NatWest Group announced a significant increase in its full-year operating pre-tax profit for 2025, reaching £7.71 billion, a 24% rise from the £6.20 billion reported in 2024. This performance surpassed consensus estimates, reflecting broad-based growth across its key business segments. Total income for the group also saw a healthy increase, climbing 13% to £16.64 billion, exceeding analyst expectations of £16.53 billion.
The strong results were largely attributed to the solid performance of its retail and wealth management divisions. The Retail Banking segment recorded a 15% gain in total income, reaching £6.50 billion. Similarly, the Private Banking & Wealth Management division experienced a substantial 17% increase in total income, growing from £969 million to £1.31 billion. These segments were bolstered by factors such as deposit margin expansion, higher customer balances, increased lending, and growth in Assets Under Management (AUMA).
NatWest's strategic initiatives, including a focus on high net worth individuals and the acquisition of Evelyn Partners, contributed to the positive outcomes. The acquisition of Evelyn Partners is set to create the UK's leading private bank and wealth management business, further strengthening NatWest's third customer business. The company also highlighted improved customer experiences through new AI capabilities, which reduced response times for complaints and call summarization in its wealth management unit. Dividends per share increased by 51% compared to 2024, and the Return on Tangible Equity (RoTE) reached 19.2%, exceeding guidance.
