04/29/2021 | Press release | Distributed by Public on 04/29/2021 06:36
●
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Q1 2021 operating profit before tax of £946 million and an attributable profit of £620 million.
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●
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Income across the UK and RBSI retail and commercial businesses, excluding notable items, decreased by £203 million, or 8.0%, compared with Q1 2020 reflecting the lower yield curve, subdued transactional business activity and lower consumer spending, partially offset by balance sheet growth.
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●
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Bank net interest margin (NIM) of 1.64% was 2 basis points lower than Q4 2020 principally reflecting lower structural hedge income, 3 basis points, partly offset by mortgage margin improvement, 1 basis point.
|
●
|
Other expenses, excluding operating lease depreciation (OLD) and Ulster Bank RoI direct costs, were £72 million, or 4.5%, lower than Q1 2020.
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●
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A net impairment release of £102 million in Q1 2021 reflects releases in non-default portfolios, principally in Commercial Banking.
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Robust balance sheet with strong capital and liquidity levels
|
|
●
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CET1 ratio of 18.2% was 30 basis points lower than Q4 2020, reflecting the directed buy back, associated pension contribution, and foreseeable dividend accrual partially offset by the reduction in RWAs and the attributable profit for the period.
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●
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The liquidity coverage ratio (LCR) of 158%, representing £64.9 billion above 100%, decreased by 7 percentage points compared with Q4 2020, following a repayment of the TermFunding Scheme with additional incentives for SMEs (TFSME).
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●
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Net lending decreased by £1.8 billion to £358.7 billion in comparison to Q4 2020. Across the UK and RBSI retail and commercial businesses, net lending excluding UK Government support schemes, increased by £2.2 billion, or 3.0% on an annualised basis, including £3.4 billion related to mortgages. Retail Banking gross new mortgage lending was £9.6 billion in the quarter.
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●
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Customer deposits increased by £21.6 billion compared with Q4 2020 to £453.3 billon. Across the UK and RBSI retail and commercial businesses customer deposits increased by £12.1 billion, or 3.0%, as customers sought to retain liquidity and reduced spending. Treasury repo activity drove a further £10.9 billion increase in the quarter.
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●
|
RWAs decreased by £5.6 billion compared with Q4 2020 mainly reflecting reductions in Retail Banking and Commercial Banking.
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Outlook(1)
|
We retain the outlook guidance provided in the 2020 Annual Results document.
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Note:
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(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 NatWest Group plc 'Risk Factors' section on pages 345 to 362 of the 2020 Annual Report and Accounts and on pages 156 to 172 of the NatWest Markets Group Plc 2020 Annual Report and Accounts. These statements constitute forward-looking statements. Refer to Forward-looking statements in this announcement.
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NatWest Group is participating in the new mortgage guarantee scheme, which provides a UK Government guarantee to lenders on mortgages with just a 5% deposit and will help many customers for whom home ownership has felt far out of reach.
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As part of our Digital Regular Saver, launched in 2020, we recently announced a £10,000 prize draw that will provide further incentive to our customers to start and continue saving, helping them build financial security.
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Our Personal Portfolio Funds - available through NatWest Invest, Royal Bank Invest and Coutts Invest - support customers to invest in their futures. Less than five years since their launch, Assets under Management have exceeded £1 billion, with 30% growth in Q1 2021.
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We teamed up with the creators of 'No Really, I'm Fine' - a mental health podcast - to bring listeners the 'Mind Over Money' podcast tackling the issue of financial wellbeing, with practical tips to avoid scams, manage spending habits and deal with a financial crisis.
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Businesses
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In response to our SME Recovery Report, NatWest Group announced a £6 billion funding commitment to support SMEs to scale and grow, with £4 billion allocated outside London. We also formed new strategic partnerships with Business in The Community (BITC), Hatch and Digital Boost, to empower underrepresented entrepreneurs and communities to embed new skills and technology.
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Commercial Banking is playing a key role in helping customers recover and grow, through Pay As You Grow for existing Bounce Back Loans and supporting access to finance through the new Recovery Loan Scheme.
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Coutts has partnered with the Business Growth Fund to develop the UK Enterprise Fund. This fund will co-invest equity growth capital, taking minority stakes in businesses looking to scale in the UK, with a focus on investing in female and diverse entrepreneurs.
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NatWest Group has joined forces with Microsoft to help UK businesses better understand their carbon footprint and create tailored action plans to reduce their carbon emissions, leveraging digital technologies.
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In our sixth year as headline sponsor of National Careers Week, we announced the creation of 240 social mobility apprenticeships across contact centre, digital, technology and innovation skills. The new roles will support young people facing barriers in their early career, giving them the tools and support they need to succeed.
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In response to the pandemic's significant impact on young people, in partnership with the Bank Workers Charity, we have launched a free online counselling and wellbeing support service - Kooth - for the dependants of current and former colleagues in the UK, aged 11-18 years old.
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In Q1 2021, we launched the Chartered Banker Institute Enterprise Membership to our colleagues, providing access to award winning professional content, toolkits and development material, one of the many ways we are supporting our colleagues to be the best they can be.
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Communities
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One of our Edinburgh offices has been transformed into a mass vaccination centre, at no cost to the NHS. The centre is running 12 hours a day, seven days a week and is currently capable of providing 480 appointments every day.
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In Q1 2021, NatWest Group issued a €1 billion affordable housing social bond, the first of its kind by a UK bank. The proceeds will support lending to not-for-profit, UK housing associations as part of our commitment to provide £3 billion of funding to the UK's affordable housing sector by the end of 2022.
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NatWest Group launched an innovative offering with Octopus Energy to help people and businesses switch to electric vehicles. It provides tailored advice, charging infrastructure funding solutions and access to some of the latest renewable technologies.
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NatWest Group was recently announced as a corporate patron of the National Emergencies Trust (NET). Alongside the NET's other patrons, we'll play an active role in shaping the response to future emergencies, having helped to raise £10 million for the NET Coronavirus Appeal in 2020.
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Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
Total income
|
£2,659m
|
£2,535m
|
£3,162m
|
|||
Operating expenses
|
(£1,815m)
|
(£2,341m)
|
(£1,841m)
|
|||
Profit before impairment releases/(losses)
|
£844m
|
£194m
|
£1,321m
|
|||
Operating profit before tax
|
£946m
|
£64m
|
£519m
|
|||
Profit/(loss) attributable to ordinary shareholders
|
£620m
|
(£109m)
|
£288m
|
|||
Excluding notable items within total income (1)
|
||||||
Total income excluding notable items
|
£2,673m
|
£2,616m
|
£3,047m
|
|||
Operating expenses
|
(£1,815m)
|
(£2,341m)
|
(£1,841m)
|
|||
Profit before impairment releases/(losses) and excluding notable items
|
£858m
|
£275m
|
£1,206m
|
|||
Operating profit before tax and excluding notable items
|
£960m
|
£145m
|
£404m
|
|||
Performance key metrics and ratios
|
||||||
Bank net interest margin (NatWest Group NIM excluding NWM) (2)
|
1.64%
|
1.66%
|
1.89%
|
|||
Bank average interest earning assets (NatWest Group excluding NWM) (2)
|
£480bn
|
£473bn
|
£422bn
|
|||
Cost:income ratio (2)
|
67.8%
|
92.2%
|
57.7%
|
|||
Loan impairment rate (2)
|
(11bps)
|
14bps
|
90bps
|
|||
Earnings per share - basic
|
5.1p
|
(0.9p)
|
2.4p
|
|||
Return on tangible equity (2)
|
7.9%
|
(1.4%)
|
3.6%
|
31 March
|
31 December
|
31 March
|
|
2021
|
2020
|
2020
|
|
Balance sheet
|
|||
Total assets
|
£769.8bn
|
£799.5bn
|
£817.6bn
|
Funded assets (2)
|
£646.8bn
|
£633.0bn
|
£608.9bn
|
Loans to customers - amortised cost
|
£358.7bn
|
£360.5bn
|
£351.3bn
|
Loans to customers and banks - amortised cost and FVOCI (3)
|
£371.0bn
|
£372.4bn
|
£364.0bn
|
Impairment provisions - amortised cost
|
£5.6bn
|
£6.0bn
|
£4.2bn
|
Total impairment provisions (3)
|
£5.8bn
|
£6.2bn
|
£4.3bn
|
Expected credit loss (ECL) coverage ratio (3)
|
1.56%
|
1.66%
|
1.19%
|
Assets under management and administration (AUMA) (2)
|
£32.6bn
|
£32.1bn
|
£26.7bn
|
Customer deposits
|
£453.3bn
|
£431.7bn
|
£384.8bn
|
Liquidity and funding
|
|||
Liquidity coverage ratio (LCR)
|
158%
|
165%
|
152%
|
Liquidity portfolio
|
£263bn
|
£262bn
|
£201bn
|
Net stable funding ratio (NSFR) (4)
|
153%
|
151%
|
138%
|
Loan:deposit ratio (2)
|
79%
|
84%
|
91%
|
Total wholesale funding
|
£61bn
|
£71bn
|
£86bn
|
Short-term wholesale funding
|
£20bn
|
£19bn
|
£32bn
|
Capital and leverage
|
|||
Common Equity Tier (CET1) ratio (5)
|
18.2%
|
18.5%
|
16.6%
|
Total capital ratio
|
24.0%
|
24.5%
|
21.4%
|
Pro forma CET1 ratio, pre dividend accrual (6)
|
18.6%
|
18.8%
|
16.6%
|
Risk-weighted assets (RWAs)
|
£164.7bn
|
£170.3bn
|
£185.2bn
|
CRR leverage ratio (5)
|
5.0%
|
5.2%
|
5.1%
|
UK leverage ratio
|
6.2%
|
6.4%
|
5.8%
|
Tangible net asset value (TNAV) per ordinary share
|
261p
|
261p
|
273p
|
Number of ordinary shares in issue (millions) (7)
|
11,560
|
12,129
|
12,094
|
(1)
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Refer to page 5 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.
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(3)
|
Refer to page 15 for further details. 31 March 2020 has been restated for the accounting policy change for balances held with central banks. Refer to Accounting policy changes effective 1 January 2020 on page 264 in the NatWest Group plc 2020 Annual Report and Accounts for further details.
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(4)
|
NSFR reported in line with CRR2 regulations finalised in June 2019.
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(5)
|
Based on CRR end point including the IFRS 9 transitional adjustment of £1.7 billion. Excluding this adjustment, the CET1 ratio would be 17.2% and the CRR leverage ratio would be 4.7%.
|
(6)
|
The pro forma CET1 ratio at 31 March 2021 excludes foreseeable charges of £547 million for ordinary dividend including £200 million (11bps) in Q1 2021 (31 December 2020 excludes foreseeable charges of £364 million for ordinary dividend (3p per share) and £266 million pension
contribution). At 31 March 2020 there was no charge in CET1 for foreseeable dividends or charges.
|
(7)
|
In March 2021, there was an agreement with HM Treasury to buy 591 million ordinary shares in the Company from UK Government Investments Ltd (UKGI). NatWest Group cancelled 391 million of the purchased ordinary shares, and held the remaining 200 million in own shares held. The
number of ordinary shares in issue excludes own shares held.
|
In the first quarter of 2021 we have continued to make progress against our strategic objectives and have delivered a good financial performance. We continue to support our customers through this period of uncertainty and expect to grow lending, excluding UK Government financial support schemes, in our UK and RBSI retail and commercial businesses above the market rate in 2021, whilst reducing costs by around 4%. The Q1 2021 results include a small impairment release, as support schemes continue to mitigate realised levels of default. Finally, our capital and liquidity positions remain robust.
|
Financial performance
Total income decreased by £503 million, or 15.9%, compared with Q1 2020. Excluding notable items, income decreased by £374 million, or 12.3%, due to the lower yield curve, subdued transactional business activity and a more normalised level of customer activity in NatWest Markets, partially offset by balance sheet growth. Bank NIM of 1.64% decreased by 2 basis points compared with Q4 2020 as lower structural hedge income, 3 basis points, was partly offset by mortgage margin improvement, 1 basis point.
|
We achieved a cost reduction of £72 million, or 4.5%, compared with Q1 2020 mainly reflecting actions taken in NatWest Markets in line with the strategic announcement made in February 2020 and other actions across Retail Banking and Commercial Banking. Headcount was 5.7% lower than Q1 2020. Strategic costs in the quarter of £160 million included £53 million redundancy charges, £24 million related to property charges and a £14 million charge related to technology spend.
|
Whilst we continue to navigate a high degree of uncertainty in the wider economic environment, a net impairment release of £102 million in the quarter reflects releases in non-default portfolios, principally in Commercial Banking, as support schemes continue to mitigate realised levels of default. Total impairment provisions decreased by £0.4 billion to £5.8 billion in the quarter, which resulted in a reduction in the ECL coverage ratio from 1.66% at Q4 2020 to 1.56%.
|
As a result, we are pleased to report an attributable profit of £620 million, with earnings per share of 5.1 pence and a return on tangible equity (RoTE) of 7.9%.
|
We continued to support our customers during this period of uncertainty, whilst taking a measured approach to risk. Across the UK and RBSI retail and commercial businesses, net lending excluding UK Government support schemes increased by £2.2 billion, or 3.0% on an annualised basis, including £3.4 billion of mortgage growth partially offset by lower unsecured balances and a reduction in SME & mid corporate lending.
|
Customer deposits increased by £21.6 billion, or 5.0%, to £453.3 billon in the quarter. Across the UK and RBSI retail and commercial businesses customer deposits increased by £12.1 billion, or 3.0%, as customers sought to retain liquidity and reduced spending. Treasury repo activity drove a further £10.9 billion increase in the quarter.
|
Capital and leverage
|
Following the successful directed buy back in March 2021, the CET1 ratio remains robust at 18.2%, or 17.2% excluding IFRS 9 transitional relief. The 30 basis points reduction in the quarter reflected the directed buy back, and associated pension contribution, 72 basis points, and foreseeable dividend accrual, 11 basis points, partially offset by the reduction in RWAs and the attributable profit for the period. The total capital ratio decreased by 50 basis points in the quarter to 24.0%.
|
RWAs of £164.7 billion decreased by £5.6 billion, or 3.3%, in the quarter reflecting business movements, including lower unsecured lending, of £2.5 billion, risk parameter improvements of £1.0 billion, Commercial Banking capital management activity and FX movements of £1.3 billion.
TNAV per share was in line with Q4 2020 at 261 pence as the attributable profit and directed buy back were offset by movements in FX reserves, cash flow hedging reserves and the dividend linked pension contribution.
|
The UK leverage ratio of 6.2% decreased by 20 basis points in the quarter.
|
The liquidity portfolio was £263 billion at the end of Q1 2021, broadly stable with Q4 2020, and the LCR decreased by 7 percentage points to 158%, representing £64.9 billion headroom above 100%, reflecting the £5.0 billion TFSME repayment in January 2021, the redemption of own debt, directed buy back and other balance sheet movements, partially offset by the 3.0% increase in customer deposits. The loan:deposit ratio reduced by 5 percentage points in the quarter to 79%.
|
Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
£m
|
£m
|
£m
|
||||
Net interest income
|
1,931
|
1,971
|
1,942
|
|||
Own credit adjustments
|
2
|
(43)
|
155
|
|||
Other non-interest income
|
726
|
607
|
1,065
|
|||
Non-interest income
|
728
|
564
|
1,220
|
|||
Total income
|
2,659
|
2,535
|
3,162
|
|||
Litigation and conduct costs
|
(16)
|
(194)
|
4
|
|||
Strategic costs
|
(160)
|
(326)
|
(131)
|
|||
Other expenses
|
(1,639)
|
(1,821)
|
(1,714)
|
|||
Operating expenses
|
(1,815)
|
(2,341)
|
(1,841)
|
|||
Profit before impairment releases/(losses)
|
844
|
194
|
1,321
|
|||
Impairment releases/(losses)
|
102
|
(130)
|
(802)
|
|||
Operating profit before tax
|
946
|
64
|
519
|
|||
Tax charge
|
(233)
|
(84)
|
(188)
|
|||
Profit/(loss) for the period
|
713
|
(20)
|
331
|
|||
Attributable to:
|
||||||
Ordinary shareholders
|
620
|
(109)
|
288
|
|||
Preference shareholders
|
5
|
5
|
8
|
|||
Paid-in equity holders
|
87
|
83
|
97
|
|||
Non-controlling interests
|
1
|
1
|
(62)
|
Notable items within total income
|
||||||
Own credit adjustments (OCA)
|
2
|
(43)
|
155
|
|||
FX recycling loss in Central items & other
|
-
|
(1)
|
(64)
|
|||
Liquidity Asset Bond sale gain
|
-
|
2
|
93
|
|||
IFRS volatility in Central items & other (1)
|
(1)
|
45
|
(66)
|
|||
Loss on redemption of own debt
|
(118)
|
-
|
-
|
|||
Retail Banking debt sale gain
|
-
|
1
|
-
|
|||
Metro Bank mortgage portfolio acquisition loss
|
-
|
(58)
|
-
|
|||
Commercial Banking fair value and disposal loss
|
(14)
|
(27)
|
(19)
|
|||
NatWest Markets asset disposals/strategic risk reduction (2)
|
(4)
|
(8)
|
-
|
|||
Share of gains under equity accounting for Business Growth Fund
|
121
|
8
|
16
|
|||
Total
|
(14)
|
(81)
|
115
|
Quarter ended
|
|||||||
31 March
|
31 December
|
31 March
|
|||||
2021
|
2020
|
2020
|
|||||
£m
|
£m
|
£m
|
|||||
Total income
|
1,056
|
974
|
1,150
|
||||
Operating expenses
|
(587)
|
(818)
|
(529)
|
||||
of which: Other expenses
|
(557)
|
(566)
|
(592)
|
||||
Impairment losses
|
(34)
|
(65)
|
(297)
|
||||
Operating profit
|
435
|
91
|
324
|
||||
Return on equity
|
23.0%
|
3.8%
|
15.5%
|
||||
Net interest margin
|
2.06%
|
2.03%
|
2.28%
|
||||
Cost:income ratio
|
55.6%
|
84.0%
|
46.0%
|
||||
Loan impairment rate
|
8bps
|
15bps
|
72bps
|
As at
|
||||||
31 March
|
31 December
|
|||||
2021
|
2020
|
|||||
£bn
|
£bn
|
|||||
Net loans to customers - amortised cost
|
174.8
|
172.3
|
||||
Customer deposits
|
179.1
|
171.8
|
||||
RWAs
|
35.0
|
36.7
|
During Q1 2021, Retail Banking continued to pursue sustainable growth with an intelligent approach to risk. Lending growth in the quarter was supported by a strong performance in mortgages, with gross new mortgage lending of £9.6 billion in the quarter, partially offset by the continued UK Government restrictions impacting customer spending and resulting in higher repayments of unsecured balances.
|
|
●
|
Retail Banking continues to support customers whose income has been impacted by COVID-19. As at 31 March 2021, Retail Banking had c.12,000 active mortgage repayment holidays, representing around 1% of the book by volume, and approximately 16,000, or 2%, of personal loan customers on active repayment holidays at the end of Q1 2021.
|
●
|
Total income was £94 million, or 8.2%, lower than Q1 2020 primarily due to lower deposit returns and unsecured balances, combined with regulatory changes impacting fee income, partially offset by strong balance growth in mortgages and improved mortgage margins. Net interest margin increased by 3 basis points compared with Q4 2020 reflecting mortgage margin improvement, partially offset by lower hedge returns and lower unsecured balance mix. Mortgage completion margins of around 180 basis points were higher than the back book margin of around 160 basis points. Application margins were around 180 basis points in the quarter but decreased to around 165 basis points in the latter part of Q1 2021 primarily due to rising swap rates.
|
●
|
Other expenses were £35 million, or 5.9%, lower than Q1 2020 primarily reflecting a reduction in headcount.
|
●
|
Impairment losses of £34 million in Q1 2021 continue to reflect a low level of Stage 3 defaults, which benefitted from a £17 million provision release relating to a planned debt sale, and a small release from accounts flowing from Stage 2 back to Stage 1.
|
●
|
Net loans to customers increased by £2.5 billion, or 1.5%, compared with Q4 2020 due to continued strong mortgage growth of £3.0 billion, with gross new mortgage lending in the quarter of £9.6 billion, and flow share of approximately 13%. Personal advances and cards reduced by £0.2 billion and £0.3 billion respectively as customers spent less and made higher repayments, reflecting the impact of the UK Government restrictions.
|
●
|
Customer deposits increased by £7.3 billion, or 4.2%, compared with Q4 2020 as continued UK Government initiatives combined with restrictions, resulted in lower customer spend and increased savings.
|
●
|
RWAs decreased by £1.7 billion, or 4.6%, compared with Q4 2020 largely reflecting lower unsecured balances and continued quality improvements supported by rising house prices and customer behaviour.
|
Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
£m
|
£m
|
£m
|
||||
Total income
|
185
|
184
|
201
|
|||
Operating expenses
|
(121)
|
(91)
|
(123)
|
|||
of which: Other expenses
|
(122)
|
(119)
|
(118)
|
|||
Impairment releases/(losses)
|
-
|
(26)
|
(29)
|
|||
Operating profit
|
64
|
67
|
49
|
|||
Return on equity
|
12.4%
|
13.3%
|
9.8%
|
|||
Net interest margin
|
1.79%
|
1.86%
|
2.25%
|
|||
Cost:income ratio
|
65.4%
|
49.5%
|
61.2%
|
|||
Loan impairment rate
|
0bps
|
61bps
|
73bps
|
As at
|
||||||
31 March
|
31 December
|
|||||
2021
|
2020
|
|||||
£bn
|
£bn
|
|||||
Net loans to customers - amortised cost
|
17.5
|
17.0
|
||||
Customer deposits
|
33.5
|
32.4
|
||||
RWAs
|
11.2
|
10.9
|
||||
Assets Under Management (AUMs)
|
29.4
|
29.1
|
||||
Assets Under Administration (AUAs) (1)
|
3.2
|
3.0
|
||||
Total Assets Under Management and Administration (AUMA)
|
32.6
|
32.1
|
Note:
|
|
(1) Private Banking manages AUA portfolios on behalf of Retail Banking and RBS International and receives a management fee in respect of providing this service.
|
|
Private Banking delivered a resilient operating performance in the quarter, including strong balance growth, which supported a Q1 2021 return on equity of 12.4%. AUMA growth in the quarter included record investment inflows of £245 million into digital investment products: NatWest Invest, Royal Bank Invest and Coutts Invest, more than double the level seen in Q4 2020.
|
|
●
|
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. As at 31 March 2021, £61 million BBLS, £234 million CBILS and £44 million CLBILS had been approved.
|
●
|
Total income was £16 million, or 8.0%, lower than Q1 2020 primarily reflecting lower deposit returns partially offset by strong balance growth. Net interest margin decreased by 7 basis points compared with Q4 2020 reflecting lower deposit returns and higher liquidity portfolio costs.
|
●
|
Net loans to customers increased by £0.5 billion, or 2.9%, compared with Q4 2020 due to mortgage lending growth.
|
●
|
AUMAs increased by £0.5 billion, or 1.6%, compared with Q4 2020 reflecting positive investment performance of £0.1 billion and net new money inflows of £0.4 billion, which were impacted by EEA resident client outflows following the UK's exit from the EU.
|
Quarter ended
|
|||||||
31 March
|
31 December
|
31 March
|
|||||
2021
|
2020
|
2020
|
|||||
£m
|
£m
|
£m
|
|||||
Total income
|
941
|
951
|
1,008
|
||||
Operating expenses
|
(583)
|
(656)
|
(610)
|
||||
of which: Other expenses (excluding OLD)
|
(513)
|
(560)
|
(532)
|
||||
Impairment releases/(losses)
|
117
|
(10)
|
(435)
|
||||
Operating profit/(loss)
|
475
|
285
|
(37)
|
||||
Return on equity
|
14.9%
|
8.1%
|
(2.5%)
|
||||
Net interest margin
|
1.54%
|
1.56%
|
1.83%
|
||||
Cost:income ratio
|
60.5%
|
67.8%
|
59.1%
|
||||
Loan impairment rate
|
(43)bps
|
4bps
|
157bps
|
||||
As at
|
|||||||
31 March
|
31 December
|
||||||
2021
|
2020
|
||||||
£bn
|
£bn
|
||||||
Net loans to customers - amortised cost
|
106.6
|
108.2
|
|||||
Customer deposits
|
169.4
|
167.7
|
|||||
RWAs
|
71.6
|
75.1
|
Commercial Banking delivered a solid performance in Q1 2021 despite the continued impact of UK Government restrictions and a challenging operating environment. Commercial Banking will continue to play a key role in helping its customers recover and grow as the wider economy re-opens through Pay As You Grow, for existing Bounce Back Loan customers, and by supporting continued access to finance through the new Recovery Loan Scheme.
|
|
●
|
Commercial Banking continues to support customers through a comprehensive package of initiatives including participation in the UK Government's financial support schemes. As at 31 March 2021, £9.1 billion BBLS, £4.0 billion CBILS and £1.3 billion CLBILS had been approved and there were active payment holidays on c.8,900 customer accounts, representing 2% of the lending book by value, compared to 4% at the end of 2020.
|
●
|
Total income was £67 million, or 6.6%, lower than Q1 2020 reflecting lower deposit returns and subdued transactional business activity. Net interest margin decreased by 2 basis points compared with Q4 2020 mainly reflecting lower hedge returns.
|
●
|
Other expenses, excluding OLD, decreased by £19 million, or 3.6%, compared with Q1 2020 as cost reduction actions were partially offset by higher remediation costs and increased back office operations costs.
|
●
|
A net impairment release of £117 million in Q1 2021 mainly reflected a modest improvement in underlying portfolio credit metrics, with minimal Stage 3 defaults.
|
●
|
Net loans to customers decreased by £1.6 billion, or 1.5%, compared with Q4 2020 as lower SME & mid corporates lending and net RCF repayments of £0.3 billion were partially offset by £0.5 billion drawdowns against UK Government financial support schemes, including £0.3 billion related to BBLS and £0.2 billion related to CBILS. RCF utilisation remained stable with Q4 2020 at c.22% of committed facilities.
|
●
|
Customer deposits increased by £1.7 billion, or 1.0%, compared with Q4 2020 as customers continued to build and retain liquidity in light of economic uncertainty and the continued impact of UK Government initiatives.
|
●
|
RWAs decreased by £3.5 billion, or 4.7%, compared with Q4 2020 reflecting lower lending volumes, £0.6 billion active capital management, £0.5 billion lower operational risk and a £0.2 billion risk parameter improvement.
|
Quarter ended
|
|||||||
31 March
|
31 December
|
31 March
|
|||||
2021
|
2020
|
2020
|
|||||
£m
|
£m
|
£m
|
|||||
Total income
|
123
|
126
|
144
|
||||
Operating expenses
|
(57)
|
(112)
|
(61)
|
||||
of which: Other expenses
|
(52)
|
(73)
|
(60)
|
||||
Impairment releases/(losses)
|
2
|
(27)
|
(15)
|
||||
Operating profit/(loss)
|
68
|
(13)
|
68
|
||||
Return on equity
|
17.5%
|
(5.5%)
|
19.4%
|
||||
Net interest margin
|
1.06%
|
1.03%
|
1.45%
|
||||
Cost:income ratio
|
46.3%
|
88.9%
|
42.4%
|
||||
Loan impairment rate
|
(5)bps
|
81bps
|
44bps
|
||||
As at
|
|||||||
31 March
|
31 December
|
||||||
2021
|
2020
|
||||||
£bn
|
£bn
|
||||||
Net loans to customers - amortised cost
|
14.7
|
13.3
|
|||||
Customer deposits
|
33.3
|
31.3
|
|||||
RWAs
|
7.7
|
7.5
|
RBSI implemented a range of mobile and online banking enhancements, including the introduction of Cora for RBSI online and mobile, whilst continuing to support customers through the ongoing COVID-19 pandemic.
|
|
●
|
As at 31 March 2021, RBSI was supporting 106 mortgage repayment breaks, reflecting a mortgage value of £21 million, and was providing 226 business customers with working capital facilities, reflecting a value of £424 million, whilst continuing to suspend a range of fees and charges for its personal and business customers.
|
●
|
Total income was £21 million, or 14.6%, lower than Q1 2020 primarily reflecting the impact of the interest rate reductions on deposit income. Net interest margin increased by 3 basis points compared with Q4 2020 mainly reflecting higher average lending volumes in the Institutional Banking sector.
|
●
|
Other expenses were £8 million, or 13.3%, lower than Q1 2020 mainly reflecting lower project spend and an 11.1% reduction in headcount.
|
●
|
Net loans to customers increased by £1.4 billion, or 10.5%, compared with Q4 2020 reflecting incremental Funds business in the Institutional Banking sector.
|
●
|
Customer deposits increased by £2.0 billion, or 6.4%, compared with Q4 2020 due to an inflow of short term call deposits in the Institutional Banking sector as Funds customer activity increased.
|
Quarter ended
|
|||||||
31 March
|
31 December
|
31 March
|
|||||
2021
|
2020
|
2020
|
|||||
£m
|
£m
|
£m
|
|||||
Total income
|
189
|
73
|
543
|
||||
of which:
|
|||||||
- Income excluding asset disposals/strategic risk reduction and owncredit adjustments
|
191
|
124
|
388
|
||||
- Asset disposals/strategic risk reduction (2)
|
(4)
|
(8)
|
-
|
||||
- Own credit adjustments
|
2
|
(43)
|
155
|
||||
Operating expenses
|
(275)
|
(301)
|
(342)
|
||||
of which: Other expenses
|
(240)
|
(244)
|
(298)
|
||||
Impairment releases/(losses)
|
6
|
(2)
|
5
|
||||
Operating (loss)/profit
|
(80)
|
(230)
|
206
|
||||
Return on equity
|
(6.3%)
|
(15.0%)
|
8.7%
|
||||
Cost:income ratio
|
145.5%
|
nm
|
63.0%
|
As at
|
||||||
31 March
|
31 December
|
|||||
2021
|
2020
|
|||||
£bn
|
£bn
|
|||||
Funded Assets
|
105.7
|
105.9
|
||||
RWAs
|
26.5
|
26.9
|
NatWest Markets continued to make good progress on refocusing to better support NatWest Group's customers and to create a more sustainable business. During the quarter NatWest Markets maintained its strong performance in climate and sustainability financing delivering £3.0 billion of financing towards NatWest Group's 2021 target. Building on the momentum gained in 2020, further changes to simplify its operations were announced in the first quarter of 2021, including plans to consolidate its operational footprint in Asia. NatWest Markets also announced the last part of the One Bank strategy to bring teams and expertise together from across the bank.
|
|
●
|
Total income was £354 million, or 65.2%, lower than Q1 2020 reflecting more normalised levels of customer activity, with the prior period impacted by exceptional levels of market activity generated by the initial spread of the COVID-19 virus, a £153 million reduction in OCA, as credit spreads tightened, and disposal losses of £4 million in the current period.
|
●
|
Other expenses were £58 million, or 19.5%, lower than Q1 2020 reflecting continued reductions in line with the strategic announcement in February 2020.
|
●
|
RWAs decreased by £0.4 billion compared with Q4 2020 reflecting £0.6 billion lower counterparty credit risk and £0.5 billion lower credit risk partially offset by a £0.7 billion increase in market risk as customer activity increased from the seasonally lower level at the end of 2020.
|
Quarter ended
|
|||||||
31 March
|
31 December
|
31 March
|
|||||
2021
|
2020
|
2020
|
|||||
€m
|
€m
|
€m
|
|||||
Total income
|
142
|
144
|
150
|
||||
Operating expenses
|
(143)
|
(127)
|
(143)
|
||||
of which: Other expenses
|
(132)
|
(112)
|
(137)
|
||||
Impairment releases/(losses)
|
14
|
3
|
(32)
|
||||
Operating profit/(loss)
|
13
|
20
|
(25)
|
||||
Return on equity
|
2.6%
|
3.9%
|
(4.3%)
|
||||
Net interest margin
|
1.49%
|
1.48%
|
1.56%
|
||||
Cost:income ratio
|
100.7%
|
88.2%
|
95.3%
|
||||
Loan impairment rate
|
(27)bps
|
(6)bps
|
58bps
|
||||
|
As at
|
|||||||
31 March
|
31 December
|
||||||
2021
|
2020
|
||||||
€bn
|
€bn
|
||||||
Net loans to customers - amortised cost
|
19.8
|
20.0
|
|||||
Customer deposits
|
21.7
|
21.8
|
|||||
RWAs
|
13.1
|
13.2
|
Note:
(1) Ratios have been presented on a Euro basis. Comparatives have been restated.
|
|
Plans remain on track to proceed with a phased withdrawal from the Republic of Ireland over the coming years, which will be managed in an orderly and considered manner. Ulster Bank RoI remains open for business and continues to support its customers through this transition and challenges of COVID-19. Constructive discussions remain ongoing with Allied Irish Banks, p.l.c. for the sale of a c.€4.0 billion portfolio of performing commercial loans and continue with Permanent TSB Group Holdings p.l.c. among other strategic banking counterparties about their potential interest in other parts of the bank.
|
|
●
|
Total income was €8 million, or 5.3%, lower than Q1 2020 reflecting a reduction in lending volumes and fee income due to COVID-19, partly offset by an increase in FX gains. Net interest margin of 1.49% was broadly stable compared with Q4 2020.
|
●
|
Other expenses were €5 million, or 3.6%, lower than Q1 2020 due to a 6.9% reduction in headcount and lower back office operations costs, partly offset by increased government levies.
|
●
|
A net impairment release of €14 million in the quarter primarily reflects improvements in the mortgage portfolio.
|
●
|
Net loans to customers decreased by €0.2 billion, or 1.0%, compared with Q4 2020 as repayments continued to exceed gross new lending of €0.4 billion.
|
●
|
Customer deposits decreased by €0.1 billion, or 0.5%, compared with Q4 2020 mainly due to a reduction in commercial balances. The loan:deposit ratio remained broadly stable at 91%.
|
Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
£m
|
£m
|
£m
|
||||
Central items not allocated
|
(27)
|
(154)
|
(70)
|
●
|
A £27 million operating loss within central items not allocated mainly reflects a £118 million day one loss on redemption of own debt related to the repurchase of legacy instruments, which will result in annual net interest savings of c.£49 million, and strategic costs, largely offset by the £121 million share of gains under equity accounting for Business Growth Fund and other treasury income.
|
Quarter ended 31 March 2021
|
||||||||
International Banking & Markets
|
||||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
Central items
|
Total NatWest
|
|
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
& other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Income statement
|
||||||||
Net interest income
|
973
|
115
|
643
|
89
|
(7)
|
94
|
24
|
1,931
|
Non-interest income
|
83
|
70
|
298
|
34
|
194
|
30
|
17
|
726
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
2
|
-
|
-
|
2
|
Total income
|
1,056
|
185
|
941
|
123
|
189
|
124
|
41
|
2,659
|
Direct expenses
|
||||||||
- staff costs
|
(116)
|
(34)
|
(141)
|
(26)
|
(111)
|
(47)
|
(397)
|
(872)
|
- other costs
|
(61)
|
(9)
|
(66)
|
(13)
|
(29)
|
(23)
|
(566)
|
(767)
|
Indirect expenses
|
(380)
|
(79)
|
(341)
|
(13)
|
(100)
|
(45)
|
958
|
-
|
Strategic costs
|
||||||||
- direct
|
(11)
|
-
|
(26)
|
(4)
|
(30)
|
-
|
(89)
|
(160)
|
- indirect
|
(17)
|
(4)
|
(9)
|
(1)
|
(5)
|
(1)
|
37
|
-
|
Litigation and conduct costs
|
(2)
|
5
|
-
|
-
|
-
|
(9)
|
(10)
|
(16)
|
Operating expenses
|
(587)
|
(121)
|
(583)
|
(57)
|
(275)
|
(125)
|
(67)
|
(1,815)
|
Operating profit/(loss)before impairment (losses)/releases
|
469
|
64
|
358
|
66
|
(86)
|
(1)
|
(26)
|
844
|
Impairment (losses)/releases
|
(34)
|
-
|
117
|
2
|
6
|
12
|
(1)
|
102
|
Operating profit/(loss)
|
435
|
64
|
475
|
68
|
(80)
|
11
|
(27)
|
946
|
Additional information
|
||||||||
Return on equity (1)
|
23.0%
|
12.4%
|
14.9%
|
17.5%
|
(6.3%)
|
2.5%
|
nm
|
7.9%
|
Cost:income ratio (1)
|
55.6%
|
65.4%
|
60.5%
|
46.3%
|
145.5%
|
100.8%
|
nm
|
67.8%
|
Total assets (£bn)
|
199.2
|
26.9
|
187.1
|
36.7
|
226.8
|
25.9
|
67.2
|
769.8
|
Funded assets (£bn) (1)
|
199.2
|
26.9
|
187.1
|
36.7
|
105.7
|
25.9
|
65.3
|
646.8
|
Net loans to customers - amortised cost (£bn)
|
174.8
|
17.5
|
106.6
|
14.7
|
7.5
|
16.9
|
20.7
|
358.7
|
Loan impairment rate (1)
|
8bps
|
0bps
|
(43)bps
|
(5)bps
|
nm
|
(27)bps
|
nm
|
(11)bps
|
Impairment provisions (£bn)
|
(1.8)
|
(0.1)
|
(2.7)
|
(0.1)
|
(0.1)
|
(0.7)
|
(0.1)
|
(5.6)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
-
|
(0.9)
|
-
|
(0.1)
|
(0.5)
|
(0.1)
|
(2.4)
|
Customer deposits (£bn)
|
179.1
|
33.5
|
169.4
|
33.3
|
2.4
|
18.4
|
17.2
|
453.3
|
Risk-weighted assets (RWAs) (£bn)
|
35.0
|
11.2
|
71.6
|
7.7
|
26.5
|
11.1
|
1.6
|
164.7
|
RWA equivalent (RWAe) (£bn)
|
35.0
|
11.2
|
71.7
|
7.7
|
29.2
|
11.1
|
1.7
|
167.6
|
Employee numbers (FTEs - thousands)
|
15.8
|
1.9
|
9.5
|
1.6
|
2.1
|
2.7
|
26.0
|
59.6
|
Third party customer asset rate (2)
|
2.73%
|
2.36%
|
2.65%
|
2.29%
|
nm
|
2.35%
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.08%)
|
(0.00%)
|
(0.01%)
|
0.05%
|
nm
|
(0.06%)
|
nm
|
nm
|
Average interest earning assets (£bn) (1)
|
191.2
|
26.0
|
169.4
|
34.1
|
32.4
|
25.8
|
nm
|
512.2
|
Bank net interest margin (1)
|
2.06%
|
1.79%
|
1.54%
|
1.06%
|
na
|
1.48%
|
nm
|
1.64%
|
Quarter ended 31 December 2020
|
||||||||
International Banking & Markets
|
||||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
Central items
|
Total NatWest
|
|
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
& other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Income statement
|
||||||||
Net interest income
|
949
|
118
|
667
|
85
|
(2)
|
101
|
53
|
1,971
|
Non-interest income
|
25
|
66
|
284
|
41
|
118
|
30
|
43
|
607
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
(43)
|
-
|
-
|
(43)
|
Total income
|
974
|
184
|
951
|
126
|
73
|
131
|
96
|
2,535
|
Direct expenses
|
||||||||
- staff costs
|
(117)
|
(32)
|
(141)
|
(25)
|
(90)
|
(48)
|
(385)
|
(838)
|
- other costs
|
(56)
|
(16)
|
(72)
|
(16)
|
(21)
|
(21)
|
(781)
|
(983)
|
Indirect expenses
|
(393)
|
(71)
|
(382)
|
(32)
|
(133)
|
(31)
|
1,042
|
-
|
Strategic costs
|
||||||||
- direct
|
(6)
|
2
|
(35)
|
(37)
|
(50)
|
(3)
|
(197)
|
(326)
|
- indirect
|
(36)
|
(3)
|
(28)
|
(1)
|
(6)
|
(3)
|
77
|
-
|
Litigation and conduct costs
|
(210)
|
29
|
2
|
(1)
|
(1)
|
(8)
|
(5)
|
(194)
|
Operating expenses
|
(818)
|
(91)
|
(656)
|
(112)
|
(301)
|
(114)
|
(249)
|
(2,341)
|
Operating profit/(loss) before impairment (losses)/releases
|
156
|
93
|
295
|
14
|
(228)
|
17
|
(153)
|
194
|
Impairment (losses)/releases
|
(65)
|
(26)
|
(10)
|
(27)
|
(2)
|
1
|
(1)
|
(130)
|
Operating profit/(loss)
|
91
|
67
|
285
|
(13)
|
(230)
|
18
|
(154)
|
64
|
Additional information
|
||||||||
Return on equity (1)
|
3.8%
|
13.3%
|
8.1%
|
(5.5%)
|
(15.0%)
|
3.9%
|
nm
|
(1.4%)
|
Cost:income ratio (1)
|
84.0%
|
49.5%
|
67.8%
|
88.9%
|
nm
|
87.0%
|
nm
|
92.2%
|
Total assets (£bn)
|
197.6
|
26.2
|
187.4
|
34.0
|
270.1
|
26.6
|
57.6
|
799.5
|
Funded assets (£bn) (1)
|
197.6
|
26.2
|
187.4
|
34.0
|
105.9
|
26.6
|
55.3
|
633.0
|
Net loans to customers - amortised cost (£bn)
|
172.3
|
17.0
|
108.2
|
13.3
|
8.4
|
18.0
|
23.3
|
360.5
|
Loan impairment rate (1)
|
15bps
|
61bps
|
4bps
|
81bps
|
nm
|
(2)bps
|
nm
|
14bps
|
Impairment provisions (£bn)
|
(1.8)
|
(0.1)
|
(2.9)
|
(0.1)
|
(0.2)
|
(0.8)
|
(0.1)
|
(6.0)
|
Impairment provisions - stage 3 (£bn)
|
(0.8)
|
-
|
(1.1)
|
-
|
(0.1)
|
(0.5)
|
(0.1)
|
(2.6)
|
Customer deposits (£bn)
|
171.8
|
32.4
|
167.7
|
31.3
|
2.6
|
19.6
|
6.3
|
431.7
|
Risk-weighted assets (RWAs) (£bn)
|
36.7
|
10.9
|
75.1
|
7.5
|
26.9
|
11.8
|
1.4
|
170.3
|
RWA equivalent (RWAe) (£bn)
|
36.7
|
10.9
|
75.1
|
7.5
|
28.7
|
11.8
|
1.6
|
172.3
|
Employee numbers (FTEs - thousands)
|
16.0
|
1.8
|
9.6
|
1.7
|
2.2
|
2.7
|
25.9
|
59.9
|
Third party customer asset rate (2)
|
2.81%
|
2.38%
|
2.65%
|
2.34%
|
nm
|
2.33%
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.10%)
|
(0.01%)
|
(0.01%)
|
0.05%
|
nm
|
(0.07%)
|
nm
|
nm
|
Average interest earning assets (£bn) (1)
|
186.1
|
25.2
|
170.2
|
32.9
|
36.5
|
26.8
|
nm
|
509.6
|
Bank net interest margin (1)
|
2.03%
|
1.86%
|
1.56%
|
1.03%
|
na
|
1.50%
|
nm
|
1.66%
|
Quarter ended 31 March 2020
|
||||||||
International Banking & Markets
|
||||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
Central items
|
Total NatWest
|
|
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
& other
|
Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Income statement
|
||||||||
Net interest income
|
1,007
|
127
|
674
|
111
|
(40)
|
97
|
(34)
|
1,942
|
Non-interest income
|
143
|
74
|
334
|
33
|
428
|
32
|
21
|
1,065
|
Own credit adjustments
|
-
|
-
|
-
|
-
|
155
|
-
|
-
|
155
|
Total income
|
1,150
|
201
|
1,008
|
144
|
543
|
129
|
(13)
|
3,162
|
Direct expenses
|
||||||||
- staff costs
|
(135)
|
(39)
|
(174)
|
(32)
|
(167)
|
(48)
|
(324)
|
(919)
|
- other costs
|
(58)
|
(16)
|
(73)
|
(14)
|
(57)
|
(24)
|
(553)
|
(795)
|
Indirect expenses
|
(399)
|
(63)
|
(321)
|
(14)
|
(74)
|
(46)
|
917
|
-
|
Strategic costs
|
||||||||
- direct
|
-
|
-
|
(2)
|
(1)
|
(34)
|
(1)
|
(93)
|
(131)
|
- indirect
|
(34)
|
(5)
|
(39)
|
(3)
|
(8)
|
(4)
|
93
|
-
|
Litigation and conduct costs
|
97
|
-
|
(1)
|
3
|
(2)
|
-
|
(93)
|
4
|
Operating expenses
|
(529)
|
(123)
|
(610)
|
(61)
|
(342)
|
(123)
|
(53)
|
(1,841)
|
Operating profit/(loss) before impairment (losses)/releases
|
621
|
78
|
398
|
83
|
201
|
6
|
(66)
|
1,321
|
Impairment (losses)/releases
|
(297)
|
(29)
|
(435)
|
(15)
|
5
|
(27)
|
(4)
|
(802)
|
Operating profit/(loss)
|
324
|
49
|
(37)
|
68
|
206
|
(21)
|
(70)
|
519
|
Additional information
|
||||||||
Return on equity (1)
|
15.5%
|
9.8%
|
(2.5%)
|
19.4%
|
8.7%
|
(4.2%)
|
nm
|
3.6%
|
Cost:income ratio (1)
|
46.0%
|
61.2%
|
59.1%
|
42.4%
|
63.0%
|
95.3%
|
nm
|
57.7%
|
Total assets (£bn)
|
186.3
|
23.4
|
178.3
|
33.2
|
335.7
|
26.3
|
34.4
|
817.6
|
Funded assets (£bn) (1)
|
186.3
|
23.4
|
178.3
|
33.2
|
129.6
|
26.3
|
31.8
|
608.9
|
Net loans to customers - amortised cost (£bn)
|
163.7
|
15.8
|
109.2
|
13.6
|
12.2
|
18.7
|
18.1
|
351.3
|
Loan impairment rate (1)
|
72bps
|
73bps
|
157bps
|
44bps
|
nm
|
56bps
|
nm
|
90bps
|
Impairment provisions (£bn)
|
(1.6)
|
(0.1)
|
(1.7)
|
-
|
(0.1)
|
(0.7)
|
-
|
(4.2)
|
Impairment provisions - stage 3 (£bn)
|
(0.9)
|
-
|
(1.0)
|
-
|
(0.1)
|
(0.6)
|
-
|
(2.6)
|
Customer deposits (£bn)
|
152.8
|
29.0
|
143.9
|
32.3
|
5.7
|
19.3
|
1.8
|
384.8
|
Risk-weighted assets (RWAs) (£bn)
|
38.2
|
10.3
|
76.9
|
6.8
|
38.9
|
12.7
|
1.4
|
185.2
|
RWA equivalent (RWAe) (£bn)
|
38.2
|
10.3
|
77.0
|
7.1
|
42.2
|
12.7
|
1.7
|
189.2
|
Employee numbers (FTEs - thousands)
|
17.3
|
1.8
|
9.5
|
1.8
|
5.1
|
2.9
|
24.8
|
63.2
|
Third party customer asset rate (2)
|
3.07%
|
2.81%
|
3.22%
|
2.72%
|
nm
|
2.28%
|
nm
|
nm
|
Third party customer funding rate (2)
|
(0.36%)
|
(0.32%)
|
(0.18%)
|
(0.10%)
|
nm
|
(0.08%)
|
nm
|
nm
|
Average interest earning assets (£bn) (1)
|
177.4
|
22.7
|
148.4
|
30.9
|
36.1
|
24.9
|
nm
|
458.5
|
Bank net interest margin (1)
|
2.28%
|
2.25%
|
1.83%
|
1.45%
|
na
|
1.56%
|
nm
|
1.89%
|
Page
|
|
Credit risk
|
|
Segment analysis - portfolio summary
|
15
|
Segment analysis - loans
|
16
|
Movement in ECL provision
|
16
|
Sector analysis
|
17
|
Wholesale support schemes
|
18
|
Capital, liquidity and funding risk
|
19
|
International Banking & Markets
|
||||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
Central items
|
||
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
& other
|
Total
|
|
31 March 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Loans - amortised cost and FVOCI (1)
|
||||||||
Stage 1
|
150,004
|
16,024
|
72,202
|
13,857
|
6,865
|
13,342
|
24,730
|
297,024
|
Stage 2
|
24,569
|
1,876
|
34,572
|
2,089
|
1,413
|
3,274
|
111
|
67,904
|
Stage 3
|
1,957
|
295
|
2,399
|
202
|
111
|
1,141
|
-
|
6,105
|
Of which: individual
|
-
|
295
|
1,380
|
202
|
102
|
83
|
-
|
2,062
|
Of which: collective
|
1,957
|
-
|
1,019
|
-
|
9
|
1,058
|
-
|
4,043
|
176,530
|
18,195
|
109,173
|
16,148
|
8,389
|
17,757
|
24,841
|
371,033
|
|
ECL provisions (2)
|
||||||||
Stage 1
|
145
|
29
|
255
|
19
|
12
|
42
|
13
|
515
|
Stage 2
|
851
|
70
|
1,599
|
71
|
43
|
249
|
15
|
2,898
|
Stage 3
|
821
|
36
|
937
|
44
|
91
|
452
|
-
|
2,381
|
Of which: individual
|
-
|
36
|
494
|
44
|
82
|
14
|
-
|
670
|
Of which: collective
|
821
|
-
|
443
|
-
|
9
|
438
|
-
|
1,711
|
1,817
|
135
|
2,791
|
134
|
146
|
743
|
28
|
5,794
|
|
ECL provisions coverage (3,4)
|
||||||||
Stage 1 (%)
|
0.10
|
0.18
|
0.35
|
0.14
|
0.17
|
0.31
|
0.05
|
0.17
|
Stage 2 (%)
|
3.46
|
3.73
|
4.63
|
3.40
|
3.04
|
7.61
|
13.51
|
4.27
|
Stage 3 (%)
|
41.95
|
12.20
|
39.06
|
21.78
|
81.98
|
39.61
|
-
|
39.00
|
1.03
|
0.74
|
2.56
|
0.83
|
1.74
|
4.18
|
0.11
|
1.56
|
|
31 December 2020
|
||||||||
Loans - amortised cost and FVOCI (1)
|
||||||||
Stage 1
|
139,956
|
15,321
|
70,685
|
12,143
|
7,780
|
14,380
|
26,859
|
287,124
|
Stage 2
|
32,414
|
1,939
|
37,344
|
2,242
|
1,566
|
3,302
|
110
|
78,917
|
Stage 3
|
1,891
|
298
|
2,551
|
211
|
171
|
1,236
|
-
|
6,358
|
Of which: individual
|
-
|
298
|
1,578
|
211
|
162
|
43
|
-
|
2,292
|
Of which: collective
|
1,891
|
-
|
973
|
-
|
9
|
1,193
|
-
|
4,066
|
174,261
|
17,558
|
110,580
|
14,596
|
9,517
|
18,918
|
26,969
|
372,399
|
|
ECL provisions (2)
|
||||||||
Stage 1
|
134
|
31
|
270
|
14
|
12
|
45
|
13
|
519
|
Stage 2
|
897
|
68
|
1,713
|
74
|
49
|
265
|
15
|
3,081
|
Stage 3
|
806
|
39
|
1,069
|
48
|
132
|
492
|
-
|
2,586
|
Of which: individual
|
-
|
39
|
607
|
48
|
124
|
13
|
-
|
831
|
Of which: collective
|
806
|
-
|
462
|
-
|
8
|
479
|
-
|
1,755
|
1,837
|
138
|
3,052
|
136
|
193
|
802
|
28
|
6,186
|
|
ECL provisions coverage (3,4)
|
||||||||
Stage 1 (%)
|
0.10
|
0.20
|
0.38
|
0.12
|
0.15
|
0.31
|
0.05
|
0.18
|
Stage 2 (%)
|
2.77
|
3.51
|
4.59
|
3.30
|
3.13
|
8.03
|
13.64
|
3.90
|
Stage 3 (%)
|
42.62
|
13.09
|
41.91
|
22.75
|
77.19
|
39.81
|
-
|
40.67
|
1.05
|
0.79
|
2.76
|
0.93
|
2.03
|
4.24
|
0.10
|
1.66
|
ECL provision
|
|
£m
|
|
At 1 January 2021
|
6,186
|
Changes in economic forecasts
|
-
|
Changes in risk metrics and exposure: Stage 1 and Stage 2
|
(198)
|
Changes in risk metrics and exposure: Stage 3
|
58
|
Judgemental changes: changes in post model adjustments for Stage 1, Stage 2 and Stage 3
|
56
|
Write-offs and other
|
(308)
|
At 31 March 2021
|
5,794
|
Off-balance sheet
|
||||||||||||
Loans - amortised cost & FVOCI
|
Loan
|
Contingent
|
ECL provisions
|
|||||||||
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
commitments
|
liabilities
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|||
31 March 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
Personal
|
176,310
|
26,576
|
3,212
|
206,098
|
37,221
|
43
|
181
|
949
|
1,201
|
2,331
|
||
Mortgages
|
168,293
|
22,389
|
2,484
|
193,166
|
12,523
|
2
|
49
|
309
|
605
|
963
|
||
Credit cards
|
2,236
|
1,219
|
85
|
3,540
|
14,571
|
-
|
59
|
214
|
65
|
338
|
||
Other personal
|
5,781
|
2,968
|
643
|
9,392
|
10,127
|
41
|
73
|
426
|
531
|
1,030
|
||
Wholesale
|
120,714
|
41,328
|
2,893
|
164,935
|
85,777
|
4,327
|
334
|
1,949
|
1,180
|
3,463
|
||
Property
|
24,299
|
12,055
|
1,236
|
37,590
|
16,948
|
505
|
126
|
435
|
485
|
1,046
|
||
Financial institutions
|
43,392
|
3,317
|
13
|
46,722
|
14,220
|
947
|
24
|
94
|
7
|
125
|
||
Sovereign
|
4,949
|
116
|
9
|
5,074
|
1,428
|
2
|
17
|
1
|
1
|
19
|
||
Corporate
|
48,074
|
25,840
|
1,635
|
75,549
|
53,181
|
2,873
|
167
|
1,419
|
687
|
2,273
|
||
Of which:
|
||||||||||||
Airlines and aerospace
|
548
|
1,296
|
61
|
1,905
|
1,773
|
211
|
2
|
36
|
39
|
77
|
||
Automotive
|
4,376
|
1,760
|
124
|
6,260
|
4,173
|
97
|
15
|
67
|
16
|
98
|
||
Education
|
752
|
788
|
63
|
1,603
|
1,131
|
16
|
2
|
43
|
18
|
63
|
||
Health
|
2,880
|
2,624
|
176
|
5,680
|
670
|
13
|
13
|
202
|
51
|
266
|
||
Land transport and logistics
|
3,004
|
1,658
|
94
|
4,756
|
3,110
|
184
|
7
|
102
|
31
|
140
|
||
Leisure
|
3,335
|
5,746
|
336
|
9,417
|
2,223
|
123
|
18
|
362
|
153
|
533
|
||
Oil and gas
|
1,052
|
427
|
63
|
1,542
|
1,749
|
304
|
4
|
25
|
32
|
61
|
||
Retail
|
6,719
|
2,254
|
182
|
9,155
|
5,532
|
488
|
15
|
134
|
89
|
238
|
||
Total
|
297,024
|
67,904
|
6,105
|
371,033
|
122,998
|
4,370
|
515
|
2,898
|
2,381
|
5,794
|
||
31 December 2020
|
||||||||||||
Personal
|
166,548
|
34,352
|
3,288
|
204,188
|
38,960
|
45
|
171
|
996
|
1,228
|
2,395
|
||
Mortgages
|
158,387
|
29,571
|
2,558
|
190,516
|
14,554
|
3
|
51
|
319
|
635
|
1,005
|
||
Credit cards
|
2,411
|
1,375
|
109
|
3,895
|
14,262
|
-
|
53
|
225
|
76
|
354
|
||
Other personal
|
5,750
|
3,406
|
621
|
9,777
|
10,144
|
42
|
67
|
452
|
517
|
1,036
|
||
Wholesale
|
120,576
|
44,565
|
3,070
|
168,211
|
89,845
|
4,785
|
348
|
2,085
|
1,358
|
3,791
|
||
Property
|
23,733
|
13,021
|
1,322
|
38,076
|
16,829
|
568
|
123
|
507
|
545
|
1,175
|
||
Financial institutions
|
44,002
|
3,624
|
17
|
47,643
|
15,935
|
1,076
|
23
|
90
|
8
|
121
|
||
Sovereign
|
4,751
|
204
|
4
|
4,959
|
1,585
|
2
|
14
|
1
|
2
|
17
|
||
Corporate
|
48,090
|
27,716
|
1,727
|
77,533
|
55,496
|
3,139
|
188
|
1,487
|
803
|
2,478
|
||
Of which:
|
||||||||||||
Airlines and aerospace
|
753
|
1,213
|
41
|
2,007
|
1,888
|
215
|
2
|
42
|
25
|
69
|
||
Automotive
|
4,383
|
1,759
|
161
|
6,303
|
4,205
|
102
|
17
|
63
|
17
|
97
|
||
Education
|
821
|
754
|
63
|
1,638
|
1,016
|
16
|
2
|
41
|
17
|
60
|
||
Health
|
2,694
|
2,984
|
131
|
5,809
|
616
|
14
|
13
|
164
|
48
|
225
|
||
Land transport and logistics
|
2,868
|
1,823
|
111
|
4,802
|
3,782
|
197
|
8
|
98
|
32
|
138
|
||
Leisure
|
3,299
|
6,135
|
385
|
9,819
|
2,199
|
125
|
22
|
439
|
204
|
665
|
||
Oil and gas
|
1,178
|
300
|
83
|
1,561
|
2,225
|
346
|
4
|
20
|
59
|
83
|
||
Retail
|
6,702
|
2,282
|
187
|
9,171
|
5,888
|
512
|
18
|
112
|
101
|
231
|
||
Total
|
287,124
|
78,917
|
6,358
|
372,399
|
128,805
|
4,830
|
519
|
3,081
|
2,586
|
6,186
|
BBLS
|
CBILS
|
CLBILS
|
|||||||||
Approved
|
Drawdown
|
% of BBLS to
|
Approved
|
Drawdown
|
% of CBILS to
|
Approved
|
Drawdown
|
% of CLBILS to
|
|||
31 March 2021
|
volume
|
amount (£m)
|
sector loans
|
volume
|
amount (£m)
|
sector loans
|
volume
|
amount (£m)
|
sector loans
|
||
Wholesale lending by sector
|
|||||||||||
Airlines and aerospace
|
269
|
7
|
0.37%
|
20
|
9
|
0.47%
|
4
|
11
|
0.58%
|
||
Automotive
|
12,969
|
429
|
6.85%
|
584
|
150
|
2.40%
|
27
|
58
|
0.93%
|
||
Education
|
2,091
|
55
|
3.43%
|
120
|
76
|
4.74%
|
10
|
33
|
2.06%
|
||
Health
|
10,471
|
327
|
5.76%
|
621
|
100
|
1.76%
|
3
|
24
|
0.42%
|
||
Land transport and logistics
|
9,107
|
264
|
5.55%
|
392
|
102
|
2.14%
|
3
|
9
|
0.19%
|
||
Leisure
|
33,103
|
1,024
|
10.87%
|
2,162
|
565
|
6.00%
|
38
|
214
|
2.27%
|
||
Oil and gas
|
335
|
10
|
0.65%
|
14
|
7
|
0.45%
|
-
|
-
|
-
|
||
Retail
|
33,127
|
1,113
|
12.16%
|
1,638
|
430
|
4.70%
|
30
|
107
|
1.17%
|
||
Property
|
72,172
|
2,078
|
5.53%
|
2,465
|
692
|
1.84%
|
41
|
120
|
0.32%
|
||
Other (including Business
|
|||||||||||
Banking)
|
124,611
|
3,321
|
3.82%
|
8,798
|
1,873
|
2.15%
|
86
|
275
|
0.32%
|
||
Total
|
298,255
|
8,628
|
5.23%
|
16,814
|
4,004
|
2.43%
|
242
|
851
|
0.52%
|
||
31 December 2020
|
|||||||||||
Wholesale lending by sector
|
|||||||||||
Airlines and aerospace
|
253
|
7
|
0.35%
|
21
|
9
|
0.45%
|
4
|
8
|
0.40%
|
||
Automotive
|
12,301
|
416
|
6.60%
|
553
|
139
|
2.21%
|
31
|
58
|
0.92%
|
||
Education
|
1,943
|
53
|
3.24%
|
111
|
73
|
4.46%
|
11
|
37
|
2.26%
|
||
Health
|
9,821
|
314
|
5.41%
|
601
|
101
|
1.74%
|
3
|
24
|
0.41%
|
||
Land transport and logistics
|
8,575
|
255
|
5.31%
|
365
|
97
|
2.02%
|
3
|
5
|
0.10%
|
||
Leisure
|
31,148
|
989
|
10.07%
|
1,983
|
512
|
5.21%
|
34
|
173
|
1.76%
|
||
Oil and gas
|
303
|
9
|
0.58%
|
15
|
8
|
0.51%
|
-
|
-
|
-
|
||
Retail
|
31,315
|
1,078
|
11.75%
|
1,548
|
416
|
4.54%
|
29
|
121
|
1.32%
|
||
Property
|
67,698
|
1,996
|
5.24%
|
2,350
|
664
|
1.74%
|
41
|
133
|
0.35%
|
||
Other (including Business
|
|||||||||||
Banking)
|
118,486
|
3,181
|
3.57%
|
8,504
|
1,752
|
1.97%
|
86
|
267
|
0.30%
|
||
Total
|
281,843
|
8,298
|
4.93%
|
16,051
|
3,771
|
2.24%
|
242
|
826
|
0.49%
|
CET1
|
The CET1 ratio decreased by 30 basis points to 18.2% reflecting the impact of the directed buy back and associated pension contribution of £1.2 billion (72 basis points), foreseeable dividend accrual of £0.2 billion (11 basis points), partially offset by the reduction in RWAs (c.60 basis points), attributable profit and other reserve movements.
|
Total RWAs
|
Total RWAs decreased by £5.6 billion during the period, mainly reflecting a decrease in credit risk RWAs of £4.8 billion as well as a reduction in operational risk RWAs of £0.9 billion following the annual recalculation in Q1 2021. The decrease in credit risk RWAs was mainly driven by reductions in Commercial Banking, Retail Banking and Ulster Bank RoI. Counterparty credit risk RWAs reduced by £0.5 billion during the period as a result of reduced exposures in NatWest Markets. There were offsetting increases in market risk RWAs of £0.6 billion, mainly driven by higher SVaR-based RWAs.
|
CRR leverage ratio
|
The CRR leverage ratio decreased c.20 basis points to 5.0% predominantly due to a £1.0 billion decrease in Tier 1 capital in addition to an £11.2 billion increase in the leverage exposure driven primarily by cash and balances at central banks.
|
UK leverage ratio
|
The UK leverage ratio decreased c.20 basis points to 6.2% driven by a £1.0 billion decrease in Tier 1 capital.
|
Liquidity portfolio
|
The liquidity portfolio in Q1 2021 remained broadly stable at £263 billion, with primary liquidity decreasing by £0.3 billion to £170 billion. The decrease in primary liquidity was primarily driven by repayment of TFSME funding, buy back of shares owned by the UK Government, pension fund contributions, liability management exercise and the purchase of Metro Bank loans; offset by an increase in deposits and a methodology change to include UBI DAC cash at central banks. The increase in secondary liquidity of £0.7 billion is driven by unencumbrance of assets following TFSME repayment during the quarter.
|
Type
|
CET1
|
Total Tier 1
|
Total capital
|
|
Pillar 1 requirements
|
4.5%
|
6.0%
|
8.0%
|
|
Pillar 2A requirements
|
2.0%
|
2.6%
|
3.5%
|
|
Minimum Capital Requirements
|
6.5%
|
8.6%
|
11.5%
|
|
Capital conservation buffer
|
2.5%
|
2.5%
|
2.5%
|
|
Countercyclical capital buffer (1)
|
-
|
-
|
-
|
|
MDA Threshold (2)
|
9.0%
|
n/a
|
n/a
|
|
Subtotal
|
9.0%
|
11.1%
|
14.0%
|
|
Capital ratios at 31 March 2021
|
18.2%
|
21.5%
|
24.0%
|
|
Headroom (3)
|
9.2%
|
10.4%
|
10.0%
|
CRR basis (1)
|
|||
31 March
|
31 December
|
31 March
|
|
2021
|
2020
|
2020
|
|
Capital adequacy ratios
|
%
|
%
|
%
|
CET1
|
18.2
|
18.5
|
16.6
|
Tier 1
|
21.5
|
21.4
|
18.8
|
Total
|
24.0
|
24.5
|
21.4
|
Capital
|
£m
|
£m
|
£m
|
Tangible equity
|
30,126
|
31,712
|
32,990
|
Prudential valuation adjustment
|
(436)
|
(286)
|
(531)
|
Deferred tax assets
|
(750)
|
(760)
|
(722)
|
Own credit adjustments
|
6
|
(1)
|
(519)
|
Pension fund assets
|
(570)
|
(579)
|
(488)
|
Cash flow hedging reserve
|
38
|
(229)
|
(259)
|
Foreseeable ordinary dividends
|
(547)
|
(364)
|
-
|
Foreseeable charges
|
-
|
(266)
|
-
|
Prudential amortisation of software development costs
|
524
|
473
|
-
|
Adjustments under IFRS 9 transitional arrangements
|
1,655
|
1,747
|
296
|
Total deductions
|
(80)
|
(265)
|
(2,223)
|
CET1 capital
|
30,046
|
31,447
|
30,767
|
AT1 capital
|
5,380
|
4,983
|
4,051
|
Tier 1 capital
|
35,426
|
36,430
|
34,818
|
Tier 2 capital
|
4,118
|
5,255
|
4,883
|
Total regulatory capital
|
39,544
|
41,685
|
39,701
|
Risk-weighted assets
|
|||
Credit risk
|
125,131
|
129,914
|
136,354
|
Counterparty credit risk
|
8,579
|
9,104
|
13,917
|
Market risk
|
9,962
|
9,362
|
12,998
|
Operational risk
|
21,031
|
21,930
|
21,930
|
Total RWAs
|
164,703
|
170,310
|
185,199
|
Leverage
|
|||
Cash and balances at central banks*
|
140,347
|
124,489
|
81,085
|
Trading assets
|
65,558
|
68,990
|
81,843
|
Derivatives
|
122,955
|
166,523
|
208,734
|
Financial assets*
|
418,290
|
422,647
|
421,456
|
Other assets
|
22,626
|
16,842
|
24,526
|
Total assets
|
769,776
|
799,491
|
817,644
|
Derivatives
|
|||
- netting and variation margin
|
(126,250)
|
(172,658)
|
(220,973)
|
- potential future exposures
|
38,279
|
38,171
|
46,254
|
Securities financing transactions gross up
|
3,249
|
1,179
|
2,484
|
Other off balance sheet items
|
43,734
|
45,853
|
39,580
|
Regulatory deductions and other adjustments
|
(14,535)
|
(8,943)
|
(8,818)
|
CRR leverage exposure
|
714,253
|
703,093
|
676,171
|
CRR leverage ratio % (2)
|
5.0
|
5.2
|
5.1
|
UK leverage exposure
|
567,959
|
572,558
|
603,070
|
UK leverage ratio % (3)
|
6.2
|
6.4
|
5.8
|
CET1
|
AT1
|
Tier 2
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
|
At 1 January 2021
|
31,447
|
4,983
|
5,255
|
41,685
|
Attributable profit for the period
|
620
|
-
|
-
|
620
|
Own credit
|
7
|
-
|
-
|
7
|
Share capital and reserve movements in respect of employee share schemes
|
20
|
-
|
-
|
20
|
Directed buy back
|
(1,231)
|
-
|
-
|
(1,231)
|
Foreign exchange reserve
|
(348)
|
-
|
-
|
(348)
|
FVOCI reserve
|
(89)
|
-
|
-
|
(89)
|
Goodwill and intangibles deduction
|
40
|
-
|
-
|
40
|
Deferred tax assets
|
10
|
-
|
-
|
10
|
Prudential valuation adjustments
|
(150)
|
-
|
-
|
(150)
|
New issues of capital instruments
|
-
|
397
|
-
|
397
|
Redemption of capital instruments
|
-
|
-
|
(1,456)
|
(1,456)
|
Net dated subordinated debt instruments
|
-
|
-
|
453
|
453
|
Foreign exchange movements
|
-
|
-
|
(62)
|
(62)
|
Foreseeable ordinary dividends
|
(183)
|
-
|
-
|
(183)
|
Adjustment under IFRS 9 transitional arrangements
|
(92)
|
-
|
-
|
(92)
|
Other movements
|
(5)
|
-
|
(72)
|
(77)
|
At 31 March 2021
|
30,046
|
5,380
|
4,118
|
39,544
|
Counterparty
|
Operational
|
||||
Credit risk
|
credit risk
|
Market risk
|
risk
|
Total
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
At 1 January 2021
|
129.9
|
9.1
|
9.4
|
21.9
|
170.3
|
Foreign exchange movement
|
(1.1)
|
(0.2)
|
-
|
-
|
(1.3)
|
Business movement
|
(2.2)
|
(0.3)
|
0.9
|
(0.9)
|
(2.5)
|
Risk parameter changes (1)
|
(1.0)
|
-
|
-
|
-
|
(1.0)
|
Model updates
|
(0.5)
|
-
|
(0.3)
|
-
|
(0.8)
|
At 31 March 2021
|
125.1
|
8.6
|
10.0
|
21.0
|
164.7
|
International Banking & Markets
|
Central
|
|||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
items &
|
||
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
other
|
Total
|
|
Total RWAs
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
At 1 January 2021
|
36.7
|
10.9
|
75.1
|
7.5
|
26.9
|
11.8
|
1.4
|
170.3
|
Foreign exchange movement
|
-
|
-
|
(0.3)
|
(0.1)
|
(0.4)
|
(0.5)
|
-
|
(1.3)
|
Business movement
|
(0.9)
|
0.3
|
(2.5)
|
0.3
|
0.3
|
(0.2)
|
0.2
|
(2.5)
|
Risk parameter changes (1)
|
(0.8)
|
-
|
(0.2)
|
-
|
-
|
-
|
-
|
(1.0)
|
Model updates
|
-
|
-
|
(0.5)
|
-
|
(0.3)
|
-
|
-
|
(0.8)
|
At 31 March 2021
|
35.0
|
11.2
|
71.6
|
7.7
|
26.5
|
11.1
|
1.6
|
164.7
|
Credit risk
|
27.9
|
9.8
|
63.3
|
6.6
|
5.7
|
10.2
|
1.6
|
125.1
|
Counterparty credit risk
|
0.1
|
0.1
|
0.2
|
0.1
|
8.1
|
-
|
-
|
8.6
|
Market risk
|
-
|
-
|
0.1
|
-
|
9.9
|
-
|
-
|
10.0
|
Operational risk
|
7.0
|
1.3
|
8.0
|
1.0
|
2.8
|
0.9
|
-
|
21.0
|
Total RWAs
|
35.0
|
11.2
|
71.6
|
7.7
|
26.5
|
11.1
|
1.6
|
164.7
|
●
|
Total RWAs decreased by £5.6 billion during the period:
o Credit risk RWAs reduced by £4.8 billion mainly driven by a decrease in lending and active capital management in Commercial Banking along with lower unsecured balances and improved risk metrics for key customer portfolios within Retail Banking. In addition, favourable foreign exchange movements resulted in further reductions.
o Counterparty credit risk RWAs reduced by £0.5 billion, mainly reflecting reduced IMM exposures in NatWest Markets.
o The £0.6 billion increase in market risk RWAs reflected an increase in modelled market risk mainly driven by higher SVaR-based RWAs.
o Operational risk RWAs decreased by £0.9 billion following the annual recalculation in Q1 2021.
|
International Banking & Markets
|
|||||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
Central items
|
|||
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
& other
|
Total
|
||
31 March 2021
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
EAD
|
On balance sheet
|
265.8
|
25.2
|
153.9
|
37.0
|
31.3
|
26.7
|
1.1
|
541.0
|
Off balance sheet
|
26.9
|
0.3
|
28.5
|
4.4
|
4.9
|
2.1
|
0.1
|
67.2
|
|
Total
|
292.7
|
25.5
|
182.4
|
41.4
|
36.2
|
28.8
|
1.2
|
608.2
|
|
RWAs
|
On balance sheet
|
25.6
|
9.6
|
49.5
|
5.4
|
3.8
|
9.2
|
1.6
|
104.7
|
Off balance sheet
|
2.3
|
0.2
|
13.8
|
1.2
|
1.9
|
1.0
|
-
|
20.4
|
|
Total
|
27.9
|
9.8
|
63.3
|
6.6
|
5.7
|
10.2
|
1.6
|
125.1
|
|
31 December 2020
|
|||||||||
EAD
|
On balance sheet
|
254.7
|
23.7
|
151.4
|
34.0
|
33.4
|
27.4
|
0.9
|
525.5
|
Off balance sheet
|
28.3
|
0.3
|
29.3
|
5.1
|
5.5
|
2.2
|
0.1
|
70.8
|
|
Total
|
283.0
|
24.0
|
180.7
|
39.1
|
38.9
|
29.6
|
1.0
|
596.3
|
|
RWAs
|
On balance sheet
|
26.7
|
9.4
|
52.5
|
5.1
|
4.1
|
9.6
|
1.4
|
108.8
|
Off balance sheet
|
2.5
|
0.2
|
13.8
|
1.4
|
2.1
|
1.1
|
-
|
21.1
|
|
Total
|
29.2
|
9.6
|
66.3
|
6.5
|
6.2
|
10.7
|
1.4
|
129.9
|
|
31 March 2020
|
|||||||||
EAD
|
On balance sheet
|
225.3
|
20.3
|
140.3
|
32.9
|
36.9
|
27.0
|
0.5
|
483.2
|
Off balance sheet
|
29.1
|
0.3
|
25.4
|
4.0
|
7.2
|
2.1
|
0.5
|
68.6
|
|
Total
|
254.4
|
20.6
|
165.7
|
36.9
|
44.1
|
29.1
|
1.0
|
551.8
|
|
RWAs
|
On balance sheet
|
27.6
|
8.8
|
56.6
|
4.6
|
7.2
|
10.5
|
1.2
|
116.5
|
Off balance sheet
|
3.0
|
0.2
|
11.5
|
1.2
|
2.7
|
1.1
|
0.2
|
19.9
|
|
Total
|
30.6
|
9.0
|
68.1
|
5.8
|
9.9
|
11.6
|
1.4
|
136.4
|
Liquidity value
|
|||||
31 March 2021
|
30 December 2020
|
31 March 2020
|
|||
NatWest
|
NatWest
|
NatWest
|
|||
Group (1)
|
Group (1)
|
Group (1)
|
|||
£m
|
£m
|
£m
|
|||
Cash and balances at central banks
|
137,410
|
115,820
|
73,772
|
||
AAA to AA- rated governments
|
29,406
|
50,901
|
55,879
|
||
A+ and lower rated governments
|
7
|
79
|
1,362
|
||
Government guaranteed issuers, public sector entities and
|
|||||
government sponsored entities
|
250
|
272
|
225
|
||
International organisations and multilateral development banks
|
2,825
|
3,140
|
2,431
|
||
LCR level 1 bonds
|
32,488
|
54,392
|
59,897
|
||
LCR level 1 assets
|
169,898
|
170,212
|
133,669
|
||
LCR level 2 assets
|
114
|
124
|
-
|
||
Non-LCR eligible assets
|
-
|
-
|
82
|
||
Primary liquidity
|
170,012
|
170,336
|
133,751
|
||
Secondary liquidity (2)
|
92,665
|
91,985
|
67,668
|
||
Total liquidity value
|
262,677
|
262,321
|
201,419
|
(1)
|
NatWest Group includes the UK Domestic Liquidity Sub-Group (NWB Plc, RBS plc, Coutts & Co and Ulster Bank Limited), NatWest Markets Plc and other significant operating subsidiaries that hold liquidity portfolios. These include The Royal Bank of Scotland International Limited, NWM N.V. and Ulster Bank Ireland DAC who hold managed portfolios that comply with local regulations that may differ from PRA rules.
|
(2)
(3)
|
Comprises assets eligible for discounting at the Bank of England and other central banks.
Following a change in methodology in our internal stressed outflow coverage metric, cash placed at Central Bank of Ireland within UBI DAC is now reported in the liquidity portfolio.
|
Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
£m
|
£m
|
£m
|
||||
Interest receivable
|
2,349
|
2,369
|
2,683
|
|||
Interest payable
|
(418)
|
(398)
|
(741)
|
|||
Net interest income
|
1,931
|
1,971
|
1,942
|
|||
Fees and commissions receivable
|
647
|
653
|
748
|
|||
Fees and commissions payable
|
(141)
|
(131)
|
(175)
|
|||
Income from trading activities
|
160
|
71
|
592
|
|||
Other operating income (1)
|
62
|
(29)
|
55
|
|||
Non-interest income
|
728
|
564
|
1,220
|
|||
Total income
|
2,659
|
2,535
|
3,162
|
|||
Staff costs
|
(985)
|
(986)
|
(992)
|
|||
Premises and equipment
|
(248)
|
(321)
|
(258)
|
|||
Other administrative expenses
|
(377)
|
(764)
|
(398)
|
|||
Depreciation and amortisation
|
(205)
|
(270)
|
(193)
|
|||
Operating expenses
|
(1,815)
|
(2,341)
|
(1,841)
|
|||
Profit before impairment releases/(losses)
|
844
|
194
|
1,321
|
|||
Impairment releases/(losses)
|
102
|
(130)
|
(802)
|
|||
Operating profit before tax
|
946
|
64
|
519
|
|||
Tax charge
|
(233)
|
(84)
|
(188)
|
|||
Profit/(loss) for the period
|
713
|
(20)
|
331
|
|||
Attributable to:
|
||||||
Ordinary shareholders
|
620
|
(109)
|
288
|
|||
Preference shareholders
|
5
|
5
|
8
|
|||
Paid-in equity holders
|
87
|
83
|
97
|
|||
Non-controlling interests
|
1
|
1
|
(62)
|
|||
Earnings per ordinary share
|
5.1p
|
(0.9)p
|
2.4p
|
|||
Earnings per ordinary share - fully diluted
|
5.1p
|
(0.9)p
|
2.4p
|
Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
£m
|
£m
|
£m
|
||||
Profit/(loss) for the period
|
713
|
(20)
|
331
|
|||
Items that do not qualify for reclassification
|
||||||
Remeasurement of retirement benefit schemes (1)
|
(508)
|
(50)
|
(22)
|
|||
(Loss)/profit on fair value of credit in financial liabilities
|
||||||
designated as at FVTPL due to own credit risk
|
(7)
|
(72)
|
188
|
|||
FVOCI financial assets
|
1
|
(21)
|
(253)
|
|||
Tax (1)
|
137
|
29
|
-
|
|||
(377)
|
(114)
|
(87)
|
||||
Items that do qualify for reclassification
|
||||||
FVOCI financial assets
|
(118)
|
81
|
(143)
|
|||
Cash flow hedges
|
(358)
|
(93)
|
312
|
|||
Currency translation
|
(343)
|
(149)
|
358
|
|||
Tax
|
113
|
(4)
|
(53)
|
|||
(706)
|
(165)
|
474
|
||||
Other comprehensive (loss)/income after tax
|
(1,083)
|
(279)
|
387
|
|||
Total comprehensive (loss)/income for the period
|
(370)
|
(299)
|
718
|
|||
Attributable to:
|
||||||
Ordinary shareholders
|
(463)
|
(389)
|
662
|
|||
Preference shareholders
|
5
|
5
|
8
|
|||
Paid-in equity holders
|
87
|
83
|
97
|
|||
Non-controlling interests
|
1
|
2
|
(49)
|
|||
(370)
|
(299)
|
718
|
31 March
|
31 December
|
31 March
|
|
2021
|
2020
|
2020
|
|
£m
|
£m
|
£m
|
|
Assets
|
|||
Cash and balances at central banks*
|
140,347
|
124,489
|
81,085
|
Trading assets
|
65,558
|
68,990
|
81,843
|
Derivatives
|
122,955
|
166,523
|
208,734
|
Settlement balances
|
8,013
|
2,297
|
9,840
|
Loans to banks - amortised cost*
|
7,239
|
6,955
|
9,306
|
Loans to customers - amortised cost
|
358,728
|
360,544
|
351,328
|
Other financial assets
|
52,323
|
55,148
|
60,822
|
Intangible assets
|
6,666
|
6,655
|
6,619
|
Other assets
|
7,947
|
7,890
|
8,067
|
Total assets
|
769,776
|
799,491
|
817,644
|
Liabilities
|
|||
Bank deposits
|
18,610
|
20,606
|
26,733
|
Customer deposits
|
453,308
|
431,739
|
384,800
|
Settlement balances
|
8,234
|
5,545
|
8,905
|
Trading liabilities
|
70,508
|
72,256
|
80,767
|
Derivatives
|
116,015
|
160,705
|
204,477
|
Other financial liabilities
|
43,743
|
45,811
|
47,870
|
Subordinated liabilities
|
8,078
|
9,962
|
10,898
|
Notes in circulation
|
2,705
|
2,655
|
2,009
|
Other liabilities
|
5,926
|
6,388
|
7,062
|
Total liabilities
|
727,127
|
755,667
|
773,521
|
Equity
|
|||
Ordinary shareholders' interests
|
36,792
|
38,367
|
39,609
|
Other owners' interests
|
5,892
|
5,493
|
4,554
|
Owners' equity
|
42,684
|
43,860
|
44,163
|
Non-controlling interests
|
(35)
|
(36)
|
(40)
|
Total equity
|
42,649
|
43,824
|
44,123
|
Total liabilities and equity
|
769,776
|
799,491
|
817,644
|
Share
|
|||||||
capital and
|
Total
|
Non
|
|||||
statutory
|
Paid-in
|
Retained
|
Other
|
owners'
|
controlling
|
Total
|
|
reserves (1)
|
equity
|
earnings
|
reserves*
|
equity
|
interests
|
equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
At 1 January 2021
|
13,216
|
4,999
|
12,567
|
13,078
|
43,860
|
(36)
|
43,824
|
Profit attributable to ordinary shareholders
|
|||||||
and other equity owners
|
-
|
-
|
712
|
-
|
712
|
1
|
713
|
Other comprehensive income
|
|||||||
- Realised gains in period
|
|||||||
on FVOCI equity shares
|
-
|
-
|
(3)
|
3
|
-
|
-
|
-
|
- Remeasurement of retirement
|
|||||||
benefit schemes (2)
|
-
|
-
|
(508)
|
-
|
(508)
|
-
|
(508)
|
- Changes in fair value of credit in financial
|
|||||||
liabilities at FVTPL
|
-
|
-
|
(7)
|
-
|
(7)
|
-
|
(7)
|
- Other amounts recognised in equity
|
-
|
-
|
-
|
(799)
|
(799)
|
-
|
(799)
|
- Amount transferred from equity to earnings
|
-
|
-
|
-
|
(19)
|
(19)
|
-
|
(19)
|
- Tax
|
-
|
-
|
139
|
111
|
250
|
-
|
250
|
Preference share and paid-in equity
|
|||||||
dividends paid
|
-
|
-
|
(92)
|
-
|
(92)
|
-
|
(92)
|
Shares repurchased during the year (3)
|
-
|
-
|
(748)
|
-
|
(748)
|
-
|
(748)
|
Shares and securities issued during the year (4)
|
87
|
399
|
-
|
-
|
486
|
-
|
486
|
Share-based payments
|
-
|
-
|
(67)
|
-
|
(67)
|
-
|
(67)
|
Movement in own shares held (3)
|
(384)
|
-
|
-
|
-
|
(384)
|
-
|
(384)
|
At 31 March 2021
|
12,919
|
5,398
|
11,993
|
12,374
|
42,684
|
(35)
|
42,649
|
31 March
|
|||||||
2021
|
|||||||
Attributable to:
|
£m
|
||||||
Ordinary shareholders
|
36,792
|
||||||
Preference shareholders
|
494
|
||||||
Paid-in equity holders
|
5,398
|
||||||
Non-controlling interests
|
(35)
|
||||||
42,649
|
|||||||
*Other reserves consists of:
|
|||||||
Merger reserve
|
10,881
|
||||||
FVOCI reserve
|
271
|
||||||
Cash flow hedging reserve
|
(38)
|
||||||
Foreign exchange reserve
|
1,260
|
||||||
12,374
|
Analyst enquiries:
|
Alexander Holcroft, Investor Relations
|
+44 (0) 20 7672 1758
|
||
Media enquiries:
|
NatWest Group Press Office
|
+44 (0) 131 523 4205
|
||
Management presentation
|
Webcast and dial in details
|
|||
Date:
|
29 April 2021
|
www.natwestgroup.com/results
|
||
Time:
|
9am UK time
|
International: +44 (0) 203 057 6566
|
||
Conference ID:
|
8242757
|
UK Free Call: 0800 279 5995
US Local Dial-In, New York: +1 646 741 2115
|
||
Measure
|
Basis of preparation
|
Additional analysis or reconciliation
|
NatWest Group return on tangible equity
|
Annualised profit or loss for the period attributable to ordinary shareholders divided by average tangible equity. Average tangible equity is average total equity excluding non-controlling interests (NCI) less average intangible assets and average other owners' equity.
|
Table 1
|
Segmental return on equity
|
Segmental operating profit or loss adjusted for preference share dividends and tax divided by average notional tangible 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, operating lease depreciation, strategic costs and litigation and conduct costs.
|
Notable items - page 5, Operating lease depreciation,
Strategic costs and litigation and conduct costs - pages 12 to 14
|
Net lending in the retail and commercial business
|
Comprises customer loans in the Retail Banking, Commercial Banking, Private Banking and RBS International operating segments, excluding UK Government support schemes.
|
Pages 1 and 4
|
Bank net interest margin (NIM)
|
Net interest income of the banking business less NatWest Markets (NWM) element as a percentage of average 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 (excluding own shares held). Tangible equity is ordinary shareholders' equity less intangible assets.
|
Page 3
|
NIM
|
Net interest income as a percentage of average interest-earning assets.
|
Page 3
|
Funded assets
|
Total assets less derivatives.
|
Pages 12 to 14
|
ECL loss rate
|
The annualised loan impairment charge divided by gross customer loans.
|
Pages 12 to 14
|
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 12 to 14
|
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, debt securities in issue and subordinated liabilities.
|
Pages 12 to 14
|
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 7
|
Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
Profit/(loss) attributable to ordinary shareholders (£m)
|
620
|
(109)
|
288
|
|||
Annualised profit/(loss) attributable to ordinary
|
||||||
shareholders (£m)
|
2,480
|
(436)
|
1,152
|
|||
Average total equity excluding NCI (£m)
|
43,566
|
43,648
|
44,018
|
|||
Adjustment for other owners' equity and intangibles (£m)
|
(12,333)
|
(11,895)
|
(11,911)
|
|||
Adjusted total tangible equity (£m)
|
31,233
|
31,753
|
32,107
|
|||
Return on tangible equity (%)
|
7.9%
|
(1.4%)
|
3.6%
|
International Banking & Markets
|
||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
|
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
|
Quarter ended 31 March 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Operating profit/(loss) (£m)
|
435
|
64
|
475
|
68
|
(80)
|
11
|
Preference share cost allocation (£m)
|
(20)
|
(5)
|
(38)
|
(5)
|
(16)
|
-
|
Adjustment for tax (£m)
|
(116)
|
(17)
|
(122)
|
(11)
|
27
|
-
|
Adjusted attributable profit/(loss) (£m)
|
299
|
42
|
315
|
52
|
(69)
|
11
|
Annualised adjusted attributable profit/(loss) (£m)
|
1,196
|
168
|
1,260
|
208
|
(276)
|
44
|
Average RWAe (£bn)
|
35.8
|
11.0
|
73.6
|
7.4
|
29.2
|
11.4
|
Equity factor
|
14.5%
|
12.5%
|
11.5%
|
16.0%
|
15.0%
|
15.5%
|
RWAe applying equity factor (£bn)
|
5.2
|
1.4
|
8.5
|
1.2
|
4.4
|
1.8
|
Return on equity
|
23.0%
|
12.4%
|
14.9%
|
17.5%
|
(6.3%)
|
2.5%
|
Quarter ended 31 December 2020
|
||||||
Operating profit/(loss) (£m)
|
91
|
67
|
285
|
(13)
|
(230)
|
18
|
Preference share cost allocation (£m)
|
(22)
|
(5)
|
(38)
|
(5)
|
(17)
|
-
|
Adjustment for tax (£m)
|
(19)
|
(17)
|
(69)
|
3
|
69
|
-
|
Adjusted attributable profit/(loss)(£m)
|
50
|
45
|
178
|
(15)
|
(178)
|
18
|
Annualised adjusted attributable profit/(loss) (£m)
|
200
|
180
|
712
|
(60)
|
(712)
|
72
|
Average RWAe (£bn)
|
36.1
|
10.7
|
75.9
|
7.1
|
31.5
|
11.9
|
Equity factor
|
14.5%
|
12.5%
|
11.5%
|
16.0%
|
15.0%
|
15.5%
|
RWAe applying equity factor (£bn)
|
5.2
|
1.3
|
8.7
|
1.1
|
4.7
|
1.8
|
Return on equity
|
3.8%
|
13.3%
|
8.1%
|
(5.5%)
|
(15.0%)
|
3.9%
|
Quarter ended 31 March 2020
|
||||||
Operating profit/(loss) (£m)
|
324
|
49
|
(37)
|
68
|
206
|
(21)
|
Preference share cost allocation (£m)
|
(22)
|
(6)
|
(38)
|
(5)
|
(17)
|
-
|
Adjustment for tax (£m)
|
(85)
|
(12)
|
21
|
(9)
|
(53)
|
-
|
Adjusted attributable profit/(loss) (£m)
|
217
|
31
|
(54)
|
54
|
136
|
(21)
|
Annualised adjusted attributable profit/(loss) (£m)
|
868
|
124
|
(216)
|
216
|
544
|
(84)
|
Average RWAe (£bn)
|
38.7
|
10.2
|
74.1
|
7.0
|
41.9
|
12.8
|
Equity factor
|
14.5%
|
12.5%
|
11.5%
|
16.0%
|
15.0%
|
15.5%
|
RWAe applying equity factor (£bn)
|
5.6
|
1.3
|
8.5
|
1.1
|
6.3
|
2.0
|
Return on equity
|
15.5%
|
9.8%
|
(2.5%)
|
19.4%
|
8.7%
|
(4.2%)
|
Statutory analysis (1,2)
|
||||||
Quarter ended
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
Operating expenses
|
£m
|
£m
|
£m
|
|||
Staff costs
|
985
|
986
|
992
|
|||
Premises and equipment
|
248
|
321
|
258
|
|||
Other administrative expenses
|
377
|
764
|
398
|
|||
Depreciation and amortisation
|
205
|
270
|
193
|
|||
Total operating expenses
|
1,815
|
2,341
|
1,841
|
Non-statutory analysis
|
||||
Quarter ended
|
||||
31 March 2021
|
||||
Litigation
|
||||
and
|
Statutory
|
|||
Strategic
|
conduct
|
Other
|
operating
|
|
Operating expenses
|
costs
|
costs
|
expenses
|
expenses
|
Staff costs
|
111
|
-
|
874
|
985
|
Premises and equipment
|
16
|
-
|
232
|
248
|
Other administrative expenses
|
23
|
16
|
338
|
377
|
Depreciation and amortisation
|
10
|
-
|
195
|
205
|
Total
|
160
|
16
|
1,639
|
1,815
|
Quarter ended
|
||||
31 December 2020
|
||||
Litigation
|
||||
and
|
Statutory
|
|||
Strategic
|
conduct
|
Other
|
operating
|
|
Operating expenses
|
costs
|
costs
|
expenses
|
expenses
|
Staff costs
|
147
|
-
|
839
|
986
|
Premises and equipment
|
63
|
-
|
258
|
321
|
Other administrative expenses
|
54
|
194
|
516
|
764
|
Depreciation and amortisation
|
62
|
-
|
208
|
270
|
Total
|
326
|
194
|
1,821
|
2,341
|
Quarter ended
|
||||
31 March 2020
|
||||
Litigation
|
||||
and
|
Statutory
|
|||
Strategic
|
conduct
|
Other
|
operating
|
|
Operating expenses
|
costs
|
costs
|
expenses
|
expenses
|
Staff costs
|
73
|
-
|
919
|
992
|
Premises and equipment
|
13
|
-
|
245
|
258
|
Other administrative expenses
|
43
|
(4)
|
359
|
398
|
Depreciation and amortisation
|
2
|
-
|
191
|
193
|
Total
|
131
|
(4)
|
1,714
|
1,841
|
International Banking & Markets
|
Central
|
Total
|
||||||
Retail
|
Private
|
Commercial
|
RBS
|
NatWest
|
Ulster
|
items
|
NatWest
|
|
Banking
|
Banking
|
Banking
|
International
|
Markets
|
Bank RoI
|
& other
|
Group
|
|
Quarter ended 31 March 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Operating expenses
|
(587)
|
(121)
|
(583)
|
(57)
|
(275)
|
(125)
|
(67)
|
(1,815)
|
Operating lease depreciation
|
-
|
-
|
35
|
-
|
-
|
-
|
-
|
35
|
Adjusted operating expenses
|
(587)
|
(121)
|
(548)
|
(57)
|
(275)
|
(125)
|
(67)
|
(1,780)
|
Total income
|
1,056
|
185
|
941
|
123
|
189
|
124
|
41
|
2,659
|
Operating lease depreciation
|
-
|
-
|
(35)
|
-
|
-
|
-
|
-
|
(35)
|
Adjusted total income
|
1,056
|
185
|
906
|
123
|
189
|
124
|
41
|
2,624
|
Cost:income ratio
|
55.6%
|
65.4%
|
60.5%
|
46.3%
|
145.5%
|
100.8%
|
nm
|
67.8%
|
Quarter ended 31 December 2020
|
||||||||
Operating expenses
|
(818)
|
(91)
|
(656)
|
(112)
|
(301)
|
(114)
|
(249)
|
(2,341)
|
Operating lease depreciation
|
-
|
-
|
35
|
-
|
-
|
-
|
-
|
35
|
Adjusted operating expenses
|
(818)
|
(91)
|
(621)
|
(112)
|
(301)
|
(114)
|
(249)
|
(2,306)
|
Total income
|
974
|
184
|
951
|
126
|
73
|
131
|
96
|
2,535
|
Operating lease depreciation
|
-
|
-
|
(35)
|
-
|
-
|
-
|
-
|
(35)
|
Adjusted total income
|
974
|
184
|
916
|
126
|
73
|
131
|
96
|
2,500
|
Cost:income ratio
|
84.0%
|
49.5%
|
67.8%
|
88.9%
|
nm
|
87.0%
|
nm
|
92.2%
|
Quarter ended 31 March 2020
|
||||||||
Operating expenses
|
(529)
|
(123)
|
(610)
|
(61)
|
(342)
|
(123)
|
(53)
|
(1,841)
|
Operating lease depreciation
|
-
|
-
|
36
|
-
|
-
|
-
|
-
|
36
|
Adjusted operating expenses
|
(529)
|
(123)
|
(574)
|
(61)
|
(342)
|
(123)
|
(53)
|
(1,805)
|
Total income
|
1,150
|
201
|
1,008
|
144
|
543
|
129
|
(13)
|
3,162
|
Operating lease depreciation
|
-
|
-
|
(36)
|
-
|
-
|
-
|
-
|
(36)
|
Adjusted total income
|
1,150
|
201
|
972
|
144
|
543
|
129
|
(13)
|
3,126
|
Cost:income ratio
|
46.0%
|
61.2%
|
59.1%
|
42.4%
|
63.0%
|
95.3%
|
nm
|
57.7%
|
Quarter ended or as at
|
||||||
31 March
|
31 December
|
31 March
|
||||
2021
|
2020
|
2020
|
||||
£m
|
£m
|
£m
|
||||
NatWest Group net interest income
|
1,931
|
1,971
|
1,942
|
|||
Less: NWM net interest income
|
7
|
2
|
40
|
|||
Net interest income excluding NWM
|
1,938
|
1,973
|
1,982
|
|||
Annualised net interest income
|
7,831
|
7,820
|
7,811
|
|||
Annualised net interest income excluding NWM
|
7,860
|
7,828
|
7,972
|
|||
Average interest earning assets (IEA)
|
512,237
|
509,598
|
458,514
|
|||
NWM average IEA
|
32,429
|
36,515
|
36,113
|
|||
Bank average IEA excluding NWM
|
479,808
|
473,083
|
422,401
|
|||
Net interest margin
|
1.53%
|
1.54%
|
1.70%
|
|||
Bank net interest margin (NatWest Group NIM excluding NWM)
|
1.64%
|
1.66%
|
1.89%
|
As at
|
|||
31 March
|
31 December
|
31 March
|
|
2021
|
2020
|
2020
|
|
£m
|
£m
|
£m
|
|
Loans to customers - amortised cost
|
358,728
|
360,544
|
351,328
|
Customer deposits
|
453,308
|
431,739
|
384,800
|
Loan:deposit ratio (%)
|
79%
|
84%
|
91%
|
NATWEST GROUP plc (Registrant)
|
|
By: /s/ Jan Cargill
|
|
Name: Jan Cargill
|
|
Title: Chief Governance Officer and Company Secretary
|