Gildas Surry

Gildas Surry of Crédit Agricole asked for guidance on the projected CET1 savings from SRTs over the next 2-3 years, and how NatWest Group reconciles the increasing digitalization of retail banking with the stable mix of stable versus less stable deposits in LCR calculations.

Answer

CFO Katie Murray and Treasurer Donal Quaid addressed the questions. Katie Murray noted the stability in the split between non-interest-bearing and interest-bearing deposits, expecting continued growth in non-interest-bearing deposits. Donal Quaid added that digitalization hasn't significantly changed customer trends in deposit stability, thus not materially impacting LCR metrics. Regarding SRTs, Donal Quaid confirmed that the analyst's projection of 60-80 basis points CET1 benefit over the next few years is 'not too far away,' considering the current year's GBP 4.6 billion RWA benefit and last year's GBP 4 billion.

Gildas Surry from Crédit Agricole followed up on Barclays' 2024 private credit partnership with AGL Credit Management, asking about its success and materiality. He also sought clarification on the RWA density range for risk transfer activities and the impact of the increased FSCS guarantee threshold on the LCR's stable versus less stable deposit categories.

Answer

Group Finance Director Anna Cross confirmed the private credit joint venture's success but noted its immateriality to the overall business, reiterating the bank's disciplined approach to credit decisions. Group Treasurer Dan Fairclough suggested looking at RWA density in specific books rather than Pillar 3 disclosures for SRTs and stated that the increase in the FSCS guarantee threshold had a minor impact on LCR, affecting about GBP 1 billion of liquidity value, thus not materially impacting the strong LCR.

Gildas Surry from Crédit Agricole followed up on Barclays' private credit partnership with AGL Credit Management, asking about its success and shared economics. He also sought clarification on the RWA density for risk transfer activities and the impact of the increased FSCS guarantee threshold on LCR retail deposit categories.

Answer

Anna Cross, Group Finance Director, confirmed the private credit joint venture with AGL is successful but not material to the overall business, reiterating Barclays' disciplined approach to credit decisions. Dan Fairclough, Group Treasurer, suggested that RWA density in specific books is a more accurate way to assess SRT benefits than Pillar 3 disclosures, offering follow-up from investor relations. He stated that the increase in the FSCS guarantee threshold was a minor change, impacting liquidity value by only about GBP 1 billion, and had no material impact on the LCR, which remains very strong.