|
|
Note:
|
|
(1)
|
The guidance, targets, expectations and trends discussed in this
section represent NatWest Group plc management’s current
expectations and are subject to change, including as a result of
the factors described in the “Risk Factors” section on
pages 345 to 362 of the NatWest Group plc 2020 Annual Report and
Accounts and
on pages 156 to 172 of the NatWest Markets Plc 2020 Annual Report
and Accounts These statements constitute forward-looking
statements. Refer to Forward-looking statements in this
document.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
Total income
|
£10,796m
|
£14,253m
|
|
£2,535m
|
£2,423m
|
£4,233m
|
Operating expenses
|
(£7,905m)
|
(£9,325m)
|
|
(£2,341m)
|
(£1,814m)
|
(£2,527m)
|
Profit before impairment losses
|
£2,891m
|
£4,928m
|
|
£194m
|
£609m
|
£1,706m
|
Operating (loss)/profit before tax
|
(£351m)
|
£4,232m
|
|
£64m
|
£355m
|
£1,546m
|
(Loss)/profit attributable to ordinary shareholders
|
(£753m)
|
£3,133m
|
|
(£109m)
|
£61m
|
£1,410m
|
|
|
|
|
|
|
|
Excluding notable items
within total income (1)
|
|
|
|
|
|
|
Total income excluding notable items
|
£11,180m
|
£12,138m
|
|
£2,616m
|
£2,720m
|
£3,019m
|
Operating expenses
|
(£7,905m)
|
(£9,325m)
|
|
(£2,341m)
|
(£1,814m)
|
(£2,527m)
|
Profit before impairment losses and excluding notable
items
|
£3,275m
|
£2,813m
|
|
£275m
|
£906m
|
£492m
|
Operating profit before tax and excluding notable
items
|
£33m
|
£2,117m
|
|
£145m
|
£652m
|
£332m
|
|
|
|
|
|
|
|
Performance key metrics and ratios
|
|
|
|
|
|
|
Bank net interest margin (NatWest Group NIM excluding NWM)
(2)
|
1.71%
|
1.99%
|
|
1.66%
|
1.65%
|
1.93%
|
Bank average interest earning assets
|
|
|
|
|
|
|
(NatWest Group excluding
NWM) (2)
|
£455bn
|
£413bn
|
|
£473bn
|
£469bn
|
£420bn
|
Cost:income ratio (2)
|
72.9%
|
65.1%
|
|
92.2%
|
74.5%
|
59.4%
|
Loan impairment rate (2)
|
88bps
|
21bps
|
|
14bps
|
28bps
|
19bps
|
Earnings per share
|
|
|
|
|
|
|
-
basic
|
(6.2p)
|
26.0p
|
|
(0.9p)
|
0.5p
|
11.7p
|
Return on tangible equity (2)
|
(2.4%)
|
9.4%
|
|
(1.4%)
|
0.8%
|
17.7%
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2020
|
2019
|
Balance sheet
|
|
|
|
Total assets
|
£799.5bn
|
£791.6bn
|
£723.0bn
|
Funded assets (2)
|
£633.0bn
|
£627.3bn
|
£573.0bn
|
Loans to customers - amortised cost
|
£360.5bn
|
£353.7bn
|
£326.9bn
|
Loans to customers and banks - amortised cost and
FVOCI *(3)
|
£372.4bn
|
£365.5bn
|
£336.8bn
|
Impairment provisions - amortised cost
|
£6.0bn
|
£6.1bn
|
£3.7bn
|
Total impairment provisions (3)
|
£6.2bn
|
£6.4bn
|
£3.8bn
|
Expected credit loss (ECL) coverage ratio *(3)
|
1.66%
|
1.74%
|
1.13%
|
Assets under management and administration (AUMA)
(2)
|
£32.1bn
|
£30.1bn
|
£30.4bn
|
Customer deposits
|
£431.7bn
|
£418.4bn
|
£369.2bn
|
|
|
|
|
Liquidity and funding
|
|
|
|
Liquidity coverage ratio (LCR)
|
165%
|
157%
|
152%
|
Liquidity portfolio
|
£262bn
|
£243bn
|
£199bn
|
Net stable funding ratio (NSFR) (4)
|
151%
|
147%
|
141%
|
Loan:deposit ratio (2)
|
84%
|
85%
|
89%
|
Total wholesale funding
|
£71bn
|
£75bn
|
£75bn
|
Short-term wholesale funding
|
£19bn
|
£25bn
|
£19bn
|
|
|
|
|
Capital and leverage
|
|
|
|
Common Equity Tier (CET1) ratio (5)
|
18.5%
|
18.2%
|
16.2%
|
Total capital ratio
|
24.5%
|
23.7%
|
21.2%
|
Pro forma CET1 ratio, pre dividend accrual (6)
|
18.8%
|
18.2%
|
17.0%
|
Risk-weighted assets (RWAs)
|
£170.3bn
|
£173.9bn
|
£179.2bn
|
CRR leverage ratio (5)
|
5.2%
|
5.2%
|
5.1%
|
UK leverage ratio
|
6.4%
|
6.2%
|
5.8%
|
Tangible net asset value (TNAV) per ordinary share
|
261p
|
265p
|
268p
|
(1)
|
Refer
to page 12 for details of notable items within total
income.
|
(2)
|
Refer
to the Appendix for details of the basis of preparation and
reconciliation of non-financial and performance
measures.
|
(3)
|
Refer
to pages 21 and 22 for further details.
|
(4)
|
NSFR
reported in line with CRR2 regulations finalised in June
2019.
|
(5)
|
Based
on CRR end point including the IFRS 9 transitional adjustment of
£1.7 billion. Excluding this adjustment, the CET1 ratio would
be 17.5% and the CRR leverage ratio would be 4.9%.
|
(6)
|
The pro
forma CET1 ratio at 31 December 2020 excludes foreseeable charges
of £364 million for ordinary dividend (3p per share) and
£266 million pension contribution. 30 September 2020 -
£nil. 31 December 2019 excluded foreseeable charges of
£968 million for ordinary dividends (3p per share final
dividend and 5p per share special dividend) and £365 million
pension contribution.
|
●
|
Total
income decreased by £3,457 million, or 24.3%, compared with
2019. Excluding notable items, income decreased by
£958 million, or
7.9%, due to reductions across the retail and commercial
businesses, partially offset by higher NatWest Markets income
reflecting increased customer activity as the market reacted to the
spread of the COVID-19 virus.
|
●
|
Income
across the retail and commercial businesses, excluding notable
items, decreased by 10.0% compared with 2019 reflecting the lower
yield curve, mortgage margin dilution, subdued business activity
and lower consumer spending. Increased lending, whilst maintaining
a disciplined approach to risk, has partially offset, with gross
new mortgage lending of £31.5 billion in Retail Banking and
drawdowns against UK Government lending schemes in Commercial
Banking.
|
●
|
Bank
net interest margin (NIM) of 1.71% was 28 basis points lower than
2019, principally reflecting the impact of the falling yield curve
and mortgage margin dilution, although this partly receded in the
latter part of the year. Q4 2020 Bank NIM of 1.66% increased by 1
basis point in comparison to Q3 2020 as lower average central
liquidity and improved asset margins more than offset reduced
structural hedge income as a result of lower swap
rates.
|
●
|
NatWest
Markets income excluding asset disposal/strategic risk reduction,
own credit adjustments (OCA) and notable items increased by 21.4%
in comparison to 2019 reflecting increased customer activity as the
market reacted to the spread of the COVID-19 virus.
|
●
|
Litigation
and conduct costs of £113 million represent £473 million
of additional charges offset by various releases as programmes
conclude, including a £277 million PPI release, with final
agreement reached on 18 February 2021 with the Official Receiver in
relation to a portfolio of historical PPI claims. The
additional charges mainly represent increased cost of review and
execution of Other Customer Redress as well as Litigation
provisions.
|
●
|
Strategic
costs of £1,013 million included £256 million related to
property charges, £173 million redundancy costs and a
£154 million charge related to technology spend.
|
●
|
Other
expenses, excluding OLD, decreased by £277 million, or 4.0%,
compared with 2019 reflecting the continued transition from
physical to digital, the optimisation of our property footprint,
lower investment spend and reductions in NatWest Markets in line
with the strategic announcement made in February 2020. Headcount
reduced by c.4,100, or 6.4%.
|
●
|
The net
impairment loss of £3,242 million, 88 basis points of gross
customer loans, mainly reflects charges taken in the first half of
2020 due to the uncertain economic environment. The level of Stage
3 defaults remains low, reflecting the impact of government
support. Total impairment provisions increased by £2.4 billion
to £6.2 billion compared with 2019 and the ECL coverage ratio
increased from 1.13% to 1.66%.
|
●
|
The
full year attributable loss was £753 million with earnings per
share of (6.2) pence and a return on tangible equity of (2.4%). A
final dividend of 3 pence per share is proposed.
|
●
|
Net
lending across the retail and commercial businesses increased by
£20.9 billion in 2020 supported by £12.9 billion
drawdowns against UK Government lending schemes and £16.2
billion mortgage lending, including £3.0 billion related to
the Metro Bank plc mortgage portfolio acquisition. This growth has
been partially offset by lower unsecured balances, which were
impacted by lower spend and higher repayments, subdued business
activity and increased loan provisions. In Q4 2020, net lending
across the retail and commercial businesses increased by £4.5
billion as mortgage growth of £6.2 billion and £1.6
billion of lending against UK Government lending schemes more than
offset £2.4 billion net RCF repayments.
|
●
|
Customer
deposits increased by £62.5 billion, or 16.9%, in comparison
to 2019 with retail and commercial balances £60.5 billion
higher as consumer spending was impacted by government restrictions
and customers retained liquidity. In Q4 2020, customer deposits
increased by £13.3 billion.
|
Capital and leverage
|
|
●
|
CET1
ratio of 18.5%, was 230 basis points higher than 2019, including
c.100 basis points related to IFRS 9 transitional relief. The CET1
ratio increased by 30 basis points in comparison to Q3 2020 as the
£3.6 billion reduction in RWAs and a 23 basis point software
intangible benefit were partially offset by the 3 pence proposed
final dividend, 21 basis points, and linked pension contribution,
16 basis points.
|
●
|
The
total capital ratio increased by 330 basis points to 24.5% in
comparison to 2019.
|
●
|
RWAs
decreased by £8.9 billion, or 5.0%, compared with 2019
including an £11.0 billion reduction in NatWest Markets to
£26.9 billion, partially offset by volume growth across the
retail and commercial businesses with minimal levels of procyclical
credit risk inflation. RWAs reduced by £3.6 billion compared
with Q3 2020 mainly reflecting ongoing capital optimisation actions
in NatWest Markets, including the sale of the remaining
shareholding in Saudi British Bank (SABB).
|
●
|
The CRR
leverage ratio increased by c.10 basis points compared with 2019
reflecting a £3.3 billion increase in Tier 1 capital,
partially offset by a £59.2 billion increase in the leverage
exposure. The UK leverage ratio increased by c.60 basis points
reflecting a £3.3 billion increase in Tier 1
capital.
|
●
|
The
liquidity portfolio increased by £63 billion in 2020 to
£262 billion primarily driven by the significant growth in
customer deposits, which exceeded lending growth. The LCR increased
by 13 percentage points in 2020 to 165%, representing £72.1
billion headroom above 100%, including the net £5.0 billion
reduction related to Term Funding Scheme (TFS) repayments and a
Term Funding Scheme with additional incentives for SMEs (TFSME)
drawdown in the year. In comparison to Q3 2020 LCR increased by 8
percentage points primarily reflecting the continued growth in
customer deposits.
|
●
|
The
loan:deposit ratio of 84% was 5 percentage points lower than 2019
as growth in customer deposits exceeded lending growth due to the
impact of government restrictions on consumer spending and
customers retaining liquidity.
|
●
|
Total
Wholesale funding increased by £4 billion compared with 2019.
Short-term wholesale funding was £19 billion, in line with
2019.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Net interest income
|
7,749
|
8,047
|
|
1,971
|
1,926
|
2,037
|
Own credit adjustments
|
(24)
|
(80)
|
|
(43)
|
(34)
|
(22)
|
Strategic disposals
|
-
|
1,035
|
|
-
|
-
|
-
|
Other non-interest income
|
3,071
|
5,251
|
|
607
|
531
|
2,218
|
Non-interest income
|
3,047
|
6,206
|
|
564
|
497
|
2,196
|
Total income
|
10,796
|
14,253
|
|
2,535
|
2,423
|
4,233
|
Litigation and conduct costs
|
(113)
|
(895)
|
|
(194)
|
(8)
|
(85)
|
Strategic costs
|
(1,013)
|
(1,381)
|
|
(326)
|
(223)
|
(537)
|
Other expenses
|
(6,779)
|
(7,049)
|
|
(1,821)
|
(1,583)
|
(1,905)
|
Operating expenses
|
(7,905)
|
(9,325)
|
|
(2,341)
|
(1,814)
|
(2,527)
|
Profit before impairment losses
|
2,891
|
4,928
|
|
194
|
609
|
1,706
|
Impairment losses
|
(3,242)
|
(696)
|
|
(130)
|
(254)
|
(160)
|
Operating (loss)/profit before tax
|
(351)
|
4,232
|
|
64
|
355
|
1,546
|
Tax charge
|
(83)
|
(432)
|
|
(84)
|
(207)
|
(37)
|
(Loss)/profit for the period
|
(434)
|
3,800
|
|
(20)
|
148
|
1,509
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
(753)
|
3,133
|
|
(109)
|
61
|
1,410
|
Preference shareholders
|
26
|
39
|
|
5
|
5
|
9
|
Paid-in equity holders
|
355
|
367
|
|
83
|
80
|
90
|
Non-controlling interests
|
(62)
|
261
|
|
1
|
2
|
-
|
Notable items within total income
|
|
|
|
|
|
|
Own credit adjustments (OCA)
|
(24)
|
(80)
|
|
(43)
|
(34)
|
(22)
|
Alawwal bank merger gain in NatWest Markets
|
-
|
444
|
|
-
|
-
|
-
|
FX recycling (loss)/gain in Central items & other
(1)
|
(40)
|
1,459
|
|
(1)
|
64
|
1,169
|
Legacy liability release in Central items & other
|
-
|
256
|
|
-
|
-
|
-
|
Loss on redemption of own debt
|
(324)
|
-
|
|
-
|
(324)
|
-
|
Liquidity Asset Bond sale gain/(loss)
|
113
|
(16)
|
|
2
|
1
|
(8)
|
IFRS volatility in Central items & other (2)
|
83
|
9
|
|
45
|
49
|
43
|
Retail Banking debt sale gain
|
8
|
49
|
|
1
|
4
|
31
|
Metro Bank mortgage portfolio acquisition loss
|
(58)
|
-
|
|
(58)
|
-
|
-
|
Vocalink gain on disposal
|
-
|
45
|
|
-
|
-
|
-
|
Commercial Banking fair value and disposal (loss)/gain
|
(37)
|
(16)
|
|
(27)
|
1
|
1
|
NatWest Markets asset disposals/strategic risk
reduction (3)
|
(83)
|
(35)
|
|
(8)
|
(12)
|
-
|
Share of losses under equity accounting for
|
|
|
|
|
|
|
Business Growth
Fund
|
(22)
|
-
|
|
8
|
(46)
|
-
|
Total
|
(384)
|
2,115
|
|
(81)
|
(297)
|
1,214
|
|
Year ended and as at
|
|
Quarter ended and as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
4,181
|
4,866
|
|
974
|
1,022
|
1,195
|
Operating expenses
|
(2,540)
|
(3,618)
|
|
(818)
|
(647)
|
(788)
|
Impairment losses
|
(792)
|
(393)
|
|
(65)
|
(70)
|
(81)
|
Operating profit
|
849
|
855
|
|
91
|
305
|
326
|
Return on equity
|
10.2%
|
9.6%
|
|
3.8%
|
15.3%
|
14.9%
|
Net interest margin
|
2.13%
|
2.47%
|
|
2.03%
|
2.05%
|
2.32%
|
Cost:income ratio
|
60.8%
|
74.4%
|
|
84.0%
|
63.3%
|
65.9%
|
Loan impairment rate
|
45bps
|
25bps
|
|
15bps
|
17bps
|
20bps
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost)
|
|
|
|
172.3
|
166.7
|
158.9
|
Customer deposits
|
|
|
|
171.8
|
164.9
|
150.3
|
RWAs
|
|
|
|
36.7
|
36.3
|
37.8
|
2020 compared with 2019
|
|
●
|
Total
income was £685 million, or 14.1%, lower as regulatory changes
and COVID-19 support measures impacted fee income, combined with
lower deposit returns and unsecured balances, partially offset by
strong balance growth in mortgages and customer
deposits.
|
●
|
Net
interest margin decreased by 34 basis points reflecting the impact
of the lower yield curve on deposit returns, lower unsecured
balances and mortgage margin pressure, as front book margins were
lower than back book margins.
|
●
|
Other
expenses decreased by £108 million, or 4.5%, reflecting a
significant reduction in headcount, enabled by digital
transformation benefits and increased digital adoption, lower fraud
costs and COVID-19 slowing down investment spend. Litigation and
conduct costs were £19 million.
|
●
|
Impairment
losses of £792 million largely reflect significant Stage 2 ECL
uplifts taken in H1 2020 for expected future economic
deterioration.
|
●
|
Net
loans to customers increased by £13.4 billion, or 8.4%, as a
result of strong gross new mortgage lending and retention. Gross
new mortgage lending was £31.5 billion with flow share of 13%,
supporting a stock share of 10.9%, up from 10.2% at Q4 2019.
Personal advances and cards reduced by £1.2 billion and
£0.5 billion respectively reflecting lower spend and higher
repayments due to COVID-19 restrictions.
|
●
|
Customer
deposits increased by £21.5 billion, or 14.3%, as UK
Government backed initiatives for COVID-19, combined with
restrictions, resulted in lower customer spend and increased
savings.
|
●
|
RWAs
decreased by £1.1 billion, or 2.9%, supported by lower
personal unsecured balances.
|
Q4 2020 compared with Q3 2020
|
|
●
|
Total
income was £48 million lower impacted by a £58 million
loss on acquisition. Excluding this impact, total income was
£10 million higher as increased mortgage margins, strong
balance growth, and a full quarter impact of customer rate changes
on overdrafts and savings offset the impact of the lower yield
curve. Net interest margin decreased by 2 basis points due to lower
deposit returns. Q4 2020 mortgage front book margins were
approximately 160 basis points, resulting in an improved overall
mortgage book margin, with application margins around 180 basis
points in the quarter.
|
●
|
Other
expenses were £6 million higher largely due to the inclusion
of the annual UK bank levy charge, partially offset by lower staff
costs related to a 3.6% reduction in headcount.
|
●
|
Litigation
and conduct costs of £210 million in Q4 2020 primarily reflect
additional charges related to the increased cost of review and
execution of Other Customer Redress.
|
●
|
Impairment
losses of £65 million in Q4 2020 primarily reflect Stage 3
default charges and updated economic scenarios.
|
●
|
Net
loans to customers increased by £5.6 billion, supported by
gross new mortgage lending of £8.4 billion.
|
Q4 2020 compared with Q4 2019
|
|
●
|
Total
income decreased by £221 million, or 18.5%, as a result of
lower deposit returns, reduced unsecured balances, lower fees from
regulatory changes and reduced customer spend, partially offset by
mortgage income growth.
|
●
|
Other
expenses were £76 million, or 11.8%, lower as headcount
reduction was enabled by digital simplification.
|
|
Year ended and as at
|
|
Quarter ended and as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
€m
|
€m
|
|
€m
|
€m
|
€m
|
Total income
|
574
|
647
|
|
144
|
145
|
162
|
Operating expenses
|
(548)
|
(630)
|
|
(127)
|
(138)
|
(162)
|
Impairment releases/(losses)
|
(281)
|
38
|
|
3
|
(6)
|
(5)
|
Operating (loss)/profit
|
(255)
|
55
|
|
20
|
1
|
(5)
|
Return on equity
|
(11.7%)
|
2.3%
|
|
3.9%
|
0.2%
|
(0.9%)
|
Net interest margin (1)
|
1.50%
|
1.59%
|
|
1.48%
|
1.47%
|
1.57%
|
Cost:income ratio (1)
|
95.5%
|
97.4%
|
|
88.2%
|
95.2%
|
100.0%
|
Loan impairment rate (1)
|
134bps
|
(17)bps
|
|
(6)bps
|
11bps
|
9bps
|
|
|
|
|
€bn
|
€bn
|
€bn
|
Net loans to customers (amortised cost)
|
|
|
|
20.0
|
20.2
|
21.4
|
Customer deposits
|
|
|
|
21.8
|
21.6
|
21.7
|
RWAs
|
|
|
|
13.2
|
13.3
|
15.3
|
Following
an extensive review and despite the progress that has been made, it
has become clear Ulster Bank will not be able to generate
sustainable long term returns for our shareholders. As a result, we
are to begin a phased withdrawal from the Republic of Ireland over
the coming years which will be undertaken with careful
consideration of the impact on customers and our
colleagues.
Throughout
the difficulties and uncertainties of 2020, Ulster Bank RoI has
continued to support its customers COVID-19 by keeping its
branches, cash and call centres open throughout and by making
significant improvements to its digital platforms. During 2020
almost 18,000 payment breaks were provided, with 82% returning to
payment arrangements as at 31 December 2020. Additionally, Ulster
Bank RoI continued to support its commercial customers by providing
them assistance with the Future Growth Loan and Credit Guarantee
schemes initiated by the Irish government.
|
|
|
|
2020 compared with 2019
|
|
●
|
Total
income decreased by €73 million, or 11.3%, reflecting lower lending volumes and
fee income due to the impact of COVID-19, lower FX gains, lower
hedging income and a one-off swap breakage benefit in 2019. Net
Interest margin decreased by 9 basis points due to the impact of
negative rates on increased liquid assets.
|
●
|
Other
expenses decreased by €25 million, or 4.7%, reflecting a 6.9%
headcount reduction following the scale-down of functional teams
and lower marketing, back office and project costs, partially
offset by higher pension costs due to a one-off credit in
2019.
|
●
|
Impairment
losses of €281 million reflect the charges taken in the first
half of 2020 which were significantly impacted by the uncertain
economic environment created by the COVID-19 pandemic.
|
●
|
Net
loans to customers decreased by €1.4 billion, or 6.5%, as
repayments exceeded gross new lending of €2.1 billion,
combined with a €0.3 billion de-recognition of non-performing
loans (NPLs) from a sale agreed in Q4 2019, and increased loan
provisions.
|
●
|
Customer
deposits increased by €0.1 billion, or 0.5%, due to a large
one-off placement at the end of the year, partially offset by
earlier reductions in commercial balances due to pricing changes,
including the implementation of negative rates on large and
mid-sized corporate customers and non-bank financial
institutions.
|
●
|
RWAs
decreased by €2.1 billion, or 13.7%, reflecting the impact of
NPL de-recognitions and lower lending volumes.
|
Q4 2020 compared with Q3 2020
|
|
●
|
Total
income and net interest margin remained broadly stable as government measures and lockdown
restrictions continued to impact transaction volumes.
|
●
|
Other
expenses decreased by €17 million reflecting lower project
costs, lower back office operations costs and a number of one-off
items.
|
●
|
A net
impairment release of €3 million in Q4 2020 reflects payment
breaks in part mitigating the full impact of credit losses
attributable to the COVID-19 pandemic.
|
●
|
Net
loans to customers decreased by €0.2 billion as repayments
continued to exceed gross new lending of €0.5 billion, which
was in line with the previous quarter.
|
●
|
Customer
deposits increased by €0.2 billion resulting in a
loan:deposit ratio of 92%, down from 93% in Q3 2020.
|
Q4 2020 compared with Q4 2019
|
|
●
|
Total
income decreased by €18 million, or 11.1%, reflecting the
impact of COVID-19 on lending volumes and fee income combined with
lower FX gains.
|
●
|
Other
expenses decreased by €16 million, or 12.5%, reflecting lower
staff, administration and marketing costs partially offset by
one-off items.
|
|
Year ended and as at
|
|
Quarter ended and as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
3,958
|
4,318
|
|
951
|
1,004
|
1,076
|
Operating expenses
|
(2,430)
|
(2,600)
|
|
(656)
|
(553)
|
(700)
|
Impairment losses
|
(1,927)
|
(391)
|
|
(10)
|
(127)
|
(81)
|
Operating (loss)/profit
|
(399)
|
1,327
|
|
285
|
324
|
295
|
Return on equity
|
(4.5%)
|
8.4%
|
|
8.1%
|
9.2%
|
7.6%
|
Net interest margin
|
1.68%
|
1.95%
|
|
1.56%
|
1.65%
|
1.94%
|
Cost:income ratio
|
59.9%
|
58.9%
|
|
67.8%
|
53.4%
|
63.9%
|
Loan impairment rate
|
173bps
|
38bps
|
|
4bps
|
45bps
|
32bps
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost)
|
|
|
|
108.2
|
110.0
|
101.2
|
Customer deposits
|
|
|
|
167.7
|
161.3
|
135.0
|
RWAs
|
|
|
|
75.1
|
76.5
|
72.5
|
Commercial
Banking continues to support customers through a comprehensive
package of initiatives including participation in the UK
Government’s financial support schemes. During 2020,
£8.6 billion BBLS, £3.9 billion CBILS and £1.3
billion CLBILS had been approved. Since 22 March 2020 Commercial
Banking provided payment holidays on over 74,000 customer accounts
and as at 31 December 2020 had active payment holidays on c.11,000
customer accounts, representing 4% of the lending book by
value.
|
||
|
||
2020 compared with 2019
|
||
●
|
Total
income decreased by £360 million, or 8.3%, reflecting lower
deposit returns and subdued transactional business activity,
combined with a £21 million increase in fair value and
disposal losses, primarily through risk mitigation actions. Net
Interest margin decreased by 27 basis points reflecting the impact
of the lower yield curve on deposit returns and increased liquidity
portfolio costs from higher deposit volumes, partially offset by
deposit repricing.
|
|
●
|
Other
expenses, excluding OLD, increased by £18 million, or 0.9%, as
£80 million higher back office operations costs, increased
innovation spend and £19 million lower VAT recoveries were
partially offset by a headcount reduction of 1.0% following
operating model efficiencies in the second half of 2019 and
COVID-19 slowing down investment spend.
|
|
●
|
Impairment
losses of £1,927 million primarily reflect the deterioration
of the economic outlook as a result of the COVID-19 pandemic
driving significant Stage 2 charges, with total Stage 3 charges of
£318 million, including a small number of single name
charges.
|
|
●
|
Net
loans to customers increased by £7.0 billion, or 6.9%, as
£12.6 billion drawdowns against UK Government lending schemes
were partially offset by lower specialised business lending and
increased loan provisions. RCF utilisation decreased to c.22% of
committed facilities, below Q4 2019 pre-COVID-19 levels of c.27%
and significantly lower than the peak of c.40% in April
2020.
|
|
●
|
Customer
deposits increased by £32.7 billion, or 24.2%, as customers
built and retained liquidity in light of economic uncertainty
combined with the impact of government and central bank actions in
light of COVID-19.
|
|
●
|
RWAs
increased by £2.6 billion, or 3.6%, reflecting volume growth
and £2.4 billion higher risk parameters, partially offset by a
£0.8 billion reduction related to active capital management
and a c.£1.5 billion reduction reflecting the CRR COVID-19
amendment to accelerate the planned changes to the SME supporting
factor and the introduction of an Infrastructure supporting
factor.
|
|
Q4 2020 compared with Q3 2020
|
||
●
|
Total
income decreased by £53 million reflecting £27 million
fair value and disposal losses, mainly through risk mitigation
actions, and the impact of lower deposit returns. Net Interest
margin decreased by 9 basis points primarily due to the lower yield
curve impacting deposit returns.
|
|
●
|
Other
expenses, excluding OLD, increased by £70 million as the
annual UK bank levy charge of £90 million and higher
innovation spend was partially offset by cost reduction actions and
£8 million higher VAT recoveries.
|
|
●
|
Net
loans to customers decreased by £1.8 billion as RCF repayments
of £2.4 billion more than offset by £1.4 billion
drawdowns against UK Government lending schemes, including
£0.7 billion related to BBLS, £0.5 billion related to
CBILS and £0.2 billion related to CLBILS.
|
|
●
|
Customer
deposits increased by £6.4 billion as customers continued to
build and retain liquidity in light of economic uncertainty
combined with the impact of government and central bank actions in
light of COVID-19.
|
|
●
|
RWAs
decreased by £1.4 billion as lower lending volumes and a
£0.6 billion reduction related to active capital management
were partially offset by £0.6 billion higher risk
parameters.
|
|
|
|
|
Q4 2020 compared with Q4 2019
|
||
●
|
Total
income decreased by £125 million, or 11.6%, reflecting the
impact of the lower yield curve on deposit returns and subdued
transactional business activity, combined with a £27 million
fair value and disposal loss, mainly through risk mitigation
actions, compared with a £1 million gain in Q4
2019.
|
|
●
|
Other
expenses, excluding OLD, increased by £18 million, or 3.3%,
reflecting £37 million higher back office operations costs,
£18 million lower VAT recoveries and increased innovation
spend, partially offset by a headcount reduction of 1.0% following
operating model efficiencies in the second half of 2019 and other
cost reduction actions.
|
|
Year ended and as at
|
|
Quarter ended and as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
763
|
777
|
|
184
|
187
|
195
|
Operating expenses
|
(455)
|
(486)
|
|
(91)
|
(112)
|
(135)
|
Impairment (losses)/releases
|
(100)
|
6
|
|
(26)
|
(18)
|
1
|
Operating profit
|
208
|
297
|
|
67
|
57
|
61
|
Return on equity
|
10.3%
|
15.4%
|
|
13.3%
|
11.2%
|
12.0%
|
Net interest margin
|
2.05%
|
2.40%
|
|
1.86%
|
1.99%
|
2.30%
|
Cost:income ratio
|
59.6%
|
62.5%
|
|
49.5%
|
59.9%
|
69.2%
|
Loan impairment rate
|
58bps
|
(4)bps
|
|
61bps
|
43bps
|
(3)bps
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost)
|
|
|
|
17.0
|
16.5
|
15.5
|
Customer deposits
|
|
|
|
32.4
|
30.3
|
28.4
|
RWAs
|
|
|
|
10.9
|
10.6
|
10.1
|
Assets Under Management (AUMs)
|
|
|
|
29.1
|
27.3
|
23.2
|
Assets Under Administration (AUAs) (1)
|
|
|
|
3.0
|
2.8
|
7.2
|
Assets Under Management and Administration (AUMA)
|
|
|
|
32.1
|
30.1
|
30.4
|
Notes:
|
|
(1) Private Banking
manages assets under administration portfolios on behalf of Retail
Banking and RBSI and receives a management fee in respect of
providing this service.
(2) Comparisons with
prior periods are impacted by the transfer of the Private Client
Advice business from Retail Banking from 1 January 2020. The net
impact on full year 2019 operating profit would have been to
increase total income by £44 million and other expenses by
£8 million. The net impact on Q4 2019 operating profit would
have been to increase total income by £11 million and other
expenses by £2 million. The net impact on the Q4 2019 balance
sheet would have been to increase customer deposits by £0.2
billion. AUMs would have been £4.6 billion higher, with a
corresponding decrease in AUAs. Variances in the commentary below
have been adjusted for the impact of this transfer.
|
|
Private
Banking remains committed to supporting clients through a range of
initiatives, including the provision of mortgage and personal loan
repayment deferrals in appropriate circumstances and via
participation in the UK Government’s financial support
schemes. During 2020, £58 million BBLS, £237 million
CBILS and £44 million CLBILS had been approved.
|
|
|
|
2020
compared with 2019
|
|
●
|
Total
income decreased by £58 million, or 7.1%, primarily reflecting
lower deposit funding benefits and a reduction in fee income
partially offset by balance sheet growth. Net Interest margin
decreased by 35 basis points reflecting lower deposit funding
benefits and higher liquidity portfolio costs.
|
●
|
Other
expenses increased by £19 million, or 4.3%, reflecting higher
investment spend focused on enhancing the client proposition and a
number of one-off items partially offset by lower back office
operations costs.
|
●
|
Impairment
losses of £100 million primarily reflect Stage 1 and Stage 2
charges due to the deterioration of the economic outlook, with
total Stage 3 charges of £15 million.
|
●
|
Net
loans to customers increased by £1.5 billion, or 9.7%,
supported by £0.7 billion of mortgage lending growth and
£0.3 billion drawdowns against UK Government lending schemes.
RWAs increased by £0.8 billion, or 7.9%, primarily reflecting
increased lending volumes.
|
●
|
Customer
deposits increased by £3.8 billion, or 13.3%, reflecting
£2.3 billion of commercial inflows and £1.5 billion of
personal inflows.
|
●
|
AUMAs
increased by £1.7 billion, or 5.6%, reflecting positive
investment performance of £0.9 billion and net new money
inflows of £0.8 billion, which were impacted by EEA resident
client outflows following the UK’s exit from the
EU.
|
Q4
2020 compared with Q3 2020
|
|
●
|
Total
income decreased by £3 million mainly due to lower deposit
funding benefits and an internal profit share adjustment with RBS
International related to the provision of services partially offset
by an increase in fee income and balance sheet growth. Net Interest
margin decreased by 13 basis points primarily due to lower deposit
funding benefits.
|
●
|
Other
expenses increased by £13 million largely reflecting the
annual UK bank levy charge. Q4 2020 included a litigation and
conduct release of £29 million.
|
●
|
Net
loans to customers increased by £0.5 billion primarily due to
mortgage lending growth and drawdowns against UK Government lending
schemes.
|
●
|
Customer
deposits increased by £2.1 billion due to £1.0 billion of
commercial inflows and £1.1 billion of personal
inflows.
|
●
|
AUMAs
increased by £2.0 billion reflecting positive investment
performance of £1.8 billion and net new money inflows of
£0.2 billion, which were impacted by EEA resident client
outflows following the UK’s exit from the EU.
|
Q4
2020 compared with Q4 2019
|
|
●
|
Total
income decreased by £22 million, or 10.7%, reflecting lower
deposit funding benefits and a reduction in fee income partially
offset by balance sheet growth.
|
●
|
Other
expenses decreased by £3 million, or 2.5%, reflecting lower
back office operations costs partially offset by higher investment
spend and a number of one-off items.
|
|
Year ended and as at
|
|
Quarter ended and as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
497
|
610
|
|
126
|
112
|
150
|
Operating expenses
|
(291)
|
(264)
|
|
(112)
|
(53)
|
(83)
|
Impairment losses
|
(107)
|
(2)
|
|
(27)
|
(34)
|
(5)
|
Operating profit
|
99
|
344
|
|
(13)
|
25
|
62
|
Return on equity
|
6.1%
|
25.7%
|
|
(5.5%)
|
6.4%
|
17.3%
|
Net interest margin
|
1.17%
|
1.60%
|
|
1.03%
|
1.07%
|
1.47%
|
Cost:income ratio
|
58.6%
|
43.3%
|
|
88.9%
|
47.3%
|
55.3%
|
Loan impairment rate
|
80bps
|
1bps
|
|
81bps
|
105bps
|
14bps
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost)
|
|
|
|
13.3
|
12.8
|
14.1
|
Customer deposits
|
|
|
|
31.3
|
30.4
|
30.1
|
RWAs
|
|
|
|
7.5
|
7.0
|
6.5
|
As at
31 December 2020, RBS International has supported 1,240 mortgage
repayment breaks, reflecting a mortgage value of £268 million,
and has provided financial support for 622 business customers with
working capital facilities, reflecting a value of £588
million, while continuing to suspend a range of fees and charges
for its personal and business customers.
|
|
|
|
2020
compared with 2019
|
|
●
|
Total
income decreased by £113 million, or 18.5%, primarily due to
the impact of the interest rate reductions on deposit income and
lower fee income reflecting the economic response to COVID-19. Net
Interest margin decreased by 43 basis points due to lower deposit
funding benefits as a result of central bank interest rate
reductions.
|
●
|
Other
expenses were stable as front office non-staff cost reduction
actions and a 5.6% headcount reduction were offset by a higher bank
levy charge.
|
●
|
Impairment
losses of £107 million primarily reflect a more uncertain
economic environment and refreshed staging and maturity date
analysis.
|
●
|
Net
loans to customers decreased by £0.8 billion, or 5.7%, as
customers repaid facilities to position themselves in the uncertain
environment, partially offset by increased investment activity in
the latter part of 2020.
|
●
|
Customer
deposits increased by £1.2 billion, or 3.8%, due to short term
placement inflows across both Institutional and Local
Banking.
|
●
|
RWAs
increased by £1.0 billion, or 15.4%, due to customer
maturities and higher lending facilities in the wholesale
sector.
|
Q4
2020 compared with Q3 2020
|
|
●
|
Total
income increased by £14 million due to the full quarter impact
of reinstating fees previously waived to support customers at the
start of the COVID-19 pandemic, an increase in internal profit
share in relation to agency fees in NatWest Markets and
the provision of services in Private Banking. Net Interest margin
reduced by 4 basis points primarily due to higher inflow of
customer deposit balances.
|
●
|
Other
expenses increased by £23 million mainly due to the inclusion
of the £17 million annual bank levy charge.
|
●
|
Impairment
losses of £27 million in Q4 2020 largely reflect Stage 1 and
Stage 2 charges within the wholesale sector. Stage 3 charges remain
low despite continued economic uncertainty.
|
●
|
Net
loans to customers increased by £0.5 billion reflecting
drawdowns in the Institutional Banking sector as investment
activity increased.
|
●
|
Customer
deposits increased by £0.9 billion due to short term
placements across both Institutional and Local
Banking.
|
●
|
RWAs
increased by £0.5 billion primarily reflecting increased
lending volumes in the Institutional Banking sector.
|
Q4
2020 compared with Q4 2019
|
|
●
|
Total
income decreased by £24 million, or 16.0%, primarily
reflecting lower deposit funding benefits due to central bank
interest rate reductions partially offset by higher fee income as a
result of non-utilisation fees and an internal profit share in
relation to agency fees in NatWest Markets and the provision of
services in Private Banking.
|
●
|
Other
expenses decreased by £5 million, or 6.4%, as a £10
million reduction in front office costs relating to lower non-staff
costs and lower headcount was partially offset by a higher bank
levy charge.
.
|
|
Year ended and as at
|
|
Quarter ended and as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
1,123
|
1,342
|
|
73
|
234
|
250
|
of which:
|
|
|
|
|
|
|
- Income excluding asset disposals/strategic
risk
|
|
|
|
|
|
|
reduction and own credit
adjustments
|
1,230
|
1,422
|
|
124
|
280
|
272
|
- Asset
disposals/strategic risk reduction (2)
|
(83)
|
-
|
|
(8)
|
(12)
|
-
|
- Own credit adjustments
|
(24)
|
(80)
|
|
(43)
|
(34)
|
(22)
|
Operating expenses
|
(1,310)
|
(1,418)
|
|
(301)
|
(302)
|
(392)
|
Impairment releases/(losses)
|
(40)
|
51
|
|
(2)
|
2
|
10
|
Operating (loss)
|
(227)
|
(25)
|
|
(230)
|
(66)
|
(132)
|
Return on equity
|
(3.8%)
|
(3.2%)
|
|
(15.0%)
|
(4.7%)
|
(6.5%)
|
Cost:income ratio
|
116.7%
|
105.7%
|
|
nm
|
129.1%
|
156.8%
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Funded assets
|
|
|
|
105.9
|
121.3
|
116.2
|
RWAs
|
|
|
|
26.9
|
30.0
|
37.9
|
NatWest
Markets has made significant progress in reshaping the business for
the future and advancing its transformation to deliver the
refocused strategy announced in February 2020. As progress has been
made against the strategy, RWAs have reduced and the business is
ahead of its plan to achieve the medium-term reduction to £20
billion.
By
accelerating its transformation to become a more integrated and
sustainable part of NatWest Group, NatWest Markets has focused on
what it does best and what matters to NatWest Group’s
customers. The product offering has been simplified and in Q2 2020
NatWest Markets entered an agreement with BNP Paribas to provide
‘house’ Futures and associated back office services.
NatWest Markets has consolidated certain customer coverage teams
and services and functional teams with their counterparts from
across NatWest Group, enhancing our collaborative approach to
customers.
|
|
2020
compared with 2019
|
|
●
|
Total
income decreased by £219 million, or 16.3%, reflecting the
£444 million Alawwal bank merger gain in 2019 and an increase
in disposal losses of £48 million partially offset by stronger
business performance in the current year.
|
●
|
Income
excluding asset disposals/strategic risk reduction, OCA and notable
items increased by £217 million, or 21.4%, reflecting a strong
performance over the year, particularly in the first half of 2020
as customer activity increased as the market reacted to the spread
of the COVID-19 virus.
|
●
|
Other
expenses decreased by £140 million, or 11.9%, reflecting
continued reductions in line with the strategic announcement in
February 2020.
|
●
|
Impairment
losses of £40 million reflect the impact of Stage 2 charges
taken in the first half of 2020 compared with a net impairment
release of £51 million in the prior year for a small number of
legacy cases.
|
●
|
RWAs
decreased by £11.0 billion, or 29.0%, as market risk and
counterparty credit risk decreased by £3.6 billion and
£3.5 billion respectively and credit risk decreased by
£3.4 billion as the business exceeded its target for RWA
reductions over the course of 2020.
|
Q4
2020 compared with Q3 2020
|
|
●
|
Total
income decreased by £161 million reflecting a weaker
performance in the Fixed Income business amid lower levels of
customer activity.
|
●
|
Other
expenses increased by £19 million primarily reflecting the
inclusion of the annual UK bank levy charge.
|
●
|
RWAs
decreased by £3.1 billion reflecting ongoing capital
optimisation actions, including the sale of NatWest Markets’
remaining shareholding in Saudi British Bank (SABB).
|
Q4
2020 compared with Q4 2019
|
|
●
|
Total
income decreased by £177 million, or 70.8%, reflecting a small
number of one-off releases in the prior year and a weaker
performance in the Fixed Income business amid lower levels of
customer activity.
|
●
|
Other
expenses decreased by £52 million, or 17.6%, reflecting
continued reductions in line with the strategic announcement in
February 2020.
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Central items not allocated
|
(655)
|
1,385
|
|
(154)
|
(285)
|
939
|
●
|
Central
items not allocated represented a £655 million operating loss
in 2020 principally reflecting the day one loss on redemption of
own debt of £324 million related to the repurchase of legacy
instruments, property related strategic costs, litigation and
conduct charges and other treasury income. 2019 included
£1,459 million of FX recycling gains, a £169 million
reimbursement under indemnification agreements relating to US
residential mortgage-backed securities (RMBS) and strategic costs
of £449 million, which were mainly property
related.
|
|
|
CRR basis (1)
|
||
|
31 December
|
30 September
|
31 December
|
|
2020
|
2020
|
2019
|
Capital adequacy ratios
|
%
|
%
|
%
|
CET1
|
18.5
|
18.2
|
16.2
|
Tier 1
|
21.4
|
20.5
|
18.5
|
Total
|
24.5
|
23.7
|
21.2
|
|
|
|
|
Capital
|
£m
|
£m
|
£m
|
Tangible equity
|
31,712
|
32,093
|
32,371
|
|
|
|
|
Expected loss less impairment provisions
|
-
|
-
|
(167)
|
Prudential valuation adjustment
|
(286)
|
(341)
|
(431)
|
Deferred tax assets
|
(760)
|
(835)
|
(757)
|
Own credit adjustments
|
(1)
|
(154)
|
(118)
|
Pension fund assets
|
(579)
|
(590)
|
(474)
|
Cash flow hedging reserve
|
(229)
|
(300)
|
(35)
|
Foreseeable ordinary and special dividends
|
(364)
|
-
|
(968)
|
Foreseeable charges
|
(266)
|
-
|
(365)
|
Prudential amortisation of software development costs
|
473
|
-
|
-
|
Adjustments under IFRS 9 transitional arrangements
|
1,747
|
1,719
|
-
|
Other adjustments for regulatory purposes
|
-
|
-
|
(2)
|
Total deductions
|
(265)
|
(501)
|
(3,317)
|
|
|
|
|
CET1 capital
|
31,447
|
31,592
|
29,054
|
AT1 capital
|
4,983
|
3,990
|
4,051
|
Tier 1 capital
|
36,430
|
35,582
|
33,105
|
Tier 2 capital
|
5,255
|
5,710
|
4,900
|
|
|
|
|
Total regulatory capital
|
41,685
|
41,292
|
38,005
|
|
|
|
|
Risk-weighted assets
|
|
|
|
Credit risk
|
129,914
|
132,387
|
131,012
|
Counterparty credit risk
|
9,104
|
10,170
|
12,631
|
Market risk
|
9,362
|
9,399
|
12,930
|
Operational risk
|
21,930
|
21,930
|
22,599
|
Total RWAs
|
170,310
|
173,886
|
179,172
|
|
|
|
|
Leverage (1)
|
|
|
|
Cash and balances at central banks*
|
124,489
|
111,681
|
80,993
|
Trading assets
|
68,990
|
70,820
|
76,745
|
Derivatives
|
166,523
|
164,311
|
150,029
|
Other financial assets*
|
422,647
|
418,998
|
395,953
|
Other assets
|
16,842
|
25,751
|
19,319
|
Total assets
|
799,491
|
791,561
|
723,039
|
Derivatives
|
|
|
|
- netting and variation
margin
|
(172,658)
|
(172,389)
|
(157,778)
|
- potential future
exposures
|
38,171
|
40,439
|
43,004
|
Securities financing transactions gross up
|
1,179
|
1,193
|
2,224
|
Undrawn commitments
|
45,853
|
44,650
|
42,363
|
Regulatory deductions and other adjustments
|
(8,943)
|
(17,167)
|
(8,978)
|
CRR Leverage exposure
|
703,093
|
688,287
|
643,874
|
|
|
|
|
CRR leverage ratio % (2)
|
5.2
|
5.2
|
5.1
|
|
|
|
|
UK leverage exposure
|
572,558
|
576,889
|
570,330
|
UK leverage ratio % (3)
|
6.4
|
6.2
|
5.8
|
|
Retail
|
Ulster Bank
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
|
|
Banking
|
RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Total
|
2020
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Loans - amortised cost and FVOCI
|
|
|
|
|
|
|
|
|
Stage 1
|
139,956
|
14,380
|
70,685
|
15,321
|
12,143
|
7,780
|
26,859
|
287,124
|
Stage 2
|
32,414
|
3,302
|
37,344
|
1,939
|
2,242
|
1,566
|
110
|
78,917
|
Stage 3
|
1,891
|
1,236
|
2,551
|
298
|
211
|
171
|
—
|
6,358
|
Of which: individual
|
—
|
43
|
1,578
|
298
|
211
|
162
|
—
|
2,292
|
Of which: collective
|
1,891
|
1,193
|
973
|
—
|
—
|
9
|
—
|
4,066
|
|
174,261
|
18,918
|
110,580
|
17,558
|
14,596
|
9,517
|
26,969
|
372,399
|
ECL provisions (1)
|
|
|
|
|
|
|
|
|
Stage 1
|
134
|
45
|
270
|
31
|
14
|
12
|
13
|
519
|
Stage 2
|
897
|
265
|
1,713
|
68
|
74
|
49
|
15
|
3,081
|
Stage 3
|
806
|
492
|
1,069
|
39
|
48
|
132
|
—
|
2,586
|
Of which: individual
|
—
|
13
|
607
|
39
|
48
|
124
|
—
|
831
|
Of which: collective
|
806
|
479
|
462
|
—
|
—
|
8
|
—
|
1,755
|
|
1,837
|
802
|
3,052
|
138
|
136
|
193
|
28
|
6,186
|
ECL provisions coverage (2,3)
|
|
|
|
|
|
|
|
|
Stage 1 (%)
|
0.10
|
0.31
|
0.38
|
0.20
|
0.12
|
0.15
|
0.05
|
0.18
|
Stage 2 (%)
|
2.77
|
8.03
|
4.59
|
3.51
|
3.30
|
3.13
|
13.64
|
3.90
|
Stage 3 (%)
|
42.62
|
39.81
|
41.91
|
13.09
|
22.75
|
77.19
|
—
|
40.67
|
|
1.05
|
4.24
|
2.76
|
0.79
|
0.93
|
2.03
|
0.10
|
1.66
|
Impairment losses
|
|
|
|
|
|
|
|
|
ECL charge (4)
|
792
|
250
|
1,927
|
100
|
107
|
40
|
26
|
3,242
|
Stage 1
|
(36)
|
(68)
|
(58)
|
25
|
8
|
(2)
|
10
|
(121)
|
Stage 2
|
619
|
261
|
1,667
|
60
|
71
|
54
|
15
|
2,747
|
Stage 3
|
209
|
57
|
318
|
15
|
28
|
(12)
|
1
|
616
|
Of which: individual
|
—
|
(12)
|
166
|
15
|
28
|
(3)
|
—
|
194
|
Of which: collective
|
209
|
69
|
152
|
—
|
—
|
(9)
|
1
|
422
|
ECL loss rate - annualised (basis points) (3)
|
45
|
132
|
174
|
57
|
73
|
42
|
10
|
87
|
Amounts written-off
|
378
|
219
|
321
|
5
|
3
|
11
|
—
|
937
|
Of which: individual
|
—
|
—
|
172
|
5
|
3
|
11
|
—
|
191
|
Of which: collective
|
378
|
219
|
149
|
—
|
—
|
—
|
—
|
746
|
|
Retail
|
Ulster Bank
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
|
|
Banking
|
RoI
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Total
|
2019*
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Loans - amortised cost and FVOCI
|
|
|
|
|
|
|
|
|
Stage 1
|
144,513
|
15,409
|
88,100
|
14,956
|
14,834
|
9,273
|
15,282
|
302,367
|
Stage 2
|
13,558
|
1,642
|
11,353
|
587
|
545
|
180
|
3
|
27,868
|
Stage 3
|
1,902
|
2,037
|
2,162
|
207
|
121
|
169
|
—
|
6,598
|
Of which: individual
|
—
|
68
|
1,497
|
207
|
121
|
158
|
—
|
2,051
|
Of which: collective
|
1,902
|
1,969
|
665
|
—
|
—
|
11
|
—
|
4,547
|
|
159,973
|
19,088
|
101,615
|
15,750
|
15,500
|
9,622
|
15,285
|
336,833
|
ECL provisions
|
|
|
|
|
|
|
|
|
Stage 1
|
114
|
29
|
152
|
7
|
4
|
10
|
6
|
322
|
Stage 2
|
467
|
53
|
214
|
7
|
6
|
5
|
—
|
752
|
Stage 3
|
823
|
693
|
1,021
|
29
|
21
|
131
|
—
|
2,718
|
Of which: individual
|
—
|
22
|
602
|
29
|
21
|
122
|
—
|
796
|
Of which: collective
|
823
|
671
|
419
|
—
|
—
|
9
|
—
|
1,922
|
|
1,404
|
775
|
1,387
|
43
|
31
|
146
|
6
|
3,792
|
ECL provisions coverage (2,3)
|
|
|
|
|
|
|
|
|
Stage 1 (%)
|
0.08
|
0.19
|
0.17
|
0.05
|
0.03
|
0.11
|
0.04
|
0.11
|
Stage 2 (%)
|
3.44
|
3.23
|
1.88
|
1.19
|
1.10
|
2.78
|
—
|
2.70
|
Stage 3 (%)
|
43.27
|
34.02
|
47.22
|
14.01
|
17.36
|
77.51
|
—
|
41.19
|
|
0.88
|
4.06
|
1.36
|
0.27
|
0.20
|
1.52
|
0.04
|
1.13
|
Impairment losses
|
|
|
|
|
|
|
|
|
ECL charge (4)
|
393
|
(34)
|
391
|
(6)
|
2
|
(51)
|
1
|
696
|
Stage 1
|
(90)
|
(37)
|
(66)
|
(14)
|
(5)
|
—
|
—
|
(212)
|
Stage 2
|
256
|
(35)
|
99
|
—
|
5
|
(8)
|
1
|
318
|
Stage 3
|
227
|
38
|
358
|
8
|
2
|
(43)
|
—
|
590
|
Of which: individual
|
—
|
—
|
328
|
8
|
2
|
(35)
|
—
|
303
|
Of which: collective
|
227
|
38
|
30
|
—
|
—
|
(8)
|
—
|
287
|
ECL loss rate - annualised (basis points) (3)
|
25
|
(15)
|
38
|
(4)
|
1
|
(53)
|
1
|
20
|
Amounts written-off
|
235
|
85
|
450
|
1
|
5
|
16
|
—
|
792
|
Of which: individual
|
—
|
5
|
345
|
1
|
5
|
16
|
—
|
372
|
Of which: collective
|
235
|
80
|
105
|
—
|
—
|
—
|
—
|
420
|
|
31 December 2020
|
30 September 2020*
|
30 June 2020*
|
31 December 2019*
|
|
£m
|
£m
|
£m
|
£m
|
Total Loans
|
372,399
|
365,276
|
365,527
|
336,833
|
Personal
|
204,188
|
198,274
|
195,957
|
188,870
|
Wholesale
|
168,211
|
167,002
|
169,570
|
147,963
|
|
|
|
|
|
Value of loans in Stage 2
|
78,917
|
95,527
|
97,010
|
27,868
|
Personal
|
34,352
|
35,703
|
30,778
|
15,034
|
Wholesale
|
44,565
|
59,824
|
66,232
|
12,834
|
|
|
|
|
|
ECL Provisions in Stage 2
|
3,081
|
3,061
|
3,025
|
752
|
Personal
|
996
|
1,011
|
1,010
|
503
|
Wholesale
|
2,085
|
2,050
|
2,015
|
249
|
|
|
|
|
|
ECL Provision Coverage in Stage 2
|
3.90%
|
3.20%
|
3.12%
|
2.70%
|
Personal
|
2.90%
|
2.83%
|
3.28%
|
3.35%
|
Wholesale
|
4.68%
|
3.43%
|
3.04%
|
1.94%
|
|
Year ended 31 December 2020
|
|||||||
|
|
|
|
|
|
Central
|
Total
|
|
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
NatWest
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
3,868
|
395
|
2,740
|
489
|
371
|
(57)
|
(57)
|
7,749
|
Non-interest income
|
313
|
115
|
1,218
|
274
|
126
|
1,204
|
(179)
|
3,071
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
(24)
|
-
|
(24)
|
Total income
|
4,181
|
510
|
3,958
|
763
|
497
|
1,123
|
(236)
|
10,796
|
Direct expenses - staff costs
|
(516)
|
(198)
|
(638)
|
(173)
|
(117)
|
(524)
|
(1,295)
|
(3,461)
|
- other
costs
|
(208)
|
(86)
|
(279)
|
(83)
|
(53)
|
(152)
|
(2,457)
|
(3,318)
|
Indirect expenses
|
(1,571)
|
(170)
|
(1,344)
|
(210)
|
(74)
|
(362)
|
3,731
|
-
|
Strategic costs
- direct
|
(52)
|
(12)
|
(40)
|
(2)
|
(45)
|
(237)
|
(625)
|
(1,013)
|
-
indirect
|
(174)
|
(13)
|
(139)
|
(13)
|
(4)
|
(30)
|
373
|
-
|
Litigation and conduct costs
|
(19)
|
(7)
|
10
|
26
|
2
|
(5)
|
(120)
|
(113)
|
Operating expenses
|
(2,540)
|
(486)
|
(2,430)
|
(455)
|
(291)
|
(1,310)
|
(393)
|
(7,905)
|
Operating profit/(loss) before impairment losses
|
1,641
|
24
|
1,528
|
308
|
206
|
(187)
|
(629)
|
2,891
|
Impairment losses
|
(792)
|
(250)
|
(1,927)
|
(100)
|
(107)
|
(40)
|
(26)
|
(3,242)
|
Operating profit/(loss)
|
849
|
(226)
|
(399)
|
208
|
99
|
(227)
|
(655)
|
(351)
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (1)
|
10.2%
|
(11.7%)
|
(4.5%)
|
10.3%
|
6.1%
|
(3.8%)
|
nm
|
(2.4%)
|
Cost:income ratio (1)
|
60.8%
|
95.3%
|
59.9%
|
59.6%
|
58.6%
|
116.7%
|
nm
|
72.9%
|
Total assets (£bn)
|
197.6
|
26.6
|
187.4
|
26.2
|
34.0
|
270.1
|
57.6
|
799.5
|
Funded assets (£bn)
|
197.6
|
26.6
|
187.4
|
26.2
|
34.0
|
105.9
|
55.3
|
633.0
|
Net loans to customers - amortised cost (£bn)
|
172.3
|
18.0
|
108.2
|
17.0
|
13.3
|
8.4
|
23.3
|
360.5
|
Loan impairment rate (1)
|
45bps
|
133bps
|
173bps
|
58bps
|
80bps
|
nm
|
nm
|
88bps
|
Impairment provisions (£bn)
|
(1.8)
|
(0.8)
|
(2.9)
|
(0.1)
|
(0.1)
|
(0.2)
|
(0.1)
|
(6.0)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
(0.5)
|
(1.1)
|
-
|
-
|
(0.1)
|
(0.1)
|
(2.6)
|
Customer deposits (£bn)
|
171.8
|
19.6
|
167.7
|
32.4
|
31.3
|
2.6
|
6.3
|
431.7
|
Risk-weighted assets (RWAs) (£bn)
|
36.7
|
11.8
|
75.1
|
10.9
|
7.5
|
26.9
|
1.4
|
170.3
|
RWA equivalent (RWAe) (£bn)
|
36.7
|
11.8
|
75.1
|
10.9
|
7.5
|
28.7
|
1.6
|
172.3
|
Employee numbers (FTEs - thousands)
|
16.0
|
2.7
|
9.6
|
2.1
|
1.7
|
2.2
|
25.6
|
59.9
|
Average interest earning assets (£bn)
|
181.4
|
26.4
|
163.1
|
23.8
|
31.7
|
37.9
|
nm
|
493.5
|
Net interest margin
|
2.13%
|
1.50%
|
1.68%
|
2.05%
|
1.17%
|
(0.15%)
|
nm
|
1.57%
|
Third party customer asset rate (2)
|
2.89%
|
2.30%
|
2.86%
|
2.53%
|
2.52%
|
nm
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.19%)
|
(0.07%)
|
(0.08%)
|
(0.11%)
|
(0.01%)
|
nm
|
nm
|
nm
|
|
Year ended 31 December 2019
|
|||||||
|
|
|
|
|
|
Central
|
Total
|
|
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
NatWest
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
4,130
|
400
|
2,842
|
521
|
478
|
(188)
|
(136)
|
8,047
|
Non-interest income
|
736
|
167
|
1,476
|
256
|
132
|
1,166
|
1,318
|
5,251
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
(80)
|
-
|
(80)
|
Strategic disposals
|
-
|
-
|
-
|
-
|
-
|
444
|
591
|
1,035
|
Total income
|
4,866
|
567
|
4,318
|
777
|
610
|
1,342
|
1,773
|
14,253
|
Direct expenses - staff costs
|
(560)
|
(193)
|
(686)
|
(162)
|
(120)
|
(626)
|
(1,220)
|
(3,567)
|
- other
costs
|
(302)
|
(96)
|
(286)
|
(66)
|
(57)
|
(202)
|
(2,473)
|
(3,482)
|
Indirect expenses
|
(1,541)
|
(181)
|
(1,264)
|
(211)
|
(67)
|
(350)
|
3,614
|
-
|
Strategic costs
- direct
|
(17)
|
(33)
|
(41)
|
(2)
|
(12)
|
(178)
|
(1,098)
|
(1,381)
|
-
indirect
|
(273)
|
(27)
|
(261)
|
(36)
|
(8)
|
(44)
|
649
|
-
|
Litigation and conduct costs
|
(925)
|
(22)
|
(62)
|
(9)
|
-
|
(18)
|
141
|
(895)
|
Operating expenses
|
(3,618)
|
(552)
|
(2,600)
|
(486)
|
(264)
|
(1,418)
|
(387)
|
(9,325)
|
Operating profit/(loss) before impairment
(losses)/releases
|
1,248
|
15
|
1,718
|
291
|
346
|
(76)
|
1,386
|
4,928
|
Impairment (losses)/releases
|
(393)
|
34
|
(391)
|
6
|
(2)
|
51
|
(1)
|
(696)
|
Operating profit/(loss)
|
855
|
49
|
1,327
|
297
|
344
|
(25)
|
1,385
|
4,232
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (1)
|
9.6%
|
2.3%
|
8.4%
|
15.4%
|
25.7%
|
(3.2%)
|
nm
|
9.4%
|
Cost:income ratio (1)
|
74.4%
|
97.4%
|
58.9%
|
62.5%
|
43.3%
|
105.7%
|
nm
|
65.1%
|
Total assets (£bn)
|
182.3
|
25.4
|
165.4
|
23.3
|
31.7
|
263.9
|
31.0
|
723.0
|
Funded assets (£bn)
|
182.3
|
25.4
|
165.4
|
23.3
|
31.7
|
116.2
|
28.7
|
573.0
|
Net loans to customers - amortised cost (£bn)
|
158.9
|
18.2
|
101.2
|
15.5
|
14.1
|
8.4
|
10.6
|
326.9
|
Loan impairment rate (1)
|
25bps
|
(18)bps
|
38bps
|
(4)bps
|
1bps
|
nm
|
nm
|
21bps
|
Impairment provisions (£bn)
|
(1.4)
|
(0.8)
|
(1.3)
|
-
|
-
|
(0.1)
|
(0.1)
|
(3.7)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
(0.7)
|
(1.0)
|
-
|
-
|
(0.1)
|
(0.1)
|
(2.7)
|
Customer deposits (£bn)
|
150.3
|
18.5
|
135.0
|
28.4
|
30.1
|
3.7
|
3.2
|
369.2
|
Risk-weighted assets (RWAs) (£bn)
|
37.8
|
13.0
|
72.5
|
10.1
|
6.5
|
37.9
|
1.4
|
179.2
|
RWA equivalent (RWAe) (£bn)
|
38.2
|
13.2
|
72.8
|
10.1
|
6.7
|
40.5
|
1.7
|
183.2
|
Employee numbers (FTEs - thousands)
|
18.0
|
2.9
|
9.7
|
1.9
|
1.8
|
5.0
|
24.7
|
64.0
|
Average interest earning assets (£bn)
|
167.2
|
25.1
|
145.9
|
21.7
|
29.9
|
35.4
|
nm
|
448.6
|
Net interest margin
|
2.47%
|
1.59%
|
1.95%
|
2.40%
|
1.60%
|
(0.53%)
|
nm
|
1.79%
|
Third party customer asset rate (2)
|
3.23%
|
2.28%
|
3.36%
|
2.93%
|
2.89%
|
nm
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.37%)
|
(0.09%)
|
(0.19%)
|
(0.35%)
|
(0.11%)
|
nm
|
nm
|
nm
|
|
Quarter ended 31 December 2020
|
|||||||
|
|
|
|
|
|
Central
|
Total
|
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
NatWest
|
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
949
|
101
|
667
|
118
|
85
|
(2)
|
53
|
1,971
|
Non-interest income
|
25
|
30
|
284
|
66
|
41
|
118
|
43
|
607
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
(43)
|
-
|
(43)
|
Total income
|
974
|
131
|
951
|
184
|
126
|
73
|
96
|
2,535
|
Direct expenses - staff costs
|
(117)
|
(48)
|
(141)
|
(36)
|
(25)
|
(90)
|
(381)
|
(838)
|
- other
costs
|
(56)
|
(21)
|
(68)
|
(22)
|
(16)
|
(21)
|
(779)
|
(983)
|
Indirect expenses
|
(393)
|
(31)
|
(386)
|
(61)
|
(32)
|
(133)
|
1,036
|
-
|
Strategic costs
- direct
|
(6)
|
(3)
|
(35)
|
2
|
(37)
|
(50)
|
(197)
|
(326)
|
-
indirect
|
(36)
|
(3)
|
(28)
|
(3)
|
(1)
|
(6)
|
77
|
-
|
Litigation and conduct costs
|
(210)
|
(8)
|
2
|
29
|
(1)
|
(1)
|
(5)
|
(194)
|
Operating expenses
|
(818)
|
(114)
|
(656)
|
(91)
|
(112)
|
(301)
|
(249)
|
(2,341)
|
Operating profit/(loss) before impairment
(losses)/releases
|
156
|
17
|
295
|
93
|
14
|
(228)
|
(153)
|
194
|
Impairment (losses)/releases
|
(65)
|
1
|
(10)
|
(26)
|
(27)
|
(2)
|
(1)
|
(130)
|
Operating profit/(loss)
|
91
|
18
|
285
|
67
|
(13)
|
(230)
|
(154)
|
64
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (1)
|
3.8%
|
3.9%
|
8.1%
|
13.3%
|
(5.5%)
|
(15.0%)
|
nm
|
(1.4%)
|
Cost:income ratio (1)
|
84.0%
|
87.0%
|
67.8%
|
49.5%
|
88.9%
|
nm
|
nm
|
92.2%
|
Total assets (£bn)
|
197.6
|
26.6
|
187.4
|
26.2
|
34.0
|
270.1
|
57.6
|
799.5
|
Funded assets (£bn)
|
197.6
|
26.6
|
187.4
|
26.2
|
34.0
|
105.9
|
55.3
|
633.0
|
Net loans to customers - amortised cost (£bn)
|
172.3
|
18.0
|
108.2
|
17.0
|
13.3
|
8.4
|
23.3
|
360.5
|
Loan impairment rate (1)
|
15bps
|
(2)bps
|
4bps
|
61bps
|
81bps
|
nm
|
nm
|
14bps
|
Impairment provisions (£bn)
|
(1.8)
|
(0.8)
|
(2.9)
|
(0.1)
|
(0.1)
|
(0.2)
|
(0.1)
|
(6.0)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
(0.5)
|
(1.1)
|
-
|
-
|
(0.1)
|
(0.1)
|
(2.6)
|
Customer deposits (£bn)
|
171.8
|
19.6
|
167.7
|
32.4
|
31.3
|
2.6
|
6.3
|
431.7
|
Risk-weighted assets (RWAs) (£bn)
|
36.7
|
11.8
|
75.1
|
10.9
|
7.5
|
26.9
|
1.4
|
170.3
|
RWA equivalent (RWAe) (£bn)
|
36.7
|
11.8
|
75.1
|
10.9
|
7.5
|
28.7
|
1.6
|
172.3
|
Employee numbers (FTEs - thousands)
|
16.0
|
2.7
|
9.6
|
2.1
|
1.7
|
2.2
|
25.6
|
59.9
|
Average interest earning assets (£bn)
|
186.1
|
26.8
|
170.2
|
25.2
|
32.9
|
36.5
|
nm
|
509.6
|
Net interest margin
|
2.03%
|
1.50%
|
1.56%
|
1.86%
|
1.03%
|
(0.02%)
|
nm
|
1.54%
|
Third party customer asset rate (2)
|
2.81%
|
2.33%
|
2.65%
|
2.38%
|
2.34%
|
nm
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.10%)
|
(0.07%)
|
(0.01%)
|
(0.01%)
|
0.05%
|
nm
|
nm
|
nm
|
|
Quarter ended 30 September 2020
|
|||||||
|
|
|
|
|
|
Central
|
Total
|
|
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
NatWest
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
937
|
100
|
703
|
120
|
85
|
(21)
|
2
|
1,926
|
Non-interest income
|
85
|
30
|
301
|
67
|
27
|
289
|
(268)
|
531
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
-
|
(34)
|
-
|
(34)
|
Total income
|
1,022
|
130
|
1,004
|
187
|
112
|
234
|
(266)
|
2,423
|
Direct expenses - staff costs
|
(131)
|
(50)
|
(156)
|
(44)
|
(27)
|
(108)
|
(311)
|
(827)
|
- other
costs
|
(49)
|
(23)
|
(71)
|
(14)
|
(10)
|
(37)
|
(552)
|
(756)
|
Indirect expenses
|
(380)
|
(47)
|
(300)
|
(48)
|
(13)
|
(80)
|
868
|
-
|
Strategic costs
- direct
|
(45)
|
(5)
|
(3)
|
(4)
|
(5)
|
(67)
|
(94)
|
(223)
|
-
indirect
|
(35)
|
(2)
|
(38)
|
-
|
2
|
(8)
|
81
|
-
|
Litigation and conduct costs
|
(7)
|
-
|
15
|
(2)
|
-
|
(2)
|
(12)
|
(8)
|
Operating expenses
|
(647)
|
(127)
|
(553)
|
(112)
|
(53)
|
(302)
|
(20)
|
(1,814)
|
Operating (loss)/profit before impairment
(losses)/releases
|
375
|
3
|
451
|
75
|
59
|
(68)
|
(286)
|
609
|
Impairment (losses)/releases
|
(70)
|
(8)
|
(127)
|
(18)
|
(34)
|
2
|
1
|
(254)
|
Operating (loss)/profit
|
305
|
(5)
|
324
|
57
|
25
|
(66)
|
(285)
|
355
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (1)
|
15.3%
|
(1.0%)
|
9.2%
|
11.2%
|
6.4%
|
(4.7%)
|
nm
|
0.8%
|
Cost:income ratio (1)
|
63.3%
|
97.7%
|
53.4%
|
59.9%
|
47.3%
|
129.1%
|
nm
|
74.5%
|
Total assets (£bn)
|
189.5
|
27.4
|
186.9
|
24.9
|
32.7
|
283.2
|
47.0
|
791.6
|
Funded assets (£bn)
|
189.5
|
27.4
|
186.9
|
24.9
|
32.7
|
121.3
|
44.6
|
627.3
|
Net loans to customers - amortised cost (£bn)
|
166.7
|
18.3
|
110.0
|
16.5
|
12.8
|
10.1
|
19.3
|
353.7
|
Loan impairment rate (1)
|
17bps
|
17bps
|
45bps
|
43bps
|
105bps
|
nm
|
nm
|
28bps
|
Impairment provisions (£bn)
|
(1.9)
|
(0.8)
|
(3.0)
|
(0.1)
|
(0.1)
|
(0.2)
|
-
|
(6.1)
|
Impairment provisions - stage 3 (£bn)
|
(0.9)
|
(0.5)
|
(1.1)
|
-
|
-
|
(0.2)
|
-
|
(2.7)
|
Customer deposits (£bn)
|
164.9
|
19.6
|
161.3
|
30.3
|
30.4
|
4.7
|
7.2
|
418.4
|
Risk-weighted assets (RWAs) (£bn)
|
36.3
|
12.1
|
76.5
|
10.6
|
7.0
|
30.0
|
1.4
|
173.9
|
RWA equivalent (RWAe) (£bn)
|
36.3
|
12.1
|
76.6
|
10.6
|
7.1
|
32.0
|
1.4
|
176.1
|
Employee numbers (FTEs - thousands)
|
16.6
|
2.8
|
9.6
|
2.1
|
1.7
|
2.8
|
26.0
|
61.6
|
Average interest earning assets (£bn)
|
182.2
|
27.3
|
169.3
|
24.0
|
31.5
|
39.2
|
nm
|
508.2
|
Net interest margin
|
2.05%
|
1.46%
|
1.65%
|
1.99%
|
1.07%
|
(0.21%)
|
nm
|
1.51%
|
Third party customer asset rate (2)
|
2.82%
|
2.32%
|
2.73%
|
2.43%
|
2.41%
|
nm
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.13%)
|
(0.06%)
|
(0.02%)
|
(0.02%)
|
0.02%
|
nm
|
nm
|
nm
|
|
Quarter ended 31 December 2019
|
|||||||
|
|
|
|
|
|
Central
|
Total
|
|
|
Retail
|
Ulster
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
NatWest
|
|
Banking
|
Bank RoI
|
Banking
|
Banking
|
International
|
Markets
|
other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Income statement
|
|
|
|
|
|
|
|
|
Net interest income
|
1,012
|
98
|
715
|
130
|
117
|
(4)
|
(31)
|
2,037
|
Non-interest income
|
183
|
42
|
361
|
65
|
33
|
276
|
1,258
|
2,218
|
Own credit adjustments
|
-
|
(1)
|
-
|
-
|
-
|
(22)
|
1
|
(22)
|
Total income
|
1,195
|
139
|
1,076
|
195
|
150
|
250
|
1,228
|
4,233
|
Direct expenses - staff costs
|
(129)
|
(37)
|
(165)
|
(40)
|
(31)
|
(118)
|
(315)
|
(835)
|
- other
costs
|
(85)
|
(26)
|
(63)
|
(14)
|
(20)
|
(74)
|
(788)
|
(1,070)
|
Indirect expenses
|
(428)
|
(47)
|
(349)
|
(66)
|
(27)
|
(104)
|
1,021
|
-
|
Strategic costs
- direct
|
(9)
|
(21)
|
(21)
|
(2)
|
(3)
|
(74)
|
(407)
|
(537)
|
-
indirect
|
(130)
|
(8)
|
(90)
|
(6)
|
(2)
|
(7)
|
243
|
-
|
Litigation and conduct costs
|
(7)
|
(1)
|
(12)
|
(7)
|
-
|
(15)
|
(43)
|
(85)
|
Operating expenses
|
(788)
|
(140)
|
(700)
|
(135)
|
(83)
|
(392)
|
(289)
|
(2,527)
|
Operating profit/(loss) before impairment
(losses)/releases
|
407
|
(1)
|
376
|
60
|
67
|
(142)
|
939
|
1,706
|
Impairment (losses)/releases
|
(81)
|
(4)
|
(81)
|
1
|
(5)
|
10
|
-
|
(160)
|
Operating profit/(loss)
|
326
|
(5)
|
295
|
61
|
62
|
(132)
|
939
|
1,546
|
Additional information
|
|
|
|
|
|
|
|
|
Return on equity (1)
|
14.9%
|
(1.0%)
|
7.6%
|
12.0%
|
17.3%
|
(6.5%)
|
nm
|
17.7%
|
Cost:income ratio (1)
|
65.9%
|
100.7%
|
63.9%
|
69.2%
|
55.3%
|
156.8%
|
nm
|
59.4%
|
Total assets (£bn)
|
182.3
|
25.4
|
165.4
|
23.3
|
31.7
|
263.9
|
31.0
|
723.0
|
Funded assets (£bn)
|
182.3
|
25.4
|
165.4
|
23.3
|
31.7
|
116.2
|
28.7
|
573.0
|
Net loans to customers - amortised cost (£bn)
|
158.9
|
18.2
|
101.2
|
15.5
|
14.1
|
8.4
|
10.6
|
326.9
|
Loan impairment rate (1)
|
20bps
|
8bps
|
32bps
|
(3)bps
|
14bps
|
nm
|
nm
|
19bps
|
Impairment provisions (£bn)
|
(1.4)
|
(0.8)
|
(1.3)
|
-
|
-
|
(0.1)
|
(0.1)
|
(3.7)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
(0.7)
|
(1.0)
|
-
|
-
|
(0.1)
|
(0.1)
|
(2.7)
|
Customer deposits (£bn)
|
150.3
|
18.5
|
135.0
|
28.4
|
30.1
|
3.7
|
3.2
|
369.2
|
Risk-weighted assets (RWAs) (£bn)
|
37.8
|
13.0
|
72.5
|
10.1
|
6.5
|
37.9
|
1.4
|
179.2
|
RWA equivalent (RWAe) (£bn)
|
38.2
|
13.2
|
72.8
|
10.1
|
6.7
|
40.5
|
1.7
|
183.2
|
Employee numbers (FTEs - thousands)
|
18.0
|
2.9
|
9.7
|
1.9
|
1.8
|
5.0
|
24.7
|
64.0
|
Average interest earning assets (£bn)
|
172.9
|
24.8
|
146.4
|
22.4
|
31.6
|
36.6
|
nm
|
456.2
|
Net interest margin
|
2.32%
|
1.57%
|
1.94%
|
2.30%
|
1.47%
|
(0.04%)
|
nm
|
1.77%
|
Third party customer asset rate (2)
|
3.11%
|
2.24%
|
3.34%
|
2.88%
|
2.79%
|
nm
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.38%)
|
(0.08%)
|
(0.18%)
|
(0.33%)
|
(0.08%)
|
nm
|
nm
|
nm
|
|
|
Year ended
|
|
Quarter ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
Interest receivable
|
10,071
|
11,375
|
|
2,369
|
2,512
|
2,901
|
|
Interest payable
|
(2,322)
|
(3,328)
|
|
(398)
|
(586)
|
(864)
|
|
|
|
|
|
|
|
|
|
Net interest income
|
7,749
|
8,047
|
|
1,971
|
1,926
|
2,037
|
|
|
|
|
|
|
|
|
|
Fees and commissions receivable
|
2,734
|
3,359
|
|
653
|
651
|
789
|
|
Fees and commissions payable
|
(722)
|
(848)
|
|
(131)
|
(199)
|
(175)
|
|
Income from trading activities
|
1,125
|
932
|
|
71
|
252
|
138
|
|
Other operating income
|
(90)
|
2,763
|
|
(29)
|
(207)
|
1,444
|
|
|
|
|
|
|
|
|
|
Non-interest income
|
3,047
|
6,206
|
|
564
|
497
|
2,196
|
|
|
|
|
|
|
|
|
|
Total income
|
10,796
|
14,253
|
|
2,535
|
2,423
|
4,233
|
|
|
|
|
|
|
|
|
|
Staff costs
|
(3,923)
|
(4,018)
|
|
(986)
|
(982)
|
(990)
|
|
Premises and equipment
|
(1,223)
|
(1,259)
|
|
(321)
|
(251)
|
(436)
|
|
Other administrative expenses
|
(1,845)
|
(2,828)
|
|
(764)
|
(385)
|
(743)
|
|
Depreciation and amortisation
|
(905)
|
(1,176)
|
|
(270)
|
(194)
|
(323)
|
|
Impairment of other intangible assets
|
(9)
|
(44)
|
|
-
|
(2)
|
(35)
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(7,905)
|
(9,325)
|
|
(2,341)
|
(1,814)
|
(2,527)
|
|
|
|
|
|
|
|
|
|
Profit before impairment losses
|
2,891
|
4,928
|
|
194
|
609
|
1,706
|
|
Impairment losses
|
(3,242)
|
(696)
|
|
(130)
|
(254)
|
(160)
|
|
|
|
|
|
|
|
|
|
Operating (loss)/profit before tax
|
(351)
|
4,232
|
|
64
|
355
|
1,546
|
|
Tax charge
|
(83)
|
(432)
|
|
(84)
|
(207)
|
(37)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the period
|
(434)
|
3,800
|
|
(20)
|
148
|
1,509
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Ordinary shareholders
|
(753)
|
3,133
|
|
(109)
|
61
|
1,410
|
|
Preference shareholders
|
26
|
39
|
|
5
|
5
|
9
|
|
Paid-in equity holders
|
355
|
367
|
|
83
|
80
|
90
|
|
Non-controlling interests
|
(62)
|
261
|
|
1
|
2
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share
|
(6.2)p
|
26.0p
|
|
(0.9)p
|
0.5p
|
11.7p
|
|
Earnings per ordinary share - fully diluted
|
(6.2)p
|
25.9p
|
|
(0.9)p
|
0.5p
|
11.6p
|
|
|
Year ended
|
|
Quarter ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
(Loss)/profit for the period
|
(434)
|
3,800
|
|
(20)
|
148
|
1,509
|
|
Items that do not qualify for reclassification
|
|
|
|
|
|
|
|
Remeasurement of retirement benefit schemes
|
4
|
(142)
|
|
(50)
|
(14)
|
(46)
|
|
(Loss)/profit on fair value of credit in financial
liabilities
|
|
|
|
|
|
|
|
designated at FVTPL due
to own credit risk
|
(52)
|
(189)
|
|
(72)
|
(63)
|
(74)
|
|
FVOCI financial assets
|
(64)
|
(71)
|
|
(21)
|
77
|
21
|
|
Tax
|
42
|
28
|
|
29
|
13
|
4
|
|
|
(70)
|
(374)
|
|
(114)
|
13
|
(95)
|
|
Items that do qualify for reclassification
|
|
|
|
|
|
|
|
FVOCI financial assets
|
44
|
(14)
|
|
81
|
74
|
(11)
|
|
Cash flow hedges
|
271
|
294
|
|
(93)
|
(53)
|
(394)
|
|
Currency translation
|
276
|
(1,836)
|
|
(149)
|
(150)
|
(1,538)
|
|
Tax
|
(89)
|
(170)
|
|
(4)
|
94
|
23
|
|
|
502
|
(1,726)
|
|
(165)
|
(35)
|
(1,920)
|
|
Other comprehensive income/(loss) after tax
|
432
|
(2,100)
|
|
(279)
|
(22)
|
(2,015)
|
|
|
|
|
|
|
|
|
|
Total comprehensive(loss)/income for the period
|
(2)
|
1,700
|
|
(299)
|
126
|
(506)
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Ordinary shareholders
|
(338)
|
1,044
|
|
(389)
|
37
|
(580)
|
|
Preference shareholders
|
26
|
39
|
|
5
|
5
|
9
|
|
Paid-in equity holders
|
355
|
367
|
|
83
|
80
|
90
|
|
Non-controlling interests
|
(45)
|
250
|
|
2
|
4
|
(25)
|
|
|
(2)
|
1,700
|
|
(299)
|
126
|
(506)
|
|
|
31 December
|
30 September
|
31 December
|
|
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
£m
|
|
Assets
|
|
|
|
|
Cash and balances at central banks*
|
124,489
|
111,681
|
80,993
|
|
Trading assets
|
68,990
|
70,820
|
76,745
|
|
Derivatives
|
166,523
|
164,311
|
150,029
|
|
Settlement balances
|
2,297
|
10,947
|
4,387
|
|
Loans to banks - amortised cost*
|
6,955
|
6,571
|
7,554
|
|
Loans to customers - amortised cost
|
360,544
|
353,691
|
326,947
|
|
Other financial assets
|
55,148
|
58,736
|
61,452
|
|
Intangible assets
|
6,655
|
6,600
|
6,622
|
|
Other assets
|
7,890
|
8,204
|
8,310
|
|
|
|
|
|
|
Total assets
|
799,491
|
791,561
|
723,039
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Bank deposits
|
20,606
|
18,666
|
20,493
|
|
Customer deposits
|
431,739
|
418,358
|
369,247
|
|
Settlement balances
|
5,545
|
9,839
|
4,069
|
|
Trading liabilities
|
72,256
|
73,023
|
73,949
|
|
Derivatives
|
160,705
|
160,532
|
146,879
|
|
Other financial liabilities
|
45,811
|
48,848
|
45,220
|
|
Subordinated liabilities
|
9,962
|
10,467
|
9,979
|
|
Notes in circulation
|
2,655
|
2,308
|
2,109
|
|
Other liabilities
|
6,388
|
6,370
|
7,538
|
|
Total liabilities
|
755,667
|
748,411
|
679,483
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Ordinary shareholders' interests
|
38,367
|
38,693
|
38,993
|
|
Other owners' interests
|
5,493
|
4,495
|
4,554
|
|
Owners’ equity
|
43,860
|
43,188
|
43,547
|
|
Non-controlling interests
|
(36)
|
(38)
|
9
|
|
Total equity
|
43,824
|
43,150
|
43,556
|
|
Total liabilities and equity
|
799,491
|
791,561
|
723,039
|
|
|
|
|
|
|
|
Year ended
|
|
Quarter ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Called-up share capital - at 1 January
|
12,094
|
12,049
|
|
12,127
|
12,125
|
12,094
|
|
Ordinary shares issued
|
35
|
45
|
|
2
|
2
|
-
|
|
At 31 December
|
12,129
|
12,094
|
|
12,129
|
12,127
|
12,094
|
|
|
|
|
|
|
|
|
|
Paid-in equity - at 1 January
|
4,058
|
4,058
|
|
4,001
|
4,058
|
4,058
|
|
Redeemed/reclassified (1)
|
(1,277)
|
-
|
|
-
|
(1,277)
|
-
|
|
Securities issued during the period (2)
|
2,218
|
-
|
|
998
|
1,220
|
-
|
|
At 31 December
|
4,999
|
4,058
|
|
4,999
|
4,001
|
4,058
|
|
|
|
|
|
|
|
|
|
Share premium account - at 1 January
|
1,094
|
1,027
|
|
1,110
|
1,110
|
1,094
|
|
Ordinary shares issued
|
17
|
67
|
|
1
|
-
|
-
|
|
At 31 December
|
1,111
|
1,094
|
|
1,111
|
1,110
|
1,094
|
|
|
|
|
|
|
|
|
|
Merger reserve - at 1 January and 31 December
|
10,881
|
10,881
|
|
10,881
|
10,881
|
10,881
|
|
|
|
|
|
|
|
|
|
FVOCI reserve
- at 1 January
|
138
|
343
|
|
(36)
|
(80)
|
125
|
|
Unrealised gains/(losses)
|
76
|
(107)
|
|
55
|
144
|
(11)
|
|
Realised losses/(gains) (3)
|
152
|
(90)
|
|
367
|
(108)
|
27
|
|
Tax
|
(6)
|
(8)
|
|
(26)
|
8
|
(3)
|
|
At 31 December
|
360
|
138
|
|
360
|
(36)
|
138
|
|
|
|
|
|
|
|
|
|
Cash flow hedging reserve - at 1 January
|
35
|
(191)
|
|
300
|
341
|
336
|
|
Amount recognised in equity
|
321
|
573
|
|
(75)
|
(49)
|
(285)
|
|
Amount transferred from equity to earnings
|
(50)
|
(279)
|
|
(18)
|
(4)
|
(109)
|
|
Tax
|
(77)
|
(68)
|
|
22
|
12
|
93
|
|
At 31 December
|
229
|
35
|
|
229
|
300
|
35
|
|
|
|
|
|
|
|
|
|
Foreign exchange reserve - at 1 January
|
1,343
|
3,278
|
|
1,758
|
1,809
|
2,924
|
|
Retranslation of net assets
|
297
|
(428)
|
|
(155)
|
(75)
|
(381)
|
|
Foreign currency (losses)/gains on hedges of net
assets
|
(55)
|
83
|
|
4
|
4
|
61
|
|
Tax
|
6
|
(110)
|
|
-
|
101
|
(116)
|
|
Recycled to profit or loss on disposal of
businesses (4)
|
17
|
(1,480)
|
|
1
|
(81)
|
(1,145)
|
|
At 31 December
|
1,608
|
1,343
|
|
1,608
|
1,758
|
1,343
|
|
|
|
|
|
|
|
|
|
Retained earnings - at 1 January
|
13,946
|
14,312
|
|
13,071
|
12,940
|
12,663
|
|
Implementation of IFRS 16 on 1 January 2019
|
-
|
(187)
|
|
-
|
-
|
-
|
|
(Loss)/profit attributable to ordinary shareholders
and
|
|
|
|
|
|
|
|
other equity
owners
|
(372)
|
3,539
|
|
(21)
|
146
|
1,509
|
|
Equity preference dividends paid
|
(26)
|
(39)
|
|
(5)
|
(5)
|
(9)
|
|
Paid-in equity dividends paid
|
(355)
|
(367)
|
|
(83)
|
(80)
|
(90)
|
|
Ordinary dividends paid
|
-
|
(3,018)
|
|
-
|
-
|
-
|
|
Unclaimed dividend
|
2
|
-
|
|
-
|
2
|
-
|
|
Redemption/reclassification of paid-in equity (1)
|
(355)
|
-
|
|
-
|
-
|
-
|
|
Realised (losses)/gains in period on FVOCI equity
shares
|
|
|
|
|
|
|
|
-
gross
|
(248)
|
112
|
|
(362)
|
115
|
(6)
|
|
-
tax
|
-
|
-
|
|
27
|
(27)
|
-
|
|
Remeasurement of the retirement benefit schemes
|
|
|
|
|
|
|
|
-
gross
|
4
|
(142)
|
|
(50)
|
(14)
|
(46)
|
|
-
tax
|
22
|
24
|
|
(7)
|
6
|
(1)
|
|
Changes in fair value of credit in financial
liabilities
|
|
|
|
|
|
|
|
designated at
FVTPL
|
|
|
|
|
|
|
|
-
gross
|
(52)
|
(189)
|
|
(72)
|
(63)
|
(74)
|
|
-
tax
|
8
|
20
|
|
9
|
7
|
6
|
|
Shares issued under employee share schemes
|
(11)
|
(6)
|
|
-
|
-
|
(2)
|
|
Share-based payments
|
4
|
(113)
|
|
60
|
44
|
(4)
|
|
At 31 December
|
12,567
|
13,946
|
|
12,567
|
13,071
|
13,946
|
|
|
Year ended
|
|
Quarter ended
|
|||
|
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Own shares held - at 1 January
|
(42)
|
(21)
|
|
(24)
|
(24)
|
(45)
|
|
Shares issued under employee share schemes
|
95
|
39
|
|
-
|
-
|
5
|
|
Own shares acquired
|
(77)
|
(60)
|
|
-
|
-
|
(2)
|
|
At 31 December
|
(24)
|
(42)
|
|
(24)
|
(24)
|
(42)
|
|
Owners' equity at 31 December
|
43,860
|
43,547
|
|
43,860
|
43,188
|
43,547
|
|
|
|
|
|
|
|
|
|
Non-controlling interests - at 1 January
|
9
|
754
|
|
(38)
|
(42)
|
16
|
|
Currency translation adjustments and other movements
|
17
|
(11)
|
|
1
|
2
|
(25)
|
|
(Loss)/profit attributable to non-controlling
interests
|
(62)
|
261
|
|
1
|
2
|
-
|
|
Dividends paid
|
-
|
(5)
|
|
-
|
-
|
(5)
|
|
Equity raised (5)
|
-
|
45
|
|
-
|
-
|
-
|
|
Equity withdrawn and disposals (6)
|
-
|
(1,035)
|
|
-
|
-
|
23
|
|
At 31 December
|
(36)
|
9
|
|
(36)
|
(38)
|
9
|
|
|
|
|
|
|
|
|
|
Total equity at 31 December
|
43,824
|
43,556
|
|
43,824
|
43,150
|
43,556
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Ordinary shareholders
|
38,367
|
38,993
|
|
38,367
|
38,693
|
38,993
|
|
Preference shareholders
|
494
|
496
|
|
494
|
494
|
496
|
|
Paid-in equity holders
|
4,999
|
4,058
|
|
4,999
|
4,001
|
4,058
|
|
Non-controlling interests
|
(36)
|
9
|
|
(36)
|
(38)
|
9
|
|
|
43,824
|
43,556
|
|
43,824
|
43,150
|
43,556
|
|
|
Year ended
|
|
|
|
31 December
|
31 December
|
|
|
2020
|
2019
|
|
|
£m
|
£m
|
|
Operating activities
|
|
|
|
Operating (loss)/profit before tax
|
(351)
|
4,232
|
|
Adjustments for non-cash items
|
2,845
|
2,907
|
|
|
|
|
|
Net cash flows from trading activities
|
2,494
|
7,139
|
|
Changes in operating assets and liabilities
|
26,815
|
(9,940)
|
|
|
|
|
|
Net cash flows from operating activities before tax
|
29,309
|
(2,801)
|
|
Income taxes paid
|
(214)
|
(278)
|
|
|
|
|
|
Net cash flows from operating activities
|
29,095
|
(3,079)
|
|
|
|
|
|
Net cash flows from investing activities
|
7,547
|
(716)
|
|
|
|
|
|
Net cash flows from financing activities
|
90
|
(2,570)
|
|
|
|
|
|
Effects of exchange rate changes on cash and cash
equivalents
|
1,879
|
(1,983)
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
38,611
|
(8,348)
|
|
Cash and cash equivalents at beginning of year
|
100,588
|
108,936
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
139,199
|
100,588
|
|
Payment
|
Other
|
Litigation and
|
|
|
|
protection
|
customer
|
other
|
|
|
|
insurance
|
redress
|
regulatory
|
Other (1)
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
At 1 January 2020
|
1,156
|
314
|
426
|
781
|
2,677
|
Expected credit losses impairment charge
|
-
|
-
|
-
|
46
|
46
|
Currency translation and other movements
|
-
|
3
|
21
|
-
|
24
|
Charge to income statement
|
-
|
13
|
98
|
17
|
128
|
Releases to income statement
|
(100)
|
(8)
|
(17)
|
(29)
|
(154)
|
Provisions utilised
|
(197)
|
(47)
|
(35)
|
(100)
|
(379)
|
At 31 March 2020
|
859
|
275
|
493
|
715
|
2,342
|
Expected credit losses impairment charge
|
-
|
-
|
-
|
77
|
77
|
Currency translation and other movements
|
-
|
1
|
2
|
-
|
3
|
Charge to income statement
|
1
|
62
|
2
|
134
|
199
|
Releases to income statement
|
(150)
|
(7)
|
(4)
|
(54)
|
(215)
|
Provisions utilised
|
(204)
|
(49)
|
(11)
|
(106)
|
(370)
|
At 30 June 2020
|
506
|
282
|
482
|
766
|
2,036
|
Expected credit losses impairment charge
|
-
|
-
|
-
|
16
|
16
|
Currency translation and other movements
|
-
|
1
|
(11)
|
1
|
(9)
|
Charge to income statement
|
-
|
15
|
11
|
112
|
138
|
Releases to income statement
|
-
|
(28)
|
(7)
|
(47)
|
(82)
|
Provisions utilised
|
(114)
|
(48)
|
(49)
|
(40)
|
(251)
|
At 30 September 2020
|
392
|
222
|
426
|
808
|
1,848
|
Expected credit losses impairment charge
|
-
|
-
|
-
|
(56)
|
(56)
|
Currency translation and other movements
|
-
|
-
|
(11)
|
(3)
|
(14)
|
Charge to income statement
|
-
|
262
|
9
|
137
|
408
|
Releases to income statement
|
(27)
|
(15)
|
(39)
|
(48)
|
(129)
|
Provisions utilised
|
(42)
|
(43)
|
(20)
|
(100)
|
(205)
|
At 31 December 2020
|
323
|
426
|
365
|
738
|
1,852
|
●
|
The
financial statements, prepared in accordance with International
Financial Reporting Standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the
company and the undertakings included in the consolidated taken as
a whole; and
|
●
|
The
Strategic report and Directors’ report (incorporating the
Business review) include a fair review of the development and
performance of the business and the position of the company and the
undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face.
|
Howard
Davies
|
Alison
Rose-Slade
|
Katie
Murray
|
Chairman
|
Group
Chief Executive Officer
|
Group
Chief Financial Officer
|
Chairman
|
Executive directors
|
Non-executive directors
|
Howard
Davies
|
Alison
Rose-Slade
Katie
Murray
|
Frank
Dangeard
Patrick
Flynn
Morten
Friis
Robert
Gillespie
Yasmin
Jetha
Mike
Rogers
Mark
Seligman
Lena
Wilson
|
Analyst enquiries:
|
Alexander
Holcroft, Investor Relations
|
+44 (0)
20 7672 1758
|
Media enquiries:
|
NatWest
Group Press Office
|
+44 (0)
131 523 4205
|
|
Management presentation
|
Fixed income call
|
Webcast and dial in details
|
Date:
|
Friday
19 February 2021
|
Friday
19 February 2021
|
https://investors.natwestgroup.com/results-centre
|
Time:
|
9:00 am
UK time
|
1:00 pm
UK time
|
International:
+44 (0) 203 057 6566
|
Conference ID:
|
4244348
|
2299078
|
UK Free
Call: 0800 279 5995
US
Local Dial-In, New York: +1 646 741 2115
|
●
|
Announcement
and slides.
|
●
|
2020
Annual Report and Accounts.
|
●
|
A
financial supplement containing income statement, balance sheet and
segment performance for the nine quarters ended 31 December
2020.
|
●
|
NatWest
Group and NWH Group Pillar 3 Report.
|
Measure
|
Basis of preparation
|
Additional analysis or reconciliation
|
NatWest Group return on tangible equity
|
Annualised loss or profit for the period attributable to ordinary
shareholders divided by average tangible equity. Average tangible
equity is average total equity less average intangible assets and
average other owners’ equity.
|
Table 1
|
Segmental return on equity
|
Segmental operating profit adjusted for preference share dividends
and tax divided by average notional equity, allocated at an
operating segment specific rate, of the period average segmental
risk-weighted assets incorporating the effect of capital deductions
(RWAes).
|
Table 1
|
Operating expenses analysis – management view
|
The
management analysis of operating expenses shows strategic costs and
litigation
and
conduct costs in separate lines. Depreciation and amortisation,
impairment of
other
intangibles and other administrative expenses attributable to these
costs are
included
in strategic costs and litigation and conduct costs lines for
management
analysis.
These amounts are included in staff, premises and equipment and
other
administrative
expenses in the statutory analysis.
|
Table 2
|
Cost:income ratio
|
Total
operating expenses less operating lease depreciation divided by
total income less operating lease depreciation.
|
Table 3
|
Commentary – adjusted periodically for specific
items
|
NatWest
Group and segmental business performance commentary have been
adjusted for the impact of specific items such as notable items,
transfers, operating lease depreciation, strategic and litigation
and conduct costs.
|
Notable
items - page 12, Transfers – pages 13 and 16, Operating lease
depreciation,
Strategic
costs and litigation and conduct costs - pages 23 to
27
|
Net lending in the retail and commercial business
|
Comprises customer loans in the Retail Banking, Ulster Bank RoI,
Commercial Banking, Private Banking and RBSI operating
segments.
|
Pages 2 and 11
|
Bank net interest margin (NIM)
|
Net interest income of the banking business less NatWest Markets
(NWM) element as a percentage of interest-earning assets of the
banking business less NWM element.
|
Table 4
|
Measure
|
Basis of preparation
|
Additional analysis or reconciliation
|
Loan:deposit ratio
|
Net customer loans held at amortised cost divided by total customer
deposits.
|
Table 5
|
Tangible net asset value (TNAV)
|
Tangible
equity divided by the number of ordinary shares in issue. Tangible
equity is ordinary shareholders’ interest less intangible
assets.
|
Page
10
|
NIM
|
Net interest income as a percentage of interest-earning
assets.
|
Page
10
|
Funded assets
|
Total
assets less derivatives.
|
Pages
23 to 27
|
ECL loss rate
|
The
annualised loan impairment charge divided by gross customer
loans.
|
Pages
23 to 27
|
Third party customer asset rate
|
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 only. This excludes intragroup
items, loans to banks and liquid asset portfolios, which are
included for the calculation of net interest margin.
|
Pages
23 to 27
|
Third party customer funding rate
|
Third
party customer funding rate is calculated as annualised interest
payable on third-party customer deposits as a percentage of
third-party customer deposits, including interest bearing and
non-interest bearing customer deposits. This excludes intragroup
items, bank deposits and debt securities in issue.
|
Pages
23 to 27
|
Assets under management and administration (AUMA)
|
Total
AUMA comprises both assets under management (AUMs) and assets under
administration (AUAs) managed within the Private Banking
franchise. AUMs comprise assets under management, assets under
custody and investment cash relating to Private Banking customers.
AUAs are managed by Private Banking on behalf of Retail
Banking and RBSI and a management fee is received in respect of
providing this service.
|
Page 16
|
|
Year ended or as at
|
|
Quarter ended or as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
NatWest Group return on tangible equity
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
(Loss)/profit attributable to ordinary shareholders
(£m)
|
(753)
|
3,133
|
|
(109)
|
61
|
1,410
|
Annualised (loss)/profit attributable to ordinary shareholders
(£m)
|
|
|
|
(436)
|
244
|
5,640
|
Average total equity (£m)
|
43,774
|
45,160
|
|
43,648
|
43,145
|
43,860
|
Adjustment for other owners equity and intangibles
(£m)
|
(11,872)
|
(11,960)
|
|
(11,895)
|
(11,482)
|
(11,952)
|
Adjusted total tangible equity (£m)
|
31,902
|
33,200
|
|
31,753
|
31,663
|
31,908
|
Return on tangible equity (%)
|
(2.4%)
|
9.4%
|
|
(1.4%)
|
0.8%
|
17.7%
|
|
|
Ulster
|
|
|
|
|
|
|
Retail
|
Bank
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
Year ended 31 December 2020
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
Operating profit/(loss) (£m)
|
849
|
(226)
|
|
(399)
|
208
|
99
|
(227)
|
Preference share cost allocation (£m)
|
(88)
|
-
|
|
(153)
|
(22)
|
(20)
|
(68)
|
Adjustment for tax
(£m)
|
(213)
|
-
|
|
155
|
(52)
|
(11)
|
83
|
Adjusted attributable profit/(loss) (£m)
|
548
|
(226)
|
|
(397)
|
134
|
68
|
(212)
|
Average RWAe (£bn)
|
37.2
|
12.4
|
|
76.4
|
10.4
|
7.0
|
37.3
|
Equity factor
|
14.5%
|
15.5%
|
|
11.5%
|
12.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.4
|
1.9
|
|
8.8
|
1.3
|
1.1
|
5.6
|
Return on equity
|
10.2%
|
(11.7%)
|
|
(4.5%)
|
10.3%
|
6.1%
|
(3.8%)
|
|
|
|
|
|
|
|
|
Year ended 31 December 2019
|
|
|
|
|
|
|
|
Operating profit/(loss) (£m)
|
855
|
49
|
|
1,327
|
297
|
344
|
(25)
|
Adjustment for tax (£m)
|
(236)
|
-
|
|
(372)
|
(83)
|
(48)
|
7
|
Preference share cost allocation (£m)
|
(74)
|
-
|
|
(163)
|
(18)
|
(11)
|
(64)
|
Adjustment for Alawwal bank merger gain (£m)
|
-
|
-
|
|
-
|
-
|
-
|
(150)
|
Adjusted attributable profit/(loss) (£m)
|
545
|
49
|
|
792
|
196
|
285
|
(232)
|
Average RWAe (£bn)
|
37.7
|
14.0
|
|
78.2
|
9.8
|
6.9
|
48.0
|
Equity factor
|
15.0%
|
15.0%
|
|
12.0%
|
13.0%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.7
|
2.1
|
|
9.4
|
1.3
|
1.1
|
7.2
|
Return on equity
|
9.6%
|
2.3%
|
|
8.4%
|
15.4%
|
25.7%
|
(3.2%)
|
|
|
|
|
|
|
|
|
|
|
Ulster
|
|
|
|
|
|
|
Retail
|
Bank
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
Quarter ended 31 December 2020
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
Operating profit/(loss) (£m)
|
91
|
18
|
|
285
|
67
|
(13)
|
(230)
|
Preference share cost allocation (£m)
|
(22)
|
-
|
|
(38)
|
(5)
|
(5)
|
(17)
|
Adjustment for tax (£m)
|
(19)
|
-
|
|
(69)
|
(17)
|
3
|
69
|
Adjusted attributable profit/(loss) (£m)
|
50
|
18
|
|
178
|
45
|
(15)
|
(178)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
200
|
72
|
|
712
|
180
|
(60)
|
(712)
|
Average RWAe (£bn)
|
36.1
|
11.9
|
|
75.9
|
10.7
|
7.1
|
31.5
|
Equity factor
|
14.5%
|
15.5%
|
|
11.5%
|
12.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.2
|
1.8
|
|
8.7
|
1.3
|
1.1
|
4.7
|
Return on equity
|
3.8%
|
3.9%
|
|
8.1%
|
13.3%
|
(5.5%)
|
(15.0%)
|
|
|
|
|
|
|
|
|
Quarter ended 30 September 2020
|
|
|
|
|
|
|
|
Operating profit/(loss) (£m)
|
305
|
(5)
|
|
324
|
57
|
25
|
(66)
|
Preference share cost allocation (£m)
|
(22)
|
-
|
|
(38)
|
(6)
|
(5)
|
(17)
|
Adjustment for tax (£m)
|
(79)
|
-
|
|
(80)
|
(14)
|
(3)
|
23
|
Adjusted attributable profit/(loss) (£m)
|
204
|
(5)
|
|
206
|
37
|
17
|
(60)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
816
|
(20)
|
|
824
|
148
|
68
|
(240)
|
Average RWAe (£bn)
|
36.7
|
12.3
|
|
77.8
|
10.5
|
6.8
|
34.0
|
Equity factor
|
14.5%
|
15.5%
|
|
11.5%
|
12.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.3
|
1.9
|
|
8.9
|
1.3
|
1.1
|
5.1
|
Return on equity
|
15.3%
|
(1.0%)
|
|
9.2%
|
11.2%
|
6.4%
|
(4.7%)
|
|
|
|
|
|
|
|
|
Quarter ended 31 December 2019
|
|
|
|
|
|
|
|
Operating profit/(loss) (£m)
|
326
|
(5)
|
|
295
|
61
|
62
|
(132)
|
Preference share cost allocation (£m)
|
(18)
|
-
|
|
(41)
|
(4)
|
(6)
|
(14)
|
Adjustment for tax (£m)
|
(91)
|
-
|
|
(83)
|
(17)
|
(9)
|
37
|
Adjusted attributable profit/(loss) (£m)
|
217
|
(5)
|
|
171
|
40
|
47
|
(109)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
868
|
(20)
|
|
684
|
160
|
188
|
(436)
|
Average RWAe (£bn)
|
38.7
|
13.2
|
|
74.9
|
10.1
|
6.9
|
45.0
|
Equity factor
|
15.0%
|
15.0%
|
|
12.0%
|
13.0%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.8
|
2.0
|
|
9.0
|
1.3
|
1.1
|
6.7
|
Return on equity
|
14.9%
|
(1.0%)
|
|
7.6%
|
12.0%
|
17.3%
|
(6.5%)
|
|
|
|
|
|
|
|
|
Statutory analysis (1,2)
|
|
|
|
|
|
|
|
Year ended
|
|
Quarter ended
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
Operating expenses
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Staff costs
|
3,923
|
4,018
|
|
986
|
982
|
990
|
Premises and equipment
|
1,223
|
1,259
|
|
321
|
251
|
436
|
Other administrative expenses
|
1,845
|
2,828
|
|
764
|
385
|
743
|
Depreciation and amortisation
|
905
|
1,176
|
|
270
|
194
|
323
|
Impairment of other intangible assets
|
9
|
44
|
|
-
|
2
|
35
|
Total operating expenses
|
7,905
|
9,325
|
|
2,341
|
1,814
|
2,527
|
Non-statutory analysis
|
|
|
|
|
|
|
|
|
|
|
Year ended
|
||||||||
|
31 December 2020
|
|
31 December 2019
|
||||||
|
|
Litigation
|
|
Statutory
|
|
|
Litigation
|
|
Statutory
|
|
Strategic
|
and conduct
|
Other
|
operating
|
|
Strategic
|
and conduct
|
Other
|
operating
|
Operating expenses
|
costs
|
costs
|
expenses
|
expenses
|
|
costs
|
costs
|
expenses
|
expenses
|
Staff costs
|
462
|
-
|
3,461
|
3,923
|
|
451
|
-
|
3,567
|
4,018
|
Premises and equipment
|
233
|
-
|
990
|
1,223
|
|
239
|
-
|
1,020
|
1,259
|
Other administrative expenses
|
197
|
113
|
1,535
|
1,845
|
|
295
|
895
|
1,638
|
2,828
|
Depreciation and amortisation
|
114
|
-
|
791
|
905
|
|
352
|
-
|
824
|
1,176
|
Impairment of other intangible assets
|
7
|
-
|
2
|
9
|
|
44
|
-
|
-
|
44
|
Total
|
1,013
|
113
|
6,779
|
7,905
|
|
1,381
|
895
|
7,049
|
9,325
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
||||||||
|
31 December 2020
|
|
30 September 2020
|
||||||
|
|
Litigation
|
|
Statutory
|
|
|
Litigation
|
|
Statutory
|
|
Strategic
|
and conduct
|
Other
|
operating
|
|
Strategic
|
and conduct
|
Other
|
operating
|
Operating expenses
|
costs
|
costs
|
expenses
|
expenses
|
|
costs
|
costs
|
expenses
|
expenses
|
Staff costs
|
147
|
-
|
839
|
986
|
|
155
|
-
|
827
|
982
|
Premises and equipment
|
63
|
-
|
258
|
321
|
|
22
|
-
|
229
|
251
|
Other administrative expenses
|
54
|
194
|
516
|
764
|
|
43
|
8
|
334
|
385
|
Depreciation and amortisation
|
62
|
-
|
208
|
270
|
|
3
|
-
|
191
|
194
|
Impairment of other intangible assets
|
-
|
-
|
-
|
-
|
|
-
|
-
|
2
|
2
|
Total
|
326
|
194
|
1,821
|
2,341
|
|
223
|
8
|
1,583
|
1,814
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|||
|
31 December 2019
|
|
|
||||||
|
|
Litigation
|
|
Statutory
|
|
|
|
|
|
|
Strategic
|
and conduct
|
Other
|
operating
|
|
|
|
|
|
Operating expenses
|
costs
|
costs
|
expenses
|
expenses
|
|
|
|
|
|
Staff costs
|
155
|
-
|
835
|
990
|
|
|
|
|
|
Premises and equipment
|
146
|
-
|
290
|
436
|
|
|
|
|
|
Other administrative expenses
|
98
|
85
|
560
|
743
|
|
|
|
|
|
Depreciation and amortisation
|
119
|
-
|
204
|
323
|
|
|
|
|
|
Impairment of other intangible assets
|
19
|
-
|
16
|
35
|
|
|
|
|
|
Total
|
537
|
85
|
1,905
|
2,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ulster
|
|
|
|
|
|
|
|
|
Retail
|
Bank
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
NatWest
|
|
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Group
|
Year ended 31 December 2020
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Operating expenses
|
(2,540)
|
(486)
|
|
(2,430)
|
(455)
|
(291)
|
(1,310)
|
(393)
|
(7,905)
|
Operating lease depreciation
|
-
|
-
|
|
145
|
-
|
-
|
-
|
-
|
145
|
Adjusted operating expenses
|
(2,540)
|
(486)
|
|
(2,285)
|
(455)
|
(291)
|
(1,310)
|
(393)
|
(7,760)
|
Total income
|
4,181
|
510
|
|
3,958
|
763
|
497
|
1,123
|
(236)
|
10,796
|
Operating lease depreciation
|
-
|
-
|
|
(145)
|
-
|
-
|
-
|
-
|
(145)
|
Adjusted total income
|
4,181
|
510
|
|
3,813
|
763
|
497
|
1,123
|
(236)
|
10,651
|
Cost:income ratio
|
60.8%
|
95.3%
|
|
59.9%
|
59.6%
|
58.6%
|
116.7%
|
nm
|
72.9%
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 December 2019
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(3,618)
|
(552)
|
|
(2,600)
|
(486)
|
(264)
|
(1,418)
|
(387)
|
(9,325)
|
Operating lease depreciation
|
-
|
-
|
|
138
|
-
|
-
|
-
|
-
|
138
|
Adjusted operating expenses
|
(3,618)
|
(552)
|
|
(2,462)
|
(486)
|
(264)
|
(1,418)
|
(387)
|
(9,187)
|
Total income
|
4,866
|
567
|
|
4,318
|
777
|
610
|
1,342
|
1,773
|
14,253
|
Operating lease depreciation
|
-
|
-
|
|
(138)
|
-
|
-
|
-
|
-
|
(138)
|
Adjusted total income
|
4,866
|
567
|
|
4,180
|
777
|
610
|
1,342
|
1,773
|
14,115
|
Cost:income ratio
|
74.4%
|
97.4%
|
|
58.9%
|
62.5%
|
43.3%
|
105.7%
|
nm
|
65.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ulster
|
|
|
|
|
|
|
|
|
Retail
|
Bank
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
NatWest
|
|
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Group
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Quarter ended 31 December 2020
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(818)
|
(114)
|
|
(656)
|
(91)
|
(112)
|
(301)
|
(249)
|
(2,341)
|
Operating lease depreciation
|
-
|
-
|
|
35
|
-
|
-
|
-
|
-
|
35
|
Adjusted operating expenses
|
(818)
|
(114)
|
|
(621)
|
(91)
|
(112)
|
(301)
|
(249)
|
(2,306)
|
Total income
|
974
|
131
|
|
951
|
184
|
126
|
73
|
96
|
2,535
|
Operating lease depreciation
|
-
|
-
|
|
(35)
|
-
|
-
|
-
|
-
|
(35)
|
Adjusted total income
|
974
|
131
|
|
916
|
184
|
126
|
73
|
96
|
2,500
|
Cost:income ratio
|
84.0%
|
87.0%
|
|
67.8%
|
49.5%
|
88.9%
|
nm
|
nm
|
92.2%
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 September 2020
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(647)
|
(127)
|
|
(553)
|
(112)
|
(53)
|
(302)
|
(20)
|
(1,814)
|
Operating lease depreciation
|
-
|
-
|
|
37
|
-
|
-
|
-
|
-
|
37
|
Adjusted operating expenses
|
(647)
|
(127)
|
|
(516)
|
(112)
|
(53)
|
(302)
|
(20)
|
(1,777)
|
Total income
|
1,022
|
130
|
|
1,004
|
187
|
112
|
234
|
(266)
|
2,423
|
Operating lease depreciation
|
-
|
-
|
|
(37)
|
-
|
-
|
-
|
-
|
(37)
|
Adjusted total income
|
1,022
|
130
|
|
967
|
187
|
112
|
234
|
(266)
|
2,386
|
Cost:income ratio
|
63.3%
|
97.7%
|
|
53.4%
|
59.9%
|
47.3%
|
129.1%
|
nm
|
74.5%
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 31 December 2019
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(788)
|
(140)
|
|
(700)
|
(135)
|
(83)
|
(392)
|
(289)
|
(2,527)
|
Operating lease depreciation
|
-
|
-
|
|
35
|
-
|
-
|
-
|
-
|
35
|
Adjusted operating expenses
|
(788)
|
(140)
|
|
(665)
|
(135)
|
(83)
|
(392)
|
(289)
|
(2,492)
|
Total income
|
1,195
|
139
|
|
1,076
|
195
|
150
|
250
|
1,228
|
4,233
|
Operating lease depreciation
|
-
|
-
|
|
(35)
|
-
|
-
|
-
|
-
|
(35)
|
Adjusted total income
|
1,195
|
139
|
|
1,041
|
195
|
150
|
250
|
1,228
|
4,198
|
Cost:income ratio
|
65.9%
|
100.7%
|
|
63.9%
|
69.2%
|
55.3%
|
156.8%
|
nm
|
59.4%
|
|
Year ended or as at
|
|
Quarter ended or as at
|
|||
|
31 December
|
31 December
|
|
31 December
|
30 September
|
31 December
|
|
2020
|
2019
|
|
2020
|
2020
|
2019
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
NatWest Group net interest income
|
7,749
|
8,047
|
|
1,971
|
1,926
|
2,037
|
Less: NWM net interest income
|
57
|
188
|
|
2
|
21
|
4
|
Net interest income excluding NWM
|
7,806
|
8,235
|
|
1,973
|
1,947
|
2,041
|
Annualised net interest income
|
|
|
|
7,820
|
7,662
|
8,082
|
Annualised net interest income excluding NWM
|
|
|
|
7,828
|
7,746
|
8,097
|
Average interest earning assets (IEA)
|
493,471
|
448,556
|
|
509,598
|
508,156
|
456,164
|
Less: NWM average IEA
|
37,929
|
35,444
|
|
36,515
|
39,213
|
36,594
|
Bank average IEA excluding NWM
|
455,542
|
413,112
|
|
473,083
|
468,943
|
419,570
|
|
|
|
|
|
|
|
Net interest margin
|
1.57%
|
1.79%
|
|
1.54%
|
1.51%
|
1.77%
|
Bank net interest margin (NatWest Group NIM excluding
NWM)
|
1.71%
|
1.99%
|
|
1.66%
|
1.65%
|
1.93%
|
|
As at
|
|
|
31 December
|
31 December
|
|
2020
|
2019
|
|
£m
|
£m
|
Loans to customers - amortised cost
|
360,544
|
326,947
|
Customer deposits
|
431,739
|
369,247
|
Loan:deposit ratio (%)
|
84%
|
89%
|
|
NATWEST
GROUP plc (Registrant)
|
|
|
|
By: /s/
Jan Cargill
|
|
|
|
Name:
Jan Cargill
|
|
Title:
Deputy Secretary
|