NatWest has reported a bigger-than-expected profit for 2024 as the bank edges closer to returning to private ownership. Chief executive Paul Thwaite said shedding the Government’s shareholding would mark a “new, forward-looking chapter” for the British lender. The group told investors it made an operating pre-tax profit of £6.2 billion last year, about 0.3% higher than in 2023. This was slightly ahead of the £6.1 billion profit some analysts had been expecting.
NatWest said it benefited from lending growth during the year, with mortgage demand increasing as the property market improved and after acquiring Metro Bank’s loan book. Deposits also increased year-on-year as savings balances grew, offsetting a decline in current account balances. The retail bank nonetheless generated less income than in 2023, as borrowing costs started to come down and more people moved savings into accounts with higher interest rates.
This means the bank generates less from loans, but pays out more for savings. Meanwhile, the Government’s stake in NatWest has dropped to below 7% as the bank continues on its path to privatisation, which it expects to reach later this year. Mr Thwaite said: “As we enter a new, forward-looking chapter for NatWest Group, I am optimistic about the opportunities ahead of us to grow our business as a vital and trusted partner to our customers and the UK itself and, in doing so, create further value for our shareholders.”.
