NatWest CEO on Adopting Precautionary Measures as Economic Outlook Worsens

The video discusses the resilience of default rates and customer performance amidst economic challenges. Despite a worsening economic outlook, default rates remain low, and customers manage their finances well. The speaker emphasizes a cautious approach by increasing impairment charges, although no significant default cycle is expected. The forecast for impairments remains stable, with a focus on maintaining resilience in customer performance.

What is the current state of default rates according to the speaker?

• They are increasing rapidly.

• They remain low and resilient.

• They have reached an all-time high.

• They are fluctuating unpredictably.

How are customers managing their finances in light of economic challenges?

• By ignoring the challenges.

• By withdrawing all their deposits.

• By increasing their spending.

• By managing their balance sheets well.

Why is the speaker lifting impairment charges?

• To encourage more spending.

• Due to a significant increase in defaults.

• As a precaution due to a worsening economic outlook.

• Because of a decrease in customer deposits.

What is the forecast for impairments by the end of the year?

• Around 10 basis points.

• Over 50 basis points.

• Below 5 basis points.

• Exactly 20 basis points.

What is the speaker's outlook on customer performance?

• It remains very resilient.

• It is deteriorating rapidly.

• It is unpredictable.

• It is declining steadily.