Highly strategic subsidiary of NatWest Group plc. Updated strategy should, if executed well, deliver a more focused and profitable business model. Solid capital and liquidity positions. Concentration in capital markets activities, which involve inherent cyclicality and complexity. Poor profitability and cost efficiency record relative to peers. Subject of prolonged restructuring processes and strategic reviews. S&P Global Ratings' negative outlook on NatWest Markets Plc (NWM) mirrors that on parent NatWest Group plc (NWG; previously named The Royal Bank of Scotland Group plc). It reflects downside risks to the group's asset quality and earnings from the economic and market impact of the COVID-19 pandemic. Although we view positively NWG's robust balance sheet profile and the unprecedented fiscal and monetary response, an extended
