© Reuters. FILE PHOTO: Folks stroll previous a Natwest Financial institution department in central London, Britain November 22, 2023. REUTERS/Isabel Infantes/File Photograph
By Iain Withers
LONDON (Reuters) – British financial institution NatWest confirmed Paul Thwaite as its everlasting chief govt on Friday and reported forecast-beating revenue for 2023, because it gears up for a crunch sale of state-owned inventory within the firm after a scandal-hit 12 months.
The taxpayer-backed lender reported pre-tax revenue of 6.2 billion kilos ($7.81 billion) for the 12-month interval, up 20% on 5.1 billion kilos the prior 12 months and forward of a 5.95 billion kilos common of analyst forecasts compiled by the financial institution.
NatWest additionally introduced a last dividend of 11.5 pence per share and a share buyback of 300 million kilos.
Thwaite turns into CEO on a everlasting foundation with quick impact, the financial institution stated, after taking up the function on an interim foundation final July following the abrupt departure of his predecessor Alison Rose.
The previous enterprise banking boss will likely be tasked with repairing the group’s popularity after a dangerous row with former Brexit Occasion chief Nigel Farage final 12 months over closure of his accounts compelled out Rose and wealth boss Peter Flavel.
Thwaite will even put together the bottom for a deliberate retail sale of government-owned inventory within the financial institution – which stays 35% taxpayer-owned after its 45.5 billion pound bailout within the 2008-9 monetary disaster.
NatWest’s revenue was its largest since that rescue, as increased central financial institution rates of interest continued to carry lending income. However a larger danger of cash-strapped debtors defaulting on loans and margin stress from fiercer competitors for financial savings and mortgage merchandise are consuming into margins.
The financial institution stated its web curiosity margin – a key measure of lending profitability – dipped quarter-on-quarter to 2.86% on the finish of December, down from 2.94% at end-September.
NatWest put aside 578 million kilos for potential soured loans, up from 337 million kilos the prior 12 months – however the determine got here in under analyst forecasts.
($1 = 0.7940 kilos)