Guy Stebbings's questions to NatWest Group PLC (NWG) leadership • Q2 2025
Question
Guy Stebbings of BNP Paribas Exane questioned how the structural hedge benefits flow through to the P&L, asking if they could be offset by pressure on other items like mortgage spreads, and inquired about the current mortgage application spreads.
Answer
CFO Katie Murray explained that the structural hedge is performing as expected, with significant income locked in for 2025 and 2026. She stated that while the mortgage market is competitive, spreads appear to be stabilizing, and the bank evaluates products on their standalone returns. CEO Paul Thwaite added that NatWest is broadening its mortgage proposition into higher-margin areas like first-time buyer and buy-to-let products, which is driving market share gains.