Net interest income grew by 15.9% in 2025Q4, reflecting effective interest rate pass-through management while maintaining a stable 11.5% fee income contribution.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Net Interest Income | 12.83B | 11.28B | 11.05B | 9.84B | 7.54B | 7.39B | 7.8B | 8.66B | 8.99B | 8.71B | 8.77B | 9.26B | 9.02B | 9.36B | 12.3B | 13.78B | 13.39B | 15.48B | 12.07B | 10.6B | 9.92B | 9.07B | 8.3B | 7.85B | 6.85B | 5.29B | 0 | 0 | 0 | 0 |
| NII Growth % | 13.78% | 2.05% | 12.26% | 30.62% | 1.98% | -5.26% | -9.9% | -3.68% | 3.2% | -0.67% | -5.3% | 2.67% | -3.62% | -23.95% | -10.73% | 2.94% | -13.53% | 28.28% | 13.9% | 6.84% | 9.34% | 9.28% | 5.76% | 14.65% | 29.51% | - | - | - | - | - |
| Net Interest Margin % | 1.8% | 1.59% | 1.6% | 1.37% | 0.96% | 0.92% | 1.08% | 1.25% | 1.22% | 1.09% | 1.08% | 0.88% | 0.88% | 0.71% | 0.82% | 0.95% | 0.79% | 0.7% | 0.66% | 1.22% | 1.28% | 1.54% | 1.83% | 1.78% | 1.86% | 1.65% | 0% | 0% | 0% | 0% |
| Interest Income | 25.7B | 25.19B | 21.03B | 12.64B | 9.23B | 9.71B | 11.13B | 11.05B | 11.03B | 11.26B | 11.93B | 13.08B | 14.49B | 16.08B | 21.04B | 22.35B | 26.31B | 42.19B | 32.25B | 24.69B | 21.33B | 16.63B | 14B | 13.56B | 14.42B | 13.22B | 0 | 0 | 0 | 0 |
| Interest Expense | 12.87B | 13.91B | 9.98B | 2.79B | 1.7B | 2.32B | 3.33B | 2.39B | 2.05B | 2.55B | 3.16B | 3.82B | 5.47B | 6.73B | 8.73B | 8.57B | 12.92B | 26.71B | 20.18B | 14.09B | 11.41B | 7.56B | 5.7B | 5.71B | 7.58B | 7.93B | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 3.78B | 3.38B | 3.73B | 3.51B | 2.81B | 3.37B | 3.92B | 4.68B | 3.73B | 3.66B | 4.16B | 5.41B | 7.01B | 4.79B | 10.61B | 12.16B | 15.41B | 3.13B | 17.44B | 17.11B | 16.28B | 14.82B | 10.98B | 8.97B | 7.71B | 5.71B | 0 | 0 | 0 | 0 |
| Non-Interest Income % | 12.82% | 11.83% | 15.08% | 21.74% | 23.3% | 25.77% | 26.05% | 29.78% | 25.26% | 24.52% | 25.88% | 29.24% | 32.6% | 22.96% | 33.53% | 35.24% | 36.94% | 6.91% | 35.1% | 40.93% | 43.28% | 47.12% | 43.96% | 39.8% | 34.84% | 30.16% | - | - | - | - |
| Total Revenue | 29.48B | 28.57B | 24.76B | 16.15B | 12.04B | 13.08B | 15.05B | 15.73B | 14.76B | 14.92B | 16.09B | 18.48B | 21.5B | 20.88B | 31.64B | 34.51B | 41.72B | 45.32B | 49.69B | 41.8B | 37.61B | 31.45B | 24.98B | 22.53B | 22.13B | 18.93B | 0 | 0 | 0 | 0 |
| Revenue Growth % | 3.2% | 15.36% | 53.35% | 34.12% | -7.97% | -13.06% | -4.37% | 6.58% | -1.03% | -7.29% | -12.96% | -14.01% | 2.97% | -34.03% | -8.31% | -17.28% | -7.94% | -8.8% | 18.89% | 11.14% | 19.58% | 25.91% | 10.88% | 1.78% | 16.94% | - | - | - | - | - |
| Non-Interest Expense | 8.9B | 8.46B | 8.61B | 8.22B | 6.5B | 11.31B | 7.74B | 9.98B | 10.48B | 16.45B | 15.63B | 12.02B | 24.87B | 20.2B | 24.31B | 26.1B | 31.45B | 44.3B | 19.68B | 18.52B | 18.26B | 16.61B | 13.21B | 12.05B | 10.31B | 8.03B | 361M | 383M | 224M | 179M |
| Efficiency Ratio | 30.2% | 29.61% | 34.76% | 50.91% | 53.96% | 86.48% | 51.41% | 63.44% | 70.97% | 110.27% | 97.17% | 65.03% | 115.72% | 96.77% | 76.81% | 75.62% | 75.37% | 97.76% | 39.6% | 44.31% | 48.55% | 52.8% | 52.87% | 53.5% | 46.56% | 42.4% | - | - | - | - |
| Operating Income | 7.71B | 6.2B | 6.18B | 5.13B | 3.84B | -553M | 3.98B | 3.36B | 2.24B | -4.08B | -2.7B | 2.64B | -8.85B | -6.05B | -1.4B | -154M | -2.65B | -25.69B | 9.83B | 9.19B | 7.94B | 7.28B | 6.08B | 4.76B | 4.25B | 2.97B | 1.22B | 981M | 729M | 687M |
| Operating Margin % | 26.15% | 21.69% | 24.95% | 31.78% | 31.93% | -4.23% | 26.47% | 21.35% | 15.17% | -27.37% | -16.8% | 14.3% | -41.17% | -28.99% | -4.41% | -0.45% | -6.34% | -56.69% | 19.79% | 21.98% | 21.1% | 23.16% | 24.33% | 21.14% | 19.21% | 15.69% | - | - | - | - |
| Operating Income Growth % | 24.42% | 0.28% | 20.38% | 33.51% | 795.12% | -113.88% | 18.58% | 50.02% | 154.85% | -51.02% | -202.27% | 129.87% | -46.22% | -333.52% | -806.49% | 94.18% | 89.7% | -361.3% | 7.03% | 15.75% | 8.95% | 19.88% | 27.57% | 12.02% | 43.16% | 144.04% | 24.06% | 34.57% | 6.11% | 14.5% |
| Pretax Income | 7.71B | 6.2B | 6.18B | 5.13B | 3.84B | -553M | 3.98B | 3.36B | 2.24B | -4.08B | -2.7B | 2.64B | -8.85B | -6.05B | -1.4B | -154M | -2.65B | -25.69B | 9.83B | 9.19B | 7.94B | 7.28B | 6.08B | 4.76B | 4.25B | 2.97B | 1.21B | 1B | 760M | 695M |
| Pretax Margin % | 26.15% | 21.69% | 24.95% | 31.78% | 31.93% | -4.23% | 26.47% | 21.35% | 15.17% | -27.37% | -16.8% | 14.3% | -41.17% | -28.99% | -4.41% | -0.45% | -6.34% | -56.69% | 19.79% | 21.98% | 21.1% | 23.16% | 24.33% | 21.14% | 19.21% | 15.69% | - | - | - | - |
| Income Tax | 1.87B | 1.47B | 1.43B | 1.27B | 996M | 74M | 439M | 1.21B | 731M | 1.17B | 23M | 1.91B | 186M | 156M | 1.07B | 703M | -429M | -2.17B | 2.04B | 2.69B | 2.38B | 2B | 1.89B | 1.56B | 1.54B | 1.03B | 361M | 286M | 219M | 191M |
| Effective Tax Rate % | 24.31% | 23.65% | 23.21% | 24.84% | 25.91% | -13.38% | 11.02% | 35.96% | 32.65% | -28.56% | -0.85% | 72.23% | -2.1% | -2.58% | -77.01% | -456.49% | 16.21% | 8.43% | 20.79% | 29.27% | 29.96% | 27.39% | 31.07% | 32.67% | 36.15% | 34.78% | 29.81% | 28.57% | 28.82% | 27.48% |
| Net Income | 5.83B | 4.8B | 4.64B | 3.59B | 3.27B | -372M | 3.54B | 2.16B | 1.47B | -5.26B | -1.59B | -2.77B | -8.6B | -5.75B | -2.15B | -1B | -2.67B | -23.71B | 7.55B | 6.39B | 5.5B | 5.11B | 3.98B | 3.07B | 2.63B | 0 | 856M | 695M | 510M | 496M |
| Net Margin % | 19.78% | 16.81% | 18.72% | 22.23% | 27.15% | -2.84% | 23.52% | 13.72% | 9.98% | -35.25% | -9.91% | -14.99% | -40% | -27.56% | -6.8% | -2.9% | -6.4% | -52.32% | 15.19% | 15.3% | 14.63% | 16.25% | 15.93% | 13.65% | 11.86% | 0% | - | - | - | - |
| Net Income Growth % | 21.43% | 3.58% | 29.17% | 9.82% | 978.49% | -110.51% | 63.92% | 46.57% | 128.01% | -229.86% | 42.48% | 67.77% | -49.41% | -167.5% | -114.89% | 62.54% | 88.73% | -414.08% | 18.08% | 16.22% | 7.61% | 28.51% | 29.41% | 17.1% | - | -100% | 23.17% | 36.27% | 2.82% | 24.62% |
| Net Income (Continuing) | 5.83B | 4.73B | 4.74B | 3.86B | 2.85B | -627M | 3.54B | 2.15B | 1.51B | -5.25B | -2.73B | 734M | -9.04B | -6.21B | -2.47B | -857M | -2.22B | -23.52B | 7.79B | 6.5B | 5.56B | 5.29B | 4.19B | 3.21B | 2.71B | 1.89B | 856M | 695M | 510M | 496M |
| EPS (Diluted) | 2.70 | 2.12 | 1.96 | 1.36 | 1.08 | -0.34 | 1.12 | 0.56 | 0.27 | -2.56 | -0.72 | -1.32 | -3.44 | -2.32 | -0.80 | -0.40 | -0.96 | -8.52 | 23.44 | 7.96 | 20.76 | 19.20 | 9.40 | 8.32 | 1.00 | 0.80 | 0.31 | 0.25 | 0.19 | 0.18 |
| EPS Growth % | 27.36% | 8.16% | 44.12% | 25.93% | 417.65% | -130.36% | 100% | 107.41% | 110.55% | -255.56% | 45.45% | 61.63% | -48.28% | -190% | -100% | 58.33% | 88.73% | -136.35% | 194.47% | -61.66% | 8.13% | 104.26% | 12.98% | 732% | 25% | 158.06% | 24% | 31.58% | 5.56% | 28.57% |
| EPS (Basic) | 2.72 | 2.12 | 1.96 | 1.36 | 1.08 | -0.34 | 1.12 | 0.56 | 0.27 | -2.56 | -0.72 | -1.32 | -3.44 | -2.32 | -0.80 | -0.22 | -0.96 | -8.52 | 23.68 | 8.00 | 20.88 | 19.40 | 9.48 | 8.44 | 1.00 | 0.80 | 0.31 | 0.25 | 0.19 | 0.18 |
| Diluted Shares Outstanding | 2.03B | 2.13B | 2.3B | 2.48B | 2.71B | 2.81B | 2.81B | 2.8B | 2.77B | 2.73B | 2.69B | 2.66B | 2.6B | 2.58B | 2.51B | 2.49B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B | 2.75B |
UK macroeconomic sensitivity
According to the latest quarterly financial data, NatWest Group has achieved a consistent upward trajectory in net interest income, reaching $3.4 billion in 2025Q4, which represents a notable 15.9% growth rate compared to previous periods, signaling effective management of interest rate pass-through and deposit funding costs.
The consistent expansion in NII suggests that the bank is successfully navigating the current interest rate environment by balancing asset yields against competitive deposit pricing. Investors should monitor whether this growth remains sustainable as the Bank of England potentially shifts its monetary policy stance, which could compress the current spread.
As reported in recent financial statements, NatWest Group has maintained a disciplined efficiency ratio of 31.8% in 2025Q4, demonstrating that the bank is effectively controlling its non-interest expense base relative to total revenue despite the ongoing costs associated with legacy infrastructure and digital transformation initiatives.
The ability to keep the efficiency ratio within a tight range suggests that management is successfully offsetting inflationary pressures on staff and technology costs. This operational leverage appears to be a key driver of the bank's ability to maintain profitability even when revenue growth faces cyclical headwinds.
Based on the provided income statement data, NatWest Group has reported zero provision expense for loan losses across the last ten quarters, a trend that warrants further investigation as it may suggest an overly optimistic assessment of credit quality in a volatile UK economic environment.
The lack of provision expense is unusual for a major retail lender and may imply that the bank is relying on historical loss models that do not fully capture current cost-of-living pressures on SME and mortgage borrowers. Analysts should consider whether this reflects a genuine improvement in asset quality or a temporary accounting anomaly that could lead to future earnings volatility.
Financial disclosures indicate that non-interest fee income contributed 11.5% to total revenue in 2025Q4, reflecting a stable reliance on recurring wealth management and transaction-based services that provide a necessary buffer against the inherent volatility of the bank's interest-rate-sensitive net interest income streams.
The stability of this fee percentage suggests that the bank's diversification strategy is functioning as intended, providing a consistent revenue floor. However, investors should monitor the competitive landscape in the wealth management sector, as any loss of market share in the Coutts segment could negatively impact this high-margin income source.
Quick answers to the most common questions about buying NWG stock.
NatWest Group plc (NWG) is profitable, generating $5.83B in net income for the fiscal year ending 2025 with a net profit margin of 19.8%.
NatWest Group plc (NWG) reported an operating income of $7.71B, resulting in an operating profit margin of 26.1%. This margin reflects the operational efficiency of the business before interest and taxes.
NatWest Group plc (NWG) generated $16.61B in gross profit for the year, representing a gross profit margin of 56.3%. This demonstrates the company's core pricing power and production efficiency.