NatWest Group PLC

Good morning and thank you for joining us today. As usual, I'm here with Katie, who will take you through the full year performance. After that, I'll talk about our strategy and our new 2028 targets. But first, let me start with an overview of 2025, a year in which we delivered another strong performance and made good progress on each of our strategic priorities. Highlights of the year include a return to private ownership in May, opening a new chapter for the bank with a focus on driving growth. Continued organic growth together with successful completion of the Sainsbury's bank transaction. Improving operational leverage with a reduction in our cost income ratio of 4.8 percentage points. Together with strong capital generation, enabling total distributions to shareholders of 4.1 billion. You will also be aware that we announced the acquisition of the financial planning and investment firm Evelyn Partners earlier this week, which I'll talk about later. So let's turn to the headlines. We added a million new customers during 2025 and delivered broad-based growth across all three businesses. Lending grew 5.6% to 393 billion. Deposits were up 2.4% to 442 billion. And assets under management and administration increased 20% to 58.5 billion. This activity resulted in strong income growth of 12% to £16.4 billion. Costs grew 2% to £8 billion, resulting in positive jaws of 10%. The cost-income ratio reduced to 48.6%. This led to operating profit of £7.7 billion and attributable profit of £5.5 billion. Earnings per share grew 27% to 68 pence, dividends per share increased 51% to 32.5 pence and tangible net asset value per share was up 17% to 384 pence. Our CET ratio was 14% and return on tangible equity was 19.2%. As you can see here, these results are either in line with or above our strength and guidance. Our strong risk management is evidenced by a loan impairment rate of 16 basis points and total distributions announced in 2025 of 4.1 billion, comprised buybacks of 1.5 billion and dividends of 2.6 billion, in line with our payout ratio of around 50%. This includes the buyback of $750 million announced on Monday, along with our acquisition of Evalyn Partners. These results continue our track record of delivering value for shareholders. Over the past four years, earnings per share have more than doubled, growing at a rate of 26% a year. Dividends per share have more than tripled, increasing at a rate of 33% a year. And TNAV per share has grown 41% at a rate of 9% a year. At the same time, our share count has reduced from over 11 billion to just under 8 billion. Turning now to our three strategic priorities, I'll start with discipline growth. We now serve over 20 million customers across our three businesses, and 2025 marks our seventh consecutive year of growing customer balances. In retail banking, our customer base increased by more than 5% and customer assets and liabilities grew 4% to 421 billion. This includes the addition of around a million new customer accounts from the Sainsbury's transaction, which contributed to our unsecured stock share growing from 6.4% to 7.2%, including an increase from 9.7% to 10.6% in credit cards. In mortgages, we increased our flow share of first-time buyers from 10% to 12% and of the buy-to-let market from 3% to 6%. We are also extending our reach through NatWest Boxed, which provides embedded finance to companies such as the AA and Saga. In private banking and wealth management, over 50,000 customers invested with us for the first time in 2025. Net new flows to assets under management grew 41% and assets under management and administration increased 20% to $58.5 billion. AUMA is now 49% of client assets and liabilities, up 4% points on the prior year, and customer assets and liabilities grew 10% to $119 billion. In commercial and institutional, we extended our expertise in FX to a further 700 mid-market customers during the year, many of them via online platform for FX, Agile Markets, where the number of users grew 13%. This contributed to FX revenue growth of around 20%. Lending balance growth was strong at 10% or $14 billion. We lent 4.6 billion to the UK social housing sector, where we reached our 7.5 billion ambition ahead of schedule, and have announced a new 10 billion ambition for 2028. We are also the leading lender to UK infrastructure projects, and we delivered 19 billion of climate and transition finance towards our 2030 target of 200 billion, of which 16 billion was in commercial and institutional, I'd like to turn now to our second strategic priority, bank-wide simplification. We continue to invest to improve customer experience and increase efficiency. During the year, we made gross cost savings of around 600 million, which is over 7% of our 2024 cost base. And we created 100 million of investment capacity in 2025 to reinvest and further accelerate our transformation. taking a look at each business. In retail banking, our award-winning app has a net promoter score of 51. And as we continue to invest to improve customer experience, we launched more than 100 new features during the year. We also launched generative AI enhancements in our digital assistant Quora. As a result, the number of queries that can be resolved has increased by 20 percentage points. the cost-income ratio in retail banking decreased from 50 to 45%. In private banking and wealth management, we doubled the number of enhancements on the app, increasing our rating on the App Store to 4.4 and our Net Promoter Score to 54, up from 50 at our spotlight last June. In addition, we are leveraging group capabilities to simplify our operations. For example, we re-hosted our core banking platform from Switzerland to the Group Data Center in the UK. And we are co-locating our people with other NatWest teams. So we are relocating our tech team from Switzerland to the UK and India. The cost-income ratio in private banking and wealth management reduced 10 percentage points to 64%. In commercial mid-market banking, we are investing in our digital platform Bankline to give customers a single point of access to a wide range of products. We have now integrated our asset finance, invoice finance, payments, commercial cards, FX and trade platforms within Bankline. And customers accessed products via Bankline around 300,000 times last year. We also took steps to reduce our legal entities and branches in Europe. The cost-income ratio in commercial institutional reduced from 52% to 49%. Turning now to our third strategic priority, managing capital and risk. We generated 252 basis points of capital during the year, supported by reducing RWAs by 10.9 billion through capital management. This includes five significant risk transfers in commercial and institutional and a two billion mortgage securitization in retail banking. We have a high quality lending book in all three businesses with a low level of impairment at 16 basis points of loans. And all this enables us to recycle capital into areas where we have chosen to grow. The successful implementation of our strategy gives us the ability to invest in the business, support customer growth and deliver attractive returns to shareholders. As I mentioned earlier, we have announced total distributions of 4.1 billion for 2025, representing 75% of attributable profit. With that, I'd like to hand over to Katie to take you through our financial performance.

Thank you, Paul. I'll start with our performance for the full year, where, as Paul said, we have either met or exceeded our third quarter guidance. Income, excluding all notable items, was up 12% at £16.4 billion. Total income included £241 million of notable items. Total operating expenses were 1.4% higher at £8.3 billion. and the impairment charge was 671 million or 16 basis points of loans. Taken together, this delivered operating profit before tax of 7.7 billion and profit attributable to ordinary shareholders of 5.5 billion. Our return on tangible equity was 19.2%. Turning now to the fourth quarter compared with the third, income excluding all notable items was up 2.5% at 4.3 billion. Operating expenses were 2.2 billion, including the annual bank levy. The impairment charge was 136 million, or 13 basis points of loans, bringing operating profit before tax to 1.9 billion. Profit attributable to ordinary shareholders was 1.4 billion. Our return on tangible equity was 18.3%. Turning now to income. Full year income, excluding notable items of 16.4 billion, exceeded our guidance of around 16.3. Across the three businesses, income grew by 1.8 billion. This was largely driven by higher net interest income as balance sheet growth and the benefits of the structural hedge more than offset the impact of the Bank of England rate cuts. Net interest margin was up 21 basis points to 234 basis points, mainly due to deposit growth coupled with margin expansion. Non-interest income grew 1.3%, reflecting solid customer activity as we supported their investment, FX and capital requirements. Turning to the fourth quarter, income excluding notable items grew 2.5% to 4.3 billion. Across our three businesses, income increased by 2.8%, or 116 million. Net interest income grew 4.5%, or 148 million, reflecting the trend over the year of volume growth alongside margin expansion. As a result, net interest margin was up 8 basis points to 245 basis points. Non-interest income across the three businesses was down 3.7%, mainly driven by commercial and institutional, reflecting typical seasonality after a strong third quarter. Turning to 2026 guidance, which excludes the impact of Evelyn Partners. We expect income excluding notable items to be within a range of 17.2 to 17.6 billion pounds. And our current forecast is within this range. Turning to growth. As you heard from Paul, our three businesses have a strong track record of growth over the last seven years. We have grown customer lending at 4.5% a year. This includes broad-based organic growth, as well as acquisitions, which support scale and underweight areas such as mortgages and unsecured lending. Customer deposits have grown 3.9% a year, supported by a boost during COVID, as well as new propositions and an improved digital offering. AUMAs have grown at 12% a year and have more than doubled since 2018. These three elements together make up Customer Assets and Liabilities, or CAL, which has grown at 4.6% a year. We focus on this metric as it reflects the breadth of balance sheet solutions we offer to meet customer needs. This track record gives us confidence that we can continue to grow CAL in the future, and Paul will talk more about our 2028 target shortly. Let me take you through the last year for each of these elements in turn. We delivered another year of strong lending growth. Gross loans to customers across our three businesses increased 5.6%, or £20.9 billion, to £392.7 billion. There was broad-based growth across mortgages as we increased our flow share of the first-time buyer and buy-to-let markets, with strong retention as well as new business flows. Unsecured lending growth was supported by the addition of Sainsbury's bank balances and the first full year of our personal loans offering for the whole of market. In commercial and institutional, we grew in all three businesses with lending up 14 billion or 10% excluding the repayment of government loan schemes. This reflects our leading position as the UK's biggest bank for business with growth across social housing, residential commercial real estate, infrastructure, project finance and funds lending. I'll now turn to deposits. Customer deposits across our three businesses increased 2.4% to £442 billion, with a stable mix throughout the year. Retail banking deposits increased £7.8 billion or 4%, reflecting growth in savings and current account balances, supported by balances acquired from Sainsbury's Bank. This includes growth in the fourth quarter of 6.8 billion, reflecting strong growth in savings of 6.4 billion, supported by our limited edition saver and term products, and growth in our current accounts of 0.4 billion. Private banking and wealth management increased by 300 million in 2025, also reflecting growth in current accounts and saving balances, with progress driven by both deeper engagement with our existing customers and new customer acquisition. And CNI deposits increased 2.3 billion, reflecting growth within large corporates and business banking. Moving now to assets under management. We are pleased to see the plans we talked about in the June spotlight delivering for our customers and shareholders. AUMAs increased almost 20% this year to 58.5 billion. And net flows of 4.6 billion were up 44%. fee income from higher AUMAs grew 11% to 300 million. Moving now to the continued tailwind from our structural hedge. As you will be aware, in addition to our product structural hedge, we also have a longer duration equity structural hedge. Together, they are 198 billion in size, 4 billion higher than last year, and are an important driver of income growth. In 2025, product hedge income was 4.2 billion. This is 1.2 billion higher than the previous year and 3.2 billion higher than 2021. Our equity hedge income was almost 500 million pounds, which is around 50 million pounds higher than the previous year and around 25% more than 2021. The yield on both hedges has increased significantly over the last few years as interest rates rose. This slide shows our expectation for future yield progression based on our current macroeconomic assumptions and hedge durations, together with associated income growth. We expect yield to increase from 2.4% in 2025 to around 3.1% in 2026, with further increases thereafter. Our illustration here assumes steadily increasing average notional balances for both the product and equity hedges, driven by growth in CAL and higher levels of capital held to support that growth. This expectation of increasing yield and notional balances drives higher annual income through to 2030. We are sharing our expectations for this year and next as more of the near-term income growth is locked in. We expect 2026 total hedge income to be around 1.5 billion higher than 2025 and for 2027 to be around 1 billion higher than 2026, reaching total income of around 7.2 billion pounds. Exactly how this develops will be subject to the prevailing reinvestment rates each year, as well as the composition of growth in CAL. Turning now to costs, other operating expenses were 8.1 billion, including one-time integration costs of 96 million, in line with our guidance. We are pleased with our delivery of around 600 million of gross cost savings, which has allowed us to invest in business growth and accelerate our simplification programme. Costs grew 1.8% if you exclude one-time integration costs. Our cost income ratio reduced to 4.8 percentage points to 48.6%. In 2026, we expect other operating expenses to be around 8.2 billion. Staff costs will be a key driver of overall cost growth. We also make significant investment in the business each year with a range of initiatives to drive operating leverage. We expect further supplier contract inflation and increased business transformation costs this year. Delivery of around 8.2 billion in 2026 will be supported by another year of significant gross cost savings. Turning now to our updated macro assumptions. Our base case outlook for the macro environment in 2026 assumes moderate growth, slightly lower than our previous year. The unemployment rate increased slightly above our expectation for 2025 and we now expect this to peak in 2026 at levels we are comfortable with in terms of lending risk appetite. We also expect inflation to come down at a slightly faster pace given the most recent print. and we expect lower rates reaching a terminal bank rate of 3.25% by the end of 2026. Our balance sheet remains well provisioned with expected credit loss of 3.6 billion and ECL coverage of 83 basis points. We are comfortable with 1.1% of Stage 3 loans, which is down on the prior year, reflecting management actions in our personal portfolio, together with lower defaults in our non-personal portfolios. Our remaining post-model adjustments for economic uncertainty are £246 million, broadly stable on the third quarter. We will continue to assess these provisions each quarter and release as appropriate. Our latest scenarios also show that even if we were to give 100% weight to our moderate downside scenario, this would increase stage one and two ECL by 54 million pounds. I'd like to turn now to the impairment charge for the year. Our prime loan book is well diversified and continues to perform well. We're reporting a net impairment charge of 671 million, equivalent to 16 basis points of loans. There were no significant signs of stress across our three businesses and impairment levels across our products have performed broadly in line with our expectations. In 2026, we expect our loan impairment rate to be below 25 basis points. This guidance is not dependent upon post-model adjustment releases or any material shift in risk appetite. It's simply a reflection of normalisation in impairments and lower one-off releases, as well as growth in the book and ongoing changes in the mix. Turning now to capital. We ended the year with a common equity tier one ratio of 14%, up 40 basis points on last year. In 2025, very strong capital generation of 252 basis points took our CET1 ratio before distributions to 16.1%. Distributions accounted for 213 basis points of capital, including accruals for our ordinary dividend payout of around 50% and our buyback of £750 million that we announced on Monday. Risk-weighted assets increased by £10.1 billion to £193.3 billion within our guided range. 3.8 billion of higher operational risk weighted assets includes 1.6 billion in the fourth quarter as we brought forward our annual operational risk recalculation from the first quarter in 2026. You should now expect us to include this in the fourth quarter each year. 11.1 billion of business movements broadly reflects our lending growth across the year. This was largely offset by a 10.9 billion reduction from RWA management, including 5.7 billion in the fourth quarter. So in essence, our actions this year have funded the growth in our lending book. Other movements include 7.3 billion from CRD4 model inflation, of which 4.8 billion was in the fourth quarter. We think we are now largely done, though we await PLA approval of our models. There was also 1.2 billion of other risks and effects movements. Going forward, we expect a further impact on RWAs with the implementation of Basel 3.1 in January 2027. Based on our latest recalibration of a higher balance sheet, we currently expect this to increase RWAs by around 10 billion pounds. The majority of the RWA uplift from Basel 3.1 is due to operational risk and the removal of the SME and infrastructure support factors. We do expect an offset in our Pillar 2 requirements at the same time for these elements, but the net result will still require us to hold a higher nominal amount of CET1, given the offsets are at a total capital level. We also expect future growth to consume more capital in the form of RWAs. Despite this, we are confident in our ability to continue generating strong capital from earnings and to manage risk-weighted assets, and we are guiding to capital generation of around 200 basis points before distributions in 2026. Turning now to our CET1 ratio. Our CET1 target of 13 to 14% has been in place since 2019. As you know, we've been actively looking at this over the last year or so. Today, our minimum CET1 requirement stands at 11.6%. And as you know, there are no changes to the capital requirements in the latest FPC review, so our supervisory minimum remains 11.6%. And we expect this to reduce further with the implementation of Basel 3.1 next year, with a reduction in our Pillar 2 requirement, as I just mentioned. Today we are holding considerably more capital despite de-risking. The successful restructuring of the bank is evident from the consistent and material improvement in our Bank of England stress test results. The performance of the business has materially improved and we have demonstrated a track record of strong earnings, high capital generation and returns. So as a result of all of these considerations and taking into account the views of stakeholders, including investors, rating agencies and regulators, we are reducing our CET1 target to around 13%. This represents a healthy buffer over our MDA and supervisory minimum requirements and also reflects the expected reduction in Pillar 2 requirements on the 1st of January, 2027. Turning now to our acquisition of Evelyn Partners. As we outlined on Monday, we see a strong strategic rationale for this acquisition. It brings 69 billion of AUMA scaling our private banking and wealth management to 20% of Group Cal, a third growth engine for the Group. It increases fee income by almost 20% on day one. And ultimately, it makes us a faster growing, higher returning bank with higher distribution capacity for shareholders. Operationally, it is deliverable. Culturally, we are aligned. And financially, it delivers for shareholders. So let me show you how we expect to deliver a return on invested capital above that generated via a share buyback by year three after completion. We provided you with Evelyn Partners' 2025 Income, Costs and Earnings Before Interest, Tax Depreciation and Amortisation, or EBITDA. Revenue synergies include bringing Evelyn Partners' broad range of financial planning and wealth management solutions to all our customers, enhancing our D2C investment offering via Best Invest, leveraging Evelyn Partners technology for portfolio management solutions and providing Evelyn Partner customers with our full range of banking solutions and combined wealth management offering. The business has grown AUMA at more than 7% a year for the last two years and bringing the combined capabilities to our customer base of more than 20 million is a significant opportunity to create value. The benefit of being part of NatWest Group should deliver income greater than 700 million. We expect to realise around 100 million of cost synergies by removing duplication in shared services and technology applications, where there is high alignment between our platforms as well as efficiencies of scale. the cost to achieve of approximately 150 million will be phased over three years. This means we expect costs to fall in absolute terms to less than 300 million by year three. Together, this drives EBITDA of around 400 million, When assessing the transaction, we look at the returns accruing to capital. In other words, the return on invested capital. We do not include the amortization of purchased intangibles since amortization does not flow through to capital and does not impact our distribution capacity to shareholders. The cost of intangibles are taken in the day one impact of around 130 basis points on the CET1 ratio. Amortization is included in return on tangible equity. This is a capital light business with very high returns on tangible equity, clearly accretive to the group in year one and beyond. Beyond year three, we see further improvement in returns driven by compounding net new money growth, driving higher assets under management and ultimately stronger income growth. Turning now to returns. This shows the drivers of return on tangible equity in 2026. The notable items in 2025 income and tax credits, which together account for around 1.3 percentage points of ROTI. Clearly the year on year change in some P&L lines will impact ROTI more than others, with income growth being the biggest driver. Naturally, the level of return will also be impacted by growth in the denominator, average tangible equity. This will be driven by earnings, balance sheet growth and further unwind of the cash flow hedge reserve. Overall, in 2026, we expect to deliver a return on tangible equity of greater than 17%. So to summarise our guidance. Excluding the impact of Evelyn Partners' acquisition in 2026, we expect income, excluding notable items, to be in the range of £17.2 to £17.6 billion. Other operating expenses to be around £8.2 billion. The loan impairment rate to be below 25 basis points. capital generation before distributions of around 200 basis points and a return on tangible equity greater than 17%. With that, I'll hand back to Paul. Thank you.

Thank you, Katie. So you've heard about our guidance for 2026. I'm now going to talk about our plans for the next three years and 2028 targets, which include the impact of the Evelyn Partners acquisition. You will be familiar with this slide as you've heard about each one of our three businesses over the past year in our investor spotlights. We are building on strong foundations with a customer base of more than 20 million and leading positions in each of our businesses, all of which deliver attractive returns. Our retail bank has a track record of growing share profitably with an opportunity to align areas such as mortgages, savings and unsecured lending more closely with our 16.5% share in current accounts. Private Banking and Wealth Management has a leading private bank with a strong brand and acts as a centre for excellence within the group for investment products and solutions. With the acquisition of Evelyn Partners, a market-leading financial planning and investment management firm, we are creating the UK's leading private bank and wealth manager. The combination increases asset under management and administration to $127 billion and Cal to $188 billion. It both transforms the scale of the business and the breadth of our financial planning and investment offering to meet more customers' needs across the group. further accelerating growth in assets under management. Commercial and institutional is the UK's biggest bank for business with a 25% share of deposits and 20% share of lending. We are a leading bank for startups in the UK with the largest presence in the mid-market sector where we see significant opportunity. The scale and strength of our customer franchise gives us a strong base to build on with plenty of capacity for further growth. We believe the macro economy in the UK provides a supportive environment. Consumers in aggregate are managing well. You can see here that households are paying down debt and savings rates are high. Despite a challenging environment, particularly for sectors such as retail and hospitality, UK corporates are delivering and investment is steadily increasing. In addition, there are reasons to feel confident about the broader economy. In the housing market, interest rates are coming down, the government has set ambitious building targets and is committed to investing in social housing. There is a huge shift of generational wealth to younger generations underway, whilst the FCA's Advice Guidance Boundary Review opens up an opportunity for thousands of people who currently receive no financial advice. and the UK is home to high growth sectors and businesses with an innovation sector that is growing faster than the UK economy. It's against this backdrop that we have been thinking about our strategy and 2028 targets. Our strong performance in recent years demonstrates that our strategy is working. However, we revere it on an ongoing basis and have refined our three priorities as we raise our ambition for the bank and target a 2028 return on tangible equity greater than 18%. So let me talk about each priority in turn. We remain committed to pursuing disciplined growth with an emphasis on returns. First, by focusing on key customer segments. Second, by making it easier for customers to engage with us. And third, by broadening our propositions to ensure we serve more customers' needs. Our second priority has evolved to become leveraging simplification, reflecting the advances and progress we have made. We will continue to invest, in particular in AI, to drive growth, improve productivity, and enhance the customer experience. and we will continue to manage our balance sheet and risk well by redeploying capital to drive returns and by putting a greater emphasis on dynamic pricing as we increase our speed and agility with more advanced data and analytics. The purpose of these priorities is to deliver growth and attractive returns for shareholders. Our increased ambition on returns is underpinned by three new targets, growing customer assets and liabilities at an annual rate greater than 4% from 2025 to 2028, reducing our 2028 cost income ratio to below 45%, and generating more than 200 basis points of capital before distributions whilst operating with a CET1 ratio of around 13%. These targets take into account the acquisition of Evelyn Partners. So let me talk more about how we aim to achieve this, starting with disciplined growth. In retail banking, our focus is on youth, families, and the affluent segment. In the youth market, we are building on the success of our Rooster Money app, which has grown its customer base 15 times to well over half a million. We bank one in three families in the UK and want to build on connections within families and households through savings and mortgage relationships, for example. We also have a clear opportunity to grow in the affluent segment. We have around 1.2 million affluent customers in the retail bank, yet just half a million use our premier proposition. So our aim is to grow our premier customer base to 1 million and treble the number of retail customers who choose to invest with us. The Evelyn Partners acquisition will help accelerate the delivery of this ambition. It both enhances our direct-to-consumer investment platform with Best Invest and broadens our financial planning and investment offering. Private banking and wealth management aims to increase the number of clients with more than 3 million of assets and liabilities by more than 20%. This will be supported by trebling the number of referrals from commercial and institutional. In commercial and institutional, we want to remain the leading bank for UK startups and for the commercial mid-market. We serve over one in four businesses in the mid-market segment, businesses that are growing at a higher rate than the UK economy. We have an unparalleled presence across the UK, enabling us to build deep relationships based on strong local and sector knowledge. and we are building on our position as a leading lender to UK infrastructure and UK social housing, as well as our strength in trade and climate and transition finance. Our second lever to deliver growth is making it easier for our customers to engage with us by combining our best technology with the support of our people. In retail, most customers bank digitally, but we also have over 1,000 personal bankers and relationship managers, with a 24-hour call service for Premier customers. Private Banking and Wealth Management has 250 advisors and specialists in QOOTS, together with an award-winning app supported by QOOTS24, which answers calls 24 hours a day. Evil in Partners adds 270 financial planners, 325 specialist investment managers, and its own direct-to-consumer investment platform, Best Invest. Again, it combines expert personal service with digital excellence. commercial and institutional as a digital platform bank line, an unparalleled network of around 1,000 relationship managers in commercial mid-market banking, and a network of 12 accelerator hubs around the UK to help entrepreneurs grow and scale their businesses. We continue to invest in enhancing the digital experience for customers as technology advances and expectations evolve. For example, we are transforming our digital assistant Cora by deploying generative AI so that it can resolve more complex customer needs. We are moving our data onto a single platform to deliver more personalized propositions. And in commercial and institutional, we are investing 100 million over several years to transform Bankline into a state-of-the-art digital platform, giving business customers a single point of access to many of our products and services. Ultimately, we want a joined-up experience which adds value for the customer, however they choose to engage with us. We also want to meet more customers' needs by broadening our offering. For retail banking, this includes areas like home buying, with more support for first-time buyers, with family-backed and shared ownership mortgages, offering more flexible savings accounts, developing tailored propositions for Premier customers, and entering point-of-sale lending. Private banking and wealth management is primarily focused on investments. We are broadening our investment proposition to attract both high net worth clients and customers in the retail bank. We are preparing our response to the FCA's recommendation for targeted support following their advice guidance boundary review. And we are broadening our deposit offering. In commercial and institutional, we see the UK innovation economy as a key opportunity. Last year, we created a dedicated venture banking team to support innovative venture-backed scale-ups. And we opened new business accelerators last year with four leading universities, which act as incubators, with a plan to expand this to 10 over the next two years. By continuing to deliver disciplined growth, our aim is to grow customer assets and liabilities across our three businesses at a rate greater than 4% a year, equivalent to more than $120 billion of balance sheet growth by 2028. This will be a mix of broad-based lending growth, higher customer deposits, and strong growth in assets under management and administration. We have already demonstrated our track record of growth. Retail banking makes up 44% of our customer assets and liabilities, where we have grown more than 5% a year over the past seven years. Private banking and wealth management is currently 13% of Cal, with a strong growth rate of 8.3%. This will grow to around 20% of Cal with the inclusion of Evalyn partners. And commercial and institutional represents 37% of Cal, with a growth rate close to 3%. Moving on now to our second strategic priority, leveraging simplification, where I'll start with architecture and data. We expect to drive a further 100 million of investment capacity in 2026 by leveraging technology together with further streamlining our processes and governance. We have already made significant progress simplifying our systems and reducing duplication. For example, we decommissioned 200 business applications across the group last year, and we successfully migrated 1 million customers from Sainsbury's Bank covering multiple products. Last year, we announced a collaboration with Amazon Web Services to accelerate our data, analytic, and AI capabilities. This collaboration will give us a single view of each customer's relationship with the bank, as well as the tools to analyze data and enrich our customer understanding. Deployment of AI is not only helping us to automate routine work, such as call summarization, it is also helping our coders to be more productive. Over 12,000 software engineers are now able to use AI assistance to generate code. This transformation has enabled us to improve the deployment frequency of updates across the group by more than four times since 2021, and more than treble the new features on our commercial banking digital platform, Bankline. This investment is also increasing our operational resilience. We have reduced the number of critical incidents from nine in 2021 to one last year. Our ambition is to become the leading bank delivering personalized customer propositions powered by the responsible deployment of agentic AI. So we are building out our capabilities across the bank. Last year, we set up an AI research office focused on improving customer experience and efficiency by accelerating the use of AI in fields such as multi-biometrics, audio-visual conversational AI, using proprietary small language models, and ensuring algorithmic fairness as well as data safety. This shift to agentic AI marks a transition from simple chatbots to autonomous systems that can execute complex banking workflows on behalf of our customers. By prioritizing these capabilities, we can move beyond basic automation towards a simpler, data-driven experience that meets rapidly evolving customer expectations. Many of the building blocks that will make this vision a reality will go live this year. This quarter, our customers will be able to ask questions about their recent spending in their own words on their app. And later this year, we will launch voice-to-voice conversations and more agentic fraud support. By delivering income growth ahead of cost growth, we expect to reduce our cost-income ratio below 45% by 2028. Our track record of tight cost control gives us competitive advantage as it enables further growth. So our ambition is to strengthen our position as the most efficient large bank in the UK. Turning now to our third strategic priority, active balance sheet and risk management. The strength of our capital funding and liquidity position provides significant opportunity to deliver continued balance sheet growth together with attractive sustainable returns for shareholders whilst operating with a CET1 ratio of around 13%. Our loan to deposit ratio of 88% demonstrates the strength of our three businesses and our capacity to deliver material lending growth to support our customers and the UK economy. We continue to recycle inefficient lower returning capital into attractive growth areas to drive higher returns and we have been active in significant risk transfers and credit risk insurance to increase capital efficiency. You can also expect to see a greater emphasis on the use of advanced data analytics to drive faster pricing, credit, and asset enablement decisions. In addition, data analytics will help us manage risk dynamically whilst optimizing risk-adjusted returns. We will continue to deliver our through-the-cycle cost of risk of 20 to 30 basis points aligned with our risk appetite. And we also want to maintain our market-leading position in customer fraud prevention with multi-biometric authentication. Our aim in pursuing disciplined growth, leveraging simplification and managing capital and risk is to drive strong growth and returns for shareholders. Given our strong track record of delivery, we are raising our future ambitions. So let me sum up with our 2028 targets. We aim to grow customer assets and liabilities at a rate greater than 4% a year as we continue to drive disciplined growth. We are targeting a cost-income ratio below 45% as we drive positive operating leverage and we aim to generate more than 200 basis points of capital before distributions whilst operating with a CET1 ratio of around 13%. Strong capital generation gives us the ability to support customer growth, invest in the business and deliver attractive returns to shareholders. We are targeting a return on tangible equity greater than 18% in 2028. And we expect to maintain our dividend payout ratio of 50% with scope for surplus capital to be returned via buybacks. Thank you very much. We'll open it up now for questions.