NatWest makes largest profit since financial crisis on higher rates

theguardian.com:

NatWest has increased banker bonuses after reporting its largest profit since before the 2008 financial crisis, as the lender benefited from a surge in loan and mortgage charges for its borrowers.

The lender – which is still 46% owned by the UK government – said profits rose 33% to £5.1bn in 2022, marking its highest pre-tax earnings since the bank almost collapsed and was forced to take a £45bn taxpayer bailout at the height of the global financial crisis.

The last time it reported a higher profit was in 2007, when profits hit £10bn.

NatWest, formerly known as Royal Bank of Scotland, increased its bonus pool for a second consecutive year as a result of the strong performance to £367.5m. That is the biggest pot shared out by its bankers since 2015 and is up from £298m last year.

“NatWest Group delivered a strong performance in 2022,” the chief executive, Alison Rose, said.

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“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,” she added. “Our robust balance sheet, responsible lending and continued capital generation allow us to proactively support those who need it, while helping others to get ahead of the challenges to come.”