Question · Q3 2025
Arman Rakhar of Barclays sought insights into the key drivers for NatWest's income in 2026, including margin developments, loan growth, and fee income. He also inquired about the longer-term targets for 2028, specifically regarding structural operating leverage and the potential for Return on Tangible Equity (RoTE) accretion beyond the current 18%.
Answer
CFO Katie Murray outlined expectations for continued income growth into 2026, driven by strong multi-year loan growth, the structural hedge contributing over £1 billion more in 2025, and sustained non-interest income performance. CEO Paul Thwaite affirmed confidence in strong operating leverage, citing a 5% cost-income ratio improvement and over 9% jaws for the year, which will inform the 2028 targets to be shared in February.