NatWest Group Plc: 2025 Bank of England Stress Test Results
Business Context and Reporting Period
This Form 6-K filing, dated December 2, 2025, reports the results of the 2025 Bank of England (BoE) stress test for NatWest Group plc. The assessment evaluates the Group's capital adequacy under a severe but plausible scenario, utilizing the balance sheet as of December 31, 2024, as the starting point.
Key Financial Metrics
The filing focuses on regulatory capital ratios rather than operational financials such as revenue or profit. Key metrics reported include:
- Low Point CET1 Ratio (Stress Scenario): 11.1%
- Actual CET1 Ratio (December 2024): 13.6%
- Low Point Tier 1 Leverage Ratio (Stress Scenario): 4.7%
- Actual Tier 1 Leverage Ratio (December 2024): 5.0%
The filing does not provide specific values for revenue, profit, cash flow, operating margins, or total debt levels.
Material Changes and Comparisons
Management commentary indicates a continued strengthening of the balance sheet compared to the 2022/23 Stress Test. Under the 2025 severe scenario, the Group's capital ratios remain significantly ahead of the stress minimum requirements. Consequently, no strategic management actions (such as capital raising or dividend cuts) are required to meet regulatory thresholds.
Outlook, Risks, and Management Commentary
Katie Murray, Chief Financial Officer, stated that the results highlight the strength of the balance sheet, supporting sustainable value creation and strong distributions for shareholders. The Group asserts its ability to support customers and the broader economy even under severe stress.
The filing includes standard forward-looking statement disclaimers regarding risks that could cause actual results to differ from expectations. Identified risks include:
- Legal, regulatory, and governmental actions and investigations.
- Future impairments and write-downs.
- Legislative, political, fiscal, and regulatory developments.
- Interest and exchange rate fluctuations.
- Operational, conduct, cyber, data, and IT risks.
- Climate and sustainability-related risks.
Investor Verification Checklist
- Verify the specific "stress minimum requirement" thresholds set by the Bank of England to confirm the margin of safety.
- Review the full 2024 Annual Report on Form 20-F for detailed revenue, profit, and debt figures not included in this announcement.
- Monitor ongoing legal and regulatory investigations mentioned in the risk factors.
- Confirm the Group's dividend and buyback policies in light of the stress test results.