Jason Napier's questions to NatWest Group PLC (NWG) leadership • Q2 2025
Question
Jason Napier from UBS Group asked about the philosophy behind NatWest's cost management, questioning why the continued outperformance is being reinvested for simplification rather than allowing the savings to improve near-term profitability.
Answer
CEO Paul Thwaite defended the strategy, emphasizing that disciplined management of day-to-day costs creates the capacity to invest in long-term value creation, such as digitizing customer journeys and simplifying technology. He pointed to the significant year-on-year reduction in the cost/income ratio to 49% and strong operating jaws as proof that the bank is delivering both efficiency and a better bank for the future.