Thwaite Confirms As NatWest CEO, Leading To A 20% Jump In Profits

(CTN News) – Paul Thwaite has been confirmed as NatWest’s new permanent CEO, and the company reported a forecast-beating profit for 2023, as it prepares to sell state-owned stock after a scandal-hit year.

A taxpayer-backed loan reported pre-tax profits of 6.2 billion pounds ($7.81 billion) for the 12-month period, up 20% from 5.1 billion pounds in the previous year and ahead of analysts’ average forecasts of 5.95 billion pounds.

Furthermore, NatWest announced that it would be repurchasing 300 million pounds of its shares as well as paying a final dividend of 11.5 pence per share on its shares.

Following the abrupt departure of his predecessor Alison Rose, Thwaite becomes CEO on a permanent basis with immediate effect, the bank said.

A damaging row with former NatWest Brexit Party leader Nigel Farage last year over the closure of his accounts prompted Rose and wealth boss Peter Flavel to resign.

In addition, Thwaite will also lay the groundwork for a retail sale of government stock in the bank’s holdings that remain 35% taxpayer owned following the bailout of the bank in 2008-2009 of 45.5 billion pounds.

The profit generated by NatWest was its highest since the rescue, as higher interest rates from the central bank continued to increase lending revenue.

However, margin pressure from fiercer competition for savings and mortgage products and a growing risk of cash-strapped borrowers defaulting on loans are eating away at margins.

Thus, at the end of December, the bank’s net interest margin has declined from 2.94% at the end of September to 2.86% at the end of December, which is a key indicator of how profitable its lending is.

According to NatWest, the bank set aside 578 million pounds for potential soured loans, up from 337 million pounds the previous year. However, the figure fell short of analyst expectations.

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