NatWest Group PLC told investors that 2025 profit and income rose sharply, allowing it to hike shareholder returns again and tee up a fresh £750 million share buyback for the first half of 2026, as the UK lender raised its medium-term ambitions and set out new financial targets.
The bank reported total income of £16.4 billion, up 12% year-on-year, helped by deposit margin expansion, stronger structural hedge income and lending growth. Return on tangible equity increased to 19.2%, while earnings per share rose 27% to 68.0p. Profit attributable to ordinary shareholders was £5.5 billion, and profit before tax was £7.7 billion, Natwest revealed in Friday's results statement.
Capital and liquidity metrics remained supportive. NatWest ended the year with a CET1 ratio of 14%, up around 40 basis points, and an average liquidity coverage ratio of 147%. It also highlighted active balance sheet actions, citing £10.9 billion of RWA management benefits during the year.
For shareholders, NatWest proposed a final dividend of 23.0p, taking the full-year dividend to 32.5p, a 51% increase on 2024. The bank said it intends to begin a £750 million buyback in H1 2026, taking total distributions deducted from capital in 2025 to £4.1 billion.
"We delivered broad-based growth across our three customer businesses, and our positive impact is clear to see; whether making home ownership a reality for more people, helping more customers to save and invest or supporting more businesses to scale and grow," chief executive Paul Thwaite said.
"It is clear our strategy is working, and we are delivering consistently. We are raising our ambition and sharpening our strategic focus, with stretching new targets in place."
Looking ahead, NatWest guided to 2026 income (excluding notable items) of £17.2–£17.6 billion, with operating expenses (excluding litigation and conduct) around £8.2 billion and RoTE above 17%. It also set 2028 targets, including a cost:income ratio below 45% and RoTE above 18%, while stating it now targets a CET1 ratio around 13% and expects to pay ordinary dividends of around 50% of attributable profit, with buybacks considered as appropriate.