Ed Firth's questions to NatWest Group PLC (NWG) leadership • Q2 2025
Question
Ed Firth of KBW requested clarification on the structural hedge mechanics for 2026 and questioned the bank's M&A strategy, asking if the criteria had shifted and if the latest buyback signaled that acquisitions were off the table.
Answer
CFO Katie Murray explained the 2026 hedge benefit is larger due to a stable notional and the averaging effect of reinvestments already locked in. CEO Paul Thwaite clarified the M&A criteria have always been to add 'scale or capabilities,' not just skills. He stressed that any deal faces a very high financial bar versus organic growth or buybacks, and the bank's disciplined, balanced approach has not changed.