Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

NatWest profits surge to highest level since 2008 financial crisis

by February 17, 2023
February 17, 2023
NatWest profits surge to highest level since 2008 financial crisis

Rising interest rates have propelled annual profits at NatWest to their highest level since the bank’s government rescue during the 2008 financial crisis.

Pre-tax operating profits at the taxpayer-backed high street lender jumped to £5.1 billion last year from £3.8 billion in 2021, despite the turmoil in the wider economy.

NatWest has been boosted by the Bank of England decision to raise interest rates to contain soaring inflation, which has fueled expectations of a recession. Rising borrowing costs are enabling commercial lenders to lift their net interest margins, which represent the difference between what a bank pays to depositors and what it charges on loans. This is because they are not passing on in full the Bank’s base rate increases to savers. This has angered some customers and drawn criticism from MPs on the Commons treasury committee.

NatWest said its net interest margin in the final three months of last year climbed to 3.2 per cent from 2.99 per cent in the third quarter and 2.3 per cent in 2021. Its overall net interest income for 2022 jumped by about 31 per cent to £9.8 billion.

Rising rates pose something of a double-edged sword for banks because they also raise the pressure on borrowers. NatWest set aside £337 million for potential bad loans last year, which ate into its profits.

The FTSE 100-listed NatWest, which was previously called Royal Bank of Scotland Group, is one of Britain’s biggest banks. It almost collapsed during the last financial crisis but was rescued by the government through a £45.5 billion bailout and remains about 45 per cent owned by taxpayers. The group has been led by Dame Alison Rose, its chief executive, since November 2019.

“NatWest Group delivered a strong performance in 2022,” Rose said. “Despite not yet seeing significant signs of financial distress among our customers, we are acutely aware that many people and businesses are struggling right now and that many more are worried about what the future holds.”

Rose’s pay package jumped last year to £5.25 million, up from £3.59 million in 2021, the bank disclosed on Friday.

This included a £643,000 annual bonus split in cash and shares, the first time the bank has paid a bonus in cash to one of its top executives since 2007. NatWest overhauled its executive remuneration policy last year to make its pay more competitive.

The wider bonus pool for staff was also lifted to £367.5 million from £298 million a year earlier, an increase that NatWest said was “largely the result of strong performance”. Its pool in 2021 had also been reduced after the bank was fined £265 million for anti-money laundering failures.

The lender, which is no longer majority-owned by the state, said it handed back £2.6 billion to the UK government over 2022 as it moves closer to being private again.

NatWest said would pay a 10p a share final dividend, returning £967 million to investors, and would hand back a further £800 million by way of a share buyback.

Read more:
NatWest profits surge to highest level since 2008 financial crisis

0
FacebookTwitterGoogle +Pinterest
previous post
RMT announces further national rail strikes
next post
End of cash? Barclays says record 91 per cent of transactions were contactless last year

You may also like

Truss vs Johnson: A comparison of their speaking...

October 6, 2022

Uber’s ex-security chief faces landmark trial over data...

September 7, 2022

Surge in voluntary liquidations sparks abuse of process...

September 27, 2024

Somerset-based family cheese maker expands globally with £30M...

November 3, 2022

Five-year mortgage rates average 6% for first time...

July 4, 2023

Chancellor urged to reform childcare and stop urging...

February 21, 2023

Can Mike Malott Become Canada’s Next UFC Superstar?

May 26, 2025

7 Ways on how to stick to your...

May 11, 2023

Virgin Atlantic tempts British Airways Executive Club Members...

February 11, 2024

UK insolvencies rising due to high interest rates,...

December 11, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved