NatWest Markets Plc / Key word(s): 9 Month figures
30.10.2026 / 08:00 CET/CEST
NatWest Markets Group Q3 2026 Interim Management Statement ci.natwest.com NatWest Markets Group (NWM Group) Results for Q3 2026 The operating environment in the third quarter of 2026 continued to be shaped by geopolitical tensions, macroeconomic uncertainty and periodic market volatility. We maintained a high level of engagement with our customers, leveraging our specialist capabilities and established relationships to meet their evolving needs. We remained disciplined in our approach to risk, costs and balance sheet deployment, while delivering a resilient performance in a dynamic operating environment. Financial review NWM Group maintained its robust capital and liquidity position in Q3 2026 and reported a profit of £6 million, compared with a profit of £49 million in Q2 2026 and a profit of £126 million in Q3 2025. Total income decreased to £350 million in Q3 2026, largely driven by a foreign exchange (FX) reserves recycling credit recognised in the previous quarter and lower revenues in Fixed Income and Currencies. Operating expenses decreased in Q3 2026 to £335 million, largely driven by a charge recognised in the previous quarter relating to historical VAT matters and higher VAT recoveries. Financial performance | Total income of £350 million decreased by £86 million compared with £436 million in Q2 2026, largely due to an FX reserves recycling credit recognised in Q2 2026, lower Fixed Income revenues reflecting challenging market conditions and reduced customer activity, and a reduction in Currencies revenues driven by reduced FX volatility levels. Total income increased by £24 million compared with £326 million in Q3 2025, mainly driven by the impact of an FX reserves recycling debit in the comparative period and a stronger performance in Capital Markets, partially offset by lower Fixed Income and Currencies revenues. | | Operating expenses of £335 million in Q3 2026 were £64 million lower than £399 million in Q2 2026 and £66 million higher than £269 million in Q3 2025. Litigation and conduct costs of £47 million reflected ongoing progress in closing legacy matters including associated remediation activity and were up by £21 million compared with £26 million in Q2 2026 and by £73 million compared with a £26 million credit in Q3 2025. Other operating expenses of £288 million were down by £85 million compared with £373 million in Q2 2026, largely due to a charge in the comparative period relating to historical VAT matters, higher VAT recoveries and a decrease in staff costs, and down by £7 million compared with £295 million in Q3 2025, largely due to lower technology-related costs partially offset by an increase in intra-NatWest Group recharges for central support services. | | Total assets and liabilities increased by £20.4 billion and £20.8 billion to £188.8 billion and £182.2 billion respectively at 30 September 2026, compared with 31 December 2025. Funded assets increased in the period driven by higher settlement balances and loans - amortised cost. Derivative fair values increased, largely driven by volatility across major currencies and increases in interest rates during the period. | | NWM Plc paid an interim dividend of £160 million to NatWest Group plc on 25 September 2026. |
Capital and leverage | Total NWM Plc Risk-Weighted Assets (RWAs) were £22.6 billion at 30 September 2026, compared with £22.1 billion at 30 June 2026 and £21.5 billion at 31 December 2025. The increase since 31 December 2025 was primarily driven by increases in market risk, credit risk and counterparty credit risk. | | NWM Plc’s Common Equity Tier 1 (CET1) ratio decreased to 17.0% at 30 September 2026 compared with 18.4% at 31 December 2025, largely due to a reduction in CET1 capital from the dividend paid to NatWest Group plc, in addition to the increase in RWAs. | | Total minimum requirement for own funds and eligible liabilities (MREL) for NWM Plc was £9.5 billion at 30 September 2026 compared with £9.8 billion at 31 December 2025, mainly due to lower eligible capital and the maturity of a $1.0 billion internal MREL instrument with NatWest Group plc, offset by the issuance of two new internal MREL instruments with NatWest Group plc totalling $0.7 billion. The MREL ratio decreased to 41.9% of RWAs at 30 September 2026 from 45.6% at 31 December 2025, mainly reflecting the decrease in total MREL and the increase in RWAs in the period. | | NWM Plc’s leverage ratio decreased to 4.6% at 30 September 2026 compared with 5.0% at 31 December 2025, mainly driven by higher leverage exposure reflecting increases in trading assets and other financial assets, and a reduction in Tier 1 capital. |
Liquidity and funding | NWM Plc’s liquidity portfolio decreased by £2.5 billion to £17.7 billion at 30 September 2026. The average Liquidity Coverage Ratio (LCR)(1) increased to 204% compared with 198% at 31 December 2025, driven by lower funding outflows. | | NWM Plc issued public benchmark transactions amounting to £4.2 billion in the nine months ended 30 September 2026. These transactions comprised €2.3 billion, CHF0.2 billion and $0.5 billion of notes under our Euro Medium Term Note programme and $2.3 billion of notes under our US Medium Term Note programme. NWM Plc also raised funding in other formats throughout the period including, but not limited to, structured note issuance. |
ESG highlights As at the end of Q3 2026, we had delivered £25.6 billion towards the NatWest Group climate and transition finance (CTF) target to provide £200 billion in climate and transition finance(2) between 1 July 2025 and the end of 2030. Capital guidance(3) We retain the Capital guidance provided in the NatWest Markets Plc 2025 Annual Report and Accounts. | (1)Reported on an average basis in line with supervisory guidelines. The LCR is calculated as the average of the preceding 12 months. | | (2)The CTF framework has been developed to expand the support provided to customers to achieve their climate and/or transition ambitions and is used to determine the assets, activities, acquisition targets and companies that are eligible to be included towards the £200 billion CTF target. The climate and transition finance framework is available on natwestgroup.com. Climate and transition finance represents only a relatively small proportion of our overall financing and facilitation activities. | | (3)The guidance, targets, expectations and trends discussed in this section represent management’s current expectations and are subject to change, including as a result of the factors described in the Risk Factors section in the NatWest Markets Plc 2025 Annual Report and Accounts and the Summary Risk Factors in the NatWest Markets Plc 2026 Interim Results. These statements constitute forward-looking statements. Refer to Forward-looking statements in this document. |
Financial review The table below presents an analysis of key lines of NWM Group’s income statement for the nine months and quarter ended 30 September 2026. Commentary refers to the table below as well as the consolidated income statement shown on page 5. | | Nine months ended | | Quarter ended | | | 30 September | 30 September | | 30 September | 30 June | 30 September | | | 2026 | 2025 | | 2026 | 2026 | 2025 | | Income statement | £m | £m | | £m | £m | £m | | Net interest income | 377 | 353 | | 127 | 119 | 109 | | Non-interest income | 765 | 735 | | 223 | 317 | 217 | | Total income | 1,142 | 1,088 | | 350 | 436 | 326 | | Litigation and conduct costs | (92) | (39) | | (47) | (26) | 26 | | Other operating expenses | (995) | (897) | | (288) | (373) | (295) | | Operating expenses | (1,087) | (936) | | (335) | (399) | (269) | | Operating profit before impairment releases/losses | 55 | 152 | | 15 | 37 | 57 | | Impairment releases/(losses) | 1 | (1) | | (4) | 4 | (4) | | Operating profit before tax | 56 | 151 | | 11 | 41 | 53 | | Tax credit/(charge) | 27 | 64 | | (5) | 8 | 73 | | Profit for the period | 83 | 215 | | 6 | 49 | 126 | | | | | | | | | Income (1) | | | | | | | Fixed Income | 54 | 128 | | 2 | 32 | 23 | | Currencies | 460 | 485 | | 142 | 157 | 158 | | Capital Markets | 599 | 559 | | 202 | 203 | 189 | | Capital Management Unit & other (2) | 51 | (28) | | 10 | 53 | (30) | | Income including shared revenue before OCA | 1,164 | 1,144 | | 356 | 445 | 340 | | Transfer pricing arrangements with fellow | | | | | | | | NatWest Group subsidiaries (3) | (28) | (59) | | (10) | (8) | (14) | | Income excluding OCA | 1,136 | 1,085 | | 346 | 437 | 326 | | Own credit adjustments (OCA) | 6 | 3 | | 4 | (1) | - | | Total income | 1,142 | 1,088 | | 350 | 436 | 326 |
| (1)Product performance includes gross income earned on a NatWest Group-wide basis, including amounts contributed to other NatWest Group subsidiaries. Income including shared revenue before OCA includes revenue share from other NatWest Group subsidiaries but before revenue share is paid to or contributed to those subsidiaries. | | (2)Capital Management Unit was set up in Q3 2020 to manage capital usage and optimisation across all parts of NatWest Markets, with the income materially relating to legacy positions. Other materially relates to FX reserves recycling in 2026 and Q3 2025. | | (3)Transfer pricing arrangements with fellow NatWest Group subsidiaries includes shared revenue paid to or contributed to those subsidiaries and a profit share arrangement with fellow NatWest Group subsidiaries. The profit share arrangement rewards NWM Group on an arm’s length basis for its contribution to the performance of the NatWest Group Commercial & Institutional business segment. The profit share is not allocated to individual NatWest Markets product areas. |
Nine months ended 30 September 2026 performance | Net interest income largely represents interest income from lending activity and capital hedges, offset by interest expense from the funding costs of the business. The increase of £24 million compared with the nine months ended 30 September 2025 largely reflects growth in lending activity, partially offset by an interest charge relating to historical VAT matters. | | Non-interest income increased by £30 million compared with the period ended 30 September 2025. This was largely driven by FX reserves recycling of £43 million credit recognised in the current period in connection with subsidiary capital repayments, compared with £30 million debit recognised in the comparative period from the redemption of AT1 capital notes and a subsidiary capital repayment. The amount recognised under the profit share arrangement with fellow NatWest Group subsidiaries was £157 million in the current period, up from £126 million in the comparative period. Performance was mixed across the primary business lines, with lower revenues in Fixed Income driven by challenging market conditions and reduced customer activity, and in Currencies reflecting lower FX volatility, partially offset by higher revenues in Capital Markets. | | Operating expenses increased by £151 million compared with the nine months ended 30 September 2025. Litigation and conduct costs reflected ongoing progress in closing legacy matters including associated remediation activity and were up by £53 million. Other operating expenses increased by £98 million, largely driven by the recognition of a charge relating to historical VAT matters, higher technology-related costs and increased intra-NatWest Group recharges for central support services. |
Quarter ended 30 September 2026 performance | Net interest income increased by £8 million compared with Q2 2026, largely due to an interest charge relating to historical VAT matters in the prior period. Net interest income increased by £18 million compared with Q3 2025 reflecting growth in lending activity and one-off items in the comparative period. | | Non-interest income decreased by £94 million compared with Q2 2026. This was largely driven by an FX reserves recycling credit of £40 million recognised in the comparative period in connection with a subsidiary capital repayment and fair value movements relating to funding positions in Capital Management Unit and other. In addition, revenues were lower in Fixed Income reflecting challenging market conditions and reduced customer activity, and in Currencies reflecting lower FX volatility. Non-interest income increased by £6 million compared with Q3 2025, mainly due to an FX reserves recycling debit of £30 million recognised in the comparative period and higher Capital Markets revenues, offset by lower Fixed Income and Currencies revenues. | | Operating expenses decreased by £64 million compared with Q2 2026 and increased by £66 million compared with Q3 2025. Litigation and conduct costs reflected ongoing progress in closing legacy matters including associated remediation activity and were up by £21 million compared with Q2 2026 and up by £73 million compared with Q3 2025. Other operating expenses decreased by £85 million compared with Q2 2026, largely due to a charge relating to historical VAT matters in the prior period, higher VAT recoveries and a decrease in staff costs, and decreased by £7 million compared with Q3 2025, largely due to lower technology-related costs partially offset by an increase in intra-NatWest Group recharges for central support services. |
Financial review Balance sheet profile as at 30 September 2026 NWM Group’s balance sheet profile is summarised below. Commentary refers to the table below as well as the consolidated balance sheet on page 7. | Assets | | Liabilities | | | 30 September | 31 December | | 30 September | 31 December | | | | 2026 | 2025 | | 2026 | 2025 | | | | £bn | £bn | | £bn | £bn | | | Cash and balances at central banks | 17.5 | 16.0 | | | | | Securities | 17.7 | 12.6 | | 10.7 | 7.5 | | Short positions | | Reverse repos (1) | 22.4 | 27.7 | | 26.2 | 28.6 | | Repos (2) | | Cash collateral given (3) | 6.0 | 5.6 | | 12.1 | 11.8 | | Cash collateral received (4) | | Other trading assets | 0.3 | 0.3 | | 0.7 | 0.9 | | Other trading liabilities | | Total trading assets | 46.4 | 46.2 | | 49.7 | 48.8 | | Total trading liabilities | | Loans - amortised cost | 31.1 | 24.7 | | 21.3 | 15.7 | | Deposits - amortised cost | | Settlement balances | 8.3 | 0.6 | | 8.4 | 0.9 | | Settlement balances | | Amounts due from holding company | | | | | Amounts due to holding company | | and fellow subsidiaries | 1.0 | 0.3 | | 6.1 | 6.1 | | and fellow subsidiaries | | Other financial assets | 17.7 | 19.1 | | 36.9 | 35.5 | | Other financial liabilities | | Other assets | 0.6 | 0.6 | | 0.4 | 0.4 | | Other liabilities | | Funded assets | 122.6 | 107.5 | | 122.8 | 107.4 | | Liabilities excluding derivatives | | Derivative assets | 66.2 | 60.9 | | 59.4 | 54.0 | | Derivative liabilities | | Total assets | 188.8 | 168.4 | | 182.2 | 161.4 | | Total liabilities |
| (1) | Comprises bank reverse repos of £4.2 billion (31 December 2025 – £4.6 billion) and customer reverse repos of £18.2 billion (31 December 2025 – £23.1 billion). | | (2) | Comprises bank repos of £8.4 billion (31 December 2025 – £8.2 billion) and customer repos of £17.8 billion (31 December 2025 – £20.4 billion). | | (3) | Comprises cash collateral given relating to banks of £3.6 billion (31 December 2025 – £2.6 billion) and customers of £2.4 billion (31 December 2025 – £3.0 billion). | | (4) | Comprises cash collateral received relating to banks of £3.9 billion (31 December 2025 – £4.1 billion) and customers of £8.2 billion (31 December 2025 – £7.7 billion). |
Total assets and liabilities increased by £20.4 billion and £20.8 billion respectively at 30 September 2026. Funded assets, which exclude derivatives, increased by £15.1 billion, mainly driven by higher settlement balances and loans – amortised cost. The increase in derivative fair values was largely driven by volatility across major currencies and increases in interest rates during the period. Cash and balances at central banks increased by £1.5 billion mainly driven by increased customer deposits and new issuances, partially offset by planned banking book growth and maturities. Trading assets were up by £0.2 billion, driven by an increase in securities from client-led activity and cash collateral given, partially offset by a decrease in reverse repos. Trading liabilities increased by £0.9 billion, driven by increases in short positions and cash collateral received, partially offset by a decrease in repos. Loans – amortised cost increased by £6.4 billion, driven by higher loans to customers mainly reflecting growth in Capital Markets. Deposits – amortised cost were up by £5.6 billion, largely driven by an increase in customer deposits in NWM N.V. and higher bank deposits reflecting increased repo funding. Settlement balance assets and liabilities were up by £7.7 billion and £7.5 billion respectively, largely due to increased trading compared with the seasonally lower levels of customer activity leading up to 31 December 2025. Other financial assets decreased by £1.4 billion, mainly reflecting redemptions of held-to-collect bonds. Other financial liabilities increased by £1.4 billion, largely driven by new issuance in the period, partially offset by maturities. The balance at 30 September 2026 includes £25.6 billion of medium-term notes issued. Derivative assets and derivative liabilities were up by £5.3 billion and £5.4 billion respectively at 30 September 2026. The increase in derivative fair values was largely driven by FX derivatives, reflecting volatility across major currencies including the strengthening of USD, and higher interest rate derivatives reflecting increases in interest rates in the period. Non-IFRS measures This document contains a number of non-IFRS measures. For details of the basis of preparation and reconciliations, where applicable, refer to the non-IFRS measures section on page 11. Capital, liquidity and funding risk Introduction NWM Group takes a comprehensive approach to the management of capital, liquidity and funding, underpinned by frameworks, risk appetite and policies, to manage and mitigate capital, liquidity and funding risks. The framework ensures the tools and capability are in place to facilitate the management and mitigation of risk ensuring that NWM Group operates within its regulatory requirements and risk appetite. Capital, RWAs and leverage Capital resources, RWAs and leverage for NWM Plc are set out below and have been calculated in line with the PRA rulebook, subject to the requirements set out in the UK CRR. Regulatory capital is monitored and reported at legal entity level for large subsidiaries of NatWest Group. | | 30 September | 30 June | 31 December | | | 2026 | 2026 | 2025 | | Capital adequacy ratios (1,2) | % | % | % | | CET1 | 17.0 | 18.3 | 18.4 | | Tier 1 | 21.3 | 22.8 | 23.0 | | Total | 24.2 | 25.8 | 26.0 | | Total MREL | 41.9 | 44.0 | 45.6 | | | | | | | Capital (1,2) | £m | £m | £m | | CET1 | 3,836 | 4,056 | 3,952 | | Tier 1 | 4,814 | 5,032 | 4,926 | | Total | 5,470 | 5,695 | 5,576 | | Total MREL (3) | 9,455 | 9,738 | 9,787 | | | | | | | Risk-weighted assets | | | | | Credit risk | 10,691 | 10,596 | 10,447 | | Counterparty credit risk | 6,030 | 6,164 | 5,868 | | Market risk | 4,149 | 3,640 | 3,431 | | Operational risk | 1,711 | 1,711 | 1,711 | | Total RWAs | 22,581 | 22,111 | 21,457 |
| (1) | NWM Plc’s total capital ratio requirement is 11.4%, comprising the Pillar 1 minimum capital requirement of 8%, supplemented with the capital conservation buffer of 2.5% and the institution specific countercyclical buffer (CCyB) of 0.9%. The minimum CET1 ratio is 7.9%, including the minimum capital requirement of 4.5%. The CCyB is based on the weighted average of NWM Plc’s geographical exposures. | | (2) | In addition, NWM Plc is subject to Pillar 2A requirements for CET1, AT1 and Tier 2. Refer to the NatWest Markets Plc Q3 2026 Pillar 3 report for further details on these additional capital requirements. | | (3) | Includes senior internal debt instruments issued to NatWest Group plc with a nominal value of £4.0 billion (30 June 2026 - £4.0 billion; 31 December 2025 - £4.2 billion). |
Leverage The leverage ratio has been calculated in accordance with the Leverage Ratio (CRR) part of the PRA rulebook. | | 30 September | 30 June | 31 December | | | 2026 | 2026 | 2025 | | Tier 1 capital (£m) | 4,814 | 5,032 | 4,926 | | Leverage exposure (£m) (1) | 105,796 | 102,541 | 97,880 | | Leverage ratio (%) | 4.6 | 4.9 | 5.0 |
| (1) | Leverage exposure is broadly aligned to the accounting value of on and off-balance sheet exposures albeit subject to specific adjustments for derivatives, securities financing positions and off-balance sheet exposures. |
Liquidity and funding | | 30 September | 30 June | 31 December | | | 2026 | 2026 | 2025 | | Average LCR (%) (1) | 204 | 204 | 198 | | Liquidity portfolio (£bn) (1) | 17.7 | 20.0 | 20.2 | | Total funding including repo (£bn) (2) | 102.8 | 103.2 | 98.4 |
| (1) | LCR and Liquidity portfolio measures presented are for NWM Plc. | | (2) | Total funding is presented for NWM Group. |
Condensed consolidated income statement for the period ended 30 September 2026 (unaudited) | | Nine months ended | | Quarter ended | | | 30 September | 30 September | | 30 September | 30 June | 30 September | | | 2026 | 2025 | | 2026 | 2026 | 2025 | | | £m | £m | | £m | £m | £m | | Interest receivable | 1,993 | 1,937 | | 696 | 664 | 649 | | Interest payable | (1,616) | (1,584) | | (569) | (545) | (540) | | Net interest income | 377 | 353 | | 127 | 119 | 109 | | Fees and commissions receivable | 328 | 323 | | 101 | 120 | 94 | | Fees and commissions payable | (128) | (143) | | (43) | (45) | (41) | | Income from trading activities | 389 | 572 | | 63 | 211 | 181 | | Other operating income | 176 | (17) | | 102 | 31 | (17) | | Non-interest income | 765 | 735 | | 223 | 317 | 217 | | Total income | 1,142 | 1,088 | | 350 | 436 | 326 | | Staff costs | (395) | (393) | | (122) | (137) | (128) | | Premises and equipment | (64) | (58) | | (23) | (19) | (22) | | Other administrative expenses | (619) | (476) | | (186) | (241) | (116) | | Depreciation and amortisation | (9) | (9) | | (4) | (2) | (3) | | Operating expenses | (1,087) | (936) | | (335) | (399) | (269) | | Profit before impairment releases/losses | 55 | 152 | | 15 | 37 | 57 | | Impairment releases/(losses) | 1 | (1) | | (4) | 4 | (4) | | Operating profit before tax | 56 | 151 | | 11 | 41 | 53 | | Tax credit/(charge) | 27 | 64 | | (5) | 8 | 73 | | Profit for the period | 83 | 215 | | 6 | 49 | 126 | | | | | | | | | | Attributable to: | | | | | | | | Ordinary shareholders | 16 | 130 | | (16) | 26 | 104 | | Paid-in equity holders | 67 | 85 | | 22 | 23 | 22 | | | 83 | 215 | | 6 | 49 | 126 |
Condensed consolidated statement of comprehensive income for the period ended 30 September 2026 (unaudited) | | Nine months ended | | Quarter ended | | | 30 September | 30 September | | 30 September | 30 June | 30 September | | | 2026 | 2025 | | 2026 | 2026 | 2025 | | | £m | £m | | £m | £m | £m | | Profit for the period | 83 | 215 | | 6 | 49 | 126 | | Items that do not qualify for reclassification | | | | | | | | Remeasurement of retirement benefit schemes | 8 | (3) | | 11 | (3) | - | | Changes in fair value of financial liabilities designated at fair value | | | | | | through profit or loss (FVTPL) due to changes in own credit risk | 14 | (11) | | 7 | (10) | (10) | | Fair value through other comprehensive income (FVOCI) financial assets | 2 | 15 | | 2 | (1) | 2 | | Tax | - | - | | (4) | 1 | (1) | | | 24 | 1 | | 16 | (13) | (9) | | Items that do qualify for reclassification | | | | | | | | FVOCI financial assets | (1) | 5 | | (1) | 5 | 5 | | Cash flow hedges | (232) | 92 | | (167) | 41 | (9) | | Currency translation | (84) | 27 | | (21) | (75) | 90 | | Tax | 53 | (31) | | 37 | (10) | - | | | (264) | 93 | | (152) | (39) | 86 | | Other comprehensive (loss)/income after tax | (240) | 94 | | (136) | (52) | 77 | | Total comprehensive (loss)/income for the period | (157) | 309 | | (130) | (3) | 203 | | | | | | | | | | Attributable to: | | | | | | Ordinary shareholders | (224) | 224 | | (152) | (26) | 181 | | Paid-in equity holders | 67 | 85 | | 22 | 23 | 22 | | | (157) | 309 | | (130) | (3) | 203 |
Condensed consolidated balance sheet as at 30 September 2026 (unaudited) | | | 30 September | 31 December | | | | 2026 | 2025 | | | £m | £m | | Assets | | | | | Cash and balances at central banks | | 17,471 | 16,023 | | Trading assets | | 46,388 | 46,174 | | Derivatives | | 66,189 | 60,866 | | Settlement balances | | 8,297 | 643 | | Loans to banks - amortised cost | | 1,091 | 1,221 | | Loans to customers - amortised cost | | 30,013 | 23,454 | | Amounts due from holding company and fellow subsidiaries | | 1,021 | 287 | | Other financial assets | | 17,671 | 19,084 | | Other assets | | 671 | 619 | | Total assets | | 188,812 | 168,371 | | | | | | | Liabilities | | | | | Bank deposits | | 9,771 | 8,501 | | Customer deposits | | 11,496 | 7,161 | | Amounts due to holding company and fellow subsidiaries | | 6,087 | 6,068 | | Settlement balances | | 8,418 | 932 | | Trading liabilities | | 49,655 | 48,847 | | Derivatives | | 59,391 | 53,977 | | Other financial liabilities | | 36,901 | 35,453 | | Other liabilities | | 522 | 469 | | Total liabilities | | 182,241 | 161,408 | | | | | | | Owners' equity | | 6,571 | 6,963 | | Total liabilities and equity | | 188,812 | 168,371 |
Condensed consolidated statement of changes in equity for the period ended 30 September 2026 (unaudited) | | Share | | | | capital and | | | | share | Paid-in | Retained | Other | Total | | | premium | equity | earnings | reserves* | equity | | | £m | £m | £m | £m | £m | | At 1 January 2026 | 2,346 | 1,192 | 3,377 | 48 | 6,963 | | Profit attributable to ordinary shareholders and paid-in equity holders | | 83 | | 83 | | | | | Other comprehensive income | | | Remeasurement of retirement benefit schemes | | 8 | | 8 | | Changes in fair value of financial liabilities designated at FVTPL | | | due to changes in own credit risk | | 14 | | 14 | | Unrealised gains: FVOCI | | 7 | 7 | | Amounts recognised in equity: cash flow hedges | | (356) | (356) | | Foreign exchange reserve movement | | (84) | (84) | | Reclassification of OCI to Income statement | | 118 | 118 | | Tax | | (3) | 56 | 53 | | Ordinary share dividends paid | | (160) | | (160) | | Paid-in equity dividends paid | | (67) | | (67) | | Employee share schemes | | (1) | | (1) | | Share-based remuneration | | (7) | | (7) | | Amortisation of merger reserve | | (2) | 2 | - | | At 30 September 2026 | 2,346 | 1,192 | 3,242 | (209) | 6,571 | | | | | 30 September | | | 2026 | | Attributable to: | | £m | | Ordinary shareholders | | 5,379 | | Paid-in equity holders | | 1,192 | | | 6,571 | | *Other reserves consist of: | | | | Merger reserve | | (6) | | FVOCI reserve | | 42 | | Cash flow hedging reserve | | (271) | | Foreign exchange reserve | | 26 | | | (209) |
Notes 1. Presentation of condensed consolidated financial statements The condensed consolidated financial statements have been prepared in accordance with the accounting policies set out in the NatWest Markets Plc 2025 Annual Report and Accounts, as updated in the NatWest Markets 2026 Interim Results Announcement. The directors have prepared the condensed consolidated financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date they are approved. 2. Trading assets and liabilities Trading assets and liabilities comprise assets and liabilities held at fair value in trading portfolios. | | 30 September | 31 December | | | 2026 | 2025 | | | £m | £m | | Assets | | | | Loans | | | | Reverse repos | 22,360 | 27,656 | | Collateral given | 6,023 | 5,635 | | Other loans | 326 | 294 | | Total loans | 28,709 | 33,585 | | Securities | | | | Central and local government | | | | - UK | 2,241 | 1,808 | | - US | 3,664 | 4,153 | | - Other | 8,905 | 4,135 | | Financial institutions and Corporate | 2,869 | 2,493 | | Total securities | 17,679 | 12,589 | | Total | 46,388 | 46,174 | | | | | | Liabilities | | | | Deposits | | | | Repos | 26,216 | 28,578 | | Collateral received | 12,124 | 11,792 | | Other deposits | 473 | 739 | | Total deposits | 38,813 | 41,109 | | Debt securities in issue | 187 | 234 | | Short positions | 10,655 | 7,504 | | Total | 49,655 | 48,847 |
3. Other financial liabilities | | 30 September | 31 December | | | 2026 | 2025 | | | £m | £m | | Customer deposits - designated as at FVTPL | 2,387 | 2,312 | | Debt securities in issue | | | | Medium term notes | 25,613 | 27,232 | | Commercial paper and certificates of deposit | 8,669 | 5,638 | | Subordinated liabilities | | | | Designated as at FVTPL | 214 | 237 | | Amortised cost | 18 | 34 | | Total | 36,901 | 35,453 |
Notes 4. Amounts due to holding company and fellow subsidiaries | | 30 September | 31 December | | | 2026 | 2025 | | | £m | £m | | Bank deposits - amortised cost | 17 | 267 | | Customer deposits - amortised cost | 49 | 42 | | Settlement balances | 382 | - | | Trading liabilities | 550 | 280 | | Other financial liabilities - subordinated liabilities | 1,053 | 1,066 | | MREL instruments issued to NatWest Group plc | 3,986 | 4,323 | | Other liabilities | 50 | 90 | | Total | 6,087 | 6,068 |
5. Litigation and regulatory matters NatWest Markets Plc’s Interim Results 2026, issued on 31 July 2026, included disclosures about NWM Group's litigation and regulatory matters in Note 11. Set out below are the material developments in those matters (all of which matters have been previously disclosed) since publication of the Interim Results 2026. Litigation Swaps antitrust litigation In June 2021, a class action antitrust complaint was filed against a number of credit default swap dealers in New Mexico federal court on behalf of persons who, from 2005 onwards, settled credit default swaps in the United States by reference to the ISDA credit default swap auction protocol. The complaint alleges that the defendants conspired to manipulate that benchmark through various means in violation of the antitrust laws and the Commodity Exchange Act. In May 2025, the US Court of Appeals affirmed an earlier decision by the Southern District of New York which barred the plaintiffs in the New Mexico case from pursuing claims based on conduct occurring before 30 June 2014 on the ground that such claims were extinguished by a 2015 settlement agreement that resolved a prior class action relating to credit default swaps. On 29 June 2026, the New Mexico district court also held, based on the prior settlement, that the plaintiffs are barred from pursuing claims based on conduct occurring before 30 June 2014. The district court gave plaintiffs 30 days to file an amended complaint based on conduct occurring after that date, as to which defendants will have an opportunity to seek dismissal. Spoofing litigation In December 2021, three substantially similar class action complaints were filed in federal court in the United States against NWM Plc and NWMSI alleging Commodity Exchange Act and common law unjust enrichment claims arising from manipulative trading known as spoofing. The complaints refer to NWM Plc’s December 2021 spoofing-related guilty plea (described below under “US investigations relating to fixed-income securities”) and purport to assert claims on behalf of those who transacted in US Treasury securities and futures and options on US Treasury securities between 2008 and 2018. In July 2022, the defendants filed a motion to dismiss these claims, which have been consolidated into one matter in the United States District Court for the Northern District of Illinois. In September 2026, the motion to dismiss was granted without prejudice and with leave to amend. 6. Post balance sheet events There have been no significant events between 30 September 2026 and the date of approval of these accounts that would require a change to or additional disclosure in the condensed consolidated financial statements. Non-IFRS measures NWM Group prepares its financial statements in accordance with UK-adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). This document contains a number of non-IFRS measures, or alternative performance measures, defined under the European Securities and Markets Authority (ESMA) guidance, or non-Generally Accepted Accounting Principles (GAAP) financial measures in accordance with the Securities and Exchange Commission (SEC) regulations. These measures are adjusted for certain items which management believes are not representative of the underlying performance of the business and which distort period-on-period comparison. The non-IFRS measures provide users of the financial statements with a consistent basis for comparing business performance between financial periods and information on elements of performance that are one-off in nature. The non-IFRS measures also include the basis of calculation for metrics that are used throughout the banking industry. These non-IFRS measures are not a substitute for IFRS measures and a reconciliation to the closest IFRS measure is presented where appropriate. These measures include: Management analysis of operating expenses shows litigation and conduct costs on a separate line. These amounts are included within staff costs, premises and equipment and other administrative expenses in the statutory analysis. Other operating expenses exclude litigation and conduct costs which are more volatile and may distort comparisons with prior periods. Funded assets are defined as total assets less derivative assets. This measure allows review of balance sheet trends exclusive of the volatility associated with derivative fair values. Management view of income by business including shared revenue and before own credit adjustments. This measure is used to show underlying income generation in NatWest Markets excluding the impact of own credit adjustments. Revenue share refers to income generated by NatWest Markets products from customers that have their primary relationship with other NatWest Group subsidiaries, a proportion of which is shared between NatWest Markets and those subsidiaries. Transfer pricing arrangements with fellow NatWest Group subsidiaries include revenue share and a profit share arrangement with fellow NatWest Group subsidiaries. The profit share arrangement rewards NWM Group on an arm’s length basis for its contribution to the performance of the NatWest Group Commercial & Institutional business segment. The profit share is not allocated to individual NatWest Markets product areas. Own credit adjustments are applied to positions where it is believed that the counterparties would consider NWM Group’s creditworthiness when pricing trades. The fair value of certain issued debt securities, including structured notes, is adjusted to reflect the changes in own credit spreads and the resulting gain or loss recognised in income. Non-IFRS financial measures Operating expenses – management view | | Nine months ended | | | 30 September 2026 | | 30 September 2025 | | | Litigation | Other | Statutory | | Litigation | Other | Statutory | | | and conduct | operating | operating | | and conduct | operating | operating | | | costs | expenses | expenses | | costs | expenses | expenses | | | £m | £m | £m | | £m | £m | £m
en | XS2745115837 | NATWEST MARKETS PLC | boerse | 70432939 |
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