Yahoo Finance NatWest shares jump on biggest profit since 2007
Natwest's (NWG.L) latest results, released on Friday morning, confirmed that it saw its pre-tax profits soar last year, off the back of high interest rates. It also said caretaker CEO Paul Thwaite will take the top job on a permanent basis.
Shares were around 2.6% higher by mid-morning as the lender said bumper profits of £2.6bn ($3.27bn) — up from £5.1bn the previous year — came due to an increased yield from loans and mortgages compared with payouts.
It was the largest annual profit since 2007, the year of the financial crisis.
The Bank of England has held interest rates at 5.25% as it tries to stabilise the economy. Natwest's net interest income was up 12% to £11bn.
The changeover at the top comes following the bank's Coutts debanking scandal. Thwaite had acted as caretaker CEO for the bank after Alison Rose resigned over a row with former politician Nigel Farage. Thwaite will take over permanently with immediate effect, having previously run NatWest's banking division.
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Earlier this month, NatWest appointed UBS (UBS) executive Emma Crystal to head up its wealth business, including the high-net-worth bank Coutts.
Meanwhile, it was a bad day for bankers bonuses — depending on how you see it. The bonus pool at NatWest fell by 3%, down to £356m despite the good year for profits.
The decline in bonuses reflects the impact on shareholders, the bank said, with a payout of £1bn planned worth 11.5p a share. There is also a £300m share buyback programme on the slate.
"In 2024, we will focus on disciplined growth, improving bank-wide simplification to make it easier to do business with us, and deploying capital efficiently while maintaining strong risk management to drive strong capital generation," said Thwaite.
Watch: NatWest poaches UBS executive to replace ousted Coutts chief
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