NatWest Group shares advanced in early Friday trading following the release of its full-year financial results, which featured a significant profit increase and updated strategic targets.
Financial Performance and Capital Returns
The UK-based lender reported a pretax operating profit of £7.7 billion for 2025, a 24% jump from the prior year. Total income reached £16.6 billion, supported by a net interest margin of 2.34%. The bank's return on tangible equity (RoTE) stood at 19.2% for the period.
Directors recommended a final dividend of 23.0 pence per share, bringing the total annual payout to 32.5 pence. Additionally, management announced a new £750 million share buyback program scheduled for the first half of 2026.
Updated Ambitions and Strategic Focus
Chief Executive Paul Thwaite stated the group is "raising our ambition and sharpening our strategic focus." NatWest has increased its medium-term RoTE target to more than 18% by 2028, up from a previous goal of over 15% for 2027.
The bank's strategic update includes a greater emphasis on growing its fee-based revenue streams, particularly in wealth management, as it navigates an environment of potentially declining interest rates.
Investors are awaiting further details on the bank's outlook and its recent wealth management acquisition, with a management briefing scheduled for later in the day. The next scheduled trading update is set for May 1, when first-quarter results will be published.