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    Jonathan Richard Pierce • Numis

    Jonathan Richard Pierce's questions to NatWest Group PLC (NWG) leadership

    Jonathan Richard Pierce's questions to NatWest Group PLC (NWG) leadership • Q1 2025

    Question

    Jonathan Pierce from Jefferies asked about the outlook for AT1 coupon costs and future issuance plans. He also inquired about capital return intentions, including buybacks, and the potential income impact from the bank's RWA optimization efforts.

    Answer

    CFO Katie Murray confirmed the AT1 coupon cost is approximately £100 million per quarter but could not comment on future calls. Executive Paul Thwaite stated that capital returns and buybacks will be reviewed with the Board at half-year and full-year. Regarding RWA optimization, he explained the trades are assessed on a returns basis and are accretive, while declining to specify the income cost.

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    Jonathan Richard Pierce's questions to NatWest Group PLC (NWG) leadership • Q1 2024

    Question

    Jonathan Richard Pierce of Numis pressed on the full-year revenue guidance, asking if the lower end of the GBP 13.0-13.5 billion range could be dismissed given the market now expects fewer rate cuts. He also questioned if consensus NII expectations for 2025-26 are too conservative considering the significant tailwind from the structural hedge.

    Answer

    Executive Paul Thwaite stated that while the bank is increasingly confident in its 2024 guidance, it is not changing the range or 'confining any part to the dustbin' at this early stage of the year. CFO Katie Murray reiterated confidence in income growth through 2026, supported by the structural hedge tailwind, which is key to delivering the greater than 13% ROTE target.

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    Jonathan Richard Pierce's questions to Barclays PLC (BCS) leadership

    Jonathan Richard Pierce's questions to Barclays PLC (BCS) leadership • Q1 2025

    Question

    Jonathan Richard Pierce followed up on capital, asking if Barclays now intends to operate closer to a 14% CET1 ratio, and questioned the low ECL sensitivity shown in the bank's downside scenarios.

    Answer

    Executive Angela Cross reiterated guidance to operate in the top half of the 13-14% range, stating the high capital level is an intentional result of the plan's success, not a signal for M&A. She clarified that the IFRS 9 sensitivity disclosures are not predictive, as they are based on a static balance sheet and exclude dynamic factors like stage migration and management actions. Executive Coimbatore Venkatakrishnan added that capital prudence is expected in the current environment.

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