Jonathan Pierce's questions to NatWest Group PLC (NWG) leadership • Q2 2025
Question
Jonathan Pierce from Jefferies highlighted the extraordinarily low impairment metrics and asked if the through-the-cycle charge should now be considered lower, potentially impacting capital targets. He also asked about a significant shift from cash to gilts in the liquidity pool.
Answer
CFO Katie Murray confirmed the shift to gilts was to take advantage of the gilt-swap spread. On impairments, she acknowledged the benign environment but did not formally update the through-the-cycle guidance, though noted performance is at the low end. Regarding the capital target, she stated that it is under constant review and would be re-evaluated once there is final clarity on upcoming regulatory changes like Basel.