Business performance
summary
The table below presents an analysis
of key lines of NWM Group's income statement. Commentary refers to
the table below as well as the consolidated income statement shown
on page 5.
|
|
Year ended
|
|
Quarter
ended
|
|
|
31 December
|
31 December
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2023
|
|
2024
|
2024
|
2023
|
|
Income statement
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Net interest income
|
432
|
355
|
|
85
|
110
|
154
|
|
Non-interest income
|
805
|
714
|
|
218
|
174
|
270
|
|
Total income
|
1,237
|
1,069
|
|
303
|
284
|
424
|
|
Litigation and conduct
costs
|
(102)
|
(60)
|
|
(41)
|
(23)
|
(31)
|
|
Other operating expenses
|
(1,106)
|
(1,082)
|
|
(321)
|
(231)
|
(283)
|
|
Operating expenses
|
(1,208)
|
(1,142)
|
|
(362)
|
(254)
|
(314)
|
|
Operating profit/(loss) before impairment
|
|
|
|
|
|
|
|
releases/losses
|
29
|
(73)
|
|
(59)
|
30
|
110
|
|
Impairment
releases/(losses)
|
8
|
(2)
|
|
-
|
1
|
(5)
|
|
Operating profit/(loss) before tax
|
37
|
(75)
|
|
(59)
|
31
|
105
|
|
Tax credit/(charge)
|
26
|
(23)
|
|
19
|
(11)
|
2
|
|
Profit/(loss) for the period
|
63
|
(98)
|
|
(40)
|
20
|
107
|
|
|
|
|
|
|
|
Income (1)
|
|
|
|
|
|
Fixed Income
|
190
|
153
|
|
20
|
41
|
16
|
|
Currencies
|
525
|
496
|
|
146
|
139
|
145
|
|
Capital Markets
|
666
|
463
|
|
164
|
171
|
131
|
|
Capital Management Unit &
other (2)
|
(49)
|
(7)
|
|
(11)
|
(27)
|
19
|
|
Income including shared revenue before OCA
|
1,332
|
1,105
|
|
319
|
324
|
311
|
|
Transfer pricing arrangements with
fellow
|
|
|
|
|
|
|
NatWest Group subsidiaries (3)
|
(86)
|
(33)
|
|
(12)
|
(42)
|
118
|
|
Income excluding OCA
|
1,246
|
1,072
|
|
307
|
282
|
429
|
|
Own credit adjustments
(OCA)
|
(9)
|
(3)
|
|
(4)
|
2
|
(5)
|
|
Total income
|
1,237
|
1,069
|
|
303
|
284
|
424
|
(1)
Product performance includes gross income earned on a NatWest
Group-wide basis, including amounts contributed to other NatWest
Group subsidiaries. Income including shared revenue before OCA
includes revenue share from other NatWest Group subsidiaries but
before revenue share is paid to or contributed to those
subsidiaries.
(2)
Capital Management Unit was set up in Q3 2020 to manage capital
usage and optimisation across all parts of NatWest Markets, with
the income materially relating to legacy positions. In 2024, Other
materially relates to FX reserves recycling.
(3)
Transfer pricing arrangements with fellow NatWest Group
subsidiaries includes shared revenue paid to or contributed to
those subsidiaries and a profit share arrangement with fellow
NatWest Group subsidiaries. The profit share arrangement was
introduced during Q4 2023 to reward NWM Group on an arm's length
basis for its contribution to the performance of the NatWest Group
Commercial & Institutional business segment, 2023 being the
first full year with the Commercial & Institutional segment in
place. The profit share is not allocated to individual NatWest
Markets product areas.
Year ended 31 December 2024 performance
-
Net interest income largely represents interest income from lending activity and
capital hedges, offset by interest expense from the funding costs
of the business. The increase of £77 million compared with 2023
largely reflects growth in lending activity.
-
Non-interest income
increased by £91 million in 2024, largely driven by stronger
performances across the primary business lines reflecting strong
customer demand in capital markets and robust trading income,
partially offset by FX reserves recycling relating to legacy
overseas operations closure activity completed during the year. In
addition, the amount recognised under the profit share arrangement
with fellow NatWest Group subsidiaries of £146 million was £31
million lower than the amount recognised in 2023.
-
Operating expenses were up
by £66 million compared with 2023. Litigation and conduct costs
reflected ongoing progress in closing legacy matters, including any
associated conduct remediation activity, and were up by £42 million
compared with 2023. Other operating expenses increased by £24
million compared with 2023, largely due to increases in staff
costs, severance costs, bank levies and other smaller movements,
offset by credits recognised in 2024 in relation to property
charges and VAT recoveries relating to earlier periods.
Q4
2024 performance
-
Net interest income decreased by £25 million compared with Q3 2024, largely due to
higher costs from funding of the trading business, and decreased by
£69 million compared with Q4 2023, largely due to the impact of
one-off items recognised in the comparative period.
-
Non-interest income increased by £44 million compared with Q3 2024, largely due to
an increase in the amount recognised under the profit share
arrangement with fellow NatWest Group subsidiaries and the impact
of FX reserves recycling relating to legacy overseas operations
closure activity, partially offset by one-off items recognised in
the prior quarter. Non-interest income decreased by £52 million
compared with Q4 2023, mainly due to the profit share arrangement
with fellow NatWest Group subsidiaries under which the 2023 full
year amount of £177 million was recognised in Q4 2023, compared
with £46 million recognised in the current quarter, in addition to
FX reserves recycling in Q4 2024.
-
Operating expenses increased by £108 million compared with Q3 2024 and by £48
million compared with Q4 2023. Litigation and conduct costs
reflected ongoing progress on closing legacy matters, including any
associated conduct remediation activity, and were up by £18 million
compared with Q3 2024 and by £10 million compared with Q4 2023.
Other operating expenses increased by £90 million compared with Q3
2024, largely due to VAT recoveries recognised in the prior quarter
including from the finalisation of the 2023 VAT annual adjustment,
and the annual bank levy. Other operating expenses increased by £38
million compared with Q4 2023, largely due to higher VAT recoveries
in the comparative period including from the finalisation of the
2022 annual VAT adjustment, and a number of smaller
items.
Business performance summary
continued
Balance sheet profile as at 31 December 2024
NWM Group's balance sheet profile is
summarised below. Commentary refers to the
tables below as well as the consolidated balance sheet on page
6.
|
Assets
|
|
Liabilities
|
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
|
Cash and balances at central
banks
|
16.2
|
13.8
|
|
|
|
|
Securities
|
13.9
|
12.0
|
|
10.5
|
9.8
|
|
Short
positions
|
|
Reverse repos (1)
|
27.1
|
23.7
|
|
30.6
|
26.9
|
|
Repos (2)
|
|
Derivative cash collateral posted (3)
|
7.3
|
8.9
|
|
12.3
|
15.1
|
|
Derivative cash collateral received (4)
|
|
Other
trading assets
|
0.6
|
0.7
|
|
1.1
|
1.8
|
|
Other
trading liabilities
|
|
Total trading assets
|
48.9
|
45.3
|
|
54.5
|
53.6
|
|
Total trading liabilities
|
|
Loans - amortised cost
|
19.1
|
14.2
|
|
9.4
|
9.3
|
|
Deposits - amortised cost
|
|
Settlement balances
|
2.0
|
7.2
|
|
1.7
|
6.6
|
|
Settlement balances
|
|
Amounts due from holding
company
|
|
|
|
|
Amounts due to holding
company
|
|
and
fellow subsidiaries
|
0.3
|
1.7
|
|
6.8
|
5.8
|
|
and
fellow subsidiaries
|
|
Other financial assets
|
17.9
|
15.7
|
|
31.3
|
23.6
|
|
Other financial
liabilities
|
|
Other assets
|
0.7
|
0.7
|
|
0.5
|
0.6
|
|
Other liabilities
|
|
Funded assets
|
105.1
|
98.6
|
|
104.2
|
99.5
|
|
Liabilities excluding
derivatives
|
|
Derivative assets
|
78.1
|
79.3
|
|
72.0
|
72.0
|
|
Derivative
liabilities
|
|
Total assets
|
183.2
|
177.9
|
|
176.2
|
171.5
|
|
Total liabilities
|
|
|
|
|
|
|
of
which:
|
|
|
|
|
32.5
|
25.1
|
|
wholesale funding (5)
|
|
|
|
|
16.8
|
9.9
|
|
short-term wholesale
funding (5)
|
|
Net derivative assets
|
2.4
|
2.9
|
|
3.5
|
3.6
|
|
Net derivative
liabilities
|
(1)
Comprises bank reverse repos of £5.9 billion (2023 - £6.3 billion)
and customer reverse repos of £21.2 billion (2023 - £17.4
billion).
(2)
Comprises bank repos of £7.2 billion (2023- £4.0 billion) and
customer repos of £23.4 billion (2023 - £22.9 billion).
(3)
Comprises derivative cash collateral posted relating to banks of
£3.6 billion (2023 - £4.3 billion) and customers of £3.7 billion
(2023 - £4.6 billion).
(4)
Comprises derivative cash collateral received relating to banks of
£5.3 billion (2023 - £6.8 billion) and customers of £7.0 billion
(2023 - £8.3 billion).
(5)
Predominantly comprises bank deposits (excluding repos), debt
securities in issue and third-party subordinated
liabilities.
-
Total assets and liabilities increased by £5.3 billion and £4.7 billion respectively at 31
December 2024. Funded assets, which exclude derivatives, increased
by £6.5 billion, largely driven by higher loans at amortised cost,
trading assets, cash and balances at central banks and other
financial assets, partially offset by a decrease in settlement
balances. Derivative asset fair values were down by £1.2 billion
compared with 31 December 2023, and derivative liabilities were
unchanged.
-
Cash and balances at central banks
increased by £2.4 billion, mainly driven by
funding raised to support planned banking book growth and liquidity
requirements.
-
Trading assets which
primarily relate to client-led activity as well as derivative cash
collateral posted, were up by £3.6 billion, driven by increases in
reverse repos and securities, partially offset by a decrease in
derivative cash collateral posted. Trading
liabilities increased by £0.9 billion, as
increases in repos and short positions were largely offset by a
decrease in derivative cash collateral received.
-
Loans - amortised cost increased by £4.9 billion, driven by higher loans to customers
reflecting growth in Capital Markets.
-
Settlement balance assets and liabilities
were down by £5.2 billion and £4.9 billion
respectively, largely due to comparatively higher levels of
customer activity in the period leading up to 31 December
2023.
-
Other financial assets increased by £2.2 billion mainly driven by an increase in
held-to-collect securities purchased to support customer primary
issuance.
-
Other financial liabilities increased by £7.7 billion driven by new issuance in the year
to support planned growth in the business, partially offset by
maturities. The balance as at 31 December 2024 includes £21.9
billion of medium-term notes issued.
-
Derivative assets and derivative
liabilities were down by £1.2 billion and
unchanged respectively, largely reflecting FX rate volatility
across major currencies including the strengthening of USD in Q4
2024, and variations in interest rates across different currencies
and tenors.
Non-IFRS measures
This document contains a number of
non-IFRS measures. For details of the basis of preparation and
reconciliations, where applicable, refer to the non-IFRS measures
section on page 12.
Capital, liquidity and funding
risk
Introduction
NWM Group takes a comprehensive
approach to the management of capital, liquidity and funding,
underpinned by frameworks, risk appetite and policies, to manage
and mitigate capital, liquidity and funding risks. The framework
ensures the tools and capability are in place to facilitate the
management and mitigation of risk ensuring that NWM Group operates
within its regulatory requirements and risk appetite.
Capital, RWAs and leverage
Capital resources, RWAs and leverage
based on the PRA transitional arrangements in respect of ECL
provisions(4) for NWM Plc are set out below.
Regulatory capital is
monitored and reported at legal entity level for large subsidiaries
of NatWest Group.
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2024
|
2023
|
|
Capital adequacy ratios (1,2)
|
%
|
%
|
%
|
|
CET1
|
18.2
|
17.3
|
17.1
|
|
Tier 1
|
24.3
|
20.6
|
20.2
|
|
Total
|
27.8
|
23.6
|
23.0
|
|
Total MREL
|
48.2
|
42.4
|
34.5
|
|
|
|
|
|
|
Capital (1,2)
|
£m
|
£m
|
£m
|
|
CET1
|
3,779
|
3,720
|
3,776
|
|
Tier 1
|
5,067
|
4,416
|
4,455
|
|
Total
|
5,779
|
5,066
|
5,072
|
|
Total MREL (3)
|
10,038
|
9,104
|
7,627
|
|
|
|
|
|
|
Risk-weighted assets
|
|
|
|
|
Credit risk
|
8,908
|
8,252
|
7,895
|
|
Counterparty credit risk
|
5,797
|
6,095
|
6,516
|
|
Market risk
|
5,105
|
6,127
|
6,366
|
|
Operational risk
|
1,002
|
1,002
|
1,322
|
|
Total RWAs
|
20,812
|
21,476
|
22,099
|
(1) NWM
Plc's total capital ratio requirement is 11.5%, comprising the
minimum capital requirement of 8%, supplemented with the capital
conservation buffer of 2.5% and the institution specific
countercyclical buffer (CCyB) of 1%. The minimum CET1 ratio is 8%,
including the minimum capital requirement of 4.5%. The CCyB is
based on the weighted average of NWM Plc's geographical
exposures.
(2) In
addition, NWM Plc is subject to Pillar 2A requirements for CET1,
AT1 and T2. Refer to the NWM Plc Pillar 3 report for further
details on these additional capital requirements.
(3) Includes senior debt instruments issued to NatWest Group plc
with a nominal value of £4.3 billion (30 September 2024 - £4.0
billion, 31 December 2023 - £2.6 billion).
(4)
The IFRS 9 transitional capital rules in respect to ECL provisions
will no longer apply from 1 January 2025.
Leverage
The leverage ratio has been
calculated in accordance with the Leverage Ratio (CRR) part of the
PRA rulebook.
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2024
|
2023
|
|
Tier 1 capital (£m)
|
5,067
|
4,416
|
4,455
|
|
Leverage exposure
(£m) (1)
|
92,859
|
96,209
|
89,929
|
|
Leverage ratio
(%)
|
5.5
|
4.6
|
5.0
|
(1)
Leverage exposure is broadly aligned to the accounting value of on
and off-balance sheet exposures albeit subject to specific
adjustments for derivatives, securities financing positions and
off-balance sheet exposures.
Liquidity and funding
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2024
|
2023
|
|
Liquidity coverage ratio (LCR)
(%)
|
195
|
163
|
183
|
|
Liquidity portfolio (£bn)
|
21.0
|
17.0
|
14.7
|
|
Total wholesale funding
(£bn) (1)
|
32.5
|
32.2
|
25.1
|
|
Total funding including repo
(£bn)
|
91.4
|
95.1
|
82.4
|
(1) Predominantly comprises bank deposits (excluding repos), debt
securities in issue and third-party subordinated
liabilities.
Consolidated income
statement
For the period ended 31 December
2024
|
|
Year ended
|
|
Quarter
ended
|
|
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2023
|
|
2024
|
2024
|
2023
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Interest receivable
|
2,720
|
2,186
|
|
665
|
698
|
677
|
|
Interest payable
|
(2,288)
|
(1,831)
|
|
(580)
|
(588)
|
(523)
|
|
Net
interest income
|
432
|
355
|
|
85
|
110
|
154
|
|
Fees and commissions
receivable
|
476
|
377
|
|
102
|
120
|
98
|
|
Fees and commissions
payable
|
(213)
|
(175)
|
|
(47)
|
(55)
|
(56)
|
|
Income from trading
activities
|
585
|
477
|
|
157
|
199
|
148
|
|
Other operating
income
|
(43)
|
35
|
|
6
|
(90)
|
80
|
|
Non-interest income
|
805
|
714
|
|
218
|
174
|
270
|
|
Total income
|
1,237
|
1,069
|
|
303
|
284
|
424
|
|
Staff costs
|
(452)
|
(418)
|
|
(99)
|
(112)
|
(102)
|
|
Premises and equipment
|
(75)
|
(66)
|
|
(20)
|
(19)
|
(19)
|
|
Other administrative
expenses
|
(671)
|
(642)
|
|
(240)
|
(120)
|
(187)
|
|
Depreciation and
amortisation
|
(10)
|
(16)
|
|
(3)
|
(3)
|
(6)
|
|
Operating expenses
|
(1,208)
|
(1,142)
|
|
(362)
|
(254)
|
(314)
|
|
Operating profit/(loss) before
impairment
|
|
|
|
|
|
|
|
losses/releases
|
29
|
(73)
|
|
(59)
|
30
|
110
|
|
Impairment
releases/(losses)
|
8
|
(2)
|
|
-
|
1
|
(5)
|
|
Operating profit/(loss) before tax
|
37
|
(75)
|
|
(59)
|
31
|
105
|
|
Tax credit/(charge)
|
26
|
(23)
|
|
19
|
(11)
|
2
|
|
Profit/(loss) for the period
|
63
|
(98)
|
|
(40)
|
20
|
107
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Ordinary shareholders
|
(20)
|
(168)
|
|
(63)
|
3
|
89
|
|
Paid-in equity holders
|
73
|
70
|
|
22
|
17
|
18
|
|
Non-controlling interests
|
10
|
-
|
|
1
|
-
|
-
|
|
|
63
|
(98)
|
|
(40)
|
20
|
107
|
Consolidated statement of
comprehensive income
For the period ended 31 December
2024
|
|
Year ended
|
|
Quarter
ended
|
|
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2023
|
|
2024
|
2024
|
2023
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Profit/(loss) for the period
|
63
|
(98)
|
|
(40)
|
20
|
107
|
|
Items that do not qualify for
reclassification
|
|
|
|
|
|
|
|
Remeasurement of retirement benefit
schemes
|
(13)
|
(113)
|
|
(9)
|
(1)
|
(111)
|
|
Change in fair value of credit in
financial liabilities
|
|
|
|
|
|
|
|
designated at FVTPL
|
(33)
|
(39)
|
|
(8)
|
1
|
(13)
|
|
FVOCI financial assets
|
14
|
7
|
|
1
|
10
|
(2)
|
|
Tax
|
23
|
42
|
|
7
|
(2)
|
40
|
|
|
(9)
|
(103)
|
|
(9)
|
8
|
(86)
|
|
Items that do qualify for reclassification
|
|
|
|
|
|
|
|
FVOCI financial
assets
|
5
|
5
|
|
1
|
(2)
|
(1)
|
|
Cash flow hedges (1)
|
(29)
|
178
|
|
(54)
|
98
|
226
|
|
Currency translation
|
(14)
|
(132)
|
|
113
|
(77)
|
(56)
|
|
Tax
|
16
|
(48)
|
|
16
|
(20)
|
(15)
|
|
|
(22)
|
3
|
|
76
|
(1)
|
154
|
|
Other comprehensive (loss)/income after tax
|
(31)
|
(100)
|
|
67
|
7
|
68
|
|
Total comprehensive income/(loss) for the
period
|
32
|
(198)
|
|
27
|
27
|
175
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Ordinary shareholders
|
(50)
|
(268)
|
|
5
|
10
|
157
|
|
Paid-in equity holders
|
73
|
70
|
|
22
|
17
|
18
|
|
Non-controlling interests
|
9
|
-
|
|
-
|
-
|
-
|
|
|
32
|
(198)
|
|
27
|
27
|
175
|
(1) Refer to footnotes 2 and 3 of the statement of changes in
equity.
Consolidated balance sheet as at 31
December 2024
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2024
|
2023
|
|
|
£m
|
£m
|
£m
|
|
Assets
|
|
|
|
|
Cash and balances at central
banks
|
16,229
|
17,237
|
13,831
|
|
Trading assets
|
48,883
|
54,361
|
45,324
|
|
Derivatives
|
78,105
|
68,578
|
79,332
|
|
Settlement balances
|
2,043
|
11,786
|
7,227
|
|
Loans to banks - amortised
cost
|
1,171
|
1,445
|
1,246
|
|
Loans to customers - amortised
cost
|
17,921
|
16,247
|
12,986
|
|
Amounts due from holding companies
and fellow subsidiaries
|
343
|
606
|
1,730
|
|
Other financial assets
|
17,850
|
16,766
|
15,723
|
|
Other assets
|
621
|
613
|
518
|
|
Total assets
|
183,166
|
187,639
|
177,917
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Bank deposits
|
4,565
|
4,660
|
2,267
|
|
Customer deposits
|
4,840
|
6,459
|
6,998
|
|
Amounts due to holding companies and
fellow subsidiaries
|
6,771
|
6,870
|
5,802
|
|
Settlement balances
|
1,729
|
12,064
|
6,641
|
|
Trading liabilities
|
54,512
|
58,964
|
53,623
|
|
Derivatives
|
72,036
|
61,417
|
71,981
|
|
Other financial
liabilities
|
31,263
|
30,383
|
23,574
|
|
Other liabilities
|
521
|
500
|
653
|
|
Total liabilities
|
176,237
|
181,317
|
171,539
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Owners' equity
|
6,929
|
6,315
|
6,380
|
|
Non-controlling interests
|
-
|
7
|
(2)
|
|
Total equity
|
6,929
|
6,322
|
6,378
|
|
Total liabilities and equity
|
183,166
|
187,639
|
177,917
|
Consolidated statement of changes in
equity
For the period ended 31 December
2024
|
|
Year ended
|
|
Quarter
ended
|
|
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2023
|
|
2024
|
2024
|
2023
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Called up share capital - at beginning and end of
period
|
400
|
400
|
|
400
|
400
|
400
|
|
|
|
|
|
|
|
Share premium account - at beginning and end of
period
|
1,946
|
1,946
|
|
1,946
|
1,946
|
1,946
|
|
|
|
|
|
|
|
Paid-in equity - at beginning of period
|
904
|
904
|
|
904
|
904
|
904
|
|
Issued
|
592
|
-
|
|
592
|
-
|
-
|
|
At end of period
|
1,496
|
904
|
|
1,496
|
904
|
904
|
|
|
|
|
|
|
|
Merger reserve - at beginning of period
|
(14)
|
-
|
|
(12)
|
(13)
|
-
|
|
Additions
|
-
|
(14)
|
|
-
|
1
|
(14)
|
|
Amortisation
|
3
|
-
|
|
1
|
-
|
-
|
|
At end of period
|
(11)
|
(14)
|
|
(11)
|
(12)
|
(14)
|
|
|
|
|
|
|
|
FVOCI reserve - at beginning of period
|
13
|
3
|
|
26
|
21
|
16
|
|
Unrealised gains/(losses)
|
20
|
11
|
|
2
|
9
|
(4)
|
|
Realised (gains)/losses
|
(5)
|
3
|
|
(1)
|
(2)
|
3
|
|
Tax
|
(3)
|
(4)
|
|
(2)
|
(2)
|
(2)
|
|
At end of period
|
25
|
13
|
|
25
|
26
|
13
|
|
|
|
|
|
|
|
Cash flow hedging reserve - at beginning of
period
|
(164)
|
(294)
|
|
(138)
|
(216)
|
(375)
|
|
Amount recognised in
equity (2)
|
(299)
|
(29)
|
|
(118)
|
31
|
148
|
|
Amount transferred from equity to
earnings (3)
|
270
|
207
|
|
64
|
67
|
78
|
|
Tax
|
16
|
(48)
|
|
15
|
(20)
|
(15)
|
|
At end of period
|
(177)
|
(164)
|
|
(177)
|
(138)
|
(164)
|
|
|
|
|
|
|
|
Foreign exchange reserve - at beginning of
period
|
100
|
232
|
|
(27)
|
50
|
156
|
|
Retranslation of net
assets
|
(98)
|
(143)
|
|
91
|
(123)
|
(51)
|
|
Foreign currency gains/(losses) on
hedges of net assets
|
15
|
19
|
|
(7)
|
3
|
4
|
|
Recycled to profit or loss on
disposal of businesses
|
70
|
(8)
|
|
30
|
43
|
(9)
|
|
At end of period
|
87
|
100
|
|
87
|
(27)
|
100
|
|
|
|
|
|
|
|
Retained earnings - at beginning of period
|
3,195
|
3,374
|
|
3,216
|
3,218
|
3,189
|
|
Profit/(loss) attributable to
ordinary shareholders and other equity owners
|
53
|
(98)
|
|
(41)
|
20
|
107
|
|
Paid-in equity dividends
paid
|
(73)
|
(70)
|
|
(22)
|
(17)
|
(18)
|
|
Remeasurement of retirement benefit
schemes
|
|
|
|
|
|
- gross
|
(13)
|
(113)
|
|
(9)
|
(1)
|
(111)
|
|
- tax
|
16
|
40
|
|
1
|
1
|
39
|
|
Realised gains/(losses) on FVOCI
equity shares
|
|
|
|
|
|
- gross
|
4
|
(2)
|
|
1
|
1
|
(2)
|
|
- tax
|
8
|
-
|
|
8
|
-
|
-
|
|
Capital
contributions (1)
|
-
|
115
|
|
-
|
-
|
-
|
|
Changes in fair value of credit in
financial liabilities designated at FVTPL
|
|
|
|
|
|
- gross
|
(33)
|
(39)
|
|
(8)
|
1
|
(13)
|
|
- tax
|
2
|
6
|
|
1
|
(1)
|
3
|
|
Share-based payments
|
|
|
|
|
|
- gross
|
(3)
|
(14)
|
|
7
|
(5)
|
5
|
|
- tax
|
10
|
(4)
|
|
10
|
-
|
(4)
|
|
Merger reserve
amortisation
|
(3)
|
-
|
|
(1)
|
(1)
|
-
|
|
At end of period
|
3,163
|
3,195
|
|
3,163
|
3,216
|
3,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
For the notes to this table refer to
the following page.
Consolidated statement of changes in
equity
For the period ended 31 December
2024 continued
|
|
Year ended
|
|
Quarter
ended
|
|
|
31 December
|
31
December
|
|
31 December
|
30
September
|
31
December
|
|
|
2024
|
2023
|
|
2024
|
2024
|
2023
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Owners' equity at end of period
|
6,929
|
6,380
|
|
6,929
|
6,315
|
6,380
|
|
|
|
|
|
|
|
Non-controlling interests - at beginning of
period
|
(2)
|
(2)
|
|
7
|
7
|
(2)
|
|
Currency translation adjustments and
other movements
|
(1)
|
-
|
|
(1)
|
-
|
-
|
|
Profit attributable to
non-controlling interests
|
10
|
-
|
|
1
|
-
|
-
|
|
Dividends paid
|
(7)
|
|
(7)
|
-
|
-
|
|
At end of period
|
-
|
(2)
|
|
-
|
7
|
(2)
|
|
|
|
|
|
|
|
Total equity at end of period
|
6,929
|
6,378
|
|
6,929
|
6,322
|
6,378
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
Ordinary shareholders
|
5,433
|
5,476
|
|
5,433
|
5,411
|
5,476
|
|
Paid-in equity holders
|
1,496
|
904
|
|
1,496
|
904
|
904
|
|
Non-controlling interests
|
-
|
(2)
|
|
-
|
7
|
(2)
|
|
|
6,929
|
6,378
|
|
6,929
|
6,322
|
6,378
|
(1) During H1 2023, NatWest Markets invoked a claim against the
parent, NatWest Group plc, in respect of a legacy (non-trading)
matter which was covered by an indemnity agreement. This resulted
in a capital contribution.
(2)
The change in the cash flow hedging reserve is driven by realised
accrued interest transferred into the income statement and an
increase in swap rates in the year. The portfolio of hedging
instruments are predominantly receive fixed swaps.
(3)
The amount transferred from equity to the income statement is
mostly recorded within net interest income mainly within loans to
banks and customers - amortised cost and balances at central
banks.
Consolidated cash flow
statement
For the year ended 31 December
2024
|
|
31 December
|
31
December
|
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
Cash flows from operating activities
|
|
|
|
Operating profit/(loss) before
tax
|
37
|
(75)
|
|
Adjustments for non-cash
items
|
143
|
173
|
|
Net
cash flows from trading activities
|
180
|
98
|
|
Changes in operating assets and
liabilities
|
(226)
|
2,617
|
|
Net
cash flows from operating activities before tax
|
(46)
|
2,715
|
|
Income taxes
(paid)/received
|
(89)
|
99
|
|
Net
cash flows from operating activities
|
(135)
|
2,814
|
|
Net
cash flows from investing activities
|
(1,333)
|
(3,251)
|
|
Net
cash flows from financing activities
|
1,593
|
(922)
|
|
Effects of exchange rate on cash and
cash equivalents
|
(532)
|
(526)
|
|
Net
decrease in cash and cash equivalents
|
(407)
|
(1,885)
|
|
Cash and cash equivalents at 1
January
|
24,943
|
26,828
|
|
Cash and cash equivalents at 31 December
|
24,536
|
24,943
|
Notes
1.
Presentation of condensed consolidated financial
statements
The condensed consolidated financial statements should be read in
conjunction with NatWest Markets Plc's 2024 Annual Report and
Accounts. The critical and material
accounting policies are the same as those applied in the
consolidated financial statements.
The directors have prepared the
condensed consolidated financial statements on a going concern
basis after assessing the principal risks, forecasts, projections
and other relevant evidence over the twelve months from the date
they are approved.
2. Trading assets and
liabilities
Trading assets and liabilities
comprise assets and liabilities held at fair value in trading
portfolios.
|
|
31 December
|
31
December
|
|
|
2024
|
2023
|
|
Assets
|
£m
|
£m
|
|
Loans
|
|
|
|
- Reverse repos
|
27,127
|
23,694
|
|
- Collateral given
|
7,333
|
8,914
|
|
- Other loans
|
545
|
762
|
|
Total loans
|
35,005
|
33,370
|
|
Securities
|
|
|
|
Central and local government
|
|
|
|
-
UK
|
2,077
|
2,729
|
|
-
US
|
3,734
|
2,600
|
|
-
Other
|
3,506
|
3,062
|
|
Financial institutions and Corporate
|
4,561
|
3,563
|
|
Total securities
|
13,878
|
11,954
|
|
Total
|
48,883
|
45,324
|
|
|
|
|
|
Liabilities
|
|
|
|
Deposits
|
|
|
|
- Repos
|
30,562
|
26,902
|
|
- Collateral received
|
12,307
|
15,062
|
|
- Other deposits
|
895
|
1,150
|
|
Total deposits
|
43,764
|
43,114
|
|
Debt securities in issue
|
257
|
706
|
|
Short positions
|
|
|
|
Central and local government
|
|
|
|
-
UK
|
2,680
|
1,893
|
|
-
US
|
1,677
|
2,071
|
|
-
Other
|
4,755
|
4,049
|
|
Financial institutions and
corporate
|
1,379
|
1,790
|
|
Total short positions
|
10,491
|
9,803
|
|
Total
|
54,512
|
53,623
|
Notes
3. Other financial
liabilities
|
|
31 December
|
31
December
|
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
Customer deposits - designated as at
fair value through profit or loss (FVTPL)
|
1,537
|
1,259
|
|
Debt securities in issue
|
|
|
|
- Medium term notes
|
21,852
|
17,608
|
|
- Commercial paper and certificates of deposit
|
7,605
|
4,433
|
|
Subordinated liabilities
|
|
|
|
- Designated as at FVTPL
|
234
|
238
|
|
- Amortised cost
|
35
|
36
|
|
Total
|
31,263
|
23,574
|
4. Amounts due to holding company
and fellow subsidiaries
|
|
31 December
|
31
December
|
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
Bank deposits - amortised
cost
|
548
|
537
|
|
Customer deposits - amortised
cost
|
43
|
55
|
|
Settlement balances
|
-
|
-
|
|
Trading liabilities
|
613
|
1,028
|
|
Other financial liabilities -
subordinated liabilities
|
1,115
|
1,022
|
|
MREL instruments issued to NatWest
Group plc
|
4,358
|
3,070
|
|
Other liabilities
|
94
|
90
|
|
Total
|
6,771
|
5,802
|
5. Related parties
UK Government
The UK Government, bodies controlled
or jointly controlled by the UK Government and bodies over which it
has significant influence are related parties of NWM Group. NWM
Group enters into transactions with many of these bodies. NWM
Group's other transactions with the UK Government include the
payment of taxes, principally UK corporation tax and value added
tax; national insurance contributions; local authority rates; and
regulatory fees and levies (including the bank levy and FSCS
levies).
Bank of England
facilities
In the ordinary course of business,
NWM Group may from time-to-time access market-wide facilities
provided by the Bank of England.
Other related parties
(a) In
their roles as providers of finance, NWM Group companies provide
development and other types of capital support to businesses. In
some instances, the investment may extend to ownership or control
over 20% or more of the voting rights of the investee
company.
(b) In
accordance with IAS 24, transactions or balances between NWM Group
entities that have been eliminated on consolidation are not
reported.
(c) NWM Group is recharged from other NatWest Group entities,
mainly NWB Plc which provides the majority of shared services
(including technology) and operational processes.
(d) The primary financial statements include transactions and
balances with its subsidiaries which have been further disclosed in
the relevant parent company notes.
Full details of NWM Group's related
party transactions for year ended 31 December 2024 are included in
NatWest Markets Plc 2024 Annual Report and Accounts.
Notes
6. Litigation and regulatory
matters
NWM Plc and certain members of NWM
Group are party to various legal proceedings and are involved in,
or subject to, various regulatory matters, including as the subject
of investigations and other regulatory and governmental action
(Matters) in the United Kingdom (UK), the United States (US), the
European Union (EU) and other jurisdictions. Note 25 in the NatWest
Markets Plc 2024 Annual Report and Accounts, issued on 14 February
2025 and available at nwm.com (Note 25), discusses the Matters in
which NWM Group is currently involved and material developments.
Other than the Matters discussed in Note 25, no member of NWM Group
is or has been involved in governmental, legal, or regulatory
proceedings (including those which are pending or threatened) that
are expected to be material, individually or in aggregate. Recent
developments in the Matters identified in Note 25 that have
occurred since the Q3 2024 Interim Management Statement was issued
on 25 October 2024, include, but are not limited to, those set out
below.
Litigation
London Interbank Offered Rate
(LIBOR) and other rates litigation
As previously disclosed, in August
2020, a complaint was filed in the United States District Court for
the Northern District of California by several United States retail
borrowers against the USD ICE LIBOR panel banks and their
affiliates (including NatWest Group plc, NWM Plc, NatWest Markets
Securities Inc. and NWB Plc), alleging (i) that the very process of
setting USD ICE LIBOR amounts to illegal price-fixing; and (ii)
that banks in the United States have illegally agreed to use LIBOR
as a component of price in variable retail loans. In September
2022, the district court dismissed the complaint. In December 2024,
the United States Court of Appeals for the Ninth Circuit affirmed
the district court's decision.
Foreign exchange
litigation
As previously disclosed, two sets of
proceedings are ongoing in the Netherlands against NatWest Group
plc, NWM Plc and NWM N.V. by Stichting FX Claims on behalf of a
number of parties, seeking declarations from the district court in
Amsterdam concerning liability for anti-competitive FX market
conduct described in decisions of the European Commission (EC) of
16 May 2019 and 2 December 2021, along with unspecified damages. In
January 2025, a third summons was served by Stichting FX Claims on
NatWest Group plc, NWM Plc and NWM N.V., on behalf of a new group
of parties. The claimant seeks similar declarations from the
district court in Amsterdam to those being sought in the previously
disclosed claims, along with unspecified damages.
Regulatory matters
US investigations relating to
fixed-income securities
In December 2021, NWM Plc pled
guilty in the United States District Court for the District of
Connecticut to one count of wire fraud and one count of securities
fraud in connection with historical spoofing conduct by former
employees in US Treasuries markets between January 2008 and May
2014 and, separately, during approximately three months in 2018.
The 2018 trading occurred during the term of a non-prosecution
agreement (NPA) between NWMSI and the United States Attorney's
Office for the District of Connecticut (USAO CT), under which
non-prosecution was conditioned on NWMSI and affiliated companies
not engaging in criminal conduct during the term of the NPA. The
relevant trading in 2018 was conducted by two NWM traders in
Singapore and breached that NPA. The plea agreement reached with
the US Department of Justice (DOJ) and the USAO CT resolved both
the spoofing conduct and the breach of the NPA.
As required by the resolution and
sentence imposed by the court, NWM Plc is subject to a probationary
period, which was extended to end concurrently with the conclusion
of the independent monitorship, which is also required under the
plea agreement. The term of the independent monitorship and the
ongoing implementation of recommendations made by it is currently
scheduled to conclude in December 2025 but may be extended by
agreement with the DOJ. In addition, NWM Plc has committed to
compliance programme reviews and improvements and agreed to
reporting and co-operation obligations.
In the event that NWM Plc does not
meet its obligations to the DOJ, this may lead to adverse
consequences such as increased costs from any extension of
monitorship and/or the period of the probation, findings that NWM
Plc violated its probation term, and possible re-sentencing,
amongst other consequences. Other material adverse collateral
consequences may occur as a result of this matter, as further
described in the Risk Factor relating to legal, regulatory and
governmental actions and investigations set out on pages 172 to 173
of the NatWest Markets Plc 2024 Annual Report and
Accounts.
7. Post balance sheet
events
Other than as disclosed in the
accounts, there have been no other significant events between 31
December 2024 and the date of approval of these accounts which
would require a change to or additional
disclosure.
Non-IFRS financial
measures
NWM Group prepares its financial
statements in accordance with IFRS as issued by the IASB which
constitutes a body of generally accepted accounting principles
(GAAP). This document contains a number of adjusted or alternative
performance measures, also known as non-GAAP or non-IFRS
performance measures. These measures are adjusted for certain items
which management believe are not representative of the underlying
performance of the business and which distort period-on-period
comparison. These non-IFRS measures are not measures within the
scope of IFRS and are not a substitute for IFRS measures. These
measures include:
-
Management analysis of operating expenses shows
litigation and conduct costs on a separate line. These amounts are
included within staff costs and other administrative expenses in
the statutory analysis. Other operating expenses excludes
litigation and conduct costs which are more volatile and may
distort comparisons with prior periods.
-
Funded assets are defined as total assets less
derivative assets. This measure allows review of balance sheet
trends exclusive of the volatility associated with derivative fair
values.
-
Management view of income by business including
shared revenue and before own credit adjustments. This measure is
used to show underlying income generation in NatWest Markets
excluding the impact of own credit adjustments.
-
Revenue share refers to income generated by
NatWest Markets products from customers that have their primary
relationship with other NatWest Group subsidiaries, a proportion of
which is shared between NatWest Markets and those
subsidiaries.
-
Transfer Pricing arrangements with fellow NatWest
Group subsidiaries includes revenue share and a profit share
arrangement with fellow NatWest Group subsidiaries. The profit
share arrangement was introduced during 2023 to reward NWM Group on
an arm's length basis for its contribution to the performance of
the NatWest Group Commercial & Institutional business segment,
2023 being the first full year with the Commercial &
Institutional segment in place. The profit share is not allocated
to individual NatWest Markets product areas.
-
Own credit adjustments are applied to positions
where it is believed that the counterparties would consider NWM
Group's creditworthiness when pricing trades. The fair value of
certain issued debt securities, including structured notes, is
adjusted to reflect the changes in own credit spreads and the
resulting gain or loss recognised in income.
Operating expenses analysis - management
view
|
|
Year ended
|
|
|
31 December
2024
|
|
31
December 2023
|
|
|
Litigation
|
Other
|
Statutory
|
|
Litigation
|
Other
|
Statutory
|
|
|
and conduct
|
operating
|
operating
|
|
and
conduct
|
operating
|
operating
|
|
|
costs
|
expenses
|
expenses
|
|
costs
|
expenses
|
expenses
|
|
Staff costs
|
27
|
425
|
452
|
|
12
|
406
|
418
|
|
Premises and equipment
|
-
|
75
|
75
|
|
-
|
66
|
66
|
|
Other administrative
expenses
|
75
|
596
|
671
|
|
48
|
594
|
642
|
|
Depreciation and
amortisation
|
-
|
10
|
10
|
|
-
|
16
|
16
|
|
Total
|
102
|
1,106
|
1,208
|
|
60
|
1,082
|
1,142
|
|
|
|
|
Quarter
ended
|
|
|
|
|
31 December
2024
|
|
|
|
|
|
|
Litigation
|
Other
|
Statutory
|
|
|
|
|
|
|
and conduct
|
operating
|
operating
|
|
|
costs
|
expenses
|
expenses
|
|
Staff costs
|
|
|
|
|
5
|
94
|
99
|
|
Premises and equipment
|
|
|
|
|
-
|
20
|
20
|
|
Other administrative
expenses
|
|
|
|
|
36
|
204
|
240
|
|
Depreciation and
amortisation
|
|
|
|
|
-
|
3
|
3
|
|
Total
|
|
|
|
|
41
|
321
|
362
|
|
|
|
|
Quarter
ended
|
|
|
|
|
30
September 2024
|
|
|
|
|
|
|
Litigation
|
Other
|
Statutory
|
|
|
|
|
|
|
and
conduct
|
operating
|
operating
|
|
|
costs
|
expenses
|
expenses
|
|
Staff costs
|
|
|
|
|
8
|
104
|
112
|
|
Premises and equipment
|
|
|
|
|
-
|
19
|
19
|
|
Other administrative
expenses
|
|
|
|
|
15
|
105
|
120
|
|
Depreciation and
amortisation
|
|
|
|
|
-
|
3
|
3
|
|
Total
|
|
|
|
|
23
|
231
|
254
|
|
|
|
|
|
|
Quarter
ended
|
|
|
|
|
31
December 2023
|
|
|
|
|
|
|
Litigation
|
Other
|
Statutory
|
|
|
|
|
|
|
and
conduct
|
operating
|
operating
|
|
|
costs
|
expenses
|
expenses
|
|
Staff costs
|
|
|
|
|
4
|
98
|
102
|
|
Premises and equipment
|
|
|
|
|
-
|
19
|
19
|
|
Other administrative
expenses
|
|
|
|
|
27
|
160
|
187
|
|
Depreciation and
amortisation
|
|
|
|
|
-
|
6
|
6
|
|
Total
|
|
|
|
|
31
|
283
|
314
|
Statement of directors'
responsibilities
The responsibility statement below
has been prepared in connection with NWM Group's full Annual Report
and Accounts for the year ended 31 December 2024.
We, the directors listed below,
confirm that to the best of our knowledge:
-
The financial statements, prepared in accordance
with UK adopted International Accounting Standards, International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board and IFRS as adopted European Union, give
a true and fair view of the assets, liabilities, financial position
and profit or loss of NWM Plc and the undertakings included in the
consolidation taken as a whole; and
-
The Strategic Report and Report of the directors
(incorporating the Financial review) include a fair review of the
development and performance of the business and the position of NWM
Plc, and the undertakings included in the consolidation taken as a
whole, together with a description of the principal risks and
uncertainties that they face.
|
By order of the Board
Anne Simpson
|
Jonathan Peberdy
|
Simon Lowe
|
|
Non-executive director
|
Chief Executive Officer
|
Chief Financial Officer
|
|
13 February 2025
|
|
|
|
Board of directors
Chair
|
Executive directors
|
Non-executive directors
|
|
Frank Dangeard
|
Jonathan Peberdy
Simon Lowe
|
Tamsin Rowe
Anne Simpson
Sabrina Wilson
|
Presentation of
information
NatWest Markets Plc ('NWM Plc') is a
wholly owned subsidiary of NatWest Group plc or 'the ultimate
holding company'. The NatWest Markets Group ('NWM Group') or 'we'
comprises NWM Plc and its subsidiary and associated undertakings.
The term 'NatWest Group' comprises NatWest Group plc and its
subsidiaries.
NWM Plc publishes its financial
statements in pounds sterling ('£' or 'sterling'). The
abbreviations '£m' and '£bn' represent millions and thousands of
millions of pounds sterling ('GBP'), respectively, and references
to 'pence' represent pence in the United Kingdom ('UK'). Reference
to 'dollars' or '$' are to United States of America ('US') dollars.
The abbreviations '$m' and '$bn' represent millions and thousands
of millions of dollars, respectively, and references to 'cents'
represent cents in the US. The abbreviation '€' represents the
'euro', and the abbreviations '€m' and '€bn' represent millions and
thousands of millions of euros, respectively, and references to
'cents' represent cents in the European Union ('EU').
Statutory results
Financial information contained in
this document does not constitute statutory accounts within the
meaning of section 434 of the Companies Act 2006 ("the Act"). The
statutory accounts for the year ended 31 December 2024 will be
filed with the Registrar of Companies. The report of the auditor on
those statutory accounts was unqualified, did not draw attention to
any matters by way of emphasis and did not contain a statement
under section 498(2) or (3) of the Act.
|
Contact
|
|
|
|
Paul Pybus
|
NatWest Group Investor
Relations
|
+44 (0) 7769161183
|
Forward-looking
statements
Cautionary statement regarding forward-looking
statements
Certain sections in this document
contain 'forward-looking statements' as that term is defined in the
United States Private Securities Litigation Reform Act of 1995,
such as statements with respect to NWM Group's financial condition,
results of operations and business, including its strategic
priorities, financial, investment and capital targets, and ESG
targets, commitments and ambitions described herein. Statements
that are not historical facts, including statements about NatWest
Group's beliefs and expectations, are forward-looking statements.
Words such as 'expect', 'estimate', 'project', 'anticipate',
'commit', 'believe', 'should', 'intend', 'will', 'plan', 'could',
'probability', 'risk', 'target', 'goal', 'objective', 'may',
'endeavour', 'outlook', 'optimistic', 'prospects' and similar
expressions or variations on these expressions are intended to
identify forward-looking statements. In particular, this document
includes forward-looking targets and guidance relating to financial
performance measures, such as income growth, operating expense,
cost reductions, impairment loss rates, balance sheet reduction,
including the reduction of RWAs, CET1 ratio (and key drivers of the
CET1 ratio, including timing, impact and details), Pillar 2 and
other regulatory buffer requirements and MREL and non-financial
performance measures, such as climate and sustainability-related
performance ambitions, targets and metrics, including in relation
to initiatives to transition to a net zero economy, climate and
sustainable funding and financing and financed
emissions.
Limitations inherent to forward-looking
statements
Certain sections in this document
contain 'forward-looking statements' as that term is defined in the
United States Private Securities Litigation Reform Act of 1995,
such as statements with respect to NWM Group's financial condition,
results of operations and business, including its strategic
priorities, financial, investment and capital targets, and ESG
targets, commitments and ambitions described herein. Statements
that are not historical facts, including statements about NatWest
Group's beliefs and expectations, are forward-looking statements.
Words such as 'expect', 'estimate', 'project', 'anticipate',
'commit', 'believe', 'should', 'intend', 'will', 'plan', 'could',
'probability', 'risk', 'target', 'goal', 'objective', 'may',
'endeavour', 'outlook', 'optimistic', 'prospects' and similar
expressions or variations on these expressions are intended to
identify forward-looking statements. In particular, this document
includes forward-looking targets and guidance relating to financial
performance measures, such as income growth, operating expense,
cost reductions, impairment loss rates, balance sheet reduction,
including the reduction of RWAs, CET1 ratio (and key drivers of the
CET1 ratio, including timing, impact and details), Pillar 2 and
other regulatory buffer requirements and MREL and non-financial
performance measures, such as climate and sustainability-related
performance ambitions, targets and metrics, including in relation
to initiatives to transition to a net zero economy, climate and
sustainable funding and financing and financed
emissions.
Important factors that could affect the actual outcome of the
forward-looking statements
We caution you that a large number
of important factors could adversely affect our results or our
ability to implement our strategy, cause us to fail to meet our
targets, predictions, expectations and other anticipated outcomes
or affect the accuracy of forward-looking statements described in
this document. These factors include, but are not limited to, those
set forth in the risk factors and the other uncertainties described
in NatWest Markets Plc's Annual Report and its other public
filings. The principal risks and uncertainties that could adversely
affect NWM Group's future results, its financial condition and/or
prospects and cause them to be materially different from what is
forecast or expected, include, but are not limited to: economic and
political risk (including in respect of: economic and political
risks and uncertainties in the UK and global markets, including as
a result of inflation and interest rates, supply chain disruption,
and geopolitical developments; changes in interest rates and
foreign currency exchange rates; and HM Treasury's ownership of
NatWest Group plc); business change and execution risk (including
in respect of: NatWest Group's strategy and NatWest Group's
creation of its Commercial & Institutional franchise (of which
NWM Group forms part) and the transfer of NatWest Group's Western
European corporate portfolio); financial resilience risk (including
in respect of: NWM Group's ability to meet targets, generate
returns or implement its strategy effectively; prudential
regulatory requirements for capital and MREL; NWM Group's reliance
on access to capital markets directly or indirectly through its
parent (NatWest Group); capital, funding and liquidity risk;
reductions in the credit ratings; the competitive environment; the
requirements of regulatory stress tests; counterparty and borrower
risk; model risk; sensitivity to accounting policies, judgments,
estimates and assumptions (and the economic, climate, competitive
and other forward looking information affecting those judgments,
estimates and assumptions); changes in applicable accounting
standards; the adequacy of NatWest Group's resolution plans; and
the application of UK statutory stabilisation or resolution powers
to NatWest Group); climate and sustainability risk (including in
respect of: risks relating to climate change and
sustainability-related risks; both the execution and reputational
risk relating to NatWest Group's climate change-related strategy,
ambitions, targets and transition plan; climate and
sustainability-related data and model risk; increasing levels of
climate, environmental, human rights and other
sustainability-related laws, regulation and oversight; climate,
environmental, human rights and other sustainability-related
litigation, enforcement proceedings, investigations and conduct
risk); operational and IT resilience risk (including in respect of:
operational risks (including reliance on third party suppliers);
cyberattacks; the accuracy and effective use of data; attracting,
retaining and developing senior management and skilled personnel;
complex IT systems; NWM Group's risk management framework; and NWM
Group's reputational risk); and legal, regulatory and conduct risk
(including in respect of: the impact of substantial regulation and
oversight; the outcome of legal, regulatory and governmental
actions and investigations as well as remedial undertakings; and
changes in tax legislation or failure to generate future taxable
profits).
Forward-looking statements
continued
Climate and sustainability-related
disclosures
Climate and sustainability-related
disclosures in this document are not measures within the scope of
International Financial Reporting Standards ('IFRS'), use a greater
number and level of judgments, assumptions and estimates, including
with respect to the classification of climate and sustainable
funding and financing activities, than our reporting of historical
financial information in accordance with IFRS. These judgments,
assumptions and estimates are highly likely to change materially
over time, and, when coupled with the longer time frames used in
these disclosures, make any assessment of materiality inherently
uncertain. In addition, our climate risk analysis, our ambition to
be net zero across our financed emissions, assets under management
and operational value chain by 2050 and, the implementation of our
climate transition plan, remain under development, and the data
underlying our analysis and strategy remain subject to evolution
over time. The process we have adopted to define, gather and report
data on our performance on climate and sustainability-related
measures is not subject to the formal processes adopted for
financial reporting in accordance with IFRS and there are currently
limited industry standards or globally recognised established
practices for measuring and defining climate and
sustainability-related metrics. As a result, we expect that certain
climate and sustainability-related disclosures made in this
document are likely to be amended, updated, recalculated or
restated in the future. Please also refer to the cautionary
statement in the section entitled 'Climate and
sustainability-related and other forward-looking statements and
metrics' of the NatWest Group 2024 Sustainability Disclosures
Report published by NatWest Group plc for the consolidated group,
including NatWest Markets Plc.
Cautionary statement regarding Non-IFRS financial measures and
APMs
NWM Group prepares its financial
statements in accordance with UK-adopted International Accounting
Standards (IAS) and International Financial Reporting Standards
(IFRS). This document may contain financial measures and ratios not
specifically defined under GAAP or IFRS ('Non-IFRS') and/or
alternative performance measures ('APMs') as defined in European
Securities and Markets Authority ('ESMA') guidelines. Non-IFRS
measures and APMs are adjusted for notable and other defined items
which management believes are not representative of the underlying
performance of the business and which distort period-on-period
comparison. Non-IFRS measures provide users of the financial
statements with a consistent basis for comparing business
performance between financial periods and information on elements
of performance that are one-off in nature. Any Non-IFRS measures
and/or APMs included in this document, are not measures within the
scope of IFRS, are based on a number of assumptions that are
subject to uncertainties and change, and are not a substitute for
IFRS measures.
The information, statements and
opinions contained in this document do not constitute a public
offer under any applicable legislation or an offer to sell or a
solicitation of an offer to buy any securities or financial
instruments or any advice or recommendation with respect to such
securities or other financial instruments.
Legal Entity Identifier:
RR3QWICWWIPCS8A4S074