||
Operating expenses | (647) | (112) | (908) | (20) | (1,687) | (116) | (1,803) | |||
Operating profit/(loss) before impairment losses/releases | 375 | 75 | 442 | (286) | 606 | (59) | 547 | |||
Impairment (losses)/releases | (70) | (18) | (159) | 1 | (246) | -- | (246) | |||
Operating profit/(loss) | 305 | 57 | 283 | (285) | 360 | (59) | 301 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 0.8% | |||
Return on equity (3) | 15.3% | 11.2% | 4.4% | nm | nm | nm | na | |||
Cost:income ratio (4) | 63.3% | 59.9% | 66.3% | nm | 73.1% | nm | 76.4% | |||
Total assets (£bn) | 189.5 | 24.9 | 502.8 | 47.0 | 764.2 | 27.4 | 791.6 | |||
Funded assets (£bn) (5) | 189.5 | 24.9 | 340.9 | 44.6 | 599.9 | 27.4 | 627.3 | |||
Net loans to customers - amortised cost (£bn) | 166.7 | 16.5 | 132.9 | 19.3 | 335.4 | 18.3 | 353.7 | |||
Loan impairment rate | 0.17% | 0.43% | 0.47% | nm | 0.29% | nm | 0.27% | |||
Impairment provisions (£bn) | (1.9) | (0.1) | (3.3) | -- | (5.3) | (0.8) | (6.1) | |||
Impairment provisions - stage 3 (£bn) | (0.9) | -- | (1.3) | -- | (2.2) | (0.5) | (2.7) | |||
Customer deposits (£bn) | 164.9 | 30.3 | 196.4 | 7.2 | 398.8 | 19.6 | 418.4 | |||
Risk-weighted assets (RWAs) (£bn) | 36.3 | 10.6 | 113.5 | 1.4 | 161.8 | 12.1 | 173.9 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 36.3 | 10.6 | 115.7 | 1.4 | 164.0 | 12.1 | 176.1 | |||
Employee numbers (FTEs - thousands) | 16.6 | 1.8 | 14.1 | 26.3 | 58.8 | 2.1 | 60.9 | |||
Third party customer asset rate (6) | 2.82% | 2.43% | 2.66% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.13%) | (0.02%) | (0.06%) | nm | nm | (0.01%) | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 14 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Quarter ended 30 June 2020 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 975 | 124 | 792 | (78) | 1,813 | 29 | 1,842 | |||
Own credit adjustments | -- | -- | (102) | -- | (102) | -- | (102) | |||
Other non-interest income | 60 | 67 | 693 | 25 | 845 | 19 | 864 | |||
Total income | 1,035 | 191 | 1,383 | (53) | 2,556 | 48 | 2,604 | |||
Direct expenses | (179) | (49) | (564) | (1,128) | (1,920) | (61) | (1,981) | |||
Indirect expenses | (468) | (79) | (471) | 1,068 | 50 | (50) | -- | |||
Other operating expenses | (647) | (128) | (1,035) | (60) | (1,870) | (111) | (1,981) | |||
Litigation and conduct costs | 101 | (1) | (6) | (10) | 84 | 1 | 85 | |||
Operating expenses | (546) | (129) | (1,041) | (70) | (1,786) | (110) | (1,896) | |||
Operating profit/(loss) before impairment losses | 489 | 62 | 342 | (123) | 770 | (62) | 708 | |||
Impairment losses | (360) | (27) | (1,431) | (22) | (1,840) | (123) | (1,963) | |||
Operating profit/(loss) | 129 | 35 | (1,089) | (145) | (1,070) | (185) | (1,255) | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | (12.4%) | |||
Return on equity (3) | 5.7% | 6.6% | (21.0%) | nm | nm | nm | na | |||
Cost:income ratio (4) | 52.8% | 67.5% | 74.6% | nm | 69.4% | nm | 72.4% | |||
Total assets (£bn) | 187.1 | 23.9 | 521.3 | 47.0 | 779.3 | 27.6 | 806.9 | |||
Funded assets (£bn) (5) | 187.1 | 23.9 | 340.4 | 44.5 | 595.9 | 27.6 | 623.5 | |||
Net loans to customers - amortised cost (£bn) | 164.5 | 16.0 | 136.1 | 17.0 | 333.6 | 18.7 | 352.3 | |||
Loan impairment rate | 0.87% | 0.67% | 4.11% | nm | 2.17% | nm | 2.19% | |||
Impairment provisions (£bn) | (1.9) | (0.1) | (3.2) | -- | (5.2) | (0.9) | (6.1) | |||
Impairment provisions - stage 3 (£bn) | (0.9) | -- | (1.3) | -- | (2.2) | (0.6) | (2.8) | |||
Customer deposits (£bn) | 161.0 | 29.8 | 194.6 | 2.9 | 388.3 | 20.0 | 408.3 | |||
Risk-weighted assets (RWAs) (£bn) | 36.7 | 10.4 | 120.2 | 1.4 | 168.7 | 12.8 | 181.5 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 36.7 | 10.4 | 122.5 | 1.5 | 171.1 | 12.8 | 183.9 | |||
Employee numbers (FTEs - thousands) | 17.1 | 1.8 | 16.4 | 24.6 | 59.9 | 2.1 | 62.0 | |||
Third party customer asset rate (6) | 2.88% | 2.53% | 2.83% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.20%) | (0.12%) | (0.11%) | nm | nm | (0.07%) | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 15 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Quarter ended 31 March 2020 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 1,007 | 127 | 745 | (34) | 1,845 | 32 | 1,877 | |||
Own credit adjustments | -- | -- | 155 | -- | 155 | -- | 155 | |||
Other non-interest income | 143 | 74 | 795 | 21 | 1,033 | 27 | 1,060 | |||
Total income | 1,150 | 201 | 1,695 | (13) | 3,033 | 59 | 3,092 | |||
Direct expenses | (193) | (55) | (554) | (970) | (1,772) | (62) | (1,834) | |||
Indirect expenses | (433) | (68) | (459) | 1,010 | 50 | (50) | -- | |||
Other operating expenses | (626) | (123) | (1,013) | 40 | (1,722) | (112) | (1,834) | |||
Litigation and conduct costs | 97 | -- | -- | (93) | 4 | -- | 4 | |||
Operating expenses | (529) | (123) | (1,013) | (53) | (1,718) | (112) | (1,830) | |||
Operating profit/(loss) before impairment losses | 621 | 78 | 682 | (66) | 1,315 | (53) | 1,262 | |||
Impairment losses | (297) | (29) | (445) | (4) | (775) | (8) | (783) | |||
Operating profit/(loss) | 324 | 49 | 237 | (70) | 540 | (61) | 479 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 3.6% | |||
Return on equity (3) | 15.5% | 9.8% | 3.3% | nm | nm | nm | na | |||
Cost:income ratio (4) | 46.0% | 61.2% | 58.9% | nm | 56.1% | nm | 58.7% | |||
Total assets (£bn) | 186.3 | 23.4 | 547.2 | 34.4 | 791.3 | 26.3 | 817.6 | |||
Funded assets (£bn) (5) | 186.3 | 23.4 | 341.1 | 31.8 | 582.6 | 26.3 | 608.9 | |||
Net loans to customers - amortised cost (£bn) | 163.7 | 15.8 | 135.0 | 18.1 | 332.6 | 18.7 | 351.3 | |||
Loan impairment rate | 0.72% | 0.73% | 1.30% | nm | 0.92% | nm | 0.88% | |||
Impairment provisions (£bn) | (1.6) | (0.1) | (1.8) | -- | (3.5) | (0.7) | (4.2) | |||
Impairment provisions - stage 3 (£bn) | (0.9) | -- | (1.1) | -- | (2.0) | (0.6) | (2.6) | |||
Customer deposits (£bn) | 152.8 | 29.0 | 181.9 | 1.8 | 365.5 | 19.3 | 384.8 | |||
Risk-weighted assets (RWAs) (£bn) | 38.2 | 10.3 | 122.6 | 1.4 | 172.5 | 12.7 | 185.2 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 38.2 | 10.3 | 126.3 | 1.7 | 176.5 | 12.7 | 189.2 | |||
Employee numbers (FTEs - thousands) | 17.3 | 1.8 | 16.4 | 24.8 | 60.3 | 2.2 | 62.5 | |||
Third party customer asset rate (6) | 3.07% | 2.81% | 3.15% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.36%) | (0.32%) | (0.18%) | nm | nm | (0.08%) | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 16 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Year ended 31 December 2019 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 4,130 | 521 | 3,132 | (136) | 7,647 | 152 | 7,799 | |||
Own credit adjustments | -- | -- | (80) | -- | (80) | -- | (80) | |||
Other non-interest income | 736 | 256 | 2,774 | 1,318 | 5,084 | 149 | 5,233 | |||
Strategic disposals | -- | -- | 444 | 591 | 1,035 | -- | 1,035 | |||
Total income | 4,866 | 777 | 6,270 | 1,773 | 13,686 | 301 | 13,987 | |||
Direct expenses | (879) | (191) | (2,213) | (4,822) | (8,105) | (280) | (8,385) | |||
Indirect expenses | (1,814) | (286) | (1,989) | 4,297 | 208 | (208) | -- | |||
Other operating expenses | (2,693) | (477) | (4,202) | (525) | (7,897) | (488) | (8,385) | |||
Litigation and conduct costs | (925) | (9) | (80) | 141 | (873) | (22) | (895) | |||
Operating expenses | (3,618) | (486) | (4,282) | (384) | (8,770) | (510) | (9,280) | |||
Operating profit/(loss) before impairment losses/releases | 1,248 | 291 | 1,988 | 1,389 | 4,916 | (209) | 4,707 | |||
Impairment (losses)/releases | (393) | 6 | (342) | (1) | (730) | 6 | (724) | |||
Operating profit/(loss) | 855 | 297 | 1,646 | 1,388 | 4,186 | (203) | 3,983 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 9.4% | |||
Return on equity (3) | 9.6% | 15.4% | 5.8% | nm | nm | nm | na | |||
Cost:income ratio (4) | 74.4% | 62.5% | 67.6% | nm | 63.7% | nm | 66.0% | |||
Total assets (£bn) | 182.3 | 23.3 | 461.0 | 31.0 | 697.6 | 25.4 | 723.0 | |||
Funded assets (£bn) (5) | 182.3 | 23.3 | 313.3 | 28.7 | 547.6 | 25.4 | 573.0 | |||
Net loans to customers - amortised cost (£bn) | 158.9 | 15.5 | 123.7 | 10.6 | 308.7 | 18.2 | 326.9 | |||
Loan impairment rate | 0.25% | (0.04%) | 0.27% | nm | 0.23% | nm | 0.22% | |||
Impairment provisions (£bn) | (1.4) | -- | (1.4) | (0.1) | (2.9) | (0.8) | (3.7) | |||
Impairment provisions - stage 3 (£bn) | (0.8) | -- | (1.1) | (0.1) | (2.0) | (0.7) | (2.7) | |||
Customer deposits (£bn) | 150.3 | 28.4 | 168.8 | 3.2 | 350.7 | 18.5 | 369.2 | |||
Risk-weighted assets (RWAs) (£bn) | 37.8 | 10.1 | 116.9 | 1.4 | 166.2 | 13.0 | 179.2 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 38.2 | 10.1 | 120.0 | 1.7 | 170.0 | 13.2 | 183.2 | |||
Employee numbers (FTEs - thousands) | 18.0 | 1.6 | 16.5 | 25.0 | 61.1 | 2.2 | 63.3 | |||
Third party customer asset rate (6) | 3.23% | 2.93% | 3.40% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.37%) | (0.35%) | (0.21%) | nm | nm | (0.09%) | nm |
nm = not meaningful, na = not applicable. |
For the notes to this table refer to page 18. |
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments | Page 17 |
Segment performance |
Section 3.1 - Key measures segment performance (continued) |
Quarter ended 31 December 2019 | ||||||||||
Go-forward group | ||||||||||
Retail Banking |
Private Banking |
Commercial & Institutional | Central items & other (1) |
Total excluding Ulster Bank RoI | Ulster Bank RoI |
Total NatWest Group | ||||
Continuing operations | £m | £m | £m | £m | £m | £m | £m | |||
Income statement | ||||||||||
Net interest income | 1,012 | 130 | 828 | (31) | 1,939 | 32 | 1,971 | |||
Own credit adjustments | -- | -- | (22) | 1 | (21) | (1) | (22) | |||
Other non-interest income | 183 | 65 | 670 | 1,258 | 2,176 | 37 | 2,213 | |||
Total income | 1,195 | 195 | 1,476 | 1,228 | 4,094 | 68 | 4,162 | |||
Direct expenses | (223) | (45) | (571) | (1,518) | (2,357) | (74) | (2,431) | |||
Indirect expenses | (558) | (83) | (577) | 1,273 | 55 | (55) | -- | |||
Other operating expenses | (781) | (128) | (1,148) | (245) | (2,302) | (129) | (2,431) | |||
Litigation and conduct costs | (7) | (7) | (27) | (43) | (84) | (1) | (85) | |||
Operating expenses | (788) | (135) | (1,175) | (288) | (2,386) | (130) | (2,516) | |||
Operating profit/(loss) before impairment losses/releases | 407 | 60 | 301 | 940 | 1,708 | (62) | 1,646 | |||
Impairment (losses)/releases | (81) | 1 | (76) | -- | (156) | (8) | (164) | |||
Operating profit/(loss) | 326 | 61 | 225 | 940 | 1,552 | (70) | 1,482 | |||
Additional information | ||||||||||
Return on tangible equity (2) | na | na | na | na | na | na | 17.7% | |||
Return on equity (3) | 14.9% | 12.0% | 2.6% | nm | nm | nm | na | |||
Cost:income ratio (4) | 65.9% | 69.2% | 79.1% | nm | 57.9% | nm | 60.1% | |||
Total assets (£bn) | 182.3 | 23.3 | 461.0 | 31.0 | 697.6 | 25.4 | 723.0 | |||
Funded assets (£bn) (5) | 182.3 | 23.3 | 313.3 | 28.7 | 547.6 | 25.4 | 573.0 | |||
Net loans to customers - amortised cost (£bn) | 158.9 | 15.5 | 123.7 | 10.6 | 308.7 | 18.2 | 326.9 | |||
Loan impairment rate | 0.20% | (0.03%) | 0.24% | nm | 0.20% | nm | 0.20% | |||
Impairment provisions (£bn) | (1.4) | -- | (1.4) | (0.1) | (2.9) | (0.8) | (3.7) | |||
Impairment provisions - stage 3 (£bn) | (0.8) | -- | (1.1) | (0.1) | (2.0) | (0.7) | (2.7) | |||
Customer deposits (£bn) | 150.3 | 28.4 | 168.8 | 3.2 | 350.7 | 18.5 | 369.2 | |||
Risk-weighted assets (RWAs) (£bn) | 37.8 | 10.1 | 116.9 | 1.4 | 166.2 | 13.0 | 179.2 | |||
Risk-weighted assets equivalent (RWAe) (£bn) (3) | 38.2 | 10.1 | 120.0 | 1.7 | 170.0 | 13.2 | 183.2 | |||
Employee numbers (FTEs - thousands) | 18.0 | 1.6 | 16.5 | 25.0 | 61.1 | 2.2 | 63.3 | |||
Third party customer asset rate (6) | 3.11% | 2.88% | 3.36% | nm | nm | nm | nm | |||
Third party customer funding rate (6) | (0.38%) | (0.33%) | (0.18%) | nm | nm | (0.08%) | nm |
nm = not meaningful, na = not applicable. |
Notes: |
Signatures 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. NATWEST GROUP plc (Registrant)
(1)
Ceantral items & other includes unallocated transactions, including volatile items under IFRS, items related to Alawwal bank
merger (2019 only) and US RMBS related items.
(2) Annualised
profit or loss for the period attributable to ordinary shareholders divided by average tangible equity. Average tangible equity is
average total equity excluding non-controlling interests less average intangible assets and average other owners’ equity.
(3) NatWest
Group’s CET1 target is 13% - 14% but for the purposes of computing segmental return on equity (ROE), to better reflect the
differential drivers of capital usage, segmental operating profit or loss adjusted for preference share dividends and tax, is divided
by average notional tangible equity allocated at different rates of 14.5% (Retail Banking - 15% prior to Q1 2020), 12.5% (Private
Banking - 13% prior to Q1 2020), 13% (Commercial & Institutional) and 15.5% (Ulster Bank RoI - 15% prior to Q1 2020), of the
period average of segmental risk-weighted assets equivalents (RWAe) incorporating the effect of capital deductions.
(4) Total
operating expenses less operating lease depreciation divided by total income less operating lease depreciation. (Year ended 31 December
2021 - £140 million; Q4 2021 - £34 million; Q3 2021 - £36 million; Q2 2021 - £35 million; Q1 2021 - £35
million; Year ended 31 December 2020 - £145 million; Q4 2020 - £35 million; Q3 2020 - £37 million; Q2 2020 - £37
million; Q1 2020 - £36 million; Year ended 31 December 2019 - £138 million; Q4 2019 - £35 million).
(5) Funded assets exclude derivative
assets.
(6) Third
party customer asset rate is calculated as annualised interest receivable on third-party loans to customers as a percentage of third-party
loans to customers. This excludes assets of disposal groups, intragroup items, loans to banks and liquid asset portfolios. Third
party customer funding rate reflects interest payable or receivable on third-party customer deposits, including interest bearing
and non-interest bearing customer deposits. Intragroup items, bank deposits, debt securities in issue and subordinated liabilities
are excluded for customer funding rate calculation. Net interest margin is calculated as net interest income as a percentage of the
average interest-earning assets, excluding assets of disposal groups and without these remaining exclusions. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 18
Segment performance
Section 3.2 - Analysis of net fees and commissions
Analysis of net fees and commissions
Year ended 31 December 2021
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
otherTotal excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
306
35
577
--
918
53
971
- Lending and financing
13
10
643
--
666
4
670
- Credit and debit card fees
344
10
149
--
503
19
522
- Brokerage
48
6
42
--
96
--
96
- Investment management, trustee and fiduciary services
3
230
45
--
278
2
280
- Underwriting fees
--
--
127
--
127
--
127
- Other
--
35
109
(112)
32
--
32
Total
714
326
1,692
(112)
2,620
78
2,698
Fees and commissions payable
(337)
(68)
(252)
96
(561)
(13)
(574)
Net fees and commissions
377
258
1,440
(16)
2,059
65
2,124
Quarter ended 31 December 2021
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
other Total excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
86
11
158
--
255
14
269
- Lending and financing
3
3
179
--
185
1
186
- Credit and debit card fees
104
3
41
--
148
6
154
- Brokerage
9
2
14
--
25
--
25
- Investment management, trustee and fiduciary services
1
57
11
--
69
--
69
- Underwriting fees
--
--
27
--
27
--
27
- Other
--
10
11
(26)
(5)
--
(5)
Total
203
86
441
(26)
704
21
725
Fees and commissions payable
(88)
(19)
(62)
24
(145)
(5)
(150)
Net fees and commissions
115
67
379
(2)
559
16
575 NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 19
Segment performance
Section 3.2 - Analysis of net fees and commissions (continued)
Quarter ended 30 September 2021
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
other Total excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
75
8
148
--
231
11
242
- Lending and financing
4
3
160
--
167
2
169
- Credit and debit card fees
91
3
38
--
132
5
137
- Brokerage
7
1
3
--
11
--
11
- Investment management, trustee and fiduciary services
1
60
12
--
73
1
74
- Underwriting fees
--
--
23
--
23
--
23
- Other
--
9
32
(30)
11
1
12
Total
178
84
416
(30)
648
20
668
Fees and commissions payable
(89)
(17)
(57)
26
(137)
(3)
(140)
Net fees and commissions
89
67
359
(4)
511
17
528
Quarter ended 30 June 2021
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
other Total excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
71
8
138
--
217
14
231
- Lending and financing
3
2
154
--
159
--
159
- Credit and debit card fees
81
2
37
--
120
4
124
- Brokerage
13
1
10
--
24
--
24
- Investment management, trustee and fiduciary services
1
58
11
--
70
--
70
- Underwriting fees
--
--
42
--
42
--
42
- Other
--
8
33
(29)
12
--
12
Total
169
79
425
(29)
644
18
662
Fees and commissions payable
(84)
(19)
(62)
24
(141)
(3)
(144)
Net fees and commissions
85
60
363
(5)
503
15
518 NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 20
Segment performance
Section 3.2 - Analysis of net fees and commissions (continued) NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 21
Segment performance
Section 3.2 - Analysis of net fees and commissions (continued)
Quarter ended 31 December 2020
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
other Total excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
67
8
142
--
217
14
231
- Lending and financing
3
4
154
--
161
2
163
- Credit and debit card fees
77
2
39
--
118
5
123
- Brokerage
14
1
10
--
25
--
25
- Investment management, trustee and fiduciary services
1
56
13
--
70
1
71
- Underwriting fees
--
--
33
--
33
--
33
- Other
--
4
(68)
68
4
--
4
Total
162
75
323
68
628
22
650
Fees and commissions payable
(75)
(10)
29
(73)
(129)
(2)
(131)
Net fees and commissions
87
65
352
(5)
499
20
519
Quarter ended 30 September 2020
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
otherTotal excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
68
6
127
--
201
15
216
- Lending and financing
2
1
169
--
172
1
173
- Credit and debit card fees
78
3
31
--
112
6
118
- Brokerage
7
2
23
--
32
(1)
31
- Investment management, trustee and fiduciary services
1
56
11
--
68
--
68
- Underwriting fees
--
--
26
--
26
--
26
- Other
--
7
70
(61)
16
--
16
Total
156
75
457
(61)
627
21
648
Fees and commissions payable
(68)
(13)
(177)
61
(197)
(2)
(199)
Net fees and commissions
88
62
280
--
430
19
449 NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 22
Segment performance
Section 3.2 - Analysis of net fees and commissions (continued)
Quarter ended 30 June 2020
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
otherTotal excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
62
7
117
--
186
12
198
- Lending and financing
(5)
1
156
--
152
1
153
- Credit and debit card fees
61
1
24
--
86
4
90
- Brokerage
7
1
31
--
39
1
40
- Investment management, trustee and fiduciary services
--
56
8
--
64
--
64
- Underwriting fees
--
--
88
--
88
--
88
- Other
--
7
71
(32)
46
--
46
Total
125
73
495
(32)
661
18
679
Fees and commissions payable
(64)
(10)
(165)
24
(215)
(2)
(217)
Net fees and commissions
61
63
330
(8)
446
16
462
Quarter ended 31 March 2020
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
otherTotal excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
67
7
157
--
231
16
247
- Lending and financing
42
1
146
--
189
--
189
- Credit and debit card fees
83
3
37
--
123
6
129
- Brokerage
26
2
30
--
58
1
59
- Investment management, trustee and fiduciary services
1
57
9
--
67
1
68
- Underwriting fees
--
--
36
--
36
--
36
- Other
1
8
16
(8)
17
--
17
Total
220
78
431
(8)
721
24
745
Fees and commissions payable
(77)
(11)
(90)
5
(173)
(2)
(175)
Net fees and commissions
143
67
341
(3)
548
22
570 NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 23
Segment performance
Section 3.2 - Analysis of net fees and commissions (continued)
Year ended 31 December 2019
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
otherTotal excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
292
33
710
--
1,035
60
1,095
- Lending and financing
356
3
631
--
990
4
994
- Credit and debit card fees
427
12
156
--
595
28
623
- Brokerage
55
5
96
--
156
8
164
- Investment management, trustee and fiduciary services
44
186
45
--
275
3
278
- Underwriting fees
--
--
170
--
170
--
170
- Other
2
27
161
(173)
17
4
21
Total
1,176
266
1,969
(173)
3,238
107
3,345
Fees and commissions payable
(480)
(40)
(466)
150
(836)
(12)
(848)
Net fees and commissions
696
226
1,503
(23)
2,402
95
2,497
Quarter ended 31 December 2019
Go-forward group
Retail
BankingPrivate
BankingCommercial & Institutional
Central
items &
otherTotal excluding Ulster Bank RoI
Ulster
Bank RoITotal
NatWest
Group
Continuing operations
£m
£m
£m
£m
£m
£m
£m
Fees and commissions receivable
- Payment services
68
9
184
--
261
27
288
- Lending and financing
19
1
153
--
173
(10)
163
- Credit and debit card fees
135
3
40
--
178
7
185
- Brokerage
10
1
38
--
49
1
50
- Investment management, trustee and fiduciary services
11
49
11
--
71
1
72
- Underwriting fees
--
--
36
--
36
--
36
- Other
1
9
(3)
(17)
(10)
2
(8)
Total
244
72
459
(17)
758
28
786
Fees and commissions payable
(88)
(12)
(85)
13
(172)
(3)
(175)
Net fees and commissions
156
60
374
(4)
586
25
611 NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 24
Segment performance
Section 3.3 - Retail Banking
Retail Banking
2019
2020
2021
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Income statement
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Net
interest income
1,012
4,130
1,007
975
937
949
3,868
973
1,003
1,041
1,057
4,074
Net fees and commissions
156
696
143
61
88
87
379
88
85
89
115
377
Other non-interest income
27
40
--
(1)
(3)
(62)
(66)
(5)
6
1
(8)
(6)
Non-interest
income
183
736
143
60
85
25
313
83
91
90
107
371
Total
income
1,195
4,866
1,150
1,035
1,022
974
4,181
1,056
1,094
1,131
1,164
4,445
Direct expenses
(223)
(879)
(193)
(179)
(225)
(179)
(776)
(188)
(171)
(165)
(281)
(805)
Indirect expenses
(558)
(1,814)
(433)
(468)
(415)
(429)
(1,745)
(397)
(422)
(372)
(441)
(1,632)
Other operating expenses
(781)
(2,693)
(626)
(647)
(640)
(608)
(2,521)
(585)
(593)
(537)
(722)
(2,437)
Litigation and conduct costs
(7)
(925)
97
101
(7)
(210)
(19)
(2)
(7)
(15)
(52)
(76)
Operating
expenses
(788)
(3,618)
(529)
(546)
(647)
(818)
(2,540)
(587)
(600)
(552)
(774)
(2,513)
Operating profit before impairment losses/releases
407
1,248
621
489
375
156
1,641
469
494
579
390
1,932
Impairment (losses)/releases
(81)
(393)
(297)
(360)
(70)
(65)
(792)
(34)
91
(16)
(5)
36
Operating
profit
326
855
324
129
305
91
849
435
585
563
385
1,968
Analysis of income by product
Personal advances
270
1,021
234
165
185
188
772
181
181
185
190
737
Personal deposits
241
1,044
227
243
185
156
811
145
153
164
198
660
Mortgages
528
2,190
550
528
551
528
2,157
636
674
696
693
2,699
Cards
127
484
117
95
95
92
399
86
84
86
85
341
Other
29
127
22
4
6
10
42
8
2
--
(2)
8
Total income
1,195
4,866
1,150
1,035
1,022
974
4,181
1,056
1,094
1,131
1,164
4,445
Analysis of impairments by sector
Personal advances
54
257
209
156
48
19
432
27
(27)
21
12
33
Mortgages
5
31
16
114
(3)
49
176
(1)
(39)
(19)
3
(56)
Cards
22
105
72
90
25
(3)
184
8
(25)
14
(10)
(13)
Total impairment losses/(releases)
81
393
297
360
70
65
792
34
(91)
16
5
(36)
Loan impairment charge/(releases)
as % of gross customer
loans by sector
Personal advances
2.54%
3.03%
9.95%
7.80%
2.46%
1.04%
5.92%
1.52%
(1.57%)
1.20%
0.68%
0.46%
Mortgages
0.01%
0.02%
0.04%
0.29%
(0.01%)
0.12%
0.11%
--
(0.09%)
(0.04%)
0.01%
(0.03%)
Cards
2.05%
2.44%
7.02%
9.73%
2.63%
(0.32%)
4.84%
0.91%
(2.78%)
1.51%
(1.05%)
(0.34%)
Loan impairment
charge/(releases) as % of gross customer loans
0.20%
0.25%
0.72%
0.87%
0.17%
0.15%
0.45%
0.08%
(0.20%)
0.04%
0.01%
(0.02%)
Performance ratios
Return on equity (1)
14.9%
9.6%
15.5%
5.7%
15.3%
3.8%
10.2%
23.0%
32.0%
29.9%
19.7%
26.1%
Net interest margin
2.32%
2.47%
2.28%
2.18%
2.05%
2.03%
2.13%
2.06%
2.08%
2.09%
2.08%
2.08%
Cost:income ratio
65.9%
74.4%
46.0%
52.8%
63.3%
84.0%
60.8%
55.6%
54.8%
48.8%
66.5%
56.5%
Note:
(1) Return on equity is based on segmental operating profit or loss adjusted
for preference share dividends and tax, divided by average notional tangible equity (based on 14.5% (15% prior to Q1 2020) of the
period average of segmental risk-weighted assets equivalents (RWAe) incorporating the effect of capital deductions), assuming
a 28% tax rate.
NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 25
Segment performance
Section 3.3 - Retail Banking (continued)
2019
2020
2021
31 December
31 March
30 June
30 September
31 December
31
March
30
June
30
September
31 December
Balance
sheet
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
Loans to customers (amortised cost)
- personal advances
8.5
8.4
8.0
7.8
7.3
7.1
6.9
7.0
7.1
- mortgages
147.5
152.8
154.7
157.0
163.0
166.0
169.2
171.4
172.8
- cards
4.3
4.1
3.7
3.8
3.8
3.5
3.6
3.7
3.8
Total loans to customers (amortised cost)
160.3
165.3
166.4
168.6
174.1
176.6
179.7
182.1
183.7
Loan impairment provisions
(1.4)
(1.6)
(1.9)
(1.9)
(1.8)
(1.8)
(1.6)
(1.6)
(1.5)
Net loans to customers (amortised cost)
158.9
163.7
164.5
166.7
172.3
174.8
178.1
180.5
182.2
Total assets
182.3
186.3
187.1
189.5
197.6
199.2
204.2
207.6
210.0
Customer deposits
- personal current accounts
52.0
54.4
59.1
62.0
65.8
70.3
73.4
74.8
75.9
- personal
savings
98.3
98.4
101.9
102.9
106.0
108.8
110.7
111.5
113.0
Total customer deposits
150.3
152.8
161.0
164.9
171.8
179.1
184.1
186.3
188.9
Loan:deposit ratio (1)
106%
107%
102%
101%
100%
98%
97%
97%
96%
Risk-weighted assets
- credit risk
30.2
30.6
29.1
28.7
29.2
27.9
28.2
29.4
29.4
- counterparty credit risk
0.1
0.1
0.1
0.1
0.1
0.1
0.2
0.2
0.2
- market risk
--
0.1
0.1
0.1
--
--
0.2
--
0.1
- operational
risk
7.5
7.4
7.4
7.4
7.4
7.0
7.0
7.0
7.0
Total
risk-weighted assets
37.8
38.2
36.7
36.3
36.7
35.0
35.6
36.6
36.7
Note:
(1) Net customer loans held at amortised cost, excluding reverse repos,
divided by total customer deposits, excluding repos. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 26
Segment performance
Section 3.4 - Private Banking
Private Banking
2019
2020
2021
Q4
Full
year
Q1
Q2
Q3
Q4
Full
year
Q1
Q2
Q3
Q4
Full
year
Income statement
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Net
interest income
130
521
127
124
120
118
489
115
117
122
126
480
Net fees and commissions
60
226
67
63
62
65
257
64
60
67
67
258
Other non-interest income
5
30
7
4
5
1
17
6
6
6
60
78
Non-interest income
65
256
74
67
67
66
274
70
66
73
127
336
Total income
195
777
201
191
187
184
763
185
183
195
253
816
Direct expenses
(45)
(191)
(55)
(49)
(53)
(46)
(203)
(43)
(49)
(47)
(61)
(200)
Indirect expenses
(83)
(286)
(68)
(79)
(57)
(74)
(278)
(83)
(79)
(72)
(89)
(323)
Other operating expenses
(128)
(477)
(123)
(128)
(110)
(120)
(481)
(126)
(128)
(119)
(150)
(523)
Litigation and conduct costs
(7)
(9)
--
(1)
(2)
29
26
5
--
3
(5)
3
Operating expenses
(135)
(486)
(123)
(129)
(112)
(91)
(455)
(121)
(128)
(116)
(155)
(520)
Operating profit before impairment releases/losses
60
291
78
62
75
93
308
64
55
79
98
296
Impairment releases/(losses)
1
6
(29)
(27)
(18)
(26)
(100)
--
27
15
12
54
Operating profit
61
297
49
35
57
67
208
64
82
94
110
350
Loan impairment
(releases)/charge as % of gross customer loans
(0.03%)
(0.04%)
0.73%
0.67%
0.43%
0.61%
0.58%
0.00%
(0.60%)
(0.32%)
(0.26%)
(0.29%)
Performance ratios
Return on equity (1)
12.0%
15.4%
9.8%
6.6%
11.2%
13.3%
10.3%
12.4%
15.9%
18.1%
21.3%
17.0%
Net interest margin
2.30%
2.40%
2.25%
2.14%
1.99%
1.86%
2.05%
1.79%
1.75%
1.76%
1.75%
1.76%
Cost:income ratio
69.2%
62.5%
61.2%
67.5%
59.9%
49.5%
59.6%
65.4%
69.9%
59.5%
61.3%
63.7%
Note:
(1) Return on equity is based on segmental operating profit or loss adjusted
for preference share dividends and tax, divided by average notional tangible equity (based on 12.5% (13% prior to Q1 2020) of the
period average of segmental risk-weighted assets equivalents (RWAe) incorporating the effect of capital deductions), assuming 28%
tax rate. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 27
Segment performance
Section 3.4 - Private Banking (continued)
2019
2020
2021
31 December
31 March
30 June
30 September
31 December
31 March
30 June
30 September
31 December
Balance
sheet
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
Loans to customers (amortised cost)
- personal
2.1
2.1
2.1
2.2
2.2
2.2
2.2
2.3
2.3
- mortgages
10.0
10.0
10.0
10.3
10.7
11.1
11.5
11.8
11.8
- other
3.4
3.8
4.0
4.1
4.2
4.3
4.4
4.4
4.4
Total loans to customers (amortised cost)
15.5
15.9
16.1
16.6
17.1
17.6
18.1
18.5
18.5
Loan impairment provisions
--
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
Net loans to customers (amortised cost)
15.5
15.8
16.0
16.5
17.0
17.5
18.0
18.4
18.4
Total assets
23.3
23.4
23.9
24.9
26.2
26.9
27.7
28.2
29.9
Funded assets
23.3
23.4
23.9
24.9
26.2
26.9
27.7
28.2
29.8
Assets under management (AUMs) (1)
25.3
22.3
24.9
25.2
27.0
27.6
29.6
30.5
30.2
Assets under administration (AUAs) (1)
5.1
4.4
4.9
4.9
5.1
5.0
5.1
5.2
5.4
Assets under management and administration (AUMA)
30.4
26.7
29.8
30.1
32.1
32.6
34.7
35.7
35.6
Customer deposits
28.4
29.0
29.8
30.3
32.4
33.5
34.7
35.7
39.3
Loan:deposit ratio (2)
55%
54%
54%
55%
52%
52%
52%
52%
47%
Risk-weighted assets
- credit risk
8.9
9.0
9.1
9.3
9.6
9.8
9.8
10.0
9.9
- counterparty credit risk
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
- operational
risk
1.1
1.2
1.2
1.2
1.2
1.3
1.3
1.3
1.3
Total risk-weighted assets
10.1
10.3
10.4
10.6
10.9
11.2
11.2
11.4
11.3
Notes:
(1) AUMA comprises both assets under management (AUMs) and assets under
administration (AUAs) serviced through the Private Banking franchise. AUMs comprises assets where the investment management is undertaken
by Private Banking on behalf of Private Banking, Retail Banking and Commercial & Institutional customers. AUAs comprises
third party assets held on an execution-only basis in custody.
(2) Net customer loans held at amortised cost, excluding reverse repos,
divided by total customer deposits, excluding repos. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 28
Segment performance
Section 3.5 - Commercial & Institutional
Commercial & Institutional
2019
2020
2021
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Income statement
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Net interest income
828
3,132
745
792
767
750
3,054
725
762
723
764
2,974
Net fees and commissions
375
1,505
341
330
280
352
1,303
339
363
359
379
1,440
Other non-interest income
295
1,713
454
363
337
91
1,245
187
97
112
22
418
OCA
(22)
(80)
155
(102)
(34)
(43)
(24)
2
(1)
2
3
6
Non-interest income
648
3,138
950
591
583
400
2,524
528
459
473
404
1,864
Total income
1,476
6,270
1,695
1,383
1,350
1,150
5,578
1,253
1,221
1,196
1,168
4,838
Direct expenses
(536)
(2,075)
(518)
(527)
(448)
(452)
(1,945)
(411)
(393)
(381)
(448)
(1,633)
Operating lease depreciation
(35)
(138)
(36)
(37)
(37)
(35)
(145)
(35)
(35)
(36)
(34)
(140)
Indirect expenses
(577)
(1,989)
(459)
(471)
(436)
(582)
(1,948)
(469)
(446)
(428)
(530)
(1,873)
Other operating expenses
(1,148)
(4,202)
(1,013)
(1,035)
(921)
(1,069)
(4,038)
(915)
(874)
(845)
(1,012)
(3,646)
Litigation and conduct costs
(27)
(80)
--
(6)
13
--
7
--
(35)
(29)
(47)
(111)
Operating expenses
(1,175)
(4,282)
(1,013)
(1,041)
(908)
(1,069)
(4,031)
(915)
(909)
(874)
(1,059)
(3,757)
Operating profit before impairment losses/releases
301
1,988
682
342
442
81
1,547
338
312
322
109
1,081
Impairment (losses)/releases
(76)
(342)
(445)
(1,431)
(159)
(39)
(2,074)
125
488
230
317
1,160
Operating profit/(loss)
225
1,646
237
(1,089)
283
42
(527)
463
800
552
426
2,241
Analysis of income by business
Business Banking
115
477
117
97
109
107
431
113
147
155
149
564
Commercial Mid-market
750
2,974
679
668
671
664
2,681
641
638
603
624
2,506
Corporate & Institutions
611
2,819
899
618
570
379
2,466
499
436
438
395
1,768
Total income
1,476
6,270
1,695
1,383
1,350
1,150
5,578
1,253
1,221
1,196
1,168
4,838
Analysis of impairments by business
Business Banking
28
83
26
6
32
(46)
17
(14)
(21)
(2)
22
(15)
Commercial Mid-market
28
116
353
1,111
100
166
1,730
(83)
(385)
(209)
(249)
(925)
Corporate & Institutions
20
143
66
314
27
(81)
327
(28)
(82)
(19)
(90)
(220)
Total impairment losses/(releases)
76
342
445
1,431
159
39
2,074
(125)
(488)
(230)
(317)
(1,160)
Loan impairment charge/(releases)
as % of gross customer
loans by business
Business Banking
5.09%
3.77%
4.95%
0.44%
1.97%
(2.67%)
0.25%
(0.62%)
(0.88%)
(0.09%)
1.10%
(0.19%)
Commercial Mid-market
0.15%
0.15%
1.78%
5.51%
0.50%
0.84%
2.18%
(0.44%)
(2.11%)
(1.16%)
(1.37%)
(1.28%)
Corporate & Institutions
0.17%
0.31%
0.48%
2.36%
0.22%
(0.69%)
0.70%
(0.24%)
(0.73%)
(0.16%)
(0.79%)
(0.48%)
Loan impairment
charge/(releases) as % of gross customer loans
0.24%
0.27%
1.30%
4.11%
0.47%
0.12%
1.56%
(0.38%)
(1.53%)
(0.72%)
(1.01%)
(0.92%)
Performance ratios
Return on equity (1)
2.6%
5.8%
3.3%
(21.0%)
4.4%
(0.4%)
(3.7%)
8.5%
15.9%
11.0%
8.3%
10.9%
Net interest margin
1.53%
1.48%
1.39%
1.34%
1.28%
1.24%
1.31%
1.26%
1.30%
1.21%
1.25%
1.26%
Cost:income ratio (2)
79.1%
67.6%
58.9%
74.6%
66.3%
92.7%
71.5%
72.3%
73.7%
72.2%
90.4%
77.0%
Notes:
(1) Return on equity is based on segmental operating profit or loss adjusted
for preference share dividends and tax, divided by average notional tangible equity (based on 13% of the period average of segmental
risk-weighted assets equivalents (RWAe) incorporating the effect of capital deductions), assuming 25% tax rate.
(2) Total operating expenses less operating lease depreciation divided by
total income less operating lease depreciation. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 29
Segment performance
Section 3.5 - Commercial & Institutional (continued)
2019
2020
2021
31 December
31 March
30 June
30 September
31 December
31 March
30 June
30 September
31 December
Balance
sheet
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
Loans to customers (amortised cost)
- Business Banking
2.2
2.1
5.4
6.5
6.9
9.0
9.6
8.9
8.0
- Commercial Mid-market
76.5
79.2
80.7
79.7
79.2
75.5
73.1
72.2
72.5
- Corporate &
Institutions
46.4
55.5
53.2
50.0
47.0
47.2
44.8
46.4
45.4
Total loans to customers (amortised cost)
125.1
136.8
139.3
136.2
133.1
131.7
127.5
127.5
125.9
Loan impairment provisions
(1.4)
(1.8)
(3.2)
(3.3)
(3.2)
(2.9)
(2.3)
(2.1)
(1.7)
Net loans to customers (amortised cost)
123.7
135.0
136.1
132.9
129.9
128.8
125.2
125.4
124.2
Other loans
0.3
0.3
0.4
0.5
0.2
0.3
0.9
0.5
0.5
Depositary assets (2)
396.7
333.1
389.6
402.9
427.5
452.0
460.4
463.8
479.4
Total assets
461.0
547.2
521.3
502.8
491.5
450.6
442.2
436.0
425.9
Funded assets
313.3
341.1
340.4
340.9
327.3
329.5
334.5
333.9
321.3
Customer deposits
168.8
181.9
194.6
196.4
201.6
205.1
212.4
217.4
217.5
Loan:deposit ratio (1)
73%
74%
70%
67%
63%
62%
59%
57%
57%
Risk-weighted assets
- credit risk
78.6
83.8
84.4
82.0
79.0
75.6
73.3
71.9
70.7
- counterparty credit risk
12.4
13.7
12.2
10.0
8.9
8.4
8.3
8.2
7.7
- market risk
12.9
12.8
11.3
9.2
9.3
10.0
10.6
8.0
7.8
- operational
risk
13.0
12.3
12.3
12.3
12.3
11.8
11.8
11.8
11.9
Total risk-weighted assets
116.9
122.6
120.2
113.5
109.5
105.8
104.0
99.9
98.1
Notes:
(1) Net customer loans held at amortised cost, excluding reverse repos,
divided by total customer deposits, excluding repos.
(2) Assets held by Commercial & Institutional as an independent trustee
and in a depositary service capacity. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 30
Segment performance
Section 3.6 - Ulster Bank RoI
Ulster Bank RoI
Continuing Operations
2019
2020
2021
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Income statement
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Net
interest income
32
152
32
29
30
31
122
27
27
23
23
100
Net fees and commissions
25
95
22
16
19
20
77
17
15
17
16
65
Other non-interest income
12
54
5
3
8
7
23
12
8
39
4
63
Own credit adjustments
(1)
--
--
--
--
--
--
--
--
--
--
--
Non-interest income
36
149
27
19
27
27
100
29
23
56
20
128
Total income
68
301
59
48
57
58
222
56
50
79
43
228
Direct expenses
(74)
(280)
(62)
(61)
(67)
(61)
(251)
(59)
(82)
(73)
(78)
(292)
Indirect expenses
(55)
(208)
(50)
(50)
(49)
(34)
(183)
(46)
(39)
(40)
(26)
(151)
Other operating expenses
(129)
(488)
(112)
(111)
(116)
(95)
(434)
(105)
(121)
(113)
(104)
(443)
Litigation and conduct costs
(1)
(22)
--
1
--
(8)
(7)
(9)
(4)
1
(27)
(39)
Operating
expenses
(130)
(510)
(112)
(110)
(116)
(103)
(441)
(114)
(125)
(112)
(131)
(482)
Operating loss before impairment
losses/releases
(62)
(209)
(53)
(62)
(59)
(45)
(219)
(58)
(75)
(33)
(88)
(254)
Impairment (losses)/releases
(8)
6
(8)
(123)
--
(8)
(139)
8
--
7
13
28
Operating loss
(70)
(203)
(61)
(185)
(59)
(53)
(358)
(50)
(75)
(26)
(75)
(226)
Average
exchange rate - €/£
1.163
1.141
1.162
1.127
1.105
1.108
1.125
1.144
1.160
1.169
1.179
1.163
Analysis of impairments by sector
Mortgages
1
11
11
82
2
(1)
94
(3)
1
(2)
(3)
(7)
Other lending
7
(17)
(3)
41
(2)
9
45
(5)
(1)
(5)
(10)
(21)
Total impairment losses/(releases)
8
(6)
8
123
--
8
139
(8)
--
(7)
(13)
(28) NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 31
Segment performance
Section 3.6 - Ulster Bank RoI (continued)
2019
2020
2021
31 December
31 March
30 June
30 September
31 December
31 March
30 June
30 September
31 December
Balance
sheet
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
Loans to customers (amortised cost)
- mortgages
13.6
13.7
14.0
13.9
13.7
12.8
12.7
12.5
6.2
- other lending
5.4
5.7
5.6
5.2
5.1
4.8
4.7
1.2
1.0
Total loans to customers (amortised
cost)
19.0
19.4
19.6
19.1
18.8
17.6
17.4
13.7
7.2
Loan impairment provisions
- mortgages
(0.6)
(0.5)
(0.6)
(0.5)
(0.5)
(0.5)
(0.4)
(0.4)
(0.3)
- other lending
(0.2)
(0.2)
(0.3)
(0.3)
(0.3)
(0.2)
(0.3)
(0.1)
(0.2)
Total
loan impairment provisions
(0.8)
(0.7)
(0.9)
(0.8)
(0.8)
(0.7)
(0.7)
(0.5)
(0.5)
Net loans to customers (amortised cost) (1)
18.2
18.7
18.7
18.3
18.0
16.9
16.7
13.2
6.7
Total assets
25.4
26.3
27.6
27.4
26.6
25.9
25.4
25.2
22.8
Funded assets
25.4
26.3
27.6
27.4
26.6
25.9
25.4
25.2
22.8
Customer deposits
18.5
19.3
20.0
19.6
19.6
18.4
18.5
18.5
18.4
Loan:deposit ratio (1,2)
98%
97%
93%
93%
92%
92%
90%
71%
36%
Risk-weighted assets
- credit risk
11.9
11.6
11.7
11.0
10.7
10.2
9.5
9.1
8.2
- market risk
0.1
0.1
0.1
0.1
0.1
--
0.1
--
--
- operational risk
1.0
1.0
1.0
1.0
1.0
0.9
0.9
0.9
0.9
Total risk-weighted assets
13.0
12.7
12.8
12.1
11.8
11.1
10.5
10.0
9.1
Spot exchange rate - €/£
1.175
1.132
1.100
1.101
1.113
1.174
1.165
1.165
1.190
Notes:
(1) Ulster Bank RoI net lending decreased by £3.5 billion between
Q2 and Q3 2021 as loans agreed to be sold to Allied Irish Banks p.l.c. as part of our phased withdrawal from the Republic of Ireland
were reclassified as assets held for sale. Net lending decreased by a further £6.5 billion in Q4 2021 as loans agreed
to be sold to Allied Irish Banks p.l.c. and Permanent TSB p.l.c. were reclassified as disposal assets. In earlier comparative periods,
these loans were included in net loans to customers.
(2) Net customer loans held at amortised cost divided by total customer
deposits. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 32
Segment performance
Section 3.6 - Ulster Bank RoI (continued)
Ulster Bank RoI
Continuing Operations
2019
2020
2021
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Income statement
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
Net
interest income
39
174
36
33
34
34
137
32
31
28
25
116
Net fees and commissions
29
108
26
17
23
20
86
18
19
19
20
76
Other non-interest income
14
62
5
5
8
9
27
14
8
46
5
73
Own credit adjustments
(1)
--
1
(1)
--
--
--
--
--
--
--
--
Non-interest income
42
170
32
21
31
29
113
32
27
65
25
149
Total income
81
344
68
54
65
63
250
64
58
93
50
265
Direct expenses
(85)
(319)
(72)
(71)
(73)
(67)
(283)
(68)
(93)
(86)
(92)
(339)
Indirect expenses
(64)
(238)
(59)
(57)
(52)
(39)
(207)
(52)
(45)
(46)
(30)
(173)
Other operating expenses
(149)
(557)
(131)
(128)
(125)
(106)
(490)
(120)
(138)
(132)
(122)
(512)
Litigation and conduct costs
(1)
(25)
--
1
--
(9)
(8)
(10)
(5)
1
(31)
(45)
Operating
expenses
(150)
(582)
(131)
(127)
(125)
(115)
(498)
(130)
(143)
(131)
(153)
(557)
Operating loss before impairment
losses/releases
(69)
(238)
(63)
(73)
(60)
(52)
(248)
(66)
(85)
(38)
(103)
(292)
Impairment (losses)/releases
(9)
6
(10)
(141)
1
(7)
(157)
10
(1)
9
15
33
Operating loss
(78)
(232)
(73)
(214)
(59)
(59)
(405)
(56)
(86)
(29)
(88)
(259)
Analysis of impairments by sector
Mortgages
2
13
13
95
1
(2)
107
(4)
2
(3)
(3)
(8)
Other lending
7
(19)
(3)
46
(2)
9
50
(6)
(1)
(6)
(12)
(25)
Total impairment losses/(releases)
9
(6)
10
141
(1)
7
157
(10)
1
(9)
(15)
(33) NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 33
Segment performance
Section 3.6 - Ulster Bank RoI (continued)
2019
2020
2021
31 December
31 March
30 June
30 September
31 December
31 March
30 June
30 September
31 December
Balance
sheet
€bn
€bn
€bn
€bn
€bn
€bn
€bn
€bn
€bn
Loans to customers (amortised cost)
- mortgages
16.0
15.5
15.4
15.3
15.2
15.0
14.8
14.5
7.3
- other lending
6.3
6.5
6.0
5.8
5.7
5.7
5.4
1.4
1.1
Total loans to customers (amortised
cost)
22.3
22.0
21.4
21.1
20.9
20.7
20.2
15.9
8.4
Loan impairment provisions
- mortgages
(0.7)
(0.6)
(0.6)
(0.6)
(0.6)
(0.5)
(0.4)
(0.4)
(0.4)
- other lending
(0.2)
(0.2)
(0.3)
(0.3)
(0.3)
(0.4)
(0.4)
(0.2)
(0.1)
Total
loan impairment provisions
(0.9)
(0.8)
(0.9)
(0.9)
(0.9)
(0.9)
(0.8)
(0.6)
(0.5)
Net loans to customers (amortised cost) (1)
21.4
21.2
20.5
20.2
20.0
19.8
19.4
15.3
7.9
Total assets
29.8
29.8
30.4
30.2
29.6
30.4
29.6
29.4
27.2
Funded assets
29.8
29.8
30.4
30.2
29.6
30.4
29.6
29.4
27.2
Customer deposits
21.7
21.9
22.0
21.6
21.8
21.7
21.6
21.6
21.9
Loan:deposit ratio (1,2)
98%
97%
93%
93%
92%
91%
90%
71%
36%
Risk-weighted assets
- credit risk
14.0
13.2
12.9
12.1
12.0
12.0
11.0
10.6
9.8
- market risk
0.1
0.1
0.1
0.1
0.1
--
0.1
--
--
- operational risk
1.2
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.1
Total risk-weighted assets
15.3
14.4
14.1
13.3
13.2
13.1
12.2
11.7
10.9
Notes:
(1) Ulster Bank RoI net lending decreased by €4.1 billion between Q2
and Q3 2021 as loans agreed to be sold to Allied Irish Banks p.l.c. as part of our phased withdrawal from the Republic of Ireland
were reclassified as assets held for sale. Net lending decreased by a further €7.4 billion in Q4 2021 as
loans agreed to be sold to Allied Irish Banks p.l.c. and Permanent TSB p.l.c. were reclassified as disposal assets. In earlier comparative
periods, these loans were included in net loans to customers.
(2) Net customer loans held at amortised cost, excluding reverse repos,
divided by total customer deposits, excluding repos. NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 34
Segment performance
Section 3.7 - Central items & other
Central items & other
2019
2020
2021
Q4
Full year
Q1
Q2
Q3
Q4
Full year
Q1
Q2
Q3
Q4
Full year
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Central items not allocated
940
1,388
(70)
(145)
(285)
(153)
(653)
(27)
110
(173)
(211)
(301) NatWest Group April 2022 - Financial supplement: re-presentation of operating segments Page 35
Date:
April 22, 2022
By:
/s/ Gary Moore
Name:
Gary Moore
Title:
Assistant Secretary