Sheel Shah's questions to NatWest Group PLC (NWG) leadership • Q1 2025
Question
Sheel Shah of Autonomous Research inquired about the sustainability of the strong Q1 income performance, particularly the noninterest income component, and asked for the drivers behind the 2 basis point increase in lending margins.
Answer
CFO Katie Murray explained that while Q1 performance was strong, leading to an upgraded full-year income guidance, the noninterest income level should not be considered a run rate. She noted tailwinds from the structural hedge and the Sainsbury's portfolio are partially offset by expected rate cuts and economic uncertainty. The lending margin increase was attributed to a favorable mix shift towards higher-margin unsecured and corporate lending.