NatWest Group plc Files Form 6-K

TL;DR

NatWest Group plc filed a 6-K, incorporating info into its F-3 registration statement. Standard disclosure.

AI Summary

NatWest Group plc filed a Form 6-K on October 25, 2024, reporting information as a foreign private issuer. This filing is incorporated by reference into the company's Registration Statement on Form F-3 (File No. 333-261837). The report includes a cautionary statement regarding forward-looking statements.

Why It Matters

This filing serves to update the company's registration statement, providing ongoing disclosure to investors and regulators about NatWest Group plc's financial and operational status.

Risk Assessment

Risk Level: low — This is a routine disclosure filing (Form 6-K) and does not contain new material financial information or significant strategic changes.

Key Players & Entities

• NatWest Group plc (company) — Filer of the Form 6-K
• 001-10306 (company) — SEC File Number for NatWest Group plc
• 333-261837 (company) — Registration Statement File Number for NatWest Group plc
• 20241025 (date) — Filing date of the Form 6-K

FAQ

Filing Documents

• tm2424386d1_6k.htm (6-K) — 1407KB
• 0001104659-24-111283.txt ( ) — 1409KB

Forward-looking statements

Forward-looking statements Cautionary statement regarding

forward-looking statements

forward-looking statements Certain sections in this document contain ‘forward-looking statements’ as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements that include the words ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘commit’, ‘believe’, ‘should’, ‘intend’, ‘will’, ‘plan’, ‘could’, ‘probability’, ‘risk’, ‘Value-at-Risk (VaR)’, ‘target’, ‘goal’, ‘objective’, ‘may’, ‘endeavour’, ‘outlook’, ‘optimistic’, ‘prospects’ and similar expressions or variations on these expressions. In particular, this document includes forward-looking outlook, targets and guidance relating to financial performance measures, such as income growth, operating costs, RoTE, loan impairment rate, ROE, discretionary capital distribution targets (including payment of dividends to shareholders) and participation in directed buybacks, balance sheet reduction, including the reduction of RWAs, CET1 ratio (and key drivers of the CET1 ratio including timing, impact and details), Pillar 2 and other regulatory buffer requirements and MREL and non-financial performance measures, such as NatWest Group’s initial area of focus, climate and sustainability-related performance ambitions, targets and metrics, including in relation to initiatives to transition to a net zero economy, climate and sustainable funding and financing and financed emissions. In addition, this document includes forward-looking statements relating, but not limited to: implementation of NatWest Group’s strategy (including in relation to: cost-controlling measures, the Commercial & Institutional segment and achieving a number of various targets within the relevant timeframe); the timing and outco

forward-looking statements

forward-looking statements These statements are based on current plans, expectations, estimates, targets and projections, and are subject to significant inherent risks, uncertainties and other factors, both external and relating to NatWest Group’s strategy or operations, which may result in NatWest Group being unable to achieve the current plans, expectations, estimates, targets, projections and other anticipated outcomes expressed or implied by such forward-looking statements. In addition, certain of these disclosures are dependent on choices relying on key model characteristics and assumptions and are subject to various limitations, including assumptions and estimates made by management. By their nature, certain of these disclosures are only estimates and, as a result, actual future results, gains or losses could differ materially from those that have been estimated. Accordingly, undue reliance should not be placed on these statements. The forward-looking statements contained in this document speak only as of the date we make them and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein, whether to reflect any change in our expectations with regard thereto, any change in events, conditions or circumstances on which any such statement is based, or otherwise, except to the extent legally required. Important factors that could affect the actual outcome of the forward-looking statements We caution you that a large number of important factors could adversely affect our results or our ability to implement our strategy, cause us to fail to meet our targets, predictions, expectations and other anticipated outcomes or affect the accuracy of forward-looking statements described in this document. These factors include, but are not limited to, those set forth in the risk factors and the other uncertainties described in NatWest Group plc’s Annual Report on Form 20-F and its other filings with t

Forward-looking statements continued

Forward-looking statements continued proceedings investigations and conduct risk; and reductions in ESG ratings); operational and IT resilience risk (including in respect of: operational risks (including reliance on third party suppliers); cyberattacks; the accuracy and effective use of data; complex IT systems; attracting, retaining and developing diverse senior management and skilled personnel; NatWest Group’s risk management framework; and reputational risk); and legal, regulatory and conduct risk (including in respect of: the impact of substantial regulation and oversight; the outcome of legal, regulatory and governmental actions, investigations and remedial undertakings; and changes in tax legislation or failure to generate future taxable profits). Climate and sustainability-related disclosures Climate and sustainability-related disclosures in this document are not measures within the scope of International Financial Reporting Standards (‘IFRS’), use a greater number and level of judgments, assumptions and estimates, including with respect to the classification of climate and sustainable funding and financing activities, than our reporting of historical financial information in accordance with IFRS. These judgments, assumptions and estimates are highly likely to change materially over time, and, when coupled with the longer time frames used in these disclosures, make any assessment of materiality inherently uncertain. In addition, our climate risk analysis, net zero strategy, including the implementation of our climate transition plan remain under development, and the data underlying our analysis and strategy remain subject to evolution over time. The process we have adopted to define, gather and report data on our performance on climate and sustainability-related measures is not subject to the formal processes adopted for financial reporting in accordance with IFRS and there are currently limited industry standards or globally recognised

Business

Business performance summary 6 Q3 2024 performance summary 8 Performance key metrics and ratios 10 Chief Financial Officer’s review 11 Retail Banking 12 Private Banking 13 Commercial & Institutional 14 Central items & other 15 Segment performance Risk and capital management 20 Credit risk 20 Segment analysis – portfolio summary 21 Segment analysis – loans 21 Movement in ECL provision 22 ECL post model adjustments 23 Sector analysis – portfolio summary 28 Capital, liquidity and funding risk 34 Pension risk

Financial statements

Financial statements and notes 35 Condensed consolidated income statement 36 Condensed consolidated statement of comprehensive income 37 Condensed consolidated balance sheet 38 Condensed consolidated statement of changes in equity 40 Presentation of condensed consolidated financial statements 40 Litigation and regulatory matters 40 Post balance sheet events Additional information 41 Other financial data Appendix 42 Non-IFRS financial measures 47 Performance measures not defined under IFRS NatWest Group - Form 6-K Q3 2024 5 Q3 2024 performance summary Chief Executive, Paul Thwaite, commented: “The strength of NatWest Group’s performance is underpinned by the support we provide to our 19 million customers in every nation and region of the UK. By continuing to deliver against our strategy, we are growing and simplifying our bank whilst managing our capital more efficiently. As the UK’s biggest bank for business, and one that serves millions of households, NatWest Group plays a key role in driving economic growth across the UK. Throughout the third quarter of 2024, we have grown our lending, helping customers to buy or remortgage their homes or to start and grow their businesses. With customer activity increasing, defaults remaining low and optimism amongst businesses and consumers, we are well placed to succeed with our customers and for our shareholders in the months and years ahead.” Q3 2024 performance – Attributable profit of £1,172 million, return on equity of 12.3% and a return on tangible equity (RoTE) of 18.3%. – Q3 2024 total income of £3,744 million was £85 million, or 2.3%, higher than Q2 2024 and was £256 million, or 7.3%, higher than Q3 2023. Total income excluding notable items (1) of £3,772 million was £182 million, or 5.1%, higher than Q2 2024 primarily reflecting lending and deposit growth and margin expansion. Net interest margin (NI

forward-looking statements. Refer to Forward-looking statements in this announcement

forward-looking statements. Refer to Forward-looking statements in this announcement. NatWest Group - Form 6-K Q3 2024 7 Business performance summary Nine months ended Quarter ended 30 September 30 September 30 September 30 June 30 September 2024 2023 Variance 2024 2024 Variance 2023 Variance Summary consolidated income statement £m £m % £m £m % £m % Net interest income 8,307 8,411 (1.2%) 2,899 2,757 5.2% 2,685 8.0% Non-interest income 2,571 2,804 (8.3%) 845 902 (6.3%) 803 5.2% Total income 10,878 11,215 (3.0%) 3,744 3,659 2.3% 3,488 7.3% Litigation and conduct costs (142) (242) (41.3%) (41) (77) (46.8%) (134) (69.4%) Other operating expenses (5,740) (5,600) 2.5% (1,784) (1,928) (7.5%) (1,793) (0.5%) Operating expenses (5,882) (5,842) 0.7% (1,825) (2,005) (9.0%) (1,927) (5.3%) Profit before impairment losses/releases 4,996 5,373 (7.0%) 1,919 1,654 16.0% 1,561 22.9% Impairment (losses)/releases (293) (452) (35.2%) (245) 45 nm (229) 7.0% Operating profit before tax 4,703 4,921 (4.4%) 1,674 1,699 (1.5%) 1,332 25.7% Tax charge (1,232) (1,439) (14.4%) (431) (462) (6.7%) (378) 14.0% Profit from continuing operations 3,471 3,482 (0.3%) 1,243 1,237 0.5% 954 30.3% Profit/(loss) from discontinued operations, net of tax 12 (138) (108.7%) 1 15 (93.3%) (30) (103.3%) Profit for the period 3,483 3,344 4.2% 1,244 1,252 (0.6%) 924 34.6% Performance key metrics and ratios Notable items within total income (1) £102m £318m nm (£28m) £69m nm (£26m) nm Total income excluding notable items (1) £10,776m £10,897m (1.1%) £3,772m £3,590m 5.1% £3,514m 7.3% Net interest margin (1) 2.11% 2.17% (6bps) 2.18% 2.10% 8bps 2.05% 13bps Average interest earning assets (1) £526bn £519bn 1

View Full Filing

View this 6-K filing on SEC EDGAR