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LONDON - NatWest Group announced on Tuesday it has passed the Bank of England’s 2025 stress test with significant headroom above minimum requirements, demonstrating the bank’s financial resilience under severe economic scenarios.
The stress test, which uses NatWest’s balance sheet as of December 31, 2024, showed the banking group would maintain a Common Equity Tier 1 (CET1) ratio of 11.1% at its lowest point during the simulated economic downturn, compared to its actual position of 13.6% at the end of 2024.
Similarly, NatWest’s Tier 1 leverage ratio would reach a low point of 4.7% under the stress scenario, compared to its actual position of 5.0% as of December 2024.
Both metrics remained "significantly ahead of the stress minimum requirement," according to the bank’s press release statement, indicating that no strategic management actions would be required to maintain adequate capital levels during a severe economic shock.
The Bank of England conducts these annual stress tests to assess whether major UK financial institutions have sufficient capital to withstand extreme but plausible economic scenarios.
Katie Murray, Chief Financial Officer at NatWest Group, noted that the results reflect the "continued strengthening of our balance sheet since the 2022/23 Stress Test," which she said underpins the bank’s ability to support customers and the broader economy even during severe stress scenarios.
The stress test results come as part of the Bank of England’s broader assessment of the UK banking system’s ability to withstand economic shocks while continuing to serve households and businesses.
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