LONDON: NatWest Bank Group (NWB Group) on Friday reported an attributable profit of £1.85 billion for the first half of 2025, as income rose and operating costs remained stable. The group’s Common Equity Tier 1 (CET1) ratio stood at 11.3% for NWB Plc, down slightly from year-end 2024.
Total income surged 8% year-over-year to £6.36 billion, buoyed by deposit margin expansion, balance sheet growth, and higher structural hedge income. Net interest income climbed 15% to £4.54 billion.
Operating expenses totaled £3.45 billion, broadly unchanged from a year earlier. The cost-to-income ratio improved to 54.2%, down from 59.0% in H1 2024.
However, impairment losses jumped to £351 million, compared with £47 million in the prior-year period. The increase reflects charges on the acquisition of balances from Sainsbury’s Bank and elevated provisions within Commercial & Institutional operations.
NatWest’s balance sheet remained resilient. Net loans rose by £4.2 billion to £336.2 billion, supported by growth across Retail Banking, Commercial Mid-market and credit card portfolios. Customer deposits grew by £1.6 billion to £319.9 billion, aided by inflows from Sainsbury’s Bank.
The loan-to-deposit ratio edged down to 97%, while total risk-weighted assets (RWAs) increased by £6.2 billion to £130.7 billion. The slight dip in the CET1 ratio was attributed to higher RWAs, dividend accruals and regulatory adjustments, partly offset by retained earnings.
The group’s leverage ratio rose to 4.5%, up from 4.4% at December 2024.
NatWest’s financial update reflects continued progress across its core segments, though impairment pressures remain a key focus going forward.