NatWest reports biggest annual profit since 2007 financial crisis

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NatWest made its biggest annual profit last year since the 2007 financial crisis, helped by high interest rates, as the bank confirmed the interim boss Paul Thwaite would permanently take over as its chief executive before a sale of its government-owned shares.

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Published by

16 Feb 2024

The UK lender – which is still 35% government-owned – said pre-tax profits rose 20% to £6.2bn in the year to December. That is the highest annual profit recorded since it made £10bn in 2007, the year before excesses led to a public rescue that has yet to be fully unwound 16 years later.

Bumper profits in 2023 came as the bank made more money from loans and mortgages, compared with what it paid out to savers, after another year of interest rate increases by the Bank of England. Those earnings, known as net interest income, rose 12% to £11bn.

The bank’s bonus pool for bankers fell 3% to £356m despite the jump in profits. NatWest said this reflected the impact on shareholders, after the bank missed previous earnings guidance. Shareholders will get a £1bn payout, with a final dividend