NatWest posts £2.68 bln H1 profit as interest income boosts operating results

Published 25/07/2025, 07:48
© Reuters

Investing.com -- NatWest Group (LON:NWG) on Friday reported a profit of £2.68 billion for the first half of 2025, driven by net interest income of £6.12 billion.

Total (EPA:TTEF) income for the period reached £7.99 billion. Of that, £1.87 billion came from non-interest income. 

Operating expenses were £4.02 billion, including £118 million in litigation and conduct costs. Excluding those charges, expenses totaled £3.90 billion.

Impairment losses for the period were £382 million. After accounting for costs and provisions, operating profit before tax stood at £3.59 billion. 

A tax charge of £910 million brought profit from continuing operations to £2.68 billion. There was no contribution from discontinued operations.

Basic earnings per ordinary share from continuing operations were 30.9 pence. Return on tangible equity was 18.1%. 

The cost-to-income ratio, excluding litigation and conduct costs, was 48.8%. The loan impairment rate was 19 basis points.

As of June 30, total assets stood at £588.2 billion. Loans to customers at amortized cost were £407.1 billion, and customer deposits totaled £436.8 billion.

The group’s Common Equity Tier 1 (CET1) ratio was 13.6%, while risk-weighted assets were £190.1 billion. The U.K. leverage ratio was reported at 5%.

During the reporting period, the trustee of the Main section of the NatWest Group Pension Fund entered into an insurance policy with an unnamed insurer on June 12. 

The agreement covers certain pension liabilities, providing protection against specific risks and supporting the security of member benefits. 

The transaction did not affect the group’s balance sheet, as the asset recognized was limited to zero due to the asset ceiling, the company said.

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