NatWest profits soar 20% as Thwaites confirmed in CEO post

(Sharecast News) - Scandal-hit NatWest Bank reported a better-than-expected 20% rise in pre-tax profit and confirmed Paul Thwaite as chief executive on a permanent basis.

The bank on Friday said 2023 pre-tax operating profit came in at £6.17bn, beating the £5.95bn average of analyst forecasts compiled by the bank. Total income rose to £14.7bn, up from £13.1bn a year earlier.

NatWest, 35% owned by UK taxpayers, announced a final dividend of 11.5p a share and a share buyback of £300m.

Net interest margin - the difference between loan and savings rates - rose 19 basis points to 3.04% reflecting still-high interest rates, partially offset by lending margin pressure and lower deposits as customers shop around for better returns on their money and cheaper mortgages.

Thwaites had been given a one-year contract last July after the departure of his predecessor Alison Rose, who resigned after she broke client confidentiality in relation to the closure of hard-right political activist Nigel Farage's account with NatWest's Coutts banking arm.

It also set aside £578m for bad debts, up from £337m a year earlier.

Reporting by Frank Prenesti for Sharecast.com