NatWest Markets Plc Annual Results 2025
Source: RNS
NatWest Markets Group (NWM Group)
Results for the year ended 31 December 2025
Financial review
NWM Group reported a profit for the year ended 31 December 2025 of £275 million compared with a profit of £63 million for the year ended 31 December 2024. Higher income largely reflected a stronger performance in the Currencies and Capital Markets business lines. Operating expenses increased in 2025, as a decrease in litigation and conduct costs was more than offset by a rise in other operating expenses.
Highlights
Financial performance
· Income of £1,471 million in 2025 was up by £234 million compared with £1,237 million in 2024. The increase was largely driven by stronger performances in Currencies and Capital Markets, higher income from the profit share arrangement with fellow NatWest Group subsidiaries, one-off gains recognised in 2025 and lower foreign exchange (FX) reserves recycling losses. These increases were partially offset by lower revenues from Fixed Income.
· Operating expenses of £1,308 million increased by £100 million compared with £1,208 million in 2024. Litigation and conduct costs of £63 million reflected ongoing progress in closing legacy matters, including any associated conduct remediation activity, and were down by £39 million compared with £102 million in 2024. Other operating expenses of £1,245 million were £139 million higher than £1,106 million in 2024, largely driven by increases in technology investment costs and staff costs, lower VAT recoveries and a credit recognised in 2024 in relation to property charges.
· Total assets and total liabilities both decreased by £14.8 billion to £168.4 billion and £161.4 billion respectively at 31 December 2025, compared with the prior year. Derivative assets were down by £17.2 billion, largely reflecting FX volatility across major currencies including the weakening of USD in 2025, following contrasting trends in Q4 2024, and variations in interest rates across different currencies and tenors. Funded assets were up by £2.4 billion, mainly driven by increases in loans to customers and other financial assets.
Capital and leverage
· Total NWM Plc RWAs were £21.5 billion at 31 December 2025, compared with £20.8 billion at 31 December 2024. The increase in 2025 was mainly driven by higher credit risk, primarily reflecting growth in lending, and an increase in operational risk RWAs following the annual recalculation, including an acceleration from Q1 2026 to align with market practice. These increases were partially offset by a reduction in market risk which reflected active risk management.
· NWM Plc's Common Equity Tier 1 (CET1) ratio was 18.4% at 31 December 2025, compared with 18.2% at 31 December 2024. The increase in the year was largely driven by higher CET1 capital, partially offset by the increase in RWAs.
· Total Minimum requirement for own funds and eligible liabilities (MREL) for NWM Plc at 31 December 2025 was £9.8 billion, compared with £10.0 billion at 31 December 2024. The decrease in total MREL in 2025 was largely due to a reduction in eligible capital, driven by the redemption of Additional Tier 1 (AT1) capital notes with NatWest Group plc of $1.15 billion, partially offset by the issuance of two new AT1 instruments with NatWest Group plc amounting to £600 million. In addition, senior unsecured debt reduced by £0.1 billion during 2025, largely due to the maturity of an internal MREL instrument with NatWest Group plc of $1.15 billion, and the impact of FX movements, partially offset by two new internal MREL instruments with NatWest Group plc of €580 million and £490 million respectively. The MREL ratio decreased to 45.6% of RWAs at 31 December 2025, compared with 48.2% at 31 December 2024, mainly reflecting the increase in RWAs.
· NWM Plc's leverage ratio was 5.0% at 31 December 2025 compared with 5.5% at 31 December 2024. The decrease in 2025 reflected lower Tier 1 capital and higher leverage exposure. The increase in leverage exposure was driven by increases in other financial assets and net derivatives, partially offset by a decrease in trading assets.
Liquidity and funding
· NWM Plc's average liquidity coverage ratio (LCR)(1) increased to 198% (31 December 2024 - 192%), largely reflecting higher average levels in the liquidity portfolio during the year. The liquidity portfolio at 31 December 2025 was £20.2 billion, down by £0.8 billion compared with £21.0 billion at 31 December 2024. Stressed outflow coverage(2) was 165% at 31 December 2025, compared with 179% at 31 December 2024.
· NWM Plc issued a total of £7.9 billion across a number of public benchmark transactions during 2025. This includes prefinancing of 2026 funding requirements, taking advantage of favourable market conditions. These transactions comprised €3.6 billion and CHF0.2 billion of notes under our Euro Medium Term Note programme, $4.8 billion of notes under our US Medium Term Note programme and AUD2.0 billion of notes under our AUD debt issuance programme. NWM Plc also raised funding in other formats throughout 2025 including, but not limited to, structured note issuance.
· On 13 January 2026, NWM Plc issued a total of €1.0 billion of benchmark notes under the EMTN programme.
(1) Reported on an average basis in line with supervisory guidelines. The LCR is calculated as the average of the preceding 12 months.
(2) NWM Plc's Stressed Outflow Coverage (SOC) is an internal measure calculated by reference to liquid assets as a percentage of net stressed contractual and behavioural outflows over three months. The most severe outcome is selected from a range of scenarios comprised of market-wide, idiosyncratic and a combination of both. This assessment is performed in accordance with PRA guidance. The average SOC is calculated as the average of the preceding 12 months.
Capital guidance (1,2)
|
Metric (3) |
Estimate |
|
CET1 ratio |
~14% |
|
MREL ratio (4) |
>30% |
|
Leverage ratio |
>4% |
(1) This supersedes all prior guidance.
(2) This guidance, targets, expectations and trends discussed in this section represent management's current medium-term expectations and are subject to change, including as a result of the factors described in the Risk Factors section on pages 151 to 168 NatWest Markets Plc 2025 Annual Report and Accounts. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement.
(3) All metrics presented relate to NWM Plc.
(4) Includes total regulatory capital, non-eligible capital and downstreamed internal MREL.
Business performance summary
The table below presents an analysis of key lines of NWM Group's income statement. Commentary refers to the table below as well as the consolidated income statement shown on page 5.
|
|
Year ended |
|
Quarter ended |
|||
|
|
31 December |
31 December |
|
31 December |
30 September |
31 December |
|
|
2025 |
2024 |
|
2025 |
2025 |
2024 |
|
Income statement |
£m |
£m |
|
£m |
£m |
£m |
|
Net interest income |
488 |
432 |
|
135 |
109 |
85 |
|
Non-interest income |
983 |
805 |
|
248 |
217 |
218 |
|
Total income |
1,471 |
1,237 |
|
383 |
326 |
303 |
|
Litigation and conduct costs |
(63) |
(102) |
|
(24) |
26 |
(41) |
|
Other operating expenses |
(1,245) |
(1,106) |
|
(348) |
(295) |
(321) |
|
Operating expenses |
(1,308) |
(1,208) |
|
(372) |
(269) |
(362) |
|
Operating profit/(loss) before impairment |
|
|
|
|
|
|
|
losses/releases |
163 |
29 |
|
11 |
57 |
(59) |
|
Impairment (losses)/releases |
(3) |
8 |
|
(2) |
(4) |
- |
|
Operating profit/(loss) before tax |
160 |
37 |
|
9 |
53 |
(59) |
|
Tax credit |
115 |
26 |
|
51 |
73 |
19 |
|
Profit/(loss) for the period |
275 |
63 |
|
60 |
126 |
(40) |
|
|
|
|
|
|
||
|
Income (1) |
|
|
|
|
||
|
Fixed Income |
135 |
190 |
|
7 |
23 |
20 |
|
Currencies |
632 |
525 |
|
147 |
158 |
146 |
|
Capital Markets |
749 |
666 |
|
190 |
189 |
164 |
|
Capital Management Unit and other (2) |
17 |
(49) |
|
45 |
(30) |
(11) |
|
Income including shared revenue before OCA |
1,533 |
1,332 |
|
389 |
340 |
319 |
|
Transfer pricing arrangements with fellow |
|
|
|
|
|
|
|
NatWest Group subsidiaries (3) |
(63) |
(86) |
|
(4) |
(14) |
(12) |
|
Income excluding OCA |
1,470 |
1,246 |
|
385 |
326 |
307 |
|
Own credit adjustments (OCA) |
1 |
(9) |
|
(2) |
- |
(4) |
|
Total income |
1,471 |
1,237 |
|
383 |
326 |
303 |
(1) Product performance includes gross income earned on a NatWest Group-wide basis, including amounts contributed to other NatWest Group subsidiaries. Income including shared revenue before OCA includes revenue share from other NatWest Group subsidiaries but before revenue share is paid to or contributed to those subsidiaries.
(2) Capital Management Unit was set up in Q3 2020 to manage capital usage and optimisation across all parts of NatWest Markets, with the income materially relating to legacy positions.
(3) Transfer pricing arrangements with fellow NatWest Group subsidiaries includes shared revenue paid to or contributed to those subsidiaries and a profit share arrangement with fellow NatWest Group subsidiaries. The profit share arrangement rewards NWM Group on an arm's length basis for its contribution to the performance of the NatWest Group Commercial & Institutional business segment. The profit share is not allocated to individual NatWest Markets product areas.
Year ended 31 December 2025 performance
· Net interest income largely represents interest income from lending activity and capital hedges, offset by interest expense from the funding costs of the business. The increase of £56 million compared with 2024 largely reflects growth in lending activity within Capital Markets.
· Non-interest income increased by £178 million in 2025. This rise was largely driven by a stronger performance in Currencies, which reflected the successful navigation of volatile market conditions, and higher income in Capital Management Unit and other, driven by one-off gains recognised in 2025 including a dividend received on the restructuring of a strategic investment, and lower FX reserves recycling losses. In addition, the amount recognised under the profit share arrangement with fellow NatWest Group subsidiaries of £189 million was £43 million higher than the amount recognised in 2024. These increases were partially offset by lower revenues in Fixed Income, which reflected challenging market conditions and reduced client activity.
· Operating expenses were up by £100 million compared with 2024. Litigation and conduct costs reflected ongoing progress in closing legacy matters, including associated conduct remediation activity, and were down by £39 million compared with 2024. Other operating expenses increased by £139 million compared with 2024, largely due to increases in technology investment costs and staff costs, lower VAT recoveries and a credit recognised in 2024 in relation to property charges, partially offset by a reduction in severance costs.
· The tax credit of £115 million on the operating profit before tax of £160 million differs from the expected UK corporation tax rate of 25%, primarily due to a revision in our estimate of deductible costs in current and prior periods and a write-back of the deferred tax held on NWM N.V. losses.
Q4 2025 performance
· Net interest income increased by £26 million compared with Q3 2025 and by £50 million compared with Q4 2024, largely reflecting higher interest expense in the comparative periods from funding of the trading business.
· Non-interest income increased by £31 million compared with Q3 2025 and by £30 million compared with Q4 2024. These increases were largely due to a dividend received on the restructuring of a strategic investment in Q4 2025, and FX reserves recycling losses of £30 million recognised in each of the comparative periods. In addition, NWM Group recognised £63 million under the profit share arrangement with fellow NatWest Group subsidiaries in Q4 2025, which was £16 million and £17 million higher than the amounts recognised in Q3 2025 and Q4 2024 respectively. These increases were partially offset by lower trading income in the current quarter.
· Operating expenses increased by £103 million compared with Q3 2025 and by £10 million compared with Q4 2024. Litigation and conduct costs were up by £50 million compared with Q3 2025 and down by £17 million compared with Q4 2024, reflecting ongoing progress on closing legacy matters, including any associated conduct remediation activity. Other operating expenses increased by £53 million compared with Q3 2025, largely due to one-off costs recognised in the current quarter including the annual bank levy, in addition to the non-repeat of VAT recoveries recognised in Q3 2025, partially offset by lower staff costs. Other operating expenses increased by £27 million compared with Q4 2024, largely due to higher technology investment costs and staff costs.
Business performance summary
Balance sheet profile as at 31 December 2025
NWM Group's balance sheet profile is summarised below. Commentary refers to the tables below as well as the consolidated balance sheet on page 6.
|
Assets |
|
Liabilities |
|||||
|
|
2025 |
2024 |
|
2025 |
2024 |
|
|
|
|
£bn |
£bn |
|
£bn |
£bn |
|
|
|
Cash and balances at central banks |
16.0 |
16.2 |
|
|
|
||
|
Securities |
12.6 |
13.9 |
|
7.5 |
10.5 |
|
Short positions |
|
Reverse repos (1) |
27.7 |
27.1 |
|
28.6 |
30.6 |
|
Repos (2) |
|
Derivative cash collateral posted (3) |
5.6 |
7.3 |
|
11.8 |
12.3 |
|
Derivative cash collateral received (4) |
|
Other trading assets |
0.3 |
0.6 |
|
0.9 |
1.1 |
|
Other trading liabilities |
|
Total trading assets |
46.2 |
48.9 |
|
48.8 |
54.5 |
|
Total trading liabilities |
|
Loans - amortised cost |
24.7 |
19.1 |
|
15.7 |
9.4 |
|
Deposits - amortised cost |
|
Settlement balances |
0.6 |
2.0 |
|
0.9 |
1.7 |
|
Settlement balances |
|
Amounts due from holding company |
|
|
|
|
Amounts due to holding company |
||
|
and fellow subsidiaries |
0.3 |
0.3 |
|
6.1 |
6.8 |
|
and fellow subsidiaries |
|
Other financial assets |
19.1 |
17.9 |
|
35.5 |
31.3 |
|
Other financial liabilities |
|
Other assets |
0.6 |
0.7 |
|
0.4 |
0.5 |
|
Other liabilities |
|
Funded assets |
107.5 |
105.1 |
|
107.4 |
104.2 |
|
Liabilities excluding derivatives |
|
Derivative assets |
60.9 |
78.1 |
|
54.0 |
72.0 |
|
Derivative liabilities |
|
Total assets |
168.4 |
183.2 |
|
161.4 |
176.2 |
|
Total liabilities |
|
|
|
|
|
|
of which: |
||
|
|
|
|
36.2 |
32.5 |
|
Wholesale funding (5) |
|
|
|
|
|
14.4 |
16.8 |
|
Short-term wholesale funding (5) |
|
|
Net derivative assets |
2.3 |
2.4 |
|
2.5 |
3.5 |
|
Net derivative liabilities |
(1) Comprises bank reverse repos of £4.6 billion (2024 - £5.9 billion) and customer reverse repos of £23.1 billion (2024 - £21.2 billion).
(2) Comprises bank repos of £8.2 billion (2024- £7.2 billion) and customer repos of £20.4 billion (2024 - £23.4 billion).
(3) Comprises derivative cash collateral posted relating to banks of £2.6 billion (2024 - £3.6 billion) and customers of £3.0 billion (2024 - £3.7 billion).
(4) Comprises derivative cash collateral received relating to banks of £4.1 billion (2024 - £5.3 billion) and customers of £7.7 billion (2024 - £7.0 billion).
(5) Predominantly comprises bank deposits (excluding repos), debt securities in issue and third-party subordinated liabilities.
· Total assets and total liabilities both decreased by £14.8 billion at 31 December 2025, compared with the prior year, mainly driven by a decrease in derivative fair values which reflected FX rate volatility across major currencies and variations in interest rates across different currencies and tenors. Funded assets, which exclude derivatives, increased by £2.4 billion, largely driven by higher loans at amortised cost and other financial assets.
· Trading assets which primarily relate to client-led activity as well as derivative cash collateral posted, were down by £2.7 billion, driven by decreases in derivative cash collateral posted and securities, partially offset by an increase in reverse repos.
· Trading liabilities decreased by £5.7 billion, driven by lower short positions, repos and derivative cash collateral received.
· Loans - amortised cost increased by £5.6 billion, driven by higher loans to customers reflecting growth in Capital Markets.
· Other financial assets were up by £1.2 billion, largely driven by an increase in bonds held in the liquid asset buffer.
· Deposits - amortised cost increased by £6.3 billion, driven by higher bank deposits reflecting increased repo funding and an increase in customer deposits in NWM N.V.
· Other financial liabilities increased by £4.2 billion, largely driven by new issuance partially offset by maturities. The balance as at 31 December 2025 includes £27.2 billion of medium-term notes issued.
· Derivative assets and derivative liabilities were down by £17.2 billion and £18.0 billion respectively. The decreases in fair values largely reflected FX volatility across major currencies including the weakening of USD in the year, following contrasting trends in Q4 2024, and variations in interest rates across different currencies and tenors.
Non-IFRS measures
This document contains a number of non-IFRS measures. For details of the basis of preparation and reconciliations, where applicable, refer to the non-IFRS measures section on page 13.
Capital, liquidity and funding risk
Introduction
NWM Group takes a comprehensive approach to the management of capital, liquidity and funding, underpinned by frameworks, risk appetite and policies, to manage and mitigate capital, liquidity and funding risks. The framework ensures the tools and capability are in place to facilitate the management and mitigation of risk ensuring that NWM Group operates within its regulatory requirements and risk appetite.
Capital, RWAs and leverage
Capital resources, RWAs and leverage for NWM Plc are set out below and have been calculated in line with the PRA rulebook, subject to the requirements set out in the UK CRR. Regulatory capital is monitored and reported at legal entity level for large subsidiaries of NatWest Group.
|
|
31 December |
30 September |
31 December |
|
|
2025 |
2025 |
2024 |
|
Capital adequacy ratios (1,2) |
% |
% |
% |
|
CET1 |
18.4 |
17.5 |
18.2 |
|
Tier 1 |
23.0 |
22.0 |
24.3 |
|
Total |
26.0 |
25.0 |
27.8 |
|
Total MREL |
45.6 |
46.1 |
48.2 |
|
|
|
|
|
|
Capital (1,2) |
£m |
£m |
£m |
|
CET1 |
3,952 |
3,801 |
3,779 |
|
Tier 1 |
4,926 |
4,776 |
5,067 |
|
Total |
5,576 |
5,425 |
5,779 |
|
Total MREL (3) |
9,787 |
10,001 |
10,038 |
|
|
|
|
|
|
Risk-weighted assets |
|
|
|
|
Credit risk |
10,447 |
9,896 |
8,908 |
|
Counterparty credit risk |
5,868 |
5,907 |
5,797 |
|
Market risk |
3,431 |
4,528 |
5,105 |
|
Operational risk |
1,711 |
1,347 |
1,002 |
|
Total RWAs |
21,457 |
21,678 |
20,812 |
(1) NWM Plc's total capital ratio requirement is 11.4%, comprising the minimum capital requirement of 8%, supplemented with the capital conservation buffer of 2.5% and the institution specific countercyclical buffer (CCyB) of 0.9%. The minimum CET1 ratio is 7.9%, including the minimum capital requirement of 4.5%. The CCyB is based on the weighted average of NWM Plc's geographical exposures.
(2) In addition, NWM Plc is subject to Pillar 2A requirements for CET1, AT1 and T2. Refer to the NWM Plc Pillar 3 report for further details on these additional capital requirements.
(3) Includes senior debt instruments issued to NatWest Group plc with a nominal value of £4.2 billion (30 September 2025 - £4.6 billion, 31 December 2024 - £4.3 billion).
(4) The IFRS 9 transitional capital rules in respect to ECL provisions ceased to apply on 1 January 2025.
Leverage
The leverage ratio has been calculated in accordance with the Leverage Ratio (CRR) part of the PRA rulebook.
|
|
31 December |
30 September |
31 December |
|
|
2025 |
2025 |
2024 |
|
Tier 1 capital (£m) |
4,926 |
4,776 |
5,067 |
|
Leverage exposure (£m) (1) |
97,880 |
106,006 |
92,859 |
|
Leverage ratio (%) |
5.0 |
4.5 |
5.5 |
(1) Leverage exposure is broadly aligned to the accounting value of on and off-balance sheet exposures albeit subject to specific adjustments for derivatives, securities financing positions and off-balance sheet exposures.
Liquidity and funding
|
|
31 December |
30 September |
31 December |
|
|
2025 |
2025 |
2024 |
|
Average LCR (%) |
198 |
196 |
192 |
|
Liquidity portfolio (£bn) |
20.2 |
19.0 |
21.0 |
|
Total wholesale funding (£bn) (1) |
36.2 |
36.4 |
32.5 |
|
Total funding including repo (£bn) |
98.4 |
106.3 |
91.4 |
(1) Predominantly comprises bank deposits (excluding repos), debt securities in issue and third-party subordinated liabilities.
Consolidated income statement
for the period ended 31 December 2025
|
|
Year ended |
|
Quarter ended |
|||
|
|
31 December |
31 December |
|
31 December |
30 September |
31 December |
|
|
2025 |
2024 |
|
2025 |
2025 |
2024 |
|
|
£m |
£m |
|
£m |
£m |
£m |
|
Interest receivable |
2,585 |
2,720 |
|
648 |
649 |
665 |
|
Interest payable |
(2,097) |
(2,288) |
|
(513) |
(540) |
(580) |
|
Net interest income |
488 |
432 |
|
135 |
109 |
85 |
|
Fees and commissions receivable |
417 |
476 |
|
94 |
94 |
102 |
|
Fees and commissions payable |
(188) |
(213) |
|
(45) |
(41) |
(47) |
|
Income from trading activities |
658 |
585 |
|
86 |
181 |
157 |
|
Other operating income |
96 |
(43) |
|
113 |
(17) |
6 |
|
Non-interest income |
983 |
805 |
|
248 |
217 |
218 |
|
Total income |
1,471 |
1,237 |
|
383 |
326 |
303 |
|
Staff costs |
(506) |
(452) |
|
(113) |
(128) |
(99) |
|
Premises and equipment |
(79) |
(75) |
|
(21) |
(22) |
(20) |
|
Other administrative expenses |
(711) |
(671) |
|
(235) |
(116) |
(240) |
|
Depreciation and amortisation |
(12) |
(10) |
|
(3) |
(3) |
(3) |
|
Operating expenses |
(1,308) |
(1,208) |
|
(372) |
(269) |
(362) |
|
Operating profit/(loss) before impairment |
|
|
|
|
|
|
|
losses/releases |
163 |
29 |
|
11 |
57 |
(59) |
|
Impairment (losses)/releases |
(3) |
8 |
|
(2) |
(4) |
- |
|
Operating profit/(loss) before tax |
160 |
37 |
|
9 |
53 |
(59) |
|
Tax credit |
115 |
26 |
|
51 |
73 |
19 |
|
Profit/(loss) for the period |
275 |
63 |
|
60 |
126 |
(40) |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
Ordinary shareholders |
167 |
(20) |
|
37 |
104 |
(63) |
|
Paid-in equity holders |
108 |
73 |
|
23 |
22 |
22 |
|
Non-controlling interests |
- |
10 |
|
- |
- |
1 |
|
|
275 |
63 |
|
60 |
126 |
(40) |
Consolidated statement of comprehensive income
for the period ended 31 December 2025
|
|
Year ended |
|
Quarter ended |
|||
|
|
31 December |
31 December |
|
31 December |
30 September |
31 December |
|
|
2025 |
2024 |
|
2025 |
2025 |
2024 |
|
|
£m |
£m |
|
£m |
£m |
£m |
|
Profit/(loss) for the period |
275 |
63 |
|
60 |
126 |
(40) |
|
Items that do not qualify for reclassification |
|
|
|
|
|
|
|
Remeasurement of retirement benefit schemes |
5 |
(13) |
|
8 |
- |
(9) |
|
Changes in fair value of financial liabilities designated |
|
|
|
|
|
|
|
at fair value through profit or loss (FVTPL) |
(17) |
(33) |
|
(6) |
(10) |
(8) |
|
Fair value through other comprehensive income (FVOCI) financial assets |
3 |
14 |
|
(12) |
2 |
1 |
|
Tax |
(8) |
23 |
|
(8) |
(1) |
7 |
|
|
(17) |
(9) |
|
(18) |
(9) |
(9) |
|
Items that do qualify for reclassification |
|
|
|
|
|
|
|
FVOCI financial assets |
16 |
5 |
|
11 |
5 |
1 |
|
Cash flow hedges (1) |
127 |
(29) |
|
35 |
(9) |
(54) |
|
Currency translation |
23 |
(14) |
|
(4) |
90 |
113 |
|
Tax |
(46) |
16 |
|
(15) |
- |
16 |
|
|
120 |
(22) |
|
27 |
86 |
76 |
|
Other comprehensive income/(loss) after tax |
103 |
(31) |
|
9 |
77 |
67 |
|
Total comprehensive income for the period |
378 |
32 |
|
69 |
203 |
27 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
Ordinary shareholders |
270 |
(50) |
|
46 |
181 |
5 |
|
Paid-in equity holders |
108 |
73 |
|
23 |
22 |
22 |
|
Non-controlling interests |
- |
9 |
|
- |
- |
- |
|
|
378 |
32 |
|
69 |
203 |
27 |
(1) Refer to footnotes 1 and 2 of the statement of changes in equity.
Consolidated balance sheet as at 31 December 2025
|
|
31 December |
30 September |
31 December |
|
|
2025 |
2025 |
2024 |
|
|
£m |
£m |
£m |
|
Assets |
|
|
|
|
Cash and balances at central banks |
16,023 |
17,066 |
16,229 |
|
Trading assets |
46,174 |
56,765 |
48,883 |
|
Derivatives |
60,866 |
61,304 |
78,105 |
|
Settlement balances |
643 |
12,141 |
2,043 |
|
Loans to banks - amortised cost |
1,221 |
1,826 |
1,171 |
|
Loans to customers - amortised cost |
23,454 |
21,732 |
17,921 |
|
Amounts due from holding companies and fellow subsidiaries |
287 |
393 |
343 |
|
Other financial assets |
19,084 |
17,475 |
17,850 |
|
Other assets |
619 |
567 |
621 |
|
Total assets |
168,371 |
189,269 |
183,166 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Bank deposits |
8,501 |
9,562 |
4,565 |
|
Customer deposits |
7,161 |
8,619 |
4,840 |
|
Amounts due to holding companies and fellow subsidiaries |
6,068 |
7,146 |
6,771 |
|
Settlement balances |
932 |
9,074 |
1,729 |
|
Trading liabilities |
48,847 |
58,317 |
54,512 |
|
Derivatives |
53,977 |
54,160 |
72,036 |
|
Other financial liabilities |
35,453 |
35,070 |
31,263 |
|
Other liabilities |
469 |
415 |
521 |
|
Total liabilities |
161,408 |
182,363 |
176,237 |
|
|
|
|
|
|
Equity |
|
|
|
|
Owners' equity |
6,963 |
6,906 |
6,929 |
|
Total equity |
6,963 |
6,906 |
6,929 |
|
Total liabilities and equity |
168,371 |
189,269 |
183,166 |
Consolidated statement of changes in equity
for the period ended 31 December 2025
|
|
Year ended |
|
Quarter ended |
||||||
|
|
31 December |
31 December |
|
31 December |
30 September |
31 December |
|||
|
|
2025 |
2024 |
|
2025 |
2025 |
2024 |
|||
|
|
£m |
£m |
|
£m |
£m |
£m |
|||
|
Called up share capital - at beginning and end of period |
400 |
400 |
|
400 |
400 |
400 |
|||
|
|
|
|
|
|
|||||
|
Share premium account - at beginning and end of period |
1,946 |
1,946 |
|
1,946 |
1,946 |
1,946 |
|||
|
|
|
|
|
|
|||||
|
Paid-in equity - at beginning of period |
1,496 |
904 |
|
1,192 |
2,096 |
904 |
|||
|
Redeemed |
(904) |
- |
|
- |
(904) |
- |
|||
|
Issued |
600 |
592 |
|
- |
- |
592 |
|||
|
At end of period |
1,192 |
1,496 |
|
1,192 |
1,192 |
1,496 |
|||
|
|
|
|
|
|
|||||
|
Merger reserve - at beginning of period |
(11) |
(14) |
|
(9) |
(10) |
(12) |
|||
|
Amortisation |
3 |
3 |
|
1 |
1 |
1 |
|||
|
At end of period |
(8) |
(11) |
|
(8) |
(9) |
(11) |
|||
|
|
|
|
|
|
|||||
|
FVOCI reserve - at beginning of period |
25 |
13 |
|
41 |
36 |
26 |
|||
|
Unrealised gains/(losses) |
17 |
20 |
|
(2) |
4 |
2 |
|||
|
Realised losses/(gains) |
1 |
(5) |
|
1 |
3 |
(1) |
|||
|
Tax |
(6) |
(3) |
|
(3) |
(2) |
(2) |
|||
|
At end of period |
37 |
25 |
|
37 |
41 |
25 |
|||
|
|
|
|
|
|
|||||
|
Cash flow hedging reserve - at beginning of period |
(177) |
(164) |
|
(114) |
(106) |
(138) |
|||
|
Amount recognised in equity (1) |
(102) |
(299) |
|
(18) |
(65) |
(118) |
|||
|
Reclassification of OCI to P&L (2) |
229 |
270 |
|
53 |
56 |
64 |
|||
|
Tax |
(41) |
16 |
|
(12) |
1 |
15 |
|||
|
At end of period |
(91) |
(177) |
|
(91) |
(114) |
(177) |
|||
|
|
|
|
|
|
|||||
|
Foreign exchange reserve - at beginning of period |
87 |
100 |
|
114 |
24 |
(27) |
|||
|
Retranslation of net assets |
(27) |
(98) |
|
(3) |
70 |
91 |
|||
|
Foreign currency gains/(losses) on hedges of net assets |
19 |
15 |
|
(1) |
(11) |
(7) |
|||
|
Recycled to profit or loss on disposal of businesses |
31 |
70 |
|
- |
31 |
30 |
|||
|
At end of period |
110 |
87 |
|
110 |
114 |
87 |
|||
|
|
|
|
|
|
|||||
|
Retained earnings - at beginning of period |
3,163 |
3,195 |
|
3,336 |
3,181 |
3,216 |
|||
|
Profit/(loss) attributable to ordinary shareholders and other equity owners |
275 |
53 |
|
60 |
126 |
(41) |
|||
|
Paid-in equity dividends paid |
(108) |
(73) |
|
(23) |
(22) |
(22) |
|||
|
Redemption/reclassification of paid-in equity |
59 |
- |
|
- |
59 |
- |
|||
|
Remeasurement of retirement benefit schemes |
|
|
|
|
|||||
|
- gross |
5 |
(13) |
|
8 |
- |
(9) |
|||
|
- tax |
(1) |
16 |
|
(2) |
- |
1 |
|||
|
Realised gains/(losses) on FVOCI equity shares |
|
|
|
|
|||||
|
- gross |
1 |
4 |
|
|
- |
1 |
|||
|
- tax |
(6) |
8 |
|
(6) |
- |
8 |
|||
|
Changes in fair value of financial liabilities designated at FVTPL due to changes in credit risk |
|
|
|
|
|||||
|
- gross |
(17) |
(33) |
|
(6) |
(10) |
(8) |
|||
|
- tax |
- |
2 |
|
- |
- |
1 |
|||
|
Share-based payments |
|
|
|
|
|||||
|
- gross |
- |
(3) |
|
3 |
2 |
7 |
|||
|
- tax |
7 |
10 |
|
7 |
- |
10 |
|||
|
Sharing in success |
2 |
- |
|
1 |
1 |
- |
|||
|
Amortisation of merger reserve |
(3) |
(3) |
|
(1) |
(1) |
(1) |
|||
|
At end of period |
3,377 |
3,163 |
|
3,377 |
3,336 |
3,163 |
|||
|
|
|
|
|||||||
For the notes to this table refer to the following page.
Consolidated statement of changes in equity
for the period ended 31 December 2025 continued
|
|
Year ended |
|
Quarter ended |
|||
|
|
31 December |
31 December |
|
31 December |
30 September |
31 December |
|
|
2025 |
2024 |
|
2025 |
2025 |
2024 |
|
|
£m |
£m |
|
£m |
£m |
£m |
|
Owners' equity at end of period |
6,963 |
6,929 |
|
6,963 |
6,906 |
6,929 |
|
|
|
|
|
|
||
|
Non-controlling interests - at beginning of period |
- |
(2) |
|
- |
- |
7 |
|
Currency translation adjustments and other movements |
- |
(1) |
|
- |
- |
(1) |
|
Profit attributable to non-controlling interests |
- |
10 |
|
- |
- |
1 |
|
Dividends paid |
- |
(7) |
|
- |
- |
(7) |
|
At end of period |
- |
- |
|
- |
- |
- |
|
|
|
|
|
|
||
|
Total equity at end of period |
6,963 |
6,929 |
|
6,963 |
6,906 |
6,929 |
|
|
|
|
|
|
||
|
Attributable to: |
|
|
|
|
||
|
Ordinary shareholders |
5,771 |
5,433 |
|
5,771 |
5,714 |
5,433 |
|
Paid-in equity holders |
1,192 |
1,496 |
|
1,192 |
1,192 |
1,496 |
|
At end of period |
6,963 |
6,929 |
|
6,963 |
6,906 |
6,929 |
(1) The change in the cash flow hedging reserve is driven by realised accrued interest transferred into the income statement.
(2) The amount transferred from equity to the income statement is mostly recorded within net interest income mainly within loans to banks and customers - amortised cost and balances at central banks.
Consolidated cash flow statement
for the year ended 31 December 2025
|
|
31 December |
31 December |
|
|
2025 |
2024 |
|
|
£m |
£m |
|
Cash flows from operating activities |
|
|
|
Operating profit before tax |
160 |
37 |
|
Adjustments for non-cash items |
(1,001) |
143 |
|
Net cash flows from trading activities |
(841) |
180 |
|
Changes in operating assets and liabilities |
(1,731) |
(226) |
|
Net cash flows from operating activities before tax |
(2,572) |
(46) |
|
Income taxes received/(paid) |
96 |
(89) |
|
Net cash flows from operating activities |
(2,476) |
(135) |
|
Net cash flows from investing activities |
(165) |
(1,333) |
|
Net cash flows from financing activities |
(557) |
1,593 |
|
Effects of exchange rate on cash and cash equivalents |
319 |
(532) |
|
Net decrease in cash and cash equivalents |
(2,879) |
(407) |
|
Cash and cash equivalents at 1 January |
24,536 |
24,943 |
|
Cash and cash equivalents at 31 December |
21,657 |
24,536 |
Notes
1. Presentation of condensed consolidated financial statements
The condensed consolidated financial statements should be read in conjunction with NatWest Markets Plc's 2025 Annual Report and Accounts. The critical and material accounting policies are the same as those applied in the consolidated financial statements.
The directors have prepared the condensed consolidated financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date they are approved.
2. Trading assets and liabilities
Trading assets and liabilities comprise assets and liabilities held at fair value in trading portfolios.
|
|
31 December |
31 December |
|
|
2025 |
2024 |
|
Assets |
£m |
£m |
|
Loans |
|
|
|
Reverse repos |
27,656 |
27,127 |
|
Collateral given |
5,635 |
7,333 |
|
Other loans |
294 |
545 |
|
Total loans |
33,585 |
35,005 |
|
Securities |
|
|
|
Central and local government |
|
|
|
- UK |
1,808 |
2,077 |
|
- US |
4,153 |
3,734 |
|
- Other |
4,135 |
3,506 |
|
Financial institutions and Corporate |
2,493 |
4,561 |
|
Total securities |
12,589 |
13,878 |
|
Total |
46,174 |
48,883 |
|
|
|
|
|
Liabilities |
|
|
|
Deposits |
|
|
|
Repos |
28,578 |
30,562 |
|
Collateral received |
11,792 |
12,307 |
|
Other deposits |
739 |
895 |
|
Total deposits |
41,109 |
43,764 |
|
Debt securities in issue |
234 |
257 |
|
Short positions |
|
|
|
Central and local government |
|
|
|
- UK |
1,504 |
2,680 |
|
- US |
1,161 |
1,677 |
|
Other |
4,137 |
4,755 |
|
Financial institutions and corporate |
702 |
1,379 |
|
Total short positions |
7,504 |
10,491 |
|
Total |
48,847 |
54,512 |
Notes
3. Other financial liabilities
|
|
31 December |
31 December |
|
|
2025 |
2024 |
|
|
£m |
£m |
|
Customer deposits - designated as at fair value through profit or loss (FVTPL) |
2,312 |
1,537 |
|
Debt securities in issue |
|
|
|
- Medium term notes |
27,232 |
21,852 |
|
- Commercial paper and certificates of deposit |
5,638 |
7,605 |
|
Subordinated liabilities |
|
|
|
- Designated as at FVTPL |
237 |
234 |
|
- Amortised cost |
34 |
35 |
|
Total |
35,453 |
31,263 |
4. Amounts due to holding company and fellow subsidiaries
|
|
31 December |
31 December |
|
|
2025 |
2024 |
|
|
£m |
£m |
|
Bank deposits - amortised cost |
267 |
548 |
|
Customer deposits - amortised cost |
42 |
43 |
|
Trading liabilities |
280 |
613 |
|
Other financial liabilities - subordinated liabilities |
1,066 |
1,115 |
|
MREL instruments issued to NatWest Group plc |
4,323 |
4,358 |
|
Other liabilities |
90 |
94 |
|
Total |
6,068 |
6,771 |
5. Related parties
UK Government
In May 2025, the UK Government through His Majesty's Treasury (HMT) sold its remaining shareholding in NatWest Group plc. Under UK listing rules the UK Government and UK Government-controlled bodies remained related parties until 12 July 2025, 12 months after the UK Government shareholding in NatWest Group plc fell below 20%.
NWM Group enters into transactions with many of these bodies. NWM Group's other transactions with the UK Government include the payment of taxes, principally UK corporation tax and value added tax; national insurance contributions; local authority rates; and regulatory fees and levies (including the bank levy and FSCS levies).
Bank of England facilities
NWM Group may participate in a number of schemes operated by the Bank of England in the normal course of business.
In March 2024 Bank of England Levy replaced the Cash Ratio Deposit scheme. Members of NatWest Group that are UK authorised institutions having eligible liabilities greater than £600 million are required to pay the levy. They also have access to Bank of England reserve accounts: sterling current accounts that earn interest at the Bank of England Base rate.
Other related parties
(a) In their roles as providers of finance, NWM Group companies provide development and other types of capital support to businesses.
(b) To further strategic partnerships, NWM Group may seek to invest in third parties or allow third parties to hold a minority interest in a subsidiary of NWM Group. We disclose as related parties for associates and joint ventures and where equity interest are over 10%. Ongoing business transactions with these entities are on normal commercial terms.
(c) In accordance with IAS 24, transactions or balances between NWM Group entities that have been eliminated on consolidation are not reported.
(d) NWM Group is recharged from other NatWest Group entities, mainly NWB Plc which provides the majority of shared services (including technology) and operational processes.
(e) The primary financial statements include transactions and balances with its subsidiaries which have been further disclosed in the relevant parent company notes.
Full details of NWM Group's related party transactions for year ended 31 December 2025 are included in NatWest Markets Plc 2025 Annual Report and Accounts.
Notes
6. Litigation and regulatory matters
NWM Plc and certain members of NWM Group are party to various legal proceedings and are involved in, or subject to, various regulatory matters, including as the subject of investigations and other regulatory and governmental action (Matters) in the United Kingdom (UK), the United States (US), the European Union (EU) and other jurisdictions. Note 25 in the NatWest Markets Plc 2025 Annual Report and Accounts, issued on 13 February 2026 and available at nwm.com (Note 25), discusses the Matters in which NWM Group is currently involved and material developments. Other than the Matters discussed in Note 25, no member of NWM Group is or has been involved in governmental, legal, or regulatory proceedings (including those which are pending or threatened) that are expected to be material, individually or in aggregate. Recent developments in the Matters identified in Note 25 that have occurred since the Q3 2025 Interim Management Statement was issued on 24 October 2025, include, but are not limited to, those set out below.
Litigation
London Interbank Offered Rate (LIBOR) and other rates litigation
NatWest Group plc and certain other members of NatWest Group, including NWM Plc, are defendants in a number of claims pending in the United States District Court for the Southern District of New York (SDNY) with respect to the setting of USD LIBOR. The complainants allege that certain members of NatWest Group and other panel banks violated various federal laws, including the US commodities and antitrust laws, and state statutory and common law, as well as contracts, by manipulating LIBOR and prices of LIBOR-based derivatives in various markets through various means.
The co-ordinated proceeding in the SDNY relating to USD LIBOR now includes one remaining class action, which is on behalf of persons who purchased LIBOR-linked instruments from defendants and bonds issued by defendants, as well as two non-class actions.
On 25 September 2025, the SDNY granted summary judgment to the defendants on the issue of liability and dismissed all claims in both the class action and the non-class actions. The decision is being appealed in the United States Court of Appeals for the Second Circuit (US Court of Appeals).
Two other IBOR-related class actions involving NWM Plc, concerning alleged manipulation of Euribor and Pound Sterling LIBOR, were previously dismissed by the SDNY for various reasons.
On 22 August 2025, the US Court of Appeal reversed the SDNY's decision in the Euribor case, reinstating claims against NWM Plc. That case has therefore returned to the SDNY for further proceedings.
On 15 September 2025, the US Court of Appeals affirmed the SDNY's dismissal of the Pound Sterling LIBOR case.
Foreign exchange litigation
NatWest Group plc, NWM Plc and/or NWMSI are defendants in several cases relating to NWM Plc's foreign exchange (FX) business.
In July and December 2019, two separate applications seeking opt-out collective proceedings orders were filed in the UK Competition Appeal Tribunal (CAT) against NatWest Group plc, NWM Plc and other banks.
Both applications were brought on behalf of persons who, between 18 December 2007 and 31 January 2013, entered into a relevant FX spot or outright forward transaction in the European Economic Area with a relevant financial institution or on an electronic communications network.
In March 2022, the CAT declined to certify either application as collective proceedings on an opt-out basis. This decision was appealed by the applicants and was the subject of an application for judicial review. The CAT, in its judgment, allowed the applicants three months in which to reformulate their claims as opt-in claims.
In its amended judgment in November 2023, the Court of Appeal allowed the appeal and decided that the claims should proceed on an opt-out basis. Separately, the court determined which of the two competing applicants can proceed as class representative and dismissed the application for judicial review of the CAT's decision. The other applicant has discontinued its claim and withdrawn from the proceedings. The banks sought permission to appeal the Court of Appeal decision directly to the UK Supreme Court, which was granted in April 2024. The appeal was heard in April 2025.
In December 2025, the UK Supreme Court reinstated the CAT's decision to refuse the application for a collective proceedings order on an opt-out basis.
Swaps antitrust litigation
NWM Plc and other members of NatWest Group, including NatWest Group plc, as well as a number of other interest rate swap dealers, are defendants in several cases pending in the SDNY alleging violations of the US antitrust laws in the market for interest rate swaps. Three swap execution facilities (TeraExchange, Javelin, and trueEx) allege that they would have successfully established exchange-like trading of interest rate swaps if the defendants had not unlawfully conspired to prevent that from happening through boycotts and other means. Discovery is complete though expert discovery is ongoing.
In June 2021, a class action antitrust complaint was filed against a number of credit default swap dealers in New Mexico federal court on behalf of persons who, from 2005 onwards, settled credit default swaps in the United States by reference to the ISDA credit default swap auction protocol. The complaint alleges that the defendants conspired to manipulate that benchmark through various means in violation of the antitrust laws and the Commodity Exchange Act.
Notes
6. Litigation and regulatory matters continued
In May 2025, the US Court of Appeals affirmed a January 2024 decision by the SDNY which barred the plaintiffs in the New Mexico case from pursuing claims based on conduct occurring before 30 June 2014 on the ground that such claims were extinguished by a 2015 settlement agreement that resolved a prior class action relating to credit default swaps.
The case in New Mexico (which had been stayed pending the appeal of the SDNY's decision) has now resumed. The defendants have filed a motion to dismiss, which is pending.
Odd lot corporate bond trading antitrust litigation
On 2 September 2025, the SDNY dismissed the class action antitrust complaint alleging that, from August 2006 onwards, various securities dealers, including NWMSI, conspired artificially to widen spreads for odd lots of corporate bonds bought or sold in the United States secondary market and to boycott electronic trading platforms that would have allegedly promoted pricing competition in the market for such bonds. The plaintiffs did not appeal the SDNY's decision and the case is now closed.
1MDB litigation
A Malaysian court claim was served in Switzerland in November 2022 by 1MDB, a sovereign wealth fund, in which Coutts & Co Ltd was named, along with six others, as a defendant in respect of losses allegedly incurred by 1MDB. It is claimed that Coutts & Co Ltd is liable as a constructive trustee for having dishonestly assisted the directors of 1MDB in the breach of their fiduciary duties by failing (amongst other alleged claims) to undertake due diligence in relation to a customer of Coutts & Co Ltd, through which funds totalling c.US$1 billion were received and paid out between 2009 and 2011. 1MDB sought the return of that amount plus interest. Coutts & Co Ltd filed an application in January 2023 challenging the validity of service and the Malaysian court's jurisdiction to hear the claim, and a hearing took place in February 2024.
In March 2024, the court granted that application. 1MDB appealed that decision and a prior decision by the court not to allow them to discontinue their claim. Both appeals were scheduled to be heard in November 2025 but did not progress as 1MDB withdrew their appeal and discontinued the claim.
Coutts & Co Ltd (a subsidiary of RBS Netherlands Holdings B.V., which in turn is a subsidiary of NWM Plc) is a company registered in Switzerland and is in wind-down following the announced sale of its business assets in 2015.
Oracle Securities Litigation
On 14 January 2026, a class action complaint was filed in New York state court against Oracle Corporation and the underwriters of a September 2025 bond offering by Oracle, including NWMSI. The complaint alleges that the offering documents for the bonds were materially misleading because they failed to disclose that, at the time of the bond offering, Oracle was already planning to further increase its debt to fund its Artificial Intelligence infrastructure expansion.
The complaint seeks damages under the U.S. Securities Act of 1933 (the 'Securities Act'), as amended, on behalf of those who purchased Oracle's bonds. In connection with the bond offering, Oracle agreed to indemnify the underwriters against certain potential liabilities, including disclosure-based liability under the Securities Act.
Tandanor Litigation in Argentina
In October 2012, a claim was filed in the District Court of Buenos Aires by 'Argentina Talleres Navales Dársena Norte Sociedad Anónima Comercial, Industrial y Naviera' ("Tandanor") (a naval repair business) against what is now the Representative Office of The Royal Bank of Scotland NV, Argentine Branch (in liquidation) (the "Representative Office") and eleven private individuals. (The Representative Office inherited the claim from Banco Holandés Unido, Argentine Branch.) The claim, which was unquantified, sought damages for alleged fraudulent conduct during Tandanor's privatisation, which concluded in 1993. The Representative Office's participation in the privatisation was 2.9%. The Argentine Ministry of Defence joined Tandanor as a plaintiff in 2014.
The claim was dismissed on limitation grounds in 2018, and the plaintiffs were unsuccessful in subsequent appeals. In November 2024, however, the Argentine Supreme Court set the appealed judgments aside and, in June 2025, the Argentine Federal Court of Appeal returned the case to the Argentine Federal District Court for further consideration. In December 2025, the plaintiffs filed an update quantifying damages at USD1.1bn. The Representative Office continues to defend the claim and has requested a hearing.
7. Post balance sheet events
On 13 January 2026, NWM Plc issued a total of €1.0 billion of notes under the EMTN programme in benchmark transactions. There has been no adjustment to the 31 December 2025 statutory financial statements.
Other than as disclosed in the accounts, there have been no other significant events between 31 December 2025 and the date of approval of these accounts which would require a change to or additional disclosure.
Non-IFRS financial measures
NWM Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). This document contains a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-Generally Accepted Accounting Principles (GAAP) financial measures in accordance with the Securities and Exchange Commission (SEC) regulations. These measures are adjusted for certain items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison.
The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include a calculation of metrics that are used throughout the banking industry.
These non-IFRS measures are not a substitute for IFRS measures and a reconciliation to the closest IFRS measures is presented where appropriate. These measures include:
· Management analysis of operating expenses shows litigation and conduct costs on a separate line. These amounts are included within staff costs, premises and equipment and other administrative expenses in the statutory analysis. Other operating expenses excludes litigation and conduct costs which are more volatile and may distort comparisons with prior periods.
· Funded assets are defined as total assets less derivative assets. This measure allows review of balance sheet trends exclusive of the volatility associated with derivative fair values.
· Management view of income by business including shared revenue and before own credit adjustments. This measure is used to show underlying income generation in NatWest Markets excluding the impact of own credit adjustments.
· Revenue share refers to income generated by NatWest Markets products from customers that have their primary relationship with other NatWest Group subsidiaries, a proportion of which is shared between NatWest Markets and those subsidiaries.
· Transfer Pricing arrangements with fellow NatWest Group subsidiaries includes revenue share and a profit share arrangement with fellow NatWest Group subsidiaries. The profit share arrangement rewards NWM Group on an arm's length basis for its contribution to the performance of the NatWest Group Commercial & Institutional business segment. The profit share is not allocated to individual NatWest Markets product areas.
· Own credit adjustments are applied to positions where it is believed that the counterparties would consider NWM Group's creditworthiness when pricing trades. The fair value of certain issued debt securities, including structured notes, is adjusted to reflect the changes in own credit spreads and the resulting gain or loss recognised in income.
Non-IFRS financial measures
Operating expenses - management view
|
|
Year ended |
||||||
|
|
31 December 2025 |
|
31 December 2024 |
||||
|
|
Litigation |
Other |
Statutory |
|
Litigation |
Other |
Statutory |
|
|
and conduct |
operating |
operating |
|
and conduct |
operating |
operating |
|
|
costs |
expenses |
expenses |
|
costs |
expenses |
expenses |
|
|
£m |
£m |
£m |
|
£m |
£m |
£m |
|
Staff costs |
40 |
466 |
506 |
|
27 |
425 |
452 |
|
Premises and equipment |
6 |
73 |
79 |
|
- |
75 |
75 |
|
Other administrative expenses |
17 |
694 |
711 |
|
75 |
596 |
671 |
|
Depreciation and amortisation |
- |
12 |
12 |
|
- |
10 |
10 |
|
Total |
63 |
1,245 |
1,308 |
|
102 |
1,106 |
1,208 |
|
|
|||||||
|
|
Quarter ended |
||||||
|
|
|
|
31 December 2025 |
||||
|
|
|
|
|
|
Litigation |
Other |
Statutory |
|
|
|
|
|
|
and conduct |
operating |
operating |
|
|
costs |
expenses |
expenses |
||||
|
|
£m |
£m |
£m |
||||
|
Staff costs |
|
|
|
|
9 |
104 |
113 |
|
Premises and equipment |
|
|
|
|
2 |
19 |
21 |
|
Other administrative expenses |
|
|
|
|
13 |
222 |
235 |
|
Depreciation and amortisation |
|
|
|
|
- |
3 |
3 |
|
Total |
|
|
|
|
24 |
348 |
372 |
|
|
|||||||
|
|
Quarter ended |
||||||
|
|
|
|
30 September 2025 |
||||
|
|
|
|
|
|
Litigation |
Other |
Statutory |
|
|
|
|
|
|
and conduct |
operating |
operating |
|
|
costs |
expenses |
expenses |
||||
|
|
£m |
£m |
£m |
||||
|
Staff costs |
|
|
|
|
12 |
116 |
128 |
|
Premises and equipment |
|
|
|
|
1 |
21 |
22 |
|
Other administrative expenses |
|
|
|
|
(39) |
155 |
116 |
|
Depreciation and amortisation |
|
|
|
|
- |
3 |
3 |
|
Total |
|
|
|
|
(26) |
295 |
269 |
|
|
|||||||
|
|
|
|
Quarter ended |
||||
|
|
|
|
31 December 2024 |
||||
|
|
|
|
|
|
Litigation |
Other |
Statutory |
|
|
|
|
|
|
and conduct |
operating |
operating |
|
|
costs |
expenses |
expenses |
||||
|
|
£m |
£m |
£m |
||||
|
Staff costs |
|
|
|
|
5 |
94 |
99 |
|
Premises and equipment |
|
|
|
|
- |
20 |
20 |
|
Other administrative expenses |
|
|
|
|
36 |
204 |
240 |
|
Depreciation and amortisation |
|
|
|
|
- |
3 |
3 |
|
Total |
|
|
|
|
41 |
321 |
362 |
Statement of directors' responsibilities
The responsibility statement below has been prepared in connection with NWM Group's full Annual Report and Accounts for the year ended 31 December 2025.
We, the directors listed below, confirm that to the best of our knowledge:
· The financial statements, prepared in accordance with UK-adopted IAS, and IFRS, as issued by the IASB, give a true and fair view of the assets, liabilities, financial position and profit or loss of NWM Plc and the undertakings included in the consolidation taken as a whole; and
· The Strategic Report and Report of the directors (incorporating the Financial review) include a fair review of the development and performance of the business and the position of NWM Plc, and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
|
By order of the Board
Tamsin Rowe |
Jonathan Peberdy |
Simon Lowe |
|
Interim Chair |
Chief Executive Officer |
Chief Financial Officer |
|
12 February 2026 |
|
|
|
Board of directors Interim Chair |
Executive directors |
Non-executive directors |
|
Tamsin Rowe |
Jonathan Peberdy Simon Lowe
|
Rupert Hume-Kendall Thierry Roland Anne Simpson Sabrina Wilson |
Presentation of information
NatWest Markets Plc ('NWM Plc') is a wholly owned subsidiary of NatWest Group plc or 'the ultimate holding company'. The NatWest Markets Group ('NWM Group') or 'we' comprises NWM Plc and its subsidiary and associated undertakings. The term 'NatWest Group' comprises NatWest Group plc and its subsidiaries.
NWM Plc publishes its financial statements in pounds sterling ('£' or 'sterling'). The abbreviations '£m' and '£bn' represent millions and thousands of millions of pounds sterling ('GBP'), respectively, and references to 'pence' represent pence in the United Kingdom ('UK'). Reference to 'dollars' or '$' are to United States of America ('US') dollars. The abbreviations '$m' and '$bn' represent millions and thousands of millions of dollars, respectively, and references to 'cents' represent cents in the US. The abbreviation '€' represents the 'euro', and the abbreviations '€m' and '€bn' represent millions and thousands of millions of euros, respectively, and references to 'cents' represent cents in the European Union ('EU').
Statutory results
Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ("the Act"). The statutory accounts for the year ended 31 December 2025 will be filed with the Registrar of Companies. The report of the auditor on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Act.
|
Contact |
RB
|
|
|
Paul Pybus |
NatWest Group Investor Relations |
+44 (0) 7769161183 |
Forward-looking statements
Cautionary statement regarding forward-looking statements RBS\Fin
Certain sections in this document contain 'forward-looking statements' as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements with respect to NWM Group's financial condition, results of operations and business, including its strategic priorities, financial, investment and capital targets, and climate and sustainability-related targets, commitments and ambitions described herein. Statements that are not historical facts, including statements about NatWest Group's beliefs and expectations, are forward-looking statements. Words such as 'expect', 'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'will', 'plan', 'could', 'probability', 'risk', 'target', 'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on these expressions are intended to identify forward-looking statements. In particular, this document includes forward-looking targets and guidance relating to financial performance measures, such as income growth, operating expense, cost reductions, impairment loss rates, capital generation pre-distributions, customer assets and liabilities growth rate, cost-income ratio, balance sheet reduction (including the reduction of RWAs), CET1 ratio (and key drivers of the CET1 ratio, including timing, impact and details), Pillar 2 and other regulatory buffer requirements and MREL and non-financial performance measures, such as climate and sustainability-related performance ambitions, targets non-ifrs finfinanced and facilitated emissions.
Limitations inherent to forward-looking statements
These statements are based on current plans, expectations, estimates, targets and projections, and are subject to significant inherent risks, uncertainties and other factors, both external and relating to NatWest Group's and NWM Group's strategy or operations, which may result in NWM Group being unable to achieve the current plans, expectations, estimates, targets, projections and other anticipated outcomes expressed or implied by such forward-looking statements. In addition, certain of these disclosures are dependent on choices relying on key model characteristics and assumptions and are subject to various limitations, including assumptions and estimates made by management. By their nature, certain of these disclosures are only estimates and, as a result, actual future results, gains or losses could differ materially from those that have been estimated. Accordingly, undue reliance should not be placed on these statements. The forward-looking statements contained in this document speak only as of the date we make them and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein, whether to reflect any change in our expectations with regard thereto, any change in events, conditions or circumstances on which any such statement is based, or otherwise, except to the extent legally required.
Important factors that could affect the actual outcome of the forward-looking statements
We caution you that a large number of important factors could adversely affect our results or our ability to implement our strategy, cause us to fail to meet our targets, predictions, expectations and other anticipated outcomes or affect the accuracy of forward-looking statements described in this document. These factors include, but are not limited to, those set forth in the risk factors and the other uncertainties described in NatWest Markets Plc's 2025 Annual Report and Accounts, and its other public filings. The principal risks and uncertainties that could adversely affect NWM Group's future results, its financial condition and/or prospects and cause them to be materially different from what is forecast or expected, include, but are not limited to: economic and political risk (including in respect of: economic and political risks and uncertainties in the UK and global markets, including as a result of inflation and interest rates, supply chain disruption, protectionist policies, and geopolitical developments; and changes in interest rates and foreign currency exchange rates; business change and execution risk (including in respect of: NatWest Group's strategy and NatWest Group's creation of its Commercial & Institutional business segment (of which NWM Group forms part); the competitive environment; and the transfer of NatWest Group's EU corporate portfolio); financial resilience risk (including in respect of: NWM Group's ability to meet targets, generate returns or implement its strategy effectively; prudential regulatory requirements for capital; NWM Group's reliance on access to capital markets directly or indirectly through its parent (NatWest Group plc) for the subscription to its internal capital and MREL; prudential regulatory requirements for funding and liquidity; capital, funding and liquidity risk; reductions in the credit ratings and/or outlooks assigned to NatWest Group plc, any of its subsidiaries (including NWM Group) or any of their respective debt securities; ; counterparty and borrower risk; model risk; sensitivity to accounting policies, judgments, estimates and assumptions (and the economic, climate, competitive and other forward-looking information affecting those judgments, estimates and assumptions); changes in applicable accounting standards; the requirements of regulatory stress tests and the adequacy of NatWest Group's resolution plans; and the application of UK statutory stabilisation or resolution powers to NatWest Group); operational and IT resilience risk (including in respect of: operational risks (including reliance on third party suppliers); cyberattacks; the accuracy and effective use of data; artificial intelligence; attracting, retaining and developing senior management and skilled personnel; complex IT systems; NWM Group's risk management framework; and NWM Group's reputational risk); legal and regulatory risk (including in respect of: the impact of substantial regulation and oversight; the outcome of legal, regulatory and governmental actions and investigations as well as remedial undertakings; and changes in tax legislation or failure to generate future taxable profits); and climate and sustainability-related risk (including in respect of: climate and sustainability-related risks; both the execution and reputational risk relating to NatWest Group's (including NWM Group) climate and sustainability-related strategy, ambitions, targets, commitments, and transition plan; climate and sustainability-related data and model risk; increasing levels of climate, environmental, human rights and other sustainability-related laws, regulation and oversight; climate, environmental, human rights and other sustainability-related litigation, enforcement actions, investigations and conduct risk).
Cautionary statement regarding Non-IFRS financial measures and APMs
NWM Group prepares its financial statements in accordance with UK-adopted IAS, and IFRS, as issued by the IASB. This document may contain non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-GAAP financial measures in accordance with the Securities and Exchange Commission (SEC) regulations (together, APMs). APMs are adjusted for notable and other defined items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. APMs provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. APMs included in this document, are not measures within the scope of IFRS or GAAP, are based on a number of assumptions that are subject to uncertainties and change, and are not a substitute for IFRS or GAAP measures and a reconciliation to the closest IFRS or GAAP measure is presented where appropriate.
The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or a solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.
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